0001067428au:LEybersOfficerMember2021-01-012021-12-31
Table of Contents

As filed with the Securities and Exchange Commission on 2930 March 2019
2022
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 205420549
FORM 20-F
☐REGISTRATION STATEMENT PURSUANT TO SECTION 12(B) OR 12(G) OF THE SECURITIES EXCHANGE ACT OF 1934 OR
☒OR
☒ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 OR
☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 OR
☐SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE FINANCIAL YEAR ENDED 31 December 20182021
Commission file number: 1-14846
AngloGold Ashanti Limited
(Exact Name of Registrant as Specified in its Charter)
Republic of South Africa
(Jurisdiction of Incorporation or Organisation)
76 Rahima Moosa Street, Newtown,112 Oxford Road , Houghton Estate, Johannesburg, 20012198
(P.O. Box 62117, Marshalltown, 2107)Private Bag X 20, Rosebank, 2196)
South Africa
(Address of Principal Executive Offices)
Kandimathie Christine Ramon, Chief Financial Officer, Telephone: +27 11 6376019+27 116376019
E-mail: cramon@anglogoldashanti.com 76 Rahima Moosa Street, Newtown, , 112 Oxford Road, Houghton Estate, Johannesburg 2001, , 2198, South Africa
(Name, Telephone, E-mail and/or Facsimile number and Address of Company Contact Person)
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading SymbolsName of each exchange on which registered
American Depositary SharesAUNew York Stock Exchange
Ordinary SharesAUNew York Stock Exchange*
5.375%3.375% Notes due 20202028AU/28New York Stock Exchange
5.125%3.75% Notes due 20222030AU/30New York Stock Exchange
6.50% Notes due 2040AU/40New York Stock Exchange
*    Not for trading, but only in connection with the registration of American Depositary Shares pursuant to the requirements of the Securities and Exchange Commission


Securities registered pursuant to Section 12(g) of the Act:
None
Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act:
None
Indicate the number of outstanding shares of each of the issuer’s classes of capital or common stock as of the close of the period covered by the annual report:
Ordinary Shares of 25 ZAR cents each412,769,980417,501,452 
A Redeemable Preference Shares of 50 ZAR cents each2,000,000
B Redeemable Preference Shares of 1 ZAR cent each778,896

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.
Yes ☒x No ☐
If this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.
Yes ☐ No ☒
x 
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes ☒x No ☐
Indicate by check mark whether the registrant  has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Yes ☒x No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or an emerging growth company. See definition of “large accelerated filer,filer”, “accelerated filer,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Check one:
(Check one): Large Accelerated Filer  ☒accelerated filerx
Accelerated filer ☐
Accelerated Filer Non-accelerated filer ☐
Non-Accelerated Filer ☐
Emerging growth company☐


If an emerging growth company that prepares its financial statements in accordance with U.S. GAAP, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards†standards provided pursuant to Section 13(a) of the Exchange Act. ☐
† The term “new or revised financial accounting standard” refers to any update issued by the Financial Accounting Standards Board to its Accounting Standards Codification after April 5, 2012.

Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☒
Indicate by check mark which basis of accounting the registrant has used to prepare the financial statements included in this filing:
U.S. GAAP ☐
International Financial Reporting Standards as issued by the International Accounting Standards Board Board ☒     xOther☐
If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes ☐ No ☒x



Table of Contents
TABLE OF CONTENTS
Page
4
56
7
8
68
912
Currencies
10
Abbreviations
11
Item 1:
1216
Item 2:
1216
Item 3:
1216
3A.[Reserved]
Selected financial data16
12
3B.
16
3C.
16
3D.
1617
Item 4:
5046
4A.
5046
4B.
5248
4C.
11188
4D.
11289
Item 4A:
138182
Item 5:
139183
5A.
140184
5B.
182238
5C.
187247
5D.
187247
5E.
187247
5F.Item 6:
187
Item 6:
Directors, senior management and employees
189248
6A.
Directors and senior management
190248
6B.
197255
6C.
199257
6D.
203262
6E.
204263
Item 7:
208266
7A.
209267
7B.
210268
7C.
211269
Item 8:
212270
8A.
213271
Legal proceedings
Legal proceedings272
214
219277
8B.
220278




2
Table of Contents
Item 9:
221279
9A.
221279
9B.
221279
9C.
221279
9D.
221279
9E.
221279
9F.
221279
Item 10:
222280
10A.
222280
10B.
222280
10C.
227286
10D.
236296
10E.
237297
10F.
242302
10G.
242302
10H.
242302
10I.
242302
Item 11:
243303
Item 12:
247307
12A.
247307
12B.
247307
12C.
247307
12D.
247307
12D.3
247307
12D.4
247307
Item 13:
248308
Item 14:
249309
Item 15:
250310
Item 16A:
252312
Item 16B:
253313
Item 16C:
254314
Item 16D:
255314
Item 16E:
255314
Item 16F:
255314
Item 16G:
255315
Item 16H:
255315
Item 16I:
315
Item 17:
256316
Item 18:
F-2571
Item 19
E-21





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PRESENTATION OF INFORMATION


AngloGold Ashanti Limited


In this annual report on Form 20-F, unless the context otherwise requires, references to AngloGold, AngloGold Ashanti, AGA, the company, the Company, we, us, our, the group and the groupGroup are references to AngloGold Ashanti Limited including, as appropriate, subsidiaries and associate companies of AngloGold Ashanti Limited.


IFRS financial statements


As a company incorporated in the Republic of South Africa, AngloGold Ashanti prepares annual audited consolidated financial statements and unaudited consolidated half-year financial statements in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB). These financial statements are distributed to shareholders and are submitted to the JSE Limited (JSE), as well as the New York, Australian and Ghana stock exchanges.


Currency


AngloGold Ashanti presents its consolidated financial statements in United States dollars.


In this annual report, references to rands,rand, ZAR andor R are to the lawful currency of the Republic of South Africa, references to US dollars, dollar, dollar, USD, US$ or $ are to the lawful currency of the United States, references to € and or Euro are to the lawful currency of the European Union, references to ARS andor Argentinean peso are to the lawful currency of Argentina, references to AUD, Australian dollars anddollar or A$ are to the lawful currency of Australia, references to BRL or Brazilian real are to the lawful currency of Brazil, references to TZS or Tanzanian shilling are to the lawful currency of the United Republic of Tanzania, and references to GHC,Ghanaian cedi, GHS, cedi or Gh¢ are to the lawful currency of Ghana.Ghana, references to GBP, British pounds or £ are to the lawful currency of the United Kingdom, references to Canadian dollar, CAD or C$ are to the lawful currency of Canada and references to Colombian peso or COP are to the lawful currency of Colombia.


Non-GAAP financial measures


In this annual report on Form 20-F, AngloGold Ashanti presents the financial items “total cash costs”costs net of by-product revenue”, “total cash costs per ounce”, “all-in sustaining costs”, “all-in sustaining costs per ounce”, “all-in costs”, “all-in costs per ounce” and “all-in costs“average gold price received per ounce”, which are not IFRS measures. An investor should not consider these items in isolation or as alternatives to cost of sales, profit/(loss) applicable to equity shareholders, profit/(loss) before taxation, cash flows from operating activities or any other measure of financial performance presented in accordance with IFRS.


While the Gold Institute has provided definitions for the calculation of total cash costs net of by-product revenue, and during June 2013, the World Gold Council published a Guidance Note (which was updated in November 2018) on “all-in sustaining costs” and “all-in costs” metrics, the calculation of total cash costs net of by-product revenue, total cash costs per ounce, all-in sustaining costs, all-in sustaining costs per ounce, all-in costs and all-in costs per ounce may vary significantly among gold mining companies, and by themselves do not necessarily provide a basis for comparison with other gold mining companies. See “—Glossary of selected terms–terms—Financial terms–terms—Total cash costs”costs net of by-product revenue”, “ —Glossary“—Glossary of selected terms–terms—Financial terms–terms—All-in sustaining costs” and “—Glossary of selected terms–terms—Financial terms–terms—All-in costs”. Nevertheless, AngloGold Ashanti believes that total cash costs net of by-product revenue, all-in sustaining costs and all-in costs in total and per ounce as well as “average gold price received per ounce” are useful indicators to investors and management as they provide:


•an indication of profitability, efficiency and cash flows;
•the trend in costs as the mining operations mature over time on a consistent basis; and
•an internal benchmark of performance to allow for comparison against other mines, both within the AngloGold Ashanti group and at other gold mining companies.


Management prepares its internal management reporting documentation, for use and decision making by the Chief Operating Decision Maker, on an attributable basis. The key metrics are based on the attributable ounces, gold income, total cash costs net of by-product revenue, all-in costs and all-in sustaining costs from each operation and as a consequence includes our share of the total cash costs net of by-product revenue, all-in costs and all-in sustaining costs of our joint ventures that are accounted for on the equity method. In a capital intensive industry, this basis allows management to make operating and resource allocation decisions on a comparable basis between mining operations irrespective of whether they are consolidated or accounted for under the equity method. This basis of calculating the metrics, where costs should be reported on the same basis as sales (i.e., if sales are reported on an attributable basis, then costs should be reported on an attributable basis), is also consistent with the World Gold Council’s Guidance Note on Non-GAAP Metrics - All-in-All-in Sustaining and All-In Costs.Costs.


Although we have shareholder rights and board representation commensurate with our ownership interests in our equity accounted joint ventures and review the underlying operating results including total cash costs net of by-product revenue, all-in costs and all-in sustaining costs with them at each reporting period, we do not have direct control over their operations or resulting revenue and expenses, nor do we have a proportionate legal interest in each financial statement line item. Our use of total cash costs net of by-product revenue, all-in costs and all-in sustaining costs on an attributable basis, is not intended to imply



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that we have any such control or proportionate legal interest, but rather to reflect the non-GAAP measures on a basis consistent with our internal and external segmental reporting.


A reconciliation of both cost of sales and total cash costs as included in the company’s audited financial statements to total“all-in sustaining costs”, “all-in sustaining costs per ounce”, “all-in costs”, “all-in costs per ounce”, “total cash costs all-in sustainingnet of by-product revenue” and “total cash costs and all-in costsper ounce” for each of the three years in the period ended 31 December 2018, 2017 and 20162021 is presented herein. See “Item 5A: Operating Results-Non-GAAPResults—Non-GAAP analysis”.


DiscontinuedOperations

On 12 February 2020, AngloGold Ashanti announced that it had reached an agreement to sell its remaining South African producing assets and related liabilities to Harmony Gold Mining Company Limited (“Harmony”). On 30 September 2020, the transaction closed and, on 1 October 2020, Harmony took effective control of AngloGold Ashanti’s remaining South African producing assets and related liabilities. The South African asset sale was assessed as a major geographical area of operations and part of a single co-ordinated plan to dispose of a major geographical area of operations. Accordingly, AngloGold Ashanti’s remaining South African producing assets and related liabilities were recorded as discontinued operations for the years ended and as at 31 December 2020 and 31 December 2019. In addition, AngloGold Ashanti sold its interests in the Morila and Sadiola gold mines in Mali in November and December 2020, respectively. None of AngloGold Ashanti’s Malian assets were recorded as discontinued operations.

Shares and shareholders


In this annual report on Form 20-F, references to ordinary shares, ordinary shareholders, equity shareholders and shareholders/members, should be read as common stock, common stockholders and stockholders, respectively, and vice versa.




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CERTAIN FORWARD-LOOKING STATEMENTS


Certain statements contained in this document,annual report on Form 20-F, 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 consequenceconsequences of any potential or pending litigation or regulatory proceedings or environmental, health and safety issues, are forward-looking statements regarding AngloGold Ashanti’s operations, economic performance and financial condition.


These forward-looking statements or forecasts involve known and unknown risks, uncertainties and other factors that may cause AngloGold Ashanti’s actual results, performance or achievements to differ materially from the anticipated results, performance or achievements expressed or implied in these forward-looking statements. Although AngloGold Ashanti believes that the expectations reflected in such forward-looking statements and forecasts are reasonable, no assurance can be given that such expectations will prove to have been correct. Accordingly, results could differ materially from those set out in the forward-looking statements as a result of, among other factors, changes in economic, social, and political and market conditions, including 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 risk managementrisks and other factors, as described inincluding mining accidents. For a discussion of such risk factors, refer to “Item 3D: Risk Factors” and elsewhere in this annual report. 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 of this annual report on Form 20-F 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.




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Table of Contents
GLOSSARY OF SELECTED TERMS


MiningFinancial terms
All injury frequency rate: The total number of injuries and fatalities that occurs per million hours worked.
BIF: Banded Ironstone Formation. A chemically formed iron-rich sedimentary rock.
By-products: Any products that emanate from the core process of producing gold, including silver, uranium and sulphuric acid.
Carbon-in-leach (CIL): Gold is leached from a slurry of gold ore with cyanide in agitated tanks and adsorbed on to activated carbon granules at the same time (i.e. when cyanide is introduced in the leach tank, there is already activated carbon in the tank and there is no distinction between leach and adsorption stages). The carbon granules are separated from the slurry and treated in an elution circuit to remove the gold.
Carbon-in-pulp (CIP): Gold is leached conventionally from a slurry of gold ore with cyanide in agitated tanks. The leached slurry then passes into the CIP circuit where activated carbon granules are mixed with the slurry and gold is adsorbed on to the activated carbon. The gold-loaded carbon is separated from the slurry and treated in an elution circuit to remove the gold.
CLR: Carbon leader reef.
Comminution: Comminution is the crushing and grinding of ore to make gold available for treatment. (See also “Milling”).
Contained gold: The total gold content (tons multiplied by grade) of the material being described.
Depletion: The decrease in the quantity of ore in a deposit or property resulting from extraction or production.
Development: The process of accessing an orebody through shafts and/or tunneling in underground mining operations.
Diorite: An igneous rock formed by the solidification of molten material (magma).
Doré: Impure alloy of gold and silver produced at a mine to be refined to a higher purity.
Electro-winning: A process of recovering gold from solution by means of electrolytic chemical reaction into a form that can be smelted easily into gold bars.
Elution: Recovery of the gold from the activated carbon into solution before zinc precipitation or electro-winning.
Feasibility study: A comprehensive technical and economic study of the selected development option for a mineral project that includes appropriately detailed assessments of applicable Modifying Factors together with any other relevant operational factors and detailed financial analysis that are necessary to demonstrate at the time of reporting that extraction is reasonably justified (economically mineable). The results of the study may reasonably serve as the basis for a final decision by a proponent or financial institution to proceed with, or finance, the development of the project. The confidence level of the study will be higher than that of a Pre-Feasibility Study (JORC 2012).
Flotation: Concentration of gold and gold-hosting minerals into a small mass by various techniques (e.g. collectors, frothers, agitation, air-flow) that collectively enhance the buoyancy of the target minerals, relative to unwanted gangue, for recovery into an over-flowing froth phase.
Gold Produced: Refined gold in a saleable form derived from the mining process.
Grade: The quantity of gold contained within a unit weight of gold-bearing material generally expressed in ounces per short ton of ore (oz/t), or grams per metric tonne (g/t).
Greenschist: A schistose metamorphic rock whose green colour is due to the presence of chlorite, epidote or actinolite.
Leaching: Dissolution of gold from crushed or milled material, including reclaimed slime, prior to adsorption on to activated carbon or direct zinc precipitation.
Life of mine (LOM): Number of years for which an operation is planning to mine and treat ore, and is taken from the current mine plan.

Metallurgical plant: A processing plant constructed to treat ore and extract gold.
Milling: A process of reducing broken ore to a size at which concentrating can be undertaken. (See also “Comminution”).
Mine call factor: The ratio, expressed as a percentage, of the total quantity of recovered and unrecovered mineral product after processing with the amount estimated in the ore based on sampling. The ratio of contained gold delivered to the metallurgical plant divided by the estimated contained gold of ore mined based on sampling.
Mineral deposit: A mineral deposit is a concentration (or occurrence) of material of possible economic interest in or on the earth’s crust.
Mineral Resource: A concentration or occurrence of solid material of economic interest in or on the earth’s crust is such form, grade (or quality), and quantity that there are reasonable prospects for eventual economic extraction. The location, quantity, grade (or quality), continuity and other geological characteristics of a Mineral Resource are known, estimated or interpreted from specific geological evidence and knowledge, including sampling. Mineral Resources are sub-divided in order of increasing geological confidence, into Inferred, Indicated or Measured categories (JORC 2012).
Modifying Factors: Modifying Factors’ are considerations used to convert Mineral Resource to Ore Reserve. These include, but are not restricted to, mining, processing, metallurgical, infrastructure, economic, marketing, legal, environmental, social and governmental factors.
Ore Reserve: That part of a mineral deposit which could be economically and legally extracted or produced at the time of the Ore Reserve determination.
Ounce (oz) (troy): Used in imperial statistics. A kilogram is equal to 32.1507 ounces. A troy ounce is equal to 31.1035 grams.
Pay limit: The grade of a unit of ore at which the revenue from the recovered mineral content of the ore is equal to the sum of total cash costs, closure costs, Ore Reserve development and stay-in-business capital. This grade is expressed as an in-situ value in grams per tonne or ounces per short ton (before dilution and mineral losses).
Precipitate: The solid product formed when a change in solution chemical conditions results in conversion of some pre-dissolved ions into solid state.
Probable Ore Reserve: Ore Reserve for which quantity and grade are computed from information similar to that used for Proven Ore Reserve, but the sites for inspection, sampling, and measurement are further apart or are otherwise less adequately spaced. The degree of assurance, although lower than that for Proven Ore Reserve, is high enough to assume continuity between points of observation.
Productivity: An expression of labour productivity based on the ratio of ounces of gold produced per month to the total number of employees in mining operations.
Project capital: Capital expenditure to either bring a new operation into production; to materially increase production capacity; or to materially extend the productive life of an asset.
Proven Ore Reserve: A ‘Proven Ore Reserve’ is the economically mineable part of a Measured Mineral Resource. A Proven Ore Reserve implies a high degree of confidence in the Modifying Factors.
Recovered grade: The recovered mineral content per unit of ore treated.
Reef: A gold-bearing sedimentary horizon, normally a conglomerate band that may contain economic levels of gold.
Refining: The final purification process of a metal or mineral.
Rehabilitation: The process of reclaiming land disturbed by mining to allow an appropriate post-mining use. Rehabilitation standards are defined by country-specific laws, including but not limited to the South African Department of Mineral Resources, the US Bureau of Land Management, the US Forest Service, and the relevant Australian mining authorities, and address among other issues, ground and surface water, topsoil, final slope gradient, waste handling and re-vegetation issues. 
Seismic event: A sudden inelastic deformation within a given volume of rock that radiates detectable seismic energy.
Shaft: A vertical or subvertical excavation used for accessing an underground mine; for transporting personnel, equipment and supplies; for hoisting ore and waste; for ventilation and utilities; and/or as an auxiliary exit.
Short ton: Used in imperial statistics. Equal to 2,000 pounds.

Smelting: A pyro-metallurgical operation in which gold precipitate from electro-winning or zinc precipitation is further separated from impurities.
Stoping: The process of excavating ore underground.
Stripping ratio: The ratio of waste tonnes to ore tonnes mined calculated as total tonnes mined less ore tonnes mined divided by ore tonnes mined.
Tailings: Finely ground rock of low residual value from which valuable minerals have been extracted.
Tonnage: Quantity of material measured in tonnes or tons.
Tonne: Used in metric statistics. Equal to 1,000 kilograms.
VCR: Ventersdorp Contact Reef.
Waste: Material that contains insufficient mineralisation for consideration for future treatment and, as such, is discarded.
Yield: The amount of valuable mineral or metal recovered from each unit mass of ore expressed as ounces per short ton or grams per metric tonne.
Zinc precipitation: Zinc precipitation is the chemical reaction using zinc dust that converts gold in solution to a solid form for smelting into unrefined gold bars.

Financial terms
All-in costs: All-in costs are all-in sustaining costs including additional non-sustaining costs which reflect the varying costs of producing gold over the life-cycle of a mine. Non-sustaining costs are those costs incurred at new operations and costs related to ‘major projects’ at existing operations where these projects will materially increase production. All-in costs per ounce is arrived at by dividing the dollar value of the sum of these cost metrics, by the ounces of gold sold.
All-in sustaining costs: costs (AISC): During June 2013, the World Gold Council (WGC), an industry body, published a Guidance Note (which was updated in November 2018) on the “all-in sustaining costs” metric, which gold mining companies can use to supplement their overall non-GAAP disclosure. “All-in sustaining costs” is an extension of the existing “total cash cost” metric and incorporates all costs related to sustaining production and in particular recognises the sustaining capital expenditure associated with developing and maintaining gold mines. In addition, this metric includes the cost associated with developing and maintaining gold mines, the cost associated with corporate office structures that support these operations, the community and rehabilitation costs attendant with responsible mining and any exploration and evaluation costs associated with sustaining current operations. All-in sustaining costs per ounce is arrived at by dividing the dollar value of the sum of these cost metrics, by the ounces of gold sold.
Average gold price received per ounce: The attributable gold income (price received), divided by attributable ounces of gold sold.
Average number of employees: The monthly average number of production and non-production employees and contractors employed during the year, where contractors are defined as individuals who have entered into a fixed-term contract of employment with a group company or subsidiary. Employee numbers of joint ventures represent the group’s attributable share.
Capital expenditure: Total capital expenditure on tangible assets.
Effective tax rate: Current and deferred taxation charge for the year as a percentage of profit before taxation.
Market spot gold price: The price of gold traded at any given moment on the Over-The-Counter (OTC) wholesale market of which the transaction will be settled in two business days’ time.
Non-foreign operation: An entity with a functional currency, the same as the parent company (ZAR), which differs from the group presentation currency (USD).
Non-sustaining project capital expenditure: or growth capital (expenditure): Capital expenditure incurred at new operations and capital expenditure related to ‘major projects’ at existing operations where these projects will materially increase production..production.
Rated bonds: The $700$750 million 5.3753.375 percent bonds due 2020, $3002028, the $700 million 6.53.75 percent bonds due 20402030 and the $750$300 million 5.1256.50 percent bonds due 2022.2040.
Region: Defines the operational management divisions within AngloGold Ashanti Limited, namely South Africa, Continental Africa (DRC, Ghana, Guinea Mali and Tanzania), AustralasiaAustralia and the Americas (Argentina and Brazil).; the South African operations were sold during 2020.
Related party:Parties are considered related if one party has the ability to control the other party or exercise significant influence over the other party in making financial and operating decisions or if such parties are under common control.
Significant influence: The ability, directly or indirectly, to participate in, but not exercise control over, the financial and operating policy decision of an entity so as to obtain economic benefit from its activities.
Strate: The licensed Central Securities Depository (CSD) for the electronic settlement of financial instruments in South Africa.
Sustaining capital: capital (expenditure): Capital expenditure incurred to sustain and maintain existing assets at their current productive capacity in order to achieve constant planned levels of productive output.
Total cash costs: Total cash costs (net of by-product revenue): Total cash costs net of by-product revenue include site costs for all mining, processing and administration and are inclusive of royalties and production taxes. Depreciation, depletion and amortisation, rehabilitation, corporate administration, employee severance costs, capital and exploration costs are excluded. Total cash costs net of by-product revenue per ounce are the attributable total cash costs divided by the attributable ounces of gold produced.
Weighted average number of ordinary shares: The number of ordinary shares in issue at the beginning of the year, increased by shares issued during the year, weighted on a time basis for the period during which they have participated in the income of the group, and increased by share options that are virtually certain to be exercised.


Currencies



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Currencies
$, US$, USD, US dollarsdollar or dollarUnited States dollarsdollar
ARS or Argentinean pesoArgentinean peso
A$, AUD or Australian dollars or AUDdollarAustralian dollarsdollar
BRL or Brazilian realBrazilian real
C$, CAD or Canadian dollarCanadian dollar
COP or Colombian pesoColombian peso
€ or EuroEuropean Euroeuro
GHC,GHS, Gh¢, Ghanaian cedi or Gh¢cediGhanaian cedi
TZS or Tanzanian shillingTanzanian Shillingsshilling
ZAR, R, or randSouth African randsrand or randSouth African rand
£, GBP or British poundBritish pound


Abbreviations
Mining terms
All injury frequency rate: The total number of injuries and fatalities that occurs per million hours worked.
By-products: Any potentially economic or saleable products that emanate from the core process of producing gold or copper, including silver, molybdenum and sulphuric acid.
Carbon-in-leach (CIL): Gold is leached from a slurry of ore where cyanide and carbon granules are added to the same agitated tanks. The gold loaded carbon granules are separated from the slurry and treated in an elution circuit to remove the gold.
Carbon-in-pulp (CIP): Gold is leached conventionally from a slurry of ore with cyanide in agitated tanks. The leached slurry then passes into the CIP circuit where activated carbon granules are mixed with the slurry and gold is adsorbed on to the activated carbon. The gold-loaded carbon is separated from the slurry and treated in an elution circuit to remove the gold.
Comminution: Comminution is the crushing and grinding of ore to make gold available for physical or chemical separation (see also “Milling”).
Contained gold or Contained copper: The total gold or copper content (tonnes multiplied by grade) of the material being described.
Cut-off grade: Cut-off grade is the grade (i.e., the concentration of metal or mineral in rock) that determines the destination of the material during mining. For purposes of establishing “prospects of economic extraction,” the cut-off grade is the grade that distinguishes material deemed to have no economic value (it will not be mined in underground mining or if mined in surface mining, its destination will be the waste dump) from material deemed to have economic value (its ultimate destination during mining will be a processing facility). Other terms used in similar fashion as cut-off grade include net smelter return, pay limit, and break-even stripping ratio.
Depletion: The decrease in the quantity of ore in a deposit or property resulting from extraction or production.
Development: The process of accessing an orebody through shafts and/or tunneling in underground mining operations.
Development stage property: A development stage property is a property that has Mineral Reserve disclosed, but no material extraction.
Diorite: An igneous rock formed by the solidification of molten material (magma).
Doré: Impure alloy of gold and silver produced at a mine to be refined to a higher purity.
Economically viable: Economically viable, when used in the context of Mineral Reserve determination, means that the Qualified Person has determined, using a discounted cash flow analysis, or has otherwise analytically determined, that extraction of the Mineral Reserve is economically viable under reasonable investment and market assumptions.
Electrowinning: A process of recovering gold from solution by means of electrolytic chemical reaction into a form that can be smelted easily into gold bars.
Elution: Recovery of the gold from the activated carbon into solution before zinc precipitation or electrowinning.



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Table of Contents
Exploration results: Exploration results are data and information generated by mineral exploration programs (i.e., programs consisting of sampling, drilling, trenching, analytical testing, assaying, and other similar activities undertaken to locate, investigate, define or delineate a mineral prospect or mineral deposit) that are not part of a disclosure of Mineral Resource or Reserve. A registrant must not use exploration results alone to derive estimates of tonnage, grade, and production rates, or in an assessment of economic viability.
Exploration stage property: An exploration stage property is a property that has no Mineral Reserve disclosed.
Exploration target: An exploration target is a statement or estimate of the exploration potential of a mineral deposit in a defined geological setting where the statement or estimate, quoted as a range of tonnage and a range of grade (or quality), relates to mineralisation for which there has been insufficient exploration to estimate a Mineral Resource.
Feasibility Study (FS): A Feasibility Study is a comprehensive technical and economic study of the selected development option for a mineral project, which includes detailed assessments of all applicable modifying factors, as defined by this section, together with any other relevant operational factors, and detailed financial analyses that are necessary to demonstrate, at the time of reporting, that extraction is economically viable. The results of the study may serve as the basis for a final decision by a proponent or financial institution to proceed with, or finance, the development of the project. A Feasibility Study is more comprehensive, and with a higher degree of accuracy, than a Prefeasibility Study. It must contain mining, infrastructure, and process designs completed with sufficient rigor to serve as the basis for an investment decision or to support project financing. The confidence level in the results of a feasibility study is higher than the confidence level in the results of a pre-feasibility study. Terms such as full, final, comprehensive, bankable, or definitive feasibility study are equivalent to a feasibility study.
Flotation: Concentration of gold and gold-hosting minerals into a small mass by various techniques (e.g. collectors, frothers, agitation, air-flow) that collectively enhance the buoyancy of the target minerals, relative to unwanted gangue, for recovery into an over-flowing froth phase.
Gold Produced: Refined gold in a saleable form derived from the mining process.
Grade: The quantity of ore contained within a unit weight of mineralised material generally expressed in grams per metric tonne (g/t) or ounce per short tonne for gold bearing material or Percentage copper (%Cu) for copper bearing material.
Greenschist: A schistose metamorphic rock whose green colour is due to the presence of chlorite, epidote or actinolite.
Indicated Mineral Resource: An Indicated Mineral Resource is that part of a Mineral Resource for which quantity and grade or quality are estimated on the basis of adequate geological evidence and sampling. The level of geological certainty associated with an Indicated Mineral Resource is sufficient to allow a Qualified Person to apply modifying factors in sufficient detail to support mine planning and evaluation of the economic viability of the deposit. Because an Indicated Mineral Resource has a lower level of confidence than the level of confidence of a Measured Mineral Resource, an Indicated Mineral Resource may only be converted to a Probable Mineral Reserve.
Inferred Mineral Resource: An Inferred Mineral Resource is that part of a Mineral Resource for which quantity and grade or quality are estimated on the basis of limited geological evidence and sampling. The level of geological uncertainty associated with an Inferred Mineral Resource is too high to apply relevant technical and economic factors likely to influence the prospects of economic extraction in a manner useful for evaluation of economic viability. Because an Inferred Mineral Resource has the lowest level of geological confidence of all Mineral Resource, which prevents the application of the modifying factors in a manner useful for evaluation of economic viability, an Inferred Mineral Resource may not be considered when assessing the economic viability of a mining project, and may not be converted to a Mineral Reserve.
Initial assessment (also known as concept study, scoping study and conceptual study): An initial assessmentis a preliminary technical and economic study of the economic potential of all or parts of mineralisation to support the disclosure of Mineral Resource. The initial assessment must be prepared by a Qualified Person and must include appropriate assessments of reasonably assumed technical and economic factors, together with any other relevant operational factors, that are necessary to demonstrate at the time of reporting that there are reasonable prospects for economic extraction. An initial assessment is required for disclosure of Mineral Resource but cannot be used as the basis for disclosure of Mineral Reserve.
Leaching: Dissolution of gold from crushed or milled material, including reclaimed slime, prior to adsorption on to activated carbon or direct zinc precipitation.
Life of mine (LOM): Number of years for which an operation is planning to mine and treat ore, and is taken from the current mine plan.
Measured Mineral Resource: A Measured Mineral Resource is that part of a Mineral Resource for which quantity and grade or quality are estimated on the basis of conclusive geological evidence and sampling. The level of geological certainty associated with a Measured Mineral Resource is sufficient to allow a Qualified Person to apply modifying factors, as defined in this section, in sufficient detail to support detailed mine planning and final evaluation of the economic viability of the deposit. Because a Measured Mineral Resource has a higher level of confidence than the level of confidence of either an Indicated Mineral Resource or an Inferred Mineral Resource, a Measured Mineral Resource may be converted to a Proven Mineral Reserve or to a Probable Mineral Reserve.
Metallurgical plant: A processing plant constructed to treat ore and extract gold or copper in the case of Quebradona (and, in some cases, often valuable by-products).



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Metallurgical recovery factor (MetRF): A measure of the efficiency in extracting gold from the ore.
Milling: A process of reducing broken ore to a size at which concentrating or leaching can be undertaken (see also “Comminution”).
Mine call factor (MCF): The ratio, expressed as a percentage, of the total quantity of recovered and unrecovered mineral product after processing with the amount estimated in the ore based on sampling. The ratio of contained gold delivered to the metallurgical plant divided by the estimated contained gold of ore mined based on sampling.
Mineral deposit: A mineral deposit is a concentration (or occurrence) of material of possible economic interest in or on the earth’s crust.
Mining recovery factor (MRF): This factor reflects a mining efficiency factor relating to the recovery of material during the mining process and is the variance between the tonnes called for in the mining design and what the plant receives. It is expressed in both a grade and tonnage number.
Mineral Reserve: A Mineral Reserve is an estimate of tonnage and grade or quality of Indicated and Measured Mineral Resource that, in the opinion of the Qualified Person, can be the basis of an economically viable project. More specifically, it is the economically mineable part of a Measured or Indicated Mineral Resource, which includes diluting materials and allowances for losses that may occur when the material is mined or extracted.
Mineral Resource: A Mineral Resource is a concentration or occurrence of material of economic interest in or on the Earth's crust in such form, grade or quality, and quantity that there are reasonable prospects for economic extraction. A Mineral Resource is a reasonable estimate of mineralisation, taking into account relevant factors such as cut-off grade, likely mining dimensions, location or continuity, that, with the assumed and justifiable technical and economic conditions, is likely to, in whole or in part, become economically extractable. It is not merely an inventory of all mineralisation drilled or sampled.
Modifying Factors: Modifying factors are the factors that a Qualified Person must apply to Indicated and Measured Mineral Resource and then evaluate in order to establish the economic viability of Mineral Reserve. A Qualified Person must apply and evaluate modifying factors to convert Measured and Indicated Mineral Resource to Proven and Probable Mineral Reserve. These factors include, but are not restricted to: mining; processing; metallurgical; infrastructure; economic; marketing; legal; environmental compliance; plans, negotiations, or agreements with local individuals or groups; and governmental factors. The number, type and specific characteristics of the modifying factors applied will necessarily be a function of and depend upon the mineral, mine, property, or project.
Ounce (oz) (troy): Used in imperial statistics. A kilogram is equal to 32.1507 ounces. A troy ounce is equal to 31.1035 grams.
Pay limit: The grade of a unit of ore at which the revenue from the recovered mineral content of the ore is equal to the sum of total cash costs, closure costs, Mineral Reserve development and stay-in-business capital. This grade is expressed as an in-situ value in grams per tonne or ounces per short ton (before dilution and mineral losses).
Precipitate: The solid product formed when a change in solution chemical conditions results in conversion of some pre-dissolved ions into solid state.
Preliminary Feasibility Study (Prefeasibility Study or PFS): is a comprehensive study of a range of options for the technical and economic viability of a mineral project that has advanced to a stage where a Qualified Person has determined (in the case of underground mining) a preferred mining method, or (in the case of surface mining) a pit configuration, and in all cases has determined an effective method of mineral processing and an effective plan to sell the product. A Prefeasibility study includes a financial analysis based on reasonable assumptions, based on appropriate testing, about the modifying factors and the evaluation of any other relevant factors that are sufficient for a Qualified Person to determine if all or part of the Indicated and Measured Mineral Resource may be converted to Mineral Reserve at the time of reporting. The financial analysis must have the level of detail necessary to demonstrate, at the time of reporting, that extraction is economically viable. A pre-feasibility study is less comprehensive and results in a lower confidence level than a feasibility study. A Prefeasibility study is more comprehensive and results in a higher confidence level than an initial assessment.
Probable Mineral Reserve: A Probable Mineral Reserve is the economically mineable part of an Indicated and, in some cases, a Measured Mineral Resource.
Production stage property: A production stage property is a property with material extraction of Mineral Reserve.
Productivity: An expression of labour productivity based on the ratio of ounces of gold produced per month to the total number of employees in mining operations.
Proven Mineral Reserve: A Proven Mineral Reserve is the economically mineable part of a Measured Mineral Resource and can only result from conversion of a Measured Mineral Resource.
Qualified Person: A Qualified Person is an individual who is (1) A mineral industry professional with at least five years of relevant experience in the type of mineralisation and type of deposit under consideration and in the specific type of activity that person is undertaking on behalf of the registrant; and (2) An eligible member or licensee in good standing of a recognised professional organisation at the time the technical report is prepared. Regulation S-K 1300 details further recognised professional organisations and also relevant experience.



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Quartz: A hard mineral consisting of silica dioxide found widely in all rocks.
Recovered grade: The recovered mineral content per unit of ore treated.
Reef: A gold-bearing horizon, sometimes a conglomerate band, that may contain economic levels of gold. Reef can also be any significant or thick gold bearing quartz vein.
Refining: The final purification process of a metal or mineral.
Regulation S-K 1300: On 31 October 2018, the United States Securities and Exchange Commission adopted the amendment Subpart 1300 (17 CFR 229.1300) of Regulation S-K along with the amendments to related rules and guidance in order to modernise the property disclosure requirements for mining registrants under the Securities Act and the Securities Exchange Act. Registrants engaged in mining operations must comply with the final rule amendments (Regulation S-K 1300) for the first fiscal year beginning on or after 1 January 2021. Accordingly, the Company is providing disclosure in compliance with Regulation S-K 1300 for its fiscal year ending 31 December 2021 and will continue to do so going forward. As part of its rulemaking to modernise its disclosure requirements, the SEC rescinded Industry Guide 7, which accordingly is not applicable to the Company’s current and future disclosures.
Rehabilitation: The process of reclaiming land disturbed by mining to allow an appropriate post-mining use. Rehabilitation standards are defined by country-specific laws, including but not limited to the South African Department of Mineral Resources and Energy, the US Bureau of Land Management, the US Forest Service, and the relevant Australian mining authorities, and address among other issues, ground and surface water, topsoil, final slope gradient, waste handling and re-vegetation issues. 
Resource modification factor (RMF): This factor is applied when there is an historic reconciliation discrepancy in the Mineral Resource model (e.g. between the Mineral Resource model tonnage and the grade control model tonnage). It is expressed in both a grade and tonnage number.
Scats: Within the metallurgical plants, scats is a term used to describe ejected ore or other uncrushable / grinding media arising from the milling process. This, typically oversize material (ore), is ejected from the mill and stockpiled or re-crushed via a scats retreatment circuit. Retreatment of scats is aimed at fracturing the material such that it can be returned to the mills and processed as with the other ores to recover the gold locked up within this oversize material.
Seismic event: A sudden inelastic deformation within a given volume of rock that radiates detectable seismic energy.
Shaft: A vertical or subvertical excavation used for accessing an underground mine; for transporting personnel, equipment and supplies; for hoisting ore and waste; for ventilation and utilities; and/or as an auxiliary exit.
Smelting: A pyro-metallurgical operation in which gold precipitate from electro-winning or zinc precipitation is further separated from impurities.
Stoping: The process of excavating ore underground.
Stripping ratio: The ratio of waste tonnes to ore tonnes mined calculated as total tonnes mined less ore tonnes mined divided by ore tonnes mined.
Tailings: Finely ground rock of low residual value from which valuable minerals have been extracted.
Tonnage: Quantity of material measured in tonnes.
Tonne: Used in metric statistics. Equal to 1,000 kilograms.
Waste: Material that contains insufficient mineralisation for consideration for future treatment and, as such, is discarded.
Yield: The amount of valuable mineral or metal recovered from each unit mass of ore expressed as ounces per short ton or grams per metric tonne.
Zinc precipitation: Zinc precipitation is the chemical reaction using zinc dust that converts gold in solution to a solid form for smelting into unrefined gold bars.




11
Table of Contents
Abbreviations

%CuPercentage copper
AAGLAngloGold Ashanti (Ghana) Limited
AAILAngloGold Ashanti (Iduapriem) Limited
AARLAnglo American Research Laboratories
ACAircore drilling
ADRAmerican Depositary Receipt
ADSAmerican Depositary Share
AFIPArgentinean Tax Authority
AGACAngloGold Ashanti Colombia S.A.S.
AGAGAngloGold Ashanti (Ghana) Limited
AGAHAngloGold Ashanti Holdings plc
AGMAnnual General Meeting
AIFRAll injury frequency rate
AISCAll-in sustaining costs
ANLAColombian National Environmental Licencing Authority
ANMBrazilian National Mining Agency
ASXAustralian Securities Exchange
AuContained gold
BBBEEAusIMMThe Australasian Institute of Mining and Metallurgy
B-BBEEBroad-Based Black Economic Empowerment
BBSYBank Bill Swap Bid Rate
BEEBlack Economic Empowerment
BIFBanded iron formation
BIOXBacterial oxidation
BLMUnited States Federal Bureau of Land Management
BMRRState of Nevada Division of Environmental Protection’s Bureau of Mining Regulation and Reclamation
bnBillion
BUSBlinf Upper Stoping
CDIChess Depositary Interests
CdSCórrego do Sítio
CEOChief Executive Officer
CFOChief Financial Officer
GFWGalinheiro Footwall
CHESSClearing House Electronic Settlement System
Companies ActCILCarbon-in-leach
CIPCarbon-in-pulp
COSOCommittee of Sponsoring Organisations of the Treadway Commission
CPIConsumer Prices index
CSDCentral Securities Depository
CTCContributed tax capital
CVSACerro Vanguardia S.A.
DDDiamond drilling
DEIDeclaration of Environmental Impact
D&IDiversity and Inclusion
DIANColombian Tax Office
DMRESouth African Companies Act, No. 71Department of 2008, as amended
DMTNPDomestic medium-term notes programmeMineral Resources and Energy
DRCDemocratic Republic of the Congo
DSPDeferred Share Plan
EHSEnvironmental, health and safety
EIAEnvironmental Impact Assessment
EPSEnhanced Production Scheduler
ERPEnterprise resource planning
ESGEnvironmental, social and governance
EUEuropean Union
EVP/COOExecutive Vice President/Chief Operating Officer
Exchange ActUnited States Securities Exchange Act of 1934, as amended
ExCommExecutive Committee



12
Table of Contents
EYErnst & Young Inc.
E4VExploring for value
FCAUK Financial Conduct Authority
FMAArgentinean Federal Mining Agreement
FSFeasibility Study
FVTOCIFair value through other comprehensive income
FVTPLFair value through profit or loss
G or gGrams
g/tGrams per metric tonne
GCLGramalote Colombia Limited
GDPREU General Data Protection Regulation
GGBGeita Greenstone Belt
GGMGeita Gold Mine
GhDSGhanaian Depositary Share
GHGGreenhouse gas
GhSEGhana Stock Exchange
GISTMGlobal Industry Standard on Tailings Management
GJGigajoule
GRIGlobal Reporting Initiative
HDSAHistorically disadvantaged South Africans
IASBInternational Accounting Standards Board
ICEIntercontinental Exchange
ICMMInternational Council on Mining & Metals
IFRSInternational Financial Reporting Standards as issued by the IASB
JIBARIIRCJohannesburg Interbank Agreed RateInternational Integrated Reporting Council
IMFInternational Monetary Fund
IRSUnited States Internal Revenue Services
iSIMSIntegrated Sustainability Information Management System
ITInformation technology
JORCAustralasian Code for Reporting Exploration Results, Mineral Resources and Ore Reserves
JSEJSE Limited (Johannesburg Stock Exchange)
JVJoint venture
King III and IVThe King Report on Corporate Governance for South Africa, 2016
Kg or kgKilograms
Km or kmKilometres
Km2
Square kilometres
KozThousand ounces
LBMALondon Bullion Market Association
LHOSLong Hole Open Stoping
LIBORLondon Interbank Offer Rate
LOMLife of mine
LOSLongitudinal Open Stoping
LRSLongitudinal Retreat Stoping
LUCLocalised Uniform Conditioning
M or mMetre or million, depending on the context
MlbsMBCMining and Building Contractors Limited
MCFMine call factor
MCQMinera de Cobre Quebradona S.A.S. B.I.C.
MEMTanzanian Ministry of Minerals
MetRFMetallurgical recovery factor
MlbMillion pounds
MMEBrazilian Ministry of Mines and Energy
MoIMemorandum of Incorporation
MozMillion ounces
MtMPRDAMillion tonnes or tonsSouth African Mineral and Petroleum Resources Development Act, No. 28 of 2002
MPRDAASouth African Mineral and Petroleum Resources Development Amendment Act, No. 49 of 2008
MRFMining recovery factor
mRLMetres relative level



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Table of Contents
MSGMineração Serra Grande S.A.
MSODatamine Mineable Shape Optimiser
MSRMinimum Shareholding Requirement
MtpaMillion tonnes/tonstonnes per annum
NEDNon-Executive Director
NEMASouth African National Environmental Management Act, No. 107 of 1998, as amended
NGERAustralian National Greenhouse and Energy Reporting
NGONon-governmental organisation
NHILGhanaian National Health Insurance Levy
NIHLNoise-induced hearing loss
NSRNet Smelter Return
NYSENew York Stock Exchange
OLDOccupational lung diseases
OTCOver-The-Counter
Oz or ozOunces (troy)
oz/tOunces per tontonne
oz/TECPASEAOunces per total employee costedPTP (AGAG) Smoke Effect Association
PCAOBPublic Company Accounting Oversight Board (United States)
PFICPassive foreign investment company
PFSPreliminary Feasibility Study
PMMCPrecious Minerals Marketing Company Ltd
POPIASouth African Protection of Personal Information Act, No. 4 of 2013
PTPPompora Treatment Plant
QKNAQuantitative Kriging Neighbourhood Analysis
RCReverse circulation
RemcoRemuneration and Human Resources Committee
RMFResource modification factor
ROMRun of mine
RRSCMineral Resource and Mineral Reserve Steering Committee
SA Companies ActSouth African Companies Act, No. 71 of 2008, as amended
SACNASPSouth African Council for Natural Scientific Professions
SAGSociété AngloGold Ashanti de Guinée S.A.
SA Income Tax ActSouth African Income Tax Act, No. 58 of 1962, as amended
SAMRECSouth African Code for the Reporting of Exploration Results, Mineral Resources and Mineral Reserves 2016 edition
SARBSouth African Reserve Bank
SARSSouth African Revenue Service
SOXUnited States Sarbanes-Oxley Act of 2002, as amended
SASBSustainability Accounting Standards Board
SCBStandard Chartered Bank Ghana PLC
SECUnited States Securities and Exchange Commission
Securities ActUnited States Securities Act of 1933, as amended
SMSShort messaging system
SMUSelective mining unit
SOFRSecured Overnight Financing Rate
SOKIMOSociété Minière de Kilo-Moto S.A.
SOMIQSociété Miniere Internationale du Québec
STTSecurities transfer tax
SWNVFSouthwestern Nevada volcanic field
T or tTons (short) or tonnesTonnes (metric)
TOSTransverse Open Stoping
Tpa or tpaTonnes/tonsTonnes per annum
TRATanzanian Revenue Authority
TSFTailings storage facility
UCUniform Conditioning
UNCITRALUnited Nations Commission on International Trade Law
UNECAUnited Nations Economic Commission for Africa
UNGCUnited Nations Global Compact
UNGPUnited Nations Guiding Principles for Business and Human Rights



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Table of Contents
UNSDGsUnited Nation Sustainable Development Goals
US/U.S./USA/United StatesUnited States of America
US/SA Double Taxation TreatyConvention Between the Government of the United States of America and the Republic of South Africa for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income and Capital Gains, signed 17 February 1997
UTMUniversal Transverse Mercator
VATValue added tax
VPSHRVoluntary Principles on Security and Human Rights
WGCWorld Gold Council
XBRLeXtensible Business Reporting Language (including in-line XBRL, i-XBRL)



Note: Rounding of figures in this report may result in computational discrepancies.




15
Table of Contents
PART I
ITEM 1: IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISORS


Not applicable.






ITEM 2: OFFER STATISTICS AND EXPECTED TIMETABLE


Not applicable.







ITEM 3: KEY INFORMATION



3A.    [Reserved]

3A.SELECTED FINANCIAL DATA


The selected financial information set forth below for the years ended and as at 31 December 2018, 2017 and 2016 has been derived from, and should be read in conjunction with, the IFRS financial statements included under Item 18 of this annual report. The selected financial information for the years ended and as at 31 December 2015 and 2014 has been derived from the IFRS financial statements not included in this annual report.








3B.    CAPITALISATION AND INDEBTEDNESS
  Year ended 31 December
 2018
 2017
 2016
 2015
 2014
 $
 $
 $
 $
 $
  (in millions, except share and per share amounts)
Consolidated income statement         
Revenue from product sales3,943
 4,510
 4,223
 4,015
 4,952
Cost of sales(3,173) (3,736) (3,401) (3,294) (3,972)
Gain (loss) on non-hedge derivatives and other commodity contracts2
 10
 19
 (7) 13
Gross profit772
 784
 841
 714
 993
Corporate administration, marketing and other expenses(76) (64) (61) (78) (92)
Exploration and evaluation costs(102) (114) (133) (132) (142)
Other operating expenses(97) (88) (110) (96) (28)
Special items(170) (438) (42) (71) (260)
Operating profit (loss)327
 80
 495
 337
 471
Dividends income2
 —
 —
 —
 —
Interest income17
 15
 22
 28
 24
Other gains (losses)(9) (11) (88) (17) (7)
Finance costs and unwinding of obligations(178) (169) (180) (245) (276)
Fair value adjustments(3) —
 9
 66
 (17)
Share of associates and joint ventures’ profit (loss)122
 22
 11
 88
 (25)
Profit (loss) before taxation278
 (63) 269
 257
 170
Taxation(128) (108) (189) (211) (225)
Profit (loss) after taxation from continuing operations150
 (171) 80
 46
 (55)
Discontinued operations         
Profit (loss) from discontinued operations—
 —
 —
 (116) 16
Profit (loss) for the year150
 (171) 80
 (70) (39)
          
Allocated as follows         
Equity shareholders         
- Continuing operations133
 (191) 63
 31
 (74)
- Discontinued operations—
 —
 —
 (116) 16
Non-controlling interests         
- Continuing operations17
 20
 17
 15
 19
 150
 (171) 80
 (70) (39)
          
Basic earnings (loss) per ordinary share (cents)32
 (46) 15
 (20) (14)
Earnings (loss) per ordinary share from continuing operations32
 (46) 15
 8
 (18)
Earnings (loss) per ordinary share from discontinued operations—
 —
 —
 (28) 4
          
Diluted earnings (loss) per ordinary share (cents)32
 (46) 15
 (20) (14)
Earnings (loss) per ordinary share from continuing operations32
 (46) 15
 8
 (18)
Earnings (loss) per ordinary share from discontinued operations—
 —
 —
 (28) 4
Dividend per ordinary share (cents)6
 10
 —
 —
 —

 As at 31 December
 2018
 2017
 2016
 2015
 2014
 $
 $
 $
 $
 $
 (in millions, except share and per share amounts)
Consolidated balance sheet data         
ASSETS         
Non-current assets         
Tangible assets3,381
 3,742
 4,111
 4,058
 4,863
Intangible assets123
 138
 145
 161
 225
Investments in associates and joint ventures1,528
 1,507
 1,448
 1,465
 1,427
Other investments141
 131
 125
 91
 126
Inventories106
 100
 84
 90
 636
Trade, other receivables and other assets102
 67
 34
 13
 20
Deferred taxation—
 4
 4
 1
 127
Cash restricted for use35
 37
 36
 37
 36
Other non-current assets—
 —
 —
 18
 25
 5,416
 5,726
 5,987
 5,934
 7,485
Current assets         
Other investments6
 7
 5
 1
 —
Inventories652
 683
 672
 646
 888
Trade, other receivables and other assets209
 222
 255
 196
 278
Cash restricted for use31
 28
 19
 23
 15
Cash and cash equivalents329
 205
 215
 484
 468
 1,227
 1,145
 1,166
 1,350
 1,649
Non-current assets held for sale—
 348
 —
 —
 —
 1,227
 1,493
 1,166
 1,350
 1,649
Total assets6,643
 7,219
 7,153
 7,284
 9,134
EQUITY AND LIABILITIES         
Share capital and premium7,171
 7,134
 7,108
 7,066
 7,041
Accumulated losses and other reserves(4,519) (4,471) (4,393) (4,636) (4,196)
Shareholders’ equity2,652
 2,663
 2,715
 2,430
 2,845
Non-controlling interests42
 41
 39
 37
 26
Total equity2,694
 2,704
 2,754
 2,467
 2,871
Non-current liabilities         
Borrowings1,911
 2,230
 2,144
 2,637
 3,498
Environmental rehabilitation and other provisions827
 942
 877
 847
 1,052
Provision for pension and post-retirement benefits100
 122
 118
 107
 147
Trade, other payables and deferred income3
 3
 4
 5
 15
Deferred taxation315
 363
 496
 514
 567
 3,156
 3,660
 3,639
 4,110
 5,279
Current liabilities         
Borrowings139
 38
 34
 100
 223
Trade, other payables, deferred income and provisions594
 638
 615
 516
 695
Taxation60
 53
 111
 91
 66
 793
 729
 760
 707
 984
Non-current liabilities held for sale—
 126
 —
 —
 —
 793
 855
 760
 707
 984
Total liabilities3,949
 4,515
 4,399
 4,817
 6,263
Total equity and liabilities6,643
 7,219
 7,153
 7,284
 9,134
Number of ordinary shares as adjusted to reflect changes in share capital412,769,980
 410,054,615
 408,223,760
 405,265,315
 404,010,360
Share capital (exclusive of long-term debt and redeemable preference shares)16
 16
 16
 16
 16
Net assets2,694
 2,704
 2,754
 2,467
 2,871

Annual dividends

The table below sets forth the amounts of interim, final and total dividends declared in respect of the past five years in cents per ordinary share.
Year ended 31 December (1)
2018
 2017
 2016
 2015
 2014
South African cents per ordinary share70
 130
 —
 —
 —
          
US cents per ordinary share(2)
6
 10
 —
 —
 —

(1)
Since 2017, the dividend policy allows the Board, at its discretion, to declare an annual dividend to be based on 10 percent of the free cash flow generated by the business, before growth capital expenditure, for that financial year.
(2)
Dividends for these periods were declared in South African cents. US dollar cents per share figures have been calculated based on exchange rates prevailing on each of the respective payment dates.

For further information on the company’s policy on dividend distributions, see “Item 8A: Consolidated Financial Statements and Other Financial Information—Dividends”.



3B.CAPITALISATION AND INDEBTEDNESS


Not applicable.










3C.REASONS FOR THE OFFER AND USE OF PROCEEDS

3C.    REASONS FOR THE OFFER AND USE OF PROCEEDS

Not applicable.













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3D.RISK FACTORS


This section describes many of the risks that could affect AngloGold Ashanti. There may, however, be additional risks unknown to AngloGold Ashanti and other risks, currently believed to be immaterial, that could turn out to be material. Additional risks may arise or become material subsequent to the date of this document. These risks, either individually or simultaneously, could significantly affect the group’s business, operational and financial results and the price of its securities.



SUMMARY OF RISK FACTORS

1.    Risks Related to AngloGold Ashanti’s Industry

•AngloGold Ashanti is increasingly expected to operate in a sustainable manner and to provide benefits and mitigate adverse impacts to affected communities. Failure to do so can result in legal suits, additional costs to address social or environmental impacts of operations, investor divestment, adverse reputational impacts and loss of “social licence to operate”, and could adversely impact AngloGold Ashanti’s financial condition.
•AngloGold Ashanti is subject to many risks related to AngloGold Ashanti’sthe development of existing and new mining projects that may adversely affect its results of operations and financial condition as aprofitability.
•AngloGold Ashanti is subject to extensive environmental, health and safety laws and regulations. Failure to comply could result in enforcement proceedings, claims, suspension of factorsoperations, community protest and/or additional capital or operating expenditures that impact the gold mining industry generally.

Commodity market price fluctuations could adversely affect the profitability of operations.

AngloGold Ashanti’s revenues are primarily derived from the sale of gold and, to a lesser extent, silver and sulphuric acid.  The market prices for these commodities fluctuate widely.  These fluctuations are caused by numerous factors beyond the company’s control.  For example, the market price of gold may change for a variety of reasons, including:

speculative positions taken by investors or traders in gold;
monetary policies announced or implemented by central banks, including the U.S. Federal Reserve;
changes in the demand for gold as an investment ;
changes in the demand for gold used in jewellery and for other industrial uses, including as a result of prevailing economic conditions;
changes in the supply of gold from production, divestment, scrap and hedging;
financial market expectations regarding the rate of inflation;
the strength of the U.S. dollar (the currency in which gold trades internationally) relative to other currencies;
changes in interest rates;
actual or anticipated sales or purchases of gold by central banks and the International Monetary Fund (IMF);
gold hedging and de-hedging by gold producers;
global or regional political or economic events; and
the cost of gold production in major gold producing countries.

The market price of gold has been and continues to be significantly volatile. During 2018, the gold price traded from a low of $1,173.56 per ounce to a high of $1,358.09 per ounce, remaining well below a peak of $1,900 per ounce in September 2011. Between 1 January 2019 and 19 March 2019, the gold price traded between a low of $1,279.53 per ounce and a high of $1,341.08 per ounce. On 19 March 2019 the afternoon price for gold on the London Bullion Market was $1,307.70 per ounce. In addition to protracted declines such as the one experienced from 2011 through 2015, the price of gold is also often subject to sharp, short-term changes.

For example, during the three-day period from Friday, 12 April 2013, to Monday, 15 April 2013, the price of gold fell by $228 per ounce. Additionally, the spot price of gold fell by more than four percent to $1,086 per ounce in overnight trading on 20 July 2015 after traders sold 57 tonnes of gold in Shanghai and New York. By taking the price of gold below $1,100 per ounce, the July 2015 sell-off triggered a high volume of stop-loss orders that had been put in place by traders to automatically sell when the gold price reached a predetermined level. This caused the gold price to drop further. Any sharp or prolonged fluctuations in the price of gold can have a material adverse impact on the company’s profitability and financial condition.

Central banks’ policies can affect the price of gold. If gold is treated as a safe alternative investment during economic downturns, the price of gold may fall when central banks end quantitative easing or increase interest rates. For example, the price of gold fell to annual lows when the Chairman of the U.S. Federal Reserve announced a reduction in quantitative easing in June 2013, the end of the quantitative easing programme in October 2014 and an increase in interest rates in December 2015. Similarly, gold

prices continued on a downward trend after the Chairman’s announcement of an increase in interest rates in December 2016. In addition, the gold price has generally decreased since the beginning of 2018 in light of the Chairman’s announcement of ongoing interest rate increases and may continue to be unpredictable. Any future announcements or proposals by the U.S. Federal Reserve, or any of its board members or regional presidents or other similar officials in other major economies may materially and adversely affect the price of gold and, as a result, AngloGold Ashanti’s financial condition or reputation.
•Compliance with tailings management requirements and standards, and potential liabilities in the event of a failure to timely comply or an incident involving a tailings storage facility, could adversely impact AngloGold Ashanti’s financial condition, results of operations.operations and reputation.

•AngloGold Ashanti’s ability to replace Mineral Reserve is subject to uncertainty and risks inherent in exploration, technical and economic feasibility studies and other project evaluation activities as well as competition within the industry for attractive mining properties.
Whilst overall supply•Mining is inherently hazardous and demand typically do not affect the gold price in the same manner or to the same degree as other commodities due to the considerable sizerelated risks of historical mined stocks of gold, events that affect supply and demand may nonetheless have an impact. Accordingcause disruptions to the World Gold Council, demand for gold is generally driven by four main sectors, namely jewellery, investment, central banks and technology. The market for gold bullion bar, AngloGold Ashanti’s primary product, is generally limitedmining operations may adversely impact cash flows and overall profitability.
•Mining operations and projects are vulnerable to bullion banks, the number of which has declined in recent years. Central banks’ purchases cansupply chain disruption such that operations and development projects could be adversely affected by declinesshortages of, as well as the lead times to deliver, strategic spares, critical consumables, mining equipment or metallurgical plant.
•AngloGold Ashanti’s operations are vulnerable to infrastructure constraints.
•AngloGold Ashanti faces strong competition and industry consolidation.

2.    Risks Related to AngloGold Ashanti’s Operations and Business

•AngloGold Ashanti’s mineral deposits, Mineral Reserve and mining operations are located in foreign exchange reserves. For example, this was one of the factors that drove a 33 percent decline in net gold purchases by central banks in 2016 compared to 2015. Demand for gold is also largely impacted by trends in Chinacountries where political, tax and India, which account for the highest gold consumption worldwide. Demand for goldeconomic laws and policies may be particularly affected by governmentchange rapidly and unpredictably and such changes and policies in these countries. For example, according to the World Gold Council, gold demand in China fell 38 percent in 2014 compared to 2013 and demand for gold bars and coins fell by 50 percent due in part to the Chinese government’s anti-corruption programme, which put limited pressure on demand for gold ornaments and so-called “gift bars”. In India, government intervention to try to reduce the trade deficit, a material portion of which is linked to gold imports, led to various import taxes being introduced, which unsettled the domestic market for gold in 2016. The Indian government also introduced measures in 2016 to reduce undeclared income, including a demonetisation policy put in place in November 2016. Although gold imports temporarily increased when the Indian government announced its decision to retire the 500-rupee and 1,000-rupee bank notes, as soon-to-be obsolete notes were used to buy gold, gold imports registered a 55 percent decline by value the following month due to the lack of liquidity resulting from the demonetisation. These and similar policies in India, China or other large gold-importing countries couldmay adversely affect demand for, and consequently pricesboth the terms of gold.its mining concessions, as well as its ability to conduct operations in certain countries.

Furthermore, the shift in demand from physical gold to gold-related investments and speculative instruments may exacerbate the volatility•The prevalence of the gold price. For example, the Finance Ministry in India announced an offering of sovereign gold bonds as an alternative to the purchase of physical gold in March 2015 and conducted several follow-on offerings in 2016. Thisoccupational health diseases and other policies ofdiseases and the Indian government contributed to a 22 percent decline in gold jewellery demand in India between 2015potential costs and 2016. Slower consumption of physical gold in India, resulting from a move toward gold-tracking investments or otherwise,liabilities related thereto may have an adverse impacteffect on global demand for,the business and pricesresults of bullion.operations of AngloGold Ashanti.

•AngloGold Ashanti’s inability to retain its senior management may have an adverse effect on its business.
A sustained period of significant gold price volatility may adversely affect the company’s ability to evaluate the feasibility of undertaking new capital projects or the continuity of existing operations, to meet its operational targets or to make other long-term strategic decisions.  Lower and more volatile gold prices, together with other factors, have led •AngloGold Ashanti competes with mining and other companies for key human resources with critical skills and its inability to alterretain key personnel could have an adverse effect on its expansion and development strategy and consider ways to align its asset portfolio to take account of such expectations and trends. As a result, the company may decide to curtail or temporarily or permanently shut down certain of its exploration and production operations, which may be difficult and costly to effect. A further sustained decrease in the price of goldbusiness.
•Increased labour costs could also have a material adverse effect on AngloGold Ashanti’s financial condition and results of operations and financial condition.
•The use of contractors at certain of the company’s operations may expose AngloGold Ashanti to delays or suspensions in mining activities and increases in mining costs.
•AngloGold Ashanti’s Mineral Reserve, deposits and mining operations are located in countries that face instability, public health and security risks that may adversely affect both the terms of its mining concessions, as well as its ability to conduct operations in certain countries.
•Labour unrest, activism and disruptions (including protracted stoppages) could have a material adverse effect on AngloGold Ashanti’s results of operations and financial condition.
•Artisanal and illegal mining occurs on AngloGold Ashanti’s properties, which can disrupt the company’s business and expose the company to liability.
•AngloGold Ashanti’s mining rights in the countries in which it operates could be altered, suspended or cancelled for a variety of reasons, including breaches in its obligations in respect of such mining rights.
•Title to AngloGold Ashanti’s properties may be unable to quickly adjust its cost structure to reflect the reduced gold price environment.  Mines with marginal headroom may beuncertain and subject to decreaseschallenge.

3.    Risks Related to AngloGold Ashanti’s Corporate and Financing Structure and Strategy

•AngloGold Ashanti expects to have significant financing requirements.
•Sales of large quantities of AngloGold Ashanti’s ordinary shares and American Depositary Shares (“ADSs”), and the perception that these sales may occur or other dilution of the company’s equity, could adversely affect the prevailing market price of the company’s securities.



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•AngloGold Ashanti may not pay dividends or make similar payments to shareholders in value that are not temporary, which may result in impairment losses. See “—the future.
•Certain factors may affect AngloGold Ashanti’s ability to support the carrying amount of its property, plant and equipment, intangible assets and goodwill on the balance sheet. If the carrying amount of its assets is not recoverable, AngloGold Ashanti may be required to recognise an impairment charge, which could be significant ". The market value of gold inventory may be reduced and marginal stockpile and heap leach inventories may be written down to net realisable value or may not be processed further as it may not be economically viable at lower gold prices. In addition, significant.
•AngloGold Ashanti is obliged to meet certain financial covenants under the termsdoes not have full management control over some of its borrowing facilitiessignificant joint venture projects and its ability to continue to meetother interests. If the operators of these covenantsprojects do not manage these effectively and efficiently, the company’s investment in these projects could be adversely affected by a further sustained decreaseand its reputation could be harmed.
•Any downgrade of credit ratings assigned to AngloGold Ashanti’s debt securities could increase future interest costs and adversely affect the availability of new financing.
•The level of AngloGold Ashanti’s indebtedness could adversely impact its business.
•Any acquisition or acquisitions that AngloGold Ashanti may complete may expose the company to new geographic, political, legal, social, operating, financial and geological risks.
•The occurrence of events for which AngloGold Ashanti is not insured or for which its insurance is inadequate may adversely affect cash flows and overall profitability.
•Changes in the pricemethod of gold.  The usedetermining LIBOR, or the replacement of lower gold prices in Ore Reserve estimates and life of mine plans could also result in material impairments of the company’s investment in mining properties or a reduction in its Ore Reserve estimates and corresponding restatements of its Ore Reserve and increased amortisation, reclamation and closure charges.LIBOR with an alternative reference rate, may adversely affect interest expense related to AngloGold Ashanti’s credit facilities.


4.    Market Risks

•The price of silver has also experienced significantgold, AngloGold Ashanti’s principal product, and other commodity market price fluctuations in past years.  During 2018,could adversely affect the price varied between a lowprofitability of $13.96 per ounce and a high of $17.57 per ounce. On 19 March 2019, the price of silver was $15.35 per ounce.operations.

Factors affecting the price of silver include investor demand, physical demand for silver bars, industrial and retail off-take, and silver coin minting.

If revenue from sales of gold, silver or sulphuric acid falls below their respective cost of production for an extended period, AngloGold Ashanti may experience losses and curtail or suspend some or all of its exploration projects and existing operations or sell underperforming assets.  Declining commodities prices may also force a reassessment of the feasibility of a particular project or projects, which could cause substantial delays or interrupt operations until the reassessment can be completed.






•Foreign exchange fluctuations could have a material adverse effect on AngloGold Ashanti’s results of operations and financial condition.

Gold is principally a U.S. dollar-priced commodity and most of the company’s revenues are realised in, or linked to, U.S. dollars, whilst cost of sales are largely incurred in the local currency where the relevant operation is located.  Given the company’s global operations and local foreign exchange regulations, some of its funds are held in local currencies, such as the South African rand, Ghanaian cedi, Brazilian real, Argentinian peso and the Australian dollar.  The weakness of the U.S. dollar against local currencies results in higher cost of sales in U.S. dollar terms.  Conversely, the strengthening of the U.S. dollar lowers local cost of sales in U.S. dollar terms.

From time to time, AngloGold Ashanti may implement currency hedges intended to reduce volatility in our foreign currency exposure.  Such hedging strategies may not be successful, and any of AngloGold Ashanti unhedged exchange payments will continue to be subject to market fluctuations.

Exchange rate movements may have a material impact on AngloGold Ashanti’s operating results. For example, based on average exchange rates received in 2018, the company estimates that a one percent strengthening of all of the South African rand, Brazilian real, the Argentinian peso or the Australian dollar against the U.S. dollar will, other factors remaining equal, result in an increase in total cash costs of approximately $5.3 per ounce.

•The profitability of mining companies’ operations and the cash flows generated by these operations are significantly affected by fluctuations in input production prices, many of which are linked to the prices of oil and steel.

Fuel, energy and consumables, including diesel, heavy fuel oil, chemical reagents, explosives, tyres, steel and mining equipment used or consumed•Fluctuations in mining operations form a relatively large partthe exchange rate of currencies may reduce the operating costs and capital expendituremarket value of AngloGold Ashanti’s securities, as well as the market value of any mining company.

AngloGold Ashanti has no influence over the cost of these consumables, many of which are linked to some degree to the price of oil and steel. Whilst, from time to time, AngloGold Ashanti may implement diesel hedges intended to reduce exposure to changes in the oil price, such hedging strategies may not always be successful, and any of the company’s unhedged diesel consumption will continue to be subject to market fluctuations.

The price of oil has fluctuated between $50 and $87 per barrel of Brent Crude in 2018. As of 19 March 2019, the price of oil was at $67.48 per barrel of Brent Crude.  AngloGold Ashanti estimates that for each U.S. dollar per barrel risedividends or fall in the oil price, other factors remaining equal, total cash costs of all its operations change by approximately $1.00 per ounce. The total cash costs of certain of the company’s mines, particularly Sadiola, Siguiri, Geita, Tropicana, Iduapriem and Kibali are most sensitive to changes in the price of oil. Even when fuel prices are in decline, expected savings may be partly offset by increases in governments’ fixed fuel levies or the introduction by governments of new levies. For example, in Tanzania, fuel duty exemption claims are required to be submitted after consumption of the related fuel and are subject to authorisationdistributions paid by the Tanzanian Customscompany.
•Global political and Excise authorities. The Tanzanian Ministereconomic conditions could adversely affect the profitability of Finance and Economic Affairs revoked, as from 1 July 2009, the Government Notice No. 480 of 2000 which granted mining companies an exemption from excise duty on fuel products . While AngloGold Ashanti believes that this revocation will not affect its status to claim exemption on fuel duty as the duty relief is protected by the Mining Development Agreement (MDA), there can be no assurance of protection under the MDA with respect to future changes to this or other duty exemptions. Currently, the Tanzanian tax authorities refuse all excise duty exemptions on fuel supplied to AngloGold Ashanti's Geita mine contractors, which refusal has resulted in a cost impact of approximately $2 million per annum.operations.

Furthermore, the price of steel has also been volatile.  Steel is used in the manufacture of most forms of fixed and mobile mining equipment, which is a relatively large contributor to the operating costs and capital expenditure of a mine.  For example, in 2016 the price of flat hot rolled coil (North American Domestic FOB) steel traded between $379 per tonne as of 1 January 2016 and $630 per tonne as of 29 June 2016. On 19 March 2019, the price of flat hot rolled coil (North American Domestic FOB) was $700 per tonne.

Fluctuations in oil and steel prices have a significant impact on operating costs and capital expenditure estimates and, in the absence of other economic fluctuations, could result in significant changes in the total expenditure estimates for new mining projects or render certain projects non-viable, which could have a material adverse impact on the company’s results of operations and financial condition.

•Energy cost increases and power fluctuations and stoppages could adversely impact the company’sAngloGold Ashanti’s results of operations and financial condition.

Increasing global demand for energy, concerns•Concerns about nuclear power and the limited growth of new supply are impacting the price and supply of energy.  The transition of emerging markets to higher energy consumption, actual and proposed taxation of carbon emissions as well as unrest and potential conflict in the Middle East, amongst other factors, could result in increased demandintegrity or constrained supply and sharply escalating oil and energy prices.


AngloGold Ashanti’s mining operations are substantially dependent upon electrical power generated by local utilities or by power plants situated at some of its operations.  The unreliability of these local sources of power can have a material adverse effect on the company’s operations, as large amounts of power are required for ventilation, exploration, development, extraction, processing and other mining activities on the company’s properties.

In South Africa, electricity is supplied by Eskom, a state-owned power generation company. Although other competitors in the renewable energy market have now entered the power supply market, the power supply is still channelled through the Eskom infrastructure. Electricity is used for most of our business and safety-critical operations, including cooling, hoisting and dewatering.  Loss of power can therefore impact production and employee safety, and prolonged outages could lead to flooding of workings and ore sterilisation.  In 2008, Eskom and the South African government declared a national emergency and warned that they could no longer guarantee the availability of electricity due to a national supply shortage which at the time was blamed on coal supply shortages, heavy rainfall and unplanned generation-set outages as a result of maintenance backlog and asset ages. 

A warningreliability of the “very high” risk of blackouts was reissued at the start of 2011 and each year until 2015.  Since February 2014, AngloGold Ashanti has reduced its electricity consumption in South Africa by more than 10 percent measured in Gigawatt hour usage as requested by Eskom. Although Eskom introduced a schedule of rolling blackouts, or “load shedding”, the company has been able to negotiate such periods of load shedding with no impact on production due to curtailments using strict energy management and controls.

Since the beginning of 2017, the integrity of power supply to the company’s South African operations has improved due to Eskom's accelerated maintenance schedules and improved reliability as a result of reduced national demand for electricity.  However, in late November and early December 2018, Eskom was forced again to implement load shedding due to a combination of factors including plant breakdowns, urgent plant maintenance, lower-than-expected output from the Medupi and Kusile coal-fired power stations and damage to the power transmission lines linking South Africa to the Cahora Bassa hydroelectric dam in Mozambique. In mid-December 2018, President Cyril Ramaphosa appointed a task team to advise the South African government on how to resolve the power utility's operational, structural and financial challenges. Although it was able to keep operating during mid-December 2018 due to lower demand from business and industry, from early January 2019 onwards Eskom had to implement load shedding again. A high degree of load shedding has been continuous ever since. On 7 February 2019, President Cyril Ramaphosa announced during his State of the Nation Address (SONA) that Eskom will be unbundling into three separate entities, i.e. Generation, Transmission and Distribution, to improve operations and contain costs.

Eskom and the National Energy Regulator of South Africa (NERSA), which sets prices and tariffs for Eskom recognise the need to increase electricity supply capacity, and a series of tariff increases and proposals have been enacted since 2010 to assist in the funding of this expansion. According to reports in early 2019, Eskom is about $29 billion in debt and has been seeking ways to reduce its liabilities. Furthermore, on 12 March 2018, David Mabuza, Deputy President of South Africa, stated before the South African National Assembly that Eskom's debt could peak at about $35 billion after the completion of the Medupi and Kusile coal-fired power stations. On 14 January 2019, NERSA started a series of nationwide public hearings on what South Africans will be paying for electricity. Over the course of three weeks, NERSA held hearings on what the debt-laden national power utility will get to charge for electricity in years ahead and it announced its decision on 7 March 2019. The announcement was done in two parts covering the annual revenue allocation for the next three years as well as the amount Eskom will be allowed to recover from its customers based on actual sales and expenditure in 2017/2018 versus the amount projected when the revenue for that period was originally allocated about six years earlier. In March 2019, Eskom challenged NERSA’s decision to allow Eskom to recover only ZAR190 billion for the current financial year (2019) instead of the ZAR215 billion Eskom had applied for. No date has yet been determined for the court to hear this matter. Eskom has now also lodged a challenge to NERSA’s three decisions in terms of the Regulatory Clearing Account (RCA) methodology, which allowed Eskom to recover only about ZAR32.69 billion in relation to actual sales and expenses in 2014/2015, 2015/2016 and 2016/2017. This is significantly less than the ZAR66.6 billion Eskom had applied for. The ZAR32.69 billion will be recovered by an addition to electricity tariffs in the next four years, which will add to the revenue allocation NERSA announced on 7 March 2019. It is unclear when these challenges lodged will be finalised, but court processes are generally slow and the uncertainty this situation brings about the future price path could continue for a long time.
With respect to electricity tariffs, since 2013, NERSA allowed Eskom to increase such tariffs at an average yearly increase of 8 percent for 2013 and 2014, 12.69 percent for 2015, 9.4 percent for 2016, 2.2 percent for 2017 and a 5.23 percent for 2018. Eskom announced in October 2018 that it has asked NERSA for a 15 percent tariff increase per year for the following three financial years. In the past, NERSA has at times not granted the full tariff increases stating that Eskom needed to change its operating model and reduce its costs for the benefit of the South African economy. Rather than the double-digit increases requested by Eskom, power tariffs will only rise by 9.4 percent in 2019, 8.1 percent in 2020 and 5.2 percent in 2021.

There can be no assurance as to the existence or nature of any government intervention with respect to tariff increases in the future.  Other difficulties at Eskom, relating to a large financial deficit, may result in additional tariff increases.

Additionally, Eskom has been mired in allegations of corruption and is the subject of a parliamentary investigation which has implicated a number of its highest ranking executives. As energy represents a large proportion of the company's operating costs in South Africa, tariff increases have had, and any future increases will have, a materially adverse impact on the total cash costs of the company's South African operations.


In Ghana and Brazil, the company has also identified a risk of energy shortages.  The company’s mining operations in Ghana depend on hydroelectric power supplied by the state-controlled Volta River Authority (VRA), which is supplemented by thermal power from the Takoradi plant and a smaller unit at Tema.  AngloGold Ashanti negotiates rates directly with the VRA to power the Obuasi mining operations and the VRA may not agree to a satisfactory rate during future rounds of negotiations. AngloGold Ashanti procures electricity for Iduapriem from the Electricity Company of Ghana (ECG) which is supplied by the VRA.

Ghana has a major power generation deficit that has resulted in significant load shedding across the country.  For example, the company experienced extended power interruptions in Ghana in the first quarter of 2014, which limited access to higher grade areas. It also experienced frequent load shedding at Iduapriem in 2015, at times experiencing multiple outages in a single day. During periods of below average inflows from the Volta reservoir, electricity supplies from the Akosombo Dam, the VRA’s primary generation source, may be curtailed, as occurred in 1998, 2003, 2006, 2007 and 2016. During periods of limited electricity availability, the grid is subject to disturbances and voltage fluctuations which can damage equipment.  Disruptions in the natural gas supply from Nigeria in March 2015, via the West Africa Gas Pipeline, have led to some reduction in thermal generation capacity and the use of more expensive light crude oil, which is putting upward pressure on power tariffs. In the past, the VRA has obtained power from neighbouring Côte d’Ivoire, which has intermittently experienced political instability and civil unrest.

In Brazil, a two-year drought in 2014 and 2015 adversely affected hydro-electrical power generation. Similar water shortages in the future could have an adverse impact on AngloGold Ashanti’s operations in Brazil.

In Guinea, Tanzania and Mali, the company’s mining operations are dependent on power supplied by outside contractors and supplies of fuel are delivered by road.  Power supplies in these countries have been disrupted in the past, resulting in production losses due to equipment failure.

Increased energy prices could also negatively impact operating costs and cash flow of AngloGold Ashanti’s operations.

Global economic conditionsLondon Bullion Market Association (“LBMA”) Gold Price Benchmark could adversely affect the profitability of operations.

AngloGold Ashanti’s operationsinvestor interest in gold and performance depend significantly on worldwide economic conditions. Despite signs of economic recovery in certain geographic markets, global economic conditions remain fragile with significant uncertainty regarding recovery prospects, levels of recovery and long-term economic growth effects. Concerns remain regarding the sustainability and future of both the European Monetary Union and its common currency, the Euro, and the European Union, in their current form, particularly following the vote in favour of the United Kingdom’s withdrawal from the European Union in June 2016 and the official triggering by the UK government of the "Brexit" process in March 2017 and the uncertainty of the resulting terms of the withdrawal and subsequent negotiations. Concerns also exist regarding the negative impacts of the downgrade of the sovereign credit rating of the Republic of South Africa in recent years.

Concerns remain regarding South Africa’s credit rating. On 24 November 2017, S&P Global downgraded South Africa’s credit rating to full sub-investment grade, while its counterpart Moody’s placed the country on review for downgrade. S&P Global's announcement followed a similar announcement by Fitch, affirming South Africa’s rating at sub-investment grade on 23 November 2017. Moody’s decision to put South Africa on review, rather than downgrade it outright, means that South Africa can remain in key global bond indices such as the Citigroup World Bond Index (WGBI). Moody’s held South Africa local and foreign issued debt on the cusp of investment and sub-investment grade. Membershipconfidence in the WGBI requires that at least Moody’s or S&P Global rates a country’s local currency rating as investment grade. Moody's on 23 March 2018 affirmed South Africa's investment-grade credit rating at Baa3 and revised its credit outlook to stable from negative. See “–Any downgrade of credit ratings assigned to AngloGold Ashanti’s debt securities could increase future interest costs and adversely affect the availability of new financing”.gold market.

These conditions and other disruptions to international credit markets and financial systems caused a loss of investor confidence and resulted in widening credit spreads, a lack of price transparency, increased credit losses and tighter credit conditions. Although aggressive measures taken by governments, the private sector and central banks have resulted in a modest economic recovery since 2012, any such recovery may remain limited in geographic scope. A significant risk also remains that this recovery could be slow or that the global economy could quickly fall back into an even deeper and longer lasting recession or even a depression. In 2014 and 2015, the credit ratings of some of the largest South African banks were downgraded by major credit rating agencies. Any significant weakening of the South African banking system could have a negative effect on the overall South African economy including the results of the company's South African operations.

Global economic turmoil, or the expectation that economic turmoil could worsen, could have follow-on effects on AngloGold Ashanti’s business that include inflationary cost pressures, interest rate fluctuations and commodity market fluctuations. Other effects that could negatively affect AngloGold Ashanti’s financial results and results of operations include, for example:
the insolvency of key suppliers or contractors, which could result in contractual breaches and a supply chain breakdown;
the insolvency of one or more joint venture partners, which could result in contractual breaches and disruptions at the operations of the company’s joint ventures;
changes in other income and expense, which could vary materially from expectations, depending on gains or losses realised on the sale or exchange of financial instruments and impairment charges that may be incurred with respect to investments;
a reduction in the availability of credit, which may make it more difficult for the company to obtain financing for its operations and capital expenditures or make that financing more costly;

exposure to the liquidity and insolvency risks of the company’s lenders and customers; and
impairment of operations.

In addition to the potentially adverse impact on the profitability of the company’s operations, any deterioration in or increased uncertainty regarding global economic conditions may increase volatility or negatively impact the market value of AngloGold Ashanti’s securities.

•Inflation may have a material adverse effect on results of operations.


Many5.    Other Regulatory and Legal Risks

•Failure to comply with laws, regulations, standards and contractual obligations, breaches in governance processes or fraud, bribery and corruption may lead to regulatory penalties, loss of licences or permits, negative effects on AngloGold Ashanti’s reported financial results, and adversely affect its reputation.
•AngloGold Ashanti is subject to the risk of litigation, the causes and costs of which are not always known.
•Compliance with “conflict minerals” and “responsible gold” legislation and standards could result in significant costs.
•AngloGold Ashanti’s operations are located in countries that have experienced high rates of inflation during certain periods. It is possible that significantly higher future inflation in the countries insubject to various climate change-related physical risks which the company operates may adversely impact its production activities, mine sites and personnel and/or result in an increase in operational costs in local currencies (withoutresource shortages or environmental damages.
•Compliance with emerging climate change-related requirements, including stricter regulations and the potential imposition of carbon taxes or emissions cap-and-trading schemes or the elimination of related subsidies, that are expected to be part of any transition to a concurrent devaluation of the local currency of operations against the U.S. dollar or an increase in the U.S. dollar price of gold). This could have a material adverse effect on the company’s results of operations and financial condition. Significantly higher and sustained inflation, with a consequent increase in operational costs,lower-carbon economy, could result in the rationalisation (including closure)significant additional costs and expose AngloGold Ashanti to additional liabilities.
•Increasing scrutiny and changing expectations from AngloGold Ashanti’s stakeholders, including communities, governments and NGOs as well as investors, lenders and other market participants, with respect to AngloGold Ashanti’s Environmental, Social and Governance (“ESG”) performance and policies may impose additional costs or expose AngloGold Ashanti to additional risks.
•AngloGold Ashanti’s inability to maintain an effective system of higher cost mines or projects.

Of particular concern is the inflation rate in Argentina which increased from an average of 10 percent in 2012 to 40.5 percent in 2016. Inflation in Argentina was recorded at 17.8 percent in 2017 and inflation rose to 47.5 percent in 2018. Hyper-inflationaryinternal control over financial reporting will be reflected in the financial statements of our local subsidiaries. However, hyper-inflationary movements are not reflected in the group’s consolidated financial statements as our local Argentinian subsidiary is deemed to have a US dollar functional currency. When inflation reaches highly inflationary levels in Argentina, social unrest and union activity may increase which in turn may have an adverse effect on investors’ confidence in the reliability of its financial statements.
•Breaches in cybersecurity and violations of data protection laws may adversely impact or disrupt AngloGold Ashanti’s operational costsbusiness.
•U.S. securities laws do not require AngloGold Ashanti to disclose as much information to investors as a U.S. issuer is required to disclose, and resultsinvestors may receive less information about the company than they might otherwise receive from a comparable U.S. company.







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Table of operation in that country.Contents

Mining companies face many risks relatedRisks Related to the development of mining projects that may adversely affect the company’s results of operations and profitability.

Development of AngloGold Ashanti’s mining projects may be subject to unexpected problems and delays that could increase the development and operating costs of the relevant project. In addition, a decrease in budgets relating to current or medium-term exploration and development could increase the company's development and operating costs in the long-term.Industry

There are a number of uncertainties inherent in the development and construction of a new mine or the extension of an existing mine. These uncertainties include the:
timing and cost of construction of mining and processing facilities, which can be considerable;
availability and cost of mining and processing equipment;
availability and cost of skilled labour, power, water and transportation;
availability and cost of appropriate smelting and refining arrangements;
applicable requirements under national and municipal laws and time needed to obtain the necessary environmental and other governmental permits; and
availability of funds to finance construction, development and environmental rehabilitation activities.

The remote location of many mining properties, permit requirements and delays in the issuance of the necessary permits, third-party legal challenges to individual mining projects and broader social or political opposition to mining may increase the cost, timing and complexity of mine development and construction. New mining operations could experience unexpected problems and delays during the development, construction, commissioning and commencement of production.

For example, AngloGold Ashanti may prove unable to successfully develop the La Colosa and Gramalote projects and the Nuevo Chaquiro deposit that is part of the Quebradona project in Colombia as well as other potential exploration sites due to difficulties that could arise in relation to, for example, social and community opposition, litigation and governmental regulatory or administrative proceedings, the classification of land covered by mining titles as an environmentally-protected area, ore body grades, definition of adequate Ore Reserve and Mineral Resource and the time taken to prove project feasibility that could result in the expiry of permits. See “ -Mining companies are subject to extensive environmental laws and regulations” and “Item 8A: Legal Proceedings -Colombia”.

Accordingly, AngloGold Ashanti’s future development activities may not result in the expansion or replacement of current production, or one or more new production sites or facilities may be less profitable than anticipated or may be loss-making. The company’s operating results and financial condition are directly related to the success of its project developments. A failure in the company’s ability to develop and operate mining projects in accordance with, or in excess of, expectations could negatively impact its results of operations, as well as its financial condition and prospects.

Mining companies face uncertainty and risks in exploration, feasibility studies and other project evaluation activities.


AngloGold Ashanti must continually replace Ore Reserve depleted by mining and production to maintain or increase production levels in the long term. This is undertaken by exploration activities that are speculative in nature. The ability of the company to sustain or increase its present levels of gold production depends in part on the success of its projects and it may be unable to sustain or increase such levels.

Feasibility studies and other project evaluation activities necessary to determine the current or future viability of a mining operation are often unproductive. Such activities often require substantial expenditure on exploration drilling to establish the presence, extent and grade (metal content) of mineralised material. AngloGold Ashanti undertakes feasibility studies to estimate the technical and economic viability of mining projects and to determine appropriate mining methods and metallurgical recovery processes. These activities are undertaken to estimate the Ore Reserve.

Once mineralisation is discovered, it may take several years to determine whether an adequate Ore Reserve exists, during which time the economic feasibility of the project may change due to fluctuations in factors that affect both revenue and costs, including:
future prices of metals and other commodities;
future foreign currency exchange rates;
the required return on investment as based on the cost and availability of capital; and
applicable regulatory requirements, including those relating to environmental or health and safety matters.

Feasibility studies also include activities to estimate the anticipated:
tonnages, grades and metallurgical characteristics of the ore to be mined and processed;
recovery rates of gold, uranium and other metals from the ore; and
capital expenditure and cash operating costs.

These estimates depend on assumptions made based on available data. Ore Reserve estimates are not precise calculations and depend on the interpretation of limited information on the location, shape and continuity of the mineral occurrence and on available sampling results. For example, following completion of enhanced prefeasibility studies for both projects, AngloGold Ashanti announced the maiden Ore Reserve for the Gramalote project in February 2018 and the maiden Ore Reserve for the Quebradona project in February 2019. No assurance can be given that Ore Reserve estimates or other estimates are accurate or that the indicated levels of gold, uranium, copper or other mineral will be produced. Further exploration and feasibility studies can result in new data becoming available that may change previous Ore Reserve estimates and impact the technical and economic viability of production from the project. Changes in the forecast prices of commodities, exchange rates, production costs or recovery rates may change the economic status of Ore Reserves resulting in revisions to previous Ore Reserve estimates. These revisions could impact depreciation and amortisation rates, asset carrying amounts and/or provisions for closure, restoration and environmental rehabilitation costs.

AngloGold Ashanti undertakes annual revisions to its Ore Reserve estimates based upon asset sales and acquisitions, actual exploration and production results, depletion, new information on geology, model revisions and fluctuations in production, forecasts of commodity prices, economic assumptions and operating and other costs. These factors may result in reductions in Ore Reserve estimates, which could adversely affect life-of-mine plans and consequently the total value of the company’s mining asset base. Ore Reserve restatements could negatively affect the company’s results of operations, as well as its financial condition and prospects.

Due to a declining rate of discovery of new gold Ore Reserve in recent years, AngloGold Ashanti faces intense competition for the acquisition of attractive mining properties. From time to time, the company evaluates the acquisition of an Ore Reserve, development properties or operating mines, either as stand-alone assets or as part of existing companies. AngloGold Ashanti’s decision to acquire these properties has been based on a variety of factors, including historical operating results, estimates and assumptions regarding the extent of the Ore Reserve, cash and other operating costs, gold prices, projected economic returns and evaluations of existing or potential liabilities associated with the relevant property and its operations and how these factors may change in the future. Other than historical operating results, these factors are uncertain and could have an impact on revenue, cash and other operating costs, as well as the process used to estimate the Ore Reserve.

As a result of these uncertainties and declining grades, the company’s exploration and acquisitions may not result in the expansion or replacement of current production, the maintenance of its existing Ore Reserve net of production or yield an increase in Ore Reserve. AngloGold Ashanti’s results of operations and financial condition are directly related to the success of its exploration and acquisition efforts and the ability to replace or increase the existing Ore Reserve as it is depleted. If the company is not able to maintain or increase its Ore Reserve, its results of operations as well as its financial condition and prospects could be adversely affected.

Mining companies face many potential disruptions to their operations, which may adversely impact cash flows and overall profitability.

Gold mining is susceptible to events that may adversely impact a mining company’s ability to produce gold and meet production and cost targets. These events include, but are not limited to:
accidents or incidents, including due to human error, during exploration, production or transportation resulting in injury, loss of life or damage to equipment or infrastructure;
air, land and water pollution;
social or community disputes or interventions;
security incidents;
surface or underground fires or explosions;
electrocution;
falls from heights and accidents relating to mobile machinery, including shaft conveyances and elevators, drilling blasting and mining operations;

labour force disputes and disruptions;
loss of information integrity or data;
activities of illegal or artisanal miners;
shortages in material and equipment;
mechanical failure or breakdowns and ageing infrastructure;
failure of unproven or evolving technologies;
energy and electrical power supply interruptions or rationing;
unusual or unexpected geological formations, ground conditions, including lack of mineable face length and ore-pass blockages;
water ingress and flooding;
process water shortages;
metallurgical conditions and gold recovery;
unexpected decline of ore grade;
unanticipated increases in gold lock-up and inventory levels at heap-leach operations;
fall-of-ground accidents in underground operations;
cave-ins, sinkholes, subsidence, rock falls, rock bursts or landslides;
failure of mining pit slopes, heap-leach facilities, water or solution dams, waste stockpiles and tailings dam walls;
changes to legal and regulatory requirements;
safety-related stoppages;
gold bullion or concentrate theft;
corruption and fraud;
allegations of human rights abuses;
seismic activity; and
other natural phenomena, such as floods, droughts or weather conditions, potentially exacerbated by climate change.

Any of these events could, individually or in the aggregate, have a material adverse effect on the company’s results of operations and financial condition.

Older mines in the South African region have started to reach the end of their economic lives, several decades after production started. These mines face various systemic challenges, including near-depletion of Ore Reserve, increasing depth and distance from central infrastructure, declining production profiles, and cost escalation that has continued to outpace both inflation and a subdued gold price. For example, the cost performance of certain operations, notably TauTona and Kopanang, has clearly demonstrated these challenges, with all-in sustaining costs for 2017 of $2,242/oz and $1,593/oz, respectively. This compared with an average annual gold price over that period of $1,258/oz. Both mines also sustained significant operating losses through 2017. TauTona ceased mining in September 2017 and has been placed in orderly closure. The sale of Kopanang was completed in February 2018 as well as the sale of Moab Khotsong.

Seismic activity is of particular concern in underground mining operations, particularly in South Africa due to the extent and extreme depth of mining, and also in Australia and Brazil due to the depth of mining and residual tectonic stresses. Despite modifications to mine layouts and support technology, as well as other technological improvements employed with a view to minimising the incidence and impact of seismic activity, seismic events have caused death and injury to employees and contractors as well as safety-related stoppages and may continue to do so in the future.

Seismic activity may also cause a loss of mining equipment, damage to or destruction of mineral properties or production facilities, monetary losses, environmental pollution and potential legal liabilities. As a result, these events may have a material adverse effect on AngloGold Ashanti’s results of operations and financial condition. For example, in South Africa three rock burst accidents occurred at Mponeng mine during the last quarter of 2017, resulting in four employee fatalities in addition to production losses due to stoppages. The total production loss associated with the three incidents was approximately 14,000m2 (approximately 800 kg of gold with an approximate value of $36 million). In the second quarter of 2018, Mponeng experienced another rock burst related accident causing one fatality in the 126 Return Air Way (RAW) development end. As the subsequent stoppage caused by this fatal accident was limited to the 126 RAW development only, the impact on production in 2018 was negligible. Nevertheless, the 126 level is crucial to open up future face length at Mponeng and such stoppages related to seismic activity might have a material impact on future face length creation which may result in financial losses.

In the past, floods have also disrupted the operations of some of the company’s mines. For example, unprecedented heavy rains in February and March 2011 in Australia flooded the Sunrise Dam Gold mine and forced a temporary shutdown of operations. The flood impacted underground production for approximately four months and open pit production for approximately six months. Despite the shutdown, full costs were incurred as the mining contractors worked on remedial activities to repair damage and rehabilitate flooded areas. The considerable remedial work required adversely impacted cash costs per ounce and the impact of the flood event and the pit wall failure together significantly reduced planned production at the plant.

Any seismic, flood or other similar events that occur in the future could have a material adverse effect on the company’s results of operations and financial condition.



Mining companies’ operations are vulnerable to infrastructure constraints.

Mining, processing, development and exploration activities depend on adequate infrastructure. Reliable rail, ports, roads, bridges, power sources, power transmission facilities and water supply are critical to the company’s business operations and affect capital and operating costs. These infrastructures and services are often provided by third parties whose operational activities are outside the control of the company.

Interferences in the maintenance or provision of infrastructure, including unusual weather phenomena, sabotage and social unrest could impede the company’s ability to deliver its products on time and adversely affect AngloGold Ashanti’s business, results of operations and financial condition.

Establishing infrastructure for the company’s development projects requires significant resources, identification of adequate sources of raw materials and supplies, and necessary cooperation from national and regional governments, none of which can be assured.

AngloGold Ashanti has operations or potential development projects in countries where government-provided infrastructure may be inadequate and regulatory regimes for access to infrastructure may be uncertain, which could adversely impact the efficient operation and expansion of its business. AngloGold Ashanti may not secure and maintain access to adequate infrastructure in the future, or it may not do so on reasonable terms.

Mining companies face strong competition and industry consolidation.

The mining industry is competitive in all of its phases. AngloGold Ashanti competes with other mining companies and individuals for specialised equipment, components and supplies necessary for exploration and development, for mining claims and leases on exploration properties and for the acquisition of mining assets. These competitors may have greater financial resources, operational experience and technical capabilities than AngloGold Ashanti. Competition may increase AngloGold Ashanti’s cost of acquiring suitable claims, properties and assets, which could have a material adverse effect on its financial condition.

Further, industry consolidation may lead to increased competition and may harm AngloGold Ashanti’s operating results. A number of transactions have recently been announced or completed in the gold mining industry. In this regard, some of AngloGold Ashanti’s competitors have made acquisitions or entered into business combinations, joint ventures, partnerships or other strategic relationships. For example, Barrick Gold Corporation completed its merger with Randgold Resources Limited in January 2019. In the same month, Newmont Mining Corporation and Goldcorp Inc. announced that both companies had agreed to a strategic business combination, subject to customary closing conditions. Further, in March 2019, Barrick Gold Corporation and Newmont Mining Corporation signed an agreement to create a joint venture combining their respective mining operations, assets, reserves and talent in Nevada, subject to customary closing conditions. Similar consolidations in the form of acquisitions, business combinations, joint ventures, partnerships or other strategic relationships may continue in the future. The companies or alliances resulting from these transactions or any further consolidation involving AngloGold Ashanti’s competitors may benefit from greater economies of scale, significantly larger asset bases and broader differentiation of mining assets in respect of geographies and commodities than AngloGold Ashanti. In addition, following such transactions certain of AngloGold Ashanti’s competitors may decide to sell specific mining assets increasing the availability of such assets in the market. An excess of mining assets available for sale could have a material adverse impact on any of the company’s contemplated asset sales and could result in sales processes taking longer to complete or not completing at all or not realizing the full value of the assets being disposed of. Such developments could have a material adverse effect on the company’s business, operating results and financial condition.

Mining companies are subject to extensive health and safety laws and regulations.

AngloGold Ashanti’s mining operations are subject to extensive health and safety laws and regulations in every jurisdiction in which it operates. These laws and regulations are, along with international and industry standards, designed to protect and improve the safety and health of employees and require the company to undertake and fund extensive compliance measures.

From time to time, new or updated health and safety laws, regulations and standards are introduced and may be more stringent than those to which AngloGold Ashanti is currently subject. Should compliance with these laws, regulations and standards require a material increase in expenditures or material changes or interruptions to operations or production, including as a result of any incident or failure to comply with applicable regulations, the company’s results of operations and financial condition could be adversely affected. Furthermore, AngloGold Ashanti continues to implement its enhanced safety programme, which could result in increased costs for the company.

In some of the jurisdictions in which AngloGold Ashanti operates, the government enforces compulsory shutdowns of operations to enable investigations into the cause of accidents. Certain of the company’s operations have been temporarily suspended for safety reasons in the past. In South Africa, so-called “Section 54 safety stoppages” have become a significant issue as an enforcement mechanism used by the Department of Mineral Resources Mining Inspectorate whose inspectors routinely issue such notices. For example, in 2018, 31 notices were issued that had a material adverse impact on production at the company’s mines. Section 54 safety stoppages resulted in the estimated direct loss of 47,100, 78,887, 73,208, 11,324 and 4,680 ounces of gold production from the South African region operations during 2014, 2015, 2016, 2017 and 2018, respectively.


AngloGold Ashanti’s reputation could be damaged by any significant governmental investigation or enforcement action for non-compliance with health and safety laws, regulations or standards. Any of these factors could have a material adverse effect on the company’s results of operations and financial condition.

Mining companies are increasingly requiredexpected to operate in a sustainable manner and to provide benefits and mitigate adverse impacts to affected communities. Failure to comply with these requirementsdo so can result in legal suits, additional operational costs to address violationssocial or liabilities,environmental impacts of operations, investor divestment, adverse reputational impacts and loss of “social licence to operate”, and could adversely impact AngloGold Ashanti'sAshanti’s financial condition.


As a result of public concern about the perceived ill effects of economic globalisation and resource extraction activities, businesses in general and large multinational mining corporations in particular face increasing public scrutiny of their activities. The cost of measures and other issues relating to the sustainable development of mining operations could place significant demands on personnel resources, could increase capital and operating costs and could have an adverse impact on AngloGold Ashanti’s reputation, results of operations and financial condition.


These businessesMining companies are under increasing pressure to demonstrate that, whilst they seek a satisfactory return on investment for shareholders, human rights are respected and other social partners, including employees, host communities and more broadly, the countries in which they operate, also benefit from their commercial activities. Such pressures tend to be particularly focused on companies whose activities are perceived to have, or have, a high impact on their social and physical environment. The enhanced usage and scale of socialSocial media and other web-based tools to publish, share and discuss user-generated content further increases the potential scope and force of public scrutiny. The potential consequences of these pressures and the adverseAdverse publicity in cases where companies are believed not to be creating sufficient social and economic benefit may result in additional operating costs to address actual or perceived shortcomings, reputational damage, active community opposition, allegations of human rights abuses, legal suits and investor withdrawal.


Existing and proposed miningMining operations are often located at or near existing towns and villages, natural waterways and other infrastructure or natural resources. As the impacts of dust generation, waste storage, water pollution or water shortages may be immediate and directly adverse to those communities, poor environmental management practices, or, in particular, adverse changes in the supply or quality of water, can result in community protest, regulatory sanctions or ultimately in the withdrawal of community and government support for company operations. For example, following the outcome of the referendum held on 26 Marcha 2017 popular consultation in the Colombian municipality of Cajamarca in the Tolima department, which hosts the company’s La Colosa exploration site, AngloGold Ashanti’s management has taken the decision to pausesuspended much of the current fieldwork around the project pending a study ofuntil the community’s opposition to the project on AngloGold Ashanti’s planned future investment. In the meantime, AngloGold Ashanti will continue its engagement with all stakeholders to build consensus around the creation of a modern, environmentally responsible gold-mining industryrelated environmental permits are granted and there is more certainty about mining activity in Colombia. In addition,Force majeure was declared at the project. Similarly, in the Colombian town of Piedras in the Tolima province,department, which is not located in the immediate vicinity of the La Colosa exploration site, AngloGold Ashanti is contestingalso contested a referendum attempting2013 popular consultation which attempted to ban all mining activities in the area. Subsequently, the Colombian Constitutional Court has decided that local municipalities or regions do not have authority to veto mining activities through popular consultations. See “Item“Item 8A: Legal Proceedings-Colombia”Proceedings—Colombia”. Similar votesIf AngloGold Ashanti is unsuccessful in securing community support for its projects, or referenda may be conducted in the future in thesegroups opposed to mining successfully pursue similar or other locations in Colombia where we have mining licenses. These votes and referendalegal mechanisms to attempt to block exploration or future votes or referendaextraction activities, there could havebe an adverse impact on AngloGold Ashanti’s reputation, its ability to develop its mining concessions, in Colombia, and its results of operations and financial condition.

Mining operations must be designed to minimise their impact on such communities and the environment, including by changing mining plans, by modifying operations or by relocating the affected people to an agreed location. Responsive measures may also include restoration of the livelihoods of those impacted. In addition, AngloGold Ashanti is obliged to comply with the terms and conditions of all the mining rights it holds. In this regard the Social and Labour plan provisions of its mining rights in South Africa must make provision for local economic development (LED) programmes. The LED programmes must take into account the key economic activities of the area in which AngloGold Ashanti operates its mines, the impact its mines will have on the local and labour-sending communities, various infrastructure and poverty eradication projects its mines may be supporting in connection with integrated development plans in the areas its mines operate and also must provide for measures that assist in addressing housing and living conditions of its employees.


In addition, as AngloGold Ashanti has a long history of mining operations in certain regions, issues may arise regarding historical, as well as potential future, environmental or health impacts in those areas. For example, certain parties, including non-governmental organisations (NGOs)(“NGOs”), community groups and institutional investors, have raisedcould raise concerns and in the case of some individuals in Obuasi, threatenedeven threaten or commencedcommence litigation, relating to air pollution or surface and groundwater quality, amongstamong other issues, in the area surrounding the company’s Obuasi and Iduapriem mines in Ghana, including potential impacts to local rivers and wells used for water from heavy metals, arsenic and cyanide as well as sediment and mine rock waste.or exploration sites.


Disputes with surrounding communities may also affect mining operations, particularly where they result in restrictions of access to supplies and to mining operations. The miners’ access to land may be subject to the rights or asserted rights of various community stakeholders, including indigenous people. Access to land and land use is of critical importance to the company for exploration and mining, as well as for ancillary infrastructure. In some cases, AngloGold Ashanti has had difficulty gaining access to new land because of perceived poor community compensation practices. For example, compensation remains a significant area of concern inat Siguiri in Guinea. In 2011, a violent community protest interrupted operations for three days, which contributed to the operation’s decline in production as compared to 2010, and protests demanding employment by the communities and youth occurred again in 2016. Delays in projects as well as increased costs attributable to a lack of community support can translate directly into a decrease in the value of a project or into an inability to bring the project to production. Where consultation with stakeholders is statutorily or otherwise mandated, relations may not remain amicable and disputes may lead to reduced access to properties or delays in operations.




The cost of measures and other issues relatingAngloGold Ashanti is subject to many risks related to the sustainable development of existing and new mining projects that may adversely affect its results of operations and profitability.

Development of AngloGold Ashanti’s existing and new mining projects may be subject to unexpected problems and delays that could place significant demandsimpact the company’s ability to exploit or operate the relevant project as planned or increase the costs of such relevant project. For example, constraints on personnel resources, couldthe availability of mining and processing equipment, increase in capital and operating costs, skilled labour, utilities, transportation and/or appropriate smelting and refining arrangements could have an adverse impact onresult in delays or increase the costs needed to secure adequate supplies or resources or to construct facilities required for AngloGold Ashanti’s reputation, resultsmining operations.






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AngloGold Ashanti may prove unable to successfully exploit existing mine sites or to develop potential exploration sites due to, for example, social and financial condition.

Mining companies arecommunity opposition, litigation and governmental regulatory or administrative proceedings, the classification of land covered by mining titles as an environmentally-protected area, ore body grades, the inability of any such project to meet AngloGold Ashanti’s investment hurdle rate, and delays that could result in the expiry of permits. See “—AngloGold Ashanti is subject to extensive environmental, health and safety laws and regulations. Failure to comply could result in enforcement proceedings, claims, suspension of operations, community protest and/or additional capital or operating expenditures that could adversely impact AngloGold Ashanti’s financial condition or reputation”. The remote location of many mining properties, delays in obtaining or failure to obtain necessary environmental and other governmental permits and approvals, the impact of public health crises, epidemics or pandemics (including the COVID-19 pandemic) as well as third-party legal challenges to individual mining projects and broader social or political opposition to mining may increase the cost, timing and complexity of mine development and construction. For example, in December 2019, AngloGold Ashanti applied for the required environmental authorisations to develop the Quebradona project in Colombia. On 4 November 2021, the National Environmental Licensing Authority of Colombia (Autoridad Nacional de Licencias Ambientales or “ANLA”) officially notified AngloGold Ashanti of its decision to ‘archive’ the environmental license application relating to the Quebradona project. ANLA has neither denied nor granted the license, but deemed that the information provided by AngloGold Ashanti is not enough for this authority to take a substantive decision. On 18 November 2021, AngloGold Ashanti appealed the archiving decision in order to secure further details on the specific additional information ANLA requires to make a determination.


Accordingly, AngloGold Ashanti’s future development activities may not result in the expansion or replacement of current production, or one or more new production sites or facilities may not be developed as planned or may be less profitable than anticipated or even be loss-making. A failure in the company’s ability to develop and operate mining projects in accordance with, or in excess of, expectations could negatively impact its results of operations, as well as its financial condition and prospects.

AngloGold Ashanti is subject to extensive environmental, health and safety laws and regulations. Failure to comply could result in enforcement proceedings, claims, suspension of operations, community protest and/or additional capital or operating expenditures that could adversely impact AngloGold Ashanti’s financial condition or reputation.

AngloGold Ashanti’s operations are subject to extensive environmental, health and safety laws and regulations in the various jurisdictions in which it operates. These regulations, as well as international standards for the industry, establish limits and conditions on the company’s ability to conduct its operations and govern, amongstamong other things, extraction, use and conservation of water resources; air emissions (including dust control); water treatment and discharge; regulatory and community reporting; clean-up of contamination; land use and conservation of protected areas; safety and health of employees and community health; and the generation, transportation, storage and disposal of solid and hazardous wastes, such as reagents, radioactive materials and mine tailings.


The cost of compliance with environmental, health and safety laws and regulations is expected to continue to be significant to AngloGold Ashanti. From time to time, new or updated laws, regulations and standards are introduced and may be more stringent than those to which AngloGold Ashanti is currently subject, including with respect to tailings management and TSFs. See “—Compliance with tailings management requirements and standards, and potential liabilities in the event of a failure to timely comply or an incident involving a tailings storage facility, could adversely impact AngloGold Ashanti’s financial condition, results of operations and reputation.” Should compliance with these laws, regulations and standards require a material increase in expenditures or material changes or interruptions to operations or production, including as a result of any incident or failure to comply with applicable regulations, the company’s results of operations and financial condition could be adversely affected. AngloGold Ashanti could incur fines, penalties and other sanctions, clean-up costs and third-party claims for personal injury or property damage, suffer reputational damage, or be required to install costly pollution control equipment or to modify or suspend operations, as a result of actual or alleged violations of environmental, health and safety laws and regulations or the terms of AngloGold Ashanti’s permits.

Closure For example, in March 2022, AngloGold Ashanti was informed of an incident involving potentially unauthorised cutting of vegetation by a mine could trigger or accelerate obligations, including to conductcontractor at the La Colosa project near Cajamarca. The company promptly notified Cortolima, the regional environmental rehabilitation activities and/or to address historical impacts on environmental qualityauthority in the area surroundingTolima department, as well as the mine. Costs incurred bynational Environmental Ministry of the incident. Cortolima conducted a technical visit to evaluate if any breach of environmental law had occurred. Based on such findings, this authority is expected to determine whether to open a formal environmental investigation. In addition, the company initiated an internal investigation to assess the incident and identify potential mitigation measures, if required, as well as to determine the root cause(s). These investigations are ongoing and, as a result, the company is not able to determine at this time whether this incident violated applicable law or will result in excessenforcement action against AngloGold Ashanti, including any civil fines against the company or criminal sanctions against any individuals involved in the incident or against any AngloGold Ashanti employees. In some of the jurisdictions in which AngloGold Ashanti operates, the government may enforce a total or partial shutdown of operations to enable investigations into the cause of accidents at those operations. AngloGold Ashanti’s existing provisionsreputation could be damaged by any significant governmental investigation or enforcement action for such matters,non-compliance with health and safety laws, regulations or on a more accelerated or compressed timeline than currently anticipated,standards.Any of these factors could have a material adverse impacteffect on AngloGold Ashanti’s results of operations and financial condition.


Failure to comply with applicable environmental, health and safety laws and regulations may also result in the suspension or revocation of operating permits. For example, in Colombia, AngloGold Ashanti’s core mining concession contracts provide that the Colombian mining authority, having regard to due process, could declare the underlying concession void if the company repeatedly or continually breach applicable environmental laws or regulations or engage in acts of corruption or other serious



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misconduct. In that event, AngloGold Ashanti could be required to abandon the relevant project and, depending on the severity of the violations or misconduct, the Colombian mining authority may cancel its other existing mining concession contracts. Pending proposals for new mining concession contracts could also be cancelled and the company could be banned from doing business with the Colombian government for a period of five years.

AngloGold Ashanti’s ability to obtain and maintain permits and to successfully operate in particular communities may be adversely impacted by real or perceived effects on the environment or human health and safety associated with AngloGold Ashanti’s or other mining companies’ activities.

For example, in Colombia, various plaintiffs, including certain governmental authorities and various associations that represent local communities, brought legal proceedings against AngloGold Ashanti Colombia S.A. (AGAC) alleging that AGAC violated applicablein order to stop exploration, development and mining activities in certain areas, in which its exploration projects are located, due to environmental laws in connectionconcerns. For instance, a consolidated class action with the La Colosa project. In one such proceeding, AGAC filed an action against the Colombian Department of the Environment, Housing and Territorial Development (DoE) after the DoE issued a fine of $70,000 against the company. Following a series of appeals, in January 2017 the appellate court reinstated the fine against the company. Although the amount of the fine is not significant, the finding that the company breached environmental laws could be used as the basis for legal action by the Colombian government that could prohibit AGAC from doing business with the Colombian government for a period of five years. As a result, AGAC’s three core concession contracts relatingrespect to the La Colosa project could be cancelled. AGAC could be requiredis currently pending before the Council of State of Colombia (the highest court for administrative matters) with respect to abandonthe impact of the project on the environment. If AngloGold Ashanti does not prevail before the Council of State, it may have to perform one or more technical studies in relation to the La Colosa project, and all other existing mining concession contracts and pending proposals for new mining concession contracts of AGAC. However, this would not affect those of other companies of the AngloGold Ashanti group operating in Colombia. AGAC is currently evaluating its options with respectwhich if they were to this matter. Separately, in October 2016, Tolima’s Administrative Court orderedconclude that a technical study be prepared by April 2017 to determine whether the La Colosa project presents a “threat” to the environment during its exploration phase. In December 2017, Ibagué's Third Administrative Court ordered a similar technical study. AGAC isexists, could result in the processsuspension of appealing these orders, but if such threat is determined to exist, certain development activities at La Colosa may be suspended.or even the abandonment of the project. See “Item“Item 8A: Legal Proceedings-Colombia”Proceedings—Colombia”.


In addition, unknown environmental hazards may exist on the company's properties which may have been caused by previous owners or operators. An incident atEnvironmental impacts arising in connection with AngloGold Ashanti'sAshanti’s operations could lead to the imposition of legal obligations, including the remediation of environmental contamination, and claims for property damage and personal injury from adjacent communities. Incidents at AngloGold Ashanti's operations, or other mining companies' operations, could result in the tightening of regulatory requirementscommunities and restrictions that are applicable to AngloGold Ashanti'son mining operations. For example, brief gold processing stoppages after environmental incidents, such as pipeline failures or deficiencies in water management systems, have occurred previously at AngloGold Ashanti's ObuasiAshanti’s operations. Leaks or discharges of hazardous materials could result in liabilities for clean-up or personal injury that may not be covered by insurance. The company has identified groundwater contamination plumes at certain of its operations that have occurred primarily as the result of seepage from surface operations and facilities, including tailings storage facilities and waste rock piles, or from sulphide or other substances in local rock formations which are exposed to water. In addition, closure of a mine could trigger or accelerate obligations, including to conduct environmental rehabilitation activities and/or to address historical impacts on environmental quality in Ghana.

Environmental laws and regulations are continually changing and are generally becomingthe area surrounding the mine. Costs incurred by AngloGold Ashanti in excess of its existing provisions for such matters, or on a more stringent. Changes toaccelerated or compressed timeline than currently anticipated, could have a material adverse impact on AngloGold Ashanti’s environmental compliance obligations or operating requirements could adversely affect the company’s rate of production and revenue. Variations in laws and regulations, assumptions made to estimate liabilities, standards or operating procedures, more stringent emission or pollution thresholds or controls, or the occurrence of unanticipated conditions, may require operations to be suspended or permanently closed, and could increase AngloGold Ashanti’s expenses and provisions. These expenses and provisions could adversely affect the company’s results of operations and financial condition.


For example,In addition, the use of hazardous materials in metallurgical processing remains under constantcontinued scrutiny. As there are few, if any, effective substitutes in extracting gold from the ore, any ban or material restrictions on the use of such materials in mining operations in the jurisdictions where AngloGold Ashanti conducts its operations could adversely affect the company’s results of operations and financial condition. In addition, leaks or discharges of hazardous materials could result in liabilities for clean-up or personal injury that may not be covered by insurance.


AngloGold Ashanti’s operations are heavily dependent upon access to substantial volumes of water for use in the mining and extractive processes and typically are subject to water-use permits or rights to extract water from certain natural sources that govern usage and require, amongstamong other things, that mining operations maintain certain water quality upon discharge. Water supply, quality and usage are areas of concern globally, such asacross all of AngloGold Ashanti’s operations, including with respect to the company’s mining operations in Ghana and South Africa andBrazil, as well as its exploration projectsmine development project at Quebradona in Colombia, where there is significant potential environmental and social impact and a high level of stakeholder scrutiny. Any failure by the companyAngloGold Ashanti to secure access to suitable water supplies, or achieve and maintain compliance with applicable requirements of the permits or licenses, could result in curtailment or halting of production at the affected operations. Incidents of water pollution or shortage can, in certain cases, lead to community protest and ultimately to the withdrawal of community and government support for AngloGold Ashanti’s operations. A failure by the companyAngloGold Ashanti to comply with water contamination rehabilitationrelated directives may result in further, more stringent, directives being issued against the company,AngloGold Ashanti, which may, in some cases, result in a temporary or partial shutdown of some of the company’s operations.


Mining and mineral processing operations generate waste rock and tailings. The impact of dust generation, breach, leak, or other failure of a waste rock or tailings storage facility (TSF), including any associated dam, can be significant. An incident at AngloGold Ashanti’s operations could result, among other things, in enforcement, obligations to remediate environmental contamination, negative press coverage, and claims for property or natural resources damages and personal injury by adjacent communities. Incidents at other mining companies’ operations could result in governmental action to tighten regulatory requirements and restrict certain mining activities, in particular with respect to TSFs, also in respect of other mine operators. See “Item 4B: Business Overview–Environmental, Health and Safety Matters”.

For example, a TSF at the Córrego do Feijão iron ore mine owned by Vale at Brumadinho in the state of Minas Gerais in Brazil burst on 25 January 2019. Following the dam failure, tailings reached the mine’s administrative area and part of the local community, reportedly resulting in death or injury to hundreds of people. As a result of this incident, environmental licensing processes in Brazil for mining companies are expected to be extremely difficult in the future, especially those involving TSFs. It is expected that there will be significant changes in federal and state legislation and regulation, as well as much more intense scrutiny and control of, as well as cost increases associated with inspecting, maintaining and constructing, TSFs. Certain types of TSFs may be prohibited, and may result in operational restrictions until alternate facilities can be constructed or existing facilities can be reinforced. In addition, it is believed that pressure from local communities will increase significantly and there will be an elevated risk to the social license to operate. For example, due to recently issued regulations by the Brazilian National Mining Agency, the Serra Grande mine in the state of Goiás is planning to reinforce the dam walls of its TSF in advance of expected future decommissioning. Planning is still at an early stage, however, and the applicable requirements are subject to change later in 2019; accordingly the related costs for reinforcing the dam walls of the facility and, ultimately, for decommissioning the dam, cannot yet be predicted. Furthermore, the suspension of environmental licensing permit processes for TSFs in the state of Minas Gerais will potentially delay all the approval processes with respect to our operating permits, and may compromise our production plans after August 2019, in respect of our Minas Gerais operations. Further and more substantial amendments to the regulatory requirements in Brazil governing such TSFs and related dams are anticipated in 2019. See “Item 4B: Business Overview-The Regulatory Environment Enabling AngloGold Ashanti to Mine”.

Mining companies are required by law to close their operations at the end of the mine life and rehabilitate the impacted areas. Estimates of the total ultimate closure, reclamation and rehabilitation costs for gold mining operations are significant and based principally on life-of-mine profiles, changing inflation and discount rate assumptions, changing infrastructure and facilities design and current legal and regulatory requirements that may change materially. Environmental liabilities are accrued when they become known, are probable and can be reasonably estimated. Increasingly, regulators are seeking security in the form of cash collateral or bank guarantees in respect of environmental obligations. For example, in South Africa, regulations require mining companies to make financial provisions for rehabilitation for at least 10 years. However, the compliance deadline for new regulations under the National Environmental Management Act, No. 107 of 1998 (as amended) (NEMA) has been postponed by the South African Department of Environmental Affairs (DEA) to February 2020. These new regulations acknowledge challenges identified by the industry in collaboration with the Minerals Council South Africa (the former Chamber of Mines of South Africa). Further and more substantial amendments to these regulations are anticipated in 2019. See “Item“Item 4B: Business Overview–Overview—The Regulatory Environment Enabling AngloGold Ashanti to Mine”Mine”.

The costs required to comply with these obligations and any similar ones enacted in other jurisdictions may have an adverse impact on the company’s financial condition.


AngloGold Ashanti’s provisions for decommissioning and for restoration (excluding joint ventures)ventures and discontinued operations) totalled $851$688 million in 2014, $6832021, $674 million in 2015 (following the sale of CC&V), $7052020 and $634 million in 2016, $695 million in 2017 and $622 million in 2018.2019. Costs associated with rehabilitating land disturbed by mining processes and addressing environmental, health and community issues are estimated and financial provision made based upon current available information based on ourAngloGold Ashanti’s commitments in terms of environmental legislation or agreements with government. Estimates notably relate to discount rates, which may vary due to changes in global economic assumptions, and mine plans, which may change in line with variations in cash flows, designs of tailings storage facilities and methodologies used to compute liabilities (including as a result of a request from environmental regulatory authorities). EstimatesAs such, estimates may however, be insufficient and further costs may be identified at any stage that may exceed the provisions that AngloGold Ashanti has made. Any underestimated or unidentified rehabilitation costs would reduce earnings and could materially and



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adversely affect the company’sAngloGold Ashanti’s asset values, earnings and cash flows. Further, sudden changes in a life of mine plan or the accelerated closure of a mine may give rise to the recognition of additional liabilities that are not anticipated.


Compliance with emerging climate changeEnvironmental laws, regulations could result in significant costs and climate change may present physical risksstandards are continually changing and are generally becoming more stringent. Changes to a mining company’s operations.

Greenhouse gases (GHGs) are emitted directly by AngloGold Ashanti’s environmental compliance obligations or operating requirements could adversely affect its operations, as well as by external utilities from which AngloGold Ashanti purchases electricity. A numberrate of internationalproduction and national measuresrevenue. Variations in laws and regulations, assumptions made to addressestimate liabilities, standards or limit GHG emissions are in various phasesoperating procedures, more stringent emission or pollution thresholds or controls, or the occurrence of discussion or implementation in the countries in which the company operates. As a result of commitments made at the UN Climate Change Conference in Durban, South Africa in December 2011, certain members of the international community negotiated a treaty at the Conference of the Parties of the UN Framework Convention on Climate Change in Paris in December 2015 (Paris Agreement). The Paris Agreement, which requires developed countries to set targets for emissions reductions, came into force on 4 November 2016. Additional measures addressing GHG emissionsunanticipated conditions, may be implemented at national or international levels in various countries. For example, in South Africa, on 19 February 2019, South Africa’s National Assembly adopted the draft Carbon Tax Bill (2017 Carbon Tax Bill). The imposition of a tax on carbon dioxide equivalent of GHG emissions will take effect on 1 June 2019.

The tax will be phased in over time. The first phase, which ends in 2022, is designedrequire operations to be revenue-neutral in terms of its aggregated impact, given the complementary tax energy incentivessuspended or permanently closed, and reduction or credit for the current electricity levy. In addition, South Africa ratified the Paris Agreement in November 2016 and endorsed its nationally-determined contribution, which requires that GHG emissions in South Africa peak in 2020 to 2025, plateau from 2025 to 2035 and decline from 2036 onwards. In addition, on 8 June 2018, Dr. Edna Molewa, the late Minister of Environmental Affairs, published the draft National Climate Change Bill (2018 Climate Change Bill) for a period of public comment that closed on 8 August 2018. The purpose of the 2018 Climate Change Bill is to build an effective climate change response and ensure the long-term, just transition to a climate resilient and lower carbon economy and society. This will be done within the context of sustainable development for South Africa and will provide for all matters related to climate change. BUSA and the Industry Task Team on Climate Change (ITTCC), of which AngloGold Ashanti is a member, submitted comments on behalf of its members highlighting concerns regarding the lack of regulatory clarity and certainty and regulatory misalignment with International Processes and Agreements. On 27 August 2018, the South African Department of Environmental Affairs (DEA) facilitated a multi-stakeholder engagement with the business community regarding the comments received on the 2018 Climate Change Bill and acknowledged the need for further consultations. Further discussion is anticipated over the course of 2019. See also “Item 4B: Business Overview–Environmental, Health and Safety Matters”.

These, or future, measures could require AngloGold Ashanti to reduce its direct GHG emissions or energy use or to incur significant costs for GHG emissions permits or taxes, including for those costs or taxes passed on by electricity utilities which supply the company’s operations. AngloGold Ashanti could also incur significant costs associated with capital equipment, GHG monitoring and reporting and other obligations to comply with applicable requirements. The most likely source of these obligations is through state-level implementation of new emissions or financial obligations pursuant to evolving climate change regulatory regimes.
Other countries, including Australia and Brazil, have passed or are considering GHG trading or tax schemes and/or other regulation of GHG emissions, although the precise impact onincrease AngloGold Ashanti’s operations cannot yet be determined. See also “Item 4B: Business Overview–Environmental, Healthexpenses and Safety Matters”.

In addition,provisions. These expenses and provisions could adversely affect AngloGold Ashanti’s operations could be exposed to a number of physical risks from climate change, such as changes in rainfall rates or patterns, rising sea levels, reduced water availability, higher temperatures and extreme weather events. Such events or conditions, including flooding or inadequate water supplies, could disrupt mining and transport operations, mineral processing and rehabilitation efforts, create resource or energy shortages or damage the company’s property or equipment and increase health and safety risks on site. Such events or conditions could have other adverse effects on the company’s workforce and on the communities around its mines, such as an increased risk of food insecurity, water scarcity and prevalence of disease, all of which could have a material adverse effect on the company’s results of operations and financial condition.


Compliance with “conflict minerals”tailings management requirements and “responsible gold” legislationstandards, and standardspotential liabilities in the event of a failure to timely comply or an incident involving a tailings storage facility, could adversely impact AngloGold Ashanti’s financial condition, results of operations and reputation.

Mining and mineral processing operations generate waste rock and tailings. The impact of dust generation, breach, leak, or other failure of a waste rock facility or TSF, including any associated dam, can be significant. An incident at AngloGold Ashanti’s operations could result, among other things, in enforcement, obligations to remediate environmental contamination, negative press coverage, and claims for property or natural resources damages and personal injury by adjacent communities. Incidents at other mining companies’ operations could result in significant costs.

Stringentgovernmental action to tighten regulatory requirements and restrict certain mining activities, in particular with respect to TSFs. For example, in March 2022, there was a spill of tailings slurry from one of the tailings drying bays at the Cuiabá mine as the result of damage to a filter liner. Due to sediment buildup in the pump, the control system was overwhelmed and tailings slurry reached the Cuiabá stream in Sabará. The relevant local, state and federal authorities were promptly notified, as well as the community in the vicinity of the mine, and corrective actions, including repair of the liner, containment and solids removal from the creek and river as well as monitoring of water quality were promptly initiated. The tailings slurry did not exceed relevant discharge standards, relating to “conflict minerals”other than for manganese, turbidity and “responsible” gold including, but not limitedtotal suspended solids. Following the incident, the Minas Gerais State Public Prosecutor’s Office filed a civil action against AngloGold Ashanti alleging unspecified environmental and socio-economic damages to the U.S. Dodd-Frank Act,community and requesting an injunction suspending operations at the EU Regulation 2017/821mine pending an independent technical audit of the TSF structure. The parties have agreed to a settlement of the state’s action which provides that AngloGold Ashanti will engage an independent technical auditor to prepare assessment reports on supply chain due diligence obligationscertain surface operations and environmental controls and refrain from operating the affected tailings drying bay until certified as stable by the auditor. Other specific surface operations at the mine will be suspended only if the audit determines there is an imminent risk to the integrity of a tailings structure and recommends suspension of activities. In addition, AngloGold Ashanti will pay approximately $1.2 million for EU importerssocio-environmental projects in the municipality of gold originating from conflict-affectedSabará and high-risk areas,will donate $200,000 to the OECD Due Diligence Guidelinesmunicipality for Responsible Supply Chainsenvironmental education purposes and 200 hectares of Minerals from Conflict-Affectedland to a federal organisation for conservation purposes. See “—AngloGold Ashanti is subject to extensive environmental, health and High-Risk Areas,safety laws and regulations. Failure to comply could result in enforcement proceedings, claims, suspension of operations, community protest and/or additional capital or operating expenditures that could adversely impact AngloGold Ashanti’s financial condition or reputation.” and also “Item 4B: Business Overview—Sustainability and Environmental, Social and Governance (“ESG”) Matters”.

In recent years, environmental licensing processes for mining companies have become more stringent, and especially those involving TSFs in Brazil. Brazilian authorities, both at the World Gold Council Conflict-Free Gold Standardfederal and the London Bullion Market Association Responsible Gold Guidancestate levels, have generally increased scrutiny of mining operations in Brazil, and of TSFs in particular, and have been introduced.

Any suchconsidering, and in some cases have adopted, stricter laws and regulations applicable to the approval, licensing, construction, management, closure and decommissioning of TSFs in Brazil. It is likely that there will be further changes in federal and state legislation and standardsregulation, as well as much more intense scrutiny and control of, as well as cost increases associated with inspecting, maintaining and constructing TSFs. For example, at the federal level, the Brazilian National Mining Agency (“ANM”) issued Resolution No. 13/19 in August 2019 which, among other things, prohibits the upstream method for the construction or heightening of tailings dams throughout the national territory of Brazil. It further requires operators to decommission such TSFs by 15 September 2022 to 15 September 2027 (depending on the capacity volume). To comply with the terms of ANM Resolution No. 13/19, the Serra Grande tailings dam in the state of Goiás must be decommissioned by 15 September 2025. Furthermore, Federal Law No. 14.066/20, adopted in October 2020, also imposes requirements on companies to decommission upstream TSFs, including the Serra Grande tailings dam, by 25 February 2022 (which date is earlier than required by ANM Resolution No. 13/19). However, Federal Law No. 14.066/20 does permit extensions of the compliance deadline, with the consent of the ANM based on the technical plan for decommissioning. Serra Grande has submitted timely requests to obtain an extension of the compliance deadline until 2025 in line with the timeline set forth in ANM Resolution No. 13/19 and presented its technical plan for decommissioning. Feedback from the ANM on these requests is currently awaited. If the ANM does not consent to an extension of the deadline to 2025, or establishes a different deadline that is earlier than 2025, and AngloGold Ashanti fails to comply with such deadline, AngloGold Ashanti could be subject to claims or litigation by third parties, including enforcement action by governmental authorities which could result in the imposition of fines or suspension of its operations. With respect to downstream (or “centerline”) TSFs, Federal Law No. 14.066/20 requires companies, to the extent that communities are located in the self-rescue zone of those TSFs, to implement one of the following measures for such structures: either (i) the structure must be deactivated and decommissioned, (ii) the population must be relocated, with reparations for loss of cultural heritage, or (iii) reinforcement works that guarantee the effective stability of the structure must be carried out, by decision of the public authorities, taking into account the previous nature of the dam in relation to the occupation and technical-financial viability of the alternatives. Even if reinforcement works are completed, deactivation and decommissioning of those TSFs will be required at the end of the life of the mine. All of the TSFs operated by AngloGold Ashanti in Brazil have



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communities located in self-rescue zones. AngloGold Ashanti is planning to transition to dry-stacking operations for tailings storage at each location in Brazil in the near term. Capital expenditures required in 2021 to implement this new technology amounted to approximately $140 million. Capital expenditures for this work during the period 2022-2025 are expected to be material but, based on preliminary estimates to date, AngloGold Ashanti anticipates that annual expenditures for each of these years will be significantly less than in 2021 and will decline over time. See “Item 4B: Business Overview—The Regulatory Environment Enabling AngloGold Ashanti to Mine—Americas—Brazil”and “Item 4B: Business Overview—Sustainability and Environmental, Social and Governance (“ESG”) Matters—Waste Management”.

Additionally, public prosecutors have been pursuing an active role in the enforcement of new state and federal laws and regulations by way of legal action against several mining companies to compel compliance with these new rules. The company’s Brazilian subsidiaries are currently involved in such lawsuits in the state of Goiás in respect of the Serra Grande tailings dam and in the state of Minas Gerais in relation to the Cuiabá tailings dam. The outcome of these lawsuits cannot be predicted but, if resolved adversely to AngloGold Ashanti, may result in significantadditional and accelerated operating or capital costs for the company, including costs exceeding its current provisions for decommissioning these sites, which may adversely affect AngloGold Ashanti’s financial condition and results of operations. See “Item 8A: Legal Proceedings—Brazil”. In addition, it is believed that communities will increasingly seek engagement and information with respect to ensurethe adequacy of the safety measures in place to protect them from TSF-related incidents.

AngloGold Ashanti’s ability to replace Mineral Reserve is subject to uncertainty and demonstrate compliance (particularly where standardsrisks inherent in exploration, technical and economic feasibility studies and other project evaluation activities as well as competition within the industry for attractive mining properties.

AngloGold Ashanti must continually replace Mineral Reserve depleted by mining and production to maintain or increase production levels in the long term. This process includes exploration activities that are speculative in nature. The ability of AngloGold Ashanti to sustain or increase its present levels of gold production depends in part on the success of its projects and it may be unable to sustain or increase such levels.

Feasibility studies and other project evaluation activities necessary to determine the current or future viability of a mining operation, including to estimate tonnages, grades and metallurgical characteristics of the ore, are often unproductive and unpredictable. Such activities often require substantial expenditure on exploration drilling to establish the presence, extent and grade (metal content) of mineralised material. AngloGold Ashanti undertakes feasibility studies to estimate the technical and economic viability of mining projects and to determine appropriate mining methods and metallurgical recovery processes. For example, at Quebradona, AngloGold Ashanti completed the feasibility study for the project in the first half of 2021. At Gramalote, following a review of the feasibility study work to date, the joint venture partners, AngloGold Ashanti and B2Gold Corp., decided to undertake additional drilling of the inferred portions of the Mineral Resource area in order to potentially improve the economics of the project, which decision resulted in delays to the project.

Once mineralisation is discovered, it may take several years to determine whether an adequate Mineral Reserve exists, during which time the economic feasibility of the project may change rapidly or lack certainty due to court challenges),fluctuations in factors that affect both revenue and may complicate costs, including:
•prevailing and anticipated prices of metals and other commodities, including gold, silver and copper;
•prevailing and anticipated local or foreign currency exchange rates;
•the salerequired return on investment as based on the cost and availability of capital;
•applicable regulatory requirements, including those relating to environmental or health and safety matters;
•recovery rates of gold emanatingand other metals from certain areas. The complexitiesthe ore; and
•capital expenditure and cash operating costs (which may be impacted by inflation).

These estimates depend on assumptions made based on available data. Mineral Reserve estimates are not precise calculations and depend on the interpretation of limited information on the location, shape and continuity of the mineral occurrence and on available current and historical sampling results. No assurance can be given that Mineral Reserve estimates or other estimates are accurate or that the indicated levels of gold, supply chain, especially as they relate to “scrap”silver, copper or recycled gold,other mineral will be produced. Further exploration and feasibility studies can result in new data becoming available that may change previous or historical Mineral Reserve estimates and impact the fragmentedtechnical and often unregulated supplyeconomic viability of artisanal and small-scale mined gold are such that there may be significant uncertainties at each stageproduction from the project. Changes in the chainforecast prices of commodities, exchange rates, production costs or recovery rates may change the economic status of Mineral Reserves resulting in revisions to previous or historical Mineral Reserve estimates. These revisions in Mineral Reserves estimates as well as changes in life of mine estimates could also impact depreciation and amortisation rates, asset carrying values and/or estimates for closure, restoration and environmental rehabilitation costs.

AngloGold Ashanti undertakes annual revisions to its Mineral Reserve estimates based upon ongoing exploration and production results, depletion, new information on geology, model revisions and fluctuations in production, forecasts of commodity prices, economic assumptions and operating and other costs as well as asset sales and acquisitions. These factors may result in reductions in Mineral Reserve estimates, which could adversely affect life-of-mine plans and consequently the provenancetotal value of AngloGold Ashanti’s mining asset base. Mineral Reserve restatements could negatively affect the company’s results of operations, as well as its financial condition and prospects.




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Due to a declining rate of discovery of new gold Mineral Reserve in recent years, AngloGold Ashanti faces intense competition for the acquisition of attractive mining properties. From time to time, AngloGold Ashanti evaluates the acquisition of an Mineral Reserve, development properties or operating mines, either as stand-alone assets or as part of existing companies. AngloGold Ashanti’s decision to acquire these properties has been based on a variety of factors, including historical operating results, estimates and assumptions regarding the extent of the gold. existing or potential Mineral Reserve, cash and other operating costs, gold prices, projected economic returns and evaluations of existing or potential liabilities associated with the relevant property and its operations and how these factors may change in the future. Other than historical operating results, these factors are uncertain and could have an impact on revenue, cash and other operating costs, as well as the process used to estimate the relevant Mineral Reserve.

As a result of thethese uncertainties and declining grades, AngloGold Ashanti’s exploration and acquisitions may not result in the process,expansion or replacement of current production, the costsmaintenance of due diligenceits existing Mineral Reserve net of production or yield an increase in Mineral Reserve. AngloGold Ashanti’s results of operations and audit,financial condition are directly related to the success of its exploration and acquisition efforts and the ability to replace or increase the reputationalexisting Mineral Reserve as it is depleted. If AngloGold Ashanti is not able to maintain or increase its Mineral Reserve, its results of operations as well as its financial condition and prospects could be adversely affected.

Mining is inherently hazardous and the related risks of defining their productevents that cause disruptions to AngloGold Ashanti’s mining operations may adversely impact cash flows and overall profitability.

Gold mining operations are subject to risks of events that may adversely impact AngloGold Ashanti’s ability to produce gold and meet production and cost targets. These events include, but are not limited to:
•accidents or incidents, including due to human error, during exploration, production, drilling, blasting or transportation resulting in injury, loss of life or damage to equipment or infrastructure;
•air, land and water pollution;
•social or community disputes or interventions;
•security incidents, including the activities of artisanal or illegal miners;
•surface or underground fires or explosions;
•labour force disputes and disruptions;
•loss of information integrity or data;
•mechanical failure or breakdowns and ageing infrastructure;
•failure of unproven or evolving technologies;
•unusual or unexpected geological formations, ground conditions, including lack of mineable face length and ore-pass blockages;
•fall-of-ground accidents in underground operations;
•cave-ins, sinkholes, subsidence, rock falls, rock bursts or landslides;
•failure of mining pit slopes, heap-leach facilities, water or solution dams, waste stockpiles and tailings facility walls;
•flooding or inundation of mine pits;
•safety-related stoppages;
•seismic activity; and
•other natural phenomena, such as floods, droughts or weather conditions, potentially exacerbated by climate change.

Any of these events or incidents could, individually or in the aggregate, have a constituent part as containingmaterial adverse effect on AngloGold Ashanti’sresults of operations and financial condition. For example, in Brazil, in February 2021, an underground blaster was fatally injured in a “conflict mineral” may be too burdensomefall-of-ground incident at the Serra Grande mine. Furthermore, in May 2021, an employee at the Obuasi mine was fatally injured in an underground sill pillar failure incident, following which all underground mining activities at the Obuasi mine were suspended from the date of the incident until mid-October 2021 to allow for an investigation and third-party review of the company’s customers. Accordingly, manufacturers may decide to switch supply sourcesmine, schedule and ground management plans. Any seismic, flood or to substitute gold with other minerals not covered bysimilar events or incidents that occur in the initiatives. Thisfuture could have a material negative impact on the gold industry, includingadverse effect on AngloGold Ashanti’s results of operations and financial condition.



Mining operations and projects are vulnerable to supply chain disruption such that operations and development projects could be adversely affected by shortages of, as well as the lead times to deliver, strategic spares, critical consumables, mining equipment or metallurgical plant.


AngloGold Ashanti’s operations and development projects could be adversely affected by both shortages and long lead times to deliver strategic spares, critical consumables, mining equipment and metallurgical plant, as well as transportation delays. Import restrictions, such as those imposed by the ArgentinianArgentinean government from 2011 to 2015, can also delay the delivery of parts and equipment. In the past, the companyAngloGold Ashanti and other gold mining companies experienced shortages in critical consumables, particularly as production capacity in the global mining industry expanded in response to increased demand for commodities. AngloGold Ashanti has also experienced increased delivery times for these items. Shortages have resulted in unanticipated price increases and production delays and shortfalls, resulting in a rise in both operating costs and in the capital expenditure necessary to maintain and develop mining operations.







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Individually, AngloGold Ashanti and other mining companies have limited influence over manufacturers and suppliers of these items. In certain cases, there are a limited number of suppliers for certain strategic spares, critical consumables, mining equipment or metallurgical plant who command superior bargaining power relative to the company. The companyAngloGold Ashanti. AngloGold Ashanti could at times face limited supply or increased lead time in the delivery of such items. For example, during 2012, supply of caustic soda was delayed in the Continental Africa Region. In addition, the unreliability of oxygen and lime supply similarly affected production at the Vaal River and West Wits surface operations in South Africa throughout 2011 and poor availability of drill rigs, heavy machinery and fleet equipment hampered underground drilling and overall operational performance at the Serra Grande mine in Brazil, also in 2011.


The company’sAngloGold Ashanti’s procurement policy is to source mining, and processing equipment and consumables from suppliers that meet its corporate values and ethical standards but risks remain aroundstandards. Although AngloGold Ashanti monitors and assesses suppliers on their governance conduct, there is a risk that the managementcompany may fail to identify actual instances of ethical supply chains.unethical conduct by those suppliers or other activities that are inconsistent with its values and standards. In certain locations, where a limited number of suppliers meet these standards, additional strain is placed on the supply chain, thereby increasing the cost of supply and delivery times. In addition, AngloGold Ashanti’s efforts to monitor supply chain activities, including freight and logistics routes, and its engagement with its suppliers to identify disruptions on its ability to source materials or equipment or otherwise impact its operations, may not be sufficient to avoid disruptions that could have a material adverse effect on AngloGold Ashanti’s business or operations.


Furthermore, supply chains and rates can be impacted by natural disasters, such as earthquakes, extremesevere weather, patternssuch as storms, heavy rainfall and other impacts that may be increasing due to climate change, as well as other phenomena that include unrest, strikes, theft and fires. For example, a three-week transport strike in 2012 delayed the supply of consumables in South Africa. Although potential supply chain disruption in Mali, as a result of the coup d’état and the proliferation of armed combat in 2012 and 2013, were avoided by well-managed consumable stock holding, ongoing instability and armed conflict in the country, even following the peace accord struck in 2015, could present material supply chain difficulties. Moreover, although potential gold doré export disruptions at Geita in Tanzania, which were the result of an attempted gold heist, and in Mali, following the closure of Bamako International Airport, were minimised with the introduction of alternative transportation arrangements, such alternatives may not be available upon the occurrence of similar or more severe situations in the future. In February 2013, a fire destroyed the heavy mining equipment stock of spares and components at the Geita gold mine.mine in Tanzania. If AngloGold Ashanti experiences shortages, or increased lead times in the delivery of strategic spares, critical consumables, mining equipment or processing plant, the companyAngloGold Ashanti might have to suspend some of its operations and its results of operations and financial condition could be adversely impacted.


The Siguiri mine in Guinea was impacted as a result of the Ebola virus outbreak ofoutbreaks since 2014 in Western Africa, with the latest outbreak detected in early 2021, which continued until the summer of 2021, where certain crisis management measures were implemented. See “—AngloGold Ashanti’s OreMineral Reserve, deposits and mining operations are located in countries that face instability, public health and security risks that may adversely affect both the terms of its mining concessions, as well as its ability to conduct operations in certain countries”countries”.

Similarly, an outbreak of infectious diseases, a pandemic or other public health threat, such as the outbreak of the SARS-CoV-2 virus responsible for COVID-19 or an outbreak of the Ebola virus, or a fear of any of the foregoing, could adversely impact AngloGold Ashanti’s operations by causing supply chain delays and disruptions, import restrictions or shipping disruptions, as well as operational shutdowns (including as part of government-mandated containment measures).For example, in response to the COVID-19 outbreak, during the months of March and December 2020, both the Argentinean and South African governments imposed significant restrictions on the movement of goods, services and persons (including travel), including a nationwide lockdown of businesses and their citizens (quarantine). In Argentina, the national government also imposed a temporary suspension of mining activities in March and December 2020, adversely impacting AngloGold Ashanti’s operations. In Brazil, the State of Goiás also imposed similar restrictions in March 2020 which ran through the beginning of April 2020. Such disruptions and other manufacturing and logistical restraints could result in extended lead times in supply and distribution networks, as well as the exercise of force majeure measures, the impacts of which could eventually result in stoppage of mining operations. They could also result in the need to increase inventories on long lead time items and critical consumables and spares which may lead to an increase in working capital. In addition, restrictions in travel, including air travel, and border access may impact AngloGold Ashanti’s ability to source and transport goods and services required to operate mines, transport gold doré to refineries and ship refined gold from refineries as well as increase the cost. AngloGold Ashanti cannot guarantee that its crisis management measures will be adequate, that the supply chain and operations will not be adversely affected by a future Ebola, COVID-19 or other epidemic or pandemic outbreak andor that there willwould be no knock-on effectsrelated consequences, such as severe food shortages and social impact. Epidemic-related exportExport restrictions related to any epidemic or pandemic (including as a result of government regulation and prevention measures) could similarly adversely impact AngloGold Ashanti’s financial condition and results of operations.

AngloGold Ashanti’s operations are vulnerable to infrastructure constraints.

Mining, processing, development and exploration activities depend on adequate infrastructure. Reliable rail, ports, roads, bridges, power sources, power transmission facilities and water supply are critical to AngloGold Ashanti’s business operations and affect capital and operating costs. These infrastructures and services are often provided by third parties whose operational activities are outside the company’scontrol of the company.

Interferences in the maintenance or provision of infrastructure, including unusual weather phenomena, sabotage and social unrest could impede AngloGold Ashanti’s ability to deliver its products on time and adversely affect its business, results of operations and financial condition.

Establishing infrastructure for AngloGold Ashanti’s development projects requires significant resources, identification of adequate sources of raw materials and supplies, and necessary cooperation from national and regional governments, none of which can be assured.

AngloGold Ashanti has operations or potential development projects in countries where government-provided infrastructure is inadequate and regulatory regimes for access to infrastructure are uncertain, which could adversely impact the efficient operation and expansion of its business. AngloGold Ashanti may not secure and maintain access to adequate infrastructure in the future, or



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it may not do so on reasonable terms which may adversely affect AngloGold Ashanti’s business, results of operations and financial condition.

AngloGold Ashanti faces strong competition and industry consolidation.

The mining industry is competitive in all of its phases. AngloGold Ashanti competes with other mining companies and individuals for the acquisition of mining and exploration assets, for mining claims and leases on exploration properties, as well as for specialised equipment, components and supplies necessary for exploration, development and mining of the relevant mining or exploration asset. These competitors may have greater financial resources, operational experience and technical capabilities than AngloGold Ashanti and may also be lower on the industry cost curve or have lower cost of capital and better access to scarce capital than AngloGold Ashanti. Competition may increase AngloGold Ashanti’s cost of acquiring suitable claims, properties and assets, which could have a material adverse effect on its financial condition and results of operations.


Further, industry consolidation may lead to increased competition due to lesser availability of mining and exploration assets. A number of transactions have been completed in the gold mining industry in recent years. In this regard, some of AngloGold Ashanti’s competitors have made acquisitions or entered into business combinations, joint ventures, partnerships or other strategic relationships. For example, Barrick Gold Corporation (“Barrick”) completed its merger with Randgold Resources Limited in January 2019 and Newmont Corporation (formerly Newmont Mining Corporation) completed its business combination with Goldcorp Inc. in April 2019. More recently, Agnico Eagle Mines Limited completed its business combination with Kirkland Lake Gold Ltd. in February 2022. Similar consolidations in the form of acquisitions, business combinations, joint ventures, partnerships or other strategic relationships may continue in the future. The companies or alliances resulting from these transactions or any further consolidation involving AngloGold Ashanti’s competitors may benefit from greater economies of scale as well as significantly larger and more diversified asset bases than AngloGold Ashanti. In addition, following such transactions certain of AngloGold Ashanti’s competitors may decide to sell specific mining assets increasing the availability of such assets in the market, which could adversely impact any sale process that AngloGold Ashanti may undertake at the same time, including such sales processes taking longer to complete or not completing at all or not realizing the full value of the assets being disposed of. Such developments may adversely affect AngloGold Ashanti’s business, operating results and financial condition.

AngloGold Ashanti’s mineral deposits, Mineral Reserve and mining operations are located in countries where political, tax and economic laws and policies may change rapidly and unpredictably and such changes and policies may adversely affect both the terms of its mining concessions, as well as its ability to conduct operations in certain countries.

Past experience demonstrates that political, tax and economic laws and policies in countries in which AngloGold Ashanti operates can change rapidly. Examples include the foreign currency regulations that were imposed from 2011 to 2015 and since September 2019 in Argentina and the ban on gold ore exports announced by the Tanzanian government in March 2017. As mining assets are fixed and largely immovable, the adverse impacts of such changes may be unavoidable and immediate.

Any existing and new mining, exploration operations and projects that AngloGold Ashanti carries out are subject to various national and local laws, policies and regulations governing the ownership, prospecting, development and mining of Mineral Reserve, taxation and royalties, exchange controls, import and export duties and restrictions, investment approvals, employee and social community relations and other matters.

In many of the countries in which AngloGold Ashanti operates, there is an ongoing focus by governments seeking greater economic benefit and increased financial and social benefits from extractive industries and mining in particular. This entails the review of mining codes and stability agreements, which were in many cases designed under particular economic conditions, and the formulation or amendment of laws, policies and regulations relating to issues such as mineral rights and asset ownership, royalties, taxation and taxation disputes, “windfall” or “super” taxation, non-recovery of taxation refunds, import and export duties, currency transfers, restrictions on foreign currency holdings and repatriation of earnings. The laws, policies and regulations are increasingly uncertain, changing and generally require progressively higher payments to governments, notably in the form of increased royalties and taxes, mandated beneficiation, export levies and increasing or retaining state or national ownership of resources (including by way of free-carried interests in mining companies for governments). For example, the royalty rate applicable to gold increased from 2.5 percent to 3.5 percent in 2018 in the DRC and from four percent to six percent in Tanzania in 2017. In particular, changes to the fiscal terms governing AngloGold Ashanti’s operations may have a material adverse impact on its results of operations or financial condition, threaten the viability of existing operations, and discourage future investments in certain jurisdictions. This may therefore have an adverse impact on AngloGold Ashanti’s ability to access new assets and potentially reduce future growth opportunities.

For example, in July 2017, the government of Tanzania enacted new legislation which purports to make a number of changes to the operating environment for Tanzania’s extractive industries, including its mining sector. These changes include, among other things, the right for the government of Tanzania to renegotiate existing mining development agreements at its discretion and the provision to the government of Tanzania of a non-dilutable, free-carried interest of no less than 16 percent in all mining projects. See “Item 4B: Business Overview—The Regulatory Environment Enabling AngloGold Ashanti to Mine—Africa Region—Tanzania”. Any future amendments to the mining codes of the countries in which AngloGold Ashanti operates or attempts to



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renegotiate its existing mining conventions in such countries could have further adverse effects on its financial condition and results of operations.

Another example were the amendments to the fiscal mining regime in Ghana introduced in 2012 by the government of Ghana which, among other things, increased the corporate taxation and royalty rates. In this regard, AngloGold Ashanti (Ghana) Limited negotiated in relation to the Obuasi mine a new development agreement (the “Obuasi DA”) and tax concession agreement (the “Obuasi TCA”) with the government of Ghana. As a result of the parliamentary ratification of the Obuasi DA and Obuasi TCA in June 2018, the 2004 Ghana Stability Agreement ceased to apply to the Obuasi mine but continued to apply to the Iduapriem mine until it expired in April 2019. Relevant engagements are currently ongoing between AngloGold Ashanti (Iduapriem) Limited and the government of Ghana to obtain a new agreement for the Iduapriem mine. See “Item 4B: Business Overview—The Regulatory Environment Enabling AngloGold Ashanti to Mine—Africa Region—Ghana”. Any future amendments to the Ghanaian mining regime, negotiation of new agreements, or attempts or failures to renegotiate existing agreements on the same favourable conditions or at all may have a material adverse effect on AngloGold Ashanti’s results of operations or financial condition.

In addition, some of AngloGold Ashanti’s mineral deposits and mining and exploration operations are located in countries that are experiencing social and political instability as well as economic uncertainty. For example, in Guinea, a military coup in September 2021, during which the president was detained, resulted in political instability. Furthermore, political instability and related events in Mali led to the president formally resigning in August 2020 after being detained by a group of soldiers, which was followed by a second military coup in May 2021. The political instability in Mali may negatively affect AngloGold Ashanti’s ability to consummate the disposal of its interests in the Yatela joint venture, including the terms, fulfilment of conditions precedent or timing thereof. See “Item 4B: Business Overview—The Regulatory Environment Enabling AngloGold Ashanti to Mine—Africa Region—Mali”. In countries experiencing social and political instability as well as economic uncertainty, there is a risk that political influence may delay or hinder strategic imperatives for cost rationalisation especially in the areas of procurement and labour reductions. In addition, allegations of corruption in Brazil, the DRC and Guinea against top political and industry leaders have increased political instability and distrust. Efforts at political and economic reforms in Brazil and such other countries may lead to increased instability. Furthermore, elections in the countries in which AngloGold Ashanti operates may be accompanied by social, political and economic uncertainty and instability. The high levels of unemployment, poverty and inequality remain in each of these countries, further increasing the risk of social instability that will continue to negatively impact their economies, business and the mining industry.

Mining is a long-term activity and assets may be located in jurisdictions with elevated risk. Political instability and the resulting unstable business environment in such countries in which companies operate may discourage future investment in those jurisdictions, and may have an adverse impact on AngloGold Ashanti’s ability to access new assets, potentially reducing growth opportunities.

AngloGold Ashanti is subject to an uncertain tax environment. Increased taxes are expected in most countries of operation. Changes in tax laws could result in higher tax expense and payments and could materially impact AngloGold Ashanti’s tax receivables and liabilities as well as deferred tax assets and deferred tax liabilities. In addition, the uncertain tax environment in some regions could limit AngloGold Ashanti’s ability to enforce its rights. As a global company, AngloGold Ashanti conducts its business in countries subject to complex tax rules, which may be interpreted in different ways. Further interpretations or developments of tax regimes may affect the company’s tax liability, return on investments and business operations. AngloGold Ashanti is regularly examined by tax authorities in its various jurisdictions of operation. In Tanzania, the Tanzania Revenue Authority (“TRA”) has been raising audit findings during the past decade on various tax matters in relation to fiscal years 2009 to 2020. A total amount of $291 million was in dispute as of 31 December 2021 (2020: $254 million), including additional tax assessments of $36 million received in 2021. AngloGold Ashanti has challenged those audit findings through the applicable administrative and judicial processes. These matters are at different stages of appeal, including before the two administrative bodies, the Tax Revenue Appeals Board and the Tax Revenue Appeals Tribunal, and the Court of Appeal of Tanzania. In March 2020, the Tax Revenue Appeals Board found in favour of the TRA in a tax dispute relating to AngloGold Ashanti’s tax assessment for fiscal year 2012. AngloGold Ashanti appealed this decision to the Tax Revenue Appeals Board. In the DRC, at the end of January and in early February 2022, Kibali Goldmines S.A., which owns and operates the Kibali gold mine, received 15 claims from the DRC customs authorities (Direction Générale des Douanes et Accises) (the “DRC Customs Authority”) covering a number of customs duties issues. The DRC Customs Authority claims that incorrect import duty tariffs have been applied to the import of certain consumables and equipment for the Kibali gold mine. In addition, the DRC Customs Authority claims that the exemption available to Kibali Goldmines S.A., which was granted under the original mining lease, no longer applies. Finally, the DRC Customs Authority claims that a service fee paid on the exportation of gold was paid to the wrong government body. These claims, including substantial penalties and interest, total $339 million (AngloGold Ashanti’s attributable share: $153 million). Kibali Goldmines S.A. is of the opinion that such claims are unfounded and without merit. AngloGold Ashanti’s inability to resolve these and other tax disputes favourably or to enforce its rights, may have a material adverse impact on its financial performance, cash flow and results of operations.

In Guinea, DRC and Tanzania, AngloGold Ashanti is due refunds of input tax and fuel duties which have remained outstanding for periods longer than those provided for in the respective statutes. In Tanzania, AngloGold Ashanti calculates that net overdue recoverable input tax, fuel duties and appeal deposits (after discounting provisions) of $234 million (2020: $229 million) (including $142 million (2020: $139 million) of value added tax (“VAT”) input credit refunds) were owed to AngloGold Ashanti as of



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31 December 2021 and held by the Tanzanian government and it is not certain if and when AngloGold Ashanti will be refunded these amounts.See “Item 4B: Business Overview—The Regulatory Environment Enabling AngloGold Ashanti to Mine—Africa Region—Tanzania”. In the DRC, AngloGold Ashanti calculates that its attributable share of the net recoverable VAT balance (including recoverable fuel duty and after discounting provisions) owed to it by the DRC government amounted to $73million (2020: $69 million) as of 31 December 2021. Whilst an agreement was reached with the DRC government on the reimbursement of the refundable VAT in the last quarter of 2018, uncertainty remains regarding the timing and level of cash receipts and offsets against other taxes for purposes of the recovery of AngloGold Ashanti’s VAT receivables in the DRC. See “Item 4B: Business Overview—The Regulatory Environment Enabling AngloGold Ashanti to Mine—Africa Region—Democratic Republic of the Congo (DRC)”. Similarly, as a general matter, it is not certain when or whether AngloGold Ashanti will be refunded all tax-related amounts due from any other government.

The countries in which AngloGold Ashanti operates may also introduce export restrictions, exchange controls, impose restrictions to source materials and services locally, or impose other similar restrictions that hinder foreign companies’ operations within such countries as well as adversely affect their results of operations and financial condition. For example, in March 2017, the Tanzanian government announced an immediate ban on gold, silver, copper and nickel ore exports, in an attempt to ensure that mineral value-addition activities would be carried out in-country. Further, in 2018, the DRC government imposed new exchange control rules, as part of its reform of the DRC’s mining code, which resulted in AngloGold Ashanti’s inability to repatriate cash from its DRC operations. The company’s attributable share of the outstanding cash balances awaiting repatriation from the DRC amounted to $499 million (2020: $424 million) as of 31 December 2021. In this respect, AngloGold Ashanti’s temporary or permanent inability to repatriate cash from the countries in which AngloGold Ashanti operates could have a material adverse effect on the company’s results of operations and financial condition. See “Item 4B: Business Overview—The Regulatory Environment Enabling AngloGold Ashanti to Mine—Africa Region—Democratic Republic of the Congo (DRC)”.

Additionally, from 2011 to 2015, the Argentinean government introduced stricter exchange controls and related protracted approval processes which limited the company’s ability to repatriate dividends from its Argentinean subsidiaries. In September 2018, export duties were re-imposed by the Argentinean government, which are currently set at eight percent for certain goods, including doré bars and gold alloys. AngloGold Ashanti’s net export duty receivables (after discounting provisions) in Argentina amounted to $19 million (2020: $23 million) as of 31 December 2021. These re-imposed export duties, if not compensated with other tax reductions, affect the tax stability guarantee granted to Cerro Vanguardia S.A. (“CVSA”) and could have a material adverse impact on the company’s results of operations and financial condition. Furthermore, in September 2019, the Argentinean government re-established foreign exchange and export controls. CVSA had a cash balance equivalent to $139 million (2020: $137 million) at 31 December 2021. Out of the $139 million (equivalent) cash balance, monies equivalent to $131 million 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 U.S. dollars in order to distribute an offshore dividend of $114 million to AngloGold Ashanti. In addition, increased socio-political tensions and hyper-inflation over the past few years have greatly increased the country risk which in turn has lowered the potential future earnings of AngloGold Ashanti’s investment in CVSA. Argentina’s economy continues to suffer from a persistent recession coupled with high inflation (51% in 2021) and widespread unemployment (16.4% in 2021). See “Item 4B: Business Overview—The Regulatory Environment Enabling AngloGold Ashanti to Mine—Americas—Argentina”.

If, in one or more of the countries in which it operates, AngloGold Ashanti were not able to obtain or maintain necessary permits, authorisations or agreements to implement planned projects or continue its operations under conditions or within timeframes that make such plans and operations economically viable, or if the applicable legal, ownership, fiscal (including all royalties and duties), exchange control, employment, environmental and social laws or regimes change materially, or if the governing political authorities change resulting in amendments to such laws and regimes, this could have a material adverse effect on AngloGold Ashanti’s operating results, financial condition, and, in extreme situations, on the viability of an operation. See “—AngloGold Ashanti’s mining rights in the countries in which it operates could be altered, suspended or cancelled for a variety of reasons, including breaches in its obligations in respect of such mining rights” and “Item 4B: Business Overview—The Regulatory Environment Enabling AngloGold Ashanti to Mine”.

The prevalence of occupational health diseases and other diseases and the potential costs and liabilities related thereto may have an adverse effect on the business and results of operations of AngloGold Ashanti.

The primary areas of focus in respect of occupational health of employees within the company’s operations are noise-induced hearing loss and occupational lung diseases (“OLD”), which include pulmonary diseases such as tuberculosis from various causes and silicosis in individuals exposed to silica dust, and which require active dust management strategies in underground operations. In South Africa, a significant number of silicosis cases by former employees alleging past exposures are still reported each year to the board for statutory compensation. If the costs associated with providing occupational health services, implementing dust control measures or supplying protective equipment increase significantly beyond anticipated or budgeted amounts, this could have an adverse effect on AngloGold Ashanti’s results of operations and financial condition. Actual and alleged health and safety incidents or breaches of standards may also adversely impact the company’s reputation.

In South Africa, AngloGold Ashanti has been subject to numerous claims, including class action litigation with respect to alleged OLD with two certified industry-wide classes, i.e., a Silicosis Class and a Tuberculosis Class. The settlement agreement in relation to this silicosis and tuberculosis class action came into effect in December 2019, following the approval of the settlement



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by the High Court in Johannesburg in July 2019. As a result, a trust (Tshiamiso Trust) was established for a minimum of 13 years responsible for making payments to eligible beneficiaries. The amount of monetary compensation will vary depending on the nature and seriousness of the disease. As of 31 December 2021, AngloGold Ashanti has recorded a provision of $50 million (2020: $61 million and 2019: $65 million) to cover the estimated settlement costs and related expenditure of the silicosis litigation. Although significant judgement was applied in estimating the costs incurred to settle the silicosis and tuberculosis class action claim, the final costs and related expenditure may differ from current cost estimates. In addition, even though management believes the assumptions are appropriate, changes in the assumptions may materially affect the provision and final costs of settlement. For example, the final settlement costs and related expenditure may be higher than the recorded provision depending on various factors, such as, among other things, potential changes in the settlement terms, differences in the number and profile of eligible claimants actually compensated compared to current estimates and fluctuations in foreign exchange rates. There can be no assurance that ultimately this matter will not result in losses in excess of the recorded provision, which may have a material adverse effect on AngloGold Ashanti’s financial position. The recent sale of the company’s South African operating assets and liabilities to Harmony did not include the silicosis obligation relating to South African employees, which was retained by AngloGold Ashanti. For further information, see “Item 18: Financial Statements—Note 1.2—Accounting Policies—Significant Accounting Judgements and Estimates—Provision for silicosis”.

AngloGold Ashanti also faces certain risks in dealing with HIV/AIDS and with tropical disease outbreaks such as malaria, and other diseases which may have an adverse effect on its results of operations and financial condition. Malaria and other tropical diseases pose significant health risks at all of the company’s operations in Central, West and East Africa where such diseases may assume epidemic proportions because of ineffective national control programmes. Malaria is a major cause of death in young children and pregnant women in these areas but also gives rise to fatalities and absenteeism in adult men. Other conditions such as heart disease, chronic diseases and obesity are also of increasing incidence and concern. Such diseases impair the health of workers and negatively affect productivity and profitability as a result of workers’ diminished focus or skill, absenteeism, treatment costs and allocated resources. Any current or future medical programme may not be successful in preventing or reducing the infection rate among AngloGold Ashanti’s employees or in affecting consequent illness or mortality rates. AngloGold Ashanti may incur significant costs in addressing these issues in the future, which could also adversely impact the company’s results of operations and financial condition.

AngloGold Ashanti may face additional health care challenges as a result of other public health crises, pandemics or epidemics. For example, there is a risk that the outbreak of the SARS-CoV-2 virus responsible for COVID-19 may significantly impair the health or mobility of the company’s labour force and, as a result, AngloGold Ashanti’s ability to maintain its production levels or operations. Excessive absenteeism in, or travel restrictions impacting the company’s workforce as the result of COVID-19 may lead to a full or partial shutdown of AngloGold Ashanti’s mines in the affected areas and, as a result, a halt or slowdown in related mining operations. The extent to which the COVID-19 pandemic will impact AngloGold Ashanti’s results will depend on the scale and duration of future developments in each of the regions where the company operates, which are highly uncertain and cannot be predicted, including notably the possibility of a recurrence or “multiple waves” of the outbreak and new variants. For example, uncertainties remain with respect to the emergence of new COVID-19 viral mutations and the efficacy of the COVID-19 vaccines currently available to address these new mutations. A curtailment or suspension at AngloGold Ashanti’s mining operations in certain or all regions due to shutdowns, either those requested or mandated by governmental authorities or otherwise elected by the company, including for safety or staffing reasons, may have a material adverse impact on AngloGold Ashanti’s results of operations and financial condition. See “—Mining operations and projects are vulnerable to supply chain disruption such that operations and development projects could be adversely affected by shortages of, as well as the lead times to deliver, strategic spares, critical consumables, mining equipment or metallurgical plant".

In South Africa, AngloGold Ashanti retained the legal and financial obligations in respect of a historical post-retirement medical scheme for certain employees and their dependents following the recent sale of the company’s South African operating assets and liabilities to Harmony. AngloGold Ashanti’s responsibility extends to South African employees who historically qualified for such scheme (which was discontinued about two decades ago) and who were either not transferred to Harmony in connection with the asset sale but remained employed by the company as of the consummation of the sale or who had retired prior to the completion of the transaction. As of 31 December 2021, AngloGold Ashanti has recorded a provision of $71 million (2020: $77 million and 2019: $93 million) to cover the estimated contribution costs of the post-retirement medical scheme for such current and retired employees. In the event that the required contribution costs ultimately exceed the estimates on which the recorded provision is based, the additional costs incurred by the company may have a material adverse effect on AngloGold Ashanti’s financial position. For further information, see “Item 18: Financial Statements—Note 26—Provision for pension and post-retirement benefits”.

AngloGold Ashanti’s inability to retain its senior management may have an adverse effect on its business.

AngloGold Ashanti’s success depends largely upon the continued service of its senior management, including its chief executive officer, the executive officers at each of its business divisions and the general managers at its mines. The departure of one or more members of AngloGold Ashanti’s senior management may have an adverse effect on its business, results of operations and financial condition. In addition, the loss of one or more members of the senior management team, coupled with any reduced attractiveness of the gold mining sector, could lead to the departures of other members of the management team. The inability of AngloGold Ashanti to retain its senior management could disrupt its operations, and have a material adverse impact on its business, results of operations and financial condition.



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AngloGold Ashanti competes with mining and other companies for key human resources with critical skills and its inability to retain key personnel could have an adverse effect on its business.

AngloGold Ashanti competes on a global basis with mining and other companies to attract and retain key human resources at all levels with the appropriate technical skills and operating and managerial experience necessary to operate and supervise its business. This is exacerbated by the global shortage of persons with critical mining skills, including geologists, mining engineers, metallurgists and skilled artisans. Furthermore, the often remote locations of mining operations may make the mining industry unattractive to potential employees. Changes in taxation and the regulatory environment where AngloGold Ashanti operates may also impact the company’s ability to attract and retain key personnel, especially those from abroad.

For example, despite the scale of mining activities in many African countries, recruitment of skilled personnel has been challenging as the local development of critical skills struggles to match an increasing demand. Recruitment remains difficult due to university offerings and other training institution offerings often not well-suited to the specific needs of the mining industry, as well as other factors such as language barriers and low literacy skills. Furthermore, local workers with critical skills, such as jumbo operators and tele-remote bogger operators from Ghana and Tanzania are increasingly being targeted for expatriate opportunities across the continent. In addition, it has become increasingly difficult to secure work permits for AngloGold Ashanti’s expatriate workforce in Tanzania as a result of the Tanzanian government’s efforts to promote the employment of Tanzanian citizens. Difficulties in obtaining such non-citizen work permits due to increased pressure for localisation of labour, if continuing, may have an adverse impact on the company’s operations in Tanzania, Ghana and Guinea. Certain jurisdictions, such as Ghana, have also adopted local content and local participation policies.

Other regions experience similar challenges. For example, while there is a high concentration of specialised and skilled mining workers in Australia and Brazil, there is significant competition for such personnel in those markets. Additionally, the company may incur significant costs to build talent, capacity and expertise across its global operations. Despite AngloGold Ashanti’s investments, the company may not be able to retain and attract sufficient skilled and experienced employees in all areas of the business. Should it fail to do so or lose any of its key personnel with critical skills, business and growth prospects may be harmed and this could have an adverse impact on AngloGold Ashanti’s results of operations and financial condition.

Increased labour costs could have a material adverse effect on AngloGold Ashanti’s results of operations and financial condition.

Labour costs represent a substantial proportion of the company’s total operating costs and at many operations in the Americas, constitute approximately 30 to 40 percent of the operations’ operating costs. Absent any simultaneous increase in productivity, any change to the company’s wage agreements or other factors that could increase labour costs may have a material adverse effect on AngloGold Ashanti’s results of operations and financial condition.

AngloGold Ashanti’s results may be further impaired if the company incurs penalties for failing to meet standards set by labour laws regarding workers’ rights or incurs costs to comply with new labour laws, rules and regulations. For example, Ghanaian law contains broad provisions requiring mining companies to recruit and train Ghanaian personnel and to use the services of Ghanaian companies. Penalties and compliance costs, as well as increased costs due to laws and regulations less favourable to employers, could have a material adverse effect on the company’s results of operations and financial condition.

The use of contractors at certain of the company’s operations may expose AngloGold Ashanti to delays or suspensions in mining activities and increases in mining costs.

AngloGold Ashanti uses contractors at certain of its operations to mine and deliver ore to processing plants as well as for other purposes. At mines employing mining contractors, contracting costs represent a significant proportion of the total operating costs of these operations.

AngloGold Ashanti’s operations could be disrupted, resulting in additional costs and liabilities, if the mining contractors at affected mines have financial difficulties, or if a dispute arises in renegotiating a contract, or if there is a delay in replacing an existing contractor and its operating equipment to meet business needs at expected cost levels. Increases in contract mining rates, in the absence of associated productivity increases, may also have an adverse impact on the company’s results of operations and financial condition. In addition, restrictions on travel imposed by governments as a result of the outbreak of infectious diseases, a pandemic or other public health threat, such as the outbreak of the SARS-CoV-2 virus responsible for COVID-19, may prevent mining contractors from reaching AngloGold Ashanti’s mining sites which could have an adverse effect on the operations of the affected mines. For example, in Argentina, inter-provincial travel restrictions imposed to contain the spread of the COVID-19 pandemic prevented mining contractors and other employees from travelling to the remote site where CVSA is located. Furthermore, in Australia, international and state border closures in connection with the COVID-19 pandemic adversely impacted the ability of mining contractors and specialised and skilled employees to travel within the country as well as internationally to mining sites located outside of Australia.

Contractor disputes can also arise after the termination of the contractual relationship or the sale of the applicable mine. For example, the company recently settled arbitration proceedings with contractors in Ghana with regard to its Obuasi mine. See “Item 8A: Legal Proceedings—Ghana”.



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In addition, AngloGold Ashanti’s reduced control over those aspects of operations which are the responsibility of contractors, their failure to comply with applicable legal, human rights and regulatory requirements, or their inability to manage their workforce or provide high quality services or a high level of productivity could adversely affect AngloGold Ashanti’s reputation, results of operations and financial condition, and may result in the company’s incurrence of liability to third parties due to the actions of contractors.

Risks Related to AngloGold Ashanti’s Operations and Business

AngloGold Ashanti’s Mineral Reserve, deposits and mining operations are located in countries that face instability, public health and security risks that may adversely affect both the terms of its mining concessions, as well as its ability to conduct operations in certain countries.

Some of AngloGold Ashanti’s mineral deposits and mining and exploration operations are located in countries that are experiencing political and economic instability and other uncertainty.

Certain of the countries in which AngloGold Ashanti has mineral deposits or mining or exploration operations, including the DRC, Guinea, Ghana, Tanzania, Colombia and Brazil, have in the past experienced, and in certain cases continue to experience, a difficult security environment. In particular, various illegal groups active in regions in which the company is present may pose a credible threat of organised crime, military repression, terrorism, civil unrest and disturbances, sabotage, extortion and kidnapping, which could have an adverse effect on its operations in these and other regions.

Attacks on mining companies (for example, attacks targeting gold rooms where smelted gold bars are stored before being transported to other facilities) have also been occurring over the last couple of years, especially in Brazil, and the risk of future attacks remains a threat and could adversely affect the company’s activities.

Intrusions onto AngloGold Ashanti’s tenement and operational areas, including artisanal and illegal mining-related activities in particular, continue to be a challenge. The most significant security challenges remain in Tanzania, Guinea and Ghana, in areas where there is endemic poverty, high levels of unemployment and an increased level of organisation and funding of criminal activity. See “—Artisanal and illegal mining occurs on AngloGold Ashanti’s properties, which can disrupt the company’s business and expose the company to liability”. If the security environment surrounding AngloGold Ashanti’s operations that are most exposed to these challenges deteriorates, employee, third party and community member injuries and fatalities could also increase. Any such increase could disrupt the company’s operations in certain mines and adversely affect its reputation, results of operations and financial condition. In some instances, risk assessments categorise threats as serious enough to require resorting to public security forces, such as national police or military units on a near-permanent basis. In the event that continued invasions in any of the company’s countries of operations compromise the company’s security or business principles, AngloGold Ashanti may withdraw from any such countries on a temporary or permanent basis. This could have a material adverse impact on AngloGold Ashanti’s results of operations and financial condition.

Furthermore, AngloGold Ashanti continues to experience strained relationships with certain of its host communities. AngloGold Ashanti operates in several regions where poverty, unemployment and the lack of access to alternative livelihoods mean that the creation and distribution of economic benefit from mining operations is a significant area of focus for community and government. AngloGold Ashanti has also been publicly accused of inadequate resettlement practices at its Siguiri operation in Guinea by local and international NGOs, which poses reputational risk.

In addition, infectious diseases are also a threat to the stability of some of the countries in which AngloGold Ashanti operates, where limited local health infrastructure weakens governments’ ability to manage and contain outbreaks effectively, in particular prolonged or sustained outbreaks. For example, during August 2014, cases of the Ebola virus were reported in Siguiri, which is located near AngloGold Ashanti’s Siguiri mine in Guinea. AngloGold Ashanti implemented certain restrictions on travel to and from the Siguiri mine as a precaution. As the Ebola virus caused significant disruptions in the company’s exploration activities, particularly relating to field mapping and geophysics, AngloGold Ashanti also suspended its brownfields work programme and greenfields field work in the middle of 2014. A new Ebola outbreak was detected in early 2021 in Guinea, which continued until the summer of 2021. The DRC also experienced an outbreak of the Ebola virus at the end of 2021.

Similarly, AngloGold Ashanti operates mines in regions that have had confirmed cases of COVID-19 and resulting deaths. In some countries, national or state governments declared a state of emergency empowering such governments to take actions or impose restrictions to contain the virus that otherwise would not be permitted under the applicable legal and regulatory framework. Governments also imposed certain restrictions on travel or business activities as protective measures, including nationwide lockdowns (quarantine), which have disrupted, and may in the future if reimposed disrupt, the company’s activities and operations and even lead to a full or partial shutdown of the company’s mining operations in those countries. For example, in March 2020, following the Argentinean government’s decision to impose a nationwide lockdown (quarantine), including travel restrictions, border closings and shutdown of most industries, CVSA was required to temporarily suspend mining activities. CVSA restarted milling operations in April 2020. However, in August 2020, a rotation of workers was affected by travel restrictions between the provinces in Argentina and, in November 2020, operations were voluntarily suspended to mitigate the risk of the spread of the COVID-19 virus. Although operations were expected to resume in December 2020, the Argentinean government imposed another partial shutdown of operations which had a negative impact on production at CVSA. Operations resumed in



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January 2021; however, AngloGold Ashanti’s operations at CVSA continue to be affected by restrictions on the movement of employees between certain localities within the province of Santa Cruz, due to recent incidents of community transmission. In March 2020, in Brazil, the State of Goiás extended a set of restrictions on the operation of non-essential business, which ran through the beginning of April 2020, to include mining, resulting in the temporary suspension of mining activities at AngloGold Ashanti’s Serra Grande operations until that time. In these countries, the suspension of mining activities continued for the period during which the respective restrictions were in force. Any such emergency governmental action may have a material adverse effect on AngloGold Ashanti’s operating and financial results, which may result in a negative impact on the company’s cashflows, funding requirements and overall liquidity.

The extent to which the COVID-19 pandemic will impact the company’s results will depend on the scale, duration and geographic reach of future developments, which are highly uncertain and cannot be predicted, including notably the possibility of a recurrence or “multiple waves” of the outbreak and new variants. There have been instances in which governmental restrictions have been re-imposed where infection rates have started to increase again and there is a risk that widespread measures such as strict social distancing and curtailing or ceasing normal business activities may be reintroduced in the future until effective treatments or vaccines have been developed and administered. In addition to governmental measures, AngloGold Ashanti may also consider additional safety measures which may further the negative impacts on its operations or its exploration projects in countries that may be affected by infectious diseases, such as Ebola or COVID-19.

Labour unrest, activism and disruptions (including protracted stoppages) could have a material adverse effect on AngloGold Ashanti’s results of operations and financial condition.

AngloGold Ashanti’s employees in Ghana, Guinea, Tanzania, Brazil and Argentina are highly unionised and unions are active at some of the company’s other operations. Trade unions working with communities and NGOs, therefore, have a significant impact on the general labour relations environment, including labour relations at an operational level and operational stability at times. Unions are characterised by their robust engagement with the company, both in the context of existing collective bargaining structures to improve and advance conditions of employment, and in the context of changing economic conditions, downsizing and downscaling of operations. These factors expose the company’s operations to potential strike action and work stoppages. Any future labour unrest and disruptions could have a material adverse effect on AngloGold Ashanti’s results of operations and financial condition.

Unions are also increasingly affiliated to global union federations and championing broader political, economic and social issues such as carbon emissions, environmental issues, health and safety, human rights, job losses, unemployment and restructuring, gender and inclusion issues, and migrant labour, as rallying points. Rolling mass action, picketing, protests and community involvement may create safety, security and related risks to the company and its assets. Future disruptions, strikes, and protest actions cannot be excluded and may have a material adverse effect on the company’s results of operations and financial condition, especially if these actions have a long duration. Furthermore, IndustriALL, representing more than 50 million workers globally, is expected to continue its attempts to enter into a global framework agreement with mining and resource companies. A global framework agreement will expose AngloGold Ashanti to the risk of standardisation and equalisations of labour terms and conditions across the group, irrespective of the peculiar conditions applicable in the various jurisdictions in which the group operates. Any labour unrest and disruptions caused by such international trade unions could have a material adverse effect on AngloGold Ashanti’s results of operations and financial condition.

Artisanal and illegal mining occurs on AngloGold Ashanti’s properties, which can disrupt the company’s business and expose the company to liability.

Artisanal and illegal miners are active on, or adjacent to, at least 8 of AngloGold Ashanti’s properties, which at times may lead to interference with the company’s operations and results in conflict that presents a security threat to property and human life. AngloGold Ashanti’s operations and projects affected and potentially at risk by artisanal and/or illegal small-scale mining are mainly situated in Tanzania, Ghana, Guinea and Brazil. Artisanal and illegal small-scale mining is associated with a number of negative impacts, including environmental degradation, flouting of land rights, poor working practices, erosion of civil society, human rights abuse and funding of conflict. The environmental, social, safety and health impacts of artisanal mining are frequently attributed to formal mining activity, and it is often assumed that artisanally-mined gold is channelled through large-scale mining operators, even though artisanal and large-scale miners have distinct supply chains. These misconceptions impact negatively on the reputation of the industry.

The activities of the illegal miners, which include theft and shrinkage, could cause damage to AngloGold Ashanti’s properties, including pollution, underground fires, or personal injury or death, for which AngloGold Ashanti could potentially be held responsible. Illegal mining could result in the depletion of mineral deposits, potentially making the future mining of such deposits uneconomical. The presence of illegal miners could lead to project delays and disputes regarding the development or operation of commercial gold deposits. In addition, illegal mining could lead to an increase in the level of organisation and funding of criminal activity around some of the company’s operations. The most significant security challenges have occurred in Tanzania, Guinea and Ghana in areas where there is endemic poverty and high levels of unemployment.

More generally, illegal mining and theft could also result in lost gold Mineral Reserve, mine stoppages, and have other material adverse effects on AngloGold Ashanti’s results of operations or financial condition.



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AngloGold Ashanti’s mining rights in the countries in which it operates could be altered, suspended or cancelled for a variety of reasons, including breaches in its obligations in respect of such mining rights.

AngloGold Ashanti’s right to own and exploit Mineral Reserve and deposits is governed by the laws and regulations of the jurisdictions in which the mineral properties are located. See “Item 4B: Business Overview—The Regulatory Environment Enabling AngloGold Ashanti to Mine”. Currently, a significant portion of AngloGold Ashanti’s Mineral Reserve and deposits are located in countries where mining rights could be suspended or cancelled should it breach its obligations in respect of the acquisition and exploitation of these rights.

In each of the countries in which AngloGold Ashanti operates, the formulation or implementation of government policies on certain issues may be unpredictable. This may include changes in laws relating to mineral rights, ownership of mining assets and the right to prospect and mine, and in extreme cases, nationalisation, expropriation or nullification of existing concessions, licenses, permits, agreements and contracts.

Any existing and new mining and exploration operations and projects are subject to various national and local laws, policies and regulations governing the ownership and the right to prospect or mine or develop proposed projects. For more details on the risks surrounding ownership of mining assets, see “—Title to AngloGold Ashanti’s properties may be uncertain and subject to challenge” and “—AngloGold Ashanti’s mineral deposits, Mineral Reserve and mining operations are located in countries where political, tax and economic laws and policies may change rapidly and unpredictably and such changes and policies may adversely affect both the terms of its mining concessions, as well as its ability to conduct operations in certain countries”.

Project implementation delays could result in licences not being renewed and the loss of mining rights. Some of AngloGold Ashanti’s mining concessions, authorisations, licences and permits are subject to expiry, limitations on renewal and various other risks and uncertainties.

In addition, any dispute with governments or other stakeholders, including labour unions, involving one of AngloGold Ashanti’s operations, as a result of rationalisation efforts or otherwise, could negatively affect AngloGold Ashanti’s relationship with such government or stakeholders in respect of other operations within the same country, which could result in adverse consequences, including unfavourable regulatory action, claims and labour disputes. Such adverse consequences could be exacerbated due to the holding company structure of AngloGold Ashanti’s subsidiaries in some of the countries in which it operates.

In Colombia, a government agency grants exclusive concession contracts for exploration and exploitation which contain specified timelines for the completion of the various phases of a mining project. The company must comply with these timelines unless performance is suspended, for example, due to force majeure or extensions or modifications to the timelines. If AngloGold Ashanti does not comply with the specified timelines for the completion of the various phases of a mining project, it may be found in breach of its concession contract or mining license and such breach could constitute grounds for the mining authority to terminate such concession contract or mining license. Force majeure was declared at the La Colosa project by the Colombian mining authority, stopping all activities, pending issuance of permits required to continue the next phase of operations. During the period when force majeure is in force, the specified timelines for completing the various phases of the mining project under the concession contract are suspended. The force majeure has been extended multiple times and is now expected to expire in June 2022, after which such declaration will once more need to be extended in case the relevant permits have not been granted. However, there can be no guarantee that such declaration, if required to be extended, will be extended at that time. Force majeure generally remains in force as long as the underlying circumstances which led to its declaration persist. See also “Item 4B: Business Overview—The Regulatory Environment Enabling AngloGold Ashanti to Mine—Americas—Colombia”.

AngloGold Ashanti’s insurance does not cover most losses caused by the risks described in this section. See “—The occurrence of events for which AngloGold Ashanti is not insured or for which its insurance is inadequate may adversely affect cash flows and overall profitability”.

If AngloGold Ashanti is not able to obtain or maintain necessary permits, authorisations or agreements to prospect or mine or to implement planned projects, or continue its operations, or comply with all laws, regulations or requirements, or do so within timeframes that make such plans and operations economically viable, or if the laws impacting the company’s ownership of its mineral rights or the right to prospect or mine change materially, or if governments increase their ownership in the mines or nationalise them, AngloGold Ashanti’s results of operations and financial condition could be adversely affected.

AngloGold Ashanti may also prove unable to deliver on production targets, including in potentially critical areas, as well as on the timely, cost-effective and successful execution, including ramping-up, of key capital projects. For example, Colombia is an untested jurisdiction for the company, so permitting, licensing, stakeholder expectations and demands and other external factors could affect timelines and cause capital overruns. Unforeseen difficulties, delays or costs may adversely affect the successful implementation of the company’s business strategy and projects, and such strategy and projects may not result in the anticipated benefits, which could have a material adverse effect on its results of operations, financial condition and prospects.







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Title to AngloGold Ashanti’s properties may be uncertain and subject to challenge.

AngloGold Ashanti has operations in several countries where ownership of land is uncertain and where disputes may arise in relation to ownership. Certain of AngloGold Ashanti’s properties may be subject to the rights or the asserted rights of various community stakeholders, including indigenous people. The presence of those stakeholders may have an impact on AngloGold Ashanti’s ability to develop or operate its mining interests. Title legislation is complex and difficult to predict and disputes or failure to maintain title could negatively affect the business results of new or existing projects.

For example, in Australia, the Native Title Act 1993 (Cth) provides for the establishment and recognition of native title under certain circumstances. Once a native title claim is registered, the native title party has a right to negotiate prior to the grant of certain mining tenements within the native title claim area. Registration of a native title claim, or a determination of native title, does not affect operations on mining tenements that were validly granted prior to the registration of the native title claim, although registered or determined native title holders will ordinarily have a right to claim compensation from the relevant Commonwealth or State government in respect of the impact of the tenement on their property rights. However, in the state of Western Australia, the Mining Act 1978 (WA) provides that an applicant for the grant of, or the holder of, a mining tenement is responsible for native title compensation, if determined to be payable, to native title holders. See “Item 4B: Business Overview—The Regulatory Environment Enabling AngloGold Ashanti to Mine—Australia”.

Title to AngloGold Ashanti’s properties, particularly undeveloped ones, may also be defective or subject to challenge. Title insurance generally is not available, and title review does not necessarily preclude third parties from contesting ownership. The precise area and location of the company’s claims may be in doubt and concessions granted under various titles in a single area may turn out not to be perfectly contiguous, leaving title to areas between concessions open to challenge. Accordingly, AngloGold Ashanti’s mineral properties may be subject to prior unregistered liens, agreements, transfers or claims, including native land claims, and title may be affected by, among other things, undetected defects. Further, title to the company’s properties depends in some cases upon compliance with complex statutes and regulations, including those imposing periodic claim maintenance requirements. Failure to strictly comply with these requirements could invalidate the company’s title to such properties, and such defects may not be readily curable.

Risks Related to AngloGold Ashanti’s Corporate and Financing Structure and Strategy

AngloGold Ashanti expects to have significant financing requirements.

AngloGold Ashanti’s existing board-approved development projects and exploration initiatives as well as its potential development projects will require significant funding. The company’s capital expenditure plans and requirements are subject to a number of risks, contingencies and other factors, some of which are beyond its control, including volatile or sustained lower gold prices, and therefore the actual future capital expenditure and investments may differ significantly from the current planned amounts.

As a result, new sources of capital may be needed to help meet the funding requirements of these developments, to fund ongoing business activities and to pay dividends. AngloGold Ashanti’s ability to further raise and service significant new sources of capital will be a function of macroeconomic conditions, the condition of the financial markets, future gold prices, the company’s operational performance and operating cash flow and debt position, among other factors. AngloGold Ashanti’s ability to raise further debt, equity or quasi-equity financing in the future and the cost of such financing will depend on, among other factors, its prevailing credit rating, which may be affected by the company’s ability to maintain its outstanding debt and financial ratios at levels acceptable to the credit ratings agencies, its business prospects, risks relating to the countries in which it operates or other factors. As a result, in the event of depressed gold prices, unanticipated operating or financial challenges, any dislocation in financial markets (including due to the impact of public health crises, epidemics or pandemics) or new funding limitations, AngloGold Ashanti’s ability to pursue new business opportunities on reasonable terms, invest in existing and new projects, fund its ongoing business activities, exit projects and retire or service outstanding debt and pay dividends could be significantly constrained, all of which could adversely impact the company’s results of operations and financial condition.

Sales of large quantities of AngloGold Ashanti’s ordinary shares and ADSs, and the perception that these sales may occur or other dilution of the company’s equity, could adversely affect the prevailing market price of the company’s securities.

The bulk of AngloGold Ashanti’s shares are held by a relatively small number of investors. According to information available to the company, AngloGold Ashanti’s five largest shareholders beneficially owned 31.56 percent and the top 10 largest beneficially owned 43.17 percent of AngloGold Ashanti’s ordinary shares as at 31 December 2021. The market price of the company’s securities could fall if large quantities of ordinary shares or ADSs are sold in the public market, if there is divestment by certain types or groupings of investors, or if there is the perception in the marketplace that such sales could occur. Subject to applicable securities laws, holders of AngloGold Ashanti’s ordinary shares or ADSs may decide to sell them at any time.

The market price of the company’s ordinary shares or ADSs could also fall as a result of any future offerings AngloGold Ashanti makes of its ordinary shares, ADSs, or securities exchangeable or exercisable for the company’s ordinary shares or ADSs, or the perception in the marketplace that these offerings might occur. AngloGold Ashanti may make such offerings, including offerings



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of additional ADS rights, share rights or similar securities, at any time or from time to time in the future and such offerings could adversely affect the prevailing market price of the company's securities.

AngloGold Ashanti may not pay dividends or make similar payments to shareholders in the future.

AngloGold Ashanti pays cash dividends only if there are sufficient funds available for that purpose. Fund availability depends upon many factors, including the amount of cash available, taking into account AngloGold Ashanti’s capital expenditure on existing infrastructure and exploration and other projects. Additionally, under South African law, a company is entitled to pay a dividend or similar payment to its shareholders only if the company meets the solvency and liquidity tests set out in legislation and its founding documents.

Given these factors, including the capital and investment needs of AngloGold Ashanti, and the board of directors’ discretion to declare a dividend (including the amount and timing thereof), cash dividends may not be paid in the future.

Certain factors may affect AngloGold Ashanti’s ability to support the carrying amount of its property, plant and equipment, intangible assets and goodwill on the balance sheet. If the carrying amount of its assets is not recoverable, AngloGold Ashanti may be required to recognise an impairment charge, which could be significant.

AngloGold Ashanti reviews and tests the carrying amount of its assets when events or changes in circumstances suggest that the carrying amount may not be recoverable. The company values individual mining assets at the lowest level for which cash flows are identifiable and independent of cash flows of other mining assets and liabilities.

If there are indications that impairment may have occurred, AngloGold Ashanti prepares estimates of a recoverable amount for each group of assets. Expected future cash flows are inherently uncertain and could materially change over time. Recoverable amounts are significantly affected by Mineral Reserve and production estimates, together with economic factors such as spot and forward gold prices and currency exchange rates, as well as discount rates and estimates of costs to produce Mineral Reserves and future capital expenditure. Estimated rehabilitation and closure costs could also materially affect the company’s financial performance and could result in the need to recognise an impairment charge.

If any of these uncertainties occur, either alone or in combination, management could be required to recognise an impairment, which could have a material adverse effect on the company’s results of operations and financial condition.

AngloGold Ashanti does not have full management control over some of its significant joint venture projects and other interests. If the operators of these projects do not manage these effectively and efficiently, the company’s investment in these projects could be adversely affected and its reputation could be harmed.

AngloGold Ashanti’s joint venture at Kibali in the DRC is managed by the company’s joint venture partner Barrick Gold Corporation (“Barrick”) following the completion of the merger between Randgold Resources Limited and Barrick in January 2019. In addition, certain of AngloGold Ashanti’s exploration ventures are managed by the relevant joint venture partner. For example, in January 2020, the company’s joint venture partner B2Gold Corp. assumed the role of manager of the Gramalote project in Colombia, in which AngloGold Ashanti now holds a 50 percent interest.

The company cannot ensure that these projects are operated in compliance with the standards that AngloGold Ashanti applies to its other operations. If these joint ventures are not operated effectively or efficiently, including as a result of weaknesses in the policies, procedures and controls implemented by the joint venture partners, the company’s investment in the relevant project could be adversely affected. In addition, negative publicity associated with operations that are ineffective or inefficiently operated, particularly relating to any resulting accidents or environmental incidents, could harm the company’s reputation and therefore its prospects and potentially its financial condition. Furthermore, any failure of joint venture partners to meet their obligations to AngloGold Ashanti or to third parties, or any disputes with respect to the parties’ respective rights and obligations, could have a material adverse impact on AngloGold Ashanti’s results of operations and financial condition. In particular, AngloGold Ashanti and Barrick retain equal representation, with neither party holding a deciding vote, on the board of the company that has overall management control of the Kibali project in the DRC and all major management decisions for this project, including approval of the budget, require board approval. If a dispute arises between AngloGold Ashanti and Barrick with respect to the Kibali project and the parties are unable to amicably resolve such dispute, it may be difficult for the parties to make strategic decisions relating to the project affected by such dispute, the day-to-day operations and the development of such project may be adversely affected and AngloGold Ashanti may have to participate in proceedings to resolve the dispute, which could adversely affect the company’s results of operations and financial condition.

AngloGold Ashanti’s joint venture partners may have economic or business interests or goals that are not consistent with the company’s or may, as a result of financial or other difficulties, be unable or unwilling to fulfill their obligations under the joint venture or other agreements. For example, a joint venture partner could decide to sell its shares in the joint venture in breach of any pre-emptive rights which the company may have under the relevant joint venture agreement. Disputes between AngloGold Ashanti and its joint venture partners may lead to legal action, including litigation between the company and its joint venture partners. Such disputes could adversely affect the operation of the joint venture, may prevent the realisation of the joint ventures’ goals and could adversely affect AngloGold Ashanti’s investment in the joint venture or harm the company’s reputation. There is



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no assurance that AngloGold Ashanti’s joint venture partners will continue their relationship with the company in the future or that the company will be able to achieve its financial or strategic objectives relating to the joint ventures.

Any downgrade of credit ratings assigned to AngloGold Ashanti’s debt securities could increase future interest costs and adversely affect the availability of new financing.

An actual, anticipated or unexpected negative development of AngloGold Ashanti’s results of operations or cash flows, country risk, financial metrics, or an increase in net debt position could result in a deterioration of the company’s credit ratings. AngloGold Ashanti’s ratings are influenced inter alia, by the location of its domicile and its operations. S&P Global, Moody’s and Fitch have assigned sub-investment grade credit ratings to the Republic of South Africa and the South African sovereign ratings may have an adverse impact on the company’s credit ratings. Furthermore, AngloGold Ashanti operates in a number of jurisdictions which have a deteriorating credit quality. Any downgrade of AngloGold Ashanti Limited, or its operational jurisdictional rating, by any rating agency could increase the company’s cost of capital, reduce its investor base and have a material adverse effect on AngloGold Ashanti’s business, results of operations and financial condition.

The level of AngloGold Ashanti’s indebtedness could adversely impact its business.

As at 31 December 2021, AngloGold Ashanti had gross borrowings of $1.909 billion (2020: $1.931 billion and 2019: $2.033 billion), excluding all leases.

AngloGold Ashanti’s indebtedness could have a material adverse effect on its flexibility to conduct business. For example, the company may be required to use a large portion of its cash flow from operations to pay the principal and interest on its debt, which will reduce funds available to finance existing operations and the development of new organic growth opportunities and potential acquisitions. In addition, under the terms of the company’s borrowing facilities from its banks, AngloGold Ashanti is obliged to meet certain financial and other covenants. AngloGold Ashanti’s ability to continue to meet these covenants and to service its debt will depend on its future financial performance, which will be affected by its operating performance as well as by financial and other factors, including in particular the gold price, certain of which are beyond its control.

Should the cash flow from operations be insufficient, AngloGold Ashanti could breach its financial and other covenants. Covenant breaches, if interpreted as events of default under one or more debt agreements, could allow lenders to accelerate payment of such debt. Any such acceleration could result in the acceleration of indebtedness under other financial instruments. As a result, the company may be required to refinance all or part of the existing debt, use existing cash balances, issue additional equity or sell assets. However, the company may be unable to sell assets on reasonable or profitable terms as and when necessary. Additionally, AngloGold Ashanti cannot be sure that it will be able to refinance its debt on commercially reasonable terms, if at all.

AngloGold Ashanti’s ability to access the bank, public debt or equity capital markets on an efficient basis may be constrained by dislocation in the credit markets or capital and liquidity constraints in the banking, debt or equity markets at the time of issuance. The outbreak of the SARS-CoV-2 virus responsible for COVID-19, which reached pandemic proportions, and the recent geopolitical tensions and armed conflict between Russia and Ukraine led to disruption and volatility in financial and capital markets. Any prolonged dislocations in financial and capital markets could impact the company’s ability to refinance its debt on commercially reasonable terms, if at all, and could as a result have a material adverse effect on the company’s funding requirements and overall liquidity.

Any acquisition or acquisitions that AngloGold Ashanti may complete may expose the company to new geographic, political, legal, social, operating, financial and geological risks.

AngloGold Ashanti may pursue the acquisition of assets, properties or companies, which may include producing, development as well as advanced stage exploration assets or properties. Any such acquisition may change the scale of the company’s business and operations and may expose it to new geographic, geological, political, social, operating, financial, fiscal, legal, regulatory and contractual risks. For example, there may be a significant change in the legal, regulatory and fiscal framework applicable to the company after it has completed a relevant transaction; commodity prices may also significantly change after the company has committed to complete the transaction and established the purchase price or share exchange ratio; a material ore body may prove below expectations; AngloGold Ashanti may have more stringent criteria to recognise Mineral Resource than any acquired business, which may lead to an amount of Mineral Resource being recognised by the company that is lower than the amount established by such acquired business; AngloGold Ashanti may have difficulty integrating and assimilating the operations and personnel of any acquired companies, realising anticipated synergies and maximising the financial and strategic position of the combined enterprise, and maintaining uniform standards, policies and controls; the integration may disrupt the company’s ongoing business and its relationships with employees, suppliers and contractors; and the acquisition may divert management’s attention from AngloGold Ashanti’s day-to-day business. Furthermore, the company operates and acquires businesses in different countries, with different regulatory, business and operating cultures, which may exacerbate the risks described in this section. In addition, the acquired business may have undetected liabilities which may be significant.






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In the event that AngloGold Ashanti chooses to raise debt capital to finance any acquisition, its leverage will be increased. Should the company choose to use equity as consideration for an acquisition, existing shareholders may suffer dilution. Alternatively, the company may choose to finance any acquisition with its existing resources, which could decrease its ability to fund future capital expenditures.

AngloGold Ashanti may not be successful in overcoming these risks or any other problems encountered in connection with acquisitions. Failure by AngloGold Ashanti to implement its acquisition strategy or to integrate acquired businesses successfully could have material adverse effects on its growth, financial performance and results of operations.

The occurrence of events for which AngloGold Ashanti is not insured or for which its insurance is inadequate may adversely affect cash flows and overall profitability.

AngloGold Ashanti maintains insurance to protect against events which could have a significant adverse effect on its operations and profitability. This insurance is maintained in amounts that the company believes to be reasonable depending upon the circumstances surrounding each identified risk. However, damage and third-party claims arising from catastrophic events may exceed the limit of liability covered under these insurance policies. Furthermore, AngloGold Ashanti’s insurance does not cover all potential risks associated with its business and may exclude certain parts of its business. AngloGold Ashanti may elect not to insure certain risks due to the high premiums or for various other reasons, including an assessment that the risks are remote.

In order to reduce or maintain the cost of its insurance program, AngloGold Ashanti may in some instances retain a portion of the financial loss associated with an insurable event. These financial losses could be significant and could have an adverse effect on its financial condition.

Insurance for certain risks in particular, such as loss of title to mineral property, political risks in certain jurisdictions, environmental pollution, or other hazards resulting from exploration and production, is not generally available to mining companies on acceptable terms. The availability and cost of insurance coverage can vary considerably from year to year as a result of events beyond the company’s control or as a result of previous claims. This can result in higher premiums and periodically being unable to maintain the levels or types of insurance the company typically carries.

The failure to obtain adequate insurance could impair the company’s ability to continue to operate in the normal course of its business. This could adversely impact its cash flows, results of operations and financial condition.

Changes in the method of determining LIBOR, or the replacement of LIBOR with an alternative reference rate, may adversely affect interest expense related to AngloGold Ashanti’s credit facilities.

LIBOR, the London interbank offered rate, is the basic rate of interest used in lending between banks on the London interbank market and is widely used as a reference for setting the interest rate on loans globally. Some of AngloGold Ashanti’s revolving credit facilities bear interest rates in relation to LIBOR and the company’s future indebtedness may bear interest at floating rates of interest. In July 2017, the UK Financial Conduct Authority (“FCA”), which regulates LIBOR, announced that it intends to stop encouraging or requiring banks to submit LIBOR rates after 2021, and it is unclear if LIBOR will cease to exist or if new methods of calculating LIBOR will evolve. In March 2021, the ICE Benchmark Administration Limited, the administrator of LIBOR, extended the transition dates of certain LIBOR tenors (including all U.S. dollar LIBOR tenors other than one-week and two-month U.S. dollar LIBOR tenors) to 30 June 2023, after which LIBOR reference rates will cease to be provided. Despite this deferral, the LIBOR administrator has advised that no new contracts using U.S. dollar LIBOR should be entered into after 31 December 2021. The Federal Reserve Board and the Federal Reserve Bank of New York organised the Alternative Reference Rates Committee, which, on 29 July 2021, identified the Secured Overnight Financing Rate (“SOFR”) as its preferred alternative to U.S. dollar LIBOR in derivatives and other financial contracts. AngloGold Ashanti is not able to predict the effect that these developments or any discontinuance, modification or other reforms may have on LIBOR or if SOFR, or another alternative reference rate, attains market traction as a LIBOR replacement. If LIBOR ceases to exist or if the methods of calculating LIBOR change from their current form, interest rates on AngloGold Ashanti’s current indebtedness may increase and the company may need to renegotiate its revolving credit facilities to replace LIBOR with a new standard, both of which may have an adverse effect on the company’s liquidity, results of operations or financial condition. In addition, the issues that may lead to the discontinuation or unavailability of LIBOR may make one or more of the alternative methods impossible or impracticable to determine. Further, there can be no guarantee that a transition from LIBOR to an alternative will not result in financial market disruptions, significant increases in benchmark rates or borrowing costs to borrowers, any of which could have a material adverse effect on AngloGold Ashanti’s liquidity, results of operations or financial condition. Three of AngloGold Ashanti’s revolving credit facilities reference LIBOR and these facilities have not yet been transferred to an alternative benchmark interest rate. For further information, see “Item 18: Financial Statements—Note 24—Borrowings—IBOR linked borrowings”.










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Market Risks

The price of gold, AngloGold Ashanti’s principal product, and other commodity market price fluctuations could adversely affect the profitability of operations.

AngloGold Ashanti’s revenues are primarily derived from the sale of gold and, to a lesser extent, silver and sulphuric acid. The market prices for these commodities fluctuate significantly. These fluctuations are caused by numerous factors beyond the company’s control. For example, the market price of gold may change for a variety of reasons, including:
•speculative positions taken by investors or traders in gold;
•monetary policies announced or implemented by central banks, including the U.S. Federal Reserve, such as changes in interest rates;
•changes in the demand for gold as an investment;
•changes in the demand for gold used in jewellery and for other industrial uses, including as a result of prevailing economic conditions;
•changes in the supply of gold from production, divestment, scrap and hedging;
•financial market expectations regarding the rate of inflation;
•the strength of the U.S. dollar (the currency in which gold trades internationally) relative to other currencies;
•actual or anticipated sales or purchases of gold by central banks and the International Monetary Fund (“IMF”);
•gold hedging and de-hedging by gold producers;
•global or regional political or economic events; and
•the cost of gold production in major gold-producing countries.

The market price of gold has been and continues to be significantly volatile. During 2021, the market spot gold price traded from a low of $1,684 per ounce to a high of $1,949 per ounce. Between 1 January 2022 and 23 March 2022, the market spot gold price traded between a low of $1,779 per ounce and a high of $2,070 per ounce. On 23 March 2022, the afternoon price for gold on the London Bullion Market was $1,943 per ounce. In addition to protracted declines, the price of gold is also often subject to sharp, short-term changes. For example, the market spot gold price decreased from a high of $1,674 per ounce on 6 March 2020 to a low of $1,470 per ounce on 19 March 2020 in the midst of a wider market dislocation related to the COVID-19 pandemic and despite the alleged investor perception of gold as a relatively safe haven in periods of market volatility.

Any sharp or prolonged fluctuations in the price of gold can have a material adverse impact on the company’s profitability and financial condition.

In addition, any announcements or proposals by central banks, such as the U.S. Federal Reserve, or any of its board members or regional presidents or other similar officials in other major economies, may materially and adversely affect the price of gold and, as a result, AngloGold Ashanti’s financial condition and results of operations.

Events that affect the supply and demand of gold may have an impact on the price of gold. Demand for gold is also significantly impacted by trends in China and India, which account for the highest gold consumption worldwide. Government policies in these countries or other large gold-importing countries could adversely affect demand for, and consequently prices of, gold and, as a result, may adversely affect AngloGold Ashanti’s financial condition and results of operations. Furthermore, despite its generally favourable impact on the market price of gold, the COVID-19 pandemic has been a driving factor behind weakness in consumer demand for gold throughout 2020, culminating in a 14 percent decline in annual demand to 3,759.6 tonnes, the first time demand remained below 4,000.0 tonnes per year since 2009, according to the World Gold Council.

Furthermore, the shift in demand from physical gold to gold-related investments and speculative instruments may exacerbate the volatility of the gold price. Slower consumption of physical gold, resulting from a move toward gold-tracking investments or otherwise, may have an adverse impact on global demand for, and prices of, gold.

A sustained period of significant gold price volatility may adversely affect the company’s ability to evaluate the feasibility of undertaking new capital projects or the continuity of existing operations, to meet its operational targets or to make other long-term strategic decisions. Lower and more volatile gold prices, together with other factors, have led AngloGold Ashanti in the past and may lead AngloGold Ashanti in the future to alter its expansion and development strategy and consider ways to align its asset portfolio to take account of such expectations and trends. As a result, the company may decide to curtail or temporarily or permanently shut down certain of its exploration and production operations, which may be difficult and costly to effect. A sustained decrease in the price of gold could also have a material adverse effect on AngloGold Ashanti’s financial condition and results of operations, as it may be unable to quickly adjust its cost structure to reflect the reduced gold price environment. Mines with marginal headroom may be subject to decreases in value that are not temporary, which may result in impairment losses. See “—Certain factors may affect AngloGold Ashanti’s ability to support the carrying amount of its property, plant and equipment, intangible assets and goodwill on the balance sheet. If the carrying amount of its assets is not recoverable, AngloGold Ashanti may be required to recognise an impairment charge, which could be significant”. The market value of gold inventory may be reduced, and marginal stockpile and heap leach inventories may be written down to net realisable value or may not be processed further as it may not be economically viable at lower gold prices. In addition, AngloGold Ashanti is obliged to meet certain financial covenants under the terms of its borrowing facilities and its ability to continue to meet these covenants could be adversely affected by a further sustained decrease in the price of gold. The use of lower gold prices in Mineral Reserve



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estimates or life of mine plans from those prices used previously to determine Mineral Reserves or life of mine plans could also result in material impairments of the company’s investment in mining properties or a reduction in its Mineral Reserve estimates and corresponding restatements of its Mineral Reserve and increased amortisation, reclamation and closure charges. Whilst, from time to time, AngloGold Ashanti may enter, and has in the past entered, into gold price hedges on an ad hoc basis on a portion of its production, the company does not systematically do so. In addition, even when AngloGold Ashanti enters into gold price hedges, there is no certainty that such hedges will adequately protect the company against gold price volatility.

The price of silver has also experienced significant fluctuations in past years. During 2021, the price varied between a low of $21.41 per ounce and a high of $30 per ounce. On 23 March 2022, the price of silver was $25.06 per ounce.

Factors affecting the price of silver include investor demand, physical demand for silver bars, industrial and retail off-take, and silver coin minting.

If revenue from sales of gold, silver or sulphuric acid falls below their respective cost of production for an extended period, AngloGold Ashanti may experience losses and curtail or suspend some or all of its exploration projects and existing operations or sell underperforming assets. Declining commodities prices, including gold, copper and silver, may also force a reassessment of the feasibility of a particular project or projects, which could cause substantial delays or interrupt operations until the reassessment can be completed.

Foreign exchange fluctuations could have a material adverse effect on AngloGold Ashanti’s results of operations and financial condition.

Gold is principally a U.S. dollar-priced commodity and most of AngloGold Ashanti’s revenues are realised in, or linked to, U.S. dollars, whilst cost of sales are largely incurred in the local currency where the relevant operation is located. Given AngloGold Ashanti’s global operations and local foreign exchange regulations, some of its funds are held in local currencies, such as the Brazilian real, Argentinean peso, Australian dollar, Ghanaian cedi and the South African rand. The weakness of the U.S. dollar against local currencies results in higher cost of sales and other costs in U.S. dollar terms. Conversely, the strengthening of the U.S. dollar lowers local cost of sales and other costs in U.S. dollar terms.

Exchange rate movements may have a material impact on AngloGold Ashanti’s operating results. For example, based on average exchange rates in 2021, the company estimates that a one percent strengthening of all of the Brazilian real, Argentinean peso, Australian dollar, Ghanaian cedi and the South African rand against the U.S. dollar, other factors remaining equal, would have resulted in an increase in cost of sales and total cash costs per ounce of approximately $14 million and $6 per ounce, respectively. As a result of the sale of its remaining South African operations, AngloGold Ashanti’s exposure to fluctuations in the strength of the South African rand has been reduced.

The profitability of mining companies’ operations and the cash flows generated by these operations are significantly affected by fluctuations in input production prices, many of which are linked to the prices of oil and steel.

Fuel, energy and consumables, including diesel, heavy fuel oil, chemical reagents, explosives, tyres, steel and mining equipment used or consumed in mining operations form a significant part of the operating costs and capital expenditure of any mining company.

AngloGold Ashanti has no influence over the cost of these consumables, many of which are linked to some degree to the price of oil and steel. Whilst, from time to time, AngloGold Ashanti may implement, and has in the past implemented, financial derivatives intended to reduce exposure to changes in the oil price, such input cost protection strategies may not always be successful, and any of the company’s diesel consumption not covered by these derivatives will continue to be subject to market fluctuations.

The price of oil has fluctuated between $50.26 and $86 per barrel of Brent Crude in 2021. In recent weeks, the oil price has increased precipitously as a result of geopolitical tensions and the armed conflict between Russia and Ukraine and, as of 23 March 2022, the price of oil was at $132.90 per barrel of Brent Crude.

AngloGold Ashanti estimates that for each U.S. dollar per barrel rise or fall in the oil price, other factors remaining equal, cost of sales and total cash costs per ounce of all its operations change by approximately $2 million and $0.80 per ounce, respectively. The cost of sales and total cash costs per ounce of certain of the company’s mines, particularly Siguiri, Geita, Tropicana and Iduapriem are most sensitive to changes in the price of oil. Even when fuel prices are in decline, expected savings may be partly offset by increases in governments’ fixed fuel levies or the introduction of new levies.

Furthermore, the price of steel has also been volatile. Steel is used in the manufacture of most forms of fixed and mobile mining equipment, which is a relatively large contributor to the operating costs and capital expenditure of a mine. On 23 March 2022, the price of flat hot rolled coil (North American Domestic FOB) was $1,120.00per tonne.

Fluctuations in oil and steel prices have a significant impact on operating costs and capital expenditure estimates and, in the absence of other economic fluctuations, could result in significant changes in the total expenditure estimates for new mining



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projects or render certain projects non-viable, which could have a material adverse impact on the company’s results of operations and financial condition.

Fluctuations in the exchange rate of currencies may reduce the market value of AngloGold Ashanti’s securities, as well as the market value of any dividends or distributions paid by the company.

AngloGold Ashanti has historically declared all dividends in South African rands. As a result, exchange rate movements may have affected the Australian dollar, the Ghanaian cedi, the British pound and the U.S. dollar value of these dividends, as well as of any other distributions paid by the relevant depositary to holders of the company’s securities.

Furthermore, AngloGold Ashanti’s Memorandum of Incorporation allows for dividends and distributions to be declared in any currency at the discretion of the board of directors or the company’s shareholders at a general meeting. If, and to the extent that, AngloGold Ashanti opts to declare dividends and distributions in U.S. dollars, exchange rate movements will not affect the U.S. dollar value of any dividends or distributions. Nevertheless, the value of any dividend or distribution in Australian dollars, Ghanaian cedis, British pounds or South African rands will continue to be affected. If, and to the extent that, dividends and distributions are declared in South African rands in the future, exchange rate movements will continue to affect the Australian dollar, Ghanaian cedi, British pound and U.S. dollar value of these dividends and distributions. This may reduce the value of the company’s securities to investors. Additionally, the market value of AngloGold Ashanti’s securities as expressed in Australian dollars, Ghanaian cedis, British pounds, U.S. dollars and South African rands will continue to fluctuate in part as a result of foreign exchange fluctuations.

Global political and economic conditions could adversely affect the profitability of operations.

AngloGold Ashanti’s operations and performance depend significantly on worldwide economic conditions. Despite signs of economic recovery in certain geographic markets, global economic conditions remain fragile with significant uncertainty regarding recovery prospects, levels of recovery and long-term economic growth effects. Concerns remain regarding the evolution of the economic and security relationship, including trade arrangements, between the European Union (“EU”) and the United Kingdom, particularly following the withdrawal of the United Kingdom from the EU on 31 January 2020.

These conditions and other disruptions to international credit markets and financial systems caused a loss of investor confidence and resulted in widening credit spreads, a lack of price transparency, increased credit losses and tighter credit conditions. Any economic recovery may remain limited in geographic scope. A significant risk also remains that this recovery could be slow or that the global economy could quickly fall back into an even deeper and longer lasting recession or even a depression.

Global economic turmoil, or the expectation that economic turmoil could worsen, could have follow-on effects on AngloGold Ashanti’s business that include inflationary cost pressures, interest rate fluctuations and commodity market fluctuations. The COVID-19 pandemic resulted in disruption and volatility in global financial markets and capital markets and a significant decrease in global economic activity, which had an adverse effect on worldwide demand for gold and adversely affected the profitability of the company’s operations. Further deterioration in economic conditions, as a result of the COVID-19 pandemic or otherwise, could lead to a further or prolonged decline in demand for gold and negatively impact AngloGold Ashanti’s business, and any such negative impact may be material. See also “—The prevalence of occupational health diseases and other diseases and the potential costs and liabilities related thereto may have an adverse effect on the business and results of operations of AngloGold Ashanti”.

In addition, as a result of the geopolitical tensions and armed conflict between Russia and Ukraine due to the recent recognition by Russia of the independence of the self-proclaimed People’s Republics of Donetsk and Luhansk, in the Donbas region of Ukraine, followed by Russia’s military invasion of Ukraine, the governments of the United States, the EU, the United Kingdom and other jurisdictions announced the imposition of various sanctions against Russia. Despite the fact that AngloGold Ashanti has limited commercials interests in Russia, Ukraine and the current areas of conflict, these and any additional sanctions or export controls, as well as any counterresponses by Russia or other jurisdictions, have led to a sharp increase in oil and energy prices, which are important input costs for the company’s business. Furthermore, the invasion of Ukraine and the retaliatory measures that have been taken, and could be taken in the future, by the United States, the EU, the United Kingdom, NATO and other jurisdictions have created global security concerns that could result in a regional or global conflict and otherwise have a lasting impact on regional and global economies, any or all of which could adversely affect AngloGold Ashanti’s business.

Other factors that could negatively affect AngloGold Ashanti’s financial results and results of operations include, for example:
•the insolvency of key suppliers or contractors, which could result in contractual breaches and a supply chain breakdown;
•the insolvency of one or more joint venture partners, which could result in contractual breaches and disruptions at the operations of the company’s joint ventures;
•changes in other income and expense, which could vary materially from expectations, depending on gains or losses realised on the sale or exchange of financial instruments and impairment charges that may be incurred with respect to investments;
•a reduction in the availability of credit, which may make it more difficult for the company to obtain financing for its operations and capital expenditures or make that financing more costly;
•exposure to the liquidity and insolvency risks of the company’s lenders and customers; and
•impairment of operations.



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In addition to the potentially adverse impact on the profitability of the company’s operations, any deterioration in or increased uncertainty regarding global economic conditions may increase volatility or negatively impact the market value of AngloGold Ashanti’s securities.

Energy cost increases and power fluctuations and stoppages could adversely impact the AngloGold Ashanti’s results of operations and financial condition.

Increasing global demand for energy, concerns about nuclear power and the limited growth of new supply are impacting the price and supply of energy. The transition of emerging markets to higher energy consumption, actual and proposed pricing or taxation of carbon emissions, unrest and potential conflict in the Middle East as well as the recent armed conflict between Russia and Ukraine, among other factors, could result in increased demand or constrained supply and sharply escalating oil and energy prices. In particular, the recent hostilities between Russia and Ukraine triggered the imposition of various sanctions by the United States, the EU, the United Kingdom and other jurisdictions against Russia. These and any additional sanctions or export controls, as well as any countermeasures taken by Russia or other jurisdictions, have led to a sharp increase in oil and energy prices, given Russia’s role as a major global exporter of crude oil and natural gas, which could adversely impact the company’s results of operations and financial condition. This risk will be further exacerbated if the oil and energy prices remain at such an elevated level or increase further.

Electricity sourced from fossil fuel based generation is currently used for most of AngloGold Ashanti’s business and safety-critical operations, including cooling, hoisting and dewatering. Loss of power can therefore impact production and employee safety, and prolonged outages could lead to flooding of workings and ore sterilisation. AngloGold Ashanti’s mining operations are substantially dependent upon a mix of electrical power generated by local power utilities and by own power generation plants situated at some of its operations. The unreliability of local power utilities in some of the developing countries in which AngloGold Ashanti operates could have a material adverse effect on the company’s operations, as large amounts of power are required for ventilation, exploration, development, extraction, processing and other mining activities on the company’s properties. For example, in Tanzania, government policies increased pressure on companies to utilise the national grid, which could adversely impact the company’s mining operations in the country due to potential power quality issues.

Certain of AngloGold Ashanti’s mining operations depend on supplies of fuel delivered by road which have been disrupted in the past and may be disrupted again in the future. Any such disruptions could negatively impact operating costs and cashflows from these operations.

Concerns about the integrity or reliability of the London Bullion Market Association (LBMA)LBMA Gold Price Benchmark could adversely affect investor interest in gold and confidence in the gold market.


Historically, the gold market relied on prices and trades made relative to a benchmark known as the London Gold Fix (Fix)(“Fix”), set by a group of five fixing banks that matched buyers and sell orders. Following a series of allegations regarding the possible manipulation of the Fix by fixing banks, U.S., German and UK regulators undertook a review of the fixing process. While the U.S. Commodity Futures Trading Commission and the German BaFin dismissed allegations of manipulation in 2013 and 2015, respectively, in 2014 Deutsche Bank withdrew from the fixing panels and the UK Financial Conduct Authority (FCA) fined one of the fixing banks. The FCA identified systems and control failures and conflicts of interest in relation to gold fixing over the nine years to 2013 and one instance of gold price manipulation in 2012. Separately, several lawsuits have been filed against fixing banks alleging that they have colluded to manipulate the gold benchmark price, including class actions instituted in the United States in 2014 and Canada in 2015. Some of these class actions were settled in the United States in 2016.



In 2015, the Fix was replaced by the London Bullion Market Association (LBMA)LBMA Gold Price Benchmark, which is run and managed by the Intercontinental Exchange (ICE)(“ICE”). The ICE is independent of the gold market as it does not conduct any trading of gold.





Whilst AngloGold Ashanti had no role in the operation of the Fix during the period under review and has no responsibility for the conduct of the market makers in the gold market, the gold market could still be affected if the integrity of the LBMA Gold Price Benchmark is undermined as a result of ongoing lawsuits, resulting in reduced demand for the company’s gold, greater volatility in gold prices and less liquidity in the gold market. Since 2015, when AngloGold Ashanti joined the new oversight committee for the LBMA Gold Price Benchmark which is regulated by the FCA, the volumes being traded through the benchmarks have steadily increased, as have the number of direct participants. Due to some issues around the LBMA Silver Price Benchmark, ICE, under the auspices of the LBMA Gold Price Benchmark, was asked to assume the duties of managing the Silver Benchmark. As such, the LBMA Gold Price Oversight Committee has now become the LBMA Precious Metals Oversight Committee. If further allegations are made against the LBMA Gold Price Benchmark in the future, AngloGold Ashanti could be implicated more directly, which may have an adverse effect on its reputation.


DiversityInflation may have a material adverse effect on results of operations.

Many of AngloGold Ashanti’s operations are located in interpretationcountries that have experienced high rates of inflation during certain periods and application of accounting literatureinflationary pressures have been exacerbated by recent increases in energy costs. It is possible that significantly higher future inflation in the mining industrycountries in which the company operates may impact reported financial results.

The mining industry has limited industry-specific accounting literature.  Asresult in an increase in operational costs in local currencies (without a result, there is diverse interpretation and applicationconcurrent devaluation of accounting literaturethe local currency of operations against the U.S. dollar or an increase in the U.S. dollar price of gold). This could have a material adverse effect on mining-specific issues.  AngloGold Ashanti, for example, capitalises drilling and costs related to defining and delineating a residual mineral deposit that has not been classified as a “Proven and Probable Ore Reserve” at a development project or production stage mine.  Some companies may, however, expense such costs.

As and when this diverse interpretation and application is addressed, the company’s reported results of operations and financial condition. Significantly higher and sustained inflation, with a consequent increase in operational costs, could be adversely impacted should the adopted interpretation differ from the position it currently follows.

For example, International Financial Reporting Standard (IFRS) 16 Leases was issued in January 2016 and, in comparison to its predecessor International Accounting Standard (IAS) 17 makes significant changes to the accounting treatment for leasing transactions for lessees. IFRS 16 is applicable for all financial years commencing on or after 1 January 2019, with options for full or modified retrospective application.

The approach of IAS 17 was to distinguish between two types of leases. Leases which transfer substantially all the risks and rewards of ownership of an asset were classified as finance leases. All other leases were classified as operating leases. The lease classification set out in IAS 17 was subjective and allowed the preparers of lessee’s financial statements to conclude in certain instances that leases should be classified as operating rather than as finance leases.

Under IFRS 16, however, a lessee is required to recognise right of use assets and lease liabilities, including those of operating leases.The requirements of IFRS 16 may have significant impacts on key accounting ratios of the company. The greater recognition of leased assets and lease liabilities on the statement of financial position will reduce return on capital employed and increase gearing. Initial measures of profit are likely to be reduced, asresult in the early yearsrationalisation (including closure) of higher-cost mines or projects. Furthermore, when inflation reaches highly inflationary levels in a leasecountry in which the combination of depreciation of the right of use assetcompany operates, social unrest and the finance charge associated with the lease liability will exceed the lease rentals (which have historically been charged on a straight-line basis). This change couldunion activity may increase, which in turn may have an adverse impacteffect on AngloGold Ashanti's borrowing capacity or credit ratingsAshanti’s operational costs and results of operation in that country.




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Of particular concern is the increasing inflation rate in Argentina which was recorded at 51.0 percent in 2021, 36.1 percent in 2020, 53.8 percent in 2019, 47.6 percent in 2018 and 24.8 percent in 2017. Hyper-inflationary reporting will be reflected in the future.financial statements of the company’s local subsidiaries. However, hyper-inflationary movements are not reflected in the group’s consolidated financial statements as AngloGold Ashanti’s local Argentinean subsidiary is deemed to have a U.S. dollar functional currency.


Other Regulatory and Legal Risks

Failure to comply with laws, regulations, standards and contractual obligations, breaches in governance processes or fraud, bribery and corruption may lead to regulatory penalties, loss of licences or permits, negative effects on AngloGold Ashanti’s reported financial results, and adversely affect its reputation.


AngloGold Ashanti’s operations must comply with the U.S. Foreign Corrupt Practices Act and similar anti-corruption and anti-bribery laws of the jurisdictions in which AngloGold Ashanti operates. There has been a substantial increase in the global enforcement of these laws and an increased focus on the actions of mining companies. Although AngloGold Ashanti has a compliance programme in place designed to reduce the likelihood of violationsAny violation of such laws any violation could result in significant criminal or civil sanctions. Conversely, in certain circumstances, strict compliance with anti-bribery laws may conflict with certain local customs and practices. Since the companyAngloGold Ashanti operates globally in multiple jurisdictions, including those with less developed political and regulatory environments, and within numerous and complex frameworks, its governance and compliance processes may not prevent potential breaches of law, accounting principles or other governance or customary practices.


AngloGold Ashanti’s Code of Business Principles and Ethics and Policy on Anti-Bribery and Anti-Corruption, amongstamong other policies, standards and guidance, and training thereon may not prevent instances of unethical or unlawful behaviour, including bribery or corruption. They also may not guarantee compliance with legal and regulatory requirements and may fail to enable management to detect breaches thereof.


Sanctions for failure by the company or others acting on its behalf to comply with these laws, regulations, standards and contractual obligations could include fines, penalties, resignation or removal of officers, imprisonment of officers, litigation, and loss of operating licences or permits, suspensions of operations and negative effects on AngloGold Ashanti’s reported financial results and may damage its reputation. Such sanctions could have a material adverse impact on the company’s financial condition and results of operations.


Breaches in cybersecurity and violations of data protection laws may adversely impact AngloGold Ashanti’s business.

AngloGold Ashanti maintains global information technology (IT) and communication networks and applications to support its business activities. AngloGold Ashanti outsources several information technology functions and applications to third party vendors and these engagements may have an impact on the overall cybersecurity position of the company. The primary company systems managed by third party vendors include, but are not limited to, cloud infrastructure, data centre management, server / personal computing support, enterprise resource programs, email and digital documents  and the Cyber Security Operations Centre. AngloGold Ashanti  has implemented an Information Security Management System (ISMS) to safeguard the company's IT environment. The ISMS is  a framework for the policies, standards and procedures adopted to comply with ISO/IEC 27001:2005, and manages identified cybersecurity related risks.

The company must continuously monitor the solutions implemented to support its global information technology and communication networks and applications to maintain a suitable and well-managed environment. While the security of the company's technical platforms and information systems will be regularly reviewed as part of the compliance initiatives and will be measured against the appropriate security implementation standards and documented security controls, there can be no assurance that these efforts will always be successful.

The sophistication and magnitude of cybersecurity incidents are increasing and include malicious software, attempts to gain unauthorised access to data and other electronic security and protected information breaches that could lead to production downtimes, operational delays, the compromising of confidential or otherwise protected information, destruction or corruption of data, other manipulation or improper use of AngloGold Ashanti’s systems and networks or financial losses from remedial actions. For example, in 2017, the business experienced a cybersecurity attack, that compromised a senior manager's email account over a period of approximately four months. While AngloGold Ashanti did not incur monetary loss or experience reputational damage due to this breach, the case has been reported to the Australian police who investigated the matter and a full forensic report was issued by the Australian Federal Police Forensics department.

In August 2018, the Cyber Security Operation Center (CSOC), which is outsourced to a specialist cyber intelligence center, came online. All alerts relating to cybersecurity events will be issued by the CSOC for the AngloGold Ashanti cyber team to investigate. The company did not suffer any material cyber security breach, as of yet.

Information technology security processes may not prevent future malicious actions, denial-of-service attacks, or fraud, which could result in the corruption of operating systems, theft of commercially sensitive data, misappropriation of funds and business and operational disruption.  AngloGold Ashanti's insurance program includes limited coverage for cyber-related crimes and incidents as part of the global insurance program, and material system breaches and failures could result in significant interruptions that could adversely affect AngloGold Ashanti’s operating results and reputation.

The interpretation and application of consumer and data protection laws in South Africa, the United States and elsewhere are evolving. It is possible that these laws may be interpreted and applied in a manner that is inconsistent with AngloGold Ashanti’s data practices. Complying with these various laws is essential and could cause the company to incur substantial costs or require it to change its business practices in a manner adverse to its business.

For example, on 25 May 2018, the General Data Protection Regulation (GDPR) came into force. The GDPR is a European Union (EU) wide framework for the protection of personal data of EU based individuals. The GDPR enhances existing legal requirements through several new rules, including stronger rights for data subjects and mandatory data breach notification requirements, and increases penalties for non-compliance. Failure to comply with the GDPR may lead to a fine of up to four percent of a company’s worldwide turnover or up to € 20 million. Also, GDPR has a scope that extends beyond the borders of the EU and does not only affect EU operations.

Risks related to AngloGold Ashanti’s results of operations and financial condition as a result of factors specific to the company and its operations

AngloGold Ashanti’s Ore Reserve, deposits and mining operations are located in countries that face instability and security risks that may adversely affect both the terms of its mining concessions, as well as its ability to conduct operations in certain countries.

Some of AngloGold Ashanti’s mineral deposits and mining and exploration operations are located in countries that are experiencing political and economic instability and other uncertainty.

Certain of the countries in which AngloGold Ashanti has mineral deposits or mining or exploration operations, including the DRC, Mali, Guinea, Ghana, Tanzania, South Africa, Colombia and Brazil, have in the past experienced, and in certain cases continue to experience, a difficult security environment.  In particular, various illegal groups active in regions in which the company is present may pose a credible threat of organised crime, military repression, terrorism, civil unrest and disturbances, sabotage, extortion and kidnapping, which could have an adverse effect on its operations in these and other regions.


For example, Mali continues to experience a difficult security environment since the military coup in March 2012.  The situation in Mali remains of heightened concern as a result of the instability in northern Mali, which increasingly is spreading further south and has become more concentrated in Central Mali over the last couple of years. In addition, the presidential and parliamentary elections during 2018 heightened political tensions and instability in the country.

The eastern part of the DRC also continues to experience tension consistent with the cycles of unrest experienced since the late 2000s.  Fighting has caused instability in the area and could expand or intensify, particularly in response to certain political actions. The 2018 general election in the DRC, delayed due to administrative issues, occurred on 30 December 2018. On 10 January 2019, Félix Tshisekedi, leader of the Union for Democracy and Social Progress (UDPS) opposition party, was declared winner of the election and sworn in as president on 24 January 2019. Even though the 2018 elections were disputed and chaotic, these elections have been relatively peaceful compared to the 2006 and 2011 elections which were marred by violence.

In 2012, AngloGold Ashanti Colombia’s (AGAC) assets and employees were the targets of direct hostile attacks around the La Colosa project’s area of influence.  Although a peace agreement with the Revolutionary Armed Forces of Colombia-People’s Army (FARC) was brokered in 2016, the risk of rogue factions joining criminal gangs remains a threat and other similar attacks could adversely affect the company’s activities in Colombia in the future. In 2018, neighbouring mining companies have experienced violent attacks on their staff, which indicates a heightened security risk.

Attacks on mining companies (for example, attacks targeting gold rooms where smelted gold bars are stored before being transported to other facilities) have been occurring in Brazil and South Africa over the last couple of years and the risk of future attacks remains a threat and could adversely affect the company’s activities in Brazil and South Africa.

From 2009 to 2015, the company recorded an almost four-fold increase in the instances of injury to security personnel, including members of AngloGold Ashanti’s internal security, private security companies and public security forces in certain jurisdictions. The injury rate increase was caused by a rise in the number and severity of security incidents resulting from increased illegal and artisanal mining due to a steady migration of people into the applicable areas and an increase in the level of organisation and funding of criminal activity around some of the company’s Continental African operations. Although this trend stabilised from 2016 onwards, intrusions onto the company’s tenement and operational areas, including illegal mining-related activities in particular, continue to be a challenge.  The most significant security challenges remain in Tanzania, Guinea, Mali and Ghana, in areas where there is endemic poverty and high levels of unemployment. See “—Illegal and artisanal mining occurs on AngloGold Ashanti’s properties, which can disrupt the company’s business and expose the company to liability”. If the security environment surrounding the company’s operations that are most exposed to these challenges deteriorates, employee, third-party and community member injuries and fatalities could also increase.  Any such increase could disrupt the company’s operations in certain mines and adversely affect its reputation, results of operations and financial condition.

In some instances, risk assessments categorise threats as serious enough to require resorting to public security forces, such as national police or military units on a near-permanent basis. For example, in 2018, the withdrawal of the Gendarmes, Malian paramilitary units, from the closed Yatela mine in Mali, resulted in a mass invasion of illegal miners into the dormant pit, resulting in numerous fatalities amongst such illegal miners due to landslides. In the event that continued invasions in any of the company’s countries of operations compromise the company’s security or business principles, AngloGold Ashanti may withdraw from any such countries on a temporary or permanent basis.  This could have a material adverse impact on AngloGold Ashanti’s results of operations and financial condition.

Furthermore, the company continues to experience strained relationships with certain of its host communities.  AngloGold Ashanti operates in several regions where poverty, unemployment and the lack of access to alternative livelihoods mean that the creation and distribution of economic benefit from mining operations is a significant area of focus for community and government. AngloGold Ashanti has also been publicly accused of inadequate resettlement practices at its Siguiri operation in Guinea by local and international non-governmental organisations (NGO), which poses reputational risk. The company has been working with members of the local community, the International Finance Corporation (IFC) and Nedbank (a South African bank) to try to resolve these issues through a collaborative approach using the dispute-resolution process of the IFC’s Office of the Compliance Advisor Ombudsman.

Additionally, AngloGold Ashanti has been involved in several disputes with the Merafong City Local Municipality (Municipality) in South Africa over immovable property valuations as well as water services surcharges. These matters have drawn public attention and have been discussed with South Africa's Minister of Mineral Resources. The property valuation objections were dismissed and AngloGold Ashanti appealed the decision. The appeal went before a Valuation Appeal Board (VAB) during the course of 2014.  The decision of the VAB was given on 20 November 2014 and found in favour of the company. Accordingly, AngloGold Ashanti became entitled to a refund of all overpayments since 1 July 2012, which amounts to approximately ZAR 49 million, from the Municipality. The Municipality is taking the decision of the VAB on review and the company lodged a counterclaim for the repayment of the sum of approximately ZAR 49 million plus interest, which is still pending. Following the publication by the Municipality of a new general valuation roll reflecting the immovable properties as well as the buildings and infrastructure required for mining purposes on 7 March 2019, the company is in the process of preparing objections against this new general valuation roll. The water services surcharges matter relates to a dispute started in 2004 regarding the surcharges charged by the Municipality for potable water provided to the company’s West Wits operations, for both industrial and domestic water. In 2005, the relevant minister at the time decided that the

Municipality could only levy a surcharge on water used for domestic purposes, and no surcharge could be levied on water for industrial use. The dispute is currently pending before the High Court to determine the lawfulness of the minister’s decision.
In addition, infectious diseases are also a threat to the stability of some of the countries in which the company operates, where limited local health infrastructure weakens governments’ ability to manage and contain outbreaks effectively.  For example, during August 2014, cases of the Ebola virus were reported in Siguiri, which is located near AngloGold Ashanti’s Siguiri mine in Guinea.  The company implemented certain restrictions on travel to and from the Siguiri mine as a precaution. As the Ebola virus caused significant disruptions in the company’s exploration activities, particularly relating to field mapping and geophysics, AngloGold Ashanti also suspended its brownfields work programme and greenfields field work in the middle of 2014. Although the situation has normalised in Guinea, the DRC experienced an outbreak of the Ebola virus in 2018, which is being monitored continuously. The company may consider further safety measures which may negatively impact its operations or its exploration projects in neighbouring areas in countries that may be affected by infectious diseases.

AngloGold Ashanti’s mineral deposits, Ore Reserve, and mining operations are located in countries where political, tax and economic laws and policies may change rapidly and unpredictably and such changes and policies may adversely affect both the terms of its mining concessions, as well as its ability to conduct operations in certain countries.

Past experience demonstrates that political, tax and economic laws and policies in countries in which AngloGold Ashanti operates can change rapidly. Examples include the 2012 coup d’état and subsequent fighting in Mali, the foreign currency regulations that were imposed from 2011 to 2015 in Argentina and the ban on gold ore exports announced by the Tanzanian government in March 2017. As mining assets are fixed, the adverse impacts of such changes may be unavoidable and immediate.

Any existing and new mining, exploration operations and projects that the company carries out are subject to various national and local laws, policies and regulations governing the ownership, prospecting, development and mining of Ore Reserve, taxation and royalties, exchange controls, import and export duties and restrictions, investment approvals, employee and social community relations and other matters.

In many of the countries in which AngloGold Ashanti operates, there is an ongoing focus by governments seeking greater economic benefit and increased financial and social benefits from extractive industries and mining in particular. This entails the review of mining codes and stability agreements, which were in many cases designed under particular economic conditions, and the formulation or amendment of laws, policies and regulations relating to issues such as mineral rights and asset ownership, royalties, taxation and taxation disputes, “windfall” or “super” taxation, non-recovery of taxation refunds, import and export duties, currency transfers, restrictions on foreign currency holdings and repatriation of earnings. The laws, policies and regulations are increasingly uncertain, changing and generally require progressively higher payments to governments, notably in the form of increased royalties and taxes, mandated beneficiation, export levies and increasing or retaining state or national ownership of resources. In particular, changes to the fiscal terms governing AngloGold Ashanti’s operations may have a material adverse impact on the company’s results of operations or financial condition, threaten the viability of existing operations, and discourage future investments in certain jurisdictions. This may therefore have an adverse impact on the company’s ability to access new assets and potentially reduce future growth opportunities.

For example, in July 2017, the government of Tanzania enacted new legislation which purports to make a number of changes to the operating environment for Tanzania’s extractive industries, including its mining sector. These changes include, among other things: the right for the government of Tanzania to renegotiate existing mining development agreements at its discretion; the provision to the government of Tanzania of a non-dilutable, free-carried interest of no less than 16 percent in all mining projects; the right for the government of Tanzania to acquire up to 50 percent of any mining asset commensurate with the value of tax benefits provided to the owner of that asset by the government of Tanzania; removal of the refund of input VAT incurred; an increase in the rate of revenue royalties from four percent to six percent; requirements for local beneficiation and procurement; and constraints on the operation of off-shore bank accounts. AngloGold Ashanti is seeking a constructive dialogue with the government of Tanzania regarding this legislation and its impact on existing mining agreements. As a precautionary step to safeguard its interests, AngloGold Ashanti's subsidiaries have commenced international arbitration proceedings against the government of Tanzania in connection with the enactment of this legislation, as first announced in July 2017. The arbitration proceedings are currently suspended until July 2019. See “Item 4B: Business Overview–The Regulatory Environment Enabling AngloGold Ashanti to Mine” and“Item 8A: Legal Proceedings-Tanzania”. There can be no assurance that the company will be successful in safeguarding its interests in the arbitration action and these changes and any future amendments to the mining legislation could have further adverse effects on the company’s financial condition and results of operations.

For example, in September 2011, a new mining code was enacted in Guinea. The new Guinean mining code significantly increased the share of state ownership in the mining industry, extending a 15 percent share of future mining projects to the Guinean government, without financial compensation. The Guinean government also had the option to purchase up to an additional 20 percent of each project. However, the new Guinean mining code was suspended in October 2012 due to unfavourable reception and was subsequently amended in April 2013. The new legislation provided that existing mining conventions would be amended through addenda which would contain various provisions, including provisions relating to taxation, state equity participation in mining companies and other matters. AngloGold Ashanti’s new mining convention came into effect in January 2017 and includes, among other terms, a five percent royalty on gold and a 15 percent free-carried, non-contributory interest in the Siguiri mine for the Republic of Guinea. See “Item 4B: Business Overview-The Regulatory Environment Enabling AngloGold Ashanti to Mine”. Any future

amendments to the Guinean mining code or attempts to renegotiate the company's existing mining convention could have further adverse effects on the company’s financial condition and results of operations.

In addition, in 2012, the government of Ghana amended its fiscal mining regime, increasing its corporate taxation to 35 percent and royalty rates to five percent. In addition, AngloGold Ashanti (Ghana) Limited (AGAG) negotiated a new Development Agreement (DA) and Tax Concession Agreement (TCA) in relation to the Obuasi mine with the government of Ghana. The DA and TCA, which govern the redevelopment of the Obuasi mine, were ratified by Ghana’s Parliament in June 2018. As a result of the ratification of these agreements, the 2004 Ghana Stability Agreement ceased to apply to the Obuasi mine, but will continue to apply to the Iduapriem mine until it expires in April 2019. Preliminary steps have been undertaken by AGAG in order to negotiate a new stability agreement for the Iduapriem mine. See“Item 4B: Business Overview–The Regulatory Environment Enabling AngloGold Ashanti to Mine”. Any future amendments to the Ghanaian mining regime, negotiation of new stability agreements, or attempts or failures to renegotiate existing stability agreements on the same favourable conditions or at all may have a material adverse effect on the company’s results of operations or financial condition.

Furthermore, in July 2012, Australia’s Minerals Resource Rent Tax (MRRT) came into effect after the legislation was passed in March 2012. The MRRT, which was repealed in 2014, applied only to the bulk commodities of coal and iron ore, and replaced the previously proposed Resource Super Profits Tax (RSPT), which covered all minerals. The Australian federal government did not include gold and uranium in the final MRRT. However, should Australia consider reintroducing the RSPT, or if similar “super profit” taxes were to be introduced and implemented in any other country in which AngloGold Ashanti operates, the company’s results of operations and financial condition could be materially adversely affected.

Further, in August 2018, the South African Minister of Mineral Resources announced that the MPRDA Amendment Bill of 2013 would be withdrawn. The proposed amendments contained in that bill, amongst other things, empowered the South African Minister of Mineral Resources to set developmental pricing conditions for certain minerals for beneficiation purposes, impose export permits on designated minerals and give the South African government an open-ended free-carried interest and state participation. See “Item 4B: Business Overview–The Regulatory Environment Enabling AngloGold Ashanti to Mine”. It is unclear whether the South African government will seek to introduce any of those amendments in a new bill, and such changes could have a material adverse effect on the company’s financial condition and results of operations.

Furthermore, in 2013 and 2017, the Brazilian government proposed changes to Brazil’s mining legislation that were discussed in the National Congress. The proposals could make the rules governing access to mining titles more discretionary and could shorten the duration of exploitation rights. As of the end of 2018, most of the changes in Brazil’s mining legislation initially suggested were not approved, however, such legislation may be reintroduced in the same or similar form in the future. Following the November 2015 tailings dam collapse in the State of Minas Gerais on the mining properties of companies not affiliated with AngloGold Ashanti, the Brazilian government has also considered including tougher requirements related to tailings dams (e.g., mandatory insurance in case of environmental catastrophe). In addition, as a result of another tailings dams failure in the same state in January 2019, the Minas Gerais government suspended all environmental licensing proceedings connected with the regularisation of tailings dams in the state, regardless of the construction method, until the approval of new rules regulating the environmental licensing of such activities, and ordered the demobilisation of all tailings dams that have used the upstream heightening method, and required impacted companies to present several plans. As a result of the incident, the federal government is also undertaking action to review relevant mining legislation. See “Item 4B: Business Overview–The Regulatory Environment Enabling AngloGold Ashanti to Mine”. Any amendments to existing legislation may have a material adverse effect on the company’s financial condition and results of operations.

In addition, some of AngloGold Ashanti’s mineral deposits and mining and exploration operations are located in countries that are experiencing social and political instability as well as economic uncertainty. In these countries, there is a risk that political influence may delay or hinder strategic imperatives for cost rationalisation especially in the areas of procurement and labour reductions. In addition, allegations of corruption in Brazil, the DRC, South Africa and Guinea against top political and industry leaders have increased political instability and distrust. Efforts at political and economic reforms in Brazil and such other countries may lead to increased instability. Furthermore, in South Africa, a general election is expected to be held on 8 May 2019 which may be accompanied by social, political and economic uncertainty and instability, and in the DRC, the outcome of the 2018 general election may lead to increased instability. The high levels of unemployment, poverty and inequality remain in each of these countries, further increasing the risk of social instability that will continue to negatively impact their economies, business and the mining industry.

Mining is a long-term activity and assets may be located in jurisdictions with elevated risk. Political instability and the resulting unstable business environment in such countries in which companies operate may discourage future investment in those jurisdictions, and may have an adverse impact on the company’s ability to access new assets, potentially reducing growth opportunities.

AngloGold Ashanti is subject to an uncertain tax environment. Increased taxes are expected in most countries of operation. Changes in tax laws could result in higher tax expense and payments and could materially impact AngloGold Ashanti’s tax receivables and liabilities as well as deferred tax assets and deferred tax liabilities. In addition, the uncertain tax environment in some regions could limit AngloGold Ashanti’s ability to enforce its rights. As a global company, AngloGold Ashanti conducts its business in countries subject to complex tax rules, which may be interpreted in different ways. Further interpretations or developments of tax regimes may affect the company’s tax liability, return on investments and business operations. AngloGold Ashanti is regularly examined by tax authorities in its various jurisdictions of operation.

For example, in July 2017, AngloGold Ashanti's subsidiaries in Tanzania received a demand for payment of inspection fees on all of their gold shipments and a demand for payment of alleged unpaid service levies. Without payment of the inspection fee, AngloGold Ashanti is not allowed to make any exports. In September 2017, the company received a letter from the Tanzania Revenue Authority (TRA) prohibiting it from claiming input tax credit with effect from July 2017 and AngloGold Ashanti estimates the impact of this change to input tax could result in an increase in annual costs of $50 million. AngloGold Ashantsfti has agreed to pay the inspection fees on a ‘without prejudice’ basis, has filed an objection with the TRA and is seeking to resolve all of these issues in the ongoing arbitration proceedings in Tanzania described above. There can be no assurance that these proceedings will be successful and the outcomes may have a material adverse impact on the company’s results of operations and financial condition.

In Guinea, Mali, DRC and Tanzania, AngloGold Ashanti is due refunds of input tax and fuel duties which have remained outstanding for periods longer than those provided for in the respective statutes. For example, AngloGold Ashanti calculates that overdue recoverable value added tax, fuel duties and appeal deposits of $145 million are owed to AngloGold Ashanti and held by the Tanzanian government and it is not certain when, if ever, AngloGold Ashanti will be refunded this amount. Similarly, it is not certain when or whether AngloGold Ashanti will be refunded all amounts due from any other government.

The countries in which the company operates may also introduce export restrictions, exchange controls, impose restrictions to source materials and services locally, or impose other similar restrictions that hinder foreign companies’ operations within such countries.  For example, in March 2017, the Tanzanian government announced an immediate ban on gold, silver, copper and nickel ore exports, in an attempt to ensure that mineral value-addition activities would be carried out in-country. This regulatory change does not currently impact the Geita mine or Tanzanian operations as the company does not export unrefined or refractory ore out of Tanzania.

Additionally, from 2011 to 2015, the Argentinian government introduced stricter exchange controls and related protracted approval processes which limited the company’s ability to repatriate dividends from its Argentinian subsidiaries. In October 2011, the Argentinian government decreed that mining, oil and energy companies must repatriate export earnings and additionally, the purchase of U.S. dollars required authorisation from the Argentinian central bank and the purpose for which the currency would be used had to be stated. In May 2012, the Argentine Mining Secretariat issued new regulations requiring mining companies in Argentina to boost their domestic purchases of equipment and services and mining companies were required to resort exclusively to locally established suppliers for their export-related shipping and logistics operations. Furthermore, in September 2018, export duties were re-imposed by the Argentinian government. The export duty is set at 12 percent with a cap so that it does not exceed the amount of ARS 4 pesos per US dollar exported. Negotiations are ongoing to limit the negative effects on Cerro Vanguardia S.A. (CVSA) as these export duties affect the tax stability guarantee acquired by CVSA in 1996 considering at that time export duties were zero percent. Increased royalties, increased socio-politically tensions and hyper-inflation over the last few months have greatly increased the country risk which in turn has lowered the potential future earnings of the company's investment in CVSA. Political uncertainty around the upcoming presidential elections in 2019 further exacerbates the risk. The economic contraction for 2018 ended at two percent and a further recession is expected in 2019. While the current Argentinian government, elected in November 2015, started a process to ease these controls and return to an open economy and free market, not all restrictions had been lifted as of March 2019.

If, in one or more of the countries in which it operates, AngloGold Ashanti were not able to obtain or maintain necessary permits, authorisations or agreements to implement planned projects or continue its operations under conditions or within timeframes that make such plans and operations economically viable, or if the applicable legal, ownership, fiscal (including all royalties and duties), exchange control, employment, environmental and social laws or regimes change materially, or if the governing political authorities change resulting in amendments to such laws and regimes, this could have a material adverse effect on AngloGold Ashanti’s operating results, financial condition, and, in extreme situations, on the viability of an operation. The risk is particularly acute in South Africa. See “—AngloGold Ashanti’s mining rights in the countries in which it operates could be altered, suspended or cancelled for a variety of reasons, including breaches in its obligations in respect of such mining rights” and “Item 4B: Business Overview —The Regulatory Environment Enabling AngloGold Ashanti to Mine”.

AngloGold Ashanti’s mining rights in the countries in which it operates could be altered, suspended or cancelled for a variety of reasons, including breaches in its obligations in respect of such mining rights.

AngloGold Ashanti’s right to own and exploit Ore Reserve and deposits is governed by the laws and regulations of the jurisdictions in which the mineral properties are located. See “Item 4B: Business Overview—The Regulatory Environment Enabling AngloGold Ashanti to Mine”. Currently, a significant portion of the company’s Ore Reserve and deposits are located in countries where mining rights could be suspended or cancelled should it breach its obligations in respect of the acquisition and exploitation of these rights.

In each of the countries in which AngloGold Ashanti operates, the formulation or implementation of government policies on certain issues may be unpredictable. This may include changes in laws relating to mineral rights, ownership of mining assets and the right to prospect and mine, and in extreme cases, nationalisation, expropriation or nullification of existing concessions, licenses, permits, agreements and contracts.

Any existing and new mining and exploration operations and projects are subject to various national and local laws, policies and regulations governing the ownership and the right to prospect or mine or develop proposed projects. For more details on the risks surrounding ownership of mining assets, see “—Title to AngloGold Ashanti’s properties may be uncertain and subject to challenge”

and “—AngloGold Ashanti’s mineral deposits, Ore Reserve, and mining operations are located in countries where political, tax and economic laws and policies may change rapidly and unpredictably and such changes and policies may adversely affect both the terms of its mining concessions, as well as its ability to conduct operations in certain countries”.

Project implementation delays could result in licences not being renewed and the loss of mining rights. Some of AngloGold Ashanti’s mining concessions, authorisations, licences and permits are subject to expiry, limitations on renewal and various other risks and uncertainties. For example, in June 2018, a new mining code went into effect in the DRC. The new DRC mining code made a number of changes to the operating environment for the DRC's extractive industries, including those in its mining and oil and gas sectors. This reform could have a material adverse impact on the protections enjoyed by AngloGold Ashanti’s projects in the DRC. Among other things, the new DRC mining code increases AngloGold Ashanti’s tax burden by widening the basis for and increasing the rate of the mining royalties’ rates (the royalty rate applicable to gold increased from 2.5 percent to 3.5 percent). In addition, it increases the DRC government’s free-carried interest from five percent to 10 percent, with an additional five percent being granted to the DRC government upon each renewal of the exploitation permit, and a requirement that at least 10 percent of the share capital of mining companies be held by DRC individuals. AngloGold Ashanti and other major mining companies are seeking constructive conversation with a working group of the government of the DRC to negotiate transitional agreements, mining regulations, additional royalties and changes to other taxes regarding the mining code, but there can be no assurances that the company's efforts in these discussions will be successful.
In addition, any dispute with governments or other stakeholders, including labour unions, involving an AngloGold Ashanti operation, as a result of rationalisation efforts or otherwise, could negatively affect AngloGold Ashanti’s relationship with such government or stakeholders in respect of other operations within the same country, which could result in adverse consequences, including unfavourable regulatory action, claims and labour disputes. Such adverse consequences could be exacerbated due to the holding company structure of AngloGold Ashanti’s subsidiaries in some of the countries in which it operates.

In South Africa, AngloGold Ashanti’s mining rights may be suspended or cancelled by the South African Minister of Mineral Resources, and the company may be unable to obtain new mining rights if it breaches its obligations under the Mineral and Petroleum Resources Development Act. No. 28 of 2002 (MPRDA). In particular, South Africa’s changing Black Economic Empowerment (BEE) policies may adversely affect both the terms of AngloGold Ashanti’s mining concessions, as well as its ability to conduct operations. Mining rights are linked to compliance with various obligations, including the Broad-Based Socio-Economic Empowerment Charter for the South African Mining and Minerals Industry, 2018 (2018 Mining Charter) which was published on 27 September 2018 and became effective on that date, as amended by the notice published in the Government Gazette on 19 December 2018 and read with the Implementation Guidelines for the 2018 Mining Charter published on the same date. The 2018 Mining Charter and its implications are discussed in more detail in “Item 4B: Business Overview–The Regulatory Environment Enabling AngloGold Ashanti to Mine”.  Compliance with the 2018 Mining Charter is measured using a designated scorecard relating to equity ownership, employment equity targets that are reflective of the demographic of South Africa, inclusive procurement supplier and enterprise development, human resource development, mine community and rural development, house and living conditions and reporting requirements.The first annual reporting for compliance with the 2018 Mining Charter shall be done on or before 31 March 2020. The deadline for compliance with the various elements of the prior mining charter, i.e. the Broad-Based Black Socio-Economic Empowerment Charter for the South African Mining and Minerals Industry, 2010 (2010 Mining Charter)was originally set for the end of 2014.

The 2018 Mining Charter provides that a new mining right must have a minimum of 30 percent BEE shareholding. It further provides that an existing mining right holder who has achieved a minimum of 26 percent BEE shareholding shall be recognised as compliant for the duration of the mining right.
AngloGold Ashanti believes that it complied with the ownership target of a minimum of 26 percent ownership by 2014 as prescribed by the 2010 Mining Charter. However, AngloGold Ashanti has not yet been assessed for compliance by the South African Department of Mineral Resources (DMR) against the 2018 Mining Charter targets and it may need to make further progress to achieve future targets, including, but no limited to, further participation by historically disadvantaged South Africans, also referred to in the MPRDA as historically disadvantaged persons (HDSAs) in senior and top management levels, the upgrade of housing and accommodation at the company’s mines, further human resource development, mine community development, sustainable development and growth as well as procurement and enterprise development.

The company will incur expenses in giving further effect to the 2018 Mining Charter. The 2018 Mining Charter provides that the employment equity targets must be met within five years. The requirement for inclusive procurement must be met within five years from the date of publication of the 2018 Mining Charter.AngloGold Ashanti may not meet all of the various requirements by the required dates.  Additionally, the South African government may decide that the 2018 Mining Charter has not gone far enough to achieve its underlying goals and therefore decide to expand the obligations of mining companies thereunder and the South African Minister of Mineral Resources may opt to disregard certain historical BEE transactions in connection with its review of new mining rights applications. Even though the 2018 Mining Charter recognises the “once empowered, always empowered” - principle, the 2018 Mining Charter makes it clear that such recognition will not be applicable on the transfer, sale or renewal of a mining right and therefore limits the application of the principle to the initial mining period. From a security of tenure perspective, AngloGold Ashanti’s Mponeng Mining Right will therefore enjoy recognition of the “once empowered, always empowered” - principle until the end of the initial period for which the mining right was converted (i.e. 2036) at which point AngloGold Ashanti will likely be required to conclude a further empowerment transaction for the purposes of renewing the Mponeng Mining Right. Furthermore, the 2018 Mining Charter provides that pending mining right applications, which were lodged and accepted prior to the effective date of the 2018 Mining

Charter, will be processed in accordance with the 2010 Mining Charter and will thus require a minimum of 26 percent BEE shareholding. However, the mining right holder must then increase the BEE shareholding to a minimum of 30 percent within a period of five years from the effective date of the mining right to be issued. On 26 March 2019, the Minerals Council South Africa (the former Chamber of Mines of South Africa) filed an application in the High Court of South Africa for the judicial review and setting aside of certain clauses of the 2018 Mining Charter. This application primarily relates to the fact that the 2018 Mining Charter does not fully recognise the continuing consequences of historical BEE transactions, particularly in respect of the transfer, sale or renewal of mining rights. The application for judicial review of the 2018 Mining Charter is currently pending.

On 9 March 2016, AngloGold Ashanti received a notice from the DMR stating that the company was not compliant with the 26 percent HDSA ownership requirement under the 2010 Mining Charter. AngloGold Ashanti timely responded to the order and as the DMR has taken no further action, its original notice has lapsed. On 25 February 2019, AngloGold Ashanti received a directive from the DMR stating that the company was not compliant with the amendment process required by the MPRDA in connection with BEE transactions entered into by the company after the conversion of the West Wits mining rights. The DMR instructed AngloGold Ashanti to submit an application to amend the clauses of two of its West Wits mining rights which record the BEE transactions entered into and implemented by the company to reflect further details of those BEE transactions and provide certain information relating to such transactions. On 7 March 2019, AngloGold Ashanti submitted an application for consent of the Minister of Mineral Resources to amend those clauses accordingly and provided the requested information. Should AngloGold Ashanti be found in breach of its obligations to comply with the MPRDA, the 2010 Mining Charter, the 2018 Mining Charter or any future amendments to the 2018 Mining Charter, it may be compelled to conclude additional BEE transactions. As indicated above, the 2018 Mining Charter provides that a new mining right must have a minimum of 30 percent BEE shareholding, which shall include economic interest plus corresponding percentage of voting rights per mining right or in the mining company which holds the mining right. The 30 percent BEE shareholding must be distributed to qualifying employees (a minimum of five percent non-transferable carried interest), host communities (a minimum of five percent non-transferable carried interest), and a BEE entrepreneur (a minimum of 20 percent effective ownership in the form of shares, five percent of which must preferably be for women). In the event that AngloGold Ashanti applies for a new mining right, it will have to comply with the 2018 Mining Charter ownership requirements and it will not be entitled to rely on its current BEE ownership structure. See also “Item 4B: Business Overview–The Regulatory Environment Enabling AngloGold Ashanti to Mine”.
In addition, and as discussed in more detail in “Item 4B: Business Overview—The Regulatory Environment Enabling AngloGold Ashanti to Mine”, the Broad-Based Black Economic Empowerment Amendment Act, No. 46 of 2013(BBBEE Amendment Act), which amended the Broad-Based Black Economic Empowerment Act, No 53 of 2003 (BBBEE Act), became effective on 24 October 2014. There are several areas of potential conflict between the BBBEE Amendment Act and the 2018 Mining Charter, even though the 2018 Mining Charter provides that it seeks to align the applicable mining charter with the BBBEE Amendment Act. Since no such alignment is achieved, regulatory conflicts and uncertainty may continue to prevail in the future. Furthermore, historically there has been some debate as to whether the BBBEE Act and the Codes of Good Practice under the BBBEE Act (BBBEE Codes) apply to the mining industry, taking into account that the BBBEE Act requires every organ of state and public entity to give due consideration to the BBBEE Codes when issuing licenses, concession or other authorisations. The MPRDA and the BBBEE Act have an overlapping focus. However, the BBBEE Act and the BBBEE Codes do not require the DMR to apply the BBBEE Codes when determining the qualification criteria for the issuing of mining rights, nor do they require that the DMR applies the BBBEE Codes as a requirement for the retention of existing mining rights. The BBBEE Codes will nevertheless apply to mining companies if they wish to be scored for the purpose of contracting with organs of state.

In Colombia, a government agency grants exclusive concession contracts for exploration and exploitation. With the award of the mining concession or tenement contract, there are specified timelines for the completion of the various phases of a mining project, e.g., exploration, construction, exploitation. The company must comply with these timelines unless performance is excused, for example, due to force majeure or if extensions or modifications to the timelines are received. For example, force majeure was declared at the La Colosa project, stopping all activities, following the outcome of the referendum held on 26 March 2017 in the Colombian municipality of Cajamarca, which hosts the La Colosa exploration site. The force majeure was initially granted for one year. It has been extended for an additional year and will now expire in June 2019, after which such declaration will need to be extended. While the Company plans to make a timely application for an extension, there can be no guarantee that the declaration will be extended. Loss of the force majeure status could have a material adverse effect on AngloGold Ashanti’s results of operations and financial condition.

If the company does not comply with the specified timelines for the completion of the various phases of a mining project, the mining authority may revoke the company's concession contracts or mining licenses. The company’s core mining concession contracts provide that the mining authority has the discretion to declare the underlying concession void if AngloGold Ashanti Colombia S.A. (AGAC) breaches applicable environmental laws or regulations. If the mining authority were to exercise such discretion against it, AGAC would be required to abandon its projects and all of its other existing mining concession contracts. Pending proposals for new mining concession contracts would also be cancelled and AGAC would be banned from doing business with the Colombian government for a period of five years. See “Item 4B: Business Overview–The Regulatory Environment Enabling AngloGold Ashanti to Mine”.

AngloGold Ashanti’s insurance does not cover most losses caused by the risks described above; see “—The occurrence of events for which AngloGold Ashanti is not insured or for which its insurance is inadequate may adversely affect cash flows and overall profitability”.


If AngloGold Ashanti is not able to obtain or maintain necessary permits, authorisations or agreements to prospect or mine or to implement planned projects, or continue its operations, or comply with all laws, regulations or requirements, or do so within timeframes that make such plans and operations economically viable, or if the laws impacting the company’s ownership of its mineral rights or the right to prospect or mine change materially, or should governments increase their ownership in the mines or nationalise them, AngloGold Ashanti’s results of operations and financial condition could be adversely affected.

Title to AngloGold Ashanti’s properties may be uncertain and subject to challenge.

AngloGold Ashanti has operations in several countries where ownership of land is uncertain and where disputes may arise in relation to ownership. Certain of the company’s properties may be subject to the rights or the asserted rights of various community stakeholders, including indigenous people. The presence of those stakeholders may have an impact on AngloGold Ashanti’s ability to develop or operate its mining interests. For example, in Australia, the Native Title Act 1993 (Cth) provides for the establishment and recognition of native title under certain circumstances. In South Africa, the Extension of Security of Tenure Act, No. 62 of 1997 and the Restitution of Land Rights Act, No. 22 of 1994 provide for various landholding rights. Such legislation is complex, difficult to predict and outside of the company’s control, and could negatively affect the business results of new or existing projects. In Ghana, in February 2012, the company negotiated the relocation of the Sansu Community, which lies within its Obuasi mining concession; the cost of this relocation was approximately $30 million. Where consultation with stakeholders is statutorily or otherwise mandated, relations may not remain amicable and disputes may lead to reduced access to properties or delays in operations.

Title to the company’s properties, particularly undeveloped ones, may also be defective or subject to challenge. Title insurance generally is not available, and title review does not necessarily preclude third parties from contesting ownership. Where surveys have not been conducted, the precise area and location of the company’s claims may be in doubt and concessions granted under various titles in a single area may turn out not to be perfectly contiguous, leaving title to areas between concessions open to challenge. Accordingly, AngloGold Ashanti’s mineral properties may be subject to prior unregistered liens, agreements, transfers or claims, including native land claims, and title may be affected by, amongst other things, undetected defects.

AngloGold Ashanti may experience unforeseen difficulties, delays or costs in successfully implementing its business strategy and projects, including any cost-cutting initiatives, temporary or permanent shutdowns, divestments and other portfolio rationalisation initiatives and any such strategy or project may not result in the anticipated benefits.

The successful implementation of the company’s business strategy and projects depends upon many factors, including those outside its control. For example, the successful management of costs will depend on prevailing market prices for input costs. The ability to grow the business will depend on the successful implementation of the company’s existing and proposed project development initiatives and continued exploration success, as well as on the availability of attractive merger and acquisition opportunities, all of which are subject to the relevant mining and company specific risks as outlined in these risk factors.

Since 2013, AngloGold Ashanti has implemented initiatives relating to strategic alignment, portfolio review, restructuring and cost-cutting, temporary or permanent shutdowns, and divestments, including in connection with the consolidation of its business activities and assets. Any future contribution of these measures to profitability will be influenced by the actual savings achieved and by the company’s ability to sustain these ongoing efforts. Strategic alignment, restructuring and cost-cutting initiatives may involve various risks, including, for example, labour unrest, operating licence withdrawal, and potential knock-on effects to other company projects and jurisdictions. The risk is elevated in South Africa, given calls for withdrawal of mining licences for “mothballed shafts” and hostile reaction to proposed mining industry retrenchments.

For example, subsequent to the restructuring of the South African operations announcement in June 2017 and based on unsolicited expressions of interest received from a number of parties, AngloGold Ashanti initiated a process to assess the sale of the Kopanang and the Moab Khotsong mines situated in the Vaal River region of South Africa . Both transactions were successfully completed on 28 February 2018 with the announcement that all conditions related to the sale of Moab Khotsong mine and some associated assets for $300 million in cash and the sale of Kopanang mine for ZAR 100 million in cash have been fulfilled. The ownership of Moab Khotsong and related assets and Kopanang have been transferred to Harmony Gold Mining Company Limited (Harmony) and Heaven-Sent SA Sunshine Investment Company Limited (Heaven-Sent), respectively.

The consideration received for both transactions was utilised by AngloGold Ashanti to further reduce debt and strengthen the company's balance sheet affording AngloGold Ashanti greater strategic flexibility to fund its growth initiatives including its development projects. All of AngloGold Ashanti’s obligations and liabilities (including all employee and health and safety obligations other than any claim related to occupational lung disease relating to Moab Khotsong for the period prior to the closing date), as well as all environmental obligations related to the sold assets arising on, before or after the closing date were transferred to Harmony and Heaven-Sent, as applicable.

This risk is also significant in Ghana, where ongoing restructuring and repositioning of the Obuasi mine has resulted in halting of the mine’s existing operations and significant workforce redundancies in the past. In 2014 alone, these redundancies resulted in the company incurring $210 million in retrenchment costs. In February 2018, AngloGold Ashanti signed regulatory and fiscal agreements with the government of Ghana that will provide the framework for the redevelopment of the Obuasi mine into a modern, productive mining operation. The government of Ghana and the company have put in place several agreements including a development agreement, tax concession agreement, security agreement and a reclamation security agreement. The Tax Concession Agreement (TCA) and the Development Agreement (DA) have both been ratified by Ghana's Parliament on 21 June 2018.


The environment impact assessment process has been completed and the permits have been issued by Ghana's Environmental Protection Agency in June 2018. The redevelopment is expected to establish Obuasi as a mechanised underground mining operation and is a fundamental departure from how the mine was operated in the past. The redevelopment is expected to make use of automation and controls for improved operational efficiencies and consistency in performance. The project is being developed in two distinct phases, with the first gold pour anticipated at the end of 2019 and the second phase expected by the end of 2020. Unforeseen difficulties, delays or costs may adversely affect the implementation of this project and the company may be unsuccessful in meeting this production, cost and return target.

Finally, this risk may also be high in the DRC, in light of the recently enacted mining code reform. See “—AngloGold Ashanti’s mining rights in the countries in which it operates could be altered, suspended or cancelled for a variety of reasons, including breaches in its obligations in respect of such mining rights”.

In addition, these measures may not be implemented as planned, may turn out to be less effective than anticipated, may only become effective later than anticipated or may not be effective at all. Any of these outcomes, individually or in combination, may adversely impact the company’s business, results of operations and financial condition.

Expectations for and trends in the price of gold, combined with increased costs for project financing and exploration in certain regions, have led AngloGold Ashanti to increase its efforts to focus capital expenditure on its highest quality assets, whilst freeing up capital by curtailing capital expenditure or suspending operations at those projects that the company at the time believes are of lower quality. As a result, certain investments may not be made if the returns they offer rank below other available opportunities within the company’s portfolio. AngloGold Ashanti may also consider finding partners or conducting asset sales relating to certain of its projects. For example, given fiscal uncertainty related to the Sadiola sulphide project in Mali, the company and IAMGOLD Corporation initiated a process in 2018 to identify third parties that may be interested in acquiring their collective interest in Sadiola. In addition, a process to divest the Cerro Vanguardia mine in Argentina (CVSA) is now also underway. With respect to dispositions, the company may not be able to obtain prices that it expects for the assets it seeks to dispose of or to divest some of its activities as planned or to obtain all of the required approvals, and the divestitures that are carried out could have a negative impact on AngloGold Ashanti’s business, results of operations, financial condition and reputation, including as a result of subsequent claims brought by acquirers in connection with divested assets.

AngloGold Ashanti may also prove unable to deliver on production targets, including in potentially critical areas, as well as on the timely, cost-effective and successful execution, including ramping-up, of key capital projects. For example, in South Africa, the company has been experiencing declining production rates in the years leading up to the restructuring of its South African portfolio in 2018 (e.g., 903,000 ounces in 2017, 967,000 ounces in 2016, compared with 1.00 million ounces of gold in 2015, 1.22 million ounces of gold in 2014, and 1.30 million ounces in 2013), principally due to continued safety and associated stoppages, mining flexibility constraints and overall falls in grades. In addition, Colombia is an untested jurisdiction, so permitting, licensing, stakeholder expectations and demands and other external factors could affect timelines and cause capital overruns. Unforeseen difficulties, delays or costs may adversely affect the successful implementation of the company’s business strategy and projects, and such strategy and projects may not result in the anticipated benefits, which could have a material adverse effect on its results of operations, financial condition and prospects.

Labour unrest, activism and disruptions (including protracted stoppages) could have a material adverse effect on AngloGold Ashanti’s results of operations and financial condition.

AngloGold Ashanti’s employees in South Africa, Ghana, Guinea, Mali, Brazil and Argentina are highly unionised and unions are active at some of the company's other operations.  Trade unions working with communities and non-governmental organisations (NGOs), therefore, have a significant impact on the general labour relations environment, including labour relations at an operational level. The extent of the unions’ influence also impacts the socio-economic and socio-political operating environments, most notably in South Africa and Mali. Union involvement in wage negotiations and collective bargaining increases the risk of strike action. For example, in South Africa, inter-union rivalry and competition for dominance amongst the larger unions, i.e. the Association of Mining Construction Union (AMCU) and the National Union of Mineworkers (NUM), lends itself to conflict. This situation is further exacerbated with the muscling in of the biggest union in South Africa, i.e. the National Union of Metal Workers of South Africa (NUMSA), in the mining industry. This challenge to the dominance of other unions may cause renewed inter-union rivalry and increase the risk of labour relations instability.The company expects that unions will continue to use their collective power and ability to withhold labour in the future in order to advocate for improved conditions of employment, labour regulatory change, political and social goals. Any future labour unrest and disruptions could have a material adverse effect on AngloGold Ashanti’s results of operations and financial condition.

Under the prevailing unstable global economic climate in particular, unions could utilise disruptions, strikes and protest action to oppose the prevalence of restructuring and downscaling of the mining industry. In South Africa, a variety of legacy issues such as housing, migrant labour, education, poor service delivery and youth unemployment can lead to communities and unions working together to create instability in and around mining operations. As such, there is a risk to the safety of people and damage to company infrastructure and property.

For example, the South African operations have been subject to a restructuring, rightsizing and downscaling process since 2017. In January 2017, following budgetary planning considerations, around 849 employees were dismissed for operational requirements.

In June 2017, a large scale restructuring process affected another 8,500 employees. In February 2018, the sale of the Moab Khotsong mine and associated assets in the Vaal River licensing district and the Kopanang mine and the West Gold Plant prevented further job losses. An additional restructuring process commenced in June 2018 in light of the considerably smaller South African production base and was completed in December 2018. Forced retrenchments were mitigated, from 2,000 initially anticipated in the most recent restructuring, to 72, by offering voluntary severance packages, and selling non-core assets, such as healthcare facilities and rail networks in the Vaal River region, which may preserve jobs through a transfer of ownership. Such restructuring processes require extensive internal and external consultations with all stakeholders within a strictly regulated and highly unionised environment. Even though no industrial strike actions affecting AngloGold Ashanti’s operations occurred during the restructuring of the South African portfolio, other mining companies operating in South Africa had to endure protracted and violent strikes due to restructuring and downsizing. Future disruptions, strikes and protest actions cannot be excluded and may have a material adverse effect on the company’s results of operations and financial condition.

In South Africa, the company reached a three-year wage agreement, including a new shift arrangement, with all unions in September 2018. Such negotiation process involve intense consultations with various unions. There can be no guarantee that the company will be able to negotiate satisfactory wage agreements in the future. Negotiations of wage or other bargaining agreements may turn into protracted processes involving disruptions, strikes and protest actions, and may have a material adverse effect on the company’s results of operations and financial condition.
In South Africa, the broader labour relations climate remains fragile. For example, a number of mining companies are experiencing protracted strike actions in the context of the 2018 gold wage negotiations. The possibility of such strike actions spreading to the company continues to be a risk. The labour relations climate is further exacerbated by a number of other issues, such as (i) pressure building amongst all unions and employees regarding legislative reforms affecting pensions and provident funds, (ii) demonstrations by citizens and students regarding public services and free education, (iii) public outcry relating to racism, and (iv) effects of confrontations between political parties in the lead-up to the general elections, all of which may have repercussions in the workplace.

In West Africa, union negotiations are increasingly impacted by a focus on broader social grievances. In Mali and Guinea, pro-labour and pro-union practices supported by government labour authorities may result in increased labour union activity and the breach of obligations contained in agreements with labour unions. In some instances the company may not be able to rely on the existing legal framework, including agreements with labour unions, which creates further risks to the business.
In addition, international trade unions may have an increasingly important impact on mining companies. For example, the company has been repeatedly approached by an international union made up of most of the unions who are active in the company’s global operations (IndustriALL Global Union) to agree to a global framework agreement aiming at standardisation and equalisations of labour terms and conditions for the group. Any labour unrest and disruptions caused by such international trade unions could have a material adverse effect on AngloGold Ashanti’s results of operations and financial condition.

Increased labour costs could have a material adverse effect on AngloGold Ashanti’s results of operations and financial condition.

Labour costs represent a substantial proportion of the company’s total operating costs and at many operations in South Africa and the Americas, constitute approximately 40 to 50 percent of the operations’ operating costs. Absent any simultaneous increase in productivity, any change to the company’s wage agreements or other factors that could increase labour costs may have a material adverse effect on AngloGold Ashanti’s results of operations and financial condition.

AngloGold Ashanti’s results may be further impaired if the company incurs penalties for failing to meet standards set by labour laws regarding workers’ rights or incurs costs to comply with new labour laws, rules and regulations.  For example, employment law in South Africa imposes monetary penalties for neglecting to report to government authorities on progress made towards achieving employment equity in the workplace.  Ghanaian law also contains broad provisions requiring mining companies to recruit and train Ghanaian personnel and to use the services of Ghanaian companies. In Australia, the federal government put in place an industrial relations system that includes “good faith bargaining” obligations for employers, fewer restrictions on the content of collective agreements and an enhanced role for union officials as bargaining representatives, parties to agreements and participants in dispute resolution.  Penalties and compliance costs, as well as increased costs due to laws and regulations less favourable to employers, could have a material adverse effect on the company’s results of operations and financial condition.

Illegal and artisanal mining occurs on AngloGold Ashanti’s properties, which can disrupt the company’s business and expose the company to liability.

Illegal and artisanal miners are active on, or adjacent to at least 11 of AngloGold Ashanti’s properties, which leads at times to interference with the company’s operations and results in conflict that presents a security threat to property and human life. Illegal artisanal and small-scale mining is associated with a number of negative impacts, including environmental degradation, flouting of land rights, poor working practices, erosion of civil society, human rights abuse and funding of conflict. The environmental, social, safety and health impacts of artisanal mining are frequently attributed to formal mining activity, and it is often assumed that artisanally-mined gold is channelled through large-scale mining operators, even though artisanal and large-scale miners have distinct supply chains. These misconceptions impact negatively on the reputation of the industry. The company’s operations and projects affected by illegal and/or artisanal small-scale mining are mainly situated in South Africa, Tanzania, Ghana, Mali, Guinea and Colombia.


The activities of the illegal miners, which include theft and shrinkage, could cause damage to AngloGold Ashanti’s properties, including pollution, underground fires, or personal injury or death, for which AngloGold Ashanti could potentially be held responsible. Illegal mining could result in the depletion of mineral deposits, potentially making the future mining of such deposits uneconomical. The presence of illegal miners could lead to project delays and disputes regarding the development or operation of commercial gold deposits. In addition, illegal mining could lead to an increase in the level of organisation and funding of criminal activity around some of the company’s operations in Continental Africa. The most significant security challenges have occurred in Tanzania, Mali, Guinea and Ghana in areas where there is endemic poverty and high levels of unemployment. For example, at the Obuasi mine in Ghana, the incursion of hundreds of illegal miners followed the withdrawal of military protection from the Obuasi mine in the beginning of 2016. The military had been stationed at the mine since 2013 on directions from the Ghanaian government in order to maintain law and order at the site. AngloGold Ashanti (Ghana) Limited was forced to declare force majeure and, in the interests of safety, withdrew all employees performing non-essential functions from the Obuasi mine. There was no impact on the company’s production and costs as the Obuasi site was not forecast to be in production during that year.

More generally, illegal mining and theft could also result in lost gold Ore Reserve, mine stoppages, and have other material adverse effects on AngloGold Ashanti’s results of operations or financial condition.

AngloGold Ashanti competes with mining and other companies for key human resources with critical skills and its inability to retain key personnel could have an adverse effect on its business.

AngloGold Ashanti competes on a global basis with mining and other companies to attract and retain key human resources at all levels with the appropriate technical skills and operating and managerial experience necessary to operate and supervise its business. This is exacerbated by the global shortage of persons with critical mining skills, including geologists, mining engineers, metallurgists and skilled artisans. Furthermore, the often remote locations of mining operations may make the mining industry unattractive to potential employees. Changes in taxation and the regulatory environment where AngloGold Ashanti operates may also impact the company’s ability to attract and retain key personnel, especially those from abroad.

The retention of staff is particularly challenging in South Africa, where, in addition to the impacts of global industry shortages of skilled labour, AngloGold Ashanti is required to achieve employment equity targets of participation by HDSAs in management and other positions. AngloGold Ashanti competes with all companies in South Africa to attract and retain a small but growing pool of HDSAs with the necessary skills and experience. AngloGold Ashanti has historically faced difficulty recruiting and retaining young graduates and qualified mid-level management in South Africa and may encounter greater difficulties in the future as the South African government attempts to impose increasingly stringent HDSA participation requirements. See “—AngloGold Ashanti’s mining rights in the countries in which it operates could be altered, suspended or cancelled for a variety of reasons, including breaches in its obligations in respect of such mining rights” and “Item 4B: Business Overview-The Regulatory Environment Enabling AngloGold Ashanti to Mine”. Recruitment of skilled personnel has also been challenging in Continental Africa due to university offerings that are often not well-suited to the specific needs of the mining industry, as well as other factors such as language barriers and low literacy skills.

The recruitment of skilled workers is also highly competitive in South America as a result of a shortage of skills and intense competition between mining companies.

Additionally, the company may incur significant costs to build talent, capacity and expertise across its global operations. Despite AngloGold Ashanti’s investments, the company may not be able to retain and attract sufficient skilled and experienced employees in all areas of the business. Should it fail to do so or lose any of its key personnel with critical skills, business and growth prospects may be harmed and this could have an adverse impact on AngloGold Ashanti’s results of operations and financial condition.

AngloGold Ashanti’s inability to retain its senior management may have an adverse effect on its business.

The company’s success depends largely upon the continued service of its senior management, including its chief executive officer, chief financial officer, the executive officers at each of its business divisions and the general managers at its mines.
For example, after 18 years of service with AngloGold Ashanti, the chief executive officer, Srinivasan Venkatakrishnan, left the company in August 2018. He was replaced by Kelvin Dushnisky, former president and executive director of Barrick Gold Corporation, who took up the role of chief executive officer and executive director of the company’s board on 1 September 2018. Other organisational and management changes have also taken place within the organisation as a result of, among other things, the planned retirement of certain members of senior management.

AngloGold Ashanti’s inability to retain its senior management may have an adverse effect on the company’s business, results of operations and financial condition. In addition, the loss of one or more members of the senior management teams, coupled with the reduced attractiveness of the gold mining sector, could lead to other members of the management team leaving, disrupt the company’s operations, and have a material adverse impact on the company’s business, results of operations and financial condition.





The use of contractors at certain of the company’s operations may expose AngloGold Ashanti to delays or suspensions in mining activities and increases in mining costs.

AngloGold Ashanti uses contractors at certain of its operations to mine and deliver ore to processing plants as well as for other purposes. At mines employing mining contractors, contracting costs represent a significant proportion of the total operating costs of these operations. For example, increased contractor rates at the Sadiola mine in Mali contributed to a significant rise in total cash costs in the final quarter of 2011. Increased contractor costs at Sunrise Dam in Australia and Geita in Tanzania contributed to higher cash costs in the first quarter of 2012.

AngloGold Ashanti’s operations could be disrupted, resulting in additional costs and liabilities, if the mining contractors at affected mines have financial difficulties, or if a dispute arises in renegotiating a contract, or if there is a delay in replacing an existing contractor and its operating equipment to meet business needs at expected cost levels. Increases in contract mining rates, in the absence of associated productivity increases, will also have an adverse impact on the company’s results of operations and financial condition. For example, in October 2012, AngloGold Ashanti terminated the underground development contract with a third-party contractor at the Obuasi mine in Ghana. The costs of the termination amounted to $17 million. In February 2014 workers employed by a contractor at Sadiola and Yatela went on a five-day strike demanding improved redundancy payments. See “—Labour unrest, activism and disruptions (including protracted stoppages) could have a material adverse effect on AngloGold Ashanti’s results of operations and financial condition”. Furthermore disagreements over costs with contractors at Siguiri in Guinea and Iduapriem in Ghana resulted in a dispute in 2015.

Contractor disputes can also arise after the termination of the contractual relationship or the sale of the applicable mine. For example, the company is currently involved in arbitration proceedings with contractors in Ghana with regard to its Obuasi mine and in the United States with regard to its former Cripple Creek & Victor mine. See “Item 8A: Legal Proceedings”.

In addition, AngloGold Ashanti’s reduced control over those aspects of operations which are the responsibility of contractors, their failure to comply with applicable legal, human rights and regulatory requirements, or their inability to manage their workforce or provide high quality services or a high level of productivity could adversely affect AngloGold Ashanti’s reputation, results of operations and financial condition, and may result in the company’s incurrence of liability to third parties due to the actions of contractors.

The level of AngloGold Ashanti’s indebtedness could adversely impact its business.

As at 31 December 2018, AngloGold Ashanti had gross borrowings of $1.989 billion (2017: $2.190 billion), excluding all finance leases.

AngloGold Ashanti’s indebtedness could have a material adverse effect on its flexibility to conduct business.  For example, the company may be required to use a large portion of its cash flow to pay the principal and interest on its debt, which will reduce funds available to finance existing operations and the development of new organic growth opportunities and further acquisitions.  In addition, under the terms of the company’s borrowing facilities from its banks, AngloGold Ashanti is obliged to meet certain financial and other covenants.  AngloGold Ashanti’s ability to continue to meet these covenants and to service its debt will depend on its future financial performance, which will be affected by its operating performance as well as by financial and other factors, including in particular the gold price, certain of which are beyond its control.

Should the cash flow from operations be insufficient, AngloGold Ashanti could breach its financial and other covenants.  Covenant breaches, if interpreted as events of default under one or more debt agreements, could allow lenders to accelerate payment of such debt.  Any such acceleration could result in the acceleration of indebtedness under other financial instruments.  As a result, the company may be required to refinance all or part of the existing debt, use existing cash balances, issue additional equity or sell assets.  However, the company may be unable to sell assets on reasonable or profitable terms as and when necessary.  Additionally, AngloGold Ashanti cannot be sure that it will be able to refinance its debt on commercially reasonable terms, if at all.  The company’s ability to access the bank, public debt or equity capital markets on an efficient basis may be constrained by dislocation in the credit markets or capital and liquidity constraints in the banking, debt or equity markets at the time of issuance.

Any downgrade of credit ratings assigned to AngloGold Ashanti’s debt securities could increase future interest costs and adversely affect the availability of new financing.

An actual, anticipated or unexpected negative development of AngloGold Ashanti’s results of operations or cash flows, country risk, financial metrics, or an increase in net debt position could result in a deterioration of the company’s credit ratings.  AngloGold Ashanti’s ratings are influenced inter alia, by the location of its domicile and its operations.

On 24 November 2017, S&P Global downgraded South Africa’s credit rating to full sub-investment grade, while its counterpart Moody’s placed the country on review for downgrade. S&P Global’s announcement followed a similar announcement by Fitch, affirming South Africa’s rating at sub-investment grade on 23 November 2017. Moody’s decision to put South Africa on review, rather than downgrade it outright, means that South Africa can remain in key global bond indices such as the Citigroup World Bond Index (WGBI). Moody’s held South Africa local and foreign issued debt on the cusp of investment and sub-investment grade. Membership in the WGBI requires that at least Moody’s or S&P Global rates a country’s local currency rating as investment grade.

Moody's on 23 March 2018 affirmed South Africa's investment-grade credit rating at Baa3 and revised its credit outlook to stable from negative. See “–Global economic conditions could adversely affect the profitability of operations”.

Any further downgrade by any rating agency could increase the company’s cost of capital, reduce its investor base and have a material adverse effect on AngloGold Ashanti’s business, results of operations and financial condition.

AngloGold Ashanti expects to have significant financing requirements.

AngloGold Ashanti’s existing board-approved development projects and exploration initiatives will require significant funding. 

The company’s capital expenditure plans and requirements are subject to a number of risks, contingencies and other factors, some of which are beyond its control, including volatile or sustained lower gold prices, and therefore the actual future capital expenditure and investments may differ significantly from the current planned amounts.

As a result, new sources of capital may be needed to help meet the funding requirements of these developments, to fund ongoing business activities and to pay dividends.  AngloGold Ashanti’s ability to further raise and service significant new sources of capital will be a function of macroeconomic conditions, the condition of the financial markets, future gold prices, the company’s operational performance and operating cash flow and debt position, amongst other factors.  The company’s ability to raise further debt financing in the future and the cost of such financing will depend on, amongst other factors, its prevailing credit rating, which may be affected by the company’s ability to maintain its outstanding debt and financial ratios at levels acceptable to the credit ratings agencies, its business prospects, risks relating to the countries in which it operates or other factors.  As a result, in the event of depressed gold prices, unanticipated operating or financial challenges, any dislocation in financial markets or new funding limitations, AngloGold Ashanti’s ability to pursue new business opportunities on reasonable terms, invest in existing and new projects, fund its ongoing business activities, exit projects and retire or service outstanding debt and pay dividends could be significantly constrained, all of which could adversely impact the company’s results of operations and financial condition.

Changes in the method of determining LIBOR, or the replacement of LIBOR with an alternative reference rate, may adversely affect interest expense related to our credit facilities.

LIBOR, the London interbank offered rate, is the basic rate of interest used in lending between banks on the London interbank market and is widely used as a reference for setting the interest rate on loans globally. Some of our 17 revolving credit facilities bear interest rates in relation to LIBOR. On 27 July 2017, the UK Financial Conduct Authority (FCA), which regulates LIBOR, has announced that it intends to stop encouraging or requiring banks to submit LIBOR rates after 2021, and it is unclear if LIBOR will cease to exist or if new methods of calculating LIBOR will evolve. If LIBOR ceases to exist or if the methods of calculating LIBOR change from their current form, interest rates on our current or future indebtedness may increase and we may need to renegotiate our revolving credit facilities to replace LIBOR with a new standard, both of which could have a material adverse effect on our liquidity, results of operations or financial condition. In addition, the issues that may lead to the discontinuation or unavailability of LIBOR may make one or more of the alternative methods impossible or impracticable to determine. Further, there can be no guarantee that a transition from LIBOR to an alternative will not result in financial market disruptions, significant increases in benchmark rates or borrowing costs to borrowers, any of which could have a material adverse effect on our liquidity, results of operations or financial condition.

Certain factors may affect AngloGold Ashanti’s ability to support the carrying amount of its property, plant and equipment, intangible assets and goodwill on the balance sheet. If the carrying amount of its assets is not recoverable, AngloGold Ashanti may be required to recognise an impairment charge, which could be significant.

AngloGold Ashanti reviews and tests the carrying amount of its assets when events or changes in circumstances suggest that the carrying amount may not be recoverable. The company values individual mining assets at the lowest level for which cash flows are identifiable and independent of cash flows of other mining assets and liabilities.

If there are indications that impairment may have occurred, AngloGold Ashanti prepares estimates of a recoverable amount for each group of assets. Expected future cash flows are inherently uncertain, and could materially change over time. Recoverable amounts are significantly affected by Ore Reserve and production estimates, together with economic factors such as spot and forward gold prices and currency exchange rates, as well as discount rates and estimates of costs to produce Ore Reserves and future capital expenditure. Estimated rehabilitation and closure costs could also materially affect the company’s financial performance and could result in the need to recognise an impairment charge.

If any of these uncertainties occur, either alone or in combination, management could be required to recognise an impairment, which could have a material adverse effect on the company’s results of operations and financial condition. For example, during 2017, AngloGold Ashanti reviewed the carrying value of its mining assets, goodwill and intangibles and due to a change in mine plans to restructure the South African operations, certain assets were impaired. In addition, in October 2017, following the company's announcement to sell various South African assets (including the Moab Khotsong mine), these were written down to fair value less costs to sell. The company booked a charge of $297 million in relation to impairments and derecognition of its mining assets and goodwill. The impairment charge for the Moab Khotsong mine was $112 million and the impairment charge for the Kopanang mine was $35 million.



AngloGold Ashanti is subject to the risk of litigation, the causes and costs of which are not always known.


AngloGold Ashanti is subject to litigation, arbitration and other legal proceedings arising in the normal course of business and may be involved in disputes that may result in litigation. The causes of potential future litigation cannot be known and may arise from, amongstamong other things, business activities, environmental and health and safety concerns, share price volatility or failure to comply with disclosure obligations. The results of litigation cannot be predicted with certainty but could include costly damage awards or settlements, fines, and the loss of licenses, concessions, or rights, amongstamong other things. See “Item 8A: Legal Proceedings”.


In the event of a dispute, AngloGold Ashanti may be subject to the exclusive jurisdiction of foreign courts or may not be successful in subjecting foreign persons to the jurisdiction of courts in South Africa. An adverse or arbitrary decision of a foreign court could have a material adverse impact on AngloGold Ashanti'sAshanti’s financial performance, cash flow and results of operation.


For example, in Colombia, AngloGold Ashanti has been subject to numerous claims, including class actions or similar group claims relating to silicosis and other occupational lung diseases (OLD), and could be subject to similar claims in the future. In South Africa, settlement of the silicosis class action litigation was reached on 3 May 2018, after three years of extensive negotiations between the OLD Working Group companies and the lawyers of the claimants. If the settlement is approved by the High Court in Johannesburg and all its other conditions are met, a trust will be established which will be responsible for making payments to eligible beneficiaries. As of 31 December 2018, AngloGold Ashanti has recorded a provision of $63 million to cover the estimated settlement costs and related expenditure of the silicosis litigation.

Significant judgement was applied in estimating the costs that will be incurred to settle the silicosis class action claims and related expenditure and the final costs may differ from current cost estimates. Management believes the assumptions are appropriate, however changes in the assumptions may materially affect the provision and final costs of settlement. There can be no assurance that the ultimate resolution of this matter will not result in losses in excess of the recorded provision and the ultimate settlement may have a material adverse effect on AngloGold Ashanti’s financial position. For further information, see “Item 8A: Legal Proceedings-South Africa ", "Item 18: Financial Statements-Note 1-Accounting Policies-Provision for silicosis " and “–The prevalence of occupational health diseases and other diseases and the potential costs and liabilities related thereto may have an adverse effect on the business and results of operations of AngloGold Ashanti”.

It is possible that additional class actions and/or individual claims relating to silicosis and/or other OLD will be filed against AngloGold Ashanti in the future. AngloGold Ashanti will defend all current and any subsequent claims as filed on their merits. Should AngloGold Ashanti be unsuccessful in defending any such claims, or in otherwise favourably resolving perceived deficiencies in the national occupational disease compensation framework that were identified in the earlier decisions of the Constitutional Court of South Africa, such matters would have an adverse effect on its financial position, which could be material.

In Colombia, the company is also involved in class action lawsuits in relation to AngloGold Ashanti Colombia S.A.'s (AGAC)each of its Santa Maria-MontecristoMaría-Montecristo and La Colosa projects. One ofprojects seeking to stop the company from conducting exploration, development and mining activities in certain areas, in which these class action lawsuits ledexploration projects are located, due to a preliminary injunction suspending the mining concession contracts of the Santa Maria-Montecristo project in September 2011. Additionally, in Colombia, AGAC is involved in an action in the Administrative Superior Court of the Cundinamarca District against the Department of the Environment, Housing and Territorial Development (DoE) following its issuance of a fine against AGAC on the basis that AGAC was in breach of its mining terms of reference. The company’s core mining concession contracts provide that the mining authority has the discretion to declare the underlying concession void if AGAC breaches applicable environmental laws or regulations. If the mining authority were to exercise such discretion against AGAC, AGAC would be required to abandon its projects and all of its other existing mining concession contracts. Pending proposals for new mining concession contracts would also be cancelled and AGAC would be banned from doing business with the Colombian government for a period of five years.concerns. See “Item“Item 8A: Legal Proceedings-Colombia”Proceedings—Colombia”.


Should the companyAngloGold Ashanti be unable to resolve disputes favourably or to enforce its rights, this may have a material adverse impact on the company’sits financial performance, cash flow and results of operations.


Any acquisition or acquisitions that AngloGold Ashanti may complete may exposeCompliance with “conflict minerals” and “responsible gold” legislation and standards could result in significant costs.

Stringent standards relating to “conflict minerals” and “responsible” gold including, but not limited to, the company to new geographic, political, legal, social, operating, financialU.S. Dodd-Frank Act, the EU Regulation 2017/821 on supply chain due diligence obligations for EU importers of gold originating from conflict-affected and geological risks.

AngloGold Ashanti may pursuehigh-risk areas, the acquisitionOECD Due Diligence Guidelines for Responsible Supply Chains of producing, developmentMinerals from Conflict-Affected and advanced stage exploration propertiesHigh-Risk Areas, the World Gold Council Conflict-Free Gold Standard and companies.the London Bullion Market Association Responsible Gold Guidance have been introduced. Any such acquisitionlegislation and standards may result in significant costs to ensure and demonstrate compliance (particularly where standards change rapidly or lack certainty due to court challenges) and may complicate the scalesale of gold emanating from certain areas. The complexities of the company’s businessgold supply chain, especially as they relate to “scrap” or recycled gold, and operationsthe fragmented and may expose it to new geographic, geological, political, social, operating, financial, legal, regulatoryoften unregulated supply of artisanal and contractual risks. For example,small-scale mined gold are such that there may be a significant changeuncertainties at each stage in commodity prices after the company has committedchain as to complete the transaction and established the purchase price or share exchange ratio; a material ore body may prove below expectations; AngloGold Ashanti may have difficulty integrating and assimilating the operations and personnel of any acquired companies, realising anticipated synergies and maximising the financial and strategic positionprovenance of the combined enterprise, and maintaining uniform standards, policies and controls; the integration may disrupt the company’s ongoing business and its relationships with employees, suppliers and contractors; and the acquisition may divert management’s attention from AngloGold Ashanti’s day-to-day business. Furthermore, the company operates and acquires businesses in different countries, with different regulatory and operating cultures, which may exacerbate the risks described above. In addition, the acquired business may have undetected liabilities which may be significant.



In the event that the company chooses to raise debt capital to finance any acquisition, the company’s leverage will be increased. Should the company choose to use equity as consideration for an acquisition, existing shareholders may suffer dilution. Alternatively, the company may choose to finance any acquisition with its existing resources, which could decrease its ability to fund future capital expenditures.

The company may not be successful in overcoming these risks or any other problems encountered in connection with acquisitions. Failure by AngloGold Ashanti to implement its acquisition strategy or to integrate acquired businesses successfully could have material adverse effects on its growth, financial performance and results of operations.

Ageing infrastructure at some of AngloGold Ashanti’s operations could adversely impact its business.

Deep level gold mining shafts are usually designed with a lifespan of 25 to 30 years.  Vertical shafts consist of large quantities of infrastructure steelwork for guiding conveyances and accommodating services such as high and low tension electric cables, air and water pipe columns.  Rising temperatures in the deeper mining areas can also lead to increased cooling requirements in the form of upgraded and expanded ice plants.  Maintaining this infrastructure requires skilled human resources, capital allocation, management and planned maintenance.  Once a shaft has reached the end of its intended lifespan, increased maintenance and care is required.  Incidents resulting in production delays, increased costs or industrial accidents may occur.  Such incidents may have an adverse effect on the company’s results of operations and financial condition.

Asset integrity and reliability issues relating to ageing infrastructure are of concern at many of the company's operations, but are of particular concern in South Africa.  Furthermore in Tanzania, cracks were discovered in the mill feed end in September 2008 and at the discharge end in February 2010 at the Geita gold mine.  The Geita gold mine is one of the group’s principal assets and sources of cash flow.  After initial repairs, the feed end was replaced during May and June 2011.  Production throughput in 2011 was one million tonnes lower than planned, asgold. As a result of mill downtime that included feed end replacement.  The Geita gold mine produced approximately 531,000 ouncesthe uncertainties in 2012, with production throughput approximately 100,000 tonnes shortthe process, the costs of budget.  A decision was subsequently taken to replacedue diligence and audit, or the entire millreputational risks of defining their product or a constituent part as



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containing a result of shell distortion.  After new mill manufacture delays, installation was completed during March 2013. Ageing infrastructure“conflict mineral” may have an adverse effect onbe too burdensome for the company’s results of operations and financial condition in the future.

AngloGold Ashanti doescustomers. Accordingly, manufacturers may decide to switch supply sources or to substitute gold with other minerals not have full management control over some of its significant joint venture projects and other interests. If the operators of these projects do not manage these effectively and efficiently, the company’s investment in these projects could be adversely affected and its reputation could be harmed.

AngloGold Ashanti’s joint ventures at Morila in Mali and at Kibali in the DRC are managedcovered by the company’s joint venture partner Barrick Gold Corporation (Barrick) following the completion of the merger between Randgold Resources Limited and Barrick in January 2019. In addition, certain of AngloGold Ashanti’s exploration ventures are managed by the relevant joint venture partner.

Whilst AngloGold Ashanti provides strategic management and operational advice to its joint venture partners in respect of these projects, the company cannot ensure that these projects are operated in compliance with the standards that AngloGold Ashanti applies to its other operations. If these joint ventures are not operated effectively or efficiently, including as a result of weaknesses in the policies, procedures and controls implemented by the joint venture partners, the company’s investment in the relevant project could be adversely affected. In addition, negative publicity associated with operations that are ineffective or inefficiently operated, particularly relating to any resulting accidents or environmental incidents, could harm the company’s reputation and therefore its prospects and potentially its financial condition. Furthermore, any failure of joint venture partners to meet their obligations to AngloGold Ashanti or to third parties, or any disputes with respect to the parties’ respective rights and obligations,initiatives. This could have a material adversenegative impact on AngloGold Ashanti’s results of operations and financial condition. In particular, the company and Barrick retain equal representation, with neither party holding a deciding vote, on the board of the two companies that have overall management control of the Morila project in Mali and the Kibali project in the DRC, respectively, and all major management decisions for each of these two projects,gold industry, including approval of the budget, require board approval. If a dispute arises between the company and Barrick with respect to the Kibali or Morila project and the parties are unable to amicably resolve such dispute, it may be difficult for the parties to make strategic decisions relating to the project affected by such dispute, the day-to-day operations and the development of such project may be adversely affected and the company may have to participate in proceedings to resolve the dispute, which could adversely affect the company’s results of operations and financial condition.

AngloGold Ashanti’s joint venture partners may have economic or business interests or goals that are not consistent with the company’s or may, as a result of financial or other difficulties, be unable or unwilling to fulfill their obligations under the joint venture or other agreements. Disputes between the company and its joint venture partners may lead to legal action, including litigation between AngloGold Ashanti and its joint venture partners. Such disputes could adversely affect the operation of the joint venture, may prevent the realisation of the joint ventures’ goals and could adversely affect AngloGold Ashanti's investment in the joint venture or harm the company's reputation. There is no assurance that the company’s joint venture partners will continue their relationship with the company in the future or that the company will be able to achieve its financial or strategic objectives relating to the joint ventures.




The prevalence of occupational health diseases and other diseases and the potential costs and liabilities related thereto may have an adverse effect on the business and results of operations of AngloGold Ashanti.

The primary areas of focus in respect of occupational health of employees within the company’s operations are noise-induced hearing loss and occupational lung diseases (OLD), which include pulmonary diseases such as tuberculosis from various causes and silicosis in individuals exposed to silica dust. These risks require active dust management strategies in underground operations, particularly in South Africa where a significant number of silicosis cases by current and former employees alleging past exposures are still reported each year to the board for statutory compensation. AngloGold Ashanti provides occupational health services to its employees at its occupational health centres and clinics and runs preventative occupational hygiene initiatives, such as implementing various dust control measures and supplying the company’s employees with respiratory protection equipment. If the costs associated with providing such occupational health services, implementing such dust control measures or supplying such equipment increase significantly beyond anticipated or budgeted amounts, this could have an adverse effect on AngloGold Ashanti’s results of operations and financial condition. Actual and alleged health and safety incidents or breaches of standards may also adversely impact the company’s reputation.

In South Africa, AngloGold Ashanti has been subject to numerous claims, including class action litigation with respect to alleged OLD with two certified industry-wide classes, i.e. a Silicosis Class and a Tuberculosis Class. See “-AngloGold Ashanti is subject to the risk of litigation, the causes and costs of which are not always known”. In South Africa, settlement of the consolidated class action litigation was reached on 3 May 2018, after three years of extensive negotiations between the OLD Working Group companies and the lawyers of the claimants’. On 13 December 2018, the High Court in Johannesburg issued a Court order setting out the process of how members of the settling classes and any interested parties can object to the proposed settlement. In the coming months, the High Court is scheduled to hold a hearing during which the Court will consider arguments by the parties to the settlement as well as arguments by other interested parties who are granted leave by the Court to participate, including parties filing objections to the proposed settlement. The purpose of this second hearing is to determine the fairness and reasonableness of the settlement. If the settlement is approved by the Court and all its other conditions are met, a trust (Tshiamiso Trust) will be established and will exist for a minimum of 13 years. Eligible claimants will be able to seek specified payment from the Tshiamiso Trust and the amount of monetary compensation will vary depending on the nature and seriousness of the disease. As of 31 December 2018, AngloGold Ashanti has recorded a provision of $63 million to cover the estimated settlement costs and related expenditure of the silicosis litigation. The final settlement costs and related expenditure may be higher than the recorded provision depending on various factors, such as, among other things, potential changes in the proposed settlement terms, differences in the number and profile of eligible claimants actually compensated compared to current estimates and fluctuations in foreign exchange rates. See “Item 8A: Legal Proceedings-South Africa” and “Item 18: Financial Statements-Note 33-Contractual Commitments and Contingencies”. The terms of any final settlement may have a material adverse effect on AngloGold Ashanti’s financial condition.

In response to the effects of silicosis in labour-sending communities, a number of mining companies (under the auspices of the Minerals Council South Africa (the former Chamber of Mines of South Africa)) together with the National Union of Mine Workers (NUM), which is the largest union in the mining sector in South Africa, and the national and regional departments of health, have embarked on a project to assist in delivering compensation and relief by mining companies under the Occupational Diseases in Mines and Works Act, No. 78 of 1973 (as amended) to affected communities.

AngloGold Ashanti also faces certain risks in dealing with HIV/AIDS, particularly at its South African operations, and with tropical disease outbreaks such as malaria, and other diseases which may have an adverse effect on the company’s results of operations and financial condition. AIDS and associated diseases remain one of the major health care challenges faced by AngloGold Ashanti’s South African operations. Workforce prevalence studies indicate that HIV prevalence rates amongst AngloGold Ashanti’s South African workforce may be as high as 30 percent.

Malaria and other tropical diseases pose significant health risks at all of the company’s operations in Central, West and East Africa where such diseases may assume epidemic proportions because of ineffective national control programmes. Malaria is a major cause of death in young children and pregnant women in these areas but also gives rise to fatalities and absenteeism in adult men. Other conditions such as heart disease, chronic diseases and obesity are of increasing incidence and concern.

Such diseases impair the health of workers and negatively affect productivity and profitability as a result of workers’ diminished focus or skill, absenteeism, treatment costs and allocated resources. Any current or future medical programme may not be successful in preventing or reducing the infection rate amongst AngloGold Ashanti’s employees or in affecting consequent illness or mortality rates. AngloGold Ashanti may incur significant costs in addressing these issues in the future, which could also adversely impact the company’s results of operations and financial condition.

The costs and impacts associated with the pumping of water inflows from closed mines adjacent to the company’s operations could have an adverse effect on its results of operations.

Certain of AngloGold Ashanti’s mining operations are located adjacent to the mining operations of other mining companies.  The closure of a mining operation may have an impact upon continued operations at the adjacent mine if appropriate preventative steps are not taken, including the ingress of underground water when pumping operations at the adjacent closed mine are suspended.  Such ingress could have an adverse effect on any one of the company’s mining operations as a result of property damage, disruption to operations, additional pollution liabilities and pumping costs and, consequently, could have an adverse impact on its results of

operations and financial condition. For example, in the West Wits district, Blyvooruitzicht Gold Mining Company Limited was placed in provisional liquidation in August 2013. AngloGold Ashanti secured a court order for access rights to Blyvooruitzicht 4 and 6 shafts to keep pumping going in terms of a registered servitude.  AngloGold Ashanti also incorporated Covalent Water Company, which purchased rights of access and electricity to the 4 and 6 shafts as well as the relevant infrastructure, to continue pumping underground water. This has reduced the risk of flooding at the company’s West Wits operations (Mponeng mine), but flooding in the future could pose an unpredicted “force majeure” type event, which could have an adverse impact on its results of operations and financial condition. Additional infrastructure is being installed at Covalent Water Company 4 Shaft in the B2 decline to mitigate risk and allow pumping closer to source.

The potential costs associated with the remediation and prevention of groundwater contamination from the company’s operations or due to flooding from closed mines adjacent to the company’s operations could have a material adverse effect on AngloGold Ashanti’s results of operations and financial condition.


AngloGold Ashanti has identified groundwater contamination plumes at certain of its operations that have occurred primarily as a result of seepage from surface operations and facilities, including tailings storage facilities and waste rock piles.

In addition, deep groundwater contamination is a significant issue in South Africa, where groundwater in some older mining regions has infiltrated mined-out workings. Potential contamination risk to shallow ground and surface water resources can occur when water is exposed to sulphide-bearing rock in such situations. AngloGold Ashanti has identified a flooding and future pollution risk posed by deep groundwater in the Far West Rand goldfields. AngloGold Ashanti’s West Wits operations are part of the Far West Rand goldfields. As a result of the interconnected nature of underground mining operations in South Africa, any proposed solution for deep groundwater contamination needs to be a combined one supported by all the companies owning mines located in these goldfields.

The potential costs of remediation and prevention of groundwater contamination at AngloGold Ashanti’s operations are subject to various climate change-related physical risks which may adversely impact its production activities, mine sites and personnel and/or result in resource shortages or environmental damages.

AngloGold Ashanti’s operations are exposed to a number of physical risks resulting from climate change, such as changes in rainfall rates or patterns leading to increased water stress or floods, rising sea levels, higher temperatures, fires and severe weather events such as tropical cyclones. These events or conditions could disrupt its mining, transport and supply chain operations, mineral processing and environmental rehabilitation efforts, create resource or energy shortages, damage the company’s property or equipment and increase on-site health and safety risks due to, for example, erosion and geotechnical instability. For example, in January 2022, the state of Minas Gerais in Brazil was impacted by heavy rains, which resulted in 145 municipalities declaring an emergency. Thousands of people were forced out of their homes and evacuated from the affected areas, and more than 120 roads were blocked. The impacts were particularly severe in several of the cities where AngloGold Ashanti operates and where its employees reside (namely Sabará, Nova Lima, Raposos, Santa Bárbara, Barão de Cocais and Caeté), which resulted in the operations at Córrego do Sítio being temporarily partially stopped. Certain operations will not be fully restarted until later in 2022. Extreme rainfall events are also an increasingly significant risk for AngloGold Ashanti’s Australian operations. A significant increase in rainfall has the potential to adversely impact normal TSF operating procedures as well AngloGold Ashanti’s ability to operate processing plants in the event it is unable to discharge process water due to insufficient capacity in the receiving TSF pool. In contrast, increasing water stress at some of AngloGold Ashanti’s operations in Africa could, in the future, negatively impact the company’s ability to successfully implement its environmental rehabilitation programmes and/or to suppress dust from its operations. These events or conditions also could have adverse effects on AngloGold Ashanti’s workforce and on the communities around its mines, such as an increased risk of food insecurity, drinking water scarcity, access to power and prevalence of disease.

In 2020, AngloGold Ashanti completed climate change-related physical risk assessments for all of its operated assets as well as the Quebradona project. While the assessments indicated that many of the identified physical climate risks were already included in the risk management strategy for these sites, AngloGold Ashanti may not have identified all potential risks or all the potential impacts of such risks. Events or conditions that are catastrophic, or are otherwise not adequately addressed by AngloGold Ashanti’s adaptation and risk management strategies, could have a material adverse impact on AngloGold Ashanti’s results of operations and financial condition.

The occurrence of events for which AngloGold Ashanti is not insured or for which its insurance is inadequate may adversely affect cash flows and overall profitability.

AngloGold Ashanti maintains insurance to protect against events which could have a significant adverse effect on its operations and profitability. This insurance is maintained in amounts that the company believes to be reasonable depending upon the circumstances surrounding each identified risk. However, damage and third-party claims arising from catastrophic events may exceed the limit of liability covered under these insurance policies. Furthermore, AngloGold Ashanti’s insurance does not cover all potential risks associated with its business and may exclude certain parts of its business. AngloGold Ashanti may elect not to insure certain risks due to the high premiums or for various other reasons, including an assessment that the risks are remote.

In order to mitigate the cost of its insurance program, AngloGold Ashanti may in some instances retain a portion of the financial loss associated with an insurable event. These financial losses could be significant and could have an adverse effect on its financial condition.

Insurance for certain risks in particular, such as loss of title to mineral property, political risks in certain jurisdictions, environmental pollution, or other hazards resulting from exploration and production is not generally available to mining companies on acceptable terms. The availability and cost of insurance coverage can vary considerably from year to year as a result of events beyond the company’s control or as a result of previous claims. This can result in higher premiums and periodically being unable to maintain the levels or types of insurance the company typically carries.

The failure to obtain adequate insurance could impair the company’s ability to continue to operate in the normal course of its business. This could adversely impact its cash flows,activities, assets, results of operations and financial condition.


Compliance with emerging climate change-related requirements, including stricter regulations and the potential imposition of carbon taxes or emissions cap-and-trading schemes or the elimination of related subsidies, that are expected to be part of any transition to a lower-carbon economy, could result in significant additional costs and expose AngloGold Ashanti to additional liabilities.

Greenhouse gases (“GHGs”) are emitted directly by AngloGold Ashanti’s operations as well as by external utilities from which AngloGold Ashanti purchases electricity. As a result of commitments made at the UN Climate Change Conference in Durban, South Africa, in December 2011, certain members of the international community negotiated a treaty at the Conference of the Parties of the UN Framework Convention on Climate Change in Paris in December 2015 (the “Paris Agreement”). The implementationParis Agreement, which came into force in November 2016, requires developed countries to set targets for GHG emissions reductions. In order to meet national reductions commitments, including a goal of an integrated Enterprise Resource Planning (ERP) system“net zero” carbon or carbon neutrality by 2050 set by numerous jurisdictions, it is likely that additional measures addressing GHG emissions, including stricter GHG emissions limits and/or some form of carbon pricing, will be implemented in various countries in the future. In 2021, AngloGold Ashanti committed to the International Council on Mining & Metals (“ICMM”) target of achieving net zero Scope 1 and Scope 2 GHG emissions by 2050, and, in partnership with value chain partners, to set Scope 3 GHG reduction targets, if not by the end of 2023, as soon as possible thereafter.

Carbon pricing refers to various initiatives that seek to internalise the social or environmental cost of carbon on industries by imposing taxes, cap-and-trade schemes and/or elimination of free credits for carbon emissions. As governments continue to set aggressive decarbonisation targets to meet the commitments made as a result of the Paris Agreement, carbon pricing systems are likely to be implemented in a number of jurisdictions were AngloGold Ashanti operates. Such measures could require AngloGold Ashanti to reduce its direct GHG emissions or energy use or to incur significant costs for GHG emissions allowances or taxes, including as a result of costs or taxes passed on by electricity utilities which supply the company’s operations. AngloGold Ashanti could also incur significant costs associated with capital equipment to reduce GHG emissions, as well as GHG monitoring and reporting and other obligations to comply with applicable requirements. Such measures could drive up the costs of capital goods, energy and other utility costs that are critical inputs to the company’s mining operations. Certain countries, including Australia and Brazil, have passed or are considering GHG trading or tax schemes and/or other regulation of GHG emissions, although the precise impact on AngloGold Ashanti’s operations cannot yet be determined.

AngloGold Ashanti’s ability to implement changes to decarbonise its operations varies across its portfolio. For example, in Colombia, where the national electric grid is predominantly supplied by hydropower, future mining operations are expected to be



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significantly powered by renewable energy. In regions which rely more on fossil fuels for energy, such as the company’s mines in Australia and Tanzania, mandated GHG reductions and/or carbon pricing measures could have ana material adverse effect on AngloGold Ashanti’s production activities, results of operations and financial condition. See also “Item 4B: Business Overview—Sustainability and Environmental, Social and Governance (“ESG”) Matters”.


While AngloGold Ashanti continues to implementbelieves that gold’s well-demonstrated roles as a single, global ERP systemrisk hedge and portfolio diversifier will continue to support all the operations that it manages. The oneERP projectinvestment demand for the Obuasi minegold, even in Ghana was approved in February 2018an environment of uncertainty and went live on 13 August 2018, on time and within budget. Following the completion of the post go-live support, the oneERP project was handed over to the support function. During the design phase, the time management system was evaluated and found to be inadequate to sustain the required information and processes to support the payroll implementation. A decision was taken to incorporate the time management system upgrade as part of the payroll project. The payroll project was re-scoped and baselined with a planned implementation date of April 2019. The only remaining site that is not included in the global oneERP system is the Sadiola mine in Mali. This will conclude the current oneERP implementation programme.

The implementation and operationalisation of an ERP system on a global basis is an inherently high-risk initiative due to the potential for implementation cost and time overruns. In addition, if AngloGold Ashanti experiences difficulties with the implementation and operation of the system, the company’s ability to report and manage technical and financial information could be compromised, which could have an adverse effect on the company’s results of operations and financial condition.


Any similar future problems with the implementation, operation or maintenance of the ERP system could have an adverse effect on the company’s financial condition.

Sales of large quantities of AngloGold Ashanti’s ordinary shares and American Depositary Shares (ADSs),heightened market volatility from climate change and the perception that these sales may occurtransition to a lower-carbon global economy, a sustained economic downturn or other dilution of the company’s equity, could adversely affect the prevailing market price of the company’s securities.

The bulk of AngloGold Ashanti’s shares are held by a relatively small number of investors.  Accordingdisruptions in certain industrial sectors where gold is integral to information available to the company, AngloGold Ashanti’s five largest shareholders beneficially owned 34.78 percentmanufacturing, including electronic devices such as phones, computers and the top 10 largest beneficially owned 46.37 percent of AngloGold Ashanti’s ordinary shares as at 31 December 2018.

Poor returns, soaring costs, higher capital expenditure, ill-conceived corporate activity, rising geopolitical and labour risk, a material decrease in the price of gold and low dividend yields from 2011 through 2015 have resulted in a change in market sentiment towards gold equities.  The market price of the company’s securities could fall if large quantities of ordinary shares or ADSs are sold in the public market, if there is divestment by certain types or groupings of investors, or if there is the perception in the marketplace that such sales could occur.  Subject to applicable securities laws, holders of the company’s ordinary shares or ADSs may decide to sell them at any time.  

The market price of the company’s ordinary shares or ADSs could also fall as a result of any future offerings AngloGold Ashanti makes of its ordinary shares, ADSs, or securities exchangeable or exercisable for the company’s ordinary shares or ADSs, or the perception in the marketplace that these offerings might occur.  AngloGold Ashanti may make such offerings, including offerings of additional ADS rights, share rights or similar securities, at any time or from time to time in the future and such offerings could adversely affect the prevailing market price of the company's securities.

Fluctuations in the exchange rate of currencies may reduce the market value of AngloGold Ashanti’s securities,global positioning systems as well as the market value of any dividends or distributions paid by the company.

AngloGold Ashanti has historically declared all dividends in South African rands. As a result, exchange rate movements may have affected the Australian dollar, the British pound, the Ghanaian cedi and the U.S. dollar value of these dividends, as well as of any other distributions paid by the relevant depositary to holders of the company’s securities.

Furthermore, AngloGold Ashanti’s Memorandum of Incorporation allows for dividends and distributions to be declared in any currency at the discretion of the board of directors or the company’s shareholders at a general meeting. If, and to the extent that, AngloGold Ashanti opts to declare dividends and distributions in U.S. dollars, exchange rate movements will not affect the U.S. dollar value of any dividends or distributions. Nevertheless, the value of any dividend or distribution in Australian dollars, Ghanaian cedis or South African rands will continue to be affected. If, and to the extent that, dividends and distributions are declared in South African rands in the future, exchange rate movements will continue to affect the Australian dollar, Ghanaian cedi and U.S. dollar value of these dividends and distributions. This mayjewellery, could reduce the value of the company’s securities to investors. Additionally, the market value of AngloGold Ashanti’s securities as expressed in Australian dollars, Ghanaian cedis, U.S. dollarsdemand for its product and, South African rands will continue to fluctuate in part as a result of foreign exchange fluctuations.

AngloGold Ashanti may not pay dividends or make similar payments to shareholders in the future.

AngloGold Ashanti pays cash dividends only if there are sufficient funds available for that purpose. Fund availability depends upon many factors, including the amount of cash available, taking into account AngloGold Ashanti’s capital expenditure on existing infrastructure and exploration and other projects. Additionally, under South African law, a company is entitled to pay a dividend or similar payment to its shareholders only if the company meets the solvency and liquidity tests set out in legislation and the company’s founding documents.

Given these factors, including the capital and investment needs of AngloGold Ashanti, and the board of directors’ discretion to declare a dividend (including the amount and timing thereof), cash dividends may not be paid in the future.

U.S. securities laws do not require AngloGold Ashanti to disclose as much information to investors as a U.S. issuer is required to disclose, and investors may receive less information about the company than they might otherwise receive from a comparable U.S. company.

AngloGold Ashanti is subject to the periodic reporting requirements of the SEC and the New York Stock Exchange that apply to “foreign private issuers”. The periodic disclosure required of foreign private issuers under applicable rules is more limited than the periodic disclosure required of U.S. issuers. For example, on 22 February 2016, AngloGold Ashanti announced that it would no longer voluntarily publish reviewed financial statements and analyses of operating and financial results for the quarters ended 31 March and 30 September each year. As a result of this transition to half-yearly reporting, investors will receive less information about AngloGold Ashanti than they have in years preceding that change. They will also receive less timely financial reports than they otherwise might receive from a comparable U.S. company or from certain of the company’s peers in the industry. This mayconsequently, have an adverse impact on investors’ abilitiesits production, financial condition and results of operations.

Increasing scrutiny and changing expectations from AngloGold Ashanti’s stakeholders, including communities, governments and NGOs as well as investors, lenders and other market participants, with respect to make decisionsAngloGold Ashanti’s ESG performance and policies may impose additional costs or expose AngloGold Ashanti to additional risks.

Companies across all industries are facing increasing scrutiny related to ESG issues, including their internal ESG policies and governance practices. Investor advocacy groups, certain institutional investors, investment funds, lenders and other market participants are increasingly focused on ESG-related matters and in recent years have placed increasing importance on the environmental and social costs and impact of their investments. The increased focus and activism related to ESG and similar matters may hinder access to capital, as investors and lenders may decide to reallocate capital or to not commit capital as a result of their assessment of a company’s ESG practices. In addition, host communities, as well as certain governmental and non-government actors, are increasingly focused on a company’s ability to operate in a sustainable manner and to mitigate related risks, as well as the public commitments and quantitative metrics used to demonstrate performance and track progress. For AngloGold Ashanti, this includes, in particular, the safe operation of its mines, mitigating its impact to local environments and affected communities and reducing GHG emissions in line with the company’s voluntary commitments. If AngloGold Ashanti’s performance fails to meet internal or adopted external ESG standards, or AngloGold Ashanti otherwise fails to satisfy stakeholder expectations with respect to its commitments and performance, regardless of whether there is a legal requirement to do so, such failure could result in reputational damage to and litigation against the company and its business, financial condition, and/or stock price could be materially and adversely affected.

In particular, AngloGold Ashanti faces increasing pressures from stakeholders, who are increasingly focused on climate change, to prioritise energy efficiency in its operations, reduce its carbon footprint and improve water and other resource consumption, as well as to be transparent about their investmenthow climate-related risks and opportunities are managed throughout the supply chain to foster and promote business resiliency, accountability and stakeholder value. AngloGold Ashanti has implemented numerous initiatives since 2008 to reduce its GHG emissions by installing new technology, such as heat pumps and underground cooling and water treatment systems, reducing power consumption and improving energy efficiency. AngloGold Ashanti has also made certain voluntary commitments to take future actions, including to achieve net zero Scope 1 and 2 GHG emissions by 2050 and, in partnership with value chain partners, to set Scope 3 GHG reduction targets, if not by the end of 2023, as soon as possible thereafter. AngloGold Ashanti.Ashanti continues to enhance its governance around climate-related risks and opportunities, including implementing the action plans of its Climate Change Strategy, which was approved by its board in November 2021. Nevertheless, AngloGold Ashanti may be required to implement even more stringent ESG practices or standards to meet the expectations of existing and future stakeholders and, if the company fails to achieve these objectives or to adhere to internal or adopted external standards, or is perceived to be insufficiently committed to addressing ESG concerns across all of its operations and activities, the company’s reputation and brand image could be damaged, it could lose the trust of its stakeholders (including governments, NGOs, investors, customers and employees) or be subject to litigation brought by those stakeholders, and its business, financial condition and results of operations could be adversely impacted.



AngloGold Ashanti’s inability to maintain an effective system of internal control over financial reporting may have an adverse effect on investors’ confidence in the reliability of its financial statements.


Internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of the company’sAngloGold Ashanti’s financial statements for external purposes in accordance with International Financial Reporting Standards (IFRS)(“IFRS”) as issued by the International AccountAccounting Standards Board (IASB)(“IASB”). Disclosure controls and procedures are designed to ensure that information required to be disclosed by a company in reports that it files or submits under the U.S. Securities Exchange Act of 1934, as amended (Exchange Act) is recorded, processed, summarizedsummarised and reported within the time periods specified in the rules and forms of the SEC. These disclosure controls and procedures include without limitation, controls and procedures designed to ensure that information required to be disclosed by the company in reports that it files or submits under the Exchange Act is accumulated and communicated to the company’s management, including its chief executive officer and chief financial officer, as appropriate to allow timely decisions regarding disclosure. AngloGold Ashanti has invested in resources to facilitate the documentation and analysis of its system of disclosure controls and its internal control over financial reporting. A control system, no matter how well designed and operated, can provide only reasonable, not absolute, assurance with respect to the reliability of financial reporting and financial statement preparation. If AngloGold Ashanti is unable to maintain an effective system of internal control over financial reporting, investors may lose confidence in the reliability of its financial statements and this may have an adverse impact on investors’ abilities to make decisions about their investment in AngloGold Ashanti. See “Item“Item 15: Controls and Procedures”Procedures”.






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Breaches in cybersecurity and violations of data protection laws may adversely impact or disrupt AngloGold Ashanti’s business.

AngloGold Ashanti maintains global information technology (“IT”) and communication networks and applications to support its business activities. AngloGold Ashanti outsources several information technologies functions and applications to third-party vendors and these engagements may have an impact on the overall cybersecurity position of the company. The primary company systems managed by third-party vendors include, but are not limited to, cloud infrastructure, data centre management, server/personal computing support, enterprise resource planning business applications, email and digital documents and the Cyber Security Operations Centre.

AngloGold Ashanti must continuously monitor the solutions implemented to support its global information technology and communication networks and applications to maintain a suitable and well-managed environment. There can be no assurance that these efforts will always be successful.

The sophistication and magnitude of cybersecurity incidents are increasing and include malicious software, attempts to gain unauthorised access to data and other electronic security and protected information breaches that could lead to production downtimes, operational delays, the compromising of confidential or otherwise protected information, destruction or corruption of data, other manipulation or improper use of AngloGold Ashanti’s systems and networks or financial losses from remedial actions. For example, in late 2020, a threat to the company’s computer systems was detected and neutralised within hours in connection with the SolarWinds supply chain compromise which affected over 18,000 companies. The systems affected were limited to network monitoring applications in Brazil which monitored certain technology systems across the local network. In addition, there was a notable increase in phishing campaigns linked to COVID-19 in the second half of 2020 which continued through the first half of 2021. A sharp increase in ransomware-related threats have also been recorded throughout the mining industry with several high-profile organisations experiencing disruptions.

Information technology security processes may not prevent future malicious actions, denial-of-service attacks, or fraud, which could result in the corruption of operating systems, theft of commercially sensitive data, misappropriation of funds and business and operational disruption. AngloGold Ashanti’s insurance program includes limited coverage for cyber-related crimes and incidents as part of the global insurance program, and material system breaches and failures could result in significant interruptions that could adversely affect AngloGold Ashanti’s operating results and reputation.

The interpretation and application of consumer and data protection laws in South Africa, the United States and elsewhere are evolving. It is possible that these laws may be interpreted and applied in a manner that is inconsistent with AngloGold Ashanti’s data practices. Complying with these various laws is essential and could cause the company to incur substantial costs or require it to change its business practices in a manner adverse to its business.

For example, the penalties for failure to comply with the South African Protection of Personal Information Act, No. 4 of 2013 (“POPIA”) are severe and may include an administrative fine of up to R10 million or imprisonment of up to ten years. The European General Data Protection Regulation (“GDPR”) may lead to administrative fines of up to €20 million or four percent of a company’s total worldwide annual turnover of the preceding financial year, whichever is higher. Also, the GDPR has a scope that extends beyond the borders of the EU and does not only affect EU operations.

U.S. securities laws do not require AngloGold Ashanti to disclose as much information to investors as a U.S. issuer is required to disclose, and investors may receive less information about the company than they might otherwise receive from a comparable U.S. company.

AngloGold Ashanti is subject to the periodic reporting requirements of the SEC and the New York Stock Exchange that apply to “foreign private issuers”. The periodic disclosure required of foreign private issuers under applicable rules is more limited than the periodic disclosure required of U.S. issuers. Accordingly, there may be less publicly available information concerning AngloGold Ashanti than there is for U.S. public companies. For example, in 2016, AngloGold Ashanti announced that it would no longer voluntarily publish reviewed financial statements and analyses of operating and financial results for the quarters ended 31 March and 30 September of each year. As a result of this transition to half-yearly reporting, investors will receive less information about AngloGold Ashanti than they had in years preceding that change. In addition, AngloGold Ashanti is not required to file periodic reports and financial statements with the SEC as frequently or as promptly as U.S. companies whose securities are registered under the U.S. Securities Exchange Act of 1934, as amended (the “Exchange Act”). As a result, investors will also receive less timely financial reports than they otherwise might receive from a comparable U.S. company or from certain of the company’s peers in the industry. This may have an adverse impact on investors’ abilities to make decisions about their investment in AngloGold Ashanti.






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ITEM 4: INFORMATION ON THE COMPANY




4A.HISTORY AND DEVELOPMENT OF THE COMPANY

4A.    HISTORY AND DEVELOPMENT OF THE COMPANY

GROUP INFORMATION


AngloGold Limited was formed in June 1998 with the consolidation of the gold mining interests of Anglo American plc. AngloGold Ashanti Limited, as the company exists today, was formed on 26 April 2004 following the business combination between AngloGold Limited and Ashanti Goldfields Company Limited.


CURRENT PROFILE


AngloGold Ashanti Limited, a company incorporated under the laws of the Republic of South Africa, is headquartered in Johannesburg, South Africa. The company (Registration number 1944/017354/06) was incorporated in the Republic of South Africa in 1944 under the name of Vaal Reefs Exploration and Mining Company Limited and operates under the South African Companies Act, No. 71 of 2008, as amended (the “SA Companies Act)Act”).


The Company’s legal and commercial name is AngloGold Ashanti Limited. Its registered office is at 76 Rahima Moosa Street, Newtown,112 Oxford Road, Houghton Estate, Johannesburg, 2198, South Africa, 2001.Africa. The general telephone number is +27 11 637 6000 and the internet address is
https://www.anglogoldashanti.com. No material on the AngloGold Ashanti website forms any part of, or is incorporated by reference into, this annual report on Form 20-F. References herein to the company’s website shall not be deemed to cause such incorporation.


While AngloGold Ashanti’s primary listing is on the Johannesburg Stock Exchange (JSE), the company is also listed on the New York Stock Exchange (NYSE), the Ghana Stock Exchange (GhSE) and the Australian Securities Exchange (ASX). Our agent for service of process in the United States is AngloGold Ashanti North America Inc., 4601 DTC Boulevard, Suite 550, Denver, CO 80237. The SECU.S. Securities and Exchange Commission (SEC) maintains ana public internet site that contains AngloGold Ashanti’s filings with the SEC and reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC (http://www.sec.gov).


HISTORY AND SIGNIFICANT DEVELOPMENTS


Below are highlights of key corporate activities from 1998:


1998
•Formation of AngloGold Limited through the consolidation of East Rand Gold and Uranium Company Limited; Eastvaal Gold Holdings Limited; Southvaal Holdings Limited; Free State Consolidated Gold Mines Limited; Elandsrand Gold Mining Company Limited; H.J. Joel Gold Mining Company Limited and Western Deep Levels Limited into a single, focused, independent gold mining company. Vaal Reefs Exploration and Mining Company Limited (Vaal Reefs), the vehicle for the consolidation, changed its name to AngloGold Limited and increased its authorised share capital, effective 30 March 1998.


1998-2004
•Expansion of AngloGold Limited’s operations outside of South Africa.


2004
•Conclusion of the business combination with Ashanti Goldfields Company Limited, at which time the company changed its name to AngloGold Ashanti Limited.


2007
•Sale by Anglo American plc of 69,100,000 ordinary shares of AngloGold Ashanti, thereby reducing Anglo American’s shareholding in AngloGold Ashanti from 41.7 percent to 16.6 percent.


2009
•Sale by Anglo American plc of its remaining shareholding in AngloGold Ashanti to Paulson & Co. Inc.


2010
•Elimination of AngloGold Ashanti’s hedge book, thereby gaining full exposure to spot gold prices.






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2012
•Acquisition of the remaining 50 percent interest in Serra Grande in Brazil for $215 million.
•Acquisition of 100 percent of First Uranium (Proprietary) Limited for $335 million.


2013
•Commission of two new gold projects -— Tropicana and Kibali -— in the second half of 2013.


2015
•Sale of the Cripple Creek & Victor gold mine in theColorado, USA for $819 million.


2017
•South Africa region restructured -— TauTona mine placed on orderly closure. Negotiations of the sales of Moab Khotsong and Kopanang mines.

2018
•Completion of the sales of the Moab Khotsong and Kopanang mines during 2017in South Africa for $300 million and $9 million, respectively.

2019
•Announcement of a review of divestment options for assets in South Africa, Mali and Argentina.

2020
•Sale of the remaining South African producing assets and related liabilities to Harmony for $200 million plus deferred consideration based on future production at the Mponeng mine.
•Completion of the sales of the Sadiola and Morila mines in Mali for cash proceeds of $25 million and $1 million, respectively.

2021
•Announcement of offer to purchase Corvus Gold Inc. (“Corvus”), in Nevada USA. Subsequent to year end, on 18 January 2022, AngloGold Ashanti announced the successful completion of the previously announced plan of arrangement with Corvus to acquire the transactions concluding on 28 February 2018.remaining 80.5% interest in Corvus for a cash consideration of $365m.


CAPITAL EXPENDITURE AND DIVESTITURES


For information concerning the company’s principal capital expenditures and divestitures currently in progress, including the distribution of these investments geographically and the method of financing, refer to “Item 4B: Business Overview-AngloGoldOverview—AngloGold Ashanti Global Operations: 2018”2021”, “Item 5A: Operating Results-Capital expenditure”Results—Comparison of capital expenditure in 2021, 2020 and 2019” and “Item 5B: Liquidity and Capital Resources”.



For information concerning the company’s divestitures, including the sale of the remaining South African producing assets and related liabilities announced on 12 February 2020 and completed on 30 September 2020, refer to “Item 5: Operating and Financial Review and Prospects—Overview”.
4B.BUSINESS OVERVIEW








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4B.    BUSINESS OVERVIEW

AngloGold Ashanti Limited (AngloGold Ashanti) is an independent, and internationalglobal gold mining company with a globally diverse high-quality portfolio of operations, projects and exploration activities across nine countries on four continents. While gold is our principal product, we also produce silver (Argentina) and sulphuric acid (Brazil) as by-products. We are developing two projects in Colombia, including the Quebradona mine that is expected to produce both gold and copper, and continuing exploration activities in the United States. The Company is headquartered in Johannesburg, South Africa. Measured by production, AngloGold Ashanti is the third largest gold mining company in the world.

Our business activities span the full spectrum of the mining value chain and take into account the impact of our activities on the varied and many communities and environments in which we operate.


PRODUCTS

AngloGold Ashanti’s main product is gold. Once mined, the gold ore is processed into doré (unrefined gold bars) on site and then dispatched to precious metals refineries for refining to a purity of at least 99.5%, in accordance with the standards of ‘good delivery’ as determined by the London Bullion Market Association (LBMA). This refined gold is then sold directly to bullion banks.


By-products of our gold mining operations, often a function of local geological characteristics, include silver in Argentina and sulphuric acid in Brazil. Following the sale of the Vaal River operations, effective 28 February 2018, which included the uranium producing unit, AngloGold Ashanti no longer produces uranium.


OPERATIONS


We have developed a high-quality, well-diversified asset portfolio, including production from ten operations in seven countries (Argentina, Australia, Brazil, Ghana, Guinea, the DRC and Tanzania) supported by greenfields projects in Colombia and the United States along with a focused global exploration programme. Our portfolio of 14 operations and three projects in ten countries, comprises long-life, relatively low-cost operating assets with differing ore body types, located in key gold-producing regions around the world.


Our operations and projects are grouped regionally as follows:


South •Africa (West Wits(DRC, Ghana, Guinea and Surface Operations)Tanzania);
Continental Africa (Democratic Republic of the Congo, Ghana, Guinea, Mali and Tanzania);
•Americas (Argentina and Brazil, and projects in Colombia)Colombia and the United States); and
Australasia•Australia (Australia).

Over the past five years, AngloGold Ashanti has transformed itself by increasing efficiencies and competitiveness, focusing on safety and sustainability performance, improving margins, containing operating and overhead costs and generating positive cash flows, in line with our strategic objectives.

Our organisationalnew operating model, designed and management structure aligns with global best practiceintroduced 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. The new operating model implementation will be completed in corporate governance. By using our human capital efficiently, group support functions cover planning and technical, strategy, sustainability, finance, human resources, legal and stakeholder relations. The planning and technical functions focus on identifying and managing opportunities, maintaining long-term optionality, and ensuring the optimal use of our intellectual capital through a range of activities that includes brownfields and greenfields exploration as well as innovative research focused on mining excellence.early 2022.


EXPLORATION


Our exploration programme is aimed at providing an organic growth pipeline to enable us to generatefocused on creating significant value over time.for the company’s stakeholders by providing long-term optionality and improving the quality of our asset portfolio.


Greenfields and brownfields exploration takes place in both established and new gold-producing regions through managed and non-managed joint ventures,arrangements, strategic alliances and wholly-owned ground holdings. AngloGold Ashanti’s discoveries include La Colosa, Gramalote and Quebradona (Nuevo Chaquiro) in Colombia.Colombia and Silicon in Nevada, USA.


GOLD MARKET AND JEWELLERY DEMAND


We have seen gold fulfilling its role as a haven in times of uncertainty and inflation. The final quarterongoing conflict in the Ukraine and negative real interest rates are also supportive for the gold market.

Gold is a long-term store of 2018 was not goodvalue 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 equity markets. Investors have had to contendgold rose 10% in 2021, with rising USincreases in most areas including central bank interest rates, a sharp slowdown in Eurozone business confidence, weaker Chinese growthbuying and rising geopolitical concerns (including Brexit, Italian politicsjewellery sales, as broader economic uncertainty and inflationary fears remained and consumer markets rebounded from poor sales during the ongoing trade conflict between the US and China). On the upside, over the quarter as a whole, government bonds lived up to their traditional role as the defensive element in a well-balanced portfolio.

Turning to the gold market, annual jewellery demand barely changed compared to 2017 and remained at 2,200 tonnes in 2018, after a three percent year-on-year drop in the fourth quarter of 2018 demand to 636.2 tonnes reversed the third quarter gains. China was the main engine of growth in 2018, despite witnessing a slowdown in the final quarter of 2018 as the trade war with the US and slowing economic growth rate weighed on demand. Economic hardship, relatively weak currencies and the after-effects of tax-changes affected Turkey and Middle Eastern markets to varying degrees.

Inflows into global gold-backed ETFs and similar products totalled 69 tonnes in 2018. This was 67 percent lower than the 206.4 tonnes of inflows in 2017. Even though sizable annual flows into European-listed funds of 96.8 tonnes drove growth in the sector, North American funds experienced heavy outflows for partfirst year of the year but reversed this trendpandemic in the final quarter2020.

Central banks are also a strong source of 2018. Global inflows of 112.4 tonnes during the fourth quarter of 2018 reversed the 104 tonnes of outflows from the previous quarter. Growth in the fourth

quarter of 2018 was split almost equally between US-listed and European-listed funds,demand, with inflows of 57.1 tonnes and 59.1 tonnes, respectively. For the first time since 2012, the value of total gold-backed ETF holdings finished 2018 above $100 billion, at $100.6 billion, according to the World Gold Council.

The official coin market saw annual demand surge 26 percent compared to 2017 to 236 tonnes, the second highest level on record - the previous high was 270.9 tonnes in 2013. Coin demand flourished in some countries where retail investor concerns around stock market volatility, currency weakness and geopolitical uncertainty were common themes. Bar sales were steady at 781.6 tonnes and have been remarkably stablevolumes having increased steadily over the past five years with annualdecade.

Historically, gold jewellery has been the strongest source of demand, anchored between a lowaccounting for around 50% of 780 tonnes in 2014total demand. In 2021, jewellery demand rose by 52%, recovering from losses sustained during 2020. The largest gold jewellery markets are India and a high of 797 tonnes in 2016.

China.
Central bank net purchases reached 651.5 tonnes in 2018, 74 percent higher year-on-year. This is the highest level of annual net purchases since the suspension of dollar convertibility into gold in 1971 (Bretton Woods), and the second highest annual total on record. Central Banks now hold nearly 34,000 tonnes of gold. Heightened geopolitical and economic uncertainty throughout the year increasingly drove central banks to diversify their reserves and re-focus their attention on the principal objective of investing in safe and liquid assets.

Gold mine production totalled 854.1 tonnes in the fourth quarter of 2018, two percent lower quarter-on-quarter and one percent lower year-on-year. Over the year, gold mine production rose fractionally, up one percent to 3,346.9 tonnes. Although slowing in recent years, this is now the tenth year of annual growth and the highest level of annual mine output on record (previous record in 2017)For more information, see “Item 5A: Operating Results—Introduction”.


Net producer de-hedging was seen for a third consecutive quarter in the fourth quarter



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Table of 2018, with the global hedge book declining by a further 10 tonnes. On an annual basis, net producer de-hedging totalled 29.4 tonnes, following on from 27.9 tonnes of net de-hedging in 2017. At the end of 2018 the global hedge book stood at an estimated 195 tonnes, 13 percent lower year-on-year, continuing the general downward trend.Contents

The price of gold closed the fourth quarter of 2018 at $1,283 per ounce which was also the high for the quarter. It reached a low of $1,187 per ounce and averaged around $1,228 per ounce in the final quarter of 2018. The average price of gold sold for the year was recorded at $1,268 per ounce.

COMPETITION


As gold mining is a mature and regulated industry, and very significant volumes of gold and gold derivatives trade in the world markets independent of gold mine supply, AngloGold Ashanti does not consider that competition for sales plays any role in its operations as a gold producer. For more information on a geographical analysis of gold income by destination, refer to “Item 18: Financial Statements-Note 2-SegmentalStatements—Note 2—Segmental Information”.

However, gold producers do compete against each other for acquisition of mining assets, exploration opportunities and human resources. See “Item 3D: Risk Factors”Factors—AngloGold Ashanti faces strong competition and industry consolidation”.


SEASONALITY


Subject to other factors and unforeseen circumstances, in the first quarter one production is generally lower than production during the rest of the year as a result of the ramp-up of operations after annual holiday production declines.


RAW MATERIALS


AngloGold Ashanti uses chemicals, including cyanide and lime, in the production of gold. These chemicals are available from a large number of suppliers and do not represent a material portion of the company’s costs. We are not currently experiencing any supply shortages on critical consumables utilised in the production of gold across our global operations. In addition, our stocking strategies account for potential lead time variation and supply constraints, thus minimising the risk of changes in the marketplace. While commodity pricing is subject to volatility over time, our contractual terms limit future changes. However the war in Ukraine has caused significant disruption to financial and commodity markets. At 23 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 and copper advanced to its highest level ever. The higher cost for basic commodities used in our host countries and communities, and as key production inputs, could impact the costs of our raw materials. The impact on global supply chains from the conflict will become clearer over time.


STRATEGY


AngloGold Ashanti’s core strategic focusThe overall aim of our strategy is to generate sustainablesustained, improved cash flow improvementsflows and returns by focusing onover the longer term and, in so doing, to create and preserve value for all our stakeholders.

We have five key strategic focus areas namely: people, safetywhich guide decision-making and sustainability; ensuring financial flexibility; actively managing all expenditures; improving the qualityare aimed at generating increased cash flows; extending mine lives; creating an organic pipeline of economically viable orebodies; and enhancing our portfolio; and maintaining long-term optionality.licence to operate.


Strategic focus areas
AngloGold Ashanti’s five strategic focus areas are set out below:
Focus on people,•People, safety, health and sustainability. PeopleThis strategic focus area seeks to align our strategy with our values and corporate citizenship responsibilities, which includes being accountable for our actions and respecting all stakeholders and the environment. In support of this, ESG principles are the foundationintegrated into all aspects of our business. Our business must operate according to our values if it is to remain sustainable in the long term.
Promote financial•Financial flexibility. We must ensure our balance sheet always remains able to meet our core funding needs.
This requires sufficient liquidity in the form of cash and available credit facilities, staggered tenor of our debt maturities and leverage that is below our lending covenants.
•Optimise overhead costs and capital expenditure. All spending decisions must be thoroughly scrutinised to ensure they are optimally structured and necessary to fulfil our core business objective.
•Improve portfolio quality. We have aOur asset portfolio of assets that must be actively managed to improve the overall mix of our production base as we strive for a competitive valuation as a business.

•Maintain long-term optionality. While we are focused on ensuringOur Mineral Resource and Mineral Reserve portfolio, our primary natural capital input, is essential to the most efficient day-to-day operationsuccessful 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 we must keep an eye on creating a competitive pipeline of long-term opportunities.
over time.


INTELLECTUAL PROPERTY


AngloGold Ashanti, as a group, is not dependent on intellectual property (including patents or licenses), industrial, commercial or financial contracts (including contracts with customers or suppliers) or new manufacturing processes for the conduct of its business as a whole.






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THE REGULATORY ENVIRONMENT ENABLING ANGLOGOLD ASHANTI TO MINE


AngloGold Ashanti’s rights to own and exploit OreMineral Reserve and deposits are governed by the laws and regulations of the jurisdictions in which these mineral properties lie.


AngloGold Ashanti is subject to a wide range of laws and regulations governing all aspects of its operations, including such areas as environmental protection, reclamation, exploration, development, production, taxes, immigration, labour standards and employment issues, occupational health, mine safety, toxic substances and wastes, securities and foreign corrupt practices. AngloGold Ashanti has made, and expects to make in the future, significant expenditures to comply with these laws and regulations. Non-compliance can result in violations and legal claims, as well as substantial fines, penalties, reputational damage and delays in day-to-day operations. Pending or proposed changes to existing laws and regulations, as well as any proposed or contemplated new laws or regulations could also have significant impacts on AngloGold Ashanti’s business and results of operations, the extent of which cannot always be predicted.


There are in some cases certain restrictions on AngloGold Ashanti’s ability to independently move assets out of certain countries in which it has operations, or transfer assets within the group, without the prior consent of the local government or minority shareholders involved. See “Item“Item 10D: Exchange Controls”controls” for details.


For more information on the risks and uncertainties associated with AngloGold Ashanti’s mining rights, see “Item“Item 3D: Risk Factors”Factors”, in particular the risk factors entitled “AngloGold Ashanti’s mining rights in the countries in which it operates could be altered, suspended or cancelled for a variety of reasons, including breaches in its obligations in respect of such mining rights”, “Failure to comply with laws, regulations, standards and contractual obligations, breaches in governance processes or fraud, bribery and corruption may lead to regulatory penalties, loss of licences or permits, negative effects on AngloGold Ashanti’s reported financial results, and adversely affect its reputation”, “Title to AngloGold Ashanti’s properties may be uncertain and subject to challenge”, “AngloGold Ashanti’s mineral deposits, OreMineral Reserve, and mining operations are located in countries where political, tax and economic laws and policies may change rapidly and unpredictably and such changes and policies may adversely affect both the terms of its mining concessions, as well as its ability to conduct operations in certain countries” and “AngloGold Ashanti’s OreMineral Reserve, deposits and mining operations are located in countries that face instability and security risks that may adversely affect both the terms of its mining concessions, as well as its ability to conduct operations in certain countries”.




SOUTH AFRICA


As part of the South African asset sale, AngloGold Ashanti Limited sold its remaining three mining rights in South Africa to Golden Core Trade and Invest (Pty) Ltd (“Golden Core”) and Harmony Gold Mining Company Limited pursuant to a sale agreement concluded on or about 12 February 2020, as amended and reinstated from time to time (the “SA Sale Agreement”). These mining rights relate to operations in the West Wits area.

General laws relating to mining

The MPRDA


The Mineral and Petroleum Resources Development Act, No. 28 of 2002 (MPRDA)(the “MPRDA”) came into effect on 1 May 2004. The objectives of the MPRDA are, amongst other things, to allow for state sovereignty over all mineral and petroleum resources in the country, to promote economic growth and the development of these resources and to expand opportunities for the historically disadvantaged. Another objective of the MPRDA isdisadvantaged and to ensure security of tenure for the respective operations concerning prospecting, exploration, mining and production. By virtue of the provisions of the MPRDA, the state ensures that holders of mining and prospecting rights contribute to the socioeconomic development of the areas in which they operate.

The Mineral and Petroleum Resources Development Amendment Act, No. 49 of 2008 (MPRDAA) was passed by Parliament in 2008 and(the “MPRDAA”) became effective on 7 June 2013. Its purpose is to amend the MPRDA in order to, amongst other things:

makeOn 23 April 2004, the Minister of Mineral Resources (Minister)and Energy (the “MRE Minister”) published, under the responsible authority for implementing the requirements of the National Environmental Management Act, No. 107 of 1998 (NEMA) and specific environmental legislation as they relate to prospecting, mining, exploration, production and related activities incidental thereto on the prospecting, mining, exploration or production area;
align the MPRDA with the NEMA in order to provide for one environmental management system;
remove ambiguities in certain definitions;
add functions to the Regional Mining Development and Environmental Committee;
amend transitional arrangements so as to further afford statutory protection to certain existing old order rights;and
provide for matters connected therewith.

When the MPRDAA came into effect on 7 June 2013, only selected provisions became effective immediately. The MPRDAA contains the following provisions, amongst others:


Environmental authorisations: Provides for a prohibition on any prospecting and mining, or conducting technical co-operation operations, reconnaissance operations or any incidental work without an environmental authorisation (since 7 December 2014), permit and at least 21 days’ written notice to the landowner or lawful occupier.
Historic residues: Provides that the definitions of “residue stockpile” and “residue deposit” now include an old order right. This provision is intended to make old order dumps subject to the MPRDA so that old order dumps which are part of a mining area covered by a new order mining right could only be treated by the holder of the new order rights. Old order dumps not covered by a new order mining right would be considered a residue deposit to which the Minister would have discretion to grant rights.
Applications: Provides that applicants for prospecting and mining rights must (since 7 December 2014) lodge an application for an environmental authorisation simultaneously with the application for rights. The Department of Mineral Resources (DMR) should no longer accept more than one application in respect of the same area and mineral.
Environmental regulation: Provides that the Minister is the responsible authority for implementing environmental provisions under NEMA as it relates to prospecting, mining, exploration, production or activities incidental thereto on a prospecting, mining, exploration or production area. An environmental authorisation issued by the Minister shall be a condition prior to the issuing of a permit or the granting of a right in terms of the MPRDA.
Closure certificates: Provides that previous holders of old order rights or previous owners of works that have ceased to exist remain responsible for any environmental liability untilMPRDA, the Minister issues a closure certificate.

On 27 December 2012, the Minister published the Draft Mineral and Petroleum Resources Development Bill, 2012 (2012 Bill) which soughtRegulations in order to amendimplement the MPRDA again and invited the mining industry and interested and affected parties to comment on it. In 2013, following a consultative process with the DMR, the State Law Advisors and the general public, the Portfolio Committee on Mineral Resources introduced an amended versionprovisions of the 2012 Bill (2013 Bill) to the South African Parliament.

The 2013 Bill seeks to amend the MPRDA and MPRDAA, to, amongst other things:

remove ambiguities;
provide for regulation of associated minerals, partitioning of rights, and enhanced provisions on mineral beneficiation;
promote national energy security;
streamline administrative processes; and
enhance sanctions.

The 2013 Bill, as currently drafted, contains, amongst others, the following provisions:

Applications: The 2013 Bill proposes revising the application system by replacing the “first come, first served” system with a tender and allocation system. This would dramatically affect the way applications are made.
Beneficiation: The 2013 Bill extends the concept of beneficiation (which has been defined in the 2013 Bill as “transformation, value addition or downstream beneficiation of a mineral or mineral product (or a combination of minerals) to a higher value product, over baselines to be determined by the Minister, which can either be consumed locally or exported”) and would allow the Minister to prescribe the quantities, qualities and timelines at which certain designated commodities must be supplied to local beneficiators at a mine gate price or an agreed price. The reference to the mine gate price appears to suggest companies can recover costs, capital expenditure and make a profit. It is not clear whether the “agreed price” will have general application or whether it will be determined on a case-by-case basis. Another proposed amendment provides that written consent would have to be obtained before exporting of “designated minerals” if the producer or associated company has not offered minerals to local beneficiators. The Minister would have discretion to decide which minerals are to be designated.
Residue stockpiles: The MPRDAA’s inclusion of residue deposits and residue stockpiles in the definition of land, creating a “statutory accession” of movable dumps back to the land, is discussed above. The 2013 Bill would extend this definition to include historic mines and dumps created before theMPRDAA. These implementation of the MPRDA. The 2013 Bill also seeks to make these historic dumps subject to a mining right issued under the MPRDA. There is a transition period of two years to enable owners of these dumps to either apply for mining rights or incorporate them in existing mining rights.
Partitioning of rights and transfers of interests in companies: Section 11 of the MPRDA currently requires that transfer of a controlling interest in an unlisted company be consented to by the Minister. The 2013 Bill proposes amending the MPRDA so that transfer of a controlling interest in listed companies and transfer of any interest in unlisted companies must be consented to by the Minister. The 2013 Bill further proposes amending the MPRDA to allow for an application for ministerial consent to be made to transfer a part of a right.
Mine closure: The 2013 Bill provides for two major changes to mine closure under the MPRDA. Firstly, the MPRDA would beregulations were amended so that a mining company could still incur environmental liability even after obtaining a closure certificate relative to a mine. Secondly, any portion of the financial provision paid in terms of section 41 of the MPRDA may be retained by the Minister for latent and residual environmental impacts which may become known in the future for such time period as the Minister may determine, having regard to the circumstances relating to the relevant operation, which portion and time period must be determined in the prescribed manner.
Penalties: The 2013 Bill also provides for revised penalties for violations of the MPRDA by making provision for both an administrative fine not exceeding 10 per cent of the person or holder’s annual turnover and exports during the preceding year, and imprisonment not exceeding four years.

Legislative force of the Charter and Codes: The 2013 Bill proposes amending the definition of “this Act” in the MPRDA so that the MPRDA will include the 2010 Mining Charter (defined below), the Code of Good Practice for the South African Mineral Industry and the Housing and Living Conditions Standard. This would give these documents the force of law.

The 2013 Bill was passed by the National Assembly on 12 March 2014 and passed by the National Council of Provinces (NCOP) on 27 March 2014. 2020.

The 2013 Bill was then sent tomining charter

Since 2004, a series of mining charters have been adopted in South Africa with the Presidentmain purpose of transferring part of the Republic of South Africa (President) for assent. On 16 January 2015, President Jacob Zuma, who was then in office, referred the 2013 Bill back to the National Assembly to accommodate his reservations around the constitutionality of the 2013 Bill. The 2013 Bill was considered by the Portfolio Committee on Mineral Resources who tabled non-substantial revisions to the 2013 Bill, which revisions were passed by the National Assembly and referred to the NCOP on 1 November 2016. On 22 August 2018, the Minister announced at a Portfolio Committee on Mineral Resources meeting that the 2013 Bill would be withdrawn and that the Minister would seek to introduce a new bill that would provide for the upstream petroleum industry to be governed under a separate piece of legislation from the MPRDA. It is currently unclear whether or not the Minister will seek to propose any of the amendments proposed in the 2013 Bill in a new bill.

The Mining Charter

The Broad-Based Socio-Economic Empowerment Charter for the South African Mining Industry, 2004 (Original Mining Charter) was published in August 2004. The Original Mining Charter was developed in terms of section 100(2)(a) of the MPRDA. The Original Mining Charter committed all stakeholders in the mining industry to transfer ownership of 26 percent of theirmining assets to black or historically disadvantaged South Africans also referred to in the MPRDA as historically disadvantaged persons (HDSAs)(“HDSAs”) within 10 years. The Original Mining Chartera certain time period. Such mining charters also set targets for, amongst other things, the advancement of HDSAs into management positions, the employment of women, procurement of goods and services from HDSA-owned companies, training, community development and the upgrading of mine housing. Mining companies are required to devise plans to achieve these targets, must identify current levels of beneficiation and must indicate opportunities for growth.

The objectives of the Original Mining Charter were to:

promote equitable access to the nation’s Mineral Resources by all the people of South Africa;
substantially and meaningfully expand opportunities for HDSAs, including women, to enter the mining and minerals industry and to benefit from the exploitation of the nation’s Mineral Resources;
use the industry’s existing skills base for the empowerment of HDSAs;
expand the skills base of HDSAs in order to serve the community;
promote employment and advance the social and economic welfare of mining communities and the major labour-sending areas; and
promote beneficiation of South Africa’s mineral commodities.

The Original Mining Charter envisaged measuring progress on transformation of ownership by:

taking into account, amongst other things, attributable units of production controlled by HDSAs;
allowing flexibility by credits or offsets, so that, for example, where HDSA participation exceeds any set target in a particular operation, the excess may be offset against shortfalls in another operation;
taking into account previous empowerment deals in determining credits and offsets; and
considering special incentives to encourage the retention by HDSAs of newly acquired equity for a reasonable period.

Under the Original Mining Charter, the mining industry as a whole agreed to assist HDSA companies in securing finance to fund participation in an amount of ZAR 100 billion over the first five years. Beyond the ZAR 100 billion commitment, HDSA participation was to be increased on a willing seller, willing buyer basis, at fair market value, where the mining companies are not at risk.
Following a review of the progress made regarding transformation in the mining industry against the Original Mining Charter objectives, the DMR amended the Original Mining Charter and the Amendment ofIn 2004, the Broad-Based Socio-Economic Empowerment Charter for the South African Mining and Minerals Industry, 2010 (2010 Mining Charter)2004 was published on 20and, in September 2010. The requirement under2018, the Original Mining Charter for mining entities to achieve a 26 percent HDSA ownership of mining assets by the year 2014 was retained. Amendments to the Original Mining Charter in the 2010 Mining Charter required mining companies to:

facilitate local beneficiation of mineral commodities;
procure a minimum of 40 percent of capital goods, 70 percent of services and 50 percent of consumer goods from HDSA suppliers (i.e., suppliers in which a minimum of 25 percent + one vote of share capital is owned by HDSAs) by 2014, these targets being, however, exclusive of non-discretionary procurement expenditure;
ensure that multinational suppliers of capital goods put a minimum of 0.5 percent of their annual income generated from South African mining companies into a social development fund beginning in 2010, to contribute to the socioeconomic development of South African communities;
achieve a minimum of 40 percent HDSA demographic representation by 2014 at executive management (board) level, senior management (EXCO) as well as in those positions requiring core and critical skills, middle management level and junior management level;
invest up to five percent of annual payroll in essential skills development activities; and

implement measures to improve the standards of housing and living conditions for mineworkers by converting or upgrading mineworkers’ hostels into family units, attaining an occupancy rate of one person per room and facilitating home ownership options for all mineworkers in consultation with organised labour, all of which must be achieved by 30 April 2014.

In addition, mining companies were required to monitor and evaluate their compliance with the 2010 Mining Charter, and to submit annual compliance reports to the DMR.

As a general matter, the South African government takes a “Scorecard” approach to the different facets of promoting the objectives of the applicable mining charter. It uses the Scorecard when considering applications for the conversion of existing old order rights into new order rights. The Scorecard sets out the requirements of the mining charter in tabular form which allows the DMR to “tick off” areas where a mining company is in compliance. It covers the following areas:

human resource development;
employment equity;
migrant labour;
mine community and rural development;
housing and living conditions;
ownership and joint ventures;
beneficiation; and
reporting.

The Scorecard attached to the 2010 Mining Charter made provision for a phased-in approach for compliance with the above targets over the five-year period ended on 30 April 2014. For measurement purposes, the Scorecard allocated various weightings to the different elements of the 2010 Mining Charter.
Failure to comply with the provisions of the 2010 Mining Charter amounted to a breach of the MPRDA, which may have resulted in the cancellation or suspension of AngloGold Ashanti’s existing mining rights and may have prevented AngloGold Ashanti’s South African operations from obtaining any new mining rights. However, AngloGold Ashanti has not yet received its “Scorecard” from the South African government assessing its compliance with the requirements of the 2010 Mining Charter.

In March 2015, the Minister announced that the DMR and the Minerals Council South Africa (Minerals Council) (the former Chamber of Mines of South Africa) had jointly agreed to submit certain matters relating to the interpretation of the 2010 Mining Charter, including the qualification of certain historical BBBEE transactions (defined below) for meeting the HDSA ownership thresholds, to the courts in South Africa for determination and clarification. Papers were filed by the Minerals Council and the DMR, but the matter was not heard in court and was subsequently postponed.

Separately, the law firm Malan Scholes launched an application challenging the constitutionality of the Original Mining Charter and the 2010 Mining Charter, and requesting that these charters be set aside. This application was dismissed.

On 9 March 2016, AngloGold Ashanti received a notice from the DMR stating that the company was not compliant with the 26 percent HDSA ownership requirement under the 2010 Mining Charter. The notice directed the company to remedy the non-compliance within 60 days. Failure to comply with the order could constitute an offence under the MPRDA and, as such, could negatively impact AGA’s “Scorecard” assessment. On 14 March 2016, AngloGold Ashanti timely responded to the non-compliance notice. The DMR provided no further response and, consequentially, the notice has lapsed.

On 15 June 2017, the Minister gazetted the Broad-Based Black Socio-Economic Empowerment Charter for the South African Mining and Minerals Industry, 2017 (20172018 (the “2018 Mining Charter), which came into effect onCharter”) was published, repealing all prior mining charters. In September 2021, the same day. The 2017High Court of South Africa (Gauteng Division) held that the 2018 Mining Charter soughtis a policy document and does not, per se, bind holders of mining titles. The High Court also set aside various provisions of the 2018 Mining Charter. In



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November 2021, the South African Department of Mineral Resources and Energy (“DMRE”) informed the parliamentary portfolio committee on mineral resources and energy that it does not intend to alignappeal the 2010 Mining Charter withoutcome of the judgement, but instead will consider steps to achieve the empowerment objectives through legislative amendments to the MPRDA.

The B-BBEE Act

The Broad-Based Black Economic Empowerment Act, No. 53 of 2003 (the “B-BBEE Act”) is a law of general application in orderrespect of Broad-Based Black Economic Empowerment (“B-BBEE”) and enables the Minister of Trade and Industry to ensure meaningful participation of black people and provide for policy and regulatory certainty to ease the investment in and the developmentdrive B-BBEE across all sectors of the mining industry. The Minerals Council launched an urgent application to interdicteconomy. In 2014, the implementationBroad-Based Black Economic Empowerment Amendment Act, No. 46 of the 2017 Mining Charter and set it aside (DMR/Minerals Council application). The DMR also filed papers in court and the urgent application was due to be heard in court on 14 September 2017. However, the Minister and the Minerals Council reached an agreement on 13 September 2017 wherein the Minister undertook to suspend the 2017 Mining Charter pending the outcome of the DMR/Minerals Council application.

The DMR/Minerals Council application was heard on 9 and 10 November 2017 and judgment was handed down in the matter on 4 April 2018. The High Court of South Africa held that:

Once the Minister or his delegate is satisfied in terms of section 23(1)(h) of the MPRDA that the grant of a mining right applied for in terms of section 22 of the MPRDA will further the objects referred to in section 2(d) and (f) of the MPRDA in accordance with “the Charter referred to in section 100 and has granted the mining right applied for, the holder thereof is not thereafter legally obliged to restore the percentage ownership (howsoever measured, inter alia wholly or partially by attributable units of South African production) controlled by HDSAs to the 26 percent target referred in the Original Mining Charter and the 2010

Mining Charter , where such percentage falls below 26 percent, unless such obligation is specified as an obligation in the terms and conditions stated in the right, as referred to in section 23(6) of the MPRDA.
Failure by a holder of the mining right to meet the 26 percent ownership target (either in terms of the Original Mining Charter or the 2010 Mining Charter) does not amount to a material breach of the mining right for the purposes of section 47 of the MPRDA (i.e., it will not be a ground for suspension or cancellation of the mining right) nor does it constitute an offence in terms of section 98 of the MPRDA. This, however, does not apply where the terms and conditions of the right itself have stipulated that the 26 percent HDSA ownership must be retained.
If the 26 percent HDSA ownership participation has, for any reason, been diluted to a lesser percentage, there is no obligation to top this up once the holder of the mining right has initially achieved the 26 percent HDSA ownership participation requirement. This does not apply where the terms and conditions of the right itself have stipulated that the 26 percent HDSA ownership must be retained.
The 2010 Mining Charter does not retrospectively deprive holders of mining rights of the benefits of credit offsets, the continuing consequences of empowerment transactions concluded after the MPRDA2013 (the “B-BBEE Amendment Act”) came into effect, amending the B-BBEE Act to provide a framework of principles, strategies and guidelines aimed at promoting the right to off-set credits achieved in one operation against any shortfalls encountered in another operation.
While the High Court did not make any pronouncements on the validitybroad-based socio-economic empowerment of the 2010 Mining Charter, this should not be taken as a confirmation that the 2010 Mining Charter was validly issued in terms of section 100(2) of the MPRDA or that “it is the charter contemplated in section 100” of the MPRDA.

On 19 April 2018, the DMR filed a notice of intention to appeal the High Court judgment, but the matter has not been progressed by the DMR since the filing of the notice. As a result of the recent adoption of the 2018 Mining Charter (defined below), the 2017 Mining Charter has been repealed by the DMR. Since the High Court judgment recognizes the “once empowered, always empowered”-principle (albeit to a limited degree), the Minerals Council has the option to seek to oppose an appeal against the High Court judgment should the DMR progress the appeal.

On 27 September 2018, the Broad-Based Socio-Economic Empowerment Charter forHDSAs across the South African Miningeconomy and Minerals Industry, 2018 (2018 Mining Charter) was published and became effective on that date. The 2018 Mining Charter stipulates that it should be read together with the Implementation Guidelines, which were gazetted on 19 December 2018. On 19 December 2018, a few amendments to the 2018 Mining Charter were publishedsociety in the Government Gazette.

Someform of the salient provisions of the 2018 Mining Charter include:

The 2018 Mining Charter applies to existing mining rights, pending mining right applications and new mining rights as provided for therein.
A new mining right must have a minimum of 30 percent Black Economic Empowerment (BEE) shareholding, which shall include economic interest plus corresponding percentage of voting rights per mining right or in the mining company which holds the mining right. The 30 percent BEE shareholding must be distributed in the following manner:
◦a minimum of five percent non-transferable carried interest to qualifying employees;
◦a minimum of five percent non-transferable carried interest or “equity equivalent benefit” to host communities; and
◦a minimum of 20 percent effective ownership, in the form of shares to a BEE entrepreneur, five percent of which must preferably be for women.
Existing mining right holders who have achieved a minimum of 26 percent BEE shareholding shall be recognized as compliant for the duration of the mining right (including mining right holders whose BEE partner has since exited). However, the recognition of the “once empowered, always empowered”-principle shall not be applicable on the transfer, sale or renewal of the mining right. Existing right holders must implement the 2018 Mining Charter from 1 March 2019. Prior to this date, right holders must maintain compliance with the 2010 Mining Charter.
A pending mining right application, which was lodged and accepted prior to the effective date of the 2018 Mining Charter, shall be processed in accordance with the 2010 Mining Charter and shall thus require a minimum of 26 percent BEE shareholding. However, the mining right holder must then within a period of five years from the effective date of such mining right, increase the BEE shareholding to a minimum of 30 percent.
The 2018 Mining Charter reduced the offset available for beneficiation from 11 percent to five percent, but on the basis that existing mining right holders, who qualified for the previous offset, would be allowed to retain it for the duration of the right. Right holders must submit a Beneficiation Equity Equivalent Plan (as outlined in the Implementation Guidelines) to the DMR for approval. Further, mining right holders must submit an annual progress report to the DMR, which report must be in line with the approved Beneficiation Equity Equivalent Plan.
Mining companies must have a minimum representation of HDSAs at various levels of the company: a minimum of 50 percent on the board (of which 20 percent women), 50 percent at the executive management, level (of which 20 percent women), 60 percent at the senior management level (of which 25 percent women), 60 percent at the middle management level (of which 25 percent women) and 70 percent at the junior management level (of which 30 percent women). Furthermore, a minimum of 60 percent of HDSAs must be represented in the mining right holder’s core and critical skills and a minimum of 1.5 percent of all employees must be employees with disabilities. A period of five years is provided for mining companies to align with the employment equity, targetsskills development, preferential procurement, enterprise development and a five-year plan indicating progressive implementation of the provisions of the employment equity targets must be submitted to the DMR within six months of the publication of the 2018 Mining Charter.
socio-economic development.
New procurement targets have also been introduced. With respect to mining goods, 70 percent of total mining goods procurement spend must be on South African manufactured goods. South African manufactured goods are defined as goods with a minimum

of 60 percent local content during the assembly or manufacturing of the product in South Africa (the calculation of local content excludes profit mark-up, intangible value such as brand value and overheads). With respect to mining services, a minimum of 80 percent of the total spend on services must be sourced from South African companies. The transitional arrangement period for compliance with the procurement targets is five years from the publication of the 2018 Mining Charter.
The 2018 Mining Charter also provides for the specific application of certain of its elements to holders of licenses under the Diamonds Act, No. 56 of 1986 and the Precious Metals Act, No. 37 of 2005 with variations and exemptions depending on the size of the license holder. For instance, enterprises with a turnover less than ZAR one million are exempt from the 2018 Mining Charter in its entirety. Enterprises with a turnover of more than ZAR 50 million must comply with the 2018 Mining Charter in its entirety.

On 25 February 2019, AngloGold Ashanti received a directive from the DMR stating that the company was not compliant with the amendment process required by the MPRDA in connection with BEE transactions entered into by the company after the conversion of the West Wits mining rights. The DMR instructed AngloGold Ashanti to submit an application to amend the clauses of two of its West Wits mining rights which record the BEE transactions entered into and implemented by the company to reflect further details of those BEE transactions and provide certain information relating to such transactions. On 7 March 2019, AngloGold Ashanti submitted an application for consent of the Minister to amend those clauses accordingly and provided the requested information.

On 26 March 2019, the Minerals Council South Africa (the former Chamber of Mines of South Africa) filed an application in the High Court of South Africa for the judicial review and setting aside of certain clauses of the 2018 Mining Charter. This application primarily relates to the fact that the 2018 Mining Charter does not fully recognise the continuing consequences of historical BEE transactions, particularly in respect of the transfer, sale or renewal of mining rights. The application for judicial review of the 2018 Mining Charter is currently pending.

The Code of Good Practice for the Minerals Industry

Section 100(1)(b) of the MPRDA obliged the Minister to develop a code of good practice for the minerals industry. On 29 April 2009, the Minister published the Code of Good Practice for the South African Minerals Industry (Code) pursuant to section 100(1)(b) of the MPRDA. The Code is a guiding document and its purpose is to set out administrative principles to enhance implementation of the applicable mining charter and the MPRDA. The Code is to be read in combination with the mining charter and other legislation relating to measurement of socio-economic transformation in the South African mining industry. The Code does not replace the mining charter nor any key legislation and laws relating to the minerals and the petroleum industry but serves as a statement of policy and principles that assists in the implementation of both the MPRDA and the mining charter.


Environmental laws relating to mining and prospecting


The MPRDAA repealed the sections in the MPRDA that dealt with environmental regulation of mining and prospecting operations. This was the first step in migrating the environmental regulation provisions from the MPRDA into the National Environmental Management Act, No. 107 of 1998, (NEMA). NEMA wasas amended by the National Environmental Management Amendment Act, No. 62 of 2008 and subsequently by the National Environmental Management Laws Amendment Act, No. 25 of 2014, and now(the “NEMA”) includes provisions to deal with environmental regulation of mining and prospecting, which provisions are administered by the Minister of Mineral Resources (Minister). In addition, the Regulations Pertaining to the Financial Provision for Prospecting, Exploration, Mining or Production Operations were published in the Government Gazette on 20 November 2015 under GNR 1147 Notice 39425 (2015 Financial Provision Regulations), and now fall under NEMA.

The 2015 Financial Provision Regulations are similar to the previous provisions under the MPRDA, some of the significant changes are set forth below:

broadening the definition of “financial provision” to require making financial provision for the adverse impacts that might arise from operations rather than only those listed in the environmental management plan (EMP), as was previously the case;
requiring the holder to annually assess environmental liability and adjust the financial provision to the satisfaction of the Minister of Mineral Resources;
requiring the holder to submit an audit report to the Minister on the adequacy of the financial provision from an independent auditor. If the Minister is not satisfied with the assessment, he is entitled to appoint his own auditor;
requiring that a holder maintain and retain financial provision notwithstanding the issuance of a closure certificate. Furthermore, the Minister may retain such portion of the financial provision as may be required to rehabilitate the closed mining or prospecting operation in respect of latent, residual or any other environmental impacts, including the pumping of polluted or extraneous water, for a prescribed period. This is not only in respect of holders of rights, but also now in respect of holders of old order rights and holders of works;
before the entry into force of the 2015 Financial Provision Regulations, holders could make financial provision for annual rehabilitation, final rehabilitation and post-closure residual impacts and water pumping by adding up the total amount for these three types of rehabilitation and making financial provision in one go using one or a mix of four methods: depositing cash in to the DMR bank account, keeping the amount in a rehabilitation trust in accordance with the Income Tax Act, No. 58 of 1962 (ITA), obtaining a financial guarantee or a bank guarantee in respect of the amount, or using a method determined by the Director-General (this was not common in practice). Under the 2015 Financial Provision Regulations, if the holder wishes to use a

rehabilitation trust in accordance with the ITA, the amount in the trust can only relate to financial provision for post-closure residual impacts and water pumping. Holders can no longer make financial provision for annual and final closure through a trust fund;
a holder’s financial provision must be equal to the sum of actual costs of implementing all three broad classes of rehabilitation for at least 10 years; and
the financial provision liability associated with annual rehabilitation, final closure or latent or residual environmental impacts may not be deferred against assets at mine closure or mine infrastructure salvage value.

Failure to realign to the 2015 Financial Provision Regulations constitutes non-compliance with section 24P of NEMA, which would entitle the DMR to issue a directive and failure to comply with the directive is an offence under section 49A(g) of NEMA. A person convicted of an offence under section 49A(g) of NEMA is liable to a fine not exceeding ZAR10 million or to imprisonment for a period not exceeding 10 years, or to both.

The mining industry has raised concerns with the 2015 Financial Provision Regulations, including:

confusion regarding the applicability of the 2015 Financial Provision Regulations to applicants and to previous holders;
duplicate funding or double provisioning;
unclear methods and periods for determining financial provision;
legal barriers to use of trust funds;
burdensome public consultation and disclosure requirements;
transitional provisions and time frames;
requirements for an additional three plans;
over-auditing, time and cost implications; and
inclusion of care and maintenance.

On 26 October 2016, proposed amendments to the 2015 Financial Provision Regulations were published for comment. The mining industry has been engaging with the Department of Environmental Affairs (DEA) regarding a new version of the Financial Provision Regulations and the proposed amendments. A revised version of the 2015 Financial Provision Regulations was expected to be published during the course of 2017, with a revised compliance deadline of February 2019. On 21 September 2018, the Acting Minister of Environmental Affairs published amendments to the 2015 Financial Provision Regulations. These amendments include the repeal of the 2015 Financial Provision Regulations and the extension of the deadline for compliance with the new Financial Provision Regulations to 19 February 2020. A further and more substantial amendment to the new Financial Provision Regulations is anticipated in 2019. A group comprising of the mining industry, financial advisors, community members as well as the DMR, Treasury and the DEA were in discussions regarding further amendments in late 2018.

MRE Minister. Pursuant to section 24N(8) of NEMA, directors of a company are jointly and severally liable for any negative impact on the environment, whether advertently or inadvertently caused by the company they represent, including damage, degradation and pollution.


SeeFrom an environmental perspective, given the wide scope of the statutory duty of care in South African environmental law, erstwhile land owners may be held liable for historic contamination by the regulatory authorities. The “polluter pays” principle in South Africa enables the competent authority to seek recourse against various responsible parties based on their historical or current relationship to the source and receptor of degradation or pollution. The duty of care also “Item 4B: Business Overview-Mine Site Rehabilitationapplies retrospectively to significant pollution or degradation that occurred before the entry into force of NEMA (i.e., 29 January 1999), as well as significant pollution or degradation that arises or is likely to arise at a different time from the actual activity that caused the contamination (e.g., latent or residual impact) or arises through an act or activity of a person that exacerbates pre-existing contamination. The authorities can also seek compensation in respect of clean-up measures that it is required to take on behalf of the responsible parties and Closure”apportion liability amongst the responsible parties, which could technically include a historic landowner or mining company that caused the pollution. Although the purchasers of AngloGold Ashanti’s assets in South Africa have contractually assumed all environmental liability associated with its former South African operations and “Item 4B: Business Overview-Environmental, Health and Safety Matters”.agreed to indemnify AngloGold Ashanti for the same, there remains a risk, at least theoretically, of statutory liability to the state.


AngloGold Ashanti’s rights and permits


Under South African law, a mining right will be grantedPursuant to a successful applicant for a period not exceeding 30 years. Mining rights may be renewed for additional periods not exceeding 30 years at a time. A mining right can be cancelled if the mineral to which such mining right relates is not mined at an “optimal” rate.

SA Sale Agreement, AngloGold Ashanti holds threeand Golden Core executed a notarial deed of cession of the mining rights in South Africa in West Wits which have been successfully converted, executedwith DMRE references GP 30/5/1/2/2/01 MR and registered as new orderGP 30/5/1/2/2/248 MR to transfer and cede these mining rights to Golden Core (the “Deed of Cession”). On 14 June 2021, the Deed of Cession was registered at the Mineral and Petroleum Titles Registration Office (MPTRO)(the “MPTRO”).


A prospectingWith respect to the mining right will be granted to a successful applicant for a period not exceeding five years, and may only be renewed once for three years. The MPRDA also provides for a retention period of up to three years after prospecting, with one renewal up to two years, subject to certain conditions.held under DMRE reference GP 30/5/1/2/2/11 MR, AngloGold Ashanti currently does not holdand Golden Core agreed to make an application in terms of section 102 of the MPRDA at the DMRE after the closing date of the SA Sale Agreement requesting, among other matters, the incorporation of this mining right into the mining right with DMRE reference GP 30/5/1/2/2/01 MR (the “Harmony Consolidation Application”). AngloGold Ashanti also executed a notarial conditional deed of abandonment pursuant to which it conditionally abandons this mining right in terms of section 56(f) of the MPRDA (the “Deed of Abandonment”) on condition that ministerial consent is granted in respect of the Harmony Consolidation Application. On 17 January 2022, the Harmony Consolidation Application was submitted to the DMRE. On the date of the grant of the Harmony Consolidation Application, AngloGold Ashanti will cease to be a holder of any prospectingmining rights in South Africa.

In addition, AngloGold Ashanti holds a refining licence and an import and export permit from Once the South African Diamond and Precious Metals Regulator.

The BBBEE Amendment Act

The President oftransaction has been fully implemented, the Republic of South Africa assentedgeneral laws relating to mining outlined above will no longer be applicable to the Broad-Based Black Economic Empowerment Amendment Act, No. 46company, other than the statutory duty of 2013 (BBBEE Amendment Act) on 23 January 2014. The BBBEE Amendment Act came into effect on 24 October 2014 with the object of amending the Broad-Based Black Economic Empowerment Act, No. 53 of 2003 (BBBEE Act) to provide a framework

of principles, strategies and guidelines aimed at promoting the broad-based socio-economic empowerment of HDSAs across the South African economy and society in the form of ownership, management, employment equity, skills development, preferential procurement, enterprise development and socio-economic development. The BBBEE Amendment Act includes a number of changes to the framework under the BBBEE Act, including:

amending and clarifying the definition of the intended beneficiaries of such framework;
amending the definition of “Broad-Based Black Economic Empowerment” (BBBEE) to introduce the concept of viable BBBEE and providing standards for that preferential procurement;
expanding the scope of the BBBEE Codes of Good Practice (BBBEE Codes), and the related transformation charters, on BBBEE matters that the Minister of Trade and Industry can issue under the BBBEE Act for specific sectors of the South African economy and making it compulsory for public authorities, governmental agencies and other public entities to apply such codes (Sector Codes);
introducing into the BBBEE Act itself the definition of fronting BBBEE practices (i.e., a transaction, arrangement or other act or conduct that directly or indirectly undermines or frustrates the achievement of the objectives of the BBBEE Act or the implementation of any of its provisions), which to date has been developed outside of the BBBEE Act and has now been expanded to capture the more sophisticated and unsuspecting fronting transactions, making fronting a criminal offense that is punishable with imprisonment and fines under certain circumstances, reasserting in the BBBEE Act the common law remedies for misrepresentation and more generally enhancing the enforcement mechanism against fronting;
establishing a BBBEE Commission responsible for overseeing, supervising and promoting compliance with the BBBEE Act, as well as receiving and investigating BBBEE-related complaints; and
providing that the Department of Trade and Industry (DTI) may impose special requirements for specific industries.

Before the BBBEE Amendment Act came into effect, the BBBEE Act provided that in the event of a conflict between the BBBEE Act and any other law in force immediately prior to the commencement of the BBBEE Act, the BBBEE Act would prevail if the conflict specifically relates to a matter addressed in the BBBEE Act. The BBBEE Amendment Act inserted a new provision in the BBBEE Act whereby the BBBEE Act trumps the provisions of any other law in South Africa with which it conflicts, provided such conflicting law was in force immediately prior to the effective date of the BBBEE Amendment Act. The provision became effective as from 24 October 2016.

On 27 October 2015, the Minister for Trade and Industry published Government Notice 1047 of Government Gazette 39350, which declared an exemption in favour of the DMR from applying the requirements contained in section 10(1) of the BBBEE Act for a period of 12 months. The exemption can be read as confirmation that the DTI sees the BBBEE Codes as “applicable” to the mining industry after the exemption is lifted on 27 October 2016.
Additionally, the revised BBBEE Codes of Good Practice (Revised BBBEE Codes) became effective on 1 May 2015. Both the BBBEE Amendment Act and the Revised BBBEE Codes expressly stipulate that where an economic sector in South Africa has a Sector Code in place for BEE purposes, companies in that sector must comply with the Sector Code. For purposes of the BBBEE Act, the applicable mining charter is not a Sector Code. It is not, at this stage, clear what the interplay between the applicable mining charter, the BBBEE Act and Revised BBBEE Codes is. Historically, there has been some debate as to whether the BBBEE Act and the BBBEE Codes apply to the mining industry, taking into account that the BBBEE Act requires every organ of state and public entity to give due consideration to the BBBEE Codes when issuing licenses, concession or other authorisations.

The MPRDA and the BBBEE Act have an overlapping focus. However, the BBBEE Act and the Revised BBBEE Codes do not require the DMR to apply the Revised BBBEE Codes when determining the qualification criteria for the issuing of mining rights, nor do they require that the DMR apply the Revised BBBEE Codes as a requirement for the retention of existing mining rights. The Revised BBBEE Codes will nevertheless apply to mining companies if they wish to be scored for the purpose of contracting with organs of state.

The South African government may designate the 2018 Mining Charter as a Sector Code in the future, in which case it would be under the auspices of the BBBEE Act. However, the South African government chose not to do so with respect to the 2010 Mining Charter in its Government Gazette notice of 17 February 2016. Until such determination is made, if at all, the 2018 Mining Charter remains a stand-alone document under the auspices of the MPRDA.

The Royalty Act

The Mineral and Petroleum Resources Royalty Act, No. 28 of 2008 (Royalty Act) was promulgated on 24 November 2008 and came into operation on 1 March 2010. The Royalty Act imposes a royalty on refined and unrefined Mineral Resources payable to the state.

The royalty in respect of refined Mineral Resources (which include gold and silver) is calculated by dividing earnings before interest and taxes (EBIT) as calculated under the Royalty Act, by the product of 12.5 times gross sales (as defined in the Royalty Act) calculated as a percentage, plus an additional 0.5 percent. EBIT refers to taxable mining income (with certain exceptions such as no deduction for interest payable and foreign exchange losses) before assessed losses but after capital expenditure. A maximum royalty of five percent of gross sales has been introduced for refined minerals.


The royalty in respect of unrefined Mineral Resources (which include uranium) is calculated by dividing EBIT by the product of nine times gross sales calculated as a percentage, plus an additional 0.5 percent. A maximum royalty of seven percent of gross sales was introduced for unrefined Mineral Resources. Where unrefined Mineral Resources (such as uranium) constitute less than 10 percent in value of the total composite Mineral Resources, the royalty rate in respect of refined Mineral Resources may be used for all gross sales and a separate calculation of EBIT for each class of Mineral Resources is not required. For AngloGold Ashanti, this means that currently the company will pay a royalty based on refined Mineral Resources (as the unrefined Mineral Resources (such as uranium) for AngloGold Ashanti for 2018 constituted less than 10 percent in value of the total composite Mineral Resources). The rate of royalty tax payable for 2018 was 0.50 percent of gross sales of the company’s South African operations.

The President of South Africa appointed the Davis Tax Committee (DTCom) to review the current mining tax regime.  In a reported titled the “Second and Final Report on Hard -Rock Mining” released in November 2017, the DTCom recommended an update and refinement of the schedules in the Royalty Act. For purposes of flexibility, the DTCom suggested these schedules should rather form part of regulations made by the Minister of Finance in the Government Gazette rather than forming part of the royalty legislation itself. The DTCom called upon the South African Revenue Service (SARS) to issue comprehensive interpretation notes on the Royalty Act to dispel any uncertainty prevalent in the industry.

Some of the other preliminary recommendations of the DTCom have included the upfront capital expenditure write-off regime being discontinued and replaced with an accelerated capital expenditure depreciation regime, which is in parity with the write-off periods provided for in respect of the manufacturing (40/20/20/20) basis. Another recommendation has been to bring the taxation of newly established gold mines into line with the tax regime applicable to non-gold mining taxpayers (in so far as possible). The DTCom has recommended that the so -called “gold formula” be retained for existing gold mines. Given the retention of the gold formula for existing gold mines, it will be necessary to retain ring fences in mines where the gold formula subsists. With regard to the additional capital allowances available to gold mines, the DTCom has recommended that such allowances should be phased out so as to bring the gold mining corporate income tax regime into parity with the tax system applicable to taxpayers as a whole.

Land Expropriation

On 27 February 2018, the South African National Assembly resolved to assign the Constitutional Review Committee (CRC) to review section 25 of the Constitution of the Republic of South Africa (Constitution) and other clauses, where necessary, to make it possible for the state to expropriate land in the public interest without compensation. The CRC had been given until 30 August 2018 to report back to the National Assembly. This resolution follows the African National Congress’ (ANC) resolution at its elective conference in December 2017 to pursue expropriation of land without compensation in a manner that does not destabilise the agricultural sector, endanger food security or undermine economic growth and job creation.  On 15 November 2018, the CRC issued its report recommending that section 25 of the Constitution must be amended to make explicit that which (in its view) is implicit in the Constitution, with regards to expropriation of land without compensation, as a legitimate option for land reform, so as to address the historic wrongs caused by the arbitrary dispossession of land, and in so doing ensure equitable access to land and further empower the majority of South Africans to be productive participants in ownership, food security and agricultural reform programs. Furthermore, the CRC recommended in its report that the South African Parliament must urgently establish a mechanism to effect the necessary amendment to the relevant part of section 25 of the Constitution and that it must table, process and pass a bill to amend the Constitution (Constitutional Amendment Bill) before the end of the current legislature in order to allow for expropriation without compensation. The CRC report was adopted by both Houses of Parliament in early December 2018. On 6 December 2018, the National Assembly resolved to establish an ad hoc committee to initiate and produce such Constitutional Amendment Bill before the end of the current Parliament to amend section 25 of the Constitution so that expropriation of land without compensation is made explicit, as a legitimate option for land reform. The ad hoc committee needs to report back to the National Assembly by 31 March 2019. Until such Constitutional Amendment Bill is published, it is unclear how the proposed expropriation of land without compensation might affect AngloGold Ashanti’s operations. Separately, on 21 December 2018, a draft Expropriation Bill was gazetted inviting comments from the public. The draft Expropriation Bill outlines circumstances under which land may be expropriated without compensation.

Section 5(3) of the MPRDA entrenches a statutory right of access for the mining right holder to the mining area for the purposes of conducting mining operations and does not require the mining right holder to own the land on which it conducts operations. Once a mining right is granted, the landowner has no right to refuse the conducting of mining operations on the property in question and is not entitled to compensation from the mining right holder for the use of the land for mining operations conductedcare in terms of the MPRDA. However, once a mining right is granted, a landowner can refuse a lawful mining right holder access to the land over which it has the right to conduct its mining operations. In this scenario, section 54 of the MPRDA creates an avenue for the payment of compensation to the landowner by the mining right holder for the use of the land for mining operations conducted in terms of the MPRDA. Section 55 of the MPRDA further provides the Minister of Mineral Resources with powers to expropriate the land in question for purposes of mining.NEMA as described above.





AFRICA REGION





CONTINENTAL AFRICA


Democratic Republic of the Congo (DRC)


General laws relating to mining

The mining industry in the Democratic Republic of the Congo (DRC)DRC is primarily regulated by lawLaw No. 007/2002 dated 11 July 2002 (2002(the “2002 DRC Code)Code”), as amended by lawLaw No. 18/001 dated 29 January 2018 (Reformed(the “Reformed DRC Mining Code)Code”) and decreeDecree No. 038/2003 dated 26 March 2003, as amended by decreeDecree No. 18/024 dated 8 June 2018 (Reformed(the “Reformed DRC Mining Regulations)Regulations”). As regards






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With respect to the application of the Reformed DRC Mining Code and Reformed DRC Mining Regulations, the Kibali joint ventureGoldmines S.A. (“Kibali Goldmines”) has reserved and continues reserving its rights, including, without limitation, its stability rights under, among other legal sources, the 2002 DRC Code. Discussions with the DRC government on these issues and the possible application of incentives that may be available under the Reformed DRC Mining Code and Reformed DRC Mining Regulations, in particular under article 220 of the Reformed DRC Mining Code which provides that the Prime Minister of the DRC may grant a number of incentives to provinces with infrastructure deficits to encourage economic development from mining resources, are ongoing.


In accordance with prior mining legislation, companiesCompanies holding mining titles issued prior to the entry into force of the Reformed DRC Mining Code and Reformed DRC Mining Regulations have claims to a 10-year stability provision.provision in accordance with prior mining legislation. Notwithstanding the adoption of the new regulatory regime, most companies are reserving their rights with respect to such stability provision.provision are reserved.


The Reformed DRC Mining Code vestsgrants the DRC Minister of Mines with the authority to grant, refuse, suspend andor terminate mineral rights, although such authority issubject to be exercised upon conditions set out in the Reformed DRC Mining Code. Mineral rights may be granted in the form of exploration permits for an initial period of five years or in the form of mining permits which are granted for an initial period of 25 years. An exploration permit may, at any time before expiry, be transformed partially into a mining permit or a small-scale mining permit. Mining permits are granted upon successful completion of exploration and satisfaction of certain requirements, including approval of a feasibility study, an environmental impact study and an environmental management plan.

The holder of a mining permit is required to commence development and mine construction within three years of the award of such permit. Failure to do so may lead to forfeiture of the mining permit. A permit holder must comply with specific rules relating to, amongst other things, protection of the environment, cultural heritage, health and safety, construction and infrastructure planning. Mining and exploration activities are required to be undertaken so as to affect as little as possible the interests of lawful occupants of land and surface rights holders, including their customary rights. The exercise of mineral rights by title holders which effectively deprives or interferes with the rights of occupants and surface rights holders requires payment of fair compensation by the mineral title holder.

To protect and enforce rights acquired under an exploration or mining permit, the Reformed DRC Mining Code provides, depending on the nature of a dispute or threat, administrative, judicial and national or international arbitral recourses.


Mining companies are required to grant a free-carried and non-contributory participation to the DRC government. The DRC government’s free participation was originally set at 5 percent, which was increased to 10 percent in respect of mining titles issued after the entry into force of the Reformed DRC Mining Code. All mining companies are required to grant an additional 5 percent free-carried participation to the DRC government upon each renewal of their exploitation permit. Under the Reformed DRC Mining Code, a 10 percent local contributory participation is also mandatory for mining titles issued after its entry into force.

Tax laws relating to mining

The Reformed DRC Mining Code sets out an exclusive and exhaustivecomprehensive tax and customs regime that is applicable to mining activities. Mining title holders are subject, amongst other things, to a corporate income tax of 30 percent, a windfall tax of 50 percent (subject to certain prerequisites) and are required to pay mining royalties to the DRC government. The royalty rate applicable to gold has been set at 3.5 percent. Mining title holders are also required to contribute a minimum of 0.3 percent of total turnover to community development.

The standard rate of VAT is 16 percent and is applicable to all mining companies.

Mining companies are required to grant a free-carried and non-contributory participation to In the DRC, government. The DRC government’s free participation was previously set at five percent, but was increasedKibali Goldmines is due certain refunds of VAT which, to 10 percentdate, remain outstanding. During 2021, AngloGold Ashanti did not recover any VAT offsets and refunds from its operations in respect to mining titles issued after the entry into forceDRC. We believe that our attributable share of the Reformed DRC Mining Code. All mining companies are requirednet recoverable VAT balance (including recoverable fuel duty and after discounting provisions) owed to grant an additional five percent free-carried participation tous by the DRC government upon each renewalamounted to $73 million as of their exploitation permit. Under31 December 2021. While an agreement was reached with the Reformed DRC Mining Code, a 10 percent local contributory participation is also mandatorygovernment on the reimbursement of the refundable VAT in 2018, uncertainty remains regarding the timing and level of cash receipts and offsets against other taxes for mining titles issued after its entry into force.purposes of the recovery of our VAT receivables in the DRC.

Regarding exchange control rules, the Reformed DRC Mining Code requires that mining title holders repatriate onshore 60 percent of sale revenues during the investment amortization period and 100 percent once the investment amortization is completed.


The Reformed DRC Mining Code also provides for a level of fiscal stability. A stability clause stipulates that existing tax, customs and exchange control provisions applicable to mining activities are guaranteed to remain unchanged for a period of five years from the enactment of the Reformed DRC Mining Code.


Article 220 of theForeign exchange control regime

The Reformed DRC Mining Code providesimposed new exchange control rules requiring that mining title holders repatriate onshore 60 percent of sale revenues received during the Prime Ministerinvestment amortisation period and 100 percent once the investment amortisation is completed. As a result of thethese new rules, AngloGold Ashanti was not able to fully repatriate dividends from its DRC may grant a number of incentive measuresoperations to provinces sufferingdate.

In 2021, AngloGold Ashanti repatriated $231 million from infrastructures deficits to encourage economic development from mining resources. Discussions are currently ongoing with the DRC government with respect to incentives that could be available under this article 220 of the Reformed Mining Code.

On 18 July 2012, the Convention between the government of the Republic of South Africa and the government of the DRC for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income (Convention) came into effect. The Convention is applicable to:

withholding taxes on amounts paid or credited on or after 1 January 2013; and
other income taxes, levied in respect of taxable periods beginning on or after 1 January 2013.


The Convention reduces the withholding tax on dividends paid by companies residentits operations in the DRC, in the form of dividends from Kibali (Jersey) Limited. Kibali (Jersey) Limited received such cash from Kibali Goldmines S.A. in the form of loan repayments (AngloGold Ashanti’s attributable share: $150 million) and dividends (net of withholding taxes) (AngloGold Ashanti’s attributable share: $81 million). Our attributable share of the outstanding cash balances awaiting repatriation from the DRC amounted to companies resident in South Africa from 20 percent$499 million as of 31 December 2021. The cash and cash equivalents held at Kibali Goldmines are subject to five percentvarious steps before they can be distributed to Kibali (Jersey) Limited and on interest paid by companies residentare held across four banks in the DRC, to companies resident in South Africa from 20 percent to 10 percent. A South African company must own at least 25 percentincluding two domestic banks.






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Table of a relevant DRC entity’s outstanding shares in order to take advantage of the reduced rates.Contents

AngloGold Ashanti’s rights and permits

AngloGold Ashanti holds a significant stake in the Kibali gold projectmine which is located in the north-eastern part of the DRC. The project is operated by Randgold Resources andKibali gold mine is owned by Randgold ResourcesKibali Goldmines which is a joint venture between Barrick Gold Corporation (45 percent), AngloGold Ashanti (45 percent) and Société Minière de Kilo-Moto SA (SOKIMO)S.A. (“SOKIMO”) (10 percent), which latter share represents the interest of the DRC governmentgovernment. AngloGold Ashanti and Barrick Gold Corporation each have a 50 percent interest in theKibali (Jersey) Limited which holds their respective 45% interest in Kibali Goldmines.

The Kibali gold project.

Kibaliproject is operated by Barrick Gold Corporation and comprises 10ten exploitation permits, seven expiringof which eight expire in 2029 and threetwo in 20302030. Those exploitation permits (11447, 11467, 11468, 11469, 11470, 11471, 11472, 5052, 5073, and covering5088) cover an area of approximately 1,836 square kilometreskm2 in the Moto goldfields of the north-eastern part of the DRC.goldfields.



Ghana


General laws relating to mining

Control of minerals and mining companies

The Constitution of Ghana as well as the Minerals and Mining Act, 2006 (Act 703) (GMM Act)(the “GMM Act”) provide that all minerals in Ghana in their natural state are the property of the State and title to them is vested in the President on behalf of and in trust for the people of Ghana, with rights of reconnaissance, prospecting, recovery and associated land usage being granted under licence or lease.

The grant of a mining lease by the GhanaianGhana Minister of Lands and Natural Resources (MLNR)(the “LNR Minister”) upon the advice of the Minerals Commission is subject to parliamentary ratification unless the mining lease falls into a class of transactions exempted by the Parliament of Ghana.

Control of mining companies

Ghanaian Parliament. The MLNRLNR Minister has the power to object to a person becoming or remaining a controller of a company which has been granted a mining lease if the MLNRLNR Minister believes, on reasonable grounds, that the public interest would be prejudiced by the person concerned becoming or remaining such a controller.

Right of pre-emption

Section 7 of the GMM Act provides that the MLNR “has the right of pre-emption of all minerals raised, won or obtained in Ghana and from any area covered by territorial waters, the exclusive economic zone or the continental shelf and products derived from the refining or treatment of these minerals.” Section 7 further states that the Ghanaian government “may, by an Executive Instrument, appoint a statutory body to act as its agent for the exercise of the right of pre-emption.” The right of pre-emption gives the Ghanaian government the power, to compulsorily purchase the minerals or gold produced by mining companies in Ghana. By way of providing a safeguard to mining companies, article 20 of Ghana’s Constitution provides protection from deprivation of property by the government of Ghana and requires it to make prompt payment of fair and adequate compensation, where it is absolutely necessary to compulsorily acquire any private property.

Section 7 of the GMM Act has never been implemented by the government of Ghana. However, the Ghanaian government indicated in 2018 that it may consider this provision as part of its options to add value to mineral resources mined in Ghana. The government of Ghana and mining companies are in discussions regarding the best approach to achieve the Ghanaian government’s policy objectives in the most mutually beneficial way.


Stability and development agreements


The GMM Act provides for stability agreements as a mechanism to guarantee certain terms and conditions, (mainly fiscal)mainly fiscal, to which a mining company’s operations will beare subject for a period of 15 years. A development agreement, as provided for by the GMM Act, may be made available to a mineral right holder with a proposed investment exceeding $500 million. The GMM Act also provides that the terms of a development agreement may contain stability terms as provided for in stability agreements. Stability and development agreements are subject to ratification by Parliament.parliamentary ratification. In January 2020, certain amendments to the GMM Act, including, among other measures, the abolishment of development agreements and the shortening of stability agreements from a period not exceeding 15 years to a period of five years (with a possible extension of another five years) were proposed. If adopted, however, such amendments would not apply retroactively and would therefore not have an impact on existing development agreements, including the Obuasi Development Agreement (as described below).


Ghana Stability Agreement


On 18 FebruaryIn 2004, AngloGold Limited and the governmentGovernment of Ghana agreed on the terms ofsigned a stability agreement (Ghana(the “Ghana Stability Agreement) to governAgreement”) governing certain aspects of the fiscal and regulatory framework under which AngloGold Ashantithe company would operate in Ghana for a period of 15 years following the implementation of the business combination between AngloGold Limited and Ashanti Goldfields Company Limited. The Ghana Stability Agreement necessitated the amendment of the Obuasi mining lease which had been ratified by Parliament.

Under the Ghana Stability Agreement, the government of Ghana agreed:

to extend the term of the mining lease relating to the Obuasi Mine until 2054 on terms existing prior to the business combination;
to maintain, for a period of 15 years, the royalties payable by AngloGold Ashanti with respect to its mining operations in Ghana at a rate of three percent per annum of the total revenue from minerals obtained by AngloGold Ashanti from such mining operations;

to ensure the income tax rate would be 30 percent for a period of 15 years. The agreement was amended in December 2006 to make the tax rate equal to the prevailing corporate rate for listed companies if the rate was less than 30 percent; and
to permit AngloGold Ashanti and any or all of its subsidiaries in Ghana to retain up to 80 percent of export proceeds in foreign currencies offshore, or if such foreign currency is held in Ghana, to guarantee the availability of such foreign currency.

The Ghana Stability Agreement also stipulates that a sale of AngloGold Ashanti’s or any of its subsidiaries’ assets located in Ghana remains subject to the approval of the government of Ghana. Furthermore, the Ghanaian government retains its special rights (Golden Share) under the provisions of the GMM Act pertaining to the control of a mining company, in respect of its assets and operations in Ghana.

The government of Ghana agreed that AngloGold Ashanti’s Ghanaian operations will not be adversely affected by any new enactments or orders, or by changes to the level of payments of any customs or other duties relating to mining operations, taxes, fees and other fiscal imports or laws relating to exchange control, transfer of capital and dividend remittance until April 2019, which is 15 years after the completion of the business combination.

AngloGold Ashanti (Ghana) Limited (AGAG) has negotiated new regulatory and fiscal agreements in relation to the Obuasi Mine with the Ghanaian government. These agreements, which govern the redevelopment of the Obuasi Mine, were ratified by Ghana’s Parliament on 21In June 2018. As a result of the ratification of these agreements,2018, the Ghana Stability Agreement ceased to apply to the Obuasi Mine, but will continuemine as a result of the parliamentary ratification of a new development agreement and a new tax concession agreement in relation to the mine (as described below). However, the Ghana Stability Agreement continued to apply to the Iduapriem Minemine until it expiresexpired in April 2019. Preliminary contact has been made withSince then, AngloGold Ashanti (Iduapriem) Limited (“AGA Iduapriem”) no longer benefits from the GhanaianGhana Stability Agreement. Relevant engagements are currently ongoing between AGA Iduapriem and the Minerals Commission with respect to obtain a new stability agreement for the Iduapriem Mine and the Minerals Commission has provided guidelines to be followed for the application to be made.mine.


Obuasi Development Agreement


AngloGold Ashanti (Ghana) Limited (“AGA Ghana”) negotiated a new development agreement in relation to the Obuasi mine (the “Obuasi DA”) with the Government of Ghana. On 21 June 2018, the Ghanaian Parliament ratified the Obuasi DA which contains stability terms as provided for in stability agreements. The Development Agreement (DA)Obuasi DA confers a number of rights and obligations on AGA Ghana with respect to the Obuasi Mine confers various rights and imposes several obligations on AGAG, including:

Stabilizationmine, including, among other matters, (i) the stabilisation of the fiscal and regulatory framework (except for enactments promoting the use of Ghanaian goods and services) for a period of 10 years with(with a potential of it being extended for five years;
Confirmation of accounting currency to be US dollars;
Rightyears); (ii) the right to hold up to 80 percent of proceeds received from exporting minerals in foreign currencies outside of Ghana in accordance with existing arrangements;
Obligation to set up a community trust fund for Obuasi and to fund it at $2 per ounce of gold produced;
ObligationGhana; (iii) obligation to give preference to materials and goods made in Ghana andas well as services provided by Ghanaians, entities incorporated or formed in Ghana,Ghanaians; and entities owned and controlled by Ghanaians;
Obligation to give preference to Ghanaian skills where they are available;
Obligation to employ high standards of safety; and
Right(iv) the right to peaceful enjoyment and protection against expropriation.







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Obuasi Tax Concession Agreement


The fiscalFiscal terms, which will ordinarily form part of a single stabilisation document, were separated from the Development AgreementObuasi DA. Hence a separate tax concession agreement in relation to the Obuasi Mine. Hence a separate Tax Concession Agreement (TCA)mine (the “Obuasi TCA”) was signed with the Ghanaian government.Government. On 21 June 2018, Parliament ratified the Obuasi TCA with a concession period until 31 December 2027. The relevant salient terms include,Obuasi TCA contains a number of tax concessions for AGA Iduapriem with respect to the Iduapriem mine, including, among other things:

Corporatematters, (i) a corporate income tax to berate of 32.5 percent or such lower rates as may be fixed by law (as opposed to(instead of the current legalstatutory rate of 35 percent);
Capital allowances carried forward by AGAG which relate to the period before the effective date (ii) exemption of the TCA which have not already been utilized for the purposes of calculating taxable income shall continue to be carried forward until 31 December 2020;
Existing and new tax losses as well as a special concession to carry forward capital allowances to be converted into tax losses as at the end of 2020, will apply to AGAG;
Exemptions of certain items from import duty;
Exemption of the following transactions from capital gains tax:
◦an issue of shares bytax; (iii) a publicly listed company which holds a direct or indirect interest in AGAG in connection with a raising of finance, an acquisition or a reorganization or an issue of shares by a company in connection with a new listing;
◦transfers of shares in any publicly listed company which holds a direct or indirect interest in AGAG other than a transfer of shares which results in a third party holding more than 35 percent of the shares in the listed company; or
◦a reorganization of a company which holds a direct or indirect interest in AGAG where following the reorganization the shareholders are substantially similar to those shareholders of the ultimate parent entity immediately prior to the transaction;
Non-application of section 62(1) of the Income Tax Act, 2015 (Act 896) (which provides that where the underlying ownership of an entity changes by more than 50 percent at any time within a period of three years, the assets and liabilities of that entity immediately before the change are deemed to be realized) under the following circumstances:

◦a joint venture in relation to Obuasi;
◦an issue of shares by a publicly listed company which holds a direct or indirect interest in AGAG in connection with a raising of finance, an acquisition or a reorganization or an issue of shares by a company in connection with a new listing;
◦transfers of shares in any publicly listed company which holds a direct or indirect interest in AGAG other than a transfer of shares which results in a third party holding more than 50 percent of the shares in the listed company; or
◦a reorganization of a company which holds a direct or indirect interest in AGAG where following the reorganization the shareholders are substantially similar to those shareholders of the ultimate parent entity immediately prior to the transaction;
A sliding scale royalty rate ranging from three3 percent atto 5 percent for a gold price ranging from $1,300 up to $1,300$2,000 and above per ounce to five percent at $2,000 per ounce and above (instead of the current flat rate of five5 percent).
Exemption from the payment of; and (iv) certain VAT on items imported under the Ghanaian Import Duty List up to 31 December 2023;exemptions and
Entitlement to a refund of VAT credit notwithstanding that AGAG will not meet the usual conditions for qualification for refunds.


As described above, the DA and TCA, which govern the redevelopmentGovernment’s Golden Share

Section 60(1) of the Obuasi Mine, were ratified by Ghana’s Parliament on 21 June 2018. AsGMM Act provides that the Government of Ghana can require a result of the ratification of these agreements, the Ghana Stability Agreement ceasedmining company to applyissue for no consideration to the Obuasi Mine.

Tax laws

In 2012, the tax lawsRepublic of Ghana were amended. Changesa special share (a “Golden Share”). A Golden Share in AGA Ghana was issued to the tax laws included:

An increase in the income tax rate applicable to mining businesses from 25 percent to 35 percent. AngloGold Ashanti is currently protected until April 2019 from any increaseGovernment of its income tax rate to greater than the rate provided for under the Ghana Stability Agreement for the Iduapriem Mine, and the Obuasi Mine is protected under the DA and TCA.
Introduction of a new capital allowance regime for class 3 assets (which include mineral and petroleum exploration and production rights, buildings, structures and works of a permanent nature used in mineral and petroleum exploration and production and plant and machinery used in mining and petroleum operations) that provides for a 20 percent straight line rate for a period of five years. Pursuant to the Ghana Stability Agreement, this change will not affect AngloGold Ashanti until April 2019 for the Iduapriem Mine, and the Obuasi Mine is protected under the DA and TCA.
Elimination of the five percent allowance on prior year additions. Prior to the 2012 amendment, the tax laws granted an additional five percent of the value of assets acquired and qualified to be classified as class 3 assets for the purpose of granting capital allowances. Capital allowance is now 20 percent each year on the total value of the assets. Pursuant to the Ghana Stability Agreement, this change will not affect Iduapriem Mine until April 2019. The TCA provides that unutilized capital allowances carried forward by AGAG which relate to the period before 21 June 2018 (date of ratification of the TCA) shall continue to be carried forward until 31 December 2020 as unutilized capital allowances carried forward. From 1 January 2021, any such unutilized capital allowances shall be 20 percent each year on the total value of assets.
A ring-fencing rule to prevent mining businesses from deducting or setting off costs from one mining area with another’s income. Pursuant to the Ghana Stability Agreement, this change will not affect Iduapriem Mine until April 2019. This ring-fencing rule applies to the Obuasi Mine under the TCA.

In 2018, the following changes have been made to the tax regime of Ghana.

The Taxation (Use of Fiscal Electronic Device) Act, 2018 (Act 966) (FED Act) was introduced to enhance the efficiency of tax collection by removing the human interaction element and adopting the use of electronic devices in the collection of taxes. The FED Act makes it mandatory for specified taxable persons to use fiscal electronic devices for sales on their premises and to promote non-cash sales transactions. The FED Act has not yet been implemented.
The Minerals Income Investment Fund Bill has been passed by Parliament to establish a Fund to receive mineral royalty and related income as well as establish a special purpose vehicle to vest the Ghanaian government’s carried interest in mining companies. It will also provide for the disbursement and management of the royalties received from mineral rights holders by Ghana’s government. This would not impose any additional burden on mining companies such as AngloGold Ashanti, but would only change the legal personality holding the Ghanaian government’s carried interest.
The Luxury Vehicle Levy Act, 2018 (Act 969) has been enacted to impose a levy on vehicles based on engine capacities. This levy is payable on first registration and subsequently annually on renewal of road worthy certificates. The levy exempts ambulances, tractors, commercial vehicles for goods transport or those with capacity to transport more than 10 persons. For vehicles with capacity between 2,950cc-3,549cc, the levy is GHS 1,000 cedis, vehicles with engine capacity between 3,550cc- 4,049cc will be levied at GHS 1,500 cedis, and for engine capacities above 4,050cc, the levy is GHS 2,000 cedis per annum. This would marginally increase the associated cost of running light vehicles owned by AngloGold Ashanti.

Golden Share

Under the Ghana Stability Agreement, the government of Ghana has confirmed and agreedconfirms that the government’sGovernment’s rights with respect to theits Golden Share apply only in respect of AngloGold Ashanti’sAGA Ghana’s assets and operations in Ghana. The rights do not extend to any other assets or operations of AngloGold Ashanti outside Ghana.


Ghana’s government has also agreed to waive any right it may have under section 60(I) of the Minerals and Mining Law, 1986, as amended, to acquire a special share in AngloGold Ashanti or any of its direct or indirect subsidiaries or joint ventures.

The Golden Share may only be held by or transferred to a Ministerconfers certain rights on the Government in respect of the Ghanaian government or any person acting on behalf of the government and authorised in writing by such Minister.

The following matters require, and will not be effective without, theAGA Ghana. For example, written consent of the holder of the Golden Share:

(i)any amendment to or removal of the relevant provisions of the AGAG Regulations setting out the rights and restrictions attaching to the Golden Share;
(ii)Share is required for, among other matters, (i) any amendment of the rights and restrictions in respect of the Golden Share; (ii) the voluntary winding-up or voluntary liquidation of AGAG;
(iii)the redemption of or purchase by AngloGold Ashanti of the Golden Share;
(iv)the disposal of any mining lease held by AGAG or any subsidiary of AGAG; and
(v)any disposal by AGAG (other than any disposal in the ordinary course of business of AngloGold Ashanti) which, alone or when aggregated with any disposal or disposals forming part of, or connected with, the same or a connected transaction, constitutes a disposal of the whole or a material part of the assets of the AngloGold Ashanti group taken as a whole. For this purpose, a part of the AngloGold Ashanti group’s assets will be considered material if either (a) its book value (calculated by reference to the then latest audited consolidated accounts), or the total consideration to be received on its disposal, is not less than 25 percent of the book value of the net assets of the AngloGold Ashanti group or (b) the average profits attributable to it represent at least 25 percent of the average profits of the AngloGold Ashanti group for the last three years for which audited accounts are available (before deducting all charges, except taxation and extraordinary items).

Upon a return of assets in a winding-up or voluntary liquidation of AGAG,AGA Ghana; (iii) the disposal of any mining lease held by AGA Ghana; and (iv) the disposal of all or substantially all of the assets of AGA Ghana. The holder of the Golden Share is entitled togenerally does not have the sum of GHS 0.10 cedis in priority to any payment to other members, but the Golden Share confers no further right to participate in the profits or assets of AngloGold Ashanti. The Golden Share carries no right to anyAGA Ghana (by way of dividend or other capital issuances), but is entitled to attend any rightgeneral meeting of shareholders.

Tax laws relating to participatemining

Currently, the main tax laws in any offer of securities to existing shareholders or in any capitalisation issue.Ghana include the following acts and regulations, which have been frequently amended over the years:

The holder of the Golden Share may require AGAG to redeem the Golden Share at any time in consideration of the payment to such holder of GHS 0.10 cedis.

VAT

The Value Added Tax Act, 2013 (Act 870) (2013 VAT Act) extended the coverage of VAT to additional activities, including among other things the supply of financial services that are rendered for a fee, commission or a similar charge. The taxes on those additional activities do not have an adverse effect on the company since they do not directly impact its operations.

The Value Added Tax (Amendment) Act, 2017 (Act 948) (First 2017 VAT Act) amended the 2013 VAT Act. The First 2017 VAT Act, among other things, classifies the supply of financial services and gives legal backing to a three percent VAT Flat Rate Scheme (FRS).

The FRS applies to all wholesalers and retailers including suppliers who import to resell on wholesale or retail. Prior to the introduction of the FRS, suppliers were allowed to charge 17.5 percent against the output tax charged on the value of their supplies. However, suppliers are currently prohibited from charging 17.5 percent under the new scheme. Hence the 17.5 percent is rather inculcated into the price of goods/ products supplied, passing on the costs to the consumer. Thus, goods purchased by AngloGold Ashanti from its suppliers fall within this bracket and have turned out to be more expensive than previously.

The Value Added Tax (Amendment) (No. 2) Act, 2017 (Act 954) (Second 2017 VAT Act) was enacted to amend the 2013 VAT Act to provide for withholding from the payment of VAT to registered VAT traders and to allow the Ghana Revenue Authority to appoint certain categories of VAT registered entities as withholding tax agents. Mining companies like AngloGold Ashanti fall within the category of such withholding tax agents and implementation of the Second 2017 VAT Act started from May 2018.

In 2018, the Value Added Tax (Amendment) Act, 2018 (Act 970) revised the VAT rate on taxable supplies to 12.5 percent. The National Health Insurance (Amendment) Act, 2018 (Act 971) decoupled the National Health Insurance Levy of 2.5 percent from the VAT and converted it into a straight levy which is not subject to the input and output method of accounting for VAT. Same was done for the Ghana Education Trust Fund portion of the VAT under the Ghana Education Trust Fund (Amendment) Act, 2018 (Act 972). The implication is an increase in the total VAT amount payable by the consumer.

However, by virtue of the DA and TCA, AngloGold Ashanti will not be affected by these revised rates with respect to the Obuasi Mine. The effect of these revised rates on AngloGold Ashanti in respect of the Iduapriem Mine from April 2019 will depend on the agreed stabilisation terms with the government of Ghana, following the expiration of the current Ghana Stability Agreement. In the absence of a new stability agreement, the prevailing rate will apply with respect to the Iduapriem Mine.



Income taxes

In November 2015, Parliament passed the •Income Tax Act, 2015 (Act 896) (ITA) which repealed the Internal (as amended) and Income Tax Regulations, 2016 (L.I. 2244);
•Customs Act, 2015 (Act 891) (as amended) and Customs Regulations, 2016 (L.I. 2248);
•Value Added Tax, 2013 (Act 870) (as amended) and Value Added Tax Regulations, 2016 (L.I. 2243); and
•Revenue Administration Act, 20002016 (Act 592), as amended. 915).

The ITA became effective from 1 January 2016 for the 2016 year of assessment. The ITA ring-fencesIncome Tax Act, 2015 (Act 896) ringfences and taxes income derived from mining operations at the rate of 35 percent. For the purpose of ascertaining the income of a person for taxation, each separate mineral operation is treated as independent business and taxed accordingly. Pursuant to section 2.06 of the Ghana Stability Agreement, the ring -fencing provision will not apply to AngloGold Ashanti in respect of the Iduapriem Mine until April 2019 and until then the company’s tax exposure will not exceed 30 percent. The Obuasi TCA for the Obuasi MineAGA Ghana provides for a stabilised income tax rate of 32.5 percent. Hence, AngloGold Ashanti will not be affectedAGA Iduapriem currently pays income tax at the rate of 35 percent.

Furthermore, mining companies are subject to the payment of ground rent and royalties. The current royalty rate amounts to 5 percent. However, a sliding scale royalty rate has been adopted for AGA Ghana as provided by the ring-fencingObuasi TCA. The provision of 35goods and services is liable to value added tax (“VAT”) at a revised rate of 12.5 percent. In addition, there are separate levies, including a 2.5 percent with respectNational Health Insurance Levy (“NHIL”), a 2.5 percent Ghana Education Trust Fund Levy (“GetFund Levy”) and a 1.0 percent COVID-19 Levy. By virtue of the Obuasi TCA, AGA Ghana is exempt from the payment of the NHIL and GetFund Levy. In addition, while AGA Ghana is technically exempt from the payment of the COVID-19 Levy (as it became operational subsequent to the effective date of the Obuasi Mine.DA), the company decided to pay the COVID-19 Levy voluntarily. AGA Iduapriem is not exempt from any of these levies.


Environmental laws relating to mining

Mining companies are required, under the GMM Act, Environmental Assessment Regulations, 1999 (L.I. 1652) and Water Use Regulations, 2001 (L.I. 1692), to obtain all necessary approvals from the Environmental Protection Agency (the “Ghana EPA”) and, in appropriate cases, the Water Resources Commission and/or the Ghanaian Minerals Commission before undertaking mining operations. This includes undergoing an environmental impact assessment process and, following the issuance of the environmental permit, periodically preparing environmental management plans, which include details of the likely impacts of mining operations on the environment and local communities, as well as a comprehensive plan and timetable for actions to mitigate and remediate any adverse effects of the mining operations, for submission to the Ghana EPA. The ITA provides forMinerals and Mining (Health, Safety and Technical) Regulations, 2012 (L.I. 2182) also impose further obligations to obtain the carrying forward of losses for up to five years and those losses can only be used innecessary permits from the order in which they were generated or incurred. The ITA further prohibits the deferment of capital allowances calculated or granted for a particular year.

The ITA states that expenditure incurred in reconnaissance or prospecting operations shall be placed in a single pool, and the balance in that pool is to be carried forward year to year until commencement of production. When production commences, the amount in the pool must be capitalised and the Commissioner-GeneralInspectorate Division of the Ghana Revenue Authority (Commissioner-General) shall grantMinerals Commission for the operation of mines. The environmental permits for AGA Ghana (for the Obuasi redevelopment project and for the construction and operation of tailings and water infrastructure projects) are valid until November 2022. The environmental permits for AGA Iduapriem (for the re-mining of Block 5 and for the tertiary crusher installation project) are valid until July 2022. Renewal processes for the environmental permits for both mines are underway. The permit for the tailings infrastructure project of AGA Iduapriem is valid until 2023.

Environmental laws in Ghana also require mining operators to rehabilitate land negatively impacted by mining operations according to an environmental cost reclamation plan agreed with the Ghana EPA. The environmental cost reclamation plan includes two cost estimates, namely the cost of rehabilitating the mining area at the end of the life of the mine as well as the cost of rehabilitating the mine as at the date of the reclamation plan. These estimates are reviewed annually and updated every two



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years. Each mining company is typically required to secure a capital allowance in respect thereof.percentage (typically between 50 percent and 100 percent) of the estimated rehabilitation costs by posting reclamation bonds underwritten by banks and restricted cash. The ITA also provides guidance on how costs incurred during the reconnaissance and exploration phaseterms of a mine ought to be treated.

The ITA imposes a withholding tax on dividends paideach reclamation bond are determined by a person conducting mineral operationsreclamation security agreement between that company and the Ghana EPA. Both AGA Ghana and AGA Iduapriem have bank guarantees in Ghana at eight per cent regardless of the amount of shareholding of the recipient. However, a recipient holding or controlling directly or indirectly at least 25 percent of the voting power of the company paying the dividend may be allowed some tax exemptions.

The ITA also introduces some variation in the rates of withholding taxes. For example, paymentsplace for the supply of services (Paymentsenvironmental reclamation liabilities as well as escrow accounts with a Source in Ghana to Persons Other Than Individuals) has been increased from five percent to 15 percent; the withholding tax on resident Directors’ remuneration has been increased from 10 percent to 20 percent; and withholding taxes on natural resource payments and royalties have been increased from 10 percent to 15 percent. This may have an indirect impact on AngloGold Ashanti’s operations as this rate will have a material impact on the margins of suppliers and possibly their working capital. Suppliers may therefore seek to pass this on to AngloGold Ashanti by increasing their fees and charges.

The ITA also abolishes the flat 15 percent rate of tax on capital gains. Capital gains are now to be included in business or investment income and taxed at the applicable income tax rate.

Various amendments were made to the ITA as follows:

The Income Tax (Amendment) Act, 2015 (Act 902) provides new rates of tax on the chargeable income of resident individuals for a year of assessment, introduces a 15 percent withholding tax rate applicable to service fees with a source in Ghana to resident individuals for services other than those expressly provided for under Act 902 and increases the monetary threshold for an individual to whom a presumptive tax applies. Presumptive tax payable on turnover is now three percent of the business where the turnover is more than GHS 20,000 cedis but does not exceed GHS 200,000 cedis (instead of the initial presumptive tax of three percent payable where the turnover was more than GHS 20,000 cedis but did not exceed GHS 120,000 cedis).
The Income Tax (Amendment) Act, 2016 (Act 907) exempts from tax, interest and dividends paid to an investor in an approved unit trust scheme or mutual fund, and also reduces withholding tax on service fees payable by a resident person, other than an individual, to another resident person from 15 percent to 7.5 percent.

The Income Tax Regulations, 2016 (L.I. 2244) pursuant to the provisions of the ITA was also introduced to reduce the income tax imposed on the wages of casual and temporary workersjoint signatories from the previous rate of 7.5 percent-15 percent to a fixed rate of five percent.Ghana EPA. The guarantees for AGA Iduapriem will expire in October 2022, whereas the guarantees for AGA Ghana are valid until December 2022.


The Income Tax (Amendment) Act, 2018 (Act 973) amends the personal income tax rates for residentForeign exchange, export and non-resident individuals. The rate of tax imposed on the chargeable income of a non-resident temporary worker has been increased to 25 percent on their gross taxable income.other rules

A resident worker’s chargeable income is taxed annually as follows: the first GHS 3,132 cedis is exempt from tax, the next GHS 840 cedis is subject to five percent tax, the next GHS 1,200 cedis is subject to 10 percent tax, the next GHS 33,720 cedis is subject to 17.5 percent tax, any amount exceeding GHS 81,108 cedis is subject to 25 percent tax and any amount exceeding GHS120,000 cedis is subject to a 35 percent tax. Subsequently, the Income Tax (Amendment) (No.2) Act, 2018 (Act 979) amended Act 973 by reducing the upper tax rate from 35 percent to 30 percent for annual incomes above GHS 240,000 cedis. These changes affect AGAG employees.

Another amendment made to the ITA, set forth in the Income Tax (Amendment) Act, 2017 (Act 941), provides for the exemption from tax of the gains from the realisation of securities listed on the Ghana Stock Exchange.





Retention of foreign earnings


AngloGold Ashanti’s operations in Ghana areThe Obuasi mine is permitted to retain 80 percent of theirits foreign exchange earnings in an offshore foreign exchange account.account, whereas the Iduapriem mine is allowed to only retain 45 percent. In addition, the company has permission from the Bank of Ghana to retain and use US dollars, outside of Ghana, to fulfillfulfil payment obligations to the company’s hedge counterparties which cannot be met from the cash resources of its treasury company. On 4 February 2014,

Rules regarding the Bankexport of Ghana issued new directives as part of measures to streamline the collectiongold and repatriation of export proceeds to Ghana. These directives included an instruction to all banks and authorised dealers to, within five working days of receipt of export proceeds, convert the proceeds into Ghana cedis based on the average Interbank Foreign Exchange Rate prevailing on the day of conversion with a spread not exceeding 200 percentage in points (pips). Exporters with retention accounts were to continue to operate these accounts in accordance with their retention agreements. Retention proceeds which were sold to the banks were to be converted into Ghana cedis based on the average Interbank Foreign Exchange Rate prevailing on the day of conversion with a spread not exceeding 200 pips. It further advised that offshore foreign exchange transactions by resident companies, including exporters, were strictly prohibited and exporters were to ensure that all export proceeds are repatriated in full. Failure to comply with the provisions attracts penalties including pecuniary sanctions, jail terms, suspension and revocation of the operating licence, as applicable.diamonds

Following engagement with relevant stakeholders, the Bank of Ghana issued another notice clarifying that the transfer of foreign exchange to meet external payment obligations remains permissible for transactions such as:

redemptions and coupon payments on Bonds held by non-residents;
investment income, technology and management transfer entitlements, expatriate emoluments, and other incentive packages and overseas commitments under provisions in various legislation and legislative instruments such as the GMM Act, and the Technology Transfer Regulations, 1992 ( L.I.1547 ); and
other outward payments for imports of goods and services.

The notice also stated that all balances in Foreign Currency Accounts (FCAs) and Foreign Exchange Accounts (FEAs) will continue to be held in foreign currency, and will not be converted into Ghana cedis. External transfers of up to $10,000 per annum without documentation from FEA and FCA are still permitted. Balances held in FEAs and FCAs continue to remain available for all legitimate external transactions.


The Bank of Ghana on 9 August 2014 further revisedintroduced new measures to regulate and monitor the rules on foreign exchange operations, effectively reversingexport of gold and diamonds from Ghana in 2015. From September 2015, all exports of gold and diamonds must be carried out through the initial directives controlling transactions in foreign exchange.Precious Minerals Marketing Company Ltd (“PMMC”), except where the exporter is the holder of a licence that permits it to export directly. The details are as follows:

The limit of $1,000 on over-the-counter foreign exchange cash withdrawal is removed.
Exporters shall continue to repatriate in full export proceeds in accordance with the terms agreed between the trading parties. Such proceeds shall be credited to their FEAs and converted on a need basis.
FEAs and FCAs will continueGhana Revenue Authority (Customs Division) only permits gold to be openedexported by a licensed gold exporter who has a completed Form FEX A4 bearing Bank of Ghana’s embossment. The export measures do not apply to AngloGold Ashanti because the company holds a licence granted by the LNR Minister to sell and operatedexport its production.

Local assaying and refinement policies

In November 2016, the Ministry of Lands and Natural Resources issued a ministerial directive appointing the PMMC as theydesignated laboratory for assaying in Ghana. The directive requests all persons holding export licences for gold to submit all gold to be exported to the PMMC for assay before export. Mining businesses, including AngloGold Ashanti, acting through the Ghana Chamber of Mines were beforeopposed to this directive due to its potential negative impact on mining companies in the notices issued on 4 February 2014.
Except for transfers from FEAregion. As a result, the Chamber initiated proceedings to FCA which are still prohibited, all other transfers between accounts are permitted.
Forreverse or modify the avoidance of doubt:
◦FCAs shall be fed only with unrequited transfers such as transfers from abroad for investment or embassy transfers.
◦FEAs shall be fed with foreign exchange generated from activities in Ghana such as proceeds from exports of goods and services.
The threshold for transfers abroad without initial documentation remains at $50,000. Where documentationdirective. Following discussions in respect of the mining industry’s concerns, the Chamber and Government agreed on the modalities for implementing the national assaying policy and it was introduced in February 2018 following a transfer remains outstanding, any subsequent import transaction by an importer, irrespectiveone-month pilot among certain mining companies. Subsequently, in June 2019, the LNR Minister released a statement reiterating the Government of value, shall only be made on prior provisionGhana’s plans to locally refine 30 percent of documentation requiredthe gold produced in the country. Discussions between the Ghana Chamber of Mines and the Government of Ghana’s economic management team in 2019 led to the Chamber agreeing to consider the proposal and for the current import transaction.
Importers who use non-cash instruments (plastic cards) may continueparties to load updiscuss detailed modalities to $50,000ensure that a move to meet their legitimate needs abroad subjectlocally refined gold does not become detrimental to the necessary documentation requirements.mining industry.
Foreign currency denominated loans may be granted by resident banks to their customers subject to their own internal procedures
Local content and processes and in compliance with the risk management guidelines of the Bank of Ghana.
Cheques and cheque books may be issued by banks to holders of FEAs and FCAs.

The Bank of Ghana reiterated that the Ghana cedi remains the sole legal tender in Ghana. Therefore, pricing, advertising, invoicing, receiving, and making payments for goods and services should be done in Ghana cedis, unless otherwise authorized by the Bank of Ghana.

Existing measures that were not amended by this notice continue to remain in force.

AngloGold Ashanti maintains and operates its FCA, FEA and Retention Accounts in compliance with the directives.






Localisationlocal participation policy


Mining companies must submit a detailed programme for the recruitment and training of Ghanaians with a view to achieving “localisation”, which is the replacement of expatriate personnel in a company’s Ghanaian operations by Ghanaian personnel. In addition, mining companies must give preference to Ghanaian products and personnel, to the maximum extent possible, consistent with safety, efficiency and economies. Recently passedThe Minerals and Mining (General) Regulations, 2012 (L.I. 2173) give further details on the localisation policy.

Except as otherwise provided in a specific mining lease, all immovable assets of the holder of the mining lease vest in the Ghanaian State upon termination, as does all moveable property that is fully depreciated for tax purposes. Moveable property that is not fully depreciated is to be offered to the Ghanaian State at the depreciated cost. The holder must exercise his rights subject to such limitations relating to surface rights as the Ghanaian Minister of Mines may prescribe.

Local content

Ghana’s Minerals Commission issued the Third Edition of the Local Procurement List pursuant to On 15 October 2020, the Minerals and Mining (General)(Local Content and Local Participation) Regulations, 20122020 (L.I. 2173). In 2018, some revisions2431) were madeadopted in order to this Local Procurement List and such changes became effective on 1 January 2019. The Third Editionexpand the scope of the Local Procurement List specifies the goods and services with Ghanaianlocal content which shall be procuredrequirements in Ghana by mining companies. Contract mining services, financial services and insurance services are now restricted to entities strictly incorporated in Ghana. Legal services are restricted exclusively to Ghanaian legal practitioners. Security services, catering services, haulage services and fuel are to be provided by companies whose shareholders and directors are exclusively Ghanaian. A list of goods to be exclusively procured locally has also been provided.

Regulation 2 of the Minerals and Mining (Support Services) Regulations, 2012 (L.I. 2174) (Support Services Regulations) groups mine support service providers into two classes: classes A and B. Ghanaians and non-Ghanaians are allowed to provide Class A support services, which include, among other things, contract mining services, mining and ancillary construction services or works, assay laboratory services, mining consultancy services and supply of mining equipment and spare parts. However, Class B support services are reserved for Ghanaian citizens and companies wholly owned by such citizens and whose directors are exclusively Ghanaian citizens and cover, for instance, services such as haulage services and transportation of personnel. In addition, in accordance with Regulation 2(1)(i) and 2(2)(c), the Minerals Commission can classify as a Class A or Class B support service any other service that is specifically and exclusively related to mining if it considers such service necessary for the effective and sustainable development of the mining industry. As a result, on 30 May 2017, the Minerals Commission added the following services to the classification of mine support services: Class A-Healthcare Services and Air Haulage Services, and Class B-Catering/Camp Management Services and Security Services.

Ground rent

In 2012, the Ghanaian Parliament passed the Fees and Charges (Amendment) Instrument, 2012 (L.l. 2191), which fixed mineral concession rent at GHS 9,016 cedis per square kilometre per annum as opposed to the previous rate of GHS 0.50 cedis per acre per annum. However, on 19 March 2014, the Office of the Administrator of Stool Lands informed the Ministry of Finance in writing that it had agreed with the Ghana Chamber of Mines to revise the fees to GHS 15.0 cedis per acre per annum. The Ghana Chamber of Mines has since 2 September 2014 instructed all mining companies to pay that agreed sum. Subsequently, the Fees and Charges (Amendment) Instrument, 2015 (L.I. 2208) was passed by Parliament on 23 December 2015, which, among other things, fixed the payment of ground rent by mining companies at GHS 15.0 cedis per acre per annum. Recently, the Minerals and Mining (Ground Rent) Regulations, 2018 (L.I. 2357) were enacted to confer powerFor example, there are restrictions on the Lands and Natural Resources Minister to make regulations on ground rent fornumber of expatriates that can be employed by mineral rights holders. Before this change, ground rent was determined by the Finance Minister under the relevant Fees and Charges legislation. However, these changes do not modify the rate of ground rent to be paid by mining companies, including AngloGold Ashanti.

The company has since paid the agreed ground rent for its Binsere leases, but paid $36 per square kilometre per annum for the Obuasi lease as specifically provided for in the lease. The company also indicated to the Office of the Administrator of Stool Lands that by virtue of the Ghana Stability Agreement, the company is protected from the increase in the ground rent for the duration of such agreement, and that the company’s payment of same cannot be deemed as a waiver of its rights under the Ghana Stability Agreement.

National Fiscal Stabilisation Levy

The National Fiscal Stabilisation Levy (NFSL) is a levy of five percent introduced in 2013 which is payable on net profits before tax. The National Fiscal Stabilisation Levy (Amendment) Act, 2014 (Act 882) has extended the application of the NFSL up to and including the 2017 year of assessment. The National Fiscal Stabilisation Levy (Amendment) Act, 2017 (Act 958) extended the application of the NFSL to the 2019 year of assessment. Mining companies were excluded from the scope of application of both amendment acts and are thus not subject to the NFSL.



Special Import Levy

The Special Import Levy (SIL) is a levy of two percent introduced in 2013 which is payable on imported goods at the port of entry. The Special Import Levy (Amendment) Act, 2017 (Act 944) was passed to remove the SIL payable on specific imported goods, such as some petroleum products, fertilizer and certain types of machinery and equipment. The Special Import Levy (Amendment) (No. 2) Act, 2017 (Act 953) extended the application of the SIL on imported goods to the 2019 year of assessment.

Customs and Excise (Petroleum Taxes and Petroleum Related Levies)

The Customs and Excise (Petroleum Taxes and Petroleum Related Levies) (Amendment) Act, 2014 (Act 886) reversed the excise tax on petroleum products (petroleum, gas oil, residual fuel oil, unified gasoline, kerosene, liquefied petroleum gas and local marine gas) from ad valorem to specific tax.

The Customs and Excise (Petroleum Taxes and Petroleum Related Levies) Act, 2005 (Act 685) revised duties, taxes and levies on specified petroleum products. The Customs and Excise (Petroleum Taxes and Petroleum Related Levies) Repeal Act, 2017 (Act 943) was passed to repeal Act 685.

Customs Common External Tariff

Following the passage of the Customs (Amendment) Act, 2015 (Act 905) by the Ghana Revenue Authority, the ECOWAS Regional Common External Tariff (CET) came into effect on 1 February 2016. This means that the Member States of the Economic Community of West African States (ECOWAS) will apply the same customs tariffs to third countries. The CET is one of the instruments to harmonize regulation in the ECOWAS Member States and strengthen its Common Market.

Directive from Commissioner of Customs

A Directive was issued from the Ghanaian Minister of Finance requiring persons who qualify for exemptions from import duties and taxes to make prior payment at the ports and subsequently apply for a refund.

Tax Stamp Policy

Ghana’s tax stamp policy was launched pursuant to the Excise Tax Stamp Act, 2013 (Act 873). Act 873 requires the manufacturer or importer of goods for which Excise Tax Stamp is required to bear the cost of the stamp (although the cost of the stamp may be subsidized as the Minister for Finance may determine). The policy makes provision for the Ghanaian government to bear the entire cost of the stamp for the first half of the year 2018 and bear half the cost for the second half of the year. The Ghanaian government will review its position on the cost burden after 2018.

Energy Sector Levies

The Energy Sector Levies Act, 2015 (Act 899), which received assent on 24 December 2015, consolidates existing energy sector levies and imposes a new levy, the Price Stabilisation and Recovery Levy. The Price Stabilisation and Recovery Levy, which is to be collected by the National Petroleum Authority and paid into the Price Stabilisation and Recoveries Account, applies to petrol at a rate of 12 Ghanaian pesewas per litre, to diesel at a rate of 10 Ghanaian pesewas per litre, and to liquefied petroleum gas at a rate of 10 Ghanaian pesewas per kilogram.

The Energy Sector Levies (Amendment) Act, 2017 (Act 946) amends Act 899 by a downward review of the National Electrification Scheme Levy from five percent to two percent and the Public Lighting Levy from five percent to three percent per price of kilowatts of electricity charged on all categories of consumers.

Royalties

The Minerals and Mining (Amendment) Act, 2015 (Act 900) was passed by Ghana’s Parliament and assented to by the Ghanaian President on 16 December 2015. It replaced the royalty provisions introduced by the Minerals and Mining (Amendment) Act, 2010 (Act 794) pursuant to which the rate of royalties was fixed by an Act of Parliament. Under the new regime, the relevant Minister prescribes the rate payable and the manner of payment by passing a Legislative Instrument or other subsidiary legislation. The existing royalty rate of five percent however remains the same until such time as the rate is altered in the manner prescribed. Act 900 also makes provision for the confiscation of the equipment of illegal miners.

Notification of the Minerals Commission - Expatriate Visitors to Mine Sites

Ghana’s Minerals Commission issued a directive to all mining companiesholders and mine support service providers in a bid to notifyenhance the Minerals Commissionparticipation of all expatriate visitors toGhanaians in the mining industry.

AngloGold Ashanti’s rights and permits

Obuasi

The Obuasi mine sites pursuant tooriginally held four contiguous mining leases, the Minerals andObuasi Mining (General) Regulations, 2012 (L.I. 2173)Lease and the MineralsBinsere 1, 2 and 3 Mining (Support Services) Regulations, 2012 (L.I. 2174).

Minerals Development Fund

Ghana’s Parliament passed the Minerals Development Fund Act, 2016 (Act 912) in order to establish a Minerals Development Fund (MDF) to address the development challenges affecting mining communities by setting aside 20 percent of mineral royalties received by the Ghanaian government for development projects.Leases. The MDF is to provide financial resources for the direct benefit of communities within mining areas. Act 912 also introduces theObuasi Mining Community Development Scheme to directly sponsor socio-economic development in communities in which mining operations take place or which are affected by mining activities. The Board for the MDF has yet to be constituted.

Local Governance - District Assemblies

The Local Governance Amendment Act, 2017 (Act 940) was introduced to restore the President’s discretionary power to revoke the appointment of government appointees to District Assemblies. Act 940 will also speed up the appointment processes to enable District Assemblies to perform effectively and forestall further delay of appointments to District Assemblies.

Environmental Laws and Regulations

In general, environmental laws and regulations in Ghana derive from the Constitution which imposes a duty on both the State and others to take appropriate measures to protect and safeguard the natural environment. Mining companies are required, under the GMM Act, Environmental Assessment Regulations, 1999 (L.I. 1652) and Water Use Regulations, 2001 (L.I. 1692), to obtain all necessary approvals from the Environmental Protection Agency (Ghana EPA), a regulatory body established under the Environmental Protection Agency Act, 1994 (Act 490), and, in appropriate cases, the Water Resources Commission and/or the Ghanaian Minerals Commission before undertaking mining operations. The Minerals and Mining (Health, Safety and Technical) Regulations, 2012 (L.I. 2182) also impose further obligations to obtain the necessary permits from the Inspectorate Division of the Ghana Minerals Commission for the operation of mines. The GMM Act also requires that mining operations in Ghana comply with all laws for the protection of the environment. Compliance with the relevant laws are enforced by a regime of sanctions including imposition of fines and in some cases a term of imprisonment.

As part of the Ghanaian environmental laws and regulations, mining operations are required to undergo an environmental impact assessment process that culminates in the issuance of an environmental permit prior to commencing operations. Environmental Management Plans are to be submitted to the Ghana EPA within 18 months after issuance of the environmental permit and then every three years thereafter. The plan must include details of the likely impacts of mining operations on the environment and local communities, as well as a comprehensive plan and timetable for actions to mitigate and remediate any adverse effects of the mining operations. Approval of the management plan results in the issuance of an environmental certificate.

In June 2014, the Ghana EPA and the Minerals Commission circulated draft Mining and Environmental Guidelines to all mining companies for comment.The guidelines concern environmental management, reclamation, closure requirements and the proposed Mining Community Development Scheme. The Mining Community Development Scheme has since been established pursuant to the Minerals Development Fund Act, 2016 (Act 912), discussed above.

Rules regarding the export of gold and diamonds

The Bank of Ghana introduced new measures to regulate and monitor the export of gold and diamonds from Ghana. From 15 September 2015, all exports of gold and diamonds must be carried out through the Precious Minerals Marketing Company Ltd (PMMC), except where the exporter is the holder of a licence that permits it to export directly, and the Ghana Revenue Authority (Customs Division) only permits gold to be exported by a licensed gold exporter who has a completed Form FEX A4 bearing Bank of Ghana’s embossment. The export measures do not apply to AngloGold Ashanti because the company holds a licence granted by the Minister for Lands and Natural Resources to sell and export its production.

The Bank of Ghana issued a notice (Notice No. BG/GOV/SEC/2016/02) which, among other things, now allows mining companies to sell the portion of foreign exchange receipts from export that was earmarked for surrender to the Bank of Ghana directly to the commercial banks.

In November 2016, the Ministry of Lands and Natural Resources issued a ministerial directive appointing the PMMC as designated laboratory for assaying in Ghana. The Ghana Chamber of Mines and the Ghanaian government agreed on the modalities for implementing the national assaying policy following discussions addressing the mining industry’s concerns. The national assaying program was therefore introduced in February 2018 after it was piloted among some mining companies. A final document for the implementation of the program will be provided once the Ghana Chamber of Mines and the PMMC address a number of outstanding issues regarding assaying methodologies.

Office of the Special Prosecutor

The Office of the Special Prosecutor Act, 2017 (Act 959) was passed to establish the Office of the Special Prosecutor as a specialised agency to investigate specific cases of alleged or suspected corruption or corruption-related offences involving public officers and

politically exposed persons in the performance of their functions as well as persons in the private sector involved in the commission of alleged or suspected corruption and corruption-related offences and to prosecute these offences on the authority of the Attorney General of Ghana.

Special Petroleum Tax

The Special Petroleum Tax Act, 2014 (Act 879) proposed a special petroleum tax of 17.5 percent as part of a rationalisation of the VAT regime and change in the petroleum pricing structure. The tax rate was reduced from 17.5 percent to 15 percent in 2017 pursuant to the Special Petroleum Tax (Amendment) Act, 2017 (Act 942). Parliament has passed the Special Petroleum Tax (Amendment) Bill, 2018 to reduce the special petroleum tax from 15 to 13 percent.

Budget Statements

Paragraph 855 of the 2018 Budget Statement indicated the government of Ghana’s intention to adopt a policy for leveraging Ghana’s gold deposits to attract additional funding for accelerated growth and development and to minimize exposure to the volatile price of gold. The Ghanaian government intends to accomplish this through factoring (an up-front payment instrument). There has been no further development other than the passage of the Minerals Income Investment Fund Bill into law.

The Multilateral Mining Integrated Project

The Multilateral Mining Integrated Project (MMIP) is a five-year project undertaken by the government of Ghana to address illegal and unsustainable mining practices in Ghana. The MMIP “combines a Legislation, Enforcement, Civil, Integrated and Technological Approach (LECITA) as a sustainable and structured yet regimented conjoint concept” of dealing with illegal mining. The MMIP involves (i) the review of and enforcement of the legal and regulatory regime of the small scale mining sector, (ii) reclaiming and rehabilitating degraded lands, (iii) dredging silted estuaries and waterways, (iv) implementing social interventions to facilitate livelihood creation in mining communities, (v) adapting technology to increase mining efficiency, processing, environmental and monitoring activities, and (vi) building capacity of artisanal and small-scale miners and regulatory institutions.

Mining properties

The company is required to pay ground rent to the government of Ghana and such other fees as are prescribed by legislation, including royalties on timber felled within the lease area.
Obuasi

The current mining lease for the Obuasi areaLease was granted by the governmentGovernment of Ghana on 5 March 1994. It grants mining concessions to land with1994, covering an area of approximately 338 square kilometreskm2 in the Amansie East and Adansi West districts of the Ashanti region, for a term of 30 years from the date of the agreement. The Binsere Mining Leases were granted on 9 April 1998, covering an area of 140 km2, for a term of 30 years from the date of the agreement. All leases in respect of the Obuasi mine had been duly ratified in accordance with Ghanaian law. In addition, a mining lease over an adjacent 140 square kilometres was also granted, resulting inMarch 2007, the total area under the mining lease increasing to 474 square kilometres.

The governmentGovernment of Ghana agreed to extend the term of the mining lease relating to the Obuasi Mine until 2054.Mining Lease for a further term of 30 years. The mining leaseamended Obuasi Mining Lease was formallyalso ratified by Parliament on 23 October 2008.

The Obuasi Mining Lease will expire in March 2054 and the Binsere Mining Leases in April 2028. The mining leases are renewable. On 3 March 2016, the Minerals Commission approved AGAG’sAGA Ghana’s application to surrender approximately 273.54 square kilometreskm2 of the area to the governmentGovernment of Ghana, reducing the lease areas to 201.46 square kilometres.km2. The remaining parcel of land that will be subject to the mining lease is situated within various villages and townships in the region but excludes the municipality of Obuasi. On 15 January 2021, the




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Minerals Commission approved AGA Ghana’s application to surrender a further 60.24 km2 of lease area, thereby reducing the total lease area to 141.22 km2. The current lease areas are covered by three mining leases: the Obuasi Mining Lease (87.48 km2), the Binsere 1 Mining Lease (29.03 km2) and the Binsere 2 Mining Lease (24.71 km2). These mining leases are covered by the Obuasi DA and Obuasi TCA.

Iduapriem


The Iduapriem has title to a 31 square kilometremine operates under four different mining lease granted on 19 April 1989leases: the Iduapriem Mining Lease (LVB1539/89) (36.47 km2), the Ajopa Mining Lease (LVB/WR326/09) (46.12 km2), the Teberebie Mining Lease (LVB3722H/92) (28.53 km2) and the Ajopa South Mining Lease (LR#1109/1999) (28.10 km2). On 17 February 2020, the mining leases were extended for a further period of 30 years. In January 2009, Iduapriem obtained a new mining lease, the Ajopa Concession, for a period of 10 years. The concession covers an area of 48.34 square kilometres. In December 2011, the Minister of Lands15 years and Natural Resources gave his consent for Teberebie’s title to a 25.83 square kilometre mining lease, grantedsuch leases will now expire in June 1992 for a period of 30 years, to be assigned to Iduapriem. While ownershipFebruary 2035. All leases in respect of the lease has passed to Iduapriem the registration of the transfer of the lease is stillmine have been duly ratified in process.accordance with Ghanaian law.



Guinea


General laws relating to mining

In Guinea, all mineral substances are the property of the Guinean State. Mining activities aremining industry is primarily regulated by lawLaw L/2011/006/CNT dated 9 September 2011 as amended by lawLaw L/2013/053/CNT dated 8 April 2013 and promulgated by decreeDecree D/2013/075/PRG/SGG dated 17 April 2013 (together, the Guinean“Guinea Mining Code)Code”).





The GuineanGuinea Mining Code is accompanied and implemented by various implementation decrees. To date, various decrees have been adopted,and orders, including decreeDecree D/2014/015/PRG/SGG adopting a model of mining convention, dated 17 January 2014, orderOrder A/2016/1584/MMG/SGG related to the administration’s capacities for the management of integrated mining projects (PARCA-GPI) and its steering committee, dated 6 June 2016, decreeand Decree D/2016/163/PRG/SGG on the national agency for the development of mining infrastructures (ANAIM), dated 13 June 2016,2016.

In 2017, Decree D/2017/285/PRG/SGG was adopted, which sets forth the conditions for the constitution and decree D/2016/215/PRG/SRG onmanagement of the appointment of executives toLocal Development Fund (“Fodel”), as well as Joint Order A/2017/6326/MMG/MATD/SGG, which sets forth the Ministry of Mines and Geology, dated 8 July 2016 and joint order A/2018/5212/MEF/MMG/MB/MATD/SGG related toconditions for the use, management and monitoringcontrol of the resources allocated to local authorities pursuant to article 165 of the Guinean Mining Code, dated 13 July 2018. In 2017, the modalities regardingFodel. Together, these set forth the use of the mining companies’ financial contribution to the development of the local communities and the rules applying to the Local Development Fund (Fodel)Fodel, which was created under the GuineanGuinea Mining Code have been enactedCode. On 13 July 2018, a Joint Order A/2018/5212/MEF/MMG/MB/MATD/SGG was issued, which regulates the use, management and monitoring of the resources allocated to local authorities pursuant to article 165 of the Guinea Mining Code. In 2019, an inter-ministerial committee was created to supervise and control the Fodel through the adoption of decree D/2017/285/PRG/SGG setting the conditions for the constitution and management of the Fodel, dated 31 October 2017 and the joint order A/2017/6326/Joint Order AC/2019/089/MMG/MATD/SGG setting out the conditions for the use,constitution, powers and management and controlof said inter-ministerial committee. On 6 September 2019, Decree D/2019/263/PRG/SGG was issued, which sets forth local content requirements in the framework of the Fodel, dated 22 November 2017. Also,implementation of public and private projects in Guinea.

On 16 June 2020, a joint order AC/2017/3228/MATD/MMG/new procedure for the export of gold by mining companies was enacted through the adoption of Decree D/2020/113/PRG/SGG, updatingwhich sets out, amongst other things: (i) when the act on the establishment, attribution and functioningindustrial production tax referred to in article 161-1 of the coordination committees in mining communities (CCLMS), dated 21 July 2017 has beenGuinea Mining Code shall be paid, and (ii) the process to be followed to export gold bullion.

On 27 April 2021, a Joint Order AC/2021/824/MMG/BCRG/SGG was issued establishing the fees and costs charged by the Ministry of Territorial Administration and DecentralisationGuinean mining authorities and the MinistryGuinean Central Bank in connection with the administrative procedures for the export of Minesgold by industrial and Geology. The main purpose of the CCLMs, in which all concerned mining companies are represented, being to preventsemi-industrial companies.

AngloGold Ashanti’s rights and settle disputes that may arise in mining communities.permits


The right to undertake mining operations can only be acquired by virtue of one of the following mining titles: surveying permit, small-scale mining licence, exploration licence, mining licence or mining concession.

The group’s Guinean subsidiary, Société AngloGold Ashanti de Guinée SA (SAG)S.A. (“SAG”), has title to the Siguiri mine in the form of a mining concession, granted by virtue of Presidential decreeDecree D/97/171/PRG/SGG, dated 4 August 1997, for a period of 25 years (Mining Concession)(the “Mining Concession”). The Mining Concession covers exploration and mining for gold, silver, diamonds and associated ores, and was originally covered by a mining convention entered into with the Republic of Guinea on 11 Novemberin 1993 (Convention de Base) and amended in 2005. The Convention de Base provided for an initial duration of 25 years and would have expired in 2018.

The Guinean Mining Code, which came into force after the conclusion of the Mining Convention, confirms the validity of mining titles previously issued. The Guinean Mining Code also provides that for holders of validly signed and ratified mining conventions, the application of the Guinean Mining Code will take place by way of amendments to the relevant mining convention (in the case of SAG, the Convention de Base), which amendments are to be negotiated between the mining convention holder and the Guinean State.

On 28 June 2016, SAG and the governmentGovernment of Guinea concluded a revised and consolidated mining convention (convention de base (Revised Convention de Base)révisée et consolidée) (the “Revised Mining Convention”) which encompasses a renewal of the term of the original Convention de Basemining convention and other amendments necessary to support an expansion project proposed to extend the life of the Siguiri mine (Expansion)(the “Expansion”).

In compliance with the provisions of the GuineanGuinea Mining Code, the Revised Mining Convention de Base was ratified by the Guinean National Assembly (law(Law L/2016/N°067/AN dated 30 December 2016, promulgated by decreeDecree D/2017/015/PRG/SGG dated 24 January 2017), submitted to the Guinean Supreme Court which rendered a favourable opinion (judgment(Judgement N°AC 005 dated 16 January 2017), and ratified by the President of the Republic (decreeof Guinea (Decree D/2017/021/PRG/SGG dated 24 January 2017).

As a consequence, as and from 24 January 2017, the Revised Convention de Base has cancelled and, following which it replaced the original Convention de Base,mining convention and governs the operations at the Siguiri mine and under the Mining Concession.became effective on 24 January 2017.









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Key elements of the Revised Mining Convention de Base include the following:


•a duration of 25 years, expiring 23 January 2042, subject to further renewal if mining operations continue at that time; and with continue;
•the term of the Mining Concession beingis aligned with the term of the Revised Mining Convention de Base such thatsince the Republic of Guinea committed to maintain the Mining Concession will be renewed as long asfor the entire duration of the Revised Convention de Base remains in force;Mining Convention;
•SAG’s operations remain governed by the 1995 Mining Code, the predecessor to the current Guinea Mining Code (the prior mining code) and are only subject to the provisions of the GuineanGuinea Mining Code to the extent they are expressly set out in the Revised Convention de Base;Mining Convention;
•the stability of the customs and tax regime is guaranteed for the entire initial term of the Revised Mining Convention, de Base, and subject to certain conditions being met, any renewal period(s);
•the Republic of Guinea holds a 15 percent free-carried/non-contributory interest;
•the Republic of Guinea is entitled to a royalty on gold of five5 percent based on a spot gold price as per LBMA fixing (PM) up until the date of steady state commercial production of the first phase of the Expansion, after which the royalty rate applicable to gold will vary depending on threshold prices as per LBMA fixing (PM), namely: three3 percent if the gold price is $1,300 or less, five5 percent, if above $1,300 and up to $2,000 and seven7 percent if above $2,000;
•SAG will enjoy a five yearbenefits from 5-year income tax holiday as and from the beginning of steady state commercial production of the first phase of the Expansion, after which the income tax rate is set at 30 percent;
•a local development tax of 0.4 percent is payable on the sale price for gold and silver received by SAG up until 31 December 2027, after which it will be increased to 0.6 percent;

•salaries of expatriate employees are subject to a 10 percent income tax;
•goods imported into Guinea for purposes related to the construction and commissioning of the first phase of the Expansion are exempt from all customs taxes and duties; and
•SAG is committed to adopting and progressively implementing a plan for the effective rehabilitation of the mining areas disturbed or affected by its operations.


The Mining Concession covers an area divided into four blocks and totallingtotaling approximately 1,495 square kilometres.km2. SAG has the exclusive right to explore and mine in any part of the concession area for the duration of the period of the Revised Convention de Base.Mining Convention. The Revised Mining Convention de Base also grants SAG with the option to secure certain land rights over additional areas currently covered by exploration permits, but to which SAG may need access for purposes of establishing roads or storage of tailings. The Mining Concession is due to expire on 4 August 2022. On 1 February 2022, a renewal request was filed in accordance with the provisions of the Revised Mining Convention. Pursuant to the Revised Mining Convention, the Mining Concession can be renewed for one or more period(s) that cannot exceed 10 years each as long as the Revised Mining Convention is in force.


The Revised Mining Convention de Base is subject to early termination if the parties formally and expressly agree to it, if the last of the mining title held by SAG expires or is relinquished without any renewal application having been filed, if all project activities are voluntarily suspended for a continuous period of 12 months or are permanently abandoned by SAG, or if SAG goes into voluntary liquidation or is placed into liquidation by a court of competent jurisdiction.



Mali


Mineral rightsGeneral laws relating to mining

The mining industry in Mali are governedis primarily regulated by lawOrdinance No. 2012-0152019-022/P-RM dated 27 February 2012September 2019 containing the new mining code (New Malianof the Republic of Mali (the “Mali Mining Code), replacing ordinanceCode”) and Decree No. 99-32/P-RM of 19 August 1999 enacting the previous mining code, as amended by ordinance No. 013/2000/P-RM of 10 February 2000 and ratified by law No. 00-011 of 30 May 2000 (1999 Malian Mining Code) and decree No. 99-255/P-RM of 15 September 19992020-0177/PT-RM dated 12 November 2020 implementing the 1999 MalianMali Mining Code. On 8 December 2020, Decree No. 2020-0288/PM-RM enacted the new model mining convention referred to in Decree No. 2020-0177/PT-RM.


DueThe Mali Mining Code applies to stabilisation clauses in the agreement defining the mining rights and obligations ofoperations previously carried out by AngloGold Ashanti entities in Mali (further(as further described below), the mining operations carried out by the AngloGold Ashanti entities in Mali are subject except with respect to the provisionsvalidity, scope and duration of the previous mining codes of 1970their exploitation permits and 1991, but are also, for residual matters, expressly subject to the provisions of the New Malian Mining Code.on tax and customs regime contained in their mining conventions (conventions d’établissement) for their remaining duration. In this regard, the transitory rules of the New MalianMali Mining Code specify that provisions with respectmining conventions in force remain valid for their remaining term and their holders continue to certain matters such as administrative surveillance, mine police, rehabilitationbenefit from the stability of the tax and mine closure apply to mining titles issued prior to its entry into in force).customs regime set out therein.


Applicable mining regime

ProspectingExploration and prospecting activities are carried out under prospectingexploration authorisations (autorisation(autorisation d’exploration) or exploration permits (permis de prospection). The authorisationsrecherche), which give an individual or corporate entitytheir holder the exclusive right to carry out prospectingexploration activities over a given areaarea. Exploration authorisations are granted by the Mining Administration (Administration chargée des Mines) for a non-renewable period of three years renewable without a reduction in the area covered by the authorisation. Exploration activities may be carried out undermonths, while exploration permits (permis de recherche). The latter are granted to corporate entities only by order of the Malian Minister of Mines. Exploration permits are grantedMinisterial Order for a period of three years renewable twice for additional three-year3-year periods. Each renewal requiresApplications for exploration authorisations and exploration permits must contain various documents attesting to the permit holder to relinquish 50 percentfinancial and technical capacity of the area covered by such permit. The entity applying for suchapplicant as well as a permit must provide proof of technicaldetailed works and financial capabilities.costs programme.


AnA large scale permit exploitation permit (permis d’exploitation)(permis d’exploitation de grande mine) is required to mine a deposit located within the area of a prospecting authorisation or an exploration permit. The exploitation permit and grants the holder an exclusive right to prospect, explore and exploit the named substances and proceed with the processing and commercialisation of the substances extracted within its perimeter. Large scale exploitation permits are granted by decree of the Head of Government for a maximum period of 3012 years renewable three times for an additional 10 years. The exploitation permit is granted only toyear-periods until depletion of the holder of an exploration permit or of a prospecting authorisation and covers only the area governed by the exploration permit or the prospecting authorisation.deposits. An application must be submitted to the MinisterMining Administration (Administration chargée des Mines) and must contain



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various documents attesting to the National Directorfinancial and technical capacity of Mines.

the applicant, a feasibility study, a detailed environmental study in respect of the impact of the project on the environment, an environmental permit, a closure and rehabilitation plan as well as a community development plan. As soon as the large scale exploitation permit is granted, the permit holder must incorporate a company under the lawlaws of Mali. The permit holder willMali and assign the permit for free to this company. The Malian State will have a 10 percent free-carried interest in the company. This interest will be converted into priority shares and the Malian State’s participation will not be diluted in case of an increase in capital. In addition, the company is required to ensure that private Malian investors are offered the possibility to acquire 5 percent of their capital.


Applications for exploitation permits must contain various documents attesting to the financial and technical capacity of the applicant, a detailed environmental study in respect of the impact of the project on the environment, a feasibility study and a bank deposit. The permit is granted by decree of the Head of Government. Refusal to grant a permit may only be based on two grounds: insufficient evidence to support the exploitation of the deposit or the failure of the environmental study.

Applications for prospecting authorisations and exploration permits must contain various documents attesting to the financial and technical capacity of the applicant, a detailed works and costs programme, a map defining the area which is being requested and providing geographical coordinates, the exact details relating to the identity of the applicant and evidence of the authority of the signatory of the application. Such titles are granted by ministerial order. Any refusal to grant such titles shall be notified by letter from the Minister of Mines to the applicant.



All mining titles mentioned above (save for the exploration authorisation) require an establishmenta mining convention (convention(convention d’établissement)tablissement) to be signed by the Malian State and the titleholder defining their rights and obligations. A standard formobligations, the duration of such establishment convention has been approved by decree of the Head of Government.which is 20 years.


AngloGold Ashanti’s rights and permits

Historically, AngloGold Ashanti hashad interests in the Morila, Sadiola and Yatela gold mines, all of which arewere governed by establishmentmining conventions (conventions d’établissement) covering exploration, mining, treatment and marketing in a comprehensive document. These documents include general provisions regarding exploration (work programme, fiscal and customs framework) and exploitation (formation of a local limited liability mining company, State interest, fiscal and customs framework governing construction and exploitation phases, exchange controls, marketing of the product, accounting regime, training programmes for local labour, protection of the environment, reclamation, safety, hygiene and dispute settlement). The Morila and Sadiola gold mines were sold in November and December 2020, respectively.


AngloGold Ashanti has complied with all applicable requirements andIn April 2017, Société d’Exploitation des Mines d’Or de Yatela S.A. (“Yatela”), the relevant permits have been issued (subject tocompany operating the developments regarding the permit for Yatela as described below). Morila, Sadiola and Yatela have 30-year permits which expire in 2029, 2024 and 2030, respectively. Morila’s Exploitation Permit covers approximately 200 square kilometres and was issued on 4 August 1999. Sadiola’s prospecting and exploitation agreement covers approximately 303 square kilometres and was originally entered into on 5 April 1990.

Yatela has begungold mine, began the implementation of a closure plan in order to relinquish the property. In parallel, on 14 February 2019, a share purchaseAngloGold Ashanti and its joint venture partner IAMGOLD Corporation announced an agreement was entered into withto sell each of their 40% interests in Yatela to the governmentGovernment of Mali, whereby Sadiola Exploration Limited, a subsidiary jointly held by AngloGold Ashanti Limited and IAMGold Corporation, agreed to sell towhich holds the governmentremaining 20% interest. Completion of Mali its 80 percent participation in Société d’Exploitation des Mines d’Or de Yatela. Thethe transaction remainsis subject to the fulfilment or waiver of a number of conditions precedent. Inprecedent and has been delayed several times since 2019 due to political instability and related events in Mali as well as the course of these discussions, an administrative error occurred, leading to the cancellation ofCOVID-19 pandemic. Yatela’s exploitation permit through decree No. 2017/0613/PM-RM dated 28 July 2017, notified tocovers approximately 212 km2. Yatela on 5 October 2017. This error has since then been corrected through the issuance of decree No. 2017-00951/PM-RM dated 28 November 2017 and decree No. 2018-0368/PR-RM dated 12 April 2018, the purpose ofa 30-year permit which was to reinstate Yatelaexpires in all of its rights under its exploitation permit.2030.



Tanzania


Mineral rightsGeneral laws relating to mining


Tanzania Mining Act and Tanzania Mining Regulations

Mineral rights in the United Republic of Tanzania are principally governed by (i) the Mining Act, 2010 (No. 14) (Tanzania Mining Act)Chapter 123 (R.E. 2019), as amended by the Written Laws (Miscellaneous Amendments) Act, 2017 (No. 7),(the “Tanzania Mining Act”) and (ii) the Mining Regulations, 2010, (Tanzania Mining Regulations), as amended in 2018, which include:(the “Tanzania Mining (Mineral Rights) Regulations, 2018; Mining (Environmental Protection For Small Scale Mining) Regulations, 2010; Mining (Mineral Beneficiation) Regulations, 2018; Mining (Minerals and Mineral Concentrates Trading) Regulations, 2018; Mining (Safety, Occupational Health and Environmental Protection) Regulations, 2010; Mining (Radioactive Minerals) Regulations, 2018; Mining (Local Content) Regulations, 2018; the Mining (Geological Survey) Regulations, 2018; and the Mining (Audit and Inspection of Records) Regulations, 2018.

Regulations”). The Tanzania Mining Act and the Tanzania Mining Regulations came into force in 2010. In July 2017,November 2010 followed by amendments to the Tanzania Mining Act was amended by the Written Laws (Miscellaneous Amendments) Act,in 2017 (No. 7) and subsequent amendments to the Tanzania Mining Regulations followed in January 2018. 2018 and 2019. Those amendments, together with an Executive Order, introduced, among other matters, (i) the Tanzania Mining Commission; (ii) local content requirements for procurement of goods and services; and (iii) Mining Licence requirements of 5 percent of a licencee’s equity to be held by Tanzanians, with 80 percent of its managerial positions to be held by Tanzanians and 100 percent of other positions to be held by Tanzanians, in addition to the shareholding of the Government of Tanzania pursuant to Section 10 of the Tanzania Mining Act (i.e. free-carried interest).

Minimum shareholding and public offering

In 2016, the Mining (Minimum Shareholding and Public Offering) Regulations, 2016, as amended, was adopted. The regulations set out the requirement to sell shares to Tanzanian nationals, by way of a public offering and listing on the Dar es Salaam Stock Exchange, which will apply to companies that are carrying out large scale mining operations. The regulations also require all existing holders of a special mining licence to list a minimum of 30 percent of their shares on either the Main Investment Market or the Enterprise Growth Market Segment of the Dar es Salaam Stock Exchange within 6 months of the regulations coming into force, which was on 24 February 2017. However, the company believes the listing requirement conflicts with the mining development agreement. In September 2020, the Government of Tanzania published the Mining (Minimum Shareholding and Public Offering) (Amendment) Regulations, 2020, which exempts companies holding special mining licences from local listing requirements if such mining company has entered into an agreement with the Government of Tanzania that provides for a non-dilutable free-carried interest in such mining company and an economic benefits sharing arrangement.

Arbitration

Along with other major mining companies, AngloGold Ashanti’s subsidiaries are seeking a constructive dialogue with the Government of Tanzania to gain assurances that the Geita gold mine will not be affected by recent legal and fiscal changes adopted by the Government in light of their mining development agreements which guarantee (i) fiscal and regulatory stability,



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and (ii) an agreement between all parties before material legal and regulatory changes are made. As a precautionary step to safeguard its interests, AngloGold Ashanti commenced international arbitration proceedings against the Government of Tanzania in connection with the enactment of this legislation in July 2017. Declaratory relief is sought in accordance with the terms of the company’s existing mining development agreement to preserve its and its shareholders’ rights and interests in the Geita gold mine. AngloGold Ashanti is seeking confirmation from the Government of Tanzania that, as a result of its existing mining development agreement, the company does not fall within the scope of the new mining legislation that includes, among other things, (i) listing requirements; (ii) an increase in the rate of revenue royalties from 4 to 6 percent and a 1 percent clearance fee; and (iii) a right for the Government of Tanzania to (a) renegotiate existing mining agreements at its discretion, (b) receive a non-dilutable, free-carried interest of no less than 16 percent in all mining projects, and (c) acquire up to 50 percent of the shares of the mining company commensurate with the total tax expenditure incurred by the Government in favour of the mining company. AngloGold Ashanti can provide no assurance that the new mining legislation, including the listing requirements, will not apply to its operations in Tanzania and the outcome of the arbitration action may have a material adverse impact on the company’s results of operations and financial condition. See also “Item 8A: Legal Proceedings—Tanzania”.

Categories of mineral right licences

Ownership of and control over minerals on, in or under the land vest in the President of the United Republic of Tanzania as trustee for the people of Tanzania. No person is allowed to prospect for minerals or carry on mining operations except pursuant to the authority of a mineral right licence granted, or deemed to have been granted, under the Tanzania Mining Act or its predecessor acts.

To enable a company to prospect or mine, the TanzanianTanzania Ministry of Minerals (MEM)(“MEM”) initially grants an exclusive prospecting licence. Upon presentation of various documents, including a feasibility study, together with certain other environmental, social and financial assurances, the MEM may then grant a form of licence for mining. Licensing decisions take into account the abilitiesThree categories of the company (including its mining, financial and technical capabilities), projected rehabilitation programmes, environmental compliance and the payment of royalties.

The following licences can be applied for under the Tanzania Mining Act:

licences for exploration, licences for mining, and licences for ancillary activities. Licences for Exploration:
exploration include prospecting licence;licences and
gemstone prospecting licence.

licences. Licences for Mining:
mining include special mining licencelicences (if the proposed capital investment is equal to at least $100 million);
, mining licencelicences (if the proposed capital investment is equal to between $100,000 and $100 million); and
primary mining licencelicences (reserved for Tanzanian citizens).


Licences for Ancillary Activities:
processing licence;
smelting licence; and
refining licence.
For purposes of AngloGold Ashanti’s Geita Gold Mine, only prospecting and special mining licences are relevant.


A prospecting licence grants the holder the exclusive right to prospect in the area covered by the licence for all minerals within the class of minerals applied for. The classes that can be applied for include (amongst other things):
metallic minerals;
energy minerals;
gemstones other than kimberlitic diamonds; and
kimberlitic diamonds.

An application for a prospecting licence is made to the Tanzania Mining Commission and the licence, once granted, is valid for a periodan initial term of four years. After the initial term, the licence is renewable for a further period but there isof three years, with no option to renew after the first renewal.for renewal thereafter. Upon each renewal, 50 percent of the area covered by the licence must be relinquished. A company applying for a prospecting licence must, amongst other things, state the financial and technical resources available to it.

Holders of prospecting licences over a tenement will not automatically have first right to any mining licence granted over that tenement. However, in practice, they will be best positioned to meet the requirements to be granted a form of licence for mining.


Mining is mainly carried out through either a mining licence or a special mining licence, both of which confer on theirthe holder the exclusive right to conduct mining operations in or on the area covered by the licence. A special mining licence is granted for the shorter of either the estimated life of the ore body indicated in the feasibility study report or such period as the applicant may request. It is renewableThe holder of a special mining licence may apply for renewal of its licence at any time but no later than one year before the expiry of the licence and such renewal shall not be for a further period not exceeding the estimatedestimate life of the remaining ore body.

Except in the case of a special mining licence, a mineral right may be freely transferred by its holder (in whole or in part) to another person or entity without requiring consent from the MEM. However, the Tanzania Mining Commission must be notified of any transfer of a prospecting licence and will refuse to register the transfer, unless the transferee proves that it meets the financial and technical capability criteria required to apply for such licences. The grant and assignment of a special mining licence generally requires the approval of the Cabinet after the Tanzania Mining Commission has forwarded the application to the relevant Minister for further approval. There are limited exceptions to the requirement for the licensing authority’s consent (such as transfers to an affiliate company of the licence holder or to a financial institution or bank as security for any loan or guarantee in respect of mining operations).

Special mining licences have certain fiscal and other advantages over mining licences, as the holder of a special mining licence may enter into a mining development agreement with the governmentGovernment of Tanzania to guarantee the fiscal stability of a long-term mining project and make special provision for the payment of royalties, taxes, fees and other fiscal imposts and aimposts. A special mining licence holder may, in certain circumstances, unilaterally amend the programme of the mining operations agreed with the MEM.


AngloGold Ashanti concluded aTax laws relating to mining development agreement with

Currently, the MEM on 24 June 1999 (Mining Development Agreement) and was issued a special mining licence covering approximately 196 square kilometres for a period of 25 years, which expires on 26 August 2024.

On 9 October 2014, an addendum tomain tax laws in Tanzania comprise the Mining Development Agreement was entered into ratifying the following changes:

An increase in the royalty rate from three percent to four percent with effect from 1 May 2012;
With effect from the financial year 2015, the capital allowance applicable to the unredeemed qualifying capital expenditure (15 percent per annum) referred to in section 18(a) of the Income Tax Act , 1973 (No. 33) shall no longer apply; and
With effect from 1 July 2014, Geita Gold Mining Limited is liable to pay the Geita District Council service levy at a rate of 0.3 percent on turnover (no longer capped at $200,000 per annum).

Fiscal regime

The Finance Act, 2015 (No. 16) which was assented to on 28 June 2015 and came into force on 1 July 2015 contains a provision for a 30 percent capital gains tax on the sale of shares by an off-shore parent company. This provision was introduced by the Finance Act, 2012 (No. 8) and in this legislation, additional changes were also made to the procedure for payment of capital gains tax by the seller of shares. Tax at the rate of 30 percent is payable by way of an initial instalment of 20 percent on the transfer, based on the notional gain that the seller would make after a further instalment of the remaining 10 percent is due.

The Value Added Tax Act, 2014 (No. 5) (the VAT Act), which came into force on 1 July 2015, restrictsand the Finance Act, 2017 (No. 4), which came into force on 1 July 2017. Both tax laws impose and revise certain taxes, duties, levies and fees. Among other provisions, inspection or clearance fees on the exportation or domestic use of minerals were introduced. Such exportation or domestic use is restricted unless such minerals have been inspected or cleared at the mining areas, ports, airports, border or posts and the clearing fee of 1 percent of the gross value of the minerals has been paid by the exporter or any other person in possession thereof. Local government levies and environmental management fees and charges apply as well.

Effective 20 July 2017, the Value Added Tax Act, 2014 (No. 5) (the “VAT Act”) was amended in order to restrict VAT relief on purchases madefor VAT input tax paid by mining companies. Thecompanies on goods and services. Prior to the enactment of this amendment to the VAT Act, is specific in that it provides that no purchase by companies is exempt or zero rated, unless specified by the law. Previously mining companies were entitled to 100 percent100% VAT relief.


Local government levies

As mentioned above, following the signaturerelief in respect of the addendumgoods and services they purchased. The amendment prohibits refunds for VAT input tax incurred on a series of raw products, including the exportation of “raw minerals”. Subsequently, the Tanzania Revenue Authority (“TRA”) denied our applications for VAT input credit refunds, which amounted to a total of $142 million (after discounting provisions) as of 31 December 2021, covering the Mining Development Agreement Geita Gold Mine is required to pay local government a service levyperiod from July 2017 onwards, on the basis that all of 0.3 percentthe gold doré that we export constitutes “raw minerals” for purposes of its gross annual turnover in linethe VAT Act. In response, the company filed formal notices of objection with the Local Government FinancesTRA stating that the exportation of gold doré is, in its view, not covered by the restriction since doré does not fall within the category of “raw minerals” as used in the VAT Act. On 22 February 2019, the Tanzania Mining Act 1982was amended to introduce a definition for “raw minerals” which supports our interpretation that gold doré is excluded from the prohibition. On 1 July 2020, the Finance Act, 2020 (No. 9).8), amended the VAT Act, without retrospective effect, in order to remove the restrictions on VAT input tax credits for the exportation of “raw minerals” as well as a series of other raw products. This recent amendment confirms the technical basis for VAT input tax recovery for mineral exporters from July 2020 onwards. VAT claims from July 2020 onwards are subject to verification procedures by the TRA before any refunds will be received. In 2021, the


Minimum shareholding

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company was able to offset $54 million of verified VAT claims (from July 2020 onwards) against its corporate tax liability in Tanzania. Discussions with the TRA are ongoing to resolve our historical claims for VAT input credit refunds for the period from July 2017 to June 2020.

Natural resources, export and public offeringother rules


The Mining (Minimum Shareholding and Public Offering) Regulations, 2016Natural resources legislation

In Tanzania, two laws in respect of natural resources came into force in July 2017: the Natural Wealth and Resources Contracts (Review and Re-negotiation of Unconscionable Terms) Act, 2017 (No. 6) (the “Unconscionable Terms Act”) and the Natural Wealth and Resources (Permanent Sovereignty) Act, 2017 (No. 5) (the “Permanent Sovereignty Act” and together with the Unconscionable Terms Act, the “Natural Resources Laws”). Implementing regulations were published in January 2020. The Natural Resources Laws provide that Tanzania has sovereignty over its natural resources and that all arrangements or agreements that relate to “natural wealth and resources” are subject to review by the National Assembly to ensure that they are in the interests of the people of Tanzania. During a review all unconscionable terms as interpreted in accordance with the law are expunged from the agreement. In addition, under the laws, disputes over natural wealth and resources will not be subject to any proceedings in any foreign court or tribunal. As a result, investors are restricted from accessing international dispute resolution mechanisms. Accordingly, companies are now required to adopt Tanzanian law and local dispute resolution in all mining agreements. As such, all disputes will be handles by Tanzanian judicial bodies or any other Tanzania government body vested with powers to resolve disputes. In addition, to ensure that the Government Notice No. 286 published on 7 October 2016 and revised by amendment on 24 February 2017.the people of Tanzania obtain an equitable stake in the exploitation of mining resources, all project earnings must be retained in Tanzanian banks. Investors are also prevented from freely exporting raw minerals and repatriating funds.


Section 6 of the Unconscionable Terms Act specifically provides that where there is an unconscionable term, the National Assembly may pass a resolution for re-negotiation of the agreement whereupon the Government shall serve notice to the investor to re-negotiate the term or agreement. The regulations set outGovernment and the requirementparticular investor have 90 days from the notice date to re-negotiate the term or agreement. If both parties fail to revise the unconscionable term, the term will be deemed removed from the agreement. A term is considered “unconscionable” under the Unconscionable Terms Act if, among other grounds, the requirements or provisions of the agreement restrict the right of the state to exercise authority over foreign investment within the country and in accordance with the laws of Tanzania, are inequitable and onerous to the state, secure preferential treatment designed to create a separate legal regime to be applied discriminatorily for companies that are carrying out large scale mining operations to sell shares to Tanzanian nationals, by waythe benefit of a public offering and listing onparticular investor, deprive the Dar es Salaam Stock Exchange.

The regulations also require all existing holderspeople of a special mining licence to list a minimum of 30 percent of their shares on either the Main Investment Market or the Enterprise Growth Market SegmentTanzania of the Dar es Salaam Stock Exchange within six monthseconomic benefits derived from subjecting natural wealth and resources to beneficiation in the country, or subject the state to the jurisdiction of the regulations coming into force, which was on 24 February 2017. However, we believe the public offeringforeign laws and listing requirements conflict with the Mining Development Agreement and have, as a precautionary step to safeguard the company’s interests, commenced international arbitration proceedings against the government of Tanzania in connection with the enactment of this legislation.foreign courts or tribunals.


Labour and immigration law requirementsLocal participation policy


On 15 September 2015, the Non-Citizens (Employment Regulation) Act, 2015 (No. 1) (Non-Citizens Act)(the “Non-Citizens Act”) came into force. The Non-Citizens Actforce which vests powers concerning work permits with the Labour Commissioner. Henceforth,Therefore, non-citizens wishing to be employed in the country are required to apply and be granted a work permit before applying for a residence permit. Before granting the work permit, the Labour Commissioner must be satisfied that all efforts have been explored to acquire a local expert. Further, the company is required to submit a succession plan which sets out a well-articulated plan for the transfer of the non-citizen’s knowledge and expertise to Tanzanian citizens. Moreover, the Commissioner General of Immigration is required to take into consideration conditions of the work permit issued by the Labour Commissioner when granting a residence permit.


Previously, the issuance of a residence permit was inclusive of a work permit as the resident permit covered workingAngloGold Ashanti’s rights and living in Tanzania.permits


Further, the Non-Citizens Act introduced the Short-Term Permit (STP). The STPGeita gold mine is granted to non-citizens who wish to worklocated in the countryLake Victoria goldfields of the Mwanza region of Tanzania. AngloGold Ashanti has concluded a mining development agreement with the Ministry of Minerals on 24 June 1999 and was issued a special mining licence (SML45/99) covering approximately 196 km2 for a period of not more than six months. Foreigners intending to work in Tanzania for more than 3 months are required to apply for25 years, which expires on 26 August 2024. On 9 October 2014, an STP. The application for STP is madeaddendum to the Ministry of Labour and Employment. To reside in Tanzania, holders of STP would also require a valid residence permit.

Transparency and accountability requirements

In 2015, the Tanzania Extractive Industries (Transparency and Accountability) Act, 2015 (No. 23) (TEI Act) camemining development agreement was entered into force.

The TEI Act establishes the Tanzania Extractive Industries (Transparency and Accountability) Committee (Committee), an independent government entity which is an oversight body for promoting and enhancing transparency and accountability in the extractive industry.

The Committee has powers under the TEI Act to impose obligations on specified extractive industries and statutory recipients to receive information on reconciliation on payments made and revenues received by the government of Tanzania. In addition, an extractive industry is required under the TEI Act to submit to the Committee annual reports containing information on local content and corporate social responsibility.


Amendment of the Tanzania Mining Act and the Tanzania Mining Regulations

The Tanzania Mining Act was amended in July 2017 followed by an amendment of the Tanzania Mining Regulations in 2018, together with an Executive Order introducing,ratifying, among other things, the following:

Establishment of the Tanzania Mining Commission.
Dissolution of the Tanzania Minerals Audit Agency (TMAA): all of TMAA’s functions, assets, liabilities and powers are now transferred to the Tanzania Mining Commission. Further, the Geological Survey Agency was disestablished and a new Geological Survey of Tanzania (GST) has been introduced in its place.
Dissolution of the Tanzania Mining Advisory Board (TMAB): the functions and powers of the TMAB have been taken over by the Tanzania Mining Commission including the functions of the Commissioner for Minerals and the function of the TMAA. Further, the Tanzania Mining Commission has also been made responsible for matters, related to auditing and monitoring of mineral

production in Tanzania. The Tanzania Mining Commission has powers to audit quality and quantity of mineral produced and exported by mining entities, financial records of mining entities for the purposes of tax assessments, and environmental management expenditures of the mining entities for the purpose of assessment of compliance to the mine closure plan. Mineral rights holders were required to submit all geological information in their possession to the GST.
A local content requirement for procurement of goods and services: the Tanzania Mining Act requires that mining companies must give: (i) first preference to goods and services provided or manufactured locally in Tanzania where they meet mining industry specifications (established by the Standards Authority / internationally acceptable standards), (ii) first consideration for employment to qualified Tanzanians, and (iii) adequate provision for on-the-job training of Tanzanians. Specific minimum local content thresholds are specified in Schedule 1 to the Tanzania Mining Regulations. These will be determined by the Tanzania Mining Commission alongside the work programme. The relevant Minister may prescribe additional minimum local content thresholds. Mining companies must also submit a local content plan annually and a long-term local content plan to the Tanzania Mining Commission for approval. They shall also within 45 days of the beginning of each year submit to the Tanzania Mining Commission an annual Local Content Performance Report covering all its projects and activities for the year under review.
Mining Licence: to qualify for holding a Mining Licence in Tanzania, five percent of a licensee’s equity must be held by Tanzanians, with 80 percent of its managerial positions held by Tanzanians and 100 percent of other positions held by Tanzanians, in addition to the shareholding of the government of Tanzania pursuant to section 10 of the Tanzania Mining Act (i.e., free-carried interest). This amount is determined, and may be varied, by the relevant Minister.
Establishment of the Local Content Committee (LC Committee): the LC Committee will oversee the implementation of the Tanzania Mining Regulations and is comprised of a member of the Tanzania Mining Commission, the Director of Labour and Employment, a member of the Tanzania Private Sector Foundation, the CEO of the Geological Survey of Tanzania, the head of legal services at the Ministry for Minerals and the Executive Secretary of the Tanzania Mining Commission. The LC Committee sets minimum standards for local content plans and reports to the Tanzania Mining Commission.
Cancellation of retention licences: the right over such cancelled retention licences revert to the government of Tanzania.
Integrity Pledge: the requirement to provide an Integrity Pledge as a formal and concrete expression of the commitment by a mineral holder to abide by ethical business practices and support the national stand against corruption.

However, we believe that the public offering and listing requirements (as described above) and certain aspects of the amendments to the Tanzania Mining Act and the Tanzania Mining Regulations conflict with the Mining Development Agreement. AngloGold Ashanti’s subsidiaries are seeking a constructive dialogue with the government of Tanzania to gain assurances that the Geita Gold Mine will not be affected by these legal and fiscal changes, given the Mining Development Agreement which guarantees fiscal stability as well as agreement between all parties before material legal and regulatory changes are made. As a precautionary step to safeguard its interests, AngloGold Ashanti’s subsidiaries have commenced international arbitration proceedings against the government of Tanzania in connection with the enactment of this legislation, as first announced in July 2017. The arbitration proceedings are currently suspended until July 2019.

The arbitration action against the government of Tanzania seeks declaratory relief in accordance with the terms of the Mining Development Agreement to preserve the company’s and its shareholders’ rights and interests in the Geita Gold Mine, including confirmation from the government of Tanzania that the company is exempt from the public offering and listing requirements. The arbitration proceedings also seek to confirm that AngloGold Ashanti does not, as a result of its existing mining agreements, fall within the scope of the new mining legislation, under which the government of Tanzania has the right to renegotiate existing mining agreements at its discretion, the right to receive a non-dilutable, free-carried interest of no less than 16 percent in all mining projects, the right to acquire up to 50 percent of any mining asset commensurate with the value of tax benefits provided to the owner of the asset and which includes an increase in the royalty rate of revenue royalties from four3 percent to six percent. AngloGold Ashanti can provide no assurance that4 percent with effect from 1 May 2012. In March 2020, Geita Gold Mining Limited received the new mining legislation, including the public offering and listing requirements, will not apply to its operations in Tanzania and the outcomeconsent of the arbitration action may have a material adverse impact onMinister of Minerals to change the company’s results of operations and financial condition.

Environmental Impact Assessment fees

The Environmental Management (Fee and Charges) (Amendment) Regulations, 2016, which came into effect on 2 May 2016, introduced new fees in relationmining method under its special mining licence from open pit to underground method, subject to the reviewrequisite terms and conditions. Within the special mining licence area, there are also seven primary mining licences of the Environmental Impact Assessment on projects by the National Environmental Management Council (NEMC). Accordingapproximately 0.63 km2 in total which belong to these regulations, the fees involved are “0.1 percentthird parties. Furthermore, Geita Gold Mining Limited holds prospecting licences covering (i) an area of the total project costs”. However, these regulations have not defined the phrase “project cost” nor have they provided a detailed breakdown on the determination of the project cost.

Natural Resources Laws

The government of Tanzania enacted two laws on natural resources that came into force in July 2017. The two laws are the Natural Wealth and Resources Contracts (Review and Re-negotiation of Unconscionable Terms) Act, 2017 (No. 6) and the Natural Wealth and Resources (Permanent Sovereignty) Act, 2017 (No. 5) (together, the Natural Resources Laws).

The Natural Resources Laws require that all arrangements or agreements that relate to “natural wealth and resources” are subject to review by the National Assembly of Tanzania. If the National Assembly is of the view that the agreement contains any unconscionable terms, it can direct the Tanzanian government to renegotiate such terms. If parties fail to agree to renegotiate the

agreement or no agreement is reached within the statutory prescribed time period, then the unconscionable terms shall be treated as having been expunged from the agreement. The Natural Resources Laws also require new natural resources agreements to be reviewed by the National Assembly who can direct the government of Tanzania to renegotiate any unconscionable terms.

In addition, under the Natural Resources Laws disputes over natural wealth and resources will not be subject to any proceedings in any foreign court or tribunal. Accordingly, companies are now required to adopt Tanzanian law and local dispute resolution in all mining agreements (excluding international dispute resolution mechanisms). Every undertaking must demonstrate “guaranteed returns into the economy” from all earnings accrued or derived from such extraction, exploitation or acquisition and use. In addition, to ensure that the government and the people of Tanzania obtain an equitable stake120 km2 in the exploitationimmediate vicinity of its special mining resources, all project earnings must be retainedlicence area, and (ii) an area of 690 km2 located in Tanzanian banks. Only distributed profits can be repatriated outthe Dodoma, Singida and Shinyanga regions, but none of Tanzania.these areas contain any Mineral Reserve. All licenses are in good standing.


The Tanzania Mining Act, however, provides that existing development agreements will remain in force until such time as they are reviewed by the National Assembly pursuant
AUSTRALIA

General laws relating to the provisions of the Natural Resources Laws.mining


AUSTRALASIA

Australia


In Australia, with a few exceptions, all onshore minerals are owned by the Crown. The respective Minister for each state and territory is responsible for administering the relevant mining legislation enacted by the states and territories.




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Native Titletitle legislation applies to certain mining tenements within Australia. Australia recognises and protects a form of Native Titlenative title that reflects the entitlement of Aboriginal people to their traditional lands in accordance with their traditional custom and laws. Should Native Titlenative title claims or determinations exist, certain Native Titlenative title processes and procedures will apply under the Native Title Act 1993 (Cth) (Native(the “Native Title Act)Act”) before the tenure is granted. Tenure may be granted subject to conditions relating to Native Titlenative title rights. In the mining context, Native Titlenative title matters are managed as part of the tenement grant process. If disputes arise in relation to the grant of a particular tenement, they can be referred to the National Native Title Tribunal, established under the Native Title Act, for resolution. Native Titletitle legislation also provides a framework for compensation to be paid for acts that affect Native Titlenative title rights and interests. Ordinarily, the relevant Commonwealth or State government is liable to pay compensation for acts attributable to it. However, underin the state of Western Australia, the Mining Act 1978 (WA) liabilityprovides that an applicant for compensation associated with Native Title can be passed back tothe grant of, or the holder of, a mining tenement at the time of a determination of Native Title compensation.is responsible for native title compensation, if determined to be payable, to native title holders.


StateFederal, state and territory Aboriginal and non-Aboriginal heritage laws operate in parallel to the Native Titlenative title legislation. TheyState and territory heritage laws exist predominantly for the purposes of managing the impact of developments on sites, objects and areas of heritage significance. In Western Australia, impacts to Aboriginal cultural heritage are regulated by the Aboriginal Heritage Act 1972 (WA). However, this legislation will be repealed and replaced by the Aboriginal Cultural Heritage Act 2021 (WA) which was enacted in 2021 and is expected to become effective in early 2023. Where an area of heritage significance is placed on the national or world heritage registers, federal approval processes may also apply. To date, there has not been any significant impact on any of AngloGold Ashanti’s tenure due to Native Titlenative title or heritage legislation.


AngloGold Ashanti’s operating properties are located in the state of Western Australia where tenure is issued under, and mining operations are governed by, the Mining Act 1978 (WA). The most common forms of tenure in Western Australia are exploration and prospecting licences, mining leases, miscellaneous licences and general purpose leases. In most Australian states, if the holder of an exploration licence establishes indications of an economic mineral deposit in the area covered by the exploration licence and complies with the conditions of the grant, the holder of the exploration licence has a priority right against all others to be granted a mining lease which gives the holder exclusive mining rights with respect to minerals on the property. In Western Australia, a general purpose lease may also be granted for one or more of a number of permitted purposes. These purposes include erecting, placing and operating machinery and plants in connection with mining operations, depositing or treating minerals or tailings and using the land for any other specified purpose directly connected with mining operations.

Mining tenements will be granted with endorsements and conditions relating to protection of the environment. Exploration and mining operations may also require separate approval from the state, territory or federal environment minister, which may require completion of an environmental impact assessment pursuant to applicable protection legislation prior to commencement. Further, an operating licence under the relevant environmental protection legislation in the state or territory may also be required for certain mine processing or mining-related operations. Depending on the jurisdiction, a further separate approval may be required for the removal of native vegetation within the tenement.


It is possible for an individual or entity to own an area of land (including for infrastructure purposespurposes) and for another individual or entity to be granted the right to explore for or mine any minerals located on or under the surface of the same area. The maximum initial term of a mining lease in Western Australia is 21 years and the holder has the right to renew the lease for an additional 21 years. Subsequent renewals are granted at the discretion of the respective state or territory’s minister responsible for mining rights. In Western Australia, mining leases can only be assigned with the prior written consent of the minister.


Tax laws relating to mining

Government royalties are payable by the holder of mining tenure in respect of minerals obtained from the relevant area of land at the rates specified in the relevant legislation in each state or territory. The royalty on gold production in Western Australia is payable quarterly at a fixed rate of 2.5 percent of the royalty value of gold metal produced. The royalty value is calculated by multiplying

the amount of gold produced during a given month by the average gold spot price for that month. In addition, the holder of a mining tenement is required to pay annual rent in respect of the tenement. In Western Australia there is a minimum annual expenditure requirement for prospecting and exploration licences and mining leases. Exemptions from the expenditure requirement can be obtained if certain conditions are satisfied.


Environmental laws relating to mining

Mining tenements will be granted with endorsements and conditions relating to protection of the environment. Exploration and mining operations may also require separate approval from the state, territory or federal environment minister, which may require completion of an environmental impact assessment (including a public consultation period) pursuant to applicable environmental protection legislation prior to commencement. Further, a works 'construction' approval and an operating licence under the relevant environmental protection legislation in the state or territory may also be required for certain mine processing or mining-related operations. Depending on the jurisdiction, additional approvals may be required for the removal of native vegetation within the tenement, and the taking and use of water for exploration and mining operations.

AngloGold Ashanti’s rights and permits

AngloGold Ashanti has been granted 21-year term mining leases with rights of renewal to all of its mining areas in Australia, including its proportionate share of joint venture operations and accordingly it has, together with its joint venture partners where applicable, the exclusive right to mine in those areas. Both the group and its joint venture partners are fully authorised to conduct operations in accordance with relevant laws and regulations. The mining leases and rights of renewal cover the current life-of-mine at AngloGold Ashanti’s operations in Australia.

At Sunrise Dam, the deposit is now situated upon one mining lease covering approximately(M39/1116) covers the deposit and mine infrastructure (approximately 7,808 hectareshectares) and another mining lease of(M39/1117) covers the water extraction infrastructure used to supply the operation with water (approximately 1,768 hectares contains related infrastructure.hectares). Both leases are currently in good standing, with expiry dates in 2038.




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The Butcher Well joint venture has security of tenure for all current exploration licences and for the contiguous mining leases that covers its Mineral Resource. There are three mining leases: mining lease (M39/165) which covers 602.35 hectares with expiry date in 2030, mining lease (M39/166) which covers 990 hectares with expiry date in 2030 and mining lease (M39/230) which covers 446.4 hectares with expiry date in 2032.

At Tropicana, the deposit is situated upon a single mining lease (M39/1096) covering approximately 27,228 hectares, which is currently in good standing, with an expiry date in 2036.



AngloGold Ashanti Australia Limited is also conducting early stage exploration activities in Queensland under the Mineral Resources Act 1989 (QLD). AngloGold Ashanti holds 11 exploration permits covering 215,300 hectares. Each permit is granted with an initial term of five years, renewable for two further periods of not more than five years each.


AMERICAS


Argentina


LandGeneral laws relating to mining and land ownership and mining rights


Mining regime

The ArgentinianArgentinean Mining Code governs mining activity in the country. Special regimes exist for hydrocarbons and nuclear minerals. In the case of most minerals, the ArgentinianArgentinean Mining Code establishes that the owner of the land is not the owner of the mineral rights; these are held by the national or provincial governments (depending on the location of the minerals). The national or provincial government, as applicable, is required by the ArgentinianArgentinean Mining Code to grant whomever discovers a new mine title to the mining concession.


The ArgentinianArgentinean Mining Code regulates exploration permits andas well as mining concessions.concessions, or exploitation rights. Exploration permits grant their holders exclusivity rights to any mineral discoveries, including those made by a third party within the exploration area covered by the permit. Exploration permits are limited in time and as to the extent of the exploration area, are subject to the payment of a single-time fee, and also require a minimum exploration work programme and schedule to keep the permit in force.

The Argentinian Mining Code also regulates mining concessions, or exploitation rights. Priority for receiving a mining concession is given to the registered discoverer of the mine, which holds the exploration permit. Once the application for a mine has been submitted, the applicant may commence works and must submit a legal survey of the units requested for the new mine. The application and the legal survey may be opposed by third parties following specific proceedings set forth in the ArgentinianArgentinean Mining Code. Approval and registration of the legal survey by the provincial mining authority constitutes formal title to the mining concession.

Any mining company wishing to commence or modify any mining-related activity, as defined by the Argentinian Mining Code, including prospecting, exploration, exploitation, development, preparation, extraction, and storage of mineral substances, as well as property abandonment or mine closure activity, is required to prepare and submit to the competent provincial environmental authority an Environmental Impact Assessment (EIA) prior to commencing the work. Each EIA is required to describe the nature of the proposed work, its potential risk to the environment, and the measures that will be taken to mitigate that risk. If accepted by the competent authority, the EIA is used as the basis to create a Declaration of Environmental Impact (DEI) to which the mining company is required to adhere during the mining-related activity at issue. The DEI is required to be updated at least on a biannual basis. Sanctions and penalties for non-compliance with the DEI are outlined in the Environmental Protection section of the Argentinian Mining Code, and may include warnings, fines, suspension of quality certifications, restoration of the environment, temporary or permanent closure of activities, and withdrawal of authorisation to conduct mining-related activities.


Holders of mining concessions must comply with three main conditions: payment of an annual fee, investment of a minimum amount of capital, and the carrying out of a reasonable level of exploitation. Failure to do so could lead to forfeiture of the mining concession, which would then revert back to the province. In the case of Cerro Vanguardia, AngloGold Ashanti’s operation in Argentina, the mining concession holder is AngloGold Ashanti’s partner, FomentoMinero de Santa Cruz S.A. (Fomicruz). On 27 December 1996, Fomicruz entered into a usufruct agreement whereby Cerro Vanguardia S.A. was granted an irrevocable right to exploit the Cerro Vanguardia deposit (encompassing an area of approximately 543 square kilometres) for a 40-year period, which expires on 26 December 2036. Cerro Vanguardia S.A. is an Argentinian company controlled by AngloGold Ashanti, with Fomicruz as minority shareholder.Province.


In addition to the ArgentinianArgentinean Mining Code, between 1993 and 1995, Argentina implemented several federal laws to offer foreign companies attractive incentives for exploration and mining in Argentina, the Mining Investment Law (Law No. 24, 196), as amended (the “Mining Investment Law”), and related legal provisions (Mining Investment Law), being the most important one. Such incentives include, amongst others,among other matters, import duty exemptions, accelerated depreciation of fixed assets, a three3 percent cap on provincial royalties set at pit-head value on the mineral extracted, value added tax refunds for exploration-related expenses incurred by companies registered under the Mining Investment Law, and, subject to the filing of a feasibility study for the relevant mining project, a 30-year stability as to the

tax burden on the project and the customs and foreign exchange regimes and duties. Cerro Vanguardia S.A. (“CVSA”) obtained its tax, customs and foreign exchange stability certificate in 1996.


Past and potential regulatory changesGlacier Law


On 30 September 2010, the National Law on Minimum Requirements for the Protection of Glaciers (Law No. 26, 639) (Glacier Law)(the “Glacier Law”) was enacted in Argentina, banning new mining exploration and exploitation activities on glaciers and “peri-glacial” areas. The Glacier Law also subjects on-going mining activities in those areas to an environmental audit. If such audit results in material impacts on glaciers and “peri-glacial” areas, the relevant authority is empowered to take action, including suspension or relocation of the activity. The Glacier Law establishes a broad definition of “peri-glacial” areas that, together with glacial areas, must yet be surveyed by an existing Nationalnational government agency specifically appointed to this end.end every five years. The constitutionality of the Glacier Law has been challenged by some mining companies along with the Province of San Juan (which hosts large mining projects). Injunctions granted by lower courts which had suspended the application of the Glacier Law in that Province were lifted by the National Supreme Court of Justice of Argentina. Although the injunctions have been lifted, the language that the Court used in the decision implies that until an inventory of glaciers is completed as mandated by the Glacier Law, the case is moot. The inventory of glaciers was completed and published on 11 June 2018 and the Court recently advised that it intends to issue a decision on the constitutionality of the Glacier Law during the first half of 2019. Further, according to this inventory of glaciers the area where the Cerro Vanguardia project is located does not include any glacierglaciers or peri-glacial areas. Therefore,areas according to the case has no practical implications for the operationsinventory of Cerro Vanguardia at this time.glaciers which was published in June 2018.


Rural Land Law

On 27 December 2011, the ArgentinianArgentinean National Congress passed a law on the Regime for Protection of National Domain over Ownership, Possession or Tenure of Rural Land (Law No. 26, 737) (Rural(the “Rural Land Law)Law”) which implemented a set of rules restricting the ownership of rural land by foreigners (including foreign individuals or any kind of legal entity controlled by foreign individuals or legal entities). The main restrictions are as follows: (i) foreigners cannot own in the aggregate more than



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15 percent of the entire rural land of Argentina, the same cap being applicable to each provinceProvince and municipality;Municipality; (ii) foreigners will not be allowed to purchase more than 1,000 hectares in the so-called “zona núcleo”, which comprises the main agricultural areas of central Argentina or an “equivalent” surface depending on the location of the land and its productive potential; and (iii) foreigners will not be allowed to buy land that contains, or is adjacent to, relevant and permanent water bodies (such as rivers and lakes). Although exploration permits and mining concessions are not the subject matter of the restrictions placed by the Rural Land Law, certain rights granted to foreign mining companies under the ArgentinianArgentinean Mining Code may be restricted by this new law. For example, the right that holders of mining concessions currently have to force the surface owner to sell the land to the holder of the mining concession might be restricted if the concession holder is a foreign individual or a legal entity controlled by foreigners.


InFederal Mining Agreement

On 13 June 2017, 10the national government and the provinces in whose territories the main mining projects of Argentina are located, signed a document with the National government entitled theNew Federal Mining Agreement (FMA)(“FMA”). The purpose of the FMA is, amongst other things, to increase provincial revenues from the mining industry by creating legal entities owned by provincial governments that would work in association with private mining companies. This scheme is not new in Argentina and it has been used by some provincial governments, amongst them the Santa Cruz Province (through Fomicruz), in which the Cerro Vanguardia project is located. The FMA also contemplates other forms of revenues such as the formation of special trusts to be funded by mining companies in order to finance education, health and other programmes. Increase in royalty rates is not specifically contemplated in the FMA. The provinces that signedAdditionally, the FMA had previously formed a special associationincluded setting forth mining royalties up to three percent of provinces, supported by the National government.gross value of commercialised minerals, without any deductions other than VAT. As the FMA has not yet been converted into law by the National Congress, its provisions are neither binding nor enforceable.


In Argentina, the current regulatory regime of royalty payments is expected to change and several different options and payment thresholds have been discussed. In December 2012, the Santa Cruz Province changed the mining royalty from one percent to three percent calculated at pit-head value of the mineral extracted thus bringing it to the cap of the Mining Investment Law.


Foreign exchange and export rules

Foreign exchange controls

On 1 September 2019, by means of Executive Decree No. 609/2019 (the “Export Controls Decree”), the Argentinean national government reinstated foreign exchange and export controls. The Export Controls Decree and related regulations of the Central Bank of Argentina impose, among other measures, the obligation of Argentinean residents to transfer to Argentina and/or sell for Argentinean pesos in the Argentinean foreign exchange market (mercado de cambios) the countervalue (contravalor) from their exports of goods within a specified period. The export of goods is regulated by Communication “A” 6882 of the Argentinean Central Bank (as modified) which establishes the specific regulatory requirements to implement the measures adopted by the national government in this area. Prior approval of the Argentinean Central Bank is generally required to access the foreign exchange market for transactions relating to the outflow of funds, except in certain circumstances. Until 30 June 2022, prior approval from the Argentinean Central Bank is not required for payments in connection with the import of goods if certain conditions are satisfied.

CVSA had a cash balance equivalent to $139 million at 31 December 2021. During 2021, AngloGold Ashanti received offshore dividends in a total amount of $19 million (net of withholding taxes) paid in US dollars. Out of the $139 million (equivalent) cash balance, monies equivalent to $131 million 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 $114 million to AngloGold Ashanti. While the approval is pending, the cash remains fully available for CVSA’s operational requirements.

Export duties

On 4 September 2018,21 December 2019, the National Law on Social Solidarity and Productive Reactivation (Law No. 27, 541) (the “Solidarity Law”) was enacted. The Solidarity Law granted the national government power until 31 December 2021 to impose export duties were imposed bywhich may not exceed certain caps. For example, the Solidarity Law provides that export duties on mining exports cannot exceed 8 percent of the taxable value or official FOB price. On 2 October 2020, the national government published Decree No. 785/2020 (the “Export Duties Decree”) which sets an export duty rate of 8 percent for certain goods, including doré bars and gold alloys, and revoked the provisions of Decree No. 793/2018 (Export Duties Decree) published bywhich had previously set the Argentinian government. The export duty is set at 12 percent with a cap so that it does not exceedad valorem. While the amount of ARS 4 pesos per US dollar exported. The Export Duties Decree was set to expire at the end of 2021, on 31 December 2021, the national government published Decree No. 908/2021, extending the deadline of export duties on certain goods, including doré bars and gold alloys, until 31 December 2023. It is uncertain whether the national government is empowered to extend such deadline beyond the date set forth in the Solidarity Law. These export duties, if it is not compensated with other tax reductions, affectsaffect the tax stability guarantee acquired by Cerro Vanguardia S.A. (CVSA)granted to CVSA in 1996 consideringin light of the fact that at thatthe time export duties were zero percent.


On 26 February 2019, the ArgentinianArgentinean tax and mining authorities published a resolution (RC 4428/2019) establishing a mechanisman administrative procedure to reimbursebe followed to obtain the reimbursement or compensatecompensation of federal taxes paid in excess of the total tax burden as grantedprovided for by the applicable tax stability guarantee. The resolution provides for an administrativeCVSA initiated this new procedure to be followed to prove that claim compensation for



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the actual tax burden is higher than the one a company should have based onexport duties it paid in 2018 and 2019 as export duties are not contemplated by its tax stability guarantee. Prior to the publication of RC 4428/2019, CVSA will initiate this procedure in orderhad already submitted to claimthe tax authorities claims for reimbursement of the export duties it paid from 2008 to 2015.

Pursuant to the new administrative procedure, the National Mining Secretariat issued favorable opinions regarding CVSA’s claims in respect of fiscal years 2018 and 2019, which amounted to approximately $3.5 million and $10.8 million, respectively, as of 31 December 2021. These claims are currently under review by the relevant customs authorities. On 14 July 2021, CVSA submitted its claim in respect of fiscal year 2020, which amounted to approximately $21.4 million as of 31 December 2021. The National Mining Secretary has not yet issued an opinion regarding this claim. CVSA expects to submit its claim in respect of fiscal year 2021 in due course.

Furthermore, CVSA has requested the tax authorities to apply the procedure provided for in RC 4428/2019 in respect of its historical claims for fiscal years 2008 to 2015 during which the imposition of export duties also exceeded CVSA’s total tax burden under its tax stability guarantee. However, these claims, which amounted to approximately $5.3 million as of 31 December 2021, are still being reviewed under the rules to challenge export duties instead of the new procedure provided for in RC 4428/2019. CVSA has appealed the application of those rules and a decision on this issue is pending.

In total, AngloGold Ashanti’s net export duty receivables (after discounting provisions) in Argentina amounted to $19 million as of 31 December 2021.

Environmental laws relating to mining

Any mining company wishing to commence or compensationmodify any mining-related activity, as defined by the Argentinean Mining Code, including prospecting, exploration, exploitation, development, preparation, extraction, and storage of mineral substances, as well as property abandonment or mine closure activity, is required to prepare and submit to the competent provincial environmental authority an Environmental Impact Assessment (“EIA”) prior to commencing the work. Each EIA is required to describe the nature of the proposed work, its potential risk to the environment, and the measures that will be taken to mitigate that risk. If accepted by the competent authority, the EIA is used as the basis to create a Declaration of Environmental Impact (“DEI”) to which the mining company is required to adhere during the mining-related activity at issue. The DEI is required to be updated at least on a biannual basis. Sanctions and penalties for export taxes paid during 2018.non-compliance with the DEI are outlined in the Environmental Protection section of the Argentinean Mining Code, and may include warnings, fines, suspension of quality certifications, restoration of the environment, temporary or permanent closure of activities, and withdrawal of authorisation to conduct mining-related activities.


AngloGold Ashanti’s rights and permits

The mining concession holder of Cerro Vanguardia, the company’s operation in Argentina, is AngloGold Ashanti’s partner, Fomento Minero de Santa Cruz S.E. (“Fomicruz”), which is wholly owned by the Santa Cruz Province. On 27 December 1996, Fomicruz entered into a usufruct agreement whereby CVSA was granted an irrevocable right to exploit the Cerro Vanguardia deposit (encompassing an area of approximately 543 km2) for a 40-year period. The mining licence (402642/CV/97), which covers the full Mineral Reserve, expires on 26 December 2036. CVSA is a corporation incorporated in Argentina indirectly controlled by AngloGold Ashanti (92.5 percent), with Fomicruz as minority shareholder (7.5 percent). On 14 August 1996, CVSA obtained its tax, customs and foreign exchange stability certificate, which expires in 2026.

Brazil

Land ownership and mining rights


General legal aspectslaws relating to mining and land ownership



The Brazilian Constitution of 1934 states that, for purposes of exploration and exploitation, deposits and other Mineral Resources constitute property separate from the soil and belong to the Federal Union. Exploration and exploitation of such Mineral Resources may take place only with the Federal Union’s concession and in such a way as to protect the national interest. Federal law sets out penal and administrative sanctions for conduct and activities deemed harmful to the environment.


In Brazil, the National Mining Agency (ANM)(“ANM”) is the state body within the Brazilian Mines and Energy Ministry (MME)(“MME”) that is responsible for: (i) the registration of mining titles, (ii) the grant of authorisations and concessions, (iii) the supervision of mining activities and mining titleholders, and (iv) the issuance of supplementary rules in relation to mining activity.


Under the current Brazilian Mining Code, there are two kinds of mines: (i) claimstake mines (Minas Manifestadas)(minas manifestadas), for which rights were acquired before 1934 and exist independently of any mining licence or authorisation from the Federal governmentGovernment and for which the Mineral Resources constitute property of the landowner, and (ii) granted mines, which are those that rely on grants from the Federal governmentGovernment for mineral exploration or exploitation (pursuant to the Brazilian Constitution of 1988). AngloGold Ashanti’s operations in Brazil consist of both claimstake mines and granted mines.

At AGA Mineraçao, Cuiabá has a single concession covering a total area of 3,662 hectares, Lamego is covered by three geographically contiguous concessions totally 1,622 hectares and Córrego do Sítío is hosted by five geographically contiguous concessions covering a total area of 6,017 hectares. All of these are in good standing. At Serra Grande, the company has interests in or agreements over 61,500 hectares in Crixas Greentone belt, representing approximately 87 percent of the relevant tenements that correspond to all current exploration and mining activities. These have been held since 1987. Brazilian mining concessions remain valid up to the depletion of the Ore Reserve and Mineral Resource.


Mining activities in granted mines must be performed in two defined stages: (i) exploration, which entails defining and evaluating the deposit and determining the feasibility of exploitation, and (ii) exploitation, which involves coordinating operations aimed at the industrial exploitation of the mineral deposit, from the extraction of useful minerals to their processing. Exploration



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authorisations issued by ANM are valid for one to three years. Extensions can be obtained if necessary, as long as it is justified. In contrast, exploitation rights, once granted, are valid for the lifetime of the deposit, provided the mining titleholder complies with all legal requirements. Pursuant to these requirements, for example, titleholders must (i) start work on mineral exploitation within six months from the date of publication of the Exploitation Concession, (ii) continue their mining activities until the mineral deposit has been exhausted, in accordance with the Economic Exploitation Plan (Plano(Plano de Aproveitamento Econômico)mico) approved by ANM, and (iii) refrain from suspending mining activities without prior notice to ANM.


Tax laws relating to mining

During the exploration period, the mining titleholder has to pay an Annual Rate per Hectare (TAH - (Taxa Annual por Hectare)Hectare or “TAH”), subject to a maximum value set by law. In the exploitation period, regardless of the legal regime governing the project (whether claimstake or granted mines), the mining titleholder has to pay the Financial Compensation for Exploiting Mineral Resources (CFEM - (Compensação Financeira pela Exploração Mineral)Mineral or “CFEM”). The CFEM which is 1.5 percent for gold is currently calculated based on revenues.


At the end of 2011 and the beginning of 2012, the states of Minas Gerais, Goiás, Pará, Amapá and Mato Grosso do Sul each created a new “inspection and control” tax (duty) on research, extraction and exploration activities as well as on the use of Mineral ResourcesResource carried out in those states. This tax could range from BRL3.00 to BRL6.50 per ton of ore mined. In the statesstate of Minas Gerais, and Goiás, however, gold ore wasand silver ore are exempted from the collection of this new duty.

Potential regulatory changes

Changes At the end of 2020, the state of Goiás created a new “inspection and control” tax (duty) on extraction and exploration activities carried out in this state, which currently still needs to Brazil’s mining legislation were submitted in 2013be implemented. The constitutionality of these “inspection and 2017 tocontrol” taxes has been challenged by the National Congress for discussion and consideration. Its goals would be to (i) strengthen the role of the Federal government in regulating the mining industry, including tailings storage facilities (TSF), (ii) attract more and better investments to the mineral sector, (iii) encourage maximal use of Ore Reserves, and (iv) encourage members of the industry to add value to mineral products.

The Federal government’s proposals have institutional, legal and financial facets. Institutionally, the proposals would create a National Council of Mineral Policy to advise the Presidency of BrazilIndustry Confederation and the MME on, and develop guidelines and directives for,matter is currently pending before the mining sector.Supreme Court of Brazil.


Legally, the proposals would change the rules appliedEnvironmental laws relating to mining titles access. While exploration authorisations would be effective for a longer period of four years, they would be renewable only once, as long as the company is able to justify the renewal to the authorities, who would make a discretionary decision as to whether to approve the request. Companies would also have to demonstrate that they are investing in exploration activities on a yearly basis. On the hypothesis that the access to the area is prevented by either landowners or the ability to obtain an environmental license through no fault of the company, the authority would extend the deadline as many times as necessary.

Exploitation rights would be limited to 35- or 40-year grants renewable at the discretion of authorities. The granting of rights would become a more discretionary process and would result in a Formal Adhesion Contract for Exploitation rather than in an open-ended concession.



Following the November 2015catastrophic failure of a tailings dam collapsestorage facility (“TSF”) at the Córrego do Feijão iron ore mine owned by Vale at Brumadinho in the state of Minas Gerais there was discussion of including tougher requirements related to tailings dams (e.g., mandatory insurance in case of environmental catastrophe).

As of the end of 2018, most of the changes in the legislation initially suggested were not approved. However,Brazil in January 2019, afterexecutive, legislative and judiciary bodies, both at the Vale TSF failurefederal and state levels, have generally increased scrutiny of mining operations in Brazil, and of TSFs in particular, and have been considering, and in some cases have adopted, stricter laws and regulations applicable to the stateapproval, licensing, construction, management, closure and decommissioning of Minas Gerais,TSFs in Brazil.

At the Minas Gerais State Secretary for Environment and Sustainable Development (SEMAD) issued Resolution No. 2,762 suspending all environmental licensing proceedings connected with tailings dams in the state of Minas Gerais, regardless of the construction method, until new rules regulating the environmental licensing of such activities were enacted. SEMAD also issued Resolution No. 2,765 that required the demobilization of all tailings dams that use the upstream heightening method, and ordered impacted companies to present: (i) within 180 days, an executive project and work plan along with the related work timeline regarding the demobilization of the undertaking; and (ii) within 360 days, a proposal for a new technique for operation of the TSF along with the work timeline of its implementation to be executed within two years.

On 28 January 2019, the Brazilian Presidency, through the Brazilian Ministerial Council for Disasters Response and Monitoring, issued Resolution CMRS No. 02/2019 creating the Subcommittee of Legislation Review, that is empowered to update and review the Brazilian Dams Security Act (Federal Law No. 12,334/10). The House of Representatives, the lower house of the National Congress, also created an External Commission empowered to monitor the developments regarding the Vale TSF failure, aiming to collect information on the risks of the upstream heightening method in order to review the sector’s legal framework.

On 18 February 2019,federal level, the ANM issued Resolution No. 4 adopting precautionary13/19 in August 2019 (replacing its earlier Resolution No. 4/19) which adopted additional regulatory measures to ensure the stability of tailings dams,TSFs, in particular those built or heightened by the upstream method or aby any method declared as “unknown”. Among other things, ANM Resolution No. 4 provides for, amongst other things, the definitive prohibition of13/19 prohibits the upstream method for the construction or heightening of tailings dams throughout the national territory of Brazil,Brazil. It further requires operators to cease all storage and the decommissioningdisposal activities at TSFs (known as “deactivation” or demobilization of dams“desativação”) constructed or heightened upstream or by an unknown“unknown” method untilby 15 August 2021. As a result,September 2021 as well as to decommission such TSFs by 15 September 2022 to 15 September 2027 (depending on the capacity volume). To comply with the terms of ANM Resolution No. 13/19, the Serra Grande minetailings dam in the state of Goiás is planning to reinforcemust be decommissioned by 15 September 2025. The Serra Grande mine completed the process of reinforcing the dam walls of its upstream TSF, deactivating the TSF and migrating to dry-stacking operations, each by the 15 September 2021 deadline.

Furthermore, Federal Law No. 14.066/20, adopted in advanceOctober 2020, also imposes requirements on companies to decommission upstream TSFs, including the Serra Grande tailings dam, by 25 February 2022 (which date is earlier than required by ANM Resolution No. 13/19). However, Federal Law No. 14.066/20 does permit extensions of the compliance deadline, with the consent of the ANM based on the technical plan for decommissioning. Serra Grande has submitted timely requests to obtain an extension of the compliance deadline until 2025 in line with the timeline set forth in ANM Resolution No. 13/19 and presented its technical plan for decommissioning. Feedback from the ANM on these requests is currently awaited. With respect to downstream (or “centerline”) TSFs, Federal Law No. 14.066/20 requires companies, to the extent that communities are located in the self-rescue zone of those TSFs, to implement one of the following measures for such structures: either (i) the structure must be deactivated and decommissioned, (ii) the population must be relocated, with reparations for loss of cultural heritage, or (iii) reinforcement works that guarantee the effective stability of the structure must be carried out, by decision of the public authorities, taking into account the previous nature of the dam in relation to the occupation and technical-financial viability of the alternatives. Even if reinforcement works are completed, deactivation and decommissioning of those TSFs will be required at the end of the life of the mine. All of the TSFs operated by AngloGold Ashanti in Brazil have communities located in self-rescue zones.

AngloGold Ashanti is planning to transition to dry-stacking operations for tailings storage at each location in Brazil in the near term. Capital expenditures required in 2021 to implement this new technology amounted to approximately $140 million. Capital expenditures for this work during the period 2022-2025 are expected future decommissioning.to be material but, based on preliminary estimates to date, AngloGold Ashanti anticipates that annual expenditures for each of these years will be significantly less than in 2021 and will decline over time. Neither ANM Resolution No. 13/19 nor Federal Law No. 14.066/20 requires removal of all tailings material in connection with the decommissioning of TSFs (a process known as “decharacterisation” or “descaracterização”).






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At the state level, the state legislator in the state of Minas Gerais adopted Law No. 23.291/19 in February 2019 which contained the state’s policy on TSF safety and should be implemented in conjunction with the equivalent federal policy. Among other things, Law No. 23.291/19 determines the criteria for licensing and inspecting TSF structures, prohibits TSFs constructed or heightened using the upstream method, establishes bond requirements and holds management liable for non-compliance with its provisions. The government of Minas Gerais adopted several decrees in furtherance of this legislation.

On 16 February 2022, the ANM issued Resolution No. 95/22, which was rectified on 18 February 2022 and became effective on 22 February 2022. ANM Resolution No. 95/22 effectively consolidates prior federal resolutions on TSFs, including ANM Resolution No. 13/19 and establishes new criteria for the operational management of TSF structures, changes the criteria related to the risk classification of TSF structures and emergency levels and imposes deadlines for compliance with obligations, in addition to setting new criteria for suspension, embargo and interdiction of TSF activities.

Further amendments to the regulatory requirements in Brazil governing such TSFs and related dams may be adopted in 2022.

AngloGold Ashanti’s rights and permits

At AGA Mineraçao, Cuiabá has a single mining concession (No. 000.323/1973) covering a total area of 3,662 hectares. In addition,February 2022, two additional mining concessions for Cuiabá (Nos. 830.937/1979 and 831.027/1980) were published, which cover an additional area of 816.2 hectares. Lamego has a single mining concession (No. 932.710/2017) covering a total area of 1,622 hectares. Córrego do Sítio is hosted by five geographically contiguous mining concessions (i.e., Nos. 930.556/2000, 930.181/2008, 830.129/1982, 833.472/2003 and 830.943/1979) covering a total area of 6,017 hectares.

At Serra Grande, the company has beguninterests in or agreements over 25,719.94 hectares in the processCrixás greenstone belt, representing approximately 87 percent of evaluating alternate structures for this upstream TSF,the relevant tenements that correspond to all current exploration and mining activities. These have been held since 1987. The mining concessions include mining concession No. 002.286/1935 covering an area of 4,206.88 hectares, mining concession No. 960.658/1987 covering an area of 1,946.89 hectares, mining concession No. 860.746/2005 covering an area of 88.28 hectares, mining concession No. 862.103/1994 covering an area of 125.41 hectares and mining concession No. 804.366/1975 covering an area of 196.05 hectares.

All of the company’s mining concessions in Brazil are currently active, in good legal and operational standing, and free of liabilities and/or major obligations. Brazilian mining concessions remain valid up to the depletion of the Mineral Reserve and Mineral Resource pursuant to the Economic Exploitation Plan approved by the ANM and in accordance with the required environmental permits, and as well as any potential future increased regulatory and cost obligations.a result do not have an explicit expiry date.




Colombia


LandGeneral laws relating to mining and land ownership and mining rights


General regime

The Colombian Constitution declares that the sub-soil and the non-renewable natural resources located within the Colombian territory are the property of the Colombian State. The underlying principle of Colombian mining legislation for the granting of mining concession contracts over free areas is first come,in time, first served.in law. Mining activities are regulated by the Colombian Mining Code, Act 685, 2001.


The filing of an exploration and exploitation proposal triggers a right of preference to obtain rights over the targeted area, provided it is available. Such area cannot exceed 10,000 hectares. Upon receipt of a proposal, the relevant government agency determines whether another proposal or contract already governs the area. If there are no pre-existing claims, the government agency grants the applicant a “free area”.


TheWith respect to land ownership, a mining concession in Colombia does not grant the rights over the surface required to develop a mining project. Therefore, in order to develop a mining project, it is required to acquire and secure access to the land (soil). This can be achieved in several ways, such as (i) purchase of the land, (ii) a transit easement, (iii) a mining easement, and (iv) the special acquisition process or expropriation.

Concession contract


The government agencyAs the sub-soil and the non-renewable natural resources located within the Colombian territory are property of the Colombian State, the Colombian Mining Authority (Agencia Nacional de Minería) grants exclusivethe authorisation to explore and exploit minerals through a concession contracts for exploration and exploitation. contract.

Such concessions allow concessionaires to conduct the studies, works and facilities necessary to establish the existence of minerals and to organise their exploitation. Upon being awarded a mining concession, a company must take out an insurance policy to cover the costs associated with potential environmental damage as well as breaches of its mining obligations. It may



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then proceed with exploration activities. Once the exploration phase is complete, the concessionaire files a new plan regarding proposed works and facilities. With the award of the mining concession or tenement contract, there are specified timelines for the completion of the various phases of a mining project, e.g. exploration, construction, exploitation. The company must comply with these timelines unless performance is suspended, for example, due to force majeure or extensions/extensions or modifications to the timelines. Force majeure was declared at the La Colosa project, stopping all activities, following the outcomeA grant of the referendum held on 26 March 2017 in the Colombian municipality of Cajamarca, which hosts the La Colosa exploration site. The force majeure was initially grantedis for one year. It has been extended for an additional year and will now expire in June 2019, after which such declaration will need tomust be extended.

renewed on an annual basis. If the company does not comply with the specified timelines for the completion of the various phases of a mining project, the mining authority may revoke the company’scompany's concession contracts or mining licenses. AngloGold Ashanti Colombia S.A. (AGAC) applied for consolidation of its concession contracts related to La Colosa, some of which were not in compliance with their specified timelines. The application for consolidation was approved in March 2017, which remedied the non-compliance of each consolidated concession and reset the specified timelines. La Colosa haslicences. As a single concession which covers a total area of 9,210 hectares and expires on 28 February 2037.

In order to obtain an authorization from the National Environmental Licensing Authority of Colombia to carry out the La Colosa project, thegeneral matter, any company must prepare an Environmental Impact Study for approval by this authority.


Environmental licenses are granted for the entire life of the project and cover all phases: construction, assembly, operation, maintenance, dismantling, final restoration, abandonment and / or termination.

The initial term of concessions is 30 years. To receive an extension, a concessionaire must file a request two years before the termination of the initial term, and must substantiate the application with economic, environmental and technical information. Because the extension is not automatic, the concessionaire must renegotiate the conditions of the contract. Any company holding a concession that wishes to obtain a renewal of theits concession contract must be up to date in all its legal and contractual obligations and must present a new plan of works and facilities to be implemented after the contract is renewed. The term of a concession and all

PINES programme

In 2013, the contractual obligationsnational government instituted the PINES programme designed to aid promoting certain projects that arise from it are deemed to take effecthave a national interest. This designation provides for greater oversight from the national government. All of our three advanced exploration projects (La Colosa, Quebradona and Gramalote) were considered of national strategic interest. Currently, Quebradona and Gramalote remain in the PINES programme, but La Colosa was temporarily removed as such (until the force majeure is over).

Tax laws relating to mining

From the moment the concession contract is registered with the Mining Register, the concessionaire has several financial obligations, including the payment of (i) a surface fee during the exploration, construction and assembly stage and (ii) royalties.

Once exploration is complete and the mining infrastructure in place, the concessionaire must begin paying royalties to the Colombian government, consisting of a percentage of the date of registrationprimary product and sub-products being exploited. The percentage of the royalty depends on the regulation in force when the concession contract is registered. In the case of the Quebradona project, the deposit mainly consists of copper followed by gold and silver. There is a 5 percent royalty for copper on the production value at the mine’s or well’s edge (i.e. when extracted from the subsoil). In case of gold and silver, a royalty of 4 percent on the production valued at the mine’s or well’s edge (i.e. when extracted from the subsoil) was established.

Furthermore, Colombian law establishes that once the environmental licence is granted the concessionaire must invest 1 percent of the project’s value to benefit the basins covered by the environmental licence.

Environmental laws relating to mining

In order to obtain an authorisation to carry out a mining project, a company must prepare an Environmental Impact Study (“EIA”) for approval by the National Mining Register.Environmental Licensing Authority of Colombia (Autoridad Nacional de Licencias Ambientales or “ANLA”). Global environmental licences are granted for the entire life of the project and cover all phases: construction, assembly, operation, maintenance, dismantling, final restoration, abandonment and/or termination. Construction and assembly permits (Plan de Trabajos y Obras or “PTO”) are granted by the mining authority with jurisdiction over the project.


AngloGold Ashanti’s core mining concession contracts provide thatIn Colombia, the mining authority has the discretion to declare the underlying concession void if AGACthe specific company which holds the concession breaches applicable environmental laws or regulations. If the mining authority were to exercise such discretion, against it, AGACa company whose concession was voided would be required to abandon its projects and all of its other existing mining concession contracts. Pending proposals for new mining concession contracts would also be cancelled and AGACthe company would be banned from doing business with the Colombian government for a period of five years. As a result, AGACthe company would be unable to conduct any mining exploration or development activities during such period. However, this would not affect other AngloGold Ashanti subsidiaries of the company operating in Colombia, which holdif those concession contracts are held singularly or in concert with joint venture partners the majority of the company’s concession contracts in Colombia.partners.


There are some areas where miningMining activity is prohibited. These areas are:

National parks;
Regional parks;
Protectedprohibited in national parks, regional parks, protected forest reserves;
Paramosreserves, paramos (included in Act 1382,1753, introduced in 2010);2015) and
•
Wetlands, pursuant to the Ramsar Convention.

wetlands, pursuant to the Ramsar Convention on Wetlands of International Importance.Some forest reserves are not “protected”, but are set aside for active forestry purposes. Such forest reserves must be “extracted” after initial prospection, meaning thatpurposes and the concessionaire must obtain a specific permit to partially and temporarily change the use of the soil before pursuing exploration activities. In addition, Resolution 187/2016, (Paramos Regulation), passed by the Colombiannational government in late 2016, identifies areas that the Ministry of the Environment has determined to be “paramos” areas, or paramos transition areas. In these areas there are limitations on industrial or commercial work being performed, including mining. The Paramos Regulationregulation also specifies a process to determine what work, if any, can be performed in a paramos-designated area. Certain areas designated as “paramos” are within

AngloGold Ashanti’s rights and permits

The La Colosa project managed by AngloGold Ashanti Colombia S.A.S. (“AGA Colombia”) remains in force majeure due to delays in granting environmental permits by national and local environmental authorities, thereby preventing AGA Colombia from undertaking further exploration activities. The current one-year grant of force majeure, during which time the specified timelines for completing the various phases of the mining footprint currently envisioned for La Colosa. The company is evaluating the impact of the Paramos Regulation, if any, to the current plan for La Colosa. Further, the company is working with the Colombian government to determine if the designations contained in the Paramos Regulation are technically accurately and legally defensible, and what the process will be to determine what work, if any, can be performed in certain paramos areas.

Cannon fees and royalties

Cannon fees are due from the momentproject under the concession contract are suspended, will expire on



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22 June 2022. AGA Colombia applied for a mining area integration (consolidation) of its concession contracts related to La Colosa, in respect of which AGA Colombia was not in compliance with some of the specified timelines. The application for mining area integration (consolidation) was approved in March 2017, which remedied the non-compliance of each consolidated concession and reset the specified timelines. La Colosa now has a single integrated mining concession contract (EIG-163) which covers a total area of 9,210 hectares and expires on 28 February 2037.

Minera de Cobre Quebradona S.A.S. B.I.C. (“MCQ”) which manages the Quebradona project, obtained the integration of concession agreement 5881 in October 2016 and registered in December 2016. As a result, MCQ was granted the exclusive right to explore, take ownership and dispose of the mineral reserves (ore) extracted from the concession area. MCQ has the right to request an extension of up to 30 years, at least two years before the expiration of the operating period. This extension is registerednot automatic, and the request must be filed with new technical, economic, environmental and social studies that demonstrate the Mining Register. Such fees change basedstatus of the mineral resources. Concession contract 5881 initially covered a total area of 7,593 hectares, which was reduced to 4,881.89 hectares by the relevant mining authority (Secretaría de Minas de Antioquia) on 4 March 2022. It will expire in May 2037 and is currently in its sixth year of the integrated exploration phase. In September 2021, the permits for the construction and mining operation were approved by the relevant mining authority (Secretaría de Minas de Antioquia). On 4 November 2021, ANLA officially notified AngloGold Ashanti of its decision to ‘archive’ the environmental licence application relating to the Quebradona project. ANLA has neither denied nor granted the licence, but deemed that the information provided by AngloGold Ashanti is not enough for this authority to take a substantive decision. On 18 November 2021, AngloGold Ashanti appealed the archiving decision in order to secure further details on the numberspecific additional information ANLA requires to make a determination.

The Gramalote project is organised as a joint operation between AngloGold Ashanti (through AGA Colombia Holdings Limited and AngloGold Ashanti Holdings plc) and B2Gold (through B2Gold Corp. and Graminvest Ventures Limited). Gramalote Limited, a company incorporated under the laws of British Virgin Islands which is the legal vehicle operating the joint operation, established a Colombian branch, Gramalote Colombia Limited (“GCL”), to carry out activities in Colombia and obtain the mining concession contracts necessary to develop the Gramalote project. The Gramalote joint operation has been operated by B2Gold since January 2020. Pursuant to an integrated mining concession contract No. 14292, GCL was granted the exclusive right to explore, take ownership and dispose of the mineral reserves (ore) extracted from the concession area (which covers a total area of 8,720.71 hectares heldand includes the Gramalote and Monjas anomalies) until April 2043. GCL has the right to request an extension of the operating period for up to 20 years, and, if exercised, such request to extend must include new technical, economic, environmental and social studies that demonstrate the status of the mineral resources. Currently, concession contract No. 14292 is in the phase of construction and assembly, pending resettlement of communities and the formal start of construction activities. GCL has received an environmental licence granted by ANLA and permits for the construction and mining operation which were approved by the concessionaire, as follows:relevant mining authority (Secretaría de Minas de Antioquia). GCL also holds an exploration concession No. 4894 (which covers a total area of 2,279.32 hectares and includes the Trinidad anomaly) which expires in 2044.


0-2,000 hectares, one legal daily minimum wage (approximately $9.00) per hectare per year;
2,001-5,000 hectares, two legal daily minimum wages (approximately $18.00) per hectare per year; and
5,001-10,000 hectares, three legal daily minimum wages (approximately $27.00) per hectare per year.

Once exploration is complete and the mining infrastructure is in place, the concessionaire must begin paying royalties. Royalties paid to the Colombian government consist of a percentage of the primary product and sub-products being exploited. For gold, gross monthly income is multiplied by 0.8, to which a four percent royalty is applied.

PINES programme

In 2013 the Colombian government instituted the PINES programme that will aid in promoting certain projects that are deemed to have a national interest. This designation provides for greater oversight from the Colombian government. The La Colosa, Gramalote and Quebradona (Nuevo Chaquiro) projects are designated as PINES projects. All of our three advanced exploration projects are considered of national strategic interest.
United States of America


Nevada

Mineral and surface rights in the United States are owned by private parties, state governments or the Federalfederal government. The majority of land utilised for precious metals exploration, development and mining in the western United States is owned by the Federal government, and often the state government will have an ownership interest in minerals, regardless of whether the state

is the surface owner.federal government. The right to mine on such federal land in western states is governed by the U.S. General Mining Law of 1872, as amended (General(the “General Mining Law)Law”). The General Mining Law allows mining claims (for mining and mining-related activities) on certain federal lands upon the discovery of a valuable mineral deposit andafter proper compliance with claim location and maintenance requirements.

Nevada

In Nevada, AngloGold Ashanti (U.S.A.) Exploration, Inc. is advancing its projects (either 100 percent AGA-controlled claims or joint ventures) located on federal lands that cover an area of approximately 26,800 acres. On these lands, AngloGold Ashanti (U.S.A.) Exploration, Inc. is currently engaged in early-stage exploration activities that include, but are not limited to, geological and spectral mapping, surface geochemical sampling, and RC and/or diamond drilling.


Mineral exploration activities in Nevada are also generally subject to applicable federal, state, and local permitting requirements, but the specific regulatory authorizationsauthorisations required for the company’s activities are based on the nature and location of the exploratory work. AngloGold Ashanti (U.S.A.) Exploration, Inc.’sMany of the company’s Nevada operations are currently conducted under what is generally referred to under Federalfederal law as a notice-level operation subject to 43 CodeCFR § 3809.21, while projects that are more advanced require additional permitting, including a Plan of Federal Regulations Section 3809.21.  TheOperations approved by the federal Bureau of Land Management (BLM) issued a Notice(“BLM”). The State of Decision approving these exploration operations on 1 November 2017.  The BLM determined that the operations would not cause unnecessary or undue degradation as defined under 43 CodeNevada Division of Federal Regulations Section 3809.5. An amendment to the project was approved by a BLM Notice of Decision dated 31 January 2018.  The Notice of Decision requires reclamation of the drill pads and roads, including the reseeding of disturbed lands. The Notice of Decision also set the financial guarantee amount for reclamation. The Notice of Decision includes a two-year term from the date of 1 November 2017.

Nevada’sEnvironmental Protection’s Bureau of Mining Regulation and Reclamation (BMRR)(“BMRR”) also regulates mining within the state.  Explorationstate of Nevada. However, exploration projects of five5 acres or less, on state lands, the scope of a notice-level operation under Federalfederal law, are exempt from BMRR regulation. AngloGold Ashanti’s currentCertain of the company’s early-stage exploration program fallsactivities fall within this exemption.


In Nevada, the company’s wholly-owned subsidiaries hold a significant number of unpatented mining claims on federal lands. This includes approximately 1,600 unpatented claims (covering approximately 32,000 acres) that are now controlled by the company as a result of its acquisition of all of the outstanding stock of Corvus Gold Inc., which closed on 18 January 2022. The company is currently engaged in exploration activities on certain of its unpatented claims that include, but are not limited to, geological and spectral mapping, surface geochemical sampling, geophysical surveying and RC and/or diamond drilling. The main projects of the company in Nevada include the Silicon Project, the North Bullfrog Project and the Mother Lode Project.

In 2021, the state of Nevada enacted a new tax on Nevada gold and silver mines (in addition to the existing Nevada net proceeds of minerals tax, which is a 5 percent net tax). The new mining tax is a 0.75 to 1.1 percent excise tax based on a mine’s annual gross revenue.



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Minnesota


In Minnesota, AngloGold Ashanti Minnesota Inc. is undertakingcompleted early-stage reconnaissance exploration activities to determine the potential for gold mineralizationmineralisation in the northern counties of Minnesota. Minnesota uses a leasing system for state-owned minerals. Under this system, qualified applicants can obtain a nonferrous metallic mineral lease for a 50-year term that grantsBased on the achieved results, the company the right to explore, mine, and develop minerals, subject to applicable environmental review and permitting requirements. AngloGold Ashanti Minnesota, Inc. holds a total of 238 state mineral leases administered by the Minnesota Department of Natural Resources. These state mineral leases encompass an area of approximately 95,000 acres. The company’s exploration activities on these lands include regional geophysical surveying, surface geological mapping, rock chip and glacial till sampling, and roto-sonic drilling.

Mineralterminated its exploration activities in the state. In early 2021, the company completed closing out its activities in Minnesota are generally subject to applicable federal,in accordance with state and local permitting requirements, but the specific regulatory authorizations required for a company’s activities are based on the nature of the exploratory work. Before conducting mineral exploration activities on state lands, a company must hold a state mineral lease and obtain approval from the Minnesota Department of Natural Resources of an exploration plan of operations. AngloGold Ashanti Minnesota, Inc. currently holds state mineral leases for the state lands on which it is conducting its operations and has obtained agency approval for its current exploration program. In addition, AngloGold Ashanti Minnesota, Inc. must maintain its registration as an exploratory borer and provide the requisite advance notice of any drilling activities to the Minnesota Department of Health. For its currently approved exploration program, AngloGold Ashanti Minnesota, Inc. has no present obligation to complete environmental review, obtain environmental permits, or submit any financial assurance or bonds. The company must comply with the terms of its leases and the conditions of its approved exploration plan of operations, including reclamation of its drill sites. Any potential future exploration programs may, depending on their scope, be subject to additional environmental review and permitting requirements, but these requirements are generally less extensive than those required for mineral development. In the event the company decides to proceed with mineral development within the state of Minnesota, it will need to complete an Environmental Impact Statement and obtain a variety of federal, state, and local permits, including a Minnesota permit to mine and environmental permits relating to water quality, air quality, wetlands, and other permits typically associated with mining projects.requirements.


Potential regulatory changes


Over the years, the U.S. Congress has considered a number of proposed amendments to the General Mining Law and other Federal statutes.federal statutes relating to mining. Among the significant features contained in previously proposed legislation were a production royalty obligation, new and more stringent environmental standards and conditions, additional reclamation requirements, extensive new procedural steps which would likely result in extended permitting timelines and granting counties and other entities the ability to petition the U.S. Secretary of the Interior to make certain areas unavailable for the location of unpatented mining claims. The U.S. Environmental Protection Agency has also proposed potential revisionsIn June 2020, former President Trump signed an executive order directing certain federal agencies to financial assurance requirements relating to mineral development activities.

The company is unawarestreamline the review processes associated with permitting of any potential Federal legislative or regulatory changes thatinfrastructure and natural resources projects. Many of those policies have subsequently been rescinded by the Biden administration. While certain other executive orders may adverselyfavorably affect the company’s current exploration program in Nevada.timing of our permit and project approvals, the impact is yet to be determined and remains uncertain.


In Minnesota, the state legislature and various state agencies have also considered potential changes in statutes and regulations governing mineral exploration and development activities. These potential changes include revisions to relating to species, cultural resources, and water quality protection.


AGA is currently unaware of any other new legislationfederal or state legislative or regulatory changes or rule-making that has been proposed or enacted that would adversely affect its current exploration programs.programmes. If any of the above-referenced provisionsrequirements, standards or conditions were adopted in the future that imposed additional or new obligations or costs on AGA in connection with our exploration or extraction activities in the United States, the company’s operations in Nevada and Minnesota could be adversely affected.




MINE SITE REHABILITATION AND CLOSURE


Closure, an integral part of operations


All mining operations eventually cease. An integral aspect of operating AngloGold Ashanti’s mines is ongoing planning for and, where feasible, implementation of concurrent rehabilitation, together with an estimate of associated liability costs and the placement of adequate financial provisions and assurances to cover these costs.


All of AngloGold Ashanti revised its group closure planning management standard in 2013 and all of itsAshanti’s operations are required to comply with theits group closure planning standard, as well as applicable law and regulations, as their closure plans are reviewed and updated.

Closure planning is an activity that starts at the exploration and mine design stage and continues throughout the life of mine:
•New projects include a conceptual closure plan which takes into accountanticipates future closure and associated rehabilitation activities and otherrelated costs.
•The closure plan is reviewed annually and updated every three years (annually in the final three years of a mine’s life) or whenever significant changes are made, taking into account operational conditions, planning and regulatory requirements, international protocols, technological developments and advances in practice.international good practice (e.g., ICMM Mine Closure: Good Practice Guide) and technological developments.


For many of the older mines, closure planning and the evaluation of environmental liabilities is a complex process. This is particularly so in Brazil Ghana and South Africa,Ghana, where many of the mining and other operations have taken place for more than fifty years. A particular challenge is concurrent rehabilitation, which is carried out while a mine is still operational. This practice serves to decrease the ultimate liability and reduces the final rehabilitation and closure work that must be undertaken, but has the potential to sterilise OreMineral Reserve, which the company might wish to exploit should conditions, such as the gold price, change.


The company’s group closure standard stipulates that closure planning must be undertaken in consultation with the community.stakeholders. In the course of these consultations, different issues are raised which require site-specific solutions. Livelihood preservation and infrastructure are often key requirements. Communities also require information on the company’s rehabilitation of the landscape and on any lasting environmental impacts. Long-term remediation obligations, including decommissioning and restoration liabilities relating to past operations, are based on environmental management plans and compliance with current environmental and regulatory requirements.


Provisions for decommissioning and rehabilitation costs are made when there is a present obligation, it is probable that expenditure on decommissioning and rehabilitation work will be required and the cost can be estimated within a reasonable range of possible outcomes. These costs are based on currently available facts, technology expected to be available at the time of the clean-up,rehabilitation, laws and regulations presently or virtually certain to be enacted and previous experience in the rehabilitation of mine sites.


Decommissioning costs and restoration costs are provided at the present value of the expenditures expected to settle the obligation, using estimated cash flows based on current prices. Estimates are discounted at a pre-tax rate that reflects current market assessments of the time value of money.





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Provisions for decommissioning and for restoration (excluding joint ventures) decreasedventures and discontinued operations) increased from $724$674 million in 20172020 to $622$688 million in 2018.2021. This changeincrease mainly relates to the sale of the Vaal river operations in South Africa, the new rehabilitation regulations at Obuasi, changes in discount rates based on global economic assumptions andassumptions. The provisions were also impacted by changes in mine plans, resulting in a change in cash flowsflows.


SUSTAINABILITY AND ENVIRONMENTAL, SOCIAL AND GOVERNANCE (“ESG”) MATTERS

AngloGold Ashanti’s sustainability approach is fundamental to how the company operates its business, as well as its ability to create long-term value for its shareholders, employees and changessocial partners through safely and responsibly exploring, mining and marketing its products. Sustainability and safety are integrated into the company’s business and operations at all levels through various frameworks, standards and policies, and the company measures its performance in design of tailings storage facilitiesachieving its goals against its sustainability and in methodology following requests from the environmental regulatory authorities.other ESG metrics, as well as its engagement with stakeholders.

ENVIRONMENTAL, HEALTH AND SAFETY MATTERS


In additionmitigating the risks and impacts that are an inherent part of its business, AngloGold Ashanti is informed by an annual assessment of its key ESG issues. This process is aligned with guidance published by the International Integrated Reporting Council (“IIRC”), the Sustainability Accounting Standards Board (“SASB”), the Global Reporting Initiative (“GRI”) Standards and the Accountability AA1000 Stakeholder Management Standard. This assessment is annually reviewed by AngloGold Ashanti’s senior leadership and approved by the Social, Ethics and Sustainability Committee (the “SES Committee”).

AngloGold Ashanti’s board of directors, assisted by the SES Committee, has ultimate responsibility over environmental, safety, health and ethical matters and for the integration of sustainability objectives into AngloGold Ashanti’s business. This includes oversight of the company’s stakeholder engagement framework and structures, which apply to post-mining land rehabilitationinvestors, employees, governments, suppliers and closurecommunities, at every stage of its business from exploration to mine closure. Group Corporate Affairs and Sustainability is responsible for development of management systems and supports the company’s general managers in the day-to-day implementation of its sustainability strategy.

AngloGold Ashanti maintains a set of policies and procedures to guide the company in acting as a responsible corporate citizen, including the Code of Business Principles and Ethics which sets requirements for the implementation of key corporate policies and guidelines and applies to all management and employees, and to maintain compliance with applicable environmental, health and safety (“EHS”) laws. In 2021, AngloGold Ashanti continued with the implementation of the Integrated Sustainability Information Management System (“iSIMS”), in order to improve internal reporting and better integrate and monitor sustainability activities with respect to its broader business. This common reporting system for all sustainability disciplines, from safety, health and security to community and environmental management, is expected to help provide timely information in each of these areas, and to facilitate transparency and decision-making in its processes and practices.

Significant EHS requirements and ESG risks and trends affecting the company’s mining and processing operations are described below.

EHS Regulatory Compliance

AngloGold Ashanti is subject to extensive environmental, health and safety (EHS)EHS laws and regulations in the various jurisdictions in which the company operates. These requirements govern, among other things, extraction, use, conservation and discharge of water; air emissions (including dust control)control and greenhouse gases (“GHGs”)); regulatory and community reporting; clean-up of contamination; land use and conservation of protected areas; rehabilitation and closure of mined land; worker health and safety and community health; and the generation, transportation, storage and disposal of solid and hazardous wastes, such as reagents, radioactive materials, and mine tailings. In addition, environmentalEnvironmental laws and regulations applicable to the company’s operations, including the requirements contained in environmental permits, are generally becoming more restrictive. Significant EHS requirements, risks and trends affecting our mining and processing operations are described below.


Regulatory Compliance


Capital and operating costs to comply with EHS laws and regulations have been, and are expected to continue to be, significant to AngloGold Ashanti. In addition, AngloGold Ashanti could incur fines, penalties and other sanctions, environmental clean-up costs, and third-party claims for personal injury or property or natural resources damages; suffer reputational damage; and be required to install costly pollution control equipment or to modify or suspend operations, as a result of actual or alleged violations of, or liabilities under, EHS laws and regulations. Failure to comply with applicable EHS laws and regulations may also result in the suspension or revocation of permits and, in some jurisdictions, ourthe right to mine a given concession. AngloGold Ashanti’s ability to obtain and maintain permits and other approvals and to successfully operate in particularnear host communities may be adversely impacted by real or perceived effects on the environment or human health and safety associated with AngloGold Ashanti’s or other mining companies’ activities. In addition, unknown environmental hazards may exist at the company’s properties which may have been caused by previous owners or operators.


Water ManagementSOUTH AFRICA


As part of the South African asset sale, AngloGold Ashanti Limited sold its remaining three mining rights in South Africa to Golden Core Trade and Invest (Pty) Ltd (“Golden Core”) and Harmony Gold Mining Company Limited pursuant to a sale agreement concluded on or about 12 February 2020, as amended and reinstated from time to time (the “SA Sale Agreement”). These mining rights relate to operations in the West Wits area.

General laws relating to mining

The MPRDA

The Mineral and Petroleum Resources Development Act, No. 28 of 2002 (the “MPRDA”) came into effect on 1 May 2004. The objectives of the MPRDA are, amongst other things, to allow for state sovereignty over all mineral and petroleum resources in the country, to promote economic growth and the development of these resources and to expand opportunities for the historically disadvantaged and to ensure security of tenure for the respective operations concerning prospecting, exploration, mining and production. By virtue of the provisions of the MPRDA, the state ensures that holders of mining and prospecting rights contribute to the socioeconomic development of the areas in which they operate. The Mineral and Petroleum Resources Development Amendment Act, No. 49 of 2008 (the “MPRDAA”) became effective on 7 June 2013. On 23 April 2004, the Minister of Mineral Resources and Energy (the “MRE Minister”) published, under the terms of the MPRDA, the Mineral and Petroleum Resources Development Regulations in order to implement the provisions of the MPRDA and MPRDAA. These implementation regulations were amended on 27 March 2020.

The mining charter

Since 2004, a series of mining charters have been adopted in South Africa with the main purpose of transferring part of the ownership of mining assets to black or historically disadvantaged South Africans (“HDSAs”) within a certain time period. Such mining charters also set targets for, amongst other things, the advancement of HDSAs into management positions, the employment of women, procurement of goods and services from HDSA-owned companies, training, community development and the upgrading of mine housing. In 2004, the Broad-Based Socio-Economic Empowerment Charter for the South African Mining Industry, 2004 was published and, in September 2018, the Broad-Based Socio-Economic Empowerment Charter for the Mining and Minerals Industry, 2018 (the “2018 Mining Charter”) was published, repealing all prior mining charters. In September 2021, the High Court of South Africa (Gauteng Division) held that the 2018 Mining Charter is a policy document and does not, per se, bind holders of mining titles. The High Court also set aside various provisions of the 2018 Mining Charter. In



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November 2021, the South African Department of Mineral Resources and Energy (“DMRE”) informed the parliamentary portfolio committee on mineral resources and energy that it does not intend to appeal the outcome of the judgement, but instead will consider steps to achieve the empowerment objectives through legislative amendments to the MPRDA.

The B-BBEE Act

The Broad-Based Black Economic Empowerment Act, No. 53 of 2003 (the “B-BBEE Act”) is a law of general application in respect of Broad-Based Black Economic Empowerment (“B-BBEE”) and enables the Minister of Trade and Industry to drive B-BBEE across all sectors of the economy. In 2014, the Broad-Based Black Economic Empowerment Amendment Act, No. 46 of 2013 (the “B-BBEE Amendment Act”) came into effect amending the B-BBEE Act to provide a framework of principles, strategies and guidelines aimed at promoting the broad-based socio-economic empowerment of HDSAs across the South African economy and society in the form of ownership, management, employment equity, skills development, preferential procurement, enterprise development and socio-economic development.

Environmental laws relating to mining

The National Environmental Management Act, No. 107 of 1998, as amended (the “NEMA”) includes provisions to deal with environmental regulation of mining and prospecting, which provisions are administered by the MRE Minister. Pursuant to section 24N(8) of NEMA, directors of a company are jointly and severally liable for any negative impact on the environment, whether advertently or inadvertently caused by the company they represent, including damage, degradation and pollution.

From an environmental perspective, given the wide scope of the statutory duty of care in South African environmental law, erstwhile land owners may be held liable for historic contamination by the regulatory authorities. The “polluter pays” principle in South Africa enables the competent authority to seek recourse against various responsible parties based on their historical or current relationship to the source and receptor of degradation or pollution. The duty of care also applies retrospectively to significant pollution or degradation that occurred before the entry into force of NEMA (i.e., 29 January 1999), as well as significant pollution or degradation that arises or is likely to arise at a different time from the actual activity that caused the contamination (e.g., latent or residual impact) or arises through an act or activity of a person that exacerbates pre-existing contamination. The authorities can also seek compensation in respect of clean-up measures that it is required to take on behalf of the responsible parties and apportion liability amongst the responsible parties, which could technically include a historic landowner or mining company that caused the pollution. Although the purchasers of AngloGold Ashanti’s assets in South Africa have contractually assumed all environmental liability associated with its former South African operations and agreed to indemnify AngloGold Ashanti for the same, there remains a risk, at least theoretically, of statutory liability to the state.

AngloGold Ashanti’s rights and permits

Pursuant to the SA Sale Agreement, AngloGold Ashanti and Golden Core executed a notarial deed of cession of the mining rights with DMRE references GP 30/5/1/2/2/01 MR and processingGP 30/5/1/2/2/248 MR to transfer and cede these mining rights to Golden Core (the “Deed of Cession”). On 14 June 2021, the Deed of Cession was registered at the Mineral and Petroleum Titles Registration Office (the “MPTRO”).

With respect to the mining right held under DMRE reference GP 30/5/1/2/2/11 MR, AngloGold Ashanti and Golden Core agreed to make an application in terms of section 102 of the MPRDA at the DMRE after the closing date of the SA Sale Agreement requesting, among other matters, the incorporation of this mining right into the mining right with DMRE reference GP 30/5/1/2/2/01 MR (the “Harmony Consolidation Application”). AngloGold Ashanti also executed a notarial conditional deed of abandonment pursuant to which it conditionally abandons this mining right in terms of section 56(f) of the MPRDA (the “Deed of Abandonment”) on condition that ministerial consent is granted in respect of the Harmony Consolidation Application. On 17 January 2022, the Harmony Consolidation Application was submitted to the DMRE. On the date of the grant of the Harmony Consolidation Application, AngloGold Ashanti will cease to be a holder of any mining rights in South Africa. Once the transaction has been fully implemented, the general laws relating to mining outlined above will no longer be applicable to the company, other than the statutory duty of care in terms of NEMA as described above.


AFRICA REGION

Democratic Republic of the Congo (DRC)

General laws relating to mining

The mining industry in the DRC is primarily regulated by Law No. 007/2002 dated 11 July 2002 (the “2002 DRC Code”), as amended by Law No. 18/001 dated 29 January 2018 (the “Reformed DRC Mining Code”) and Decree No. 038/2003 dated 26 March 2003, as amended by Decree No. 18/024 dated 8 June 2018 (the “Reformed DRC Mining Regulations”).






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With respect to the application of the Reformed DRC Mining Code and Reformed DRC Mining Regulations, Kibali Goldmines S.A. (“Kibali Goldmines”) has reserved and continues reserving its rights, including, without limitation, its stability rights under, among other legal sources, the 2002 DRC Code. Discussions with the DRC government on these issues and the possible application of incentives that may be available under the Reformed DRC Mining Code and Reformed DRC Mining Regulations, in particular under article 220 of the Reformed DRC Mining Code which provides that the Prime Minister of the DRC may grant a number of incentives to provinces with infrastructure deficits to encourage economic development from mining resources, are ongoing.

Companies holding mining titles issued prior to the entry into force of the Reformed DRC Mining Code and Reformed DRC Mining Regulations have claims to a 10-year stability provision in accordance with prior mining legislation. Notwithstanding the adoption of the new regulatory regime, their rights with respect to such stability provision are reserved.

The Reformed DRC Mining Code grants the DRC Minister of Mines the authority to grant, refuse, suspend or terminate mineral rights, subject to conditions set out in the Reformed DRC Mining Code. Mineral rights may be granted in the form of exploration permits for an initial period of five years or in the form of mining permits which are granted for an initial period of 25 years. Mining permits are granted upon successful completion of exploration and satisfaction of certain requirements, including approval of a feasibility study, an environmental impact study and an environmental management plan. The holder of a mining permit is required to commence development and mine construction within three years of the award of such permit. Failure to do so may lead to forfeiture of the mining permit. To protect and enforce rights acquired under an exploration or mining permit, the Reformed DRC Mining Code provides, depending on the nature of a dispute or threat, administrative, judicial and national or international arbitral recourses.

Mining companies are required to grant a free-carried and non-contributory participation to the DRC government. The DRC government’s free participation was originally set at 5 percent, which was increased to 10 percent in respect of mining titles issued after the entry into force of the Reformed DRC Mining Code. All mining companies are required to grant an additional 5 percent free-carried participation to the DRC government upon each renewal of their exploitation permit. Under the Reformed DRC Mining Code, a 10 percent local contributory participation is also mandatory for mining titles issued after its entry into force.

Tax laws relating to mining

The Reformed DRC Mining Code sets out an exclusive and comprehensive tax and customs regime that is applicable to mining activities. Mining title holders are subject, amongst other things, to a corporate income tax of 30 percent, a windfall tax of 50 percent (subject to certain prerequisites) and are required to pay mining royalties to the DRC government. The royalty rate applicable to gold has been set at 3.5 percent. Mining title holders are also required to contribute a minimum of 0.3 percent of total turnover to community development.

The standard rate of VAT is 16 percent and is applicable to all mining companies. In the DRC, Kibali Goldmines is due certain refunds of VAT which, to date, remain outstanding. During 2021, AngloGold Ashanti did not recover any VAT offsets and refunds from its operations in the DRC. We believe that our attributable share of the net recoverable VAT balance (including recoverable fuel duty and after discounting provisions) owed to us by the DRC government amounted to $73 million as of 31 December 2021. While an agreement was reached with the DRC government on the reimbursement of the refundable VAT in 2018, uncertainty remains regarding the timing and level of cash receipts and offsets against other taxes for purposes of the recovery of our VAT receivables in the DRC.

The Reformed DRC Mining Code also provides for a level of fiscal stability. A stability clause stipulates that existing tax, customs and exchange control provisions applicable to mining activities are guaranteed to remain unchanged for a period of five years from the enactment of the Reformed DRC Mining Code.

Foreign exchange control regime

The Reformed DRC Mining Code imposed new exchange control rules requiring that mining title holders repatriate onshore 60 percent of sale revenues received during the investment amortisation period and 100 percent once the investment amortisation is completed. As a result of these new rules, AngloGold Ashanti was not able to fully repatriate dividends from its DRC operations to date.

In 2021, AngloGold Ashanti repatriated $231 million from its operations in the DRC, in the form of dividends from Kibali (Jersey) Limited. Kibali (Jersey) Limited received such cash from Kibali Goldmines S.A. in the form of loan repayments (AngloGold Ashanti’s attributable share: $150 million) and dividends (net of withholding taxes) (AngloGold Ashanti’s attributable share: $81 million). Our attributable share of the outstanding cash balances awaiting repatriation from the DRC amounted to $499 million as of 31 December 2021. The cash and cash equivalents held at Kibali Goldmines are subject to various steps before they can be distributed to Kibali (Jersey) Limited and are held across four banks in the DRC, including two domestic banks.






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AngloGold Ashanti’s rights and permits

AngloGold Ashanti holds a significant stake in the Kibali gold mine which is located in the north-eastern part of the DRC. The Kibali gold mine is owned by Kibali Goldmines which is a joint venture between Barrick Gold Corporation (45 percent), AngloGold Ashanti (45 percent) and Société Minière de Kilo-Moto S.A. (“SOKIMO”) (10 percent) which represents the interest of the DRC government. AngloGold Ashanti and Barrick Gold Corporation each have a 50 percent interest in Kibali (Jersey) Limited which holds their respective 45% interest in Kibali Goldmines.

The Kibali gold project is operated by Barrick Gold Corporation and comprises ten exploitation permits, of which eight expire in 2029 and two in 2030. Those exploitation permits (11447, 11467, 11468, 11469, 11470, 11471, 11472, 5052, 5073, and 5088) cover an area of approximately 1,836 km2 in the Moto goldfields.


Ghana

General laws relating to mining

Control of minerals and mining companies

The Constitution of Ghana as well as the Minerals and Mining Act, 2006 (Act 703) (the “GMM Act”) provide that all minerals in Ghana in their natural state are the property of the State and title to them is vested in the President on behalf of and in trust for the people of Ghana, with rights of reconnaissance, prospecting, recovery and associated land usage being granted under licence or lease. The grant of a mining lease by the Ghana Minister of Lands and Natural Resources (the “LNR Minister”) upon the advice of the Minerals Commission is subject to parliamentary ratification unless the mining lease falls into a class of transactions exempted by the Ghanaian Parliament. The LNR Minister has the power to object to a person becoming or remaining a controller of a company which has been granted a mining lease if the LNR Minister believes, on reasonable grounds, that the public interest would be prejudiced by the person concerned becoming or remaining such a controller.

Stability and development agreements

The GMM Act provides for stability agreements as a mechanism to guarantee certain terms and conditions, mainly fiscal, to which a company’s operations are heavily dependent upon accesssubject for a period of 15 years. A development agreement, as provided for by the GMM Act, may be made available to substantial volumesa mineral right holder with a proposed investment exceeding $500 million. The GMM Act also provides that the terms of watera development agreement may contain stability terms as provided for in stability agreements. Stability and development agreements are subject to parliamentary ratification. In January 2020, certain amendments to the GMM Act, including, among other measures, the abolishment of development agreements and the shortening of stability agreements from a period not exceeding 15 years to a period of five years (with a possible extension of another five years) were proposed. If adopted, however, such amendments would not apply retroactively and would therefore not have an impact on existing development agreements, including the Obuasi Development Agreement (as described below).

Ghana Stability Agreement

In 2004, AngloGold Limited and the Government of Ghana signed a stability agreement (the “Ghana Stability Agreement”) governing certain aspects of the fiscal and regulatory framework under which the company would operate in Ghana for a period of 15 years following the implementation of the business combination between AngloGold Limited and Ashanti Goldfields Company Limited. In June 2018, the Ghana Stability Agreement ceased to apply to the Obuasi mine as a result of the parliamentary ratification of a new development agreement and a new tax concession agreement in relation to the mine (as described below). However, the Ghana Stability Agreement continued to apply to the Iduapriem mine until it expired in April 2019. Since then, AngloGold Ashanti (Iduapriem) Limited (“AGA Iduapriem”) no longer benefits from the Ghana Stability Agreement. Relevant engagements are currently ongoing between AGA Iduapriem and the Minerals Commission to obtain a new agreement for the Iduapriem mine.

Obuasi Development Agreement

AngloGold Ashanti (Ghana) Limited (“AGA Ghana”) negotiated a new development agreement in relation to the Obuasi mine (the “Obuasi DA”) with the Government of Ghana. On 21 June 2018, the Ghanaian Parliament ratified the Obuasi DA which contains stability terms as provided for in stability agreements. The Obuasi DA confers a number of rights and obligations on AGA Ghana with respect to the Obuasi mine, including, among other matters, (i) the stabilisation of the fiscal and regulatory framework (except for enactments promoting the use of Ghanaian goods and services) for a period of 10 years (with a potential of it being extended for five years); (ii) the right to hold up to 80 percent of proceeds received from exporting minerals in foreign currencies outside of Ghana; (iii) obligation to give preference to materials and goods made in Ghana as well as services provided by Ghanaians; and (iv) the right to peaceful enjoyment and protection against expropriation.






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Obuasi Tax Concession Agreement

Fiscal terms, which will ordinarily form part of a single stabilisation document, were separated from the Obuasi DA. Hence a separate tax concession agreement in relation to the Obuasi mine (the “Obuasi TCA”) was signed with the Government. On 21 June 2018, Parliament ratified the Obuasi TCA with a concession period until 31 December 2027. The Obuasi TCA contains a number of tax concessions for AGA Iduapriem with respect to the Iduapriem mine, including, among other matters, (i) a corporate income tax rate of 32.5 percent or such lower rates as may be fixed by law (instead of the current statutory rate of 35 percent); (ii) exemption of certain transactions from capital gains tax; (iii) a sliding scale royalty rate ranging from 3 percent to 5 percent for a price ranging from $1,300 up to $2,000 and above per ounce (instead of the current flat rate of 5 percent); and (iv) certain VAT exemptions and refunds.

Government’s Golden Share

Section 60(1) of the GMM Act provides that the Government of Ghana can require a mining company to issue for no consideration to the Republic of Ghana a special share (a “Golden Share”). A Golden Share in AGA Ghana was issued to the Government of Ghana and the Obuasi DA confirms that the Government’s rights with respect to its Golden Share apply only in respect of AGA Ghana’s assets and operations in Ghana. The Golden Share confers certain rights on the Government in respect of AGA Ghana. For example, written consent of the holder of the Golden Share is required for, suchamong other matters, (i) any amendment of the rights and restrictions in respect of the Golden Share; (ii) the voluntary winding-up or voluntary liquidation of AGA Ghana; (iii) the disposal of any mining lease held by AGA Ghana; and (iv) the disposal of all or substantially all of the assets of AGA Ghana. The holder of the Golden Share generally does not have the right to participate in the profits or assets of AGA Ghana (by way of dividend or other capital issuances), but is entitled to attend any general meeting of shareholders.

Tax laws relating to mining

Currently, the main tax laws in Ghana include the following acts and regulations, which have been frequently amended over the years:
•Income Tax Act, 2015 (Act 896) (as amended) and Income Tax Regulations, 2016 (L.I. 2244);
•Customs Act, 2015 (Act 891) (as amended) and Customs Regulations, 2016 (L.I. 2248);
•Value Added Tax, 2013 (Act 870) (as amended) and Value Added Tax Regulations, 2016 (L.I. 2243); and
•Revenue Administration Act, 2016 (Act 915).

The Income Tax Act, 2015 (Act 896) ringfences and taxes income derived from mining operations at the rate of 35 percent. The Obuasi TCA for AGA Ghana provides for a stabilised income tax rate of 32.5 percent. AGA Iduapriem currently pays income tax at the rate of 35 percent.

Furthermore, mining companies are subject to the payment of ground rent and royalties. The current royalty rate amounts to 5 percent. However, a sliding scale royalty rate has been adopted for AGA Ghana as provided by the Obuasi TCA. The provision of goods and services is liable to value added tax (“VAT”) at a revised rate of 12.5 percent. In addition, there are separate levies, including a 2.5 percent National Health Insurance Levy (“NHIL”), a 2.5 percent Ghana Education Trust Fund Levy (“GetFund Levy”) and a 1.0 percent COVID-19 Levy. By virtue of the Obuasi TCA, AGA Ghana is exempt from the payment of the NHIL and GetFund Levy. In addition, while AGA Ghana is technically exempt from the payment of the COVID-19 Levy (as it became operational subsequent to the effective date of the Obuasi DA), the company decided to pay the COVID-19 Levy voluntarily. AGA Iduapriem is not exempt from any of these levies.

Environmental laws relating to mining

Mining companies are required, under the GMM Act, Environmental Assessment Regulations, 1999 (L.I. 1652) and Water Use Regulations, 2001 (L.I. 1692), to obtain all necessary approvals from the Environmental Protection Agency (the “Ghana EPA”) and, in appropriate cases, the Water Resources Commission and/or the Ghanaian Minerals Commission before undertaking mining operations. Typically, water-use permits or water rights in each country impose limitsThis includes undergoing an environmental impact assessment process and, following the issuance of the environmental permit, periodically preparing environmental management plans, which include details of the likely impacts of mining operations on the quantityenvironment and local communities, as well as a comprehensive plan and timetable for actions to mitigate and remediate any adverse effects of the mining operations, for submission to the Ghana EPA. The Minerals and Mining (Health, Safety and Technical) Regulations, 2012 (L.I. 2182) also impose further obligations to obtain the necessary permits from the Inspectorate Division of the Ghana Minerals Commission for the operation of mines. The environmental permits for AGA Ghana (for the Obuasi redevelopment project and for the construction and operation of tailings and water infrastructure projects) are valid until November 2022. The environmental permits for AGA Iduapriem (for the re-mining of Block 5 and for the tertiary crusher installation project) are valid until July 2022. Renewal processes for the environmental permits for both mines are underway. The permit for the tailings infrastructure project of AGA Iduapriem is valid until 2023.

Environmental laws in Ghana also require mining operators to rehabilitate land negatively impacted by mining operations according to an environmental cost reclamation plan agreed with the Ghana EPA. The environmental cost reclamation plan includes two cost estimates, namely the cost of rehabilitating the mining area at the end of the life of the mine as well as the cost of rehabilitating the mine as at the date of the reclamation plan. These estimates are reviewed annually and updated every two



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years. Each mining company is typically required to secure a percentage (typically between 50 percent and 100 percent) of the estimated rehabilitation costs by posting reclamation bonds underwritten by banks and restricted cash. The terms of each reclamation bond are determined by a reclamation security agreement between that company and the Ghana EPA. Both AGA Ghana and AGA Iduapriem have bank guarantees in place for environmental reclamation liabilities as well as escrow accounts with joint signatories from the Ghana EPA. The guarantees for AGA Iduapriem will expire in October 2022, whereas the guarantees for AGA Ghana are valid until December 2022.

Foreign exchange, export and other rules

Retention of foreign earnings

The Obuasi mine is permitted to retain 80 percent of its foreign exchange earnings in an offshore foreign exchange account, whereas the Iduapriem mine is allowed to only retain 45 percent. In addition, the company has permission from the Bank of Ghana to retain and use US dollars, outside of Ghana, to fulfil payment obligations to the company’s hedge counterparties which cannot be met from the cash resources of its treasury company.

Rules regarding the export of gold and diamonds

The Bank of Ghana introduced new measures to regulate and monitor the export of gold and diamonds from Ghana in 2015. From September 2015, all exports of gold and diamonds must be carried out through the Precious Minerals Marketing Company Ltd (“PMMC”), except where the exporter is the holder of a licence that permits it to export directly. The Ghana Revenue Authority (Customs Division) only permits gold to be exported by a licensed gold exporter who has a completed Form FEX A4 bearing Bank of Ghana’s embossment. The export measures do not apply to AngloGold Ashanti because the company holds a licence granted by the LNR Minister to sell and export its production.

Local assaying and refinement policies

In November 2016, the Ministry of Lands and Natural Resources issued a ministerial directive appointing the PMMC as designated laboratory for assaying in Ghana. The directive requests all persons holding export licences for gold to submit all gold to be exported to the PMMC for assay before export. Mining businesses, including AngloGold Ashanti, acting through the Ghana Chamber of Mines were opposed to this directive due to its potential negative impact on mining companies in the region. As a result, the Chamber initiated proceedings to reverse or modify the directive. Following discussions in respect of the mining industry’s concerns, the Chamber and Government agreed on the modalities for implementing the national assaying policy and it was introduced in February 2018 following a one-month pilot among certain mining companies. Subsequently, in June 2019, the LNR Minister released a statement reiterating the Government of Ghana’s plans to locally refine 30 percent of the gold produced in the country. Discussions between the Ghana Chamber of Mines and the Government of Ghana’s economic management team in 2019 led to the Chamber agreeing to consider the proposal and for the parties to discuss detailed modalities to ensure that a move to locally refined gold does not become detrimental to the mining industry.

Local content and local participation policy

Mining companies must submit a detailed programme for the recruitment and training of Ghanaians with a view to achieving “localisation”, which is the replacement of expatriate personnel in a company’s Ghanaian operations by Ghanaian personnel. In addition, mining companies must give preference to Ghanaian products and personnel, to the maximum extent possible, consistent with safety, efficiency and economies. The Minerals and Mining (General) Regulations, 2012 (L.I. 2173) give further details on the localisation policy. On 15 October 2020, the Minerals and Mining (Local Content and Local Participation) Regulations, 2020 (L.I. 2431) were adopted in order to expand the scope of local content requirements in the mining industry. For example, there are restrictions on the number of expatriates that can be extractedemployed by mineral rights holders and mine support service providers in a bid to enhance the participation of Ghanaians in the mining industry.

AngloGold Ashanti’s rights and permits

Obuasi

The Obuasi mine originally held four contiguous mining leases, the Obuasi Mining Lease and the Binsere 1, 2 and 3 Mining Leases. The Obuasi Mining Lease was granted by the Government of Ghana on 5 March 1994, covering an area of approximately 338 km2 in the Amansie East and Adansi West districts of the Ashanti region, for a term of 30 years from certain sourcesthe date of the agreement. The Binsere Mining Leases were granted on 9 April 1998, covering an area of 140 km2, for a term of 30 years from the date of the agreement. All leases in respect of the Obuasi mine had been duly ratified in accordance with Ghanaian law. In March 2007, the Government of Ghana agreed to extend the term of the Obuasi Mining Lease for a further term of 30 years. The amended Obuasi Mining Lease was also ratified by Parliament on 23 October 2008. The Obuasi Mining Lease will expire in March 2054 and require, among other things,the Binsere Mining Leases in April 2028. The mining leases are renewable. On 3 March 2016, the Minerals Commission approved AGA Ghana’s application to surrender approximately 273.54 km2 of the area to the Government of Ghana, reducing the lease areas to 201.46 km2. The remaining parcel of land that wastewater fromwill be subject to the mining operations meet certain water quality criteria upon discharge. Water supply, qualitylease is situated within various villages and usagetownships in the region but excludes the municipality of Obuasi. On 15 January 2021, the



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Minerals Commission approved AGA Ghana’s application to surrender a further 60.24 km2 of lease area, thereby reducing the total lease area to 141.22 km2. The current lease areas are areascovered by three mining leases: the Obuasi Mining Lease (87.48 km2), the Binsere 1 Mining Lease (29.03 km2) and the Binsere 2 Mining Lease (24.71 km2). These mining leases are covered by the Obuasi DA and Obuasi TCA.

Iduapriem

The Iduapriem mine operates under four different mining leases: the Iduapriem Mining Lease (LVB1539/89) (36.47 km2), the Ajopa Mining Lease (LVB/WR326/09) (46.12 km2), the Teberebie Mining Lease (LVB3722H/92) (28.53 km2) and the Ajopa South Mining Lease (LR#1109/1999) (28.10 km2). On 17 February 2020, the mining leases were extended for a further period of concern globally, but are particularly significant15 years and such leases will now expire in February 2035. All leases in respect of the Iduapriem mine have been duly ratified in accordance with Ghanaian law.


Guinea

General laws relating to mining

In Guinea, the mining industry is primarily regulated by Law L/2011/006/CNT dated 9 September 2011 as amended by Law L/2013/053/CNT dated 8 April 2013 and promulgated by Decree D/2013/075/PRG/SGG dated 17 April 2013 (together, the “Guinea Mining Code”).

The Guinea Mining Code is implemented by various decrees and orders, including Decree D/2014/015/PRG/SGG adopting a model of mining convention, dated 17 January 2014, Order A/2016/1584/MMG/SGG related to the administration’s capacities for operationsthe management of integrated mining projects (PARCA-GPI) and its steering committee, dated 6 June 2016, and Decree D/2016/163/PRG/SGG on the national agency for the development of mining infrastructures (ANAIM), dated 13 June 2016.

In 2017, Decree D/2017/285/PRG/SGG was adopted, which sets forth the conditions for the constitution and management of the Local Development Fund (“Fodel”), as well as Joint Order A/2017/6326/MMG/MATD/SGG, which sets forth the conditions for the use, management and control of the Fodel. Together, these set forth the use of the mining companies’ financial contribution to the development of the local communities and the rules applying to the Fodel, which was created under the Guinea Mining Code. On 13 July 2018, a Joint Order A/2018/5212/MEF/MMG/MB/MATD/SGG was issued, which regulates the use, management and monitoring of the resources allocated to local authorities pursuant to article 165 of the Guinea Mining Code. In 2019, an inter-ministerial committee was created to supervise and control the Fodel through the adoption of Joint Order AC/2019/089/MMG/MATD/SGG setting out the conditions for the constitution, powers and management of said inter-ministerial committee. On 6 September 2019, Decree D/2019/263/PRG/SGG was issued, which sets forth local content requirements in Brazil, Ghanathe framework of the implementation of public and South Africa, and for explorationprivate projects in Colombia, where there is significant potential environmentalGuinea.

On 16 June 2020, a new procedure for the export of gold by mining companies was enacted through the adoption of Decree D/2020/113/PRG/SGG, which sets out, amongst other things: (i) when the industrial production tax referred to in article 161-1 of the Guinea Mining Code shall be paid, and social impact(ii) the process to be followed to export gold bullion.

On 27 April 2021, a Joint Order AC/2021/824/MMG/BCRG/SGG was issued establishing the fees and costs charged by the Guinean mining authorities and the Guinean Central Bank in connection with the administrative procedures for the export of gold by industrial and semi-industrial companies.

AngloGold Ashanti’s rights and permits

The group’s Guinean subsidiary, Société AngloGold Ashanti de Guinée S.A. (“SAG”), has title to the Siguiri mine in the form of a high levelmining concession, granted by virtue of stakeholder scrutiny. Any failurePresidential Decree D/97/171/PRG/SGG, dated 4 August 1997, for a period of 25 years (the “Mining Concession”). The Mining Concession covers exploration and mining for gold, silver, diamonds and associated ores, and was originally covered by a mining convention entered into with the Republic of Guinea in 1993 and amended in 2005. On 28 June 2016, SAG and the Government of Guinea concluded a revised and consolidated mining convention (convention de base révisée et consolidée) (the “Revised Mining Convention”) which encompasses a renewal of the term of the original mining convention and other amendments necessary to secure accesssupport an expansion project to suitable water supplies, or achieve and maintainextend the life of the Siguiri mine (the “Expansion”). In compliance with the requirementsprovisions of the permits or licenses, could result in curtailment or suspensionGuinea Mining Code, the Revised Mining Convention was ratified by the Guinean National Assembly (Law L/2016/N°067/AN dated 30 December 2016, promulgated by Decree D/2017/015/PRG/SGG dated 24 January 2017), submitted to the Guinean Supreme Court which rendered a favourable opinion (Judgement N°AC 005 dated 16 January 2017), and ratified by the President of production at the affected operation. IncidentsRepublic of water pollution or shortage can, in extreme cases, leadGuinea (Decree D/2017/021/PRG/SGG dated 24 January 2017), following which it replaced the original mining convention and became effective on 24 January 2017.








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Key elements of the Revised Mining Convention include the following:

•a duration of 25 years, expiring 23 January 2042, subject to community protestfurther renewal if mining operations continue;
•the term of the Mining Concession is aligned with the term of the Revised Mining Convention since the Republic of Guinea committed to maintain the Mining Concession for the entire duration of the Revised Mining Convention;
•SAG’s operations remain governed by the 1995 Guinea Mining Code (the prior mining code) and ultimately resultare only subject to the provisions of the Guinea Mining Code to the extent they are expressly set out in the withdrawalRevised Mining Convention;
•the stability of communitythe customs and government supporttax regime is guaranteed for the company’s operations.entire initial term of the Revised Mining Convention, and subject to certain conditions being met, any renewal period(s);

•the Republic of Guinea holds a 15 percent free-carried/non-contributory interest;
Where feasible, •the company operatesRepublic of Guinea is entitled to a “closed loop” systemroyalty on gold of 5 percent based on a spot gold price as per LBMA fixing (PM) up until the date of steady state commercial production of the first phase of the Expansion, after which recycles the water used in its operations without dischargingroyalty rate applicable to gold will vary depending on threshold prices as per LBMA fixing (PM), namely: 3 percent if the gold price is $1,300 or less, 5 percent, if above $1,300 and up to $2,000 and 7 percent if above $2,000;
•SAG benefits from 5-year income tax holiday from the beginning of steady state commercial production of the first phase of the Expansion, after which the income tax rate is set at 30 percent;
•a local development tax of 0.4 percent is payable on the sale price for gold and silver received by SAG up until 31 December 2027, after which it will be increased to 0.6 percent;
•salaries of expatriate employees are subject to a 10 percent income tax;
•goods imported into Guinea for purposes related to the environment. In someconstruction and commissioning of the first phase of the Expansion are exempt from all customs taxes and duties; and
•SAG is committed to adopting and progressively implementing a plan for the effective rehabilitation of the mining areas however, such as Ghanadisturbed or affected by its operations.

The Mining Concession covers an area divided into four blocks totaling approximately 1,495 km2. SAG has the exclusive right to explore and Brazil, high levelsmine in any part of rainfall and surface water runoff mean thatthe concession area for the duration of the Revised Mining Convention. The Revised Mining Convention also grants SAG the option to secure certain land rights over additional areas currently covered by exploration permits, but to which SAG may need access for purposes of establishing roads or storage of tailings. The Mining Concession is due to expire on 4 August 2022. On 1 February 2022, a closed loop system is not feasible and that discharges, after water treatment if necessary, must take place.

Waste Management

Mining and mineral processing operations generate waste rock and tailings.

During open-pit mining, large volumes of soil and/or rock (overburden) are generated to expose the ore body. Similarly, waste rock is generated during drilling and developing access to underground ore bodies. Overburden and waste rock typically contain sub-economic levels of gold and are deposited as large waste rock dumps. Mine tailings are the process waste generated once grinding and extraction of gold from the ore is completed in the milling process and are deposited as slurry in large storage facilities specifically designed for this purpose.

The impact of dust generation, breach, leak, or other failure of a waste rock or tailings storage facility (TSF), including any associated dam, can be significant, and the company therefore monitors such facilities closelyrenewal request was filed in accordance with the provisions of the Revised Mining Convention. Pursuant to the Revised Mining Convention, the Mining Concession can be renewed for one or more period(s) that cannot exceed 10 years each as long as the Revised Mining Convention is in force.

The Revised Mining Convention is subject to early termination if the parties formally and expressly agree to it, if the last of the mining title held by SAG expires or is relinquished without any renewal application having been filed, if all project activities are voluntarily suspended for a continuous period of 12 months or are permanently abandoned by SAG, or if SAG goes into voluntary liquidation or is placed into liquidation by a court of competent jurisdiction.


Mali

General laws relating to mining

The mining industry in Mali is primarily regulated by Ordinance No. 2019-022/P-RM dated 27 September 2019 containing the new mining code of the Republic of Mali (the “Mali Mining Code”) and Decree No. 2020-0177/PT-RM dated 12 November 2020 implementing the Mali Mining Code. On 8 December 2020, Decree No. 2020-0288/PM-RM enacted the new model mining convention referred to in Decree No. 2020-0177/PT-RM.

The Mali Mining Code applies to the mining operations previously carried out by AngloGold Ashanti entities in Mali (as further described below) except with respect to the validity, scope and duration of their exploitation permits and the provisions on tax and customs regime contained in their mining conventions (conventions d’établissement) for their remaining duration. In this regard, the transitory rules of the Mali Mining Code specify that mining conventions in force remain valid for their remaining term and their holders continue to benefit from the stability of the tax and customs regime set out therein.

Exploration and prospecting activities are carried out under exploration authorisations (autorisation d’exploration) or exploration permits (permis de recherche), which give their holder the exclusive right to carry out exploration activities over a given area. Exploration authorisations are granted by the Mining Administration (Administration chargée des Mines) for a non-renewable period of three months, while exploration permits are granted by Ministerial Order for a period of three years renewable twice for additional 3-year periods. Applications for exploration authorisations and exploration permits must contain various documents attesting to the financial and technical capacity of the applicant as well as a detailed works and costs programme.

A large scale permit exploitation permit (permis d’exploitation de grande mine) is required to mine a deposit located within the area of an exploration permit and grants the holder an exclusive right to exploit the named substances and proceed with the processing and commercialisation of the substances extracted within its perimeter. Large scale exploitation permits are granted by decree of the Head of Government for a maximum period of 12 years renewable for 10 year-periods until depletion of the deposits. An application must be submitted to the Mining Administration (Administration chargée des Mines) and must contain



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various documents attesting to the financial and technical capacity of the applicant, a feasibility study, a detailed environmental study in respect of the impact of the project on the environment, an environmental permit, a closure and rehabilitation plan as well as a community development plan. As soon as the large scale exploitation permit is granted, the permit holder must incorporate a company under the laws of Mali and assign the permit for free to this company. The State will have a 10 percent free-carried interest in the company. This interest will be converted into priority shares and the State’s participation will not be diluted in case of an increase in capital. In addition, the company is required to ensure that private Malian investors are offered the possibility to acquire 5 percent of their capital.

All mining titles mentioned above (save for the exploration authorisation) require a mining convention (convention d’établissement) to be signed by the State and the titleholder defining their rights and obligations, the duration of which is 20 years.

AngloGold Ashanti’s rights and permits

Historically, AngloGold Ashanti had interests in the Morila, Sadiola and Yatela gold mines, all of which were governed by mining conventions (conventions d’établissement) covering exploration, mining, treatment and marketing in a comprehensive document. These documents include general provisions regarding exploration (work programme, fiscal and customs framework) and exploitation (formation of a local limited liability mining company, State interest, fiscal and customs framework governing construction and exploitation phases, exchange controls, marketing of the product, accounting regime, training programmes for local labour, protection of the environment, reclamation, safety, hygiene and dispute settlement). The Morila and Sadiola gold mines were sold in November and December 2020, respectively.

In April 2017, Société d’Exploitation des Mines d’Or de Yatela S.A. (“Yatela”), the company operating the Yatela gold mine, began the implementation of a closure plan in order to relinquish the property. In February 2019, AngloGold Ashanti and its joint venture partner IAMGOLD Corporation announced an agreement to sell each of their 40% interests in Yatela to the Government of Mali, which holds the remaining 20% interest. Completion of the transaction is subject to the fulfilment or waiver of a number of conditions precedent and has been delayed several times since 2019 due to political instability and related events in Mali as well as the COVID-19 pandemic. Yatela’s exploitation permit covers approximately 212 km2. Yatela has a 30-year permit which expires in 2030.


Tanzania

General laws relating to mining

Tanzania Mining Act and Tanzania Mining Regulations

Mineral rights in the United Republic of Tanzania are principally governed by the Mining Act, Chapter 123 (R.E. 2019), as amended (the “Tanzania Mining Act”) and the Mining Regulations, 2010, as amended (the “Tanzania Mining Regulations”). The Tanzania Mining Act and the Tanzania Mining Regulations came into force in November 2010 followed by amendments to the Tanzania Mining Act in 2017 and subsequent amendments to the Tanzania Mining Regulations in 2018 and 2019. Those amendments, together with an Executive Order, introduced, among other matters, (i) the Tanzania Mining Commission; (ii) local content requirements for procurement of goods and services; and (iii) Mining Licence requirements of 5 percent of a licencee’s equity to be held by Tanzanians, with 80 percent of its managerial positions to be held by Tanzanians and 100 percent of other positions to be held by Tanzanians, in addition to the shareholding of the Government of Tanzania pursuant to Section 10 of the Tanzania Mining Act (i.e. free-carried interest).

Minimum shareholding and public offering

In 2016, the Mining (Minimum Shareholding and Public Offering) Regulations, 2016, as amended, was adopted. The regulations set out the requirement to sell shares to Tanzanian nationals, by way of a public offering and listing on the Dar es Salaam Stock Exchange, which will apply to companies that are carrying out large scale mining operations. The regulations also require all existing holders of a special mining licence to list a minimum of 30 percent of their shares on either the Main Investment Market or the Enterprise Growth Market Segment of the Dar es Salaam Stock Exchange within 6 months of the regulations coming into force, which was on 24 February 2017. However, the company believes the listing requirement conflicts with the mining development agreement. In September 2020, the Government of Tanzania published the Mining (Minimum Shareholding and Public Offering) (Amendment) Regulations, 2020, which exempts companies holding special mining licences from local listing requirements if such mining company has entered into an agreement with the Government of Tanzania that provides for a non-dilutable free-carried interest in such mining company and an economic benefits sharing arrangement.

Arbitration

Along with other major mining companies, AngloGold Ashanti’s subsidiaries are seeking a constructive dialogue with the Government of Tanzania to gain assurances that the Geita gold mine will not be affected by recent legal and fiscal changes adopted by the Government in light of their mining development agreements which guarantee (i) fiscal and regulatory stability,



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and (ii) an agreement between all parties before material legal and regulatory changes are made. As a precautionary step to safeguard its interests, AngloGold Ashanti commenced international arbitration proceedings against the Government of Tanzania in connection with the enactment of this legislation in July 2017. Declaratory relief is sought in accordance with the terms of the company’s internal standards, independentexisting mining development agreement to preserve its and its shareholders’ rights and interests in the Geita gold mine. AngloGold Ashanti is seeking confirmation from the Government of Tanzania that, as a result of its existing mining development agreement, the company does not fall within the scope of the new mining legislation that includes, among other things, (i) listing requirements; (ii) an increase in the rate of revenue royalties from 4 to 6 percent and a 1 percent clearance fee; and (iii) a right for the Government of Tanzania to (a) renegotiate existing mining agreements at its discretion, (b) receive a non-dilutable, free-carried interest of no less than 16 percent in all mining projects, and (c) acquire up to 50 percent of the shares of the mining company commensurate with the total tax expenditure incurred by the Government in favour of the mining company. AngloGold Ashanti can provide no assurance that the new mining legislation, including the listing requirements, will not apply to its operations in Tanzania and the outcome of the arbitration action may have a material adverse impact on the company’s results of operations and financial condition. See also “Item 8A: Legal Proceedings—Tanzania”.

Categories of mineral right licences

Ownership of and control over minerals on, in or under the land vest in the President of the United Republic of Tanzania. No person is allowed to prospect for minerals or carry on mining operations except pursuant to the authority of a mineral right licence granted, or deemed to have been granted, under the Tanzania Mining Act or its predecessor acts. To enable a company to prospect or mine, the Tanzania Ministry of Minerals (“MEM”) initially grants an exclusive prospecting licence. Upon presentation of a feasibility study, together with certain other environmental, social and financial assurances, the MEM may then grant a form of licence for mining. Three categories of licences can be applied for under the Tanzania Mining Act: licences for exploration, licences for mining, and licences for ancillary activities. Licences for exploration include prospecting licences and gemstone prospecting licences. Licences for mining include special mining licences (if the proposed capital investment is equal to at least $100 million), mining licences (if the proposed capital investment is equal to between $100,000 and $100 million) and primary mining licences (reserved for Tanzanian citizens).

A prospecting licence grants the holder the exclusive right to prospect in the area covered by the licence for all minerals within the class of minerals applied for. An application for a prospecting licence is made to the Mining Commission and the licence, once granted, is valid for an initial term of four years. After the initial term, the licence is renewable for a further period of three years, with no option for renewal thereafter. Upon renewal, 50 percent of the area covered by the licence must be relinquished.

Mining is mainly carried out through either a mining licence or a special mining licence, both of which confer on the holder the exclusive right to conduct mining operations in or on the area covered by the licence. A special mining licence is granted for the shorter of either the estimated life of the ore body indicated in the feasibility study report or such period as the applicant may request. The holder of a special mining licence may apply for renewal of its licence at any time but no later than one year before the expiry of the licence and such renewal shall not be for a period exceeding the estimate life of the remaining ore body. Special mining licences have certain fiscal and other advantages over mining licences, as the holder of a special mining licence may enter into a mining development agreement with the Government of Tanzania to guarantee the fiscal stability of a long-term mining project and make special provision for the payment of royalties, taxes, fees and other fiscal imposts. A special mining licence holder may, in certain circumstances, unilaterally amend the programme of the mining operations agreed with the MEM.

Tax laws relating to mining

Currently, the main tax laws in Tanzania comprise the Finance Act, 2015 (No. 16), which came into force on 1 July 2015, and the Finance Act, 2017 (No. 4), which came into force on 1 July 2017. Both tax laws impose and revise certain taxes, duties, levies and fees. Among other provisions, inspection or clearance fees on the exportation or domestic use of minerals were introduced. Such exportation or domestic use is restricted unless such minerals have been inspected or cleared at the mining areas, ports, airports, border or posts and the clearing fee of 1 percent of the gross value of the minerals has been paid by the exporter or any other person in possession thereof. Local government levies and environmental management fees and charges apply as well.

Effective 20 July 2017, the Value Added Tax Act, 2014 (No. 5) (the “VAT Act”) was amended in order to restrict VAT relief for VAT input tax paid by mining companies on goods and services. Prior to the enactment of this amendment to the VAT Act, mining companies were entitled to 100% VAT relief in respect of the goods and services they purchased. The amendment prohibits refunds for VAT input tax incurred on a series of raw products, including the exportation of “raw minerals”. Subsequently, the Tanzania Revenue Authority (“TRA”) denied our applications for VAT input credit refunds, which amounted to a total of $142 million (after discounting provisions) as of 31 December 2021, covering the period from July 2017 onwards, on the basis that all of the gold doré that we export constitutes “raw minerals” for purposes of the VAT Act. In response, the company filed formal notices of objection with the TRA stating that the exportation of gold doré is, in its view, not covered by the restriction since doré does not fall within the category of “raw minerals” as used in the VAT Act. On 22 February 2019, the Tanzania Mining Act was amended to introduce a definition for “raw minerals” which supports our interpretation that gold doré is excluded from the prohibition. On 1 July 2020, the Finance Act, 2020 (No. 8), amended the VAT Act, without retrospective effect, in order to remove the restrictions on VAT input tax credits for the exportation of “raw minerals” as well as a series of other raw products. This recent amendment confirms the technical basis for VAT input tax recovery for mineral exporters from July 2020 onwards. VAT claims from July 2020 onwards are subject to verification procedures by the TRA before any refunds will be received. In 2021, the



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company was able to offset $54 million of verified VAT claims (from July 2020 onwards) against its corporate tax liability in Tanzania. Discussions with the TRA are ongoing to resolve our historical claims for VAT input credit refunds for the period from July 2017 to June 2020.

Natural resources, export and other rules

Natural resources legislation

In Tanzania, two laws in respect of natural resources came into force in July 2017: the Natural Wealth and Resources Contracts (Review and Re-negotiation of Unconscionable Terms) Act, 2017 (No. 6) (the “Unconscionable Terms Act”) and the Natural Wealth and Resources (Permanent Sovereignty) Act, 2017 (No. 5) (the “Permanent Sovereignty Act” and together with the Unconscionable Terms Act, the “Natural Resources Laws”). Implementing regulations were published in January 2020. The Natural Resources Laws provide that Tanzania has sovereignty over its natural resources and that all arrangements or agreements that relate to “natural wealth and resources” are subject to review by the National Assembly to ensure that they are in the interests of the people of Tanzania. During a review all unconscionable terms as interpreted in accordance with the law are expunged from the agreement. In addition, under the laws, disputes over natural wealth and resources will not be subject to any proceedings in any foreign court or tribunal. As a result, investors are restricted from accessing international dispute resolution mechanisms. Accordingly, companies are now required to adopt Tanzanian law and local dispute resolution in all mining agreements. As such, all disputes will be handles by Tanzanian judicial bodies or any other Tanzania government body vested with powers to resolve disputes. In addition, to ensure that the Government and the people of Tanzania obtain an equitable stake in the exploitation of mining resources, all project earnings must be retained in Tanzanian banks. Investors are also prevented from freely exporting raw minerals and repatriating funds.

Section 6 of the Unconscionable Terms Act specifically provides that where there is an unconscionable term, the National Assembly may pass a resolution for re-negotiation of the agreement whereupon the Government shall serve notice to the investor to re-negotiate the term or agreement. The Government and the particular investor have 90 days from the notice date to re-negotiate the term or agreement. If both parties fail to revise the unconscionable term, the term will be deemed removed from the agreement. A term is considered “unconscionable” under the Unconscionable Terms Act if, among other grounds, the requirements or provisions of the agreement restrict the right of the state to exercise authority over foreign investment within the country and in accordance with the laws of Tanzania, are inequitable and onerous to the state, secure preferential treatment designed to create a separate legal regime to be applied discriminatorily for the benefit of a particular investor, deprive the people of Tanzania of the economic benefits derived from subjecting natural wealth and resources to beneficiation in the country, or subject the state to the jurisdiction of foreign laws and foreign courts or tribunals.

Local participation policy

On 15 September 2015, the Non-Citizens (Employment Regulation) Act, 2015 (No. 1) (the “Non-Citizens Act”) came into force which vests powers concerning work permits with the Labour Commissioner. Therefore, non-citizens wishing to be employed in the country are required to apply and be granted a work permit before applying for a residence permit. Before granting the work permit, the Labour Commissioner must be satisfied that all efforts have been explored to acquire a local expert. Further, the company is required to submit a succession plan which sets out a well-articulated plan for the transfer of the non-citizen’s knowledge and expertise to Tanzanian citizens. Moreover, the Commissioner General of Immigration is required to take into consideration conditions of the work permit issued by the Labour Commissioner when granting a residence permit.

AngloGold Ashanti’s rights and permits

The Geita gold mine is located in the Lake Victoria goldfields of the Mwanza region of Tanzania. AngloGold Ashanti has concluded a mining development agreement with the Ministry of Minerals on 24 June 1999 and was issued a special mining licence (SML45/99) covering approximately 196 km2 for a period of 25 years, which expires on 26 August 2024. On 9 October 2014, an addendum to the mining development agreement was entered into ratifying, among other matters, an increase in the royalty rate from 3 percent to 4 percent with effect from 1 May 2012. In March 2020, Geita Gold Mining Limited received the consent of the Minister of Minerals to change the mining method under its special mining licence from open pit to underground method, subject to the requisite terms and conditions. Within the special mining licence area, there are also seven primary mining licences of approximately 0.63 km2 in total which belong to third parties. Furthermore, Geita Gold Mining Limited holds prospecting licences covering (i) an area of 120 km2 in the immediate vicinity of its special mining licence area, and (ii) an area of 690 km2 located in the Dodoma, Singida and Shinyanga regions, but none of these areas contain any Mineral Reserve. All licenses are in good standing.


AUSTRALIA

General laws relating to mining

In Australia, with a few exceptions, all onshore minerals are owned by the Crown. The respective Minister for each state and territory is responsible for administering the relevant mining legislation enacted by the states and territories.



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Native title legislation applies to certain mining tenements within Australia. Australia recognises and protects a form of native title that reflects the entitlement of Aboriginal people to their traditional lands in accordance with their traditional custom and laws. Should native title claims or determinations exist, certain native title processes and procedures will apply under the Native Title Act 1993 (Cth) (the “Native Title Act”) before the tenure is granted. Tenure may be granted subject to conditions relating to native title rights. In the mining context, native title matters are managed as part of the tenement grant process. If disputes arise in relation to the grant of a particular tenement, they can be referred to the National Native Title Tribunal, established under the Native Title Act, for resolution. Native title legislation also provides a framework for compensation to be paid for acts that affect native title rights and interests. Ordinarily, the relevant Commonwealth or State government is liable to pay compensation for acts attributable to it. However, in the state of Western Australia, the Mining Act 1978 (WA) provides that an applicant for the grant of, or the holder of, a mining tenement is responsible for native title compensation, if determined to be payable, to native title holders.

Federal, state and territory Aboriginal and non-Aboriginal heritage laws operate in parallel to the native title legislation. State and territory heritage laws exist predominantly for the purposes of managing the impact of developments on sites, objects and areas of heritage significance. In Western Australia, impacts to Aboriginal cultural heritage are regulated by the Aboriginal Heritage Act 1972 (WA). However, this legislation will be repealed and replaced by the Aboriginal Cultural Heritage Act 2021 (WA) which was enacted in 2021 and is expected to become effective in early 2023. Where an area of heritage significance is placed on the national or world heritage registers, federal approval processes may also apply. To date, there has not been any significant impact on any of AngloGold Ashanti’s tenure due to native title or heritage legislation.

AngloGold Ashanti’s operating properties are located in the state of Western Australia where tenure is issued under, and mining operations are governed by, the Mining Act 1978 (WA). The most common forms of tenure in Western Australia are exploration and prospecting licences, mining leases, miscellaneous licences and general purpose leases. In most Australian states, if the holder of an exploration licence establishes indications of an economic mineral deposit in the area covered by the exploration licence and complies with the conditions of the grant, the holder of the exploration licence has a priority right against all others to be granted a mining lease which gives the holder exclusive mining rights with respect to minerals on the property.

It is possible for an individual or entity to own an area of land (including for infrastructure purposes) and for another individual or entity to be granted the right to explore for or mine any minerals located on or under the surface of the same area. The maximum initial term of a mining lease in Western Australia is 21 years and the holder has the right to renew the lease for an additional 21 years. Subsequent renewals are granted at the discretion of the respective state or territory’s minister responsible for mining rights. In Western Australia, mining leases can only be assigned with the prior written consent of the minister.

Tax laws relating to mining

Government royalties are payable by the holder of mining tenure in respect of minerals obtained from the relevant area of land at the rates specified in the relevant legislation in each state or territory. The royalty on gold production in Western Australia is payable quarterly at a fixed rate of 2.5 percent of the royalty value of gold metal produced. The royalty value is calculated by multiplying the amount of gold produced during a given month by the average gold spot price for that month. In addition, the holder of a mining tenement is required to pay annual rent in respect of the tenement. In Western Australia there is a minimum annual expenditure requirement for prospecting and exploration licences and mining leases. Exemptions from the expenditure requirement can be obtained if certain conditions are satisfied.

Environmental laws relating to mining

Mining tenements will be granted with endorsements and conditions relating to protection of the environment. Exploration and mining operations may also require separate approval from the state, territory or federal environment minister, which may require completion of an environmental impact assessment (including a public consultation period) pursuant to applicable environmental protection legislation prior to commencement. Further, a works 'construction' approval and an operating licence under the relevant environmental protection legislation in the state or territory may also be required for certain mine processing or mining-related operations. Depending on the jurisdiction, additional approvals may be required for the removal of native vegetation within the tenement, and the taking and use of water for exploration and mining operations.

AngloGold Ashanti’s rights and permits

AngloGold Ashanti has been granted 21-year term mining leases with rights of renewal to all of its mining areas in Australia, including its proportionate share of joint venture operations and accordingly it has, together with its joint venture partners where applicable, the exclusive right to mine in those areas. Both the group and its joint venture partners are fully authorised to conduct operations in accordance with relevant laws and regulations. The mining leases and rights of renewal cover the current life-of-mine at AngloGold Ashanti’s operations in Australia.

At Sunrise Dam, one mining lease (M39/1116) covers the deposit and mine infrastructure (approximately 7,808 hectares) and another mining lease (M39/1117) covers the water extraction infrastructure used to supply the operation with water (approximately 1,768 hectares). Both leases are currently in good standing, with expiry dates in 2038.




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The Butcher Well joint venture has security of tenure for all current exploration licences and for the contiguous mining leases that covers its Mineral Resource. There are three mining leases: mining lease (M39/165) which covers 602.35 hectares with expiry date in 2030, mining lease (M39/166) which covers 990 hectares with expiry date in 2030 and mining lease (M39/230) which covers 446.4 hectares with expiry date in 2032.

At Tropicana, the deposit is situated upon a single mining lease (M39/1096) covering approximately 27,228 hectares, which is currently in good standing, with an expiry date in 2036.

AngloGold Ashanti Australia Limited is also conducting early stage exploration activities in Queensland under the Mineral Resources Act 1989 (QLD). AngloGold Ashanti holds 11 exploration permits covering 215,300 hectares. Each permit is granted with an initial term of five years, renewable for two further periods of not more than five years each.


AMERICAS

Argentina

General laws relating to mining and land ownership

Mining regime

The Argentinean Mining Code governs mining activity in the country. Special regimes exist for hydrocarbons and nuclear minerals. In the case of most minerals, the Argentinean Mining Code establishes that the owner of the land is not the owner of the mineral rights; these are held by the national or provincial governments (depending on the location of the minerals). The national or provincial government, as applicable, is required by the Argentinean Mining Code to grant whomever discovers a new mine title to the mining concession.

The Argentinean Mining Code regulates exploration permits as well as mining concessions, or exploitation rights. Exploration permits grant their holders exclusivity rights to any mineral discoveries, including those made by a third party within the exploration area covered by the permit. Exploration permits are limited in time and as to the extent of the exploration area, are subject to the payment of a single-time fee, and also require a minimum exploration work programme and schedule to keep the permit in force. Priority for receiving a mining concession is given to the registered discoverer of the mine, which holds the exploration permit. Once the application for a mine has been submitted, the applicant may commence works and must submit a legal survey of the units requested for the new mine. The application and the legal survey may be opposed by third parties following specific proceedings set forth in the Argentinean Mining Code. Approval and registration of the legal survey by the provincial mining authority constitutes formal title to the mining concession.

Holders of mining concessions must comply with three main conditions: payment of an annual fee, investment of a minimum amount of capital, and the carrying out of a reasonable level of exploitation. Failure to do so could lead to forfeiture of the mining concession, which would then revert back to the Province.

In addition to the Argentinean Mining Code, between 1993 and 1995, Argentina implemented several federal laws to offer foreign companies attractive incentives for exploration and mining in Argentina, the Mining Investment Law (Law No. 24, 196), as amended (the “Mining Investment Law”), and related legal provisions being the most important one. Such incentives include, among other matters, import duty exemptions, accelerated depreciation of fixed assets, a 3 percent cap on provincial royalties set at pit-head value on the mineral extracted, value added tax refunds for exploration-related expenses incurred by companies registered under the Mining Investment Law, and, subject to the filing of a feasibility study for the relevant mining project, a 30-year stability as to the tax burden on the project and the customs and foreign exchange regimes and duties. Cerro Vanguardia S.A. (“CVSA”) obtained its tax, customs and foreign exchange stability certificate in 1996.

Glacier Law

On 30 September 2010, the National Law on Minimum Requirements for the Protection of Glaciers (Law No. 26, 639) (the “Glacier Law”) was enacted in Argentina, banning new mining exploration and exploitation activities on glaciers and “peri-glacial” areas. The Glacier Law establishes a broad definition of “peri-glacial” areas that, together with glacial areas, must be surveyed by an existing national government agency specifically appointed to this end every five years. The area where the Cerro Vanguardia project is located does not include any glaciers or peri-glacial areas according to the inventory of glaciers which was published in June 2018.

Rural Land Law

On 27 December 2011, the Argentinean National Congress passed a law on the Regime for Protection of National Domain over Ownership, Possession or Tenure of Rural Land (Law No. 26, 737) (the “Rural Land Law”) which implemented a set of rules restricting the ownership of rural land by foreigners (including foreign individuals or any kind of legal entity controlled by foreign individuals or legal entities). The main restrictions are as follows: (i) foreigners cannot own in the aggregate more than



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15 percent of the entire rural land of Argentina, the same cap being applicable to each Province and Municipality; (ii) foreigners will not be allowed to purchase more than 1,000 hectares in the so-called “zona núcleo”, which comprises the main agricultural areas of central Argentina or an “equivalent” surface depending on the location of the land and its productive potential; and (iii) foreigners will not be allowed to buy land that contains, or is adjacent to, relevant and permanent water bodies (such as rivers and lakes). Although exploration permits and mining concessions are not the subject matter of the restrictions placed by the Rural Land Law, certain rights granted to foreign mining companies under the Argentinean Mining Code may be restricted by this new law. For example, the right that holders of mining concessions currently have to force the surface owner to sell the land to the holder of the mining concession might be restricted if the concession holder is a foreign individual or a legal entity controlled by foreigners.

Federal Mining Agreement

On 13 June 2017, the national government and the provinces in whose territories the main mining projects of Argentina are located, signed the New Federal Mining Agreement (“FMA”). The purpose of the FMA is, amongst other things, to increase provincial revenues from the mining industry by creating legal entities owned by provincial governments that would work in association with private mining companies. This scheme is not new in Argentina and it has been used by some provincial governments, amongst them the Santa Cruz Province (through Fomicruz), in which the Cerro Vanguardia project is located. The FMA also contemplates other forms of revenues such as the formation of special trusts to be funded by mining companies to finance education, health and other programmes. Additionally, the FMA included setting forth mining royalties up to three percent of the gross value of commercialised minerals, without any deductions other than VAT. As the FMA has not yet been converted into law by the National Congress, its provisions are neither binding nor enforceable.

In Argentina, the current regulatory regime of royalty payments is expected to change and several different options and payment thresholds have been discussed. In December 2012, the Santa Cruz Province changed the mining royalty from one percent to three percent calculated at pit-head value of the mineral extracted thus bringing it to the cap of the Mining Investment Law.

Foreign exchange and export rules

Foreign exchange controls

On 1 September 2019, by means of Executive Decree No. 609/2019 (the “Export Controls Decree”), the Argentinean national government reinstated foreign exchange and export controls. The Export Controls Decree and related regulations of the Central Bank of Argentina impose, among other measures, the obligation of Argentinean residents to transfer to Argentina and/or sell for Argentinean pesos in the Argentinean foreign exchange market (mercado de cambios) the countervalue (contravalor) from their exports of goods within a specified period. The export of goods is regulated by Communication “A” 6882 of the Argentinean Central Bank (as modified) which establishes the specific regulatory requirements to implement the measures adopted by the national government in this area. Prior approval of the Argentinean Central Bank is generally required to access the foreign exchange market for transactions relating to the outflow of funds, except in certain circumstances. Until 30 June 2022, prior approval from the Argentinean Central Bank is not required for payments in connection with the import of goods if certain conditions are satisfied.

CVSA had a cash balance equivalent to $139 million at 31 December 2021. During 2021, AngloGold Ashanti received offshore dividends in a total amount of $19 million (net of withholding taxes) paid in US dollars. Out of the $139 million (equivalent) cash balance, monies equivalent to $131 million are available to be paid to AngloGold Ashanti’s offshore and commitmentsonshore investment holding companies in the form of declared dividends. Applications have been made to local communities.the Argentinean Central Bank to approve the purchase of US dollars in order to distribute an offshore dividend of $114 million to AngloGold Ashanti. While the approval is pending, the cash remains fully available for CVSA’s operational requirements.

Export duties

On 21 December 2019, the National Law on Social Solidarity and Productive Reactivation (Law No. 27, 541) (the “Solidarity Law”) was enacted. The occasional well-publicisedSolidarity Law granted the national government power until 31 December 2021 to impose export duties which may not exceed certain caps. For example, the Solidarity Law provides that export duties on mining exports cannot exceed 8 percent of the taxable value or official FOB price. On 2 October 2020, the national government published Decree No. 785/2020 (the “Export Duties Decree”) which sets an export duty rate of 8 percent for certain goods, including doré bars and gold alloys, and revoked the provisions of Decree No. 793/2018 which had previously set the export duty at 12 percent ad valorem. While the Export Duties Decree was set to expire at the end of 2021, on 31 December 2021, the national government published Decree No. 908/2021, extending the deadline of export duties on certain goods, including doré bars and gold alloys, until 31 December 2023. It is uncertain whether the national government is empowered to extend such deadline beyond the date set forth in the Solidarity Law. These export duties, if not compensated with other tax reductions, affect the tax stability guarantee granted to CVSA in 1996 in light of the fact that at the time export duties were zero percent.

On 26 February 2019, the Argentinean tax and mining authorities published a resolution (RC 4428/2019) establishing an administrative procedure to be followed to obtain the reimbursement or compensation of federal taxes paid in excess of the total tax burden provided for by the applicable tax stability guarantee. CVSA initiated this new procedure to claim compensation for



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the export duties it paid in 2018 and 2019 as export duties are not contemplated by its tax stability guarantee. Prior to the publication of RC 4428/2019, CVSA had already submitted to the tax authorities claims for reimbursement of the export duties it paid from 2008 to 2015.

Pursuant to the new administrative procedure, the National Mining Secretariat issued favorable opinions regarding CVSA’s claims in respect of fiscal years 2018 and 2019, which amounted to approximately $3.5 million and $10.8 million, respectively, as of 31 December 2021. These claims are currently under review by the relevant customs authorities. On 14 July 2021, CVSA submitted its claim in respect of fiscal year 2020, which amounted to approximately $21.4 million as of 31 December 2021. The National Mining Secretary has not yet issued an opinion regarding this claim. CVSA expects to submit its claim in respect of fiscal year 2021 in due course.

Furthermore, CVSA has requested the tax authorities to apply the procedure provided for in RC 4428/2019 in respect of its historical claims for fiscal years 2008 to 2015 during which the imposition of export duties also exceeded CVSA’s total tax burden under its tax stability guarantee. However, these claims, which amounted to approximately $5.3 million as of 31 December 2021, are still being reviewed under the rules to challenge export duties instead of the new procedure provided for in RC 4428/2019. CVSA has appealed the application of those rules and a decision on this issue is pending.

In total, AngloGold Ashanti’s net export duty receivables (after discounting provisions) in Argentina amounted to $19 million as of 31 December 2021.

Environmental laws relating to mining

Any mining company wishing to commence or modify any mining-related activity, as defined by the Argentinean Mining Code, including prospecting, exploration, exploitation, development, preparation, extraction, and storage of mineral substances, as well as property abandonment or mine closure activity, is required to prepare and submit to the competent provincial environmental authority an Environmental Impact Assessment (“EIA”) prior to commencing the work. Each EIA is required to describe the nature of the proposed work, its potential risk to the environment, and the measures that will be taken to mitigate that risk. If accepted by the competent authority, the EIA is used as the basis to create a Declaration of Environmental Impact (“DEI”) to which the mining company is required to adhere during the mining-related activity at issue. The DEI is required to be updated at least on a biannual basis. Sanctions and penalties for non-compliance with the DEI are outlined in the Environmental Protection section of the Argentinean Mining Code, and may include warnings, fines, suspension of quality certifications, restoration of the environment, temporary or permanent closure of activities, and withdrawal of authorisation to conduct mining-related activities.

AngloGold Ashanti’s rights and permits

The mining concession holder of Cerro Vanguardia, the company’s operation in Argentina, is AngloGold Ashanti’s partner, Fomento Minero de Santa Cruz S.E. (“Fomicruz”), which is wholly owned by the Santa Cruz Province. On 27 December 1996, Fomicruz entered into a usufruct agreement whereby CVSA was granted an irrevocable right to exploit the Cerro Vanguardia deposit (encompassing an area of approximately 543 km2) for a 40-year period. The mining licence (402642/CV/97), which covers the full Mineral Reserve, expires on 26 December 2036. CVSA is a corporation incorporated in Argentina indirectly controlled by AngloGold Ashanti (92.5 percent), with Fomicruz as minority shareholder (7.5 percent). On 14 August 1996, CVSA obtained its tax, customs and foreign exchange stability certificate, which expires in 2026.

Brazil

General laws relating to mining and land ownership

The Brazilian Constitution of 1934 states that, for purposes of exploration and exploitation, deposits and other Mineral Resources constitute property separate from the soil and belong to the Federal Union. Exploration and exploitation of such Mineral Resources may take place only with the Federal Union’s concession and in such a way as to protect the national interest. Federal law sets out penal and administrative sanctions for conduct and activities deemed harmful to the environment.

In Brazil, the National Mining Agency (“ANM”) is the state body within the Mines and Energy Ministry (“MME”) that is responsible for: (i) the registration of mining titles, (ii) the grant of authorisations and concessions, (iii) the supervision of mining activities and mining titleholders, and (iv) the issuance of supplementary rules in relation to mining activity.

Under the current Brazilian Mining Code, there are two kinds of mines: (i) claimstake mines (minas manifestadas), for which rights were acquired before 1934 and exist independently of any mining licence or authorisation from the Federal Government and for which the Mineral Resources constitute property of the landowner, and (ii) granted mines, which are those that rely on grants from the Federal Government for mineral exploration or exploitation (pursuant to the Brazilian Constitution of 1988). AngloGold Ashanti’s operations in Brazil consist of both claimstake mines and granted mines.

Mining activities in granted mines must be performed in two defined stages: (i) exploration, which entails defining and evaluating the deposit and determining the feasibility of exploitation, and (ii) exploitation, which involves coordinating operations aimed at the industrial exploitation of the mineral deposit, from the extraction of useful minerals to their processing. Exploration



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authorisations issued by ANM are valid for one to three years. Extensions can be obtained if necessary, as long as it is justified. In contrast, exploitation rights, once granted, are valid for the lifetime of the deposit, provided the mining titleholder complies with all legal requirements. Pursuant to these requirements, for example, titleholders must (i) start work on mineral exploitation within six months from the date of publication of the Exploitation Concession, (ii) continue their mining activities until the mineral deposit has been exhausted, in accordance with the Economic Exploitation Plan (Plano de Aproveitamento Econômico) approved by ANM, and (iii) refrain from suspending mining activities without prior notice to ANM.

Tax laws relating to mining

During the exploration period, the mining titleholder has to pay an Annual Rate per Hectare (Taxa Annual por Hectare or “TAH”), subject to a maximum value set by law. In the exploitation period, regardless of the legal regime governing the project (whether claimstake or granted mines), the mining titleholder has to pay the Financial Compensation for Exploiting Mineral Resources (Compensação Financeira pela Exploração Mineral or “CFEM”). The CFEM which is 1.5 percent for gold is currently calculated based on revenues.

At the end of 2011 and the beginning of 2012, the states of Minas Gerais, Pará, Amapá and Mato Grosso do Sul each created a new “inspection and control” tax (duty) on extraction and exploration activities as well as on the use of Mineral Resource carried out in those states. In the state of Minas Gerais, gold ore and silver ore are exempted from the collection of this new duty. At the end of 2020, the state of Goiás created a new “inspection and control” tax (duty) on extraction and exploration activities carried out in this state, which currently still needs to be implemented. The constitutionality of these “inspection and control” taxes has been challenged by the National Industry Confederation and the matter is currently pending before the Supreme Court of Brazil.

Environmental laws relating to mining

Following the catastrophic failure of a third-party tailings storage facility and the potential impact of such failure also mean that these facilities are generally tightly regulated. An incident at the company’s operations could result, among other things, in enforcement, obligations to remediate environmental contamination, negative press coverage, and claims for property or natural resources damages and personal injury by adjacent communities. Incidents at other mining companies’ operations could result in governmental action to tighten regulatory requirements and restrict certain mining activities, in particular with respect to TSFs, also in respect of other mine operators. For example, a TSF(“TSF”) at the Córrego do Feijão iron ore mine owned by Vale at Brumadinho in the state of Minas Gerais in Brazil burst on 25in January 2019. Following2019, executive, legislative and judiciary bodies, both at the dam failure, tailings reached the mine’s administrative area and part of the local community, reportedly resulting in death or injury to hundreds of people. As a result of this incident, environmental licensing processes in Brazil for mining companies are expected to be extremely difficult in the future, especially those involving TSFs. It is expected that there will be significant changes in federal and state legislationlevels, have generally increased scrutiny of mining operations in Brazil, and regulation,of TSFs in particular, and have been considering, and in some cases have adopted, stricter laws and regulations applicable to the approval, licensing, construction, management, closure and decommissioning of TSFs in Brazil.

At the federal level, the ANM issued Resolution No. 13/19 in August 2019 (replacing its earlier Resolution No. 4/19) which adopted additional regulatory measures to ensure the stability of TSFs, in particular those built or heightened by the upstream method or by any method declared as “unknown”. Among other things, ANM Resolution No. 13/19 prohibits the upstream method for the construction or heightening of tailings dams throughout the national territory of Brazil. It further requires operators to cease all storage and disposal activities at TSFs (known as “deactivation” or “desativação”) constructed or heightened upstream or by an “unknown” method by 15 September 2021 as well as much more intense scrutiny and controlto decommission such TSFs by 15 September 2022 to 15 September 2027 (depending on the capacity volume). To comply with the terms of as well as cost increases associated with inspecting, maintaining and constructing, TSFs. Certain types of TSFs may be prohibited, and may result in operational restrictions until alternate facilities can be constructed or existing facilities can be reinforced. In addition, it is believed that pressure from local communities will increase significantly and there will be an elevated risk to the social license to operate. For example, due to recently issued regulations by the Brazilian National Mining Agency,ANM Resolution No. 13/19, the Serra Grande minetailings dam in the state of Goiás is planning to reinforcemust be decommissioned by 15 September 2025. The Serra Grande mine completed the process of reinforcing the dam walls of its upstream TSF, deactivating the TSF and migrating to dry-stacking operations, each by the 15 September 2021 deadline.

Furthermore, Federal Law No. 14.066/20, adopted in advanceOctober 2020, also imposes requirements on companies to decommission upstream TSFs, including the Serra Grande tailings dam, by 25 February 2022 (which date is earlier than required by ANM Resolution No. 13/19). However, Federal Law No. 14.066/20 does permit extensions of expected futurethe compliance deadline, with the consent of the ANM based on the technical plan for decommissioning. PlanningSerra Grande has submitted timely requests to obtain an extension of the compliance deadline until 2025 in line with the timeline set forth in ANM Resolution No. 13/19 and presented its technical plan for decommissioning. Feedback from the ANM on these requests is still at an early stage, however,currently awaited. With respect to downstream (or “centerline”) TSFs, Federal Law No. 14.066/20 requires companies, to the extent that communities are located in the self-rescue zone of those TSFs, to implement one of the following measures for such structures: either (i) the structure must be deactivated and decommissioned, (ii) the applicable requirements are subject to change later in 2019; accordinglypopulation must be relocated, with reparations for loss of cultural heritage, or (iii) reinforcement works that guarantee the related costs for reinforcingeffective stability of the structure must be carried out, by decision of the public authorities, taking into account the previous nature of the dam wallsin relation to the occupation and technical-financial viability of the facilityalternatives. Even if reinforcement works are completed, deactivation and ultimately,decommissioning of those TSFs will be required at the end of the life of the mine. All of the TSFs operated by AngloGold Ashanti in Brazil have communities located in self-rescue zones.

AngloGold Ashanti is planning to transition to dry-stacking operations for tailings storage at each location in Brazil in the near term. Capital expenditures required in 2021 to implement this new technology amounted to approximately $140 million. Capital expenditures for this work during the period 2022-2025 are expected to be material but, based on preliminary estimates to date, AngloGold Ashanti anticipates that annual expenditures for each of these years will be significantly less than in 2021 and will decline over time. Neither ANM Resolution No. 13/19 nor Federal Law No. 14.066/20 requires removal of all tailings material in connection with the decommissioning of TSFs (a process known as “decharacterisation” or “descaracterização”).






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At the dam, cannot yet be predicted. Furthermore,state level, the suspension of environmental licensing permit processes for TSFsstate legislator in the state of Minas Gerais will potentially delay alladopted Law No. 23.291/19 in February 2019 which contained the approval processesstate’s policy on TSF safety and should be implemented in conjunction with respect to our operating permits,the equivalent federal policy. Among other things, Law No. 23.291/19 determines the criteria for licensing and may compromise our production plans after August 2019, in respectinspecting TSF structures, prohibits TSFs constructed or heightened using the upstream method, establishes bond requirements and holds management liable for non-compliance with its provisions. The government of our Minas Gerais operations. Furtheradopted several decrees in furtherance of this legislation.

On 16 February 2022, the ANM issued Resolution No. 95/22, which was rectified on 18 February 2022 and more substantialbecame effective on 22 February 2022. ANM Resolution No. 95/22 effectively consolidates prior federal resolutions on TSFs, including ANM Resolution No. 13/19 and establishes new criteria for the operational management of TSF structures, changes the criteria related to the risk classification of TSF structures and emergency levels and imposes deadlines for compliance with obligations, in addition to setting new criteria for suspension, embargo and interdiction of TSF activities.

Further amendments to the regulatory requirements in Brazil governing such TSFs and related dams may be adopted in 2022.

AngloGold Ashanti’s rights and permits

At AGA Mineraçao, Cuiabá has a single mining concession (No. 000.323/1973) covering a total area of 3,662 hectares. In February 2022, two additional mining concessions for Cuiabá (Nos. 830.937/1979 and 831.027/1980) were published, which cover an additional area of 816.2 hectares. Lamego has a single mining concession (No. 932.710/2017) covering a total area of 1,622 hectares. Córrego do Sítio is hosted by five geographically contiguous mining concessions (i.e., Nos. 930.556/2000, 930.181/2008, 830.129/1982, 833.472/2003 and 830.943/1979) covering a total area of 6,017 hectares.

At Serra Grande, the company has interests in or agreements over 25,719.94 hectares in the Crixás greenstone belt, representing approximately 87 percent of the relevant tenements that correspond to all current exploration and mining activities. These have been held since 1987. The mining concessions include mining concession No. 002.286/1935 covering an area of 4,206.88 hectares, mining concession No. 960.658/1987 covering an area of 1,946.89 hectares, mining concession No. 860.746/2005 covering an area of 88.28 hectares, mining concession No. 862.103/1994 covering an area of 125.41 hectares and mining concession No. 804.366/1975 covering an area of 196.05 hectares.

All of the company’s mining concessions in Brazil are anticipatedcurrently active, in 2019. See “Item 4B: Business Overview-The Regulatorygood legal and operational standing, and free of liabilities and/or major obligations. Brazilian mining concessions remain valid up to the depletion of the Mineral Reserve and Mineral Resource pursuant to the Economic Exploitation Plan approved by the ANM and in accordance with the required environmental permits, and as a result do not have an explicit expiry date.


Colombia

General laws relating to mining and land ownership

General regime

The Colombian Constitution declares that the sub-soil and the non-renewable natural resources located within the Colombian territory are the property of the Colombian State. The underlying principle of Colombian mining legislation for the granting of mining concession contracts over free areas is first in time, first in law. Mining activities are regulated by the Colombian Mining Code, Act 685, 2001.

The filing of an exploration and exploitation proposal triggers a right of preference to obtain rights over the targeted area, provided it is available. Such area cannot exceed 10,000 hectares. Upon receipt of a proposal, the relevant government agency determines whether another proposal or contract already governs the area. If there are no pre-existing claims, the government agency grants the applicant a “free area”.

With respect to land ownership, a mining concession in Colombia does not grant the rights over the surface required to develop a mining project. Therefore, in order to develop a mining project, it is required to acquire and secure access to the land (soil). This can be achieved in several ways, such as (i) purchase of the land, (ii) a transit easement, (iii) a mining easement, and (iv) the special acquisition process or expropriation.

Concession contract

As the sub-soil and the non-renewable natural resources located within the Colombian territory are property of the Colombian State, the Colombian Mining Authority (Agencia Nacional de Minería) grants the authorisation to explore and exploit minerals through a concession contract.

Such concessions allow concessionaires to conduct the studies, works and facilities necessary to establish the existence of minerals and to organise their exploitation. Upon being awarded a mining concession, a company must take out an insurance policy to cover the costs associated with potential environmental damage as well as breaches of its mining obligations. It may



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then proceed with exploration activities. Once the exploration phase is complete, the concessionaire files a new plan regarding proposed works and facilities. With the award of the mining concession or tenement contract, there are specified timelines for the completion of the various phases of a mining project, e.g. exploration, construction, exploitation. The company must comply with these timelines unless performance is suspended, for example, due to force majeure or extensions or modifications to the timelines. A grant of force majeure is for one year and must be renewed on an annual basis. If the company does not comply with the specified timelines for the completion of the various phases of a mining project, the mining authority may revoke the company's concession contracts or mining licences. As a general matter, any company that wishes to obtain a renewal of its concession contract must be up to date in all its legal and contractual obligations and must present a new plan of works and facilities to be implemented after the contract is renewed.

PINES programme

In 2013, the national government instituted the PINES programme designed to aid promoting certain projects that are deemed to have a national interest. This designation provides for greater oversight from the national government. All of our three advanced exploration projects (La Colosa, Quebradona and Gramalote) were considered of national strategic interest. Currently, Quebradona and Gramalote remain in the PINES programme, but La Colosa was temporarily removed as such (until the force majeure is over).

Tax laws relating to mining

From the moment the concession contract is registered with the Mining Register, the concessionaire has several financial obligations, including the payment of (i) a surface fee during the exploration, construction and assembly stage and (ii) royalties.

Once exploration is complete and the mining infrastructure in place, the concessionaire must begin paying royalties to the Colombian government, consisting of a percentage of the primary product and sub-products being exploited. The percentage of the royalty depends on the regulation in force when the concession contract is registered. In the case of the Quebradona project, the deposit mainly consists of copper followed by gold and silver. There is a 5 percent royalty for copper on the production value at the mine’s or well’s edge (i.e. when extracted from the subsoil). In case of gold and silver, a royalty of 4 percent on the production valued at the mine’s or well’s edge (i.e. when extracted from the subsoil) was established.

Furthermore, Colombian law establishes that once the environmental licence is granted the concessionaire must invest 1 percent of the project’s value to benefit the basins covered by the environmental licence.

Environmental laws relating to mining

In order to obtain an authorisation to carry out a mining project, a company must prepare an Environmental Impact Study (“EIA”) for approval by the National Environmental Licensing Authority of Colombia (Autoridad Nacional de Licencias Ambientales or “ANLA”). Global environmental licences are granted for the entire life of the project and cover all phases: construction, assembly, operation, maintenance, dismantling, final restoration, abandonment and/or termination. Construction and assembly permits (Plan de Trabajos y Obras or “PTO”) are granted by the mining authority with jurisdiction over the project.

In Colombia, the mining authority has the discretion to declare the underlying concession void if the specific company which holds the concession breaches applicable environmental laws or regulations. If the mining authority were to exercise such discretion, a company whose concession was voided would be required to abandon its projects and all of its other existing mining concession contracts. Pending proposals for new mining concession contracts would also be cancelled and the company would be banned from doing business with the Colombian government for a period of five years. As a result, the company would be unable to conduct any mining exploration or development activities during such period. However, this would not affect other subsidiaries of the company operating in Colombia, if those concession contracts are held singularly or in concert with joint venture partners.

Mining activity is prohibited in national parks, regional parks, protected forest reserves, paramos (included in Act 1753, introduced in 2015) and wetlands, pursuant to the Ramsar Convention on Wetlands of International Importance.Some forest reserves are not “protected” but are set aside for active forestry purposes and the concessionaire must obtain a specific permit to partially and temporarily change the use of the soil before pursuing exploration activities. In addition, Resolution 187/2016, passed by the national government in late 2016, identifies areas that the Ministry of the Environment Enablinghas determined to be “paramos” areas, or paramos transition areas. In these areas there are limitations on industrial or commercial work being performed, including mining. The regulation also specifies a process to determine what work, if any, can be performed in a paramos-designated area.

AngloGold Ashanti’s rights and permits

The La Colosa project managed by AngloGold Ashanti Colombia S.A.S. (“AGA Colombia”) remains in force majeure due to Mine”.delays in granting environmental permits by national and local environmental authorities, thereby preventing AGA Colombia from undertaking further exploration activities. The current one-year grant of force majeure, during which time the specified timelines for completing the various phases of the mining project under the concession contract are suspended, will expire on




Groundwater Impacts
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22 June 2022. AGA Colombia applied for a mining area integration (consolidation) of its concession contracts related to La Colosa, in respect of which AGA Colombia was not in compliance with some of the specified timelines. The application for mining area integration (consolidation) was approved in March 2017, which remedied the non-compliance of each consolidated concession and Environmental Remediationreset the specified timelines. La Colosa now has a single integrated mining concession contract (EIG-163) which covers a total area of 9,210 hectares and expires on 28 February 2037.


Minera de Cobre Quebradona S.A.S. B.I.C. (“MCQ”) which manages the Quebradona project, obtained the integration of concession agreement 5881 in October 2016 and registered in December 2016. As a result, MCQ was granted the exclusive right to explore, take ownership and dispose of the mineral reserves (ore) extracted from the concession area. MCQ has the right to request an extension of up to 30 years, at least two years before the expiration of the operating period. This extension is not automatic, and the request must be filed with new technical, economic, environmental and social studies that demonstrate the status of the mineral resources. Concession contract 5881 initially covered a total area of 7,593 hectares, which was reduced to 4,881.89 hectares by the relevant mining authority (Secretaría de Minas de Antioquia) on 4 March 2022. It will expire in May 2037 and is currently in its sixth year of the integrated exploration phase. In September 2021, the permits for the construction and mining operation were approved by the relevant mining authority (Secretaría de Minas de Antioquia). On 4 November 2021, ANLA officially notified AngloGold Ashanti of its decision to ‘archive’ the environmental licence application relating to the Quebradona project. ANLA has identified groundwater contamination plumes atneither denied nor granted the licence, but deemed that the information provided by AngloGold Ashanti is not enough for this authority to take a substantive decision. On 18 November 2021, AngloGold Ashanti appealed the archiving decision in order to secure further details on the specific additional information ANLA requires to make a determination.

The Gramalote project is organised as a joint operation between AngloGold Ashanti (through AGA Colombia Holdings Limited and AngloGold Ashanti Holdings plc) and B2Gold (through B2Gold Corp. and Graminvest Ventures Limited). Gramalote Limited, a company incorporated under the laws of British Virgin Islands which is the legal vehicle operating the joint operation, established a Colombian branch, Gramalote Colombia Limited (“GCL”), to carry out activities in Colombia and obtain the mining concession contracts necessary to develop the Gramalote project. The Gramalote joint operation has been operated by B2Gold since January 2020. Pursuant to an integrated mining concession contract No. 14292, GCL was granted the exclusive right to explore, take ownership and dispose of the mineral reserves (ore) extracted from the concession area (which covers a total area of 8,720.71 hectares and includes the Gramalote and Monjas anomalies) until April 2043. GCL has the right to request an extension of the operating period for up to 20 years, and, if exercised, such request to extend must include new technical, economic, environmental and social studies that demonstrate the status of the mineral resources. Currently, concession contract No. 14292 is in the phase of construction and assembly, pending resettlement of communities and the formal start of construction activities. GCL has received an environmental licence granted by ANLA and permits for the construction and mining operation which were approved by the relevant mining authority (Secretaría de Minas de Antioquia). GCL also holds an exploration concession No. 4894 (which covers a total area of 2,279.32 hectares and includes the Trinidad anomaly) which expires in 2044.

United States of America

Nevada

Mineral and surface rights in the United States are owned by private parties, state governments or the federal government. The majority of land utilised for precious metals exploration, development and mining in the western United States is owned by the federal government. The right to mine on such federal land in western states is governed by the U.S. General Mining Law of 1872, as amended (the “General Mining Law”). The General Mining Law allows mining claims (for mining and mining-related activities) on certain federal lands after proper compliance with claim location and maintenance requirements.

Mineral exploration activities in Nevada are also generally subject to applicable federal, state, and local permitting requirements, but the specific regulatory authorisations required for the company’s activities are based on the nature and location of the exploratory work. Many of the company’s Nevada operations are currently conducted under what is generally referred to under federal law as a notice-level operation subject to 43 CFR § 3809.21, while projects that are more advanced require additional permitting, including a Plan of Operations approved by the federal Bureau of Land Management (“BLM”). The State of Nevada Division of Environmental Protection’s Bureau of Mining Regulation and Reclamation (“BMRR”) also regulates mining within the state of Nevada. However, exploration projects of 5 acres or less, the scope of a notice-level operation under federal law, are exempt from BMRR regulation. Certain of the company’s early-stage exploration activities fall within this exemption.

In Nevada, the company’s wholly-owned subsidiaries hold a significant number of unpatented mining claims on federal lands. This includes approximately 1,600 unpatented claims (covering approximately 32,000 acres) that are now controlled by the company as a result of its acquisition of all of the outstanding stock of Corvus Gold Inc., which closed on 18 January 2022. The company is currently engaged in exploration activities on certain of its operations. Numerous scientific, technicalunpatented claims that include, but are not limited to, geological and legal studies have been undertaken to assist in determining the magnitudespectral mapping, surface geochemical sampling, geophysical surveying and RC and/or diamond drilling. The main projects of the impactcompany in Nevada include the Silicon Project, the North Bullfrog Project and the Mother Lode Project.

In 2021, the state of Nevada enacted a new tax on Nevada gold and silver mines (in addition to find sustainable remediation solutions.the existing Nevada net proceeds of minerals tax, which is a 5 percent net tax). The new mining tax is a 0.75 to 1.1 percent excise tax based on a mine’s annual gross revenue.



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Minnesota

In Minnesota, AngloGold Ashanti Minnesota Inc. completed early-stage reconnaissance exploration activities to determine the potential for gold mineralisation in the northern counties of Minnesota. Based on those studies as well as discussion with regulators,the achieved results, the company terminated its exploration activities in the state. In early 2021, the company completed closing out its activities in Minnesota in accordance with state and company requirements.

Potential regulatory changes

Over the years, the U.S. Congress has taken steps, including monitored natural attenuation and phyto-technologies, to address soil and groundwater contamination. Subjectconsidered a number of proposed amendments to the completionGeneral Mining Law and other federal statutes relating to mining. Among the significant features contained in previously proposed legislation were a production royalty obligation, new and more stringent environmental standards and conditions, additional reclamation requirements, extensive new procedural steps which would likely result in extended permitting timelines and granting counties and other entities the ability to petition the U.S. Secretary of trialsthe Interior to make certain areas unavailable for the location of unpatented mining claims. In June 2020, former President Trump signed an executive order directing certain federal agencies to streamline the review processes associated with permitting of infrastructure and natural resources projects. Many of those policies have subsequently been rescinded by the Biden administration. While certain other executive orders may favorably affect the timing of our permit and project approvals, the impact is yet to be determined and remains uncertain.

AGA is currently unaware of any other new federal or state legislative or regulatory changes or rule-making that has been proposed or enacted that would adversely affect its current exploration programmes. If any requirements, standards or conditions were adopted in the future that imposed additional or new obligations or costs on AGA in connection with our exploration or extraction activities in the United States, the company’s operations in Nevada could be adversely affected.


MINE SITE REHABILITATION AND CLOSURE

Closure, an integral part of operations

All mining operations eventually cease. An integral aspect of operating AngloGold Ashanti’s mines is ongoing planning for and, where feasible, implementation of concurrent rehabilitation, together with an estimate of associated liability costs and the technology being a proven remediation technique, no reliable estimate can be made at this time for the obligation. Shouldplacement of adequate financial provisions and assurances to cover these obligations be significant, this could have a material adverse impact upon AngloGold Ashanti’s results and its financial condition.costs.


As AngloGold Ashanti or its predecessors have a long historyAll of mining operations in certain regions, issues may arise regarding historical environmental impacts on those areas, for which AGA, as the current owner/operator, may be legally responsible.

In addition, AngloGold Ashanti identified a flooding and future pollution risk to deep groundwater in the Far West Rand goldfields in South Africa. AngloGold Ashanti’s operations are part of the Far West Rand goldfields. The prematurerequired to comply with its group closure of neighbouring mines owned by other mining companies in the area led to increased pumping obligations on AngloGold Ashanti to address water infiltration into AGA’s mines, including additional legal requirements associated with construction, litigation and permits, which increased costs for the group.

In the West Wits district, after Blyvooruitzicht Gold Mining Company was placed in provisional liquidation in August 2013, AngloGold Ashanti secured a court order for unfettered access rights to Blyvooruitzicht 4 and 6 shafts to continue the pumping of underground water. AngloGold Ashanti then purchased from Blyvooruitzicht the rights of access to the 4 and 6 shaftsplanning standard, as well as applicable law and regulations, as their closure plans are reviewed and updated.
Closure planning is an activity that starts at the relevantexploration and mine design stage and continues throughout the life of mine:
•New projects include a conceptual closure plan which anticipates future closure and associated rehabilitation activities and related costs.
•The closure plan is reviewed annually and updated every three years (annually in the final three years of a mine’s life) or whenever significant changes are made, taking into account operational conditions, planning and regulatory requirements, advances in international good practice (e.g., ICMM Mine Closure: Good Practice Guide) and technological developments.

For many of the older mines, closure planning and the evaluation of environmental liabilities is a complex process. This is particularly so in Brazil and Ghana, where many of the mining and other operations have taken place for more than fifty years. A particular challenge is concurrent rehabilitation, which is carried out while a mine is still operational. This practice serves to decrease the ultimate liability and reduces the final rehabilitation and closure work that must be undertaken, but has the potential to sterilise Mineral Reserve, which the company might wish to exploit should conditions, such as the gold price, change.

The company’s group closure standard stipulates that closure planning must be undertaken in consultation with the stakeholders. In the course of these consultations, different issues are raised which require site-specific solutions. Livelihood preservation and infrastructure are often key requirements. Communities also require information on the company’s rehabilitation of the landscape and on any lasting environmental impacts. Long-term remediation obligations, including decommissioning and restoration liabilities relating to continue pumping underground waterpast operations, are based on environmental management plans and transferredcompliance with current environmental and regulatory requirements.

Provisions for decommissioning and rehabilitation costs are made when there is a present obligation, it is probable that expenditure on decommissioning and rehabilitation work will be required and the assetscost can be estimated within a reasonable range of possible outcomes. These costs are based on currently available facts, technology expected to be available at the time of the rehabilitation, laws and rightsregulations presently or virtually certain to be enacted and previous experience in the rehabilitation of mine sites.

Decommissioning costs and restoration costs are provided at the present value of the expenditures expected to settle the obligation, using estimated cash flows based on current prices. Estimates are discounted at a pre-tax rate that reflects current market assessments of the time value of money.




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Provisions for decommissioning and for restoration (excluding joint ventures and discontinued operations) increased from $674 million in 2020 to $688 million in 2021. This increase mainly relates to changes in discount rates based on global economic assumptions. The provisions were also impacted by changes in mine plans, resulting in a change in cash flows.


SUSTAINABILITY AND ENVIRONMENTAL, SOCIAL AND GOVERNANCE (“ESG”) MATTERS

AngloGold Ashanti’s sustainability approach is fundamental to how the company operates its newly incorporated subsidiary Covalent Water Company. business, as well as its ability to create long-term value for its shareholders, employees and social partners through safely and responsibly exploring, mining and marketing its products. Sustainability and safety are integrated into the company’s business and operations at all levels through various frameworks, standards and policies, and the company measures its performance in achieving its goals against its sustainability and other ESG metrics, as well as its engagement with stakeholders.

In November 2014mitigating the Departmentrisks and impacts that are an inherent part of Water and Sanitation issued a directive directingits business, AngloGold Ashanti through Covalent to dewater 4is informed by an annual assessment of its key ESG issues. This process is aligned with guidance published by the International Integrated Reporting Council (“IIRC”), the Sustainability Accounting Standards Board (“SASB”), the Global Reporting Initiative (“GRI”) Standards and 6 shafts and discharge the water. AGA continues to comply with the directive.

Climate Change and Greenhouse Gas Regulation

Greenhouse gases (GHGs) are emitted directlyAccountability AA1000 Stakeholder Management Standard. This assessment is annually reviewed by AngloGold Ashanti’s operations, as well assenior leadership and approved by external utilitiesthe Social, Ethics and Sustainability Committee (the “SES Committee”).

AngloGold Ashanti’s board of directors, assisted by the SES Committee, has ultimate responsibility over environmental, safety, health and ethical matters and for the integration of sustainability objectives into AngloGold Ashanti’s business. This includes oversight of the company’s stakeholder engagement framework and structures, which apply to investors, employees, governments, suppliers and communities, at every stage of its business from which exploration to mine closure. Group Corporate Affairs and Sustainability is responsible for development of management systems and supports the company’s general managers in the day-to-day implementation of its sustainability strategy.

AngloGold Ashanti purchases electricity. A numbermaintains a set of internationalpolicies and national measuresprocedures to address or limit GHG emissionsguide the company in acting as a responsible corporate citizen, including the Code of Business Principles and Ethics which sets requirements for the implementation of key corporate policies and guidelines and applies to all management and employees, and to maintain compliance with applicable environmental, health and safety (“EHS”) laws. In 2021, AngloGold Ashanti continued with the implementation of the Integrated Sustainability Information Management System (“iSIMS”), in order to improve internal reporting and better integrate and monitor sustainability activities with respect to its broader business. This common reporting system for all sustainability disciplines, from safety, health and security to community and environmental management, is expected to help provide timely information in each of these areas, and to facilitate transparency and decision-making in its processes and practices.

Significant EHS requirements and ESG risks and trends affecting the company’s mining and processing operations are in various phases of discussion or implementationdescribed below.

EHS Regulatory Compliance

AngloGold Ashanti is subject to extensive EHS laws and regulations in the countriesvarious jurisdictions in which the company operates. These requirements govern, among other things, extraction, use, conservation and discharge of water; air emissions (including dust control and greenhouse gases (“GHGs”)); regulatory and community reporting; clean-up of contamination; land use and conservation of protected areas; rehabilitation and closure of mined land; worker health and safety and community health; and the generation, transportation, storage and disposal of solid and hazardous wastes, such as reagents, radioactive materials, and mine tailings. Environmental laws and regulations applicable to the company’s operations, including the requirements contained in environmental permits, are generally becoming more restrictive.


AsCapital and operating costs to comply with EHS laws and regulations have been, and are expected to continue to be, significant to AngloGold Ashanti. In addition, AngloGold Ashanti could incur fines, penalties and other sanctions, environmental clean-up costs, and third-party claims for personal injury or property or natural resources damages; suffer reputational damage; and be required to install costly pollution control equipment or to modify or suspend operations, as a result of commitments made at the UN Climate Change Conference in Durban, South Africa in December 2011, certain membersactual or alleged violations of, the international community negotiated a treaty at the Conference of the Parties of the UN Framework Convention on Climate Change in Paris in December 2015 (Paris Agreement). The Paris Agreement, which requires developed countries to set targets for emissions reductions, came into force on 4 November 2016.

Additional measures addressing GHG emissions may be implemented at national or international levels in various countries. For example, in South Africa, on 19 February 2019, South Africa’s National Assembly adopted the draft Carbon Tax Bill (2017 Carbon Tax Bill). The imposition of a tax on carbon dioxide equivalent of GHG emissions will take effect on 1 June 2019. The tax will be implemented in a phased manner, taking into account South Africa’s Nationally Determined Contributions (NDCs) commitment to reduce greenhouse gas emissions. The first phase will come into effect from 1 June 2019 to 31 December 2022liabilities under, EHS laws and the second phase from 2023 to 2030. This ensures alignment with the country’s NDC commitments under the Paris Agreement.

In addition, South Africa ratified the Paris Agreement in November 2016 and endorsed its nationally-determined contribution, which requires that GHG emissions in South Africa peak in 2020 to 2025, plateau from 2025 to 2035 and decline from 2036 onwards. In addition, on 8 June 2018, Dr. Edna Molewa, the late Minister of Environmental Affairs, published the draft National Climate Change Bill (2018 Climate Change Bill) for a period of public comment that closed on 8 August 2018. The purpose of the 2018 Climate Change Bill is to build an effective climate change response and ensure the long-term, just transition to a climate resilient and lower carbon economy and society. This will be done within the context of sustainable development for South Africa and will provide for all matters related to climate change. BUSA and the Industry Task Team on Climate Change (ITTCC), of which AngloGold Ashanti is a member, submitted comments on behalf of its members, highlighting concerns regarding the lack of regulatory clarity and certainty and regulatory misalignment with International Processes and Agreements. On 27 August 2018, the South African Department of Environmental Affairs (DEA) facilitated a multi-stakeholder engagement with the business community regarding the comments received on the 2018 Climate Change Bill and acknowledged the need for further consultations. Further discussion is anticipated over the course of 2019.

These, or future, measures could require AngloGold Ashanti to reduce its direct GHG emissions or energy use or to incur significant costs for GHG emissions permits or taxes, including for those costs or taxes passed on by electricity utilities which supply the company’s operations. AngloGold Ashanti could also incur significant costs associated with capital equipment, GHG monitoring and reporting and other obligationsregulations. Failure to comply with applicable requirements. The most likely sourceEHS laws and regulations may also result in the suspension or revocation of these obligations is through state-level implementation of new emissions or financial obligations pursuant to evolving climate change regulatory regimes.

During June 2016, the South African National Treasury published for public comment proposed regulations on carbon offsets which can be used to reduce the potential carbon tax liability. The regulations allow an “offset” in respect of any “certified emission reduction” derived from an “approved project” (including an existing project) carried on after 1 January 2017 in South Africa that is not subject

to the carbon tax. The rate is expected to be ZAR120/ton of carbon dioxide, increasing by cpi plus two percent up to 2022permits and, in line with inflation thereafter. A system of rebates is expectedsome jurisdictions, the right to have the effect that the actual rate willmine a given concession. AngloGold Ashanti’s ability to obtain and maintain permits and other approvals and to successfully operate near host communities may be between ZAR6/ton and ZAR48/ton. The direct impact of such a taxadversely impacted by real or perceived effects on the Group is not estimated to be material.

In 2010, Brazil launched the National Climate Change Policy, which established a voluntary reduction target of 1.2 billion tonnes of CO2 below the projected emissions in 2020. The policy required the development of sector-specific plans in order to meet the target. Amongst other plans, it is intended to reduce deforestation in the Cerrado biome, where AngloGold Ashanti operates, by 40 percent compared to the average deforestation in 1999-2008 and expand renewable energy production and energy efficiency programmes. The policy also provided for a Brazilian GHG trading scheme, which is yet to be designed. While Brazil is not yet requiring mandatory GHG emissions reporting at the national level, some state environmental agencies have requested companies to voluntarily submit GHG emissions management plans, however Goiás and Minas Gerais State (in which AngloGold Ashanti operates) do not currently require GHG emissions management plans for mining projects.

In Australia, the government introduced the carbon emissions Safeguard Mechanism on 1 July 2016, aimed at limiting future growth in Greenhouse Gas (GHG) emissions in the mining industry and to meet national limits. After setting baseline emission thresholds, the Safeguard Mechanism requires companies to submit carbon creditsenvironment or pay penalties for excess emissions above baselines. Sunrise Dam and Tropicana successfully applied for baseline emission levels in accordance with the regulatory scheme’s default mechanism and continue to report their annual emissions (FY) through the existing National Greenhouse and Energy Reporting (NGER) scheme. During the 2016/17 FY and 2017/18 FY both operations reported emissions below their respective baselines. Any further operational changes at mine site level, which result in an increase in overall GHG emissions (e.g. additional ball mill in the processing circuit, change in mining methodology, mining of satellite pits), are likely to place the respective operations in an excess GHG position in relation to its baseline. Whilst the baseline emissions set for Sunrise Dam and Tropicana aim to mitigate the need for additional penalties or taxes to be levied, AngloGold Ashanti could in the future incur significant costs associated with capital equipment, GHG monitoring and reporting and other obligations to comply with changing legal requirements.

In addition, AngloGold Ashanti’s operations could be exposed to a number of physical risks from climate change, such as changes in rainfall rates or patterns, rising sea levels, reduced water availability, higher temperatures and extreme weather events. Such events or conditions, including flooding or inadequate water supplies, could disrupt mining and transport operations, mineral processing and rehabilitation efforts, create resource or energy shortages or damage the company’s property or equipment and increasehuman health and safety risks on site. Such events or conditions could have other adverse effects on the company’s workforce and on the communities around its mines, such as an increased risk of food insecurity, water scarcity and prevalence of disease, all of which could have a material adverse effect on the company’s results of operations and financial condition.

Occupational and Community Safety and Health and Tropical Diseases

Safety is a significant sustainable development challenge facing AngloGold Ashanti.associated with AngloGold Ashanti’s operations are subject to a variety of laws and regulations designed to protect and improve the safety and health of employees.or other mining companies’ activities. In some of the jurisdictions in which AngloGold Ashanti operates, the government enforces compulsory shutdowns of operations to enable investigations into the cause of accidents at those operations.  Certain of the company’s operations have been temporarily suspended for safety reasons in the past. In South Africa, so-called “Section 54 safety stoppages” have become a significant issue as an enforcement mechanism used by the Department of Mineral Resources Mining Inspectorate whose inspectors routinely issue such notices. For example, in 2018, 31 notices were issued that had a material adverse impact on productionaddition, unknown environmental hazards may exist at the company’s mines. Section 54 safety stoppages resulted in the estimated direct loss of 47,100, 78,887, 73,208, 11,324 and 4,680 ounces of gold production from the South African region operations during 2014, 2015, 2016, 2017 and 2018, respectively.

AngloGold Ashanti is also enhancing safety programmes, and a revised Group Safety strategyproperties which may have been introduced. Three-year work plans were developed for each strategic focus area, comprising objectives, activities, performance metrics, targets and accountabilities. The updated strategy was approvedcaused by the company executive and implementation workshops were held with South Africa and International Operations leadership teams. In South Africa in particular the work culminated in a revised “Safe Production Strategy” which forms the basis in improving our capability to respond to risk, our focus remained on embedding and integrating safety into the business.previous owners or operators.


In addition, AngloGold Ashanti is subject to health and safety regulations relating to occupational disease. The primary areas of focus in respect of occupational health of employees within the company’s operations are noise-induced hearing loss (NIHL) and occupational lung diseases (OLD). OLD includes occupational tuberculosis and silicosis in individuals exposed to silica dust. Silicosis has been particularly prevalent in South Africa and has also arisen at the company’s Continental Africa and Brazilian operations, albeit to a far lesser extent. AngloGold Ashanti provides occupational health services to its employees at its occupational health centres and clinics, and continues to improve preventative occupational hygiene initiatives, such as implementing various control measures to prevent hazardous exposures, and providing employees with Personal Protective Equipment. It is believed that the costs associated with activities to prevent disease would be substantially lower than those associated with managing the consequences of occupational disease. Actual and alleged health and safety incidents or breaches of standards may also adversely impact the company’s reputation.

The South African government, by way of a cabinet resolution in 1999, proposed a possible combination and alignment of benefits of the Occupational Diseases in Mines and Works Act (ODMWA) that provides for compensation to miners who have OLD, and the Compensation for Occupational Injuries and Diseases Act (COIDA), that provides for compensation in respect of job related injuries

and compensation of non-miners who have OLD. Work on amending ODMWA is underway, although it remains unclear as to what progress will be made in the short- to medium term. COIDA provides for compensation payments to workers suffering permanent disabilities which are classified as pension liabilities if the permanent disability is above a certain threshold, or a lump sum compensation payment if the permanent disability is below a certain threshold. ODMWA provides for a lump sum compensation payment to workers suffering from OLD as well as the payment of medical expenses over the claimant’s lifetime. If the proposed amendments to ODMWA were to occur, this could further increase the amount of statutory compensation that miners employed by AngloGold Ashanti could claim, which consequently could have an adverse effect on AngloGold Ashanti’s financial condition.

Please refer to “Item 8A: Consolidated Financial Statements and Other Financial Information-Legal Proceedings-South Africa-Silicosis litigation”.

In addition to OLD, AIDS and associated diseases remain major health care challenges faced by AngloGold Ashanti’s South African operations. AngloGold Ashanti continues to implement programmes to help those infected with HIV and prevent new infections from spreading. Since 2001, the company has offered a voluntary counselling and HIV testing programme for employees in South Africa and, since 2003, has offered anti-retroviral therapy to HIV positive employees who meet the current medical criteria and who desire this treatment. Over the past 10 years, the incidence of new infections has declined.

Malaria and other tropical diseases also pose health risks at all of the company’s operations in Central, West and East Africa where such diseases may assume epidemic proportions because of ineffective national control programmes. Malaria is a major cause of death in young children and pregnant women but also gives rise to deaths and absenteeism in adult men. All affected company operations have malaria control programmes in place.

Other conditions such as heart disease, chronic diseases and obesity are of increasing incidence and concern. Such diseases impair the health of workers and negatively affect productivity and profitability as a result of workers’ diminished focus or skill, absenteeism, treatment costs and allocated resources.

AngloGold Ashanti cannot guarantee that any current or future medical programme will be successful in preventing or reducing the injury and illness rates amongst its employees or in affecting consequent morbidity or mortality rates. AngloGold Ashanti may incur significant costs in addressing this issue in the future, which could also adversely impact the company’s results of operations and financial condition.

ANGLOGOLD ASHANTI GLOBAL OPERATIONS: 2018
operationsa02.jpg

Operations and projects
AMERICASCONTINENTAL AFRICASOUTH AFRICA
1
Argentina4
Guinea9
South Africa
 Cerro Vanguardia (92.5%) Siguiri (85%) Vaal River
2
Brazil5
Mali 
Kopanang (4)
 Serra Grande 
Morila (40%)(1)
 
Moab Khotsong (4)
 AGA Mineração Sadiola (41%) West Wits
3
Colombia6
Ghana Mponeng
 Gramalote (51%) Iduapriem 
Surface Operations(2)
 La Colosa 
Obuasi(3)
  
 Quebradona (94.9%)7
DRC  
   
Kibali (45%)(1)
  
AUSTRALASIA8
Tanzania  
10
Australia Geita  
 Sunrise Dam    
 Tropicana (70%)    

Percentages indicate the ownership interest in AngloGold Ashanti, whether held directly or indirectly. All operations are 100%-owned unless otherwise indicated.
(1)Both Morila and Kibali are managed and operated by Barrick Gold (Holdings) Limited following its merger with Randgold Resources Limited.
(2)Surface Operations includes First Uranium SA, which owns Mine Waste Solutions (MWS). MWS is managed and operated as a separate cash-generating unit.
(3)Obuasi redevelopment began in early 2019.
(4) The Vaal river operations were sold effective 28 February 2018.




OPERATING PERFORMANCE

Group description

AngloGold Ashanti, an independent, international gold mining company with a globally diverse, high-quality portfolio of operations and projects, is headquartered in Johannesburg, South Africa. Measured by production, AngloGold Ashanti is the third largest gold mining company in the world.

Our portfolio of 14 operations in nine countries, includes long-life and relatively low cost operating assets with differing ore body types located in key gold-producing regions around the world. These operating assets were supported by three greenfields projects in a tenth country (Colombia) and a focused global exploration programme.

Our operations and projects are grouped into the following regions: Continental Africa, Americas, Australasia and South Africa.

In 2018, we continued to restructure our operations in the South Africa region. We successfully concluded the sales of Moab Khotsong and Kopanang on 28 February 2018. Following ratification by the Ghanaian parliament of fiscal and regulatory agreements reached with the Ghanaian government in 2018, we began the redevelopment of Obuasi in January 2019. We continued the closure operations of Yatela during 2018 and we announced the sale of Yatela on 14 February 2019.

AngloGold Ashanti’s operations and joint ventures employed, on average, 44,249 people (including contractors) in 2018 (2017: 51,480).

Performance
In 2018, AngloGold Ashanti produced attributable 3.4 million ounces (Moz) of gold (2017: 3.8Moz) as well as 34,000 pounds of uranium oxide, 6.2Moz of silver and 184 tonnes of sulphuric acid as by-products.

Production of 3.4 Moz of gold was achieved at a cost of sales of $3.2 billion and an all-in sustaining cost of $ 1,000/oz for subsidiaries and $820/oz for equity accounted joint venture operations compared to a production of 3.8Moz in 2017 at a cost of sales of $3.6 billion and all-in sustaining cost of $1,050/oz for subsidiaries and $1,087/oz for equity accounted joint venture operations, respectively.

Gold
The AngloGold Ashanti Ore Reserve reduced from 49.6Moz in December 2017 to 44.1Moz in December 2018. This gross annual decrease of 5.5Moz includes depletion of 3.6Moz. The loss after depletions of 1.8Moz, results from the disposal of assets in the South African region of 6.1Moz, additions due to exploration and modelling changes of 4.3Moz, whilst other factors resulted in a 0.1Moz addition and changes in economic assumptions resulted in a 0.2Moz reduction.

Copper
The first AngloGold Ashanti Ore Reserve for copper of 1.26Mt (2,769Mlbs) is based on exploration success and the completion of the prefeasibility study (PFS) at Quebradona. The Ore Reserve has been estimated at a copper price of $2.65/lb.

Capital expenditure, including equity accounted joint ventures, in 2018 amounted to $721 million (2017: $953 million).

Safety
Regrettably, there were three fatalities across the group’s operations in 2018. The all injury frequency rate was 4.81 per million hours worked compared to 7.49 in 2017.

CONTINENTAL AFRICA
cara01.jpg
AngloGold Ashanti has seven mines in the region, six of which are currently in operation. Obuasi in Ghana was not operational in 2018, having been on care and maintenance since 2016. The mine’s redevelopment began in June 2018 with the first face blast taking place on 11 February 2019. Closure was underway at Yatela during 2018 and the sale of Yatela was announced subsequent to year end, on 14 February 2019.
 
Attributable gold production
(000oz)
 
Average number of  
employees  

Subsidiary operations   
2.    Ghana   
Iduapriem254
 1,733
Obuasi—
 1,321
3.    Guinea   
Siguiri 85%242
 3,869
5.    Tanzania   
Geita564
 4,567
 
Joint venture operations
1.    Democratic Republic of the Congo
   
Kibali 45%363
 2,497
4.    Mali   
Morila 40%30
 411
Sadiola 41%59
 435

Continental Africa - Key Statistics
 Unit 2018
 2017
 2016
Subsidiary operations       
Tonnes treated/milledMt 19.5
 20.3
 20.8
Pay limitoz/t 0.040
 0.038
 0.034
 g/t 1.372
 1.130
 1.151
Recovered gradeoz/t 0.049
 0.054
 0.046
 g/t 1.69
 1.84
 1.59
Gold production (attributable)000oz 1,060
 1,094
 955
Cost of sales$m 1,127
 1,071
 927
Total cash costs (1)
$/oz 813
 686
 682
All-in sustaining costs (1)(2)
$/oz 941
 909
 886
Capital expenditure$m 246
 290
 191
Safety       
Number of fatalities  0
 0
 0
AIFRPer million hours worked 0.51
 0.28
 0.31
People       
Average no of employees: Total  11,490
 10,268
 9,599
Permanent employees  4,625
 4,523
 4,441
Contractors  6,865
 5,745
 5,158

 Unit 2018
 2017
 2016
Joint venture operations       
Tonnes treated/milledMt 7.8
 7.7
 6.8
Pay limitoz/t 0.041
 0.045
 0.038
 g/t 1.403
 1.528
 1.294
Recovered gradeoz/t 0.053
 0.047
 0.052
 g/t 1.81
 1.10
 1.79
Gold production (attributable)000oz 452
 360
 356
Cost of sales$m 480
 441
 407
Total cash costs (1)
$/oz 680
 819
 812
All-in sustaining costs (1)(2)
$/oz 820
 1,087
 955
Capital expenditure$m 67
 119
 100
Safety       
Number of fatalities(3)
  0
 0
 0
AIFR (3)
Per million hours worked 0.29
 1.25
 1.56
People       
Average no of employees: Total  3,343
 3,325
 3,092
Permanent employees  1,072
 944
 890
Contractors  2,271
 2,381
 2,202

(1)
Total cash costs and all-in sustaining costs are non-GAAP measures. For further information on these non-GAAP measures, see “Item 5A: Operating Results-Non-GAAP analysis”.
(2)
Excludes stockpile impairments.
(3)
Excludes Morila and Kibali which are not managed by Anglogold Ashanti.





Production and costs

The region delivered a solid performance with four percent improvement in production boosted by higher tonnes treated particularly from underground mining at Kibali and Geita and improved underground grade from Geita. Geita built on its solid performance the previous year, delivering 564,000oz of gold, an increase of five percent compared to 2017. The increase was due to a range of operational improvements that included advance grade control and underground mining efficiencies, which assisted in accessing higher-grade ore particularly in the fourth quarter of 2018. This was driven by a five percent year-on-year increase in recovered grade as a result of the higher-grade underground ore mined at Nyankanga and Star & Comet.

At Siguiri, production was negatively impacted by a 16 percent decrease in recovered grade, owing to the treatment of lower-grade oxide material and an 11 percent decrease in tonnes due to delays in the commissioning of the CIL combination plant. The leach circuit was converted during the year to a hybrid CIL circuit as part of the combination plant project. As a result, production decreased year-on-year, exacerbated by depleted high-grade oxide deposits. The marginal delay in the commissioning of the ball mill in the plant resulted in the limited treatment of available higher-grade harder ore with the plant feed being supplemented by lower-grade oxide ore. The required new power plant was successfully commissioned.

Iduapriem’s production increased 11 percent year-on-year to 254,000oz, the mine’s highest production since its acquisition in 2004. The production increase was driven by the six percent increase in tonnage treated and a five percent improvement in recovered grades, a results of improved grinding and plant efficiency. These improvements resulted from the mining of deeper, higher-grade areas in the Teberebie pit. Total tonnes mined increased eight percent year-on-year to 38Mt, the highest tonnage ever mined at Iduapriem. This helped in meeting the grade improvement targets and the continuation of the extensive waste-stripping programme at Blocks 7 and 8, which will provide the foundation for sustainable production over the future life-of-mine.

At Kibali, production increased 35 percent year-on-year to 363,000oz, another significant improvement. The higher production was on the back of higher throughput, a result of improved plant availability that led to above design capacity throughput, and a five percent increase in plant recovery, building further on the improving recovery factor/rate since commissioning. Production was aided by an increase in tonnes mined and an eight percent increase in tonnage treated, a result of improved plant performance, as well as 26 percent increase in recovered grade as higher-grade underground mining displaced lower-grade open-pit ore. This was on the back of the successful commissioning of the underground materials handling system at the end of 2017.

At Sadiola, production declined due to a nine percent drop in the recovered grade owing to the limited availability of oxide ore with the in-situ oxide ore depleted as mining had ceased by the end of March 2018. The mine had begun transitioning to its stockpile treatment plan at the beginning of the year, partly compensated for by a three percent increase in tonnes treated as a result of newly-installed variable speed drives in the mill. Production for the rest of the year was from a blend of the remaining full grade and marginal ore stockpiles. Plant operations were efficient and consistently exceeded planned throughput, with a 3% increase in tonnes treated compared to the previous year. This helped to partly offset the lower feed grade and provided flexibility to maintain a steady production and revenue profile for the year.

At Morila, production continued to increase due to the 19 percent improvement in recovered grade as mining resumed during the year with the treatment of higher-grade ore, offset by a decrease in throughput due to the treatment of harder ore, blended with tailings mineralised waste ore. Plant throughput was 11 percent down year-on-year, impacted by unplanned downtime and the replacement of the ball mill. The mine is expected to continue treatment of mineralised waste ore, augmented by higher-grade ore from targeted mining areas, for the next two years, after which the mine will transition to full closure.

All-in sustaining costs (AISC) for the subsidiary operations in the region increased from $909/oz in 2017 to $941/oz in 2018. Costs increased as a result of lower production at Siguiri as high grade oxide ore was depleted and the conversion to harder ore treatment commenced with the combination plant project, partly offset by higher production at Iduapriem resulting from mining and treatment of higher grade ore and higher tonnes treated due to increased plant efficiency. The joint venture operations' AISC decreased from $1,087/oz in 2017 to $820/oz in 2018, a year-on-year improvement despite inflationary pressures. Costs were assisted by the 35% increase in production at Kibali as development shifted the focus to higher grade underground production with reduced spend on capital development cost and lower sustaining capital expenditure, and cost efficiencies at Sadiola as mining operations ceased.

Capital expenditure

Capital expenditure for the region increased in line with planned inward company investments in growth projects, particularly at Siguiri and Obuasi during 2018. Ore Reserve development projects continued at Geita for the Star & Comet and Nyankanga underground operations, together with waste stripping projects at Iduapriem. These projects provide access to the ore bodies identified for future gold extraction. The balance of the capital spend was used for capitalised exploration and stay-in-business projects to improve the asset reliability across our mines to ensure safe, risk-free mining and production.

At Kibali, the Azambi hydropower plant was commissioned during the third quarter in 2018 and fully integrated into the energy grid in September, providing affordable power to the mine. The cyanide tailings storage facility First Lift Project, involving the wall lift on the tailing storage facility, was completed in the last quarter of the year with project handover completed on 31 October 2018. Other notable projects at Kibali included the transition to owner mining which was successfully completed on 1 July 2018.


Safety

There were no fatalities during the year, maintaining a 39-month fatality-free period since October 2015.

Ore Reserve

The total attributable Continental Africa Region Ore Reserve was 16.3 million ounces (2017: 16.9 million ounces). This amounts to 37 percent of the group’s Ore Reserve.

Growth and improvement

Construction of the Siguiri combination plant is complete, with the first material fed to the plant on 1 March 2019. The CIL circuit was commissioned in July and first gold from it was poured in August 2018. The 30MW power plant was commissioned in October 2018. It is now fully operational providing reliable, low-cost power to the Siguiri mine. The crushing and milling circuits for the treatment of the hard sulphide ore are currently being commissioned and full ramp-up is expected in the first half of 2019. The focus for the year will be to stabilise plant throughput and operating stability as the new plant is commissioned.

Exploration drilling continued at Saraya and Foulata to support a prefeasibility study for the Block 2 permit area. This study is due to be completed during 2019 and is aimed at improving the mine’s ounce profile and potentially extending the life of the mine. The current option on the Siguiri Block 2 considers the trucking of oxide material to the existing process plant to displace marginal ore. The evaluation of this has been completed. The requisite permitting and feasibility study are scheduled for the latter part of 2019.

Development of Geita’s Star & Comet and Nyankanga underground sections continued development was completed to access new areas for stope mining and further exploration. Open pit mining at Nyankanga and Geita Hill continued with Geita Hill reaching the end of its economic life and Nyankanga scheduled to be completed in the first half of 2019. Surface exploration continued at Selous, and a satellite pit 2.4km from Star & Comet expected to supplement the underground operation in the near term.

Other notable projects at Geita were the completion of the 40MW power plant and the purchase of underground mining plant and equipment. The power plant was commissioned in August 2018 and is currently in full operation, providing reliable, low-cost power to the mining operations. The purchase of the underground mining plant and equipment is in line with the strategy to transition to owner mining at Star & Comet, planned for the first half of 2019, with the full changeover for the rest of the mine’s sections expected to follow in coming years.

At Obuasi, following receipt of all the requisite approvals from the government of Ghana, including parliamentary ratification, and environmental approvals in June 2018, the redevelopment of the mine’s high-grade ore body has started in earnest. Establishment of the project and operating teams have progressed well and all key roles have been filled. Detailed design has continued, focusing on the processing plant and underground infrastructure. Critical long-lead items have also been ordered. The underground mining fleet was delivered and commissioned. The underground mining contractor has commenced mobilisation. Operational readiness activities, including the design of the mine operating systems, has progressed to plan. Demolition of redundant processing plant structures has begun. Refurbishment planning was completed and works are set to begin early in the second half of 2019. The housing refurbishment programme has also begun and expansion of the mining contractor’s camp is well advanced.

At Iduapriem, waste stripping at Teberebie Cut 1 continued during the year and is expected to be completed in the first half in 2019 when full grade mining should begin. Brownfields drilling continued at the Ajopa pit and open pit mining will continue into 2019 to supplement ore from the larger Teberebie pit. Iduapriem’s plant expansion concept study has been completed on the plant de-bottlenecking. The next focus area will then be to find a solution for an additional tailings storage facility.

At Kibali, an aggressive exploration programme continued with a notable success being the declaration of the maiden Mineral Resource of 0.96Moz for Kalimva and Ikamva that supports a prefeasibility study for future mining.



THE AMERICAS
americasa02.jpg
AngloGold Ashanti has three mining operations – both open pit and deep level mining – in the Americas region. In addition, one brownfield project and an active greenfields exploration programme are underway in Colombia.
 
Attributable gold production
(000oz)

 
Average number of  
employees  

Operations   
  1.     Argentina
   
Cerro Vanguardia 92.5%282
 1,774
  2.    Brazil
   
AGA Mineração364
 4,736
Serra Grande130
 1,462
  3.    Colombia – exploration programme
   


Americas - Key Statistics
 Unit 2018
 2017
 2016
Operation       
Tonnes treated/milledMt 6.8
 7.5
 7.0
Pay limitoz/t 0.121
 0.104
 0.100
 g/t 4.142
 3.576
 3.421
Recovered gradeoz/t 0.103
 0.102
 0.106
 g/t 3.55
 3.49
 3.64
Gold production (Attributable)000oz 776
 840
 820
Silver (attributable)Moz 5.9
 5.8
 4.7
Cost of sales$m 838
 987
 863
Total cash costs (1)
$/oz 624
 638
 578
All-in sustaining costs (1)(2)
$/oz 855
 943
 875
Capital expenditure (3)
$m 176
 234
 225
Safety       
Number of fatalities  1
 0
 1
AIFRPer million hours worked 3.97
 3.29
 3.96
People       
Average no of employees: Total  7,973
 8,511
 8,126
Permanent employees  5,755
 5,888
 5,653
Contractors  2,218
 2,623
 2,473

(1)
Total cash costs and all-in sustaining costs are non-GAAP measures. For further information on these non-GAAP measures, see “Item 5A: Operating Results-Non-GAAP analysis”.
(2)
Excludes stockpile impairments.
(3)
100 percent, (not attributable) and includes Colombia.

Production and costs

The Americas region produced 776,000oz at a total cash cost of $624/oz for the year ended 31 December 2018, compared to 840,000oz at a total cash cost of $638/oz for the previous year. The region’s production decreased due to the lower contribution from Brazil, where production was negatively impacted by delays in development and infrastructure constraints at the Cuiabá complex. This was exacerbated by lower grades in the sulphide operation and excessive rainfall at the Córrego do Sítio complex, while Serra Grande experienced delays in receiving environmental deforestation and waste dump permits.

Full-year production at AGA Mineração in 2018 was impacted by the Cuiabá complex delays in development and infrastructure constraints. The Cuiabá complex was impacted by geotechnical factors at the access ramp to the high-grade ore body. During the last quarter of the year, operating performance improved as measures were taken to improve mine quality by improving stope availability, drilling and mine recoveries while ensuring compliance to plan.

At Córrego do Sítio, lower grades at the sulphide operation and excessive rainfall contributed to lower production. Production was also impacted by lower volumes placed on the heap leach, model changes and production stoppages due to strikes.

At Serra Grande, the production was lower in 2018 as compared to 2017 as less ore was mined following receipt of environmental deforestation and waste dump permits later than expected. All permits had been received by year end.

In Argentina, at Cerro Vanguardia, full-year output was maintained at the same level as 2017, producing 282,000oz at a total cash cost of $476/oz compared to 283,000oz at a total cash cost of $522/oz in 2017. Production was maintained, despite the lower underground grade, mainly because of the higher volumes mined and treated.

The all-in sustaining cost (AISC) was $855/oz in 2018, compared to $943/oz in 2017. Reduced costs were mainly due to lower sustaining capital expenditure, driven by a greater focus on capital management, and benefits derived from Operational Excellence initiatives, which are aimed at encouraging innovation in controlling and managing costs and improving operational efficiencies and productivity.

In Brazil, the all-in sustaining cost declined year-on-year despite lower production volumes and inflationary pressures, which adversely impacted total cash costs. The six percent improvement was boosted by good results from the Operational Excellence initiatives and a favourable exchange rate. In Argentina, total cash costs fell mainly as a result of the weaker exchange rate following the devaluation of the Argentine peso against the US dollar as well as improved efficiencies.


These positive effects were partially weakened by lower tonnes mined and rapidly rising inflation which ended the year at 47 percent, mostly related to salary increments. A lower average silver price for the year and lower volumes sold also affected costs negatively.

In Brazil, Labour Reform, an engagement process with stakeholders, created an opportunity to implement a fourth working shift at all mines in Brazil. Combined with initiatives to optimise the work hand-over at shift change, productivity gains were generated on blasting cycles and development of main ramps and galleries.

In September 2018, the government of Argentina introduced the payment of export duties on exported goods. In terms of an existing tax stability agreement, Cerro Vanguardia is entitled to a refund of these export duties, should the payments result in a higher total tax burden in compared to the tax imposed by the tax stability agreement.

Capital expenditure

In Brazil, capital discipline was maintained with stay-in-business capital expenditure proactively managed lower year-on-year. This was supported by the more favourable exchange rate of the Brazilian real versus the US dollar. The Brazilian operations maintained their focus on Mineral Resource and Ore reserve conversions with the main investment at all operations going into Ore Reserve development, to improve confidence levels and mine flexibility, in order to increase stope access. Capital expenditure in Argentina was lower in 2018 than in 2017, mainly due to reduced Ore Reserve Development from underground optimisation and the tailings dam investment made during 2017, which was not necessary in 2018. The lower level of capital expenditure was also partly attributable to the weakness in the Argentine peso against the US dollar in 2018.

Safety

Regrettably, there was a fatal accident at Cuiabá in Brazil in 2018 following an electricity-related incident in January 2018.

Ore Reserve

At the end of 2018, the total attributable Ore Reserve for the Americas region, was 7.1 million ounces (2017: 5.2 million ounces). This is approximately 16 percent of the group’s total Ore Reserve.

Growth and improvement

Going forward, Brazil plans to increase gold production. Productivity is expected to improve with maximisation of the assets as a result of the Operational Excellence initiatives underway, particularly in the areas of exploration, Ore Reserve development, mining and metallurgy. Significant cost reductions contributed to returning the Mineral Resource and Ore Reserve to plan. During the development phase at Serra Grande, while building confidence levels, conversion drilling works delivered results that were 55 percent better than planned (at 12,722m against 8,217m). In 2019, the Cuiabá complex is expected to improve production by accessing and mining the high-grade Serrotinho ore body. At Córrego do Sítio (CdS), higher development rates and production from underground mining, along with a new pushback at the open pit, are expected to lead to increased production. Drilling campaigns aimed at confirming ore sources are currently underway. Drill results will help support an improving production case in the medium term and extend the operating lives of the new open pit (CdS III) and of new underground mines at Mina II and the São Bento Deep ore bodies in the long term.

Serra Grande has brought the Ingá ore body into production while work continues exploring the potential of the Mangaba and Corpo IV ore bodies. The Palmeiras South negotiation was concluded, creating access to the new ore bodies.

The Cuiabá complex is expected to normalise access to high-grade areas, creating positive conditions so as to adhere to production and development plans to provide flexibility and improve confidence levels. Córrego do Sítio will focus on bringing the new open- pit pushback into production.

At Serra Grande, the Santos Reis community resettlement activities have begun, which we plan to conclude during 2019, to be able to work on the expansion of the open pit to increase production. Additionally, exploration work is expected to begin in high-potential Palmeiras South area once the negotiations have been concluded with landowners. Engagement with all stakeholders is underway.

AGA Mineração is expected to deliver improved grades in 2019, which should result in higher production, and reserve conversion is a clear near-term focus. Production from the Serra Grande crown pillar is expected to lead to higher grades towards the end of the year but at lower throughput. The Palmeiras South licence is targeted for mid-2019.

Cerro Vanguardia has been in operation for 20 years. Going forward, grades are expected to be below current levels, decreasing from about 7g/t to about 5g/t. Further cost-saving initiatives and operational improvements are being analysed in order to maintain cost reductions to mitigate the lower production impact in 2019. An investment for a fleet replacement is planned for 2019, which will be made up of five trucks and one loader, to replace the current old 773-truck fleet. Once these are in commission, use of the new vehicles is expected to bring additional savings given lower maintenance and better operational efficiencies.


AUSTRALASIA

australasiaa02.jpg



 
Attributable gold production
(000oz)

 
Average number of  
employees  

Operations   
Australia   
1.   Sunrise Dam289
 576
2.   Tropicana 70%336
 475
AngloGold Ashanti’s Australasian assets comprise the wholly owned Sunrise Dam and the 70 percent-owned Tropicana Gold mine located in the north-eastern goldfields of the state of Western Australia.

Australasia - Key Statistics
 Unit 2018
 2017
 2016
Operation       
Tonnes treated/milledMt 9.5
 9.4
 8.9
Pay limitoz/t 0.07
 0.06
 0.06
 g/t 2.10
 1.84
 1.86
Recovered gradeoz/t 0.065
 0.061
 0.058
 g/t 2.01
 1.89
 1.82
Gold production (attributable)000oz 625
 559
 520
Cost of sales$m 622
 551
 542
  Total cash costs (1) 
$/oz 762
 743
 793
  All-in sustaining costs (1)(2) 
$/oz 1,038
 1,062
 1,067
Capital expenditure$m 156
 153
 109
Safety       
Number of fatalities  0
 0
 0
AIFRPer million hours worked 9.14
 8.53
 9.49
People       
Average no of employees: Total  1,051
 974
 925
Permanent employees  238
 226
 211
Contractors  813
 748
 714

(1)
Total cash costs and all-in sustaining costs are non-GAAP measures. For further information on these non-GAAP measures, see “Item 5A: Operating Results-Non-GAAP analysis”.
(2)
Excludes stockpile impairments.

Production and costs

The region delivered a strong performance in 2018 producing 625,000oz, a 12 percent year-on-year increase in production, due to higher mill feed grades and higher mill throughput at Tropicana.

At Sunrise Dam, the focus continued to be on lifting the mined grade while maintaining an underground ore production rate of approximately 3Mtpa. Underground ore is the primary source of mill feed which is blended with low grade stockpiled ore to fill the 3.8Mtpa capacity processing plant. Higher mined grades in the first and fourth quarters contributed to a 21 percent increase in year-on-year production, offsetting delays in metallurgical recovery improvements that were anticipated from the Recovery Enhancement Project (REP). A structured optimisation programme in the processing plant was delivering positive results by year end and, along with a higher proportion of Vogue ore in the feed blend, is expected to increase recovery rates to REP feasibility study levels in 2019.

Production at Tropicana in 2018 increased by five percent due to higher mill feed grades and higher mill throughput. The second 6MW ball mill was commissioned ahead of schedule in November 2018 with full ramp-up achieved within a week. The additional ball mill is expected to lift annual throughput to 8.2Mtpa and, through a reduction in grind size, to improve baseline metallurgical gold recovery by up to three percent to approximately 92 percent. The Long Island mining sequence was further optimised during 2018, with mining rates stabilising at approximately 95Mtpa. Grade streaming continued in 2018 with preferential processing of higher grade ore while low-to-medium grade ore was stockpiled. Mining during 2018 focused on the Havana South, Havana 3 and Tropicana 2 pits. It is anticipated that mining of the Tropicana pit will be completed in the first half in 2019, while mining will begin in the Boston Shaker open pit cutback 4 the second half of the year.

All-in sustaining costs at $1,038/oz for the region were slightly lower than the previous year, largely due to higher production and a weaker Australian dollar, which offset higher mining costs.

Capital expenditure

Several once-off capital projects were completed in 2018 with capital expenditure at Sunrise Dam, including construction of the REP, a multiyear extension of the tailings storage facility (TFS) and installation and commissioning of two 2MW primary ventilation fans, which were all completed by year end. Once-off capital expenditure at Tropicana included the construction and commissioning of the 6MW ball mill.

Safety

There were no fatalities during the year.



Ore Reserve

At the end of 2018, the total attributable Ore Reserve for the Australasia region was 3.8 million ounces (2017: 4.0 million ounces). This is approximately nine percent of the group’s total Ore Reserve.

Growth and improvement

Late in 2018, the Tropicana joint venture partners committed to conducting a feasibility study into the development of an underground mine beneath the Boston Shaker pit after a prefeasibility study confirmed that underground mining was technically and financially viable. Approval is expected in the first half of 2019 with development of a portal likely to start in mid-2019. Infill drilling was carried out during 2018 to convert Inferred Resources to Indicated Resources, enabling a maiden underground Ore Reserve to be declared. Boston Shaker mineralisation remains open along strike and at depth.

In 2019, the focus at Sunrise Dam will remain on targeting higher grade sections of the underground stopes, while maintaining the underground production rate at approximately 240,000 – 250,000 tonnes a month. The Vogue orebody will become the primary ore source in 2019, expected to account for approximately two thirds of underground ore production. The site is evaluating paste fill options to support production from wider sections of the large Vogue ore body.

The completion of capital projects, including the ventilation upgrades, during 2018 will contribute to improving the effective use of mining equipment and the reliability of the mine. The underground mine management system (UMMS) is expected to be commissioned during 2019, enabling real-time analysis of the mobile fleet to identify projects that improve efficiency by optimising the effective time and performance quality metrics of the mining equipment. The UMMS will also enable remote surface control of services such as ventilation, power and dewatering. The Sunrise Dam mineralised system remains open in all directions and at depth. During 2019, targets 1km to the south of the mine will be tested with deep diamond drilling in a programme partially funded by the Western Australian Government’s Exploration Incentive Scheme.

During 2018, AngloGold Ashanti earned a 51 percent interest in the Butcher Well/Lake Carey exploration joint venture tenements, where there is potential for the discovery of an additional Ore Reserve for processing at Sunrise Dam, possibly displacing low-grade stockpiles currently being blended with underground ore.

AngloGold Ashanti Australia has the right to earn up to 70 percent interest from Saracen Mineral Holdings Ltd by spending up to A$25m on exploration in the tenements, which are located approximately 22km from Sunrise Dam. These tenements are part of the Butcher Well/Lake Carey exploration joint venture.


SOUTH AFRICA
southafricaa02.jpg

As part of the South African asset sale, AngloGold Ashanti Limited sold its remaining three mining rights in South Africa to Golden Core Trade and Invest (Pty) Ltd (“Golden Core”) and Harmony Gold Mining Company Limited pursuant to a sale agreement concluded on or about 12 February 2020, as amended and reinstated from time to time (the “SA Sale Agreement”). These mining rights relate to operations in the West Wits area.


General laws relating to mining

The MPRDA

The Mineral and Petroleum Resources Development Act, No. 28 of 2002 (the “MPRDA”) came into effect on 1 May 2004. The objectives of the MPRDA are, amongst other things, to allow for state sovereignty over all mineral and petroleum resources in the country, to promote economic growth and the development of these resources and to expand opportunities for the historically disadvantaged and to ensure security of tenure for the respective operations concerning prospecting, exploration, mining and production. By virtue of the provisions of the MPRDA, the state ensures that holders of mining and prospecting rights contribute to the socioeconomic development of the areas in which they operate. The Mineral and Petroleum Resources Development Amendment Act, No. 49 of 2008 (the “MPRDAA”) became effective on 7 June 2013. On 23 April 2004, the Minister of Mineral Resources and Energy (the “MRE Minister”) published, under the terms of the MPRDA, the Mineral and Petroleum Resources Development Regulations in order to implement the provisions of the MPRDA and MPRDAA. These implementation regulations were amended on 27 March 2020.

The mining charter

Since 2004, a series of mining charters have been adopted in South Africa regionwith the main purpose of transferring part of the ownership of mining assets to black or historically disadvantaged South Africans (“HDSAs”) within a certain time period. Such mining charters also set targets for, amongst other things, the advancement of HDSAs into management positions, the employment of women, procurement of goods and services from HDSA-owned companies, training, community development and the upgrading of mine housing. In 2004, the Broad-Based Socio-Economic Empowerment Charter for the South African Mining Industry, 2004 was published and, in September 2018, the Broad-Based Socio-Economic Empowerment Charter for the Mining and Minerals Industry, 2018 (the “2018 Mining Charter”) was published, repealing all prior mining charters. In September 2021, the High Court of South Africa (Gauteng Division) held that the 2018 Mining Charter is a policy document and does not, per se, bind holders of mining titles. The High Court also set aside various provisions of the 2018 Mining Charter. In



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November 2021, the South African Department of Mineral Resources and Energy (“DMRE”) informed the parliamentary portfolio committee on mineral resources and energy that it does not intend to appeal the outcome of the judgement, but instead will consider steps to achieve the empowerment objectives through legislative amendments to the MPRDA.

The B-BBEE Act

The Broad-Based Black Economic Empowerment Act, No. 53 of 2003 (the “B-BBEE Act”) is a law of general application in respect of Broad-Based Black Economic Empowerment (“B-BBEE”) and enables the Minister of Trade and Industry to drive B-BBEE across all sectors of the economy. In 2014, the Broad-Based Black Economic Empowerment Amendment Act, No. 46 of 2013 (the “B-BBEE Amendment Act”) came into effect amending the B-BBEE Act to provide a framework of principles, strategies and guidelines aimed at promoting the broad-based socio-economic empowerment of HDSAs across the South African economy and society in the form of ownership, management, employment equity, skills development, preferential procurement, enterprise development and socio-economic development.

Environmental laws relating to mining

The National Environmental Management Act, No. 107 of 1998, as amended (the “NEMA”) includes provisions to deal with environmental regulation of mining and prospecting, which provisions are administered by the MRE Minister. Pursuant to section 24N(8) of NEMA, directors of a company are jointly and severally liable for any negative impact on the environment, whether advertently or inadvertently caused by the company they represent, including damage, degradation and pollution.

From an environmental perspective, given the wide scope of the statutory duty of care in South African environmental law, erstwhile land owners may be held liable for historic contamination by the regulatory authorities. The “polluter pays” principle in South Africa enables the competent authority to seek recourse against various responsible parties based on their historical or current relationship to the source and receptor of degradation or pollution. The duty of care also applies retrospectively to significant pollution or degradation that occurred before the entry into force of NEMA (i.e., 29 January 1999), as well as significant pollution or degradation that arises or is likely to arise at a different time from the actual activity that caused the contamination (e.g., latent or residual impact) or arises through an act or activity of a person that exacerbates pre-existing contamination. The authorities can also seek compensation in respect of clean-up measures that it is required to take on behalf of the responsible parties and apportion liability amongst the responsible parties, which could technically include a historic landowner or mining company that caused the pollution. Although the purchasers of AngloGold Ashanti’s assets in South Africa have contractually assumed all environmental liability associated with its former South African operations and agreed to indemnify AngloGold Ashanti for the same, there remains a risk, at least theoretically, of statutory liability to the state.

AngloGold Ashanti’s rights and permits

Pursuant to the SA Sale Agreement, AngloGold Ashanti and Golden Core executed a notarial deed of cession of the mining rights with DMRE references GP 30/5/1/2/2/01 MR and GP 30/5/1/2/2/248 MR to transfer and cede these mining rights to Golden Core (the “Deed of Cession”). On 14 June 2021, the Deed of Cession was registered at the Mineral and Petroleum Titles Registration Office (the “MPTRO”).

With respect to the mining right held under DMRE reference GP 30/5/1/2/2/11 MR, AngloGold Ashanti and Golden Core agreed to make an application in terms of section 102 of the MPRDA at the DMRE after the closing date of the SA Sale Agreement requesting, among other matters, the incorporation of this mining right into the mining right with DMRE reference GP 30/5/1/2/2/01 MR (the “Harmony Consolidation Application”). AngloGold Ashanti also executed a notarial conditional deed of abandonment pursuant to which it conditionally abandons this mining right in terms of section 56(f) of the MPRDA (the “Deed of Abandonment”) on condition that ministerial consent is granted in respect of the Harmony Consolidation Application. On 17 January 2022, the Harmony Consolidation Application was submitted to the DMRE. On the date of the grant of the Harmony Consolidation Application, AngloGold Ashanti will cease to be a holder of any mining rights in South Africa. Once the transaction has undergone extensive restructuringbeen fully implemented, the general laws relating to mining outlined above will no longer be applicable to the company, other than the statutory duty of care in terms of NEMA as described above.


AFRICA REGION

Democratic Republic of the Congo (DRC)

General laws relating to mining

The mining industry in the DRC is primarily regulated by Law No. 007/2002 dated 11 July 2002 (the “2002 DRC Code”), as amended by Law No. 18/001 dated 29 January 2018 (the “Reformed DRC Mining Code”) and Decree No. 038/2003 dated 26 March 2003, as amended by Decree No. 18/024 dated 8 June 2018 (the “Reformed DRC Mining Regulations”).






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With respect to the application of the Reformed DRC Mining Code and Reformed DRC Mining Regulations, Kibali Goldmines S.A. (“Kibali Goldmines”) has reserved and continues reserving its rights, including, without limitation, its stability rights under, among other legal sources, the 2002 DRC Code. Discussions with the DRC government on these issues and the possible application of incentives that may be available under the Reformed DRC Mining Code and Reformed DRC Mining Regulations, in particular under article 220 of the Reformed DRC Mining Code which provides that the Prime Minister of the DRC may grant a number of incentives to provinces with infrastructure deficits to encourage economic development from mining resources, are ongoing.

Companies holding mining titles issued prior to the entry into force of the Reformed DRC Mining Code and Reformed DRC Mining Regulations have claims to a 10-year stability provision in accordance with prior mining legislation. Notwithstanding the adoption of the new regulatory regime, their rights with respect to such stability provision are reserved.

The Reformed DRC Mining Code grants the DRC Minister of Mines the authority to grant, refuse, suspend or terminate mineral rights, subject to conditions set out in the Reformed DRC Mining Code. Mineral rights may be granted in the form of exploration permits for an initial period of five years or in the form of mining permits which are granted for an initial period of 25 years. Mining permits are granted upon successful completion of exploration and satisfaction of certain requirements, including approval of a feasibility study, an environmental impact study and an environmental management plan. The holder of a mining permit is required to commence development and mine construction within three years of the award of such permit. Failure to do so may lead to forfeiture of the mining permit. To protect and enforce rights acquired under an exploration or mining permit, the Reformed DRC Mining Code provides, depending on the nature of a dispute or threat, administrative, judicial and national or international arbitral recourses.

Mining companies are required to grant a free-carried and non-contributory participation to the DRC government. The DRC government’s free participation was originally set at 5 percent, which was increased to 10 percent in respect of mining titles issued after the entry into force of the Reformed DRC Mining Code. All mining companies are required to grant an additional 5 percent free-carried participation to the DRC government upon each renewal of their exploitation permit. Under the Reformed DRC Mining Code, a 10 percent local contributory participation is also mandatory for mining titles issued after its entry into force.

Tax laws relating to mining

The Reformed DRC Mining Code sets out an exclusive and comprehensive tax and customs regime that is applicable to mining activities. Mining title holders are subject, amongst other things, to a corporate income tax of 30 percent, a windfall tax of 50 percent (subject to certain prerequisites) and are required to pay mining royalties to the DRC government. The royalty rate applicable to gold has been set at 3.5 percent. Mining title holders are also required to contribute a minimum of 0.3 percent of total turnover to community development.

The standard rate of VAT is 16 percent and is applicable to all mining companies. In the DRC, Kibali Goldmines is due certain refunds of VAT which, to date, remain outstanding. During 2021, AngloGold Ashanti did not recover any VAT offsets and refunds from its operations in the DRC. We believe that our attributable share of the net recoverable VAT balance (including recoverable fuel duty and after discounting provisions) owed to us by the DRC government amounted to $73 million as of 31 December 2021. While an agreement was reached with the DRC government on the reimbursement of the refundable VAT in 2018, uncertainty remains regarding the timing and level of cash receipts and offsets against other taxes for purposes of the recovery of our VAT receivables in the DRC.

The Reformed DRC Mining Code also provides for a level of fiscal stability. A stability clause stipulates that existing tax, customs and exchange control provisions applicable to mining activities are guaranteed to remain unchanged for a period of five years from the enactment of the Reformed DRC Mining Code.

Foreign exchange control regime

The Reformed DRC Mining Code imposed new exchange control rules requiring that mining title holders repatriate onshore 60 percent of sale revenues received during the investment amortisation period and 100 percent once the investment amortisation is completed. As a result of these new rules, AngloGold Ashanti was not able to fully repatriate dividends from its DRC operations to date.

In 2021, AngloGold Ashanti repatriated $231 million from its operations in the DRC, in the form of dividends from Kibali (Jersey) Limited. Kibali (Jersey) Limited received such cash from Kibali Goldmines S.A. in the form of loan repayments (AngloGold Ashanti’s attributable share: $150 million) and dividends (net of withholding taxes) (AngloGold Ashanti’s attributable share: $81 million). Our attributable share of the outstanding cash balances awaiting repatriation from the DRC amounted to $499 million as of 31 December 2021. The cash and cash equivalents held at Kibali Goldmines are subject to various steps before they can be distributed to Kibali (Jersey) Limited and are held across four banks in the DRC, including two domestic banks.






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AngloGold Ashanti’s rights and permits

AngloGold Ashanti holds a significant stake in the Kibali gold mine which is located in the north-eastern part of the DRC. The Kibali gold mine is owned by Kibali Goldmines which is a joint venture between Barrick Gold Corporation (45 percent), AngloGold Ashanti (45 percent) and Société Minière de Kilo-Moto S.A. (“SOKIMO”) (10 percent) which represents the interest of the DRC government. AngloGold Ashanti and Barrick Gold Corporation each have a 50 percent interest in Kibali (Jersey) Limited which holds their respective 45% interest in Kibali Goldmines.

The Kibali gold project is operated by Barrick Gold Corporation and comprises ten exploitation permits, of which eight expire in 2029 and two in 2030. Those exploitation permits (11447, 11467, 11468, 11469, 11470, 11471, 11472, 5052, 5073, and 5088) cover an area of approximately 1,836 km2 in the Moto goldfields.


Ghana

General laws relating to mining

Control of minerals and mining companies

The Constitution of Ghana as well as the Minerals and Mining Act, 2006 (Act 703) (the “GMM Act”) provide that all minerals in Ghana in their natural state are the property of the State and title to them is vested in the President on behalf of and in trust for the people of Ghana, with rights of reconnaissance, prospecting, recovery and associated land usage being granted under licence or lease. The grant of a mining lease by the Ghana Minister of Lands and Natural Resources (the “LNR Minister”) upon the advice of the Minerals Commission is subject to parliamentary ratification unless the mining lease falls into a class of transactions exempted by the Ghanaian Parliament. The LNR Minister has the power to object to a person becoming or remaining a controller of a company which has been granted a mining lease if the LNR Minister believes, on reasonable grounds, that the public interest would be prejudiced by the person concerned becoming or remaining such a controller.

Stability and development agreements

The GMM Act provides for stability agreements as a mechanism to guarantee certain terms and conditions, mainly fiscal, to which a company’s operations are subject for a period of 15 years. A development agreement, as provided for by the GMM Act, may be made available to a mineral right holder with a proposed investment exceeding $500 million. The GMM Act also provides that the terms of a development agreement may contain stability terms as provided for in stability agreements. Stability and development agreements are subject to parliamentary ratification. In January 2020, certain amendments to the GMM Act, including, among other measures, the abolishment of development agreements and the shortening of stability agreements from a period not exceeding 15 years to a period of five years (with a possible extension of another five years) were proposed. If adopted, however, such amendments would not apply retroactively and would therefore not have an impact on existing development agreements, including the Obuasi Development Agreement (as described below).

Ghana Stability Agreement

In 2004, AngloGold Limited and the Government of Ghana signed a stability agreement (the “Ghana Stability Agreement”) governing certain aspects of the fiscal and regulatory framework under which the company would operate in Ghana for a period of 15 years following the implementation of the business combination between AngloGold Limited and Ashanti Goldfields Company Limited. In June 2018, the Ghana Stability Agreement ceased to apply to the Obuasi mine as a result of the parliamentary ratification of a new development agreement and a new tax concession agreement in relation to the mine (as described below). However, the Ghana Stability Agreement continued to apply to the Iduapriem mine until it expired in April 2019. Since then, AngloGold Ashanti (Iduapriem) Limited (“AGA Iduapriem”) no longer benefits from the Ghana Stability Agreement. Relevant engagements are currently ongoing between AGA Iduapriem and the Minerals Commission to obtain a new agreement for the Iduapriem mine.

Obuasi Development Agreement

AngloGold Ashanti (Ghana) Limited (“AGA Ghana”) negotiated a new development agreement in relation to the Obuasi mine (the “Obuasi DA”) with the Government of Ghana. On 21 June 2018, the Ghanaian Parliament ratified the Obuasi DA which contains stability terms as provided for in stability agreements. The Obuasi DA confers a number of rights and obligations on AGA Ghana with respect to the Obuasi mine, including, among other matters, (i) the stabilisation of the fiscal and regulatory framework (except for enactments promoting the use of Ghanaian goods and services) for a period of 10 years (with a potential of it being extended for five years); (ii) the right to hold up to 80 percent of proceeds received from exporting minerals in foreign currencies outside of Ghana; (iii) obligation to give preference to materials and goods made in Ghana as well as services provided by Ghanaians; and (iv) the right to peaceful enjoyment and protection against expropriation.






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Obuasi Tax Concession Agreement

Fiscal terms, which will ordinarily form part of a single stabilisation document, were separated from the Obuasi DA. Hence a separate tax concession agreement in relation to the Obuasi mine (the “Obuasi TCA”) was signed with the Government. On 21 June 2018, Parliament ratified the Obuasi TCA with a concession period until 31 December 2027. The Obuasi TCA contains a number of tax concessions for AGA Iduapriem with respect to the Iduapriem mine, including, among other matters, (i) a corporate income tax rate of 32.5 percent or such lower rates as may be fixed by law (instead of the current statutory rate of 35 percent); (ii) exemption of certain transactions from capital gains tax; (iii) a sliding scale royalty rate ranging from 3 percent to 5 percent for a price ranging from $1,300 up to $2,000 and above per ounce (instead of the current flat rate of 5 percent); and (iv) certain VAT exemptions and refunds.

Government’s Golden Share

Section 60(1) of the GMM Act provides that the Government of Ghana can require a mining company to issue for no consideration to the Republic of Ghana a special share (a “Golden Share”). A Golden Share in AGA Ghana was issued to the Government of Ghana and the Obuasi DA confirms that the Government’s rights with respect to its Golden Share apply only in respect of AGA Ghana’s assets and operations in Ghana. The Golden Share confers certain rights on the Government in respect of AGA Ghana. For example, written consent of the holder of the Golden Share is required for, among other matters, (i) any amendment of the rights and restrictions in respect of the Golden Share; (ii) the voluntary winding-up or voluntary liquidation of AGA Ghana; (iii) the disposal of any mining lease held by AGA Ghana; and (iv) the disposal of all or substantially all of the assets of AGA Ghana. The holder of the Golden Share generally does not have the right to participate in the profits or assets of AGA Ghana (by way of dividend or other capital issuances), but is entitled to attend any general meeting of shareholders.

Tax laws relating to mining

Currently, the main tax laws in Ghana include the following acts and regulations, which have been frequently amended over the years:
•Income Tax Act, 2015 (Act 896) (as amended) and Income Tax Regulations, 2016 (L.I. 2244);
•Customs Act, 2015 (Act 891) (as amended) and Customs Regulations, 2016 (L.I. 2248);
•Value Added Tax, 2013 (Act 870) (as amended) and Value Added Tax Regulations, 2016 (L.I. 2243); and
•Revenue Administration Act, 2016 (Act 915).

The Income Tax Act, 2015 (Act 896) ringfences and taxes income derived from mining operations at the rate of 35 percent. The Obuasi TCA for AGA Ghana provides for a stabilised income tax rate of 32.5 percent. AGA Iduapriem currently pays income tax at the rate of 35 percent.

Furthermore, mining companies are subject to the payment of ground rent and royalties. The current royalty rate amounts to 5 percent. However, a sliding scale royalty rate has been adopted for AGA Ghana as provided by the Obuasi TCA. The provision of goods and services is liable to value added tax (“VAT”) at a revised rate of 12.5 percent. In addition, there are separate levies, including a 2.5 percent National Health Insurance Levy (“NHIL”), a 2.5 percent Ghana Education Trust Fund Levy (“GetFund Levy”) and a 1.0 percent COVID-19 Levy. By virtue of the Obuasi TCA, AGA Ghana is exempt from the payment of the NHIL and GetFund Levy. In addition, while AGA Ghana is technically exempt from the payment of the COVID-19 Levy (as it became operational subsequent to the effective date of the Obuasi DA), the company decided to pay the COVID-19 Levy voluntarily. AGA Iduapriem is not exempt from any of these levies.

Environmental laws relating to mining

Mining companies are required, under the GMM Act, Environmental Assessment Regulations, 1999 (L.I. 1652) and Water Use Regulations, 2001 (L.I. 1692), to obtain all necessary approvals from the Environmental Protection Agency (the “Ghana EPA”) and, in appropriate cases, the Water Resources Commission and/or the Ghanaian Minerals Commission before undertaking mining operations. This includes undergoing an environmental impact assessment process and, following the issuance of the environmental permit, periodically preparing environmental management plans, which include details of the likely impacts of mining operations on the environment and local communities, as well as a comprehensive plan and timetable for actions to mitigate and remediate any adverse effects of the mining operations, for submission to the Ghana EPA. The Minerals and Mining (Health, Safety and Technical) Regulations, 2012 (L.I. 2182) also impose further obligations to obtain the necessary permits from the Inspectorate Division of the Ghana Minerals Commission for the operation of mines. The environmental permits for AGA Ghana (for the Obuasi redevelopment project and for the construction and operation of tailings and water infrastructure projects) are valid until November 2022. The environmental permits for AGA Iduapriem (for the re-mining of Block 5 and for the tertiary crusher installation project) are valid until July 2022. Renewal processes for the environmental permits for both mines are underway. The permit for the tailings infrastructure project of AGA Iduapriem is valid until 2023.

Environmental laws in Ghana also require mining operators to rehabilitate land negatively impacted by mining operations according to an environmental cost reclamation plan agreed with the Ghana EPA. The environmental cost reclamation plan includes two cost estimates, namely the cost of rehabilitating the mining area at the end of the life of the mine as well as the cost of rehabilitating the mine as at the date of the reclamation plan. These estimates are reviewed annually and updated every two



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years. Each mining company is typically required to secure a percentage (typically between 50 percent and 100 percent) of the estimated rehabilitation costs by posting reclamation bonds underwritten by banks and restricted cash. The terms of each reclamation bond are determined by a reclamation security agreement between that company and the Ghana EPA. Both AGA Ghana and AGA Iduapriem have bank guarantees in place for environmental reclamation liabilities as well as escrow accounts with joint signatories from the Ghana EPA. The guarantees for AGA Iduapriem will expire in October 2022, whereas the guarantees for AGA Ghana are valid until December 2022.

Foreign exchange, export and other rules

Retention of foreign earnings

The Obuasi mine is permitted to retain 80 percent of its foreign exchange earnings in an offshore foreign exchange account, whereas the Iduapriem mine is allowed to only retain 45 percent. In addition, the company has permission from the Bank of Ghana to retain and use US dollars, outside of Ghana, to fulfil payment obligations to the company’s hedge counterparties which cannot be met from the cash resources of its treasury company.

Rules regarding the export of gold and diamonds

The Bank of Ghana introduced new measures to regulate and monitor the export of gold and diamonds from Ghana in 2015. From September 2015, all exports of gold and diamonds must be carried out through the Precious Minerals Marketing Company Ltd (“PMMC”), except where the exporter is the holder of a licence that permits it to export directly. The Ghana Revenue Authority (Customs Division) only permits gold to be exported by a licensed gold exporter who has a completed Form FEX A4 bearing Bank of Ghana’s embossment. The export measures do not apply to AngloGold Ashanti because the company holds a licence granted by the LNR Minister to sell and export its production.

Local assaying and refinement policies

In November 2016, the Ministry of Lands and Natural Resources issued a ministerial directive appointing the PMMC as designated laboratory for assaying in Ghana. The directive requests all persons holding export licences for gold to submit all gold to be exported to the PMMC for assay before export. Mining businesses, including AngloGold Ashanti, acting through the Ghana Chamber of Mines were opposed to this directive due to its potential negative impact on mining companies in the region. As a result, the Chamber initiated proceedings to reverse or modify the directive. Following discussions in respect of the mining industry’s concerns, the Chamber and Government agreed on the modalities for implementing the national assaying policy and it was introduced in February 2018 following a one-month pilot among certain mining companies. Subsequently, in June 2019, the LNR Minister released a statement reiterating the Government of Ghana’s plans to locally refine 30 percent of the gold produced in the country. Discussions between the Ghana Chamber of Mines and the Government of Ghana’s economic management team in 2019 led to the Chamber agreeing to consider the proposal and for the parties to discuss detailed modalities to ensure that a move to locally refined gold does not become detrimental to the mining industry.

Local content and local participation policy

Mining companies must submit a detailed programme for the recruitment and training of Ghanaians with a view to achieving “localisation”, which is the replacement of expatriate personnel in a company’s Ghanaian operations by Ghanaian personnel. In addition, mining companies must give preference to Ghanaian products and personnel, to the maximum extent possible, consistent with safety, efficiency and economies. The Minerals and Mining (General) Regulations, 2012 (L.I. 2173) give further details on the localisation policy. On 15 October 2020, the Minerals and Mining (Local Content and Local Participation) Regulations, 2020 (L.I. 2431) were adopted in order to expand the scope of local content requirements in the mining industry. For example, there are restrictions on the number of expatriates that can be employed by mineral rights holders and mine support service providers in a bid to enhance the participation of Ghanaians in the mining industry.

AngloGold Ashanti’s rights and permits

Obuasi

The Obuasi mine originally held four contiguous mining leases, the Obuasi Mining Lease and the Binsere 1, 2 and 3 Mining Leases. The Obuasi Mining Lease was granted by the Government of Ghana on 5 March 1994, covering an area of approximately 338 km2 in the Amansie East and Adansi West districts of the Ashanti region, for a term of 30 years from the date of the agreement. The Binsere Mining Leases were granted on 9 April 1998, covering an area of 140 km2, for a term of 30 years from the date of the agreement. All leases in respect of the Obuasi mine had been duly ratified in accordance with Ghanaian law. In March 2007, the Government of Ghana agreed to extend the term of the Obuasi Mining Lease for a further term of 30 years. The amended Obuasi Mining Lease was also ratified by Parliament on 23 October 2008. The Obuasi Mining Lease will expire in March 2054 and the Binsere Mining Leases in April 2028. The mining leases are renewable. On 3 March 2016, the Minerals Commission approved AGA Ghana’s application to surrender approximately 273.54 km2 of the area to the Government of Ghana, reducing the lease areas to 201.46 km2. The remaining parcel of land that will be subject to the mining lease is situated within various villages and townships in the region but excludes the municipality of Obuasi. On 15 January 2021, the



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Minerals Commission approved AGA Ghana’s application to surrender a further 60.24 km2 of lease area, thereby reducing the total lease area to 141.22 km2. The current lease areas are covered by three mining leases: the Obuasi Mining Lease (87.48 km2), the Binsere 1 Mining Lease (29.03 km2) and the Binsere 2 Mining Lease (24.71 km2). These mining leases are covered by the Obuasi DA and Obuasi TCA.

Iduapriem

The Iduapriem mine operates under four different mining leases: the Iduapriem Mining Lease (LVB1539/89) (36.47 km2), the Ajopa Mining Lease (LVB/WR326/09) (46.12 km2), the Teberebie Mining Lease (LVB3722H/92) (28.53 km2) and the Ajopa South Mining Lease (LR#1109/1999) (28.10 km2). On 17 February 2020, the mining leases were extended for a further period of 15 years and such leases will now expire in February 2035. All leases in respect of the Iduapriem mine have been duly ratified in accordance with Ghanaian law.


Guinea

General laws relating to mining

In Guinea, the mining industry is primarily regulated by Law L/2011/006/CNT dated 9 September 2011 as amended by Law L/2013/053/CNT dated 8 April 2013 and promulgated by Decree D/2013/075/PRG/SGG dated 17 April 2013 (together, the “Guinea Mining Code”).

The Guinea Mining Code is implemented by various decrees and orders, including Decree D/2014/015/PRG/SGG adopting a model of mining convention, dated 17 January 2014, Order A/2016/1584/MMG/SGG related to the administration’s capacities for the management of integrated mining projects (PARCA-GPI) and its steering committee, dated 6 June 2016, and Decree D/2016/163/PRG/SGG on the national agency for the development of mining infrastructures (ANAIM), dated 13 June 2016.

In 2017, Decree D/2017/285/PRG/SGG was adopted, which sets forth the conditions for the constitution and management of the Local Development Fund (“Fodel”), as well as Joint Order A/2017/6326/MMG/MATD/SGG, which sets forth the conditions for the use, management and control of the Fodel. Together, these set forth the use of the mining companies’ financial contribution to the development of the local communities and the rules applying to the Fodel, which was created under the Guinea Mining Code. On 13 July 2018, a Joint Order A/2018/5212/MEF/MMG/MB/MATD/SGG was issued, which regulates the use, management and monitoring of the resources allocated to local authorities pursuant to article 165 of the Guinea Mining Code. In 2019, an inter-ministerial committee was created to supervise and control the Fodel through the adoption of Joint Order AC/2019/089/MMG/MATD/SGG setting out the conditions for the constitution, powers and management of said inter-ministerial committee. On 6 September 2019, Decree D/2019/263/PRG/SGG was issued, which sets forth local content requirements in the framework of the implementation of public and private projects in Guinea.

On 16 June 2020, a new procedure for the export of gold by mining companies was enacted through the adoption of Decree D/2020/113/PRG/SGG, which sets out, amongst other things: (i) when the industrial production tax referred to in article 161-1 of the Guinea Mining Code shall be paid, and (ii) the process to be followed to export gold bullion.

On 27 April 2021, a Joint Order AC/2021/824/MMG/BCRG/SGG was issued establishing the fees and costs charged by the Guinean mining authorities and the Guinean Central Bank in connection with the administrative procedures for the export of gold by industrial and semi-industrial companies.

AngloGold Ashanti’s rights and permits

The group’s Guinean subsidiary, Société AngloGold Ashanti de Guinée S.A. (“SAG”), has title to the Siguiri mine in the form of a mining concession, granted by virtue of Presidential Decree D/97/171/PRG/SGG, dated 4 August 1997, for a period of 25 years (the “Mining Concession”). The Mining Concession covers exploration and mining for gold, silver, diamonds and associated ores, and was originally covered by a mining convention entered into with the Republic of Guinea in 1993 and amended in 2005. On 28 June 2016, SAG and the Government of Guinea concluded a revised and consolidated mining convention (convention de base révisée et consolidée) (the “Revised Mining Convention”) which encompasses a renewal of the term of the original mining convention and other amendments necessary to support an expansion project to extend the life of the Siguiri mine (the “Expansion”). In compliance with the provisions of the Guinea Mining Code, the Revised Mining Convention was ratified by the Guinean National Assembly (Law L/2016/N°067/AN dated 30 December 2016, promulgated by Decree D/2017/015/PRG/SGG dated 24 January 2017), submitted to the Guinean Supreme Court which rendered a favourable opinion (Judgement N°AC 005 dated 16 January 2017), and ratified by the President of the Republic of Guinea (Decree D/2017/021/PRG/SGG dated 24 January 2017), following which it replaced the original mining convention and became effective on 24 January 2017.








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Key elements of the Revised Mining Convention include the following:

•a duration of 25 years, expiring 23 January 2042, subject to further renewal if mining operations continue;
•the term of the Mining Concession is aligned with the term of the Revised Mining Convention since the Republic of Guinea committed to maintain the Mining Concession for the entire duration of the Revised Mining Convention;
•SAG’s operations remain governed by the 1995 Guinea Mining Code (the prior mining code) and are only subject to the provisions of the Guinea Mining Code to the extent they are expressly set out in the Revised Mining Convention;
•the stability of the customs and tax regime is guaranteed for the entire initial term of the Revised Mining Convention, and subject to certain conditions being met, any renewal period(s);
•the Republic of Guinea holds a 15 percent free-carried/non-contributory interest;
•the Republic of Guinea is entitled to a royalty on gold of 5 percent based on a spot gold price as per LBMA fixing (PM) up until the date of steady state commercial production of the first phase of the Expansion, after which the royalty rate applicable to gold will vary depending on threshold prices as per LBMA fixing (PM), namely: 3 percent if the gold price is $1,300 or less, 5 percent, if above $1,300 and up to $2,000 and 7 percent if above $2,000;
•SAG benefits from 5-year income tax holiday from the beginning of steady state commercial production of the first phase of the Expansion, after which the income tax rate is set at 30 percent;
•a local development tax of 0.4 percent is payable on the sale price for gold and silver received by SAG up until 31 December 2027, after which it will be increased to 0.6 percent;
•salaries of expatriate employees are subject to a 10 percent income tax;
•goods imported into Guinea for purposes related to the construction and commissioning of the first phase of the Expansion are exempt from all customs taxes and duties; and
•SAG is committed to adopting and progressively implementing a plan for the effective rehabilitation of the mining areas disturbed or affected by its operations.

The Mining Concession covers an area divided into four blocks totaling approximately 1,495 km2. SAG has the exclusive right to explore and mine in any part of the concession area for the duration of the Revised Mining Convention. The Revised Mining Convention also grants SAG the option to secure certain land rights over additional areas currently covered by exploration permits, but to which SAG may need access for purposes of establishing roads or storage of tailings. The Mining Concession is due to expire on 4 August 2022. On 1 February 2022, a renewal request was filed in accordance with the provisions of the Revised Mining Convention. Pursuant to the Revised Mining Convention, the Mining Concession can be renewed for one or more period(s) that cannot exceed 10 years each as long as the Revised Mining Convention is in force.

The Revised Mining Convention is subject to early termination if the parties formally and expressly agree to it, if the last of the mining title held by SAG expires or is relinquished without any renewal application having been filed, if all project activities are voluntarily suspended for a continuous period of 12 months or are permanently abandoned by SAG, or if SAG goes into voluntary liquidation or is placed into liquidation by a court of competent jurisdiction.


Mali

General laws relating to mining

The mining industry in Mali is primarily regulated by Ordinance No. 2019-022/P-RM dated 27 September 2019 containing the new mining code of the Republic of Mali (the “Mali Mining Code”) and Decree No. 2020-0177/PT-RM dated 12 November 2020 implementing the Mali Mining Code. On 8 December 2020, Decree No. 2020-0288/PM-RM enacted the new model mining convention referred to in Decree No. 2020-0177/PT-RM.

The Mali Mining Code applies to the mining operations previously carried out by AngloGold Ashanti entities in Mali (as further described below) except with respect to the validity, scope and duration of their exploitation permits and the provisions on tax and customs regime contained in their mining conventions (conventions d’établissement) for their remaining duration. In this regard, the transitory rules of the Mali Mining Code specify that mining conventions in force remain valid for their remaining term and their holders continue to benefit from the stability of the tax and customs regime set out therein.

Exploration and prospecting activities are carried out under exploration authorisations (autorisation d’exploration) or exploration permits (permis de recherche), which give their holder the exclusive right to carry out exploration activities over a given area. Exploration authorisations are granted by the Mining Administration (Administration chargée des Mines) for a non-renewable period of three months, while exploration permits are granted by Ministerial Order for a period of three years renewable twice for additional 3-year periods. Applications for exploration authorisations and exploration permits must contain various documents attesting to the financial and technical capacity of the applicant as well as a detailed works and costs programme.

A large scale permit exploitation permit (permis d’exploitation de grande mine) is required to mine a deposit located within the area of an exploration permit and grants the holder an exclusive right to exploit the named substances and proceed with the processing and commercialisation of the substances extracted within its perimeter. Large scale exploitation permits are granted by decree of the Head of Government for a maximum period of 12 years renewable for 10 year-periods until depletion of the deposits. An application must be submitted to the Mining Administration (Administration chargée des Mines) and must contain



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various documents attesting to the financial and technical capacity of the applicant, a feasibility study, a detailed environmental study in respect of the impact of the project on the environment, an environmental permit, a closure and rehabilitation plan as well as a community development plan. As soon as the large scale exploitation permit is granted, the permit holder must incorporate a company under the laws of Mali and assign the permit for free to this company. The State will have a 10 percent free-carried interest in the company. This interest will be converted into priority shares and the State’s participation will not be diluted in case of an increase in capital. In addition, the company is required to ensure that private Malian investors are offered the possibility to acquire 5 percent of their capital.

All mining titles mentioned above (save for the exploration authorisation) require a mining convention (convention d’établissement) to be signed by the State and the titleholder defining their rights and obligations, the duration of which is 20 years.

AngloGold Ashanti’s rights and permits

Historically, AngloGold Ashanti had interests in the Morila, Sadiola and Yatela gold mines, all of which were governed by mining conventions (conventions d’établissement) covering exploration, mining, treatment and marketing in a comprehensive document. These documents include general provisions regarding exploration (work programme, fiscal and customs framework) and exploitation (formation of a local limited liability mining company, State interest, fiscal and customs framework governing construction and exploitation phases, exchange controls, marketing of the product, accounting regime, training programmes for local labour, protection of the environment, reclamation, safety, hygiene and dispute settlement). The Morila and Sadiola gold mines were sold in November and December 2020, respectively.

In April 2017, Société d’Exploitation des Mines d’Or de Yatela S.A. (“Yatela”), the company operating the Yatela gold mine, began the implementation of a closure plan in order to relinquish the property. In February 2019, AngloGold Ashanti and its joint venture partner IAMGOLD Corporation announced an agreement to sell each of their 40% interests in Yatela to the Government of Mali, which holds the remaining 20% interest. Completion of the transaction is subject to the fulfilment or waiver of a number of conditions precedent and has been delayed several times since 2019 due to political instability and related events in Mali as well as the COVID-19 pandemic. Yatela’s exploitation permit covers approximately 212 km2. Yatela has a 30-year permit which expires in 2030.


Tanzania

General laws relating to mining

Tanzania Mining Act and Tanzania Mining Regulations

Mineral rights in the United Republic of Tanzania are principally governed by the Mining Act, Chapter 123 (R.E. 2019), as amended (the “Tanzania Mining Act”) and the Mining Regulations, 2010, as amended (the “Tanzania Mining Regulations”). The Tanzania Mining Act and the Tanzania Mining Regulations came into force in November 2010 followed by amendments to the Tanzania Mining Act in 2017 and subsequent amendments to the Tanzania Mining Regulations in 2018 and 2019. Those amendments, together with an Executive Order, introduced, among other matters, (i) the Tanzania Mining Commission; (ii) local content requirements for procurement of goods and services; and (iii) Mining Licence requirements of 5 percent of a licencee’s equity to be held by Tanzanians, with 80 percent of its managerial positions to be held by Tanzanians and 100 percent of other positions to be held by Tanzanians, in addition to the shareholding of the Government of Tanzania pursuant to Section 10 of the Tanzania Mining Act (i.e. free-carried interest).

Minimum shareholding and public offering

In 2016, the Mining (Minimum Shareholding and Public Offering) Regulations, 2016, as amended, was adopted. The regulations set out the requirement to sell shares to Tanzanian nationals, by way of a public offering and listing on the Dar es Salaam Stock Exchange, which will apply to companies that are carrying out large scale mining operations. The regulations also require all existing holders of a special mining licence to list a minimum of 30 percent of their shares on either the Main Investment Market or the Enterprise Growth Market Segment of the Dar es Salaam Stock Exchange within 6 months of the regulations coming into force, which was on 24 February 2017. However, the company believes the listing requirement conflicts with the mining development agreement. In September 2020, the Government of Tanzania published the Mining (Minimum Shareholding and Public Offering) (Amendment) Regulations, 2020, which exempts companies holding special mining licences from local listing requirements if such mining company has entered into an agreement with the Government of Tanzania that provides for a non-dilutable free-carried interest in such mining company and an economic benefits sharing arrangement.

Arbitration

Along with other major mining companies, AngloGold Ashanti’s subsidiaries are seeking a constructive dialogue with the Government of Tanzania to gain assurances that the Geita gold mine will not be affected by recent legal and fiscal changes adopted by the Government in light of their mining development agreements which guarantee (i) fiscal and regulatory stability,



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and (ii) an agreement between all parties before material legal and regulatory changes are made. As a precautionary step to safeguard its interests, AngloGold Ashanti commenced international arbitration proceedings against the Government of Tanzania in connection with the enactment of this legislation in July 2017. Declaratory relief is sought in accordance with the terms of the company’s existing mining development agreement to preserve its and its shareholders’ rights and interests in the Geita gold mine. AngloGold Ashanti is seeking confirmation from the Government of Tanzania that, as a result of its existing mining development agreement, the company does not fall within the scope of the new mining legislation that includes, among other things, (i) listing requirements; (ii) an increase in the rate of revenue royalties from 4 to 6 percent and a 1 percent clearance fee; and (iii) a right for the Government of Tanzania to (a) renegotiate existing mining agreements at its discretion, (b) receive a non-dilutable, free-carried interest of no less than 16 percent in all mining projects, and (c) acquire up to 50 percent of the shares of the mining company commensurate with the total tax expenditure incurred by the Government in favour of the mining company. AngloGold Ashanti can provide no assurance that the new mining legislation, including the listing requirements, will not apply to its operations in Tanzania and the outcome of the arbitration action may have a material adverse impact on the company’s results of operations and financial condition. See also “Item 8A: Legal Proceedings—Tanzania”.

Categories of mineral right licences

Ownership of and control over minerals on, in or under the land vest in the President of the United Republic of Tanzania. No person is allowed to prospect for minerals or carry on mining operations except pursuant to the authority of a mineral right licence granted, or deemed to have been granted, under the Tanzania Mining Act or its predecessor acts. To enable a company to prospect or mine, the Tanzania Ministry of Minerals (“MEM”) initially grants an exclusive prospecting licence. Upon presentation of a feasibility study, together with certain other environmental, social and financial assurances, the MEM may then grant a form of licence for mining. Three categories of licences can be applied for under the Tanzania Mining Act: licences for exploration, licences for mining, and licences for ancillary activities. Licences for exploration include prospecting licences and gemstone prospecting licences. Licences for mining include special mining licences (if the proposed capital investment is equal to at least $100 million), mining licences (if the proposed capital investment is equal to between $100,000 and $100 million) and primary mining licences (reserved for Tanzanian citizens).

A prospecting licence grants the holder the exclusive right to prospect in the area covered by the licence for all minerals within the class of minerals applied for. An application for a prospecting licence is made to the Mining Commission and the licence, once granted, is valid for an initial term of four years. After the initial term, the licence is renewable for a further period of three years, with no option for renewal thereafter. Upon renewal, 50 percent of the area covered by the licence must be relinquished.

Mining is mainly carried out through either a mining licence or a special mining licence, both of which confer on the holder the exclusive right to conduct mining operations in or on the area covered by the licence. A special mining licence is granted for the shorter of either the estimated life of the ore body indicated in the feasibility study report or such period as the applicant may request. The holder of a special mining licence may apply for renewal of its licence at any time but no later than one year before the expiry of the licence and such renewal shall not be for a period exceeding the estimate life of the remaining ore body. Special mining licences have certain fiscal and other advantages over mining licences, as the holder of a special mining licence may enter into a mining development agreement with the Government of Tanzania to guarantee the fiscal stability of a long-term sustainability. mining project and make special provision for the payment of royalties, taxes, fees and other fiscal imposts. A special mining licence holder may, in certain circumstances, unilaterally amend the programme of the mining operations agreed with the MEM.

Tax laws relating to mining

Currently, the main tax laws in Tanzania comprise the Finance Act, 2015 (No. 16), which came into force on 1 July 2015, and the Finance Act, 2017 (No. 4), which came into force on 1 July 2017. Both tax laws impose and revise certain taxes, duties, levies and fees. Among other provisions, inspection or clearance fees on the exportation or domestic use of minerals were introduced. Such exportation or domestic use is restricted unless such minerals have been inspected or cleared at the mining areas, ports, airports, border or posts and the clearing fee of 1 percent of the gross value of the minerals has been paid by the exporter or any other person in possession thereof. Local government levies and environmental management fees and charges apply as well.

Effective 20 July 2017, the Value Added Tax Act, 2014 (No. 5) (the “VAT Act”) was amended in order to restrict VAT relief for VAT input tax paid by mining companies on goods and services. Prior to the enactment of this amendment to the VAT Act, mining companies were entitled to 100% VAT relief in respect of the goods and services they purchased. The amendment prohibits refunds for VAT input tax incurred on a series of raw products, including the exportation of “raw minerals”. Subsequently, the Tanzania Revenue Authority (“TRA”) denied our applications for VAT input credit refunds, which amounted to a total of $142 million (after discounting provisions) as of 31 December 2021, covering the period from July 2017 onwards, on the basis that all of the gold doré that we export constitutes “raw minerals” for purposes of the VAT Act. In response, the company filed formal notices of objection with the TRA stating that the exportation of gold doré is, in its view, not covered by the restriction since doré does not fall within the category of “raw minerals” as used in the VAT Act. On 22 February 2019, the Tanzania Mining Act was amended to introduce a definition for “raw minerals” which supports our interpretation that gold doré is excluded from the prohibition. On 1 July 2020, the Finance Act, 2020 (No. 8), amended the VAT Act, without retrospective effect, in order to remove the restrictions on VAT input tax credits for the exportation of “raw minerals” as well as a series of other raw products. This recent amendment confirms the technical basis for VAT input tax recovery for mineral exporters from July 2020 onwards. VAT claims from July 2020 onwards are subject to verification procedures by the TRA before any refunds will be received. In 2021, the



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company was able to offset $54 million of verified VAT claims (from July 2020 onwards) against its corporate tax liability in Tanzania. Discussions with the TRA are ongoing to resolve our historical claims for VAT input credit refunds for the period from July 2017 to June 2020.

Natural resources, export and other rules

Natural resources legislation

In Tanzania, two laws in respect of natural resources came into force in July 2017: the Natural Wealth and Resources Contracts (Review and Re-negotiation of Unconscionable Terms) Act, 2017 (No. 6) (the “Unconscionable Terms Act”) and the Natural Wealth and Resources (Permanent Sovereignty) Act, 2017 (No. 5) (the “Permanent Sovereignty Act” and together with the Unconscionable Terms Act, the “Natural Resources Laws”). Implementing regulations were published in January 2020. The Natural Resources Laws provide that Tanzania has sovereignty over its natural resources and that all arrangements or agreements that relate to “natural wealth and resources” are subject to review by the National Assembly to ensure that they are in the interests of the people of Tanzania. During a review all unconscionable terms as interpreted in accordance with the law are expunged from the agreement. In addition, under the laws, disputes over natural wealth and resources will not be subject to any proceedings in any foreign court or tribunal. As a result, investors are restricted from accessing international dispute resolution mechanisms. Accordingly, companies are now required to adopt Tanzanian law and local dispute resolution in all mining agreements. As such, all disputes will be handles by Tanzanian judicial bodies or any other Tanzania government body vested with powers to resolve disputes. In addition, to ensure that the Government and the people of Tanzania obtain an equitable stake in the exploitation of mining resources, all project earnings must be retained in Tanzanian banks. Investors are also prevented from freely exporting raw minerals and repatriating funds.

Section 6 of the Unconscionable Terms Act specifically provides that where there is an unconscionable term, the National Assembly may pass a resolution for re-negotiation of the agreement whereupon the Government shall serve notice to the investor to re-negotiate the term or agreement. The Government and the particular investor have 90 days from the notice date to re-negotiate the term or agreement. If both parties fail to revise the unconscionable term, the term will be deemed removed from the agreement. A term is considered “unconscionable” under the Unconscionable Terms Act if, among other grounds, the requirements or provisions of the agreement restrict the right of the state to exercise authority over foreign investment within the country and in accordance with the laws of Tanzania, are inequitable and onerous to the state, secure preferential treatment designed to create a separate legal regime to be applied discriminatorily for the benefit of a particular investor, deprive the people of Tanzania of the economic benefits derived from subjecting natural wealth and resources to beneficiation in the country, or subject the state to the jurisdiction of foreign laws and foreign courts or tribunals.

Local participation policy

On 15 September 2015, the Non-Citizens (Employment Regulation) Act, 2015 (No. 1) (the “Non-Citizens Act”) came into force which vests powers concerning work permits with the Labour Commissioner. Therefore, non-citizens wishing to be employed in the country are required to apply and be granted a work permit before applying for a residence permit. Before granting the work permit, the Labour Commissioner must be satisfied that all efforts have been explored to acquire a local expert. Further, the company is required to submit a succession plan which sets out a well-articulated plan for the transfer of the non-citizen’s knowledge and expertise to Tanzanian citizens. Moreover, the Commissioner General of Immigration is required to take into consideration conditions of the work permit issued by the Labour Commissioner when granting a residence permit.

AngloGold Ashanti’s rights and permits

The Geita gold mine is located in the Lake Victoria goldfields of the Mwanza region of Tanzania. AngloGold Ashanti has concluded a mining development agreement with the Ministry of Minerals on 24 June 1999 and was issued a special mining licence (SML45/99) covering approximately 196 km2 for a period of 25 years, which expires on 26 August 2024. On 9 October 2014, an addendum to the mining development agreement was entered into ratifying, among other matters, an increase in the royalty rate from 3 percent to 4 percent with effect from 1 May 2012. In March 2020, Geita Gold Mining Limited received the consent of the Minister of Minerals to change the mining method under its special mining licence from open pit to underground method, subject to the requisite terms and conditions. Within the special mining licence area, there are also seven primary mining licences of approximately 0.63 km2 in total which belong to third parties. Furthermore, Geita Gold Mining Limited holds prospecting licences covering (i) an area of 120 km2 in the immediate vicinity of its special mining licence area, and (ii) an area of 690 km2 located in the Dodoma, Singida and Shinyanga regions, but none of these areas contain any Mineral Reserve. All licenses are in good standing.


AUSTRALIA

General laws relating to mining

In Australia, with a few exceptions, all onshore minerals are owned by the Crown. The respective Minister for each state and territory is responsible for administering the relevant mining legislation enacted by the states and territories.



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Native title legislation applies to certain mining tenements within Australia. Australia recognises and protects a form of native title that reflects the entitlement of Aboriginal people to their traditional lands in accordance with their traditional custom and laws. Should native title claims or determinations exist, certain native title processes and procedures will apply under the Native Title Act 1993 (Cth) (the “Native Title Act”) before the tenure is granted. Tenure may be granted subject to conditions relating to native title rights. In the mining context, native title matters are managed as part of the tenement grant process. If disputes arise in relation to the grant of a particular tenement, they can be referred to the National Native Title Tribunal, established under the Native Title Act, for resolution. Native title legislation also provides a framework for compensation to be paid for acts that affect native title rights and interests. Ordinarily, the relevant Commonwealth or State government is liable to pay compensation for acts attributable to it. However, in the state of Western Australia, the Mining Act 1978 (WA) provides that an applicant for the grant of, or the holder of, a mining tenement is responsible for native title compensation, if determined to be payable, to native title holders.

Federal, state and territory Aboriginal and non-Aboriginal heritage laws operate in parallel to the native title legislation. State and territory heritage laws exist predominantly for the purposes of managing the impact of developments on sites, objects and areas of heritage significance. In Western Australia, impacts to Aboriginal cultural heritage are regulated by the Aboriginal Heritage Act 1972 (WA). However, this legislation will be repealed and replaced by the Aboriginal Cultural Heritage Act 2021 (WA) which was enacted in 2021 and is expected to become effective in early 2023. Where an area of heritage significance is placed on the national or world heritage registers, federal approval processes may also apply. To date, there has not been any significant impact on any of AngloGold Ashanti’s tenure due to native title or heritage legislation.

AngloGold Ashanti’s operating properties are located in the state of Western Australia where tenure is issued under, and mining operations are governed by, the Mining Act 1978 (WA). The most common forms of tenure in Western Australia are exploration and prospecting licences, mining leases, miscellaneous licences and general purpose leases. In most Australian states, if the holder of an exploration licence establishes indications of an economic mineral deposit in the area covered by the exploration licence and complies with the conditions of the grant, the holder of the exploration licence has a priority right against all others to be granted a mining lease which gives the holder exclusive mining rights with respect to minerals on the property.

It is possible for an individual or entity to own an area of land (including for infrastructure purposes) and for another individual or entity to be granted the right to explore for or mine any minerals located on or under the surface of the same area. The maximum initial term of a mining lease in Western Australia is 21 years and the holder has the right to renew the lease for an additional 21 years. Subsequent renewals are granted at the discretion of the respective state or territory’s minister responsible for mining rights. In Western Australia, mining leases can only be assigned with the prior written consent of the minister.

Tax laws relating to mining

Government royalties are payable by the holder of mining tenure in respect of minerals obtained from the relevant area of land at the rates specified in the relevant legislation in each state or territory. The royalty on gold production in Western Australia is payable quarterly at a fixed rate of 2.5 percent of the royalty value of gold metal produced. The royalty value is calculated by multiplying the amount of gold produced during a given month by the average gold spot price for that month. In addition, the holder of a mining tenement is required to pay annual rent in respect of the tenement. In Western Australia there is a minimum annual expenditure requirement for prospecting and exploration licences and mining leases. Exemptions from the expenditure requirement can be obtained if certain conditions are satisfied.

Environmental laws relating to mining

Mining tenements will be granted with endorsements and conditions relating to protection of the environment. Exploration and mining operations may also require separate approval from the state, territory or federal environment minister, which may require completion of an environmental impact assessment (including a public consultation period) pursuant to applicable environmental protection legislation prior to commencement. Further, a works 'construction' approval and an operating licence under the relevant environmental protection legislation in the state or territory may also be required for certain mine processing or mining-related operations. Depending on the jurisdiction, additional approvals may be required for the removal of native vegetation within the tenement, and the taking and use of water for exploration and mining operations.

AngloGold Ashanti’s rights and permits

AngloGold Ashanti has been granted 21-year term mining leases with rights of renewal to all of its mining areas in Australia, including its proportionate share of joint venture operations and accordingly it has, together with its joint venture partners where applicable, the exclusive right to mine in those areas. Both the group and its joint venture partners are fully authorised to conduct operations in accordance with relevant laws and regulations. The mining leases and rights of renewal cover the current life-of-mine at AngloGold Ashanti’s operations in Australia.

At Sunrise Dam, one mining lease (M39/1116) covers the deposit and mine infrastructure (approximately 7,808 hectares) and another mining lease (M39/1117) covers the water extraction infrastructure used to supply the operation with water (approximately 1,768 hectares). Both leases are currently in good standing, with expiry dates in 2038.




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The Butcher Well joint venture has security of tenure for all current exploration licences and for the contiguous mining leases that covers its Mineral Resource. There are three mining leases: mining lease (M39/165) which covers 602.35 hectares with expiry date in 2030, mining lease (M39/166) which covers 990 hectares with expiry date in 2030 and mining lease (M39/230) which covers 446.4 hectares with expiry date in 2032.

At Tropicana, the deposit is situated upon a single mining lease (M39/1096) covering approximately 27,228 hectares, which is currently in good standing, with an expiry date in 2036.

AngloGold Ashanti Australia Limited is also conducting early stage exploration activities in Queensland under the Mineral Resources Act 1989 (QLD). AngloGold Ashanti holds 11 exploration permits covering 215,300 hectares. Each permit is granted with an initial term of five years, renewable for two further periods of not more than five years each.


AMERICAS

Argentina

General laws relating to mining and land ownership

Mining regime

The Argentinean Mining Code governs mining activity in the country. Special regimes exist for hydrocarbons and nuclear minerals. In the case of most minerals, the Argentinean Mining Code establishes that the owner of the land is not the owner of the mineral rights; these are held by the national or provincial governments (depending on the location of the minerals). The national or provincial government, as applicable, is required by the Argentinean Mining Code to grant whomever discovers a new mine title to the mining concession.

The Argentinean Mining Code regulates exploration permits as well as mining concessions, or exploitation rights. Exploration permits grant their holders exclusivity rights to any mineral discoveries, including those made by a third party within the exploration area covered by the permit. Exploration permits are limited in time and as to the extent of the exploration area, are subject to the payment of a single-time fee, and also require a minimum exploration work programme and schedule to keep the permit in force. Priority for receiving a mining concession is given to the registered discoverer of the mine, which holds the exploration permit. Once the application for a mine has been submitted, the applicant may commence works and must submit a legal survey of the units requested for the new mine. The application and the legal survey may be opposed by third parties following specific proceedings set forth in the Argentinean Mining Code. Approval and registration of the legal survey by the provincial mining authority constitutes formal title to the mining concession.

Holders of mining concessions must comply with three main conditions: payment of an annual fee, investment of a minimum amount of capital, and the carrying out of a reasonable level of exploitation. Failure to do so could lead to forfeiture of the mining concession, which would then revert back to the Province.

In addition to the Argentinean Mining Code, between 1993 and 1995, Argentina implemented several federal laws to offer foreign companies attractive incentives for exploration and mining in Argentina, the Mining Investment Law (Law No. 24, 196), as amended (the “Mining Investment Law”), and related legal provisions being the most important one. Such incentives include, among other matters, import duty exemptions, accelerated depreciation of fixed assets, a 3 percent cap on provincial royalties set at pit-head value on the mineral extracted, value added tax refunds for exploration-related expenses incurred by companies registered under the Mining Investment Law, and, subject to the filing of a feasibility study for the relevant mining project, a 30-year stability as to the tax burden on the project and the customs and foreign exchange regimes and duties. Cerro Vanguardia S.A. (“CVSA”) obtained its tax, customs and foreign exchange stability certificate in 1996.

Glacier Law

On 30 September 2010, the National Law on Minimum Requirements for the Protection of Glaciers (Law No. 26, 639) (the “Glacier Law”) was enacted in Argentina, banning new mining exploration and exploitation activities on glaciers and “peri-glacial” areas. The Glacier Law establishes a broad definition of “peri-glacial” areas that, together with glacial areas, must be surveyed by an existing national government agency specifically appointed to this end every five years. The area where the Cerro Vanguardia project is located does not include any glaciers or peri-glacial areas according to the inventory of glaciers which was published in June 2018.

Rural Land Law

On 27 December 2011, the Argentinean National Congress passed a law on the Regime for Protection of National Domain over Ownership, Possession or Tenure of Rural Land (Law No. 26, 737) (the “Rural Land Law”) which implemented a set of rules restricting the ownership of rural land by foreigners (including foreign individuals or any kind of legal entity controlled by foreign individuals or legal entities). The main restrictions are as follows: (i) foreigners cannot own in the aggregate more than



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15 percent of the entire rural land of Argentina, the same cap being applicable to each Province and Municipality; (ii) foreigners will not be allowed to purchase more than 1,000 hectares in the so-called “zona núcleo”, which comprises the main agricultural areas of central Argentina or an “equivalent” surface depending on the location of the land and its productive potential; and (iii) foreigners will not be allowed to buy land that contains, or is adjacent to, relevant and permanent water bodies (such as rivers and lakes). Although exploration permits and mining concessions are not the subject matter of the restrictions placed by the Rural Land Law, certain rights granted to foreign mining companies under the Argentinean Mining Code may be restricted by this new law. For example, the right that holders of mining concessions currently have to force the surface owner to sell the land to the holder of the mining concession might be restricted if the concession holder is a foreign individual or a legal entity controlled by foreigners.

Federal Mining Agreement

On 13 June 2017, the national government and the provinces in whose territories the main mining projects of Argentina are located, signed the New Federal Mining Agreement (“FMA”). The purpose of the FMA is, amongst other things, to increase provincial revenues from the mining industry by creating legal entities owned by provincial governments that would work in association with private mining companies. This scheme is not new in Argentina and it has been used by some provincial governments, amongst them the Santa Cruz Province (through Fomicruz), in which the Cerro Vanguardia project is located. The FMA also contemplates other forms of revenues such as the formation of special trusts to be funded by mining companies to finance education, health and other programmes. Additionally, the FMA included setting forth mining royalties up to three percent of the gross value of commercialised minerals, without any deductions other than VAT. As the FMA has not yet been converted into law by the National Congress, its provisions are neither binding nor enforceable.

In Argentina, the current regulatory regime of royalty payments is expected to change and several different options and payment thresholds have been discussed. In December 2012, the Santa Cruz Province changed the mining royalty from one percent to three percent calculated at pit-head value of the mineral extracted thus bringing it to the cap of the Mining Investment Law.

Foreign exchange and export rules

Foreign exchange controls

On 1 September 2019, by means of Executive Decree No. 609/2019 (the “Export Controls Decree”), the Argentinean national government reinstated foreign exchange and export controls. The Export Controls Decree and related regulations of the Central Bank of Argentina impose, among other measures, the obligation of Argentinean residents to transfer to Argentina and/or sell for Argentinean pesos in the Argentinean foreign exchange market (mercado de cambios) the countervalue (contravalor) from their exports of goods within a specified period. The export of goods is regulated by Communication “A” 6882 of the Argentinean Central Bank (as modified) which establishes the specific regulatory requirements to implement the measures adopted by the national government in this area. Prior approval of the Argentinean Central Bank is generally required to access the foreign exchange market for transactions relating to the outflow of funds, except in certain circumstances. Until 30 June 2022, prior approval from the Argentinean Central Bank is not required for payments in connection with the import of goods if certain conditions are satisfied.

CVSA had a cash balance equivalent to $139 million at 31 December 2021. During 2021, AngloGold Ashanti received offshore dividends in a total amount of $19 million (net of withholding taxes) paid in US dollars. Out of the $139 million (equivalent) cash balance, monies equivalent to $131 million 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 $114 million to AngloGold Ashanti. While the approval is pending, the cash remains fully available for CVSA’s operational requirements.

Export duties

On 21 December 2019, the National Law on Social Solidarity and Productive Reactivation (Law No. 27, 541) (the “Solidarity Law”) was enacted. The Solidarity Law granted the national government power until 31 December 2021 to impose export duties which may not exceed certain caps. For example, the Solidarity Law provides that export duties on mining exports cannot exceed 8 percent of the taxable value or official FOB price. On 2 October 2020, the national government published Decree No. 785/2020 (the “Export Duties Decree”) which sets an export duty rate of 8 percent for certain goods, including doré bars and gold alloys, and revoked the provisions of Decree No. 793/2018 which had previously set the export duty at 12 percent ad valorem. While the Export Duties Decree was set to expire at the end of 2021, on 31 December 2021, the national government published Decree No. 908/2021, extending the deadline of export duties on certain goods, including doré bars and gold alloys, until 31 December 2023. It is uncertain whether the national government is empowered to extend such deadline beyond the date set forth in the Solidarity Law. These export duties, if not compensated with other tax reductions, affect the tax stability guarantee granted to CVSA in 1996 in light of the fact that at the time export duties were zero percent.

On 26 February 2019, the Argentinean tax and mining authorities published a resolution (RC 4428/2019) establishing an administrative procedure to be followed to obtain the reimbursement or compensation of federal taxes paid in excess of the total tax burden provided for by the applicable tax stability guarantee. CVSA initiated this new procedure to claim compensation for



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the export duties it paid in 2018 and 2019 as export duties are not contemplated by its tax stability guarantee. Prior to the publication of RC 4428/2019, CVSA had already submitted to the tax authorities claims for reimbursement of the export duties it paid from 2008 to 2015.

Pursuant to the new administrative procedure, the National Mining Secretariat issued favorable opinions regarding CVSA’s claims in respect of fiscal years 2018 and 2019, which amounted to approximately $3.5 million and $10.8 million, respectively, as of 31 December 2021. These claims are currently under review by the relevant customs authorities. On 14 July 2021, CVSA submitted its claim in respect of fiscal year 2020, which amounted to approximately $21.4 million as of 31 December 2021. The National Mining Secretary has not yet issued an opinion regarding this claim. CVSA expects to submit its claim in respect of fiscal year 2021 in due course.

Furthermore, CVSA has requested the tax authorities to apply the procedure provided for in RC 4428/2019 in respect of its historical claims for fiscal years 2008 to 2015 during which the imposition of export duties also exceeded CVSA’s total tax burden under its tax stability guarantee. However, these claims, which amounted to approximately $5.3 million as of 31 December 2021, are still being reviewed under the rules to challenge export duties instead of the new procedure provided for in RC 4428/2019. CVSA has appealed the application of those rules and a decision on this issue is pending.

In total, AngloGold Ashanti’s net export duty receivables (after discounting provisions) in Argentina amounted to $19 million as of 31 December 2021.

Environmental laws relating to mining

Any mining company wishing to commence or modify any mining-related activity, as defined by the Argentinean Mining Code, including prospecting, exploration, exploitation, development, preparation, extraction, and storage of mineral substances, as well as property abandonment or mine closure activity, is required to prepare and submit to the competent provincial environmental authority an Environmental Impact Assessment (“EIA”) prior to commencing the work. Each EIA is required to describe the nature of the proposed work, its potential risk to the environment, and the measures that will be taken to mitigate that risk. If accepted by the competent authority, the EIA is used as the basis to create a Declaration of Environmental Impact (“DEI”) to which the mining company is required to adhere during the mining-related activity at issue. The DEI is required to be updated at least on a biannual basis. Sanctions and penalties for non-compliance with the DEI are outlined in the Environmental Protection section of the Argentinean Mining Code, and may include warnings, fines, suspension of quality certifications, restoration of the environment, temporary or permanent closure of activities, and withdrawal of authorisation to conduct mining-related activities.

AngloGold Ashanti’s rights and permits

The mining concession holder of Cerro Vanguardia, the company’s operation in Argentina, is AngloGold Ashanti’s partner, Fomento Minero de Santa Cruz S.E. (“Fomicruz”), which is wholly owned by the Santa Cruz Province. On 27 December 1996, Fomicruz entered into a usufruct agreement whereby CVSA was granted an irrevocable right to exploit the Cerro Vanguardia deposit (encompassing an area of approximately 543 km2) for a 40-year period. The mining licence (402642/CV/97), which covers the full Mineral Reserve, expires on 26 December 2036. CVSA is a corporation incorporated in Argentina indirectly controlled by AngloGold Ashanti (92.5 percent), with Fomicruz as minority shareholder (7.5 percent). On 14 August 1996, CVSA obtained its tax, customs and foreign exchange stability certificate, which expires in 2026.

Brazil

General laws relating to mining and land ownership

The Brazilian Constitution of 1934 states that, for purposes of exploration and exploitation, deposits and other Mineral Resources constitute property separate from the soil and belong to the Federal Union. Exploration and exploitation of such Mineral Resources may take place only with the Federal Union’s concession and in such a way as to protect the national interest. Federal law sets out penal and administrative sanctions for conduct and activities deemed harmful to the environment.

In Brazil, the National Mining Agency (“ANM”) is the state body within the Mines and Energy Ministry (“MME”) that is responsible for: (i) the registration of mining titles, (ii) the grant of authorisations and concessions, (iii) the supervision of mining activities and mining titleholders, and (iv) the issuance of supplementary rules in relation to mining activity.

Under the current Brazilian Mining Code, there are two kinds of mines: (i) claimstake mines (minas manifestadas), for which rights were acquired before 1934 and exist independently of any mining licence or authorisation from the Federal Government and for which the Mineral Resources constitute property of the landowner, and (ii) granted mines, which are those that rely on grants from the Federal Government for mineral exploration or exploitation (pursuant to the Brazilian Constitution of 1988). AngloGold Ashanti’s operations in Brazil consist of both claimstake mines and granted mines.

Mining activities in granted mines must be performed in two defined stages: (i) exploration, which entails defining and evaluating the deposit and determining the feasibility of exploitation, and (ii) exploitation, which involves coordinating operations aimed at the industrial exploitation of the mineral deposit, from the extraction of useful minerals to their processing. Exploration



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authorisations issued by ANM are valid for one to three years. Extensions can be obtained if necessary, as long as it is justified. In contrast, exploitation rights, once granted, are valid for the lifetime of the deposit, provided the mining titleholder complies with all legal requirements. Pursuant to these requirements, for example, titleholders must (i) start work on mineral exploitation within six months from the date of publication of the Exploitation Concession, (ii) continue their mining activities until the mineral deposit has been exhausted, in accordance with the Economic Exploitation Plan (Plano de Aproveitamento Econômico) approved by ANM, and (iii) refrain from suspending mining activities without prior notice to ANM.

Tax laws relating to mining

During the exploration period, the mining titleholder has to pay an Annual Rate per Hectare (Taxa Annual por Hectare or “TAH”), subject to a maximum value set by law. In the exploitation period, regardless of the legal regime governing the project (whether claimstake or granted mines), the mining titleholder has to pay the Financial Compensation for Exploiting Mineral Resources (Compensação Financeira pela Exploração Mineral or “CFEM”). The CFEM which is 1.5 percent for gold is currently calculated based on revenues.

At the end of 2011 and the beginning of 2012, the states of Minas Gerais, Pará, Amapá and Mato Grosso do Sul each created a new “inspection and control” tax (duty) on extraction and exploration activities as well as on the use of Mineral Resource carried out in those states. In the state of Minas Gerais, gold ore and silver ore are exempted from the collection of this new duty. At the end of 2020, the state of Goiás created a new “inspection and control” tax (duty) on extraction and exploration activities carried out in this state, which currently still needs to be implemented. The constitutionality of these “inspection and control” taxes has been challenged by the National Industry Confederation and the matter is currently pending before the Supreme Court of Brazil.

Environmental laws relating to mining

Following the catastrophic failure of a tailings storage facility (“TSF”) at the Córrego do Feijão iron ore mine owned by Vale at Brumadinho in the state of Minas Gerais in Brazil in January 2019, executive, legislative and judiciary bodies, both at the federal and state levels, have generally increased scrutiny of mining operations in Brazil, and of TSFs in particular, and have been considering, and in some cases have adopted, stricter laws and regulations applicable to the approval, licensing, construction, management, closure and decommissioning of TSFs in Brazil.

At the federal level, the ANM issued Resolution No. 13/19 in August 2019 (replacing its earlier Resolution No. 4/19) which adopted additional regulatory measures to ensure the stability of TSFs, in particular those built or heightened by the upstream method or by any method declared as “unknown”. Among other things, ANM Resolution No. 13/19 prohibits the upstream method for the construction or heightening of tailings dams throughout the national territory of Brazil. It further requires operators to cease all storage and disposal activities at TSFs (known as “deactivation” or “desativação”) constructed or heightened upstream or by an “unknown” method by 15 September 2021 as well as to decommission such TSFs by 15 September 2022 to 15 September 2027 (depending on the capacity volume). To comply with the terms of ANM Resolution No. 13/19, the Serra Grande tailings dam in the state of Goiás must be decommissioned by 15 September 2025. The Serra Grande mine completed the process of reinforcing the dam walls of its upstream TSF, deactivating the TSF and migrating to dry-stacking operations, each by the 15 September 2021 deadline.

Furthermore, Federal Law No. 14.066/20, adopted in October 2020, also imposes requirements on companies to decommission upstream TSFs, including the Serra Grande tailings dam, by 25 February 2022 (which date is earlier than required by ANM Resolution No. 13/19). However, Federal Law No. 14.066/20 does permit extensions of the compliance deadline, with the consent of the ANM based on the technical plan for decommissioning. Serra Grande has submitted timely requests to obtain an extension of the compliance deadline until 2025 in line with the timeline set forth in ANM Resolution No. 13/19 and presented its technical plan for decommissioning. Feedback from the ANM on these requests is currently awaited. With respect to downstream (or “centerline”) TSFs, Federal Law No. 14.066/20 requires companies, to the extent that communities are located in the self-rescue zone of those TSFs, to implement one of the following measures for such structures: either (i) the structure must be deactivated and decommissioned, (ii) the population must be relocated, with reparations for loss of cultural heritage, or (iii) reinforcement works that guarantee the effective stability of the structure must be carried out, by decision of the public authorities, taking into account the previous nature of the dam in relation to the occupation and technical-financial viability of the alternatives. Even if reinforcement works are completed, deactivation and decommissioning of those TSFs will be required at the end of the life of the mine. All of the TSFs operated by AngloGold Ashanti in Brazil have communities located in self-rescue zones.

AngloGold Ashanti is planning to transition to dry-stacking operations for tailings storage at each location in Brazil in the near term. Capital expenditures required in 2021 to implement this restructuringnew technology amounted to approximately $140 million. Capital expenditures for this work during the period 2022-2025 are expected to be material but, based on preliminary estimates to date, AngloGold Ashanti anticipates that annual expenditures for each of these years will be significantly less than in 2021 and will decline over time. Neither ANM Resolution No. 13/19 nor Federal Law No. 14.066/20 requires removal of all tailings material in connection with the decommissioning of TSFs (a process known as “decharacterisation” or “descaracterização”).






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At the state level, the state legislator in the state of Minas Gerais adopted Law No. 23.291/19 in February 2019 which contained the state’s policy on TSF safety and should be implemented in conjunction with the equivalent federal policy. Among other things, Law No. 23.291/19 determines the criteria for licensing and inspecting TSF structures, prohibits TSFs constructed or heightened using the upstream method, establishes bond requirements and holds management liable for non-compliance with its provisions. The government of Minas Gerais adopted several decrees in furtherance of this legislation.

On 16 February 2022, the ANM issued Resolution No. 95/22, which was rectified on 18 February 2022 and became effective on 22 February 2022. ANM Resolution No. 95/22 effectively consolidates prior federal resolutions on TSFs, including ANM Resolution No. 13/19 and establishes new criteria for the operational management of TSF structures, changes the criteria related to the risk classification of TSF structures and emergency levels and imposes deadlines for compliance with obligations, in addition to setting new criteria for suspension, embargo and interdiction of TSF activities.

Further amendments to the regulatory requirements in Brazil governing such TSFs and related dams may be adopted in 2022.

AngloGold Ashanti’s rights and permits

At AGA Mineraçao, Cuiabá has a single mining concession (No. 000.323/1973) covering a total area of 3,662 hectares. In February 2022, two additional mining concessions for Cuiabá (Nos. 830.937/1979 and 831.027/1980) were published, which cover an additional area of 816.2 hectares. Lamego has a single mining concession (No. 932.710/2017) covering a total area of 1,622 hectares. Córrego do Sítio is hosted by five geographically contiguous mining concessions (i.e., Nos. 930.556/2000, 930.181/2008, 830.129/1982, 833.472/2003 and 830.943/1979) covering a total area of 6,017 hectares.

At Serra Grande, the company has interests in or agreements over 25,719.94 hectares in the Crixás greenstone belt, representing approximately 87 percent of the relevant tenements that correspond to all current exploration and mining activities. These have been held since 1987. The mining concessions include mining concession No. 002.286/1935 covering an area of 4,206.88 hectares, mining concession No. 960.658/1987 covering an area of 1,946.89 hectares, mining concession No. 860.746/2005 covering an area of 88.28 hectares, mining concession No. 862.103/1994 covering an area of 125.41 hectares and mining concession No. 804.366/1975 covering an area of 196.05 hectares.

All of the company’s mining concessions in Brazil are currently active, in good legal and operational standing, and free of liabilities and/or major obligations. Brazilian mining concessions remain valid up to the depletion of the Mineral Reserve and Mineral Resource pursuant to the Economic Exploitation Plan approved by the ANM and in accordance with the required environmental permits, and as a result do not have an explicit expiry date.


Colombia

General laws relating to mining and land ownership

General regime

The Colombian Constitution declares that the sub-soil and the non-renewable natural resources located within the Colombian territory are the property of the Colombian State. The underlying principle of Colombian mining legislation for the granting of mining concession contracts over free areas is first in time, first in law. Mining activities are regulated by the Colombian Mining Code, Act 685, 2001.

The filing of an exploration and exploitation proposal triggers a right of preference to obtain rights over the targeted area, provided it is available. Such area cannot exceed 10,000 hectares. Upon receipt of a proposal, the relevant government agency determines whether another proposal or contract already governs the area. If there are no pre-existing claims, the government agency grants the applicant a “free area”.

With respect to land ownership, a mining concession in Colombia does not grant the rights over the surface required to develop a mining project. Therefore, in order to develop a mining project, it is required to acquire and secure access to the land (soil). This can be achieved in several ways, such as (i) purchase of the land, (ii) a transit easement, (iii) a mining easement, and (iv) the special acquisition process or expropriation.

Concession contract

As the sub-soil and the non-renewable natural resources located within the Colombian territory are property of the Colombian State, the Colombian Mining Authority (Agencia Nacional de Minería) grants the authorisation to explore and exploit minerals through a concession contract.

Such concessions allow concessionaires to conduct the studies, works and facilities necessary to establish the existence of minerals and to organise their exploitation. Upon being awarded a mining concession, a company must take out an insurance policy to cover the costs associated with potential environmental damage as well as breaches of its mining obligations. It may



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then proceed with exploration activities. Once the exploration phase is complete, the concessionaire files a new plan regarding proposed works and facilities. With the award of the mining concession or tenement contract, there are specified timelines for the completion of the various phases of a mining project, e.g. exploration, construction, exploitation. The company must comply with these timelines unless performance is suspended, for example, due to force majeure or extensions or modifications to the timelines. A grant of force majeure is for one year and must be renewed on an annual basis. If the company does not comply with the specified timelines for the completion of the various phases of a mining project, the mining authority may revoke the company's concession contracts or mining licences. As a general matter, any company that wishes to obtain a renewal of its concession contract must be up to date in all its legal and contractual obligations and must present a new plan of works and facilities to be implemented after the contract is renewed.

PINES programme

In 2013, the national government instituted the PINES programme designed to aid promoting certain projects that are deemed to have a national interest. This designation provides for greater oversight from the national government. All of our three advanced exploration projects (La Colosa, Quebradona and Gramalote) were considered of national strategic interest. Currently, Quebradona and Gramalote remain in the PINES programme, but La Colosa was temporarily removed as such (until the force majeure is over).

Tax laws relating to mining

From the moment the concession contract is registered with the Mining Register, the concessionaire has several financial obligations, including the payment of (i) a surface fee during the exploration, construction and assembly stage and (ii) royalties.

Once exploration is complete and the mining infrastructure in place, the concessionaire must begin paying royalties to the Colombian government, consisting of a percentage of the primary product and sub-products being exploited. The percentage of the royalty depends on the regulation in force when the concession contract is registered. In the case of the Quebradona project, the deposit mainly consists of copper followed by gold and silver. There is a 5 percent royalty for copper on the production value at the mine’s or well’s edge (i.e. when extracted from the subsoil). In case of gold and silver, a royalty of 4 percent on the production valued at the mine’s or well’s edge (i.e. when extracted from the subsoil) was established.

Furthermore, Colombian law establishes that once the environmental licence is granted the concessionaire must invest 1 percent of the project’s value to benefit the basins covered by the environmental licence.

Environmental laws relating to mining

In order to obtain an authorisation to carry out a mining project, a company must prepare an Environmental Impact Study (“EIA”) for approval by the National Environmental Licensing Authority of Colombia (Autoridad Nacional de Licencias Ambientales or “ANLA”). Global environmental licences are granted for the entire life of the project and cover all phases: construction, assembly, operation, maintenance, dismantling, final restoration, abandonment and/or termination. Construction and assembly permits (Plan de Trabajos y Obras or “PTO”) are granted by the mining authority with jurisdiction over the project.

In Colombia, the mining authority has the discretion to declare the underlying concession void if the specific company which holds the concession breaches applicable environmental laws or regulations. If the mining authority were to exercise such discretion, a company whose concession was voided would be required to abandon its projects and all of its other existing mining concession contracts. Pending proposals for new mining concession contracts would also be cancelled and the company would be banned from doing business with the Colombian government for a period of five years. As a result, the company would be unable to conduct any mining exploration or development activities during such period. However, this would not affect other subsidiaries of the company operating in Colombia, if those concession contracts are held singularly or in concert with joint venture partners.

Mining activity is prohibited in national parks, regional parks, protected forest reserves, paramos (included in Act 1753, introduced in 2015) and wetlands, pursuant to the Ramsar Convention on Wetlands of International Importance.Some forest reserves are not “protected” but are set aside for active forestry purposes and the concessionaire must obtain a specific permit to partially and temporarily change the use of the soil before pursuing exploration activities. In addition, Resolution 187/2016, passed by the national government in late 2016, identifies areas that the Ministry of the Environment has determined to be “paramos” areas, or paramos transition areas. In these areas there are limitations on industrial or commercial work being performed, including mining. The regulation also specifies a process to determine what work, if any, can be performed in a paramos-designated area.

AngloGold Ashanti’s rights and permits

The La Colosa project managed by AngloGold Ashanti Colombia S.A.S. (“AGA Colombia”) remains in force majeure due to delays in granting environmental permits by national and local environmental authorities, thereby preventing AGA Colombia from undertaking further exploration activities. The current one-year grant of force majeure, during which time the specified timelines for completing the various phases of the mining project under the concession contract are suspended, will expire on



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22 June 2022. AGA Colombia applied for a mining area integration (consolidation) of its concession contracts related to La Colosa, in respect of which AGA Colombia was not in compliance with some of the specified timelines. The application for mining area integration (consolidation) was approved in March 2017, which remedied the non-compliance of each consolidated concession and reset the specified timelines. La Colosa now has a single integrated mining concession contract (EIG-163) which covers a total area of 9,210 hectares and expires on 28 February 2037.

Minera de Cobre Quebradona S.A.S. B.I.C. (“MCQ”) which manages the Quebradona project, obtained the integration of concession agreement 5881 in October 2016 and registered in December 2016. As a result, MCQ was granted the exclusive right to explore, take ownership and dispose of the mineral reserves (ore) extracted from the concession area. MCQ has the right to request an extension of up to 30 years, at least two years before the expiration of the operating period. This extension is not automatic, and the request must be filed with new technical, economic, environmental and social studies that demonstrate the status of the mineral resources. Concession contract 5881 initially covered a total area of 7,593 hectares, which was reduced to 4,881.89 hectares by the relevant mining authority (Secretaría de Minas de Antioquia) on 4 March 2022. It will expire in May 2037 and is currently in its sixth year of the integrated exploration phase. In September 2021, the permits for the construction and mining operation were approved by the relevant mining authority (Secretaría de Minas de Antioquia). On 4 November 2021, ANLA officially notified AngloGold Ashanti of its decision to ‘archive’ the environmental licence application relating to the Quebradona project. ANLA has neither denied nor granted the licence, but deemed that the information provided by AngloGold Ashanti is not enough for this authority to take a substantive decision. On 18 November 2021, AngloGold Ashanti appealed the archiving decision in order to secure further details on the specific additional information ANLA requires to make a determination.

The Gramalote project is organised as a joint operation between AngloGold Ashanti (through AGA Colombia Holdings Limited and AngloGold Ashanti Holdings plc) and B2Gold (through B2Gold Corp. and Graminvest Ventures Limited). Gramalote Limited, a company incorporated under the laws of British Virgin Islands which is the legal vehicle operating the joint operation, established a Colombian branch, Gramalote Colombia Limited (“GCL”), to carry out activities in Colombia and obtain the mining concession contracts necessary to develop the Gramalote project. The Gramalote joint operation has been operated by B2Gold since January 2020. Pursuant to an integrated mining concession contract No. 14292, GCL was granted the exclusive right to explore, take ownership and dispose of the mineral reserves (ore) extracted from the concession area (which covers a total area of 8,720.71 hectares and includes the Gramalote and Monjas anomalies) until April 2043. GCL has the right to request an extension of the operating period for up to 20 years, and, if exercised, such request to extend must include new technical, economic, environmental and social studies that demonstrate the status of the mineral resources. Currently, concession contract No. 14292 is in the phase of construction and assembly, pending resettlement of communities and the formal start of construction activities. GCL has received an environmental licence granted by ANLA and permits for the construction and mining operation which were approved by the relevant mining authority (Secretaría de Minas de Antioquia). GCL also holds an exploration concession No. 4894 (which covers a total area of 2,279.32 hectares and includes the Trinidad anomaly) which expires in 2044.

United States of America

Nevada

Mineral and surface rights in the United States are owned by private parties, state governments or the federal government. The majority of land utilised for precious metals exploration, development and mining in the western United States is owned by the federal government. The right to mine on such federal land in western states is governed by the U.S. General Mining Law of 1872, as amended (the “General Mining Law”). The General Mining Law allows mining claims (for mining and mining-related activities) on certain federal lands after proper compliance with claim location and maintenance requirements.

Mineral exploration activities in Nevada are also generally subject to applicable federal, state, and local permitting requirements, but the specific regulatory authorisations required for the company’s activities are based on the nature and location of the exploratory work. Many of the company’s Nevada operations are currently conducted under what is generally referred to under federal law as a notice-level operation subject to 43 CFR § 3809.21, while projects that are more advanced require additional permitting, including a Plan of Operations approved by the federal Bureau of Land Management (“BLM”). The State of Nevada Division of Environmental Protection’s Bureau of Mining Regulation and Reclamation (“BMRR”) also regulates mining within the state of Nevada. However, exploration projects of 5 acres or less, the scope of a notice-level operation under federal law, are exempt from BMRR regulation. Certain of the company’s early-stage exploration activities fall within this exemption.

In Nevada, the company’s wholly-owned subsidiaries hold a significant number of unpatented mining claims on federal lands. This includes approximately 1,600 unpatented claims (covering approximately 32,000 acres) that are now controlled by the company as a result of its acquisition of all of the outstanding stock of Corvus Gold Inc., which closed on 18 January 2022. The company is currently engaged in exploration activities on certain of its unpatented claims that include, but are not limited to, geological and spectral mapping, surface geochemical sampling, geophysical surveying and RC and/or diamond drilling. The main projects of the company in Nevada include the Silicon Project, the North Bullfrog Project and the Mother Lode Project.

In 2021, the state of Nevada enacted a new tax on Nevada gold and silver mines (in addition to the existing Nevada net proceeds of minerals tax, which is a 5 percent net tax). The new mining tax is a 0.75 to 1.1 percent excise tax based on a mine’s annual gross revenue.



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Minnesota

In Minnesota, AngloGold Ashanti Minnesota Inc. completed early-stage reconnaissance exploration activities to determine the potential for gold mineralisation in the northern counties of Minnesota. Based on the achieved results, the company terminated its exploration activities in the state. In early 2021, the company completed closing out its activities in Minnesota in accordance with state and company requirements.

Potential regulatory changes

Over the years, the U.S. Congress has considered a number of proposed amendments to the General Mining Law and other federal statutes relating to mining. Among the significant features contained in previously proposed legislation were a production royalty obligation, new and more stringent environmental standards and conditions, additional reclamation requirements, extensive new procedural steps which would likely result in extended permitting timelines and granting counties and other entities the ability to petition the U.S. Secretary of the Interior to make certain areas unavailable for the location of unpatented mining claims. In June 2020, former President Trump signed an executive order directing certain federal agencies to streamline the review processes associated with permitting of infrastructure and natural resources projects. Many of those policies have subsequently been rescinded by the Biden administration. While certain other executive orders may favorably affect the timing of our permit and project approvals, the impact is yet to be determined and remains uncertain.

AGA is currently unaware of any other new federal or state legislative or regulatory changes or rule-making that has been proposed or enacted that would adversely affect its current exploration programmes. If any requirements, standards or conditions were adopted in the future that imposed additional or new obligations or costs on AGA in connection with our exploration or extraction activities in the United States, the company’s operations in Nevada could be adversely affected.


MINE SITE REHABILITATION AND CLOSURE

Closure, an integral part of operations

All mining operations eventually cease. An integral aspect of operating AngloGold Ashanti’s mines is ongoing planning for and, where feasible, implementation of concurrent rehabilitation, together with an estimate of associated liability costs and the placement of adequate financial provisions and assurances to cover these costs.

All of AngloGold Ashanti’s operations are required to comply with its group closure planning standard, as well as applicable law and regulations, as their closure plans are reviewed and updated.
Closure planning is an activity that starts at the exploration and mine design stage and continues throughout the life of mine:
•New projects include a conceptual closure plan which anticipates future closure and associated rehabilitation activities and related costs.
•The closure plan is reviewed annually and updated every three years (annually in the final three years of a mine’s life) or whenever significant changes are made, taking into account operational conditions, planning and regulatory requirements, advances in international good practice (e.g., ICMM Mine Closure: Good Practice Guide) and technological developments.

For many of the older mines, closure planning and the evaluation of environmental liabilities is a complex process. This is particularly so in Brazil and Ghana, where many of the mining and other operations have taken place for more than fifty years. A particular challenge is concurrent rehabilitation, which is carried out while a mine is still operational. This practice serves to decrease the ultimate liability and reduces the final rehabilitation and closure work that must be undertaken, but has the potential to sterilise Mineral Reserve, which the company might wish to exploit should conditions, such as the gold price, change.

The company’s group closure standard stipulates that closure planning must be undertaken in consultation with the stakeholders. In the course of these consultations, different issues are raised which require site-specific solutions. Livelihood preservation and infrastructure are often key requirements. Communities also require information on the company’s rehabilitation of the landscape and on any lasting environmental impacts. Long-term remediation obligations, including decommissioning and restoration liabilities relating to past operations, are based on environmental management plans and compliance with current environmental and regulatory requirements.

Provisions for decommissioning and rehabilitation costs are made when there is a present obligation, it is probable that expenditure on decommissioning and rehabilitation work will be required and the cost can be estimated within a reasonable range of possible outcomes. These costs are based on currently available facts, technology expected to be available at the time of the rehabilitation, laws and regulations presently or virtually certain to be enacted and previous experience in the rehabilitation of mine sites.

Decommissioning costs and restoration costs are provided at the present value of the expenditures expected to settle the obligation, using estimated cash flows based on current prices. Estimates are discounted at a pre-tax rate that reflects current market assessments of the time value of money.




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Provisions for decommissioning and for restoration (excluding joint ventures and discontinued operations) increased from $674 million in 2020 to $688 million in 2021. This increase mainly relates to changes in discount rates based on global economic assumptions. The provisions were also impacted by changes in mine plans, resulting in a change in cash flows.


SUSTAINABILITY AND ENVIRONMENTAL, SOCIAL AND GOVERNANCE (“ESG”) MATTERS

AngloGold Ashanti’s sustainability approach is fundamental to how the company operates its business, as well as its ability to create long-term value for its shareholders, employees and social partners through safely and responsibly exploring, mining and marketing its products. Sustainability and safety are integrated into the company’s business and operations at all levels through various frameworks, standards and policies, and the company measures its performance in achieving its goals against its sustainability and other ESG metrics, as well as its engagement with stakeholders.

In mitigating the risks and impacts that are an inherent part of its business, AngloGold Ashanti is informed by an annual assessment of its key ESG issues. This process is aligned with guidance published by the International Integrated Reporting Council (“IIRC”), the Sustainability Accounting Standards Board (“SASB”), the Global Reporting Initiative (“GRI”) Standards and the Accountability AA1000 Stakeholder Management Standard. This assessment is annually reviewed by AngloGold Ashanti’s senior leadership and approved by the Social, Ethics and Sustainability Committee (the “SES Committee”).

AngloGold Ashanti’s board of directors, assisted by the SES Committee, has ultimate responsibility over environmental, safety, health and ethical matters and for the integration of sustainability objectives into AngloGold Ashanti’s business. This includes oversight of the company’s stakeholder engagement framework and structures, which apply to investors, employees, governments, suppliers and communities, at every stage of its business from exploration to mine closure. Group Corporate Affairs and Sustainability is responsible for development of management systems and supports the company’s general managers in the day-to-day implementation of its sustainability strategy.

AngloGold Ashanti maintains a set of policies and procedures to guide the company in acting as a responsible corporate citizen, including the Code of Business Principles and Ethics which sets requirements for the implementation of key corporate policies and guidelines and applies to all management and employees, and to maintain compliance with applicable environmental, health and safety (“EHS”) laws. In 2021, AngloGold Ashanti continued with the implementation of the Integrated Sustainability Information Management System (“iSIMS”), in order to improve internal reporting and better integrate and monitor sustainability activities with respect to its broader business. This common reporting system for all sustainability disciplines, from safety, health and security to community and environmental management, is expected to help provide timely information in each of these areas, and to facilitate transparency and decision-making in its processes and practices.

Significant EHS requirements and ESG risks and trends affecting the company’s mining and processing operations are described below.

EHS Regulatory Compliance

AngloGold Ashanti is subject to extensive EHS laws and regulations in the various jurisdictions in which the company operates. These requirements govern, among other things, extraction, use, conservation and discharge of water; air emissions (including dust control and greenhouse gases (“GHGs”)); regulatory and community reporting; clean-up of contamination; land use and conservation of protected areas; rehabilitation and closure of mined land; worker health and safety and community health; and the generation, transportation, storage and disposal of solid and hazardous wastes, such as reagents, radioactive materials, and mine tailings. Environmental laws and regulations applicable to the company’s operations, including the requirements contained in environmental permits, are generally becoming more restrictive.

Capital and operating costs to comply with EHS laws and regulations have been, and are expected to continue to be, significant to AngloGold Ashanti. In addition, AngloGold Ashanti could incur fines, penalties and other sanctions, environmental clean-up costs, and third-party claims for personal injury or property or natural resources damages; suffer reputational damage; and be required to install costly pollution control equipment or to modify or suspend operations, as a result of actual or alleged violations of, or liabilities under, EHS laws and regulations. Failure to comply with applicable EHS laws and regulations may also result in the suspension or revocation of permits and, in some jurisdictions, the right to mine a given concession. AngloGold Ashanti’s ability to obtain and maintain permits and other approvals and to successfully operate near host communities may be adversely impacted by real or perceived effects on the environment or human health and safety associated with AngloGold Ashanti’s or other mining companies’ activities. In addition, unknown environmental hazards may exist at the company’s properties which may have been caused by previous owners or operators.

Water Management

AngloGold Ashanti’s operations are heavily dependent upon access to substantial volumes of water for use in the mining and extractive processes and typically are subject to water-use permits or rights to extract water from certain natural sources that govern usage and require, among other things, that mining operations maintain certain water quality upon discharge. Water supply, quality and usage are areas of concern across all of the company’s operations, including with respect to the company’s



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mining operations in Ghana and Brazil, as well as its mine development project at Quebradona in Colombia, where there is significant potential environmental and social impact and a high level of stakeholder scrutiny. Any failure by the company to secure access to suitable water supplies, or achieve and maintain compliance with applicable requirements of the permits or licences, could result in curtailment or halting of production at the affected operations. Incidents of water pollution or shortage can, in certain cases, lead to community protest and ultimately to the withdrawal of community and government support for AngloGold Ashanti’s operations. A failure by the company to comply with water contamination related directives may result in further, more stringent, directives being issued against the company, which may, in some cases, result in a temporary or partial shutdown of some of the company’s operations.

Where feasible, the company operates a “closed loop” system which recycles the water used in its operations without discharging it to the environment. In some areas, however, such as Ghana and Brazil, high levels of rainfall and surface water runoff mean that a closed loop system is not feasible and that discharges, after water treatment where necessary, must take place.

Waste Management

During open-pit mining, large volumes of soil and/or rock (overburden) are mined to expose the ore body. Similarly, waste rock is mined during drilling and developing access to underground ore bodies. Overburden and waste rock typically contain sub-economic levels of gold and are deposited as large waste rock facilities. Mine tailings are the process waste generated once grinding and extraction of gold from the ore is completed in the milling process and are typically deposited as slurry in large tailing storage facilities (“TSFs”) specifically designed for this purpose.

The impact of dust generation, breach, leak, or other failure of a waste rock facility or TSF, including any associated dam, can be significant, and the company therefore monitors such facilities closely in accordance with the company’s internal standards, independent review, national regulatory requirements, industry standards and commitments made to local communities. The occasional well-publicised failure of a third-party TSF and the potential impact of such failure also mean that these facilities are generally tightly regulated. An incident at the company’s operations could result, among other things, in enforcement, obligations to remediate environmental contamination, negative press coverage, and claims for property or natural resources damages and personal injury by adjacent communities. Incidents at other mining companies’ operations could result in governmental action to tighten regulatory requirements and restrict certain mining activities, in particular with respect to TSFs, also in respect of other mine operators in that region.

For example, following the catastrophic failure of a TSF at the Córrego do Feijão iron ore mine owned by Vale at Brumadinho in the state of Minas Gerais in Brazil in January 2019, tailings were discharged into the mine’s administrative area and part of the local community, reportedly resulting in death or injury to hundreds of people. As a result of this incident, there has been considerably increased regulatory scrutiny in Brazil and other areas on mining operations generally, and the requirements applicable to the approval, licensing, construction, management, closure and decommissioning of TSFs have generally become far more stringent. For further information on the regulatory framework governing TSFs in Brazil, see “Item 4B: Business Overview—The Regulatory Environment Enabling AngloGold Ashanti to Mine—Americas—Brazil”.

In addition, a new Global Industry Standard on Tailings Management (“GISTM”) was established in August 2020 by a panel comprised of industry and non-governmental organisation (“NGO”) experts, the compliance costs of which are not expected to be material to AngloGold Ashanti. AngloGold Ashanti has committed to comply with the GISTM at all of its TSFs by August 2025.

Groundwater Impacts and Environmental Remediation

As AngloGold Ashanti or its predecessors have a long history of mining operations in certain regions, issues may arise regarding historical, as well as potential future, environmental or health impacts in those areas, for which AGA, as the current owner/operator, may be legally responsible. For example, AngloGold Ashanti has identified groundwater contamination plumes at certain of its operations. Numerous scientific, technical and legal studies have been undertaken to assist in determining the magnitude of the impact and to find sustainable remediation solutions. Based on those studies as well as discussion with regulators, the company has taken steps, including monitored natural attenuation and phyto-technologies, to address soil and groundwater contamination.

Subject to the completion of site-specific trials and potential technologies being confirmed as viable remediation techniques, no reliable estimate can be made at this time for the obligation. Should these obligations be significant, this could have a material adverse impact upon AngloGold Ashanti’s results and its financial condition.

Climate Change and GHG Regulation

At AngloGold Ashanti, climate change is a board of directors-level governance issue, overseen by the SES Committee and the Audit and Risk Committee. The Climate Change Working Group, established in 2020 and comprised of functional leaders from across the business, reports to the SES Committee. AngloGold Ashanti’s Climate Change Strategy, which was approved by the board of directors in November 2021, seeks to embed the management of physical, regulatory and transition climate change-related risks, as well as climate change-related opportunities, into the company’s strategic and operational planning processes.



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In 2021, AngloGold Ashanti committed to the International Council on Mining & Metals (“ICMM”) target of achieving net zero Scope 1 and Scope 2 GHG emissions by 2050, and, in partnership with value chain partners, to set Scope 3 GHG reduction targets, if not by the end of 2023, as soon as possible thereafter.

In December 2015, certain members of the international community negotiated a treaty at the Conference of the Parties of the UN Framework Convention on Climate Change in Paris (the “Paris Agreement”). The Paris Agreement, which came into force on 4 November 2016, requires developed countries to set targets for emissions reductions. As a result, measures designed to limit or reduce GHG emissions, both mandatory and voluntary, have been, and are expected to be, implemented at national or regional levels in various countries.

New regulatory requirements, or changes required to effectively transition to a low-carbon economy, could require AngloGold Ashanti to reduce its direct GHG emissions or energy use, change its fuel mix or incur significant costs for GHG emissions permits or taxes, including for those costs or taxes passed on by electricity utilities which supply the company’s operations. AngloGold Ashanti could also incur significant costs associated with capital equipment, GHG monitoring and reporting and other obligations to comply with applicable requirements. The most likely source of these obligations is through state-level implementation of new emissions or financial obligations pursuant to evolving climate change regulatory regimes.

For example, in 2010, Brazil launched the National Climate Change Policy, which established a voluntary national GHG reduction target of 36.1 percent to 38.9 percent below the projected emissions in 2020 for “business as usual”. The policy required the development of sector-specific plans in order to meet the target and provided for a Brazilian GHG trading scheme, which is yet to be designed. While Brazil is not yet requiring mandatory GHG emissions reporting at the national level, some state environmental agencies have requested companies to voluntarily submit GHG emissions management plans. However, the states of Goiás and Minas Gerais (in which AngloGold Ashanti operates) do not currently require GHG emissions management plans for mining projects. In 2015, Brazil announced, in connection with its commitments under the Paris Agreement, economy-wide absolute mitigation targets providing for a 37 percent reduction in GHG emissions by 2025, as compared to 2005, and a goal to reduction emissions by 43 percent by 2030 compared to 2005 levels.

In addition, in Australia, the Safeguard Mechanism (Rule 2015), through the National Greenhouse and Energy Reporting (“NGER”) scheme, provides a framework for Australia’s largest emitters to measure, report and manage their emissions. The Safeguard Mechanism applies to facilities with Scope 1 covered emissions of more than 100,000 tonnes of CO2e per fiscal year. During the 2018/19 fiscal year, Tropicana’s emissions were within its authorised threshold and Sunrise Dam was required to purchase offsets for emissions that were 0.8 percent above its safeguard threshold, the cost of which was immaterial. Two amendments to the Safeguard Mechanism (Rule 2015) enacted in March 2019 and May 2020 allowed for the application of transitional calculated baselines using estimated CO2-e emissions intensities. Based on the production and emissions forecasts, the Australian mining operations applied to use transitional calculated baselines in 2020 for Sunrise Dam and Tropicana, which were approved by the Clean Energy Regulator effective 1 July 2019 to 30 June 2022 for both operations. Thereafter, there is a requirement to apply for production-adjusted baselines. Accordingly, assuming the company’s operations (and resultant emissions) are consistent with the forecasts in the current business plan, the Australian mining operations should not be required to purchase emissions offsets for the business to cover the period prior to June 2022. In any event, the cost of such offsets, if ultimately required to be purchased, including due to a change in the operations under the business plan prior to June 2022, are not anticipated to be material to the company’s business.

In addition to more stringent requirements and commitments, AngloGold Ashanti’s operations are subject to a number of physical risks from climate change, such as changes in rainfall rates or patterns resulting in floods or droughts, reduced water availability, higher temperatures and extreme weather events. Such events or conditions, particularly including flooding or inadequate water supplies, could disrupt mining and transport operations, mineral processing and rehabilitation efforts, create resource or energy shortages or damage the company’s property or equipment and increase health and safety risks on site. In consultation with external consultants, physical climate risk assessments were undertaken for all operations using current climate models for the business and various decarbonisation scenarios and climate adaptation plans were outlined. These adaptation plans continued to be further refined in 2021.

Occupational Safety and Health

AngloGold Ashanti is subject to a variety of laws and regulations in each of the jurisdictions where the company operates that are designed to protect and improve the safety and health of employees. In some of the jurisdictions in which AngloGold Ashanti operates, the government enforces compulsory shutdowns of operations to enable investigations into the cause of accidents at those operations.

Safety remains a priority for AngloGold Ashanti and a focus of AngloGold Ashanti’s long-term sustainability approach, as well as the company’s continuing efforts to manage the risks inherent to its operations, to model critical controls and to strengthen safety protocols and preventative measures. Although AngloGold Ashanti has made significant strides in improving safety in recent years, sadly, the company lost two colleagues during 2021, and some of its operations recorded a year-on-year regression in the all injury frequency rate.




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AngloGold Ashanti’s Group Safety Strategy, which was revised in 2021 and is expected to be implemented by 2024, seeks to integrate operational risk management and key performance indicators at all levels of the organisation and maintain alignment with global safety standards. The SES Committee oversees the implementation of the Group Safety Strategy. All operations, other than Obuasi, have been certified to ISO 45001:2018, which has replaced the OHSAS 18001:2007 series. Obuasi is scheduled to be certified in 2022.

Community Health and Tropical Diseases

AngloGold Ashanti is also subject to health and safety regulations relating to occupational disease. The primary areas of focus in respect of occupational health of employees within the company’s operations are noise-induced hearing loss (“NIHL”) and occupational lung diseases (“OLD”). OLD includes occupational tuberculosis and silicosis in individuals exposed to silica dust. Silicosis has been particularly prevalent in South Africa and has also arisen at the company’s Africa and Brazilian operations, albeit to a far lesser extent. AngloGold Ashanti provides occupational health services to its employees at its occupational health centres, clinics, and through outsourced service centres. The company continues to improve preventative occupational hygiene initiatives, such as implementing various control measures to prevent hazardous exposures, and providing employees with Personal Protective Equipment.

In 2019, the Johannesburg High Court approved the settlement of existing silicosis and tuberculosis class actions against AngloGold Ashanti and other gold mining companies in South Africa. The recent sale of the company’s South African operating assets and liabilities did not include the silicosis or tuberculosis settlement obligations relating to South African employees, which were retained by AngloGold Ashanti. For further information, see “Item 18: Financial Statements—Note 1.2—Accounting Policies—Significant Accounting Judgements and Estimates—Provision for silicosis”.

In addition to OLD, HIV and AIDS and associated diseases remain major health care challenges faced by AngloGold Ashanti’s Africa region operations. AngloGold Ashanti continues to implement programmes to help those infected with HIV and prevent new infections from spreading.

Malaria and other tropical diseases also pose health risks at all of the company’s operations in Central, West and East Africa where such diseases may assume epidemic proportions because of ineffective national control programmes. Malaria is a major cause of death in young children and pregnant women and also gives rise to deaths and absenteeism in adults. All affected company operations have malaria control programmes in place. The Ghana Obuasi malaria control programme continues to roll-out indoor residual spraying programme in 16 districts of Ghana in partnership with the Global Fund and the Ghana Department of Health.

In 2021, the COVID-19 pandemic continued to put strain on businesses and socio-economic systems across the globe, including as new variants of concern emerged and drove considerable resurgences in cases throughout the year. AngloGold Ashanti continued to direct significant resources to pandemic controls within the company as it worked to limit the spread of the virus whilst keeping operations running. The pressure on labour supply, travel restrictions limiting employee mobility and the mental health implications of the ongoing pandemic all also have potential implications for safety training and safe operations. This required AngloGold Ashanti, as well as other businesses, to take extraordinary measures to protect the health and well-being of its employees, to maintain its operations and to contribute to global control efforts. The availability of safe and effective vaccines, albeit at varying scales in the company’s operating countries, provided an additional layer of protection, especially against severe forms of disease, hospitalisation and death. The company endeavoured to provide prompt access to approved and available vaccines for all workers, especially employees considered to be at high risk as well as employees with critical skills. Given the interdependence of employee and community health, the company’s focus remained on implementing measures supporting the health of its employees and local communities.

The emergence of COVID-19 however also assisted to better integrate broad health risk management beyond occupational health into the overall business strategy, to contribute to productivity as well as the social licence to operate and to improve various prevention and risk management protocols in place to address the potential risk of an epidemic or pandemic after its experience with Ebola in Guinea in 2014 and 2015.

This pandemic also highlighted other associated risks and emphasised the importance of optimising mental health, minimising non-communicable diseases associated with lifestyle as well as the need for systematic contribution to health system strengthening, local skill development and overall community development in the jurisdictions in which the company operates. Such risks impair the health of workers and negatively affect productivity and profitability as a result of workers’ diminished focus or skill, absenteeism, treatment costs and allocated resources. As part of AngloGold Ashanti’s continuing efforts, the company recently adopted a set of updated health standards based on identified major health hazards or risks which include gender, cultural and other applicable diversity considerations for risk management and controls.

Diversity and Inclusion (“D&I”)

With more than 30,000 employees (including contractor employees) on four continents, AngloGold Ashanti believes that having a diverse and inclusive workforce is important to continuing to attract talent in order to maintain competitiveness and the long-term



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sustainability of its business. In addition, the company strives to have a workforce that represents the societies in which AngloGold Ashanti operates in connection with maintaining its social licence to operate.

AngloGold Ashanti’s D&I approach is aligned to the United Nation Sustainable Development Goals (“UNSDGs”) (SDG 5, 8 and 10) and the United Nations Global Compact (“UNGC”). The company has developed a Diversity & Inclusion Framework, which aims to foster the empowerment of all staff, irrespective of race, gender, ethnicity, religion and sexual orientation and has established specific priorities and actions for the next two to five years to foster the inclusion of D&I objectives in its processes. Leadership teams are responsible for meeting defined diversity targets. In 2021, regional assessments were conducted to better understand the specific issues associated with increased D&I at mine sites.

Human Rights and Indigenous Peoples

In its commitment to respecting and promoting human rights, AngloGold Ashanti supports the United Nations Guiding Principles for Business and Human Rights (“UNGP”) and other international initiatives, including the UNGC and the Voluntary Principles on Security and Human Rights (“VPSHR”). The VPSHR, which seeks to balance safety and security needs against respect for human rights and fundamental freedoms, were developed through multi-stakeholder participation between governments, extractive industry members and NGOs. Community and security related matters, including with respect to illegal and artisanal and small-scale mining and related intrusions into the company’s operational areas, are addressed at board of directors-level by the SES Committee. AngloGold Ashanti’s internal Human Rights Framework includes numerous policies, management standards and guidance documents which apply to all of its employees, contractors and suppliers and require reporting of, and redress for, human rights violations and related allegations.

The company is aligned with the ICMM Position Statement on Indigenous Peoples and the International Finance Corporation’s Performance Standard 7 on Indigenous Peoples and other international standards and treaties in the area of Indigenous Peoples’ rights.







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ANGLOGOLD ASHANTI GLOBAL OPERATIONS: 2021

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Operations, projects and exploration programmes
AMERICASAFRICA REGIONAUSTRALIA
1 Argentina5 Guinea9 Australia
Cerro Vanguardia (92.5%)Siguiri (85%)Sunrise Dam
2 Brazil6 GhanaButcher Well (70%)
Serra GrandeIduapriemTropicana (70%)
AGA Mineração
Obuasi(3)
3 Colombia7 Democratic Republic of the Congo (DRC)
Gramalote (50%)(1)
Kibali (45%)(4)
La Colosa8 Tanzania
QuebradonaGeita
4USA
Silicon(2)

Percentages indicate the ownership interest of AngloGold Ashanti. All operations are 100%-owned unless otherwise indicated.
(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).




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OPERATING PERFORMANCE

Group description

AngloGold Ashanti, an independent, global gold mining company with a diverse, high-quality portfolio of operations, projects and exploration activities and is headquartered in Johannesburg, South Africa.

In 2021, our portfolio of ten operations in eight countries, includes long-life operating assets with differing ore body types located in key gold-producing regions around the world. These operating assets were supported by three greenfields projects in Colombia and a focused global exploration programme, including exploration in the United States.

Our operations and projects are grouped into the following regions: Africa, Americas and Australia.

On 12 February 2020, the Company announced that it had reached an agreement with Harmony to sell all its remaining South African producing assets and related liabilities. The sale closed on 30 September 2020. On 10 November 2020, the Company announced that it had completed the sale of assets, its interest in the Morila mine in Mali and on 30 December 2020, the Company announced that it had completed the sale of its interest in the Sadiola Mine in Mali.

AngloGold Ashanti’s operations and joint arrangements employed, on average, 30,561 people (including contractors) in 2021 (2020: 36,952).

Performance

In 2021, AngloGold Ashanti produced attributable 2.472 million ounces (Moz) of gold (2020: 2.806Moz, excluding the 241,000oz produced by former South African operations), as well as 3.5Moz of silver and 173 tonnes of sulphuric acid as by-products.

Production of 2.472Moz of gold was achieved at a cost of sales of $2.9 billion and an all-in sustaining cost of $1,441/oz for subsidiaries and $856/oz for equity accounted joint venture operations compared to a production of 2.806Moz in 2020 at a cost of sales of $2.7 billion and all-in sustaining cost of $1,072/oz for subsidiaries and $810/oz for equity accounted joint venture operations.

Gold
The AngloGold Ashanti Mineral Reserve reduced from 29.5Moz in December 2020 to 28.1Moz in December 2021. This annual net decrease of 1.4Moz (5%) includes depletion of 2.6Moz and reductions due to other factors of 2.9Moz. The Mineral Reserve was estimated using a gold price of $1,200/oz, unless otherwise stated (2020: $1,200/oz). Table 2ato Paragraph (b) prepared in accordance with Regulation S-K 1300 (§ 229.1303 (Item 1303)). See "Item 4D Property, Plants and Equipment - Mineral Resource and Mineral Reserve Summary Disclosure".

Copper
The AngloGold Ashanti Mineral 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 or 5%) is due to methodology changes. The Mineral Reserve was estimated at a copper price of $2.90/lb (2020: $2.65/lb). Table 2b to Paragraph (b) prepared in accordance with Regulation S-K 1300 (§ 229.1303 (Item 1303)). See "Item 4D Property, Plants and Equipment - Mineral Resource and Mineral Reserve Summary Disclosure".

Capital expenditure, including equity accounted joint ventures, in 2021 amounted to $1,100 million (2020: $757 million).

Safety

There were regrettably two fatalities across the group’s operations in 2021. The all injury frequency rate was 2.13 per million hours worked compared to 1.68 in 2020 (excluding the former South African assets).




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AFRICA REGION
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Africa is currently are: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).

Attributable gold production
(000oz)		Average number of  
employees  
Subsidiary operations
Ghana
Iduapriem202 1,639 
Obuasi108 3,914 
Guinea
Attr. Siguiri 85%258 3,369 
Tanzania
Geita486 5,884 
Joint venture operations
Democratic Republic of the Congo
Attr. Kibali 45%365 2,454 
West Wits: Mponeng

Surface

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Africa Region - Key Statistics
Unit202120202019
Subsidiary operations
Tonnes treated/milledMt21.2 20.5 19.1 
Pay limitoz/t0.035 0.034 0.039 
g/t1.193 1.160 1.330 
Recovered gradeoz/t0.045 0.052 0.060 
g/t1.54 1.77 1.77 
Gold production (a) (attributable)
000oz1,054 1,143 1,094 
Cost of sales$m1,300 1,232 1,173 
Total cash costs (1)
$/oz991 797 801 
All-in sustaining costs (1)
$/oz1,264 975 947 
Capital expenditure$m434 345 359 
Safety
Number of fatalities120
AIFRPer million hours worked0.61 0.55 0.62 
People
Average no of employees: Total14,806 14,496 12,847 
Permanent employees5,619 5,433 4,940 
Contractors9,187 9,063 7,907 

(a) Includes Obuasi gold production in 2020, capitalised as part of the project development.

Unit202120202019
Joint venture operations
Tonnes treated/milledMt3.5 3.4 7.5 
Pay limitoz/t0.048 0.048 0.037 
g/t1.652 1.640 1.255 
Recovered gradeoz/t0.095 0.096 0.060 
g/t3.25 3.29 1.85 
Gold production (attributable)000oz365 364 445 
Cost of sales$m350 340 428 
Total cash costs (1)
$/oz647 629 657 
All-in sustaining costs (1)
$/oz856 810 767 
Capital expenditure$m72 52 51 
Safety
Number of fatalities(2)
n/an/a0
AIFR (2)
Per million hours workedn/an/a0.65 
People
Average no of employees: Total2,454 2,333 2,939 
Permanent employees860 824 1,191 
Contractors1,594 1,509 1,748 

(1)Total cash costs and all-in sustaining costs are non-GAAP measures. For further information on these non-GAAP measures, see “Item 5A: Operating Results-Non-GAAP analysis”.
(2)Excludes Kibali which is managed by Barrick and not AngloGold Ashanti. For years prior to 2020, amounts are inclusive of amounts pertaining to Sadiola, which was sold in 2020.




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Performance summary

Production for the year was 1.4Moz (2020: 1.6Moz), as the region executes the reinvestment programme and various growth projects.

Higher all-in sustaining cost of was achieved 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).(1)
(1) Includes joint ventures

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.

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 Mineral 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 Mineral 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. Major infrastructure works are required to support the ramp-up to 5,000tpd. 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.



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THE AMERICAS
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The Americas hosts three of our operations – one in Argentina and two in Brazil – as well as two greenfields projects in Colombia and a significant new greenfields development in Nevada in the United States.
Attributable gold production
(000oz)		Average number of  
employees  
Operations
  1.     Argentina
Cerro Vanguardia (Attr. 92.5%)145 1,850 
  2.    Brazil
AGA Mineração331 6,142 
Serra Grande83 1,980 




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Americas - Key Statistics
Unit202120202019
Operation
Tonnes treated/milledMt7.8 7.5 7.3 
Pay limitoz/t0.10 0.07 0.11 
g/t3.49 2.46 3.79 
Recovered gradeoz/t0.066 0.081 0.089 
g/t2.27 2.77 3.04 
Gold production (Attributable)000oz559 649 710 
Silver (attributable)Moz3.2 3.3 3.4 
Cost of sales$m822 764 822 
Total cash costs (1)
$/oz921 721 736 
All-in sustaining costs (1)
$/oz1,587 1,003 1,032 
Capital expenditure (2)
$m398 217 195 
Safety
Number of fatalities100
AIFRPer million hours worked3.55 3.68 3.50 
People
Average no of employees: Total9,972 8,789 8,114 
Permanent employees6,452 6,158 5,869 
Contractors3,520 2,631 2,245 

(1)Total cash costs and all-in sustaining costs are non-GAAP measures. For further information on these non-GAAP measures, see “Item 5A: Operating Results-Non-GAAP analysis”.
(2)100 percent, (not attributable) and includes Colombia.

Performance summary

Production for the year was 559,000oz (2020: 649,000oz), achieved at a total cash cost of $921/oz (2020: $721/oz).

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 18% 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 license 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 license submission that would meet the agency’s requirements.




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A thorough review and analysis of the items and further information identified as part of ANLA’s archiving decision is being undertaken, with the aim of preparing and submitting a new environmental licence request for Quebradona in due course. This process 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 saleCorvus transaction, water rights that will form an important part of various assets including Moab Khotsong and Kopanang,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 restructure ofnext 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 group’s South Africa region, as of 1 March 2018, AngloGold Ashanti ceasedMerlin target near Silicon. The timing for mining activities at the Mother Lode deposit is expected to have underground operationsstart only in the Vaal River area.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.


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.








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Gold production
(000oz)

 
Average number of  
employees  

Operations
South Africa   
  1.   Vaal River
   
Kopanang12
 3,526
Moab Khotsong39
 6,092
  2.   West Wits
   
Mponeng265
 5,400
  3.   Surface operations (1)
171
 2,290
AUSTRALIA
(1)au-20211231_g4.jpg
Includes MWS for purposes of this report. It is operated and managed as a separate cash-generating unit.

South Africa Key Statistics
 Unit 2018
 2017
 2016
Operation       
Tonnes treated/milledMt 34.9
 38.9
 39.6
  Pay limit (1) 
oz/t 0.44
 0.43
 0.37
 g/t 16.11
 15.97
 13.81
  Recovered grade (1) 
oz/t 0.219
 0.202
 0.219
 g/t 6.82
 6.93
 7.51
Gold production (2)
000oz 487
 903
 967
Cost of sales$m 590
 1,129
 1,064
  Total cash costs (3) 
$/oz 1,033
 1,085
 896
  All-in sustaining costs (3)(4) 
$/oz 1,178
 1,245
 1,081
Capital expenditure$m 73
 150
 182
Safety       
Number of fatalities  2
 7
 6
AIFRPer million hours worked 10.25
 12.68
 12.02
People       
Average no of employees: Total  17,308
 26,245
 28,507
Permanent employees  15,557
 22,738
 25,205
Contractors  1,751
 3,507
 3,302
(1)
Refers to underground operations only.
(2)
Includes production ounces from the technology development programme in 2017 and 2016.
(3)
Total cash costs and all-in sustaining costs are non-GAAP measures. For further information on these non-GAAP measures, see “Item 5A: Operating Results-Non-GAAP analysis”.
(4)
Excludes stockpile impairments.

Attributable gold production
(000oz)		Average number of  
employees  
Operations
Australia
1.   Sunrise Dam229 679 
2.   Tropicana 70%265 653 
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%).




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Australia - Key Statistics
Unit202120202019
Operation
Tonnes treated/milledMt10.5 10.2 10.1 
Pay limitoz/t0.06 0.06 0.06 
g/t1.89 1.95 1.95 
Recovered gradeoz/t0.047 0.054 0.060 
g/t1.47 1.68 1.87 
Gold production (attributable)000oz494 554 614 
Cost of sales$m740 705 632 
  Total cash costs (1)
$/oz1,196 968 730 
  All-in sustaining costs (1)
$/oz1,500 1,225 990 
Capital expenditure$m185 143 149 
Safety
Number of fatalities000
AIFRPer million hours worked6.59 3.74 7.33 
People
Average no of employees: Total1,332 1,230 1,140 
Permanent employees288 259 249 
Contractors 1,044 971 891 

(1)Total cash costs and all-in sustaining costs are non-GAAP measures. For further information on these non-GAAP measures, see “Item 5A: Operating Results-Non-GAAP analysis”.

Performance in the South Africa Region in 2018summary

The region has undergone extensive restructuring to ensure its long-term sustainability. The sales of Kopanang and Moab Khotsong, in two separate transactions, were concluded on 28 February 2018. Following these sales, which included the Nuclear Fuels Corporation of South Africa (Nufcor), uranium is no longer produced. TauTona (including its Savuka section) in the West Wits area had been placed on orderly closure in September 2017. Following this restructuring and the sale of assets, AngloGold Ashanti’s South African operations currently are West Wits and Surface Operations.


Production and costs

The South Africa region’s operations produced 487,000ozfor the year was 494,000oz (2020: 554,000oz), achieved at a total cash cost of $1,033/$1,196/oz (2020: $968/oz).

Capital expenditure of $185m (2020: $143m).

Safety performance regressed, from an AIFR of 3.74 per million hours worked in 2018 compared2020, to 903,000oz at a total cash cost6.59. There was no change to the severity of $1,085/oz in 2017. The decrease in production reflects, firstly, the reduction inincidents, but the number of minesincidents increased, attributed to a range of COVID-related factors, including high employee turnover coupled with an increase in the region, with Kopanangproportion of inexperienced workers.

Community investment of $1.01m (2020: $0.81m).

All operations certified in terms of the Cyanide Code, ISO 45000 (health and Moab Khotsong contributing for only two monthssafety) and ISO 14001.

While production declined year-on-year, the Australia assets recorded a stronger second half of the year following their sales on 28 February 2018. Secondly, following TauTona’s being placed on orderly closure in September 2017 there was no production from that mine in 2018. Production from retained operations, that is excluding those assets sold and undergoing orderly closure, was 436,000oz (up 2% year-on-year). At MWS, 2018 production was 103,000oz. Given current market conditions and the decision inwith output improving by 23%, when compared to the first half of 2018 to change its processing strategy, MWS will focus solely on gold recovery in future. The uranium plant has thus ceased operating. A strategic decisionthe year.

At Sunrise Dam the new, higher-grade and shallower Frankie orebody was also made to treat reduced higher-grade volumesaccessed at year-end, and 1.09Mt of ore was mined from the sulphur paydam to ensure responsible reclamation and to facilitate future rehabilitation. Consequently, MWS remained cash positive despite the 5% year-on-year decline in production. Production was mainly impacted bynew, relatively short life Golden Delicious open pit, displacing lower recoveries as a result of carbon management challenges experienced during the third quarter of 2018, which improved toward the end of 2018. Tonnages were also impacted by unplanned stoppages owing to inclement weather and associated power outages. Approximately 167 hours of power failures were experienced in December alone. We engaged with Eskom management, the public power utility, and a protocol was agreed to create flexibility during inclement weather.

Following the sale of the Mispah and West Gold plants, productiongrade stockpile material from the hard-rock dumps was lower compared to 2017. The yield contribution from the West Wits surface sources was also down year-on-year due to the proportion of reclamation from the Savuka marginal ore dumps and tailings storage facilities (TSFs). Accordingly, mining strategies were changed during the third quarter of 2018 andmill feed grades are beginning to improve.

The region’s all-in-sustaining cost of $1,178/oz was five percent lower year-on-year while the total cash cost for the region was $1,033/oz, five percent down on 2017. The reduction in costs was in line with our strategy to ensure that the South African operations could be safely returned to profitability while mitigating job losses. Cost management efforts continue in earnest, aimed at ensuring

that both on- and off-mine cost structures are appropriately resized for the smaller production base. Efforts will continue in 2019 to realise further cost reductions within the off-mine cost structures. Focus has shifted to reducing legacy costs, and the streamlining of systems and work processes to right-size the cost base to the smaller footprint and drive further operational efficiencies through improved productivity. In addition, as part of Mponeng’s safe production strategy to increase face time, a new shift arrangement was agreed with the South African unions. The new shift arrangements were successfully implemented on 12 November 2018 and are expected to help improve productivity. Costs are expected to benefit from improved mining practices and the new shift arrangement.

Capital expenditure

Capital expenditure in the South Africa region was mainly on the Mponeng project. The total capital expenditure in 2018 was $73 million, 51 percent lower year-on-year from 2017 ($150 million), due to the sale of assets early in the year.

Safety

Regrettably, two fatalities occurred in the South Africa region in 2018. One fatality occurred at Mponeng following a fall-of-ground related incident and one fatality occurred at Moab Khotsong in a tramming incident.

Ore Reserve

As at 31 December 2018, the total Ore Reserve for the South African region was 16.8Moz (2017: 23.5Moz). This is equal to 38 percent of the Group’s Ore Reserve. The sales of various assets in the Vaal River region in February 2018 resulted in a decrease in Ore Reserve of 6Moz.

Growth and improvement

At MWS, the AachenTM high-shear reactor technology for the refractory portion of the feedstock was commissioned in October 2018 and is expected to assist in improving recoveries. The planned Kareerand TSF expansion project is undergoing a feasibility study. The technical review is scheduled for the first half of 2019. This project is aimed at facilitating the continued operation of MWS and the associated retreatment of the Vaal River TSFs.

Phase 1 of the Mponeng project: Raiseboring of the reef pass from 123 level to 126 level was completed during 2018 and construction of the tip and control chute began in December 2018. Installation of additional support to consolidate the hanging wall and side walls of the pump chamber and substation will follow in the second half of 2019.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 production ramp upmine plan was adjusted to mitigate this shortfall and reduce the impact on 123 and 126 levels will continue during 2019. Phase 2gold production. Progress in the lower priority (bulk waste) work areas suffered as a consequence, resulting in less waste stripping of cutbacks being carried out.




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SOUTH AFRICA

au-20211231_g5.jpg

The sale of the mine life extension project has been putSouth African assets to Harmony closed on hold due to capital constraints and30 September 2020. As a result, the figures in order to allow for the completion of a feasibility study in 2019. Construction of water management infrastructure is currently behind schedule with the piping installation still outstanding. Construction of ore-handling infrastructure has been completed. ORD at 126 level also encountered areas with higher geological complexity, which required additional secondary support, slowing advance rates.this section relate

The technology and innovation project remains on hold, due to the accelerated closurenine months ended on 30 September 2020, unless the context indicates otherwise.

South Africa Key Statistics
Unit202120202019
Operation
Tonnes treated/milledMt0.4 35.1 
  Pay limit (1)
oz/t0.40 0.33 
g/t14.60 11.90 
  Recovered grade (1)
oz/t0.120 0.183 
g/t3.75 5.69 
Gold production000oz241 419 
Cost of sales$m287 479 
  Total cash costs (2)
$/oz1,149 981 
  All-in sustaining costs (2)
$/oz1,296 1,132 
Capital expenditure$m35 57 
Safety
Number of fatalities40
AIFRPer million hours worked6.12 10.00 
People
Average no of employees: Total— 8,297 7,870 
Permanent employees— 7,012 6,682 
Contractors — 1,285 1,188 
(1)Refers to underground operations only.
(2)Total cash costs and all-in sustaining costs are non-GAAP measures. For further information on these non-GAAP measures, see “Item 5A: Operating Results-Non-GAAP analysis”.



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Table of TauTona. However, work continues to establish the site for the high-strength backfill plant at Mponeng. Delays were encountered in the development of the excavation and it is estimated that plant construction will begin in the first half of 2019.Contents





EXPLORATION REVIEW


Our exploration isprogrammes enable us to ultimately expand our Mineral 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) - to ensure that our exploration activities are focused on creatingmaximising value by providing long-term optionalityfor the business and improvingestablished a system that goes beyond SAMREC (The South African Code for the portfolio quality.Reporting of Exploration Results, Mineral Resources and Mineral Reserves) limitations and allows 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 the capture of geological understanding from the earliest stage of development. In addition to integrating our E4V process with our LOM planning, we have also integrated with our project process and 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.


Brownfields exploration focuses on delivering value through incremental additionsTargeted 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 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 Ore Reserve in existing mines as well as new discoveries in defined areas around existing operations. Brownfields exploration actively drives the creation of value by growing our Mineral Resource and Ore Reserve, our major assets. The brownfields exploration programme is based on innovative geological modelling and mine planning and continual optimisation of our asset portfolio.


Greenfields exploration aims

Our greenfields exploration programmes are designed to discover large, high-value Mineral ResourceResources that will ultimately lead to the development of new gold mines.

In 2018, $29.4 million2021, $31.2m was spent on greenfields exploration and $94.8 million on brownfieldsGreenfields exploration.

Greenfields exploration

Greenfields has Exploration tenements cover over 7,000km24,400km2 of highly prospective ground in threefour countries namely,– Australia, ColombiaBrazil, Argentina and the United States and ground positions in Argentina and Tanzania. TheStates. In total, expenditure in 2018 was $29.4 million including more than 90km114km of diamond, reverse circulation (RC) and aircore drilling.

In Australia, in the Laverton district, the first stage of the Butcher Well and Lake Carey Earn-in with Saracen Mineral Holdings was
completed in late August. AngloGold Ashanti now owns 51 percent of the Butcher Well and Lake Carey tenements. A scoping study on the Butcher Well and Mt Minnie projectsdrilling was completed in July 2018 with positive results. Work completed as part of the agreementGreenfields exploration programmes in 2018 included 38.6km of reverse circulation and diamond drilling, 35km of aircore drilling and 25,034 ground gravity stations. Elsewhere in Australia, reconnaissance exploration drilling and geophysical programs were undertaken on projects east of Kalgoorlie and in north-east Queensland.2021.


In Brazil, after a review of all the exploration results at the Tromai project, AngloGold Ashanti has withdrawn from the farm-in agreement with Equinox after expenditure of $8.7 million. Exploration is now focused on the identification of new greenstone terranes elsewhere in Brazil.

In the United States, Q1 roto-sonic drilling was completed at the Celina project area in Minnesota (100 percent owned by AngloGold Ashanti). Follow up Q4 roto-sonic drilling was undertaken. Aa total of 3.2km25,538m of drilling was completed with results still pending. At the Silicon project in Nevada, AngloGold Ashanti elected to maintain the 100 percent earn-in option on the property for the second year with Renaissance Gold. Two phasesRC and 14,581m of reverse circulation and diamond drilling were completed during the year for 7.6km with encouraging observations. An Induced Polarization orientation survey line completed over the project highlighted an anomalous response in the vicinity of the drilling. Drilling will continue in 2019 to test structural targets within the Silicon-Thompson structural corridor.

In Colombia and Tanzania, exploration programmes are on hold pending an internal review process.


Brownfields exploration

Brownfields exploration was carried out in nine countries, in and around AngloGold Ashanti operations, namely South Africa, Argentina, Brazil, Colombia, Tanzania, Guinea, Ghana, Democratic Republic of the Congo and Australia. A total of 746,046m of diamond and reverse circulation drilling was completed during the year.

South Africa: Exploration continuedyear at Mponeng’s Western Ultra Deep Levels. All these holes target the Ventersdorp Contact Reef. The capital allocation for surfaceSilicon project near Beatty, Nevada. Work focused on expanding the project along strike and at depth. Infill drilling was reducedcompleted 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 120.44m tonnes constrained within a pit optimisation completed at a $1500/oz gold price. Development drilling to expand gold mineralisation and tighten average drill hole UD63A was stopped. Surfacespacing 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 Q4 with systematic talus fines (890 samples) and ridge and spur sampling (225 samples) undertaken at UD61A achieved an advancethe El Cori project.

Brownfields exploration

During 2021, Brownfields exploration activities were undertaken across the globe. We completed 1,059km of 1,166m. 40 percent of the hole depth has been completed after drilling starting in March 2018.

Argentina: At Cerro Vanguardia, the exploration drilling programme was completed with a total expenditure of 8,617m drilled. The trenching programme$84.6m (capital) and $69.2m (expensed) for the year.

Tanzania: Capitalised (underground) and expensed (surface/ underground) drilling programmes completed a total of 21,788m in 309 newly excavated trenches with 355 (9,678m) channels cut. In the surface reconnaissance programme, 129 chip samples were collected over the district. A geochemical sampling programme covering poorly explored areas was undertaken and collected 142 samples of guanaco scats. Ground magnetics surveys covered 125km² and a horizontal loop electromagnetic (HLEM) survey covered 3.19km².

Brazil: In the Iron Quadrangle at total of 163,554m were drilled. At Cuiaba, drilling of the Galinheiro and Galinheiro FW ore bodies intersected economic grades in the shear zone quartz veins as well as in the typical BIF. At Surucucu (SUR), the drilling programme showed the ore body to be uneconomic. Drilling at Fonte Grande Sul (Level 21) showed continuity of high grades down plunge. The VQZ ore body continues to show positive results, with continuity along the plunge. At Dom Domingos, the BIFs are showing an unexpected continuity along strike while the down plunge continuity needs to be tested. Work also continued on the remnant ounce project. The LIB drilling programme commenced in Q4, however experienced significant delays. The hole is likely to be stopped and redesigned.

For the regional targets, at Descoberto underground drilling began in Q4. Even though development restricted drilling from reaching deeper targets, the model indicates that the mineralised structure is continuing along strike and remains open on the eastern and western flanks. At Olhos D’agua the geological map was finalised in the first half of167,392m during the year and drill sites were identified. The IP survey, surface sampling and drill plan as well as the soil sampling has been completed at Biquinha target and a preliminary analysis indicates that there is a gold anomaly southwestcost of Biquinha. At the Cuiabá southwest target line cutting, soil sampling and mapping continued throughout Q4 and two very good intercepts were retuned, which aligned with anomalies in an area with no outcrop.$37.0m.


At Lamego, Cabeça de Pedra continues to return low but economic grades, adding to Mineral Resource. Drilling was completed at CAR SW. The results show the normal limb has constant and continuous regions of high grade while on the inverted limb, the grades are lower and more dispersed with occasional high grades peaks. The drilling does however show the ore bodies are more continuous than expected. Exploration drilling at Córrego do Sítio (CdS) consisted of underground Mineral Resource conversion drilling at Laranjeiras and Carvoaria with the objective of upgrading the confidence in the 2019-2021 mining blocks. At Laranjeiras, significant intercepts were reported up to 300m away from the interpreted geological model towards the South of the mine and indicated continuation of mineralisation. The development of exploration drives in preparation for 2019 drilling progressed. Development at Cachorro Bravo was completed, at Laranjeiras it is ahead of schedule and at Carvoaria development has been delayed.
At Cachorro Bravo (sulphide ore), the surface diamond drilling campaign was completed and the programme verified the continuity of the 102 lens. The Rosalino Target (sulphide ore) diamond drilling was completed from surface. The available drilling results confirm the expected gradescarried out at Star & Comet Cut 2 and thicknesses as well as the possibility of new, deep orebodies. The surface drilling campaign at CdSIII finished in July 2018Cut 3 and the results confirmed the mineralisation along CdSIII’s main strike and further exploration potential has been confirmed for the Jambeiro target.

A total of 87,085m were drilled at Serra Grande. Exploration drilling was completed at Limoeiro Target (Structure IV) and the drilling confirmed both an extension along strike and down dip of the mineralised zone. There was also a positive intersection in Structure IV (Orebody IV). Another significant intersection confirmed the extension of Structure V to a strike length of 7.8km across the Crixás greenstone belt. At Structure A (Cajá Target), intersections confirmed the down plunge potential of the ore body. While at the VQZ S1 orebody drilling also confirmed the down-plunge continuity of the mineralisation. At Inga mine, drilling confirmed the down plunge continuity of mineralisation. The LIB drilling test was successfully executed at Corpo IV to test the down plunge extensions. At Mine III, a borehole confirmed the down plunge continuity of the mineralisation whilst another hole indicates a potential reduction in strike. At Palmeiras South, the first exploratory drill holes were drilled down plunge of the principal excavation, however, delays have been caused by access constraints. At Mangaba, underground drilling intersected significant intercepts on the up-plunge side of the deposit, this resulted in an increase in Mineral Resource. While at Pequizão, positiveassay results confirmed the continuity of Orebody G down plunge.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.


Colombia: A totalAt Nyankanga Block 1 and Block 2, the drilling results confirmed up-dip continuity of 12,151m was drilled at Gramalote. No activities were performed during Q1 due to funding issues. DD focused on the Gramalote Pit in Q2 while grade control drilling continued at Plataforma Norte and Plataforma Sur.

mineralisation for both targets. The La Palmaresults from a short drilling programme was completed in October 2018 with some significant intercepts returned. The metallurgical test work was completed, and no material evidence was found that prevents the treatmentat Block 5 suggest possible down-dip continuity of mineralisation. Drilling results from Geita Hill confirm open-ended down-dip extensions of the ore atzones. At Lone Cone, the designed plant. An exploration programme was completed inresults confirm the area between Manizalesdown-dip continuity of mineralisation and Cristales to identify areas with potential to be included in the formalisation process. The final report is expected by mid 2019 once all the assays are returned.

The La Colosa project continued on care and maintenance in the first quarter after all field activities ceased in April 2017.

At Quebradona, the infrastructure drilling campaign started in May 2018. Prefeasibility work was completed with the feasibility study pre-work drilling campaign being 93.5 percent complete and the test pits 65 percent complete. Geotechnical, hydro geological and metallurgical drilling continued on the mountain with only the tunnel trace drilling remaining. A master 3D fault interpretation was finished using original greenfields information (field mapping and geophysics), photo interpretation (consultant) and mine interpretation (internal). An external audit ofincreased the Mineral Resource and Ore Reserve was successfully concluded in December 2018.model confidence.


Tanzania: A total of 68,435m of drilling was completed in 2018. The mineral rights pertaining to the Roberts area were obtained
and surfaceResults from exploration commenced within the area. Mineral Resource development drilling for the Nyankanga underground projects continued to provide positive results. Drilling at Nyankanga Block 3 Lower, has confirmed the potential down-dip extension of the designed mining stopes that remain open-ended to the east and south-east towards Block 2. The drilling results also confirmed the mineralisation within the defined Block 3 Lower mining stope and beyond, suggesting that Block 3 Lower is connected to Block 3 Upper. Mineral Resource conversion drilling at Nyankanga Block3 Upper, designed to test both down-dip and up-dip continuity, returned positive results. The results suggest up-dip continuity, with a connection to Block 4. Drilling at Block 5 returned significant results which improved Mineral Resource confidence as well as confirming the presence of Block 5 lower. The results confirm the existence of the mineralisation and has identified a high-grade shoot within a low-grade zone located west of the Block 5 lower.

The Star & CometNyamulilima Cut 2’s Mineral Resource model update confirmed the pay ore shoot plunges towards the north. Significant economic intersections were reported which confirmed the down plunge extension of Star & Comet Cut 2 mineralisation below 1000mRL. However, the ore shoot plunge is interrupted by an intrusive body further north. Drilling beyond the intrusive returned significant intersections and warrants the extension of the newly developed decline design. At Star & Comet Cut 3 the drilling

confirmed the downplunge continuity of gold mineralisation which remains open down-plunge and requires further exploration target drilling. An expensed drilling programme was conducted at the Star & Comet northwest extension as part of the preparation for the upcoming downhole electromagnetic survey (DHEM survey). A drilling programme was carried out at Geita Hill Block 1 and 2 and assays from Block 2 drilling have confirmed the expected Mineral Resourcemodel. While the assay results from the sterilisation drilling for a proposed waste dump site returned no significant intersections. While at Xanadu, drilling is in progress and have shown up-dip potentialthe results, so far, do not show obvious down-dip continuity.

Non-drilling exploration programmes consisted of mineralisation which needs follow-up. Assays from block 1 drilling are still pending. Two exploratory holes were completed at Nyankanga Block 5 from surface geological mapping and noneintegration of various geological datasets to better understand the expected mineralisation was intersected duesub-surface geology in an effort to the absence of the geological feature that was anticipated.identify new exploration targets.


Expensed Mineral Resource delineationGuinea: Capitalised and reconnaissanceexpensed drilling programmes were conducted at the Selous and Mabe satellite targets. Most of the holes from Selous returned economic intersections and the current exploration target model suggests economic viability of the project and closer spaced drilling is underway. A detailed target consolidation project for Roberts and Kalondwa Hill was completed which involved detailed field mapping, a review of existing datasets and geological modelling. A review of the Ridge 8 geology was conducted in order to update the geological understanding before Mineral Resource conversion drilling begins.

Guinea: At Siguiri, a total of 86,937m was drilled34,336m during the year. Prefeasibilityyear at a total cost of $7.2m. The 2021 drilling at Foulatawas impacted by contractor changes and Saraya was completed. Reconnaissance drilling to the east and north-west of Foulata and to the west of Saraya are underway and no significant
intersections have been received to date.

The infill programme at Silakoro West is nearing completion, with one drill hole returning a significant intersectiondelay in the breccio-conglomerate unit which confirms the northeast-southwest trend. A change in the designmobilising three of the waste dump area is suggested upon completioncontractor’s new rigs.




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Table of the Silakoro drilling. The corridor drilling results proved that the area is not prospective and that the ground should be released. The Tubani infill drill plan was completed with multiple significant intercepts reported. While at Sokunu, the fresh rock drilling programme showed an extension of the main mineralisation at depth. The Bidini West infill drilling was completed, and material was upgraded to Inferred Mineral Resource.Contents

At Seguelen, sterilisation drilling returned multiple significant intercepts and therefore backfilling of the pit was not recommended. A sterilisation drill programme was also started after it became apparent that a change in design of the Silakoro waste dump could potentially cover a known mineralisation trend. The Eureka North infill drill programme is almost completed and significant intersections received are thinner than interpreted in the Mineral Resource model. This indicates extension of shallow mineralisation in oxide to the southeast. The Sanu Tinti programme is close to completion and multiple significant intersections were received. The main mineralisation does not extend to the north but extension to the south of Sanu Tinti were proven. For Kozan PB3 the infill programme is completed, and significant intersections were reported. In the reconnaissance drilling the TSF and Sintroko West programmes no significant intersections were reported and the targets will be discarded. The Doko reconnaissance programme has just started. While at Kossise in the fresh rock reconnaissance programme some results confirmed the extensions of the mineralisation below Kossise pit in the fresh rock close to the main faults. At Sintroko PB2, significant intersections were received in the interpreted extensions in fresh rock and were restricted to an interval between two major faults.

Ghana: No exploration was conducted at Obuasi. At Iduapriem, 12,964m were drilled. drilling totaled 43,293m at a cost of $5.8m.

Exploration activities during 2021, focused on Mineral Resource conversion drilling at Block 7&8, Ajopa and1 Central, Block 3, Block 5 Ext with reconnaissanceand its Extension, Ajopa South, Ajopa Cut 3, Block 7 and 8 and Badukrom. Regional auger drilling, mapping and geochemical sampling were undertaken at Mile 5W and traverse drilling at the TSF target. Geochemical results from lease wide samples collected from the Teberebie8 and Ajopa leases were received with encouraging results. These will be reviewed and followed up with trenches in 2019. The first interpretationSouthwest, respectively. Follow-up work, inclusive of air core drilling, has been planned for the Iduapriem sedimentary basin based on regional mapping & drilling was completed. There were 3 outcrops observed following a new interpreted trend which corresponds to the southernmost structure.2022.


Democratic Republic of the Congo: ACongo: Capitalised and Expensed drilling programmes, at Kibali, completed a total of 24,954m16,035m during the year at a cost of $5.3m.

Tete Bakangwe was delivered as an opportunity, and post Mineral Resource conversion drilling it has been added to the mine plan for next year.

First phase drilling results testing down plunge continuity of high grade at Kalimva support an underground project. While 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 $6.9m. Exploration was focused on creating new Mineral Resource which could be converted to Mineral Reserve to extend the current life of mine.

In Brazil, at Cuiabá and Lamego a total 151,042m were drilled at Kibali. At KCDa cost of $13.8m.

In Colombia, at Quebradona, work was completed on drillhole relogging, tuff differentiation logging, geometallurgical modelling and geology project support. Preparation and support for the geotechnical campaign including laboratory follow up drillingwas started as were routine measurements of groundwater levels, flow stations and rain stations.

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 test results from a 2017 borehole that intersected the 9000mill, 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 have been introduced to supplement existing operating procedures at Obuasi and 12000 lodes was done. The 5101, 9101 and 9103 high-grade zones withinthey are expected to add about $10 to $20 per tonne to the 9004 lode were confirmed. The KCD 12 000 lode was not intersected. The Mengu Hill models were updatedmine’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 results showdecline.

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.

In Colombia, our proposed Quebradona gold and copper project may take longer to develop than previously anticipated following a decision by Colombian environment agency, ANLA, to archive our environmental licence application. There has also been a request for additional water studies. 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. We will provide an 11 percent decreaseupdate on the timeframe when there is more clarity.

At Gramalote, the feasibility study work completed in tonnes and a four percent increase in grade. Further drilling is required. On the northwest KZ trend in the Marakeke- Mengu Village gap, five trenches were excavated and the updated model indicated that there are three mineralised lenses. In the Aerodrome North – Pamao gap, new data interpretation suggests two mineralised lenses. The main lensearly 2021 has illustrated the potential to positively impactimprove the Aerodrome North pit design and therefore requires further follow up. Meanwhile at Ngyoba (Sessenge – Kibali river gap), the model was confirmed and the mineralisation down plunge is still open. Bottle roll tests across the main orebody were done because of a gold-arsenic association. The results indicated poor recoveries. These results combined with the preliminary gold deportment indicate a refractory ore type which is not economical for an underground project at the current grade. The southwest projectioneconomics of the Sessenge- KCD complex folding corridor supports a structurally complex model for this area with no significant intercepts reported.

At Kalimva Ikamva, a general review aiming to highlight potential opportunity aroundproject by revisiting and further optimising the Kalimva-Ikamva area identified three main targets tooriginal project design included in the existing mining permit. The joint operation partners believe that greater value could be tested in 2019 viz. Ikamva East, Kalimva-Ikamva interpreted fold hinge zone and Ikamva Northwest. At Kombokolo main, analysiscreated through additional drilling of the model was done, and an eastern, more prospective domain identified. One diamond hole was designed, and the hole confirmed the geological model. At Oere, results from a RC programme of twenty holes (1,805m) designed on eight fences supported the model of down dip planar mineralisation along the shear corridor. At Aindi Southwest, the analysis of all resultsInferred portions of the auguring (25 x 400m) highlighted a 2.4km strike length of anomalism, supporting the southwest extension of Aindi Watsa main mineralisation. At Zakitoko-Birindi, assay results support the geological modelMineral Resource area, both within and suggest a steep planar and sigmoidal shaped mineralised zone and confirm the down dip continuity although narrower when comparedadjacent to the results obtained from trenches. At

Birindi, results from the last two trenches support the pinching and swelling nature of the mineralisation as observed at Zakitoko and confirm the potential over the 900m strike length of Birindi.

Mali: No drilling was completed in 2018.

Australia:designed pit. A total of 109,461m of drilling was done at Sunrise Dam. Significant intercepts were reported throughout the year with some encouraging results. Drilling of the Carey Shear Zone intersected mineralisation in an area previously thought to be barren. While at Vogue, drilling demonstrated the continuation of the wide, high grade zones. Drilling also indicated up dip extensions to the Midway Shear Steep ore domains as well as a likely southerly extension of the current ore domains. The has been an increase in confidence in the Elle steep ore zone immediately above MWS Steep, as wide and high-grade infill results have been returned. The MLE4 endowment panel is interpreted to contain some possible southerly extensions to Cosmo East. Results indicate that the most eastern ore domain of Vogue is holding together well with the most significant grades between the Carey Main and Carey 2 shear. A lack of significant intercepts in the bulk of the MLE4 panel suggests the area is unlikely to contain a significant ore body. A wide, high-grade intercept in MLE5 was returned but the intercept is isolated and not close to any current infrastructure. Some high grade and relatively wide intercepts were returned from the northern Astro area. Work is progressing towards building a 3D architectural model of the deposit to help with targeting.

Surface exploration drilling completed six reverse circulation holes (720m) to test a magnetic high cross-cut by northwest-southeast interpreted faults extending between the historic Jubilee pit and the Spartan prospect. Drilling also helped to meet tenement (E39/1729) expenditure requirements.

At Tropicana, a total of 73,494m of drilling was completed. Drilling was focused on the concept, prefeasibility and feasibility study stages of the Boston Shaker underground studies. In the concept study, many significant intercepts were returned showing that mineralisation remains open along strike and down-dip. The feasibility study priority 1 holes have been completed for a Mineral Resource update and four priority 2 holes will be completedis expected in 2019.early 2022. The first phase of aircore drilling in the Southern Traverses region has highlighted some interesting geology andfinal feasibility study results for follow up in 2019. Highly anomalousthe project are currently expected by around August 2022.

The reinvestment programmes underway at our bigger assets – Geita, Tropicana and significant AC intercepts were returned from Angel Eyes WestIduapriem – have progressed well, and a north-north-west trending zoneremain on schedule.




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Table of anomalism is present over 1km strike and is open ended. These intercepts are to be followed up with lake based aircore and diamond drilling programmes in 2019. One mineralised reverse circulation drill intercept was reported from drilling at Wild Thing. While reverse circulation/diamond drilling at the Hidden Dragon Prospect was conducted off the back of 2016/2017 structural reconstruction work. Confirmation was received that the EIS submission to DMIRS for part funding of a drill programme at the Iceberg Prospect was successful. Drilling will be carried out in 2019.Contents

4C.    ORGANISATIONAL STRUCTURE
A trial study on ultrafine soil sampling is planned for early 2019. Preliminary results from a previous two-year study are encouraging and this technique may be applicable to covered terrains, providing a method to quickly and cheaply screen target areas with minimal surface disturbance. A study is also underway on the multi-element geochemical data over the TJV project and the aim is to aid target generation and identify prospective corridors for exploration.

A study is ongoing to characterise the Proterozoic dykes that occur in the Tropicana mine so that these rock types can be distinguished in the grade control drill holes. This will help with ongoing geological modelling of the deposit and grade control models. The granting of the Madras mining lease application as well as other miscellaneous lease applications has been delayed due to a native title claim.



4C.ORGANISATIONAL STRUCTURE


GROUP STRUCTURE


AngloGold Ashanti’s operations are divided into the following regions:


South Africa – West Wits and surface operations;
Continental •Africa – operations in Ghana, Guinea and Tanzania and joint venture operations in the DRC and Mali;DRC;
Australasia•Australia – operations in Australia; and
•Americas – operations in Argentina and Brazil, and exploration projects in Colombia.Colombia and the United States.

The above four regions also correspond to AngloGold Ashanti’s four business segments. The South Africa region is recognised for financial statement purposes as discontinued operations as we sold our remaining South African producing assets and related liabilities in 2020.


Day-to-day management of the group is entrusted to AngloGold Ashanti’s executive management team, chaired by the Chief Executive Officer. See “Item 6: Directors, Senior Management and Employees”.


Support is provided to the executive management team in managing AngloGold Ashanti’s corporate activities at both the central and local levels.


SUBSIDIARIES


AngloGold Ashanti Limited has investments in principal subsidiaries and joint venture interests, see “Item 19: Exhibits – to Form 20-F—Exhibit 19.8 Principal subsidiariesList of AngloGold Ashanti Limited subsidiaries” for details.



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4D.    PROPERTY, PLANTS AND EQUIPMENT

MINERAL RESOURCE AND MINERAL RESERVE SUMMARY DISCLOSURE

On 31 October 2018, the United States Securities and Exchange Commission (“SEC”) adopted Subpart 1300 (17 CFR 229.1300) of Regulation S-K (“Regulation S-K 1300”) along with the amendments to related rules and guidance in order to modernise the property disclosure requirements for mining registrants under the Securities Act and the Securities Exchange Act. Registrants engaged in mining operations must comply with the final rule amendments (Regulation S-K 1300) for the first fiscal year beginning on or after 1 January 2021. Accordingly, the Companyis providing disclosure in compliance with Regulation S-K 1300 for its fiscal year ending 31 December 2021, and will continue to do so going forward. As part of its rulemaking to modernise its disclosure requirements, the SEC rescinded Industry Guide 7, which accordingly is not applicable to the Company’s current and future disclosures.

Mineral Resource and Mineral Reserve are estimates that contain inherent risk and depend upon geologic interpretation and statistical inferences drawn from drilling and sampling analysis, which may prove to be unreliable. For additional information on the risks and uncertainties associated with AngloGold Ashanti’s mining properties, see “Item 3D: Risk Factors"

Locations of properties
au-20211231_g6.jpg




89

The locations of AngloGold Ashanti’s operations and advanced projects are shown above. Locality maps showing the location of properties as well as infrastructure and licences are also shown per operation or project in the Individual Property Disclosure section in Item 4D. Percentages indicate the ownership interest held by AngloGold Ashanti. All operations are 100 percent owned unless otherwise indicated.

Overview of Mining properties and operations

Refer to “Item 4B: Business Overview—Operating Performance” for the aggregate annual production for the properties during each of the three most recently completed fiscal years preceding the filing.

The following information is detailed for each material property in the Individual Property Disclosure section in Item 4D of this report:
•The location of the properties;
•The type and amount of ownership interests;
•The identity of the operator or operators;
•Titles, mineral rights, leases or options and acreage involved;
•The stages of the properties (exploration, development or production);
•Key permit conditions;
•Mine types and mineralisation styles; and
•Processing plants and other available facilities.

Price assumptions

The Mineral Resource and Mineral Reserve are based on reasonable economic assumptions which provide a reasonable basis for establishing the reasonable prospects of economic extraction for Mineral Resource, and for establishing the expected price for the Mineral Reserve. These economic assumptions include long-range commodity price and exchange rate forecasts and management estimates. These economic assumptions are reviewed annually and are prepared in-house using a range of techniques including historic price averages. AngloGold Ashanti selects a conservative Mineral 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.

In the case of Sunrise Dam, the 2021 Mineral 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 Mineral Reserve growth the initial step in a move towards realising the full asset potential. The Mineral 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 Mineral Reserve life. This has meant that significant marginal material was included in the plan in order to keep the plant operating entitiesat full capacity.

The Mineral 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 Mineral Reserve.

Gold price

The following local prices of gold were used as a basis for estimation in the December 2021 declaration, unless otherwise stated:
Local prices of gold(4)
Gold priceAustraliaBrazilArgentinaColombia
$/ozAUD/ozBRL/ozARS/ozCOP/oz
2021 Mineral Reserve(3)
1,2001,6336,182134,4523,849,000
2020 Mineral Reserve(2)
1,2001,6045,510119,6314,096,877
2021 Mineral Resource(1)
1,5002,0727,940173,0655,336,250

(1) Reported for the first time under Regulation S-K 1300.
(2) Reported under Industry Guide 7.
(3) Reported under Regulation S-K 1300.
(4) Considered over the period 2011 to 2021.




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Copper price

The following copper price was used as a basis for estimation in the December 2021 declaration:
Copper price(5)
$/lbCOP/lb
2021 Mineral Reserve(4)
2.909,302
2020 Mineral Reserve(3)
2.659,047
2021 Mineral Resource(1)
3.5012,451

The Mineral Resource, as reported, is exclusive(2) of the Mineral Reserve component. Mineral Resource and Mineral Reserve estimates are reported as at 31 December 2018”2021 and are net of 2021 production depletion.

MINERAL RESOURCE

This is the first time that AngloGold Ashanti has reported Mineral Resource in the Form-20F and as such it cannot be compared to a previous reporting period.

Gold

The AngloGold Ashanti gold Mineral Resource(1) (exclusive of Mineral Reserve(2)), as at 31 December 2021, includes 51.72Moz Measured and Indicated Mineral Resource and 42.34Moz Inferred Mineral Resource. The Mineral Resource was estimated using a gold price of $1,500/oz, unless otherwise stated. Refer to Table 1a to Paragraph (b) prepared in accordance with Regulation S-K 1300 (§ 229.1303 (Item 1303)).

Copper

The AngloGold Ashanti copper Mineral Resource(1) (exclusive of Mineral Reserve(2)), as at 31 December 2021, includes 1.32Mt (2,902Mlb) Measured and Indicated Mineral Resource and 1.47Mt (3,231Mlb) Inferred Mineral Resource. The Mineral Resource was estimated at a copper price of $3.50/lb. Refer to Table 1b to Paragraph (b) prepared in accordance with Regulation S-K 1300 (§ 229.1303 (Item 1303)).

MINERAL RESERVE

Gold

The AngloGold Ashanti Mineral Reserve reduced from 29.5Moz in December 2020(3) to 28.1Moz in December 2021(4). This annual net decrease of 1.4Moz (5%) includes depletion of 2.6Moz and reductions due to other factors of 2.9Moz. This includes the exclusion of the Gramalote Mineral Reserve of 1.7Moz as AngloGold Ashanti are currently incorporating additional drilling into a revised model and have not reached agreement with the joint operation partner and thus no Mineral Reserve will be published). This decrease was partially offset by additions due to exploration and modelling changes of 4.1Moz. The Mineral Reserve was estimated using a gold price of $1,200/oz, unless otherwise stated (2020: $1,200/oz). Table 2ato Paragraph (b) prepared in accordance with Regulation S-K 1300 (§ 229.1303 (Item 1303)).

Copper

The AngloGold Ashanti Mineral Reserve increased from 1.41Mt (3,105Mlb) in December 2020(3) to 1.47Mt (3,250Mlb) in December 2021(4). This gross annual increase of 0.07Mt (145Mlb or 5%) is due to methodology changes. The Mineral Reserve was estimated at a copper price of $2.90/lb (2020: $2.65/lb). Table 2bto Paragraph (b) prepared in accordance with Regulation S-K 1300 (§ 229.1303 (Item 1303)).



(1)     Reported for details.the first time under Regulation S-K 1300 and thus no net difference can be reported.

4D.PROPERTY, PLANTS AND EQUIPMENT

(2)     The Mineral Resource exclusive of Mineral Reserve (“Exclusive Mineral Resource”) is defined as the Inclusive Mineral Resource less the Mineral Reserve before dilution and other factors are applied.
(3)     Reported under Industry Guide 7.
(4)     Reported under Regulation S-K 1300.
(5) Considered over the period 2011 to 2021.



91

Table 1a to Paragraph (b) prepared in accordance with Regulation S-K 1300 (§ 229.1303 (Item 1303)) - Summary Mineral Resource(1) (exclusive of Mineral Reserve) for gold at the end of the Fiscal Year ended 31 December 2021 based on $1,500/oz, unless otherwise stated.

Mineral Resource (1)
MeasuredIndicatedMeasured and Indicated TotalInferred
Gold
Tonnes (3)
GradeContained Gold
Tonnes (3)
GradeContained Gold
Tonnes (3)
GradeContained Gold
Tonnes (3)
GradeContained Gold
as at 31 December 2021Milliong/tTonnesMozMilliong/tTonnesMozMilliong/tTonnesMozMilliong/tTonnesMoz
Continental Africa Region13.16 3.98 52.32 1.68 179.46 2.36 422.86 13.60 192.61 2.47 475.18 15.28 179.17 3.43 613.98 19.74 
Democratic Republic of Congo7.62 3.19 24.29 0.78 19.82 2.76 54.63 1.76 27.45 2.88 78.92 2.54 10.29 2.70 27.74 0.89 
Kibali (45 percent)(2)(7)(8)(13)
7.62 3.19 24.29 0.78 19.82 2.76 54.63 1.76 27.45 2.88 78.92 2.54 10.29 2.70 27.74 0.89 
Ghana4.09 5.27 21.55 0.69 67.20 3.55 238.27 7.66 71.28 3.64 259.82 8.35 77.50 5.35 414.90 13.34 
Iduapriem(13)
1.52 0.72 1.10 0.04 41.39 1.37 56.69 1.82 42.91 1.35 57.80 1.86 27.34 1.47 40.24 1.29 
Obuasi(12)
2.57 7.97 20.45 0.66 25.81 7.04 181.57 5.84 28.37 7.12 202.02 6.50 50.15 7.47 374.66 12.05 
Guinea— — — — 64.26 1.12 71.81 2.31 64.26 1.12 71.81 2.31 60.91 1.15 70.06 2.25 
Siguiri (85 percent)(2)(13)
— — — — 64.26 1.12 71.81 2.31 64.26 1.12 71.81 2.31 60.91 1.15 70.06 2.25 
Tanzania1.44 4.49 6.47 0.21 28.18 2.06 58.15 1.87 29.62 2.18 64.63 2.08 30.48 3.32 101.29 3.26 
Geita(13)
1.44 4.49 6.47 0.21 28.18 2.06 58.15 1.87 29.62 2.18 64.63 2.08 30.48 3.32 101.29 3.26 
Americas Region64.29 1.50 96.24 3.09 1,106.42 0.86 952.57 30.63 1,170.71 0.90 1,048.82 33.72 767.37 0.75 576.25 18.53 
Argentina4.33 2.66 11.53 0.37 19.73 2.15 42.41 1.36 24.07 2.24 53.93 1.73 4.96 2.35 11.65 0.37 
Cerro Vanguardia (92.5 percent)(2)(4)(13)
4.33 2.66 11.53 0.37 19.73 2.15 42.41 1.36 24.07 2.24 53.93 1.73 4.96 2.35 11.65 0.37 
Brazil14.81 4.58 67.78 2.18 22.99 3.17 72.82 2.34 37.80 3.72 140.61 4.52 55.54 3.63 201.60 6.48 
AGA Mineração - Corrego do Sitio(13)
2.24 3.07 6.88 0.22 6.02 3.09 18.62 0.60 8.26 3.09 25.49 0.82 16.54 3.99 65.95 2.12 
AGA Mineração - Cuiabá(5)(13)
4.70 7.74 36.40 1.17 3.47 5.43 18.83 0.61 8.17 6.76 55.23 1.78 12.87 4.94 63.63 2.05 
AGA Mineração - Lamego(5)(13)
2.12 3.23 6.86 0.22 2.59 2.41 6.24 0.20 4.71 2.78 13.10 0.42 4.92 3.01 14.80 0.48 
Serra Grande(13)
5.74 3.08 17.65 0.57 10.92 2.67 29.14 0.94 16.66 2.81 46.79 1.50 21.22 2.70 57.22 1.84 
Colombia45.15 0.37 16.93 0.54 1,063.69 0.79 837.35 26.92 1,108.84 0.77 854.27 27.47 586.42 0.44 258.05 8.30 
Gramalote (50 percent)(2)(9)(10)(11)
— — — — 81.29 0.75 61.14 1.97 81.29 0.75 61.14 1.97 62.59 0.52 32.55 1.05 
La Colosa(9)(11)
— — — — 833.49 0.87 726.31 23.35 833.49 0.87 726.31 23.35 217.89 0.71 154.86 4.98 
Quebradona(4)(6)(12)
45.15 0.37 16.93 0.54 148.91 0.34 49.89 1.60 194.06 0.34 66.82 2.15 305.94 0.23 70.64 2.27 
United States of America— — — — — — — — — — — — 120.44 0.87 104.96 3.37 
Silicon(4)(11)
— — — — — — — — — — — — 120.44 0.87 104.96 3.37 
Australasia Region29.92 1.25 37.49 1.21 33.13 1.42 47.21 1.52 63.05 1.34 84.69 2.72 50.07 2.53 126.83 4.08 
Sunrise Dam(13)
12.16 1.63 19.82 0.64 16.50 1.60 26.48 0.85 28.66 1.62 46.29 1.49 23.60 2.36 55.67 1.79 
Butcher Well (70 percent)(2)(11)
— — — — — — — — — — — — 2.69 3.77 10.14 0.33 
Tropicana (70 percent)(2)(13)
17.76 0.99 17.67 0.57 16.63 1.25 20.73 0.67 34.39 1.12 38.40 1.23 23.78 2.57 61.02 1.96 
AngloGold Ashanti Total107.37 1.73 186.05 5.98 1,319.01 1.08 1,422.64 45.74 1,426.38 1.13 1,608.69 51.72 996.61 1.32 1,317.06 42.34 




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Rounding off numbers may result in computational discrepancies in the Mineral Resource tabulations. The Mineral Resource estimates with respect to our properties have been prepared by the Qualified Persons (employed by AngloGold Ashanti unless stated otherwise) referred to in the Technical Report Summaries filed as Exhibits to the Form 20-F. The Mineral Resource is reported for the first time under Regulation S-K 1300 and thus no net difference can be reported. (1) All disclosure of Mineral Resource is exclusive of Mineral Reserve. The Mineral Resource exclusive of Mineral Reserve (“Exclusive Mineral Resource”) is defined as the inclusive Mineral Resource less the Mineral Reserve before dilution and other factors are applied. (2) Mineral Resource attributable to AngloGold Ashanti’s percentage interest shown.
(3) Tonnes refers to a metric tonne which is equivalent to 1000 kilograms.
(4) The inclusive Mineral Resource contains 78.5Moz of silver for Cerro Vanguardia; 92.9Moz of silver for Quebradona and 14.2Moz of silver for Silicon as a by-product.
(5) The inclusive Mineral Resource contains 1.71 million tonnes of sulphur as a by-product for AGA Mineração - Cuiabá and Lamego.
(6) The inclusive Mineral Resource contains 89.3 kilotonnes of molybdenum as a potential by-product. (7) AngloGold Ashanti has recognised that in preparing this report, the Qualified Persons have, relied on information provided by Barrick. (8) Operated by Barrick. (9) Based on $1,400/oz. (10) Managed by B2Gold Corp. The Mineral Resource is estimated by AngloGold Ashanti. (11) Property currently in an exploration stage. (12) Property currently in a development stage. (13) Property currently in a production stage.

Table 1b to Paragraph (b) prepared in accordance with Regulation S-K 1300 (§ 229.1303 (Item 1303)) - Summary Mineral Resource(1) (exclusive of Mineral Reserve) for copper at the end of the Fiscal Year ended 31 December 2021 based on $3.50/lb, unless otherwise stated.

Mineral Resource (1)
MeasuredIndicatedMeasured and Indicated TotalInferred
Copper
Tonnes (2)
GradeContained Copper
Tonnes (2)
GradeContained Copper
Tonnes (2)
GradeContained Copper
Tonnes (2)
GradeContained Copper
as at 31 December 2021Million%CuTonnes MillionPounds MillionMillion%CuTonnes MillionPounds MillionMillion%CuTonnes MillionPounds MillionMillion%CuTonnes MillionPounds Million
Americas Region45.15 0.69 0.31 684 148.91 0.68 1.01 2,218 194.06 0.68 1.32 2,902 305.94 0.48 1.47 3,231 
Colombia45.15 0.69 0.31 684 148.91 0.68 1.01 2,218 194.06 0.68 1.32 2,902 305.94 0.48 1.47 3,231 
Quebradona(3)(4)(5)
45.15 0.69 0.31 684 148.91 0.68 1.01 2,218 194.06 0.68 1.32 2,902 305.94 0.48 1.47 3,231 
AngloGold Ashanti Total45.15 0.69 0.31 684 148.91 0.68 1.01 2,218 194.06 0.68 1.32 2,902 305.94 0.48 1.47 3,231 

Rounding off numbers may result in computational discrepancies in the Mineral Resource tabulations. The Mineral Resource estimates with respect to our properties have been prepared by the Qualified Persons (employed by AngloGold Ashanti unless stated otherwise) referred to in the Technical Report Summaries filed as Exhibits to the Form 20-F. The Mineral Resource is reported for the first time under Regulation S-K 1300 and thus no net difference can be reported. (1) All disclosure of Mineral Resource is exclusive of Mineral Reserve. The Mineral Resource exclusive of Mineral Reserve (“Exclusive Mineral Resource”) is defined as the Inclusive Mineral Resource less the Mineral Reserve before dilution and other factors are applied.
(2) Tonnes refers to a metric tonne which is equivalent to 1000 kilograms. (3) The inclusive Mineral Resource contains 92.9Moz of silver as a by-product.
(4) The inclusive Mineral Resource contains 89.3 kilotonnes of molybdenum as a potential by-product. (5) Property currently in a development stage.







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Table 2a to Paragraph (b) prepared in accordance with Regulation S-K 1300 (§ 229.1303 (Item 1303)) - Summary Mineral Reserve for gold at the end of the Fiscal Year ended 31 December 2021 based on $1,200/oz, unless otherwise stated.
Mineral ReserveProvenProbableTotal Mineral Reserve
Gold
Tonnes (2)
GradeContained Gold
Tonnes (2)
GradeContained Gold
Tonnes (2)
GradeContained Gold
as at 31 December 2021Milliong/tTonnesMozMilliong/tTonnesMozMilliong/tTonnesMoz
Continental Africa Region41.33 2.58 106.54 3.43 183.69 2.72 499.29 16.05 225.02 2.69 605.84 19.48 
Democratic Republic of Congo14.35 3.76 54.01 1.74 23.04 3.50 80.71 2.59 37.40 3.60 134.72 4.33 
Kibali (45 percent)(1)(5)(6)(10)
14.35 3.76 54.01 1.74 23.04 3.50 80.71 2.59 37.40 3.60 134.72 4.33 
Ghana6.88 5.57 38.34 1.23 83.32 3.59 299.46 9.63 90.20 3.75 337.80 10.86 
Iduapriem(10)
2.15 0.68 1.46 0.05 57.25 1.39 79.32 2.55 59.40 1.36 80.78 2.60 
Obuasi(9)
4.73 7.79 36.88 1.19 26.07 8.45 220.14 7.08 30.80 8.34 257.02 8.26 
Guinea17.91 0.63 11.36 0.37 49.80 0.80 39.67 1.28 67.72 0.75 51.03 1.64 
Siguiri (85 percent)(1)(10)
17.91 0.63 11.36 0.37 49.80 0.80 39.67 1.28 67.72 0.75 51.03 1.64 
Tanzania2.19 1.30 2.84 0.09 27.52 2.89 79.45 2.55 29.71 2.77 82.29 2.65 
Geita(10)
2.19 1.30 2.84 0.09 27.52 2.89 79.45 2.55 29.71 2.77 82.29 2.65 
Americas Region11.11 2.70 29.99 0.96 141.28 1.03 146.01 4.69 152.40 1.15 176.00 5.66 
Argentina4.19 2.04 8.54 0.27 8.12 2.08 16.88 0.54 12.31 2.07 25.42 0.82 
Cerro Vanguardia (92.5 percent)(1)(3)(10)
4.19 2.04 8.54 0.27 8.12 2.08 16.88 0.54 12.31 2.07 25.42 0.82 
Brazil6.93 3.10 21.45 0.69 13.15 3.67 48.29 1.55 20.07 3.47 69.74 2.24 
AGA Mineração - Corrego do Sitio(10)
1.10 1.99 2.18 0.07 3.36 2.85 9.57 0.31 4.46 2.63 11.75 0.38 
AGA Mineração - Cuiabá(4)(10)
2.08 4.65 9.67 0.31 5.80 4.70 27.29 0.88 7.89 4.69 36.97 1.19 
AGA Mineração - Lamego(4)(10)
0.46 2.55 1.17 0.04 0.90 2.92 2.63 0.08 1.36 2.80 3.79 0.12 
Serra Grande(10)
3.29 2.56 8.44 0.27 3.08 2.85 8.79 0.28 6.37 2.70 17.23 0.55 
Colombia— — — — 120.01 0.67 80.83 2.60 120.01 0.67 80.83 2.60 
Gramalote (50 percent)(1)(7)(8)
— — — — — — — — — — — — 
Quebradona(3)(9)
— — — — 120.01 0.67 80.83 2.60 120.01 0.67 80.83 2.60 
Australasia Region26.41 1.46 38.43 1.24 25.31 2.13 54.04 1.74 51.73 1.79 92.47 2.97 
Sunrise Dam(10)
12.18 1.50 18.30 0.59 9.40 2.38 22.34 0.72 21.58 1.88 40.64 1.31 
Tropicana (70 percent)(1)(10)
14.24 1.41 20.14 0.65 15.91 1.99 31.70 1.02 30.15 1.72 51.84 1.67 
AngloGold Ashanti Total78.86 2.22 174.97 5.63 350.28 2.00 699.34 22.48 429.14 2.04 874.31 28.11 

Rounding off numbers may result in computational discrepancies in the Mineral Reserve tabulations. The Mineral Reserve estimates with respect to our properties have been prepared by the Qualified Persons (employed by AngloGold Ashanti unless stated otherwise) referred to in the Technical Report Summaries filed as Exhibits to the Form 20-F. The net difference between the Mineral Reserves at the end of the last completed fiscal year and the preceding fiscal year will be detailed in the Individual Property Disclosure Section. (1) Mineral Reserve attributable to AngloGold Ashanti’s percentage interest shown.
(2) Tonnes refers to a metric tonne which is equivalent to 1000 kilograms.
(3) The Mineral Reserve contains 20.5Moz of silver for Cerro Vanguardia and 28.1Moz of silver for Quebradona to be recovered as a by-product.
(4) The Mineral Reserve contains 0.43 million tonnes of sulphur to be recovered as a by-product for AGA Mineração - Cuiabá and Lamego.



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(5) AngloGold Ashanti has recognised that in preparing this report, the Qualified Persons have, relied on information provided by Barrick. (6) Operated by Barrick. (7) Managed by B2Gold Corp. (8) At Gramalote, AngloGold Ashanti is currently incorporating additional drilling into a revised model and have not reached agreement with the joint operation partner and thus no Mineral Reserve will be published. Current stage of the property is at exploration stage.(9) Property currently in a development stage. (10) Property currently in a production stage.

Table 2b to Paragraph (b) prepared in accordance with Regulation S-K 1300 (§ 229.1303 (Item 1303)) - Summary Mineral Reserve for copper at the end of the Fiscal Year ended 31 December 2021 based on $2.90/lb, unless otherwise stated.

Mineral ReserveProvenProbableTotal Mineral Reserve
Copper
Tonnes (1)
GradeContained Copper
Tonnes (1)
GradeContained Copper
Tonnes (1)
GradeContained Copper
as at 31 December 2021Million%CuTonnes MillionPounds MillionMillion%CuTonnes MillionPounds MillionMillion%CuTonnes MillionPounds Million
Americas Region— — — — 120.01 1.23 1.47 3,250 120.01 1.23 1.47 3,250 
Colombia— — — — 120.01 1.23 1.47 3,250 120.01 1.23 1.47 3,250 
Quebradona(2)(3)
— — — — 120.01 1.23 1.47 3,250 120.01 1.23 1.47 3,250 
AngloGold Ashanti Total— — — — 120.01 1.23 1.47 3,250 120.01 1.23 1.47 3,250 

Rounding off numbers may result in computational discrepancies in the Mineral Reserve tabulations. The Mineral Reserve estimates with respect to our properties have been prepared by the Qualified Persons (employed by AngloGold Ashanti unless stated otherwise) referred to in the Technical Report Summaries filed as Exhibits to the Form 20-F. The net difference between the Mineral Reserves at the end of the last completed fiscal year and the preceding fiscal year will be detailed in the Individual Property Disclosure Section. (1) Tonnes refers to a metric tonne which is equivalent to 1000 kilograms.
(2) The Mineral Reserve contains 28.1Moz of silver to be recovered as a by-product. (3)Property currently in a development stage.







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BY-PRODUCTS
Several by-products will be recovered as a result of processing of the gold Mineral Reserve and copper Mineral 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.

CORPORATE GOVERNANCE
AngloGold Ashanti has an established Mineral Resource and Mineral Reserve Steering Committee (“RRSC”), which is responsible for setting and overseeing the Company’s Mineral Resource and Mineral 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 as well as the Investment Committee of the Company’s Board of Directors (“Board”), review the Mineral Resource and Mineral Reserve and make a recommendation to the Board, which provides the final approval for the publication of the Mineral Resource and Mineral Reserve estimates.

The Company has developed and implemented a rigorous system of internal and external reviews aimed at providing assurance in respect of Mineral Reserve and Mineral Resource estimates. In 2021, the following operations were subject to an external review in line with the policy that each operation/project will be reviewed by an independent third party on average once every three years:

•    Mineral Resource and Mineral Reserve at Iduapriem
•    Mineral Resource and Mineral Reserve at Obuasi
•    Mineral Resource and Mineral Reserve at Kibali
•    Mineral Resource and Mineral Reserve at Serra Grande
•    Mineral Resource and Mineral Reserve at Sunrise Dam
•    Mineral Resource and Mineral Reserve at Tropicana

The external reviews of the Mineral Resource and Mineral Reserve were conducted by SRK Consulting for the properties operated by AngloGold Ashanti and no material risks were identified in any of the audit reports. In the case of Kibali an independent technical review of the annual Mineral Resource and Mineral Reserve estimates was undertaken by RSC Mining and Mineral Exploration on behalf of the managing partner Barrick Gold Corporation (“Barrick”) and identified no significant flaws.

In addition, numerous internal Mineral Resource and Mineral Reserve process reviews were completed by suitably Qualified Persons from within AngloGold Ashanti and no significant deficiencies were identified. The Mineral Resource and Mineral Reserve governance framework is underpinned by appropriate Mineral Resource Management processes and protocols that ensure adequate corporate governance. These procedures have been developed to be compliant with the guiding principles of the U.S. Sarbanes-Oxley Act of 2002 (“SOX”).

AngloGold Ashanti makes use of a web-based group reporting database called the Resource and Reserve Reporting System (“RCubed”) for the compilation and authorisation of Mineral Resource and Mineral Reserve reporting. It is a fully integrated system for the reporting and reconciliation of Mineral Resource and Mineral Reserve that supports various regulatory reporting requirements, including the SEC under 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 Qualified Persons at the operations to the Company’s RRSC.

AngloGold Ashanti has also developed an enterprise-wide risk management tool that provides consistent and reliable data that allows for visibility of risks and actions across the group. This tool is used to facilitate, control and monitor material risks to the Mineral Resource and Mineral Reserve, so that the Company can determine whether the appropriate risk management and mitigation plans are in place.

Where technical experts involved in the estimation of Mineral Resource or Mineral Reserve feel that their technical advice has been ignored and may represent a risk to the Mineral Resource or Mineral Reserve to be published, they are obliged to inform the Mineral Resource and Mineral 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.




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QUALIFIED PERSONS
The information in this report relating to Exploration Results, Mineral Resource and Mineral Reserve is based on information compiled by or under the supervision of the Qualified Persons as defined in the Regulation S-K 1300. All Qualified Persons are employed by AngloGold Ashanti 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. AngloGold Ashanti has recognised that in preparing this report with respect to Kibali, the Qualified Persons have relied on information provided by Barrick. The legal tenure of each operation and project has been verified to the satisfaction of the accountable Qualified Person and all the Mineral Reserve has been confirmed to be covered by the required mining permits or there exists a realistic expectation that these permits will be issued. The Qualified Persons have provided consent to the inclusion of Exploration Results, Mineral Resource and Mineral Reserve information in this report, in the form and context in which it appears as well as the public filing and use of the Technical Report Summary for each respective mining property filed as exhibits to the Form 20-F.

Accordingly, the Chairman of the Mineral Resource and Mineral Reserve Steering Committee, Mr. VA Chamberlain, MSc (Mining Engineering), BSc (Hons) (Geology), MGSSA, FAusIMM, assumes responsibility for the Mineral Resource and Mineral Reserve processes for AngloGold Ashanti and is satisfied that the Qualified 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. Mr. VA Chamberlain consents to the inclusion of Exploration Results, Mineral Resource and Mineral Reserve information in this report, in the form and context in which it appears filed as an Exhibit to the Form 20-F.

For additional information, see the Technical Report Summary on each individual property, filed as an Exhibit to this annual report on Form 20-F.

THE FOLLOWING SHOULD BE NOTED IN RESPECT OF THE ANNUAL REPORT ON FORM 20F:
•All figures are expressed on an attributable basis unless otherwise indicated
•All disclosure of Mineral Resource is exclusive of Mineral Reserve
•Unless otherwise stated, $ or dollar refers to United States dollars
•Group and Company are used interchangeably
•Mine, operation, business unit and property are used interchangeably
•Rounding off numbers may result in computational discrepancies
•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 copper content with no decimals
•Metric tonnes (t) are used throughout this report and all ounces are Troy ounces
•Abbreviations used in this report: gold– Au, copper – Cu, silver – Ag, Sulphur – S, molybdenum – Mo
•Internal controls are discussed in the Mineral Resource and Mineral Reserve Summary Disclosure section under Corporate Governance as well as the Mineral Resource and Mineral Reserve Internal Controls Disclosure section below
•Maps presented in the Individual Property Disclosure section in Item 4D show infrastructure, licences and coordinates of the mine, as represented by the plant (or stated otherwise), depicted on the map. The reference co-ordinate system used for the location of properties as well as infrastructure and licences maps / plans is latitude longitude geographic co-ordinates in various formats, or relevant Universal Transverse Mercator (“UTM”) projection.

Refer to the Mining Terms for terminology and definitions used in Mineral Resource and Mineral Reserve reporting under Regulation S-K 1300. In addition note the following:

Although the term Mineral Reserve is used throughout Regulation S-K 1300 and this document. AngloGold Ashanti uses Ore Reserve in its internal reporting.

The Mineral Resource exclusive of Mineral Reserve (“Exclusive Mineral Resource”) is defined as the Inclusive Mineral Resource less the Mineral Reserve before dilution and other factors are applied. The Exclusive Mineral Resource consists of the following components:
•Inferred Mineral Resource, including that within the Mineral Reserve design or stope shape;
•Mineral Resource that sits above the Mineral Resource cut-off grade but below the Mineral Reserve cut-off grade that resides within the defined Mineral Reserve volume;
•Mineral Resource that lies between the life of mine (“LOM”) pit shell or mine design and the Mineral Resource pit shell/mine design (this material will become economic if the gold price increases);



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•Mineral Resource where the technical studies to engineer a Mineral Reserve have not yet been completed.

All reports of Mineral Resource must satisfy the requirement that there are reasonable prospects for economic extraction, regardless of the classification of the Mineral Resource. Portions of a deposit that do not have reasonable prospects for eventual economic extraction are not included in a Mineral Resource. The Mineral Resource is estimated using all relevant drilling and sampling information along with a detailed geological model.

The geological models are based on combinations of core and/or chip logging, mapping, geophysics, geochemistry and geological understanding and have been developed for each deposit. Most of our deposits have been the subject of research by third party specialists in the relevant class of gold deposit.

The grade estimation for each deposit has been developed over the life of the mine, and is constantly reviewed in terms of grade control information and reconciliation with the metallurgical plant. In general, the open pits and shallow underground mines use kriging with post processing by Uniform Conditioning (“UC”) or Localised Uniform Conditioning (“LUC”) to generate a recoverable Mineral Resource model where appropriate.

In order to comply with the economic requirement of the definition of Mineral Resource, all our Mineral Resource is constrained at an upside gold price, with all other parameters being kept the same as used for estimation of the Mineral Reserve. In the underground gold mines, scoping studies are conducted on all coherent blocks of ground that lie above the calculated Mineral Resource cut-off grade. These studies include all cost and capital requirements to access the block. In the case of open pit operations, pit optimisations are conducted at the Mineral Resource gold price and all material outside these shells is excluded from the Mineral Resource unless it is potentially mineable from underground.

It is the opinion of AngloGold Ashanti that the Mineral Resource represents a realistic view of an upside potential to the Mineral Reserve. In interpreting the Mineral Resource it is critical to factor in the following:
•That there is a reasonable expectation of economic extraction
•The Mineral Resource is quoted in situ and has not been corrected for dilution, mining losses or recovery
•Many of the areas lying in the Exclusive Mineral Resource are currently being actively drilled and are the subject of economic and technical studies. It can, however, not be assumed at this stage that the company has intent to mine these areas

The Inferred Mineral Resource category is intended to cover situations in which a mineral concentration or occurrence has been identified and limited measurements and sampling have been completed but in which the data are insufficient to allow the geological or grade continuity to be interpreted with confidence. While it would be reasonable to expect that the majority of Inferred Mineral Resource would upgrade to Indicated Mineral Resource with continued exploration, due to the uncertainty of Inferred Mineral Resource, it should not be assumed that such upgrading will always occur.

In order to reduce the risk AngloGold Ashanti limits the use of Inferred Mineral Resource in its Mineral Reserve estimation process but the Inferred Mineral Resource is included in the pit shell or underground extraction shape determination. As such the Inferred Mineral Resource may influence the extraction shape. The quoted Mineral Reserve from these volumes includes only the converted Measured and Indicated Mineral Resource and no Inferred Mineral Resource is converted to Mineral Reserve. The cash flow analysis does not include the Inferred Mineral Resource in demonstrating the economic viability of the Mineral Reserve. For more information, see the Technical Report Summary for each Property filed as an Exhibit of this annual report on Form 20-F.

AngloGold Ashanti requires that the Mineral Reserve that is an outcome of this process is generated at a minimum of a Prefeasibility Study (“PFS”) level.

MINERAL RESOURCE AND MINERAL RESERVE INTERNAL CONTROLS DISCLOSURE

AngloGold Ashanti has a tiered internal review process whereby newly issued Mineral Resource and Mineral Reserve are reviewed at a regional level prior to publication. Selected Corporate reviews happen post that process. Each mine has an external Mineral Resource and Mineral Reserve audit on a three-year rolling basis, and issues raised in these audits are addressed by a formal audit reply from each mine on which the progress is tracked.

AngloGold Ashanti’s Mineral Reserve is an outcome of the Company’s Business Planning process which runs annually. This process operates within a comprehensive framework where all inputs, including costs and capital



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requirements, are generated by the operation, and reviewed at a regional and corporate level within the Company, thereby providing confidence in the estimates.

A group wide Mineral Resource to production reconciliation system is also in place whereby the Mineral Resource mined each month is reconciled all the way to the produced gold doré. Oversight for this is handled at the group level. A comprehensive sample and assay QAQC process is in place and our laboratories are inspected frequently by onsite teams and on an on-needs basis by the Group sampling specialist.


MINERAL RESOURCE AND MINERAL RESERVE INDIVIDUAL PROPERTY DISCLOSURE
For more information about AngloGold Ashanti’s mines, including as toa summary of the company’s mining rights and licences refer to “Item 4B: Business Overview—The Regulatory Environment Enabling AngloGold Ashanti to Mine”. For detailed information about AngloGold Ashanti’s mines, including the mining rights and licences refer to the Technical Report Summary on each individual property, filed as an Exhibit of this annual report on Form 20-F.


AngloGold Ashanti have examined material properties with the following key considerations and have decided to report all of its operations in the Individual Property Disclosure for 2021 based on the following:
•First time reporting;
•The consideration of both quantitative and qualitative factors, assessed in the context of the registrant’s overall business and financial condition; 
•Aggregate mining operations on all of its mining properties (regardless of the stage of the mining property, and size or type of commodity produced); and 
•Include, for each property (as applicable), all related activities from exploration through extraction. 

AngloGold Ashanti’s operating mines are all accessible by road.road, although for some, personnel access is better achieved by air.


SOUTH AFRICA

Description
The South Africa operations comprise one deep level underground mine -Our exploration programmes are based on consistent standards and processes across the Mponeng mine -AngloGold Ashanti portfolio and three surface processing operations, collectively referredare guided by peer review. Part of AngloGold Ashanti investment strategy is focused on exploration drilling and Mineral Reserve development to as Surface Operations. The Surface Operations are located in bothgrow the Vaal RiverMineral Resource and West Wits Operations and include the Vaal River Surface, Mine Waste Solutions (MWS) and the West Wits Surface processing operations. They rework and retreat the low grade stockpiles and Tailings Storage Facilities (TSFs) which result from the mining and processingby converting these, we allow for expansion of the primaryMineral Reserve. The process involves identifying the best group of drill targets and secondary reef horizons. The Kopanang and Moab Khotsong Vaal River operations were sold effective 28 February 2018.prioritising those that have the highest potential for success to be advanced first. Greenfields exploration aims to discover large, high-value Mineral Resource, which will eventually lead to the development of new gold mines. Brownfields exploration focuses on delivering value through accretive additions to the Mineral at existing mines as well as new discoveries in defined areas around operations.


OperationsThis report is not being submitted in South Africa are powered by electricity from Eskom Holdings Limited which supplies 95 percentsupport of the electricity useddisclosure of exploration results and therefore no disclosure of drilling or sample results is provided. AngloGold Ashanti has elected not to provide drilling results for its operating mines as drilling at our Brownfields operations is generally to provide incremental additions, or conversions to already reported Mineral Resource and therefore they are not seen as material. While drilling at our Brownfields operations increases confidence in South Africa.

Geology
The Witwatersrand Basin comprisesour Mineral Resource as well as adds LOM extensions, the incremental additions that occur on a six-kilometre thick sequence of inter-bedded argillaceous and arenaceous sedimentsyearly basis are not material to that extend laterally for some 300 kilometres north-east/south-west and 100 kilometres north-west/south-east onoperation or the Kaapvaal Craton. The upper portion ofcompany as a whole. In cases where the basin, which contains the orebodies, crops out at its northern extent near Johannesburg. Further west, south and east the basin is overlain by up to four kilometres of Archaean, Proterozoic and Mesozoic volcanic and sedimentary rocks. The Witwatersrand Basin is late Archaean in age anddrilling projects are supporting a non-sustaining addition, these projects are commented on. In our major greenfields projects if any single drill result is considered to be inmaterial and may change the order of 2.7 to 2.8 billion years old.reported Mineral Resource significantly then it is reported.


Gold occurs in laterally extensive quartz pebble conglomerate horizons or reefs, generally less than two metres thick, which are widely considered to represent laterally extensive braided fluvial deposits. Separate fan systems were developed at different entry points and these are preserved as distinct goldfields. The most fundamental control to the gold distribution in the Basin remains the sedimentary features, such as facies variations and channel directions. Gold generally occurs in native form often associated with pyrite and carbon, with quartz being the main gangue mineral.

West Wits operations

Description
The West Wits operation, Mponeng, is situated southwest of Johannesburg, on the border between Gauteng and North West Province.

AFRICA
AngloGold Ashanti holds a number ofhas five mining rightsoperations within the Africa region:
•Kibali in the West Wits area which have been successfully converted, executedDRC, a joint venture (“JV”) with Barrick and registered as new orderSociété Minère de Kilo-Moto (“SOKIMO”), the state-owned gold mining rights at the Mineral and Petroleum Resources Titles Office (MPRTO).company

•Iduapriem in Ghana
Geology•Obuasi in Ghana, currently in a redevelopment phase
The VCR is the main reef horizon mined at Mponeng Mine. The VCR forms the base of the Ventersdorp Supergroup, which caps the Witwatersrand Supergroup through an angular unconformity. The overlying Ventersdorp Lavas halted the deposition of the VCR, preserving it•Siguiri in its current state. The VCR consists of a quartz pebble conglomerate, which can be up to 3m thick in places. The footwall stratigraphy, following periods of uplift and erosion, controlled the development and preservation of the VCR, which is characterised by a series of channel terraces preserved at different relative elevations, and the highest gold values are preserved in these channel deposits. The different channel terraces are divided by zones of thinner slope reef, which are of lower value and become more prevalent on the higher terraces and on the harder footwall units. The CLR is the other gold bearing reef horizon exploited at the West Wits operations. The CLR and VCR at Mponeng Mine are separated by approximately 900m of shales and quartzites. The CLR has historically been mined extensively at Savuka and TauTona minesGuinea, with AngloGold Ashanti holding 85% ownership, and the remaining portions thereof have now been transferred to Mponeng Mine.15% owned by the government of Guinea

•Geita in Tanzania
West Wits - Mponeng

Mining is from both open pit and underground, with Obuasi being an underground mine, Iduapriem and Siguiri being open pit mines, and Kibali and Geita being a combination of open pit and underground mines.
Description

Mponeng

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DRC
Kibali, one of the largest gold mines in Africa, is a deep level gold mine operating between 3,160m and 3,740m below mine datum (BMD*) and is currently the deepest minesituated in the world with development at 3,841m BMD. Future mining is planned to deepen the shaft bottom to 4,227m BMD. All production is currently from VCR with future expansion on both VCR and the CLR horizons. The Mponeng lease area is constrained to the east by Sibanye’s Driefontein mine and to the west by Harmony’s Kusasalethu mine. Mponeng comprises a twin-shaft system housing two surface shafts and two sub-shafts. Ore is treated and smelted at the mine’s gold plant.  The plant has a monthly capacity of 160,000 tonnes.

* BMD is 1,828.8m Above Mean Sea Level (AMSL)

Surface Operations

Surface Operations comprise Vaal River Surface, MWS and West Wits Surface. The operations produce gold by processing surface material such as low grade stockpiles and the re-treatment of Tailings Storage Facilities (TSF).

Low grade stockpiles
The low grade stockpiles consist of waste rock mined from underground workings, hoisted, transported and deposited via conveyor
belts. The gold contained within these dumps was sourced from three areas namely:
Minor reef intersected while accessing the primary reef;
Gold-bearing reef that was contained within small fault blocks that were exposed by off-reef development; and
Cross-tramming of gold-bearing reef material to the waste tips.

Tailings Storage Facilities (TSF)
The TSFs consist of tailings material which originated from the processing of the underground ore from the various operations in the Vaal River area (Vaal Reef Surface), the various operations in West Wits area (West Wits Surface) and Buffelsfontein, Hartebeestfontein and Stilfontein gold mines (MWS). These gold mines are deep level gold mines, which predominantly extract the tabular, conglomeratic Vaal Reef (VR), CLR and VCR. The VR has been predominantly mined for gold in the past although the reef also contains uranium oxide. The same is true but, to a lesser extent, with the CLR and VCR. The material contained in the TSFs is fine in nature. The footprints of the MWS TSFs and Vaal River Surface operations TSFs cover an area of approximately 1,100ha.

Description
The Vaal River Surface operations are located to the north of the Vaal River, closeDRC, adjacent to the town of Orkney inDoko and 210km from Arua on the North West province. These operations extractUgandan border. Kibali is co-owned by AngloGold Ashanti (45%), Barrick (45%) following its merger with Randgold Resources Limited (“Randgold”), and SOKIMO (10%), a state-owned gold frommining company. SOKIMO is wholly owned by the low grade stockpile material emanatingDRC government with the shareholding held by the Minister of Portfolio of the DRC.

The consolidated lease is made up of ten mining concessions. The metallurgical plant comprises a twin-circuit sulphide and oxide plant with conventional carbon-in-leach (“CIL”), including gravity recovery as well as a by-product offloat and ultra-fine grind circuit. Barrick operates the reef mining activities within the mines in the Vaal River area. The MWS operations are located approximately 15km from the town of Klerksdorp near Stilfontein within 20km of the Vaal River Surfacemine which comprises both open pit and underground operations. MWS

KIBALI

Property description
Kibali is a gold mining, milling and uranium tailings recovery operationexploration project. Operations currently focus on open pit and underground mining. Development of the underground mine commenced in 2013 and production of the underground ramped up to 3.8Mt in 2021. Initial production was via a twin decline from surface. From 2018 onwards, the majority of ore was hoisted up the shaft. The decline is used to haul some of the shallower zones and to supplement shaft haulage.

Kibali is owned by Kibali Goldmines SA which is a joint venture company between Barrick (45%), AngloGold Ashanti (45%) and SOKIMO (10%).

The mine was originally developed and operated by Randgold. Since Randgold and Barrick merged in 2019, Barrick is now the operator at Kibali for both exploration and mining. Kibali is currently a production stage property.

Location
Kibali is located in the western portionnortheastern part of the Witwatersrand Basin, some 160 kilometresDRC near the international borders with Uganda and South Sudan. The mine is located adjacent to the village of Doko, which is located to the west of the lease area. Kibali is approximately 210km by road from Johannesburg, approximately eight kilometresArua and immediately north of the district capital of Watsa. The operational area falls within the administrative territory of Watsa in Haut-Uélé province.

Geology
The gold deposits at Kibali are largely hosted in siliciclastic rocks, banded iron formations (“BIFs”), and cherts that were metamorphosed under greenschist facies conditions, situated along a curvilinear zone 20 km long and up to one km in width, known as the KZ Structure. Gold mineralisation is concentrated in gently NE to NNE-plunging fold axes whose orientations are generally parallel with a prominent lineation in the mineralised rocks. The mineralised deposits of the Kibali district are associated with halos of quartz, ankerite, and sericite (ACSA-A) alteration that extend for tens to hundreds of metres into the adjacent rocks. Areas of economic mineralisation are defined where the project scale ACSA-A alteration is locally overprinted by the ankerite-siderite, pyrite alteration assemblage (ACSA-B) that hosts the gold mineralisation. The gold-bearing sulphides consist of disseminated pyrite, minor pyrrhotite, and arsenopyrite. The auriferous pyrite occurs as both salt and pepper disseminated fine grains and bleb-like clusters of disseminated grains.

History
On 15 October 2009, AngloGold Ashanti acquired a 50% indirect interest in Moto Goldmines Limited through a JV with Randgold, with Moto holding a 70% stake in Kibali and the balance (30%) being held by the DRC parastatal, SOKIMO. On 21 December 2009, Randgold and AngloGold Ashanti increased their JV interest in Kibali to 90%, while SOKIMO retained a 10% holding. On 2 January 2019, Randgold merged with Barrick, and the JV is now with the combined company, trading as Barrick.

The first gold was poured in September 2013 from the townopen pit operations and development of Klerksdorp near Stilfonteinthe underground mine commenced in the North West Province.  It has been operational since 1964same year. First underground ore from development was also mined in 2013 and stoping began in 2015. Initial production was previouslytruck hauled by a twin decline to surface. In 2017, the haulage shaft (740m deep) and materials handling system were commissioned.

Legal aspects and tenure
Refer to “Item 4B: Business Overview—The Regulatory Environment Enabling AngloGold Ashanti to Mine—Africa Region—Democratic Republic of the Congo (DRC)—AngloGold Ashanti’s rights and permits”.






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Mining method
The operation comprises both open pit and underground mining. The open pit mining is carried out using conventional drill, blast, load and haul surface mining methods. The mining is conducted by a contractor, Kibali Mining Services, a local subsidiary of DTP Terrassement, using either free-dig or drill and blast.

For the underground operation, longitudinal, transverse primary or secondary stoping and advancing face stoping methods with paste backfill are used as the mining methods.

Operational infrastructure
Infrastructure in the DRC is generally poor as a result of limited investment in maintenance, upgrades and extensions of the road networks established during colonial times. The mine site is located within 160km of the border with Uganda and all transport links take place through Uganda to Kenya or Tanzania. Surface infrastructure associated with the overall Kibali operation includes a processing plant, tailings storage facility (TSF), camp, airstrip, workshops and offices. Power to the mine is self-generated by a combination of hydroelectric and diesel generators.

The Property, Plant, and Equipment as of the end of December 2021 including lease assets, buildings & mine infrastructure, mining assets, mineral rights and dumps, decommissioning assets, capitalised exploration costs and deferred stripping had a carrying value of $981m (reported as attributable - 45% owned by First Uranium Corp. AngloGold Ashanti).

Mineral processing
The MWS feed sources (TSFs)current processing plant can treat both oxide and fresh sulphide material and uses flotation with ultra-fine grind of the flotation concentrate, a treatment that is required for the sulphide ore type before leaching. Kibali has a processing operation capable of producing an average of 600koz of gold per annum designed to treat 7.2Mtpa but ongoing improvements have achieved performance beyond the design capacity successfully since 2017.

Qualified Persons
KibaliQualified PersonProfessional OrganisationMembership numberRelevant Years ExperienceQualification
Mineral ResourceRichard PeattieAusIMM30102925 yearsMPhil Mineral Resource Evaluation (University of Queensland)
Mineral ReserveRomulo SanhuezaAusIMM21179424 yearsBSc Eng (Mining)

Exploration
Refer to “Item 4B: Business Overview—Exploration review”.

Mineral Resource
Refer to Table 1a to Paragraph (b) prepared in accordance with Regulation S-K 1300 (§ 229.1303 (Item 1303)) that summarises the gold Mineral Resource (exclusive of Mineral Reserve) for Kibali at the end of the Fiscal Year ended 31 December 2021 based on $1,500/oz. The Mineral Resource is reported for the first time under Regulation S-K 1300 and thus no net difference can be reported.

Refer to the Key Parameters under Material Assumptions for additional information on cut-off grades and metallurgical recovery. For additional information, see the Technical Report Summary on each individual property, filed as an Exhibit of this annual report on Form 20-F.

Material Assumptions for the Mineral Resource

Key Parameters
KibaliUnitOpen Pit
Costs
Waste cost$/tonne mined
2.92-3.09(1)
Extra Ore Cost – Grade Control + Ore – Rehandle + Overhaul$/tonne mined1.27 
Grade Control cost$/tonne mined0.75 
Dilution%10
Ore Loss%3
Processing cost$/tonne milled
15.04-17.85(1)
G&A$/tonne milled8.47 
Other Parameters



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Gold Royalties (4.7%)$/oz70.50 
Metallurgical Recovery Factor%MetRF
86.1-90.1(1)
Mineral Resource cut-off gradeg/t
0.6-0.7(1)
Mineral Resource price$/oz1,500 
(1) Vary according to rock type

KibaliUnitUnderground
Costs
Mine Production$/tonne ore mined36.17 
Capital$/tonne ore mined3.97
G&A$/tonne ore milled8.47
Processing cost$/tonne ore milled17.85
Other Parameters
Gold Royalties (4.7%)$/oz70.50
Mining cut-off gradeg/t1.62
Mineral Resource price$/oz1,500 
Metallurgical Recovery Factor%MetRF90

Estimation
Mineral Resource estimation is undertaken by Barrick in-house Qualified Persons or by approved external consultants. The results of both diamond drilling (“DD”) and reverse circulation (“RC”) drilling are scattered overused in the estimation process. 3D mineralised envelopes are established using grade and geology, and these are then statistically verified to confirm their validity for use in grade estimation. Appropriate domaining of homogeneous zones is conducted whereby high-grade central core areas are modelled separately from the lower-grade surrounding halos. Volumes are filled with block model cells and interpolated for density, rock type and grade, the latter using ordinary kriging. Grade top cuts and restricted searches are applied to drill hole data to prevent the spread of high-grades during the estimation process. Drill hole spacing is used to guide the Mineral Resource classification. The open pit Mineral Resource is quoted within a limiting shell. The underground Mineral Resource is constrained by the application of optimised mineable Mineral Resource shapes, which applies reasonable mineability constraints including a minimum mining width, a reasonable distance from current or planned development, and a measure of assumed profitability at the related Mineral Resource cut-off grade.

Mineral Reserve
Refer to Table 2ato Paragraph (b) prepared in accordance with Regulation S-K 1300 (§ 229.1303 (Item 1303)) that summarises the gold Mineral Reserve for Kibali at the end of the Fiscal Year ended 31 December 2021 based on $1,200/oz.

Refer to the Modifying Factors and price estimates under Material Assumptions for additional information on cut-off grades and metallurgical recovery. For additional information, see the Technical Report Summary on each individual property, filed as an Exhibit of this annual report on Form 20-F.

Year on year changes in Mineral Reserve - Moz
as at 31 December 2021Kibali
CategoryProvenProbableTotal
Previous Year1.272 2.974 4.247 
Depletion(0.410)— (0.410)
Exploration0.852 (0.485)0.367 
Methodology— — — 
Price0.039 0.105 0.144 
Cost— — — 
Geotechnical0.002 — 0.002 
Metallurgical— — — 
Operational— — — 
Acquisition / Disposal— — — 
Other(0.018)— (0.018)



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Current Year1.737 2.595 4.331 
Net Difference0.464 (0.380)0.085 
% Difference36 (13)2 

The increase in Mineral 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 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.

Material Assumptions for the Mineral Reserve

Modifying factors and price estimates
as at 31 December 2021Kibali
Primary Commodity Price$/oz1,200 
Cut-off gradeg/t
1.5(2); 1.76(4); 2.02(3)
Stoping widthcm
2990(3)
Dilution%
4.7(3); 10(2)
Mining Recovery Factor%MRF based on tonnes
91.6(3); 97(2)
Mine Call Factor%MCF97
Metallurgical Recovery Factor%MetRF
89-90(1)
(1) Vary according to rock type (2) Open pit (3) Underground (4) Stockpile

Estimation
The open pit Mineral Reserve shell optimisations were run on the Mineral Resource models. The process incorporated the mining layout, operating factors, stripping ratio, relevant cut-off grades and modifying factors for reporting the Mineral Reserve. An open pit underground interface was set at 5,685 metres relative level (“mRL”) between the KCD open pit and underground mine.

A cut-off grade analysis at $1,200/oz was used to determine a cut-off grade of 2.02g/t for the underground mine. Longitudinal and transverse longhole open stoping methods with paste backfill are the current preferred mining methods. Underground stope designs were updated from the previously reported Mineral Reserve using the latest Mineral Resource models. Modifying factors for planned and unplanned rock dilution, backfill dilution and ore loss were applied to obtain the reported Mineral Reserve.

Metallurgical, environmental, social, legal, marketing and economic factors were adequately considered in the Kibali Feasibility Study (“FS”) and have been updated as the project has developed.

Conclusion
There are no known significant risks or uncertainties that will impact the Mineral Resource and Mineral Reserve estimates.

An independent external review of the Mineral Resource and Mineral Reserve was undertaken in 2021 by RSC Mining and Mineral Exploration on behalf of the managing partner Barrick and found no significant flaws.

Map showing Kibali planned infrastructure and licences
Map showing Kibali infrastructure and licences, with the total mining lease area that stretchesinsert shown in the top right corner. The coordinates of the mine, as represented by the plant, are depicted on the map and are in the UTM coordinate system.





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GHANA
AngloGold Ashanti has two mines in Ghana. Obuasi and Iduapriem are both wholly owned and operated by AngloGold Ashanti.

Obuasi, currently in a redevelopment phase, is an underground mine operating at depths of up to 1,500m with a continuous history of mining dating back to the 1890s and Iduapriem, an open pit mine.

Obuasi is located in the Ashanti region of southern Ghana, approximately 13.5km north-south60km south of Kumasi. Mining was temporarily suspended at the end of 2014 while a series of economic studies progressed. Obuasi underground development restarted in the first half of 2019, with the first gold produced in December 2019. The operations' ramp up to 4,000tpd of ore tonnes mined was delayed by the temporary stoppage of underground activities after a fall of ground incident in May 2021. Production remained suspended for several months to allow for reviews and 14km east-west. The West Wits Surface operations areinvestigations, but slowly resumed in the latter part of 2021.

Iduapriem is located in western Ghana, some 85km from the coast and south of Obuasi, near the town of Carletonville, across the border between the North WestTarkwa.

IDUAPRIEM

Property description
Iduapriem is owned and Gauteng provinces.

Low grade stockpiles in the Vaal River area are processed through the Kopanang Gold Plant which is a dedicated surface sources metallurgical plant with a capacity of 345,000 tonnes per month, while all AGA owned tailings material in the Vaal River and MWS areas is processed through the three Metallurgical streams at the MWS metallurgical operations with a monthly capacity of 2.26 million tonnes. At West Wits, material from both low grade stockpiles and TSF is processed through the Savuka gold plant with a monthly capacity of 285,000 tonnes.


CONTINENTAL AFRICA

Ghana – Iduapriem

Description
Iduapriem, wholly ownedoperated by AngloGold Ashanti since September 2007, comprises(Iduapriem) Limited, a company registered in Ghana. This is ultimately held by AngloGold Ashanti (Ghana) Limited (“AAGL”) which also operates the IduapriemObuasi Mine, and Teberebie properties onis also registered in Ghana. AAGL through successive hierarchal holdings is 100% held by the AngloGold Ashanti parent company. It is a 105km2 concession. multiple open pit operation that currently sources ore from the Block 3W, Ajopa, and Blocks 7 and 8 pits. More recently the Block 5 pit was re-instated in the mining plan. The property is currently in a production stage.

Location
The mine which began operations in 1992, is situatedlocated in the western region of Ghana, some 85 kilometres70km north of the coastal city of Takoradi and eight kilometresapproximately 10km southwest of the town of Tarkwa. Iduapriem Mine is bordered to the north by Gold Fields Ghana Limited (Tarkwa Mine) and to the east by the Ghana Manganese Company Limited (a manganese mine in existence since the 1920s).


Geology
Iduapriem is an open-pit mine and its processing facilities include two circuits comprising a gravity circuit and a Carbon-in-leach (CIL) plant. The CIL plant has a capacity of 5.1m tonnes per annum. Power is supplied to the mine by the Volta River Authority, GridCo and ECG.

Geology
The Iduapriem and Teberebie properties are located along the southern end of the Tarkwa basin. The mineralisation is contained in the Banket Series of quartz pebble conglomerates, breccia conglomerates and metasediments within the Tarkwaian SystemGroup which forms part of Proterozoic age.the West African Craton that is covered to a large extent by metavolcanics and metasediments of the Birimian Supergroup. In Ghana, the Birimian terrane consists of northeast-southwest trending volcanic belts separated by basins, and the Tarkwaian Group was deposited in these basins as shallow water deltaic sediments. The outcropping Banket SeriesTarkwaian lithologies are considered to represent the erosion products that accumulated following uplift and deformation of the underlying Birimian rocks during the Eburnean orogeny. The basins (grabens) are believed to have formed as a result of rifting, preferentially in the mine area form prominent, arcuate ridges extending southwards from Tarkwa, westwards through Iduapriemcentral parts of the Birimian volcanic belts. The Tarkwaian Group consists of a thick sequence of clastic metasedimentary rocks that have undergone low-grade regional metamorphism.

There are four recognised conglomerate reefs namely A, B, C, and northwards towards Teberebie.D which are equivalent to the Tarkwaian Sub-basal, Basal (or Main), Middle (or West), and Breccia Reefs respectively. The B and C reefs are oligomictic, and consist of well-sorted conglomerates and was mined underground in some areas more than a century ago. The A and D reefs have a lower gold tenor and are polymictic containing both well-rounded and angular fragments. Gold is found within the matrix that binds the pebbles together. The gold content is a function of the size and amount (packing) of quartz pebbles present within a conglomeratic unit - more pebbles present suggests more gold. The gold is hosted withinfine-grained, particulate, and free-milling (i.e. not locked up with quartz or iron oxides). Mineralogical studies indicate that the conglomerates.grain size of native gold particles ranges between 2 and 500 microns (0.002 to 0.5mm) and averages 130 microns (0.13mm). The thickness of the main mineralised B and C reefs are approximately 15m and 6m respectively. The mineralised sequence dips at angles varying from steep and sub-vertical, at Blocks 1 and 2, to steep (70° to 80° north dipping) towards Block 3 East. The dip continues to be shallower at Block 3 West (50°), through Blocks 4 and 5 (45°) to become 35° at Block 7 South and 30° at Block 8. At Ajopa, the average dip is 50° to 60°. At Block 7 and 8, the western limb of the syncline extends over 4km on the property, with the eastern limb reaching the surface just beyond the eastern boundary of the concession. The western and the eastern limbs outcrop about 4km apart with the mineralised horizons buried some 400m below the surface at the centre of the syncline.


Ghana - ObuasiHistory

A FS was completed in 1990 and in October 1991, the then owners, Golden Shamrock Limited (“Golden Shamrock”) began construction of a 1.36Mtpa semi-autogenous milling circuit and carbon-in-pulp (“CIP”) plant. Mining
Description

Obuasi, wholly owned

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commenced in August 1992 with the first gold pour achieved in September of that year. Golden Shamrock was acquired by Ashanti Goldfields Company Limited (“Ashanti”) in 1996. In 2000, a portion of the non-operational Teberebie Goldfields Limited company (a subsidiary of Pioneer Goldfields Limited) was purchased resulting in an increased Mineral Reserve and LOM. In 2002, Ashanti upgraded the plant capacity to 4Mtpa, and in 2004 AngloGold merged with Ashanti to become AngloGold Ashanti. In 2009 the plant capacity was further extended to the current 5.2Mtpa. The Iduapriem heap leach started in 1996 and continued until 2006 when the low-grade oxide material was depleted. Teberebie Goldfields had started heap leaching from the onset in 1992. After the acquisition, Ashanti continued the Teberebie heap leach, but it was closed down in 2006 when low-grade oxide was depleted.

Legal aspects and tenure
Refer to “Item 4B: Business Overview—The Regulatory Environment Enabling AngloGold Ashanti since 2004,to Mine—Africa Region—Ghana—AngloGold Ashanti’s rights and permits”.

Mining method
Iduapriem Mine is located in the Ashanti Region of Ghana, some 320 kilometres north-westan open pit mine which makes use of the capital Accramining contractor, AMAX Mining Services. It uses conventional drill and approximately 60 kilometres south of Kumasi. Mining operations are primarily underground,blast, with truck and excavator load and haul.

Operational infrastructure
Surface infrastructure associated with Iduapriem’s operation includes a primary crusher, overland conveyor, CIL processing plant next to the main office building, a depth of 1.5 kilometres. Obuasi originally opened in 1897TSF and was in a carefour camp areas for contractors and maintenance phase during 2018. Obuasi planscompany employees. Tarkwa town is also adjacent to restart its sulphide treatment plant and ramp-up to 60,000 tonnes per month late in 2019.the tenement. Power is supplied to the mine by the Volta River Authority and GridCo.Ghana Grid Company Limited (“GRIDCo”).



The Property, Plant, and Equipment as of the end of December 2021 including lease assets, buildings & mine infrastructure, mining assets, capitalised exploration costs, decommissioning assets, assets under construction and deferred stripping had a carrying value of $273m.

Mineral processing
The current processing plant treats free-milling material from open-cast mining, by a conventional crush with a semi-autogenous ball milling circuit and cyanide leach. Iduapriem operates a two-stage crushing circuit consisting of a 54-75 primary gyratory crusher and two GP550 gyratory crushers for secondary crushing. The Iduapriem treatment plant has two semi-autogeneous grinding mills (“SAG mills”) and two ball mills which run in two parallel circuits, each with a SAG mill and a ball mill.

Qualified Persons
IduapriemQualified PersonProfessional OrganisationMembership numberRelevant Years ExperienceQualification
Mineral ResourceCharles Kusi-ManuAusIMM20523831 yearsDip (Geological Engineering), MSc, MBA, Postgraduate Certificate (Geostatistics)
Mineral ReserveMashudu Justice DavhanaECSA2009005021 yearsBSc Hons (Mining Engineering)

Exploration
Refer to “Item 4B: Business Overview—Exploration review”.

Mineral Resource:
Refer to Table 1a to Paragraph (b) prepared in accordance with Regulation S-K 1300 (§ 229.1303 (Item 1303)) that summarises the gold Mineral Resource (exclusive of Mineral Reserve) for Iduapriem at the end of the Fiscal Year ended 31 December 2021 based on $1,500/oz. The Mineral Resource is reported for the first time under Regulation S-K 1300 and thus no net difference can be reported.

Refer to the Key Parameters under Material Assumptions for additional information on cut-off grades and metallurgical recovery. For additional information, see the Technical Report Summary on each individual property, filed as an Exhibit of this annual report on Form 20-F.







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Material Assumptions for the Mineral Resource

Key Parameters
IduapriemUnitOpen Pit
Costs
Ore mining cost$/tonne mined
1.96-2.41(1)
Waste mining cost$/tonne mined
1.96-2.41(1)
Processing cost$/tonne treated15.24
G&A$/tonne treated6.75
Other Parameters
Metallurgical Recovery Factor%MetRF95.85
Slope anglesdegree
38-62.5(1)
Mineral Resource cut-off gradeg/t
0.45-0.50(1)
Mineral Resource price$/oz1,500 
(1) Vary according to area

Estimation
The geological model for each orebody comprises 3D wireframes of the faults and of the various conglomerate reefs that host the gold mineralisation. In some cases, late barren dolerite intrusions are also modeled as 3D wireframes. The interpretations are completed using geological mapping and drill hole grades, lithology logs and structural measurements.

The drill samples are composited to 1m intervals honouring the geological boundaries, as 1m is the prevailing length of sampling. Grade capping is applied to control the influence of extreme values within the reefs. The capping is kept to a minimum, generally not exceeding 0.5% of the samples within each estimation domain. The various sub-units within the conglomerate reefs are treated as separate estimation domains. Semi-variograms are modelled from the composited samples of each estimation domain. The grade estimation is done by ordinary kriging. The estimation panel block sizes for ordinary kriging are between 20 x 20 x 24m to 25 x 25 x 24m to optimally suit the sampling grid used in the delineation of the Indicated Mineral Resource. Sub-celling of 2.5 x 2.5 x 1m to 2.5 x 2.5 x 3m is used to ensure the geological model is captured in the block model with sufficient resolution. Search parameters are optimised for each domain to ensure robust estimates, with particular attention paid to the reduction of negative kriging weights, and improvement in the slope of regression and kriging efficiency. The maximum distance of extrapolation does not exceed half of the variogram range for each estimation domain.

Mineral Reserve
Refer to Table 2ato Paragraph (b) prepared in accordance with Regulation S-K 1300 (§ 229.1303 (Item 1303)) that summarises the gold Mineral Reserve for Iduapriem at the end of the Fiscal Year ended 31 December 2021 based on $1,200/oz.

Refer to the Modifying Factors and price estimates under Material Assumptions for additional information on cut-off grades and metallurgical recovery. For additional information, see the Technical Report Summary on each individual property, filed as an Exhibit of this annual report on Form 20-F.

Year on year changes in Mineral Reserve - Moz
as at 31 December 2021Iduapriem
CategoryProvenProbableTotal
Previous Year0.287 1.620 1.907 
Depletion(0.085)(0.131)(0.216)
Exploration— 0.216 0.216 
Methodology(0.162)— (0.162)
Price— — — 
Cost— 0.708 0.708 
Geotechnical— — — 
Metallurgical— — — 
Operational0.007 0.137 0.144 
Acquisition / Disposal— — — 



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Other— — — 
Current Year0.047 2.550 2.597 
Net Difference(0.240)0.930 0.690 
% Difference(84)57 36 

The net increase is primarily due to the decrease in costs resulting from signing a new mining contract and operational changes.

Material Assumptions for the Mineral Reserve

Modifying factors and price estimates
as at 31 December 2021Iduapriem
Primary Commodity Price$/oz1200
Cut-off gradeg/t
0.6-0.8(3); 0.8-0.85(2)
Resource Modification Factor%RMF based on tonnes100
Resource Modification Factor%RMF based on g/t100
Mining Recovery Factor%MRF based on tonnes
94-100(1)
Mining Recovery Factor%MRF based on g/t
96-100(1)
Mine Call Factor%MCF100
Metallurgical Recovery Factor%MetRF
93(3)-95.85(2)
(1) Vary according to area (2) Open pit (3) Stockpile

Estimation
The 3D Mineral Resource models are used as the basis for the Mineral Reserve. An ore envelope is developed using the Mineral Resource block model, geological information and the relevant cut-off grade, which is then used for mine design. An appropriate mining layout is utilised and incorporates mining extraction losses and dilution factors.

The Mineral Reserve is estimated within mine designs, using modifying factors based on actual mining and detailed analysis of cut-off grade, geotechnical, environmental, productivity considerations and the requirements of the mining fleet. The upper portions of the Ajopa deposit have been discounted for the estimated depletion by artisanal miners. This discount factor has been derived from observation and estimates based on the Mineral Resource model.

Conclusion
Power reliability, slope or high wall stability (rockfall potential), and inrush or inundation (flooding of pits, TSFs, and infrastructure) are considered potential risks or uncertainties in the Mineral Resource and Mineral Reserve estimate. Mitigation plans are in place to manage these risks.

An independent external Mineral Resource and Mineral Reserve audit was undertaken in 2021 by SRK Consulting and found no significant flaws in process or output.

Map showing Iduapriem planned infrastructure and licences: Map showing the location, infrastructure and mining license area for Iduapriem. The coordinates of the mine, as represented by the plant, are depicted on the map and are in the UTM coordinate system.




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OBUASI

Property description
Obuasi, currently in a redevelopment phase, is owned and operated by AngloGold Ashanti and is a development stage property. All required mineral rights to the property are held by the company. The mine is an underground operation, and it has been in operation since 1897 (more than 120 years). It has been owned and operated by AngloGold Ashanti since 2004.

Location
Obuasi Gold Mine is located in the municipality of Obuasi, in the Ashanti region of Ghana, about 240km northwest of the capital Accra and 60km south of Kumasi.

Geology
Geologically, Obuasi is in the Ashanti belt on the eastern margin of the Pre-Cambrian West African craton. This craton consists of Lower Proterozoic volcanic and flysch sediments which make up the Birimian system, overlain in part by the molasse sediments of the Middle Proterozoic Tarkwaian. The Ashanti belt is the most prominent of the five Birimian Supergroup gold deposits at Obuasi are part of a prominent gold belt of Proterozoic (Birimian) volcano-sedimentary and igneous formations which extend for a distance of approximately 300 kilometresbelts found in a north-east/south-west trend in south‑western Ghana. Obuasi

Gold mineralisation is shear-zone relatedassociated with, and thereoccurs within, graphite-chlorite-sericite fault zones. These shear zones are three main structural trends hosting gold mineralisation:commonly associated with pervasive silica, carbonate and sulphide hydrothermal alteration and occur in tightly folded Upper Birimian schists, phyllites, metagreywackes and tuffs, along the Obuasi trend,eastern limb of the Gyabunsu trend and the Binsere trend.Kumasi anticlinorium.


Two main ore types are mined:
present, namely quartz veins which consistvein and sulphide ore. The quartz vein type consists mainly of quartz with free gold in association with lesser amounts of various metal sulphides such ascontaining iron, zinc, lead and copper. The gold particles are generally coarse-grained and occasionally visible to the naked eye. This ore type is generally non-refractory; and
nonrefractory. The sulphide ore whichtype is characterised by the inclusion of gold in the crystal structure of a sulphide material. The gold in these ores is fine-grained and often locked in arsenopyrite.arsenopyrite minerals. Higher gold grades tend to be associated with finer grained arsenopyrite crystals. Other prominent minerals include quartz, chlorite and sericite. SulphideThe sulphide ore is generally refractory.



History
Obuasi has a long mining history dating back to 1897. It has been owned and operated by various operators during this time. The current operator became involved in 2004 following the merger of the former AngloGold Limited of South Africa and the Ashanti Goldfields Company Limited of Ghana. However, for several years leading up to 2014, the mine began to struggle due to ailing infrastructure and outdated methodologies. It was realised that significant rationalisation and/or replacement of current infrastructure would be necessary to enable the delivery of better utilisation and productivity metrics.

In 2014, a FS commenced that considered the optimum mining methodology and schedules for the underground mine, based on modern mechanised mining methods and refurbishment of underground, surface and process plant infrastructure. During this time, Obuasi operated in a limited operating phase with underground activities essentially restricted to continued development of the Obuasi deeps decline and underground infill drilling. The limited operating phase was brought to a halt after an incursion by illegal miners on Obuasi's concession in February 2016 at which point the mine was placed under care and maintenance. The study however continued and in 2017, a favorable FS was completed and indicated a strong technical and economical case with an anticipated 20-year mine life. In 2018 approval was received from the AngloGold Ashanti board and the government of Ghana to proceed with the project. The redevelopment project kicked off in 2019.

The operations' ramp up to 4,000tpd of ore tonnes mined was delayed by the temporary stoppage of underground activities after a fall of ground incident in May 2021. Production remained suspended for several months to allow for reviews and investigations, but slowly resumed in the latter part of 2021.

Legal aspects and tenure
Refer to “Item 4B: Business Overview—The Regulatory Environment Enabling AngloGold Ashanti to Mine—Africa Region—Ghana—AngloGold Ashanti’s rights and permits”.

Mining method
Obuasi is an underground operation utilising both vertical shafts and declines as main access routes to the underground workings. The mine has seen extensive historical mining activities with varying applications of different mining methods to date. The current LOM design employs mostly the Long Hole Open Stoping (“LHOS”) mining method for ore extraction. LHOS is a highly selective and productive method of mining that can be employed for



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orebody of varying thicknesses and dips. The three main distinct variations of the LHOS used at Obuasi are Longitudinal Retreat Stoping (“LRS”), Longitudinal Open Stoping (“LOS”) and Transverse Open Stoping (“TOS”). The Blind Upper Stoping (“BUS”) is a form of LRS or TOS used for partial sill pillar recovery.

Operational infrastructure
Existing infrastructure includes a 2.2Mtpa processing plant with flotation and bacterial oxidation (“BIOX”), underground development, hoisting shafts and associated infrastructure, emergency standby power and water reticulation, office complexes, workshops and company housing estates. Power is supplied to the mine by the Volta River Authority and GRIDCo.

The Property, Plant, and Equipment as of the end of December 2021 including buildings & mine infrastructure, mining assets, decommissioning assets and assets under construction had a carrying value of $882m.

Mineral processing
The plant is configured for both conventional and flash flotation and BIOX treatment which is required for the refractory sulphide ore. The gravity gold recovery system is also an integrated system with Knelson concentrators and inline leach reactors.

Qualified Persons
ObuasiQualified PersonProfessional OrganisationMembership numberRelevant Years ExperienceQualification
Mineral ResourceEmmarentia MaritzSACNASP11834518 yearsMSc (Mineral Resource Evaluation)
Mineral ReserveDouglas AtangaAusIMM33439113 yearsBSc (Mining Engineering)

Exploration
Refer to “Item 4B: Business Overview—Exploration review”.

Mineral Resource
Refer to Table 1a to Paragraph (b) prepared in accordance with Regulation S-K 1300 (§ 229.1303 (Item 1303)) that summarises the gold Mineral Resource (exclusive of Mineral Reserve) for Obuasi at the end of the Fiscal Year ended 31 December 2021 based on $1,500/oz. The Mineral Resource is reported for the first time under Regulation S-K 1300 and thus no net difference can be reported.

Refer to the Key Parameters under Material Assumptions for additional information on cut-off grades and metallurgical recovery. For additional information, see the Technical Report Summary on each individual property, filed as an Exhibit of this annual report on Form 20-F.

Material Assumptions for the Mineral Resource

Key Parameters
ObuasiUnitUnderground
Costs
Mining cost$/tonne mined
59.52-98.01(1)
Processing cost$/tonne treated42.06
G&A$/tonne treated22.92
Other Parameters
Royalties%3.0
MSO optimising cut-offg/t
3.15-4.0(1)
Mineral Resource cut-off gradeg/t
3.15-4.0(1)
Mineral Resource price$/oz1,500 
Metallurgical Recovery Factor%MetRF87
(1) Vary according to area

Estimation
The estimation technique is ordinary kriging and the primary estimation unit size is 20m by 5m by 15m. This estimation unit size is representative of the underground mining units and is considered appropriate given the style of mineralisation and mining methods. Compositing by length is employed and the influence of extreme grades are



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restricted by grade capping. Sample spacing is highly variable across the deposit and ranges from 10m by 10m (for grade control areas) up to 200m by 200m (for exploration targets). However, for the Mineral Resource, the maximum extrapolation from data points is 100m. Any areas beyond this, are considered to be upside potential rather than Mineral Resource.

Mineral Reserve
Refer to Table 2ato Paragraph (b) prepared in accordance with Regulation S-K 1300 (§ 229.1303 (Item 1303)) that summarises the gold Mineral Reserve for Obuasi at the end of the Fiscal Year ended 31 December 2021 based on $1,200/oz.

Refer to the Modifying Factors and price estimates under Material Assumptions for additional information on cut-off grades and metallurgical recovery. For additional information, see the Technical Report Summary on each individual property, filed as an Exhibit of this annual report on Form 20-F.

Year on year changes in Mineral Reserve - Moz
as at 31 December 2021Obuasi
CategoryProvenProbableTotal
Previous Year— 8.733 8.733 
Depletion— (0.086)(0.086)
Exploration— — — 
Methodology1.186 0.010 1.196 
Price— — — 
Cost— — — 
Geotechnical— — — 
Metallurgical— — — 
Operational— (1.580)(1.580)
Acquisition / Disposal— — — 
Other— — — 
Current Year1.186 7.078 8.263 
Net Difference1.186 (1.655)(0.470)
% Difference100 (19)(5)

Operational changes were primarily associated with design reviews in historically mined areas to eliminate low confidence stopes resulted in a net decrease. This was offset partially by methodology change due to geological re-interpretation and revision of estimation parameters in Adansi resulting in addition to the Mineral Reserve.

Material Assumptions for the Mineral Reserve

Modifying factors and price estimates
as at 31 December 2021Obuasi
Primary Commodity Price$/oz1200
Cut-off gradeg/t
3.82-5.01(1)
Dilution%
12-17(1)
Mining Recovery Factor%MRF based on tonnes
95-98(1)
Mining Recovery Factor%MRF based on g/t100
Mine Call Factor%MCF100
Metallurgical Recovery Factor%MetRF87
(1) Vary according to area

Estimation
The Mineral Reserve estimation considers mining criteria for the economic cut-off grade and minimum mining width for the anticipated mining method. All design and scheduling work is undertaken to an applicable level of detail by mine planning engineers in consultation with other technical specialists using Datamine Studio UGTM and Enhanced Production SchedulerTM (“EPS”) software.




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The cut-off grade parameters used include projected mining, processing, and general and administrative costs. A Mineral Reserve gold price of $1,200/oz was used. The cut-off grade also considers the metallurgical recovery factor (87% applied for all blocks), mining dilution and recovery, and tonne-kilometer haulage cost from all blocks as well as the fill type.

Stopes are designed using the Datamine Mineable Shape OptimiserTM (“MSO”) Software where the outputs are further optimised by manual edits. The stope shapes are generated at section internals of 15 to 20m based on geotechnical guidance for each block. The MSO allows the class field to be assigned to each stope generated. The mine design is reviewed taking into consideration the updated stope shapes, existing development and future infrastructure need. A LOM plan is generated which considers fleet and infrastructure capacities. All mining blocks are designed for the LHOS mining method. The Obuasi Mineral Reserve is reported from the LOM plan and only includes Measured and Indicated Mineral Resource.

Conclusion
All available, appropriate data has been used for Mineral Resource estimation. This includes historical geological and survey data collected over several decades prior to the merger of AngloGold and Ashanti in 2004. The risk or uncertainty in the estimates associated with the inclusion of the historical geological data has been mitigated by a comprehensive data validation project completed by a team of geologists between 2015 and 2018, which included the re-logging of all available holes below 50 Level. With regards to the historical survey data, given the mine's long history, there is uncertainty in the reliability of some of the previous mining volumes. Certain measures have been taken to lessen this risk including large-scale sterilisations for unreachable or extensively mined areas, or downgrades to the Inferred Mineral Resource category to reflect reduced confidence. However, verification of this historical information is ongoing and there may be additions and subtractions over time as further assessments are made, areas become accessible and more detailed investigations can be undertaken.

An independent external Mineral Resource and Mineral Reserve audit was undertaken in 2021 by SRK Consulting and found no significant flaws in process or output.

Map showing Obuasi planned infrastructure and licences
Map showing the location, infrastructure and mining license area for Obuasi. The coordinates of the mine, as represented by the plant, are depicted on the map and are in the UTM coordinate system.




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au-20211231_g9.jpg



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GUINEAAUSTRALIA


DescriptionGeneral laws relating to mining
Siguiri,
In Australia, with a multiple open-pitfew exceptions, all onshore minerals are owned by the Crown. The respective Minister for each state and territory is responsible for administering the relevant mining legislation enacted by the states and territories.



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Native title legislation applies to certain mining tenements within Australia. Australia recognises and protects a form of native title that reflects the entitlement of Aboriginal people to their traditional lands in accordance with their traditional custom and laws. Should native title claims or determinations exist, certain native title processes and procedures will apply under the Native Title Act 1993 (Cth) (the “Native Title Act”) before the tenure is granted. Tenure may be granted subject to conditions relating to native title rights. In the mining context, native title matters are managed as part of the tenement grant process. If disputes arise in relation to the grant of a particular tenement, they can be referred to the National Native Title Tribunal, established under the Native Title Act, for resolution. Native title legislation also provides a framework for compensation to be paid for acts that affect native title rights and interests. Ordinarily, the relevant Commonwealth or State government is liable to pay compensation for acts attributable to it. However, in the state of Western Australia, the Mining Act 1978 (WA) provides that an applicant for the grant of, or the holder of, a mining tenement is responsible for native title compensation, if determined to be payable, to native title holders.

Federal, state and territory Aboriginal and non-Aboriginal heritage laws operate in parallel to the native title legislation. State and territory heritage laws exist predominantly for the purposes of managing the impact of developments on sites, objects and areas of heritage significance. In Western Australia, impacts to Aboriginal cultural heritage are regulated by the Aboriginal Heritage Act 1972 (WA). However, this legislation will be repealed and replaced by the Aboriginal Cultural Heritage Act 2021 (WA) which was enacted in 2021 and is expected to become effective in early 2023. Where an area of heritage significance is placed on the national or world heritage registers, federal approval processes may also apply. To date, there has not been any significant impact on any of AngloGold Ashanti’s tenure due to native title or heritage legislation.

AngloGold Ashanti’s operating properties are located in the state of Western Australia where tenure is issued under, and mining operations are governed by, the Mining Act 1978 (WA). The most common forms of tenure in Western Australia are exploration and prospecting licences, mining leases, miscellaneous licences and general purpose leases. In most Australian states, if the holder of an exploration licence establishes indications of an economic mineral deposit in the area covered by the exploration licence and complies with the conditions of the grant, the holder of the exploration licence has a priority right against all others to be granted a mining lease which gives the holder exclusive mining rights with respect to minerals on the property.

It is possible for an individual or entity to own an area of land (including for infrastructure purposes) and for another individual or entity to be granted the right to explore for or mine any minerals located on or under the surface of the same area. The maximum initial term of a mining lease in Western Australia is 21 years and the holder has the right to renew the lease for an additional 21 years. Subsequent renewals are granted at the discretion of the respective state or territory’s minister responsible for mining rights. In Western Australia, mining leases can only be assigned with the prior written consent of the minister.

Tax laws relating to mining

Government royalties are payable by the holder of mining tenure in respect of minerals obtained from the relevant area of land at the rates specified in the relevant legislation in each state or territory. The royalty on gold production in Western Australia is payable quarterly at a fixed rate of 2.5 percent of the royalty value of gold metal produced. The royalty value is calculated by multiplying the amount of gold produced during a given month by the average gold spot price for that month. In addition, the holder of a mining tenement is required to pay annual rent in respect of the tenement. In Western Australia there is a minimum annual expenditure requirement for prospecting and exploration licences and mining leases. Exemptions from the expenditure requirement can be obtained if certain conditions are satisfied.

Environmental laws relating to mining

Mining tenements will be granted with endorsements and conditions relating to protection of the environment. Exploration and mining operations may also require separate approval from the state, territory or federal environment minister, which may require completion of an environmental impact assessment (including a public consultation period) pursuant to applicable environmental protection legislation prior to commencement. Further, a works 'construction' approval and an operating licence under the relevant environmental protection legislation in the state or territory may also be required for certain mine processing or mining-related operations. Depending on the jurisdiction, additional approvals may be required for the removal of native vegetation within the tenement, and the taking and use of water for exploration and mining operations.

AngloGold Ashanti’s rights and permits

AngloGold Ashanti has been granted 21-year term mining leases with rights of renewal to all of its mining areas in Australia, including its proportionate share of joint venture operations and accordingly it has, together with its joint venture partners where applicable, the exclusive right to mine in those areas. Both the group and its joint venture partners are fully authorised to conduct operations in accordance with relevant laws and regulations. The mining leases and rights of renewal cover the current life-of-mine at AngloGold Ashanti’s operations in Australia.

At Sunrise Dam, one mining lease (M39/1116) covers the deposit and mine infrastructure (approximately 7,808 hectares) and another mining lease (M39/1117) covers the water extraction infrastructure used to supply the operation with water (approximately 1,768 hectares). Both leases are currently in good standing, with expiry dates in 2038.




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The Butcher Well joint venture has security of tenure for all current exploration licences and for the contiguous mining leases that covers its Mineral Resource. There are three mining leases: mining lease (M39/165) which covers 602.35 hectares with expiry date in 2030, mining lease (M39/166) which covers 990 hectares with expiry date in 2030 and mining lease (M39/230) which covers 446.4 hectares with expiry date in 2032.

At Tropicana, the deposit is situated upon a single mining lease (M39/1096) covering approximately 27,228 hectares, which is currently in good standing, with an expiry date in 2036.

AngloGold Ashanti Australia Limited is also conducting early stage exploration activities in Queensland under the Mineral Resources Act 1989 (QLD). AngloGold Ashanti holds 11 exploration permits covering 215,300 hectares. Each permit is granted with an initial term of five years, renewable for two further periods of not more than five years each.


AMERICAS

Argentina

General laws relating to mining and land ownership

Mining regime

The Argentinean Mining Code governs mining activity in the country. Special regimes exist for hydrocarbons and nuclear minerals. In the case of most minerals, the Argentinean Mining Code establishes that the owner of the land is not the owner of the mineral rights; these are held by the national or provincial governments (depending on the location of the minerals). The national or provincial government, as applicable, is required by the Argentinean Mining Code to grant whomever discovers a new mine title to the mining concession.

The Argentinean Mining Code regulates exploration permits as well as mining concessions, or exploitation rights. Exploration permits grant their holders exclusivity rights to any mineral discoveries, including those made by a third party within the exploration area covered by the permit. Exploration permits are limited in time and as to the extent of the exploration area, are subject to the payment of a single-time fee, and also require a minimum exploration work programme and schedule to keep the permit in force. Priority for receiving a mining concession is given to the registered discoverer of the mine, which openedholds the exploration permit. Once the application for a mine has been submitted, the applicant may commence works and must submit a legal survey of the units requested for the new mine. The application and the legal survey may be opposed by third parties following specific proceedings set forth in 1997,the Argentinean Mining Code. Approval and registration of the legal survey by the provincial mining authority constitutes formal title to the mining concession.

Holders of mining concessions must comply with three main conditions: payment of an annual fee, investment of a minimum amount of capital, and the carrying out of a reasonable level of exploitation. Failure to do so could lead to forfeiture of the mining concession, which would then revert back to the Province.

In addition to the Argentinean Mining Code, between 1993 and 1995, Argentina implemented several federal laws to offer foreign companies attractive incentives for exploration and mining in Argentina, the Mining Investment Law (Law No. 24, 196), as amended (the “Mining Investment Law”), and related legal provisions being the most important one. Such incentives include, among other matters, import duty exemptions, accelerated depreciation of fixed assets, a 3 percent cap on provincial royalties set at pit-head value on the mineral extracted, value added tax refunds for exploration-related expenses incurred by companies registered under the Mining Investment Law, and, subject to the filing of a feasibility study for the relevant mining project, a 30-year stability as to the tax burden on the project and the customs and foreign exchange regimes and duties. Cerro Vanguardia S.A. (“CVSA”) obtained its tax, customs and foreign exchange stability certificate in 1996.

Glacier Law

On 30 September 2010, the National Law on Minimum Requirements for the Protection of Glaciers (Law No. 26, 639) (the “Glacier Law”) was enacted in Argentina, banning new mining exploration and exploitation activities on glaciers and “peri-glacial” areas. The Glacier Law establishes a broad definition of “peri-glacial” areas that, together with glacial areas, must be surveyed by an existing national government agency specifically appointed to this end every five years. The area where the Cerro Vanguardia project is located does not include any glaciers or peri-glacial areas according to the inventory of glaciers which was published in June 2018.

Rural Land Law

On 27 December 2011, the Argentinean National Congress passed a law on the Regime for Protection of National Domain over Ownership, Possession or Tenure of Rural Land (Law No. 26, 737) (the “Rural Land Law”) which implemented a set of rules restricting the ownership of rural land by foreigners (including foreign individuals or any kind of legal entity controlled by foreign individuals or legal entities). The main restrictions are as follows: (i) foreigners cannot own in the aggregate more than



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15 percent of the entire rural land of Argentina, the same cap being applicable to each Province and Municipality; (ii) foreigners will not be allowed to purchase more than 1,000 hectares in the so-called “zona núcleo”, which comprises the main agricultural areas of central Argentina or an “equivalent” surface depending on the location of the land and its productive potential; and (iii) foreigners will not be allowed to buy land that contains, or is adjacent to, relevant and permanent water bodies (such as rivers and lakes). Although exploration permits and mining concessions are not the subject matter of the restrictions placed by the Rural Land Law, certain rights granted to foreign mining companies under the Argentinean Mining Code may be restricted by this new law. For example, the right that holders of mining concessions currently have to force the surface owner to sell the land to the holder of the mining concession might be restricted if the concession holder is a foreign individual or a legal entity controlled by foreigners.

Federal Mining Agreement

On 13 June 2017, the national government and the provinces in whose territories the main mining projects of Argentina are located, signed the New Federal Mining Agreement (“FMA”). The purpose of the FMA is, amongst other things, to increase provincial revenues from the mining industry by creating legal entities owned by provincial governments that would work in association with private mining companies. This scheme is not new in Argentina and it has been used by some provincial governments, amongst them the Santa Cruz Province (through Fomicruz), in which the Cerro Vanguardia project is located. The FMA also contemplates other forms of revenues such as the formation of special trusts to be funded by mining companies to finance education, health and other programmes. Additionally, the FMA included setting forth mining royalties up to three percent of the gross value of commercialised minerals, without any deductions other than VAT. As the FMA has not yet been converted into law by the National Congress, its provisions are neither binding nor enforceable.

In Argentina, the current regulatory regime of royalty payments is expected to change and several different options and payment thresholds have been discussed. In December 2012, the Santa Cruz Province changed the mining royalty from one percent to three percent calculated at pit-head value of the mineral extracted thus bringing it to the cap of the Mining Investment Law.

Foreign exchange and export rules

Foreign exchange controls

On 1 September 2019, by means of Executive Decree No. 609/2019 (the “Export Controls Decree”), the Argentinean national government reinstated foreign exchange and export controls. The Export Controls Decree and related regulations of the Central Bank of Argentina impose, among other measures, the obligation of Argentinean residents to transfer to Argentina and/or sell for Argentinean pesos in the Argentinean foreign exchange market (mercado de cambios) the countervalue (contravalor) from their exports of goods within a specified period. The export of goods is regulated by Communication “A” 6882 of the Argentinean Central Bank (as modified) which establishes the specific regulatory requirements to implement the measures adopted by the national government in this area. Prior approval of the Argentinean Central Bank is generally required to access the foreign exchange market for transactions relating to the outflow of funds, except in certain circumstances. Until 30 June 2022, prior approval from the Argentinean Central Bank is not required for payments in connection with the import of goods if certain conditions are satisfied.

CVSA had a cash balance equivalent to $139 million at 31 December 2021. During 2021, AngloGold Ashanti received offshore dividends in a total amount of $19 million (net of withholding taxes) paid in US dollars. Out of the $139 million (equivalent) cash balance, monies equivalent to $131 million 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 $114 million to AngloGold Ashanti. While the approval is pending, the cash remains fully available for CVSA’s operational requirements.

Export duties

On 21 December 2019, the National Law on Social Solidarity and Productive Reactivation (Law No. 27, 541) (the “Solidarity Law”) was enacted. The Solidarity Law granted the national government power until 31 December 2021 to impose export duties which may not exceed certain caps. For example, the Solidarity Law provides that export duties on mining exports cannot exceed 8 percent of the taxable value or official FOB price. On 2 October 2020, the national government published Decree No. 785/2020 (the “Export Duties Decree”) which sets an export duty rate of 8 percent for certain goods, including doré bars and gold alloys, and revoked the provisions of Decree No. 793/2018 which had previously set the export duty at 12 percent ad valorem. While the Export Duties Decree was set to expire at the end of 2021, on 31 December 2021, the national government published Decree No. 908/2021, extending the deadline of export duties on certain goods, including doré bars and gold alloys, until 31 December 2023. It is uncertain whether the national government is empowered to extend such deadline beyond the date set forth in the Solidarity Law. These export duties, if not compensated with other tax reductions, affect the tax stability guarantee granted to CVSA in 1996 in light of the fact that at the time export duties were zero percent.

On 26 February 2019, the Argentinean tax and mining authorities published a resolution (RC 4428/2019) establishing an administrative procedure to be followed to obtain the reimbursement or compensation of federal taxes paid in excess of the total tax burden provided for by the applicable tax stability guarantee. CVSA initiated this new procedure to claim compensation for



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the export duties it paid in 2018 and 2019 as export duties are not contemplated by its tax stability guarantee. Prior to the publication of RC 4428/2019, CVSA had already submitted to the tax authorities claims for reimbursement of the export duties it paid from 2008 to 2015.

Pursuant to the new administrative procedure, the National Mining Secretariat issued favorable opinions regarding CVSA’s claims in respect of fiscal years 2018 and 2019, which amounted to approximately $3.5 million and $10.8 million, respectively, as of 31 December 2021. These claims are currently under review by the relevant customs authorities. On 14 July 2021, CVSA submitted its claim in respect of fiscal year 2020, which amounted to approximately $21.4 million as of 31 December 2021. The National Mining Secretary has not yet issued an opinion regarding this claim. CVSA expects to submit its claim in respect of fiscal year 2021 in due course.

Furthermore, CVSA has requested the tax authorities to apply the procedure provided for in RC 4428/2019 in respect of its historical claims for fiscal years 2008 to 2015 during which the imposition of export duties also exceeded CVSA’s total tax burden under its tax stability guarantee. However, these claims, which amounted to approximately $5.3 million as of 31 December 2021, are still being reviewed under the rules to challenge export duties instead of the new procedure provided for in RC 4428/2019. CVSA has appealed the application of those rules and a decision on this issue is pending.

In total, AngloGold Ashanti’s net export duty receivables (after discounting provisions) in Argentina amounted to $19 million as of 31 December 2021.

Environmental laws relating to mining

Any mining company wishing to commence or modify any mining-related activity, as defined by the Argentinean Mining Code, including prospecting, exploration, exploitation, development, preparation, extraction, and storage of mineral substances, as well as property abandonment or mine closure activity, is required to prepare and submit to the competent provincial environmental authority an Environmental Impact Assessment (“EIA”) prior to commencing the work. Each EIA is required to describe the nature of the proposed work, its potential risk to the environment, and the measures that will be taken to mitigate that risk. If accepted by the competent authority, the EIA is used as the basis to create a Declaration of Environmental Impact (“DEI”) to which the mining company is required to adhere during the mining-related activity at issue. The DEI is required to be updated at least on a biannual basis. Sanctions and penalties for non-compliance with the DEI are outlined in the Environmental Protection section of the Argentinean Mining Code, and may include warnings, fines, suspension of quality certifications, restoration of the environment, temporary or permanent closure of activities, and withdrawal of authorisation to conduct mining-related activities.

AngloGold Ashanti’s rights and permits

The mining concession holder of Cerro Vanguardia, the company’s operation in Argentina, is AngloGold Ashanti’s sole operationpartner, Fomento Minero de Santa Cruz S.E. (“Fomicruz”), which is wholly owned by the Santa Cruz Province. On 27 December 1996, Fomicruz entered into a usufruct agreement whereby CVSA was granted an irrevocable right to exploit the Cerro Vanguardia deposit (encompassing an area of approximately 543 km2) for a 40-year period. The mining licence (402642/CV/97), which covers the full Mineral Reserve, expires on 26 December 2036. CVSA is a corporation incorporated in Argentina indirectly controlled by AngloGold Ashanti (92.5 percent), with Fomicruz as minority shareholder (7.5 percent). On 14 August 1996, CVSA obtained its tax, customs and foreign exchange stability certificate, which expires in 2026.

Brazil

General laws relating to mining and land ownership

The Brazilian Constitution of 1934 states that, for purposes of exploration and exploitation, deposits and other Mineral Resources constitute property separate from the soil and belong to the Federal Union. Exploration and exploitation of such Mineral Resources may take place only with the Federal Union’s concession and in such a way as to protect the national interest. Federal law sets out penal and administrative sanctions for conduct and activities deemed harmful to the environment.

In Brazil, the National Mining Agency (“ANM”) is the state body within the Mines and Energy Ministry (“MME”) that is responsible for: (i) the registration of mining titles, (ii) the grant of authorisations and concessions, (iii) the supervision of mining activities and mining titleholders, and (iv) the issuance of supplementary rules in relation to mining activity.

Under the current Brazilian Mining Code, there are two kinds of mines: (i) claimstake mines (minas manifestadas), for which rights were acquired before 1934 and exist independently of any mining licence or authorisation from the Federal Government and for which the Mineral Resources constitute property of the landowner, and (ii) granted mines, which are those that rely on grants from the Federal Government for mineral exploration or exploitation (pursuant to the Brazilian Constitution of 1988). AngloGold Ashanti’s operations in Brazil consist of both claimstake mines and granted mines.

Mining activities in granted mines must be performed in two defined stages: (i) exploration, which entails defining and evaluating the deposit and determining the feasibility of exploitation, and (ii) exploitation, which involves coordinating operations aimed at the industrial exploitation of the mineral deposit, from the extraction of useful minerals to their processing. Exploration



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authorisations issued by ANM are valid for one to three years. Extensions can be obtained if necessary, as long as it is justified. In contrast, exploitation rights, once granted, are valid for the lifetime of the deposit, provided the mining titleholder complies with all legal requirements. Pursuant to these requirements, for example, titleholders must (i) start work on mineral exploitation within six months from the date of publication of the Exploitation Concession, (ii) continue their mining activities until the mineral deposit has been exhausted, in accordance with the Economic Exploitation Plan (Plano de Aproveitamento Econômico) approved by ANM, and (iii) refrain from suspending mining activities without prior notice to ANM.

Tax laws relating to mining

During the exploration period, the mining titleholder has to pay an Annual Rate per Hectare (Taxa Annual por Hectare or “TAH”), subject to a maximum value set by law. In the exploitation period, regardless of the legal regime governing the project (whether claimstake or granted mines), the mining titleholder has to pay the Financial Compensation for Exploiting Mineral Resources (Compensação Financeira pela Exploração Mineral or “CFEM”). The CFEM which is 1.5 percent for gold is currently calculated based on revenues.

At the end of 2011 and the beginning of 2012, the states of Minas Gerais, Pará, Amapá and Mato Grosso do Sul each created a new “inspection and control” tax (duty) on extraction and exploration activities as well as on the use of Mineral Resource carried out in those states. In the state of Minas Gerais, gold ore and silver ore are exempted from the collection of this new duty. At the end of 2020, the state of Goiás created a new “inspection and control” tax (duty) on extraction and exploration activities carried out in this state, which currently still needs to be implemented. The constitutionality of these “inspection and control” taxes has been challenged by the National Industry Confederation and the matter is currently pending before the Supreme Court of Brazil.

Environmental laws relating to mining

Following the catastrophic failure of a tailings storage facility (“TSF”) at the Córrego do Feijão iron ore mine owned by Vale at Brumadinho in the Republicstate of Guinea.Minas Gerais in Brazil in January 2019, executive, legislative and judiciary bodies, both at the federal and state levels, have generally increased scrutiny of mining operations in Brazil, and of TSFs in particular, and have been considering, and in some cases have adopted, stricter laws and regulations applicable to the approval, licensing, construction, management, closure and decommissioning of TSFs in Brazil.

At the federal level, the ANM issued Resolution No. 13/19 in August 2019 (replacing its earlier Resolution No. 4/19) which adopted additional regulatory measures to ensure the stability of TSFs, in particular those built or heightened by the upstream method or by any method declared as “unknown”. Among other things, ANM Resolution No. 13/19 prohibits the upstream method for the construction or heightening of tailings dams throughout the national territory of Brazil. It further requires operators to cease all storage and disposal activities at TSFs (known as “deactivation” or “desativação”) constructed or heightened upstream or by an “unknown” method by 15 September 2021 as well as to decommission such TSFs by 15 September 2022 to 15 September 2027 (depending on the capacity volume). To comply with the terms of ANM Resolution No. 13/19, the Serra Grande tailings dam in the state of Goiás must be decommissioned by 15 September 2025. The Serra Grande mine completed the process of reinforcing the dam walls of its upstream TSF, deactivating the TSF and migrating to dry-stacking operations, each by the 15 September 2021 deadline.

Furthermore, Federal Law No. 14.066/20, adopted in October 2020, also imposes requirements on companies to decommission upstream TSFs, including the Serra Grande tailings dam, by 25 February 2022 (which date is earlier than required by ANM Resolution No. 13/19). However, Federal Law No. 14.066/20 does permit extensions of the compliance deadline, with the consent of the ANM based on the technical plan for decommissioning. Serra Grande has submitted timely requests to obtain an extension of the compliance deadline until 2025 in line with the timeline set forth in ANM Resolution No. 13/19 and presented its technical plan for decommissioning. Feedback from the ANM on these requests is currently awaited. With respect to downstream (or “centerline”) TSFs, Federal Law No. 14.066/20 requires companies, to the extent that communities are located in the self-rescue zone of those TSFs, to implement one of the following measures for such structures: either (i) the structure must be deactivated and decommissioned, (ii) the population must be relocated, with reparations for loss of cultural heritage, or (iii) reinforcement works that guarantee the effective stability of the structure must be carried out, by decision of the public authorities, taking into account the previous nature of the dam in relation to the occupation and technical-financial viability of the alternatives. Even if reinforcement works are completed, deactivation and decommissioning of those TSFs will be required at the end of the life of the mine. All of the TSFs operated by AngloGold Ashanti in Brazil have communities located in self-rescue zones.

AngloGold Ashanti is planning to transition to dry-stacking operations for tailings storage at each location in Brazil in the near term. Capital expenditures required in 2021 to implement this new technology amounted to approximately $140 million. Capital expenditures for this work during the period 2022-2025 are expected to be material but, based on preliminary estimates to date, AngloGold Ashanti anticipates that annual expenditures for each of these years will be significantly less than in 2021 and will decline over time. Neither ANM Resolution No. 13/19 nor Federal Law No. 14.066/20 requires removal of all tailings material in connection with the decommissioning of TSFs (a process known as “decharacterisation” or “descaracterização”).






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At the state level, the state legislator in the state of Minas Gerais adopted Law No. 23.291/19 in February 2019 which contained the state’s policy on TSF safety and should be implemented in conjunction with the equivalent federal policy. Among other things, Law No. 23.291/19 determines the criteria for licensing and inspecting TSF structures, prohibits TSFs constructed or heightened using the upstream method, establishes bond requirements and holds management liable for non-compliance with its provisions. The government of Minas Gerais adopted several decrees in furtherance of this legislation.

On 16 February 2022, the ANM issued Resolution No. 95/22, which was rectified on 18 February 2022 and became effective on 22 February 2022. ANM Resolution No. 95/22 effectively consolidates prior federal resolutions on TSFs, including ANM Resolution No. 13/19 and establishes new criteria for the operational management of TSF structures, changes the criteria related to the risk classification of TSF structures and emergency levels and imposes deadlines for compliance with obligations, in addition to setting new criteria for suspension, embargo and interdiction of TSF activities.

Further amendments to the regulatory requirements in Brazil governing such TSFs and related dams may be adopted in 2022.

AngloGold Ashanti’s rights and permits

At AGA Mineraçao, Cuiabá has a single mining concession (No. 000.323/1973) covering a total area of 3,662 hectares. In February 2022, two additional mining concessions for Cuiabá (Nos. 830.937/1979 and 831.027/1980) were published, which cover an additional area of 816.2 hectares. Lamego has a single mining concession (No. 932.710/2017) covering a total area of 1,622 hectares. Córrego do Sítio is hosted by five geographically contiguous mining concessions (i.e., Nos. 930.556/2000, 930.181/2008, 830.129/1982, 833.472/2003 and 830.943/1979) covering a total area of 6,017 hectares.

At Serra Grande, the company has interests in or agreements over 25,719.94 hectares in the Crixás greenstone belt, representing approximately 87 percent of the relevant tenements that correspond to all current exploration and mining activities. These have been held since 1987. The mining concessions include mining concession No. 002.286/1935 covering an area of 4,206.88 hectares, mining concession No. 960.658/1987 covering an area of 1,946.89 hectares, mining concession No. 860.746/2005 covering an area of 88.28 hectares, mining concession No. 862.103/1994 covering an area of 125.41 hectares and mining concession No. 804.366/1975 covering an area of 196.05 hectares.

All of the company’s mining concessions in Brazil are currently active, in good legal and operational standing, and free of liabilities and/or major obligations. Brazilian mining concessions remain valid up to the depletion of the Mineral Reserve and Mineral Resource pursuant to the Economic Exploitation Plan approved by the ANM and in accordance with the required environmental permits, and as a result do not have an explicit expiry date.


Colombia

General laws relating to mining and land ownership

General regime

The Colombian Constitution declares that the sub-soil and the non-renewable natural resources located within the Colombian territory are the property of the Colombian State. The underlying principle of Colombian mining legislation for the granting of mining concession contracts over free areas is first in time, first in law. Mining activities are regulated by the Colombian Mining Code, Act 685, 2001.

The filing of an exploration and exploitation proposal triggers a right of preference to obtain rights over the targeted area, provided it is available. Such area cannot exceed 10,000 hectares. Upon receipt of a proposal, the relevant government agency determines whether another proposal or contract already governs the area. If there are no pre-existing claims, the government agency grants the applicant a “free area”.

With respect to land ownership, a mining concession in Colombia does not grant the rights over the surface required to develop a mining project. Therefore, in order to develop a mining project, it is required to acquire and secure access to the land (soil). This can be achieved in several ways, such as (i) purchase of the land, (ii) a transit easement, (iii) a mining easement, and (iv) the special acquisition process or expropriation.

Concession contract

As the sub-soil and the non-renewable natural resources located within the Colombian territory are property of the Colombian State, the Colombian Mining Authority (Agencia Nacional de Minería) grants the authorisation to explore and exploit minerals through a concession contract.

Such concessions allow concessionaires to conduct the studies, works and facilities necessary to establish the existence of minerals and to organise their exploitation. Upon being awarded a mining concession, a company must take out an insurance policy to cover the costs associated with potential environmental damage as well as breaches of its mining obligations. It may



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then proceed with exploration activities. Once the exploration phase is complete, the concessionaire files a new plan regarding proposed works and facilities. With the award of the mining concession or tenement contract, there are specified timelines for the completion of the various phases of a mining project, e.g. exploration, construction, exploitation. The company must comply with these timelines unless performance is suspended, for example, due to force majeure or extensions or modifications to the timelines. A grant of force majeure is for one year and must be renewed on an annual basis. If the company does not comply with the specified timelines for the completion of the various phases of a mining project, the mining authority may revoke the company's concession contracts or mining licences. As a general matter, any company that wishes to obtain a renewal of its concession contract must be up to date in all its legal and contractual obligations and must present a new plan of works and facilities to be implemented after the contract is renewed.

PINES programme

In 2013, the national government instituted the PINES programme designed to aid promoting certain projects that are deemed to have a national interest. This designation provides for greater oversight from the national government. All of our three advanced exploration projects (La Colosa, Quebradona and Gramalote) were considered of national strategic interest. Currently, Quebradona and Gramalote remain in the PINES programme, but La Colosa was temporarily removed as such (until the force majeure is over).

Tax laws relating to mining

From the moment the concession contract is registered with the Mining Register, the concessionaire has several financial obligations, including the payment of (i) a surface fee during the exploration, construction and assembly stage and (ii) royalties.

Once exploration is complete and the mining infrastructure in place, the concessionaire must begin paying royalties to the Colombian government, consisting of a percentage of the primary product and sub-products being exploited. The percentage of the royalty depends on the regulation in force when the concession contract is registered. In the case of the Quebradona project, the deposit mainly consists of copper followed by gold and silver. There is a 5 percent royalty for copper on the production value at the mine’s or well’s edge (i.e. when extracted from the subsoil). In case of gold and silver, a royalty of 4 percent on the production valued at the mine’s or well’s edge (i.e. when extracted from the subsoil) was established.

Furthermore, Colombian law establishes that once the environmental licence is granted the concessionaire must invest 1 percent of the project’s value to benefit the basins covered by the environmental licence.

Environmental laws relating to mining

In order to obtain an authorisation to carry out a mining project, a company must prepare an Environmental Impact Study (“EIA”) for approval by the National Environmental Licensing Authority of Colombia (Autoridad Nacional de Licencias Ambientales or “ANLA”). Global environmental licences are granted for the entire life of the project and cover all phases: construction, assembly, operation, maintenance, dismantling, final restoration, abandonment and/or termination. Construction and assembly permits (Plan de Trabajos y Obras or “PTO”) are granted by the mining authority with jurisdiction over the project.

In Colombia, the mining authority has the discretion to declare the underlying concession void if the specific company which holds the concession breaches applicable environmental laws or regulations. If the mining authority were to exercise such discretion, a company whose concession was voided would be required to abandon its projects and all of its other existing mining concession contracts. Pending proposals for new mining concession contracts would also be cancelled and the company would be banned from doing business with the Colombian government for a period of five years. As a result, the company would be unable to conduct any mining exploration or development activities during such period. However, this would not affect other subsidiaries of the company operating in Colombia, if those concession contracts are held singularly or in concert with joint venture partners.

Mining activity is prohibited in national parks, regional parks, protected forest reserves, paramos (included in Act 1753, introduced in 2015) and wetlands, pursuant to the Ramsar Convention on Wetlands of International Importance.Some forest reserves are not “protected” but are set aside for active forestry purposes and the concessionaire must obtain a specific permit to partially and temporarily change the use of the soil before pursuing exploration activities. In addition, Resolution 187/2016, passed by the national government in late 2016, identifies areas that the Ministry of the Environment has determined to be “paramos” areas, or paramos transition areas. In these areas there are limitations on industrial or commercial work being performed, including mining. The regulation also specifies a process to determine what work, if any, can be performed in a paramos-designated area.

AngloGold Ashanti’s rights and permits

The La Colosa project managed by AngloGold Ashanti Colombia S.A.S. (“AGA Colombia”) remains in force majeure due to delays in granting environmental permits by national and local environmental authorities, thereby preventing AGA Colombia from undertaking further exploration activities. The current one-year grant of force majeure, during which time the specified timelines for completing the various phases of the mining project under the concession contract are suspended, will expire on



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22 June 2022. AGA Colombia applied for a mining area integration (consolidation) of its concession contracts related to La Colosa, in respect of which AGA Colombia was not in compliance with some of the specified timelines. The application for mining area integration (consolidation) was approved in March 2017, which remedied the non-compliance of each consolidated concession and reset the specified timelines. La Colosa now has a single integrated mining concession contract (EIG-163) which covers a total area of 9,210 hectares and expires on 28 February 2037.

Minera de Cobre Quebradona S.A.S. B.I.C. (“MCQ”) which manages the Quebradona project, obtained the integration of concession agreement 5881 in October 2016 and registered in December 2016. As a result, MCQ was granted the exclusive right to explore, take ownership and dispose of the mineral reserves (ore) extracted from the concession area. MCQ has the right to request an extension of up to 30 years, at least two years before the expiration of the operating period. This extension is not automatic, and the request must be filed with new technical, economic, environmental and social studies that demonstrate the status of the mineral resources. Concession contract 5881 initially covered a total area of 7,593 hectares, which was reduced to 4,881.89 hectares by the relevant mining authority (Secretaría de Minas de Antioquia) on 4 March 2022. It will expire in May 2037 and is currently in its sixth year of the integrated exploration phase. In September 2021, the permits for the construction and mining operation were approved by the relevant mining authority (Secretaría de Minas de Antioquia). On 4 November 2021, ANLA officially notified AngloGold Ashanti of its decision to ‘archive’ the environmental licence application relating to the Quebradona project. ANLA has neither denied nor granted the licence, but deemed that the information provided by AngloGold Ashanti is not enough for this authority to take a substantive decision. On 18 November 2021, AngloGold Ashanti appealed the archiving decision in order to secure further details on the specific additional information ANLA requires to make a determination.

The Gramalote project is organised as a joint operation between AngloGold Ashanti (through AGA Colombia Holdings Limited and AngloGold Ashanti Holdings plc) and B2Gold (through B2Gold Corp. and Graminvest Ventures Limited). Gramalote Limited, a company incorporated under the laws of British Virgin Islands which is the legal vehicle operating the joint operation, established a Colombian branch, Gramalote Colombia Limited (“GCL”), to carry out activities in Colombia and obtain the mining concession contracts necessary to develop the Gramalote project. The Gramalote joint operation has been operated by B2Gold since January 2020. Pursuant to an integrated mining concession contract No. 14292, GCL was granted the exclusive right to explore, take ownership and dispose of the mineral reserves (ore) extracted from the concession area (which covers a total area of 8,720.71 hectares and includes the Gramalote and Monjas anomalies) until April 2043. GCL has the right to request an extension of the operating period for up to 20 years, and, if exercised, such request to extend must include new technical, economic, environmental and social studies that demonstrate the status of the mineral resources. Currently, concession contract No. 14292 is in the phase of construction and assembly, pending resettlement of communities and the formal start of construction activities. GCL has received an environmental licence granted by ANLA and permits for the construction and mining operation which were approved by the relevant mining authority (Secretaría de Minas de Antioquia). GCL also holds an exploration concession No. 4894 (which covers a total area of 2,279.32 hectares and includes the Trinidad anomaly) which expires in 2044.

United States of America

Nevada

Mineral and surface rights in the United States are owned by private parties, state governments or the federal government. The majority of land utilised for precious metals exploration, development and mining in the western United States is owned by the federal government. The right to mine on such federal land in western states is governed by the U.S. General Mining Law of 1872, as amended (the “General Mining Law”). The General Mining Law allows mining claims (for mining and mining-related activities) on certain federal lands after proper compliance with claim location and maintenance requirements.

Mineral exploration activities in Nevada are also generally subject to applicable federal, state, and local permitting requirements, but the specific regulatory authorisations required for the company’s activities are based on the nature and location of the exploratory work. Many of the company’s Nevada operations are currently conducted under what is generally referred to under federal law as a notice-level operation subject to 43 CFR § 3809.21, while projects that are more advanced require additional permitting, including a Plan of Operations approved by the federal Bureau of Land Management (“BLM”). The State of Nevada Division of Environmental Protection’s Bureau of Mining Regulation and Reclamation (“BMRR”) also regulates mining within the state of Nevada. However, exploration projects of 5 acres or less, the scope of a notice-level operation under federal law, are exempt from BMRR regulation. Certain of the company’s early-stage exploration activities fall within this exemption.

In Nevada, the company’s wholly-owned subsidiaries hold a significant number of unpatented mining claims on federal lands. This includes approximately 1,600 unpatented claims (covering approximately 32,000 acres) that are now controlled by the company as a result of its acquisition of all of the outstanding stock of Corvus Gold Inc., which closed on 18 January 2022. The company is currently engaged in exploration activities on certain of its unpatented claims that include, but are not limited to, geological and spectral mapping, surface geochemical sampling, geophysical surveying and RC and/or diamond drilling. The main projects of the company in Nevada include the Silicon Project, the North Bullfrog Project and the Mother Lode Project.

In 2021, the state of Nevada enacted a new tax on Nevada gold and silver mines (in addition to the existing Nevada net proceeds of minerals tax, which is a 5 percent net tax). The new mining tax is a 0.75 to 1.1 percent excise tax based on a mine’s annual gross revenue.



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Minnesota

In Minnesota, AngloGold Ashanti Minnesota Inc. completed early-stage reconnaissance exploration activities to determine the potential for gold mineralisation in the northern counties of Minnesota. Based on the achieved results, the company terminated its exploration activities in the state. In early 2021, the company completed closing out its activities in Minnesota in accordance with state and company requirements.

Potential regulatory changes

Over the years, the U.S. Congress has considered a number of proposed amendments to the General Mining Law and other federal statutes relating to mining. Among the significant features contained in previously proposed legislation were a production royalty obligation, new and more stringent environmental standards and conditions, additional reclamation requirements, extensive new procedural steps which would likely result in extended permitting timelines and granting counties and other entities the ability to petition the U.S. Secretary of the Interior to make certain areas unavailable for the location of unpatented mining claims. In June 2020, former President Trump signed an executive order directing certain federal agencies to streamline the review processes associated with permitting of infrastructure and natural resources projects. Many of those policies have subsequently been rescinded by the Biden administration. While certain other executive orders may favorably affect the timing of our permit and project approvals, the impact is yet to be determined and remains uncertain.

AGA is currently unaware of any other new federal or state legislative or regulatory changes or rule-making that has been proposed or enacted that would adversely affect its current exploration programmes. If any requirements, standards or conditions were adopted in the future that imposed additional or new obligations or costs on AGA in connection with our exploration or extraction activities in the United States, the company’s operations in Nevada could be adversely affected.


MINE SITE REHABILITATION AND CLOSURE

Closure, an integral part of operations

All mining operations eventually cease. An integral aspect of operating AngloGold Ashanti’s mines is ongoing planning for and, where feasible, implementation of concurrent rehabilitation, together with an estimate of associated liability costs and the placement of adequate financial provisions and assurances to cover these costs.

All of AngloGold Ashanti’s operations are required to comply with its group closure planning standard, as well as applicable law and regulations, as their closure plans are reviewed and updated.
Closure planning is an activity that starts at the exploration and mine design stage and continues throughout the life of mine:
•New projects include a conceptual closure plan which anticipates future closure and associated rehabilitation activities and related costs.
•The closure plan is reviewed annually and updated every three years (annually in the final three years of a mine’s life) or whenever significant changes are made, taking into account operational conditions, planning and regulatory requirements, advances in international good practice (e.g., ICMM Mine Closure: Good Practice Guide) and technological developments.

For many of the older mines, closure planning and the evaluation of environmental liabilities is a complex process. This is particularly so in Brazil and Ghana, where many of the mining and other operations have taken place for more than fifty years. A particular challenge is concurrent rehabilitation, which is carried out while a mine is still operational. This practice serves to decrease the ultimate liability and reduces the final rehabilitation and closure work that must be undertaken, but has the potential to sterilise Mineral Reserve, which the company might wish to exploit should conditions, such as the gold price, change.

The company’s group closure standard stipulates that closure planning must be undertaken in consultation with the stakeholders. In the course of these consultations, different issues are raised which require site-specific solutions. Livelihood preservation and infrastructure are often key requirements. Communities also require information on the company’s rehabilitation of the landscape and on any lasting environmental impacts. Long-term remediation obligations, including decommissioning and restoration liabilities relating to past operations, are based on environmental management plans and compliance with current environmental and regulatory requirements.

Provisions for decommissioning and rehabilitation costs are made when there is a present obligation, it is probable that expenditure on decommissioning and rehabilitation work will be required and the cost can be estimated within a reasonable range of possible outcomes. These costs are based on currently available facts, technology expected to be available at the time of the rehabilitation, laws and regulations presently or virtually certain to be enacted and previous experience in the rehabilitation of mine sites.

Decommissioning costs and restoration costs are provided at the present value of the expenditures expected to settle the obligation, using estimated cash flows based on current prices. Estimates are discounted at a pre-tax rate that reflects current market assessments of the time value of money.




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Provisions for decommissioning and for restoration (excluding joint ventures and discontinued operations) increased from $674 million in 2020 to $688 million in 2021. This increase mainly relates to changes in discount rates based on global economic assumptions. The provisions were also impacted by changes in mine plans, resulting in a change in cash flows.


SUSTAINABILITY AND ENVIRONMENTAL, SOCIAL AND GOVERNANCE (“ESG”) MATTERS

AngloGold Ashanti’s sustainability approach is fundamental to how the company operates its business, as well as its ability to create long-term value for its shareholders, employees and social partners through safely and responsibly exploring, mining and marketing its products. Sustainability and safety are integrated into the company’s business and operations at all levels through various frameworks, standards and policies, and the company measures its performance in achieving its goals against its sustainability and other ESG metrics, as well as its engagement with stakeholders.

In mitigating the risks and impacts that are an inherent part of its business, AngloGold Ashanti is informed by an annual assessment of its key ESG issues. This process is aligned with guidance published by the International Integrated Reporting Council (“IIRC”), the Sustainability Accounting Standards Board (“SASB”), the Global Reporting Initiative (“GRI”) Standards and the Accountability AA1000 Stakeholder Management Standard. This assessment is annually reviewed by AngloGold Ashanti’s senior leadership and approved by the Social, Ethics and Sustainability Committee (the “SES Committee”).

AngloGold Ashanti’s board of directors, assisted by the SES Committee, has ultimate responsibility over environmental, safety, health and ethical matters and for the integration of sustainability objectives into AngloGold Ashanti’s business. This includes oversight of the company’s stakeholder engagement framework and structures, which apply to investors, employees, governments, suppliers and communities, at every stage of its business from exploration to mine closure. Group Corporate Affairs and Sustainability is responsible for development of management systems and supports the company’s general managers in the day-to-day implementation of its sustainability strategy.

AngloGold Ashanti maintains a set of policies and procedures to guide the company in acting as a responsible corporate citizen, including the Code of Business Principles and Ethics which sets requirements for the implementation of key corporate policies and guidelines and applies to all management and employees, and to maintain compliance with applicable environmental, health and safety (“EHS”) laws. In 2021, AngloGold Ashanti continued with the implementation of the Integrated Sustainability Information Management System (“iSIMS”), in order to improve internal reporting and better integrate and monitor sustainability activities with respect to its broader business. This common reporting system for all sustainability disciplines, from safety, health and security to community and environmental management, is expected to help provide timely information in each of these areas, and to facilitate transparency and decision-making in its processes and practices.

Significant EHS requirements and ESG risks and trends affecting the company’s mining and processing operations are described below.

EHS Regulatory Compliance

AngloGold Ashanti is subject to extensive EHS laws and regulations in the various jurisdictions in which the company operates. These requirements govern, among other things, extraction, use, conservation and discharge of water; air emissions (including dust control and greenhouse gases (“GHGs”)); regulatory and community reporting; clean-up of contamination; land use and conservation of protected areas; rehabilitation and closure of mined land; worker health and safety and community health; and the generation, transportation, storage and disposal of solid and hazardous wastes, such as reagents, radioactive materials, and mine tailings. Environmental laws and regulations applicable to the company’s operations, including the requirements contained in environmental permits, are generally becoming more restrictive.

Capital and operating costs to comply with EHS laws and regulations have been, and are expected to continue to be, significant to AngloGold Ashanti. In addition, AngloGold Ashanti could incur fines, penalties and other sanctions, environmental clean-up costs, and third-party claims for personal injury or property or natural resources damages; suffer reputational damage; and be required to install costly pollution control equipment or to modify or suspend operations, as a result of actual or alleged violations of, or liabilities under, EHS laws and regulations. Failure to comply with applicable EHS laws and regulations may also result in the suspension or revocation of permits and, in some jurisdictions, the right to mine a given concession. AngloGold Ashanti’s ability to obtain and maintain permits and other approvals and to successfully operate near host communities may be adversely impacted by real or perceived effects on the environment or human health and safety associated with AngloGold Ashanti’s or other mining companies’ activities. In addition, unknown environmental hazards may exist at the company’s properties which may have been caused by previous owners or operators.

Water Management

AngloGold Ashanti’s operations are heavily dependent upon access to substantial volumes of water for use in the mining and extractive processes and typically are subject to water-use permits or rights to extract water from certain natural sources that govern usage and require, among other things, that mining operations maintain certain water quality upon discharge. Water supply, quality and usage are areas of concern across all of the company’s operations, including with respect to the company’s



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mining operations in Ghana and Brazil, as well as its mine development project at Quebradona in Colombia, where there is significant potential environmental and social impact and a high level of stakeholder scrutiny. Any failure by the company to secure access to suitable water supplies, or achieve and maintain compliance with applicable requirements of the permits or licences, could result in curtailment or halting of production at the affected operations. Incidents of water pollution or shortage can, in certain cases, lead to community protest and ultimately to the withdrawal of community and government support for AngloGold Ashanti’s operations. A failure by the company to comply with water contamination related directives may result in further, more stringent, directives being issued against the company, which may, in some cases, result in a temporary or partial shutdown of some of the company’s operations.

Where feasible, the company operates a “closed loop” system which recycles the water used in its operations without discharging it to the environment. In some areas, however, such as Ghana and Brazil, high levels of rainfall and surface water runoff mean that a closed loop system is not feasible and that discharges, after water treatment where necessary, must take place.

Waste Management

During open-pit mining, large volumes of soil and/or rock (overburden) are mined to expose the ore body. Similarly, waste rock is mined during drilling and developing access to underground ore bodies. Overburden and waste rock typically contain sub-economic levels of gold and are deposited as large waste rock facilities. Mine tailings are the process waste generated once grinding and extraction of gold from the ore is completed in the milling process and are typically deposited as slurry in large tailing storage facilities (“TSFs”) specifically designed for this purpose.

The impact of dust generation, breach, leak, or other failure of a waste rock facility or TSF, including any associated dam, can be significant, and the company therefore monitors such facilities closely in accordance with the company’s internal standards, independent review, national regulatory requirements, industry standards and commitments made to local communities. The occasional well-publicised failure of a third-party TSF and the potential impact of such failure also mean that these facilities are generally tightly regulated. An incident at the company’s operations could result, among other things, in enforcement, obligations to remediate environmental contamination, negative press coverage, and claims for property or natural resources damages and personal injury by adjacent communities. Incidents at other mining companies’ operations could result in governmental action to tighten regulatory requirements and restrict certain mining activities, in particular with respect to TSFs, also in respect of other mine operators in that region.

For example, following the catastrophic failure of a TSF at the Córrego do Feijão iron ore mine owned by Vale at Brumadinho in the state of Minas Gerais in Brazil in January 2019, tailings were discharged into the mine’s administrative area and part of the local community, reportedly resulting in death or injury to hundreds of people. As a result of this incident, there has been considerably increased regulatory scrutiny in Brazil and other areas on mining operations generally, and the requirements applicable to the approval, licensing, construction, management, closure and decommissioning of TSFs have generally become far more stringent. For further information on the regulatory framework governing TSFs in Brazil, see “Item 4B: Business Overview—The Regulatory Environment Enabling AngloGold Ashanti to Mine—Americas—Brazil”.

In addition, a new Global Industry Standard on Tailings Management (“GISTM”) was established in August 2020 by a panel comprised of industry and non-governmental organisation (“NGO”) experts, the compliance costs of which are not expected to be material to AngloGold Ashanti. AngloGold Ashanti has committed to comply with the GISTM at all of its TSFs by August 2025.

Groundwater Impacts and Environmental Remediation

As AngloGold Ashanti or its predecessors have a long history of mining operations in certain regions, issues may arise regarding historical, as well as potential future, environmental or health impacts in those areas, for which AGA, as the current owner/operator, may be legally responsible. For example, AngloGold Ashanti has identified groundwater contamination plumes at certain of its operations. Numerous scientific, technical and legal studies have been undertaken to assist in determining the magnitude of the impact and to find sustainable remediation solutions. Based on those studies as well as discussion with regulators, the company has taken steps, including monitored natural attenuation and phyto-technologies, to address soil and groundwater contamination.

Subject to the completion of site-specific trials and potential technologies being confirmed as viable remediation techniques, no reliable estimate can be made at this time for the obligation. Should these obligations be significant, this could have a material adverse impact upon AngloGold Ashanti’s results and its financial condition.

Climate Change and GHG Regulation

At AngloGold Ashanti, climate change is a board of directors-level governance issue, overseen by the SES Committee and the Audit and Risk Committee. The Climate Change Working Group, established in 2020 and comprised of functional leaders from across the business, reports to the SES Committee. AngloGold Ashanti’s Climate Change Strategy, which was approved by the board of directors in November 2021, seeks to embed the management of physical, regulatory and transition climate change-related risks, as well as climate change-related opportunities, into the company’s strategic and operational planning processes.



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In 2021, AngloGold Ashanti committed to the International Council on Mining & Metals (“ICMM”) target of achieving net zero Scope 1 and Scope 2 GHG emissions by 2050, and, in partnership with value chain partners, to set Scope 3 GHG reduction targets, if not by the end of 2023, as soon as possible thereafter.

In December 2015, certain members of the international community negotiated a treaty at the Conference of the Parties of the UN Framework Convention on Climate Change in Paris (the “Paris Agreement”). The Paris Agreement, which came into force on 4 November 2016, requires developed countries to set targets for emissions reductions. As a result, measures designed to limit or reduce GHG emissions, both mandatory and voluntary, have been, and are expected to be, implemented at national or regional levels in various countries.

New regulatory requirements, or changes required to effectively transition to a low-carbon economy, could require AngloGold Ashanti to reduce its direct GHG emissions or energy use, change its fuel mix or incur significant costs for GHG emissions permits or taxes, including for those costs or taxes passed on by electricity utilities which supply the company’s operations. AngloGold Ashanti could also incur significant costs associated with capital equipment, GHG monitoring and reporting and other obligations to comply with applicable requirements. The most likely source of these obligations is through state-level implementation of new emissions or financial obligations pursuant to evolving climate change regulatory regimes.

For example, in 2010, Brazil launched the National Climate Change Policy, which established a voluntary national GHG reduction target of 36.1 percent to 38.9 percent below the projected emissions in 2020 for “business as usual”. The policy required the development of sector-specific plans in order to meet the target and provided for a Brazilian GHG trading scheme, which is yet to be designed. While Brazil is not yet requiring mandatory GHG emissions reporting at the national level, some state environmental agencies have requested companies to voluntarily submit GHG emissions management plans. However, the states of Goiás and Minas Gerais (in which AngloGold Ashanti operates) do not currently require GHG emissions management plans for mining projects. In 2015, Brazil announced, in connection with its commitments under the Paris Agreement, economy-wide absolute mitigation targets providing for a 37 percent reduction in GHG emissions by 2025, as compared to 2005, and a goal to reduction emissions by 43 percent by 2030 compared to 2005 levels.

In addition, in Australia, the Safeguard Mechanism (Rule 2015), through the National Greenhouse and Energy Reporting (“NGER”) scheme, provides a framework for Australia’s largest emitters to measure, report and manage their emissions. The Safeguard Mechanism applies to facilities with Scope 1 covered emissions of more than 100,000 tonnes of CO2e per fiscal year. During the 2018/19 fiscal year, Tropicana’s emissions were within its authorised threshold and Sunrise Dam was required to purchase offsets for emissions that were 0.8 percent above its safeguard threshold, the cost of which was immaterial. Two amendments to the Safeguard Mechanism (Rule 2015) enacted in March 2019 and May 2020 allowed for the application of transitional calculated baselines using estimated CO2-e emissions intensities. Based on the production and emissions forecasts, the Australian mining operations applied to use transitional calculated baselines in 2020 for Sunrise Dam and Tropicana, which were approved by the Clean Energy Regulator effective 1 July 2019 to 30 June 2022 for both operations. Thereafter, there is a requirement to apply for production-adjusted baselines. Accordingly, assuming the company’s operations (and resultant emissions) are consistent with the forecasts in the current business plan, the Australian mining operations should not be required to purchase emissions offsets for the business to cover the period prior to June 2022. In any event, the cost of such offsets, if ultimately required to be purchased, including due to a change in the operations under the business plan prior to June 2022, are not anticipated to be material to the company’s business.

In addition to more stringent requirements and commitments, AngloGold Ashanti’s operations are subject to a number of physical risks from climate change, such as changes in rainfall rates or patterns resulting in floods or droughts, reduced water availability, higher temperatures and extreme weather events. Such events or conditions, particularly including flooding or inadequate water supplies, could disrupt mining and transport operations, mineral processing and rehabilitation efforts, create resource or energy shortages or damage the company’s property or equipment and increase health and safety risks on site. In consultation with external consultants, physical climate risk assessments were undertaken for all operations using current climate models for the business and various decarbonisation scenarios and climate adaptation plans were outlined. These adaptation plans continued to be further refined in 2021.

Occupational Safety and Health

AngloGold Ashanti is subject to a variety of laws and regulations in each of the jurisdictions where the company operates that are designed to protect and improve the safety and health of employees. In some of the jurisdictions in which AngloGold Ashanti operates, the government enforces compulsory shutdowns of operations to enable investigations into the cause of accidents at those operations.

Safety remains a priority for AngloGold Ashanti and a focus of AngloGold Ashanti’s long-term sustainability approach, as well as the company’s continuing efforts to manage the risks inherent to its operations, to model critical controls and to strengthen safety protocols and preventative measures. Although AngloGold Ashanti has made significant strides in improving safety in recent years, sadly, the company lost two colleagues during 2021, and some of its operations recorded a year-on-year regression in the all injury frequency rate.




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AngloGold Ashanti’s Group Safety Strategy, which was revised in 2021 and is expected to be implemented by 2024, seeks to integrate operational risk management and key performance indicators at all levels of the organisation and maintain alignment with global safety standards. The SES Committee oversees the implementation of the Group Safety Strategy. All operations, other than Obuasi, have been certified to ISO 45001:2018, which has replaced the OHSAS 18001:2007 series. Obuasi is scheduled to be certified in 2022.

Community Health and Tropical Diseases

AngloGold Ashanti is also subject to health and safety regulations relating to occupational disease. The primary areas of focus in respect of occupational health of employees within the company’s operations are noise-induced hearing loss (“NIHL”) and occupational lung diseases (“OLD”). OLD includes occupational tuberculosis and silicosis in individuals exposed to silica dust. Silicosis has been particularly prevalent in South Africa and has also arisen at the company’s Africa and Brazilian operations, albeit to a far lesser extent. AngloGold Ashanti provides occupational health services to its employees at its occupational health centres, clinics, and through outsourced service centres. The company continues to improve preventative occupational hygiene initiatives, such as implementing various control measures to prevent hazardous exposures, and providing employees with Personal Protective Equipment.

In 2019, the Johannesburg High Court approved the settlement of existing silicosis and tuberculosis class actions against AngloGold Ashanti and other gold mining companies in South Africa. The recent sale of the company’s South African operating assets and liabilities did not include the silicosis or tuberculosis settlement obligations relating to South African employees, which were retained by AngloGold Ashanti. For further information, see “Item 18: Financial Statements—Note 1.2—Accounting Policies—Significant Accounting Judgements and Estimates—Provision for silicosis”.

In addition to OLD, HIV and AIDS and associated diseases remain major health care challenges faced by AngloGold Ashanti’s Africa region operations. AngloGold Ashanti continues to implement programmes to help those infected with HIV and prevent new infections from spreading.

Malaria and other tropical diseases also pose health risks at all of the company’s operations in Central, West and East Africa where such diseases may assume epidemic proportions because of ineffective national control programmes. Malaria is a major cause of death in young children and pregnant women and also gives rise to deaths and absenteeism in adults. All affected company operations have malaria control programmes in place. The Ghana Obuasi malaria control programme continues to roll-out indoor residual spraying programme in 16 districts of Ghana in partnership with the Global Fund and the Ghana Department of Health.

In 2021, the COVID-19 pandemic continued to put strain on businesses and socio-economic systems across the globe, including as new variants of concern emerged and drove considerable resurgences in cases throughout the year. AngloGold Ashanti continued to direct significant resources to pandemic controls within the company as it worked to limit the spread of the virus whilst keeping operations running. The pressure on labour supply, travel restrictions limiting employee mobility and the mental health implications of the ongoing pandemic all also have potential implications for safety training and safe operations. This required AngloGold Ashanti, as well as other businesses, to take extraordinary measures to protect the health and well-being of its employees, to maintain its operations and to contribute to global control efforts. The availability of safe and effective vaccines, albeit at varying scales in the company’s operating countries, provided an additional layer of protection, especially against severe forms of disease, hospitalisation and death. The company endeavoured to provide prompt access to approved and available vaccines for all workers, especially employees considered to be at high risk as well as employees with critical skills. Given the interdependence of employee and community health, the company’s focus remained on implementing measures supporting the health of its employees and local communities.

The emergence of COVID-19 however also assisted to better integrate broad health risk management beyond occupational health into the overall business strategy, to contribute to productivity as well as the social licence to operate and to improve various prevention and risk management protocols in place to address the potential risk of an epidemic or pandemic after its experience with Ebola in Guinea in 2014 and 2015.

This pandemic also highlighted other associated risks and emphasised the importance of optimising mental health, minimising non-communicable diseases associated with lifestyle as well as the need for systematic contribution to health system strengthening, local skill development and overall community development in the jurisdictions in which the company operates. Such risks impair the health of workers and negatively affect productivity and profitability as a result of workers’ diminished focus or skill, absenteeism, treatment costs and allocated resources. As part of AngloGold Ashanti’s continuing efforts, the company recently adopted a set of updated health standards based on identified major health hazards or risks which include gender, cultural and other applicable diversity considerations for risk management and controls.

Diversity and Inclusion (“D&I”)

With more than 30,000 employees (including contractor employees) on four continents, AngloGold Ashanti believes that having a diverse and inclusive workforce is important to continuing to attract talent in order to maintain competitiveness and the long-term



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sustainability of its business. In addition, the company strives to have a workforce that represents the societies in which AngloGold Ashanti operates in connection with maintaining its social licence to operate.

AngloGold Ashanti’s D&I approach is aligned to the United Nation Sustainable Development Goals (“UNSDGs”) (SDG 5, 8 and 10) and the United Nations Global Compact (“UNGC”). The company has developed a Diversity & Inclusion Framework, which aims to foster the empowerment of all staff, irrespective of race, gender, ethnicity, religion and sexual orientation and has established specific priorities and actions for the next two to five years to foster the inclusion of D&I objectives in its processes. Leadership teams are responsible for meeting defined diversity targets. In 2021, regional assessments were conducted to better understand the specific issues associated with increased D&I at mine sites.

Human Rights and Indigenous Peoples

In its commitment to respecting and promoting human rights, AngloGold Ashanti supports the United Nations Guiding Principles for Business and Human Rights (“UNGP”) and other international initiatives, including the UNGC and the Voluntary Principles on Security and Human Rights (“VPSHR”). The VPSHR, which seeks to balance safety and security needs against respect for human rights and fundamental freedoms, were developed through multi-stakeholder participation between governments, extractive industry members and NGOs. Community and security related matters, including with respect to illegal and artisanal and small-scale mining and related intrusions into the company’s operational areas, are addressed at board of directors-level by the SES Committee. AngloGold Ashanti’s internal Human Rights Framework includes numerous policies, management standards and guidance documents which apply to all of its employees, contractors and suppliers and require reporting of, and redress for, human rights violations and related allegations.

The company is aligned with the ICMM Position Statement on Indigenous Peoples and the International Finance Corporation’s Performance Standard 7 on Indigenous Peoples and other international standards and treaties in the area of Indigenous Peoples’ rights.







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ANGLOGOLD ASHANTI GLOBAL OPERATIONS: 2021

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Operations, projects and exploration programmes
AMERICASAFRICA REGIONAUSTRALIA
1 Argentina5 Guinea9 Australia
Cerro Vanguardia (92.5%)Siguiri (85%)Sunrise Dam
2 Brazil6 GhanaButcher Well (70%)
Serra GrandeIduapriemTropicana (70%)
AGA Mineração
Obuasi(3)
3 Colombia7 Democratic Republic of the Congo (DRC)
Gramalote (50%)(1)
Kibali (45%)(4)
La Colosa8 Tanzania
QuebradonaGeita
4USA
Silicon(2)

Percentages indicate the ownership interest of AngloGold Ashanti. All operations are 100%-owned unless otherwise indicated.
(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).




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OPERATING PERFORMANCE

Group description

AngloGold Ashanti, an independent, global gold mining company with a diverse, high-quality portfolio of operations, projects and exploration activities and is headquartered in Johannesburg, South Africa.

In 2021, our portfolio of ten operations in eight countries, includes long-life operating assets with differing ore body types located in key gold-producing regions around the world. These operating assets were supported by three greenfields projects in Colombia and a focused global exploration programme, including exploration in the United States.

Our operations and projects are grouped into the following regions: Africa, Americas and Australia.

On 12 February 2020, the Company announced that it had reached an agreement with Harmony to sell all its remaining South African producing assets and related liabilities. The sale closed on 30 September 2020. On 10 November 2020, the Company announced that it had completed the sale of its interest in the Morila mine in Mali and on 30 December 2020, the Company announced that it had completed the sale of its interest in the Sadiola Mine in Mali.

AngloGold Ashanti’s operations and joint arrangements employed, on average, 30,561 people (including contractors) in 2021 (2020: 36,952).

Performance

In 2021, AngloGold Ashanti produced attributable 2.472 million ounces (Moz) of gold (2020: 2.806Moz, excluding the 241,000oz produced by former South African operations), as well as 3.5Moz of silver and 173 tonnes of sulphuric acid as by-products.

Production of 2.472Moz of gold was achieved at a cost of sales of $2.9 billion and an all-in sustaining cost of $1,441/oz for subsidiaries and $856/oz for equity accounted joint venture operations compared to a production of 2.806Moz in 2020 at a cost of sales of $2.7 billion and all-in sustaining cost of $1,072/oz for subsidiaries and $810/oz for equity accounted joint venture operations.

Gold
The AngloGold Ashanti Mineral Reserve reduced from 29.5Moz in December 2020 to 28.1Moz in December 2021. This annual net decrease of 1.4Moz (5%) includes depletion of 2.6Moz and reductions due to other factors of 2.9Moz. The Mineral Reserve was estimated using a gold price of $1,200/oz, unless otherwise stated (2020: $1,200/oz). Table 2ato Paragraph (b) prepared in accordance with Regulation S-K 1300 (§ 229.1303 (Item 1303)). See "Item 4D Property, Plants and Equipment - Mineral Resource and Mineral Reserve Summary Disclosure".

Copper
The AngloGold Ashanti Mineral 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 or 5%) is due to methodology changes. The Mineral Reserve was estimated at a copper price of $2.90/lb (2020: $2.65/lb). Table 2b to Paragraph (b) prepared in accordance with Regulation S-K 1300 (§ 229.1303 (Item 1303)). See "Item 4D Property, Plants and Equipment - Mineral Resource and Mineral Reserve Summary Disclosure".

Capital expenditure, including equity accounted joint ventures, in 2021 amounted to $1,100 million (2020: $757 million).

Safety

There were regrettably two fatalities across the group’s operations in 2021. The all injury frequency rate was 2.13 per million hours worked compared to 1.68 in 2020 (excluding the former South African assets).




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AFRICA REGION
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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).
Attributable gold production
(000oz)		Average number of  
employees  
Subsidiary operations
Ghana
Iduapriem202 1,639 
Obuasi108 3,914 
Guinea
Attr. Siguiri 85%258 3,369 
Tanzania
Geita486 5,884 
Joint venture operations
Democratic Republic of the Congo
Attr. Kibali 45%365 2,454 



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Africa Region - Key Statistics
Unit202120202019
Subsidiary operations
Tonnes treated/milledMt21.2 20.5 19.1 
Pay limitoz/t0.035 0.034 0.039 
g/t1.193 1.160 1.330 
Recovered gradeoz/t0.045 0.052 0.060 
g/t1.54 1.77 1.77 
Gold production (a) (attributable)
000oz1,054 1,143 1,094 
Cost of sales$m1,300 1,232 1,173 
Total cash costs (1)
$/oz991 797 801 
All-in sustaining costs (1)
$/oz1,264 975 947 
Capital expenditure$m434 345 359 
Safety
Number of fatalities120
AIFRPer million hours worked0.61 0.55 0.62 
People
Average no of employees: Total14,806 14,496 12,847 
Permanent employees5,619 5,433 4,940 
Contractors9,187 9,063 7,907 

(a) Includes Obuasi gold production in 2020, capitalised as part of the project development.

Unit202120202019
Joint venture operations
Tonnes treated/milledMt3.5 3.4 7.5 
Pay limitoz/t0.048 0.048 0.037 
g/t1.652 1.640 1.255 
Recovered gradeoz/t0.095 0.096 0.060 
g/t3.25 3.29 1.85 
Gold production (attributable)000oz365 364 445 
Cost of sales$m350 340 428 
Total cash costs (1)
$/oz647 629 657 
All-in sustaining costs (1)
$/oz856 810 767 
Capital expenditure$m72 52 51 
Safety
Number of fatalities(2)
n/an/a0
AIFR (2)
Per million hours workedn/an/a0.65 
People
Average no of employees: Total2,454 2,333 2,939 
Permanent employees860 824 1,191 
Contractors1,594 1,509 1,748 

(1)Total cash costs and all-in sustaining costs are non-GAAP measures. For further information on these non-GAAP measures, see “Item 5A: Operating Results-Non-GAAP analysis”.
(2)Excludes Kibali which is managed by Barrick and not AngloGold Ashanti. For years prior to 2020, amounts are inclusive of amounts pertaining to Sadiola, which was sold in 2020.




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Performance summary

Production for the year was 1.4Moz (2020: 1.6Moz), as the region executes the reinvestment programme and various growth projects.

Higher all-in sustaining cost of was achieved 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).(1)
(1) Includes joint ventures

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.

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 Mineral 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 Mineral 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. Major infrastructure works are required to support the ramp-up to 5,000tpd. 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.



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THE AMERICAS
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The Americas hosts three of our operations – one in Argentina and two in Brazil – as well as two greenfields projects in Colombia and a significant new greenfields development in Nevada in the United States.
Attributable gold production
(000oz)		Average number of  
employees  
Operations
  1.     Argentina
Cerro Vanguardia (Attr. 92.5%)145 1,850 
  2.    Brazil
AGA Mineração331 6,142 
Serra Grande83 1,980 




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Americas - Key Statistics
Unit202120202019
Operation
Tonnes treated/milledMt7.8 7.5 7.3 
Pay limitoz/t0.10 0.07 0.11 
g/t3.49 2.46 3.79 
Recovered gradeoz/t0.066 0.081 0.089 
g/t2.27 2.77 3.04 
Gold production (Attributable)000oz559 649 710 
Silver (attributable)Moz3.2 3.3 3.4 
Cost of sales$m822 764 822 
Total cash costs (1)
$/oz921 721 736 
All-in sustaining costs (1)
$/oz1,587 1,003 1,032 
Capital expenditure (2)
$m398 217 195 
Safety
Number of fatalities100
AIFRPer million hours worked3.55 3.68 3.50 
People
Average no of employees: Total9,972 8,789 8,114 
Permanent employees6,452 6,158 5,869 
Contractors3,520 2,631 2,245 

(1)Total cash costs and all-in sustaining costs are non-GAAP measures. For further information on these non-GAAP measures, see “Item 5A: Operating Results-Non-GAAP analysis”.
(2)100 percent, (not attributable) and includes Colombia.

Performance summary

Production for the year was 559,000oz (2020: 649,000oz), achieved at a total cash cost of $921/oz (2020: $721/oz).

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 18% 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 license 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 license submission that would meet the agency’s requirements.




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A thorough review and analysis of the items and further information identified as part of ANLA’s archiving decision is being undertaken, with the aim of preparing and submitting a new environmental licence request for Quebradona in due course. This process 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 Siguiri.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.

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.








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AUSTRALIA
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Attributable gold production
(000oz)		Average number of  
employees  
Operations
Australia
1.   Sunrise Dam229 679 
2.   Tropicana 70%265 653 
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%).




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Australia - Key Statistics
Unit202120202019
Operation
Tonnes treated/milledMt10.5 10.2 10.1 
Pay limitoz/t0.06 0.06 0.06 
g/t1.89 1.95 1.95 
Recovered gradeoz/t0.047 0.054 0.060 
g/t1.47 1.68 1.87 
Gold production (attributable)000oz494 554 614 
Cost of sales$m740 705 632 
  Total cash costs (1)
$/oz1,196 968 730 
  All-in sustaining costs (1)
$/oz1,500 1,225 990 
Capital expenditure$m185 143 149 
Safety
Number of fatalities000
AIFRPer million hours worked6.59 3.74 7.33 
People
Average no of employees: Total1,332 1,230 1,140 
Permanent employees288 259 249 
Contractors 1,044 971 891 

(1)Total cash costs and all-in sustaining costs are non-GAAP measures. For further information on these non-GAAP measures, see “Item 5A: Operating Results-Non-GAAP analysis”.

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).

Capital expenditure of $185m (2020: $143m).

Safety performance regressed, from an AIFR of 3.74 per million hours worked in 2020, to 6.59. There was no change to the severity of incidents, but the number of incidents increased, attributed to a range of COVID-related factors, including high employee turnover 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.

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 is located approximately 520 kilometres north-northeastplan 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 Conakry, 25 kilometres northwestcutbacks being carried out.




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SOUTH AFRICA

au-20211231_g5.jpg

The sale of the townSouth African assets to Harmony closed on 30 September 2020. As a result, the figures in this section relate
to the nine months ended on 30 September 2020, unless the context indicates otherwise.

South Africa Key Statistics
Unit202120202019
Operation
Tonnes treated/milledMt0.4 35.1 
  Pay limit (1)
oz/t0.40 0.33 
g/t14.60 11.90 
  Recovered grade (1)
oz/t0.120 0.183 
g/t3.75 5.69 
Gold production000oz241 419 
Cost of sales$m287 479 
  Total cash costs (2)
$/oz1,149 981 
  All-in sustaining costs (2)
$/oz1,296 1,132 
Capital expenditure$m35 57 
Safety
Number of fatalities40
AIFRPer million hours worked6.12 10.00 
People
Average no of employees: Total— 8,297 7,870 
Permanent employees— 7,012 6,682 
Contractors — 1,285 1,188 
(1)Refers to underground operations only.
(2)Total cash costs and all-in sustaining costs are non-GAAP measures. For further information on these non-GAAP measures, see “Item 5A: Operating Results-Non-GAAP analysis”.



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Table of SiguiriContents
EXPLORATION REVIEW

Our exploration programmes enable us to ultimately expand our Mineral Reserve and 190 kilometres southeastare 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) - to ensure that our exploration activities are focused on maximising value for the business and established a system that goes beyond SAMREC (The South African Code for the Reporting of Exploration Results, Mineral Resources and Mineral Reserves) limitations and allows 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 the capture of geological understanding from the earliest stage of development. In addition to integrating our E4V process with our LOM planning, we have also integrated with our project process and 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 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.

Greenfields exploration

Our greenfields exploration programmes are designed to discover Mineral Resources that will ultimately lead to the development of new gold mines. In 2021, $31.2m was spent on Greenfields 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 Greenfields 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 120.44m tonnes 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 Q4 with systematic talus fines (890 samples) and ridge and spur sampling (225 samples) undertaken at the El Cori project.

Brownfields exploration

During 2021, Brownfields exploration activities were undertaken across the globe. We completed 1,059km of drilling with a total expenditure of $84.6m (capital) and $69.2m (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 $37.0m.

Mineral Resource development drilling was carried out at Star & Comet Cut 2 and Cut 3 and assay results confirmed the continuity of the Malian capital Bamako, nearmineralisation 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 Mali boarder. Conventional mininghanging 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. While the assay results from the sterilisation drilling for a proposed waste dump site returned no significant intersections. While at Xanadu, drilling is in progress and the results, so far, do not show 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.

Guinea: Capitalised and expensed drilling programmes completed a total of 34,336m during the year at a total cost of $7.2m. The 2021 drilling was impacted by contractor changes and significant delay in mobilising three of the contractor’s new rigs.




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Ghana: At Iduapriem, drilling totaled 43,293m at a cost of $5.8m.

Exploration activities are performed by contractors in multiple open pits using conventional techniques. On surface, Siguiri’s gold processing plant treats about 981,000 tonnes per month. Powerduring 2021, focused on Mineral Resource conversion drilling at Block 1 Central, Block 3, Block 5 and its Extension, Ajopa South, Ajopa Cut 3, Block 7 and 8 and Badukrom. Regional auger drilling, mapping and geochemical sampling were undertaken at Mile 8 and Ajopa Southwest, respectively. Follow-up work, inclusive of air core drilling, has been planned for 2022.

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 $5.3m.

Tete Bakangwe was delivered as an opportunity, and post Mineral Resource conversion drilling it has been added to the mine plan for next year.

First phase drilling results testing down plunge continuity of high grade at Kalimva support an underground project. While 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 $6.9m. Exploration was focused on creating new Mineral Resource which could be converted to Mineral Reserve to extend the current life of mine.

In Brazil, at Cuiabá and Lamego a total 151,042m were drilled at a cost of $13.8m.

In Colombia, at Quebradona, work was completed on drillhole 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.

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 self-generated.expected by the end of June 2022.


A comprehensive series of protocols have 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.

In Colombia, our proposed Quebradona gold and copper project may take longer to develop than previously anticipated following a decision by Colombian environment agency, ANLA, to archive our environmental licence application. There has also been a request for additional water studies. 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. We will provide an update on the timeframe when there is more clarity.

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.




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4C.    ORGANISATIONAL STRUCTURE

GROUP STRUCTURE

AngloGold Ashanti’s operations are divided into the following regions:

•Africa – operations in Ghana, Guinea and Tanzania and joint venture operations in the DRC;
•Australia – operations in Australia; and
•Americas – operations in Argentina and Brazil, and exploration projects in Colombia and the United States.

The above regions correspond to AngloGold Ashanti’s business segments. The South Africa region is recognised for financial statement purposes as discontinued operations as we sold our remaining South African producing assets and related liabilities in 2020.

Day-to-day management of the group is entrusted to AngloGold Ashanti’s executive management team, chaired by the Chief Executive Officer. See “Item 6: Directors, Senior Management and Employees”.

Support is provided to the executive management team in managing AngloGold Ashanti’s corporate activities at both the central and local levels.

SUBSIDIARIES

AngloGold Ashanti holds an 85 percent interestLimited has investments in Siguiriprincipal subsidiaries and joint venture interests, see “Item 19: Exhibits to Form 20-F—Exhibit 19.8 List of AngloGold Ashanti Limited subsidiaries” for details.



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4D.    PROPERTY, PLANTS AND EQUIPMENT

MINERAL RESOURCE AND MINERAL RESERVE SUMMARY DISCLOSURE

On 31 October 2018, the United States Securities and Exchange Commission (“SEC”) adopted Subpart 1300 (17 CFR 229.1300) of Regulation S-K (“Regulation S-K 1300”) along with the amendments to related rules and guidance in order to modernise the property disclosure requirements for mining registrants under the Securities Act and the balanceSecurities Exchange Act. Registrants engaged in mining operations must comply with the final rule amendments (Regulation S-K 1300) for the first fiscal year beginning on or after 1 January 2021. Accordingly, the Companyis providing disclosure in compliance with Regulation S-K 1300 for its fiscal year ending 31 December 2021, and will continue to do so going forward. As part of 15its rulemaking to modernise its disclosure requirements, the SEC rescinded Industry Guide 7, which accordingly is not applicable to the Company’s current and future disclosures.

Mineral Resource and Mineral Reserve are estimates that contain inherent risk and depend upon geologic interpretation and statistical inferences drawn from drilling and sampling analysis, which may prove to be unreliable. For additional information on the risks and uncertainties associated with AngloGold Ashanti’s mining properties, see “Item 3D: Risk Factors"

Locations of properties
au-20211231_g6.jpg




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The locations of AngloGold Ashanti’s operations and advanced projects are shown above. Locality maps showing the location of properties as well as infrastructure and licences are also shown per operation or project in the Individual Property Disclosure section in Item 4D. Percentages indicate the ownership interest held by AngloGold Ashanti. All operations are 100 percent owned unless otherwise indicated.

Overview of Mining properties and operations

Refer to “Item 4B: Business Overview—Operating Performance” for the aggregate annual production for the properties during each of the three most recently completed fiscal years preceding the filing.

The following information is helddetailed for each material property in the Individual Property Disclosure section in Item 4D of this report:
•The location of the properties;
•The type and amount of ownership interests;
•The identity of the operator or operators;
•Titles, mineral rights, leases or options and acreage involved;
•The stages of the properties (exploration, development or production);
•Key permit conditions;
•Mine types and mineralisation styles; and
•Processing plants and other available facilities.

Price assumptions

The Mineral Resource and Mineral Reserve are based on reasonable economic assumptions which provide a reasonable basis for establishing the reasonable prospects of economic extraction for Mineral Resource, and for establishing the expected price for the Mineral Reserve. These economic assumptions include long-range commodity price and exchange rate forecasts and management estimates. These economic assumptions are reviewed annually and are prepared in-house using a range of techniques including historic price averages. AngloGold Ashanti selects a conservative Mineral 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.

In the case of Sunrise Dam, the 2021 Mineral 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 Mineral Reserve growth the initial step in a move towards realising the full asset potential. The Mineral 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 Mineral Reserve life. This has meant that significant marginal material was included in the plan in order to keep the plant operating at full capacity.

The Mineral 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 Mineral Reserve.

Gold price

The following local prices of gold were used as a basis for estimation in the December 2021 declaration, unless otherwise stated:
Local prices of gold(4)
Gold priceAustraliaBrazilArgentinaColombia
$/ozAUD/ozBRL/ozARS/ozCOP/oz
2021 Mineral Reserve(3)
1,2001,6336,182134,4523,849,000
2020 Mineral Reserve(2)
1,2001,6045,510119,6314,096,877
2021 Mineral Resource(1)
1,5002,0727,940173,0655,336,250

(1) Reported for the first time under Regulation S-K 1300.
(2) Reported under Industry Guide 7.
(3) Reported under Regulation S-K 1300.
(4) Considered over the period 2011 to 2021.




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Copper price

The following copper price was used as a basis for estimation in the December 2021 declaration:
Copper price(5)
$/lbCOP/lb
2021 Mineral Reserve(4)
2.909,302
2020 Mineral Reserve(3)
2.659,047
2021 Mineral Resource(1)
3.5012,451

The Mineral Resource, as reported, is exclusive(2) of the Mineral Reserve component. Mineral Resource and Mineral Reserve estimates are reported as at 31 December 2021 and are net of 2021 production depletion.

MINERAL RESOURCE

This is the first time that AngloGold Ashanti has reported Mineral Resource in the Form-20F and as such it cannot be compared to a previous reporting period.

Gold

The AngloGold Ashanti gold Mineral Resource(1) (exclusive of Mineral Reserve(2)), as at 31 December 2021, includes 51.72Moz Measured and Indicated Mineral Resource and 42.34Moz Inferred Mineral Resource. The Mineral Resource was estimated using a gold price of $1,500/oz, unless otherwise stated. Refer to Table 1a to Paragraph (b) prepared in accordance with Regulation S-K 1300 (§ 229.1303 (Item 1303)).

Copper

The AngloGold Ashanti copper Mineral Resource(1) (exclusive of Mineral Reserve(2)), as at 31 December 2021, includes 1.32Mt (2,902Mlb) Measured and Indicated Mineral Resource and 1.47Mt (3,231Mlb) Inferred Mineral Resource. The Mineral Resource was estimated at a copper price of $3.50/lb. Refer to Table 1b to Paragraph (b) prepared in accordance with Regulation S-K 1300 (§ 229.1303 (Item 1303)).

MINERAL RESERVE

Gold

The AngloGold Ashanti Mineral Reserve reduced from 29.5Moz in December 2020(3) to 28.1Moz in December 2021(4). This annual net decrease of 1.4Moz (5%) includes depletion of 2.6Moz and reductions due to other factors of 2.9Moz. This includes the exclusion of the Gramalote Mineral Reserve of 1.7Moz as AngloGold Ashanti are currently incorporating additional drilling into a revised model and have not reached agreement with the joint operation partner and thus no Mineral Reserve will be published). This decrease was partially offset by additions due to exploration and modelling changes of 4.1Moz. The Mineral Reserve was estimated using a gold price of $1,200/oz, unless otherwise stated (2020: $1,200/oz). Table 2ato Paragraph (b) prepared in accordance with Regulation S-K 1300 (§ 229.1303 (Item 1303)).

Copper

The AngloGold Ashanti Mineral Reserve increased from 1.41Mt (3,105Mlb) in December 2020(3) to 1.47Mt (3,250Mlb) in December 2021(4). This gross annual increase of 0.07Mt (145Mlb or 5%) is due to methodology changes. The Mineral Reserve was estimated at a copper price of $2.90/lb (2020: $2.65/lb). Table 2bto Paragraph (b) prepared in accordance with Regulation S-K 1300 (§ 229.1303 (Item 1303)).



(1)     Reported for the first time under Regulation S-K 1300 and thus no net difference can be reported.
(2)     The Mineral Resource exclusive of Mineral Reserve (“Exclusive Mineral Resource”) is defined as the Inclusive Mineral Resource less the Mineral Reserve before dilution and other factors are applied.
(3)     Reported under Industry Guide 7.
(4)     Reported under Regulation S-K 1300.
(5) Considered over the period 2011 to 2021.



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Table 1a to Paragraph (b) prepared in accordance with Regulation S-K 1300 (§ 229.1303 (Item 1303)) - Summary Mineral Resource(1) (exclusive of Mineral Reserve) for gold at the end of the Fiscal Year ended 31 December 2021 based on $1,500/oz, unless otherwise stated.

Mineral Resource (1)
MeasuredIndicatedMeasured and Indicated TotalInferred
Gold
Tonnes (3)
GradeContained Gold
Tonnes (3)
GradeContained Gold
Tonnes (3)
GradeContained Gold
Tonnes (3)
GradeContained Gold
as at 31 December 2021Milliong/tTonnesMozMilliong/tTonnesMozMilliong/tTonnesMozMilliong/tTonnesMoz
Continental Africa Region13.16 3.98 52.32 1.68 179.46 2.36 422.86 13.60 192.61 2.47 475.18 15.28 179.17 3.43 613.98 19.74 
Democratic Republic of Congo7.62 3.19 24.29 0.78 19.82 2.76 54.63 1.76 27.45 2.88 78.92 2.54 10.29 2.70 27.74 0.89 
Kibali (45 percent)(2)(7)(8)(13)
7.62 3.19 24.29 0.78 19.82 2.76 54.63 1.76 27.45 2.88 78.92 2.54 10.29 2.70 27.74 0.89 
Ghana4.09 5.27 21.55 0.69 67.20 3.55 238.27 7.66 71.28 3.64 259.82 8.35 77.50 5.35 414.90 13.34 
Iduapriem(13)
1.52 0.72 1.10 0.04 41.39 1.37 56.69 1.82 42.91 1.35 57.80 1.86 27.34 1.47 40.24 1.29 
Obuasi(12)
2.57 7.97 20.45 0.66 25.81 7.04 181.57 5.84 28.37 7.12 202.02 6.50 50.15 7.47 374.66 12.05 
Guinea— — — — 64.26 1.12 71.81 2.31 64.26 1.12 71.81 2.31 60.91 1.15 70.06 2.25 
Siguiri (85 percent)(2)(13)
— — — — 64.26 1.12 71.81 2.31 64.26 1.12 71.81 2.31 60.91 1.15 70.06 2.25 
Tanzania1.44 4.49 6.47 0.21 28.18 2.06 58.15 1.87 29.62 2.18 64.63 2.08 30.48 3.32 101.29 3.26 
Geita(13)
1.44 4.49 6.47 0.21 28.18 2.06 58.15 1.87 29.62 2.18 64.63 2.08 30.48 3.32 101.29 3.26 
Americas Region64.29 1.50 96.24 3.09 1,106.42 0.86 952.57 30.63 1,170.71 0.90 1,048.82 33.72 767.37 0.75 576.25 18.53 
Argentina4.33 2.66 11.53 0.37 19.73 2.15 42.41 1.36 24.07 2.24 53.93 1.73 4.96 2.35 11.65 0.37 
Cerro Vanguardia (92.5 percent)(2)(4)(13)
4.33 2.66 11.53 0.37 19.73 2.15 42.41 1.36 24.07 2.24 53.93 1.73 4.96 2.35 11.65 0.37 
Brazil14.81 4.58 67.78 2.18 22.99 3.17 72.82 2.34 37.80 3.72 140.61 4.52 55.54 3.63 201.60 6.48 
AGA Mineração - Corrego do Sitio(13)
2.24 3.07 6.88 0.22 6.02 3.09 18.62 0.60 8.26 3.09 25.49 0.82 16.54 3.99 65.95 2.12 
AGA Mineração - Cuiabá(5)(13)
4.70 7.74 36.40 1.17 3.47 5.43 18.83 0.61 8.17 6.76 55.23 1.78 12.87 4.94 63.63 2.05 
AGA Mineração - Lamego(5)(13)
2.12 3.23 6.86 0.22 2.59 2.41 6.24 0.20 4.71 2.78 13.10 0.42 4.92 3.01 14.80 0.48 
Serra Grande(13)
5.74 3.08 17.65 0.57 10.92 2.67 29.14 0.94 16.66 2.81 46.79 1.50 21.22 2.70 57.22 1.84 
Colombia45.15 0.37 16.93 0.54 1,063.69 0.79 837.35 26.92 1,108.84 0.77 854.27 27.47 586.42 0.44 258.05 8.30 
Gramalote (50 percent)(2)(9)(10)(11)
— — — — 81.29 0.75 61.14 1.97 81.29 0.75 61.14 1.97 62.59 0.52 32.55 1.05 
La Colosa(9)(11)
— — — — 833.49 0.87 726.31 23.35 833.49 0.87 726.31 23.35 217.89 0.71 154.86 4.98 
Quebradona(4)(6)(12)
45.15 0.37 16.93 0.54 148.91 0.34 49.89 1.60 194.06 0.34 66.82 2.15 305.94 0.23 70.64 2.27 
United States of America— — — — — — — — — — — — 120.44 0.87 104.96 3.37 
Silicon(4)(11)
— — — — — — — — — — — — 120.44 0.87 104.96 3.37 
Australasia Region29.92 1.25 37.49 1.21 33.13 1.42 47.21 1.52 63.05 1.34 84.69 2.72 50.07 2.53 126.83 4.08 
Sunrise Dam(13)
12.16 1.63 19.82 0.64 16.50 1.60 26.48 0.85 28.66 1.62 46.29 1.49 23.60 2.36 55.67 1.79 
Butcher Well (70 percent)(2)(11)
— — — — — — — — — — — — 2.69 3.77 10.14 0.33 
Tropicana (70 percent)(2)(13)
17.76 0.99 17.67 0.57 16.63 1.25 20.73 0.67 34.39 1.12 38.40 1.23 23.78 2.57 61.02 1.96 
AngloGold Ashanti Total107.37 1.73 186.05 5.98 1,319.01 1.08 1,422.64 45.74 1,426.38 1.13 1,608.69 51.72 996.61 1.32 1,317.06 42.34 




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Rounding off numbers may result in computational discrepancies in the Mineral Resource tabulations. The Mineral Resource estimates with respect to our properties have been prepared by the Qualified Persons (employed by AngloGold Ashanti unless stated otherwise) referred to in the Technical Report Summaries filed as Exhibits to the Form 20-F. The Mineral Resource is reported for the first time under Regulation S-K 1300 and thus no net difference can be reported. (1) All disclosure of Mineral Resource is exclusive of Mineral Reserve. The Mineral Resource exclusive of Mineral Reserve (“Exclusive Mineral Resource”) is defined as the inclusive Mineral Resource less the Mineral Reserve before dilution and other factors are applied. (2) Mineral Resource attributable to AngloGold Ashanti’s percentage interest shown.
(3) Tonnes refers to a metric tonne which is equivalent to 1000 kilograms.
(4) The inclusive Mineral Resource contains 78.5Moz of silver for Cerro Vanguardia; 92.9Moz of silver for Quebradona and 14.2Moz of silver for Silicon as a by-product.
(5) The inclusive Mineral Resource contains 1.71 million tonnes of sulphur as a by-product for AGA Mineração - Cuiabá and Lamego.
(6) The inclusive Mineral Resource contains 89.3 kilotonnes of molybdenum as a potential by-product. (7) AngloGold Ashanti has recognised that in preparing this report, the Qualified Persons have, relied on information provided by Barrick. (8) Operated by Barrick. (9) Based on $1,400/oz. (10) Managed by B2Gold Corp. The Mineral Resource is estimated by AngloGold Ashanti. (11) Property currently in an exploration stage. (12) Property currently in a development stage. (13) Property currently in a production stage.

Table 1b to Paragraph (b) prepared in accordance with Regulation S-K 1300 (§ 229.1303 (Item 1303)) - Summary Mineral Resource(1) (exclusive of Mineral Reserve) for copper at the end of the Fiscal Year ended 31 December 2021 based on $3.50/lb, unless otherwise stated.

Mineral Resource (1)
MeasuredIndicatedMeasured and Indicated TotalInferred
Copper
Tonnes (2)
GradeContained Copper
Tonnes (2)
GradeContained Copper
Tonnes (2)
GradeContained Copper
Tonnes (2)
GradeContained Copper
as at 31 December 2021Million%CuTonnes MillionPounds MillionMillion%CuTonnes MillionPounds MillionMillion%CuTonnes MillionPounds MillionMillion%CuTonnes MillionPounds Million
Americas Region45.15 0.69 0.31 684 148.91 0.68 1.01 2,218 194.06 0.68 1.32 2,902 305.94 0.48 1.47 3,231 
Colombia45.15 0.69 0.31 684 148.91 0.68 1.01 2,218 194.06 0.68 1.32 2,902 305.94 0.48 1.47 3,231 
Quebradona(3)(4)(5)
45.15 0.69 0.31 684 148.91 0.68 1.01 2,218 194.06 0.68 1.32 2,902 305.94 0.48 1.47 3,231 
AngloGold Ashanti Total45.15 0.69 0.31 684 148.91 0.68 1.01 2,218 194.06 0.68 1.32 2,902 305.94 0.48 1.47 3,231 

Rounding off numbers may result in computational discrepancies in the Mineral Resource tabulations. The Mineral Resource estimates with respect to our properties have been prepared by the Qualified Persons (employed by AngloGold Ashanti unless stated otherwise) referred to in the Technical Report Summaries filed as Exhibits to the Form 20-F. The Mineral Resource is reported for the first time under Regulation S-K 1300 and thus no net difference can be reported. (1) All disclosure of Mineral Resource is exclusive of Mineral Reserve. The Mineral Resource exclusive of Mineral Reserve (“Exclusive Mineral Resource”) is defined as the Inclusive Mineral Resource less the Mineral Reserve before dilution and other factors are applied.
(2) Tonnes refers to a metric tonne which is equivalent to 1000 kilograms. (3) The inclusive Mineral Resource contains 92.9Moz of silver as a by-product.
(4) The inclusive Mineral Resource contains 89.3 kilotonnes of molybdenum as a potential by-product. (5) Property currently in a development stage.







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Table 2a to Paragraph (b) prepared in accordance with Regulation S-K 1300 (§ 229.1303 (Item 1303)) - Summary Mineral Reserve for gold at the end of the Fiscal Year ended 31 December 2021 based on $1,200/oz, unless otherwise stated.
Mineral ReserveProvenProbableTotal Mineral Reserve
Gold
Tonnes (2)
GradeContained Gold
Tonnes (2)
GradeContained Gold
Tonnes (2)
GradeContained Gold
as at 31 December 2021Milliong/tTonnesMozMilliong/tTonnesMozMilliong/tTonnesMoz
Continental Africa Region41.33 2.58 106.54 3.43 183.69 2.72 499.29 16.05 225.02 2.69 605.84 19.48 
Democratic Republic of Congo14.35 3.76 54.01 1.74 23.04 3.50 80.71 2.59 37.40 3.60 134.72 4.33 
Kibali (45 percent)(1)(5)(6)(10)
14.35 3.76 54.01 1.74 23.04 3.50 80.71 2.59 37.40 3.60 134.72 4.33 
Ghana6.88 5.57 38.34 1.23 83.32 3.59 299.46 9.63 90.20 3.75 337.80 10.86 
Iduapriem(10)
2.15 0.68 1.46 0.05 57.25 1.39 79.32 2.55 59.40 1.36 80.78 2.60 
Obuasi(9)
4.73 7.79 36.88 1.19 26.07 8.45 220.14 7.08 30.80 8.34 257.02 8.26 
Guinea17.91 0.63 11.36 0.37 49.80 0.80 39.67 1.28 67.72 0.75 51.03 1.64 
Siguiri (85 percent)(1)(10)
17.91 0.63 11.36 0.37 49.80 0.80 39.67 1.28 67.72 0.75 51.03 1.64 
Tanzania2.19 1.30 2.84 0.09 27.52 2.89 79.45 2.55 29.71 2.77 82.29 2.65 
Geita(10)
2.19 1.30 2.84 0.09 27.52 2.89 79.45 2.55 29.71 2.77 82.29 2.65 
Americas Region11.11 2.70 29.99 0.96 141.28 1.03 146.01 4.69 152.40 1.15 176.00 5.66 
Argentina4.19 2.04 8.54 0.27 8.12 2.08 16.88 0.54 12.31 2.07 25.42 0.82 
Cerro Vanguardia (92.5 percent)(1)(3)(10)
4.19 2.04 8.54 0.27 8.12 2.08 16.88 0.54 12.31 2.07 25.42 0.82 
Brazil6.93 3.10 21.45 0.69 13.15 3.67 48.29 1.55 20.07 3.47 69.74 2.24 
AGA Mineração - Corrego do Sitio(10)
1.10 1.99 2.18 0.07 3.36 2.85 9.57 0.31 4.46 2.63 11.75 0.38 
AGA Mineração - Cuiabá(4)(10)
2.08 4.65 9.67 0.31 5.80 4.70 27.29 0.88 7.89 4.69 36.97 1.19 
AGA Mineração - Lamego(4)(10)
0.46 2.55 1.17 0.04 0.90 2.92 2.63 0.08 1.36 2.80 3.79 0.12 
Serra Grande(10)
3.29 2.56 8.44 0.27 3.08 2.85 8.79 0.28 6.37 2.70 17.23 0.55 
Colombia— — — — 120.01 0.67 80.83 2.60 120.01 0.67 80.83 2.60 
Gramalote (50 percent)(1)(7)(8)
— — — — — — — — — — — — 
Quebradona(3)(9)
— — — — 120.01 0.67 80.83 2.60 120.01 0.67 80.83 2.60 
Australasia Region26.41 1.46 38.43 1.24 25.31 2.13 54.04 1.74 51.73 1.79 92.47 2.97 
Sunrise Dam(10)
12.18 1.50 18.30 0.59 9.40 2.38 22.34 0.72 21.58 1.88 40.64 1.31 
Tropicana (70 percent)(1)(10)
14.24 1.41 20.14 0.65 15.91 1.99 31.70 1.02 30.15 1.72 51.84 1.67 
AngloGold Ashanti Total78.86 2.22 174.97 5.63 350.28 2.00 699.34 22.48 429.14 2.04 874.31 28.11 

Rounding off numbers may result in computational discrepancies in the Mineral Reserve tabulations. The Mineral Reserve estimates with respect to our properties have been prepared by the Qualified Persons (employed by AngloGold Ashanti unless stated otherwise) referred to in the Technical Report Summaries filed as Exhibits to the Form 20-F. The net difference between the Mineral Reserves at the end of the last completed fiscal year and the preceding fiscal year will be detailed in the Individual Property Disclosure Section. (1) Mineral Reserve attributable to AngloGold Ashanti’s percentage interest shown.
(2) Tonnes refers to a metric tonne which is equivalent to 1000 kilograms.
(3) The Mineral Reserve contains 20.5Moz of silver for Cerro Vanguardia and 28.1Moz of silver for Quebradona to be recovered as a by-product.
(4) The Mineral Reserve contains 0.43 million tonnes of sulphur to be recovered as a by-product for AGA Mineração - Cuiabá and Lamego.



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(5) AngloGold Ashanti has recognised that in preparing this report, the Qualified Persons have, relied on information provided by Barrick. (6) Operated by Barrick. (7) Managed by B2Gold Corp. (8) At Gramalote, AngloGold Ashanti is currently incorporating additional drilling into a revised model and have not reached agreement with the joint operation partner and thus no Mineral Reserve will be published. Current stage of the property is at exploration stage.(9) Property currently in a development stage. (10) Property currently in a production stage.

Table 2b to Paragraph (b) prepared in accordance with Regulation S-K 1300 (§ 229.1303 (Item 1303)) - Summary Mineral Reserve for copper at the end of the Fiscal Year ended 31 December 2021 based on $2.90/lb, unless otherwise stated.

Mineral ReserveProvenProbableTotal Mineral Reserve
Copper
Tonnes (1)
GradeContained Copper
Tonnes (1)
GradeContained Copper
Tonnes (1)
GradeContained Copper
as at 31 December 2021Million%CuTonnes MillionPounds MillionMillion%CuTonnes MillionPounds MillionMillion%CuTonnes MillionPounds Million
Americas Region— — — — 120.01 1.23 1.47 3,250 120.01 1.23 1.47 3,250 
Colombia— — — — 120.01 1.23 1.47 3,250 120.01 1.23 1.47 3,250 
Quebradona(2)(3)
— — — — 120.01 1.23 1.47 3,250 120.01 1.23 1.47 3,250 
AngloGold Ashanti Total— — — — 120.01 1.23 1.47 3,250 120.01 1.23 1.47 3,250 

Rounding off numbers may result in computational discrepancies in the Mineral Reserve tabulations. The Mineral Reserve estimates with respect to our properties have been prepared by the Qualified Persons (employed by AngloGold Ashanti unless stated otherwise) referred to in the Technical Report Summaries filed as Exhibits to the Form 20-F. The net difference between the Mineral Reserves at the end of the last completed fiscal year and the preceding fiscal year will be detailed in the Individual Property Disclosure Section. (1) Tonnes refers to a metric tonne which is equivalent to 1000 kilograms.
(2) The Mineral Reserve contains 28.1Moz of silver to be recovered as a by-product. (3)Property currently in a development stage.







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BY-PRODUCTS
Several by-products will be recovered as a result of processing of the gold Mineral Reserve and copper Mineral 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.

CORPORATE GOVERNANCE
AngloGold Ashanti has an established Mineral Resource and Mineral Reserve Steering Committee (“RRSC”), which is responsible for setting and overseeing the Company’s Mineral Resource and Mineral 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 as well as the Investment Committee of the Company’s Board of Directors (“Board”), review the Mineral Resource and Mineral Reserve and make a recommendation to the Board, which provides the final approval for the publication of the Mineral Resource and Mineral Reserve estimates.

The Company has developed and implemented a rigorous system of internal and external reviews aimed at providing assurance in respect of Mineral Reserve and Mineral Resource estimates. In 2021, the following operations were subject to an external review in line with the policy that each operation/project will be reviewed by an independent third party on average once every three years:

•    Mineral Resource and Mineral Reserve at Iduapriem
•    Mineral Resource and Mineral Reserve at Obuasi
•    Mineral Resource and Mineral Reserve at Kibali
•    Mineral Resource and Mineral Reserve at Serra Grande
•    Mineral Resource and Mineral Reserve at Sunrise Dam
•    Mineral Resource and Mineral Reserve at Tropicana

The external reviews of the Mineral Resource and Mineral Reserve were conducted by SRK Consulting for the properties operated by AngloGold Ashanti and no material risks were identified in any of the audit reports. In the case of Kibali an independent technical review of the annual Mineral Resource and Mineral Reserve estimates was undertaken by RSC Mining and Mineral Exploration on behalf of the managing partner Barrick Gold Corporation (“Barrick”) and identified no significant flaws.

In addition, numerous internal Mineral Resource and Mineral Reserve process reviews were completed by suitably Qualified Persons from within AngloGold Ashanti and no significant deficiencies were identified. The Mineral Resource and Mineral Reserve governance framework is underpinned by appropriate Mineral Resource Management processes and protocols that ensure adequate corporate governance. These procedures have been developed to be compliant with the guiding principles of the U.S. Sarbanes-Oxley Act of 2002 (“SOX”).

AngloGold Ashanti makes use of a web-based group reporting database called the Resource and Reserve Reporting System (“RCubed”) for the compilation and authorisation of Mineral Resource and Mineral Reserve reporting. It is a fully integrated system for the reporting and reconciliation of Mineral Resource and Mineral Reserve that supports various regulatory reporting requirements, including the SEC under 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 Qualified Persons at the operations to the Company’s RRSC.

AngloGold Ashanti has also developed an enterprise-wide risk management tool that provides consistent and reliable data that allows for visibility of risks and actions across the group. This tool is used to facilitate, control and monitor material risks to the Mineral Resource and Mineral Reserve, so that the Company can determine whether the appropriate risk management and mitigation plans are in place.

Where technical experts involved in the estimation of Mineral Resource or Mineral Reserve feel that their technical advice has been ignored and may represent a risk to the Mineral Resource or Mineral Reserve to be published, they are obliged to inform the Mineral Resource and Mineral 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.




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QUALIFIED PERSONS
The information in this report relating to Exploration Results, Mineral Resource and Mineral Reserve is based on information compiled by or under the supervision of the Qualified Persons as defined in the Regulation S-K 1300. All Qualified Persons are employed by AngloGold Ashanti 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. AngloGold Ashanti has recognised that in preparing this report with respect to Kibali, the Qualified Persons have relied on information provided by Barrick. The legal tenure of each operation and project has been verified to the satisfaction of the accountable Qualified Person and all the Mineral Reserve has been confirmed to be covered by the required mining permits or there exists a realistic expectation that these permits will be issued. The Qualified Persons have provided consent to the inclusion of Exploration Results, Mineral Resource and Mineral Reserve information in this report, in the form and context in which it appears as well as the public filing and use of the Technical Report Summary for each respective mining property filed as exhibits to the Form 20-F.

Accordingly, the Chairman of the Mineral Resource and Mineral Reserve Steering Committee, Mr. VA Chamberlain, MSc (Mining Engineering), BSc (Hons) (Geology), MGSSA, FAusIMM, assumes responsibility for the Mineral Resource and Mineral Reserve processes for AngloGold Ashanti and is satisfied that the Qualified 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. Mr. VA Chamberlain consents to the inclusion of Exploration Results, Mineral Resource and Mineral Reserve information in this report, in the form and context in which it appears filed as an Exhibit to the Form 20-F.

For additional information, see the Technical Report Summary on each individual property, filed as an Exhibit to this annual report on Form 20-F.

THE FOLLOWING SHOULD BE NOTED IN RESPECT OF THE ANNUAL REPORT ON FORM 20F:
•All figures are expressed on an attributable basis unless otherwise indicated
•All disclosure of Mineral Resource is exclusive of Mineral Reserve
•Unless otherwise stated, $ or dollar refers to United States dollars
•Group and Company are used interchangeably
•Mine, operation, business unit and property are used interchangeably
•Rounding off numbers may result in computational discrepancies
•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 copper content with no decimals
•Metric tonnes (t) are used throughout this report and all ounces are Troy ounces
•Abbreviations used in this report: gold– Au, copper – Cu, silver – Ag, Sulphur – S, molybdenum – Mo
•Internal controls are discussed in the Mineral Resource and Mineral Reserve Summary Disclosure section under Corporate Governance as well as the Mineral Resource and Mineral Reserve Internal Controls Disclosure section below
•Maps presented in the Individual Property Disclosure section in Item 4D show infrastructure, licences and coordinates of the mine, as represented by the plant (or stated otherwise), depicted on the map. The reference co-ordinate system used for the location of properties as well as infrastructure and licences maps / plans is latitude longitude geographic co-ordinates in various formats, or relevant Universal Transverse Mercator (“UTM”) projection.

Refer to the Mining Terms for terminology and definitions used in Mineral Resource and Mineral Reserve reporting under Regulation S-K 1300. In addition note the following:

Although the term Mineral Reserve is used throughout Regulation S-K 1300 and this document. AngloGold Ashanti uses Ore Reserve in its internal reporting.

The Mineral Resource exclusive of Mineral Reserve (“Exclusive Mineral Resource”) is defined as the Inclusive Mineral Resource less the Mineral Reserve before dilution and other factors are applied. The Exclusive Mineral Resource consists of the following components:
•Inferred Mineral Resource, including that within the Mineral Reserve design or stope shape;
•Mineral Resource that sits above the Mineral Resource cut-off grade but below the Mineral Reserve cut-off grade that resides within the defined Mineral Reserve volume;
•Mineral Resource that lies between the life of mine (“LOM”) pit shell or mine design and the Mineral Resource pit shell/mine design (this material will become economic if the gold price increases);



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•Mineral Resource where the technical studies to engineer a Mineral Reserve have not yet been completed.

All reports of Mineral Resource must satisfy the requirement that there are reasonable prospects for economic extraction, regardless of the classification of the Mineral Resource. Portions of a deposit that do not have reasonable prospects for eventual economic extraction are not included in a Mineral Resource. The Mineral Resource is estimated using all relevant drilling and sampling information along with a detailed geological model.

The geological models are based on combinations of core and/or chip logging, mapping, geophysics, geochemistry and geological understanding and have been developed for each deposit. Most of our deposits have been the subject of research by third party specialists in the relevant class of gold deposit.

The grade estimation for each deposit has been developed over the life of the mine, and is constantly reviewed in terms of grade control information and reconciliation with the metallurgical plant. In general, the open pits and shallow underground mines use kriging with post processing by Uniform Conditioning (“UC”) or Localised Uniform Conditioning (“LUC”) to generate a recoverable Mineral Resource model where appropriate.

In order to comply with the economic requirement of the definition of Mineral Resource, all our Mineral Resource is constrained at an upside gold price, with all other parameters being kept the same as used for estimation of the Mineral Reserve. In the underground gold mines, scoping studies are conducted on all coherent blocks of ground that lie above the calculated Mineral Resource cut-off grade. These studies include all cost and capital requirements to access the block. In the case of open pit operations, pit optimisations are conducted at the Mineral Resource gold price and all material outside these shells is excluded from the Mineral Resource unless it is potentially mineable from underground.

It is the opinion of AngloGold Ashanti that the Mineral Resource represents a realistic view of an upside potential to the Mineral Reserve. In interpreting the Mineral Resource it is critical to factor in the following:
•That there is a reasonable expectation of economic extraction
•The Mineral Resource is quoted in situ and has not been corrected for dilution, mining losses or recovery
•Many of the areas lying in the Exclusive Mineral Resource are currently being actively drilled and are the subject of economic and technical studies. It can, however, not be assumed at this stage that the company has intent to mine these areas

The Inferred Mineral Resource category is intended to cover situations in which a mineral concentration or occurrence has been identified and limited measurements and sampling have been completed but in which the data are insufficient to allow the geological or grade continuity to be interpreted with confidence. While it would be reasonable to expect that the majority of Inferred Mineral Resource would upgrade to Indicated Mineral Resource with continued exploration, due to the uncertainty of Inferred Mineral Resource, it should not be assumed that such upgrading will always occur.

In order to reduce the risk AngloGold Ashanti limits the use of Inferred Mineral Resource in its Mineral Reserve estimation process but the Inferred Mineral Resource is included in the pit shell or underground extraction shape determination. As such the Inferred Mineral Resource may influence the extraction shape. The quoted Mineral Reserve from these volumes includes only the converted Measured and Indicated Mineral Resource and no Inferred Mineral Resource is converted to Mineral Reserve. The cash flow analysis does not include the Inferred Mineral Resource in demonstrating the economic viability of the Mineral Reserve. For more information, see the Technical Report Summary for each Property filed as an Exhibit of this annual report on Form 20-F.

AngloGold Ashanti requires that the Mineral Reserve that is an outcome of this process is generated at a minimum of a Prefeasibility Study (“PFS”) level.

MINERAL RESOURCE AND MINERAL RESERVE INTERNAL CONTROLS DISCLOSURE

AngloGold Ashanti has a tiered internal review process whereby newly issued Mineral Resource and Mineral Reserve are reviewed at a regional level prior to publication. Selected Corporate reviews happen post that process. Each mine has an external Mineral Resource and Mineral Reserve audit on a three-year rolling basis, and issues raised in these audits are addressed by a formal audit reply from each mine on which the progress is tracked.

AngloGold Ashanti’s Mineral Reserve is an outcome of the Company’s Business Planning process which runs annually. This process operates within a comprehensive framework where all inputs, including costs and capital



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requirements, are generated by the operation, and reviewed at a regional and corporate level within the Company, thereby providing confidence in the estimates.

A group wide Mineral Resource to production reconciliation system is also in place whereby the Mineral Resource mined each month is reconciled all the way to the produced gold doré. Oversight for this is handled at the group level. A comprehensive sample and assay QAQC process is in place and our laboratories are inspected frequently by onsite teams and on an on-needs basis by the Group sampling specialist.


MINERAL RESOURCE AND MINERAL RESERVE INDIVIDUAL PROPERTY DISCLOSURE
For more information about AngloGold Ashanti’s mines, including a summary of the company’s mining rights and licences refer to “Item 4B: Business Overview—The Regulatory Environment Enabling AngloGold Ashanti to Mine”. For detailed information about AngloGold Ashanti’s mines, including the mining rights and licences refer to the Technical Report Summary on each individual property, filed as an Exhibit of this annual report on Form 20-F.

AngloGold Ashanti have examined material properties with the following key considerations and have decided to report all of its operations in the Individual Property Disclosure for 2021 based on the following:
•First time reporting;
•The consideration of both quantitative and qualitative factors, assessed in the context of the registrant’s overall business and financial condition; 
•Aggregate mining operations on all of its mining properties (regardless of the stage of the mining property, and size or type of commodity produced); and 
•Include, for each property (as applicable), all related activities from exploration through extraction. 

AngloGold Ashanti’s operating mines are all accessible by road, although for some, personnel access is better achieved by air.

Our exploration programmes are based on consistent standards and processes across the AngloGold Ashanti portfolio and are guided by peer review. Part of AngloGold Ashanti investment strategy is focused on exploration drilling and Mineral Reserve development to grow the Mineral Resource and by converting these, we allow for expansion of the Mineral Reserve. The process involves identifying the best group of drill targets and prioritising those that have the highest potential for success to be advanced first. Greenfields exploration aims to discover large, high-value Mineral Resource, which will eventually lead to the development of new gold mines. Brownfields exploration focuses on delivering value through accretive additions to the Mineral at existing mines as well as new discoveries in defined areas around operations.

This report is not being submitted in support of the disclosure of exploration results and therefore no disclosure of drilling or sample results is provided. AngloGold Ashanti has elected not to provide drilling results for its operating mines as drilling at our Brownfields operations is generally to provide incremental additions, or conversions to already reported Mineral Resource and therefore they are not seen as material. While drilling at our Brownfields operations increases confidence in our Mineral Resource as well as adds LOM extensions, the incremental additions that occur on a yearly basis are not material to that operation or the company as a whole. In cases where the drilling projects are supporting a non-sustaining addition, these projects are commented on. In our major greenfields projects if any single drill result is considered material and may change the reported Mineral Resource significantly then it is reported.


AFRICA
AngloGold Ashanti has five mining operations within the Africa region:
•Kibali in the DRC, a joint venture (“JV”) with Barrick and Société Minère de Kilo-Moto (“SOKIMO”), the state-owned gold mining company
•Iduapriem in Ghana
•Obuasi in Ghana, currently in a redevelopment phase
•Siguiri in Guinea, with AngloGold Ashanti holding 85% ownership, and the remaining 15% owned by the government of Guinea.Guinea

•Geita in Tanzania
Geology
This concessionMining is dominated by Proterozoic Birimian rocks which consistfrom both open pit and underground, with Obuasi being an underground mine, Iduapriem and Siguiri being open pit mines, and Kibali and Geita being a combination of turbidite facies sedimentary sequences. The two main typesopen pit and underground mines.



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DRC
Kibali, one of the largest gold deposits which occurmines in Africa, is situated in the Siguiri basin and are mined are:
laterite mineralisation (CAP) which occurs as surficial aprons of colluvium or as palaeo‑channels of alluvial lateritic gravelDRC, adjacent to the town of Doko and immediately above in-situ deposits; and
in-situ quartz-vein related mineralisation hosted in meta-sediments with210km from Arua on the better mineralisation associated with vein stockworks that occurs preferentially in the coarser, brittle siltstones and sandstones.

The mineralised rocks have been deeply weathered to below 100 metres in places to form saprolite mineralisation (oxide). With the percentage of available oxide ore decreasing, a feasibility study to consider the exploitation of the fresh rock material was completed in December 2015. We began a combination plant conversion project in 2017. This conversion will allow the mine to treat six million tonnes of sulphate ore and six million tonnes of oxide ore. Construction was completed in March 2019 and commissioning of different sections of the plantUgandan border. Kibali is underway.

MALI
co-owned by AngloGold Ashanti has interests in two operations in Mali, namely, Sadiola and Morila. It manages one of these two operations, Sadiola. It previously had interests in Yatela, but closed the operations in 2018 and announced the sale of Yatela in February 2019.

Mali - Summary of metallurgical operations
MorilaSadiola
Capacity (tonnes/annum)5.5Mt4.9Mt

Mali – Morila

Description
AngloGold Ashanti has an effective 40 percent stake in Morila, as does(45%), Barrick Gold (Holdings) Limited (which manages the mine),(45%) following its merger with Randgold Resources Limited. The state (“Randgold”), and SOKIMO (10%), a state-owned gold mining company. SOKIMO is wholly owned by the DRC government with the shareholding held by the Minister of Mali ownsPortfolio of the remaining 20 percent.DRC.


The Morilaconsolidated lease is made up of ten mining concessions. The metallurgical plant comprises a twin-circuit sulphide and oxide plant with conventional carbon-in-leach (“CIL”), including gravity recovery as well as a float and ultra-fine grind circuit. Barrick operates the mine has operated since 2001which comprises both open pit and underground operations.

KIBALI

Property description
Kibali is situated 280 kilometres southeast of Bamako, the capital of Mali. Whena gold mining, concluded in 2009 with the depletionmilling and exploration project. Operations currently focus on open pit and underground mining. Development of the orebody, operations at Morila transitioned to stockpileunderground mine commenced in 2013 and tailings retreatment. The plant incorporates a conventional CIL process with an upfront gravity section to extract the free gold. Power is supplied by a subcontractor.



Geology
The Morila deposit is hosted in a flat lying fold structure which rises sharply to surface in the south and west. The deposit occurs within a sequence Birimian metal-arkoses of amphibolite metamorphic grade. Mineralisation is characterised by silica-feldspar alteration and sulphide mineralisation consists of arsenopyrite, pyrrhotite, pyrite and chalcopyrite.

Mali - Sadiola

Description
The Sadiola mine is situated in western Mali, 77 kilometres to the southproduction of the regional capitalunderground ramped up to 3.8Mt in 2021. Initial production was via a twin decline from surface. From 2018 onwards, the majority of Kayes and about 440 kilometres north-westore was hoisted up the shaft. The decline is used to haul some of the capital city of Bamako. The mineshallower zones and to supplement shaft haulage.

Kibali is owned by Kibali Goldmines SA which is a joint venture company between Barrick (45%), AngloGold Ashanti (41 percent)(45%) and IAMGOLD (41 percent)SOKIMO (10%).

The mine was originally developed and operated by Randgold. Since Randgold and Barrick merged in 2019, Barrick is now the government of Mali (18 percent). The Sadiola gold deposit has been mined by the Société d’Exploitation des Mines d’Or de Sadiola S.A. (SEMOS) since 1996. Mining reduced considerably to adapt to the 2014 gold price decrease but continued predominantly in various satellite pits. On-site surface infrastructure includes a CIP gold plant where the ore is elutedoperator at Kibali for both exploration and smelted. Power to the Sadiola mine is self-generated.

From 1996 until 2010, oxide and transitional ore from the Sadiola Hill pit was the primary ore source for the mine while being increasingly supplemented from the outlying satellite pits during the latter years. From 2011 when the Sadiola Main pit was mined out, the satellite pits became the dominant source of oxide and transitional ore. A projectmining. Kibali is currently under consideration to mine the underlying sulphide ore and upgrade the processing plant to treat the hard sulphide ore. The Company is evaluating the possibility of supplying power to the project through the grid and is negotiating fiscal provisions with the government of Mali.a production stage property.


Geology
The Sadiola deposit occurs within an inlier of greenschist facies metamorphosed Birimian rocks known as the Kenieba Window. The specific rocks which host the mineralisation are marbles and greywackes which have been intensely weathered to a maximum depth of 200 metres. As a result of an east-west regional compression event, deformation occurs along a north-south striking marble-greywacke contact, increasing the porosity of this zone. North-east striking structures which intersect the north-south contact have introduced mineralisation, mainly with the marble where the porosity was greatest. The Sadiola Hill deposit generally consists of two zones, an upper oxidised cap and an underlying sulphide zone.


TANZANIA

Tanzania - Geita

Description
The Geita gold mine is located in the Lake Victoria goldfields of the Mwanza region of Tanzania, about 120 kilometres west of Mwanza and four kilometres away from the town of Geita. It has been in operation since 1996.

The Geita gold mine is a multiple open pit and underground operation and is currently serviced by a 5.3 million tonnes per annum CIL processing plant. Power to the mine is self-generated. In 2016, underground mining commenced at Star and Comet to provide ore to the processing plant. This was joined in 2017 by the Nyankanga underground operations.

Geology
Geita is a multi- open pit operation with the dominant ore sources being from the Nyankanga and Geita Hill pits. Historically, other pits such as Star and Comet, Matandani and Kukuluma have also contributed to the ore feed. The terrain is Archaean in age and generally characterised by Greenschist metamorphism, although amphibolitic metamorphism occurs in places. Ore zones are usually associated with Banded Iron Formation (BIF) or other iron rich rocks and typically when they are in contact with intrusive rocks such as diorites. These contacts have been deformed and act as fluid pathways for the mineralising fluids. Gold mineralisation is associated with alteration that includes sulphides such as pyrite and arsenopyrite, whilst other minerals such as hematite, magnetite, quartz, calcite, dolomite, biotite and chlorite also occur.


DEMOCRATIC REPUBLIC OF THE CONGO

Kibali

Description
The Kibali Gold Mine is a Joint venture between AngloGold Ashanti (45 percent), Randgold Resources Limited, now Barrick Gold (Holdings) Limited, the operator, (45 percent) and Société Miniere de Kilo-Moto SA UNISARL (SOKIMO), a state-owned gold company owning the balance.

Location
Kibali is located in the north-easternnortheastern part of the DRC near the international borders with Uganda and South Sudan. The mine is located adjacent to the village of Doko, which is located into the west of the projectlease area. Kibali is approximately 210 kilometres210km by road from Arua on the Ugandan border and immediately north of the district capital of Watsa. The operationsoperational area falls within the administrative territory of Watsa in Haut-Uélé province.

Geology
The gold deposits at Kibali are largely hosted in siliciclastic rocks, banded iron formations (“BIFs”), and cherts that were metamorphosed under greenschist facies conditions, situated along a curvilinear zone 20 km long and up to one km in width, known as the KZ Structure. Gold mineralisation is concentrated in gently NE to NNE-plunging fold axes whose orientations are generally parallel with a prominent lineation in the mineralised rocks. The mineralised deposits of the Kibali district are associated with halos of Haut Uéléquartz, ankerite, and sericite (ACSA-A) alteration that extend for tens to hundreds of metres into the adjacent rocks. Areas of economic mineralisation are defined where the project scale ACSA-A alteration is locally overprinted by the ankerite-siderite, pyrite alteration assemblage (ACSA-B) that hosts the gold mineralisation. The gold-bearing sulphides consist of disseminated pyrite, minor pyrrhotite, and arsenopyrite. The auriferous pyrite occurs as both salt and pepper disseminated fine grains and bleb-like clusters of disseminated grains.

History
On 15 October 2009, AngloGold Ashanti acquired a 50% indirect interest in Orientale Province.Moto Goldmines Limited through a JV with Randgold, with Moto holding a 70% stake in Kibali and the balance (30%) being held by the DRC parastatal, SOKIMO. On 21 December 2009, Randgold and AngloGold Ashanti increased their JV interest in Kibali to 90%, while SOKIMO retained a 10% holding. On 2 January 2019, Randgold merged with Barrick, and the JV is now with the combined company, trading as Barrick.

The first gold was poured in September 2013 from the open pit operations and development of the underground mine commenced in the same year. First underground ore from development was also mined in 2013 and stoping began in 2015. Initial production was truck hauled by a twin decline to surface. In 2017, the haulage shaft (740m deep) and materials handling system were commissioned.

Legal aspects and tenure
Refer to “Item 4B: Business Overview—The Regulatory Environment Enabling AngloGold Ashanti to Mine—Africa Region—Democratic Republic of the Congo (DRC)—AngloGold Ashanti’s rights and permits”.






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Mining method
The operation comprises both open pit and underground mining. The open pit mining is carried out using conventional drill, blast, load and haul surface mining methods. The mining is conducted by a contractor, Kibali Mining Services, a local subsidiary of DTP Terrassement, using either free-dig or drill and blast.

For the underground operation, longitudinal, transverse primary or secondary stoping and advancing face stoping methods with paste backfill are used as the mining methods.

Operational infrastructure
Infrastructure in the DRC is generally poor as a result of limited investment in maintenance, upgrades and extensions of the road networks established during colonial times. The mine site is located within 160km of the border with Uganda and all transport links take place through Uganda to Kenya or Tanzania. Surface infrastructure associated with the overall Kibali operation includes a processing plant, tailings storage facility (TSF), camp, airstrip, workshops and offices. Power to the mine is self-generated. Gold production began inself-generated by a combination of hydroelectric and diesel generators.

The Property, Plant, and Equipment as of the fourth quarterend of 2013December 2021 including lease assets, buildings & mine infrastructure, mining assets, mineral rights and dumps, decommissioning assets, capitalised exploration costs and deferred stripping had a carrying value of $981m (reported as attributable - 45% owned by AngloGold Ashanti).


from open pit operationsMineral processing
The current processing plant can treat both oxide and underground mining commenced in 2014. Itfresh sulphide material and uses flotation with ultra-fine grind of the flotation concentrate, a treatment that is required for the sulphide ore type before leaching. Kibali has a processing operation capable of producing an average of 600koz of gold per annum designed to treat 7.2Mtpa but ongoing improvements have achieved performance beyond the design capacity successfully since 2017.

Qualified Persons
KibaliQualified PersonProfessional OrganisationMembership numberRelevant Years ExperienceQualification
Mineral ResourceRichard PeattieAusIMM30102925 yearsMPhil Mineral Resource Evaluation (University of Queensland)
Mineral ReserveRomulo SanhuezaAusIMM21179424 yearsBSc Eng (Mining)

Exploration
Refer to “Item 4B: Business Overview—Exploration review”.

Mineral Resource
Refer to Table 1a to Paragraph (b) prepared in accordance with Regulation S-K 1300 (§ 229.1303 (Item 1303)) that summarises the gold Mineral Resource (exclusive of Mineral Reserve) for Kibali at the end of the Fiscal Year ended 31 December 2021 based on $1,500/oz. The Mineral Resource is reported for the first time under Regulation S-K 1300 and thus no net difference can be reported.

Refer to the Key Parameters under Material Assumptions for additional information on cut-off grades and metallurgical recovery. For additional information, see the Technical Report Summary on each individual property, filed as an Exhibit of this annual report on Form 20-F.

Material Assumptions for the Mineral Resource

Key Parameters
KibaliUnitOpen Pit
Costs
Waste cost$/tonne mined
2.92-3.09(1)
Extra Ore Cost – Grade Control + Ore – Rehandle + Overhaul$/tonne mined1.27 
Grade Control cost$/tonne mined0.75 
Dilution%10
Ore Loss%3
Processing cost$/tonne milled
15.04-17.85(1)
G&A$/tonne milled8.47 
Other Parameters



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Gold Royalties (4.7%)$/oz70.50 
Metallurgical Recovery Factor%MetRF
86.1-90.1(1)
Mineral Resource cut-off gradeg/t
0.6-0.7(1)
Mineral Resource price$/oz1,500 
(1) Vary according to rock type

KibaliUnitUnderground
Costs
Mine Production$/tonne ore mined36.17 
Capital$/tonne ore mined3.97
G&A$/tonne ore milled8.47
Processing cost$/tonne ore milled17.85
Other Parameters
Gold Royalties (4.7%)$/oz70.50
Mining cut-off gradeg/t1.62
Mineral Resource price$/oz1,500 
Metallurgical Recovery Factor%MetRF90

Estimation
Mineral Resource estimation is undertaken by treating 7.2Mtpa throughput.Barrick in-house Qualified Persons or by approved external consultants. The results of both diamond drilling (“DD”) and reverse circulation (“RC”) drilling are used in the estimation process. 3D mineralised envelopes are established using grade and geology, and these are then statistically verified to confirm their validity for use in grade estimation. Appropriate domaining of homogeneous zones is conducted whereby high-grade central core areas are modelled separately from the lower-grade surrounding halos. Volumes are filled with block model cells and interpolated for density, rock type and grade, the latter using ordinary kriging. Grade top cuts and restricted searches are applied to drill hole data to prevent the spread of high-grades during the estimation process. Drill hole spacing is used to guide the Mineral Resource classification. The open pit Mineral Resource is quoted within a limiting shell. The underground Mineral Resource is constrained by the application of optimised mineable Mineral Resource shapes, which applies reasonable mineability constraints including a minimum mining width, a reasonable distance from current or planned development, and a measure of assumed profitability at the related Mineral Resource cut-off grade.

Mineral Reserve
Refer to Table 2ato Paragraph (b) prepared in accordance with Regulation S-K 1300 (§ 229.1303 (Item 1303)) that summarises the gold Mineral Reserve for Kibali at the end of the Fiscal Year ended 31 December 2021 based on $1,200/oz.

Refer to the Modifying Factors and price estimates under Material Assumptions for additional information on cut-off grades and metallurgical recovery. For additional information, see the Technical Report Summary on each individual property, filed as an Exhibit of this annual report on Form 20-F.

Year on year changes in Mineral Reserve - Moz
as at 31 December 2021Kibali
CategoryProvenProbableTotal
Previous Year1.272 2.974 4.247 
Depletion(0.410)— (0.410)
Exploration0.852 (0.485)0.367 
Methodology— — — 
Price0.039 0.105 0.144 
Cost— — — 
Geotechnical0.002 — 0.002 
Metallurgical— — — 
Operational— — — 
Acquisition / Disposal— — — 
Other(0.018)— (0.018)



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Current Year1.737 2.595 4.331 
Net Difference0.464 (0.380)0.085 
% Difference36 (13)2 

The increase in Mineral 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 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.

Material Assumptions for the Mineral Reserve

Modifying factors and price estimates
as at 31 December 2021Kibali
Primary Commodity Price$/oz1,200 
Cut-off gradeg/t
1.5(2); 1.76(4); 2.02(3)
Stoping widthcm
2990(3)
Dilution%
4.7(3); 10(2)
Mining Recovery Factor%MRF based on tonnes
91.6(3); 97(2)
Mine Call Factor%MCF97
Metallurgical Recovery Factor%MetRF
89-90(1)
(1) Vary according to rock type (2) Open pit (3) Underground (4) Stockpile

Estimation
The open pit Mineral Reserve shell optimisations were run on the Mineral Resource models. The process incorporated the mining layout, operating factors, stripping ratio, relevant cut-off grades and modifying factors for reporting the Mineral Reserve. An open pit underground interface was set at 5,685 metres relative level (“mRL”) between the KCD open pit and underground mine.

A cut-off grade analysis at $1,200/oz was used to determine a cut-off grade of 2.02g/t for the underground mine. Longitudinal and transverse longhole open stoping methods with paste backfill are the current preferred mining methods. Underground stope designs were updated from the previously reported Mineral Reserve using the latest Mineral Resource models. Modifying factors for planned and unplanned rock dilution, backfill dilution and ore loss were applied to obtain the reported Mineral Reserve.

Metallurgical, environmental, social, legal, marketing and economic factors were adequately considered in the Kibali Feasibility Study (“FS”) and have been updated as the project has developed.

Conclusion
There are no known significant risks or uncertainties that will impact the Mineral Resource and Mineral Reserve estimates.

An independent external review of the Mineral Resource and Mineral Reserve was undertaken in 2021 by RSC Mining and Mineral Exploration on behalf of the managing partner Barrick and found no significant flaws.

Map showing Kibali planned infrastructure and licences
Map showing Kibali infrastructure and licences, with the total mining lease area insert shown in the top right corner. The coordinates of the mine, as represented by the plant, are depicted on the map and are in the UTM coordinate system.





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GHANA
AngloGold Ashanti has two mines in Ghana. Obuasi and Iduapriem are both wholly owned and operated by AngloGold Ashanti.

Obuasi, currently in a redevelopment phase, is an underground mine operating at depths of up to 1,500m with a continuous history of mining dating back to the 1890s and Iduapriem, an open pit mine.

Obuasi is located in the Ashanti region of southern Ghana, approximately 60km south of Kumasi. Mining was temporarily suspended at the end of 2014 while a series of economic studies progressed. Obuasi underground development restarted in the first half of 2019, with the first gold produced in December 2019. The operations' ramp up to 4,000tpd of ore tonnes mined was delayed by the temporary stoppage of underground activities after a fall of ground incident in May 2021. Production remained suspended for several months to allow for reviews and investigations, but slowly resumed in the latter part of 2021.

Iduapriem is located in western Ghana, some 85km from the coast and south of Obuasi, near the town of Tarkwa.

IDUAPRIEM

Property description
Iduapriem is owned and operated by AngloGold Ashanti (Iduapriem) Limited, a company registered in Ghana. This is ultimately held by AngloGold Ashanti (Ghana) Limited (“AAGL”) which also operates the Obuasi Mine, and is also registered in Ghana. AAGL through successive hierarchal holdings is 100% held by the AngloGold Ashanti parent company. It is a multiple open pit operation that currently sources ore from the Block 3W, Ajopa, and Blocks 7 and 8 pits. More recently the Block 5 pit was re-instated in the mining plan. The property is currently in a production stage.

Location
The mine is located in the western region of Ghana, some 70km north of the coastal city of Takoradi and approximately 10km southwest of the town of Tarkwa. Iduapriem Mine is bordered to the north by Gold Fields Ghana Limited (Tarkwa Mine) and to the east by the Ghana Manganese Company Limited (a manganese mine in existence since the 1920s).

Geology
Iduapriem is located within the Tarkwaian Group which forms part of the West African Craton that is covered to a large extent by metavolcanics and metasediments of the Birimian Supergroup. In Ghana, the Birimian terrane consists of northeast-southwest trending volcanic belts separated by basins, and the Tarkwaian Group was deposited in these basins as shallow water deltaic sediments. The Tarkwaian lithologies are considered to represent the erosion products that accumulated following uplift and deformation of the underlying Birimian rocks during the Eburnean orogeny. The basins (grabens) are believed to have formed as a result of rifting, preferentially in the central parts of the Birimian volcanic belts. The Tarkwaian Group consists of a thick sequence of clastic metasedimentary rocks that have undergone low-grade regional metamorphism.

There are four recognised conglomerate reefs namely A, B, C, and D which are equivalent to the Tarkwaian Sub-basal, Basal (or Main), Middle (or West), and Breccia Reefs respectively. The B and C reefs are oligomictic, and consist of well-sorted conglomerates and was mined underground in some areas more than a century ago. The A and D reefs have a lower gold tenor and are polymictic containing both well-rounded and angular fragments. Gold is found within the matrix that binds the pebbles together. The gold content is a function of the size and amount (packing) of quartz pebbles present within a conglomeratic unit - more pebbles present suggests more gold. The gold is fine-grained, particulate, and free-milling (i.e. not locked up with quartz or iron oxides). Mineralogical studies indicate that the grain size of native gold particles ranges between 2 and 500 microns (0.002 to 0.5mm) and averages 130 microns (0.13mm). The thickness of the main mineralised B and C reefs are approximately 15m and 6m respectively. The mineralised sequence dips at angles varying from steep and sub-vertical, at Blocks 1 and 2, to steep (70° to 80° north dipping) towards Block 3 East. The dip continues to be shallower at Block 3 West (50°), through Blocks 4 and 5 (45°) to become 35° at Block 7 South and 30° at Block 8. At Ajopa, the average dip is 50° to 60°. At Block 7 and 8, the western limb of the syncline extends over 4km on the property, with the eastern limb reaching the surface just beyond the eastern boundary of the concession. The western and the eastern limbs outcrop about 4km apart with the mineralised horizons buried some 400m below the surface at the centre of the syncline.

History
A FS was completed in 1990 and in October 1991, the then owners, Golden Shamrock Limited (“Golden Shamrock”) began construction of a 1.36Mtpa semi-autogenous milling circuit and carbon-in-pulp (“CIP”) plant. Mining



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commenced in August 1992 with the first gold pour achieved in September of that year. Golden Shamrock was acquired by Ashanti Goldfields Company Limited (“Ashanti”) in 1996. In 2000, a portion of the non-operational Teberebie Goldfields Limited company (a subsidiary of Pioneer Goldfields Limited) was purchased resulting in an increased Mineral Reserve and LOM. In 2002, Ashanti upgraded the plant capacity to 4Mtpa, and in 2004 AngloGold merged with Ashanti to become AngloGold Ashanti. In 2009 the plant capacity was further extended to the current 5.2Mtpa. The Iduapriem heap leach started in 1996 and continued until 2006 when the low-grade oxide material was depleted. Teberebie Goldfields had started heap leaching from the onset in 1992. After the acquisition, Ashanti continued the Teberebie heap leach, but it was closed down in 2006 when low-grade oxide was depleted.

Legal aspects and tenure
Refer to “Item 4B: Business Overview—The Regulatory Environment Enabling AngloGold Ashanti to Mine—Africa Region—Ghana—AngloGold Ashanti’s rights and permits”.

Mining method
Iduapriem Mine is an open pit mine which makes use of the mining contractor, AMAX Mining Services. It uses conventional drill and blast, with truck and excavator load and haul.

Operational infrastructure
Surface infrastructure associated with Iduapriem’s operation includes a primary crusher, overland conveyor, CIL processing plant hasnext to the main office building, a capability of processing both oxideTSF and sulphide material.four camp areas for contractors and company employees. Tarkwa town is also adjacent to the tenement. Power is supplied to the mine by the Volta River Authority and Ghana Grid Company Limited (“GRIDCo”).


The undergroundProperty, Plant, and Equipment as of the end of December 2021 including lease assets, buildings & mine has bothinfrastructure, mining assets, capitalised exploration costs, decommissioning assets, assets under construction and deferred stripping had a ramp and shaft system, with the shaft reaching a depthcarrying value of 751.2m and hoisting its first ore in 2017.$273m.


GeologyMineral processing
The Kibalicurrent processing plant treats free-milling material from open-cast mining, by a conventional crush with a semi-autogenous ball milling circuit and cyanide leach. Iduapriem operates a two-stage crushing circuit consisting of a 54-75 primary gyratory crusher and two GP550 gyratory crushers for secondary crushing. The Iduapriem treatment plant has two semi-autogeneous grinding mills (“SAG mills”) and two ball mills which run in two parallel circuits, each with a SAG mill and a ball mill.

Qualified Persons
IduapriemQualified PersonProfessional OrganisationMembership numberRelevant Years ExperienceQualification
Mineral ResourceCharles Kusi-ManuAusIMM20523831 yearsDip (Geological Engineering), MSc, MBA, Postgraduate Certificate (Geostatistics)
Mineral ReserveMashudu Justice DavhanaECSA2009005021 yearsBSc Hons (Mining Engineering)

Exploration
Refer to “Item 4B: Business Overview—Exploration review”.

Mineral Resource:
Refer to Table 1a to Paragraph (b) prepared in accordance with Regulation S-K 1300 (§ 229.1303 (Item 1303)) that summarises the gold Mineral Resource (exclusive of Mineral Reserve) for Iduapriem at the end of the Fiscal Year ended 31 December 2021 based on $1,500/oz. The Mineral Resource is reported for the first time under Regulation S-K 1300 and thus no net difference can be reported.

Refer to the Key Parameters under Material Assumptions for additional information on cut-off grades and metallurgical recovery. For additional information, see the Technical Report Summary on each individual property, filed as an Exhibit of this annual report on Form 20-F.







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Material Assumptions for the Mineral Resource

Key Parameters
IduapriemUnitOpen Pit
Costs
Ore mining cost$/tonne mined
1.96-2.41(1)
Waste mining cost$/tonne mined
1.96-2.41(1)
Processing cost$/tonne treated15.24
G&A$/tonne treated6.75
Other Parameters
Metallurgical Recovery Factor%MetRF95.85
Slope anglesdegree
38-62.5(1)
Mineral Resource cut-off gradeg/t
0.45-0.50(1)
Mineral Resource price$/oz1,500 
(1) Vary according to area

Estimation
The geological model for each orebody comprises 3D wireframes of the faults and of the various conglomerate reefs that host the gold mineralisation. In some cases, late barren dolerite intrusions are also modeled as 3D wireframes. The interpretations are completed using geological mapping and drill hole grades, lithology logs and structural measurements.

The drill samples are composited to 1m intervals honouring the geological boundaries, as 1m is the prevailing length of sampling. Grade capping is applied to control the influence of extreme values within the reefs. The capping is kept to a minimum, generally not exceeding 0.5% of the samples within each estimation domain. The various sub-units within the conglomerate reefs are treated as separate estimation domains. Semi-variograms are modelled from the composited samples of each estimation domain. The grade estimation is done by ordinary kriging. The estimation panel block sizes for ordinary kriging are between 20 x 20 x 24m to 25 x 25 x 24m to optimally suit the sampling grid used in the delineation of the Indicated Mineral Resource. Sub-celling of 2.5 x 2.5 x 1m to 2.5 x 2.5 x 3m is used to ensure the geological model is captured in the block model with sufficient resolution. Search parameters are optimised for each domain to ensure robust estimates, with particular attention paid to the reduction of negative kriging weights, and improvement in the slope of regression and kriging efficiency. The maximum distance of extrapolation does not exceed half of the variogram range for each estimation domain.

Mineral Reserve
Refer to Table 2ato Paragraph (b) prepared in accordance with Regulation S-K 1300 (§ 229.1303 (Item 1303)) that summarises the gold Mineral Reserve for Iduapriem at the end of the Fiscal Year ended 31 December 2021 based on $1,200/oz.

Refer to the Modifying Factors and price estimates under Material Assumptions for additional information on cut-off grades and metallurgical recovery. For additional information, see the Technical Report Summary on each individual property, filed as an Exhibit of this annual report on Form 20-F.

Year on year changes in Mineral Reserve - Moz
as at 31 December 2021Iduapriem
CategoryProvenProbableTotal
Previous Year0.287 1.620 1.907 
Depletion(0.085)(0.131)(0.216)
Exploration— 0.216 0.216 
Methodology(0.162)— (0.162)
Price— — — 
Cost— 0.708 0.708 
Geotechnical— — — 
Metallurgical— — — 
Operational0.007 0.137 0.144 
Acquisition / Disposal— — — 



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Other— — — 
Current Year0.047 2.550 2.597 
Net Difference(0.240)0.930 0.690 
% Difference(84)57 36 

The net increase is primarily due to the decrease in costs resulting from signing a new mining contract and operational changes.

Material Assumptions for the Mineral Reserve

Modifying factors and price estimates
as at 31 December 2021Iduapriem
Primary Commodity Price$/oz1200
Cut-off gradeg/t
0.6-0.8(3); 0.8-0.85(2)
Resource Modification Factor%RMF based on tonnes100
Resource Modification Factor%RMF based on g/t100
Mining Recovery Factor%MRF based on tonnes
94-100(1)
Mining Recovery Factor%MRF based on g/t
96-100(1)
Mine Call Factor%MCF100
Metallurgical Recovery Factor%MetRF
93(3)-95.85(2)
(1) Vary according to area (2) Open pit (3) Stockpile

Estimation
The 3D Mineral Resource models are used as the basis for the Mineral Reserve. An ore envelope is developed using the Mineral Resource block model, geological information and the relevant cut-off grade, which is then used for mine design. An appropriate mining layout is utilised and incorporates mining extraction losses and dilution factors.

The Mineral Reserve is estimated within mine designs, using modifying factors based on actual mining and detailed analysis of cut-off grade, geotechnical, environmental, productivity considerations and the requirements of the mining fleet. The upper portions of the Ajopa deposit have been discounted for the estimated depletion by artisanal miners. This discount factor has been derived from observation and estimates based on the Mineral Resource model.

Conclusion
Power reliability, slope or high wall stability (rockfall potential), and inrush or inundation (flooding of pits, TSFs, and infrastructure) are considered potential risks or uncertainties in the Mineral Resource and Mineral Reserve estimate. Mitigation plans are in place to manage these risks.

An independent external Mineral Resource and Mineral Reserve audit was undertaken in 2021 by SRK Consulting and found no significant flaws in process or output.

Map showing Iduapriem planned infrastructure and licences: Map showing the location, infrastructure and mining license area for Iduapriem. The coordinates of the mine, as represented by the plant, are depicted on the map and are in the UTM coordinate system.




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109

OBUASI

Property description
Obuasi, currently in a redevelopment phase, is owned and operated by AngloGold Ashanti and is a development stage property. All required mineral rights to the property are held by the company. The mine is an underground operation, and it has been in operation since 1897 (more than 120 years). It has been owned and operated by AngloGold Ashanti since 2004.

Location
Obuasi Gold Mine is located withinin the Moto Greenstone Belt, whichmunicipality of Obuasi, in the Ashanti region of Ghana, about 240km northwest of the capital Accra and 60km south of Kumasi.

Geology
Geologically, Obuasi is in the Ashanti belt on the eastern margin of the Pre-Cambrian West African craton. This craton consists of Archean Kibalian volcano sedimentary rocksLower Proterozoic volcanic and ironstone-chert horizonsflysch sediments which make up the Birimian system, overlain in part by the molasse sediments of the Middle Proterozoic Tarkwaian. The Ashanti belt is the most prominent of the five Birimian Supergroup gold belts found in Ghana.

Gold mineralisation is associated with, and occurs within, graphite-chlorite-sericite fault zones. These shear zones are commonly associated with pervasive silica, carbonate and sulphide hydrothermal alteration and occur in tightly folded Upper Birimian schists, phyllites, metagreywackes and tuffs, along the eastern limb of the Kumasi anticlinorium.

Two main ore types are present, namely quartz vein and sulphide ore. The quartz vein type consists mainly of quartz with free gold in association with lesser amounts of various metal sulphides containing iron, zinc, lead and copper. This ore type is generally nonrefractory. The sulphide ore type is characterised by the inclusion of gold in the crystal structure of arsenopyrite minerals. Higher gold grades tend to be associated with finer grained arsenopyrite crystals. The sulphide ore is generally refractory.

History
Obuasi has a long mining history dating back to 1897. It has been owned and operated by various operators during this time. The current operator became involved in 2004 following the merger of the former AngloGold Limited of South Africa and the Ashanti Goldfields Company Limited of Ghana. However, for several years leading up to 2014, the mine began to struggle due to ailing infrastructure and outdated methodologies. It was realised that have been metamorphosedsignificant rationalisation and/or replacement of current infrastructure would be necessary to greenschist facies.enable the delivery of better utilisation and productivity metrics.


In 2014, a FS commenced that considered the optimum mining methodology and schedules for the underground mine, based on modern mechanised mining methods and refurbishment of underground, surface and process plant infrastructure. During this time, Obuasi operated in a limited operating phase with underground activities essentially restricted to continued development of the Obuasi deeps decline and underground infill drilling. The limited operating phase was brought to a halt after an incursion by illegal miners on Obuasi's concession in February 2016 at which point the mine was placed under care and maintenance. The study however continued and in 2017, a favorable FS was completed and indicated a strong technical and economical case with an anticipated 20-year mine life. In 2018 approval was received from the AngloGold Ashanti board and the government of Ghana to proceed with the project. The redevelopment project kicked off in 2019.

The combined Karagba, Chauffeuroperations' ramp up to 4,000tpd of ore tonnes mined was delayed by the temporary stoppage of underground activities after a fall of ground incident in May 2021. Production remained suspended for several months to allow for reviews and Durba (KCD) depositinvestigations, but slowly resumed in the latter part of 2021.

Legal aspects and tenure
Refer to “Item 4B: Business Overview—The Regulatory Environment Enabling AngloGold Ashanti to Mine—Africa Region—Ghana—AngloGold Ashanti’s rights and permits”.

Mining method
Obuasi is hostan underground operation utilising both vertical shafts and declines as main access routes to the majorityunderground workings. The mine has seen extensive historical mining activities with varying applications of different mining methods to date. The current LOM design employs mostly the Long Hole Open Stoping (“LHOS”) mining method for ore extraction. LHOS is a highly selective and productive method of mining that can be employed for



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orebody of varying thicknesses and dips. The three main distinct variations of the currently definedLHOS used at Obuasi are Longitudinal Retreat Stoping (“LRS”), Longitudinal Open Stoping (“LOS”) and Transverse Open Stoping (“TOS”). The Blind Upper Stoping (“BUS”) is a form of LRS or TOS used for partial sill pillar recovery.

Operational infrastructure
Existing infrastructure includes a 2.2Mtpa processing plant with flotation and bacterial oxidation (“BIOX”), underground development, hoisting shafts and associated infrastructure, emergency standby power and water reticulation, office complexes, workshops and company housing estates. Power is supplied to the mine by the Volta River Authority and GRIDCo.

The Property, Plant, and Equipment as of the end of December 2021 including buildings & mine infrastructure, mining assets, decommissioning assets and assets under construction had a carrying value of $882m.

Mineral processing
The plant is configured for both conventional and flash flotation and BIOX treatment which is required for the refractory sulphide ore. The gravity gold recovery system is also an integrated system with Knelson concentrators and inline leach reactors.

Qualified Persons
ObuasiQualified PersonProfessional OrganisationMembership numberRelevant Years ExperienceQualification
Mineral ResourceEmmarentia MaritzSACNASP11834518 yearsMSc (Mineral Resource Evaluation)
Mineral ReserveDouglas AtangaAusIMM33439113 yearsBSc (Mining Engineering)

Exploration
Refer to “Item 4B: Business Overview—Exploration review”.

Mineral Resource
Refer to Table 1a to Paragraph (b) prepared in accordance with Regulation S-K 1300 (§ 229.1303 (Item 1303)) that summarises the gold Mineral Resource (exclusive of Mineral Reserve) for Obuasi at the end of the Fiscal Year ended 31 December 2021 based on $1,500/oz. The Mineral Resource is reported for the first time under Regulation S-K 1300 and Orethus no net difference can be reported.

Refer to the Key Parameters under Material Assumptions for additional information on cut-off grades and metallurgical recovery. For additional information, see the Technical Report Summary on each individual property, filed as an Exhibit of this annual report on Form 20-F.

Material Assumptions for the Mineral Resource

Key Parameters
ObuasiUnitUnderground
Costs
Mining cost$/tonne mined
59.52-98.01(1)
Processing cost$/tonne treated42.06
G&A$/tonne treated22.92
Other Parameters
Royalties%3.0
MSO optimising cut-offg/t
3.15-4.0(1)
Mineral Resource cut-off gradeg/t
3.15-4.0(1)
Mineral Resource price$/oz1,500 
Metallurgical Recovery Factor%MetRF87
(1) Vary according to area

Estimation
The estimation technique is ordinary kriging and the primary estimation unit size is 20m by 5m by 15m. This estimation unit size is representative of the underground mining units and is considered appropriate given the style of mineralisation and mining methods. Compositing by length is employed and the influence of extreme grades are



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restricted by grade capping. Sample spacing is highly variable across the deposit and ranges from 10m by 10m (for grade control areas) up to 200m by 200m (for exploration targets). However, for the Mineral Resource, the maximum extrapolation from data points is 100m. Any areas beyond this, are considered to be upside potential rather than Mineral Resource.

Mineral Reserve
Refer to Table 2ato Paragraph (b) prepared in accordance with Regulation S-K 1300 (§ 229.1303 (Item 1303)) that summarises the gold Mineral Reserve for Obuasi at the end of the Fiscal Year ended 31 December 2021 based on $1,200/oz.

Refer to the Modifying Factors and price estimates under Material Assumptions for additional information on cut-off grades and metallurgical recovery. For additional information, see the Technical Report Summary on each individual property, filed as an Exhibit of this annual report on Form 20-F.

Year on year changes in Mineral Reserve - Moz
as at 31 December 2021Obuasi
CategoryProvenProbableTotal
Previous Year— 8.733 8.733 
Depletion— (0.086)(0.086)
Exploration— — — 
Methodology1.186 0.010 1.196 
Price— — — 
Cost— — — 
Geotechnical— — — 
Metallurgical— — — 
Operational— (1.580)(1.580)
Acquisition / Disposal— — — 
Other— — — 
Current Year1.186 7.078 8.263 
Net Difference1.186 (1.655)(0.470)
% Difference100 (19)(5)

Operational changes were primarily associated with design reviews in historically mined areas to eliminate low confidence stopes resulted in a net decrease. This was offset partially by methodology change due to geological re-interpretation and revision of estimation parameters in Adansi resulting in addition to the Mineral Reserve.

Material Assumptions for the Mineral Reserve

Modifying factors and price estimates
as at 31 December 2021Obuasi
Primary Commodity Price$/oz1200
Cut-off gradeg/t
3.82-5.01(1)
Dilution%
12-17(1)
Mining Recovery Factor%MRF based on tonnes
95-98(1)
Mining Recovery Factor%MRF based on g/t100
Mine Call Factor%MCF100
Metallurgical Recovery Factor%MetRF87
(1) Vary according to area

Estimation
The Mineral Reserve estimation considers mining criteria for the economic cut-off grade and minimum mining width for the anticipated mining method. All design and scheduling work is undertaken to an applicable level of detail by mine planning engineers in consultation with other technical specialists using Datamine Studio UGTM and Enhanced Production SchedulerTM (“EPS”) software.




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The cut-off grade parameters used include projected mining, processing, and general and administrative costs. A Mineral Reserve gold price of $1,200/oz was used. The cut-off grade also considers the metallurgical recovery factor (87% applied for all blocks), mining dilution and recovery, and tonne-kilometer haulage cost from all blocks as well as the current open pitfill type.

Stopes are designed using the Datamine Mineable Shape OptimiserTM (“MSO”) Software where the outputs are further optimised by manual edits. The stope shapes are generated at section internals of 15 to 20m based on geotechnical guidance for each block. The MSO allows the class field to be assigned to each stope generated. The mine design is reviewed taking into consideration the updated stope shapes, existing development and undergroundfuture infrastructure need. A LOM plan is generated which considers fleet and infrastructure capacities. All mining operations. KCDblocks are designed for the LHOS mining method. The Obuasi Mineral Reserve is hosted within a mineralised corridor that also hostsreported from the Sessenge, GorumbwaLOM plan and Pakaka depositsonly includes Measured and a numberIndicated Mineral Resource.

Conclusion
All available, appropriate data has been used for Mineral Resource estimation. This includes historical geological and survey data collected over several decades prior to the merger of exploration prospects.

AngloGold and Ashanti in 2004. The known depositsrisk or uncertainty in the estimates associated with the inclusion of the Kibalihistorical geological data has been mitigated by a comprehensive data validation project completed by a team of geologists between 2015 and 2018, which included the re-logging of all available holes below 50 Level. With regards to the historical survey data, given the mine's long history, there is uncertainty in the reliability of some of the previous mining volumes. Certain measures have been taken to lessen this risk including large-scale sterilisations for unreachable or extensively mined areas, or downgrades to the Inferred Mineral Resource category to reflect reduced confidence. However, verification of this historical information is ongoing and there may be additions and subtractions over time as further assessments are hosted along a reactivated thrust plane that creates plunging lodesmade, areas become accessible and more detailed investigations can be undertaken.

An independent external Mineral Resource and Mineral Reserve audit was undertaken in 2021 by SRK Consulting and found no significant flaws in process or output.

Map showing Obuasi planned infrastructure and licences
Map showing the location, infrastructure and mining license area for Obuasi. The coordinates of mineralisationthe mine, as exemplifiedrepresented by the KCD deposit. The majority of gold mineralisation identified to date is disseminated style, hosted within a sequence of coarse volcaniclasticplant, are depicted on the map and sedimentary rocks. The mineralisation is generally stratigraphically bound and associated with carbonate-silica-albite alteration with minor sulphide.are in the UTM coordinate system.




AUSTRALASIA


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au-20211231_g9.jpg



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AUSTRALIA


DescriptionGeneral laws relating to mining

In Australia, with a few exceptions, all onshore minerals are owned by the Crown. The respective Minister for each state and territory is responsible for administering the relevant mining legislation enacted by the states and territories.



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Native title legislation applies to certain mining tenements within Australia. Australia recognises and protects a form of native title that reflects the entitlement of Aboriginal people to their traditional lands in accordance with their traditional custom and laws. Should native title claims or determinations exist, certain native title processes and procedures will apply under the Native Title Act 1993 (Cth) (the “Native Title Act”) before the tenure is granted. Tenure may be granted subject to conditions relating to native title rights. In the mining context, native title matters are managed as part of the tenement grant process. If disputes arise in relation to the grant of a particular tenement, they can be referred to the National Native Title Tribunal, established under the Native Title Act, for resolution. Native title legislation also provides a framework for compensation to be paid for acts that affect native title rights and interests. Ordinarily, the relevant Commonwealth or State government is liable to pay compensation for acts attributable to it. However, in the state of Western Australia, the Mining Act 1978 (WA) provides that an applicant for the grant of, or the holder of, a mining tenement is responsible for native title compensation, if determined to be payable, to native title holders.

Federal, state and territory Aboriginal and non-Aboriginal heritage laws operate in parallel to the native title legislation. State and territory heritage laws exist predominantly for the purposes of managing the impact of developments on sites, objects and areas of heritage significance. In Western Australia, impacts to Aboriginal cultural heritage are regulated by the Aboriginal Heritage Act 1972 (WA). However, this legislation will be repealed and replaced by the Aboriginal Cultural Heritage Act 2021 (WA) which was enacted in 2021 and is expected to become effective in early 2023. Where an area of heritage significance is placed on the national or world heritage registers, federal approval processes may also apply. To date, there has not been any significant impact on any of AngloGold Ashanti’s tenure due to native title or heritage legislation.

AngloGold Ashanti’s operating properties are located in the state of Western Australia where tenure is issued under, and mining operations are governed by, the Mining Act 1978 (WA). The most common forms of tenure in Western Australia are exploration and prospecting licences, mining leases, miscellaneous licences and general purpose leases. In most Australian states, if the holder of an exploration licence establishes indications of an economic mineral deposit in the area covered by the exploration licence and complies with the conditions of the grant, the holder of the exploration licence has a priority right against all others to be granted a mining lease which gives the holder exclusive mining rights with respect to minerals on the property.

It is possible for an individual or entity to own an area of land (including for infrastructure purposes) and for another individual or entity to be granted the right to explore for or mine any minerals located on or under the surface of the same area. The maximum initial term of a mining lease in Western Australia is 21 years and the holder has the right to renew the lease for an additional 21 years. Subsequent renewals are granted at the discretion of the respective state or territory’s minister responsible for mining rights. In Western Australia, mining leases can only be assigned with the prior written consent of the minister.

Tax laws relating to mining

Government royalties are payable by the holder of mining tenure in respect of minerals obtained from the relevant area of land at the rates specified in the relevant legislation in each state or territory. The royalty on gold production in Western Australia is payable quarterly at a fixed rate of 2.5 percent of the royalty value of gold metal produced. The royalty value is calculated by multiplying the amount of gold produced during a given month by the average gold spot price for that month. In addition, the holder of a mining tenement is required to pay annual rent in respect of the tenement. In Western Australia there is a minimum annual expenditure requirement for prospecting and exploration licences and mining leases. Exemptions from the expenditure requirement can be obtained if certain conditions are satisfied.

Environmental laws relating to mining

Mining tenements will be granted with endorsements and conditions relating to protection of the environment. Exploration and mining operations may also require separate approval from the state, territory or federal environment minister, which may require completion of an environmental impact assessment (including a public consultation period) pursuant to applicable environmental protection legislation prior to commencement. Further, a works 'construction' approval and an operating licence under the relevant environmental protection legislation in the state or territory may also be required for certain mine processing or mining-related operations. Depending on the jurisdiction, additional approvals may be required for the removal of native vegetation within the tenement, and the taking and use of water for exploration and mining operations.

AngloGold Ashanti’s rights and permits

AngloGold Ashanti has been granted 21-year term mining leases with rights of renewal to all of its mining areas in Australia, including its proportionate share of joint venture operations and accordingly it has, together with its joint venture partners where applicable, the exclusive right to mine in those areas. Both the group and its joint venture partners are fully authorised to conduct operations in accordance with relevant laws and regulations. The mining leases and rights of renewal cover the current life-of-mine at AngloGold Ashanti’s operations in Australia.

At Sunrise Dam, one mining lease (M39/1116) covers the deposit and mine infrastructure (approximately 7,808 hectares) and another mining lease (M39/1117) covers the water extraction infrastructure used to supply the operation with water (approximately 1,768 hectares). Both leases are currently in good standing, with expiry dates in 2038.




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The Butcher Well joint venture has security of tenure for all current exploration licences and for the contiguous mining leases that covers its Mineral Resource. There are three mining leases: mining lease (M39/165) which covers 602.35 hectares with expiry date in 2030, mining lease (M39/166) which covers 990 hectares with expiry date in 2030 and mining lease (M39/230) which covers 446.4 hectares with expiry date in 2032.

At Tropicana, the deposit is situated upon a single mining lease (M39/1096) covering approximately 27,228 hectares, which is currently in good standing, with an expiry date in 2036.

AngloGold Ashanti Australia Limited is also conducting early stage exploration activities in Queensland under the Mineral Resources Act 1989 (QLD). AngloGold Ashanti holds 11 exploration permits covering 215,300 hectares. Each permit is granted with an initial term of five years, renewable for two further periods of not more than five years each.


AMERICAS

Argentina

General laws relating to mining and land ownership

Mining regime

The Argentinean Mining Code governs mining activity in the country. Special regimes exist for hydrocarbons and nuclear minerals. In the case of most minerals, the Argentinean Mining Code establishes that the owner of the land is not the owner of the mineral rights; these are held by the national or provincial governments (depending on the location of the minerals). The national or provincial government, as applicable, is required by the Argentinean Mining Code to grant whomever discovers a new mine title to the mining concession.

The Argentinean Mining Code regulates exploration permits as well as mining concessions, or exploitation rights. Exploration permits grant their holders exclusivity rights to any mineral discoveries, including those made by a third party within the exploration area covered by the permit. Exploration permits are limited in time and as to the extent of the exploration area, are subject to the payment of a single-time fee, and also require a minimum exploration work programme and schedule to keep the permit in force. Priority for receiving a mining concession is given to the registered discoverer of the mine, which holds the exploration permit. Once the application for a mine has been submitted, the applicant may commence works and must submit a legal survey of the units requested for the new mine. The application and the legal survey may be opposed by third parties following specific proceedings set forth in the Argentinean Mining Code. Approval and registration of the legal survey by the provincial mining authority constitutes formal title to the mining concession.

Holders of mining concessions must comply with three main conditions: payment of an annual fee, investment of a minimum amount of capital, and the carrying out of a reasonable level of exploitation. Failure to do so could lead to forfeiture of the mining concession, which would then revert back to the Province.

In addition to the Argentinean Mining Code, between 1993 and 1995, Argentina implemented several federal laws to offer foreign companies attractive incentives for exploration and mining in Argentina, the Mining Investment Law (Law No. 24, 196), as amended (the “Mining Investment Law”), and related legal provisions being the most important one. Such incentives include, among other matters, import duty exemptions, accelerated depreciation of fixed assets, a 3 percent cap on provincial royalties set at pit-head value on the mineral extracted, value added tax refunds for exploration-related expenses incurred by companies registered under the Mining Investment Law, and, subject to the filing of a feasibility study for the relevant mining project, a 30-year stability as to the tax burden on the project and the customs and foreign exchange regimes and duties. Cerro Vanguardia S.A. (“CVSA”) obtained its tax, customs and foreign exchange stability certificate in 1996.

Glacier Law

On 30 September 2010, the National Law on Minimum Requirements for the Protection of Glaciers (Law No. 26, 639) (the “Glacier Law”) was enacted in Argentina, banning new mining exploration and exploitation activities on glaciers and “peri-glacial” areas. The Glacier Law establishes a broad definition of “peri-glacial” areas that, together with glacial areas, must be surveyed by an existing national government agency specifically appointed to this end every five years. The area where the Cerro Vanguardia project is located does not include any glaciers or peri-glacial areas according to the inventory of glaciers which was published in June 2018.

Rural Land Law

On 27 December 2011, the Argentinean National Congress passed a law on the Regime for Protection of National Domain over Ownership, Possession or Tenure of Rural Land (Law No. 26, 737) (the “Rural Land Law”) which implemented a set of rules restricting the ownership of rural land by foreigners (including foreign individuals or any kind of legal entity controlled by foreign individuals or legal entities). The main restrictions are as follows: (i) foreigners cannot own in the aggregate more than



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15 percent of the entire rural land of Argentina, the same cap being applicable to each Province and Municipality; (ii) foreigners will not be allowed to purchase more than 1,000 hectares in the so-called “zona núcleo”, which comprises the main agricultural areas of central Argentina or an “equivalent” surface depending on the location of the land and its productive potential; and (iii) foreigners will not be allowed to buy land that contains, or is adjacent to, relevant and permanent water bodies (such as rivers and lakes). Although exploration permits and mining concessions are not the subject matter of the restrictions placed by the Rural Land Law, certain rights granted to foreign mining companies under the Argentinean Mining Code may be restricted by this new law. For example, the right that holders of mining concessions currently have to force the surface owner to sell the land to the holder of the mining concession might be restricted if the concession holder is a foreign individual or a legal entity controlled by foreigners.

Federal Mining Agreement

On 13 June 2017, the national government and the provinces in whose territories the main mining projects of Argentina are located, signed the New Federal Mining Agreement (“FMA”). The purpose of the FMA is, amongst other things, to increase provincial revenues from the mining industry by creating legal entities owned by provincial governments that would work in association with private mining companies. This scheme is not new in Argentina and it has been used by some provincial governments, amongst them the Santa Cruz Province (through Fomicruz), in which the Cerro Vanguardia project is located. The FMA also contemplates other forms of revenues such as the formation of special trusts to be funded by mining companies to finance education, health and other programmes. Additionally, the FMA included setting forth mining royalties up to three percent of the gross value of commercialised minerals, without any deductions other than VAT. As the FMA has not yet been converted into law by the National Congress, its provisions are neither binding nor enforceable.

In Argentina, the current regulatory regime of royalty payments is expected to change and several different options and payment thresholds have been discussed. In December 2012, the Santa Cruz Province changed the mining royalty from one percent to three percent calculated at pit-head value of the mineral extracted thus bringing it to the cap of the Mining Investment Law.

Foreign exchange and export rules

Foreign exchange controls

On 1 September 2019, by means of Executive Decree No. 609/2019 (the “Export Controls Decree”), the Argentinean national government reinstated foreign exchange and export controls. The Export Controls Decree and related regulations of the Central Bank of Argentina impose, among other measures, the obligation of Argentinean residents to transfer to Argentina and/or sell for Argentinean pesos in the Argentinean foreign exchange market (mercado de cambios) the countervalue (contravalor) from their exports of goods within a specified period. The export of goods is regulated by Communication “A” 6882 of the Argentinean Central Bank (as modified) which establishes the specific regulatory requirements to implement the measures adopted by the national government in this area. Prior approval of the Argentinean Central Bank is generally required to access the foreign exchange market for transactions relating to the outflow of funds, except in certain circumstances. Until 30 June 2022, prior approval from the Argentinean Central Bank is not required for payments in connection with the import of goods if certain conditions are satisfied.

CVSA had a cash balance equivalent to $139 million at 31 December 2021. During 2021, AngloGold Ashanti received offshore dividends in a total amount of $19 million (net of withholding taxes) paid in US dollars. Out of the $139 million (equivalent) cash balance, monies equivalent to $131 million 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 $114 million to AngloGold Ashanti. While the approval is pending, the cash remains fully available for CVSA’s operational requirements.

Export duties

On 21 December 2019, the National Law on Social Solidarity and Productive Reactivation (Law No. 27, 541) (the “Solidarity Law”) was enacted. The Solidarity Law granted the national government power until 31 December 2021 to impose export duties which may not exceed certain caps. For example, the Solidarity Law provides that export duties on mining exports cannot exceed 8 percent of the taxable value or official FOB price. On 2 October 2020, the national government published Decree No. 785/2020 (the “Export Duties Decree”) which sets an export duty rate of 8 percent for certain goods, including doré bars and gold alloys, and revoked the provisions of Decree No. 793/2018 which had previously set the export duty at 12 percent ad valorem. While the Export Duties Decree was set to expire at the end of 2021, on 31 December 2021, the national government published Decree No. 908/2021, extending the deadline of export duties on certain goods, including doré bars and gold alloys, until 31 December 2023. It is uncertain whether the national government is empowered to extend such deadline beyond the date set forth in the Solidarity Law. These export duties, if not compensated with other tax reductions, affect the tax stability guarantee granted to CVSA in 1996 in light of the fact that at the time export duties were zero percent.

On 26 February 2019, the Argentinean tax and mining authorities published a resolution (RC 4428/2019) establishing an administrative procedure to be followed to obtain the reimbursement or compensation of federal taxes paid in excess of the total tax burden provided for by the applicable tax stability guarantee. CVSA initiated this new procedure to claim compensation for



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the export duties it paid in 2018 and 2019 as export duties are not contemplated by its tax stability guarantee. Prior to the publication of RC 4428/2019, CVSA had already submitted to the tax authorities claims for reimbursement of the export duties it paid from 2008 to 2015.

Pursuant to the new administrative procedure, the National Mining Secretariat issued favorable opinions regarding CVSA’s claims in respect of fiscal years 2018 and 2019, which amounted to approximately $3.5 million and $10.8 million, respectively, as of 31 December 2021. These claims are currently under review by the relevant customs authorities. On 14 July 2021, CVSA submitted its claim in respect of fiscal year 2020, which amounted to approximately $21.4 million as of 31 December 2021. The National Mining Secretary has not yet issued an opinion regarding this claim. CVSA expects to submit its claim in respect of fiscal year 2021 in due course.

Furthermore, CVSA has requested the tax authorities to apply the procedure provided for in RC 4428/2019 in respect of its historical claims for fiscal years 2008 to 2015 during which the imposition of export duties also exceeded CVSA’s total tax burden under its tax stability guarantee. However, these claims, which amounted to approximately $5.3 million as of 31 December 2021, are still being reviewed under the rules to challenge export duties instead of the new procedure provided for in RC 4428/2019. CVSA has appealed the application of those rules and a decision on this issue is pending.

In total, AngloGold Ashanti’s net export duty receivables (after discounting provisions) in Argentina amounted to $19 million as of 31 December 2021.

Environmental laws relating to mining

Any mining company wishing to commence or modify any mining-related activity, as defined by the Argentinean Mining Code, including prospecting, exploration, exploitation, development, preparation, extraction, and storage of mineral substances, as well as property abandonment or mine closure activity, is required to prepare and submit to the competent provincial environmental authority an Environmental Impact Assessment (“EIA”) prior to commencing the work. Each EIA is required to describe the nature of the proposed work, its potential risk to the environment, and the measures that will be taken to mitigate that risk. If accepted by the competent authority, the EIA is used as the basis to create a Declaration of Environmental Impact (“DEI”) to which the mining company is required to adhere during the mining-related activity at issue. The DEI is required to be updated at least on a biannual basis. Sanctions and penalties for non-compliance with the DEI are outlined in the Environmental Protection section of the Argentinean Mining Code, and may include warnings, fines, suspension of quality certifications, restoration of the environment, temporary or permanent closure of activities, and withdrawal of authorisation to conduct mining-related activities.

AngloGold Ashanti’s rights and permits

The mining concession holder of Cerro Vanguardia, the company’s operation in Argentina, is AngloGold Ashanti’s partner, Fomento Minero de Santa Cruz S.E. (“Fomicruz”), which is wholly owned by the Santa Cruz Province. On 27 December 1996, Fomicruz entered into a usufruct agreement whereby CVSA was granted an irrevocable right to exploit the Cerro Vanguardia deposit (encompassing an area of approximately 543 km2) for a 40-year period. The mining licence (402642/CV/97), which covers the full Mineral Reserve, expires on 26 December 2036. CVSA is a corporation incorporated in Argentina indirectly controlled by AngloGold Ashanti (92.5 percent), with Fomicruz as minority shareholder (7.5 percent). On 14 August 1996, CVSA obtained its tax, customs and foreign exchange stability certificate, which expires in 2026.

Brazil

General laws relating to mining and land ownership

The Brazilian Constitution of 1934 states that, for purposes of exploration and exploitation, deposits and other Mineral Resources constitute property separate from the soil and belong to the Federal Union. Exploration and exploitation of such Mineral Resources may take place only with the Federal Union’s concession and in such a way as to protect the national interest. Federal law sets out penal and administrative sanctions for conduct and activities deemed harmful to the environment.

In Brazil, the National Mining Agency (“ANM”) is the state body within the Mines and Energy Ministry (“MME”) that is responsible for: (i) the registration of mining titles, (ii) the grant of authorisations and concessions, (iii) the supervision of mining activities and mining titleholders, and (iv) the issuance of supplementary rules in relation to mining activity.

Under the current Brazilian Mining Code, there are two kinds of mines: (i) claimstake mines (minas manifestadas), for which rights were acquired before 1934 and exist independently of any mining licence or authorisation from the Federal Government and for which the Mineral Resources constitute property of the landowner, and (ii) granted mines, which are those that rely on grants from the Federal Government for mineral exploration or exploitation (pursuant to the Brazilian Constitution of 1988). AngloGold Ashanti’s operations in Brazil consist of both claimstake mines and granted mines.

Mining activities in granted mines must be performed in two defined stages: (i) exploration, which entails defining and evaluating the deposit and determining the feasibility of exploitation, and (ii) exploitation, which involves coordinating operations aimed at the industrial exploitation of the mineral deposit, from the extraction of useful minerals to their processing. Exploration



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authorisations issued by ANM are valid for one to three years. Extensions can be obtained if necessary, as long as it is justified. In contrast, exploitation rights, once granted, are valid for the lifetime of the deposit, provided the mining titleholder complies with all legal requirements. Pursuant to these requirements, for example, titleholders must (i) start work on mineral exploitation within six months from the date of publication of the Exploitation Concession, (ii) continue their mining activities until the mineral deposit has been exhausted, in accordance with the Economic Exploitation Plan (Plano de Aproveitamento Econômico) approved by ANM, and (iii) refrain from suspending mining activities without prior notice to ANM.

Tax laws relating to mining

During the exploration period, the mining titleholder has to pay an Annual Rate per Hectare (Taxa Annual por Hectare or “TAH”), subject to a maximum value set by law. In the exploitation period, regardless of the legal regime governing the project (whether claimstake or granted mines), the mining titleholder has to pay the Financial Compensation for Exploiting Mineral Resources (Compensação Financeira pela Exploração Mineral or “CFEM”). The CFEM which is 1.5 percent for gold is currently calculated based on revenues.

At the end of 2011 and the beginning of 2012, the states of Minas Gerais, Pará, Amapá and Mato Grosso do Sul each created a new “inspection and control” tax (duty) on extraction and exploration activities as well as on the use of Mineral Resource carried out in those states. In the state of Minas Gerais, gold ore and silver ore are exempted from the collection of this new duty. At the end of 2020, the state of Goiás created a new “inspection and control” tax (duty) on extraction and exploration activities carried out in this state, which currently still needs to be implemented. The constitutionality of these “inspection and control” taxes has been challenged by the National Industry Confederation and the matter is currently pending before the Supreme Court of Brazil.

Environmental laws relating to mining

Following the catastrophic failure of a tailings storage facility (“TSF”) at the Córrego do Feijão iron ore mine owned by Vale at Brumadinho in the state of Minas Gerais in Brazil in January 2019, executive, legislative and judiciary bodies, both at the federal and state levels, have generally increased scrutiny of mining operations in Brazil, and of TSFs in particular, and have been considering, and in some cases have adopted, stricter laws and regulations applicable to the approval, licensing, construction, management, closure and decommissioning of TSFs in Brazil.

At the federal level, the ANM issued Resolution No. 13/19 in August 2019 (replacing its earlier Resolution No. 4/19) which adopted additional regulatory measures to ensure the stability of TSFs, in particular those built or heightened by the upstream method or by any method declared as “unknown”. Among other things, ANM Resolution No. 13/19 prohibits the upstream method for the construction or heightening of tailings dams throughout the national territory of Brazil. It further requires operators to cease all storage and disposal activities at TSFs (known as “deactivation” or “desativação”) constructed or heightened upstream or by an “unknown” method by 15 September 2021 as well as to decommission such TSFs by 15 September 2022 to 15 September 2027 (depending on the capacity volume). To comply with the terms of ANM Resolution No. 13/19, the Serra Grande tailings dam in the state of Goiás must be decommissioned by 15 September 2025. The Serra Grande mine completed the process of reinforcing the dam walls of its upstream TSF, deactivating the TSF and migrating to dry-stacking operations, each by the 15 September 2021 deadline.

Furthermore, Federal Law No. 14.066/20, adopted in October 2020, also imposes requirements on companies to decommission upstream TSFs, including the Serra Grande tailings dam, by 25 February 2022 (which date is earlier than required by ANM Resolution No. 13/19). However, Federal Law No. 14.066/20 does permit extensions of the compliance deadline, with the consent of the ANM based on the technical plan for decommissioning. Serra Grande has submitted timely requests to obtain an extension of the compliance deadline until 2025 in line with the timeline set forth in ANM Resolution No. 13/19 and presented its technical plan for decommissioning. Feedback from the ANM on these requests is currently awaited. With respect to downstream (or “centerline”) TSFs, Federal Law No. 14.066/20 requires companies, to the extent that communities are located in the self-rescue zone of those TSFs, to implement one of the following measures for such structures: either (i) the structure must be deactivated and decommissioned, (ii) the population must be relocated, with reparations for loss of cultural heritage, or (iii) reinforcement works that guarantee the effective stability of the structure must be carried out, by decision of the public authorities, taking into account the previous nature of the dam in relation to the occupation and technical-financial viability of the alternatives. Even if reinforcement works are completed, deactivation and decommissioning of those TSFs will be required at the end of the life of the mine. All of the TSFs operated by AngloGold Ashanti in Brazil have communities located in self-rescue zones.

AngloGold Ashanti is planning to transition to dry-stacking operations for tailings storage at each location in Brazil in the near term. Capital expenditures required in 2021 to implement this new technology amounted to approximately $140 million. Capital expenditures for this work during the period 2022-2025 are expected to be material but, based on preliminary estimates to date, AngloGold Ashanti anticipates that annual expenditures for each of these years will be significantly less than in 2021 and will decline over time. Neither ANM Resolution No. 13/19 nor Federal Law No. 14.066/20 requires removal of all tailings material in connection with the decommissioning of TSFs (a process known as “decharacterisation” or “descaracterização”).






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At the state level, the state legislator in the state of Minas Gerais adopted Law No. 23.291/19 in February 2019 which contained the state’s policy on TSF safety and should be implemented in conjunction with the equivalent federal policy. Among other things, Law No. 23.291/19 determines the criteria for licensing and inspecting TSF structures, prohibits TSFs constructed or heightened using the upstream method, establishes bond requirements and holds management liable for non-compliance with its provisions. The government of Minas Gerais adopted several decrees in furtherance of this legislation.

On 16 February 2022, the ANM issued Resolution No. 95/22, which was rectified on 18 February 2022 and became effective on 22 February 2022. ANM Resolution No. 95/22 effectively consolidates prior federal resolutions on TSFs, including ANM Resolution No. 13/19 and establishes new criteria for the operational units, namely Tropicanamanagement of TSF structures, changes the criteria related to the risk classification of TSF structures and emergency levels and imposes deadlines for compliance with obligations, in addition to setting new criteria for suspension, embargo and interdiction of TSF activities.

Further amendments to the regulatory requirements in Brazil governing such TSFs and related dams may be adopted in 2022.

AngloGold Ashanti’s rights and permits

At AGA Mineraçao, Cuiabá has a single mining concession (No. 000.323/1973) covering a total area of 3,662 hectares. In February 2022, two additional mining concessions for Cuiabá (Nos. 830.937/1979 and 831.027/1980) were published, which cover an additional area of 816.2 hectares. Lamego has a single mining concession (No. 932.710/2017) covering a total area of 1,622 hectares. Córrego do Sítio is hosted by five geographically contiguous mining concessions (i.e., Nos. 930.556/2000, 930.181/2008, 830.129/1982, 833.472/2003 and 830.943/1979) covering a total area of 6,017 hectares.

At Serra Grande, the company has interests in or agreements over 25,719.94 hectares in the Crixás greenstone belt, representing approximately 87 percent of the relevant tenements that correspond to all current exploration and mining activities. These have been held since 1987. The mining concessions include mining concession No. 002.286/1935 covering an area of 4,206.88 hectares, mining concession No. 960.658/1987 covering an area of 1,946.89 hectares, mining concession No. 860.746/2005 covering an area of 88.28 hectares, mining concession No. 862.103/1994 covering an area of 125.41 hectares and mining concession No. 804.366/1975 covering an area of 196.05 hectares.

All of the company’s mining concessions in Brazil are currently active, in good legal and operational standing, and free of liabilities and/or major obligations. Brazilian mining concessions remain valid up to the depletion of the Mineral Reserve and Mineral Resource pursuant to the Economic Exploitation Plan approved by the ANM and in accordance with the required environmental permits, and as a result do not have an explicit expiry date.


Colombia

General laws relating to mining and land ownership

General regime

The Colombian Constitution declares that the sub-soil and the non-renewable natural resources located within the Colombian territory are the property of the Colombian State. The underlying principle of Colombian mining legislation for the granting of mining concession contracts over free areas is first in time, first in law. Mining activities are regulated by the Colombian Mining Code, Act 685, 2001.

The filing of an exploration and exploitation proposal triggers a right of preference to obtain rights over the targeted area, provided it is available. Such area cannot exceed 10,000 hectares. Upon receipt of a proposal, the relevant government agency determines whether another proposal or contract already governs the area. If there are no pre-existing claims, the government agency grants the applicant a “free area”.

With respect to land ownership, a mining concession in Colombia does not grant the rights over the surface required to develop a mining project. Therefore, in order to develop a mining project, it is required to acquire and secure access to the land (soil). This can be achieved in several ways, such as (i) purchase of the land, (ii) a transit easement, (iii) a mining easement, and (iv) the special acquisition process or expropriation.

Concession contract

As the sub-soil and the non-renewable natural resources located within the Colombian territory are property of the Colombian State, the Colombian Mining Authority (Agencia Nacional de Minería) grants the authorisation to explore and exploit minerals through a concession contract.

Such concessions allow concessionaires to conduct the studies, works and facilities necessary to establish the existence of minerals and to organise their exploitation. Upon being awarded a mining concession, a company must take out an insurance policy to cover the costs associated with potential environmental damage as well as breaches of its mining obligations. It may



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then proceed with exploration activities. Once the exploration phase is complete, the concessionaire files a new plan regarding proposed works and facilities. With the award of the mining concession or tenement contract, there are specified timelines for the completion of the various phases of a mining project, e.g. exploration, construction, exploitation. The company must comply with these timelines unless performance is suspended, for example, due to force majeure or extensions or modifications to the timelines. A grant of force majeure is for one year and must be renewed on an annual basis. If the company does not comply with the specified timelines for the completion of the various phases of a mining project, the mining authority may revoke the company's concession contracts or mining licences. As a general matter, any company that wishes to obtain a renewal of its concession contract must be up to date in all its legal and contractual obligations and must present a new plan of works and facilities to be implemented after the contract is renewed.

PINES programme

In 2013, the national government instituted the PINES programme designed to aid promoting certain projects that are deemed to have a national interest. This designation provides for greater oversight from the national government. All of our three advanced exploration projects (La Colosa, Quebradona and Gramalote) were considered of national strategic interest. Currently, Quebradona and Gramalote remain in the PINES programme, but La Colosa was temporarily removed as such (until the force majeure is over).

Tax laws relating to mining

From the moment the concession contract is registered with the Mining Register, the concessionaire has several financial obligations, including the payment of (i) a surface fee during the exploration, construction and assembly stage and (ii) royalties.

Once exploration is complete and the mining infrastructure in place, the concessionaire must begin paying royalties to the Colombian government, consisting of a percentage of the primary product and sub-products being exploited. The percentage of the royalty depends on the regulation in force when the concession contract is registered. In the case of the Quebradona project, the deposit mainly consists of copper followed by gold and silver. There is a 5 percent royalty for copper on the production value at the mine’s or well’s edge (i.e. when extracted from the subsoil). In case of gold and silver, a royalty of 4 percent on the production valued at the mine’s or well’s edge (i.e. when extracted from the subsoil) was established.

Furthermore, Colombian law establishes that once the environmental licence is granted the concessionaire must invest 1 percent of the project’s value to benefit the basins covered by the environmental licence.

Environmental laws relating to mining

In order to obtain an authorisation to carry out a mining project, a company must prepare an Environmental Impact Study (“EIA”) for approval by the National Environmental Licensing Authority of Colombia (Autoridad Nacional de Licencias Ambientales or “ANLA”). Global environmental licences are granted for the entire life of the project and cover all phases: construction, assembly, operation, maintenance, dismantling, final restoration, abandonment and/or termination. Construction and assembly permits (Plan de Trabajos y Obras or “PTO”) are granted by the mining authority with jurisdiction over the project.

In Colombia, the mining authority has the discretion to declare the underlying concession void if the specific company which holds the concession breaches applicable environmental laws or regulations. If the mining authority were to exercise such discretion, a company whose concession was voided would be required to abandon its projects and all of its other existing mining concession contracts. Pending proposals for new mining concession contracts would also be cancelled and the company would be banned from doing business with the Colombian government for a period of five years. As a result, the company would be unable to conduct any mining exploration or development activities during such period. However, this would not affect other subsidiaries of the company operating in Colombia, if those concession contracts are held singularly or in concert with joint venture partners.

Mining activity is prohibited in national parks, regional parks, protected forest reserves, paramos (included in Act 1753, introduced in 2015) and wetlands, pursuant to the Ramsar Convention on Wetlands of International Importance.Some forest reserves are not “protected” but are set aside for active forestry purposes and the concessionaire must obtain a specific permit to partially and temporarily change the use of the soil before pursuing exploration activities. In addition, Resolution 187/2016, passed by the national government in late 2016, identifies areas that the Ministry of the Environment has determined to be “paramos” areas, or paramos transition areas. In these areas there are limitations on industrial or commercial work being performed, including mining. The regulation also specifies a process to determine what work, if any, can be performed in a paramos-designated area.

AngloGold Ashanti’s rights and permits

The La Colosa project managed by AngloGold Ashanti Colombia S.A.S. (“AGA Colombia”) remains in force majeure due to delays in granting environmental permits by national and local environmental authorities, thereby preventing AGA Colombia from undertaking further exploration activities. The current one-year grant of force majeure, during which time the specified timelines for completing the various phases of the mining project under the concession contract are suspended, will expire on



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22 June 2022. AGA Colombia applied for a mining area integration (consolidation) of its concession contracts related to La Colosa, in respect of which AGA Colombia was not in compliance with some of the specified timelines. The application for mining area integration (consolidation) was approved in March 2017, which remedied the non-compliance of each consolidated concession and reset the specified timelines. La Colosa now has a single integrated mining concession contract (EIG-163) which covers a total area of 9,210 hectares and expires on 28 February 2037.

Minera de Cobre Quebradona S.A.S. B.I.C. (“MCQ”) which manages the Quebradona project, obtained the integration of concession agreement 5881 in October 2016 and registered in December 2016. As a result, MCQ was granted the exclusive right to explore, take ownership and dispose of the mineral reserves (ore) extracted from the concession area. MCQ has the right to request an extension of up to 30 years, at least two years before the expiration of the operating period. This extension is not automatic, and the request must be filed with new technical, economic, environmental and social studies that demonstrate the status of the mineral resources. Concession contract 5881 initially covered a total area of 7,593 hectares, which was reduced to 4,881.89 hectares by the relevant mining authority (Secretaría de Minas de Antioquia) on 4 March 2022. It will expire in May 2037 and is currently in its sixth year of the integrated exploration phase. In September 2021, the permits for the construction and mining operation were approved by the relevant mining authority (Secretaría de Minas de Antioquia). On 4 November 2021, ANLA officially notified AngloGold Ashanti of its decision to ‘archive’ the environmental licence application relating to the Quebradona project. ANLA has neither denied nor granted the licence, but deemed that the information provided by AngloGold Ashanti is not enough for this authority to take a substantive decision. On 18 November 2021, AngloGold Ashanti appealed the archiving decision in order to secure further details on the specific additional information ANLA requires to make a determination.

The Gramalote project is organised as a joint operation between AngloGold Ashanti (through AGA Colombia Holdings Limited and AngloGold Ashanti Holdings plc) and B2Gold (through B2Gold Corp. and Graminvest Ventures Limited). Gramalote Limited, a company incorporated under the laws of British Virgin Islands which is the legal vehicle operating the joint operation, established a Colombian branch, Gramalote Colombia Limited (“GCL”), to carry out activities in Colombia and obtain the mining concession contracts necessary to develop the Gramalote project. The Gramalote joint operation has been operated by B2Gold since January 2020. Pursuant to an integrated mining concession contract No. 14292, GCL was granted the exclusive right to explore, take ownership and dispose of the mineral reserves (ore) extracted from the concession area (which covers a total area of 8,720.71 hectares and includes the Gramalote and Monjas anomalies) until April 2043. GCL has the right to request an extension of the operating period for up to 20 years, and, if exercised, such request to extend must include new technical, economic, environmental and social studies that demonstrate the status of the mineral resources. Currently, concession contract No. 14292 is in the phase of construction and assembly, pending resettlement of communities and the formal start of construction activities. GCL has received an environmental licence granted by ANLA and permits for the construction and mining operation which were approved by the relevant mining authority (Secretaría de Minas de Antioquia). GCL also holds an exploration concession No. 4894 (which covers a total area of 2,279.32 hectares and includes the Trinidad anomaly) which expires in 2044.

United States of America

Nevada

Mineral and surface rights in the United States are owned by private parties, state governments or the federal government. The majority of land utilised for precious metals exploration, development and mining in the western United States is owned by the federal government. The right to mine on such federal land in western states is governed by the U.S. General Mining Law of 1872, as amended (the “General Mining Law”). The General Mining Law allows mining claims (for mining and mining-related activities) on certain federal lands after proper compliance with claim location and maintenance requirements.

Mineral exploration activities in Nevada are also generally subject to applicable federal, state, and local permitting requirements, but the specific regulatory authorisations required for the company’s activities are based on the nature and location of the exploratory work. Many of the company’s Nevada operations are currently conducted under what is generally referred to under federal law as a notice-level operation subject to 43 CFR § 3809.21, while projects that are more advanced require additional permitting, including a Plan of Operations approved by the federal Bureau of Land Management (“BLM”). The State of Nevada Division of Environmental Protection’s Bureau of Mining Regulation and Reclamation (“BMRR”) also regulates mining within the state of Nevada. However, exploration projects of 5 acres or less, the scope of a notice-level operation under federal law, are exempt from BMRR regulation. Certain of the company’s early-stage exploration activities fall within this exemption.

In Nevada, the company’s wholly-owned subsidiaries hold a significant number of unpatented mining claims on federal lands. This includes approximately 1,600 unpatented claims (covering approximately 32,000 acres) that are now controlled by the company as a result of its acquisition of all of the outstanding stock of Corvus Gold Inc., which closed on 18 January 2022. The company is currently engaged in exploration activities on certain of its unpatented claims that include, but are not limited to, geological and spectral mapping, surface geochemical sampling, geophysical surveying and RC and/or diamond drilling. The main projects of the company in Nevada include the Silicon Project, the North Bullfrog Project and the Mother Lode Project.

In 2021, the state of Nevada enacted a new tax on Nevada gold and silver mines (in addition to the existing Nevada net proceeds of minerals tax, which is a 5 percent net tax). The new mining tax is a 0.75 to 1.1 percent excise tax based on a mine’s annual gross revenue.



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Minnesota

In Minnesota, AngloGold Ashanti Minnesota Inc. completed early-stage reconnaissance exploration activities to determine the potential for gold mineralisation in the northern counties of Minnesota. Based on the achieved results, the company terminated its exploration activities in the state. In early 2021, the company completed closing out its activities in Minnesota in accordance with state and company requirements.

Potential regulatory changes

Over the years, the U.S. Congress has considered a number of proposed amendments to the General Mining Law and other federal statutes relating to mining. Among the significant features contained in previously proposed legislation were a production royalty obligation, new and more stringent environmental standards and conditions, additional reclamation requirements, extensive new procedural steps which would likely result in extended permitting timelines and granting counties and other entities the ability to petition the U.S. Secretary of the Interior to make certain areas unavailable for the location of unpatented mining claims. In June 2020, former President Trump signed an executive order directing certain federal agencies to streamline the review processes associated with permitting of infrastructure and natural resources projects. Many of those policies have subsequently been rescinded by the Biden administration. While certain other executive orders may favorably affect the timing of our permit and project approvals, the impact is yet to be determined and remains uncertain.

AGA is currently unaware of any other new federal or state legislative or regulatory changes or rule-making that has been proposed or enacted that would adversely affect its current exploration programmes. If any requirements, standards or conditions were adopted in the future that imposed additional or new obligations or costs on AGA in connection with our exploration or extraction activities in the United States, the company’s operations in Nevada could be adversely affected.


MINE SITE REHABILITATION AND CLOSURE

Closure, an integral part of operations

All mining operations eventually cease. An integral aspect of operating AngloGold Ashanti’s mines is ongoing planning for and, where feasible, implementation of concurrent rehabilitation, together with an estimate of associated liability costs and the placement of adequate financial provisions and assurances to cover these costs.

All of AngloGold Ashanti’s operations are required to comply with its group closure planning standard, as well as applicable law and regulations, as their closure plans are reviewed and updated.
Closure planning is an activity that starts at the exploration and mine design stage and continues throughout the life of mine:
•New projects include a conceptual closure plan which anticipates future closure and associated rehabilitation activities and related costs.
•The closure plan is reviewed annually and updated every three years (annually in the final three years of a mine’s life) or whenever significant changes are made, taking into account operational conditions, planning and regulatory requirements, advances in international good practice (e.g., ICMM Mine Closure: Good Practice Guide) and technological developments.

For many of the older mines, closure planning and the evaluation of environmental liabilities is a complex process. This is particularly so in Brazil and Ghana, where many of the mining and other operations have taken place for more than fifty years. A particular challenge is concurrent rehabilitation, which is carried out while a mine is still operational. This practice serves to decrease the ultimate liability and reduces the final rehabilitation and closure work that must be undertaken, but has the potential to sterilise Mineral Reserve, which the company might wish to exploit should conditions, such as the gold price, change.

The company’s group closure standard stipulates that closure planning must be undertaken in consultation with the stakeholders. In the course of these consultations, different issues are raised which require site-specific solutions. Livelihood preservation and infrastructure are often key requirements. Communities also require information on the company’s rehabilitation of the landscape and on any lasting environmental impacts. Long-term remediation obligations, including decommissioning and restoration liabilities relating to past operations, are based on environmental management plans and compliance with current environmental and regulatory requirements.

Provisions for decommissioning and rehabilitation costs are made when there is a present obligation, it is probable that expenditure on decommissioning and rehabilitation work will be required and the cost can be estimated within a reasonable range of possible outcomes. These costs are based on currently available facts, technology expected to be available at the time of the rehabilitation, laws and regulations presently or virtually certain to be enacted and previous experience in the rehabilitation of mine sites.

Decommissioning costs and restoration costs are provided at the present value of the expenditures expected to settle the obligation, using estimated cash flows based on current prices. Estimates are discounted at a pre-tax rate that reflects current market assessments of the time value of money.




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Provisions for decommissioning and for restoration (excluding joint ventures and discontinued operations) increased from $674 million in 2020 to $688 million in 2021. This increase mainly relates to changes in discount rates based on global economic assumptions. The provisions were also impacted by changes in mine plans, resulting in a change in cash flows.


SUSTAINABILITY AND ENVIRONMENTAL, SOCIAL AND GOVERNANCE (“ESG”) MATTERS

AngloGold Ashanti’s sustainability approach is fundamental to how the company operates its business, as well as its ability to create long-term value for its shareholders, employees and social partners through safely and responsibly exploring, mining and marketing its products. Sustainability and safety are integrated into the company’s business and operations at all levels through various frameworks, standards and policies, and the company measures its performance in achieving its goals against its sustainability and other ESG metrics, as well as its engagement with stakeholders.

In mitigating the risks and impacts that are an inherent part of its business, AngloGold Ashanti is informed by an annual assessment of its key ESG issues. This process is aligned with guidance published by the International Integrated Reporting Council (“IIRC”), the Sustainability Accounting Standards Board (“SASB”), the Global Reporting Initiative (“GRI”) Standards and the Accountability AA1000 Stakeholder Management Standard. This assessment is annually reviewed by AngloGold Ashanti’s senior leadership and approved by the Social, Ethics and Sustainability Committee (the “SES Committee”).

AngloGold Ashanti’s board of directors, assisted by the SES Committee, has ultimate responsibility over environmental, safety, health and ethical matters and for the integration of sustainability objectives into AngloGold Ashanti’s business. This includes oversight of the company’s stakeholder engagement framework and structures, which apply to investors, employees, governments, suppliers and communities, at every stage of its business from exploration to mine closure. Group Corporate Affairs and Sustainability is responsible for development of management systems and supports the company’s general managers in the day-to-day implementation of its sustainability strategy.

AngloGold Ashanti maintains a set of policies and procedures to guide the company in acting as a responsible corporate citizen, including the Code of Business Principles and Ethics which sets requirements for the implementation of key corporate policies and guidelines and applies to all management and employees, and to maintain compliance with applicable environmental, health and safety (“EHS”) laws. In 2021, AngloGold Ashanti continued with the implementation of the Integrated Sustainability Information Management System (“iSIMS”), in order to improve internal reporting and better integrate and monitor sustainability activities with respect to its broader business. This common reporting system for all sustainability disciplines, from safety, health and security to community and environmental management, is expected to help provide timely information in each of these areas, and to facilitate transparency and decision-making in its processes and practices.

Significant EHS requirements and ESG risks and trends affecting the company’s mining and processing operations are described below.

EHS Regulatory Compliance

AngloGold Ashanti is subject to extensive EHS laws and regulations in the various jurisdictions in which the company operates. These requirements govern, among other things, extraction, use, conservation and discharge of water; air emissions (including dust control and greenhouse gases (“GHGs”)); regulatory and community reporting; clean-up of contamination; land use and conservation of protected areas; rehabilitation and closure of mined land; worker health and safety and community health; and the generation, transportation, storage and disposal of solid and hazardous wastes, such as reagents, radioactive materials, and mine tailings. Environmental laws and regulations applicable to the company’s operations, including the requirements contained in environmental permits, are generally becoming more restrictive.

Capital and operating costs to comply with EHS laws and regulations have been, and are expected to continue to be, significant to AngloGold Ashanti. In addition, AngloGold Ashanti could incur fines, penalties and other sanctions, environmental clean-up costs, and third-party claims for personal injury or property or natural resources damages; suffer reputational damage; and be required to install costly pollution control equipment or to modify or suspend operations, as a result of actual or alleged violations of, or liabilities under, EHS laws and regulations. Failure to comply with applicable EHS laws and regulations may also result in the suspension or revocation of permits and, in some jurisdictions, the right to mine a given concession. AngloGold Ashanti’s ability to obtain and maintain permits and other approvals and to successfully operate near host communities may be adversely impacted by real or perceived effects on the environment or human health and safety associated with AngloGold Ashanti’s or other mining companies’ activities. In addition, unknown environmental hazards may exist at the company’s properties which may have been caused by previous owners or operators.

Water Management

AngloGold Ashanti’s operations are heavily dependent upon access to substantial volumes of water for use in the mining and extractive processes and typically are subject to water-use permits or rights to extract water from certain natural sources that govern usage and require, among other things, that mining operations maintain certain water quality upon discharge. Water supply, quality and usage are areas of concern across all of the company’s operations, including with respect to the company’s



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mining operations in Ghana and Brazil, as well as its mine development project at Quebradona in Colombia, where there is significant potential environmental and social impact and a high level of stakeholder scrutiny. Any failure by the company to secure access to suitable water supplies, or achieve and maintain compliance with applicable requirements of the permits or licences, could result in curtailment or halting of production at the affected operations. Incidents of water pollution or shortage can, in certain cases, lead to community protest and ultimately to the withdrawal of community and government support for AngloGold Ashanti’s operations. A failure by the company to comply with water contamination related directives may result in further, more stringent, directives being issued against the company, which may, in some cases, result in a temporary or partial shutdown of some of the company’s operations.

Where feasible, the company operates a “closed loop” system which recycles the water used in its operations without discharging it to the environment. In some areas, however, such as Ghana and Brazil, high levels of rainfall and surface water runoff mean that a closed loop system is not feasible and that discharges, after water treatment where necessary, must take place.

Waste Management

During open-pit mining, large volumes of soil and/or rock (overburden) are mined to expose the ore body. Similarly, waste rock is mined during drilling and developing access to underground ore bodies. Overburden and waste rock typically contain sub-economic levels of gold and are deposited as large waste rock facilities. Mine tailings are the process waste generated once grinding and extraction of gold from the ore is completed in the milling process and are typically deposited as slurry in large tailing storage facilities (“TSFs”) specifically designed for this purpose.

The impact of dust generation, breach, leak, or other failure of a waste rock facility or TSF, including any associated dam, can be significant, and the company therefore monitors such facilities closely in accordance with the company’s internal standards, independent review, national regulatory requirements, industry standards and commitments made to local communities. The occasional well-publicised failure of a third-party TSF and the potential impact of such failure also mean that these facilities are generally tightly regulated. An incident at the company’s operations could result, among other things, in enforcement, obligations to remediate environmental contamination, negative press coverage, and claims for property or natural resources damages and personal injury by adjacent communities. Incidents at other mining companies’ operations could result in governmental action to tighten regulatory requirements and restrict certain mining activities, in particular with respect to TSFs, also in respect of other mine operators in that region.

For example, following the catastrophic failure of a TSF at the Córrego do Feijão iron ore mine owned by Vale at Brumadinho in the state of Minas Gerais in Brazil in January 2019, tailings were discharged into the mine’s administrative area and part of the local community, reportedly resulting in death or injury to hundreds of people. As a result of this incident, there has been considerably increased regulatory scrutiny in Brazil and other areas on mining operations generally, and the requirements applicable to the approval, licensing, construction, management, closure and decommissioning of TSFs have generally become far more stringent. For further information on the regulatory framework governing TSFs in Brazil, see “Item 4B: Business Overview—The Regulatory Environment Enabling AngloGold Ashanti to Mine—Americas—Brazil”.

In addition, a new Global Industry Standard on Tailings Management (“GISTM”) was established in August 2020 by a panel comprised of industry and non-governmental organisation (“NGO”) experts, the compliance costs of which are not expected to be material to AngloGold Ashanti. AngloGold Ashanti has committed to comply with the GISTM at all of its TSFs by August 2025.

Groundwater Impacts and Environmental Remediation

As AngloGold Ashanti or its predecessors have a long history of mining operations in certain regions, issues may arise regarding historical, as well as potential future, environmental or health impacts in those areas, for which AGA, as the current owner/operator, may be legally responsible. For example, AngloGold Ashanti has identified groundwater contamination plumes at certain of its operations. Numerous scientific, technical and legal studies have been undertaken to assist in determining the magnitude of the impact and to find sustainable remediation solutions. Based on those studies as well as discussion with regulators, the company has taken steps, including monitored natural attenuation and phyto-technologies, to address soil and groundwater contamination.

Subject to the completion of site-specific trials and potential technologies being confirmed as viable remediation techniques, no reliable estimate can be made at this time for the obligation. Should these obligations be significant, this could have a material adverse impact upon AngloGold Ashanti’s results and its financial condition.

Climate Change and GHG Regulation

At AngloGold Ashanti, climate change is a board of directors-level governance issue, overseen by the SES Committee and the Audit and Risk Committee. The Climate Change Working Group, established in 2020 and comprised of functional leaders from across the business, reports to the SES Committee. AngloGold Ashanti’s Climate Change Strategy, which was approved by the board of directors in November 2021, seeks to embed the management of physical, regulatory and transition climate change-related risks, as well as climate change-related opportunities, into the company’s strategic and operational planning processes.



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In 2021, AngloGold Ashanti committed to the International Council on Mining & Metals (“ICMM”) target of achieving net zero Scope 1 and Scope 2 GHG emissions by 2050, and, in partnership with value chain partners, to set Scope 3 GHG reduction targets, if not by the end of 2023, as soon as possible thereafter.

In December 2015, certain members of the international community negotiated a treaty at the Conference of the Parties of the UN Framework Convention on Climate Change in Paris (the “Paris Agreement”). The Paris Agreement, which came into force on 4 November 2016, requires developed countries to set targets for emissions reductions. As a result, measures designed to limit or reduce GHG emissions, both mandatory and voluntary, have been, and are expected to be, implemented at national or regional levels in various countries.

New regulatory requirements, or changes required to effectively transition to a low-carbon economy, could require AngloGold Ashanti to reduce its direct GHG emissions or energy use, change its fuel mix or incur significant costs for GHG emissions permits or taxes, including for those costs or taxes passed on by electricity utilities which supply the company’s operations. AngloGold Ashanti could also incur significant costs associated with capital equipment, GHG monitoring and reporting and other obligations to comply with applicable requirements. The most likely source of these obligations is through state-level implementation of new emissions or financial obligations pursuant to evolving climate change regulatory regimes.

For example, in 2010, Brazil launched the National Climate Change Policy, which established a voluntary national GHG reduction target of 36.1 percent to 38.9 percent below the projected emissions in 2020 for “business as usual”. The policy required the development of sector-specific plans in order to meet the target and provided for a Brazilian GHG trading scheme, which is yet to be designed. While Brazil is not yet requiring mandatory GHG emissions reporting at the national level, some state environmental agencies have requested companies to voluntarily submit GHG emissions management plans. However, the states of Goiás and Minas Gerais (in which AngloGold Ashanti operates) do not currently require GHG emissions management plans for mining projects. In 2015, Brazil announced, in connection with its commitments under the Paris Agreement, economy-wide absolute mitigation targets providing for a 37 percent reduction in GHG emissions by 2025, as compared to 2005, and a goal to reduction emissions by 43 percent by 2030 compared to 2005 levels.

In addition, in Australia, the Safeguard Mechanism (Rule 2015), through the National Greenhouse and Energy Reporting (“NGER”) scheme, provides a framework for Australia’s largest emitters to measure, report and manage their emissions. The Safeguard Mechanism applies to facilities with Scope 1 covered emissions of more than 100,000 tonnes of CO2e per fiscal year. During the 2018/19 fiscal year, Tropicana’s emissions were within its authorised threshold and Sunrise Dam. TheyDam was required to purchase offsets for emissions that were 0.8 percent above its safeguard threshold, the cost of which was immaterial. Two amendments to the Safeguard Mechanism (Rule 2015) enacted in March 2019 and May 2020 allowed for the application of transitional calculated baselines using estimated CO2-e emissions intensities. Based on the production and emissions forecasts, the Australian mining operations applied to use transitional calculated baselines in 2020 for Sunrise Dam and Tropicana, which were approved by the Clean Energy Regulator effective 1 July 2019 to 30 June 2022 for both operations. Thereafter, there is a requirement to apply for production-adjusted baselines. Accordingly, assuming the company’s operations (and resultant emissions) are bothconsistent with the forecasts in the current business plan, the Australian mining operations should not be required to purchase emissions offsets for the business to cover the period prior to June 2022. In any event, the cost of such offsets, if ultimately required to be purchased, including due to a change in the operations under the business plan prior to June 2022, are not anticipated to be material to the company’s business.

In addition to more stringent requirements and commitments, AngloGold Ashanti’s operations are subject to a number of physical risks from climate change, such as changes in rainfall rates or patterns resulting in floods or droughts, reduced water availability, higher temperatures and extreme weather events. Such events or conditions, particularly including flooding or inadequate water supplies, could disrupt mining and transport operations, mineral processing and rehabilitation efforts, create resource or energy shortages or damage the company’s property or equipment and increase health and safety risks on site. In consultation with external consultants, physical climate risk assessments were undertaken for all operations using current climate models for the business and various decarbonisation scenarios and climate adaptation plans were outlined. These adaptation plans continued to be further refined in 2021.

Occupational Safety and Health

AngloGold Ashanti is subject to a variety of laws and regulations in each of the jurisdictions where the company operates that are designed to protect and improve the safety and health of employees. In some of the jurisdictions in which AngloGold Ashanti operates, the government enforces compulsory shutdowns of operations to enable investigations into the cause of accidents at those operations.

Safety remains a priority for AngloGold Ashanti and a focus of AngloGold Ashanti’s long-term sustainability approach, as well as the company’s continuing efforts to manage the risks inherent to its operations, to model critical controls and to strengthen safety protocols and preventative measures. Although AngloGold Ashanti has made significant strides in improving safety in recent years, sadly, the company lost two colleagues during 2021, and some of its operations recorded a year-on-year regression in the all injury frequency rate.




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AngloGold Ashanti’s Group Safety Strategy, which was revised in 2021 and is expected to be implemented by 2024, seeks to integrate operational risk management and key performance indicators at all levels of the organisation and maintain alignment with global safety standards. The SES Committee oversees the implementation of the Group Safety Strategy. All operations, other than Obuasi, have been certified to ISO 45001:2018, which has replaced the OHSAS 18001:2007 series. Obuasi is scheduled to be certified in 2022.

Community Health and Tropical Diseases

AngloGold Ashanti is also subject to health and safety regulations relating to occupational disease. The primary areas of focus in respect of occupational health of employees within the company’s operations are noise-induced hearing loss (“NIHL”) and occupational lung diseases (“OLD”). OLD includes occupational tuberculosis and silicosis in individuals exposed to silica dust. Silicosis has been particularly prevalent in South Africa and has also arisen at the company’s Africa and Brazilian operations, albeit to a far lesser extent. AngloGold Ashanti provides occupational health services to its employees at its occupational health centres, clinics, and through outsourced service centres. The company continues to improve preventative occupational hygiene initiatives, such as implementing various control measures to prevent hazardous exposures, and providing employees with Personal Protective Equipment.

In 2019, the Johannesburg High Court approved the settlement of existing silicosis and tuberculosis class actions against AngloGold Ashanti and other gold mining companies in South Africa. The recent sale of the company’s South African operating assets and liabilities did not include the silicosis or tuberculosis settlement obligations relating to South African employees, which were retained by AngloGold Ashanti. For further information, see “Item 18: Financial Statements—Note 1.2—Accounting Policies—Significant Accounting Judgements and Estimates—Provision for silicosis”.

In addition to OLD, HIV and AIDS and associated diseases remain major health care challenges faced by AngloGold Ashanti’s Africa region operations. AngloGold Ashanti continues to implement programmes to help those infected with HIV and prevent new infections from spreading.

Malaria and other tropical diseases also pose health risks at all of the company’s operations in Central, West and East Africa where such diseases may assume epidemic proportions because of ineffective national control programmes. Malaria is a major cause of death in young children and pregnant women and also gives rise to deaths and absenteeism in adults. All affected company operations have malaria control programmes in place. The Ghana Obuasi malaria control programme continues to roll-out indoor residual spraying programme in 16 districts of Ghana in partnership with the Global Fund and the Ghana Department of Health.

In 2021, the COVID-19 pandemic continued to put strain on businesses and socio-economic systems across the globe, including as new variants of concern emerged and drove considerable resurgences in cases throughout the year. AngloGold Ashanti continued to direct significant resources to pandemic controls within the company as it worked to limit the spread of the virus whilst keeping operations running. The pressure on labour supply, travel restrictions limiting employee mobility and the mental health implications of the ongoing pandemic all also have potential implications for safety training and safe operations. This required AngloGold Ashanti, as well as other businesses, to take extraordinary measures to protect the health and well-being of its employees, to maintain its operations and to contribute to global control efforts. The availability of safe and effective vaccines, albeit at varying scales in the company’s operating countries, provided an additional layer of protection, especially against severe forms of disease, hospitalisation and death. The company endeavoured to provide prompt access to approved and available vaccines for all workers, especially employees considered to be at high risk as well as employees with critical skills. Given the interdependence of employee and community health, the company’s focus remained on implementing measures supporting the health of its employees and local communities.

The emergence of COVID-19 however also assisted to better integrate broad health risk management beyond occupational health into the overall business strategy, to contribute to productivity as well as the social licence to operate and to improve various prevention and risk management protocols in place to address the potential risk of an epidemic or pandemic after its experience with Ebola in Guinea in 2014 and 2015.

This pandemic also highlighted other associated risks and emphasised the importance of optimising mental health, minimising non-communicable diseases associated with lifestyle as well as the need for systematic contribution to health system strengthening, local skill development and overall community development in the jurisdictions in which the company operates. Such risks impair the health of workers and negatively affect productivity and profitability as a result of workers’ diminished focus or skill, absenteeism, treatment costs and allocated resources. As part of AngloGold Ashanti’s continuing efforts, the company recently adopted a set of updated health standards based on identified major health hazards or risks which include gender, cultural and other applicable diversity considerations for risk management and controls.

Diversity and Inclusion (“D&I”)

With more than 30,000 employees (including contractor employees) on four continents, AngloGold Ashanti believes that having a diverse and inclusive workforce is important to continuing to attract talent in order to maintain competitiveness and the long-term



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sustainability of its business. In addition, the company strives to have a workforce that represents the societies in which AngloGold Ashanti operates in connection with maintaining its social licence to operate.

AngloGold Ashanti’s D&I approach is aligned to the United Nation Sustainable Development Goals (“UNSDGs”) (SDG 5, 8 and 10) and the United Nations Global Compact (“UNGC”). The company has developed a Diversity & Inclusion Framework, which aims to foster the empowerment of all staff, irrespective of race, gender, ethnicity, religion and sexual orientation and has established specific priorities and actions for the next two to five years to foster the inclusion of D&I objectives in its processes. Leadership teams are responsible for meeting defined diversity targets. In 2021, regional assessments were conducted to better understand the specific issues associated with increased D&I at mine sites.

Human Rights and Indigenous Peoples

In its commitment to respecting and promoting human rights, AngloGold Ashanti supports the United Nations Guiding Principles for Business and Human Rights (“UNGP”) and other international initiatives, including the UNGC and the Voluntary Principles on Security and Human Rights (“VPSHR”). The VPSHR, which seeks to balance safety and security needs against respect for human rights and fundamental freedoms, were developed through multi-stakeholder participation between governments, extractive industry members and NGOs. Community and security related matters, including with respect to illegal and artisanal and small-scale mining and related intrusions into the company’s operational areas, are addressed at board of directors-level by the SES Committee. AngloGold Ashanti’s internal Human Rights Framework includes numerous policies, management standards and guidance documents which apply to all of its employees, contractors and suppliers and require reporting of, and redress for, human rights violations and related allegations.

The company is aligned with the ICMM Position Statement on Indigenous Peoples and the International Finance Corporation’s Performance Standard 7 on Indigenous Peoples and other international standards and treaties in the area of Indigenous Peoples’ rights.







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ANGLOGOLD ASHANTI GLOBAL OPERATIONS: 2021

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Operations, projects and exploration programmes
AMERICASAFRICA REGIONAUSTRALIA
1 Argentina5 Guinea9 Australia
Cerro Vanguardia (92.5%)Siguiri (85%)Sunrise Dam
2 Brazil6 GhanaButcher Well (70%)
Serra GrandeIduapriemTropicana (70%)
AGA Mineração
Obuasi(3)
3 Colombia7 Democratic Republic of the Congo (DRC)
Gramalote (50%)(1)
Kibali (45%)(4)
La Colosa8 Tanzania
QuebradonaGeita
4USA
Silicon(2)

Percentages indicate the ownership interest of AngloGold Ashanti. All operations are 100%-owned unless otherwise indicated.
(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).




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OPERATING PERFORMANCE

Group description

AngloGold Ashanti, an independent, global gold mining company with a diverse, high-quality portfolio of operations, projects and exploration activities and is headquartered in Johannesburg, South Africa.

In 2021, our portfolio of ten operations in eight countries, includes long-life operating assets with differing ore body types located in Westernkey gold-producing regions around the world. These operating assets were supported by three greenfields projects in Colombia and a focused global exploration programme, including exploration in the United States.

Our operations and projects are grouped into the following regions: Africa, Americas and Australia.


AustraliaOn 12 February 2020, the Company announced that it had reached an agreement with Harmony to sell all its remaining South African producing assets and related liabilities. The sale closed on 30 September 2020. On 10 November 2020, the Company announced that it had completed the sale of its interest in the Morila mine in Mali and on 30 December 2020, the Company announced that it had completed the sale of its interest in the Sadiola Mine in Mali.

AngloGold Ashanti’s operations and joint arrangements employed, on average, 30,561 people (including contractors) in 2021 (2020: 36,952).

Performance

In 2021, AngloGold Ashanti produced attributable 2.472 million ounces (Moz) of gold (2020: 2.806Moz, excluding the 241,000oz produced by former South African operations), as well as 3.5Moz of silver and 173 tonnes of sulphuric acid as by-products.

Production of 2.472Moz of gold was achieved at a cost of sales of $2.9 billion and an all-in sustaining cost of $1,441/oz for subsidiaries and $856/oz for equity accounted joint venture operations compared to a production of 2.806Moz in 2020 at a cost of sales of $2.7 billion and all-in sustaining cost of $1,072/oz for subsidiaries and $810/oz for equity accounted joint venture operations.

Gold
The AngloGold Ashanti Mineral Reserve reduced from 29.5Moz in December 2020 to 28.1Moz in December 2021. This annual net decrease of 1.4Moz (5%) includes depletion of 2.6Moz and reductions due to other factors of 2.9Moz. The Mineral Reserve was estimated using a gold price of $1,200/oz, unless otherwise stated (2020: $1,200/oz). Table 2ato Paragraph (b) prepared in accordance with Regulation S-K 1300 (§ 229.1303 (Item 1303)). See "Item 4D Property, Plants and Equipment - Mineral Resource and Mineral Reserve Summary Disclosure".

Copper
The AngloGold Ashanti Mineral Reserve increased from 1.41Mt (3,105Mlb) in December 2020 to 1.47Mt (3,250Mlb) in December 2021. This gross annual increase of metallurgical0.07Mt (145Mlb or 5%) is due to methodology changes. The Mineral Reserve was estimated at a copper price of $2.90/lb (2020: $2.65/lb). Table 2b to Paragraph (b) prepared in accordance with Regulation S-K 1300 (§ 229.1303 (Item 1303)). See "Item 4D Property, Plants and Equipment - Mineral Resource and Mineral Reserve Summary Disclosure".

Capital expenditure, including equity accounted joint ventures, in 2021 amounted to $1,100 million (2020: $757 million).

Safety

There were regrettably two fatalities across the group’s operations in 2021. The all injury frequency rate was 2.13 per million hours worked compared to 1.68 in 2020 (excluding the former South African assets).




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AFRICA REGION
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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).
Attributable gold production
(000oz)		Average number of  
employees  
Subsidiary operations
Ghana
Iduapriem202 1,639 
Obuasi108 3,914 
Guinea
Attr. Siguiri 85%258 3,369 
Tanzania
Geita486 5,884 
Joint venture operations
Democratic Republic of the Congo
Attr. Kibali 45%365 2,454 



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Africa Region - Key Statistics
Unit202120202019
Subsidiary operations
Tonnes treated/milledMt21.2 20.5 19.1 
Pay limitoz/t0.035 0.034 0.039 
g/t1.193 1.160 1.330 
Recovered gradeoz/t0.045 0.052 0.060 
g/t1.54 1.77 1.77 
Gold production (a) (attributable)
000oz1,054 1,143 1,094 
Cost of sales$m1,300 1,232 1,173 
Total cash costs (1)
$/oz991 797 801 
All-in sustaining costs (1)
$/oz1,264 975 947 
Capital expenditure$m434 345 359 
Safety
Number of fatalities120
AIFRPer million hours worked0.61 0.55 0.62 
People
Average no of employees: Total14,806 14,496 12,847 
Permanent employees5,619 5,433 4,940 
Contractors9,187 9,063 7,907 

(a) Includes Obuasi gold production in 2020, capitalised as part of the project development.

Unit202120202019
Joint venture operations
Tonnes treated/milledMt3.5 3.4 7.5 
Pay limitoz/t0.048 0.048 0.037 
g/t1.652 1.640 1.255 
Recovered gradeoz/t0.095 0.096 0.060 
g/t3.25 3.29 1.85 
Gold production (attributable)000oz365 364 445 
Cost of sales$m350 340 428 
Total cash costs (1)
$/oz647 629 657 
All-in sustaining costs (1)
$/oz856 810 767 
Capital expenditure$m72 52 51 
Safety
Number of fatalities(2)
n/an/a0
AIFR (2)
Per million hours workedn/an/a0.65 
People
Average no of employees: Total2,454 2,333 2,939 
Permanent employees860 824 1,191 
Contractors1,594 1,509 1,748 

(1)Total cash costs and all-in sustaining costs are non-GAAP measures. For further information on these non-GAAP measures, see “Item 5A: Operating Results-Non-GAAP analysis”.
(2)Excludes Kibali which is managed by Barrick and not AngloGold Ashanti. For years prior to 2020, amounts are inclusive of amounts pertaining to Sadiola, which was sold in 2020.




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Performance summary

Production for the year was 1.4Moz (2020: 1.6Moz), as the region executes the reinvestment programme and various growth projects.

Higher all-in sustaining cost of was achieved 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).(1)
(1) Includes joint ventures

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.

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 Mineral 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 Mineral 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. Major infrastructure works are required to support the ramp-up to 5,000tpd. 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.



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THE AMERICAS
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The Americas hosts three of our operations – one in Argentina and two in Brazil – as well as two greenfields projects in Colombia and a significant new greenfields development in Nevada in the United States.
Attributable gold production
(000oz)		Average number of  
employees  
Operations
  1.     Argentina
Cerro Vanguardia (Attr. 92.5%)145 1,850 
  2.    Brazil
AGA Mineração331 6,142 
Serra Grande83 1,980 




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Americas - Key Statistics
Unit202120202019
Operation
Tonnes treated/milledMt7.8 7.5 7.3 
Pay limitoz/t0.10 0.07 0.11 
g/t3.49 2.46 3.79 
Recovered gradeoz/t0.066 0.081 0.089 
g/t2.27 2.77 3.04 
Gold production (Attributable)000oz559 649 710 
Silver (attributable)Moz3.2 3.3 3.4 
Cost of sales$m822 764 822 
Total cash costs (1)
$/oz921 721 736 
All-in sustaining costs (1)
$/oz1,587 1,003 1,032 
Capital expenditure (2)
$m398 217 195 
Safety
Number of fatalities100
AIFRPer million hours worked3.55 3.68 3.50 
People
Average no of employees: Total9,972 8,789 8,114 
Permanent employees6,452 6,158 5,869 
Contractors3,520 2,631 2,245 

(1)Total cash costs and all-in sustaining costs are non-GAAP measures. For further information on these non-GAAP measures, see “Item 5A: Operating Results-Non-GAAP analysis”.
(2)100 percent, (not attributable) and includes Colombia.

Performance summary

Production for the year was 559,000oz (2020: 649,000oz), achieved at a total cash cost of $921/oz (2020: $721/oz).

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 18% 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 license 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 license submission that would meet the agency’s requirements.




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A thorough review and analysis of the items and further information identified as part of ANLA’s archiving decision is being undertaken, with the aim of preparing and submitting a new environmental licence request for Quebradona in due course. This process 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.

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.








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AUSTRALIA
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Attributable gold production
(000oz)		Average number of  
employees  
Operations
Australia
1.   Sunrise Dam229 679 
2.   Tropicana 70%265 653 
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%).




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Australia - Key Statistics
Unit202120202019
Operation
Tonnes treated/milledMt10.5 10.2 10.1 
Pay limitoz/t0.06 0.06 0.06 
g/t1.89 1.95 1.95 
Recovered gradeoz/t0.047 0.054 0.060 
g/t1.47 1.68 1.87 
Gold production (attributable)000oz494 554 614 
Cost of sales$m740 705 632 
  Total cash costs (1)
$/oz1,196 968 730 
  All-in sustaining costs (1)
$/oz1,500 1,225 990 
Capital expenditure$m185 143 149 
Safety
Number of fatalities000
AIFRPer million hours worked6.59 3.74 7.33 
People
Average no of employees: Total1,332 1,230 1,140 
Permanent employees288 259 249 
Contractors 1,044 971 891 

(1)Total cash costs and all-in sustaining costs are non-GAAP measures. For further information on these non-GAAP measures, see “Item 5A: Operating Results-Non-GAAP analysis”.

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).

Capital expenditure of $185m (2020: $143m).

Safety performance regressed, from an AIFR of 3.74 per million hours worked in 2020, to 6.59. There was no change to the severity of incidents, but the number of incidents increased, attributed to a range of COVID-related factors, including high employee turnover 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.

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.




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SOUTH AFRICA

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The sale of the South African assets to Harmony closed on 30 September 2020. As a result, the figures in this section relate
to the nine months ended on 30 September 2020, unless the context indicates otherwise.

South Africa Key Statistics
Unit202120202019
Operation
Tonnes treated/milledMt0.4 35.1 
  Pay limit (1)
oz/t0.40 0.33 
g/t14.60 11.90 
  Recovered grade (1)
oz/t0.120 0.183 
g/t3.75 5.69 
Gold production000oz241 419 
Cost of sales$m287 479 
  Total cash costs (2)
$/oz1,149 981 
  All-in sustaining costs (2)
$/oz1,296 1,132 
Capital expenditure$m35 57 
Safety
Number of fatalities40
AIFRPer million hours worked6.12 10.00 
People
Average no of employees: Total— 8,297 7,870 
Permanent employees— 7,012 6,682 
Contractors — 1,285 1,188 
(1)Refers to underground operations only.
(2)Total cash costs and all-in sustaining costs are non-GAAP measures. For further information on these non-GAAP measures, see “Item 5A: Operating Results-Non-GAAP analysis”.



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EXPLORATION REVIEW

Our exploration programmes enable us to ultimately expand our Mineral 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) - to ensure that our exploration activities are focused on maximising value for the business and established a system that goes beyond SAMREC (The South African Code for the Reporting of Exploration Results, Mineral Resources and Mineral Reserves) limitations and allows 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 the capture of geological understanding from the earliest stage of development. In addition to integrating our E4V process with our LOM planning, we have also integrated with our project process and 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 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.

Greenfields exploration

Our greenfields exploration programmes are designed to discover Mineral Resources that will ultimately lead to the development of new gold mines. In 2021, $31.2m was spent on Greenfields 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 Greenfields 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 120.44m tonnes 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 Q4 with systematic talus fines (890 samples) and ridge and spur sampling (225 samples) undertaken at the El Cori project.

Brownfields exploration

During 2021, Brownfields exploration activities were undertaken across the globe. We completed 1,059km of drilling with a total expenditure of $84.6m (capital) and $69.2m (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 $37.0m.

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. While the assay results from the sterilisation drilling for a proposed waste dump site returned no significant intersections. While at Xanadu, drilling is in progress and the results, so far, do not show 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.

Guinea: Capitalised and expensed drilling programmes completed a total of 34,336m during the year at a total cost of $7.2m. The 2021 drilling was impacted by contractor changes and significant delay in mobilising three of the contractor’s new rigs.




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Ghana: At Iduapriem, drilling totaled 43,293m at a cost of $5.8m.

Exploration activities during 2021, focused on Mineral Resource conversion drilling at Block 1 Central, Block 3, Block 5 and its Extension, Ajopa South, Ajopa Cut 3, Block 7 and 8 and Badukrom. Regional auger drilling, mapping and geochemical sampling were undertaken at Mile 8 and Ajopa Southwest, respectively. Follow-up work, inclusive of air core drilling, has been planned for 2022.

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 $5.3m.

Tete Bakangwe was delivered as an opportunity, and post Mineral Resource conversion drilling it has been added to the mine plan for next year.

First phase drilling results testing down plunge continuity of high grade at Kalimva support an underground project. While 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 $6.9m. Exploration was focused on creating new Mineral Resource which could be converted to Mineral Reserve to extend the current life of mine.

In Brazil, at Cuiabá and Lamego a total 151,042m were drilled at a cost of $13.8m.

In Colombia, at Quebradona, work was completed on drillhole 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.

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 have 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.

In Colombia, our proposed Quebradona gold and copper project may take longer to develop than previously anticipated following a decision by Colombian environment agency, ANLA, to archive our environmental licence application. There has also been a request for additional water studies. 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. We will provide an update on the timeframe when there is more clarity.

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.




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4C.    ORGANISATIONAL STRUCTURE

GROUP STRUCTURE

AngloGold Ashanti’s operations are divided into the following regions:

•Africa – operations in Ghana, Guinea and Tanzania and joint venture operations in the DRC;
•Australia – operations in Australia; and
•Americas – operations in Argentina and Brazil, and exploration projects in Colombia and the United States.

The above regions correspond to AngloGold Ashanti’s business segments. The South Africa region is recognised for financial statement purposes as discontinued operations as we sold our remaining South African producing assets and related liabilities in 2020.

Day-to-day management of the group is entrusted to AngloGold Ashanti’s executive management team, chaired by the Chief Executive Officer. See “Item 6: Directors, Senior Management and Employees”.

Support is provided to the executive management team in managing AngloGold Ashanti’s corporate activities at both the central and local levels.

SUBSIDIARIES

AngloGold Ashanti Limited has investments in principal subsidiaries and joint venture interests, see “Item 19: Exhibits to Form 20-F—Exhibit 19.8 List of AngloGold Ashanti Limited subsidiaries” for details.



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4D.    PROPERTY, PLANTS AND EQUIPMENT

MINERAL RESOURCE AND MINERAL RESERVE SUMMARY DISCLOSURE

On 31 October 2018, the United States Securities and Exchange Commission (“SEC”) adopted Subpart 1300 (17 CFR 229.1300) of Regulation S-K (“Regulation S-K 1300”) along with the amendments to related rules and guidance in order to modernise the property disclosure requirements for mining registrants under the Securities Act and the Securities Exchange Act. Registrants engaged in mining operations must comply with the final rule amendments (Regulation S-K 1300) for the first fiscal year beginning on or after 1 January 2021. Accordingly, the Companyis providing disclosure in compliance with Regulation S-K 1300 for its fiscal year ending 31 December 2021, and will continue to do so going forward. As part of its rulemaking to modernise its disclosure requirements, the SEC rescinded Industry Guide 7, which accordingly is not applicable to the Company’s current and future disclosures.

Mineral Resource and Mineral Reserve are estimates that contain inherent risk and depend upon geologic interpretation and statistical inferences drawn from drilling and sampling analysis, which may prove to be unreliable. For additional information on the risks and uncertainties associated with AngloGold Ashanti’s mining properties, see “Item 3D: Risk Factors"

Locations of properties
au-20211231_g6.jpg




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The locations of AngloGold Ashanti’s operations and advanced projects are shown above. Locality maps showing the location of properties as well as infrastructure and licences are also shown per operation or project in the Individual Property Disclosure section in Item 4D. Percentages indicate the ownership interest held by AngloGold Ashanti. All operations are 100 percent owned unless otherwise indicated.

Overview of Mining properties and operations

Refer to “Item 4B: Business Overview—Operating Performance” for the aggregate annual production for the properties during each of the three most recently completed fiscal years preceding the filing.

The following information is detailed for each material property in the Individual Property Disclosure section in Item 4D of this report:
•The location of the properties;
•The type and amount of ownership interests;
•The identity of the operator or operators;
•Titles, mineral rights, leases or options and acreage involved;
•The stages of the properties (exploration, development or production);
•Key permit conditions;
•Mine types and mineralisation styles; and
•Processing plants and other available facilities.

Price assumptions

The Mineral Resource and Mineral Reserve are based on reasonable economic assumptions which provide a reasonable basis for establishing the reasonable prospects of economic extraction for Mineral Resource, and for establishing the expected price for the Mineral Reserve. These economic assumptions include long-range commodity price and exchange rate forecasts and management estimates. These economic assumptions are reviewed annually and are prepared in-house using a range of techniques including historic price averages. AngloGold Ashanti selects a conservative Mineral 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.

In the case of Sunrise Dam, the 2021 Mineral 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 Mineral Reserve growth the initial step in a move towards realising the full asset potential. The Mineral 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 Mineral Reserve life. This has meant that significant marginal material was included in the plan in order to keep the plant operating at full capacity.

The Mineral 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 Mineral Reserve.

Gold price

The following local prices of gold were used as a basis for estimation in the December 2021 declaration, unless otherwise stated:
Local prices of gold(4)
Gold priceAustraliaBrazilArgentinaColombia
$/ozAUD/ozBRL/ozARS/ozCOP/oz
2021 Mineral Reserve(3)
1,2001,6336,182134,4523,849,000
2020 Mineral Reserve(2)
1,2001,6045,510119,6314,096,877
2021 Mineral Resource(1)
1,5002,0727,940173,0655,336,250

(1) Reported for the first time under Regulation S-K 1300.
(2) Reported under Industry Guide 7.
(3) Reported under Regulation S-K 1300.
(4) Considered over the period 2011 to 2021.




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Copper price

The following copper price was used as a basis for estimation in the December 2021 declaration:
Copper price(5)
$/lbCOP/lb
2021 Mineral Reserve(4)
2.909,302
2020 Mineral Reserve(3)
2.659,047
2021 Mineral Resource(1)
3.5012,451

The Mineral Resource, as reported, is exclusive(2) of the Mineral Reserve component. Mineral Resource and Mineral Reserve estimates are reported as at 31 December 2021 and are net of 2021 production depletion.

MINERAL RESOURCE

This is the first time that AngloGold Ashanti has reported Mineral Resource in the Form-20F and as such it cannot be compared to a previous reporting period.

Gold

The AngloGold Ashanti gold Mineral Resource(1) (exclusive of Mineral Reserve(2)), as at 31 December 2021, includes 51.72Moz Measured and Indicated Mineral Resource and 42.34Moz Inferred Mineral Resource. The Mineral Resource was estimated using a gold price of $1,500/oz, unless otherwise stated. Refer to Table 1a to Paragraph (b) prepared in accordance with Regulation S-K 1300 (§ 229.1303 (Item 1303)).

Copper

The AngloGold Ashanti copper Mineral Resource(1) (exclusive of Mineral Reserve(2)), as at 31 December 2021, includes 1.32Mt (2,902Mlb) Measured and Indicated Mineral Resource and 1.47Mt (3,231Mlb) Inferred Mineral Resource. The Mineral Resource was estimated at a copper price of $3.50/lb. Refer to Table 1b to Paragraph (b) prepared in accordance with Regulation S-K 1300 (§ 229.1303 (Item 1303)).

MINERAL RESERVE

Gold

The AngloGold Ashanti Mineral Reserve reduced from 29.5Moz in December 2020(3) to 28.1Moz in December 2021(4). This annual net decrease of 1.4Moz (5%) includes depletion of 2.6Moz and reductions due to other factors of 2.9Moz. This includes the exclusion of the Gramalote Mineral Reserve of 1.7Moz as AngloGold Ashanti are currently incorporating additional drilling into a revised model and have not reached agreement with the joint operation partner and thus no Mineral Reserve will be published). This decrease was partially offset by additions due to exploration and modelling changes of 4.1Moz. The Mineral Reserve was estimated using a gold price of $1,200/oz, unless otherwise stated (2020: $1,200/oz). Table 2ato Paragraph (b) prepared in accordance with Regulation S-K 1300 (§ 229.1303 (Item 1303)).

Copper

The AngloGold Ashanti Mineral Reserve increased from 1.41Mt (3,105Mlb) in December 2020(3) to 1.47Mt (3,250Mlb) in December 2021(4). This gross annual increase of 0.07Mt (145Mlb or 5%) is due to methodology changes. The Mineral Reserve was estimated at a copper price of $2.90/lb (2020: $2.65/lb). Table 2bto Paragraph (b) prepared in accordance with Regulation S-K 1300 (§ 229.1303 (Item 1303)).



(1)     Reported for the first time under Regulation S-K 1300 and thus no net difference can be reported.
(2)     The Mineral Resource exclusive of Mineral Reserve (“Exclusive Mineral Resource”) is defined as the Inclusive Mineral Resource less the Mineral Reserve before dilution and other factors are applied.
(3)     Reported under Industry Guide 7.
(4)     Reported under Regulation S-K 1300.
(5) Considered over the period 2011 to 2021.



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Table 1a to Paragraph (b) prepared in accordance with Regulation S-K 1300 (§ 229.1303 (Item 1303)) - Summary Mineral Resource(1) (exclusive of Mineral Reserve) for gold at the end of the Fiscal Year ended 31 December 2021 based on $1,500/oz, unless otherwise stated.

Mineral Resource (1)
MeasuredIndicatedMeasured and Indicated TotalInferred
Gold
Tonnes (3)
GradeContained Gold
Tonnes (3)
GradeContained Gold
Tonnes (3)
GradeContained Gold
Tonnes (3)
GradeContained Gold
as at 31 December 2021Milliong/tTonnesMozMilliong/tTonnesMozMilliong/tTonnesMozMilliong/tTonnesMoz
Continental Africa Region13.16 3.98 52.32 1.68 179.46 2.36 422.86 13.60 192.61 2.47 475.18 15.28 179.17 3.43 613.98 19.74 
Democratic Republic of Congo7.62 3.19 24.29 0.78 19.82 2.76 54.63 1.76 27.45 2.88 78.92 2.54 10.29 2.70 27.74 0.89 
Kibali (45 percent)(2)(7)(8)(13)
7.62 3.19 24.29 0.78 19.82 2.76 54.63 1.76 27.45 2.88 78.92 2.54 10.29 2.70 27.74 0.89 
Ghana4.09 5.27 21.55 0.69 67.20 3.55 238.27 7.66 71.28 3.64 259.82 8.35 77.50 5.35 414.90 13.34 
Iduapriem(13)
1.52 0.72 1.10 0.04 41.39 1.37 56.69 1.82 42.91 1.35 57.80 1.86 27.34 1.47 40.24 1.29 
Obuasi(12)
2.57 7.97 20.45 0.66 25.81 7.04 181.57 5.84 28.37 7.12 202.02 6.50 50.15 7.47 374.66 12.05 
Guinea— — — — 64.26 1.12 71.81 2.31 64.26 1.12 71.81 2.31 60.91 1.15 70.06 2.25 
Siguiri (85 percent)(2)(13)
— — — — 64.26 1.12 71.81 2.31 64.26 1.12 71.81 2.31 60.91 1.15 70.06 2.25 
Tanzania1.44 4.49 6.47 0.21 28.18 2.06 58.15 1.87 29.62 2.18 64.63 2.08 30.48 3.32 101.29 3.26 
Geita(13)
1.44 4.49 6.47 0.21 28.18 2.06 58.15 1.87 29.62 2.18 64.63 2.08 30.48 3.32 101.29 3.26 
Americas Region64.29 1.50 96.24 3.09 1,106.42 0.86 952.57 30.63 1,170.71 0.90 1,048.82 33.72 767.37 0.75 576.25 18.53 
Argentina4.33 2.66 11.53 0.37 19.73 2.15 42.41 1.36 24.07 2.24 53.93 1.73 4.96 2.35 11.65 0.37 
Cerro Vanguardia (92.5 percent)(2)(4)(13)
4.33 2.66 11.53 0.37 19.73 2.15 42.41 1.36 24.07 2.24 53.93 1.73 4.96 2.35 11.65 0.37 
Brazil14.81 4.58 67.78 2.18 22.99 3.17 72.82 2.34 37.80 3.72 140.61 4.52 55.54 3.63 201.60 6.48 
AGA Mineração - Corrego do Sitio(13)
2.24 3.07 6.88 0.22 6.02 3.09 18.62 0.60 8.26 3.09 25.49 0.82 16.54 3.99 65.95 2.12 
AGA Mineração - Cuiabá(5)(13)
4.70 7.74 36.40 1.17 3.47 5.43 18.83 0.61 8.17 6.76 55.23 1.78 12.87 4.94 63.63 2.05 
AGA Mineração - Lamego(5)(13)
2.12 3.23 6.86 0.22 2.59 2.41 6.24 0.20 4.71 2.78 13.10 0.42 4.92 3.01 14.80 0.48 
Serra Grande(13)
5.74 3.08 17.65 0.57 10.92 2.67 29.14 0.94 16.66 2.81 46.79 1.50 21.22 2.70 57.22 1.84 
Colombia45.15 0.37 16.93 0.54 1,063.69 0.79 837.35 26.92 1,108.84 0.77 854.27 27.47 586.42 0.44 258.05 8.30 
Gramalote (50 percent)(2)(9)(10)(11)
— — — — 81.29 0.75 61.14 1.97 81.29 0.75 61.14 1.97 62.59 0.52 32.55 1.05 
La Colosa(9)(11)
— — — — 833.49 0.87 726.31 23.35 833.49 0.87 726.31 23.35 217.89 0.71 154.86 4.98 
Quebradona(4)(6)(12)
45.15 0.37 16.93 0.54 148.91 0.34 49.89 1.60 194.06 0.34 66.82 2.15 305.94 0.23 70.64 2.27 
United States of America— — — — — — — — — — — — 120.44 0.87 104.96 3.37 
Silicon(4)(11)
— — — — — — — — — — — — 120.44 0.87 104.96 3.37 
Australasia Region29.92 1.25 37.49 1.21 33.13 1.42 47.21 1.52 63.05 1.34 84.69 2.72 50.07 2.53 126.83 4.08 
Sunrise Dam(13)
12.16 1.63 19.82 0.64 16.50 1.60 26.48 0.85 28.66 1.62 46.29 1.49 23.60 2.36 55.67 1.79 
Butcher Well (70 percent)(2)(11)
— — — — — — — — — — — — 2.69 3.77 10.14 0.33 
Tropicana (70 percent)(2)(13)
17.76 0.99 17.67 0.57 16.63 1.25 20.73 0.67 34.39 1.12 38.40 1.23 23.78 2.57 61.02 1.96 
AngloGold Ashanti Total107.37 1.73 186.05 5.98 1,319.01 1.08 1,422.64 45.74 1,426.38 1.13 1,608.69 51.72 996.61 1.32 1,317.06 42.34 




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Rounding off numbers may result in computational discrepancies in the Mineral Resource tabulations. The Mineral Resource estimates with respect to our properties have been prepared by the Qualified Persons (employed by AngloGold Ashanti unless stated otherwise) referred to in the Technical Report Summaries filed as Exhibits to the Form 20-F. The Mineral Resource is reported for the first time under Regulation S-K 1300 and thus no net difference can be reported. (1) All disclosure of Mineral Resource is exclusive of Mineral Reserve. The Mineral Resource exclusive of Mineral Reserve (“Exclusive Mineral Resource”) is defined as the inclusive Mineral Resource less the Mineral Reserve before dilution and other factors are applied. (2) Mineral Resource attributable to AngloGold Ashanti’s percentage interest shown.
(3) Tonnes refers to a metric tonne which is equivalent to 1000 kilograms.
(4) The inclusive Mineral Resource contains 78.5Moz of silver for Cerro Vanguardia; 92.9Moz of silver for Quebradona and 14.2Moz of silver for Silicon as a by-product.
(5) The inclusive Mineral Resource contains 1.71 million tonnes of sulphur as a by-product for AGA Mineração - Cuiabá and Lamego.
(6) The inclusive Mineral Resource contains 89.3 kilotonnes of molybdenum as a potential by-product. (7) AngloGold Ashanti has recognised that in preparing this report, the Qualified Persons have, relied on information provided by Barrick. (8) Operated by Barrick. (9) Based on $1,400/oz. (10) Managed by B2Gold Corp. The Mineral Resource is estimated by AngloGold Ashanti. (11) Property currently in an exploration stage. (12) Property currently in a development stage. (13) Property currently in a production stage.

Table 1b to Paragraph (b) prepared in accordance with Regulation S-K 1300 (§ 229.1303 (Item 1303)) - Summary Mineral Resource(1) (exclusive of Mineral Reserve) for copper at the end of the Fiscal Year ended 31 December 2021 based on $3.50/lb, unless otherwise stated.

Mineral Resource (1)
MeasuredIndicatedMeasured and Indicated TotalInferred
Copper
Tonnes (2)
GradeContained Copper
Tonnes (2)
GradeContained Copper
Tonnes (2)
GradeContained Copper
Tonnes (2)
GradeContained Copper
as at 31 December 2021Million%CuTonnes MillionPounds MillionMillion%CuTonnes MillionPounds MillionMillion%CuTonnes MillionPounds MillionMillion%CuTonnes MillionPounds Million
Americas Region45.15 0.69 0.31 684 148.91 0.68 1.01 2,218 194.06 0.68 1.32 2,902 305.94 0.48 1.47 3,231 
Colombia45.15 0.69 0.31 684 148.91 0.68 1.01 2,218 194.06 0.68 1.32 2,902 305.94 0.48 1.47 3,231 
Quebradona(3)(4)(5)
45.15 0.69 0.31 684 148.91 0.68 1.01 2,218 194.06 0.68 1.32 2,902 305.94 0.48 1.47 3,231 
AngloGold Ashanti Total45.15 0.69 0.31 684 148.91 0.68 1.01 2,218 194.06 0.68 1.32 2,902 305.94 0.48 1.47 3,231 

Rounding off numbers may result in computational discrepancies in the Mineral Resource tabulations. The Mineral Resource estimates with respect to our properties have been prepared by the Qualified Persons (employed by AngloGold Ashanti unless stated otherwise) referred to in the Technical Report Summaries filed as Exhibits to the Form 20-F. The Mineral Resource is reported for the first time under Regulation S-K 1300 and thus no net difference can be reported. (1) All disclosure of Mineral Resource is exclusive of Mineral Reserve. The Mineral Resource exclusive of Mineral Reserve (“Exclusive Mineral Resource”) is defined as the Inclusive Mineral Resource less the Mineral Reserve before dilution and other factors are applied.
(2) Tonnes refers to a metric tonne which is equivalent to 1000 kilograms. (3) The inclusive Mineral Resource contains 92.9Moz of silver as a by-product.
(4) The inclusive Mineral Resource contains 89.3 kilotonnes of molybdenum as a potential by-product. (5) Property currently in a development stage.







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Table 2a to Paragraph (b) prepared in accordance with Regulation S-K 1300 (§ 229.1303 (Item 1303)) - Summary Mineral Reserve for gold at the end of the Fiscal Year ended 31 December 2021 based on $1,200/oz, unless otherwise stated.
Mineral ReserveProvenProbableTotal Mineral Reserve
Gold
Tonnes (2)
GradeContained Gold
Tonnes (2)
GradeContained Gold
Tonnes (2)
GradeContained Gold
as at 31 December 2021Milliong/tTonnesMozMilliong/tTonnesMozMilliong/tTonnesMoz
Continental Africa Region41.33 2.58 106.54 3.43 183.69 2.72 499.29 16.05 225.02 2.69 605.84 19.48 
Democratic Republic of Congo14.35 3.76 54.01 1.74 23.04 3.50 80.71 2.59 37.40 3.60 134.72 4.33 
Kibali (45 percent)(1)(5)(6)(10)
14.35 3.76 54.01 1.74 23.04 3.50 80.71 2.59 37.40 3.60 134.72 4.33 
Ghana6.88 5.57 38.34 1.23 83.32 3.59 299.46 9.63 90.20 3.75 337.80 10.86 
Iduapriem(10)
2.15 0.68 1.46 0.05 57.25 1.39 79.32 2.55 59.40 1.36 80.78 2.60 
Obuasi(9)
4.73 7.79 36.88 1.19 26.07 8.45 220.14 7.08 30.80 8.34 257.02 8.26 
Guinea17.91 0.63 11.36 0.37 49.80 0.80 39.67 1.28 67.72 0.75 51.03 1.64 
Siguiri (85 percent)(1)(10)
17.91 0.63 11.36 0.37 49.80 0.80 39.67 1.28 67.72 0.75 51.03 1.64 
Tanzania2.19 1.30 2.84 0.09 27.52 2.89 79.45 2.55 29.71 2.77 82.29 2.65 
Geita(10)
2.19 1.30 2.84 0.09 27.52 2.89 79.45 2.55 29.71 2.77 82.29 2.65 
Americas Region11.11 2.70 29.99 0.96 141.28 1.03 146.01 4.69 152.40 1.15 176.00 5.66 
Argentina4.19 2.04 8.54 0.27 8.12 2.08 16.88 0.54 12.31 2.07 25.42 0.82 
Cerro Vanguardia (92.5 percent)(1)(3)(10)
4.19 2.04 8.54 0.27 8.12 2.08 16.88 0.54 12.31 2.07 25.42 0.82 
Brazil6.93 3.10 21.45 0.69 13.15 3.67 48.29 1.55 20.07 3.47 69.74 2.24 
AGA Mineração - Corrego do Sitio(10)
1.10 1.99 2.18 0.07 3.36 2.85 9.57 0.31 4.46 2.63 11.75 0.38 
AGA Mineração - Cuiabá(4)(10)
2.08 4.65 9.67 0.31 5.80 4.70 27.29 0.88 7.89 4.69 36.97 1.19 
AGA Mineração - Lamego(4)(10)
0.46 2.55 1.17 0.04 0.90 2.92 2.63 0.08 1.36 2.80 3.79 0.12 
Serra Grande(10)
3.29 2.56 8.44 0.27 3.08 2.85 8.79 0.28 6.37 2.70 17.23 0.55 
Colombia— — — — 120.01 0.67 80.83 2.60 120.01 0.67 80.83 2.60 
Gramalote (50 percent)(1)(7)(8)
— — — — — — — — — — — — 
Quebradona(3)(9)
— — — — 120.01 0.67 80.83 2.60 120.01 0.67 80.83 2.60 
Australasia Region26.41 1.46 38.43 1.24 25.31 2.13 54.04 1.74 51.73 1.79 92.47 2.97 
Sunrise Dam(10)
12.18 1.50 18.30 0.59 9.40 2.38 22.34 0.72 21.58 1.88 40.64 1.31 
Tropicana (70 percent)(1)(10)
14.24 1.41 20.14 0.65 15.91 1.99 31.70 1.02 30.15 1.72 51.84 1.67 
AngloGold Ashanti Total78.86 2.22 174.97 5.63 350.28 2.00 699.34 22.48 429.14 2.04 874.31 28.11 

Rounding off numbers may result in computational discrepancies in the Mineral Reserve tabulations. The Mineral Reserve estimates with respect to our properties have been prepared by the Qualified Persons (employed by AngloGold Ashanti unless stated otherwise) referred to in the Technical Report Summaries filed as Exhibits to the Form 20-F. The net difference between the Mineral Reserves at the end of the last completed fiscal year and the preceding fiscal year will be detailed in the Individual Property Disclosure Section. (1) Mineral Reserve attributable to AngloGold Ashanti’s percentage interest shown.
(2) Tonnes refers to a metric tonne which is equivalent to 1000 kilograms.
(3) The Mineral Reserve contains 20.5Moz of silver for Cerro Vanguardia and 28.1Moz of silver for Quebradona to be recovered as a by-product.
(4) The Mineral Reserve contains 0.43 million tonnes of sulphur to be recovered as a by-product for AGA Mineração - Cuiabá and Lamego.



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(5) AngloGold Ashanti has recognised that in preparing this report, the Qualified Persons have, relied on information provided by Barrick. (6) Operated by Barrick. (7) Managed by B2Gold Corp. (8) At Gramalote, AngloGold Ashanti is currently incorporating additional drilling into a revised model and have not reached agreement with the joint operation partner and thus no Mineral Reserve will be published. Current stage of the property is at exploration stage.(9) Property currently in a development stage. (10) Property currently in a production stage.

Table 2b to Paragraph (b) prepared in accordance with Regulation S-K 1300 (§ 229.1303 (Item 1303)) - Summary Mineral Reserve for copper at the end of the Fiscal Year ended 31 December 2021 based on $2.90/lb, unless otherwise stated.

Mineral ReserveProvenProbableTotal Mineral Reserve
Copper
Tonnes (1)
GradeContained Copper
Tonnes (1)
GradeContained Copper
Tonnes (1)
GradeContained Copper
as at 31 December 2021Million%CuTonnes MillionPounds MillionMillion%CuTonnes MillionPounds MillionMillion%CuTonnes MillionPounds Million
Americas Region— — — — 120.01 1.23 1.47 3,250 120.01 1.23 1.47 3,250 
Colombia— — — — 120.01 1.23 1.47 3,250 120.01 1.23 1.47 3,250 
Quebradona(2)(3)
— — — — 120.01 1.23 1.47 3,250 120.01 1.23 1.47 3,250 
AngloGold Ashanti Total— — — — 120.01 1.23 1.47 3,250 120.01 1.23 1.47 3,250 

Rounding off numbers may result in computational discrepancies in the Mineral Reserve tabulations. The Mineral Reserve estimates with respect to our properties have been prepared by the Qualified Persons (employed by AngloGold Ashanti unless stated otherwise) referred to in the Technical Report Summaries filed as Exhibits to the Form 20-F. The net difference between the Mineral Reserves at the end of the last completed fiscal year and the preceding fiscal year will be detailed in the Individual Property Disclosure Section. (1) Tonnes refers to a metric tonne which is equivalent to 1000 kilograms.
(2) The Mineral Reserve contains 28.1Moz of silver to be recovered as a by-product. (3)Property currently in a development stage.







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BY-PRODUCTS
Several by-products will be recovered as a result of processing of the gold Mineral Reserve and copper Mineral 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.

CORPORATE GOVERNANCE
AngloGold Ashanti has an established Mineral Resource and Mineral Reserve Steering Committee (“RRSC”), which is responsible for setting and overseeing the Company’s Mineral Resource and Mineral 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 as well as the Investment Committee of the Company’s Board of Directors (“Board”), review the Mineral Resource and Mineral Reserve and make a recommendation to the Board, which provides the final approval for the publication of the Mineral Resource and Mineral Reserve estimates.

The Company has developed and implemented a rigorous system of internal and external reviews aimed at providing assurance in respect of Mineral Reserve and Mineral Resource estimates. In 2021, the following operations were subject to an external review in line with the policy that each operation/project will be reviewed by an independent third party on average once every three years:

•    Mineral Resource and Mineral Reserve at Iduapriem
•    Mineral Resource and Mineral Reserve at Obuasi
•    Mineral Resource and Mineral Reserve at Kibali
•    Mineral Resource and Mineral Reserve at Serra Grande
•    Mineral Resource and Mineral Reserve at Sunrise Dam
•    Mineral Resource and Mineral Reserve at Tropicana

The external reviews of the Mineral Resource and Mineral Reserve were conducted by SRK Consulting for the properties operated by AngloGold Ashanti and no material risks were identified in any of the audit reports. In the case of Kibali an independent technical review of the annual Mineral Resource and Mineral Reserve estimates was undertaken by RSC Mining and Mineral Exploration on behalf of the managing partner Barrick Gold Corporation (“Barrick”) and identified no significant flaws.

In addition, numerous internal Mineral Resource and Mineral Reserve process reviews were completed by suitably Qualified Persons from within AngloGold Ashanti and no significant deficiencies were identified. The Mineral Resource and Mineral Reserve governance framework is underpinned by appropriate Mineral Resource Management processes and protocols that ensure adequate corporate governance. These procedures have been developed to be compliant with the guiding principles of the U.S. Sarbanes-Oxley Act of 2002 (“SOX”).

AngloGold Ashanti makes use of a web-based group reporting database called the Resource and Reserve Reporting System (“RCubed”) for the compilation and authorisation of Mineral Resource and Mineral Reserve reporting. It is a fully integrated system for the reporting and reconciliation of Mineral Resource and Mineral Reserve that supports various regulatory reporting requirements, including the SEC under 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 Qualified Persons at the operations to the Company’s RRSC.

AngloGold Ashanti has also developed an enterprise-wide risk management tool that provides consistent and reliable data that allows for visibility of risks and actions across the group. This tool is used to facilitate, control and monitor material risks to the Mineral Resource and Mineral Reserve, so that the Company can determine whether the appropriate risk management and mitigation plans are in place.

Where technical experts involved in the estimation of Mineral Resource or Mineral Reserve feel that their technical advice has been ignored and may represent a risk to the Mineral Resource or Mineral Reserve to be published, they are obliged to inform the Mineral Resource and Mineral 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.




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QUALIFIED PERSONS
The information in this report relating to Exploration Results, Mineral Resource and Mineral Reserve is based on information compiled by or under the supervision of the Qualified Persons as defined in the Regulation S-K 1300. All Qualified Persons are employed by AngloGold Ashanti 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. AngloGold Ashanti has recognised that in preparing this report with respect to Kibali, the Qualified Persons have relied on information provided by Barrick. The legal tenure of each operation and project has been verified to the satisfaction of the accountable Qualified Person and all the Mineral Reserve has been confirmed to be covered by the required mining permits or there exists a realistic expectation that these permits will be issued. The Qualified Persons have provided consent to the inclusion of Exploration Results, Mineral Resource and Mineral Reserve information in this report, in the form and context in which it appears as well as the public filing and use of the Technical Report Summary for each respective mining property filed as exhibits to the Form 20-F.

Accordingly, the Chairman of the Mineral Resource and Mineral Reserve Steering Committee, Mr. VA Chamberlain, MSc (Mining Engineering), BSc (Hons) (Geology), MGSSA, FAusIMM, assumes responsibility for the Mineral Resource and Mineral Reserve processes for AngloGold Ashanti and is satisfied that the Qualified 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. Mr. VA Chamberlain consents to the inclusion of Exploration Results, Mineral Resource and Mineral Reserve information in this report, in the form and context in which it appears filed as an Exhibit to the Form 20-F.

For additional information, see the Technical Report Summary on each individual property, filed as an Exhibit to this annual report on Form 20-F.

THE FOLLOWING SHOULD BE NOTED IN RESPECT OF THE ANNUAL REPORT ON FORM 20F:
•All figures are expressed on an attributable basis unless otherwise indicated
•All disclosure of Mineral Resource is exclusive of Mineral Reserve
•Unless otherwise stated, $ or dollar refers to United States dollars
•Group and Company are used interchangeably
•Mine, operation, business unit and property are used interchangeably
•Rounding off numbers may result in computational discrepancies
•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 copper content with no decimals
•Metric tonnes (t) are used throughout this report and all ounces are Troy ounces
•Abbreviations used in this report: gold– Au, copper – Cu, silver – Ag, Sulphur – S, molybdenum – Mo
•Internal controls are discussed in the Mineral Resource and Mineral Reserve Summary Disclosure section under Corporate Governance as well as the Mineral Resource and Mineral Reserve Internal Controls Disclosure section below
•Maps presented in the Individual Property Disclosure section in Item 4D show infrastructure, licences and coordinates of the mine, as represented by the plant (or stated otherwise), depicted on the map. The reference co-ordinate system used for the location of properties as well as infrastructure and licences maps / plans is latitude longitude geographic co-ordinates in various formats, or relevant Universal Transverse Mercator (“UTM”) projection.

Refer to the Mining Terms for terminology and definitions used in Mineral Resource and Mineral Reserve reporting under Regulation S-K 1300. In addition note the following:

Although the term Mineral Reserve is used throughout Regulation S-K 1300 and this document. AngloGold Ashanti uses Ore Reserve in its internal reporting.

The Mineral Resource exclusive of Mineral Reserve (“Exclusive Mineral Resource”) is defined as the Inclusive Mineral Resource less the Mineral Reserve before dilution and other factors are applied. The Exclusive Mineral Resource consists of the following components:
•Inferred Mineral Resource, including that within the Mineral Reserve design or stope shape;
•Mineral Resource that sits above the Mineral Resource cut-off grade but below the Mineral Reserve cut-off grade that resides within the defined Mineral Reserve volume;
•Mineral Resource that lies between the life of mine (“LOM”) pit shell or mine design and the Mineral Resource pit shell/mine design (this material will become economic if the gold price increases);



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•Mineral Resource where the technical studies to engineer a Mineral Reserve have not yet been completed.

All reports of Mineral Resource must satisfy the requirement that there are reasonable prospects for economic extraction, regardless of the classification of the Mineral Resource. Portions of a deposit that do not have reasonable prospects for eventual economic extraction are not included in a Mineral Resource. The Mineral Resource is estimated using all relevant drilling and sampling information along with a detailed geological model.

The geological models are based on combinations of core and/or chip logging, mapping, geophysics, geochemistry and geological understanding and have been developed for each deposit. Most of our deposits have been the subject of research by third party specialists in the relevant class of gold deposit.

The grade estimation for each deposit has been developed over the life of the mine, and is constantly reviewed in terms of grade control information and reconciliation with the metallurgical plant. In general, the open pits and shallow underground mines use kriging with post processing by Uniform Conditioning (“UC”) or Localised Uniform Conditioning (“LUC”) to generate a recoverable Mineral Resource model where appropriate.

In order to comply with the economic requirement of the definition of Mineral Resource, all our Mineral Resource is constrained at an upside gold price, with all other parameters being kept the same as used for estimation of the Mineral Reserve. In the underground gold mines, scoping studies are conducted on all coherent blocks of ground that lie above the calculated Mineral Resource cut-off grade. These studies include all cost and capital requirements to access the block. In the case of open pit operations, pit optimisations are conducted at the Mineral Resource gold price and all material outside these shells is excluded from the Mineral Resource unless it is potentially mineable from underground.

It is the opinion of AngloGold Ashanti that the Mineral Resource represents a realistic view of an upside potential to the Mineral Reserve. In interpreting the Mineral Resource it is critical to factor in the following:
•That there is a reasonable expectation of economic extraction
•The Mineral Resource is quoted in situ and has not been corrected for dilution, mining losses or recovery
•Many of the areas lying in the Exclusive Mineral Resource are currently being actively drilled and are the subject of economic and technical studies. It can, however, not be assumed at this stage that the company has intent to mine these areas

The Inferred Mineral Resource category is intended to cover situations in which a mineral concentration or occurrence has been identified and limited measurements and sampling have been completed but in which the data are insufficient to allow the geological or grade continuity to be interpreted with confidence. While it would be reasonable to expect that the majority of Inferred Mineral Resource would upgrade to Indicated Mineral Resource with continued exploration, due to the uncertainty of Inferred Mineral Resource, it should not be assumed that such upgrading will always occur.

In order to reduce the risk AngloGold Ashanti limits the use of Inferred Mineral Resource in its Mineral Reserve estimation process but the Inferred Mineral Resource is included in the pit shell or underground extraction shape determination. As such the Inferred Mineral Resource may influence the extraction shape. The quoted Mineral Reserve from these volumes includes only the converted Measured and Indicated Mineral Resource and no Inferred Mineral Resource is converted to Mineral Reserve. The cash flow analysis does not include the Inferred Mineral Resource in demonstrating the economic viability of the Mineral Reserve. For more information, see the Technical Report Summary for each Property filed as an Exhibit of this annual report on Form 20-F.

AngloGold Ashanti requires that the Mineral Reserve that is an outcome of this process is generated at a minimum of a Prefeasibility Study (“PFS”) level.

MINERAL RESOURCE AND MINERAL RESERVE INTERNAL CONTROLS DISCLOSURE

AngloGold Ashanti has a tiered internal review process whereby newly issued Mineral Resource and Mineral Reserve are reviewed at a regional level prior to publication. Selected Corporate reviews happen post that process. Each mine has an external Mineral Resource and Mineral Reserve audit on a three-year rolling basis, and issues raised in these audits are addressed by a formal audit reply from each mine on which the progress is tracked.

AngloGold Ashanti’s Mineral Reserve is an outcome of the Company’s Business Planning process which runs annually. This process operates within a comprehensive framework where all inputs, including costs and capital



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requirements, are generated by the operation, and reviewed at a regional and corporate level within the Company, thereby providing confidence in the estimates.

A group wide Mineral Resource to production reconciliation system is also in place whereby the Mineral Resource mined each month is reconciled all the way to the produced gold doré. Oversight for this is handled at the group level. A comprehensive sample and assay QAQC process is in place and our laboratories are inspected frequently by onsite teams and on an on-needs basis by the Group sampling specialist.


MINERAL RESOURCE AND MINERAL RESERVE INDIVIDUAL PROPERTY DISCLOSURE
For more information about AngloGold Ashanti’s mines, including a summary of the company’s mining rights and licences refer to “Item 4B: Business Overview—The Regulatory Environment Enabling AngloGold Ashanti to Mine”. For detailed information about AngloGold Ashanti’s mines, including the mining rights and licences refer to the Technical Report Summary on each individual property, filed as an Exhibit of this annual report on Form 20-F.

AngloGold Ashanti have examined material properties with the following key considerations and have decided to report all of its operations in the Individual Property Disclosure for 2021 based on the following:
•First time reporting;
•The consideration of both quantitative and qualitative factors, assessed in the context of the registrant’s overall business and financial condition; 
•Aggregate mining operations on all of its mining properties (regardless of the stage of the mining property, and size or type of commodity produced); and 
•Include, for each property (as applicable), all related activities from exploration through extraction. 

AngloGold Ashanti’s operating mines are all accessible by road, although for some, personnel access is better achieved by air.

Our exploration programmes are based on consistent standards and processes across the AngloGold Ashanti portfolio and are guided by peer review. Part of AngloGold Ashanti investment strategy is focused on exploration drilling and Mineral Reserve development to grow the Mineral Resource and by converting these, we allow for expansion of the Mineral Reserve. The process involves identifying the best group of drill targets and prioritising those that have the highest potential for success to be advanced first. Greenfields exploration aims to discover large, high-value Mineral Resource, which will eventually lead to the development of new gold mines. Brownfields exploration focuses on delivering value through accretive additions to the Mineral at existing mines as well as new discoveries in defined areas around operations.

This report is not being submitted in support of the disclosure of exploration results and therefore no disclosure of drilling or sample results is provided. AngloGold Ashanti has elected not to provide drilling results for its operating mines as drilling at our Brownfields operations is generally to provide incremental additions, or conversions to already reported Mineral Resource and therefore they are not seen as material. While drilling at our Brownfields operations increases confidence in our Mineral Resource as well as adds LOM extensions, the incremental additions that occur on a yearly basis are not material to that operation or the company as a whole. In cases where the drilling projects are supporting a non-sustaining addition, these projects are commented on. In our major greenfields projects if any single drill result is considered material and may change the reported Mineral Resource significantly then it is reported.


AFRICA
AngloGold Ashanti has five mining operations within the Africa region:
•Kibali in the DRC, a joint venture (“JV”) with Barrick and Société Minère de Kilo-Moto (“SOKIMO”), the state-owned gold mining company
•Iduapriem in Ghana
•Obuasi in Ghana, currently in a redevelopment phase
•Siguiri in Guinea, with AngloGold Ashanti holding 85% ownership, and the remaining 15% owned by the government of Guinea
•Geita in Tanzania

Mining is from both open pit and underground, with Obuasi being an underground mine, Iduapriem and Siguiri being open pit mines, and Kibali and Geita being a combination of open pit and underground mines.



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DRC
Kibali, one of the largest gold mines in Africa, is situated in the DRC, adjacent to the town of Doko and 210km from Arua on the Ugandan border. Kibali is co-owned by AngloGold Ashanti (45%), Barrick (45%) following its merger with Randgold Resources Limited (“Randgold”), and SOKIMO (10%), a state-owned gold mining company. SOKIMO is wholly owned by the DRC government with the shareholding held by the Minister of Portfolio of the DRC.

The consolidated lease is made up of ten mining concessions. The metallurgical plant comprises a twin-circuit sulphide and oxide plant with conventional carbon-in-leach (“CIL”), including gravity recovery as well as a float and ultra-fine grind circuit. Barrick operates the mine which comprises both open pit and underground operations.

KIBALI

Property description
Kibali is a gold mining, milling and exploration project. Operations currently focus on open pit and underground mining. Development of the underground mine commenced in 2013 and production of the underground ramped up to 3.8Mt in 2021. Initial production was via a twin decline from surface. From 2018 onwards, the majority of ore was hoisted up the shaft. The decline is used to haul some of the shallower zones and to supplement shaft haulage.

Kibali is owned by Kibali Goldmines SA which is a joint venture company between Barrick (45%), AngloGold Ashanti (45%) and SOKIMO (10%).

The mine was originally developed and operated by Randgold. Since Randgold and Barrick merged in 2019, Barrick is now the operator at Kibali for both exploration and mining. Kibali is currently a production stage property.

Location
Kibali is located in the northeastern part of the DRC near the international borders with Uganda and South Sudan. The mine is located adjacent to the village of Doko, which is located to the west of the lease area. Kibali is approximately 210km by road from Arua and immediately north of the district capital of Watsa. The operational area falls within the administrative territory of Watsa in Haut-Uélé province.

Geology
The gold deposits at Kibali are largely hosted in siliciclastic rocks, banded iron formations (“BIFs”), and cherts that were metamorphosed under greenschist facies conditions, situated along a curvilinear zone 20 km long and up to one km in width, known as the KZ Structure. Gold mineralisation is concentrated in gently NE to NNE-plunging fold axes whose orientations are generally parallel with a prominent lineation in the mineralised rocks. The mineralised deposits of the Kibali district are associated with halos of quartz, ankerite, and sericite (ACSA-A) alteration that extend for tens to hundreds of metres into the adjacent rocks. Areas of economic mineralisation are defined where the project scale ACSA-A alteration is locally overprinted by the ankerite-siderite, pyrite alteration assemblage (ACSA-B) that hosts the gold mineralisation. The gold-bearing sulphides consist of disseminated pyrite, minor pyrrhotite, and arsenopyrite. The auriferous pyrite occurs as both salt and pepper disseminated fine grains and bleb-like clusters of disseminated grains.

History
On 15 October 2009, AngloGold Ashanti acquired a 50% indirect interest in Moto Goldmines Limited through a JV with Randgold, with Moto holding a 70% stake in Kibali and the balance (30%) being held by the DRC parastatal, SOKIMO. On 21 December 2009, Randgold and AngloGold Ashanti increased their JV interest in Kibali to 90%, while SOKIMO retained a 10% holding. On 2 January 2019, Randgold merged with Barrick, and the JV is now with the combined company, trading as Barrick.

The first gold was poured in September 2013 from the open pit operations and development of the underground mine commenced in the same year. First underground ore from development was also mined in 2013 and stoping began in 2015. Initial production was truck hauled by a twin decline to surface. In 2017, the haulage shaft (740m deep) and materials handling system were commissioned.

Legal aspects and tenure
Refer to “Item 4B: Business Overview—The Regulatory Environment Enabling AngloGold Ashanti to Mine—Africa Region—Democratic Republic of the Congo (DRC)—AngloGold Ashanti’s rights and permits”.






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Mining method
The operation comprises both open pit and underground mining. The open pit mining is carried out using conventional drill, blast, load and haul surface mining methods. The mining is conducted by a contractor, Kibali Mining Services, a local subsidiary of DTP Terrassement, using either free-dig or drill and blast.

For the underground operation, longitudinal, transverse primary or secondary stoping and advancing face stoping methods with paste backfill are used as the mining methods.

Operational infrastructure
Infrastructure in the DRC is generally poor as a result of limited investment in maintenance, upgrades and extensions of the road networks established during colonial times. The mine site is located within 160km of the border with Uganda and all transport links take place through Uganda to Kenya or Tanzania. Surface infrastructure associated with the overall Kibali operation includes a processing plant, tailings storage facility (TSF), camp, airstrip, workshops and offices. Power to the mine is self-generated by a combination of hydroelectric and diesel generators.

The Property, Plant, and Equipment as of the end of December 2021 including lease assets, buildings & mine infrastructure, mining assets, mineral rights and dumps, decommissioning assets, capitalised exploration costs and deferred stripping had a carrying value of $981m (reported as attributable - 45% owned by AngloGold Ashanti).

Mineral processing
The current processing plant can treat both oxide and fresh sulphide material and uses flotation with ultra-fine grind of the flotation concentrate, a treatment that is required for the sulphide ore type before leaching. Kibali has a processing operation capable of producing an average of 600koz of gold per annum designed to treat 7.2Mtpa but ongoing improvements have achieved performance beyond the design capacity successfully since 2017.

Qualified Persons
KibaliSunrise DamQualified PersonProfessional OrganisationTropicanaMembership numberRelevant Years ExperienceQualification
Mineral ResourceRichard PeattieAusIMM30102925 yearsMPhil Mineral Resource Evaluation (University of Queensland)
Nameplate capacity (tonnes/annum)Mineral Reserve4.1MtRomulo SanhuezaAusIMM4.9Mt21179424 yearsBSc Eng (Mining)


Australia - Sunrise DamExploration

Refer to “Item 4B: Business Overview—Exploration review”.
Description
Sunrise Dam, whichMineral Resource
Refer to Table 1a to Paragraph (b) prepared in accordance with Regulation S-K 1300 (§ 229.1303 (Item 1303)) that summarises the gold Mineral Resource (exclusive of Mineral Reserve) for Kibali at the end of the Fiscal Year ended 31 December 2021 based on $1,500/oz. The Mineral Resource is wholly-owned,reported for the first time under Regulation S-K 1300 and thus no net difference can be reported.

Refer to the Key Parameters under Material Assumptions for additional information on cut-off grades and metallurgical recovery. For additional information, see the Technical Report Summary on each individual property, filed as an Exhibit of this annual report on Form 20-F.

Material Assumptions for the Mineral Resource

Key Parameters
KibaliUnitOpen Pit
Costs
Waste cost$/tonne mined
2.92-3.09(1)
Extra Ore Cost – Grade Control + Ore – Rehandle + Overhaul$/tonne mined1.27 
Grade Control cost$/tonne mined0.75 
Dilution%10
Ore Loss%3
Processing cost$/tonne milled
15.04-17.85(1)
G&A$/tonne milled8.47 
Other Parameters



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Gold Royalties (4.7%)$/oz70.50 
Metallurgical Recovery Factor%MetRF
86.1-90.1(1)
Mineral Resource cut-off gradeg/t
0.6-0.7(1)
Mineral Resource price$/oz1,500 
(1) Vary according to rock type

KibaliUnitUnderground
Costs
Mine Production$/tonne ore mined36.17 
Capital$/tonne ore mined3.97
G&A$/tonne ore milled8.47
Processing cost$/tonne ore milled17.85
Other Parameters
Gold Royalties (4.7%)$/oz70.50
Mining cut-off gradeg/t1.62
Mineral Resource price$/oz1,500 
Metallurgical Recovery Factor%MetRF90

Estimation
Mineral Resource estimation is located 220 kilometres northeastundertaken by Barrick in-house Qualified Persons or by approved external consultants. The results of Kalgoorlieboth diamond drilling (“DD”) and 55 kilometres southreverse circulation (“RC”) drilling are used in the estimation process. 3D mineralised envelopes are established using grade and geology, and these are then statistically verified to confirm their validity for use in grade estimation. Appropriate domaining of Laverton in Western Australia. Underground mining, whichhomogeneous zones is conducted by a contract mining company, iswhereby high-grade central core areas are modelled separately from the primary source of ore,lower-grade surrounding halos. Volumes are filled with supplementary mill feed provided by stockpiles. Ore is treated via conventional gravity float, fine grindblock model cells and carbon-in-leach (CIL) processing plant, which is owner-managed.

Open pit production began in 1997 and has now been completed at a final depth of 500m below surface. Underground mining commenced in 2003 with a number of different mining methods being applied, depending on the style of mineralisationinterpolated for density, rock type and grade, the latter using ordinary kriging. Grade top cuts and restricted searches are applied to drill hole data to prevent the spread of high-grades during the geological domain. By 2014,estimation process. Drill hole spacing is used to guide the mine was wholly an underground mining operation supplemented with stockpile processing. The underground mining infrastructure has been undergoing continuous upgrades with an extra power feed to the underground mine completed in 2017 and a major ventilation fan upgrade completed in 2018.

Power at Sunrise Dam is self-generated and the mine uses natural gas supplied via an APA Operations (Pty) Limited pipeline.

Geology
Gold ore at Sunrise Dam is structurally and lithologically controlled within gently dipping high strain shear zones and steeply dipping brittle-ductile low strain shear zones. Host rocks include andesitic volcanic rocks, volcanogenic sediments and magnetic shales.

Australia - Tropicana

Description
Tropicana, a joint venture between AngloGold Ashanti (70 percent and manager) and Independence Group NL (30 percent), is located 200 kilometres east of Sunrise Dam and 330 kilometres east-northeast of Kalgoorlie. First gold was poured ahead of schedule and on budget in September 2013, following development approval in November 2010.Mineral Resource classification. The open pit operation featuresMineral Resource is quoted within a large scale, modern processing plantlimiting shell. The underground Mineral Resource is constrained by the application of optimised mineable Mineral Resource shapes, which uses conventional carbon-in-leach technologyapplies reasonable mineability constraints including a minimum mining width, a reasonable distance from current or planned development, and includes high-pressure grinding rollsa measure of assumed profitability at the related Mineral Resource cut-off grade.

Mineral Reserve
Refer to Table 2ato Paragraph (b) prepared in accordance with Regulation S-K 1300 (§ 229.1303 (Item 1303)) that summarises the gold Mineral Reserve for energy-efficient comminution. Mining is carried out byKibali at the end of the Fiscal Year ended 31 December 2021 based on $1,200/oz.

Refer to the Modifying Factors and price estimates under Material Assumptions for additional information on cut-off grades and metallurgical recovery. For additional information, see the Technical Report Summary on each individual property, filed as an Exhibit of this annual report on Form 20-F.

Year on year changes in Mineral Reserve - Moz
as at 31 December 2021Kibali
CategoryProvenProbableTotal
Previous Year1.272 2.974 4.247 
Depletion(0.410)— (0.410)
Exploration0.852 (0.485)0.367 
Methodology— — — 
Price0.039 0.105 0.144 
Cost— — — 
Geotechnical0.002 — 0.002 
Metallurgical— — — 
Operational— — — 
Acquisition / Disposal— — — 
Other(0.018)— (0.018)



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Current Year1.737 2.595 4.331 
Net Difference0.464 (0.380)0.085 
% Difference36 (13)2 

The increase in Mineral Reserve was primarily as a contract mining companyresult 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 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.

Material Assumptions for the Mineral Reserve

Modifying factors and price estimates
as at 31 December 2021Kibali
Primary Commodity Price$/oz1,200 
Cut-off gradeg/t
1.5(2); 1.76(4); 2.02(3)
Stoping widthcm
2990(3)
Dilution%
4.7(3); 10(2)
Mining Recovery Factor%MRF based on tonnes
91.6(3); 97(2)
Mine Call Factor%MCF97
Metallurgical Recovery Factor%MetRF
89-90(1)
(1) Vary according to rock type (2) Open pit (3) Underground (4) Stockpile

Estimation
The open pit Mineral Reserve shell optimisations were run on the Mineral Resource models. The process incorporated the mining layout, operating factors, stripping ratio, relevant cut-off grades and modifying factors for reporting the Mineral Reserve. An open pit underground interface was set at 5,685 metres relative level (“mRL”) between the KCD open pit and underground mine.

A cut-off grade analysis at $1,200/oz was used to determine a cut-off grade of 2.02g/t for the underground mine. Longitudinal and transverse longhole open stoping methods with paste backfill are the current preferred mining methods. Underground stope designs were updated from the previously reported Mineral Reserve using the latest Mineral Resource models. Modifying factors for planned and unplanned rock dilution, backfill dilution and ore loss were applied to obtain the reported Mineral Reserve.

Metallurgical, environmental, social, legal, marketing and economic factors were adequately considered in the Kibali Feasibility Study (“FS”) and have been updated as the project has developed.

Conclusion
There are no known significant risks or uncertainties that will impact the Mineral Resource and Mineral Reserve estimates.

An independent external review of the Mineral Resource and Mineral Reserve was undertaken in 2021 by RSC Mining and Mineral Exploration on behalf of the managing partner Barrick and found no significant flaws.

Map showing Kibali planned infrastructure and licences
Map showing Kibali infrastructure and licences, with the total mining lease area insert shown in the top right corner. The coordinates of the mine, as represented by the plant, are depicted on the map and are in the UTM coordinate system.





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GHANA
AngloGold Ashanti has two mines in Ghana. Obuasi and Iduapriem are both wholly owned and operated by AngloGold Ashanti.

Obuasi, currently in a redevelopment phase, is owner-managed.an underground mine operating at depths of up to 1,500m with a continuous history of mining dating back to the 1890s and Iduapriem, an open pit mine.


Obuasi is located in the Ashanti region of southern Ghana, approximately 60km south of Kumasi. Mining was temporarily suspended at the end of 2014 while a series of economic studies progressed. Obuasi underground development restarted in the first half of 2019, with the first gold produced in December 2019. The operations' ramp up to 4,000tpd of ore tonnes mined was delayed by the temporary stoppage of underground activities after a fall of ground incident in May 2021. Production remained suspended for several months to allow for reviews and investigations, but slowly resumed in the latter part of 2021.

Iduapriem is located in western Ghana, some 85km from the coast and south of Obuasi, near the town of Tarkwa.

IDUAPRIEM

Property description
Iduapriem is owned and operated by AngloGold Ashanti (Iduapriem) Limited, a company registered in Ghana. This is ultimately held by AngloGold Ashanti (Ghana) Limited (“AAGL”) which also operates the Obuasi Mine, and is also registered in Ghana. AAGL through successive hierarchal holdings is 100% held by the AngloGold Ashanti parent company. It is a multiple open pit operation that currently sources ore from the Block 3W, Ajopa, and Blocks 7 and 8 pits. More recently the Block 5 pit was re-instated in the mining plan. The property is currently in a production stage.

Location
The mine is located in the western region of Ghana, some 70km north of the coastal city of Takoradi and approximately 10km southwest of the town of Tarkwa. Iduapriem Mine is bordered to the north by Gold Fields Ghana Limited (Tarkwa Mine) and to the east by the Ghana Manganese Company Limited (a manganese mine in existence since the 1920s).

Geology
Iduapriem is located within the Tarkwaian Group which forms part of the West African Craton that is covered to a fly-in fly-out operation, with a mine site villagelarge extent by metavolcanics and aviation services operated from Perth and Kalgoorlie. A 220 kilometres private roadmetasediments of the Birimian Supergroup. In Ghana, the Birimian terrane consists of northeast-southwest trending volcanic belts separated by basins, and the public road network provide access forTarkwaian Group was deposited in these basins as shallow water deltaic sediments. The Tarkwaian lithologies are considered to represent the deliveryerosion products that accumulated following uplift and deformation of suppliesthe underlying Birimian rocks during the Eburnean orogeny. The basins (grabens) are believed to have formed as a result of rifting, preferentially in the central parts of the Birimian volcanic belts. The Tarkwaian Group consists of a thick sequence of clastic metasedimentary rocks that have undergone low-grade regional metamorphism.

There are four recognised conglomerate reefs namely A, B, C, and D which are equivalent to the operation.Tarkwaian Sub-basal, Basal (or Main), Middle (or West), and Breccia Reefs respectively. The B and C reefs are oligomictic, and consist of well-sorted conglomerates and was mined underground in some areas more than a century ago. The A and D reefs have a lower gold tenor and are polymictic containing both well-rounded and angular fragments. Gold is found within the matrix that binds the pebbles together. The gold content is a function of the size and amount (packing) of quartz pebbles present within a conglomeratic unit - more pebbles present suggests more gold. The gold is fine-grained, particulate, and free-milling (i.e. not locked up with quartz or iron oxides). Mineralogical studies indicate that the grain size of native gold particles ranges between 2 and 500 microns (0.002 to 0.5mm) and averages 130 microns (0.13mm). The thickness of the main mineralised B and C reefs are approximately 15m and 6m respectively. The mineralised sequence dips at angles varying from steep and sub-vertical, at Blocks 1 and 2, to steep (70° to 80° north dipping) towards Block 3 East. The dip continues to be shallower at Block 3 West (50°), through Blocks 4 and 5 (45°) to become 35° at Block 7 South and 30° at Block 8. At Ajopa, the average dip is 50° to 60°. At Block 7 and 8, the western limb of the syncline extends over 4km on the property, with the eastern limb reaching the surface just beyond the eastern boundary of the concession. The western and the eastern limbs outcrop about 4km apart with the mineralised horizons buried some 400m below the surface at the centre of the syncline.


The Tropicana joint venture includes approximately 3,487km2History
A FS was completed in 1990 and in October 1991, the then owners, Golden Shamrock Limited (“Golden Shamrock”) began construction of tenurea 1.36Mtpa semi-autogenous milling circuit and carbon-in-pulp (“CIP”) plant. Mining



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commenced in August 1992 with the prospective Tropicana belt,first gold pour achieved in September of that year. Golden Shamrock was acquired by Ashanti Goldfields Company Limited (“Ashanti”) in 1996. In 2000, a portion of the non-operational Teberebie Goldfields Limited company (a subsidiary of Pioneer Goldfields Limited) was purchased resulting in an increased Mineral Reserve and LOM. In 2002, Ashanti upgraded the plant capacity to 4Mtpa, and in 2004 AngloGold merged with active exploration programmes seeking both satellite extensionsAshanti to become AngloGold Ashanti. In 2009 the plant capacity was further extended to the Tropicana Goldcurrent 5.2Mtpa. The Iduapriem heap leach started in 1996 and continued until 2006 when the low-grade oxide material was depleted. Teberebie Goldfields had started heap leaching from the onset in 1992. After the acquisition, Ashanti continued the Teberebie heap leach, but it was closed down in 2006 when low-grade oxide was depleted.

Legal aspects and tenure
Refer to “Item 4B: Business Overview—The Regulatory Environment Enabling AngloGold Ashanti to Mine—Africa Region—Ghana—AngloGold Ashanti’s rights and permits”.

Mining method
Iduapriem Mine and discoveries with standalone potential. Long Island study work has been completed and currently Phase 1 has been approved for executionis an open pit mine which will see the down dip extensionmakes use of the pits mined usingmining contractor, AMAX Mining Services. It uses conventional drill and blast, with truck and excavator load and haul.

Operational infrastructure
Surface infrastructure associated with Iduapriem’s operation includes a strip mining principle.  In 2018, the Tropicana joint venture partners committed to conducting a feasibility study into the development of an underground mine beneath the Boston Shaker pit after a prefeasibility study confirmed that underground mining was technically and financially viable. The feasibility study is due to be concluded in early 2019.

Plant
The installation of a second ball mill in the Tropicanaprimary crusher, overland conveyor, CIL processing plant grinding circuit was completednext to the main office building, a TSF and commissioned in late 2018. The 6MW ball mill will enablefour camp areas for contractors and company employees. Tarkwa town is also adjacent to the annual throughput rate to increase in 2019.

tenement. Power is supplied to the mine by the Volta River Authority and Ghana Grid Company Limited (“GRIDCo”).

The Property, Plant, and Equipment as of the end of December 2021 including lease assets, buildings & mine infrastructure, mining assets, capitalised exploration costs, decommissioning assets, assets under construction and deferred stripping had a carrying value of $273m.

Mineral processing
The current processing plant treats free-milling material from open-cast mining, by a conventional crush with a semi-autogenous ball milling circuit and cyanide leach. Iduapriem operates a two-stage crushing circuit consisting of a 54-75 primary gyratory crusher and two GP550 gyratory crushers for secondary crushing. The Iduapriem treatment plant has two semi-autogeneous grinding mills (“SAG mills”) and two ball mills which run in two parallel circuits, each with a SAG mill and a ball mill.

Qualified Persons
IduapriemQualified PersonProfessional OrganisationMembership numberRelevant Years ExperienceQualification
Mineral ResourceCharles Kusi-ManuAusIMM20523831 yearsDip (Geological Engineering), MSc, MBA, Postgraduate Certificate (Geostatistics)
Mineral ReserveMashudu Justice DavhanaECSA2009005021 yearsBSc Hons (Mining Engineering)

Exploration
Refer to “Item 4B: Business Overview—Exploration review”.

Mineral Resource:
Refer to Table 1a to Paragraph (b) prepared in accordance with Regulation S-K 1300 (§ 229.1303 (Item 1303)) that summarises the gold Mineral Resource (exclusive of Mineral Reserve) for Iduapriem at the end of the Fiscal Year ended 31 December 2021 based on site gas$1,500/oz. The Mineral Resource is reported for the first time under Regulation S-K 1300 and diesel power stations, natural gasthus no net difference can be reported.

Refer to the Key Parameters under Material Assumptions for additional information on cut-off grades and metallurgical recovery. For additional information, see the Technical Report Summary on each individual property, filed as an Exhibit of this annual report on Form 20-F.







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Material Assumptions for the Mineral Resource

Key Parameters
IduapriemUnitOpen Pit
Costs
Ore mining cost$/tonne mined
1.96-2.41(1)
Waste mining cost$/tonne mined
1.96-2.41(1)
Processing cost$/tonne treated15.24
G&A$/tonne treated6.75
Other Parameters
Metallurgical Recovery Factor%MetRF95.85
Slope anglesdegree
38-62.5(1)
Mineral Resource cut-off gradeg/t
0.45-0.50(1)
Mineral Resource price$/oz1,500 
(1) Vary according to area

Estimation
The geological model for each orebody comprises 3D wireframes of the faults and of the various conglomerate reefs that host the gold mineralisation. In some cases, late barren dolerite intrusions are also modeled as 3D wireframes. The interpretations are completed using geological mapping and drill hole grades, lithology logs and structural measurements.

The drill samples are composited to 1m intervals honouring the geological boundaries, as 1m is supplied viathe prevailing length of sampling. Grade capping is applied to control the influence of extreme values within the reefs. The capping is kept to a minimum, generally not exceeding 0.5% of the samples within each estimation domain. The various sub-units within the conglomerate reefs are treated as separate estimation domains. Semi-variograms are modelled from the composited samples of each estimation domain. The grade estimation is done by ordinary kriging. The estimation panel block sizes for ordinary kriging are between 20 x 20 x 24m to 25 x 25 x 24m to optimally suit the sampling grid used in the delineation of the Indicated Mineral Resource. Sub-celling of 2.5 x 2.5 x 1m to 2.5 x 2.5 x 3m is used to ensure the geological model is captured in the block model with sufficient resolution. Search parameters are optimised for each domain to ensure robust estimates, with particular attention paid to the reduction of negative kriging weights, and improvement in the slope of regression and kriging efficiency. The maximum distance of extrapolation does not exceed half of the variogram range for each estimation domain.

Mineral Reserve
Refer to Table 2ato Paragraph (b) prepared in accordance with Regulation S-K 1300 (§ 229.1303 (Item 1303)) that summarises the gold Mineral Reserve for Iduapriem at the end of the Fiscal Year ended 31 December 2021 based on $1,200/oz.

Refer to the Modifying Factors and price estimates under Material Assumptions for additional information on cut-off grades and metallurgical recovery. For additional information, see the Technical Report Summary on each individual property, filed as an APA Operations (Pty) Limited pipeline.Exhibit of this annual report on Form 20-F.


Year on year changes in Mineral Reserve - Moz
as at 31 December 2021Iduapriem
CategoryProvenProbableTotal
Previous Year0.287 1.620 1.907 
Depletion(0.085)(0.131)(0.216)
Exploration— 0.216 0.216 
Methodology(0.162)— (0.162)
Price— — — 
Cost— 0.708 0.708 
Geotechnical— — — 
Metallurgical— — — 
Operational0.007 0.137 0.144 
Acquisition / Disposal— — — 



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Other— — — 
Current Year0.047 2.550 2.597 
Net Difference(0.240)0.930 0.690 
% Difference(84)57 36 

The net increase is primarily due to the decrease in costs resulting from signing a new mining contract and operational changes.

Material Assumptions for the Mineral Reserve

Modifying factors and price estimates
as at 31 December 2021Iduapriem
Primary Commodity Price$/oz1200
Cut-off gradeg/t
0.6-0.8(3); 0.8-0.85(2)
Resource Modification Factor%RMF based on tonnes100
Resource Modification Factor%RMF based on g/t100
Mining Recovery Factor%MRF based on tonnes
94-100(1)
Mining Recovery Factor%MRF based on g/t
96-100(1)
Mine Call Factor%MCF100
Metallurgical Recovery Factor%MetRF
93(3)-95.85(2)
(1) Vary according to area (2) Open pit (3) Stockpile

Estimation
The 3D Mineral Resource models are used as the basis for the Mineral Reserve. An ore envelope is developed using the Mineral Resource block model, geological information and the relevant cut-off grade, which is then used for mine design. An appropriate mining layout is utilised and incorporates mining extraction losses and dilution factors.

The Mineral Reserve is estimated within mine designs, using modifying factors based on actual mining and detailed analysis of cut-off grade, geotechnical, environmental, productivity considerations and the requirements of the mining fleet. The upper portions of the Ajopa deposit have been discounted for the estimated depletion by artisanal miners. This discount factor has been derived from observation and estimates based on the Mineral Resource model.

Conclusion
Power reliability, slope or high wall stability (rockfall potential), and inrush or inundation (flooding of pits, TSFs, and infrastructure) are considered potential risks or uncertainties in the Mineral Resource and Mineral Reserve estimate. Mitigation plans are in place to manage these risks.

An independent external Mineral Resource and Mineral Reserve audit was undertaken in 2021 by SRK Consulting and found no significant flaws in process or output.

Map showing Iduapriem planned infrastructure and licences: Map showing the location, infrastructure and mining license area for Iduapriem. The coordinates of the mine, as represented by the plant, are depicted on the map and are in the UTM coordinate system.




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OBUASI

Property description
Obuasi, currently in a redevelopment phase, is owned and operated by AngloGold Ashanti and is a development stage property. All required mineral rights to the property are held by the company. The mine is an underground operation, and it has been in operation since 1897 (more than 120 years). It has been owned and operated by AngloGold Ashanti since 2004.

Location
Obuasi Gold Mine is located in the municipality of Obuasi, in the Ashanti region of Ghana, about 240km northwest of the capital Accra and 60km south of Kumasi.

Geology
Geologically, Obuasi is in the Ashanti belt on the eastern margin of the Pre-Cambrian West African craton. This craton consists of Lower Proterozoic volcanic and flysch sediments which make up the Birimian system, overlain in part by the molasse sediments of the Middle Proterozoic Tarkwaian. The Ashanti belt is the most prominent of the five Birimian Supergroup gold belts found in Ghana.

Gold mineralisation at Tropicana occurs in high metamorphic grade gneissic rocks, which dip gently to the south east.  Mineralisation is structurally controlledassociated with, and occurs within, graphite-chlorite-sericite fault zones. These shear zones are commonly associated with pervasive silica, carbonate and sulphide hydrothermal alteration and occur in tightly folded Upper Birimian schists, phyllites, metagreywackes and tuffs, along the eastern limb of the Kumasi anticlinorium.

Two main ore types are present, namely quartz vein and sulphide ore. The quartz vein type consists mainly of quartz with free gold in association with lesser amounts of various metal sulphides containing iron, zinc, lead and copper. This ore type is generally nonrefractory. The sulphide ore type is characterised by the inclusion of gold in the crystal structure of arsenopyrite minerals. Higher gold grades tend to be associated with finer grained arsenopyrite crystals. The sulphide ore is generally refractory.

History
Obuasi has a preferred hostlong mining history dating back to 1897. It has been owned and operated by various operators during this time. The current operator became involved in 2004 following the merger of the former AngloGold Limited of South Africa and the Ashanti Goldfields Company Limited of Ghana. However, for several years leading up to 2014, the mine began to struggle due to ailing infrastructure and outdated methodologies. It was realised that significant rationalisation and/or replacement of current infrastructure would be necessary to enable the delivery of better utilisation and productivity metrics.

In 2014, a FS commenced that considered the optimum mining methodology and schedules for the underground mine, based on modern mechanised mining methods and refurbishment of underground, surface and process plant infrastructure. During this time, Obuasi operated in a limited operating phase with underground activities essentially restricted to continued development of the Obuasi deeps decline and underground infill drilling. The limited operating phase was brought to a halt after an incursion by illegal miners on Obuasi's concession in February 2016 at which point the mine was placed under care and maintenance. The study however continued and in 2017, a favorable FS was completed and indicated a strong technical and economical case with an anticipated 20-year mine life. In 2018 approval was received from the AngloGold Ashanti board and the government of Ghana to proceed with the project. The redevelopment project kicked off in 2019.

The operations' ramp up to 4,000tpd of ore tonnes mined was delayed by the temporary stoppage of underground activities after a fall of ground incident in May 2021. Production remained suspended for several months to allow for reviews and investigations, but slowly resumed in the latter part of 2021.

Legal aspects and tenure
Refer to “Item 4B: Business Overview—The Regulatory Environment Enabling AngloGold Ashanti to Mine—Africa Region—Ghana—AngloGold Ashanti’s rights and permits”.

Mining method
Obuasi is an underground operation utilising both vertical shafts and declines as main access routes to the underground workings. The mine has seen extensive historical mining activities with varying applications of different mining methods to date. The current LOM design employs mostly the Long Hole Open Stoping (“LHOS”) mining method for ore extraction. LHOS is a highly selective and productive method of mining that can be employed for



110

orebody of varying thicknesses and dips. The three main distinct variations of the LHOS used at Obuasi are Longitudinal Retreat Stoping (“LRS”), Longitudinal Open Stoping (“LOS”) and Transverse Open Stoping (“TOS”). The Blind Upper Stoping (“BUS”) is a form of LRS or TOS used for partial sill pillar recovery.

Operational infrastructure
Existing infrastructure includes a 2.2Mtpa processing plant with flotation and bacterial oxidation (“BIOX”), underground development, hoisting shafts and associated infrastructure, emergency standby power and water reticulation, office complexes, workshops and company housing estates. Power is supplied to the mine by the Volta River Authority and GRIDCo.

The Property, Plant, and Equipment as of the end of December 2021 including buildings & mine infrastructure, mining assets, decommissioning assets and assets under construction had a carrying value of $882m.

Mineral processing
The plant is configured for both conventional and flash flotation and BIOX treatment which is required for the refractory sulphide ore. The gravity gold recovery system is also an integrated system with Knelson concentrators and inline leach reactors.

Qualified Persons
ObuasiQualified PersonProfessional OrganisationMembership numberRelevant Years ExperienceQualification
Mineral ResourceEmmarentia MaritzSACNASP11834518 yearsMSc (Mineral Resource Evaluation)
Mineral ReserveDouglas AtangaAusIMM33439113 yearsBSc (Mining Engineering)

Exploration
Refer to “Item 4B: Business Overview—Exploration review”.

Mineral Resource
Refer to Table 1a to Paragraph (b) prepared in accordance with Regulation S-K 1300 (§ 229.1303 (Item 1303)) that summarises the gold Mineral Resource (exclusive of Mineral Reserve) for Obuasi at the end of the Fiscal Year ended 31 December 2021 based on $1,500/oz. The Mineral Resource is reported for the first time under Regulation S-K 1300 and thus no net difference can be reported.

Refer to the Key Parameters under Material Assumptions for additional information on cut-off grades and metallurgical recovery. For additional information, see the Technical Report Summary on each individual property, filed as an Exhibit of this annual report on Form 20-F.

Material Assumptions for the Mineral Resource

Key Parameters
ObuasiUnitUnderground
Costs
Mining cost$/tonne mined
59.52-98.01(1)
Processing cost$/tonne treated42.06
G&A$/tonne treated22.92
Other Parameters
Royalties%3.0
MSO optimising cut-offg/t
3.15-4.0(1)
Mineral Resource cut-off gradeg/t
3.15-4.0(1)
Mineral Resource price$/oz1,500 
Metallurgical Recovery Factor%MetRF87
(1) Vary according to area

Estimation
The estimation technique is ordinary kriging and the primary estimation unit size is 20m by 5m by 15m. This estimation unit size is representative of the underground mining units and is considered appropriate given the style of mineralisation and mining methods. Compositing by length is employed and the influence of extreme grades are



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restricted by grade capping. Sample spacing is highly variable across the deposit and ranges from 10m by 10m (for grade control areas) up to 200m by 200m (for exploration targets). However, for the Mineral Resource, the maximum extrapolation from data points is 100m. Any areas beyond this, are considered to be upside potential rather than Mineral Resource.

Mineral Reserve
Refer to Table 2ato Paragraph (b) prepared in accordance with Regulation S-K 1300 (§ 229.1303 (Item 1303)) that summarises the gold Mineral Reserve for Obuasi at the end of the Fiscal Year ended 31 December 2021 based on $1,200/oz.

Refer to the Modifying Factors and price estimates under Material Assumptions for additional information on cut-off grades and metallurgical recovery. For additional information, see the Technical Report Summary on each individual property, filed as an Exhibit of this annual report on Form 20-F.

Year on year changes in Mineral Reserve - Moz
as at 31 December 2021Obuasi
CategoryProvenProbableTotal
Previous Year— 8.733 8.733 
Depletion— (0.086)(0.086)
Exploration— — — 
Methodology1.186 0.010 1.196 
Price— — — 
Cost— — — 
Geotechnical— — — 
Metallurgical— — — 
Operational— (1.580)(1.580)
Acquisition / Disposal— — — 
Other— — — 
Current Year1.186 7.078 8.263 
Net Difference1.186 (1.655)(0.470)
% Difference100 (19)(5)

Operational changes were primarily associated with design reviews in historically mined areas to eliminate low confidence stopes resulted in a net decrease. This was offset partially by methodology change due to geological re-interpretation and revision of estimation parameters in Adansi resulting in addition to the Mineral Reserve.

Material Assumptions for the Mineral Reserve

Modifying factors and price estimates
as at 31 December 2021Obuasi
Primary Commodity Price$/oz1200
Cut-off gradeg/t
3.82-5.01(1)
Dilution%
12-17(1)
Mining Recovery Factor%MRF based on tonnes
95-98(1)
Mining Recovery Factor%MRF based on g/t100
Mine Call Factor%MCF100
Metallurgical Recovery Factor%MetRF87
(1) Vary according to area

Estimation
The Mineral Reserve estimation considers mining criteria for the economic cut-off grade and minimum mining width for the anticipated mining method. All design and scheduling work is undertaken to an applicable level of detail by mine planning engineers in consultation with other technical specialists using Datamine Studio UGTM and Enhanced Production SchedulerTM (“EPS”) software.




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The cut-off grade parameters used include projected mining, processing, and general and administrative costs. A Mineral Reserve gold price of $1,200/oz was used. The cut-off grade also considers the metallurgical recovery factor (87% applied for all blocks), mining dilution and recovery, and tonne-kilometer haulage cost from all blocks as well as the fill type.

Stopes are designed using the Datamine Mineable Shape OptimiserTM (“MSO”) Software where the outputs are further optimised by manual edits. The stope shapes are generated at section internals of 15 to 20m based on geotechnical guidance for each block. The MSO allows the class field to be assigned to each stope generated. The mine design is reviewed taking into consideration the updated stope shapes, existing development and future infrastructure need. A LOM plan is generated which considers fleet and infrastructure capacities. All mining blocks are designed for the LHOS mining method. The Obuasi Mineral Reserve is reported from the LOM plan and only includes Measured and Indicated Mineral Resource.

Conclusion
All available, appropriate data has been used for Mineral Resource estimation. This includes historical geological and survey data collected over several decades prior to the merger of AngloGold and Ashanti in 2004. The risk or uncertainty in the estimates associated with the inclusion of the historical geological data has been mitigated by a comprehensive data validation project completed by a team of geologists between 2015 and 2018, which included the re-logging of all available holes below 50 Level. With regards to the historical survey data, given the mine's long history, there is uncertainty in the reliability of some of the previous mining volumes. Certain measures have been taken to lessen this risk including large-scale sterilisations for unreachable or extensively mined areas, or downgrades to the Inferred Mineral Resource category to reflect reduced confidence. However, verification of this historical information is ongoing and there may be additions and subtractions over time as further assessments are made, areas become accessible and more detailed investigations can be undertaken.

An independent external Mineral Resource and Mineral Reserve audit was undertaken in 2021 by SRK Consulting and found no significant flaws in process or output.

Map showing Obuasi planned infrastructure and licences
Map showing the location, infrastructure and mining license area for Obuasi. The coordinates of the mine, as represented by the plant, are depicted on the map and are in the UTM coordinate system.




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GUINEA

Siguiri Gold Mine (“Siguiri”) is AngloGold Ashanti’s only operation in the Republic of Guinea. The mine is 85% owned by AngloGold Ashanti and 15% by the government of Guinea. The mine is a conventional open pit operation situated in the Siguiri district in the northeast of Guinea. It lies about 850km north-northeast of the capital city of Conakry and 109km west of the border with Mali by road.

Gold-bearing ore is mined from several pits (generally three pits at any one time). A plant upgrade to process hard rock was completed in 2018 and production ramped up during 2019. In 2020 the mine continued to remove bottlenecks and optimise the plant. The project was closed out early in 2021.

SIGUIRI

Property description
Siguiri, in Guinea, is 85% owned and operated by AngloGold Ashanti and 15% by the government of Guinea. It is an open pit operation with active mining currently occurring largely in Kami, Bidini and Tubani pits in Block 1. In the first quarter of 2021, mining commenced in Block 2, exploiting the newly developed Foulata and Saraya pits. The property is currently in a production stage.

Location
The mine is located approximately 850km north-northeast of Conakry, 25km northwest of the town of Siguiri and 220km southeast of the Malian capital Bamako, near the Malian border.

Geology
Siguiri is situated in the northern part of the Siguiri Basin of Guinea, and is underlain by Lower Proterozoic rocks of the Birimian metasedimentary and volcano-sedimentary formations. Where exposed, the sediments consist of a well-bedded turbiditic sequence of greenschist facies siltstones, sandstones, greywackes and minor conglomerates, with some brecciated and possibly volcanic members. Stratigraphic relationships in the area are however poorly understood due to poor exposure and a thick lateritic duricrust which covers large portions of the lease.

Primary gold mineralisation occurs in all three lithostratigraphic units of the Siguiri region although most of the known mineralisation is found in the central and more competent Fatoya Formation. In some deposits, the mineralisation shows strong lithological control and is preferentially developed in coarser-grained units that have higher fracture or vein densities relative to fine-grained rocks.

The mineralisation dominantly follows sub-vertical north-south thrusts, northeast to southwest dextral shear zones, and west-northwest to east-southeast sinistral faults associated with the main (D2) deformation event. The mineralised veins are remarkable for the relative consistency of their northeast orientation, despite the highly variable orientation of bedding and major structures.

Mineralised veins are more intensely developed along major structural trends with quartz-carbonate-sulphide veining developed along structures. Some of these structures have developed as incipient faults and are represented by discrete stockworks of mineralised quartz-carbonate veins occurring along a trend, instead of being clearly defined continuous structures.

History
First gold mining can be traced back to the first great West African Empire, the Sarakolle Kingdom, but there are no reliable records of pre-western production. The French became involved in the area in the late 19th and early 20th centuries. Between 1931 and 1951, the French reported gold coming out of Siguiri, with figures varying between 1t and 3.8t annually however, little exploration work was completed.

There was a phase of Russian exploration in the area between 1960 and 1963. The Russian work focused on the placer deposits along the major river channels in the area. In 1980, Société Miniere Internationale du Quebéc (“SOMIQ”) gained the exploration rights for Siguiri and Mandiana. SOMIQ focused its work on the Koron and Didi areas. The Chevaning Mining Company Limited was then created to undertake a detailed economic evaluation of the prospect, with more intensive work beginning in the late 1980s.

Société Aurifere de Guinea (“SAG”) took over from its predecessors and continued work on the placer deposits. Production on the Koron placer reached a peak in 1992 with 1.1t gold being produced, although due to a number of difficulties, the mine was shut down later that year.



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In the mid-1990s, Golden Shamrock acquired and operated the project as an open pit and heap leach. In October 1996, Golden Shamrock was acquired by Ashanti Goldfields Corporation which operated Siguiri as a heap leach until 2004. Ashanti merged with AngloGold in 2004 to become AngloGold Ashanti. AngloGold Ashanti completed the design and construction of the 8.5Mtpa saprolite soft rock treatment plant and commissioned it in 2005. The capacity was later increased to 12Mtpa.

A Siguiri combination plant FS based on the requirement to process fresh and transitional material in combination with existing oxide material was completed in 2015. The combination plant conversion project began in 2017. The plant conversion allows the mine to treat 6Mtpa of sulphide ore and 6Mtpa of oxide ore. Construction was completed in 2018 and further optimisation and debottlenecking of the plant continues.

Legal aspects and tenure
Refer to “Item 4B: Business Overview—The Regulatory Environment Enabling AngloGold Ashanti to Mine—Africa Region—Guinea—AngloGold Ashanti’s rights and permits”.

Mining method
Siguiri is currently a multi-pit fresh rock and oxide gold mining operation, mined by a contract miner, Mota-Engil. The mining method is selective conventional mining using excavators and trucks on 3m high flitches. Three Caterpillar 6020B excavators are the main loading equipment matched with Caterpillar 777G dump trucks. In some deposits, a selective mining unit (“SMU”) of 10 x 10 x 3m has been defined based on historical grade control, the deposit type, and the mining equipment used to simulate the expected mining dilution and ore losses.

Operational infrastructure
Siguiri includes a processing plant, a TSF, and other infrastructures such as a mine village, a water supply system, roads, power supply by on-site generators, and communications systems. Additional infrastructure includes on-site offices, accommodation, and workshops to support remote mining. Power to the mine is self-generated using Heavy Fuel Oil.

The town of Siguiri can be accessed via a small airfield and a well-paved road that connects Siguiri to Bamako in the north and Kouroussa in the south. Access to the mine via roads and to Siguiri is easily passable through most of the year, although some secondary roads are seasonal with limited access during the wet season.

The Property, Plant, and Equipment as of the end of December 2021 including lease assets, buildings & mine infrastructure, capitalised exploration costs, mining assets and assets under construction had a carrying value of $216m (reported as 100%, 85% owned by AngloGold Ashanti).

Mineral processing
The current processing plant treats both oxide and fresh sulphide material via a hybrid CIL circuit plant converted from CIP in 2018. The plant is capable of processing blends of hard and soft ore post commissioning a new ball mill and three-stage crushing plant in 2019. Unit operations include comminution, leaching, carbon adsorption and desorption, smelting, and tailings disposal. Further modification of three leach tanks to CIL tanks was done in the fourth quarter of 2020 giving a total of seven tanks in the hybrid circuit.

The processing plant conventional mining was designed to process 12Mtpa but is forecast to treat 11.6Mtpa in the 2022 business plan.

Qualified Persons
SiguiriQualified PersonProfessional OrganisationMembership numberRelevant Years ExperienceQualification
Mineral ResourceAdama SissokoAusIMM22483528 yearsBSc Hons (Geology), GDE (Mining Engineering)
Mineral ReserveDesiderius KamugishaAusIMM22718120 yearsBSc (Mining Engineering)

Exploration
Refer to “Item 4B: Business Overview—Exploration review”.





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Mineral Resource
Refer to Table 1a to Paragraph (b) prepared in accordance with Regulation S-K 1300 (§ 229.1303 (Item 1303)) that summarises the gold Mineral Resource (exclusive of Mineral Reserve) for Siguiri at the end of the Fiscal Year ended 31 December 2021 based on $1,500/oz. The Mineral Resource is reported for the first time under Regulation S-K 1300 and thus no net difference can be reported.

Refer to the Key Parameters under Material Assumptionsfor additional information on cut-off grades and metallurgical recovery. For additional information, see the Technical Report Summary on each individual property, filed as an Exhibit of this annual report on Form 20-F.

Material Assumptions for the Mineral Resource

Key Parameters
SiguiriUnitOpen Pit
Costs
Ore mining cost$/tonne mined
2.39-5.83(1)
Waste mining cost$/tonne mined
1.65-3.74(1)
Processing cost$/tonne treated
10.72-13.17(1)
G&A$/tonne treated7.28
Rehandling Cost$/tonne treated
0.35-11.43(1)
Other Parameters
Metallurgical Recovery Factor%MetRF
80.5-88.0(1)
Slope anglesdegree
25-55(1)
Mineral Resource cut-off gradeg/t
0.4-0.6(1)
Mineral Resource price$/oz1,500 
(1) Vary according to rock type / area

Estimation
Mineral Resource definition drilling is done with aircore drilling (“AC”), RC and DD. All available geological drill hole information is validated for used in the Mineral Resource models and together with the local geology of the deposit, an understanding of grade variability is used to categorise the drill hole information into appropriate estimation domains. Detailed statistical analyses are conducted on each of these domains which allows for the identification of high-grade outlier values which are capped, with some models post processed using LUC.

The Mineral Resource model is estimated using ordinary kriging into a 3D block model. Geological interpretation is based on geological drill hole data. The dimensions of these Mineral Resource blocks range from 10 x 10 x 2.5m to 50 x 25 x 6m block sizes, guided by the shape of the deposit and the drilling density. The Mineral Resource is declared within an optimised Mineral Resource pit shell using a gold price of $1,500/oz.

Mineral Reserve
Refer to Table 2ato Paragraph (b) prepared in accordance with Regulation S-K 1300 (§ 229.1303 (Item 1303)) that summarises the gold Mineral Reserve for Siguiri at the end of the Fiscal Year ended 31 December 2021 based on $1,200/oz.

Refer to the Modifying Factors and price estimates under Material Assumptions for additional information on cut-off grades and metallurgical recovery. For additional information, see the Technical Report Summary on each individual property, filed as an Exhibit of this annual report on Form 20-F.

Year on year changes in Mineral Reserve - Moz
as at 31 December 2021Siguiri
CategoryProvenProbableTotal
Previous Year0.352 1.540 1.892 
Depletion0.013 (0.293)(0.280)
Exploration— 0.085 0.085 
Methodology— 0.276 0.276 



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Price— — — 
Cost— (0.352)(0.352)
Geotechnical— — — 
Metallurgical— (0.196)(0.196)
Operational— (0.002)(0.002)
Acquisition / Disposal— — — 
Other— 0.218 0.218 
Current Year0.365 1.276 1.641 
Net Difference0.013 (0.264)(0.251)
% Difference4 (17)(13)

The decrease was primarily due to an increase in cost, and a decrease in fresh and transitional metallurgical recoveries. This was partially offset by revised modelling at Kami Mineral Resource and a maiden Kami extension Mineral Reserve.

Material Assumptions for the Mineral Reserve

Modifying factors and price estimates
as at 31 December 2021SiguiriOxideTransitionalSulphideStockpile
Primary Commodity Price$/oz1200120012001200
Cut-off gradeg/t0.65-1.00.8-1.20.8-1.2-
Dilution%16.7-81.521.2-50.933.7-37.3-
Dilutiong/t0.15-0.300.23-0.440.23-0.46-
Resource Modification Factor%RMF based on tonnes100100100100
Resource Modification Factor%RMF based on g/t909090100
Mining Recovery Factor%MRF based on tonnes78.1-89.570.3-88.496.1-98.0100
Mining Recovery Factor%MRF based on g/t98.0-104.6101.5-103.8100.7-101.7100
Mine Call Factor%MCF100100100100
Metallurgical Recovery Factor%MetRF88808085-88

Estimation
The Mineral Resource models for each pit are depleted with surveys of actual mining to the end of September 2021 and forecast depletions to the end of 2021. Costs are assigned on a pit-by-pit basis, reflecting the existing cost structure of the operation. The relevant dilution and ore-loss factors are applied and pit optimisation is then performed.

Conclusion
The favourable conclusion of the Convention de Base negotiation during 2016 and its ratification in 2017 by parliament has significantly reduced the risk or uncertainty of the remaining estimated Mineral Resource and Mineral Reserve not being covered by a valid mining concession. The current mining concession is now confirmed to be valid until 4 August 2022, with a high likelihood of renewal until 2041.

Some significant risks had been identified at combination plant FS stage and continue to be risks that could prevent reasonable prospects for economic extraction of the estimated Mineral Resource and Mineral Reserve. However, mitigation plans are in place to reduce the impact of those risks.

Performance of the combination plant to achieve the required mill throughput and recovery are seen as a risk to the economic extraction of the estimated Mineral Resource and Mineral Reserve until the plant stabilises. There are several action plans in progress to address this.

The reviewing of the modelling methodology for improved consistency within the gneissic package.  PostMineral Resource models is also in progress.






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Map showing Siguiri planned infrastructure and licences
Map showing the location, infrastructure and mining license area for Siguiri. The coordinates of the mine, as represented by the plant, are depicted on the map and are in the UTM coordinate system.
au-20211231_g10.jpg

TANZANIA

Geita, one of AngloGold Ashanti’s flagship mines, is located in northwestern Tanzania, in the Lake Victoria goldfields of the Mwanza region, about 120km from Mwanza and 4km west of the town of Geita. The Geita gold deposits are mined as a multiple open pit and underground operation, with ore production from Star and Comet, Nyankanga and Geita Hill underground mines, and from Nyamulilima open pit. The mine is currently serviced by a CIL processing plant with an annual capacity of 5.2Mt.

Geita has been an open pit mining operation from 1999, with underground operations commencing at Star and Comet in 2016, at Nyankanga in 2017 and at Geita Hill in 2020. Underground ore is now a significant part of the feed to the plant. The Nyankanga open pit was completed in late 2020, with the new Nyamulilima open pit commencing in April 2021, providing four sources of ore to the Geita processing plant.

GEITA

Property description
Geita Gold Mine (“GGM”) is wholly owned and operated by Geita Gold Mining Limited (“GGML”), a subsidiary of AngloGold Ashanti Limited. GGM currently has three underground mines (Star and Comet, Nyankanga and Geita Hill) and one open pit (Nyamulilima Cuts 1 and 2) in production in 2021. The property is currently in a production stage.

Location
GGM is located approximately 1,200km from the main Tanzanian business centre of Dar es Salaam. It falls within the Lake Zone of northwestern Tanzania, approximately 120km west of Mwanza and 4km west of the town of Geita. The mining lease area falls within the Archaean Sukumaland Greenstone Belt of the Lake Victoria goldfields.



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Geology
GGM is hosted in the Geita Greenstone Belt (“GGB”), which is a northern segment of the Sukumaland Greenstone Belt, located in the northwestern part of the Tanzania Craton and south of Lake Victoria. This Archaean sequence strikes almost east west, extending for about 80km and is up to 20km wide. The GGB sits dominantly within the Nyanzian Supergroup stratigraphy that is sub-divided into the Lower Nyanzian and the Upper Nyanzian groups.

The Lower Nyanzian Group is composed of mafic volcanic units (basalts, pillow basalt, minor gabbro and dolerites). This group of rocks within the GGB is collectively termed the Kiziba Formation. The Upper Nyanzian Group consists of black shales, banded iron formation, clastic sedimentary rock, tuffs, agglomerates and felsic volcaniclastics. The entire package (Nyanzian stratigraphy) is intruded by a variety of mafic to felsic rocks. The supra-crustal package shows variable thickness and is estimated to be more than 500m thick in places, mostly underlain by intrusive complexes.

Deformation in the GGB comprises of early stages of ductile shearing and folding (D1 to D5), with periodic emplacement of large diorite intrusive complexes, sills, and dykes. Later stages of deformation (D6 to D8) involved development of brittle-ductile shear zones, with faults developed in the later stages of deformation, with late emplacement felsic porphyry dykes within the greenstone belt, and granitic intrusions located on the margins of the greenstone belt.

Gold mineralisation faultingoccurred late in the tectonic history of the greenstone belt, synchronous with the development of brittle-ductile shear zones (D6). Mineralisation is dominantly sulphide replacement of magnetite-rich layers in ironstone, with local replacement of ferromagnesian phases and magnetite in the diorite intrusions. Primary gold mineralisation is associated with the intersection of the brittle-ductile shear zones and pre-existing fold hinges, with higher grade concentrations associated with banded iron formation lithologies and with diorite dyke and sill contacts.

History
Gold mineralisation is reported to be first discovered in the Geita district in 1898 by a German prospector. A regional survey by a Kenyan company, Saragura Prospecting Syndicate, followed in 1930. The first mine was developed in 1934, and between 1936 and 1966, the Geita Mine was the largest gold mine in East Africa, producing 1Moz of gold from underground operations.

In 1996, Ashanti acquired Geita through acquisition of Cluff Resources, and acquired the Kukuluma and Matandani in 1998 from Samax Resources Limited. In December 2000, Ashanti reached an agreement to sell AngloGold a 50% interest in Geita for $324 million. AngloGold added its neighbouring Nyamulilima Hill deposits into the JV company. In 2004, the merger of AngloGold and Ashanti resulted in the operation being wholly run by AngloGold Ashanti.

GGM commenced open pit mining in 1999, with open pit mining at Nyankanga between 1999 and 2020, at Geita Hill between 2001 and 2019, at Kukuluma and Matandani between 2002 and 2007, and at Star and Comet between 2007 and 2014. In 2015, a decision was taken to go underground at Star and Comet and the underground development started in 2016. In 2017 the Nyankanga underground operation commenced and in 2020 the Geita Hill underground commenced and is scheduled to ramp up to full production by the end of 2022.

The Nyankanga open pit, the only remaining operating pit at the time, was mined to completion in September 2020. In April 2021, the Nyamulilima open pit commenced operations.

Legal aspects and tenure
Refer to “Item 4B: Business Overview—The Regulatory Environment Enabling AngloGold Ashanti to Mine—Africa Region—Tanzania—AngloGold Ashanti’s rights and permits”.

Mining method
Mining at Geita uses both open pit and underground mining methods. Open pit mining at Nyankanga Cut 8 was completed in 2020. The Nyamulilima open pit commenced production in April 2021 and will reach full production during 2022. Open pit mining is by conventional truck and shovel methods, where production mining equipment is operated by GGM with Capital Mining Services Tanzania Limited providing production and grade control drilling services, and Orica providing blasting and explosives services. Underground mining commenced at Star and Comet in 2016 and subsequently at Nyankanga in 2017 and most recently Geita Hill in 2020. Star and Comet underground has separatedsuccessfully transitioned to owner mining and the once continuousmining contractor African Underground Mining Services is used at Nyankanga and Geita Hill for underground development and stoping. The underground mining method is a combination of LOS and TOS. Cemented aggregate fill backfill is used at Nyankanga to fill the primary stopes. Ore is



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hauled from the Nyamulilima open pit (22km) and from Star and Comet (17km), Nyankanga (4km) and Geita Hill (2km) underground operations to the central run of mine (“ROM”) pad by the Geita surface mining fleet.

Operational infrastructure
Surface infrastructure associated with the overall Geita operation includes a 5.2Mtpa CIL processing plant, TSF, camp, airstrip, 40MW power plant, open pit and underground workshops and offices, contractor yards, backfill plants and explosives suppliers.

The Property, Plant, and Equipment as of the end of December 2021 including lease assets, buildings & mine infrastructure, mining assets, capitalised exploration costs, decommissioning assets, assets under construction and deferred stripping had a carrying value of $348m.

Mineral processing
Geita’s ore zone,processing method is via conventional CIL process with a throughput capacity of 5.2Mtpa. The circuit contains a primary gyratory crusher, secondary and tertiary crushers, a semi-autogenous mill, a ball mill and 12 leach tanks. This is coupled with a gravity circuit using two Knelson concentrators. In planning, the plant feed blend material, hardness grade, oxide and sulphide content are considered in order to optimise throughput and recovery. Power to the mine is self-generated at Geita’s 40MW power plant using diesel generators.

Qualified Persons
GeitaQualified PersonProfessional OrganisationMembership numberRelevant Years ExperienceQualification
Mineral ResourceDamon ElderAusIMM20824025 yearsBSc Hons (Geology)
Mineral ReserveDuan CampbellECSA20210195319 yearsBEng (Mining)

Exploration
Refer to “Item 4B: Business Overview—Exploration review”.

Mineral Resource
Refer to Table 1a to Paragraph (b) prepared in accordance with Regulation S-K 1300 (§ 229.1303 (Item 1303)) that summarises the gold Mineral Resource (exclusive of Mineral Reserve) for Geita at the end of the Fiscal Year ended 31 December 2021 based on $1,500/oz. The Mineral Resource is reported for the first time under Regulation S-K 1300 and thus no net difference can be reported.

Refer to the Key Parameters under Material Assumptions for additional information on cut-off grade and metallurgical recovery. For additional information, see the Technical Report Summary on each individual property, filed as an Exhibit of this annual report on Form 20-F.

Material Assumptions for the Mineral Resource

Key Parameters
GeitaUnitOpen Pit
Costs
Ore mining cost$/tonne mined2.96
Waste mining cost$/tonne mined2.89
Material handling$/tonne mined3.18
Processing cost$/tonne treated16.9
G&A$/tonne treated9.92
Other Parameters
Metallurgical Recovery Factor%MetRF92
Slope anglesdegree55
Mineral Resource cut-off gradeg/t0.8
Mineral Resource price$/oz1,500 
Royalties%7.3 




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GeitaUnitUnderground
Costs
Production (Mining cost)$/tonne ore mined
28.50-80.93(1)
Mine Services$/tonne ore mined19.51 
Processing cost$/tonne treated
17.81-18.74(2)
Other Parameters
Mineral Resource cut-off gradeg/t
1.69-2.94(2)
Mineral Resource price$/oz1,500 
Metallurgical Recovery Factor%MetRF
78-91(1)
Royalties%7.3 
(1) Mining cost includes backfilling at Nyankanga, and material handling costs (2) Variable according to area
(3) %MetRF - Star and Comet Cut 3, 77.8%, Star and Comet Cut 2, 88.3%, Nyankanga 90.7%, Geita Hill 87.2%

Estimation
For the open pits, developedmineralisation boundaries for the individual deposits are defined from detailed logging of all geological drill holes. This information is validated and then geological wireframes are interpreted to create a 3D geological model. The geological model is subsequently used in conjunction with an appropriately dimensioned block model. Ordinary kriging is used to interpolate values into block models, and UC and LUC methods are used to generate a recoverable Mineral Resource block model which estimates the proportion of ore that occurs above the Mineral Resource cut-off grade assuming a specified SMU. The open pit Mineral Resource is reported within a $1,500/oz optimised pit shell and above the calculated mineralised waste cut-off grade per pit. Stockpiled material above mineralised waste cut-off grade is included in the Mineral Resource.

For the underground Mineral Resource, the geological model is generated in the same way as for the open pits. However, a high-grade wireframe is delineated within the broader, lower-grade mineralised envelope. In this instance, all geological controls are adhered to when determining this domain. Ordinary kriging models are then constructed within the low- and high-grade domains, and numerous validation exercises are completed to ensure robust estimates are achieved. The underground Mineral Resource is reported inside a MSO volume generated using a unique underground cut-off grade for each deposit. The ultimate open pit designs are used as the limiting boundaries between the open pits and underground during model compilation. The underground stopes and development are evaluated using the ordinary kriging block models and the open pit designs are evaluated using the LUC block models.

Stockpiled material above mineralised waste cut-off grade is included in the Mineral Resource.

Mineral Reserve
Refer to Table 2ato Paragraph (b) prepared in accordance with Regulation S-K 1300 (§ 229.1303 (Item 1303)) that summarises the gold Mineral Reserve for Geita at the end of the Fiscal Year ended 31 December 2021 based on $1,200/oz.

Refer to the Modifying Factors and price estimates under Material Assumptions for additional information on cut-off grades and metallurgical recovery. For additional information, see the Technical Report Summary on each individual property, filed as an Exhibit of this annual report on Form 20-F.

Year on year changes in Mineral Reserve - Moz
as at 31 December 2021Geita
CategoryProvenProbableTotal
Previous Year— 2.337 2.337 
Depletion— (0.508)(0.508)
Exploration— 0.640 0.640 
Methodology— — — 
Price— — — 
Cost— 0.021 0.021 
Geotechnical— — — 
Metallurgical— 0.003 0.003 



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Operational— 0.245 0.245 
Acquisition / Disposal— — — 
Other0.091 (0.184)(0.093)
Current Year0.091 2.554 2.646 
Net Difference0.091 0.218 0.309 
% Difference100 9 13 

The significant increase is mainly due to ongoing exploration drilling success resulting in larger pit designs. The open pit shell and underground stope design changes contributed to an increase of 27% and 3% to the Mineral Reserve respectively.

Material Assumptions for the Mineral Reserve

Modifying factors and price estimates
as at 31 December 2021Geita
Primary Commodity Price$/oz1200
Cut-off gradeg/t
1.20(2)-3.48(3)
Stoping widthcm
450-2500(3)
Dilution%
7.4(2);10-22(3)
Resource Modification Factor%RMF based on tonnes
90(2)-100(3)
Resource Modification Factor%RMF based on g/t
90(2)-100(3)
Mining Recovery Factor%MRF based on tonnes
92-95(1)
Mining Recovery Factor%MRF based on g/t
92-95(1)
Mine Call Factor%MCF99
Metallurgical Recovery Factor%MetRF
77.8-92(1)
(1) Vary according to rock type / area (2) Open pit (3) Underground

Estimation
The Mineral Resource models are used as the basis for Mineral Reserve estimation. Input parameters for estimating the Mineral Reserve include gold price, mining dilution and recovery, geotechnical information, stay in business capital, operating costs, metallurgical recovery, processing capacity and mining equipment capacities.

Appropriate Mineral Reserve cut-off grades are applied and optimised pit shells are generated for the open pit sources. Pit designs are then done on selected shells and signed off by all relevant parties to ensure compliance to specifications. Underground designs are completed and evaluated. These designs are incorporated into the production and treatment scheduling stages to yield ore tonnes and grades. Financial evaluations are completed for production and treatment schedules to check cash flow analysis from the estimated Mineral Reserve.

The Mineral Reserve for Geita operating prospective pits and underground mine areas was estimated using updated economic factors, latest Mineral Resource models, geological, geotechnical, mining engineering and metallurgical parameters. Environmental, sociopolitical, legal and regulatory factors are also considered.

Conclusion
No significant risks or uncertainties were identified that would prevent reasonable prospects of economic extraction of the fault bounded blocks.estimated Mineral Resource and Mineral Reserve. GGM does have a risk management process in place whereby operational risk is identified, mitigated and managed.



The addition of Nyamulilima Cuts 1 and 2 to the existing underground operations reduces the Mineral Reserve risk at Geita. The key is to have both open pit and underground operations in progress. Mitigating actions put in place focus on optimising the exploration and project plans to convert both surface and underground Mineral Resource to Mineral Reserve. Other risks to the Mineral Reserve include, reduced underground production efficiencies when transitioning to owner mining in selected areas, ball mill and crusher plant integrity and Mineral Resource to Mineral Reserve conversion.
THE




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Map showing Geita planned infrastructure and licences
Map showing the location, infrastructure and mining license area for Geita Gold Mine. The coordinates of the mine, as represented by the plant, are depicted on the map and are in the UTM coordinate system.
au-20211231_g11.jpg

AMERICAS


The Americas region incorporates two mining jurisdictions: Brazil and Argentina, and greenfields projects in Colombia and the USA. AngloGold Ashanti has three operations in the Americas, the Cerro Vanguardia Mine in Argentina (AngloGold Ashanti 92.5% and Fomento Minero de Santa Cruz Sociedad del Estado (“Fomicruz SE”) 7.5%), AngloGold Ashanti Córrego do Sítio Mineração operations (referred to as “AGA Mineração”) which includes the Cuiabá, Lamego and Córrego do Sítio (“CdS”) Mines, and Mineração Serra Grande (referred to as “Serra Grande”), both in Brazil.

The projects in Colombia form a significant contribution to AngloGold Ashanti’s Mineral Resource with the three projects: La Colosa, Quebradona and Gramalote (AngloGold Ashanti 50% and B2Gold 50%) contributing 38.4Moz.

Gramalote declared a maiden Mineral Reserve in 2017 and Quebradona declared a maiden Mineral Reserve in 2018. Quebradona contributes 2.6Moz to AngloGold Ashanti’s gold Mineral Reserve and Quebradona has a copper Mineral Reserve of 3,250Mlb. Both Quebradona and Gramalote are at various stages of FS. Quebradona is planned as a copper mine with gold and silver as by-products.

A maiden Mineral Resource at Silicon in the USA totalling 3.4Moz was declared in 2021.

ARGENTINA


Argentina - Cerro Vanguardia,

Description
in which AngloGold Ashanti has a 92.5 percent interest92.5% stake, is its sole operation in Cerro Vanguardia withArgentina. Fomicruz owningSE, a state company, owns the remaining 7.5 percent.7.5%. Located to the northwest of Puerto San JulianJulián, in the province of Santa



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Cruz, Cerro Vanguardia operates multiple small open pits with high stripping ratios and multiple narrow-vein underground mines. The metallurgical plant, which includes a cyanide recovery facility, has a daily capacity of 3,000t. Cerro Vanguardia has been in operation for more than 20 years. Silver is produced as a by-product.

CVSA

Property description
Cerro Vanguardia is a gold-silver operation with multiple open pit and underground mines located within the property and mined simultaneously. AngloGold Ashanti has a 92.5% stake in Cerro Vanguardia, the company’s sole operation in Argentina, with Fomicruz SE, a state company operating in the province of Santa Cruz, owning the remaining 7.5%. The climate is semi-arid and although snow does occur, winter is mild and exploration activities are normally possible all year round. The property is currently in a production stage and operated by AngloGold Ashanti.

Location
Cerro Vanguardia is a gold-silver mine with multiple open pits and underground mines, located at different partsin the Santa Cruz province, southern Patagonia, Argentina, approximately 110km north-northwest of the property but mined simultaneously. Shallowcoastal town of Puerto San Julian. Access to the area is by aircraft from Buenos Aires to Comodoro Rivadavia (380km) or Rio Gallegos (510km) and then by road to the mine site.

Geology
The Cerro Vanguardia district is located within the southern Deseado Massif in the Santa Cruz province of Patagonia, Argentina. The Deseado Massif is an extensive rhyolite province of Middle to Upper Jurassic age. The most important geological feature in the Deseado Massif is an extended plateau formed by pyroclastic, epiclastic and extrusive rocks which were part of a strong explosive volcanic event associated with regional extensional tectonics developed during the Middle to Upper Jurassic and related to the opening of the Atlantic Ocean. The rocks representing this magmatism are termed the Bajo Pobre Formation and Bahia Laura Group. The Bajo Pobre Formation comprises andesites, basalts and mafic volcanic agglomerates. The Bahia Laura Group includes both the Chon Aike Formation (ignimbrites, tuffs, volcanic breccias, agglomerates, lavas and domes) and the La Matilde Formation (tuffs and epiclastic volcanics interlayered with ignimbrites).

The mineralisation is concentrated in steeply-dipping quartz veins that cut the flat-lying ignimbrites and volcanoclastic rocks. The Cerro Vanguardia district contains around 100 gold and silver-bearing epithermal veins for a cumulative exposed vein strike extension of more than 240km, of which 57 veins are currently known to contain economic gold and silver mineralisation.

The veins at Cerro Vanguardia consist mainly of quartz and adularia and contain minor electrum, native gold, silver sulphides and native silver as fine-grained disseminations. Vein textures are mainly characterised by colloform-crustiform banding, pseudomorphic quartz lattice textures, massive-to-vuggy quartz veins and vein breccias.

History
Gold exploration at the site was started in late 1980s by the state owned Fomicruz SE and Minera Mincorp (JV between Anglo American Argentina Holdings Limited and a local private company Perez Companc). Cerro Vanguardia commenced as an open pit operation in 1998 and this was supplemented in 2010 with the start of shallow underground mining began in 2010 to access high-grade materialmaterial. To complement the already existing gold plant, a heap leaching operation was started in 2012. AngloGold purchased Minera Mincorp’s share in Cerro Vanguardia in 1999, and accounts for about 30 percentthe mine has been operated by AngloGold Ashanti since, with the remaining portion acquired from Perez Companc in 2002.

Legal aspects and tenure
Refer to“Item 4B: Business Overview—The Regulatory Environment Enabling AngloGold Ashanti to Mine—Americas—Argentina—AngloGold Ashanti’s rights and permits”.

Mining method
Cerro Vanguardia uses both underground and open pit mining. Open pit is via conventional open pit mining with a double bench height of 20m and contributes 60% of the mine’s production. The orebodies compriseore. Open pit mining is distributed between multiple operating pits, typically five to ten at any one time, depending on the plant feed requirements.

As for the underground, longhole stoping is the mining method and currently, there are four underground mines that are operated at the same time, located on the Osvaldo 8, Cuncuna, Serena and Zorro veins. Three more are in development (Liliana, Osvaldo 7 and Loma del Muerto CB6). Underground mining represents around 40% of total



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production, a series of hydrothermal vein deposits containing goldpercentage that will increase in the coming years. Lower-grade material is stockpiled and large quantities of silver, whichprocessed on the heap leach.

Operational infrastructure
Infrastructure for Cerro Vanguardia is mined as a by-product. Ore is processed at either the metallurgical plant which has a capacity of 3,000 dry tonnes per day andmostly located on-site. It includes a camp site with capacity for more than 1,000 people, a Merrill Crowe plant, heap leaching facilities, cyanide recovery facility. Production capacity of the heap-leach facility, which was commissioned in 2012recycling plant, mine laboratory, maintenance facilities, warehouses and processes lower-grade material, is around 1.5Mtpa at gold and silver grades of around 0.65g/t and 17g/t respectively.sewage processing plant. Four natural gas power generators, fed by a 40km long pipeline, provide electricity to the operation. Natural gas is also used for heating. Mine office facilities are located in the main mining area.

Dewatering supplies water for use both as processing water and camp consumption. Due to the particular features of the mine, and in order to optimise hauling, all pits have local, single or multiple, waste dumps. The TSF is located in, and is contained by a natural depression.

The Property, Plant, and Equipment as of the end of December 2021 including land, buildings & mine has been operatedinfrastructure, mining assets, decommissioning assets, assets under construction and deferred stripping had a carrying value of $217m (reported as 100%, 92.5% owned by AngloGold Ashanti since 1998.Ashanti).


GeologyMineral processing
The oldest rocksmetallurgical plant has a daily capacity estimated at 3,500tpd (1.2Mtpa), with gold and silver grade of around 4.25g/t and 120g/t, respectively. The plant comprises the following stages: crushing, milling, conventional leaching in tanks, counter current decant system in thickeners (“CCD circuit”), a CIL process, acid wash, elution, conventional Merrill Crowe process to recover gold and silver with metallic zinc, and a cyanide recovery plant (Cyanisorb). The tails go directly to a conventional TSF, where there is also a reclaim water system for the plant.

Additional to the processing plant there is a heap leach pad, with an annual capacity of 1.5Mtpa with gold and silver grade of around 0.7g/t and 20g/t, respectively. The pregnant solution from this partprocess goes directly to the CCD circuit in the process plant and to the Merrill Crowe process for gold and silver recovery.

Qualified Persons
Cerro VanguardiaQualified PersonProfessional OrganisationMembership numberRelevant Years ExperienceQualification
Mineral ResourceJuan ParedesAusIMM22773825 yearsPhD (Geology)
Mineral ReserveMartin CescaAusIMM3338648 yearsBEng (Mining Engineering)

Exploration
Refer to “Item 4B: Business Overview—Exploration review”.

Mineral Resource
Refer to Table 1a to Paragraph (b) prepared in accordance with Regulation S-K 1300 (§ 229.1303 (Item 1303)) that summarises the gold Mineral Resource (exclusive of Patagonia are metamorphicsMineral Reserve) for Cerro Vanguardia at the end of the Precambrian-Cambrian age. TheseFiscal Year ended 31 December 2021 based on $1,500/oz. The Mineral Resource is reported for the first time under Regulation S-K 1300 and thus no net difference can be reported.

Refer to the Key Parameters under Material Assumptions for additional information on cut-off grades and metallurgical recovery. For additional information, see the Technical Report Summary on each individual property, filed as an Exhibit of this annual report on Form 20-F.

Material Assumptions for the Mineral Resource

Key Parameters
Cerro VanguardiaUnitOpen Pit
Costs
Ore mining cost$/tonne mined13.08
Waste mining cost$/tonne mined3.31
Processing cost$/tonne treated42.34
G&A$/tonne treated11.79
Other Parameters



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Metallurgical Recovery Factor Au%MetRF94.1
Metallurgical Recovery Factor Ag%MetRF79.8
Slope anglesdegree57
Mineral Resource cut-off gradeg/t0.96
Mineral Resource price$/oz1,500 

Cerro VanguardiaUnitUnderground
Costs
Lateral development (average)$/m8,096 
Mine Services$/tonne ore mined8.50 
Processing cost$/tonne treated42.34 
Other Parameters
MSO optimising cut-offg/t5.08 
Mineral Resource cut-off gradeg/t5.08 
Mineral Resource price$/oz1,500 
Metallurgical Recovery Factor%MetRF94.0

Estimation
The mineralisation boundaries for each geological entity (veins, stockwork and wall rock) are overlaindefined from detailed logging of all geological drill holes. This data is validated and the information used to create a 3D model with cell block sizes of 5 x 25 x 5m. Volumetric measurements of the deposit are then determined using relevant block dimensions. Ordinary kriging is used to perform grade interpolation and field tests are conducted to determine appropriate in situ densities.

Conditional simulations are performed in the main deposits for uncertainty assessment and the Mineral Resource is then classified into Measured, Indicated and Inferred Mineral Resource categories according to the internal AngloGold Ashanti guidelines. For the veins where simulations are not done, drill density is used to classify the Mineral Resource.

Ordinary kriging is carried out for the three defined ore zones. Extreme values are normally capped for less than 1% of the sample distribution. LeapfrogTM is used to do the geological modelling, and DatamineTM software is used for estimation. The variography is done by Permianvein and Triassic continental clastic rocks whichfor each ore zone (vein, stockwork and ignimbrite).

High-grade material is capped using probability plots from GSLIBTM for veins, stockworks and ignimbrites. Only gold and silver is included in the estimation process. In most of the veins, gold and silver have been faulted into a seriesdirect relationship around a ratio of horsts1:8.

Mineral Reserve
Refer to Table 2ato Paragraph (b) prepared in accordance with Regulation S-K 1300 (§ 229.1303 (Item 1303)) that summarises the gold Mineral Reserve for Cerro Vanguardia at the end of the Fiscal Year ended 31 December 2021 based on $1,200/oz.

Refer to the Modifying Factors and grabensprice estimates under Material Assumptions for additional information on cut-off grades and metallurgical recovery. For additional information, see the Technical Report Summary on each individual property, filed as an Exhibit of this annual report on Form 20-F.

Year on year changes in Mineral Reserve - Moz
as at 31 December 2021Cerro Vanguardia
CategoryProvenProbableTotal
Previous Year0.229 0.525 0.755 
Depletion(0.055)(0.111)(0.166)
Exploration0.008 — 0.008 
Methodology0.059 0.034 0.093 
Price0.060 0.138 0.199 
Cost(0.016)(0.021)(0.037)
Geotechnical(0.008)(0.018)(0.026)



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Metallurgical(0.003)(0.005)(0.008)
Operational— — — 
Acquisition / Disposal— — — 
Other— — — 
Current Year0.274 0.543 0.817 
Net Difference0.045 0.017 0.063 
% Difference20 3 8 
The net decrease was mainly due to depletion and minor cost changes, offset partially by revisions to methodology.

Material Assumptions for the Mineral Reserve

Modifying factors and price estimates
as at 31 December 2021Cerro Vanguardia
Primary Commodity Price$/oz1200
Exchange Rate$/ARS112.04
Cut-off gradeg/t
 0.32-0.43(3); 3.25(1); 6.37(2)
Dilution%
35(1)(3); 54(2)
Mining Recovery Factor%MRF based on tonnes97
Mining Recovery Factor%MRF based on g/t
96(2); 96.5(1)(3)
Mine Call Factor%MCF94
Metallurgical Recovery Factor%MetRF
66.1(3); 94.1(1)(2)
(1) Open pit (2) Underground (3) Stockpile (including Heap leach)

Estimation
The appropriate Mineral Resource models are associated with both limited basaltic sillsused as the basis for estimating the Mineral Reserve. All relevant modifying factors such as mining dilution and dykescosts are used in the Mineral Reserve conversion process. This is based on the original block grades and with calc-alkaline granitetonnage, and granodiorite intrusions. Thick andesite flowsincludes waste material (both internal and external). Appropriate Mineral Reserve cut-off grades are applied and all blocks above this cut-off are reported.

It is important to emphasise the importance of Lower Jurassic age occur above these sedimentary units. A large volume of rhyolitic ignimbrites was emplacedsilver during the Middle and Upper Jurassic age over an areaoptimisation of approximately 100,000 square kilometres. These volcanic rocks include the Chon Aike formation ignimbrite units that host the gold bearing veinspits, since silver is a significant by-product at Cerro Vanguardia. Post-mineral units include Cretaceous and Tertiary rocksThe ratio of both marine and continental origin, the Quaternary La Avenida formation, the Patagonia gravel and the overlying La Angelita basalt flows. These flows do not cover the areasilver to gold commonly ranges from 20g/t to 30g/t of silver per 1g/t of gold. Mineral Reserve depletion includes material that comes from operational dilution, which constitutes an additional low-grade tonnage that is mined as part of the ongoing operation. Mineral Resource is estimated in situ and thus does not include this dilution.

Conclusion
The Mineral Resource and Mineral Reserve estimates are sensitive to gold and silver prices as well as to local exchange rate fluctuations. The low-grades from the open pits, and difficult hydrogeological and geotechnical conditions for underground are ongoing risks or uncertainties in the Mineral Resource and Mineral Reserve estimates that are managed on a day-to-day basis.

Map showing Cerro Vanguardia veins.planned infrastructure and licences

GoldMap showing the location, infrastructure and silver mineralisation atmining license area for Cerro Vanguardia, occurs within a vertical rangewith the total mining lease area insert shown at the bottom left corner. The coordinates of about 150 metres to 200 metres in a series of narrow, banded quartz veins that occupy structures within the Chon Aike ignimbrites. These veins form a typical structural pattern related to major north-south (Concepcion)mine, as represented by the plant, are depicted on the map and east-west (Vanguardia) shears. Two sets of veins have formed in response to this shearing. One set of veins strikes about N40W and generally dips 65 to 90 degrees to the east; while the other set strikes about N75W and the veins dip 60 degrees to 80 degrees to the south.

The veins are typical of epithermal, low-temperature, adularia-sericite character and consist primarily of quartz in several forms: as massive quartz, banded chalcedonic quartz, and quartz-cemented breccias. Dark bands in the quartz are due to finely disseminated pyrite, now oxidised to limonite. The veins show sharp contacts with the surrounding ignimbrite which hosts narrow stockwork zones that are weakly mineralised and appear to have been cut by a sequence of north-east-trending faults that have southerly movement with no appreciable lateral displacement.UTM coordinate system.





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BRAZIL


AngloGold Ashanti’s operations in Brazil -comprise AngloGold Ashanti Córrego do Sítio Mineração (AGA(“AGA Mineração)

Description
o”) in the Quadrilátero Ferrífero, Minas Gerais state and Serra Grande in Goiás state. AGA Mineração consists of several mining operations, namely Cuiabá, Lamego, and Córrego do Sítio.CdS.


The Cuiabá complex includesOre from the Cuiabá and Lamego underground mines is processed at the Cuiabá Gold plant. The concentrate produced is transported by aerial ropeway to the Queiroz plant for processing and refining. The Queiroz hydrometallurgical plant also produces sulphuric acid as a by-product.

CdS consists of open pit and underground mines. The oxide ore mined is treated by heap leach and a pressure leaching plant treats sulphide ore. The distance from the main underground mine to the metallurgical plant is around 15km.

Serra Grande comprises three mechanised underground mines, Mina III, Mina Nova and Mina Palmeiras, and an open pit as well as a dedicated metallurgical plant.

AGA MINERAÇÃO

AGA Mineração encompasses mining operations at Cuiabá, Lamego and CdS. The Nova Lima Sul (“Raposos”) project was in care and maintenance and the Cuiabá and Queiroz plants. Mineral Resource has subsequently been written off.

The AGA Mineração mining complex is located in southeastern Brazil in the state of Minas Gerais. Operations are 30km from the capital of the state (Belo Horizonte) in the case of Cuiabá and Lamego, and approximately 100km in the case of CdS, in the municipalities of Nova Lima, Sabará and Santa Bárbara respectively.

Map showing AGA Mineração location
au-20211231_g13.jpg

AGA MINERAÇÃO - CÓRREGO DO SÍTIO

Property description (type and amount of ownership interests, identity of the operator, stages of the properties)
CdS is wholly owned and operated by AGA Mineração. It has been in operation since 1989 and consists of open pit and underground mines. The property is currently in a production stage.

Location
The CdS complex is located in the municipalities of Santa Barbara and Barão de Cocais that are located 90km east of the city of Belo Horizonte in Minas Gerais State, in the southeast of Brazil. These operations are included in an



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important mining district referred to as the Quadrilatero Ferrifero (Iron Quadrangle), the second biggest Brazilian area for the production of iron, gold and manganese.

Geology
The CdS gold deposit is located in the eastern part of the Lower to Middle greenschist facies of the Rio das Velhas Archaean, in the Iron Quadrangle region, on the southern margin of the São Francisco Craton in Brazil.

CdS is an orogenic gold deposit hosted in intensely deformed clastic, volcanoclastic, carbonaceous schists and metagraywackes in an approximately 30km northeast/southwest striking shear zone. Hydrothermal alteration phases associated with the mineralisation are dominated by sericite and carbonate.

The CdS I, II and III gold deposits and associated targets are located in a gold trend that extends for approximately 14km in a northeasterly direction, from Grota Funda (CdS I) in the south to Jambeiro (CdS III) in the north and which developed in a compressional tectonic regime. Gold is associated with quartz and fine-grained acicular arsenopyrite. The main gold targets and deposits are distributed over three trends, namely the CdS Trend (metasedimentary hosted), the Donana Trend and the Cristina Trend (BIF hosted).

At CdS I, the main orebodies are Rosalino, Cachorro Bravo, Laranjeiras and Carvoaria, which constitute the current production sources and most of the Mineral Resource. At CdS II, the main orebodies are São Bento, Pinta Bem (both BIF hosted) and Sangue de Boi (metasedimentary hosted). At CdS III where exploration has been limited, the Anomalia I orebodies are the best understood and have the highest potential, hosted in the metasedimentary and BIF sequences as well as in Jambeiro and Mina de Pedra targets.

History
Gold has been intermittently mined in the Santa Barbara and Barão de Cocais region since the 19th Century. Modern exploration was undertaken across the CdS area in the 1980s by Morro Velho and São Bento Mineracão. An AngloGold Ashanti FS for the oxide Mineral Reserve, to be mined by open pit and treated in a heap leach plant, was approved in 1987. The CdS open pit operations started in the 1990s, with the first phase of production between 1990 and 1998.

In 2002 development of underground exploration drifts began at CdS I and in 2007 the São Bento Mine was acquired from Eldorado Gold Corporation. A FS for the sulphide Mineral Reserve, to be mined underground and treated in a sulphide plant, was concluded in 2010. Implementation followed and the ramp-up was concluded in 2012. In 2011, there were major renovations to the structure of the São Bento metallurgical plant that were completed in 2012. In 2013, the crushing circuit was improved to optimise the throughput.

Legal aspects and tenure
Refer to “Item 4B: Business Overview—The Regulatory Environment Enabling AngloGold Ashanti to Mine—Americas—Brazil—AngloGold Ashanti’s rights and permits”.

Mining method
The underground mining method for CdS is sub-level stoping. Each panel consists of three levels with secondary development drives varying from 100m to 600m along strike. The stopes are around 15m high and the mining sequence method varies between top-down and bottom-up, which is only used in specific areas. Geotechnical parameters require that sill pillars are 4m to 7m high, and rib pillars 5m wide. The access into CdS I underground is by decline and into CdS II underground is by shaft.

The open pit operation uses conventional bench mining, with 8m individual benches and 3.2m berms. The material transport (ore and waste) is done by trucks and the excavation by a backhole. The rock breaking method varies according to the rock strength, using either explosives or mechanical excavation.

Operational infrastructure
CdS infrastructure consists of two treatment plants, namely, the sulphide plant at CdS II (used to process refractory sulphide material), and the heap leach plant at CdS I (for oxide ore mined by open pit). The site also has an ore sorting plant, a TSF for the sulphide plant, a neutralised tailings deposit for the oxide material and numerous waste dumps for the open pit mines at CdS I.

Ancillary facilities comprise a water treatment facility, effluent treatment facilities, equipment workshops, laboratory, warehouses, explosives and accessories magazines, fuel stations, electric substations as well as offices, medical



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clinic, mess rooms, dressing rooms, bathrooms, storerooms, garage, fuel stations, a centre of environmental studies, nursery and other facilities required to operate the mine.

Water is primarily sourced from recycling the underground mine water and supplementary water catchment wells. The power for the operations is supplied and purchased on the open market.

Good communication infrastructure is available in the area.

The Property, Plant, and Equipment as of the end of December 2021 including lease assets, land, buildings & mine infrastructure, mining assets, mineral rights and dumps, decommissioning assets, capitalised exploration costs, assets under construction and deferred stripping had a carrying value of $175m.

Mineral processing
There are two metallurgical plants at CdS: the heap leach plant for oxide ore and the sulphide plant.

The sulphide process consists of crushing, grinding and gravity concentration, flotation, thickening, pressure oxidation (“POX autoclave”), CIL extraction, elution, neutralisation, electrowinning and tailings disposal. The sulphide plant and POX circuit have a capacity of 900ktpa.

The heap leaching process consists of crushing, agglomeration, stacking, leaching, adsorption, elution and electrowinning, with a capacity of 900ktpa.

Qualified Persons
Córrego do SítioQualified PersonProfessional OrganisationMembership numberRelevant Years ExperienceQualification
Mineral ResourceMarcelo Martins de Souza VieiraAusIMM33797410 yearsBSc (Geological Engineering), MSc (Mining Engineering), MBA
Mineral ReserveSergio Alfonso Navarrete LetelierAusIMM33455638 yearsBSc (Mining Engineering), Postgraduate Certificate (Management)

Exploration
Refer to “Item 4B: Business Overview—Exploration review”.

Mineral Resource
Refer to Table 1a to Paragraph (b) prepared in accordance with Regulation S-K 1300 (§ 229.1303 (Item 1303)) that summarises the gold Mineral Resource (exclusive of Mineral Reserve) for Córrego do Sítio at the end of the Fiscal Year ended 31 December 2021 based on $1,500/oz (BRL7,940/oz). The Mineral Resource is reported for the first time under Regulation S-K 1300 and thus no net difference can be reported.

Refer to the Key Parameters under Material Assumptions for additional information on cut-off grades and metallurgical recovery. For additional information, see the Technical Report Summary on each individual property, filed as an Exhibit of this annual report on Form 20-F.

Material Assumptions for the Mineral Resource

Key Parameters
Córrego do SítioUnitUnderground
Costs
Lateral development (average)$/m2,464 
Vertical development (average)$/m1,896 
Production$/tonne ore mined65.72 
Mine Services$/tonne ore mined6.22 
Processing cost$/tonne treated38.27 
Other Parameters
MSO optimising cut-offg/t1.58
Mineral Resource cut-off gradeg/t1.58



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Mineral Resource priceBRL/oz7,940 
Metallurgical Recovery Factor%MetRF90.7

Córrego do SítioUnitOpen Pit
Costs
Ore mining cost$/tonne mined
2.62-3.79(1)
Waste mining cost$/tonne mined2.34
Processing cost$/tonne treated8.59
G&A$/tonne treated2.25
Other Parameters
Metallurgical Recovery Factor%MetRF
70.16-90.7(1)
Slope anglesdegree
47-64(1)
Mineral Resource cut-off gradeg/t
0.33-1.06(1)
Mineral Resource priceBRL/oz7,940 
(1) Vary according to rock / ore type and area

Estimation
Gold grades are estimated by ordinary kriging while density and sulphur may also be kriged if there is enough data. The data set consists of DD samples, RC drilling samples and channel samples where all information is used for both geological modelling and estimation. The estimation parameters are defined for each target and are based on variography as the main driver for the definition of the maximum estimation distances. Domaining is determined differently for each orebody and it is mainly based on structural features, dyke positioning, grade distribution and oxidation features.

Classification is based on a combination of conditional simulation and sample spacing.

Mineral Reserve
Refer to Table 2ato Paragraph (b) prepared in accordance with Regulation S-K 1300 (§ 229.1303 (Item 1303)) that summarises the gold Mineral Reserve for Córrego do Sítio at the end of the Fiscal Year ended 31 December 2021 based on $1,200/oz (BRL6,182/oz).

Refer to the Modifying Factors and price estimates under Material Assumptions for additional information on cut-off grades and metallurgical recovery. For additional information, see the Technical Report Summary on each individual property, filed as an Exhibit of this annual report on Form 20-F.

Year on year changes in Mineral Reserve - Moz
as at 31 December 2021AGA Mineração - Córrego do Sítio
CategoryProvenProbableTotal
Previous Year0.070 0.327 0.397 
Depletion(0.046)(0.045)(0.090)
Exploration0.064 0.113 0.178 
Methodology— — — 
Price— — — 
Cost(0.036)(0.086)(0.121)
Geotechnical0.001 (0.016)(0.016)
Metallurgical(0.003)(0.006)(0.010)
Operational— (0.001)(0.001)
Acquisition / Disposal— — — 
Other0.019 0.021 0.040 
Current Year0.070 0.308 0.378 
Net Difference(0.001)(0.019)(0.020)
% Difference(1)(6)(5)




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In 2021, there was an overall decrease in the Mineral Reserve due to depletion as well as an increase in costs, offset by successful exploration drilling campaigns at CdS I on the Carvoaria and Rosalino orebodies.    

Material Assumptions for the Mineral Reserve

Modifying factors and price estimates
as at 31 December 2021Córrego do SítioOpen pit and StockpilesUnderground
Primary Commodity PriceBRL/oz6,182 6,182 
Cut-off gradeg/t
0.43-1.36(1)
3.29
Stoping widthcm-
229.8-380.3(1)
Dilution%0
19.9-28.3(1)
Resource Modification Factor%RMF based on tonnes100100
Resource Modification Factor%RMF based on g/t100100
Mining Recovery Factor%MRF based on tonnes10090
Mining Recovery Factor%MRF based on g/t100100
Mine Call Factor%MCF100
90.9-92.4(1)
Metallurgical Recovery Factor%MetRF
37.7-90.7(1)
90.7
(1) Vary according to rock type / area

The main modifying factors were reviewed based on historical performance and projected scenarios. Stope dilution is calculated with an equation considering stope thickness (among other aspects) and varies from 19 to 25%, the MCF is based on an average for the past 12 months and it includes the introduction into planning of grades associated with planned dilution. Metallurgical recovery was reviewed based on geometallurgy studies. For the open pit, a regularised model is used for Mineral Reserve estimation, with sizes of 2.5 x 2.5 x 4m, compatible with mining equipment. It is therefore not necessary to consider additional dilution or mining recovery as these have already been included in the regularised block model.

Estimation
The estimation process considers price and exchange rate inputs from the internal AngloGold Ashanti's guidelines as well as cost studies based on current and future scenarios. Underground estimation uses MSO and open pit uses a scheduling tool to perform optimisation, applying modifying factors that were validated by peer review.

Conclusion
The Inferred Mineral Resource and conceptual material projections within the mine plan are seen as a risk or uncertainty in the Mineral Reserve estimate but there are drilling programs in place to mitigate this.

The most significant risk to the operation is the lack of Mineral Reserve flexibility in the form of alternate mining areas to deliver the production plan. This risk is controlled and mitigated with integrated planning process, together with internal stakeholders and daily monitoring of the execution of the plan.

Map showing Córrego do Sítio planned infrastructure and licences
Map showing the location, infrastructure and mining license area for Mineração Córrego do Sítio, with the total mining lease area insert displayed at the top left. The coordinates of the mine, as represented by the CdS I plant, are depicted on the map and are in the UTM coordinate system.




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135

AGA MINERAÇÃO - CUIABÁ

Property description
Cuiabá is an underground operation, wholly owned and operated by AngloGold Ashanti, within one of the most important metallogenetic provinces in Brazil known as the Iron Quadrangle. This region is an important producer of iron ore and gold in Brazil. The property is currently in a production stage.

Location
The Cuiabá Mine is located near Sabará, southeast and east respectively of the city of Belo Horizonte, the capital of Minas Gerais State, in the southeast of Brazil. The

Geology
Cuiabá mine is a mix of cut-and-fill and long hole stoping accessed by ramp and shaft. Lamego is a nearby mine developed to mine an underground sulphide ore. The first stage of the processing of the ore from Cuiabá and Lamego mines is in the gold plant at the Cuiabá complex, where concentrate is produced. The material is then transported 15 kilometres by aerial ropeway to the Queiroz plant where roasting, leaching, precipitation and refining occur. Total capacity of the complete circuit is 2.1 million tonnes per year and recoveries of 94 percent are achieved. Power for the mine is both self-generated and supplied by Cemig a state owned company. The Cuiabá mine became operational in 1988 and the Lamego mine in 2009. Some of the older mines which are now closed have been operating since 1834.

Córrego do Sítio (CdS)Mine is located in the Municipality of Santa Bárbara, 60 kilometres eastIron Quadrangle, which is a geotectonic unit at the southern edge of the city of Belo Horizonte, the capital of Minas Gerais state. The CdS gold complex has been in operation since 1989São Francisco Craton, comprising Archaean and consists of two operations: an oxide open pit mineProterozoic terrains, and two sulphide underground mines known as CdS I and CdSII. There are two metallurgical plants in CdS: the heap-leach plant for the oxide ore and the sulphide plant. The sulphide process consists of crushing, grinding and gravity concentration, flotation, thickening, acidulation, pressure oxidation (POX autoclave), counter current decantation, CIL extraction, elution, neutralisation, electro-winning and tailings disposal. The plant and POX circuit havebordered by Neoproterozoic mobile belts. From a capacity of 800ktpa. The heap-leaching process consists of crushing, agglomeration, stacking, leaching, adsorption, elution and electro winning with a total capacity of 650ktpa. Power is supplied to CdS by Cemig a state owned company.

Brazil - Summary of metallurgical operations
 Córrego do Sítio Oxide
 Córrego do Sítio Sulphide
 Cuiabá
 Serra Grande  
Capacity
(000 tonnes/month)
54
 67
 175
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Geology
The area in which AGA Mineraçãoregional viewpoint, Cuiabá Mine is located is known asin the Iron Quadrangle and is host to historic and current gold mining operations, as well as a numbereastern extension of open-pit limestone and iron ore operations. The geologythe Serra do Curral inverted homocline, located on the northeastern edge of the Iron QuadrangleQuadrangle.

The mine lithostratigraphy consists of an intermediate metamafic sequence of the greenstone belt type and is composed of Proterozoic and Archaean volcano‑sedimentary sequences and Pre‑Cambrian granitic complexes. The host tohosted in the gold mineralisation is the volcano-sedimentary Nova Lima Group (NLG) that occurs at the basewhich is part of the Rio das Velhas SuperGroup (RDVS)Supergroup. This sequence is characterised by metametabasaltic rocks at the base, overlain by Algoma Type BIF metasediments, carbonaceous schist, and graphitic schist. Above the metasediments is a sequence of metabasalts overlain by an alternating sequence of metapelites (X1) and metapsamitic rocks with minor volcanoclastic (XS). The upper sequence of the RDVS is the meta-sedimentary Maquiné Group. gold mineralisation occurs in sulphide orebodies associated mainly with BIF layers, and subordinate to minor quartz veins hosted in schists.

Cuiabá mine, located at Sabara Municipality,Mine has gold mineralisation associated with sulphides and quartz veins in Banded Ironstone Formation (BIF)BIF and volcanic sequences. At this mine, structuralStructural control and fluidsfluid flow ascension are the most important factors for gold mineralisation with a common association between large-scale shear zones and their associated structures. Where BIF is mineralised, the ore appears strongly stratiform due to the selective sulphidation of the iron richiron-rich layers. Steeply plunging shear zones tend to control the ore shoots, which commonly plunge parallel to intersections between the shears and other structures.


History
In 1740, artisanal miners carried out the first mining in the area. The Saint John Del Rey Mining Company Limited. acquired the mine in 1834. Exploration and development resumed in 1977, culminating with the reopening of the mine in 1985. In 1996, the company became a wholly owned subsidiary of the Anglo American Group, and in 1999, ownership was transferred to the holding company AngloGold (now AngloGold Ashanti), where it remains.

Legal aspects and tenure
Refer to “Item 4B: Business Overview—The Regulatory Environment Enabling AngloGold Ashanti to Mine—Americas—Brazil—AngloGold Ashanti’s rights and permits”.

Mining method
Cuiabá Mine is an underground mine that currently operates using two main mining methods: sub-level longhole open stoping, and triple stoping. A variant of sub-level longhole stoping with a free face horizontal tunnel is also applied over low inclination high-grade areas. The cut and fill mining method was reintroduced to increase ore recovery. It is applied in the narrow veins below Level 14.1 (Balancão, Galinheiro and Canta Galo orebodies) where the dip is lower. In the Galinheiro Footwall, the mining method remains sub-level stoping as the orebody shows a reasonable steep dip and thickness.

Operational infrastructure
The metallurgical plants are connected by an aerial ropeway (Cuiabá Gold plant and Queiroz plant) and power is provided by a set of small hydropower plants (Rio de Peixe). Cuiabá Mine has a shaft system (846m deep) for production and personnel transport, the current nominal airflow capacity is 1,035m3/s, of which 320m3/s are refrigerated. Tailings deposition is at one of four sites located at Cuiabá, Calcinado, Rapaunha and Cocuruto. The Rio de Peixe hydroelectric complex is a set of seven small hydropower plants that generate energy from three dams (Ingleses, Miguelo and Codorna), and are connected directly to the Queiroz plant.

The controllingProperty, Plant, and Equipment as of the end of December 2021 including lease assets, land, buildings & mine infrastructure, mining assets, mineral rights and dumps, decommissioning assets, capitalised exploration costs and assets under construction had a carrying value of $381m.




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Mineral processing
Cuiabá and Lamego Mines feed the Cuiabá Gold (flotation) and Queiroz (roaster, carbon circuit and refinery) plants, currently at 2.0Mtpa for a metallurgical recovery of 93.3% for the total combined feed. At the Cuiabá Gold plant, ore is crushed and ground followed by flotation and filtration in order to produce a concentrate, which is transported by an aerial ropeway to Queiroz for further treatment. Approximately 30% of gold is recovered through a gravity circuit at the Cuiabá plant. The concentrate transported by aerial ropeway is received at Queiroz plant which is located in Nova Lima and comprises a refractory ore circuit (from Cuiabá or Lamego) with facilities for pyrometallurgy and hydrometallurgy. The concentrate is roasted and the calcine proceeds to a CIP or Merril Crowe circuit for further refining. The sulphide gas is captured for processing through the acid plant. Approximately 230ktpa of sulphuric acid is produced as a by-product.

Qualified Persons
CuiabáQualified PersonProfessional OrganisationMembership numberRelevant Years ExperienceQualification
Mineral ResourceHenrique VigarioAusIMM32931015 yearsBSc (Geology), Postgraduate Certificate (Geostatistics)
Mineral ReserveFelipe LimaAusIMM33617616 yearsBSc (Mining Engineering)

Exploration
Refer to “Item 4B: Business Overview—Exploration review”.

Mineral Resource
Refer to Table 1a to Paragraph (b) prepared in accordance with Regulation S-K 1300 (§ 229.1303 (Item 1303)) that summarises the gold Mineral Resource (exclusive of Mineral Reserve) for Cuiabá at the end of the Fiscal Year ended 31 December 2021 based on $1,500/oz (BRL7,940/oz). The Mineral Resource is reported for the first time under Regulation S-K 1300 and thus no net difference can be reported.

Refer to the Key Parameters under Material Assumptions for additional information on cut-off grades and metallurgical recovery. For additional information, see the Technical Report Summary on each individual property, filed as an Exhibit of this annual report on Form 20-F.

Material Assumptions for the Mineral Resource

Key Parameters
CuiabáUnitSublevelCut and fill
Costs
Lateral development (average)$/m5,194 5,194 
Vertical development (average)$/m3,471 3,471 
Production$/tonne ore mined27.31 38.03 
Material handling$/tonne ore mined76.09 41.96 
Mine Services$/tonne ore mined26.84 38.76 
Processing cost$/tonne treated19.60 20.13 
Other Parameters
MSO optimising cut-offg/t1.68 2.57 
Mineral Resource cut-off gradeg/t1.68 2.57 
Mineral Resource priceBRL/oz7,940 7,940 
Metallurgical Recovery Factor%MetRF93.593.5

CuiabáUnitOpen Pit
Costs
Ore mining cost$/tonne mined1.28
Waste mining cost$/tonne mined1.28
Processing cost$/tonne treated17.68
G&A$/tonne treated1.07
Other Parameters



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Metallurgical Recovery Factor%MetRF93.5
Slope anglesdegree20
Mineral Resource cut-off gradeg/t0.66
Mineral Resource priceBRL/oz7,940 

Estimation
The Cuiabá dataset consists of both channel and drill hole samples. 3D modelling and estimation is performed within two main estimation domains, namely the thick mineralisation, structurescomprised of Fonte Grande Sul and Serrotinho, and the narrow-vein domain comprising Balancão, Galinheiro and Canta Galo. A third domain, related to the mineralisation hosted predominantly in zones of intense hydrothermal alteration in schists, is also considered and includes the Quartz vein satellite, Galinheiro footwall orebody (“GFW”), Viana and Descoberto orebodies. All channel and drill hole samples are used to generate 3D geological models and to assign lithological proportions into the apparent intersectiongrade estimates. Conditional simulation is used to estimate the uncertainty in the block models and to classify the Mineral Resource into Measured, Indicated and Inferred Mineral Resource, following the standard internal AngloGold Ashanti methodology.

Mineral Reserve
Refer to Table 2ato Paragraph (b) prepared in accordance with Regulation S-K 1300 (229.1303 (Item 1303)) that summarises the gold Mineral Reserve for Cuiabá at the end of thrust faultsthe Fiscal Year ended 31 December 2021 based on $1,200/oz (BRL6,182/oz).

Refer to the Modifying Factors and price estimates under Material Assumptions for additional information on cut-off grade and metallurgical recovery. For additional information, see the Technical Report Summary on each individual property, filed as an Exhibit of this annual report on Form 20-F.

Year on year changes in Mineral Reserve - Moz
as at 31 December 2021AGA Mineração - Cuiabá
CategoryProvenProbableTotal
Previous Year0.273 0.944 1.216 
Depletion(0.084)(0.101)(0.184)
Exploration0.005 0.101 0.106 
Methodology0.038 (0.032)0.006 
Price— — — 
Cost(0.003)(0.018)(0.020)
Geotechnical— — — 
Metallurgical— — — 
Operational0.082 (0.015)0.067 
Acquisition / Disposal— — — 
Other(0.001)(0.001)(0.002)
Current Year0.311 0.878 1.189 
Net Difference0.038 (0.066)(0.028)
% Difference14 (7)(2)

The Mineral Reserve year-on-year decrease is mainly due to depletion and cost increases which resulted in changes in design, offset partially by exploration additions as well as changes in methodology and operational factors with tight isoclinal foldsremnant areas being added.

Material Assumptions for the Mineral Reserve

Modifying factors and price estimates
as at 31 December 2021Cuiabá
Primary Commodity PriceBRL/oz6,182 
Cut-off gradeg/t4.73
Stoping widthcm400
Dilution%
24.1-34(1)



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Mining Recovery Factor%MRF based on tonnes
83.5-92.1(1)
Mine Call Factor%MCF95.3
Metallurgical Recovery Factor%MetRF93.5
(1) Vary according to rock type / area
Cuiabá is fully designed and sequenced using mine planning software. All mapped modifying factors are currently being applied to define the viability of the potential Mineral Reserve. Such factors include planned and unplanned dilution, ore recovery, mine call factor, geotechnical and hydrogeological recommendations concerning sill pillars, rib pillars and stope dimensions, the ore transport system, plant capacity, production capacities, production schedule, mining efficiency, closure plans and personnel requirements. Also, the full infrastructure is designed and accounted for. The Mineral Reserve is related to an economic production plan that accounts for all these requirements.

Mining recovery is defined at 83.5% for regular stopes, 75% for partial pillar recovery, 92.5% for cut and fill areas, and 95% for development. Dilution is considered to be 20% for production development, 34% for narrow veins sub-level, 24% for main orebody sub-level and 26% for cut and fill areas as per geotechnical recommendations. MCF is defined at 95.3% based on a five year average from the historical database. The Mineral Reserve estimate is highly sensitive to recovery and MCF.

Estimation
Gold price, projected operational performance and costs as well as metallurgical recoveries are taken into consideration in the Mineral Reserve. Mining parameters such as the mining method, minimum mining width, MCF, dilution and recovery are all applied in the process.

Conclusion
Management plans are in place to address the risks or uncertainties associated with the low level of estimated Mineral Reserve, the reliance on Inferred Mineral Resource in the production plan, and rock engineering constraints at depth.

Map showing Cuiabá planned infrastructure and licences
Map showing the location, infrastructure and mining license area for AGA Mineracão Cuiabá and Lamego Mines, with the total mining lease area insert at the top left corner. The coordinates of the mine, as represented by the Cuiabá plant, are depicted on the map and are in the UTM coordinate system.




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au-20211231_g15.jpg



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AGA MINERAÇÃO - LAMEGO

Property description (type and amount of ownership interests, identity of the operator, stages of the properties)
The Lamego Mine is an underground operation, wholly owned and operated by AngloGold Ashanti, within one of the most important metallogenetic provinces in Brazil known as the Iron Quadrangle. The property is currently in a ductile environment. The host rocks at Brasil Mineração are BIF, Lapa Secaproduction stage. This region is an important producer of iron ore and mafic volcanics (principally basaltic). Mineralisationgold in Brazil.

Location
Lamego is duelocated to the interactioneast of low salinity carbon dioxide rich fluids withBelo Horizonte, the high-iron BIF, basaltscapital of Minas Gerais State, in the southeast of Brazil.

Geology
Lamego Mine is located in the Iron Quadrangle, which is a geotectonic unit at the southern edge of the São Francisco Craton, comprising Archaean and carbonaceous graphitic schists. Sulphide mineralisation consists of pyrrhotiteProterozoic terrains, and pyrite with subordinate pyrite and chalcopyrite; the latter tends to occur asbordered by Neoproterozoic mobile belts. From a late-stage fracture fill and is not associated with gold mineralisation. Wallrock alteration is typically carbonate, potassic and silicic.

CdSregional viewpoint, Lamego Mine is located in the eastern extension of the Serra do Curral inverted homocline, located on the northern edge of the Iron Quadrangle.

The mine lithostratigraphy consists of an intermediate metamafic sequence of the greenstone belt type and is hosted in the Nova Lima Group, which is part of the lower to middle greenschist facies archean Rio das Velhas greenstone belt.Supergroup. This sequence is characterised by lower metametabasaltic rocks at the base, overlain by Algoma-type BIF metasediments, a quartz layer (known locally as metachert), carbonaceous schist, graphite schist and a further sequence of sediments consisting of alternating metapelites and metapsamitic rocks with a volcanoclastic contribution. The CdS I, IIupper sequence of the Rio das Velhas Supergroup is the metasedimentary Maquine Group.

The gold mineralisation at Lamego is characterised by orebodies associated with two horizons of chemical sedimentary rocks: BIF and IIImetachert, with shear zones containing abundant quartz veinlets. The proportions of these lithotypes vary substantially from one deposit to another. In the BIF, sulphide mineralisation is associated with gold, deposits and associated targets are located in a gold trend that extends for about 14km in a north-easterly direction, from Grota Funda (CdS I areas)while in the southmetachert it is associated with quartz veins. The gold occurs either as native gold or in sulphides. Lamego has a similar rock assemblage to Jambeiro (CdS III areas)Cuiabá, but with higher structural complexity. The mineralised BIF is more structurally deformed and contains more silica when compared to Cuiabá, which reacted less with the hydrothermal fluid.

History
Exploration began in the north. CDSII Areaarea in 1985 with a drilling campaign along a 5.7km strike length of iron formation and the opening of 2.5km of development on the Arco da Velha, Queimada, and Cabeça de Pedra orebodies. After the successful completion of a FS, project approval was given, and implementation began in 2010 with the first gold poured soon afterward.

Legal aspects and tenure
Refer to “Item 4B: Business Overview—The Regulatory Environment Enabling AngloGold Ashanti to Mine—Americas—Brazil—AngloGold Ashanti’s rights and permits”.

Mining method
Lamego started operating as a cut and fill mine and migrated to long hole stoping as geology and mining knowledge increased over time. These changes had a positive impact on productivity and costs, keeping the asset competitive and efficient. The changes started in 2014 and are now complete, with all ore extracted from sub-level stopes. The ore extracted is transported to surface by diesel trucks and undergoes primary crushing at site. Crushed material is then transported by road trucks to the north portionCuiabá plant facilities to be treated. Waste mined is disposed at waste dumps and is also used to backfill stopes.

Operational infrastructure
Lamego operates as a satellite mine to Cuiabá Mine. Ore is transported to surface via ramps where it is crushed, stockpiled and transported daily to Cuiabá Plant, where it is blended with Cuiabá ore on the ROM pad.

The two plants (Cuiabá Gold plant and Queiroz plant) are connected by an aerial ropeway. Power for the mine is both self-generated (Rio de Peixe hydroelectric complex) and supplied by Cemig, a state-owned company. The Rio de Peixe hydroelectric complex, which is a set of seven small hydropower plants that generate energy from three dams (Ingleses, Miguelo and Codorna), and connects directly to the Queiroz plant.

Lamego has a natural water supply system and a plant for water and sewage treatment.



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The Property, Plant, and Equipment as of the Corrego do Sítioend of December 2021 including lease assets, land, buildings & mine infrastructure, mining assets, decommissioning assets and capitalised exploration costs had a carrying value of $35m.

Mineral processing
Cuiabá and Lamego feed the Cuiabá Gold (flotation) and Queiroz (roaster, carbon circuit and refinery) plants, currently at 2.0Mtpa for a metallurgical recovery of 93.3% for the total combined feed. At Cuiabá Gold plant, crushing and milling of the ore is followed by flotation and filtration in order to produce a concentrate, which is transported by aerial ropeway to Queiroz for further treatment.

Approximately 30% of gold trend.is recovered through a gravity circuit at the Cuiabá plant. The main gold targets and deposits are distributed over three trends, namely the CdS trend, the Donana Trend and the Cristina Trend. At CdSI, the main orebodies are Rosalino, Cachorro Bravo, Laranjeiras and Carvoaria, which are currently under-production and are the most relevant mineralisations at Mine I. At CdSII, the main orebodies are São Bento, Pinta Bem (both BIF hosted) and Sangue de Boi (metapellitic hosted). At CdSIII, Anomalia I and II represent the orebodies with highest level of information and potential so far (For formal declaration purposes, CDSIII deposits are incorporated as CDSII). CdS mineralisation occurs in a greenstone belt geological environment, where the gold content is associated to quartz and sulphides (mainly very fine arsenopyrite acicular crystals) in a structurally controlled corridor of approximately 16 - 20km in strike length and about 500m vertical extent, developed under compressional tectonic settings. 

Brazil - Serra Grande

Description
Serra GrandeQueiroz plant is located in central Brazil,Nova Lima and comprises a circuit for refractory ore (from Cuiabá or Lamego) with facilities for pyrometallurgy and hydrometallurgy. The concentrate is roasted and the calcine proceeds to a CIP or Merril Crowe circuits for further refining. The sulphide gas is captured for processing through the acid plant. Approximately 180ktpa of sulphuric acid is produced as a by-product.

Qualified Persons
LamegoQualified PersonProfessional OrganisationMembership numberRelevant Years ExperienceQualification
Mineral ResourceHenrique VigarioAusIMM32931015 yearsBSc (Geology), Postgraduate Certificate (Geostatistics)
Mineral ReserveRodolfo ReisAusIMM32340210 yearsMEng (Mining Engineering)

Exploration
Refer to “Item 4B: Business Overview—Exploration review”.

Mineral Resource
Refer to Table 1a to Paragraph (b) prepared in accordance with Regulation S-K 1300 (229.1303 (Item 1303)) that summarises the gold Mineral Resource (exclusive of Mineral Reserve) for Lamego at the end of the Fiscal Year ended 31 December 2021 based on $1,500/oz (BRL7,940/oz). The Mineral Resource is reported for the first time under Regulation S-K 1300 and thus no net difference can be reported.

Refer to the Key Parameters under Material Assumptions additional information on cut-off grades and metallurgical recovery. For additional information, see the Technical Report Summary on each individual property, filed a an Exhibit of this annual report on Form 20-F.

Material Assumptions for the Mineral Resource

Key Parameters
LamegoUnitSublevelCut and fill
Costs
Lateral development (average)$/m3,175 3,264 
Production$/tonne ore mined12.94 15.86 
Material handling$/tonne ore mined13.58 64.43 
Processing cost$/tonne treated20.09 19.75 
Exploration capitalised$/tonne ore mined6.67 6.49 
Other Parameters
MSO optimising cut-offg/t1.06 1.66 
Mineral Resource cut-off gradeg/t1.06 1.66 
Mineral Resource priceBRL/oz7,940 7,940 
Metallurgical Recovery Factor%MetRF93.593.5

LamegoUnitOpen Pit
Costs
Ore mining cost$/tonne mined1.19



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Waste mining cost$/tonne mined1.05
Processing cost$/tonne treated10.84
G&A$/tonne treated2.00 
Other Parameters
Metallurgical Recovery Factor%MetRF93.5
Slope anglesdegree
40-50(1)
Mineral Resource cut-off gradeg/t0.39
Mineral Resource priceBRL/oz7,940 
(1) Vary according to rock type / area
Estimation
The geological model is used to subdivide sampling information into domains for estimation which uses ordinary kriging. Classification of the Mineral Resource is based on conditional simulation.

Mineral Reserve
Refer to Table 2ato Paragraph (b) prepared in accordance with Regulation S-K 1300 (229.1303 (Item 1303)) that summarises the gold Mineral Reserve for Lamego at the end of the Fiscal Year ended 31 December 2021 based on $1,200/oz (BRL6,182/oz).

Refer to the Modifying Factors and price estimates under Material Assumptions for additional information on cut-off grade and metallurgical recovery. For additional information, see the Technical Report Summary on each individual property, filed as an Exhibit of this annual report on Form 20-F.

Year on year changes in Mineral Reserve - Moz
as at 31 December 2021AGA Mineração - Lamego
CategoryProvenProbableTotal
Previous Year0.029 0.091 0.120 
Depletion(0.010)(0.025)(0.035)
Exploration— 0.038 0.038 
Methodology0.018 (0.014)0.004 
Price— — — 
Cost(0.002)(0.003)(0.004)
Geotechnical(0.001)(0.001)(0.002)
Metallurgical— — — 
Operational0.004 (0.003)0.001 
Acquisition / Disposal— — — 
Other— 0.001 — 
Current Year0.037 0.084 0.122 
Net Difference0.008 (0.007)0.002 
% Difference28 (7)1 

After depletion, offset by exploration additions, the Mineral Reserve for Lamego remained the same year-on-year.

Material Assumptions for the Mineral Reserve

Modifying factors and price estimates
as at 31 December 2021Lamego
Primary Commodity PriceBRL/oz6,182 
Cut-off gradeg/t2.97
Stoping widthcm500
Dilution%15
Mining Recovery Factor%MRF based on tonnes90
Mine Call Factor%MCF94.5
Metallurgical Recovery Factor%MetRF93.5



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Estimation
The projected gold price, operational performance and costs, as well as metallurgical recoveries are taken into consideration when estimating the Mineral Reserve. Mining parameters such as the mining method, minimum mining width, MCF, dilution and recovery are all applied in the stateprocess.

Conclusion
As a low-grade operation, the accurate prediction of Goiás, about five kilometers fromgrade and the citymanagement of Crixás. its variability is critical to ensure a successful operation. To minimise this risk or uncertainty, mine drilling campaigns, including channel sampling, are considered as mandatory before mining and incorporated at mine production scheduling.

Management plans are in place to address the risks or uncertainties associated with the low level of Mineral Reserve, the reliance on Inferred Mineral Resource in the production plan, and rock engineering constraints at depth.

Map showing Lamego planned infrastructure and licences
Map showing AGA Mineração – Cuiabá and Lamego Mines project infrastructure and licences, with the total mining lease area insert shown in the top left corner. The coordinates of the mine, as represented by the Cuiabá plant, are depicted on the map and are in the UTM coordinate system.




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au-20211231_g16.jpg



145

SERRA GRANDE

Property description (type and amount of ownership interests, identity of the operator, stages of the properties)
Mineração Serra Grande (MSG(“MSG” or Serra Grande)“Serra Grande”) is 100%wholly owned and operated by AngloGold Ashanti and is located in the north-western areanorthwest of the GoiasGoiás State, central Brazil. It operates three underground and two open pit mines. The property is currently in a production stage.

Location
Serra Grande is located 5km south of the town of Crixás, 420km from the Brazilian capital, Brasília and approximately 350km from the state capital of Goiás, Goiánia. Employing 1,120 persons in this largely rural area means that mining is the principal economic activity in the region.

Geology
The Serra Grande gold deposits are hosted in a typical greenstone belt sequence. Two main deformational events have been identified in the region. The first one, a thrusting event (D1 from west to east), developed with irregular thrust ramp geometry. This event was responsible for stacking and inverting the stratigraphic sequences.

The second event (D2) was the thrusting of the Santa Terezinha sequence over the Crixás greenstone belt, folding the rocks (F2) and generating the structural controls for gold mineralisation, generally parallel to the fold axis.

The mine is in the Crixás greenstone belt sequence, in the central portion of Brazil, and the main host rocks are metasedimentary sequences associated with metavolcanic basic rocks. Mineralisation at Serra Grande is associated with quartz veins and massive-to-disseminated sulphides in metasedimentary, metavolcanoclastic and metabasalt rocks, with differing degrees of hydrothermal alteration developed over orogenic stacked thrust layers (duplexes).

The mineralisation is hosted in four main domains called structures: Structure II, III, IV and Palmeiras. These occur as stacked lenses, generally concentrated in the same high deformation positions (with folds and disruptions) within the structures.

History
Exploration began in 1973 with a phase of detailed mapping and DD, which continued until 1976. The mining operation started up in 1986 in Mina III and the metallurgical plant start-up was in 1989. Serra Grande production peaked at 193kozpa in 2006, supported by high-grades. In 2009, the metallurgical plant was expanded to 1.3Mtpa to compensate for a declining grade-profile and in 2012 AngloGold Ashanti acquired the 50% stake that belonged to the Kinross Group.

Legal aspects and tenure
Refer to “Item 4B: Business Overview—The Regulatory Environment Enabling AngloGold Ashanti to Mine—Americas—Brazil—AngloGold Ashanti’s rights and permits”.

Mining method
The Serra Grande operation comprises three underground mines, namely Mina III (including orebody IV, V and Ingá), Mina Nova (including Pequizão orebody) and Mina Palmeiras. The open pits mine the outcrop of Mina III Inferior and Structure IV zones, and Pequizão. Three mining methods are being used underground: sub-level stoping (bottom-up and top-down), cut and fill, and room and pillar. One dedicatedThe open pits use standard drill and blast, followed by truck load and haul.

Operational infrastructure
Serra Grande operates a single TSF, which will support the LOM production and has government environmental licensing in place. The water used in metallurgical plant treats oreprocessing comes from these different sources.the underground mines. The annual capacity ofstate road GO-337 passes close to the processing circuit, which has grinding, gravity circuit, CIL (carbon in leach), elution, electro-winning and smelting facilities, is 1.5 million tonnes.operation providing access for logistics. The power for the mine is supplied and purchased in the open market.  market (grid electricity) and diesel self-generation.

The Property, Plant, and Equipment as of the end of December 2021 including lease assets, land, buildings & mine becameinfrastructure, mining assets, mineral rights and dumps, decommissioning assets, capitalised exploration costs and assets under construction had a carrying value of $183m.

Mineral processing
The metallurgical plant has the capacity of 1.5Mtpa, combining CIL and gravimetric circuits. The ore is blended to feed the crushing circuit which has a capacity of 4,100tpd. There are two mills in operation, and 20 leaching tanks



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with a capacity of 4,800m3 divided between preliming and cyanidation stages. Approximately 58% of gold is captured in the parallel gravity circuit. The rest of the gold is recovered by the CIL process to form the doré that is sent to the Nova Lima refining process.

Qualified Persons
Serra GrandeQualified PersonProfessional OrganisationMembership numberRelevant Years ExperienceQualification
Mineral ResourceMarcelo CamposAusIMM32866716 yearsMSc, MBA, BA (Geology)
Mineral ReserveThiago TeixeiraAusIMM33609312 yearsBEng, MBA

Exploration
Refer to “Item 4B: Business Overview—Exploration review”.

Mineral Resource
Refer to Table 1a to Paragraph (b) prepared in accordance with Regulation S-K 1300 (229.1303 (Item 1303)) that summarises the gold Mineral Resource (exclusive of Mineral Reserve) for Serra Grande at the end of the Fiscal Year ended 31 December 2021 based on $1,500/oz (BRL7,935/oz). The Mineral Resource is reported for the first time under Regulation S-K 1300 and thus no net difference can be reported.

Refer to the Key Parameters under Material Assumptions for additional information on cut-off grades and metallurgical recovery. For additional information, see the Technical Report Summary on each individual property, filed as an Exhibit of this annual report on Form 20-F.

Material Assumptions for the Mineral Resource

Key Parameters
Serra GrandeUnitUnderground Mineral Resource (excluding Mina Nova)Underground Mineral Resource Mina Nova
Costs
Lateral development (average)$/m17.47 17.47 
Vertical development (average)$/m26.97 26.97 
Production$/tonne ore mined41.28 41.28 
Mine Services$/tonne ore mined16.54 16.54 
Processing cost$/tonne treated8.96 8.96 
Other Parameters
MSO optimising cut-offg/t1.08 1.08 
Mineral Resource cut-off gradeg/t1.08 1.08 
Mineral Resource priceBRL/oz7,935 7,935 
Metallurgical Recovery Factor%MetRF9393

Serra GrandeUnitOpen Pit
Costs
Ore mining cost$/tonne mined3.15 
Waste mining cost$/tonne mined2.38 
Processing cost$/tonne treated10.71 
Other Parameters
Metallurgical Recovery Factor%MetRF92
Slope anglesdegree
45-59(1)
Mineral Resource cut-off gradeg/t0.4
Mineral Resource priceBRL/oz7,935 
(1) Vary according to rock type / area



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Estimation
Grade estimation is performed by ordinary kriging using DD, RC drilling and channel samples from the Serra Grande database. All search distances are based on variographic studies for each orebody or structure. Classification is done through a combination of conditional simulation and sample spacing studies.
Mineral Reserve
Refer to Table 2ato Paragraph (b) prepared in accordance with Regulation S-K 1300 (229.1303 (Item 1303)) that summarises the gold Mineral Reserve for Serra Grande at the end of the Fiscal Year ended 31 December 2021 based on $1,200/oz.

Refer to the Modifying Factors and price estimates under Material Assumptions for additional information on cut-off grades and metallurgical recovery. For additional information, see the Technical Report Summary on each individual property, filed as an Exhibit of this annual report on Form 20-F.

Year on year changes in Mineral Reserve - Moz
as at 31 December 2021Serra Grande
CategoryProvenProbableTotal
Previous Year0.240 0.387 0.627 
Depletion(0.027)(0.052)(0.079)
Exploration0.004 0.020 0.024 
Methodology0.027 (0.047)(0.020)
Price— — — 
Cost0.012 (0.036)(0.024)
Geotechnical0.001 (0.001)— 
Metallurgical— — — 
Operational0.015 0.012 0.027 
Acquisition / Disposal— — — 
Other— — — 
Current Year0.271 0.283 0.554 
Net Difference0.032 (0.104)(0.072)
% Difference13 (27)(12)

The net decrease was due to depletion, cost changes and some revisions to methodology.

Material Assumptions for the Mineral Reserve

Modifying factors and price estimates
as at 31 December 2021Serra Grande
Primary Commodity Price$/oz1200
Exchange Rate$/BRL5.15
Cut-off gradeg/t
0.41(1); 2.0(2)
Stoping widthcm
180-400(2)
Dilution%
17.5(1); 12.5-21(2)
Resource Modification Factor%RMF based on tonnes100
Resource Modification Factor%RMF based on g/t100
Mining Recovery Factor%MRF based on tonnes
86-95(2); 100(1)
Mining Recovery Factor%MRF based on g/t100
Mine Call Factor%MCF95
Metallurgical Recovery Factor%MetRF93
(1) Open pit (2) Underground
Estimation
Serra Grande Mineral Reserve is estimated using the Mineral Resource and by applying modifying factors based on historic performance. The gold price, projected operational performance and costs, as well as metallurgical recoveries, are taken into consideration in 1989determining the Mineral Reserve.




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The open pit Mineral Reserve shell optimisations were run on the Mineral Resource models. The process incorporated the mining layout, minimum width, MCF, operating factors (dilution, recovery), stripping ratio, relevant cut-off grades and modifying factors for reporting the Mineral Reserve.

A cut-off grade analysis at $1,200/oz was used to determine a full grade ore stope grade of 2.00g/t for the underground mine.

Underground stope designs were updated from the previously reported Mineral Reserve using the latest Mineral Resource models. Modifying factors for planned and unplanned rock dilution and ore loss were applied to obtain the reported Mineral Reserve.

Metallurgical, environmental, social, legal, marketing and economic factors were adequately considered at the Serra Grande mines, and have been updated as the project has been operateddeveloped.

Conclusion
There is no significant risk or uncertainty in the Mineral Resource and Mineral Reserve estimate at Serra Grande.

An independent external Mineral Resource and Mineral Reserve audit was undertaken in 2021 by SRK Consulting and found no significant flaws in process or output.

Map showing Serra Grande planned infrastructure and licences
Map showing the location, infrastructure and mining license area for Serra Grande, with the total mining lease area insert shown in the top right corner. The coordinates of the mine, as represented by the plant, are depicted on the map and are in the UTM coordinate system.




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USA

AngloGold Ashanti North America Inc manages the Silicon greenfields project, which is located in an emerging district in southern Nevada with significant potential.

The Silicon project is an exploration stage property 100% owned by AngloGold Ashanti. The Silicon project is located approximately 12km east of the town of Beatty in Nye County, Nevada, United States of America. The Silicon project is the most advanced of AngloGold Ashanti’s exploration properties within the Beatty District, an area with a long history of gold mining. A maiden Mineral Resource at Silicon totaling 3.4Moz is declared in 2021. A recently completed conceptual study supports potential for Silicon as an open pit operation amenable to heap leach processing. Planning is underway for PFS studies at Silicon in 2022.

As at 31 December 2021, AngloGold Ashanti had entered into a definitive arrangement agreement (dated as of September 13, 2021) to acquire all the issued and outstanding common shares of Corvus Gold. The acquisition was completed on 18 January 2022. This will add the development stage North Bullfrog project and exploration stage Mother Lode project into the AngloGold Ashanti North America portfolio, which in combination with Silicon and other exploration targets, provides the opportunity to develop a world-class operational cluster within the Beatty district.

SILICON

Property description
The Silicon project is an exploration stage property 100%, with no Mineral Reserve declared, owned and managed by AngloGold Ashanti. A conceptual study was completed in September 2021 and supports the reporting of a maiden Mineral Resource.

Location
The Silicon project is located approximately 12km east of the town of Beatty in Nye County, Nevada, USA. The project is within the Bare Mountains sub-district, of the Bullfrog Hills-Bare Mountains District.

The Bullfrog Hills-Bare Mountains District is an historic mining centre that produced more than 3Moz of gold and 4Moz of silver, primarily from the Barrick-owned Bullfrog pit (2.6Moz gold, 4.2Moz silver). Exploration drilling undertaken by AngloGold Ashanti since 1999.to date has delineated significant gold mineralisation at the Silicon project, characterised as an epithermal system hosted in volcanic rock units.


Geology
The Silicon project lies within the southern extension of the Walker Lane trend and overlies the far-western margins of the southwestern Nevada volcanic field (“SWNVF”). The SWNVF comprises an overlapping complex of calderas (Timber Mountain Caldera Complex) about 30km to the east of Silicon, that developed between 15 and 11Ma.

The geology of the Silicon project comprises a stack of ignimbrite sheets, cut by complex listric faulting. Mineralisation occurred at ca.11.6Ma in the hiatus between large scale ignimbrite events, in apparent association with rhyolitic volcanism. Silicon is interpreted as an epithermal high-level expression of a magmatic-derived advanced argillic alteration system. Actual gold ore depositsdeposition appears to have occurred under less acidic and low to intermediate sulphidation conditions.

Mineralisation at Silicon exhibits a strong vertical control and is strongly associated with the emplacement of hydrothermal breccias whose matrix is composed of black quartz-pyrite or in quartz +/- pyrite veinlets zones. Pre-existing subvertical faults, particularly centres on the Silicon-Tramway fault system, strongly controlled the emplacement of the hydrothermal breccias and quartz +/pyrite veinlet zones. A stratigraphic control on mineralisation is at best a second order feature; the overwhelming control to mineralisation appears to be structure.

History
Silicon was first presented to AngloGold Ashanti in early-2016 with the earn-in Option Agreement with then-owners Renaissance Gold Inc. (“RenGold”) signed 21 June 2017. The agreement gave AngloGold Ashanti an option to acquire a 100% interest in the project through total payments of $3m to RenGold over three years. This option was fully exercised on 3 June 2020, with RenGold maintaining a 1% NSR on a defined area of interest on the Silicon project. On 18 August, RenGold announced that, subsequent to their merger with Evrim Resources Corp., the newly combined company would be re-named as Orogen Royalties Inc.




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The Silicon project area is currently comprised of a block of 949 unpatented mining claims on federally owned public lands, administered by the Bureau of Land Management (“BLM”). The initial land holding comprised 277 unpatented mining claims under Renaissance Exploration Inc., a subsidiary of Renaissance Gold Inc. Subsequently, AngloGold Ashanti has completed three phases of claim staking, contiguous to the original claim package, for an additional 672 unpatented mining claims.

Legal aspects and tenure
Refer to “Item 4B: Business Overview—The Regulatory Environment Enabling AngloGold Ashanti to Mine—Americas—United States of America—AngloGold Ashanti’s rights and permits”.

Mining method
The Silicon deposit is generally a large low-grade deposit, with a smaller high-grade core (expanding at depth). The nature of the Silicon orebody lends itself to conventional large scale open pit mining, which was the mining method chosen for the conceptual study. Conventional drill and blast would be followed by conventional load and haul, using a combination of large-scale hydraulic shovel or excavator and rigid body dump trucks. The material mined would be transported to the ROM stockpile, where it would be either tipped directly into the crusher or stockpiled to be fed at a later time.

Operational infrastructure
The Silicon project area currently has minimal infrastructure on site, as it is an exploration area. Current access roads are unsealed, and will require upgrading prior to commencing the project. The Silicon project is located in Nevada, which has several large mining operations currently in production, and as such provides access to all required major mining and processing equipment. The transport infrastructure in Nevada is very well established and maintained.

The town of Beatty and urban centres in the Rio Vermelhoregion such as Pahrump and Ribeirão das Antas FormationsLas Vegas offer infrastructure and services that can support the operation.

The Property, Plant, and Equipment as of the Archaean Pilar de Goia’s Group which account togetherend of December 2021 had a carrying value of less than $1m.

Mineral processing
Nevada has a strong presence of heap leach operations, while some ores are refractory and require more complex process flowsheets. Three broad flowsheets were evaluated in the conceptual study to cover the extremes of capital, operating costs and level of complexity. These included heap leaching (ROM and crushed leach); conventional milling and leaching, and finally; milling with a float-fine-grind leach circuit. Both milling options included gravity recovery.

An extensive metallurgical program tested the recovery response of ores from four main alteration or weathering ore types. A few P100 44mm crushed leach column tests were conducted on PQ core to inform on the potential recovery for a large proportionROM heap leach. The estimated gold recovery displayed lower recoveries, albeit at the lowest cost. A crushed leach with a P100 of 12.5mm achieved the best economic result, where recovery was improved for a moderate increase in costs. The conventional leaching and float-fine-grind options had further improved recoveries, but these were over-shadowed by larger increases in cost. The 12.5mm crushed leach option provided the best outcome at the conceptual study level and was selected as the preferred case for the study.

Qualified Persons
SiliconQualified PersonProfessional OrganisationMembership numberRelevant Years ExperienceQualification
Mineral ResourceDerek NicholsonAusIMM30618519 yearsBSc (Geology), Postgraduate Certificate (Geostatistics)

Exploration
Refer to “Item 4B: Business Overview—Exploration review”.

Mineral Resource
Refer to Table 1a to Paragraph (b) prepared in accordance with Regulation S-K 1300 (229.1303 (Item 1303)) that summarises the gold Mineral Resource (exclusive of Mineral Reserve) for Silicon at the end of the Crixás Greenstone Belt in central Brazil.Fiscal Year ended 31 December 2021 based on $1,500/oz. The Mineral Resource is reported for the first time under Regulation S-K 1300 and thus no net difference can be reported. There is no Mineral Reserve for Silicon at the end of the Fiscal Year ended 31 December 2021.





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Refer to the Key Parameters under Material Assumptions for additional information on cut-off grades and metallurgical recovery. For additional information, see the Technical Report Summary on each individual property, filed as an Exhibit of this annual report on Form 20-F.

Material Assumptions for the Mineral Resource

Key Parameters
SiliconUnitOpen Pit
Costs
Ore mining cost$/tonne mined2.03 
Waste mining cost$/tonne mined2.03 
Processing cost$/tonne treated3.82 
Closure cost$/tonne treated0.12 
Rehandling cost$/tonne treated0.80 
Fixed cost$/tonne treated0.38 
G&A$/tonne treated0.50 
Other Parameters
Metallurgical Recovery Factor%MetRF
56-82(1)
Slope anglesdegree
43-54(1)
Mineral Resource cut-off gradeg/t
0.14-0.21(1)
Mineral Resource price$/oz1,500 
(1) Vary according to rock / ore type

Estimation
The stratigraphyestimation of the beltMineral Resource considers a geological mineralisation model consisting of three zones based on geological alteration and gold grades, these are: a high-grade zone of over 1.0g/t of gold, a low-grade zone of between 0.35g/t and 1.0g/t of gold, and an outside zone of less than 0.35g/t that is dominatedmodelled to estimate metal to define dilution or waste zones. The composites are created at the average of the sampling support and are 2m for each of the three zones. A contact analysis was conducted between high-grade and low-grade zones and supported a soft-boundary approach for the estimation that allows interaction inside and outside the contact for 3m (two composites). For the outside zone, the estimation is based only on samples outside the 0.35g/t low-grade contact.

Exploratory data analysis was completed for each geological domain has exploratory data analysis completed to define the capping, variography and estimation parameters. The high-grade zone was capped at 50g/t which is 99.69% of the distribution. The low-grade zone was capped at 20.8g/t which is 99.92% of the distribution. The outside zone was capped at 1.83g/t which is 99.97% of the distribution.

All estimation was done utilising ordinary kriging, into a parent cell of 20 x 20 x 10m. The interpolation parameters are based on the exploratory data analysis and Quantitative Kriging Neighbourhood Analysis (“QKNA”) which defines the final parameters. For the high-grade zone, the estimation search reflects the range of variography of 110 x 80 x 12m. The same approach was followed for the low-grade zone, with a search of 135 x 79.5 x 87m. Both zones are estimated using a minimum of six samples and a maximum of 128 samples within angular sectors, to enhance the grade tonnage curves and swath plot validations.

For the outside zone, a more continuous variogram was obtained, but to avoid extended lateral extrapolation the search volume was defined as 282 x 141 x 100m. The maximum estimated distances respect the search volume distances for the three geological zones and there are no zones where attributed grades are out of an estimated value. An insignificant number of negative grades estimated were replaced by basics and ultrabasicsaverage grades.

Conclusion
Identified significant risks or uncertainties in the lower sequencesMineral Resource estimate can all be mitigated with volcano sedimentary units formingfurther work if properly managed. Given the upper successions.

The gold depositsexploration stage of the project, a number of risks, uncertainties and opportunities, are hostedevident in a sequencethe confidence of schists, meta volcanicsthe known orebody and dolomites occurring in a typical greenstone belt structural setting. Gold mineralisation is associated with massive sulphidespotential for upside at Silicon and vein quartz material associated with carbonaceous and sericitic schists and dolomites.  The oreshoots plunge to the north-west with dipping between six and 35 degrees. The stratigraphy is overturned and thrusted towards the east, being recognized different shear thrust structures that are stacked and controls the mineralisation, behaving as frontal and lateral ramps and horses.

The greenstone belt lithologies are surrounded by Archaean tonalitic gneiss and granodiorites of TTG suite. The metamorphic sediments are primarily composed of quartz, chlorite, sericite, carbonaceous material and garnetiferous schists. The carbonates have been metamorphosed to ferroan dolomite marble with development of siderite and ankerite veining in the surrounding wallrock, usuallyarea. Similarly, metallurgical characteristics and variability require further investigation. Mining rate is an area of notable opportunity, as are selectivity studies. Environmental and permitting risks are mainly associated with quartz veins.potential delays to project progression and as such permitting remains on the critical path.




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Map showing Silicon planned infrastructure and licences
Map showing the location, infrastructure and mining license area for Silicon. The basaltscoordinates of the mine, as represented by the Silicon pit, are relatively unaltered but do show pronounced stretching with elongation of pillow structures being evident.

The Crixás greenstone belt comprises a series of Archaean to Palaeoproterozoic metavulcanics, metasedimentsdepicted on the map and basement granitoids stacked within a series of north to north-east transported thrust sheet. Thrusting (D1) was accompanied by significant F1 folding/foliation development and progressive alteration in a brittle-ductile regime. D1 thrusting was developed with irregular thrust ramp geometry, in part controlled by concealed early basin faults. The main Crixás orebodies are adjacent to a major north‑northwest structural corridor, and up the main fault ramp/corner, to become dispersed to the east and north in zones of foreland thrust flats. Fluid alteration also diminished to the west away from the main fault corner. A series of concealed east-west to northwest‑southeast basement block faults may have provided secondary fluid migration, and development of early anti‑formal warps in the thrust sheets; these structures probably define the quasi‑regular spacing of significant mineralisation within the belt. The D1 thrust stack was gently folded by non‑cylindrical folds. Gold mineralising fluids probably migrated during this event, with similar south‑south‑west to north‑north‑east migration, and focusing on bedding slip during folding. Gold mineralisation became minor and dispersed to the north and east along the formal thrust flat zone. Concentrations of gold along the case of quartz vein may be due to the damming of fluids migrating upward along layering.UTM coordinate system.


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COLOMBIA

AngloGold Ashanti Colombia has three greenfields projects: La Colosa, Quebradona and Gramalote.
Colombia - Gramalote

Description
The Gramalote Projectjoint operation (AngloGold Ashanti, 50% and B2Gold, 50%, with B2Gold being the manager), is situated in the Department of Antioquia, 124km northeast of Medellin and is currently managed by B2Gold.

Nuevo Chaquiro, wholly owned and managed by AngloGold Ashanti, is a significant copper-gold porphyry located within the Quebradona project. The Quebradona project is situated in the Middle Cauca region of Colombia, in the Department of Antioquia, 60km southwest of Medellin.

The wholly owned and managed La Colosa project is currently under force majeure until the necessary environmental permits are issued.

GRAMALOTE

Property description
Gramalote is a joint ventureoperation between AngloGold Ashanti (51 percent and manager)(50%) and B2Gold (49 percent).(50%), with B2Gold being the manager, through the managing company Gramalote Colombia Limitada. The project’s Mineral Resource comprises ounces from three orebodies, namely Gramalote Central, Monjas West (also referred to as Monjas), and Trinidad. The property is currently an exploration stage project with no Mineral Reserve declared.






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Location
The Gramalote property is located near the towntowns of Providencia and San Jose del Nus within the municipality of San Roque in northwest of the Department of Antioquia, Colombia. It is approximately 230 km230km northwest of the Colombian capital of Bogota and 124 km124km northeast of Medellin, which is the regional capital of the Antioquia Department.

Geology
The region encompassing Gramalote deposit is an intrusive hosted, structurally controlled, quartz stockwork system. Mineralisation is controlled by northeast to southwest trending strike-slip shear zones, north-northwest to south-southeast trending extensional shear zones and dilational fractures. Gold mineralisation is associated with stockwork veining and in particular quartz with fine pyrite veins, quartz-carbonate veins, and quartz with coarse pyrite veins.

Alteration occurs as both broad zones and narrow selvedges around veins. The intensity of the alteration is directly related to both the frequency of veins and their size. The wider the vein, the wider the alteration selvedge, ranging from a few millimetres around isolated veinlets to tens of centimetres around thick veins. In zones of stockwork, or where several veins are close enough to merge their selvedges, the alteration halo is wider. The potassic alteration event is associated with Type I and Type II veins and it is characterised by a selvedge of K-feldspar with disseminated pyrite. The white-mica event is characterised by a less pervasive distribution than the potassic event and it is restricted to selvedges of a few centimetres wide around the Type III veins (quartz, calcite, white mica, pyrite and chalcopyrite). It is not associated with wide veins, and it does not carry high gold grades.

Mineralisation is closely linked to alteration and is therefore structurally controlled. The mineralisation is vein hosted, either in sheeted veins or in local stockworks. Three stages of mineralisation are identified and associated with vein and alteration types:
•Quartz-calcite-pyrite is an assemblage of fine-grained quartz and calcite with very fine-grained pyrite. This vein type generally does not contain gold.
•Quartz-pyrite-chalcopyrite gold is the most important gold host, typically associated with K-feldspar (potassic) selvedges where gold occurs within fractures in pyrite, along with chalcopyrite.
•Quartz-calcite-white mica selvedges where veining is commonly barren but can show moderate gold grades (up to 20g/t).

History
Gramalote comprises one integrated exploitation concession and one exploration concession which was granted in June 2019. The first, the 14292 concession totalling 8,720.71ha, expires on 3 April 2043 and contains the Gramalote and Monjas anomalies. The second is the 4894 concession which is 2,292.81ha and hosts the Trinidad anomaly. This concession was granted on 12 June 2019 and has an overall duration of 25 years.

In 2016, the project received its environmental permit from Colombia's National Environmental Licensing Authority (“ANLA”), its environmental permit and its construction permits from the Secretary of Mines, in order to operate for the LOM. Both permits are associated to the concession 14292, pending the resettlement of communities and the formal start of construction activities.

According to Colombian mining law, the exploration phase begins as soon as the concession contract is registered in the National Mining Registry. The total period for the concession contract (exploration, installation and construction, and exploitation) is 30 years, which may be renewed for an additional 20-year period. Under Colombian mining law, producing mines are subject to a long historyfederal royalty of artisanal4% on 80% of the value of gold mining. and silver production. Thus Gramalote’s net royalty is 3.2% on gold and silver production.

Legal aspects and tenure
Refer to “Item 4B: Business Overview—The Regulatory Environment Enabling AngloGold Ashanti to Mine—Americas—Colombia—AngloGold Ashanti’s rights and permits”.

Mining method
Gramalote itselfis a surficial low-grade gold deposit suitable to be operated as a conventional open pit truck and shovel operation. Standard open pit mining equipment has been selected, with conventional drilling, blasting, loading and hauling using a combination of large-scale hydraulic shovel or excavator and rigid body dump trucks. The material mined would be transported to be either tipped directly into the crusher or stockpiled at the ROM stockpile to be fed or treated later. A PFS concluded that the project is suitable to be mined as a conventional open pit, with a strip ratio of approximately 2.5:1, and an average mining rate of 47Mtpa (max 60Mtpa). The LOM is estimated at 14 years (plus one year of pre-stripping).



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Operational infrastructure
Key infrastructure planned includes: a TSF, waste rock facility, site water management, a creek diversion, roads and bridges, central workshop, offices and camp, and a process plant. Power is expected to be supplied from the national power grid. Access is through a national road.

The Property, Plant, and Equipment as of the end of December 2021 including land, buildings & mine infrastructure, greenfields capitalised exploration and assets under construction had small scale artisanala carrying value of $55m (reported as attributable, 50% owned by AngloGold Ashanti).

Mineral processing
A range of treatment options for sulphide ore were investigated in previous studies, including whole ore leaching, heap leaching and a float leach process. The float leach process was selected as offering much better economics.
While the metallurgical design may change in the enhanced FS, the PFS design is as follows:
•Processing by two parallel semi-autogenous grinding streams, one treating 11.3Mtpa of sulphide ore and the other 4.1Mtpa of oxide ore, switching to sulphide once the oxide is exhausted
•Gold recovery post milling by flotation and concentrate leach in two separate circuits for sulphides and oxides
•Conventional tailings deposition

Qualified Persons
GramaloteQualified PersonProfessional OrganisationMembership numberRelevant Years ExperienceQualification
Mineral ResourceTom GellAusIMM21179530 yearsBSc (Geology), BSc Hons (Geology)
Mineral ReserveRomulo SanhuezaAusIMM21179424 yearsBSc Eng (Mining)

Exploration
Refer to “Item 4B: Business Overview—Exploration review”.

Mineral Resource
Refer to Table 1a to Paragraph (b) prepared in accordance with Regulation S-K 1300 (229.1303 (Item 1303)) that summarises the gold Mineral Resource (exclusive of Mineral Reserve) for Gramalote at the end of the Fiscal Year ended 31 December 2021 based on $1,400/oz. The Mineral Resource is reported for the first time under Regulation S-K 1300 and thus no net difference can be reported. There is no Mineral Reserve for Gramalote at the end of the Fiscal Year ended 31 December 2021.

Refer to the Key Parameters under Material Assumptions for additional information on cut-off grades and metallurgical recovery. For additional information, see the Technical Report Summary on each individual property, filed as an Exhibit of this annual report on Form 20-F.

Material Assumptions for the Mineral Resource

Key Parameters
GramaloteUnitOpen Pit
Costs
Ore mining cost$/tonne mined2.55
Waste mining cost$/tonne mined1.79
Processing cost$/tonne treated5.85
G&A$/tonne treated2.58
Other Parameters
Metallurgical Recovery Factor%MetRF
82-95(1)
Slope anglesdegree
27.4-57.6(1)
Mineral Resource cut-off gradeg/t
0.13-0.17(1)
Mineral Resource price$/oz1,400 
(1) Vary according to rock/ ore type and area Note: A royalty is also considered estimated at 3.2% of the selling price (80% of 4% of the selling price).



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Estimation
For the 2017 PFS, results from approximately 145,000m of drilling (87,900m at Gramalote Central, 11,250m at the Trinidad area and 17,850m at Monjas West area) were used to support the estimation of the Mineral Resource. Mineral Resource modelling was performed using a geological model based on alteration, vein abundance and gold grade. Assay gold grades were composited to 2m down-hole intervals and outliers were capped based on the distribution observations using probability plots for each estimation domain. LUC was used to estimate block grades and quantify the effect of selective mining.

As drill assays are still pending for some of the drilling completed in 2021, the updated Mineral Resource model update is not yet complete and hence it has not yet been incorporated into the Mineral Resource statement which continues to use the 2017 AngloGold Ashanti PFS model.

Mineral Reserve
Year on year changes in Mineral Reserve - Moz
as at 31 December 2021Gramalote
CategoryProvenProbableTotal
Previous Year— 1.723 1.723 
Depletion— — — 
Exploration— — — 
Methodology— — — 
Price— — — 
Cost— — — 
Geotechnical— — — 
Metallurgical— — — 
Operational— — — 
Acquisition / Disposal— — — 
Other— (1.723)(1.723)
Current Year— — — 
Net Difference— (1.723)(1.723)
% Difference— (100)(100)
The Mineral Reserve has not been quoted on the New York Stock Exchange (“NYSE”) due to the uncertainty of using Inferred Mineral Resource in generating the Mineral Reserve and due to differences in the Mineral Resource estimate between the joint operation partners. AngloGold Ashanti are currently incorporating additional drilling into a revised model and have not reached agreement with the joint operation partner and thus no Mineral Reserve will be published.

Conclusion
The low-grade Inferred Mineral Resource estimate has low confidence and therefore represents a high-risk part of the Mineral Resource estimate due to the broad drill spacing. As a risk mitigation action, grade control test blocks were drilled to confirm short-scale continuity, mineralisation geometry and geological contacts. In November 2019 a 40,000m drilling program commenced across the anomalies to reduce risk and verify projected upside. The results of this became available during 2021, and as a result additional specific areas were targeted for supplementary drilling. The results to this latest drilling is expected in quarter one of 2022 which will be used to update the Mineral Resource model and the economic studies for the project.

Poor digitising practices by the Colombian authorities of the 11 original licences that make up the main mining licence concession (14292), have created slithers of open ground that cross the Gramalote deposit. These have been claimed by a third party (Zonte Metals). While AngloGold Ashanti believes that Zonte does not have a valid claim, Zonte is proceeding with legal action against the Secretaria de Minas (Secretary of Mines) for several decades priorthe Department of Antioquia, for not titling an exploration application for the open ground.

A number of Mineral Reserve estimate risks or uncertainties have been recognised, all of which have detailed risk mitigation strategies in place, including:
•Artisanal miners within the project footprint area that are being formalised at arm's length using Government agencies that guide, fund and regulate their activities
•The 2018 baseline study identified 271 social economic units that may have to be relocated and resettled



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The land acquisition process has been successful. A total of ~3,132ha has been acquired (63.6%), 567ha in promise of sale, and 635ha under special acquisition process. The total land pending to be acquired amounts ~590ha (12%).

Map showing Gramalote planned infrastructure and licences
Map showing Gramalote project planned infrastructure and licenses, with the total mining lease area insert shown in the top right corner. The coordinates of the mine, as represented by the planned pit, are depicted on the map and are in the UTM coordinate system.

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LA COLOSA

Property description
La Colosa is an exploration workproject that is wholly owned and mineral discoverymanaged by AngloGold Ashanti. DevelopmentIt is in its fifth year of force majeure and as a result the project is on hold. La Colosa is an exploration stage project with no Mineral Reserve declared.

Location
The project is located 150km west of the GramaloteColombian capital city, Bogota, and 30km west of the major town of Ibague, which is the capital of the Tolima Department and the location of local government entities monitoring the project.

Geology
The porphyry gold deposit deposit forms part of what is generally known as the Middle Cauca Metallogenic Belt. The best known porphyry (Cu-Au, Au-Cu, Au) and intermediate sulphidation Au-Ag deposits in the Middle Cauca Metallogenic Belt are the Marmato and the Buritica mining operations. Advanced exploration studies exist for the Quebradona, the Titiribi, and the La Mina deposits.

The La Colosa porphyry complex consists of three intrusive stages: the early, the intermineral, and the late-stage magmatic event. The complex exceeds 3km2 in areal extent. The U-Pb ages obtained range between 7.4Ma and 8.5Ma indicating the emplacement of the early, intermineral and late intrusive porphyry stocks occurred during a very



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short time span of about 1.1Ma. The emplacement of the La Colosa and San Antonio porphyry stocks caused contact metamorphism that transformed the proximal country rocks into hornfels. Recent volcanism in the Central Cordillera accounts for an ash cover varying between 0.5m and 15m thick. The source is the Cerro Machin stratovolcano, located about 17 km to the east of the La Colosa project commenced with a scoping study in 2009. A numbersite.

The La Colosa porphyry gold deposit has nine defined broad hydrothermal alteration assemblages: sodic-calcic alteration, potassic alteration, quartz-sericite alteration, sericitic alteration, chloritic alteration, propylitic alteration, intermediate argillic alteration, silicification, and supergene argillic alteration. Eight types of studies followed, leading to submission of a prefeasibility study (PFS) in late 2013, which did not meet investment hurdles. From 2014 to 2017 intensive work was undertaken by all technical disciplines to identify ways to improve the project economics.porphyry veinlets have been recognised: early biotite veinlets, A-type veinlets, B-type veinlets, M-type veinlets, N-type veinlets, AC-type veinlets, S-type veinlets, and D-type veinlets The main changes were an improved orebody model, grade streaming to increase the feed gradeveinlets occur in the early, yearsintermineral and early treatment oflate porphyries, as well as in the oxide ore that overlies the main sulphide resource. An enhanced PFS (EPFS) reportschistose wall rock. In addition, there are veinlets representing a younger, late or post-porphyry event. Gold occurs predominantly as native gold, as electrum, and in minor quantities as gold tellurides and gold-silver tellurides. Gold occurs as isolated grains and as inclusions or fracture fillings in pyrite, pyrrhotite, and silicate minerals such as feldspar and quartz.

History
Mineralisation at La Colosa was discovered by AngloGold Ashanti’s Colombian greenfields exploration team in 2006. Drilling commenced in 2007 and a conceptual study was completed in September 20172008.

Legal aspects and tenure
Refer to “Item 4B: Business Overview—The Regulatory Environment Enabling AngloGold Ashanti to Mine—Americas—Colombia—AngloGold Ashanti’s rights and permits”.

Mining method
The project is still under development and a number of options were being investigated before force majeure was declared. Open pit mining (with potentially minor underground mining) is the preferred mining method. Initial sensitivity studies for annual throughputs ranging from 6Mtpa to 26Mtpa have been carried out. Geotechnical studies for pit designs are at advanced PFS level and pit hydrogeology is at an initial PFS level according to the company standards. The earlier mining studies have used pit optimisations for different gold prices, however, did not advance to more detailed open pit designs.

Operational infrastructure
Currently, the project has field infrastructure that supports access to the Mineral Resource with roads, accommodation, and office and surface infrastructure for pre-logging and organisation of the drilling core. There is a core shed facility in the city of Ibague where geological and geotechnical logging are performed. However, all work has stopped.

The Property, Plant and Equipment as of the end of December 2021 including land, buildings and mine infrastructure and greenfields capitalised exploration costs had a carrying amount of $17m for La Colosa and $1m for Kedahda consolidated.

Mineral processing
The project is currently at an early stage however flotation of sulphide ore is being considered as a treatment option.

Qualified Persons
La ColosaQualified PersonProfessional OrganisationMembership numberRelevant Years ExperienceQualification
Mineral ResourceRudolf JahodaAusIMM99054428 yearsMSc (Mining Geology), PhD (Geology)

Exploration
No exploration occurred at La Colosa.

Mineral Resource
Refer to Table 1a to Paragraph (b) prepared in accordance with Regulation S-K 1300 (229.1303 (Item 1303)) that summarises the gold Mineral Resource (exclusive of Mineral Reserve) for La Colosa at the end of the Fiscal Year ended 31 December 2021 based on $1,400/oz. The Mineral Resource is reported for the first time under Regulation S-K 1300 and thus no net difference can be reported. There is no Mineral Reserve for La Colosa at the end of the Fiscal Year ended 31 December 2021.




159

Refer to the Key Parameters under Material Assumptions for additional information on cut-off grade and metallurgical recovery. For additional information, see the Technical Report Summary on each individual property, filed as of this annual report on Form 20-F.

Material Assumptions for the Mineral Resource

Key Parameters
La ColosaUnitOpen Pit
Costs
Ore mining cost$/tonne mined2.1
Waste mining cost$/tonne mined2.3
Processing cost$/tonne treated8.98
G&A$/tonne treated1.74
Other Parameters
Metallurgical Recovery Factor%MetRF
82.2-87.3(1)
Slope angles - Hangingwalldegree
34-50(1)
Mineral Resource cut-off gradeg/t0.35
Mineral Resource price$/oz1,400 
(1) Vary according to rock / ore type

Estimation
At La Colosa, approximately 148,062m of drilling supports the estimation of an Indicated Mineral Resource. Gold grades were estimated using ordinary kriging, which was performed into a block size of 50 x 50 x 10m using wireframed lithological domains in a grade-based mineralisation envelope. Estimates were also undertaken for the waste surrounding the mineralisation.

All available geological drill holes, surface sampling and mapping information was validated and used in the modelling process.

The La Colosa Mineral Resource is reported at a cut-off grade of 0.35g/t and it has been classified on the basis of kriging variance related to drill hole spacing.

Conclusion
The La Colosa project is currently at an early project stage and has identified a number of possible technical options all of which are capital intensive. The political risks associated with the recommendationmining industry in Colombia, specifically in the Tolima Department, must also be considered in the estimation of the Mineral Resource. The delineation of the Los Nevados Páramo by Resolution 1987 in November 2016 is considered a risk or uncertainty in the Mineral Resource estimate and it is currently being contested. This puts 13.99Moz of Mineral Resource at risk. The failure to grant environmental permits for site operations has hampered progress toand it is the FS. A successfulreason that force majeure was accepted by the government.

Map showing La Colosa planned infrastructure and licences
Map showing La Colosa project planned pit and licenses. The coordinates of the mine, as represented by the pit, are depicted on the map and are in the UTM coordinate system.





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QUEBRADONA

Property description
The Quebradona project was previously a JV between AngloGold Ashanti and B2Gold, and completed a conceptual study (2016) as well as a PFS was completed in 2017,(2018), which supported the reporting of a maiden OreMineral Reserve. Power

The Nuevo Chaquiro deposit that is part of Minera de Cobre Quebradona Project completed a FS in 2021, however the Environmental Impact Assessment (“EIA”) was not approved by the ANLA in 2021. A work plan to address the issues raised by ANLA is being developed and it is expected that this will take 18 to 24 months to complete. During this paused time period additional work will be done on the project. During 2019, B2Gold participation dropped below 5% which triggered AngloGold Ashanti becoming the 100% owner and manager and B2Gold holding reverting to a Net Smelter Return (“NSR”). B2Gold holding will be entitled to a Royalty equal to 2% of the Net Profit generated from the sale of any Product.

Five main targets have been identified in the exploration work, namely Nuevo Chaquiro, Aurora, Tenedor, Isabela and La Sola. Nuevo Chaquiro is the most advanced of the targets and the sole mineral deposit considered in the FS and licensing process. Nuevo Chaquiro, a significant copper-gold porphyry-style mineralised system, is one of five known porphyry centres on the property and has been the focus of exploration activities since the beginning of 2011 with more than 75km of drilling. Quebradona will be a copper mine with gold and silver as by-products and is at a development stage.

Location
The Quebradona project is situated in the Middle Cauca region of Colombia, in the Department of Antioquia, 60km southwest of Medellin and is a 104km commute using the national highway.




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Geology
Nuevo Chaquiro is a typical porphyry copper deposit with large tonnes and low-grade, with gold, molybdenum and silver by-products. The structural setting facilitated the rise of intrusive bodies through the volcaniclastic sequence of the Combia formation.

The Nuevo Chaquiro deposit consists of Miocene-aged diorite, quartz diorite dykes and thin vertical stocks intruding a thick succession of andesitic tuffs and volcaniclastic rocks of the Miocene-age (6 to 10Ma) belonging to Combia formation. The Combia formation fills a large pull-apart basin within the prospective middle Cauca belt of central Colombia. Depth to mineralisation from the surface is around 150 to 400m from northeast to southwest. Typical copper porphyry alteration zonation is evident with a high temperature, potassium silicate central zone (biotite, magnetite, chalcopyrite, and molybdenite), which trends into an overlying sericitic alteration zone (muscovite, chlorite, quartz, pyrite, tourmaline) surrounded by more distal propylitic alteration (chlorite, epidote, illite, carbonate). There is an inner core of calcic-potassic alteration featuring biotite, actinolite, epidote, and anhydrite with lesser copper, gold and molybdenum values.

History
Exploration was carried out from 2004 by AngloGold Ashanti and then from 2006 to 2009 by B2Gold. In 2010 AngloGold Ashanti took management control and focused its exploration effort on Nuevo Chaquiro. In 2014 a conceptual study was initiated which resulted in a declaration of a maiden Mineral Resource in that year. A PFS was completed in January 2019 and a FS completed in 2021. The FS review raised several points which will be addressed during the pause period caused by the delay in the environmental permitting.

Legal aspects and tenure
Refer to “Item 4B: Business Overview—The Regulatory Environment Enabling AngloGold Ashanti to Mine—Americas—Colombia—AngloGold Ashanti’s rights and permits”.

Mining method
The Quebradona project is a greenfields site having completed an initial FS in 2021 which is expected to be supplied toformally approved following the Gramalote project from the National Power Grid.

Geology
The Gramalote deposit is located in the northern portiongranting of the Central Cordilleraenvironmental and mining licenses that supports the preferred mining method of Colombia.sub-level caving to extract the ore deposit from underground. The terrain is mainly composedoptimised mine design consisting of a metamorphic basement complexrevised mining layout and the Antioquia Batholith. The terrane of the Cajamarca-Valdivia basement consists of

metamorphic rocks, volcanic rocks, oceanic ophiolites and intrusive rocks. The Antioquia Batholith of Upper Cretaceous age covers an area of 7221 km2 and constitutes, the core of the Central Cordillera. About 92 percent of this intrusive corresponds to (normal phase) tonalite and granodiorite and eight percent to two subordinate types of rocks - granodiorite to quartz-monzonite and gabbro. From a structural point of view, the Antioquia Batholith has a history of uprising complex and lasting. Major lineaments affect the batholith, especially in its eastern sector where traces of trend WNW varying to NW, recorded rotation and shear sinistral movement. Westward dextral transpression dominates along the Romeral Fault System.

Gramalote is an intrusive-hosted structurally controlled stockwork gold and silver deposit. Mineralisation is controlled by north-east/south-west trending shear zones and north-northwest to south-southeast trending shear extensional zones affecting the tonalites and granodiorites of the Antioquia Batholith. Gold mineralisation is associated with three overprinting texture destructive alteration assemblages including potassic, quartz-sericite and sericite carbonate. Within these alteration zones, anomalous gold mineralisation is associated with three specific types of stockwork quartz veining. These include quartz veinlets with fine-grained pyrite, quartz-carbonate veinlets and quartz veinlets with granular pyrite.

ORE RESERVE

The combined Proven and Probable Ore Reserve of the group amounted to 44.1 million ounces (Moz) as at 31 December 2018. The first AngloGold Ashanti Ore Reserve for copper of 2,769 million pounds (Mlbs)mine schedule is based on exploration successthe 2021 Mineral Resource model. With the application of operating factors, the relevant cut-off grades, and modifying factors the completionDecember 2021 Mineral Reserve is then estimated.


FS level test work confirmed that the ore will be treated by a typical porphyry copper flotation circuit producing a copper and gold concentrate from processing approximately 6.2Mtpa underground ore over a 23-year operating period. The FS proposes a processing circuit that includes primary crushing underground, secondary crushing, high pressure grinding rolls, ball milling, rougher-scavenger flotation for all elements (copper, gold, silver as well as pyrite), followed by regrinding the concentrate and cleaning using a mix of column and mechanically agitated cells.

Operational infrastructure
The project is close to an existing highway, state and rural roads, and high voltage or medium voltage power infrastructure. The planned underground infrastructure consists of a twin adits to access the orebody and number of internal vertical ore passes that gravity feeds to the main ore transfer level. The material will be transferred to the main internal crusher by load and haul dump vehicles.

Crushed material will then be transferred downhill to surface via a 6km conveyor, in a dedicated adit to a single coarse ore stockpile.

The Property, Plant, and Equipment as of the prefeasibility study at Quebradona.end of December 2021 including lease assets, land, buildings and mine infrastructure, greenfields capitalised exploration and assets under construction had a carrying value of $125m.


Mineral processing
Metallurgical studies completed during the FS have confirmed the different ore types present in the orebody can be treated by a typical porphyry copper flotation circuit to produce a copper and gold concentrate. Ore Reserve estimates are reportedextracted from the sub-level cave is crushed underground where waste debris and tramp metal is removed before loading onto the 6km underground conveyor system for delivery to the surface processing coarse ore stockpile with a 24-hour live capacity (approximately 21,300t).




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The processing circuit includes underground primary crushing, secondary crushing, high pressure grinding rolls, ball milling, rougher-scavenger flotation for all elements (copper, gold, silver as well as pyrite), followed by regrinding of the concentrate and cleaning using a combination of column and mechanically agitated cells. The majority of the pyrite in the ore reports to the cleaner circuit tails and will be stored in a lined and eventually sealed impoundment within the TSF to avoid any potential acid rock drainage from the bulk high volume rougher tails.

The Quebradona process plant is designed to treat approximately 6.2Mt of material annually to produce copper concentrate over a 23-year operating period. Molybdenum is present in the ore and is not planned for recovery in the initial stages of production.

Qualified Persons
QuebradonaQualified PersonProfessional OrganisationMembership numberRelevant Years ExperienceQualification
Mineral ResourcePablo Luis NoriegaAusIMM31568823 yearsBSc Hons (Geology)
Mineral ReserveAndrew McCauleyAusIMM22369217 yearsGraduate Dip (Mining)

Exploration
Refer to “Item 4B: Business Overview—Exploration review”.

Mineral Resource
Refer to Table 1a to Paragraph (b) prepared in accordance with Regulation S-K 1300 (229.1303 (Item 1303)) that summarises the requirementsgold Mineral Resource (exclusive of Mineral Reserve) for Quebradona at the end of the SEC’s Industry Guide 7. Accordingly, asFiscal Year ended 31 December 2021 based on $1,500/oz. Refer to Table 1b to Paragraph (b) prepared in accordance with Regulation S-K 1300 (229.1303 (Item 1303)) that summarises the copper Mineral Resource (exclusive of Mineral Reserve) for Quebradona at the end of the date of reporting, all Ore ReserveFiscal Year ended 31 December 2021 based on $3.50/lb. The Mineral Resource is planned to be mined out under the life-of-mine plans within the period of AngloGold Ashanti’s existing rights to mine, or within the renewal periods of AngloGold Ashanti’s rights to mine. In addition, as of the date of reporting, all Ore Reserve is covered by required mining permits or there is a high probability that these approvals will be secured.

AngloGold Ashanti has standard proceduresreported for the estimation of Ore Reserve. These standard procedures are performed by experienced technical personnel at the mining operationsfirst time under Regulation S-K 1300 and reviewed by regional and corporate Competent Persons.thus no net difference can be reported.


In the case of its underground mines, the procedure is as follows: Firstly, gold content and tonnage are estimated for in-situ mineralised material at a mining operation. This mineralised material is not necessarily economically viable over the full extent of the operation. Exclusions on the grounds of safety (for example, stability pillars and shaft pillars) are then also defined. Grade-tonnage curves specific for each of the deposits, in conjunction with parameters such as the cost structure, yield, mine call factor and gold price estimates are used to determine an optimal mining mix. This process facilitates the determination of the average grade to be mined by each operation. This grade is then appliedRefer to the grade-tonnage curves, which in turn facilitates the determination of the cut-off grade and Ore Reserve tonnageKey Parameters under Material Assumptions for the operation. A full mine design is carried outadditional on the blocks of mineralised material, excluding any large mining areas that do not meet the cut-off grade criterion. This mining plan is reviewed to ensure that it satisfies the economic criteria and practical limitations of access and timing. If the review process is positive then the mineralised material (with dilution and discounts) included in the mining plan is declared and published as the Ore Reserve for that operation.

In the case of open-pit mines the procedure is as follows: revenue and costs are calculated for each mining block within a three-dimensional model of the ore body using estimated values for gold price, operating costs and metallurgical recoveries. An optimization process is then applied to determinerecovery. For additional information, see the combinationTechnical Report Summary on each individual property, filed as an Exhibit of blocks within the model that make a positive contribution under these estimations. Block selection is within a shell whose limits are defined by the planned slope angles of the pit. Within this process, a cut-off grade is applied which determines the ore blocks to be treated and included in the Ore Reserve. These blocks are scheduled with consideration being given to practical mining constraints and limitations. Scheduled ore blocks that are classified as Proven or Probable constitute the Ore Reserve.

The gold price used for determining the 2018 and 2017 Ore Reserve are outlined in the following table:
 2018
 2018
 2017
 

Units
(3 year
average)

 
(Ore
Reserve)

 
(3 year
average)

 
Ore Reserve Gold Price1,258
 1,100
 1,222
 $ per ounce  

The following copper price was used as a basis for estimation of the December 2018 Ore Reserve:
 2018 2018 2017 Units
(3 year
average)
 
(Ore
Reserve)
 
(3 year
average)
 
Ore Reserve Copper Price2.66 2.65 2.50 $ per pound

The Ore Reserve determined from the planning process was then tested for economic viability at the three-year historical average gold price shown in the above table for determining the SEC compliant Ore Reserve. The test indicates that all of the SAMREC/JORC Ore Reserve is economically viable and meets the requirements of the SEC. Therefore the SEC and SAMREC/JORC Ore Reserve are identical.

In South Africa, AngloGold Ashanti is legally required to publicly report Ore Reserve and Mineral Resource according to the South African Code for Reporting of Exploration Results, Mineral Resources and Mineral Reserves (The SAMREC Code, 2016 edition). The SEC’s Industry Guide 7 does not recognise Mineral Resource. Accordingly, AngloGold Ashanti does not report estimates of Mineral Resource in this annual report on Form 20-F.



Material Assumptions for the Mineral Resource



Key Parameters

Mineral Resource parameter summary - Quebradona
Parameter
Commodity prices - unitCu $/lbAu $/ozAg $/0zMo $/lb
Commodity prices - value3.50$1,500 25.1512
Metallurgical Recoveries - unitCu %Au %Ag %Mo %
Metallurgical Recoveries - value93.658.683.6534.1
Parameter
Costs - unitCosts - value
Mining cost $/t8.32
Processing cost $/t11.98
G&A (owner cost) $/t3.03
TSF $/t2.27
Closure $/t0.3
Environmental compensation $/t0.11
Environmental compensation general $/t0.06
Exploration cost $/t0.11
Social payment $/t0.46
Severance payment $/t0.26
Total for break even cut-off $/t26.9




Gold:



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Estimation
Estimation uses industry standard ordinary kriging to determine grades. The estimate validation is done graphically on a section by section basis comparing the block model to drill hole geological data, swath plots and statistical comparisons using average samples and average grade block comparisons are also used. New models are compared to old models to check changes. Gaussian anamorphosis with a change of support is used to check global grade-tonnage curves

The parent block size for estimation used is 40 x 40 x 20m with the overall drill spacing being approximately 80 x 80m. Typical searches are from 135m to 286m (typical for copper in high and low-grade respectively).

Estimation is done into different domains which are joined post estimation. Two domains for copper, one for molybdenum, two for sulphur and one for high-grade gold to the west are estimated.

Mineral Reserve
Refer to Table 2ato Paragraph (b) prepared in accordance with Regulation S-K 1300 (229.1303 (Item 1303)) that summarises the gold Mineral Reserve for Quebradona at the end of the Fiscal Year ended 31 December 2021 based on $1,200/oz. Refer to Table 2b to Paragraph (b) prepared in accordance with Regulation S-K 1300 (229.1303 (Item 1303)) that summarises the copper Mineral Reserve for Quebradona at the end of the Fiscal Year ended 31 December 2021 based on $2.90/lb.

Refer to the Modifying Factors and price estimates under Material Assumptions for additional information on cut-off grade and metallurgical recovery. For additional information, see the Technical Report Summary on each individual property, filed as an Exhibit of this annual report on Form 20-F.

Year on year changes in Mineral Reserve - copper (Mlb) and gold (Moz)
as at 31 December 2021Quebradona - copper (Mlb)Quebradona - gold (Moz)
CategoryProvenProbableTotalProvenProbableTotal
Previous Year— 3,105 3,105 — 2.486 2.486 
Depletion— — — — — — 
Exploration— — — — — — 
Methodology— 145 145 — 0.113 0.113 
Price— — — — — — 
Cost— — — — — — 
Geotechnical— — — — — — 
Metallurgical— — — — — — 
Operational— — — — 
Other— — — — — — 
Acquisition / Disposal— — — — — — 
Current Year— 3,250 3,250 — 2.599 2.599 
Net Difference— 145 145 — 0.113 0.113 
% Difference— 5 5 — 5 5 

Result of an update in the Mineral Resource model due to three new drill holes, in addition to revised Mineral Reserve classification based on conditional simulation.

Material Assumptions for the Mineral Reserve

Modifying factors and price estimates
as at 31 December 2021Quebradona
Primary Commodity Price(1)
$/lb2.90
Exchange Rate$/COP3,208 
Cut-off grade
NSR$/t(2)
30
Percentage Tonnes Dilution%4.14
Cu dilution%0.34
Au dilution(g/t)0.23
Ag dilution(g/t)2.13



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Cu Mine Call Factor% MCF100
Cu Metallurgical Recovery Factor(%MetRF)93.6
Au Metallurgical Recovery Factor(%MetRF)58.6
Ag Metallurgical Recovery Factor(%MetRF)83.6
(1) Primary commodity is copper. Gold price used is $1,200/oz. By-products prices include $18.67/oz for silver. (2) Net Smelter Return $ per tonne

Estimation
The underground Mineral Reserve is based on the most economic portions of the Mineral Resource model contained within a predetermine minable boundary based on a $30/t NSR cut-off grade that takes into account mining factors and mill recovery assumptions. The mining shapes are based on Measured and Indicated Mineral Resource with a portion of external material to provide an in situ $48/t NSR for project capital payback and $26/t NSR breakeven grade for processing of development waste.

Conclusion
Several risks or uncertainties have been identified in the estimation of the Mineral Resource and Mineral Reserve, which if properly managed can be mitigated. Lateral contacts of the high-grade mineralisation could vary as new information is obtained and supports a progressive drilling campaign to obtain new information well in advance of approving the final development design. Security risk to the Mineral Resource and Mineral Reserve estimate is considered low, while Nuevo Chaquiro has a moderate seismic risk to the Mineral Resource and Mineral Reserve.

Approximately 97% of the extracted material mined within the LOM mining plan is classified as Indicated (63%) or Measured (34%) Mineral Resource.

Environmental permitting risk was manifest when ANLA did not approve the EIA in 2021 for the Nuevo Chaquiro deposit that is part of the Minera de Cobre Quebradona Project. All efforts arecurrently being made to address the identified shortcomings of the EIA submission, with the intent to resubmit as soon as possible.

Map showing Quebradona planned infrastructure and licences
Map showing the location, infrastructure and mining license area for Quebradona. The coordinates of the mine, as represented by the helipad, are depicted on the map and are in the UTM coordinate system. The copper ore zone envelope of 0.45% is shown at the intersection of the ore zone at 1700 metres AMSL.





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AUSTRALIA

AngloGold Ashanti Ore Reserve reducedoperates two mines and has one new project in Western Australia.

Sunrise Dam, wholly owned by AngloGold Ashanti, is located 205km northeast of Kalgoorlie and 55km south of Laverton. Gold production started at Sunrise Dam in 1997. Underground mining, carried out by a contract mining company, is now the primary source of ore for the operation, following the cessation of mining in the main Cleo open pit in 2014. Open pit mining, also carried out by a contract mining company, is currently underway at Golden Delicious, a satellite pit located 8km north of the Sunrise Dam plant. The owner-operated processing plant comprises conventional gravity and CIL circuits, with a flotation and fine grind circuit commissioned in mid-2018 to improve metallurgical recovery.

Tropicana, a joint operation between AngloGold Ashanti (70% and operator), and AFB Resources Pty Limited a subsidiary of Regis Resources Limited. (30%), is located 200km east of Sunrise Dam and 330km east-northeast of Kalgoorlie. The operation poured first gold in September 2013. Tropicana is a large open pit and underground operation with mining carried out by a contract mining company. The processing plant is owner-operated comprising conventional CIL technology and high-pressure grinding rolls for energy-efficient comminution. A second ball mill was added to the grinding circuit in 2018 to optimise the circuit, improve metallurgical recovery and match mine output.

Butcher Well, a JV between AngloGold Ashanti (70%) and Northern Star Resources Limited (“Northern Star Resources”) (30%), is located 20km west of the Sunrise Dam Mine and is considered as a potential satellite operation.






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SUNRISE DAM

Property description
Sunrise Dam is an active underground and open pit mine that is wholly owned and operated by AngloGold Ashanti. AngloGold Ashanti conducts all brownfields exploration activities on the site and all tenements and permits are in good standing. The property is currently in a production stage.

Location
Sunrise Dam is approximately 205km north-northeast of Kalgoorlie and 55km south of Laverton in Western Australia.

Geology
Sunrise Dam is a mesothermal gold deposit located in the Archaean greenstone belts of Western Australia. The deposit is complex and structurally controlled with multiple ore zones displaying differing characteristics, from 49.6Mozductile shear zones to brittle stockwork complexes to intrusive hosted mineralisation. Mineralisation is typically hosted within quartz-carbonate veins with varying quantities of pyrite and arsenopyrite. Strong alteration of the country host rock is common proximal to controlling structures.

The style of mineralisation can be differentiated depending on the structure or environment in which it is hosted. There are three dominant styles recognised:
•Shear-related and high strain e.g. Sunrise Shear Zone
•Stockwork development in planar faults with brittle characteristics (these occur in all rock types and are commonly concentrated at contacts within the volcanic stratigraphy or the porphyry margin and within hinge positions within the magnetite shales) e.g. Cosmo, Dolly and Vogue orebodies
•Placer-style mineralisation hosted within the fluvial sediments.

Gold mineralisation at Golden Delicious is hosted by a suite of granitoids, which intrude intermediate to mafic volcanic and volcaniclastic greenschist host rocks. The area has been deeply weathered, partly eroded, and blanketed by transported lateritic gravels.

History
Open pit production began in 1997 and the main pit (Cleo) completed at a final depth of 500m below surface in 2014. Underground mining commenced in 2003 with a number of different mining methods being applied, depending on the style of mineralisation and grade of the geological domain. In 2021, mining commenced at the Golden Delicious satellite pit using open cut mining methods.

Legal aspects and tenure
Refer to “Item 4B: Business Overview—The Regulatory Environment Enabling AngloGold Ashanti to Mine—Australia—AngloGold Ashanti’s rights and permits”.

Mining method
Mining at Sunrise Dam consists of both surface and underground operations.

The underground mining is carried out by specialised underground contractors. The mining methods employed are domain-dependent and relate to the style of mineralisation. Sublevel open stoping methods are the preference in areas where bulk mineralisation occurs (GQ, Cosmo, Dolly, and Vogue). Other areas (Cos East, Sunrise Shear, and Astro) use narrow open-stoping methods. Where possible, all waste from infrastructure development is used to backfill mined stopes.

The open pit mining is also carried out by specialised mining contractors and consists of conventional drill and blast and load and haul activities, with ore stockpiled on the surface near the pit crest and overhauled to the ROM pad with the waste material reporting to external waste dumps.

Large surface low-grade stockpiles are used to supplement the mill feed.

Operational infrastructure
All required infrastructure is in place including a fully functional camp, process plant, tailings facility, gas pipeline, power plant and electrical reticulation, offices, airstrip, and road system. The underground infrastructure caters for all ventilation and dewatering needs with provisions made in the budget for extensions and upgrades.




167

The Property, Plant, and Equipment as of the end of December 20172021 including lease assets, buildings & mine infrastructure, mining assets, mineral rights and dumps, decommissioning assets, capitalised exploration costs, assets under construction and deferred stripping had a carrying value of $213m.

Mineral processing
Processing at Sunrise Dam is via a conventional three-stage crushing or two-stage milling CIL circuit, with a pyrite flotation and ultrafine grinding circuit commissioned in 2018. The gravity circuit recovers approximately 30% of the gold, with the CIL circuit and Anglo American Research Laboratories (“AARL”) elution used to 44.1Moz in December 2018. This gross annual decrease of 5.5Moz includes depletion of 3.6Moz. The loss after depletions of 1.8Moz, resultsrecover the remainder. Electrowinning recovers gold from the disposalAcacia™ reactor and eluted to produce gold doré. The plant throughput at Sunrise Dam is 4.1Mtpa.

Qualified Persons
Sunrise DamQualified PersonProfessional OrganisationMembership numberRelevant Years ExperienceQualification
Mineral ResourceDavid PerkinAusIMM32623913 yearsBSc Hons (Geology), MSc (Geology), Postgraduate Certificate (Geostatistics)
Mineral Reserve (underground)Cailli KnievelAusIMM20538825 yearsBEng (Mining Engineering)
Mineral Reserve (surface)Joanne EndersbeeAusIMM33453712 years—

Exploration
Refer to “Item 4B: Business Overview—Exploration review”.

Mineral Resource
Refer to Table 1a to Paragraph (b) prepared in accordance with Regulation S-K 1300 (§ 229.1303 (Item 1303)) that summarises the gold Mineral Resource (exclusive of assetsMineral Reserve) for Sunrise Dam at the end of the Fiscal Year ended 31 December 2021 based on $1,500/oz (AUD 2,072/oz). The Mineral Resource is reported for the first time under Regulation S-K 1300 and thus no net difference can be reported.

Refer to the Key Parameters under Material Assumptions for additional information on cut-off grades and metallurgical recovery. For additional information, see the Technical Report Summary on each individual property, filed as an Exhibit of this annual report on Form 20-F.

Material Assumptions for the Mineral Resource

Key Parameters
Sunrise DamUnitOpen Pit
Costs
Ore mining cost$/tonne mined3.25 
Waste mining cost$/tonne mined1.04 
Processing cost$/tonne treated19.23 
G&A$/tonne treated3.84 
Other Parameters
Metallurgical Recovery Factor%MetRF92
Slope anglesdegree
28-59(1)
Mineral Resource cut-off gradeg/t0.5
Mineral Resource priceAUD/oz2,072 
(1) Vary according to rock type

Sunrise DamUnitUnderground
Costs
Lateral development (average)$/tonne ore mined10.97 
Vertical development (average)$/tonne ore mined2.40 
Production$/tonne ore mined18.39 
Material handling$/tonne ore mined9.36 



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Mine Services$/tonne ore mined3.79 
Processing cost$/tonne treated19.23 
Other Parameters
MSO optimising cut-offg/t1.65 
Mineral Resource cut-off gradeg/t1.10 
Mineral Resource priceAUD/oz2,072 
Metallurgical Recovery Factor%MetRF83.4

Estimation
Estimation of the underground Mineral Resource uses the geological model boundaries to subdivide all drill hole data into appropriate domains. The geostatistical method of ordinary block kriging is used to estimate the Mineral Resource. High-grade restraining is used to limit the effects of outlier grade values. Dense patterns of underground RC drilling are completed prior to the final mine design, upon which, grade control models are created using conditional simulation. This allows for the probabilistic determination of the optimal mining stope configuration. Mining of the open pit Mineral Resource was completed in early 2014. Remaining stockpiled material is estimated based on detailed grade control drilling completed prior to mining. Grades were estimated by means of the conditional simulation geostatistical method.

The Golden Delicious deposit has been estimated using LUC. All available geological drill hole information is validated for use in the South African regionmodels and the local geology of 6.1Moz, additionsthe deposit is used to classify the drill hole information into appropriate estimation domains. Detailed statistical analyses are conducted on each of these domains and this allows for the identification of high-grade outliers. If these values are anomalous to the characteristics of the general population they are then cutback to an appropriate upper limit for the population.

Mineral Reserve
Refer to Table 2ato Paragraph (b) prepared in accordance with Regulation S-K 1300 (§ 229.1303 (Item 1303)) that summarises the gold Mineral Reserve for Sunrise Dam at the end of the Fiscal Year ended 31 December 2021 based on $1,200/oz (AUD 1,633/oz).

Refer to the Modifying Factors and price estimates under Material Assumptions for additional information on cut-off grades and metallurgical recovery. For additional information, see the Technical Report Summary on each individual property, filed as an Exhibit of this annual report on Form 20-F.

Year on year changes in Mineral Reserve - Moz
as at 31 December 2021Sunrise Dam
CategoryProvenProbableTotal
Previous Year0.543 0.607 1.150 
Depletion(0.139)(0.104)(0.243)
Exploration0.166 0.257 0.423 
Methodology0.236 0.213 0.449 
Price— 0.002 0.002 
Cost(0.167)(0.170)(0.337)
Geotechnical(0.056)(0.101)(0.157)
Metallurgical(0.001)(0.004)(0.005)
Operational0.006 0.019 0.025 
Acquisition / Disposal— — — 
Other— — — 
Current Year0.588 0.718 1.307 
Net Difference0.046 0.111 0.156 
% Difference8 18 14 

The increase in the reported Mineral Reserve is due to exploration success and modelling changesa revised methodology for underground stope optimisation offset by more conservative extraction ratios and increased unit costs.






169

Material Assumptions for the Mineral Reserve

Modifying factors and price estimates
as at 31 December 2021Sunrise Dam
Primary Commodity Price(1)
$/oz1200
Exchange RateAUD/$0.74
Cut-off gradeg/t
0.75(2); 1.65(3)(4)
Stoping widthcm
1080(3)
Dilution%
5.6(3)
Dilutiong/t
0.7(3)
Resource Modification Factor%RMF based on tonnes100
Resource Modification Factor%RMF based on g/t100
Mining Recovery Factor%MRF based on tonnes100
Mining Recovery Factor%MRF based on g/t100
Mine Call Factor%MCF100
Metallurgical Recovery Factor%MetRF
83.4(3)(4); 92(2)
(1) The 2021 Mineral 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 Mineral Reserve growth the initial step in a move towards realising the full asset potential. The Mineral Reserve has been evaluated economically and shown to be cashflow positive at a $1,500/oz gold price, however, the inventory used to develop the Mineral 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 Mineral Reserve life. (2) Open pit (3) Underground (4) Stockpile Underground
The modifying factors applied to the Sunrise Dam Mineral Reserve have been based on historic reconciliation results, where a long-term positive reconciliation trend has been identified. As a result, the applied factors can be considered aggressive when compared to the industry norms. Steps have been taken throughout 2021 to review the reconciliation data in support of 4.3Moz, whilst othermaintaining the current modifying factors. This has seen a slight increase in the percentage of planned dilution compared with previous years, in combination with a reduction in the dilution grades applied. More work will be done in 2022.

Estimation
The underground Mineral Reserve has been derived from the Mineral Resource model, with the Proved and Probable Mineral Reserve consisting of that part of the Measured and Indicated Mineral Resource model deemed to be economically mineable based on reference assumptions such as price, and modifying factors resultedsuch as dilution, mining losses and mill recovery. The economically mineable shapes derived from the model have been used as the basis of a detailed LOM plan that is projected to provide a margin on total cost at the planning price of $1,500/oz.

The 2021 Mineral Reserve estimate reflects the fact that Sunrise Dam is two years into a three-year “growth through exploration” phase that aims to unlock the value of the asset, with Mineral Reserve growth the initial step in a 0.1Moz addition and changes in economic assumptions resulted in a 0.2Moz reduction.move toward optimisation through full asset potential. The OreMineral 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 Mineral Reserve life.

This has meant that significant marginal material was included in the plan in order to keep the plant operating at full capacity.

The Mineral 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 $1,100/gold for this to define an Mineral Reserve.

Conclusion
No significant risks or uncertainties in the Mineral Resource estimate have been identified.

The complexity of the Sunrise Dam mineralisation means that the largest risk or uncertainty associated with the estimation of the Mineral Reserve is linked to the accuracy of the Mineral Resource estimate. Design risk is low as the mining methods have been practiced at Sunrise Dam for the past ten years.




170

An independent external Mineral Resource and Mineral Reserve audit was undertaken in 2021 by SRK Consulting and found no significant flaws in process or output.

Map showing Sunrise Dam planned infrastructure and licences
Map showing the location, infrastructure and mining license area for Sunrise Dam, with the total mining lease insert shown in the top right corner. The coordinates of the mine, as represented by the plant, are depicted on the map and are in the UTM coordinate system.




171

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172

BUTCHER WELL

Property description
Butcher Well is a JV with Northern Star Resources Limited, (AngloGold Ashanti 70%, and Northern Star Resources Limited 30%). The JV encompasses two tenement packages, Butcher Well and Lake Carey, covering approximately 339.56km2. AngloGold Ashanti also holds a significant tenement package adjacent to the Northern Star JV properties. The project is in the exploration stage, with no Mineral Reserve declared. An Inferred Mineral Resource is stated, which has been the subject of a conceptual study. The Butcher Well project is managed by AngloGold Ashanti.

Location
The Butcher Well Project is located in the Laverton district of Western Australia, 20km southwest of AngloGold Ashanti’s Sunrise Dam Gold Mine and 180km northeast of Kalgoorlie. The Sunrise Dam airstrip is approximately 70km by road from the project, with a travel time of approximately 90 minutes, on the current road going around the southern part of Lake Carey. Lake Carey is a large salt lake that covers a part of the western project area, Sunrise Dam lies to the east of the lake and the Butcher Well project lies on the western shore.

Geology
The Butcher Well Mineral Resource is an orogenic-style gold system hosted within the Laverton Greenstone Belt. The mineralisation is hosted within a basalt and is spatially associated with syenite dykes. Gold mineralisation within fresh rock principally occurs within steeply dipping north-south trending panels. Supergene gold dispersion and enrichment broadens the mineralised envelope within the near-surface saprolitic material. Much of this material has been previously exploited in shallow open pits.

History
The Butcher Well deposits were discovered in the late 1980s by Billiton Australia Gold Limited, with the original mining leases pegged in 1988. Exploration over the deposits and surrounding area continued into the early 1990s. A mining proposal was submitted in 1993 and a Mineral Resource of 255koz gold at 2.9g/t declared across the Butcher Well, Crimson Belle and Thin Lizzy deposits. In 1994, with the project under a JV between Sons of Gwalia Limited and Mount Burgess Gold Mining Company N.L., a study was undertaken by Sons of Gwalia to examine the feasibility of mining and 43koz gold was produced from the Butcher Well, Enigmatic and Hronsky pits.

Following the collapse of Sons of Gwalia in 2004, St Barbara Mines acquired all their holdings and sold on the South Laverton assets, including Butcher Well, to Saracen Mineral Holdings in 2006. Saracen continued exploration at Butcher Well, leading to several Mineral Resource and Mineral Reserve updates. In 2012 limited open pit mining was completed at Butcher Well with approximately 12koz gold produced from the Sizzler and Old Camp pits. In 2021, Saracen Mineral Holdings and Northern Star Resources merged, to form the merged entity known as Northern Star Resources Limited.

Legal aspects and tenure
Refer to “Item 4B: Business Overview—The Regulatory Environment Enabling AngloGold Ashanti to Mine—Australia—AngloGold Ashanti’s rights and permits”.

Mining method
As the project is still in a conceptual study phase, no mining has yet taken place as part of the current JV. Open pit mining is expected to be conventional open cut, drill and blast, followed by truck and excavator operation to develop the deposits. Underground mining is likely to be Transverse Longhole Open Stoping.

Operational infrastructure
Power is likely to be generated on-site via diesel generators. Water can be sourced from the existing flooded pits or bores. Ore material will be trucked to Sunrise Dam via existing secondary roads.

The Property, Plant and Equipment as of the end of December, 2021 had a carrying value of less than $1m due to the early stage of the project and the limited infrastructure onsite.

Mineral processing
Ore from Butcher Well will be processed at the Sunrise Dam processing plant. Processing at Sunrise Dam is via a conventional three-stage crushing, two-stage milling CIL circuit, with a pyrite flotation and ultrafine grinding circuit commissioned in 2018. The gravity circuit recovers approximately 30% of the gold, with the CIL circuit and AARL elution used to recover the remainder. Electrowinning recovers gold from the Acacia™ reactor and eluate to produce



173

gold doré. Plant throughput at Sunrise Dam is 4.1Mtpa, and Butcher Well ore will supplement ore production from the Sunrise Dam underground mine to maintain the mill throughput.

Qualified Persons
Butcher WellQualified PersonProfessional OrganisationMembership numberRelevant Years ExperienceQualification
Mineral ResourceMark KentAusIMM20363124 yearsBSc Hons (Geology), MSc (Mineral Resource Evaluation)

Exploration
Exploration is ongoing, with a drilling campaign completed in 2021 and additional drilling likely to occur over the next few years. Exploration during 2021 targeted infill and extensions to the underground mineralisation in the Camp Zone. The project area contains a mix of recent and historical drilling. AngloGold Ashanti has completed DD and RC drilling over the areas reported as a Mineral Resource. The project is at conceptual study phase, with a move to PFS possible in 2022 or 2023.

Mineral Resource
Refer to Table 1a to Paragraph (b) prepared in accordance with Regulation S-K 1300 (§ 229.1303 (Item 1303)) that summarises the gold Mineral Resource (exclusive of Mineral Reserve) for Butcher Well at the end of the Fiscal Year ended 31 December 2021 based on $1,500/oz (2017: $1,100/(AUD 2,072/oz). The principalMineral Resource is reported for the first time under Regulation SK-1300 and thus no net difference can be reported. There is no Mineral Reserve for Butcher Well at the end of the Fiscal Year ended 31 December 2021.

Refer to the Key Parameters under Material Assumptions for additional information on cut-off grades and metallurgical recovery. For additional information, see the Technical Report Summary on each individual property, filed as an Exhibit of this annual report on Form 20-F.

Material Assumptions for the Mineral Resource

Key Parameters
Butcher WellUnitOpen Pit
Costs
Ore mining costAUD/tonne mined16.54
Waste mining costAUD/tonne mined3.13
Processing costAUD/tonne treated26.85
G&AAUD/tonne treated6.16
Other Parameters
Metallurgical Recovery Factor%MetRF79.0
Slope anglesdegree
35 - 53(1)
Mineral Resource cut-off gradeg/t0.7
Mineral Resource priceAUD/oz2,072 
(1) Vary according to rock type

Butcher WellUnitUnderground
Costs
Lateral development (average)AUD/tonne ore mined35.46
Vertical development (average)AUD/tonne ore mined35.46
ProductionAUD/tonne ore mined58.03
Material handlingAUD/tonne ore mined19.4
Backfill / OthersAUD/tonne ore mined2.4
Processing costAUD/tonne treated8.5
Other Parameters
MSO optimising cut-offg/t2.1
Mineral Resource cut-off gradeg/t2.1



174

Mineral Resource priceAUD/oz2,072 
Metallurgical Recovery Factor%MetRF79.0

Estimation
Mineral Resource models for the Butcher Well project have been generated using the geostatistical technique of LUC. The SMU modelled was 5 x 10 x 5m with information effect applied. The data was composited to 2m down-hole lengths, with top-cuts (capping) applied to the data after examining cumulative histograms of each domain. Search distances reflected the variable data spacing in the deposit with 120 x 120 x 30m used for panel kriging. A minimum of 8 and a maximum of 32 samples was used in the estimate.

Conclusion
Butcher Well has been the focus of a conceptual study. Further exploration was completed in 2021 to further define the mineralisation. The project contains a mix of historical and new drilling. Only areas that have had follow-up drilling by AngloGold Ashanti have been reported in the current Mineral Resource estimate. Further drilling in and around the old open pits is required to confirm the mineralisation, which may represent some upside to the Mineral Resource. The fresh rock in the north of the project area is highly refractory, with low metallurgical recoveries.

No Mineral Reserve is currently declared for the project, which is in the early stages of study.

Map showing Butcher Well planned infrastructure and licences
Map showing the location, infrastructure and mining license area for Butcher Well, with the total mining lease area shown in the top right corner. The coordinates of the mine, as represented by the Sizzler pit, are depicted on the map and are in the UTM coordinate system.




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176

TROPICANA

Property description
Tropicana is comprised of a number of open pits and underground mines that are operated as a joint operation between AngloGold Ashanti (70% and operator), and AFB Resources Pty Limited a subsidiary of Regis Resources Limited (30%). The property is currently in a production stage.

Location
Tropicana is located 330km northeast of Kalgoorlie and 200km east of Laverton, Western Australia. Tropicana is the first deposit discovered in this remote portion of the Great Victoria Desert.

Geology
The Tropicana deposit is hosted in an Archaen quartz-feldspathic gneiss within a major tectonic suture zone between the Yilgarn Craton and the Albany-Fraser Orogen. Mineralisation is associated with a strong hydrothermal alteration assemblage of biotite-sericite-pyrite which postdates peak granulite facies metamorphism. Mineralisation is accompanied by pyrite (2 to 8%) with accessory pyrrhotite, chalcopyrite and other minor sulphides and tellurides.

History
Open pit mining began during 2012 with first gold production occurring during September 2013. Tropicana reached the 3Moz produced milestone during the first quarter of 2020.

Underground mining commenced in 2019 at Boston Shaker after a positive FS. First stoping occurred in June 2020 and the mine achieved commercial production in September 2020. The underground mine is expected to be a significant contributor to the production profile going forward.

Legal aspects and tenure
Refer to “Item 4B: Business Overview—The Regulatory Environment Enabling AngloGold Ashanti to Mine—Australia—AngloGold Ashanti’s rights and permits”.

Mining method
The Tropicana Mineral Reserve is extracted in both open pit and underground mines. Mining activities are undertaken by Macmahon in an alliance partnership with AngloGold Ashanti. Open pit mining is undertaken using conventional open cut, drill and blast, followed by truck and excavator operation to develop the deposits (Havana and Boston Shaker). The total annual movement of ore and waste is approximately 91Mtpa. Underground mining uses mechanised jumbo development and open stoping methods. At peak, annual production from underground is planned to reach 1.4Mt of ore.

Operational infrastructure
All surface infrastructure facilities are in place and operational. The processing plant and TSF are operating well, consistent with design specifications. The infrastructure includes, but is not limited to water supply, processing plant, mine, dewatering infrastructure, TSF, workshops, camp facilities and airstrips. Power is supplied to the mine by on-site gas and diesel power stations, and natural gas is supplied via an APA Operations (Pty) Limited pipeline. Underground development and production is ongoing.

The Property, Plant and Equipment as of the end of December 2021 included leased assets, buildings and mine infrastructure, mining assets, decommissioning assets, capitalised exploration costs, assets under construction and deferred stripping had a carrying value of $450m (reported as attributable, 70% owned by AngloGold Ashanti).

Mineral processing
The processing plant has a current capacity of 9.3Mtpa. The crushing circuit consists of a primary gyratory crusher, feeding a set of secondary cone crushers and tertiary rolls crushers. A 14MW and 6MW ball mill in parallel completes the grinding circuit. A CIL circuit is used to extract the gold from the ore, and a standard AARL elution and recovery systems is used to form gold bars.

The power provider, Kalgoorlie Power Systems, has built a dedicated power station consisting of a combination of diesel and gas powered generators with a capacity of 48.5MW.






177

Qualified Persons
TropicanaQualified PersonProfessional OrganisationMembership numberRelevant Years ExperienceQualification
Mineral ResourceFraser ClarkAusIMM22639020 yearsBSc Hons (Geology), Postgraduate Certificate (Geostatistics)
Mineral Reserve (surface)Joanne EndersbeeAusIMM33453712 years—
Mineral Reserve (underground)Glen ReitsemaAusIMM2283918 yearsBCom, BEng (Mining Engineering)

Exploration
Refer to “Item 4B: Business Overview—Exploration review”.

Mineral Resource
Refer to Table 1a to Paragraph (b) prepared in accordance with Regulation S-K 1300 (§ 229.1303 (Item 1303)) that summarises the gold Mineral Resource (exclusive of Mineral Reserve) for Tropicana at the end of the Fiscal Year ended 31 December 2021 based on $1,500/oz (AUD 2,072/oz). The Mineral Resource is reported for the first time under Regulation S-K 1300 and thus no net difference can be reported.

Refer to the Key Parameters under Material Assumptions for additional information on cut-off grades and metallurgical recovery. For additional information, see the Technical Report Summary on each individual property, filed as an Exhibit of this annual report on Form 20-F.

Material Assumptions for the Mineral Resource

Key Parameters
TropicanaUnitOpen Pit
Costs
Ore mining costAUD/tonne mined4.96
Waste mining costAUD/tonne mined3.73
Processing costAUD/tonne treated20.42
G&AAUD/tonne treated3.11
Other Parameters
Metallurgical Recovery Factor%MetRF89.5
Slope angles - Hangingwalldegree60
Slope angles - Footwalldegree45
Mineral Resource cut-off gradeg/t0.4
Mineral Resource priceAUD/oz2,072 
The open pit ore mining cost includes the over-haul from the plant. The processing cost includes an allowance for stay in business capital.

TropicanaUnitUnderground
Costs
Lateral development (average)AUD/tonne ore mined12.84
Vertical development (average)AUD/tonne ore mined0.27
ProductionAUD/tonne ore mined14.35
Material handlingAUD/tonne ore mined12.02
Backfill / OthersAUD/tonne ore mined37.65
Mine ServicesAUD/tonne ore mined1.99
Processing costAUD/tonne treated20.42
Other Parameters
MSO optimising cut-offg/t1.7
Mineral Resource cut-off gradeg/t1.7
Mineral Resource priceAUD/oz2,072 
Metallurgical Recovery Factor%MetRF89.1




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Estimation
The Mineral Resource has been estimated using the geostatistical technique of LUC using average drill hole intercepts, composited to 2m lengths, and breaking at the domain boundaries.

Mineral Reserve
Refer to Table 2ato Paragraph (b) prepared in accordance with Regulation S-K 1300 (§ 229.1303 (Item 1303)) that summarises the gold Mineral Reserve for Tropicana at the end of the Fiscal Year ended 31 December 2021 based on $1,200/oz (AUD 1,633/oz).

Refer to the Modifying Factors and price estimates under Material Assumptions for additional information on cut-off grades and metallurgical recovery. For additional information, see the Technical Report Summary on each individual property, filed as an Exhibit of this annual report on Form 20-F.

Year on year changes in AngloGold Ashanti’s OreMineral Reserve as at 31 December 2018, compared with those published as at 31 December 2017,- Moz
as at 31 December 2021Tropicana
CategoryProvenProbableTotal
Previous Year0.552 1.334 1.886 
Depletion(0.190)(0.091)(0.281)
Exploration0.141 (0.042)0.098 
Methodology0.158 (0.166)(0.008)
Price0.001 0.110 0.111 
Cost0.003 (0.092)(0.089)
Geotechnical— (0.005)(0.005)
Metallurgical— 0.005 0.005 
Operational(0.016)(0.034)(0.050)
Acquisition / Disposal— — — 
Other— — — 
Current Year0.647 1.019 1.667 
Net Difference0.096 (0.315)(0.219)
% Difference17 (24)(12)

Increases due to exploration and local changes in the gold price are as follows:largely balanced by decreases due to cost and operational changes.


Material Assumptions for the Mineral Reserve

Modifying factors and price estimates
as at 31 December 2021Tropicana
Primary Commodity PriceAUD/oz1633
ORE RESERVEMoz
Ore Reserve as at 31 December 201749.6
DisposalsMoab Khotsong-4.8
Kopanang-0.3
Vaal River Surface-0.9
Sub Total43.6
Depletions-3.6
Sub Total40
Additions
QuebradonaInitial Ore Reserve publication post successful conclusion of the prefeasibility study2.2
GeitaAdditions are primarily due to exploration success on underground targets at Star and Comet and Nyankanga0.5
CVSAReduced cost and exploration success led to the additions0.4
Sunrise DamThe increase is due to exploration success0.3
OtherAdditions less than 0.3Moz.1.0
Sub Total44.4
Reductions
OtherReductions less than 0.3Moz.-0.3
Ore Reserve as at 31 December 201844.1

Copper:
The first AngloGold Ashanti Ore Reserve for copper of 1.26Mt (2,769 million pounds (Mlbs)) is based on exploration success and the completion of the prefeasibility study at Quebradona. The Ore Reserve has been estimated at a copper price of $2.65/lb.
ORE RESERVE - COPPERMtMlb
Ore Reserve as at 31 December 20170.000
Additions   
QuebradonaExploration success and completion of the prefeasibility study1.262,769
Ore Reserve as at 31 December 20181.262,769

AngloGold Ashanti strives to actively create value by growing its major asset - the Ore Reserve. This drive is based on a well-defined brownfields and greenfields exploration programme, innovation in both geological modelling and mine planning and optimization of its asset portfolio.

The Ore Reserve estimates in this document include the Ore Reserve below the current infrastructure of underground mines. These include mines in South Africa, Ghana, Australia, Brazil and Colombia.


Sale of assets

AngloGold Ashanti sold various assets in the Vaal River region of its South African operations. The sales processes were finalised on 28 February 2018. On conclusion of the sales and after depletions for that period of 2018 the final Mineral Resource and Ore Reserve at the time of the sale are shown below:

Kopanang:        Mineral Resource        3.00Moz
Ore Reserve        0.35Moz
Moab Khotsong:        Mineral Resource        16.20Moz
Ore Reserve        4.83Moz
Surface Operations:    Mineral Resource        0.87Moz
Ore Reserve        0.87Moz


By-products

Several by-products will be recovered as a result of processing of the gold Ore Reserve and Copper Ore Reserve. These include 0.37Mt of sulphur from Brazil, 32.68Moz of silver from Argentina and 23.58Moz of silver from Colombia.


External reviews of Mineral Resource and Ore Reserve Statement

During the course of 2018, the following operations were subject to an external review in line with the policy that each operation/ project will be reviewed by an independent third party on average once every three years:

Mineral Resource and Ore Reserve at Iduapriem
Mineral Resource and Ore Reserve at Sunrise Dam
Mineral Resource and Ore Reserve at Cerro Vanguardia
Mineral Resource and Ore Reserve at Serra Grande
Mineral Resource and Ore Reserve at Quebradona

The external reviews were conducted by Pivot Mining Consultants Pty (Ltd), AMC Consultants Pty Ltd, Golder Associates Pty Ltd, Ausenco Engineering Canada Inc. and Optiro Pty Ltd respectively. The company has been informed that the external reviews identified no material shortcomings in the process of evaluation of the grade models and estimation of the Ore Reserve.


Competent Persons

The information in this report relating to the Ore Reserve is based on information compiled by or under the supervision of the Competent Persons as defined in the JORC or SAMREC Codes. All Competent Persons are employed by AngloGold Ashanti, unless stated otherwise, and have sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which they are undertaking. The Competent Persons consent to the inclusion of Ore Reserve information in this report, in the form and context in which it appears. Details of the Competent Persons per operation are given in the Mineral Resource and Ore Reserve Report 2018, which is available on the corporate website. The legal tenure of each operation and project has been verified to the satisfaction of the accountable Competent Person and all Ore Reserve has been confirmed to be covered by the required mining permits or there is a high probability that these permits will be issued.

Over more than a decade, the company has developed and implemented a rigorous system of internal and external reviews aimed at providing assurance in respect of Ore Reserve estimates were completed by suitably qualified Competent Persons from within AngloGold Ashanti. A documented chain of responsibility exists from the Competent Persons at the operations to the company’s Mineral Resource and Ore Reserve Steering Committee. Accordingly, the Chairman of the Mineral Resource and Ore Reserve Steering Committee, VA Chamberlain, MSc (Mining Engineering), BSc (Hons) (Geology), MGSSA, FAusIMM, assumes responsibility for the Mineral Resource and Ore Reserve processes for AngloGold Ashanti and is satisfied that the Competent Persons have fulfilled their responsibilities.

A detailed breakdown of Mineral Resource and Ore Reserve and backup detail is provided on the AngloGold Ashanti website (www.anglogoldashanti.com) and www.aga-reports.com.








Gold
Ore Reserve: ImperialAt 31 December 2018  
 
Proven Ore Reserve (1) (2)
 
Probable Ore Reserve (1) (2)
 Metallurgical Cut-off
 
Tons(5)

 Grade
 
Gold
Content

 
Tons (5)

 Grade
 
Gold
Content

 
Recovery
Factor
 Grade
(9) 
 (million)
 (oz/ton)
 (Moz)
 (million)
 (oz/ton)
 (Moz)
 percent (oz/ton)
South Africa               
Vaal River (11)
               
Kopanang—
 —
 —
 —
 —
 —
    
Moab Khotsong—
 —
 —
 —
 —
 —
    
West Wits               
Mponeng (2)
1.59
 0.225
 0.36
 38.61
 0.292
 11.29
 97.1-97.9
(4) 
 0.171-0.252
(4) 
Surface               
Surface sources  (8)
117.10
 0.006
 0.73
 583.12
 0.008
 4.42
 45.0-88.0
(4) 
 0.007-0.008
(4) 
Continental Africa               
Democratic Republic of the Congo               
Kibali (45 percent) (3) (10)
10.07
 0.121
 1.22
 21.04
 0.120
 2.53
 84.5-88.9
(4) 
 0.045-0.070
(4) 
Ghana               
Iduapriem3.02
 0.026
 0.08
 40.11
 0.039
 1.56
 93.0-95.9
(4) 
 0.016-0.026
(4) 
Obuasi (2)
—
 —
 —
 22.35
 0.262
 5.86
 87.0  0.120-0.152
(4) 
Guinea               
Siguiri (85 percent) (3)
23.74
 0.019
 0.46
 65.48
 0.024
 1.60
 88.0-93.0
(4) 
 0.016-0.020
(4) 
Mali               
Morila (40 percent) (3) (10)
2.71
 0.018
 0.05
 0.18
 0.038
 0.01
 57.0-91.0
(4) 
 0.014-0.023
(4) 
Sadiola (41 percent) (3)
0.05
 0.048
 —
 28.78
 0.057
 1.63
 75.0-94.0
(4) 
 0.015-0.023
(4) 
Tanzania               
Geita—
 —
 —
 10.44
 0.128
 1.33
 77.8-92.7
(4) 
 0.042-0.100
(4) 
Australasia                
Australia               
Sunrise Dam (2)
13.89
 0.041
 0.57
 6.05
 0.105
 0.64
 86.0-87.0
(4) 
 0.020-0.079
(4) 
Tropicana (70 percent) (2)(3)
15.24
 0.034
 0.51
 35.43
 0.059
 2.11
 89.9-90.0
(4) 
 0.020-0.092
(4) 
Americas               
Argentina               
  Cerro Vanguardia (92.5 percent)(3)(6)
8.51
 0.068
 0.57
 8.98
 0.055
 0.50
 66.3-96.3
(4) 
 0.013-0.161
(4) 
Brazil               
AGA Mineraçáo (2) (7)
2.14
 0.127
 0.27
 9.69
 0.148
 1.43
 50.0-94.3
(4) 
 0.018-0.161
(4) 
Serra Grande (2)
1.74
 0.085
 0.15
 2.48
 0.097
 0.24
 92.1-98.8
(4) 
 0.018-0.055
(4) 
Colombia                
Gramalote (51 percent) (3)
—
 —
 —
 70.23
 0.025
 1.76
 83.9-95.0
(4) 
 0.005-0.006
(4) 
   Quebradona (94.876 percent) (2)(3)(6)
—
 —
 —
 114.69
 0.019
 2.22
 60.0    
Total199.80
 0.025
 4.97
 1057.65
 0.037
 39.12
    

Copper
Ore Reserve: ImperialAt 31 December 2018  
 
Proven Ore Reserve (1) (2)
 
Probable Ore Reserve (1) (2)
 Metallurgical Cut-off
 
Tons(5)
  Grade  
Copper
Content
  
Tons (5)
 Grade 
Copper
Content
  
Recovery
Factor
 Grade
(9) 
 (million)  percent  (Mlbs)  (million) percent (Mlbs)  percent  ($/t)
Colombia                
Quebradona (94.876 percent) (2)(3)(6)
—  —  —  114.69 1.21 2,769  95.80 25-45
(12) 
Total—  —  —  114.69 1.21 2,769      

(1)
Cut-off grade		Ore Reserve includes marginally economic and diluting materials delivered for treatment and allow for losses that may occur during mining.
g/t
0.70(1); 2.1-2.7(2)
Proven and/or Probable Ore Reserve includes Ore Reserve below infrastructure. See table that follows.
(3)
Ore Reserve attributable to AngloGold Ashanti’s percentage interest shown.
(4)
Recovery factor and cut-off grade vary according to ore type.
(5)
Tons refers to a short ton, which is equivalent to 2000 pounds avoirdupois.
(6)
The Ore Reserve contains 32.68 million ounces of silver for Cerro Vanguardia and 23.58 million ounces for Quebradona to be recovered as a by-product.
(7)
The Ore Reserve contains 0.38 million tons of sulphur to be recovered as a by-product.
(8)
Includes Mine Waste Solutions (MWS).
(9)
In-situ cut-off grade.
(10)
Ore Reserve is estimated by Competent Persons employed by Barrick Gold (Holdings) Limited.
(11)
No Ore Reserve is declared for 2018 - sale of Kopanang and Moab Khotsong.
(12)
Copper ore cut-off Net Smelter Return (NSR).
Rounding may result in computational differences.

The 2018 Proven and Probable Ore Reserve includes Ore Reserve below infrastructure in the case of the following underground mines currently in production:

Gold
MineTons (millions) Grade (ounces/ton) 
Gold Content
(million ounces)
Mponeng30.27  0.28  8.53 
Obuasi1.87  0.60  1.13 
Sunrise Dam1.42  0.11  0.16 
Tropicana2.08  0.11  0.22 
AGA Mineração7.42  0.16  1.18 
Serra Grande1.75  0.11  0.20 
Quebradona114.69  0.02  2.22 
Total159.50  0.09  13.64 

Copper
MineTons (millions) Grade (%) 
Copper Content
(million pounds)
Quebradona114.69  1.21  2,769 
Total114.69  1.21  2,769 

The Ore Reserve has been determined based on completed economic studies.

Gold
Ore Reserve: ImperialAt 31 December 2017  
 
Proven Ore Reserve (1) (2)
 
Probable Ore Reserve (1) (2)
 Metallurgical Cut-off
 
Tons(5)

 Grade
 
Gold
Content

 
Tons (5)

 Grade
 
Gold
Content

 
Recovery
Factor
 Grade
(10) 
 (million)
 (oz/ton)
 (Moz)
 (million)
 (oz/ton)
 (Moz)
 percent (oz/ton)
South Africa               
Vaal River (6)
               
Kopanang1.10
 0.158
 0.17
 1.04
 0.156
 0.16
 95.6-95.7
(4) 
 0.278
 
Moab Khotsong (2)
2.22
 0.278
 0.62
 17.21
 0.247
 4.25
 93.9-97.1
(4) 
 0.126-0.181
(4) 
West Wits               
Mponeng (2)
1.66
 0.253
 0.42
 41.01
 0.286
 11.74
 96.5-98.1
(4) 
 0.122-0.199
(4) 
TauTona (12)
0.00
 0.00
 0.00
 0.00
 0.000
 0.00
      
Surface               
Surface sources (6) (9)
139.60
 0.006
 0.87
 671.80
 0.008
 5.24
 42.0-88.0
(4) 
 0.006-0.013
(4) 
Continental Africa               
Democratic Republic of the Congo               
Kibali (45 percent) (3) (11)
9.42
 0.119
 1.12
 23.35
 0.119
 2.79
 84.5-88.9
(4) 
 0.045-0.073
(4) 
Ghana               
Iduapriem3.25
 0.023
 0.07
 42.23
 0.042
 1.78
 92.0-95.6
(4) 
 0.016-0.026
(4) 
Obuasi (2)
—
 —
 —
 22.35
 0.262
 5.86
 87.0
  0.120-0.152
(4) 
Guinea               
Siguiri (85 percent) (3)
26.67
 0.019
 0.51
 69.64
 0.025
 1.74
 88.0-93.0
(4) 
 0.016-0.022
(4) 
Mali               
Morila (40 percent) (3) (11)
—
 —
 —
 4.68
 0.016
 0.08
 57.0-91.0
(4) 
 0.014
 
Sadiola (41 percent) (3)
0.11
 0.063
 0.01
 31.23
 0.054
 1.69
 75.0-94.0
(4) 
 0.015-0.025
(4) 
Tanzania               
Geita—
 —
 —
 9.42
 0.133
 1.25
 76.0-92.0
(4) 
 0.41-0.088
(4) 
Australasia                
Australia               
Sunrise Dam12.00
 0.029
 0.34
 9.08
 0.094
 0.85
 85.0-86.0
(4) 
 0.022-0.079
(4) 
Tropicana (70 percent) (3)
13.40
 0.038
 0.50
 37.98
 0.062
 2.35
 90.0
  0.020
 
Americas               
Argentina               
Cerro Vanguardia (92.5 percent) (3) (7)
5.09
 0.049
 0.25
 6.12
 0.108
 0.66
 64.4-95.7
(4) 
 0.013-0.146
(4) 
Brazil               
AGA Mineraçáo (2) (8)
3.34
 0.132
 0.44
 13.24
 0.131
 1.73
 67.8-93.8
(4) 
 0.018-0.106
(4) 
Serra Grande (2)
1.86
 0.081
 0.15
 1.95
 0.092
 0.18
 86.5-95.3
(4) 
 0.019-0.053
(4) 
Colombia                
Gramalote (51 percent) (3)
—
 —
 —
 70.23
 0.025
 1.76
 83.9-95.0
(4) 
 0.005-0.006
(4) 
Total219.72
 0.025
 5.48
 1,072.57
 0.041
 44.11
    

(1)
Ore Reserve includes marginally economic and diluting materials delivered for treatment and allow for losses that may occur during mining.
(2)
Proven and/or Probable Ore Reserve includes Ore Reserve below infrastructure. See table that follows.
(3)
Ore Reserve attributable to AngloGold Ashanti’s percentage interest shown.
(4)
Recovery factor and cut-off grade vary according to ore type.
(5)
Tons refers to a short ton, which is equivalent to 2000 pounds avoirdupois.
(6)
The Vaal Reef Ore Reserve includes 89.16 million pounds of Uranium oxide by-products; this cannot be accounted for by individual mine as Kopanang, Moab Khotsong and Surface sources in Vaal River feed to a combination of plants.
(7)
The Ore Reserve contains 21.81 million ounces of silver to be recovered as a by-product.
(8)
The Ore Reserve contains 0.41 million tons of sulphur to be recovered as a by-product.
(9)
Includes Mine Waste Solutions (MWS).
(10)
In-situ cut-off grade.
(11)
Ore Reserve is estimated by Competent Persons employed by Randgold Resources Limited.
(12)
No Ore Reserve is declared for 2017 - TauTona is reported under Mponeng.

Rounding may result in computational differences.


The 2017 Proven and Probable Ore Reserve includes Ore Reserve below infrastructure in the case of the following underground mines currently in production:
MineTons (millions)
 Grade (ounces/ton)
 
Gold Content
(million ounces)

Moab Khotsong14.47
 0.24
 3.48
Mponeng31.04
 0.27
 8.50
Obuasi1.87
 0.60
 1.13
AGA Mineração3.89
 0.16
 0.62
Serra Grande1.33
 0.10
 0.14
Total52.59
 0.26
 13.86

The Ore Reserve has been determined based on completed economic studies.

Gold
Ore Reserve: MetricAt 31 December 2018  
 
Proven Ore Reserve (1) (2)
 
Probable Ore Reserve (1) (2)
 Metallurgical Cut-off
 
Tonnes(5)

 Grade
 
Gold
Content

 
Tonnes (5)

 Grade
 
Gold
Content

 
Recovery
Factor
 Grade
(9) 
 (million)
 (g/t)
 (tonnes)
 (million)
 (g/t)
 tonnes
 percent (g/t)
South Africa               
Vaal River (11)
               
Kopanang—
 —
 —
 —
 —
 —
      
Moab Khotsong 
—
 —
 —
 —
 —
 —
      
West Wits               
Mponeng (2)
1.44
 7.71
 11.13
 35.03
 10.02
 351.12
 97.1-97.9
(4) 
 5.86-8.64
(4) 
Surface               
Surface sources (8)
106.23
 0.21
 22.76
 529.00
 0.26
 137.47
 45.0-88.0
(4) 
 0.23-0.29
(4) 
Continental Africa               
Democratic Republic of the Congo               
Kibali (45 percent) (3) (10)
9.14
 4.15
 37.87
 19.08
 4.12
 78.70
 84.5-88.9
(4) 
 1.53-2.41
(4) 
Ghana               
Iduapriem2.74
 0.88
 2.41
 36.39
 1.33
 48.42
 93.0-95.9
(4) 
 0.55-0.90
(4) 
Obuasi (2)
—
 —
 —
 20.28
 9.00
 182.40
 87.0
  4.10-5.20
(4) 
Guinea               
Siguiri (85 percent) (3)
21.54
 0.67
 14.40
 59.40
 0.84
 49.82
 88.0-93.0
(4) 
 0.55-0.70
(4) 
Mali               
Morila (40 percent) (3) (10)
2.46
 0.63
 1.54
 0.17
 1.31
 0.22
 57.0-91.0
(4) 
 0.49-0.79
(4) 
Sadiola (41 percent) (3)
0.05
 1.66
 0.08
 26.11
 1.94
 50.64
 75.0-94.0
(4) 
 0.51-0.78
(4) 
Tanzania               
Geita—
 —
 —
 9.47
 4.38
 41.49
 77.8-92.7
(4) 
 1.45-3.43
(4) 
Australasia                
Australia               
Sunrise Dam (2)
12.60
 1.40
 17.59
 5.49
 3.60
 19.76
 86.0-87.0
(4) 
 0.68-2.71
(4) 
Tropicana (70 percent) (2) (3)
13.83
 1.15
 15.91
 32.14
 2.04
 65.50
 89.9-90.0
(4) 
 0.70-3.17
(4) 
Americas               
Argentina               
Cerro Vanguardia (92.5 percent) (3) (6)
7.72
 2.32
 17.88
 8.14
 1.89
 15.41
 66.3-96.3
(4) 
 0.45-5.51
(4) 
Brazil               
AGA Mineraçáo (2) (7)
1.94
 4.35
 8.43
 8.79
 5.06
 44.47
 50.0-94.3
(4) 
 0.61-5.53
(4) 
Serra Grande (2)
1.58
 2.90
 4.59
 2.25
 3.32
 7.48
 92.1-98.8
(4) 
 0.60-1.87
(4) 
Colombia                
Gramalote (51 percent) (3)
—
 —
 —
 63.71
 0.86
 54.67
 83.9-95.0
(4) 
 0.16-0.22
(4) 
Quebradona (94.876 percent) (2) (3) (6)
—
 —
 —
 104.05
 0.66
 69.12
 60.0
    
Total181.26
 0.85
 154.60
 959.49
 1.27
 1,216.69
    

Copper
Ore Reserve: MetricAt 31 December 2018  
 
Proven Ore Reserve (1) (2)
 
Probable Ore Reserve (1) (2)
 Metallurgical Cut-off
 
Tonnes(5)
  Grade  
Copper
Content
  
Tonnes (5)
 Grade 
Copper
Content
  
Recovery
Factor
 Grade
(9) 
 (million)  percent  (tonnes million)  (million) percent (tonnes million)  percent  ($/t)
Colombia                
Quebradona (94.876 percent) (2)(3)(6)
—  —  —  104.05 1.21 1.26  95.80 25-45
(12) 
Total—  —  —  104.05 1.21 1.26      

(1)
Ore Reserve includes marginally economic and diluting materials delivered for treatment and allow for losses that may occur during mining.
(2)
Proven and/or Probable Ore Reserve includes Ore Reserve below infrastructure. See table that follows.
(3)
Ore Reserve attributable to AngloGold Ashanti’s percentage interest shown.
(4)
Recovery factor and cut-off grade vary according to ore type.
(5)
Tonnes refers to a metric tonne which is equivalent to 1000 kilograms.
(6)
The Ore Reserve contains 1,016 tonnes of silver for Cerro Vanguardia and 733 tonnes for Quebradona to be recovered as a by-product.
(7)
The Ore Reserve contains 0.37 million tonnes of sulphur to be recovered as a by-product.
(8)
Includes Mine Waste Solutions (MWS).
(9)
In-situ cut-off grade.
(10)
Ore Reserve is estimated by Competent Persons employed by Barrick Gold (Holdings) Limited.
(11)
No Ore Reserve is declared for 2018 - sale of Kopanang and Moab Khotsong.
(12)
Copper ore cut-off Net Smelter Return (NSR)


Rounding may result in computational differences
The 2018 Proven and Probable Ore Reserve includes Ore Reserve below infrastructure in the case of the following underground mines currently in production:

Gold
MineTons (millions) Grade (ounces/ton) 
Gold Content
(tonnes)
Mponeng27.46
  9.66
  265.29
 
Obuasi1.70
  20.68
  35.15
 
Sunrise Dam1.29
  3.85
  4.95
 
Tropicana1.89
  3.65
  6.89
 
AGA Mineração6.73
  5.45
  36.64
 
Serra Grande1.59
  3.94
  6.28
 
Quebradona104.05
  0.66
  69.12
 
Total144.70
  2.93
  424.32
 

Copper
MineTons (millions) Grade (%) 
Copper Content
(million tonnes)
Quebradona104.05
  1.21  1.26
 
Total104.05
  1.21  1.26
 

The Ore Reserve has been determined based on completed economic studies.




















































Gold
Ore Reserve: MetricAt 31 December 2017  
 
Proven Ore Reserve (1) (2)
 
Probable Ore Reserve (1) (2)
 Metallurgical Cut-off 
 
Tonnes(5)

 Grade
 
Gold
Content
 
Tonnes (5)
 Grade 
Gold
Content

 
Recovery
Factor
 Grade
(10) 
 (million)
 (g/t)
 (tonnes) (million) (g/t) tonnes
 percent (g/t) 
South Africa               
Vaal River (6)
               
Kopanang1.00
 5.420
 5.40 0.94 5.37 5.04
 95.6-95.7
(4) 
 9.52
 
Moab Khotsong (2)
2.02
 9.550
 19.26 15.62 8.47 132.31
 93.9-97.1
(4) 
 4.31-6.21
(4) 
West Wits               
Mponeng (2)
1.50
 8.670
 13.03 37.21 9.82 365.25
 96.5-98.1
(4) 
 4.17-6.82
(4) 
TauTona (12)
—
 0.00
 0.00 0.00 0.00 0.00
      
Surface               
Surface sources (5) (9)
126.64
 0.21
 27.11 609.45 0.27 162.99
 42.0-88.0
(4) 
 0.20-0.43
(4) 
Continental Africa               
Democratic Republic of the Congo               
Kibali (45 percent) (3) (11)
8.54
 4.07
 34.78 21.18 4.10 86.76
 84.5-88.9
(4) 
 1.53-2.50
(4) 
Ghana               
Iduapriem2.95
 0.77
 2.29 38.31 1.44 55.35
 92.0-95.6
(4) 
 0.55-0.90
(4) 
Obuasi (2)
—
 0.00
 0.00 20.28 9.00 182.40
 87.0
  4.10-5.20
(4) 
Guinea               
Siguiri (85 percent) (3)
24.19
 0.65
 15.78 63.18 0.85 53.97
 88.0-93.0
(4) 
 0.55-0.75
(4) 
Mali               
Morila (40 percent) (3) (11)
—
 0.00
 0.00 4.25 0.56 2.38
 57.0-91.0
(4) 
 0.49 
Sadiola (41 percent) (3)
0.10
 2.14
 0.22 28.33 1.86 52.59
 75.0-94.0
(4) 
 0.51-0.87
(4) 
Tanzania               
Geita—
 0.00
 0.00 8.54 4.55 38.86
 76.0-92.0
(4) 
 1.40-3.02
(4) 
Australasia                
Australia               
Sunrise Dam10.88
 0.98
 10.64 8.24 3.22 26.50
 85.0-86.0
(4) 
 0.75-2.71
(4) 

Tropicana (70 percent) (3)
12.16
 1.29
 15.70 34.46 2.12 73.10
 90.0
  0.70
 
Americas               
Argentina               
Cerro Vanguardia (92.5 percent) (3) (7)
4.62
 1.69
 7.81 5.55 3.69 20.50
 64.4-95.7
(4) 
 0.45-5.00
(4) 

Brazil               
AGA Mineraçáo (2) (8)
3.03
 4.53
 13.73 12.01 4.48 53.76
 67.8-93.8
(4) 
 0.61-3.63
(4) 

Serra Grande (2)
1.69
 2.77
 4.68 1.77 3.16 5.60
 86.5-95.3
(4) 
 0.66-1.80
(4) 

Colombia                
Gramalote (51 percent) (3)
—
 0.00
 0.00 63.71 0.86 54.67
 83.9-95.0
(4) 
 0.16-0.22
(4) 

Total199.32
 0.86
 170.43 973.02 1.41 1,372.04
    

(1)
Ore Reserve includes marginally economic and diluting materials delivered for treatment and allow for losses that may occur during mining.
(2)
Proven and/or Probable Ore Reserve includes Ore Reserve below infrastructure. See table that follows.
(3)
Ore Reserve attributable to AngloGold Ashanti’s percentage interest shown.
(4)
Recovery factor and cut-off grade vary according to ore type.
(5)
The Vaal Reef Ore Reserve includes 40.4 thousand tonnes of Uranium oxide by-products; this cannot be accounted for by individual mine as Great Noligwa, Kopanang, Moab Khotsong and Surface sources in Vaal River feed to a combination of plants.
(6)
Tonnes refers to a metric tonne which is equivalent to 1000 kilograms.
(7)
The Ore Reserve contains 678.44 tonnes of silver to be recovered as a by-product.
(8)
The Ore Reserve contains 0.37 million tonnes of sulphur to be recovered as a by-product.
(9)
Includes Mine Waste Solutions (MWS).
(10)
In-situ cut-off grade.
(11)
Ore Reserve is estimated by Competent Persons employed by Randgold Resources Limited.
(12)
No Ore Reserve is declared for 2017 - TauTona is reported under Mponeng.


Rounding may result in computational differences

The 2017 Proven and Probable Ore Reserve includes Ore Reserve below infrastructure in the case of the following underground mines currently in production:
MineTonnes (millions)
 Grade (grams/tonne)
 Gold Content (tonnes)
Moab Khotsong13.12
 8.24
 108.14
Mponeng28.16
 9.38
 264.25
Obuasi1.70
 20.68
 35.15
AGA Mineração3.53
 5.44
 19.20
Serra Grande1.20
 3.52
 4.24
Total47.71
 9.03
 430.97
The Ore Reserve has been determined based on completed economic studies.


Stockpiles: Imperial
Stockpiles are previously mined ore scheduled for future process plant feed. The Proven and Probable Ore Reserve includes the following stockpile material:
StockpilesAt 31 December 2018
 Tons (million)
 Grade (ounces/ton)
 
Gold content
(million ounces)

South Africa     
Surface sources (2)
700.22
 0.007
 5.15
Continental Africa     
Ghana     
Iduapriem16.42
 0.021
 0.35
Guinea     
Siguiri (85 percent) (1) (3)
57.67
 0.017
 0.97
Mali     
Morila (40 percent) (1)
2.71
 0.018
 0.05
Sadiola (41 percent) (1)
3.29
 0.045
 0.15
Tanzania     
Geita3.00
 0.038
 0.11
Australasia     
Australia     
Sunrise Dam10.66
 0.028
 0.30
Tropicana (70 percent) (1)
11.98
 0.029
 0.35
Americas     
Argentina     
Cerro Vanguardia (92.5 percent) (1)
10.91
 0.014
 0.15

(1)
Ore Reserve attributable to AngloGold Ashanti’s percentage interest shown.
(2)
Centralised operations treating material on surface that was previously generated by several underground operations, includes tailings material.
(3)
Spent heap included in Ore Reserve.

Rounding may result in computational differences.

Stockpiles: Imperial
Stockpiles are previously mined ore scheduled for future process plant feed. The Proven and Probable Ore Reserve includes the following stockpile material:
StockpilesAt 31 December 2017
 Tons (million)
 Grade (ounces/ton)
 
Gold content
(million ounces)

South Africa     
Surface sources (2)
811.40
 0.008
 6.11
Continental Africa     
Ghana     
Iduapriem12.88
 0.021
 0.27
Guinea     
Siguiri (85 percent) (1) (3)
61.89
 0.017
 1.06
Mali     
Morila (40 percent) (1)
4.55
 0.016
 0.07
Sadiola (41 percent) (1)
5.14
 0.037
 0.19
Tanzania     
Geita2.79
 0.041
 0.12
Australasia     
Australia     
Sunrise Dam12.00
 0.029
 0.34
Tropicana (70 percent) (1)
8.19
 0.027
 0.22
Americas     
Argentina     
Cerro Vanguardia (92.5 percent) (1)
7.05
 0.019
 0.13
Brazil     
Serra Grande0.03
 0.050
 0.00
(1)
Ore Reserve attributable to AngloGold Ashanti’s percentage interest shown.
(2)
Centralised operations treating material on surface that was previously generated by several underground operations, includes tailings material.
(3)
Spent heap included in Ore Reserve.
Rounding may result in computational differences.

Stockpiles: Metric
Stockpiles are previously mined ore scheduled for future process plant feed. The Proven and Probable Ore Reserve includes the following stockpile material:
StockpilesAt 31 December 2018
 Tonnes (million)
 Grade (grams/tonne)
 
Gold content
(tonnes)

South Africa     
Surface sources (2)
635.23
 0.25
 160.23
Continental Africa     
Ghana     
Iduapriem14.89
 0.73
 10.91
Guinea     
Siguiri (85 percent) (1) (3)
52.31
 0.58
 30.18
Mali     
Morila (40 percent) (1)
2.46
 0.63
 1.54
Sadiola (41 percent) (1)
2.98
 1.53
 4.56
Tanzania     
Geita2.72
 1.29
 3.51
Australasia     
Australia     
Sunrise Dam9.67
 0.97
 9.35
Tropicana (70 percent) (1)
10.87
 1.01
 10.95
Americas     
Argentina     
Cerro Vanguardia (92.5 percent) (1)
9.89
 0.47
 4.68
(1)
Ore Reserve attributable to AngloGold Ashanti’s percentage interest shown.
(2)
Centralised operations treating material on surface that was previously generated by several underground operations, includes tailings material.
(3)
Spent heap included in Ore Reserve.
Rounding may result in computational differences.


Stockpiles: Metric
Stockpiles are previously mined ore scheduled for future process plant feed. The Proven and Probable Ore Reserve includes the following stockpile material:
StockpilesAt 31 December 2017
 Tonnes (million)
 Grade (grams/tonne)
 
Gold content
(tonnes)

South Africa     
Surface sources (2)
736.09
 0.26
 190.10
Continental Africa     
Ghana     
Iduapriem11.68
 0.72
 8.46
Guinea     
Siguiri (85 percent) (1) (3)
56.15
 0.59
 33.07
Mali     
Morila (40 percent) (1)
4.13
 0.54
 2.22
Sadiola (41 percent) (1)
4.66
 1.27
 5.93
Tanzania     
Geita2.53
 1.42
 3.59
Australasia     
Australia     
Sunrise Dam10.88
 0.98
 10.64
Tropicana (70 percent) (1)
7.43
 0.94
 6.97
Americas     
Argentina     
Cerro Vanguardia (92.5 percent) (1)
6.40
 0.64
 4.09
Brazil     
Serra Grande0.02
 1.70
 0.04
(1)
Ore Reserve attributable to AngloGold Ashanti’s percentage interest shown.
(2)
Centralised operations treating material on surface that was previously generated by several underground operations, includes tailings material.
(3)
Spent heap included in Ore Reserve.
Rounding may result in computational differences.

Drill hole spacing: Imperial
In determining the Proven and Probable Ore Reserve, AngloGold Ashanti applied the following drill hole spacing:
Stoping widthDrill Hole Spacing
Proven Ore ReserveProbable Ore Reserve
South Africa
Underground sourcesOre body opened up, developed and sampled on a 7 to 10 foot spacing on raise lines and on a 16 x 16 foot grid thereaftercm
From a 131 x 131 foot spacing up to
3281 x 3281 foot spacing2000(2)
Surface sourcesDilution164 x 164 feet to 1050 x 820 feet auger drilling, variable sampling strategies: belt samplers, cross stream residue samplers and bulk sampling campaigns328 x 328 feet to 984 x 1230 feet auger drilling, variable sampling strategies: belt samplers, cross stream residue samplers
Continental Africa
Democratic Republic of the Congo
Kibali16 x 33 feet, 49 x 66 feet131 x 131 feet
Ghana
Iduapriem66 x 49 feet164 x 246 feet
ObuasiNone197 x 197 feet
Guinea
Siguiri%
16 x 33 feet, 16 x 39 feet,15(2)
 33 x 33 feet, 43 x 23 feet
66 x 131 feet, 82 x 82 feet,
164 x 82 feet
Mali
Morila33 x 16 feet, 164 x 328 feet33 x 66 feet
Sadiola21 x 41 feet, 82 x 82 feet82 x 82 feet, 164 x 82 feet
Tanzania
GeitaNone
33 x 33 feet, 66 x 66 feet, 82 x 49 feet,
82 x 82 feet, 131 x 66 feet, 131 x 131 feet
Australasia
Australia
Sunrise Dam33 x 33 feet, 82 x 82 feet131 x 66 feet, 131 x 131 feet
Tropicana39 x 39 feet, 82 x 82 feet164 x 164 feet
Americas
Argentina
Cerro Vanguardia20 x 66 feet, 39 x 16 feet131 x 131 feet
Brazil
AGA Mineração
33 x 66 feet, 66 x 33 feet,
66 x 98 feet, 82 x 82 feet
66 x 131 feet, 82 x 131 feet, 98 x 82 feet,
131 x 197 feet, 164 x 98 feet,
164 x 164 feet, 197 x 131 feet
Serra Grande33 x 33 feet, 33 x 66 feet82 x 82 feet, 131 x 66 feet, 164 x 66 feet
Colombia
GramaloteNone164 x 164 feet
QuebradonaNone98 x 98 feet, 197 x 197 feet

Drill hole spacing: Metric
In determining the Proven and Probable Ore Reserve, AngloGold Ashanti applied the following table of drill hole spacing:
Resource Modification FactorDrill Hole Spacing%RMF based on tonnes100
Resource Modification FactorProven Ore Reserve%RMF based on g/tProbable Ore Reserve100
South AfricaMining Recovery Factor
Underground sourcesOre body opened up, developed and sampled%MRF based on a 2 to 3 metre spacing on raise lines and on a 5 x 5 metre grid thereaftertonnes
From a 40 x 40 metre spacing up to
1000 x 1000 metre spacing90(2); 100(1)
Surface sourcesMining Recovery Factor50 x 50 metre to 320 x 250 metre auger drilling, variable sampling strategies: belt samplers, cross stream residue samplers and bulk sampling campaigns%MRF based on g/t100 x 100 metre to 300 x 375 metre auger drilling, variable sampling strategies: belt samplers, cross stream residue samplers
Continental AfricaMine Call Factor%MCF100
Democratic Republic of the CongoMetallurgical Recovery Factor
Kibali5 x 10 metre, 15 x 20 metre40 x 40 metre
Ghana
Iduapriem20 x 15 metre50 x 75 metre
ObuasiNone60 x 60 metre
Guinea
Siguiri%MetRF
5 x 10 metre, 5 x 12 metre,
10 x 10 metre, 13 x 7 metre
20 x 40 metre, 25 x 25 metre,
50 x 25 metre87.4-89.4(1); 89.0-89.1(2)
Mali
Morila10 x 5 metre, 50 x 100 metre10 x 20 metre
Sadiola6.25 x 12.5 metre, 25 x 25 metre25 x 25 metre, 50 x 25 metre
Tanzania
GeitaNone
10 x 10 metre, 20 x 20 metre,(1) Open pit (2) Underground
25 x 15 metre, 25 x 25 metre,
40 x 20 metre, 40 x 40 metre
Australasia
Australia
Sunrise Dam10 x 10 metre, 25 x 25 metre40 x 20 metre, 40 x 40 metre
Tropicana12 x 12 metre, 25 x 25 metre50 x 50 metre
Americas
Argentina
Cerro Vanguardia6 x 20 metre, 12 x 5 metre40 x 40 metre
Brazil
AGA Mineração
10 x 20 metre, 20 x 10 metre,
25 x 25 metre, 20 x 30 metre
20 x 40 metre, 25 x 40 metre,
30 x 25 metre, 40 x 60 metre,
50 x 30 metre, 50 x 50 metre,
60 x 40 metre
Serra Grande10 x 10 metre, 10 x 20 metre
25 x 25 metre, 40 x 20 metre,
50 x 20 metre
Colombia
GramaloteNone50 x 50 metre
QuebradonaNone30 x 30 metre, 60 x 60 metre


ITEM 4A:UNRESOLVED STAFF COMMENTS
Estimation
The Mineral Reserve for Tropicana is based on an operating LOM plan. For the open pit LOM plan, a FS was completed in 2010, which determined a technically achievable and financially economic mine plan and this is updated annually. The pits that make up the open pit LOM plan are Havana, Boston Shaker and Havana South.




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For the underground LOM plan, the Boston Shaker FS study was completed in 2019 which determined the viability of the Boston Shaker underground project. All Mineral Reserve is estimated by reporting physicals (volumes, tonnes, grades, material types, etc.) against the Mineral Resource model within detailed designs. Mineral Reserve physicals are then scheduled and put through a financial model for economic evaluation.

Conclusion
There are no known significant risks or uncertainties which currently affect the Mineral Resource and Mineral Reserve estimate. A significant change in the gold price or operating costs could potentially impact the economic viability of the Mineral Resource and extraction of the Mineral Reserve. The reasonable prospects for economic extraction at some time in the future relies on the gold price increasing or staying at similar levels to that of today.

An independent external Mineral Resource and Mineral Reserve audit was undertaken in 2021 by SRK Consulting and found no significant flaws in process or output.

Map showing Tropicana planned infrastructure and licences
Map showing the location, infrastructure and mining license area for Tropicana, with the total mining lease area insert shown in the top right corner. The coordinates of the mine, as represented by the plant, are depicted on the map and are in the UTM coordinate system.




180

au-20211231_g24.jpg



181

ITEM 4A:    UNRESOLVED STAFF COMMENTS
Not applicable.




182

ITEM 5: OPERATING AND FINANCIAL REVIEW AND PROSPECTS


The following discussion provides information that management believes is relevant to an assessment and understanding of the consolidated financial condition and results of operations of AngloGold Ashanti Limited under IFRS for the three years ended and as at 31 December 2018, 20172021, 2020 and 2016.2019. The discussion of operating and financial results in this “Item 5: Operating and Financial Review and Prospects” relates to the company’s continuing operations (unless the context indicates otherwise).


This item should be read in conjunction with the company’s consolidated financial statements and the notes thereto which are included under Item 18 of this annual report.


Overview


AngloGold Ashanti is a global gold mining company headquartered in Johannesburg, South Africa. AngloGold Ashanti’s main product is gold. As part of extracting gold the company also produces silver and sulphuric acid as by-products. The company no longer produces uranium oxide as by-product following the sale of its Vaal River operations, effective 28 February 2018. By-product revenue from continuing operations amounted to $138$126 million in 2018 (2017: $1542021 (2020: $105 million; 2016: $1382019: $86 million) out of total revenue from product sales from continuing operations of $3,943$4,029 million in 2018 (2017: $4,5102021 (2020: $4,427 million; 2016: $4,2232019: $3,525 million). See “Note 3 - Revenue” to the consolidated financial statements“Item 18: Financial Statements—Note 3—Revenue from product sales” for additional information. The company sells its products on world markets.


AngloGold Ashanti conducts gold-mining operations in the following regions, which represent its business segments:


•South Africa (comprising West Wits and Surface Operations)
•Continental Africa (comprisingthe DRC, Ghana, Guinea, Mali, the DRC and Tanzania);
•Australasia (comprising Australia)
•Americas (comprising Argentina, Brazil and projects in Colombia)Colombia and the United States); and

•Australia.

Until 30 September 2020, AngloGold Ashanti also conducted gold-mining operations in South Africa. On 1 October 2020, Harmony Gold Mining Company Limited (“Harmony”) took effective control of the company’s remaining South African producing assets and related liabilities, which were recorded as discontinued operations for the years ended and as at 31 December 2020 and 31 December 2019. In particular, addition, AngloGold Ashanti sold its interests in the Morila and Sadiola gold mines in Mali in November and December 2020, respectively. None of our Malian assets were recorded as discontinued operations.

AngloGold Ashanti has 12 mines and two surfaceten continuing mining operations in Africa, Australia and the four regionsAmericas comprising open-pit and underground mines, and surface metallurgical plants, which are supported by extensive, yet focused global exploration activities. In addition, AngloGold Ashanti has greenfields projects located in Colombia and Nevada, USA. For more information on the company’s business and operations, see “Item 4B: Business Overview”.


As at 31 December 2018,2021, the company reported, on an attributable basis, Proven and Probable OreMineral Reserve for gold of approximately 36.923.78 million ounces in subsidiaries and 7.24.33 million ounces in equity accountedequity-accounted joint ventures. For the year ended 31 December 2018,2021, AngloGold Ashanti reported an attributable gold production of approximately 2.92.11 million ounces from subsidiaries and 0.50.37 million ounces from equity accountedequity-accounted joint ventures. As at 31 December 2018,2021, the company reported an attributable OreProven and Probable Mineral Reserve for copper of 2,769Mlbs.3,250 million pounds. As at 31 December 2021, the company reported, on an attributable basis, Measured and Indicated Mineral Resource for gold of approximately 47.41 million ounces in subsidiaries and 2.54 million ounces in equity-accounted joint ventures. As at 31 December 2021, the company reported, on an attributable basis, Inferred Mineral Resource for gold of approximately 41.45 million ounces in subsidiaries and 0.89 million ounces in equity-accounted ventures. As at 31 December 2021, the company reported an attributable Measured and Indicated Mineral Resource for copper of 2,902 million pounds and Inferred Mineral Resource for copper of 3,231 million pounds. For further information on the company’s Mineral Resource and Mineral Reserve, see “Item 4D: Property, Plants and Equipment—Mineral Resource and Mineral Reserve Summary Disclosure”.


AngloGold Ashanti’s costs and expenses consist primarily of total cash costs, amortisation, corporate administration, other expenses, and exploration and evaluation costs. Total cash costs include cash operating costs (which include salaries and wages, stores, explosives, reagents, logistics, fuel, power, water and contractors’ costs), royalties and other consumables (which include explosives, timber and reagents amongst others), fuel, power and water, contractors’ costs and royalties.cash costs. The company’s mining operations consist of deep-level underground mines as well as open-pit operations, both of which are labour intensive, therefore salaries and wages are a significant component of total cash costs.


Outlook


Gold production (including our attributable share183

5A:    OPERATING RESULTS

Introduction

Global stocks ended 2021 near their all-time highs, as the month of joint ventures) for 2019 is forecastDecember reversed losses made in November due to be between 3.250 millionthe spread of the Omicron variant of the coronavirus. Early data suggested that the Omicron variant was not as harmful as originally suspected and 3.450 million ounces (production will be back weighted,economic data had also pointed to a slight return to normality. As such, stocks advanced in December 2021, with a stronger second half expected for Geita (Tanzania), Siguiri (Guinea) and Brazil). Capital expenditure (including our attributable share of joint ventures) is expectedthe MSCI All Country World Index returning 3.90 percent. Developed markets slightly outperformed their emerging market counterparts with the MSCI World Index advancing 4.19 percent against 1.62 percent from the MSCI Emerging Markets Index.

Inflation in the United States continued to be approximately between $910 million and $990 millionincrease in 2019, onFebruary 2022, with the following assumptions: R14.00/$, $/A$0.75, BRL3.65/$ and ARS40.00/$; Brent crudeConsumer Prices Index (CPI) coming in at $74 per barrel.

AngloGold Ashanti’s results of operations, financial condition and prospects,7.9 percent year-on-year. The rise in prices marks the thirteenth consecutive month that it has stayed above the Federal Reserve’s two percent target as well as the company's ability to meet its targets, may be adversely affected by a number of factors, risks and uncertainties, some of which are beyond the company's control, including gold prices, exchange rate fluctuations, inflation, as well as political, mining and other risks. In particular, our production outlook is subject to, among other things, labour disruptions, unplanned stoppages and safety-related interventions, the stability and availability of power as well as other operational risks. Certain of these risks, uncertainties and other factors are described in “Item 3D: Risk Factors”. See also the note regarding “Certain Forward-Looking Statements”. Furthermore, the forecast assumes no changeshighest reading since January 1982. The rise was due to the asset portfolio/operating mines.global rally in commodity prices, supply and demand imbalances and wage pressures. As a result, the Federal Reserve decided, at its meeting on March 15 and 16, 2022 to raise the federal funds rate target range by 25 basis points, to a range of 0.25% to 0.50%. This is the first Fed rate hike since the end of 2018.



This tug-of-war between interest rates and inflation was reflected in investment demand for gold and created a drag on the price of gold. ETF outflows, mostly concentrated in North America, were a feature for most of the year, bringing collective gold holdings in ETFs down 173 tonnes by the end of the year. Bar and coin demand, which tends to be more sensitive to changes in inflation than interest rates, ended the year 281 tonnes higher.

5A:OPERATING RESULTS


Introduction

The final2021 was a redemption story for global jewellery demand as it recovered fully from the blows inflicted by the pandemic in 2020. Demand by consumers reached 2,124 tonnes, lifted by an exceptional fourth quarter of 20182021 with the release of pent-up demand in India being a key factor.

Central bank net purchases totalled 463 tonnes in 2021. This marks a significant rebound in demand from this sector following the decade low of 255 tonnes in 2020. Buying was not good for equity markets. Investors have had to contendheavily front-loaded with rising US324 tonnes bought during the first half of 2021, and only 139 tonnes in the second half of 2021. The fourth quarter of 2021 saw net purchases of 48 tonnes, the lowest quarterly level of net buying since the third quarter of 2010. Aggregated global central bank interest rates, a sharp slowdown in Eurozone business confidence, weaker Chinese growth and rising geopolitical concerns (including Brexit, Italian politics andgold reserves rose to just shy of 35,600 tonnes during 2021, the ongoing trade conflict between the US and China). On the upside, over the quarter as a whole, government bonds at least lived up to their traditional role as the defensive element in a well-balanced portfolio.highest level since 1992.


Turning to the gold market, annual jewellery demand barely changed compared to 2017 and remained at 2,200 tonnes in 2018,  after a three percent year-on-year dropMine production in the fourth quarter of 2018 demand2021 fell one percent year-on-year to 636.2 tonnes reversed915 tonnes. This represents the thirdlowest level of fourth quarter gains. China was the main engine of growth in 2018, despite witnessing a slowdown in the final quarter of 2018 as the trade war with the US and slowing economic growth rate weighed on demand. Economic hardship, relatively weak currencies and the after-effects of tax-changes affected Turkey and Middle Eastern markets to varying degrees.

Inflows into global gold-backed ETFs and similar productsmine output since 2015. Annual production totalled 693,561 tonnes in 2018. This was 672021, two percent higher than 2020 but still lower than 2019 and three percent lower than 2018 which stands as the 206.4 tonnes of inflows in 2017. Even though sizable annual flows into European-listed funds of 96.8 tonnes drove growthyear during which most gold was mined.

Full-year gold demand in the technology sector North American funds experienced heavy outflows for partin 2021 grew by nine percent to 330 tonnes, with year-on-year growth seen in all four quarters. A buoyant electronics sector bounced back from the 2020 impact of the year but reversed this trend in the final quarter of 2018. Global inflows of 112.4 tonnes during the fourth quarter of 2018 reversed the 104 tonnes of outflows from the previous quarter. Growth in the fourth quarter of 2018 was split almost equally between US-listed and European-listed funds, with inflows of 57.1 tonnes and 59.1 tonnes, respectively. pandemic, growing nine percent to 272 tonnes.

For the first time since 2012,2021 year, the valueaverage market spot price of total gold-backed ETF holdings finished 2018 above $100 billion.

The official coin market saw annual demand surge 26 percent compared to 2017 to 236 tonnes, the second highest level on record - the previous highgold was 270.9 tonnes in 2013. Coin demand flourished in a few countries, where retail investor concerns around stock market volatility, currency weakness and geopolitical uncertainty were common themes. Bar sales were steady at 781.6 tonnes and have been remarkably stable over the past five years with annual demand anchored between a low of 780 tonnes in 2014 and a high of 797 tonnes in 2016.

Central bank net purchases reached 651.5 tonnes in 2018, 74 percent higher year-on-year. This is the highest level of annual net purchases since the suspension of dollar convertibility into gold in 1971 (Bretton Woods),$1,798 per ounce and the second highest annual total on record. Central Banks now hold nearly 34,000 tonnes of gold. Heightened geopolitical and economic uncertainty throughout the year increasingly drove central banks to diversify their reserves and re-focus their attention on the principal objective of investing in safe and liquid assets.

Gold mine production totalled 854.1 tonnes in the fourth quarter of 2018, two percent lower quarter-on-quarter and one percent lower year-on-year. Over the year,average gold mine production rose fractionally, up one percent to 3,346.9 tonnes. Although slowing in recent years, this is now the tenth year of annual growth and the highest level of annual mine output on record (previous record in 2017).

Net producer de-hedgingprice received was seen for a third consecutive quarter in the fourth quarter of 2018, with the global hedge book declining by a further 10 tonnes. On an annual basis, net producer de-hedging totalled 29.4 tonnes, following on from 27.9 tonnes of net de-hedging in 2017. At the end of 2018 the global hedge book stood at an estimated 195 tonnes, 13 percent lower year-on-year, continuing the general downward trend.

$1,796 per ounce. The price of gold closed the fourth quarter of 2018declined by four percent over 2021, starting on 1 January 2021 at $1,283 per ounce which was also the high for the quarter. It reached a low of $1,187approximately $1,898 per ounce and averaged around $1,228ending on 31 December 2021 at approximately $1,828 per ounce inounce. Management uses the final quarter of 2018. The averagemarket spot gold price of gold sold forto monitor the year was recorded at $1,268 per ounce.


Restatement as a result of adoption of new accounting standard - IFRS 15 Revenue from Contracts with Customers (IFRS 15)

As a result of adopting IFRS 15 on 1 January 2018, the group has changed its accounting policy and made retrospective adjustments. The impactperformance of the adoptiongold price and its effect on the company’s results. It gives an investor insight into the performance of IFRS 15 has resulted in the restatement of revenue from product sales (previously gold income)price and cost of sales. For further details refer to “Note 1-Accounting Policies” in Item 18.its impact on company results.





184

Key factors affecting results


Gold prices


AngloGold Ashanti’s operating results are directly related to the market spot gold price, of gold, which can fluctuate widely and is affected by numerous factors beyond its control, including investment, jewellery and industrial demand (particularly in China and India), expectations with respect to the rate of inflation, the strength of the US dollar (the currency in which the price of gold is generally

quoted) and of other currencies, interest rates, actual or expected gold sales and purchases by central banks and the International Monetary Fund (IMF), global or regional political or economic events or conditions, the impact of global health crises and pandemics such as COVID-19, and production and cost levels in major gold-producing regions.


The current demand for and supply of gold may affect gold prices, but not necessarily in the same manner as current supply and demand affects the prices of other commodities. The supply of gold consists of a combination of new production and fabricated gold held by governments, public and private financial institutions, industrial organisations and private individuals. As the global gold production in any single year constitutes a small portion of the total potential supply of gold, short-term variations in current production do not necessarily have a significant impact on the supply of gold or on its price.


The market for gold bullion bar, the company’s primary product, is generally limited to the bullion banks. The number of these banks has declined over the last few years.decade. Additionally, due to the diversity and depth of the total gold market, the bullion banks do not possess significant pricing power.


The price of gold is often subject to sharp, short-term changes. The shift in gold demand from physical demand to investment and speculative demand may exacerbate the volatility of gold prices.


Yearly average gold prices received per ounce have changed during the three years under review as follows:
2016•2019 - $1,243$1,394 per ounce
2017•2020 - $1,251$1,778 per ounce
2018•2021 - $1,261$1,796 per ounce


The average ofgold price received per ounce increased by $18 per ounce, or one percent, from $1,778 per ounce for the year ended 31 December 2020 to $1,796 per ounce for the year ended 31 December 2021. The average market spot gold price increased by $26 per ounce, or one percent, from $1,772 per ounce for the year ended 31 December 2020 to $1,798 per ounce for the year ended 31 December 2021.

The market spot gold price has stabilised somewhat during 2021 compared to previous volatile levels in 2020. After opening the year on 1 January 20192021 at $1,942 per ounce, the market spot gold price progressively retracted to 19a year low of $1,684 per ounce on 8 March 20192021, recovering to a year high of $1,949 per ounce on 1 May 2021. The market spot gold price stabilised at around $1,800 per ounce for 2021. The market spot gold price at closing on 31 December 2021 was $1,302.57$1,828 per ounce compared to $1,896 per ounce the prior year. Between 1 January 2022 and 23 March 2022, the market spot gold price traded between a low of $1,779 per ounce and a high of $2,070 per ounce. On 1923 March 2019,2022, the afternoon price for gold on the London Bullion Market was $1,307.70$1,943 per ounce.


If income from gold sales falls for an extended period below the company’s total cash costs at its operations, AngloGold Ashanti could determine that it is not economically feasible to continue production at some or all of its operations. Declining gold prices may also force a reassessment of the feasibility of a particular exploration or development project or projects, and could lead to the curtailment or suspension of such projects. A sustained decrease in gold prices may force the company to change its dividend payment policies, reduce expenditures and undertake measures to address its cost base. In addition, the use of lower gold prices in OreMineral Reserve estimates and life-of-mine plans could result in material write-downs of the company’s investment in mining properties and increase amortisation, environmental rehabilitation and mine closure charges.


To protect the cash flows of the South African region from rand gold price risk for 2019, a short-term rand gold hedge was entered into on a zero cost collar basis at a floor of R545,000/kg and an average cap of R725,500/kg for 300koz of our South African gold production.




185

Production levels


In addition to gold prices, AngloGold Ashanti’s gold income in any year is also influenced by its level of gold production. Production levels are in turn influenced by grades, tonnages mined and processed through the plant, and metallurgical recoveries. Attributable gold production (including joint ventures) decreasedremained fairly consistent between 20162019 - 20182021 from 3.632.86 million ounces in 2016, 3.762019, 2.81 million ounces in 20172020 to 3.402.47 million ounces in 2018.2021. For more information on the company’s business and operations, see “Item 4B: Business Overview”.


Operational impacts resulting from the COVID-19 pandemic

In addition to the impact of the COVID-19 pandemic on the gold price discussed under the caption “—Gold Prices”, the COVID-19 pandemic has the potential to have a significant adverse impact on our operations by causing supply chain delays and disruptions, import restrictions or shipping disruptions, as well as operational shutdowns (including as the result of government-mandated containment measures or additional safety measures that the company may consider in the future). A full or partial shutdown of the company’s mines in the affected areas and/or a halt in related mining operations could occur if COVID-19 spread among our workforce, if requested or mandated by governmental authorities or if otherwise elected by the company as a preventive measure to contain the spread of the virus. Governments of the countries in which we operate may impose significant restrictions on the movement of goods, services and persons, including by ordering nationwide lockdowns of businesses and their citizens, as was done, for example, in Argentina, which imposed a nationwide lockdown (quarantine), including travel restrictions, border closings and the shutdown of most industries in 2020, as a result of which Cerro Vanguardia S.A. (CVSA) was required to operate with limited mining capacity.

AngloGold Ashanti continues to respond to the evolving COVID-19 pandemic, including the multiple waves of the outbreak in different countries and the surge of new variants of the virus, while contributing to the global effort to stop the spread of the virus and provide public health and economic relief to local communities. Operations continue to implement and strengthen controls on-site and in communities, including facilitating access to vaccines. We continue to monitor the pandemic and update guidelines and response plans to ensure preparedness while maintaining programmes for awareness, prevention, surveillance, early detection and control at group and site level.

All operations now have access to vaccines. We believe that about 85% of the workforce was fully vaccinated (excluding boosters) by the end of 2021. While infection rates have largely declined, the emergence of the Omicron variant at the end of 2021 presented challenges with increasing absenteeism due to isolation and quarantine requirements as well as some travel restrictions and shortages of critical skills that continue to challenge operations in Argentina, Australia, Brazil and Ghana, albeit at varying levels.

During 2021, Cerro Vanguardia operated with limited mining capacity largely due to the impact of COVID-19 and resulting restrictions related to moving personnel to and from the site. However, during the second half of 2021 we saw an improvement in the operation, which was largely due to the utilisation of the newly expanded on-site accommodation, as the camp can now safely host an increased number of employees on site for longer periods of time.

The direct impact on production from COVID-19 was estimated at 47,000 ounces for 2021. The direct COVID-19 impact on cost of sales was estimated at $14 million for 2021. The direct impact from COVID-19 on AISC was estimated at $34 per ounce (including $17 per ounce related to estimated additional cost impacts and $17 per ounce related to estimated lost production) for 2021.

The extent to which the COVID-19 pandemic will impact the company’s results will depend on the scale, duration and geographic reach of future developments, which are highly uncertain and cannot be predicted, including notably the possibility of a recurrence or multiple waves of the outbreak and new variants. We continue to observe strict health protocols and to exercise vigilance in relation to business continuity including supply chain. We remain mindful that the COVID-19 pandemic, its impacts on communities and economies, and the actions authorities may take in response to it, are subject to change in response to current and future conditions.

Geopolitical tensions

As a result of the geopolitical tensions and armed conflict between Russia and Ukraine due to the recent Russia’s military invasion of Ukraine, the governments of the United States, the European Union (“EU”), the United Kingdom and other jurisdictions announced the imposition of various sanctions against Russia. Despite the fact that AngloGold Ashanti has limited commercials interests in Russia, Ukraine and the current areas of conflict, these and any additional sanctions or export controls, as well as any counter responses by Russia or other jurisdictions, have led to a sharp increase in oil and energy prices, which are important input costs for the company’s business. Furthermore, the invasion of Ukraine and the retaliatory measures that have been taken, and could be taken in the future, by the United States, the EU, the United Kingdom, NATO and other jurisdictions have created global security concerns that could result in a regional or global conflict and otherwise have a lasting impact on regional and global economies, any or all of which could adversely affect AngloGold Ashanti’s business. AngloGold Ashanti is monitoring the developments in the armed conflict between Russia and Ukraine and their



186

impact on various metrics such as gold price, cost of sales and capital equipment. See “Item 3D: Risk Factors—Global political and economic conditions could adversely affect the profitability of operations”.

Climate change and other environmental factors

Rising temperatures, changing rainfall patterns and severe weather conditions believed to be caused by climate change remain growing concerns for businesses, investors, broader society and governments. This has led to increased pressure on companies, including those in the mining sector, to reduce greenhouse gas (“GHG”) emissions consistent with national commitments made by numerous countries under the Paris Agreement, to promote responsible corporate practices and to increase transparency about the risks and opportunities of transitioning to a low-carbon economy. Pressure from governments, investors and broader society for mining companies to improve environmental stewardship and reduce GHG emissions, both in terms of absolute emissions and in intensity of emissions per tonne mined, is likely to increase in the future.

In an open letter dated 5 October 2021 by the CEOs of companies which are members of the International Council on Metals and Minerals (“ICMM”), AngloGold Ashanti was part of making a landmark climate change commitment to achieve net zero Scope 1 and 2 GHG emissions by 2050 or sooner.

In 2008, AngloGold Ashanti targeted a 30% reduction in the GHG emissions intensity of its portfolio by 2022, from a 2007 base level. This target was reached by 2018, and at the end of 2021 Scope 1 and 2 GHG emissions intensity was 46.6% below 2007 levels. The GHG emission reductions are due to changes in the company’s asset mix, as well as energy-efficiency and fuel switching initiatives implemented at the company’s operations and projects. Absolute carbon emissions in 2021 declined by 41% to 1.39Mt compared to 2020, after the sale of our South African assets. Overall, this represents a 69% reduction in Scope 1 and 2 GHG emissions compared to 2007 since our initial commitment in 2008. We are also tracking the carbon intensity of our energy mix by measuring GHG emissions per Gigajoule (“GJ”) of energy used. This measure improved by 31% year-on-year in 2021 to approximately 63 kilograms of CO2e emitted per GJ of energy compared to 2020 as a lower proportion of our operations are powered by fossil energy sources.

Foreign exchange fluctuations


Total cash costs in all business segments are for local procurement largely incurred in local currency where the relevant operation is located. US dollar denominated total cash costs and net income tend to be adversely impacted by local currency strength and favourably impacted by local currency weakness, assuming there are no other offsetting factors. AngloGold Ashanti’s financial results can be influenced significantly by the fluctuations in the South African rand, Brazilian real, Australian dollar, and, to a lesser extent, the ArgentinianArgentinean peso and other local currencies. As set out below, during the year ended 31 December 2018,2021, the ArgentinianArgentinean peso Australian dollar and Brazilian real weakened and the South African randAustralian dollar strengthened, which collectively had a favourable impact on AngloGold Ashanti’s US dollar denominated total cash costs.



Average annual exchange rates to the US dollar202120202019
Brazilian real5.40 5.15 3.94 
Australian dollar1.33 1.45 1.44 
Argentinean peso95.21 70.71 48.29 

Average annual exchange rates to the US dollar2018
 2017
 2016
South African rand13.25
 13.30
 14.68
Brazilian real3.66
 3.19
 3.48
Australian dollar1.34
 1.30
 1.35
Argentinian peso28.14
 16.57
 14.78


In 2018,2021, the company derived 6451 percent (56(43 percent including joint ventures) of its revenues from South Africa, Brazil, Australia and Argentina, and incurred 6453 percent (57(48 percent including joint ventures) of its total cash costs in South Africa, Brazil, Australia and Argentina. A one percent strengthening of these local currencies against the US dollar will result in an increase in total cash costs incurred of about $18$14 million or $5$6 per ounce.


Certain exchange controls were in force in emerging markets in which the company operates during the period under review, including, for example South Africa andin Argentina. In the case of South Africa,Argentina, although the exchange rate of the randArgentinean peso is primarily market determined, its value at any time may not be considered a true reflection of the underlying value while exchange controls exist. The South African government has indicated its intention to relax exchange controls over time. As exchange controls are relaxed, rand exchange rates will be more closely tied to market forces. It is not possible to predict whether or when this will occur or the future value of the rand. For a detailed discussion of these exchange controls, see “Item 10D: Exchange Controls”.Argentinean peso.

Total cash costs and effects of inflation


Total cash costs include cash operating costs (which include salaries and wages, stores, explosives, reagents, logistics, fuel, power, water and contractors’ costs), royalties and other consumables (which include explosives, timber and reagents among others), fuel, power and water, contractors’ costs and royalties.cash costs. The mining industry continues to experience price inflation for costs of inputs used in the production of gold, which leads to higher total cash costs reported by many gold producers.


AngloGold Ashanti is unable to control the prices at which it sells its gold. Accordingly, in the event of significant inflation in South Africa, Brazil, Argentina or Australia, without a concurrent devaluation of the local currency or an increase in the price of gold, there could be a material adverse effect upon the company’s results and financial condition. See “Item 3D: Risk Factors—Inflation may have a material adverse effect on results of operations”.





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At 31 December 2021, AngloGold Ashanti employs globally over 44,00030,000 people, globally,including contractors, most of whom are members of trade unions, particularly in South Africa, Continental Africa and the Americas. Salaries and wages account for a significant component of local total cash costs and are impacted by annual wage increases. AngloGold Ashanti reached a three-year wage agreementCOVID-19 presented challenges with all its trade unionstravel restrictions and shortages of critical skills resulting in South Africa, effective 1 July 2018. The wage agreement includes wage increases over three years as well as a new shift arrangement, aimedhigher labour and contractors’ costs at improving production with continued focus on safety.certain operations.


Energy costs, comprising power, fuel and lubricants, are another material component of total cash costs. Due to the remote location of some of its mines in Continental Africa, AngloGold Ashanti uses fuel to generate power and uses fuel and lubricants at its mines to run its fleet and processing plants. The price of Brent crudeCrude oil has increased from $43$65 per barrel in 2016, $542019, $42 per barrel in 20172020 to $71 per barrel in 2018,2021, a 65$6 per barrel, or a nine percent increase over the three-year period. AngloGold Ashanti estimates that for each $1 per barrel rise in the oil price, other factors remaining equal, the average total cash costs of all its operations increases by about $3$2 million or $0.8 per ounce, with the total cash costs of certain of the company’s mines, particularly Geita (Tanzania), Siguiri (Guinea), Kibali (DRC)Iduapriem (Ghana), MorilaGeita (Tanzania) and Sadiola (Mali),Tropicana (Australia) which are more dependent on fuel, being more sensitive to changes in the price of oil. Energy costs, evenAngloGold Ashanti is monitoring the developments in business segmentsthe armed conflict between Russia and Ukraine and their impact on the oil price. The escalation of the conflict dominated market sentiments during the months of February and March 2022, pushing oil prices higher to levels last seen during the 2008 global financial crisis. In recent weeks, the oil price has increased precipitously as a result of the conflict and, as of 23 March 2022, the price of oil was at $133per barrel of Brent Crude. See “Item 3D: Risk Factors—The profitability of mining companies’ operations and the cash flows generated by these operations are significantly affected by fluctuations in input production prices, many of which are supported by grid power, like South Africa, have increased considerably overlinked to the three-year period, with price increases from Eskom (South Africa’s power utility) that exceeded average inflation. These increases have adversely impacted total cash costs.prices of oil and steel.


AngloGold Ashanti has no influence over the cost of most consumables, many of which are linked to some degree to the price of oil and steel and in a number of cases have exceeded inflation.consumables. Furthermore, there has also been volatility recently in the price of steel, used in the manufacture of most forms of fixed and mobile mining equipment, which is a relatively large contributor to the operating costs and capital expenditure of a mine. Fluctuations in oil and steel prices have a significant impact on operating costs and capital expenditure. COVID-19 presented challenges within the overall logistics sector resulting in higher cost of transportation, warehousing and inventory prices.


Royalties (excluding joint ventures), which are generally calculated as a percentage of revenue, varied over the past three years from $105 million incurred in 2016 to $116 million incurred in 2017 and $135$137 million in 2018, a 292019 to $181 million in 2020 and $162 million in 2021, an 18 percent increase over the three-year period, primarily due to the variations in the gold prices received, production and royalty rate increases. Royalties are likely to continue to vary in the coming years asdue to the variations in the gold prices and the fact that in a number of jurisdictions host governments increasingly seek to obtain a higher share of revenue by increasing the royalty rates for gold mines.


RehabilitationEnvironmental rehabilitation costs


Total provisions for decommissioning and for environmental restoration activities (excluding joint ventures)ventures and discontinued operations) totalled $695$634 million in 2017 and $6222019, $674 million in 2018. The change2020 and $688 million in 2021. During 2019, $96 million was transferred to liabilities related to assets held for sale. During 2020, the provisions for decommissioning and restoration increased by $40 million due to several changes in calculating estimates isthat are attributable to changes in discount rates, due to changes in global economic assumptions, and changes in mine plans resulting in a change in cash flows andas well as changes in the design of tailings storage facilities (“TSFs”). During 2021, the provisions for decommissioning and restoration increased by $14 million largely due to the recognition of a change in estimates relating to the ongoing transition to dry-stacking operations in Brazil to comply with new legal requirements in Brazil as well as changes in the methodology following requests from the environmental regulatory authorities.for calculating such estimates. See also “Item 4B: Business Overview-RegulatoryOverview—Regulatory Environment

Enabling AngloGold Ashanti to Mine”, “Item 4B: Business Overview-MineOverview—Mine Site Rehabilitation and Closure” and “Item 4B: Business Overview-Environmental, HealthOverview—Sustainability and SafetyEnvironmental, Social and Governance ("ESG") Matters”.


Amortisation of tangible assets


Amortisation of tangible assets decreased during the 20162019 - 20182021 period by $127 million, or 24 percent, from $789$538 million in 2019 to $625$411 million in 2021, largely due to lower deferred stripping at Tropicana, Geita and Iduapriem.

Amortisation of right of use assets increased during the orderly closure2019 - 2021 period by $21 million, or 50 percent, from $42 million in 2019 to $63 million in 2021, largely due to a change in business strategy whereby certain heavy mobile equipment is leased.

Amortisation of TauTonaintangible assets remained mainly unchanged at $3 million during September 2017 and the reclassification of the assets and liabilities of Moab Khotsong and Kopanang, to non-current assets and liabilities held for sale during October 2017, at which stage, amortisation of these assets ceased.2019 - 2021 period.


Exploration and evaluation costs


The company has expensed exploration expenditure during the years ended 31 December 2016, 20172019, 2020 and 20182021 in order to replenish depleting OreMineral Reserve and bring new ore bodies into pre-feasibility or feasibility. The expensed exploration costs incurred over the last three fiscal years amounted to $133$112 million in 2016, $1142019, $124 million in 20172020 and $102$164 million in 2018.2021. Exploration expenditure decreasedincreased during 2018, with a reduction2021 mainly due to an increase in technical improvements as well as lower spend on prefeasibility studies.greenfields exploration in Nevada, United States.


Corporate administration, marketing and otherrelated expenses





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The corporate administration, marketing and otherrelated expenses incurred amounted to $61$82 million in 2016, $642019, $68 million in 20172020 and $76$73 million in 2018.2021. The increase isin 2021 of $5 million, or seven percent, was mainly due to sign-on costs relating to the new CEO during 2018, legal fees, overseas travel costsexchange rate impact of a 10 percent stronger local currency partly offset by lower labour costs.

Impairment, derecognition of assets and strengthening of the South African rand against the US dollar.profit (loss) on disposal

Special items


AngloGold Ashanti reviews and tests the carrying value of its assets when events or changes in circumstances suggest that the carrying amount may not be recoverable. AngloGold Ashanti values individual mining assets at the lowest level for which cash flows are identifiable as independent of cash flows of other mining assets and liabilities.


If there are indications that impairment may have occurred, AngloGold Ashanti prepares estimates of expected future cash flows for each group of assets. Expected future cash flows are inherently uncertain, and could materially change over time. They are significantly affected by OreMineral Reserve and production estimates, together with economic factors, such as market spot and forward gold prices, discount rates, currency exchange rates, estimates of costs to produce OreMineral Reserve and future capital expenditures. Alternatively, should any of these factors reverse, then AngloGold Ashanti may have to reverse previously recognised impairments.


When reviewing goodwill and other tangible assets for impairment, AngloGold Ashanti'sAshanti’s assumption on gold price represents its best estimate of the future price of gold. In arriving at the estimated long-term real gold price, AngloGold Ashanti considers all available market information including current prices, historical averages, and forward pricing information and data. The long- termlong-term real gold price of $1,239$1,599 per ounce in 2018 and $1,2402021, $1,450 per ounce in 2017,2020 and $1,300 per ounce in 2019, were based on a range of economic and market conditions, which were, at that time, expected to exist over the remaining useful life of the assets.


AngloGold Ashanti considers the long-term fundamentals that provide support to the gold price assumption. These include, amongst other things, gold as a long-term store of value, hedge against inflation, safe haven status, strong physical demand from emerging markets, central bank purchases, quantitative easing and devaluation of paper currency, falling global mine production and rising costs of producing gold, all of which represent significant and enduring trends supportive of AngloGold Ashanti'sAshanti’s gold price assumption.


The actual market spot gold price averaged $1,268$1,798 per ounce in 20182021 and $1,257$1,772 per ounce in 2017.2020. The market spot gold price in 20192021 has been subject to volatile short-term swingsswings. Between 8 March 2021 and has averaged $1,302.576 May 2021, the market spot gold price traded between a low of $1,684 per ounce and a high of $1,949 per ounce. On 23 March 2022, the afternoon price for gold on the London Bullion Market was $1,943 per ounce.

Other expenses

Other expenses incurred over the last three fiscal years amounted to $83 million in 2019, $57 million in 2020 and $136 million in 2021. The increase during 2021 was largely due to care and maintenance activities at the Obuasi mine, retrenchment and related costs, premium on settlement of bonds and a refund from 1 January 2019an insurance claim in 2020 which was not repeated in 2021. Underground mining activities were voluntarily suspended between 18 May 2021 and 15 October 2021 at the Obuasi mine, following a sill pillar incident. From 15 October 2021, underground mining resumed to 19 March 2019replenish the run-of-mine stockpile without corresponding gold production. Since the voluntary suspension of underground mining activities, care and closedmaintenance costs of $45 million were incurred at $1,307.70 per ounce on 19 March 2019.

AngloGold Ashanti will continueObuasi during 2021. Retrenchment and related costs of $18 million were incurred during 2021 as part of the transition to monitor the underlying long-term factors drivingnew Operating Model. Bond settlement costs during 2021 related to costs associated with the gold pricetender offer for, and will review its gold price assumption, should it consider it appropriatesubsequent redemption of, the $750 million aggregate principal amount of 5.125% notes due 2022 and amounted to do so.

Furthermore, should$24 million. These increases were partly offset by the gold price fall and remainlower cost of old tailings operations, mainly at Obuasi, due to fewer activities at such old tailings operations, and lower levels, management will consider, in addition tovalue added tax (“VAT”) and other mitigating factors, reviewing and amending the life of mine plans to reduce expenditures, optimise costs and increase cash flows in respect of its mining assets.duties expensed.


Taxation


Taxation decreasedincreased over the period 20162019 - 20182021 from an expense of $189$250 million in 20162019 to an expense of $128$312 million in 2018. Reduction2021. Increase in taxation over the period 20162019 - 2018 is2021 was largely due to a lower deferred taxation in South Africa as a result of carry forward losses, asset sales, impairments, change in estimatedincreased deferred tax ratecharges in Ghana and retrenchmentTanzania due to higher capital expenditure resulting in 2018 as well as lower current and withholding taxes related to the Tanzanian operations.temporary differences.



Taxation is likely to continue to be volatile in the coming years, as host governmentsdue to fluctuations in a number of jurisdictions increasingly seek to obtain a higher share of revenue by increasing rates of existing taxesgold price and introducing new taxes on gold mines.production.


Production in 20182021


For the year ended 31 December 2018,In 2021, AngloGold Ashanti’s total attributable gold production of 3.40was 2.472 million ounces, was 360,000a decrease of 334,000 ounces, or 1012 percent, lower than the 2017compared with its total attributable gold production of 3.762.806 million ounces.ounces in 2020. Production was lower mainly due to the company undertaking significant reinvestment across key assets and the temporary suspension of underground mining activities at Obuasi, the direct impact of COVID-19 in the first half of 2021, and secondary impacts of the pandemic, including


In South Africa, gold

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on the mobility of labour, across the full year. The direct impact on production from COVID-19 was estimated at 47,000 ounces for the full year in 2021, compared to 59,000 ounces in 2020.

Production decreased by 4611 percent, or 416,000184,000 ounces in 20182021, as compared to 2017.2020, in the Africa region. The decrease was mainly due to lower production from Geita, Iduapriem and Obuasi partly offset by higher production at Siguiri. Lower gold production at Geita was mainly due to mining lower grades and the downscalingdrawdown on stockpiles, as significant reinvestments progressed across the Geita lease during the year. Lower gold production at Iduapriem was mainly due to lower grades from the depletion of ore in Cut 1 and delayed waste stripping at Cut 2 of the Teberebie pit, as well as the impact of a drawdown on stockpiles. Lower production at Obuasi was mainly due to underground mining activities being voluntarily suspended between 18 May 2021 and 15 October 2021, following a sill pillar incident. From 15 October 2021, underground mining resumed to replenish the run-of-mine stockpile without corresponding gold production. The increase in production at Siguiri was mainly due to an improvement in recovered grade which was attributable to improved plant recoveries as a result of the orderly closurecarbon-in-leach (“CIL”) conversion done at the end of TauTona2020 and the commencement of processing Block 2 material in the second half of 2021. Production at Kibali increased marginally as the mine delivered a good overall performance from the metallurgical plant, with increased tonnage during 2021, driven by higher open pit tonnes mined as compared to 2020.

Production decreased by 11 percent, or 60,000 ounces in 2021, as compared to 2020, in the Australia region. Production was mainly impacted at Sunrise Dam by lower head grade and a decrease in metallurgical recovery, which was partially offset by higher tonnes mined in the underground mine. Mine-to-mill grade reconciliations stabilised during the second half of 2021 and access to higher-grade underground ore was achieved at the end of 2021 in the newly accessed Frankie orebody. Production was lower year-on-year at Tropicana mainly due to a lower mill feed grade as stockpile drawdowns increased while mining focused on waste removal in the Havana Stage 2 Cutback. Production was also adversely impacted by the wall failure in the Boston Shaker open pit in June 2021, which delayed higher grade ore delivery. Tropicana was also affected by labour market shortages which had an impact on open pit and underground material movement.

In the Americas region, production decreased by 14 percent, or 90,000 ounces in 2021, as compared to 2020. Lower production was encountered at AGA Mineração, Serra Grande and Cerro Vanguardia. At AGA Mineração, the Córrego do Sítio complex was mainly impacted by challenges in the crushing and milling circuit and lower tonnes of ore treated. Production was also adversely impacted by a 7-day strike by mine workers in September 20172021. In addition, at AGA Mineração, the Cuiabá complex recorded an increase in tonnes of ore treated year-on-year, which was partially offset by lower grades. At Serra Grande, production decreased year-on-year mainly due to lower tonnage resulting from various delays in accessing mine stopes, as well as lower feed grades, the negative impact of COVID-19 on mining operations as well as operational impacts of the fatality that occurred in February 2021. The production performance was further impacted by stabilisation challenges during the commissioning of the new filter process as work is ongoing to complete the conversion of the TSFs to dry-stacking operations to comply with new legal requirements in Brazil. At Cerro Vanguardia, production was down year-on-year mainly due to the effect of lower grades as per the mine plan for 2021 as well as COVID-19 related limitations and restrictions that affect the salemine’s ability to operate at full capacity.

Production in 2020

In 2020, AngloGold Ashanti’s total attributable gold production was 2.806 million ounces, a decrease of Kopanang and Moab Khotsong on 28 February 2018.

56,000 ounces, or two percent, compared with its total attributable gold production of 2.862 million ounces in 2019. Production increased by four percent, or 59,00065,000 ounces in 20182020, as compared to 2017,2019, in Continental Africa.the Africa region. The increase was mainly due to higher recovered gradesthe transition to predominantly underground operations which resulted in increased tonnes treated at Geita and increased tonnage treatedthe continued ramp-up of the Obuasi redevelopment project. Obuasi delivered 127,000 ounces in production despite delays in receiving equipment and in the arrival of skilled personnel, critical to the project, as a result of COVID-19-related lockdowns in various jurisdictions during 2020. Increased production at Siguiri was due to improvedthe increase in hard rock processing capability resulting in a higher plant throughput during 2020. The higher plant throughput has been partially offset by lower-than-planned recovery rate from high levels of carbon in the ore affecting the capacity to recover gold. Steady performance was achieved at Kibali higher tonnage treated due to improved plant efficiency and higher recovered grade, resulting from mining deeper, higher-grade areas in the Teberebie pit at Iduapriem, higher recovered grades due to a range of operational improvements which assisted in accessing higher grade ore particularly in the fourth quarter of 2018 at Geita.Iduapriem. The increase in production was partially offset by a decreasethe cessation of mining activities at Siguiri due to a decreaseSadiola and Morila in recovered grade from treating lower grade oxide materialMali, and a decrease in tonnes due to delays in the commissioningimpact of the Carbon-in Leach (CIL) combination plant.COVID-19 pandemic.


Production increaseddecreased by 12ten percent, or 66,00060,000 ounces in 20182020, as compared to 2017,2019, in the AustralasiaAustralia region. Gold production increased at Sunrise DamThe decrease was mainly due to higher mill feed grades in the firstplanned lower ore sourced from open pit and the last quarterscompletion of 2018. Improved mill feed grades and mill throughput resulted in higher productiongrade streaming activities while moving into a waste stripping phase at Tropicana.Tropicana during 2020. Steady performance was achieved by Sunrise Dam.


In the Americas region, production decreased by eightnine percent, or 64,00061,000 ounces in 20182020, as compared to 2017. The decrease2019. Lower production at Cerro Vanguardia was in Brazil mainly at AGA Mineração due to developmentthe effect of lower planned grades aligned to the current life-of-mine plan and infrastructure constraints at the Cuiaba complex and at Córrego do Sítio due to lower grades intonnes treated as a result of the sulphide operation, excessive rainfall and open-pit licensing delays. Production was also impacted by lower tonnes placed onimpact of the heap leach, model changes, and production stoppages due to strikes.COVID-19 pandemic. Production was also lower at Serra Grande due to less ore mined following geological model changes and excessive rainfall.

Production in 2017

For the year ended 31 December 2017, AngloGold Ashanti’s total attributable gold production of 3.76 million ounces was 130,000 ounces, or four percent, higher than the 2016 production of 3.63 million ounces.

In South Africa, gold production decreased by seven percent, or 64,000 ounces, in 2017 as compared to 2016. The decrease was mainly due to the downscaling of production activities as a result of the orderly closure of TauTona. Lower production at Mponeng was due to lower grades as a result of lower reef valuesgeological model changes, grade control changes and the planned move from higheroperational delays at high grade areas. Lower production at Vaal River Surface Operations was due to low mill availability at the Kopanang Gold Plant and the suspension of the processing of Kopanang marginal ore dumps. The decrease in production was partially offsetstope areas, further impacted by higher production at Moab Khotsong due to improved production efficiencies and fewer safety stoppages. Higher production was also recorded at Mine Waste Solutionsabsenteeism due to the increase in feed grades due to higher grades from the Sulphur pay and the East tailing storage facilities, coupled with improvements in recoveries.

COVID-19 pandemic. Production increased by 10 percent, or 132,000 ounces, in 2017 as compared to 2016, in Continental Africa. The increase was mainly due to higher recovered grades at Iduapriem, higher grades mined at Siguiri, which included mining in the new Seguelen pit and the higher recovered grades at Geita due to the planned mining of higher grade areas as Geita continues mining in Nyankanga Cut 7 and 8.

Production increased by eight percent, or 39,000 ounces, in 2017 as compared to 2016, in the Australasia region. Gold production increased at Sunrise Dam due to increased grades, increased mill throughput and improved metallurgical recoveries. Improved mill throughput resulted in higher production at Tropicana.

In the Americas region, production increased by two percent, or 20,000 ounces in 2017 as compared to 2016. The increase was mainly due to higher production from CDS Operation with higher tonnes from the Sulphide mine and grade from both the Oxide and Sulphide minesmaintained at AGA Mineração despite the impact of stoppages and absenteeism due to COVID-19, unexpected heavier-than-normal rains in Brazil.the first half of the year, as well as geotechnical issues on the high-grade areas.









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Comparison of financial performance in 2018, 20172021, 2020 and 20162019
Financial performance of AngloGold AshantiYear ended 31 December
(in $ millions)202120202019
Continuing operations
Revenue from product sales4,029 4,427 3,525 
Cost of sales(2,857)(2,699)(2,626)
Total of all other (expenses) income(463)(417)(448)
Share of associates and joint ventures’ profit (loss)249 278 168 
Taxation(312)(625)(250)
Discontinued operations
Profit (loss) from discontinued operations— 7 (376)
Profit for the period646971(7)
Net profit (loss) attributable to equity shareholders
 - Continuing operations622 946 364 
 - Discontinued operations— 7 (376)
Net profit (loss) attributable to non-controlling interests
 - Continuing operations24 18 5 
Financial performance of AngloGold AshantiYear ended 31 December
(in $ millions)2018
 2017
 2016
Revenue from product sales3,943
 4,510
 4,223
Cost of sales(3,173) (3,736) (3,401)
Other expenses(614) (859) (564)
Share of associates and joint ventures’ profit122
 22
 11
Taxation expense(128) (108) (189)
Net profit attributable to non-controlling interests17
 20
 17
Net profit (loss) attributable to equity shareholders133
 (191) 63

Comparison of total cost of sales in 2018, 20172021, 2020 and 20162019

The following table presents cost of sales from continuing operations for the AngloGold Ashanti group for the three-year period ended 31 December 2018:2021:
Cost of sales for AngloGold AshantiYear ended 31 December
(in $ millions)202120202019
Total cost of sales2,857 2,699 2,626 
Inventory change(6)(21)(5)
Amortisation of tangible assets(411)(521)(538)
Amortisation of intangible assets(3)(2)(3)
Amortisation of right of use assets(63)(47)(42)
Retrenchment costs(2)(2)(4)
Rehabilitation and other non-cash costs(38)(32)(53)
Total cash costs2,334 2,074 1,981 
Cost of sales for AngloGold AshantiYear ended 31 December
(in $ millions)2018
 2017
 2016
Total cost of sales3,173
 3,736
 3,401
Inventory change(14) (15) 38
Amortisation of tangible assets(625) (817) (789)
Amortisation of intangible assets(5) (6) (20)
Retrenchment costs(4) (6) (14)
Rehabilitation and other non-cash costs(20) (29) (43)
Total cash costs2,505
 2,863
 2,573


Comparison of financial performance in 20182021 with 2017

2020
Our gold income is materially impacted by price and volume variances. All of our costs are impacted by the consequences of average exchange rate movements.


Exchange fluctuations in and the average exchange rates for the South African rand, Brazilian real, Australian dollar and the ArgentinianArgentinean peso have effects on the various components that make up our costs based on the level of local procurement of each of these costs. For a discussion of the effect of foreign exchange fluctuations on our financial results, see “Item 5A: Operating Results-KeyResults—Key factors affecting results-Foreignresults—Foreign exchange fluctuations”.



Revenue from product sales


Revenue from product sales decreased by $567$398 million, or 13nine percent, from $4,510$4,427 million in 20172020 to $3,943$4,029 million in 2018,2021, mainly as a result of thea decrease in gold sold of 446,000 ounces.income, partly offset by an increase in by-product revenue. Gold income decreased by $551$419 million, or 1410 percent, from $4,356$4,322 million in 20172020 to $3,805$3,903 million in 2018,2021. This decrease was mainly due to a decrease in ounces of gold sold, partly offset by an increase in the average gold price received of $18 per ounce. Gold sold decreased by 260,000 ounces, or 11 percent, from 2.376 million ounces in 2020 to 2.116 million ounces in 2021, which resulted in a decrease in gold sold.income of $451 million, partly offset by an increase in average gold price received. The average gold price received increased by $10$18 per ounce, or one percent, from $1,251$1,778 per ounce during 20172020 to $1,261$1,796 per ounce in 2018,2021, which resulted in an increase in gold income of $30$32 million. By-product revenue decreasedincreased by $16$21 million, or 1020 percent, to $138 million from $154$126 million in 2017,2021 from $105 million in 2020, mainly due to lessan increase in revenue from silver and less revenue from uranium as a result of the sale of the company’s interest in Nuclear Fuels Corporation of South Africa Proprietary Limited (Nufcor).silver.





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Revenue from product sales from the South AfricanAfrica operations in 2018(excluding equity-accounted joint ventures) decreased by $507$137 million, or 45six percent, to $608 million from $1,115$1,988 million in 2017. The decrease was2021 from $2,125 million in 2020, mainly as a result of thea decrease in gold sold of 402,000 ounces, primarily as a result of the sale of Kopanang and Moab Khotsong assets, which accounted for a $415 million decrease and the orderly closure of TauTona, which accounted for a $114 million decrease in revenue from product sales. Revenue from product sales alsoincome. Gold income (excluding equity-accounted joint ventures) decreased by $22 million at the Surface Operations. The decrease was partially offset by a $53 million increase in revenue from Mponeng and the increase in the gold price received which resulted in an increase in gold income of $3 million.

Revenue from product sales from the Continental Africa operations decreased by $39$137 million, or twosix percent, to $1,405from $2,122 million in 2018 from $1,4442020 to $1,985 million in 2017, mainly as a result of the2021. This decrease in gold sold of 24,000 ounces, which resulted in a decrease of gold income of $49 million. The decrease in production was mainly due to lower recovered grades at Siguiri partially offset by

increased production at Iduapriem and Geita. The decrease in revenue was partiallyounces of gold sold, partly offset by an increase in the average gold price received resultingreceived. Gold sold decreased by 95,000 ounces, or eight percent, from 1.155 million ounces in an increase2020 to 1.060 million ounces in 2021, which resulted in a decrease in gold income of $10 million.

Revenue from product sales from Australasia increased$149 million, partly offset by $71 million, or 10 percent, from $711 million in 2017 to $782 million in 2018. The increase was due to the increase of 53,000 ounces in gold sold in 2018, which resulted in an increase in average gold income of $65 million. Gold production increased at Sunrise Damprice received. The decrease was mainly due to increased mill feed gradeslower production from Iduapriem, Obuasi and improved mill throughput resulted inGeita, partly offset by higher production at Tropicana.Siguiri. For a discussion of the decrease in production at the Africa operations during 2021, see “Item 5A: Operating Results—Key factors affecting results—Production in 2021”. The increase in the average gold price received resulted in an increase in gold income of $6$12 million. By-product revenue (excluding equity-accounted joint ventures) of $3 million in 2021 remained unchanged from $3 million in 2020.


Revenue from product sales from the Australia operations decreased by $98 million, or 10 percent, from $992 million in 2020 to $894 million in 2021, mainly as a result of a decrease in gold income, partly offset by an increase in by-product revenue. Gold income decreased by $99 million, or ten percent, from $989 million in 2020 to $890 million in 2021. This decrease was mainly due to lower ounces of gold sold, partly offset by an increase in the average gold price received. Gold sold decreased by 62,000 ounces, or 11 percent, from 557,000 million ounces in 2020 to 495,000 ounces in 2021, which resulted in a decrease in gold income of $108 million. For a discussion of the decrease in production at the Australia operations during 2021, see “Item 5A: Operating Results—Key factors affecting results—Production in 2021”. The increase in the average gold price received resulted in an increase in gold income of $9 million. By-product revenue increased by $1 million, or 33 percent, to $4 million in 2021 from $3 million in 2020, mainly due to an increase in revenue from silver.

Revenue from product sales from the Americas operations decreased by $91$163 million, or seven12 percent, from $1,240$1,310 million in 20172020 to $1,149$1,147 million in 2018. The2021, mainly as a result of a decrease in gold income, partly offset by an increase in by-product revenue. Gold income decreased by $183 million, or 15 percent, from $1,211 million in 2020 to $1,028 million in 2021. This decrease was mainly due to a decreaselower ounces of 72,000gold sold, partly offset by an increase in the average gold price received. Gold sold decreased by 103,000 ounces, or 16 percent, from 664,000 million ounces in gold sold2020 to 561,000 ounces in 2018,2021, which resulted in a decrease in gold income of $91$194 million. GoldFor a discussion of the decrease in production primarily decreased at AGA Mineraçãothe Americas operations during 2021, see “Item 5A: Operating Results—Key factors affecting results—Production in Brazil mainly due to development and infrastructure constraints, coupled with lower grades.2021”. The increase in theaverage gold price received resulted in an increase inof gold income of $8$11 million. By-product revenue increased by $20 million, or 20 percent, to $119 million in 2021 from $99 million in 2020, mainly due to an increase in revenue from silver.


Cost of sales


Cost of sales decreasedincreased from $3,736$2,699 million in 20172020 to $3,173$2,857 million in 2018,2021, which represents a $563$158 million, or six percent, increase. The increase was primarily due to an increase in cash operating costs by $279 million, or 15 percent, decrease. The decrease was primarily due to a $372$2,160 million in 2021 from $1,881 million in 2020, an increase in environmental rehabilitation and other non-cash costs by $6 million, or 1419 percent, to $38 million in 2021 from $32 million in 2020, and an increase in amortisation of right of use assets by $16 million, or 34 percent, to $63 million in 2021 from $47 million in 2020. The increase was partly offset by a decrease in cash operating costs from $2,728royalties paid by $19 million, or 10 percent, to $162 million in 2017 to $2,3562021 from $181 million in 2018.2020, a decrease in amortisation of tangible assets of $110 million, or 21 percent, to $411 million in 2021 from $521 million in 2020 and an inventory change of $15 million, or 71 percent, to $6 million in 2021 from $21 million in 2020. The decreaseincrease in cash operating costs was primarilymainly due to higher labour and contractors’ costs, commodity prices, logistics costs, consumable stores, COVID-19 pandemic related expenditure, services, other charges, fuel and power costs. Higher labour and contractors’ costs were mainly due to COVID-19 related cost increases resulting from challenges with travel restrictions and shortages of critical skills at certain operations. Higher commodity costs were mainly due to an increase in the saleprices of Kopanang, Moab Khotsongsteel, support and construction materials, lime and other reagents. COVID-19 presented challenges within the closure of TauTona in South Africaoverall logistics sector resulting in a decrease in labour costs, storeshigher cost of transportation, warehousing and consumable costs,inventory prices. Higher fuel and power costs and service related costs. The increase in royalties of $19 million iswere mainly due to the increase in revenuethe price of Brent Crude oil, which increased from the higher gold price and production achieved primarily at Geita. Total amortisation decreased by $193 million from $823 million$42 per barrel in 20172020 to $630 million$71 per barrel in 2018. There was2021, a $1 million inventory change from positive $15 million to positive $14 million. Rehabilitation$29 per barrel, or a 69 percent increase. The increase in environmental rehabilitation and other non-cash costs decreased by $9 million from $29 million in 2017 to $20 million in 2018. This decreaseprimarily arose from the changes to restoration provision cash flows inflation rates andin 2021 compared to 2020. The change in restoration provision cash flows was attributable to changes in discount rates compareddue to 2017. Retrenchment costs decreased by $2 millionchanges in global economic assumptions, changes in mine plans resulting in a change in cash flows, changes in design of our TSFs in Brazil due to new legal requirements, and changes in the methodology used to calculate such estimates in response to comments from $6 millionenvironmental regulatory authorities. The increase in 2017 to $4 million in 2018.

In South Africa costamortisation of sales decreased from $1,129 million in 2017 to $590 million in 2018, which represents a $539 million or 48 percent decrease. The decreaseright of use assets was mainly due to the salean increase in number of Kopanang, Moab Khotsong and the closureright of TauTona resultinguse assets in 2021 as compared to 2020 largely due to a change in business strategy whereby certain heavy mobile equipment is leased. The decrease in royalties paid primarily arose from a decrease in labour costs, stores and consumable costs, fuel and power costs and service related costs.ounces of gold sold in 2021 as compared to 2020. The decrease in amortisation of tangible assets was partially offset by a $36 million increase at Mponengmainly due to lower amortisation of waste stripping and strengthening of the local currency against the US dollar.lower gold production in 2021 as compared to 2020.


In Continental Africa, cost of sales increased from $1,072$1,232 million in 20172020 to $1,127$1,300 million in 2018,2021, which represents a $55$68 million, or six percent, increase. The increase was mainly due to an increase in labour and contractors’ costs, commodity prices, logistics costs, consumable stores, environmental rehabilitation and other non-cash costs, amortisation of right of use assets, services and other charges, power and fuel costs and higher ore stockpile adjustments. Higher commodity costs were mainly due to an increase in the prices of steel, support and construction materials, lime and other reagents. COVID-19 presented challenges within the overall logistics sector resulting in higher cost of transportation, warehousing and inventory prices. The higher fuel



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and power costs were mainly due to the increase in the price of Brent Crude oil, which increased from $42 per barrel in 2020 to $71 per barrel in 2021, a $29 per barrel, or a 69 percent increase. The increase in cost of sales was partly offset by lower amortisation of waste stripping and lower royalties paid due to a decrease in ounces of gold sold in 2021 as compared to 2020.

In Australia, cost of sales increased from $705 million in 2020 to $740 million in 2021, which represents a $35 million, or five percent, increase. The increase was mainly due to an increase in contractorlabour and contractors’ costs, commodity prices, logistics costs, consumable stores, amortisation of right of use assets, services and other charges, power and fuel costs, ore stockpile adjustments and the strengthening of the Australian dollar against the US dollar by eight percent. The higher labour and contractors’ costs were mainly due to COVID-19 related cost increases resulting from challenges with travel restrictions and shortages of critical skills. Higher commodity costs were mainly due to an increase in the prices of steel, support and construction materials, lime and other reagents. COVID-19 presented challenges within the overall logistics sector resulting in higher cost of transportation, warehousing and inventory prices. The higher fuel and power costs service related costs, royalties,were mainly due to the increase in the price of Brent Crude oil, which increased from $42 per barrel in 2020 to $71 per barrel in 2021, a $29 per barrel, or a 69 percent increase. The increase in cost of sales was partly offset by lower environmental rehabilitation and other non-cash costs, lower amortisation of waste stripping due to lower levels of stripping in 2021 as compared to 2020 and inventory change. The increase was partially offset bylower royalties paid due to a decrease in amortisationounces of tangible assets.gold sold in 2021 as compared to 2020.


In Australasiathe Americas, cost of sales increased from $552$764 million in 20172020 to $622$822 million in 2018,2021, which represents a $70$58 million, or 13eight percent, increase. The increase was mainly due to an increase in contractorlabour and contractors’ costs, servicecommodity prices, logistics costs, consumable stores, amortisation of right of use assets, services and other charges, power and fuel cost, write down of inventory and environmental rehabilitation and other non-cash costs. The higher labour and contractors’ costs were mainly due to COVID-19 related cost increases resulting from challenges with travel restrictions and shortages of critical skills. Higher commodity costs were mainly due to an increase in the prices of steel, support and construction materials, lime and other reagents. COVID-19 presented challenges within the overall logistics sector resulting in higher cost of transportation, warehousing and inventory prices. The higher fuel costs were mainly due to the increase in the price of Brent Crude oil, which increased from $42 per barrel in 2020 to $71 per barrel in 2021, a $29 per barrel, or a 69 percent increase. The increase in cost of sales was partly offset by lower royalties paid due to a decrease in ounces of gold sold in 2021 as compared to 2020, lower amortisation of tangible assets. The increase was partially offset by the weakeningassets due to a decrease in ounces of the local currency against the US dollar.

In the Americas cost of sales decreased from $987 milliongold produced in 20172021 as compared to $838 million in 2018, which represents a $149 million or 15 percent decrease. The decrease was mainly due to2020 and the weakening of the local currencies against the ArgentinianUS dollar. The Argentinean peso weakened by 7035 percent and the Brazilian real by 15five percent, against the US dollar.



Total cash costs


Total cash costs decreasedincreased from $2,863$2,074 million in 20172020 to $2,505$2,334 million in 2018,2021, which represents a $358$260 million, or 13 percent, decrease.increase. The decreaseincrease was primarily due to an increase in cash operating costs, partly offset by a decrease in royalties paid. Total cash costs include cash operating costs (which include salaries and wages, stores, explosives, reagents, logistics, fuel, power, water and contractors’ costs), royalties and other cash costs. The strengthening of the sale of Kopanang, Moab Khotsong andAustralian dollar against the closure of TauTonaUS dollar contributed to the increase in South Africa. Thetotal cash costs, which was partially offset by the weakening of local currencies against the US dollar in Brazil and Argentina.

Cash operating costs increased by $279 million, or 15 percent, to $2,160 million in 2021 from $1,881 million in 2020, primarily due to higher labour and contractors’ costs, commodity prices, logistics costs, consumable stores, COVID-19 pandemic related expenditure, services and other charges as well as higher fuel and power costs. The strengthening of the Australian dollar against the US dollar contributed $124 million to the decrease. The decreaseincrease in total cash costs, which was partially offset by an increasethe weakening of local currencies against the US dollar in royalties. Total cashBrazil and Argentina. Cash operating costs includeincludes salaries and wages, stores, and other consumables (which include explosives, timber and reagents, amongst others),logistics, fuel, power, water and water costs, contractors’ costs and royalties.costs.


Royalties, which are generally calculated as a percentage of revenue, increaseddecreased from $116$181 million in 20172020 to $135$162 million in 2018,2021, which represents a $19 million, or 10 percent, decrease. The decrease was primarily due to a decrease in gold sales across all mining operations with the exception of Siguiri. The decrease was partially offset by an increase in the spotincreased average gold prices and an increase in production at Geita (Tanzania).price received per ounce.


Retrenchment costs


Retrenchment costs included in cost of sales decreased from $6remained unchanged at $2 million in 20172021 as compared to $42020.

Rehabilitation and other non-cash costs

Environmental rehabilitation and other non-cash costs increased from $32 million in 2018,2020 to $38 million in 2021, which represents a $2$6 million, or 33a 19 percent, increase.The increase was mainly due to changes in design of TSFs in Brazil to dry-stacked structures to comply with new legal requirements, changes in mine plans resulting in a change in cash flows and changes in the methodology used to calculate such estimates in response to comments from environmental regulatory authorities and changes in global economic assumptions.





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Amortisation of tangible, intangible and right of use assets

Amortisation of tangible, intangible and right of use assets expense decreased from $570 million in 2020 to $477 million in 2021, which represents a $93 million, or 16 percent, decrease.

Amortisation of tangible assets decreased by $110 million, or 21 percent, from $521 million in 2020 to $411 million in 2021. The decrease was mainly due to lower retrenchment costs in Brazil in the Americas.




Rehabilitation costs

Rehabilitation costs decreased from $1 million in 2017amortisation at Geita due to nil in 2018. The change in estimates is attributable to changes in discount rates following changes in global economic assumptions and changes in mine plans. These changes have resulted in changes in cash flows, the design of tailings storage facilities and in methodology, following requests from the environmental regulatory authorities.

Amortisation of tangible and intangible assets

Amortisation of tangible and intangible assets expense decreased from $823 million in 2017 to $630 million in 2018, which represents a $193 million or 23 percent decrease. Amortisation of tangible assets decreased by $192 million from $817 million in 2017 to $625 million in 2018 largely due the sale of Kopanang, Moab Khotsonglower production and the closure of TauTona, depletion ofthe Nyankanga Cut 8 open pit ore at Geita,in 2021, the reset of useful life in February 2021 for the heavy moving equipment fleet resulting in lower amortisation compared to 2020, and the reset of the useful life in February 2021 for Mineral Reserve development amortisation drivers and lower Mineral Reserve development capital expenditures in 2021 compared to 2020. At Iduapriem, amortisation was lower than in 2020 mainly due to lower production and lower deferred stripping amortisation in 2021 at Siguiri,Teberebie Cut 1 and Cut 3, at AGA Mineração, amortisation was lower mainly due to lower production, and at Tropicana, amortisation was lower mainly due to lower production and lower deferred stripping amortisation, partly offset by higher Mineral Reserve development amortisation. This decrease was partly offset by higher amortisation at Obuasi mainly due to the amortisation for the nine months of January 2020 to September 2020 being capitalised as part of pre-production cost, which has made amortisation for 2021 significantly higher than that of 2020.

Amortisation of intangible assets increased by $1 million, or 50 percent, from $2 million in 2020 to $3 million in 2021 mainly due to software and licence expenditure at Obuasi.

Amortisation relating to right of use assets increased by $16 million, or 34 percent, from $47 million in 2020 to $63 million in 2021 largely at AGA Mineração, Serra Grande and Geita mainly due to a change in business strategy whereby certain heavy mobile equipment is leased at these operations.

Inventory change

Inventory change decreased from $21 million in 2020 to $6 million in 2021, which represents a $15 million, or 71 percent decrease. This decrease was primarily due to lower cost and amortisation at Cerro Vanguardia of $23 million due to less ounces produced and sold than in 2020 and lower productioncost at Geita of $11 million with less ounces produced and capital spend at Córrego do Sítio and Serra Grande. The decrease was partiallysold, partly offset by an increase in amortisationinventory valuation upward adjustment at Sunrise DamObuasi of $20 million as a result of timing of shipment.

Impairment, derecognition of assets and Tropicana in Australia dueprofit (loss) on disposal

Impairment, derecognition of assets and profit (loss) on disposal increased by $12 million to higher production.

Other expenses

Other operating expenses increased from $88a profit of $11 million in 2017 to $972021, from a loss of $1 million in 2018, which represents a $92020. During 2021, profit on disposal of assets was $17 million or 10 percent increase. The increase was mainly due to the disposal of properties held in Brazil, partly offset by derecognition of assets at Obuasi of $4 million, impairment of assets at the Corporate office of $1 million due to relocation to new premises and impairment of the La Cascada hydroelectric power plant assets at Gramalote of $1 million. This compares to a $1 million loss from real estate activities in Brazil in 2020.

Other (expenses) income

Other (expenses) income increased by $79 million, or 139 percent, to an expense of $136 million in 2021, compared to an expense of $57 million in 2020. The increase in expenses during 2021 was largely due to care and maintenance activities at the Obuasi mine, retrenchment and related costs, premium on settlement of bonds and a refund from an insurance claim in 2020 which was not repeated in 2021. Underground mining activities were voluntarily suspended between 18 May 2021 and 15 October 2021 at the Obuasi mine, following a sill pillar incident. From 15 October 2021, underground mining resumed to replenish the run-of-mine stockpile without corresponding gold production. Since the voluntary suspension of underground mining activities, care and maintenance costs of $12$45 million partially offset by a decrease in other provisionswere incurred at Obuasi during 2021. Retrenchment and related costs of $4 million. Corporate expenses increased by $12$18 million in 2018 compared to 2017. The increase is mainly due to sign-on costs relatingwere incurred during 2021 as part of the transition to the new CEOOperating Model. Bond settlement costs during 2018, legal fees, overseas travel2021 related to costs associated with the tender offer for, and strengtheningsubsequent redemption of, the South African rand against$750 million aggregate principal amount of 5.125% notes due 2022 and amounted to $24 million. These increases in expenses were partly offset by the US dollar.

Special items

Special items decreased from $438 million in 2017lower cost of old tailings operations, mainly at Obuasi, due to $170 million in 2018, which represents a $268 million, or 61 percent, decrease. Special items occurring during 2018 were impairment of assetsfewer activities at the South African Surface Operations (First Uranium) of $93 million; retrenchment costs following the restructuring of the South Africasuch old tailings operations, of $31 million; loss on disposal of assets of $20 million mainly related to asset sales in South Africa; group’s legal feeslower VAT and other costs related to contract terminations and settlement costs of $17 million; indirect taxes of $4 million and derecognition of assets of $5 million at Obuasi in Ghana and $6 million at the West Wits Operations in South Africa. The decrease was partially offset by royalties received of $7 million in Australia and $3 million in South Africa.duties expensed.


Finance costs and unwinding of obligations


Finance costs decreased by $2$28 million, or one20 percent, to $140$110 million in 2018,2021, compared to $142$138 million in 2017.2020, mainly due to an increase in capitalisation of interest against the Obuasi redevelopment project, lower finance costs from borrowings and amortisation fees as 2020 included finance costs related to a $1.0 billion standby credit facility not repeated in 2021. Unwinding of obligations of $38decreased by $33 million, was recordedor 85 percent, to $6 million in 20182021, compared with $27$39 million in 2017.2020, mainly due to a decrease in unwinding of other indirect taxes at Geita.


Share of associates and joint ventures'ventures’ profit





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Share of associates and joint ventures'ventures’ profit increaseddecreased by $29 million, or 10 percent, to a profit of $122$249 million in 20182021, compared to a profit of $22$278 million in 2017,2020, mainly as a result of an increasea decrease in equity earnings after taxation of $86$7 million (mainly at Kibali)Kibali and an increase$5 million at Rand Refinery (Pty) Limited, as well as a profit of $19 million on the sale of the Morila and Sadiola mines in net impairment reversalsMali during 2020 not repeated in 2021, partly offset by losses of $2 million at Gramalote during 2020 not repeated during 2021.

Investments in associates and joint ventures

Investments in associates and joint ventures decreased by $4 million, from $15$1,651 million in 20172020 to $29$1,647 million in 2018.2021, largely due to the cash repatriation from the Kibali joint venture located in the Democratic Republic of the Congo (“DRC”), which continues to be slow. In 2021, AngloGold Ashanti’s cumulative cash receipts from the Kibali joint venture, in the form of dividends from Kibali (Jersey) Limited, amounted to $231 million. Kibali (Jersey) Limited received such cash from Kibali Goldmines S.A. in the form of loan repayments (AngloGold Ashanti’s attributable share: $150 million) and dividends (net of withholding taxes) (AngloGold Ashanti’s attributable share: $81 million). At 31 December 2021, AngloGold Ashanti’s attributable share of the outstanding cash balances awaiting repatriation from the DRC amounted to $499 million. The cash is fully available for the operational requirements of Kibali Goldmines S.A. In addition, Kibali Goldmines S.A. is due certain refunds of VAT which, to date, remain outstanding. During 2021, AngloGold Ashanti did not recover any VAT offsets and refunds from its operations in the DRC. At 31 December 2021, the attributable share of the net recoverable VAT balance (including recoverable fuel duty and after discounting provisions) owed to AngloGold Ashanti by the DRC government amounted to $73 million. See “Item 4B: Business Overview—The Regulatory Environment Enabling AngloGold Ashanti to Mine—Africa—Democratic Republic of the Congo (DRC)”.


Taxation


A taxation expense of $128$312 million was recorded in 2018,2021, compared to ana taxation expense of $108$625 million in 2017.2020, which represents a $313 million, or 50 percent, decrease. Charges for current tax in 20182021 amounted to $242$248 million, compared to $176$562 million in 2017.2020, which represents a $314 million, or 56 percent, decrease. The increasedecrease in current tax iswas mainly due to higher earningslower pre-tax profit in Ghana, Australia, Brazil, Argentina and Argentina in 2018 compared to credits received for changes to tax legislation enacted in North America during December 2017.Tanzania. Charges for deferred tax in 20182021 amounted to a net deferred tax benefitexpense of $114$64 million, compared to a net deferred tax benefit of $68$63 million in 2017. The increase2020, which represents a $1 million, or two percent, increase.

Discontinued operations

A profit from discontinued operations of $7 million was recorded in the deferred taxation benefit mainly relates to lower withholding tax in Tanzania, a taxation holiday agreement in Guinea and capital uplift allowances at First Uranium (South Africa) in 20172020, which werewas not repeated in 2018.2021. The profit of $7 million consists of an operating loss after tax of $9 million and an impairment reversal of $16 million. As a result of the sale of the company’s remaining South African producing assets and related liabilities in September 2020, the South African operations were accounted for as discontinued operations for the years ended and as at 31 December 2020 and 31 December 2019.



Comparison of financial performance in 20172020 with 20162019


Our gold income is materially impacted by price and volume variances. All of our costs are impacted by the consequences of average exchange rate movements.


Exchange fluctuations in and the average exchange rates for the South African rand, Brazilian real, Australian dollar and the ArgentinianArgentinean peso have effects on the various components that make up our costs based on the level of local procurement of each of these costs. For a discussion of the effect of foreign exchange fluctuations on our financial results, see “Item 5A: Operating Results-KeyResults—Key factors affecting results-Foreignresults—Foreign exchange fluctuations”.



Revenue from product sales


Revenue from product sales increased by $287$902 million, or seven26 percent, from $4,223$3,525 million in 20162019 to $4,510$4,427 million in 2017. Gold income increased by $271 million, or seven percent, from $4,085 million in 2016 to $4,356 million in 2017,2020, mainly as a result of the increase in the average gold price received of $384 per ounce. Gold income increased by $883 million, or 26 percent, from $3,439 million in 2019 to $4,322 million in 2020, due to the increase in the average gold price received partially offset by the decrease in ounces of gold sold. Gold sold of 179,000decreased by 34,000 ounces, or one percent, from 2.410 million ounces in 2019 to 2.376 million ounces in 2020, which resulted in ana decrease in gold income of $241$49 million. The average gold price received increased by $8$384 per ounce, or one28 percent, from $1,243$1,394 per ounce during 20162019 to $1,251$1,778 per ounce in 2017 which resulted in a further increase in gold income of $30 million. By-product revenue increased by $16 million, or 12 percent, from $138 million in 2016 to $154 million in 2017, mainly due to an increase in silver revenue at Cerro Vanguardia partially offset by a decrease in revenue from uranium in South Africa.

Revenue from product sales from the South African operations decreased by $81 million, or seven percent, from $1,196 million in 2016 to $1,115 million in 2017. Gold income in 2017 decreased by $72 million, or six percent, to $1,101 million from $1,173 million in 2016. The decrease was mainly as a result of the decrease in gold sold of 61,000 ounces, primarily as a result of the orderly closure of TauTona, which accounted for a $80 million decrease in gold income. The decrease was partially offset by the increase in the gold price received2020, which resulted in an increase in gold income of $8$932 million. Revenue from uranium (by-product) decreasedBy-product revenue increased by $8$19 million, or 3822 percent, from $21to $105 million in 2016 to $132020 from $86 million in 2017.2019, mainly due to an increase in revenue from silver.


Revenue from product sales from the Continental Africa operations (excluding equity-accounted joint ventures) increased by $211$535 million, or 1734 percent, from $1,233to $2,125 million in 2016 to $1,4442020 from $1,590 million in 2017. Gold income increased by $212 million, or 17 percent, to $1,442 million in 2017 from $1,230 million in 2016,2019, mainly as a result of the increase in average gold sold of 149,000 ounces,price received, which resulted in an increase of gold income of $203$443 million. The increase in productiongold ounces of 59,000 ounces sold contributed to an increase in gold income of $91 million. The increase was mainly due to the transition to predominantly underground operations which resulted in increased tonnes treated at Geita and the commissioning of the Obuasi redevelopment project. Once commissioned, Obuasi sold 27,000 ounces despite delays in the pre-production phase receiving equipment and in the arrival of skilled personnel, critical to the project, as a result of the lockdowns in various jurisdictions



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during 2020. A marginal increase in production at Siguiri was due to the increase in hard rock processing capability resulting in a higher recovered gradesplant throughput during 2020. The higher plant throughput was partially offset by lower than planned recovery rate from high levels of carbon in the ore affecting the capacity to recover gold. Steady production performance was achieved at Iduapriem, Siguiri and Geita.Iduapriem. By-product revenue (excluding equity-accounted joint ventures) increased by $1 million, or 50 percent, to $3 million in 2020 from $2 million in 2019, mainly due to an increase in revenue from silver.

Revenue from product sales from the Australia operations increased by $138 million, or 16 percent, from $854 million in 2019 to $992 million in 2020. The increase in the average gold price received resulted in an increase in gold income of $9$213 million. RevenueGold production decreased mainly due to planned lower ore sourced from by-products decreasedopen pit and completion of grade streaming activities while moving into a waste stripping phase at Tropicana during 2020. Steady production performance was achieved by $1Sunrise Dam. The decrease in gold ounces sold resulted in a decrease in gold income of $75 million. By-product revenue of $3 million or 33 percent,in 2020 remained unchanged from $3 million in 2016 to $2 million in 2017.2019.

Revenue from product sales from Australasia increased by $64 million, or 10 percent, from $647 million in 2016 to $711 million in 2017. Gold income increased by $63 million, or 10 percent, from $646 million in 2016 to $709 million in 2017. The increase was due to the increase of 43,000 ounces in gold sold in 2017, which resulted in an increase in gold income of $59 million. Gold production increased at Sunrise Dam due to increased grades and improved metallurgical recoveries and improved mill throughput resulted in higher production at Tropicana. The increase in the gold price received resulted in an increase in gold income of $4 million.


Revenue from product sales from the Americas operations increased by $94$229 million, or eight21 percent, from $1,146$1,081 million in 20162019 to $1,240$1,310 million in 2017.2020 mainly as a result of the increase in average gold price received which resulted in an increase of gold income of $261 million. Gold income increased by $68$211 million, or seven21 percent, from $1,036$1,000 million in 20162019 to $1,104$1,211 million in 2017.2020. The increase was due to an increasepartly offset by a decrease of 47,00036,000 ounces in gold sold in 2017,2020, which resulted in an increasea decrease in gold income of $61$50 million. Gold production primarily increaseddecreased at Cerro Vanguardia due to the effect of lower planned grades aligned to the current life-of-mine plan and due to lower tonnes treated as a result of the impact of the COVID-19 pandemic. Production was also lower at Serra Grande due to lower grades as a result of geological model changes, grade control changes and operational delays at high grade stope areas, further impacted by absenteeism due to the COVID-19 pandemic. Production was maintained at AGA Mineração despite the impact of stoppages and absenteeism due to COVID-19, unexpected heavier-than-normal rains in Brazilthe first half of the year, as well as geotechnical issues on the high-grade areas. By-product revenue increased by $18 million, or 22 percent, to $99 million in 2020 from $81 million in 2019, mainly due to higher underground tonnages mined, coupled with improved grades. The increase in the gold price received resulted in an increase in gold income of $7 million. Revenuerevenue from by-products increased by $25 million, or 23 percent, from $110 million in 2016 to $135 million in 2017, mainly due to silver revenue at Cerro Vanguardia.silver.



Cost of sales


Cost of sales increased from $3,401$2,626 million in 20162019 to $3,736$2,699 million in 2017,2020, which represents a $335$73 million, or 10three percent, increase. The increase was primarily due to $284 million, or 12 percent,an increase in cash operating costs from $2,444by $50 million, or three percent, to $1,881 million in 2016 to $2,7282020 from $1,831 million in 2017.2019 and an increase in royalties paid by $44 million, or 32 percent, to $181 million in 2020 from $137 million in 2019, partly offset by a decrease in environmental rehabilitation and other non-cash costs by $21 million, or 40 percent, to $32 million in 2020 from $53 million in 2019. The increase in cash operating costs was mainly due to the strengthening of local currencies against the US dollarhigher labour and inflationary increases in labourcontractors’ costs, consumable stores, COVID-19 pandemic related expenditure, services and consumable costs,other charges, partly offset by lower fuel and power costs and contractor costs. The increase in royalties of $11 million is due to the increase in revenue from the higher gold price, production achieved and increased royalty rates in 2017 compared to 2016. The additional royalty paid at Geita of $11 million was accounted for as a special item. Total amortisation increased by $14 million from $809 million in 2016 to $823 million in 2017. There was a $53 million inventory change from negative $38 million to positive $15 million due to a decrease in gold on hand. Rehabilitationenvironmental rehabilitation and other non-cash costs decreased by $14 million from $43 million in 2016 to $29 million in 2017. This decrease arose from the changes to restoration provision cash flows inflation rates and discount rates compared to 2016. Retrenchment costs decreased by $8 million from $14 million in 2016 to $6 million in 2017.2019.


In South Africa, cost of sales increased from $1,064$1,173 million in 20162019 to $1,129$1,232 million in 2017,2020, which represents a $65$59 million, or six percent increase. The increase was mainly due to the increase in labour costs, stores and consumable costs, fuel and power costs, service related costs and the strengthening of the local currency against the US dollar. The increase was partially offset by a decrease in amortisation of tangible assets and retrenchment costs.

In Continental Africa cost of sales increased from $928 million in 2016 to $1,072 million in 2017, which represents a $144 million or 16five percent, increase. The increase was mainly due to an increase in contractorlabour and contractors’ costs, labour costs,consumable stores, royalties paid, amortisation, services and consumable costs, fuel and power costs, amortisation of tangible assets and inventory change. The increase was partiallyother charges, partly offset by a decrease in service relatedlower fuel costs and rehabilitation and other non-cash costs.ore stockpile adjustments.



In AustralasiaAustralia, cost of sales increased from $542$632 million in 20162019 to $552$705 million in 2017,2020, which represents a $10$73 million, or two12 percent, increase. The increase was mainly due to an increase in labour and contractors’ costs, consumable stores, royalties paid, services and other charges, and ore stockpile adjustments, partly offset by lower fuel costs, amortisation and the strengtheningweakening of the local currencyAustralian dollar against the US dollar, amortisation of tangible assets and inventory change.dollar.


In the Americas, cost of sales increaseddecreased from $862$822 million in 20162019 to $987$764 million in 2017,2020, which represents a $125$58 million, or 15seven percent, increase.decrease. The increasedecrease was mainly due to the weakening of the local currencies against the US dollar, decrease in environmental rehabilitation and other non-cash costs and lower fuel costs. The Argentinean peso weakened by 46 percent and the Brazilian real by 31 percent, against the US dollar. The decrease in cost of sales was partly offset by an increase in labour costs, stores and consumable costs, fuel and power costs, contractor costs, total amortisation and inventory change. The increase was partially offset by a decrease in service related costs and an increase in by-product revenue from silver which was higher due to volumes sold.contractors’ costs.


Total cash costs


Total cash costs increased from $2,573$1,981 million in 20162019 to $2,863$2,074 million in 2017,2020, which represents a $290$93 million, or 11five percent, increase. The increase was primarily due to an increase in cash operating costs and an increase in royalties paid. Total cash costs include cash operating costs (which include salaries and wages, costs, stores, explosives, reagents, logistics, fuel, power, water and contractors’ costs), royalties and other consumablescash costs. The increase in total cash costs fuel and power costs, contractor costs and royalties. The strengtheningwas partially offset by the weakening of local currencies against the US dollar contributed $119and lower fuel and power costs.

Cash operating costs increased by $50 million, or three percent, to $1,881 million in 2020 from $1,831 million in 2019, primarily due to the increase. The increase was partiallyhigher labour and contractors’ costs, consumable stores, services and other charges, partly offset by a decrease in service relatedthe weakening of local currencies against the US dollar and lower fuel and power costs. Cash operating costs and an increase in revenue from by-products. Total cash costs includeincludes salaries and wages, stores, and other consumables (which include explosives, timber and reagents, amongst others),logistics, fuel, power, water and water costs, contractors’ costs and royalties.costs.





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Royalties, which are generally calculated as a percentage of revenue, increased from $105$137 million in 20162019 to $116$181 million in 2017,2020, which represents a $44 million, or 32 percent, increase. The increase was primarily due to an increase in the spot gold prices and an increase in production at Geita, Siguiri (Guinea)and Obuasi (which are generally subject to higher royalty rates), Cerro Vanguardia (Argentina),partially offset by a decrease in production at Tropicana (Australia) and Geita (Tanzania)Serra Grande (which are generally subject to lower royalty rates).


Retrenchment costs


Retrenchment costs included in cost of sales decreased by $2 million, or 50 percent, from $14$4 million in 20162019 to $6$2 million in 2017,2020.

Rehabilitation and other non-cash costs

Environmental rehabilitation and other non-cash costs decreased from $53 million in 2019 to $32 million in 2020, which represents an $8a $21 million, or 57a 40 percent, decrease. TheThis decrease as compared to 2019 was mainlyprimarily due to retrenchment coststhe weakening of local currencies against the US dollar, a change in discount rates due to changes in global economic assumptions, changes in mine plans resulting in a change in cash flows, changes in design of our TSFs in Brazil due to new legal requirements, and changes in the South African region being includedmethodology used to calculate such estimates in special items. Thisresponse to comments from environmental regulatory authorities.

Amortisation of tangible, intangible and right of use assets

Amortisation of tangible, intangible and right of use assets expense decreased from $583 million in 2019 to $570 million in 2020, which represents a $13 million, or two percent, decrease.

Amortisation of tangible assets decreased by $17 million, or three percent, from $538 million in 2019 to $521 million in 2020, largely due to lower production at Cerro Vanguardia, lower depreciation on the waste stripping asset at Tropicana due to lower ore sourced from open pit while moving into a waste stripping phase and lower amortisation at Serra Grande and Geita. The decrease was partially offset by an increase in retrenchment costsamortisation at Iduapriem due to higher depreciation on the waste stripping asset and commencing amortisation at Obuasi following its commissioning.

Amortisation of intangible assets decreased by $1 million, or 33 percent, from the South American region.

Rehabilitation costs

Rehabilitation costs decreased from $17$3 million in 20162019 to $1$2 million in 2017,2020 mainly due to lower software expenditure at Geita.

Amortisation relating to right of use assets increased by $5 million, or 12 percent, from $42 million in 2019 to $47 million in 2020 largely at AGA Mineração and Serra Grande.

Inventory change

Inventory change increased from $5 million in 2019 to $21 million in 2020, which represents a $16 million, decrease. The change in estimates is attributableor 320 percent increase, largely due to changes in discount rates following changes in global economic assumptionsinventory movements at Cerro Vanguardia which drew down on stockpiles.

Impairment, derecognition of assets and changes in mine plans. These changes have resulted in changes in cash flows, the designprofit (loss) on disposal

Impairment, derecognition of tailings storage facilitiesassets and in methodology, following requests from the environmental regulatory authorities.

Amortisationprofit (loss) on disposal decreased by $5 million to a loss of tangible and intangible assets

Amortisation of tangible and intangible assets expense increased from $809$1 million in 2016 to $8232020, from a loss of $6 million in 2017,2019. The loss of $1 million in 2020 was due to a loss from real estate activities in Brazil. This compares to a loss of $6 million in 2019 mainly due to the derecognition of assets at Siguiri of $2 million and at AGA Mineração of $1 million as well as a $3 million loss on the disposal of assets mainly in Brazil.

Other (expenses) income

Other (expenses) income decreased from an expense of $83 million in 2019 to an expense of $57 million in 2020, which represents a $14$26 million, or two percent increase. Amortisation of tangible assets increased by $28 million largely due to higher production at Siguiri (Guinea) and Córrego do Sítio (Brazil). The increase was partially offset by a decrease in amortisation in South Africa. Amortisation of intangible assets is $14 million lower than 2016 mainly due to decreased amortisation of software and licenses at the South African and South American operations.

Other expenses

Other operating expenses decreased from $110 million in 2016 to $88 million in 2017, which represents a $22 million, or 2031 percent, decrease. The decrease in expenses was mainlylargely due to a decrease in post-retirement defined benefit provisionsthe commissioning of $16 million in South Africa andthe Obuasi redevelopment project with no care and maintenance costs incurred during 2020, a public infrastructure contribution in Guinea during 2019 which was not repeated in 2020 and the refund of $8 million mainly at Obuasian insurance claim in Ghana partially2020, partly offset by an increasepower grid refunds in other provisions of $2 million. Corporate expensesBrazil during 2019 which were not repeated in 2020 and increased by $3 million in 2017 compared to 2016 relating mainly to exchange variances. Exchange losses decreased by $77 million mainly as a result of the $60 million exchange loss on the foreign currency translation reserve release in the prior year.export-duty receivables at Cerro Vanguardia.

Special items

Special items increased from $42 million in 2016 to $438 million in 2017, which represents a $396 million, or 943 percent, increase. This increase was mainly due to impairment and derecognition of mining assets in South Africa of $286 million and impairment of goodwill at First Uranium (South Africa) of $9 million; retrenchment costs, mainly in South Africa, of $88 million; a provision for the settlement of the silicosis class action of $63 million and the additional royalty at Geita of $11 million. The increase was partially offset by royalties received of $18 million, receipt of proceeds on the settlement of an arbitration of $6 million, other comprehensive income recycle on disposal of Mariana resources of $5 million and profit on sale of assets of $3 million.







Finance costs and unwinding of obligations


Finance costs decreased by $16$5 million, or 10three percent, to $142$138 million in 2017,2020, compared to $158$143 million in 2016. The decrease of $16 million was2019, mainly due to the reduction in interest arising on the settlement of the $1.25 billion bonds during August 2016 and settlement of the R750 million bonds during December 2016 partially offset by higher interest paid on the banking facilities in South Africa of $12 million.lower finance costs from borrowings. Unwinding of obligations expense of $27increased by $10 million, was recordedor 34 percent, to $39 million in 20172020 compared with $22$29 million in 2016.2019, mainly due to an increase in unwinding of other indirect taxes at Geita.


Share of associates and joint ventures'ventures’ profit


Share of associates and joint ventures'ventures’ profit increased by $110 million, or 65 percent, to a profit of $22$278 million in 20172020, compared to a profit of $11$168 million in 2016,2019, mainly as a result of an increase in net impairment reversalsequity earnings of $95 million at Kibali and



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$7 million at Rand Refinery (Pty) Limited. On 10 November 2020, AngloGold Ashanti together with its joint venture partner Barrick completed the sale of the Morila gold mine in Mali to Firefinch Limited. On 30 December 2020, AngloGold Ashanti together with its joint venture partner IAMGOLD completed the sale of the Sadiola gold mine in Mali to Allied Gold.

Investments in associates and joint ventures

Investments in associates and joint ventures increased by $70 million, or four percent, from $6$1,581 million in 20162019 to $15$1,651 million in 2017.2020, largely due to the cash repatriation from the Kibali joint venture located in the DRC, which continues to be slow. In 2020, AngloGold Ashanti’s dividend receipts from the Sadiola joint venture amounted to $8 million. In 2020, AngloGold Ashanti’s cumulative cash receipts from the Kibali joint venture, in the form of dividends from Kibali (Jersey) Limited, amounted to $140 million. Kibali (Jersey) Limited received such cash from Kibali Goldmines S.A. in the form of loan repayments (AngloGold Ashanti’s attributable share: $140 million). At 31 December 2020, AngloGold Ashanti’s attributable share of the outstanding cash balances awaiting repatriation from the DRC amounted to $424 million. In addition, Kibali Goldmines S.A. is due certain refunds of VAT which, to date, remain outstanding. During 2020, AngloGold Ashanti recovered $2 million in the form of VAT offsets and refunds from its operations in the DRC. At 31 December 2020, the attributable share of the net recoverable VAT balance (including recoverable fuel duty and after discounting provisions) owed to AngloGold Ashanti by the DRC government amounted to $69 million. See “Item 4B: Business Overview—The Regulatory Environment Enabling AngloGold Ashanti to Mine—Africa Region—Democratic Republic of the Congo (DRC)”.


Taxation


A taxation expense of $108$625 million was recorded in 2017,2020, compared to ana taxation expense of $189$250 million in 2016.2019, which represents a $375 million, or 150 percent, increase. Charges for current tax in 20172020 amounted to $176$562 million, compared to $234$298 million in 2016.2019, which represents a $264 million, or 89 percent, increase. The decreaseincrease in current tax iswas mainly due to lowerhigher earnings in BrazilAustralia, Ghana, Tanzania and Tanzania, elimination of withholding tax on dividends in 2017 in Argentina and credits due to changes in tax legislation substantially enacted in North America in late December 2017.Argentina. Charges for deferred tax in 20172020 amounted to a net deferred tax benefitexpense of $68$63 million, compared to a net deferred tax benefit of $45$48 million in 2016.2019, which represents a $111 million, or 231 percent, increase. The increase in the deferred taxation benefit is largely dueexpense mainly relates to higher tax losses,the derecognition of deferred tax credits booked on impairments, retrenchment and silicosis provisionsassets in South Africa during the fourth quarter of 2020.

Discontinued operations

A profit from discontinued operations of $7 million was recorded in 2020, compared to a loss from discontinued operations of $376 million in 2019, which were partially offset by therepresents a $383 million increase. The profit of $7 million consists of an operating loss after tax of $9 million and an impairment reversal of certain$16 million. As a result of the sale of the company’s remaining South African producing assets and related liabilities in September 2020, the South African operations were accounted for as discontinued operations for the years ended and as at 31 December 2020 and 31 December 2019.

Comparison of capital uplift allowances at First Uranium (in South Africa) relating to prior years.expenditure in 2021, 2020 and 2019



Capital expenditure

The following table presents capital expenditure data from continuing operations for the AngloGold Ashanti group for the three-year period ended 31 December 2018:2021:
Capital expenditure data for AngloGold AshantiYear ended 31 December
(in $ millions)202120202019
Capital expenditure1,100 757 754 
- Consolidated entities1,028 701 703 
- Equity-accounted joint ventures72 56 51 
Capital expenditure data for AngloGold Ashanti Year ended 31 December
(in $ millions) 2018
 2017
 2016
Capital expenditure 721
 953
 811
- Consolidated entities 652
 830
 711
- Equity accounted joint ventures 69
 123
 100


Total capital expenditure was $721$1,100 million in 20182021, compared to $953$757 million in 2017.2020. This represents a $232$343 million or 24 percent, decreaseincrease from 2017.2020. This decrease isincrease was due to decreased capital expenditure on existing operations ($258 million) partially offset by increased expenditure on growth related projectssustaining capital ($26281 million) and non-sustaining project capital ($62 million). AngloGold Ashanti embarked on a multi-year initiative at the beginning of 2020 to increase investment in Mineral Reserve development and brownfields exploration. The aim of this investment is to increase the rate of Mineral Reserve conversion, extend the reserve lives of our assets, enhance mining flexibility and further improve our knowledge of the ore bodies in the portfolio. Capital expenditure decreasedincreased at Iduapriem in Ghana by $45 million from $60 million in 2020 to $105 million in 2021, mainly due to higher pre-stripping activities and stay-in-business capital. Capital expenditure at Obuasi in Ghana was unchanged at $168 million in 2021 and 2020, mainly due to a change in scoping activities, the commissioning and ramping up of underground activities and the start of Phase 3 of the Obuasi redevelopment project. Phase 2 construction was completed at the end of December 2021. Capital expenditure at Siguiri in Guinea, increased by $8 million from $30 million in 2020 to $38 million in 2021, mainly due to increased stay-in-business capital and expenditure incurred to construct a haul road by Block 2. Capital expenditure at Geita in Tanzania, increased by $96$36 million from $87 million in 2020 to $123 million in 2021, mainly due to an increase in project capital with the start of the Nyamulilima project, an increase in non-sustaining exploration costs, partly offset by lower ore reservestay-in-business capital mainly related to Mineral Reserve development expenditure. At Sunrise Dam in Australia, capital less expenditure increased by $9 million from $53 million in 2020 to $62 million in 2021, mainly due to non-sustaining project capital expenditure incurred on the new power plantGolden Delicious open pit growth



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project. Capital expenditure at Tropicana in 2018, lessAustralia, increased by $33 million from $89 million in 2020 to $122 million in 2021, mainly due to higher deferred stripping, Mineral Reserve and other stay-in business expenditure, as well as increased non-sustaining project capital expenditure with the approval of the Havana Cutback Project in 2018.2021. At Australia other, capital expenditure increased by $1 million from nil in 2020 to $1 million in 2021, mainly due to exploration equipment expenditure. Capital expenditure decreased in South Africa by $77 million due to asset sales, the orderly closure of TauTona, saving initiatives and the strengthening of the local currency against the US dollar. Capital expenditure decreased at Kibali, in the DRC, by $46 million due to the hydro-power plant commissioned in 2017, lower deferred stripping and ore reserve development capital and the underground plant commissioned in 2017. Capital expenditure decreased at AGA Mineração in Brazil increased by $92 million from $103 million in 2020 to $195 million in 2021, mainly due to the impact of the weaker exchange rate against the US dollar, review of the business strategy with reductionhigher mine development costs and higher expenditure on TSFs. Capital expenditure at Serra Grande in investments, optimising cash flow, less spend on assetsBrazil increased by $49 million from $33 million in 2020 to maintain operations, less$82 million in 2021, mainly due to higher mine development and stripping. Capital expenditure decreased atTSF expenditures. At Cerro Vanguardia in Argentina, capital expenditure increased by $38 million from $31 million in 2020 to $69 million in 2021, mainly due to higher expenditure on TSF embankment raise and higher deferred stripping capital. At Quebradona in Colombia, capital expenditure decreased by $7 million from $40 million in 2020 to $33 million in 2021, mainly due to the impacthigher capitalisation of a 70 percent weaker exchange rate againstland for the US dollar and lower development costsgrowth project in 2020. At Gramalote in Colombia, capital expenditure increased by $10 million from $9 million in 2020 to $19 million in 2021, mainly due to reductionhigher feasibility study costs of workforce. Capitalthe growth project. At the Corporate Office in Johannesburg, capital expenditure decreased at Tropicana,increased by $9 million from $2 million in Australia, by $152020 to $11 million in 2021, mainly due to decreased deferred wasteexpenditure on new furniture and pre-strippingcomputer equipment in connection with the relocation of $27 million and other sustaining capital expenditure of $10 million partially offset by $22 million spend on the Ball Mill Infrastructure. The decrease in capital expenditure was partially offset by increased expenditure of $48 million at Obuasi, in Ghana, dueCorporate Office to lack of spending in 2017 asa new building. During 2021, there was no budget. Capitalcapital expenditure at La Colosa in Colombia or in Nevada, USA. At the Kibali gold mine in the DRC, capital expenditure increased at Siguiri,by $20 million from $52 million in Guinea, by $142020 to $72 million in 2021, mainly due to more spend on the combination plant project.higher deferred stripping and non-sustaining project capital expenditure.


Total capital expenditure was $953$757 million in 20172020, compared to $811$754 million in 2016.2019. This represents a $142$3 million or 18 percent, increase from 2016.2019. This increase iswas due to increased expenditure on sustaining capital ($9 million), which was partly offset by reduced non-sustaining project capital expenditure on existing operations ($134 million) and on growth related projects ($86 million). Capital expenditure increased at Iduapriem in Ghana by $43$44 million from $16 million in 2019 to $60 million in 2020, mainly due to higher pre-stripping activities and other sustaining capital. Capital expenditure decreased by $78 million at Obuasi in Ghana from $246 million in 2019 to $168 million in 2020, mainly due to the plantcommissioning of Phase 1 of the redevelopment project on 1 October 2020, capitalisation of pre-production gold revenue against the project and delays as a result of COVID-19. Capital expenditure increased at Siguiri in Guinea by $9 million from $21 million in 2019 to $30 million in 2020 to resolve the recovery improvement project.and throughput challenges of the newly commissioned plant. Capital expenditure increased at Geita in Tanzania by $38$12 million from $75 million in 2019 to $87 million in 2020, mainly due to establishment of underground and ore reserveincreased Mineral Reserve development partially offset by strippingexpenditure due to pit depletion.more underground activities and more exploration work done in 2020. Capital expenditure increased at Sunrise Dam in Australia by $30$10 million from $43 million in 2019 to $53 million in 2020, mainly due to continued underground ore reserve development.increased Mineral Reserve development expenditure in new mining areas, asset integrity and start of the Golden Delicious open pit growth project. Capital expenditure decreased by $17 million at Tropicana in Australia from $106 million in 2019 to $89 million in 2020, mainly due to lower deferred stripping, partly offset by higher pre-stripping capital and higher expenditure on the Boston Shaker growth project. Capital expenditure increased at Siguiri,AGA Mineração in Guinea,Brazil by $23$12 million from $91 million in 2019 to $103 million in 2020, mainly due to increased Mineral Reserve development expenditure and higher expenditure on TSFs. Capital expenditure decreased at Serra Grande in Brazil by $1 million from $34 million in 2019 to $33 million in 2020, mainly due to lower stay-in business capital. Capital expenditure decreased at Cerro Vanguardia in Argentina by $2 million from $33 million in 2019 to $31 million in 2020, mainly due to lower stay-in business capital. Capital expenditure increased by $4 million at Quebradona in Colombia from $36 million in 2019 to $40 million in 2020, mainly due to increased capitalisation of land for the combination plant, infill drillinggrowth project. Capital expenditure increased by $7 million at Gramalote in Colombia from $2 million in 2019 to $9 million in 2020, mainly due to increased feasibility study costs of the growth project. Capital expenditure increased by $2 million at the Corporate Office in Johannesburg from nil in 2019 to $2 million in 2020 mainly due to expenditure on furniture and overland land conveyor belt replacement.fittings. During 2020, there was no capital expenditure at La Colosa in Colombia or in Nevada, USA. Capital expenditure increased at the Kibali gold mine in the DRC by $18$1 million from $51 million to $52 million in 2019 to $52 million in 2020, mainly due to plant upgrade with four ultra-fine grind mills and hydro-power plant and increased stripping. Capital expenditure increased at Tropicana, in Australia, by $15 million due to an increase in deferred waste stripping.  Capital expenditure increased by $14 million at Córrego do Sítio, in Brazil, due to the raising of theMineral Reserve development.


tailings dam, an increase in stay in business spending and exploration. The strengthening of local currencies against the US dollar also resulted in an increase of capital expenditure. The increase in capital expenditure was partially offset by a decrease of $32 million in South Africa due to expenditure on Kopanang, TauTona, West gold plant, Technology Innovation Consortium (ATIC) and directly associated services projects, expensed from July 2017 and capital rationing and postponement of Mponeng Mine Life Extension.


199

Comparison of financialoperating performance on a segment basis for 2018, 20172021, 2020 and 20162019


The company produces gold as its primary product and does not have distinct divisional segments in terms of principal business activity, but manages its business on the basis of different geographic segments. Therefore, information regarding separate geographic segments is provided.


Gold income
(in millions)Year ended 31 December
202120202019
$percent$percent$percent
Geographical analysis of gold income by origin is as follows:
Africa2,644 68 2,769 58 2,203 55 
Australia890 23 989 21 851 21 
Americas1,028 26 1,211 26 1,000 25 
4,562 4,969 4,054 
Less : Associates and equity-accounted joint ventures included above(659)(17)(647)(14)(615)(15)
Continuing operations3,903 4,322 3,439 
Discontinued operations— — 408 9 554 14 
3,903 100 4,730 100 3,993 100 

(in millions)Year ended 31 December
 2018 2017 2016
 $
 percent
 $
 percent
 $
 percent
Geographical analysis of gold income by origin is as follows:           
South Africa602
 16
 1,101
 25
 1,173
 29
Continental Africa1,983
 52
 1,895
 44
 1,663
 41
Australasia780
 20
 709
 16
 646
 16
Americas1,021
 27
 1,104
 25
 1,036
 25
 4,386
   4,809
   4,518
  
Less : Associates and equity accounted joint ventures included above(581) (15) (453) (10) (433) (11)
Continuing operations3,805
   4,356
   4,085
  
Discontinued operations—
 —
 —
 —
 —
 —
 3,805
 100
 4,356
 100
 4,085
 100
Assets
(in millions)Year ended 31 December
202120202019
$percent$percent$percent
Geographical analysis of assets by origin is as follows:
South Africa— — — — 697 10 
Africa4,193 53 3,956 51 3,514 51 
Australia1,034 13 1,044 14 972 14 
Americas1,886 24 1,626 21 1,427 21 
Other, including non-gold producing subsidiaries854 10 1,046 14 253 4 
Total assets7,967 100 7,672 100 6,863 100 

Assets
(in millions)Year ended 31 December
 2018 2017 2016
 $
 percent $
 percent $
 percent
Geographical analysis of assets by origin is as follows:           
South Africa1,106
 17 1,734
 24 1,818
 26
Continental Africa3,135
 47 3,153
 44 3,090
 43
Australasia888
 13 929
 13 804
 11
Americas1,286
 19 1,258
 17 1,273
 18
Other, including non-gold producing subsidiaries228
 4 145
 2 168
 2
Total assets6,643
 100 7,219
 100 7,153
 100


At 31 December 2018, 17 percent2021 and 31 December 2020, none of AngloGold Ashanti’s totalproducing assets were located in South Africa, compared with 24ten percent at the end of 2017.2019, as a result of the sale of the company’s remaining South African producing assets and related liabilities to Harmony in September 2020. The remaining operations collectively accounted for approximately 83100 percent of AngloGold Ashanti’s total assets at 31 December 20182021 compared to 7690 percent at the end of the same period in 2017.2019.

At 31 December 2017, 24 percent of AngloGold Ashanti’s total assets were located in South Africa compared with 26 percent at the end of 2016. The remaining operations collectively accounted for approximately 76 percent of AngloGold Ashanti’s total assets at 31 December 2017 compared to 74 percent at the end of the same period in 2016.






Non-GAAP analysis


Reconciliation of all-inAll-in sustaining costs and all-in costs to cost of sales per the financial statements


During June 2013,2018, the World Gold Council (WGC), an industry body, published aan updated Guidance Note on “all-in sustaining costs” and “all-in costs” metrics, which gold mining companies can use to supplement their overall non-GAAP disclosure. The WGC worked closely with its members (including AngloGold Ashanti) to develop these non-GAAP measures which are intended to provide further transparency into the full cost associated with producing gold. It is expected that these metrics, in particular, the “all-in sustaining cost” and “all-in cost” metrics which AngloGold Ashanti provides in this annual report on Form 20-F, will be helpful to investors, governments, local communities and other stakeholders in understanding the economics of gold mining. “All-in sustaining costs” is a non-GAAP measure which is an extension of the existing “total cash cost”costs net of by-product revenue” metric and incorporates all costs related to sustaining production and in particular, recognises the sustaining capital expenditures associated with developing and maintaining gold mines. In addition, this metric includes the cost associated with Corporate Office structures that support these operations, the community and environmental rehabilitation costs attendant with responsible mining and any exploration and evaluation cost associated with sustaining current operations. “All-in sustaining costs per ounce” is arrived at by dividing the dollar value of the sum of thesethis cost metrics,metric by the ounces of gold sold. “All-in cost” includescosts” is a non-GAAP measure comprising “all-in sustaining costs” including additional costs which reflect the varying costs of producing gold over the life-cycle of a mine including costs incurred at new operations and costs related to majorgrowth projects at



200

existing operations, which are expected to increase production. “All-in costcosts per ounce” is arrived at by dividing the dollar value of the sum of thesethis cost metrics,metric by the ounces of gold sold.

Reconciliation of total cash costs to financial statements


Total cash costs arenet of by-product revenue

“Total cash costs net of by-product revenue” is calculated in accordance with the guidelines of the Gold Institute industry standard and industry practice and areis a non-GAAP measures.measure. The Gold Institute, which has been incorporated into the National Mining Association, is a non-profit international association of miners, refiners, bullion suppliers and manufacturers of gold products, which developed a uniform format for reporting total cash costs on a per ounce basis. The guidance was first adopted in 1996 and revised in November 1999.


“Total cash costs net of by-product revenue” as calculated and reported by AngloGold Ashanti include costs for all mining, processing, onsite administration costs, royalties and production taxes, as well as contributions from by-products, but exclusive of amortisation of tangible, intangible and intangibleright of use assets, rehabilitation costs and other non-cash costs, retrenchment costs, corporate administration, marketing and otherrelated costs, capital costs and exploration costs. Total“Total cash costs per ounce areounce” is calculated by dividing attributable total cash costs net of by-product revenue by attributable ounces of gold produced.


Average gold price received per ounce

“Average gold price received per ounce” is a non-GAAP measure which gives an indication of revenue earned per unit of gold sold and includes gold income and realised non-hedge derivatives in its calculation and serves as a benchmark of performance against the market spot price of gold. This metric is calculated by dividing attributable gold income (price received) by attributable ounces of gold sold.

“All-in sustaining costs, all-incosts”, “all-in sustaining costs per ounce, all-in costs, all-inounce”, “all-in costs”, “all-in costs per ounce, totalounce”, “total cash costs and totalnet of by-product revenue”, “total cash costs per ounceounce” and “average gold price received per ounce” should not be considered by investors in isolation or as alternatives to cost of sales, profit/(loss) applicable to equity shareholders, profit/(loss) before taxation, cash flows from operating activities or any other measure of financial performance presented in accordance with IFRS or as an indicator of the company’s performance. While the WGC has published guidance on how to define all-in“all-in sustaining costscosts” and all-in costs“all-in costs” and the Gold Institute has provided definitions for the calculation of total“total cash costs per ounce”, the calculation of these metrics may vary significantly among gold mining companies, and by themselves do not necessarily provide a basis for comparison with other gold mining companies.


However, AngloGold Ashanti believes that all-in“all-in sustaining costs, all-in costscosts”, “all-in costs” and total“total cash costs net of by-product revenue” in total by mine and per ounce by mine as well as “average gold price received per ounce”, are useful indicators to investors and management as they provide:


•an indication of profitability, efficiency and cash flows;
•the trend in costs as the mining operations mature over time on a consistent basis; and
•an internal benchmark of performance to allow for comparison against other mines, both within the AngloGold Ashanti group and at other gold mining companies.


Reconciliations

A reconciliation of gold income as included in the company’s audited financial statements to “average gold price received per ounce” for each of the three years in the period ended 31 December 2021 is presented on a total basis in the table below.
Average gold price received per ounce for AngloGold AshantiYear ended 31 December
202120202019
Gold income (million US dollars)3,903 4,322 3,439 
Adjusted for non-controlling interests (million US dollars)(103)(95)(77)
3,800 4,227 3,362 
Associates and joint ventures’ share of gold income including realised non-hedge derivatives (million US dollars)659 647 615 
Attributable gold income (million US dollars)4,459 4,874 3,977 
Attributable gold sold excluding pre-production ounces - oz (000)2,483 2,741 2,852 
Average gold price received per ounce ($/oz)1,796 1,778 1,394 

A reconciliation of both cost of sales and total cash costs as included in the company’s audited financial statements to all-in“all-in sustaining costs”, “all-in sustaining costs all-inper ounce”, “all-in costs”, “all-in costs and totalper ounce”, “total cash costs net of by-product revenue” and “total cash costs per ounce” for each of the three years in the period ended 31 December 20182021 is presented on a



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total and segment basis in the tables below. In addition, the company has provided below detail of the attributable ounces of gold produced and sold by mine for each of those periods.periods below.


The following table presents selected total operating data from continuing operations for the AngloGold Ashanti group for the three-year period ended 31 December 2018:2021:

Operating data for AngloGold AshantiYear ended 31 December
 2018
 2017
 2016
Total cash costs (million US dollars) – per financial statements(1)
2,505
 2,863
 2,573
All-in sustaining costs ($/oz) - Subsidiaries(1)
1,000
 1,050
 990
All-in sustaining costs ($/oz) - Joint Ventures(1)
820
 1,087
 955
All-in costs ($/oz) - Subsidiaries(1)
1,102
 1,119
 1,063
All-in costs ($/oz) - Joint Ventures(1)
846
 1,186
 1,141
Total cash costs ($/oz) - Subsidiaries(1)
787
 789
 737
Total cash costs ($/oz) - Joint Ventures(1)
680
 819
 812
(1)
All-in sustaining costs, all-in costs and total cash costs are non-GAAP measures.

Operating data for AngloGold Ashanti operations - TotalYear ended 31 December
(continuing operations)
202120202019
Cost of sales (million US dollars) - Subsidiaries2,857 2,699 2,626 
Cost of sales (million US dollars) - Joint Ventures350 340 428 
All-in sustaining costs per ounce ($/oz) - Subsidiaries(1)
1,441 1,072 1,017 
All-in sustaining costs per ounce ($/oz) - Joint Ventures(1)
856 810 767 
All-in costs per ounce ($/oz) - Subsidiaries(1)
1,695 1,240 1,218 
All-in costs per ounce ($/oz) - Joint Ventures(1)
900 824 785 
Total cash costs per ounce ($/oz) - Subsidiaries(1)
1,017 815 763 
Total cash costs per ounce ($/oz) - Joint Ventures(1)
647 629 657 
Total all-in
(1)“All-in sustaining costs all-inper ounce”, “all-in costs per ounce” and total“total cash costs

per ounce” are non-GAAP measures. For a detailed reconciliation of all-in“all-in sustaining costs all-inper ounce”, “all-in costs per ounce” and total“total cash costs see “Operations” tables.per ounce” for the company’s total operations for each of the three years in the period ended 31 December 2021, refer to the relevant “AngloGold Ashanti operations - Total” tables below.


Comparison of all-in sustaining costsoperating performance on a segment basis in 20182021 with 20172020


All-in sustaining costs per ounce (excluding stockpile impairments) in SouthCost of sales

In Africa decreased in 2018 by $67 per ounce, or five percent, to $1,178 per ounce from $1,245 per ounce in 2017. The decrease was as a result of the decrease in- Subsidiaries, cost of sales partially offset by the strengthening of the South African rand against the US dollar (from R13.30/$ in 2017 to R13.25/$ in 2018) and the 402,000-ounce decrease in gold sold (excluding pre-production ounces).

In Continental Africa - Subsidiaries, all-in sustaining costs (excluding stockpile impairments) increased by $32 per ounce,$68 million, or foursix percent, to $941 per ounce$1,300 million in 20182021 from $909 per ounce$1,232 million in 2017. This2020. The increase was mainly due to an increase in labour and contractors’ costs, commodity prices, logistics costs, consumable stores, environmental rehabilitation and other non-cash costs, amortisation of right of use assets, services and other charges, power and fuel costs and higher ore stockpile adjustments. COVID-19 presented challenges within the overall logistics sector resulting in higher cost of sales, a decrease in amortisation of tangibletransportation, warehousing and intangible assets at Geitainventory prices. Higher fuel and Siguiri and the 24,000-ounce decrease in gold sold (excluding pre-production ounces). The increase was partially offset by the decreased spending in sustaining capital expenditure at Geita.

In Continental Africa - Joint Ventures, all-in sustainingpower costs (excluding stockpile impairments) decreased by $267 per ounce, or 25 percent, to $820 per ounce in 2018 from $1,087 per ounce in 2017. This decrease was mainly due to a 97,000-ounce increase in gold sold and a decrease in sustaining capital expenditure at Kibali. This decrease was partially offset by an increase in cost of sales.

In the Americas, all-in sustaining costs (excluding stockpile impairments) decreased by $88 per ounce, or nine percent, to $855 per ounce in 2018 from $943 per ounce in 2017. This decrease was mainly due to a decrease in costs of sales partially offset by a decrease of 71,000 ounces in gold sold in 2018 (excluding pre-production ounces).

In Australia, all-in sustaining costs (excluding stockpile impairments) decreased by $24 per ounce, or two percent, to $1,038 per ounce in 2018 from $1,062 per ounce in 2017. This decrease was mainly due to an increase of 53,000 ounces in gold sold in 2018 and an increase in amortisation of tangible and intangible assets partially offset by an increase in cost of sales.


Comparison of all-in costs in 2018 with 2017

All-in costs per ounce (excluding stockpile impairments) in South Africa decreased by $10 per ounce, or one percent, to $1,268 per ounce in 2018 from $1,278 per ounce in 2017. The decrease was as a result of a decrease in all-in sustaining costs partially offset by the 402,000-ounce decrease in gold sold and an increase in care and maintenance costs.

In Continental Africa - Subsidiaries, all-in costs (excluding stockpile impairments) increased by $80 per ounce, or eight percent, to $1,099 per ounce in 2018 from $1,019 per ounce in 2017. This increase was mainly due to an increase in all-in sustaining costs and an increase in non-sustaining project capital expenditure at Siguiri and Obuasi partially offset by the 24,000-ounce increase in gold sold (excluding pre-production ounces)

In Continental Africa - Joint Ventures, all-in costs (excluding stockpile impairments) decreased by $340 per ounce, or 29 percent, to $846 per ounce in 2018 from $1,186 per ounce in 2017. This decrease was mainly due to a decrease in all-in sustaining costs, a 97,000-ounce increase in gold sold and a decrease in major project spending at Kibali as projects were completed and commissioned.


In the Americas, all-in costs (excluding stockpile impairments) decreased by $86 per ounce, or eight percent, to $932 per ounce in 2018 from $1,018 per ounce in 2017. This decrease was mainly due to a decrease in all-in sustaining costs partially offset by a 71,000-ounce decrease in gold sold (excluding pre-production ounces).

In Australia, all-in costs (excluding stockpile impairments) decreased by $10 per ounce, or one percent, to $1,070 per ounce in 2018 from $1,080 per ounce in 2017, mainly due to an increase of 53,000 ounces in gold sold partially offset by an increase in all-in sustaining costs.

Comparison of total cash costs in 2018 with 2017

The currencies of Argentina, Australia and Brazil were, on average, weaker against the US dollar during 2018 as compared to 2017 which positively impacted total cash costs for 2018. The currency of South Africa was, on average, stronger against the US dollar during 2018 as compared to 2017 which negatively impacted total cash costs for 2018.

In South Africa, total cash costs decreased by $52 per ounce, or five percent, to $1,033 per ounce in 2018 from $1,085 per ounce in 2017. The decrease was mainly due to the decrease in cost of sales due to the sale of Kopanang, Moab Khotsong and the closure of TauTona. The decrease was partially offset by a 405,000-ounce decrease in production (excluding pre-production ounces) and the strengthening of the rand against the US dollar.

At Kopanang, total cash costs increased by $468 per ounce, or 31 percent, to $2,002 per ounce in 2018 from $1,534 per ounce in 2017. The increase was mainly due to a 79,000-ounce decrease in production due to the sale of Kopanang on 28 February 2018. The increase was partially offset by a decrease in cost of sales.

At Moab Khotsong, total cash costs increased by $304 per ounce, or 39 percent, to $1,083 per ounce in 2018 from $779 per ounce in 2017. The increase was mainly due to a 255,000-ounce decrease in production due to the sale of Moab Khotsong on 28 February 2018. The increase was partially offset by a decrease in cost of sales.

At Mponeng, total cash costs decreased by $37 per ounce, or four percent, to $977 per ounce in 2018 from $1,014 per ounce in 2017. The decrease was mainly due to a 41,000-ounce increase in production partially offset by an increase in cost of sales.

At the Surface Operations, total cash costs increased by $61 per ounce, or six percent, to $1,030 per ounce in 2018 from $969 per ounce in 2017. The increase was mainly due to a 21,000-ounce decrease in production partially offset by a decrease in cost of sales.

In Continental Africa - Subsidiaries, total cash costs increased by $125 per ounce, or 18 percent, to $813 per ounce in 2018 from $688 per ounce in 2017. The increase was mainly due to the increase in the price of Brent Crude oil, which increased from $42 per barrel in 2020 to $71 per barrel in 2021, a $29 per barrel, or a 69 percent increase. Higher cost of sales and a 34,000-ounce decreasewas also due to additional volumes of ore mined at Siguiri resulting in production (excluding pre-production ounces).

Total cash costs at Geita, in Tanzania, increased by $196 per ounce, or 32 percent, to $804 per ounce in 2018 from $608 per ounce in 2017.higher operating costs. The increase was mainly due the increase in cost of sales partiallypartly offset by a 25,000-ounce increaselower amortisation of waste stripping and lower royalties paid due to lower ounces of gold sold in production (excluding pre-production ounces).

In Ghana, at Iduapriem, total cash costs decreased by $19 per ounce, or two percent, to $804 per ounce in 20182021 as compared to $823 per ounce in 2017 mainly due to a 26,000-ounce increase in production. The decrease was partially offset by an increase in cost of sales.

At Siguiri, in Guinea, total cash costs increased by $119 per ounce, or 16 percent, to $844 per ounce in 2018 from $725 per ounce in 2017 mainly due to a 81,000-ounce decrease in production partially offset by a decrease in cost of sales.

In Continental Africa - Joint Ventures, total cash costs decreased by $139 per ounce, or 17 percent, to $680 per ounce in 2018 from $819 per ounce in 2017. The decrease was mainly due to a 92,000-ounce increase in production partially offset by an increase in cost of sales.

In Mali, at Morila, total cash costs increased by $171 per ounce, or 18 percent, to $1,145 per ounce in 2018 from $974 per ounce in 2017.2020. The increase was mainly due to an increase in cost of sales partially offset by a 2,000-ounce increase in production. At Sadiola, total cash costs increased by $38 per ounce, or four percent, from $900 per ounce in 2017 to $938 per ounce in 2018. The increase was mainly due to a 4,000-ounce decrease in production partially offset by a decrease in cost of sales.

In the DRC, at Kibali, total cash costs decreased by $184 per ounce, or 23 percent, to $600 per ounce in 2018 from $784 per ounce in 2017. The decrease was mainly due to a 95,000-ounce increase in production partially offset by an increase in cost of sales.

In the Americas, total cash costs decreased by $14 per ounce, or two percent, to $624 per ounce in 2018 from $638 per ounce in 2017. The decrease was mainly due to a decrease in cost of sales. The decrease was partially offset by a 64,000-ounce decrease in production (excluding pre-production ounces)Obuasi and a decrease in amortisation of tangible assets.


In Brazil, at AngloGold Ashanti Córrego do Sítio Mineração, total cash costs increased by $52 per ounce, or eight percent, to $723 per ounce in 2018 from $671 per ounce in 2017 primarily due to a decrease in amortisation of tangible assets. The increase was partiallySiguiri, partly offset by a decrease in cost of sales at Iduapriem and a 60,000-ounce increase in production (excluding pre-production ounces). At Serra Grande, total cash costs decreased by $104 per ounce, or 14 percent, to $660 per ounce in 2018 from $764 per ounce in 2017 primarily due to a decrease inGeita. In Guinea, at Siguiri, cost of sales. The decrease was partially offsetsales increased by a 3,000-ounce decrease in production (excluding pre-production ounces).

In Argentina, at Cerro Vanguardia, total cash costs decreased by $46 per ounce,$33 million, or nine percent, to $476 per ounce$410 million in 20182021 from $522 per ounce$377 million in 2017 primarily2020. Cost of sales at Siguiri increased year-on-year mainly as a result of additional volumes of ore mined resulting in higher operating costs, increases on fuel and reagent costs, and higher royalties paid from additional volumes sold in 2021. In Ghana, at Obuasi, cost of sales increased by $130 million, or 382 percent, to $164 million in 2021 from $34 million in 2020. Cost of sales at Obuasi increased year-on-year mainly due to increased operating activities. Phase 1 of the Obuasi redevelopment project commenced commercial production from 1 October 2020. Underground mining activities were voluntarily suspended between 18 May 2021 and 15 October 2021 at the Obuasi mine, following a decrease insill pillar incident. From 15 October 2021, underground mining resumed to replenish the run-of-mine stockpile without corresponding gold production and related cost of sales. The decrease was partially offset by a 1,000-ounce decrease in productionSince the voluntary suspension of underground mining activities, care and and a decrease in amortisationmaintenance costs of tangible assets.

In Australia, total cash costs increased by $19 per ounce, or three percent, to $762 per ounce in 2018 from $743 per ounce in 2017 primarily due to an increase in cost of sales. The increase was partially offset by a 66,000-ounce increase in production.

At Sunrise Dam, total cash costs increased by $1 per ounce, or 0.1 percent, to $920 per ounce in 2018 compared to $919 per ounce in 2017, mainly due to an increase in cost of sales. The increase was partially offset by a 51,000-ounce increase in production.

At Tropicana, total cash costs increased by $30 per ounce, or five percent, to $594 per ounce in 2018 compared to $564 per ounce in 2017, mainly due to an increase in cost of sales. The increase was partially offset by a 14,000-ounce increase in production.

Overall the subsidiaries’ total cash costs decreased by $2 per ounce, or 0.3 percent, to $787 per ounce in 2018 compared to $789 per ounce in 2017. The decrease was mainly due$45 million were incurred at Obuasi during 2021 which led to a decrease in cost of sales during that period. In Tanzania, at Geita, cost of sales decreased by $54 million, or 10 percent, to $488 million in 2021 from $542 million in 2020. Cost of sales at Geita decreased mainly due to lower royalties paid and improved efficiencies in that more open pit tonnes were mined in 2021 at a lower rate per tonne than in 2020. This decrease was partly offset by lower grades as well as the depletion of ore stockpiles in 2021 compared to an increase in ore stockpiles during 2020. In Ghana, at Iduapriem, cost of sales decreased by $42 million, or 15 percent, to $238 million in 2021 from $280 million in 2020. Cost of sales at Iduapriem decreased mainly due to a significant amount of waste stripping capitalised at Teberebie Cut 2 in 2021 compared to 2020, together with a decrease in royalties paid due to lower ounces of gold sold and an inventory change due to ore stockpile movements.

In Africa - Joint Ventures, cost of sales increased by $10 million, or three percent, to $350 million in 2021 from $340 million in 2020. The increase was mainly due to lower open-pit recovered grades, unfavourable movements in stockpiles, higher royalties paid due to an increase in the average gold price received, and additional reagent consumption costs, as compared to 2020. The Kibali mine in the DRC was the only operating asset in Africa - Joint Ventures in 2021.

In the Americas, cost of sales increased by $58 million, or eight percent, to $822 million in 2021 from $764 million in 2020. The increase was mainly due to an increase in labour and contractors’ costs, commodity prices, logistics costs, consumable stores, amortisation of right of use assets, services and other charges, power and fuel cost, write down of inventory and environmental rehabilitation and other non-cash costs. The higher labour and contractors’ costs were mainly due to COVID-19 related cost increases resulting from challenges with travel restrictions and shortages of critical skills. Higher commodity costs were mainly due to an increase in the prices of steel, support and construction materials, lime and other reagents. COVID-19 presented



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challenges within the overall logistics sector resulting in higher cost of transportation, warehousing and inventory prices. The higher fuel costs were mainly due to the increase in the price of Brent Crude oil, which increased from $42 per barrel in 2020 to $71 per barrel in 2021, a $29 per barrel, or a 69 percent increase. The increase was partly offset by lower royalties paid due to lower ounces of gold sold in 2021 as compared to 2020, lower amortisation of tangible assets due to lower ounces of gold produced in 2021 as compared to 2020 as well as the weakening of the local currencies against the US dollar. In Brazil, at AGA Mineração, cost of sales increased by $44 million, or 11 percent, to $435 million in 2021 from $391 million in 2020. Cost of sales increased at AGA Mineração mainly due to higher commodity prices (oil, iron ore and construction materials) and higher costs of services and labour. This increase was partially offset by lower royalties paid due to lower ounces of gold sold. At Serra Grande, cost of sales increased by $21 million, or 21 percent, to $123 million in 2021 from $102 million in 2020. Cost of sales increased at Serra Grande mainly due to higher commodity prices and higher cost of services and labour as well as inefficiencies primarily caused by higher absenteeism due to COVID-19 and various production challenges encountered during 2021. These increases in Brazil were partly offset by a 436,000-ouncefive percent weakening of the Brazilian real against the US dollar. In Argentina, at Cerro Vanguardia, cost of sales decreased by $8 million, or three percent, to $261 million in 2021 from $269 million in 2020. Cost of sales decreased at Cerro Vanguardia mainly due to a 35 percent weakening of the Argentinean peso against the US dollar, and favourable inventory change movements. The decrease in production.

Comparisoncost of all-in sustainingsales was partly offset by higher year-on-year salary increases, additional costs relating to COVID-19 tests and other related medical costs in 2017line with 2016protocols and higher materials consumption (such as fuel, explosives and spare parts) as a result of higher tonnes mined. In the Americas other segment, cost of sales increased by $1 million, or 50 percent, to $3 million in 2021 from $2 million in 2020.


In Australia, cost of sales increased by $35 million, or five percent, to $740 million in 2021 from $705 million in 2020. The increase was mainly due to an increase in labour and contractors’ costs, commodity prices, logistics costs, consumable stores, amortisation of right of use assets, services and other charges, power and fuel costs, ore stockpile adjustments and the strengthening of the Australian dollar against the US dollar by eight percent. The higher labour and contractors’ costs were mainly due to COVID-19 related cost increases resulting from challenges with travel restrictions and shortages of critical skills. Higher commodity costs were mainly due to an increase in the prices of steel, support and construction materials, lime and other reagents. COVID-19 presented challenges within the overall logistics sector resulting in higher cost of transportation, warehousing and inventory prices. The higher fuel costs were mainly due to the increase in the price of Brent Crude oil, which increased from $42 per barrel in 2020 to $71 per barrel in 2021, a $29 per barrel, or a 69 percent increase. This increase was partly offset by a decrease in environmental rehabilitation and other non-cash costs, amortisation of waste stripping and royalties paid. At Sunrise Dam, cost of sales increased by $22 million, or six percent, to $364 million in 2021 from $342 million in 2020. Cost of sales at Sunrise Dam increased year-on-year primarily due to higher mining costs (mainly higher cost of labour due to critical skill shortages), partially offset by lower royalties paid. At Tropicana, cost of sales increased by $8 million, or two percent, to $346 million in 2021 from $338 million in 2020. Cost of sales at Tropicana increased mainly due to higher mining costs (mainly higher cost of labour due to critical skill shortages), inventory movements and the impact of higher underground and open pit mining costs.

Overall the subsidiaries’ cost of sales increased from $2,699 million in 2020 to $2,857 million in 2021, which represents a $158 million, or six percent increase. The increase was primarily due to an increase in cash operating costs by $279 million, or 15 percent, to $2,160 million in 2021 from $1,881 million in 2020, an increase in environmental rehabilitation and other non-cash costs by $6 million, or 19 percent, to $38 million in 2021 from $32 million in 2020, an increase in amortisation of right of use assets by $16 million, or 34 percent, to $63 million in 2021 from $47 million in 2020. These increases were partly offset by a decrease in royalties paid by $19 million, or 10 percent, to $162 million in 2021 from $181 million in 2020, a decrease in amortisation of tangible assets of $110 million, or 21 percent, to $411 million in 2021 from $521 million in 2020 and an inventory change of $15 million, or 71 percent, to $6 million in 2021 from $21 million in 2020. The increase in cash operating costs was due to higher labour and contractors’ costs, commodity prices, logistics costs, consumable stores, COVID-19 pandemic related expenditure, services and other charges as well as fuel and power costs. The increase in environmental rehabilitation and other non-cash costs arose mainly from the changes to restoration provision cash flows, cost increases and discount rates in 2021 compared to 2020. The increase in amortisation of right of use assets arose from an increase in number of right of use assets in 2021 as compared to 2020. The decrease in royalties paid arose from a decrease in ounces of gold sold in 2021 as compared to 2020. The decrease in amortisation of tangible assets was mainly due to lower amortisation of waste stripping and lower gold production in 2021 as compared to 2020.

All-in sustaining costs per ounce (excluding stockpile impairments) in South Africa increased in 2017 by $164 per ounce, or 15 percent, to $1,245 per ounce from $1,081 per ounce in 2016. The increase was as a result of the strengthening of the rand against the US dollar, increase in cost of sales and the 61,000-ounce decrease in gold sold (excluding pre-production ounces).


In Continental Africa - Subsidiaries, all-in sustaining costs (excluding stockpile impairments) increased by $23$289 per ounce, or three30 percent, to $909$1,264 per ounce in 20172021 from $886$975 per ounce in 2016.2020. This increase was mainly due to an increase in cost of sales, an increase in sustaining capital expenditure and a decrease in ounces of gold sold. For a discussion of the increase in cost of sales in Africa - Subsidiaries during 2021, see “Item 5A: Operating Results—Comparison of operating performance on a segment basis in 2021 with 2020—Cost of sales”. Sustaining capital expenditure in Africa - Subsidiaries increased as the region continued to implement its re-investment programme. At Iduapriem, sustaining capital expenditure increased mainly due to higher pre-stripping activities and stay-in-business capital. At Obuasi, the Obuasi redevelopment project led to an increase in sustaining capital expenditure as Phase 2 of the project was completed at the end of December 2021. At Siguiri, sustaining capital expenditure increased mainly due to increased spending at Iduapriem and Geita underground development. The increase in all-in sustaining costs was partially offset by a 149,000-ounce increase in goldstay-in-business capital. Gold sold (excluding pre-production ounces). in Africa - Subsidiaries decreased by 95,000 ounces, or eight percent, from 1.155 million ounces in 2020 to 1.060 million ounces in 2021. The decrease was mainly due to lower production from Iduapriem due to lower grades from the depletion of ore in Cut 1 and delayed waste stripping at




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Cut 2 of the Teberebie pit as well as the impact of a drawdown on stockpiles, from Obuasi due to underground mining activities being voluntarily suspended between 18 May 2021 and 15 October 2021 following a sill pillar incident (from 15 October 2021, underground mining resumed to replenish the run-of-mine stockpile without corresponding gold production) and from Geita due to mining lower grades and the impact of a drawdown on stockpiles as significant reinvestments progressed across the Geita lease during 2021. The lower production was partly offset by higher production at Siguiri due to an improvement in recovered grade which was attributable to improved plant recoveries as a result of the carbon-in-leach (“CIL”) conversion done at the end of 2020 and the commencement of processing Block 2 material in the second half of 2021.

In Continental Africa - Joint Ventures, all-in sustaining costs (excluding stockpile impairments) increased by $132$46 per ounce, or 14six percent, to $1,087$856 per ounce in 20172021 from $955$810 per ounce in 2016.2020. This increase was mainly due to an increase in cost of sales and an increase in sustaining capital expenditure at Kibali, partly offset by higher ounces of gold sold. For a discussion of the increase in cost of sales in Africa - Joint Ventures during 2021, see “Item 5A: Operating Results—Comparison of operating performance on a segment basis in 2021 with 2020—Cost of sales”. Sustaining capital expenditure in Africa - Joint Ventures increased mainly due to higher deferred stripping. The increase was partly offset by an increase in gold sold in Africa - Joint Ventures by 2,000 ounces, or one percent, from 365,000 ounces in 2020 to 367,000 ounces in 2021. The Kibali mine delivered a good overall performance from the metallurgical plant, with increased tonnage during 2021, driven by higher open pit tonnes mined as compared to 2020.

In the Americas, all-in sustaining costs increased by $584 per ounce, or 58 percent, to $1,587 per ounce in 2021 from $1,003 per ounce in 2020. This increase was mainly due to an increase in cost of sales, an increase in sustaining capital expenditure and lower ounces of gold sold, partly offset by the weakening of the local currencies against the US dollar. For a discussion of the increase in cost of sales in the Americas during 2021, see “Item 5A: Operating Results—Comparison of operating performance on a segment basis in 2021 with 2020—Cost of sales”. Sustaining capital expenditure in the Americas increased as the region continued to implement its re-investment programme and the transition of the TSFs in Brazil to dry-stacked structures to comply with new legal requirements. At AGA Mineração and Serra Grande in Brazil, sustaining capital expenditure increased mainly due to higher mine development and TSF expenditures. At Cerro Vanguardia in Argentina, sustaining capital expenditure increased spendingmainly due to higher expenditure on Kibali as it moves underground.TSFs and higher deferred stripping capital. Gold sold in the Americas decreased by 103,000 ounces, or 16 percent, from 664,000 ounces in 2020 to 561,000 ounces in 2021. At AGA Mineração, the Córrego do Sítio complex was impacted by challenges in the crushing and milling circuit and lower tonnes of ore treated. Production was also adversely impacted by a 7-day strike by mine workers in September 2021. The Cuiabá complex saw an increase in all-in sustaining coststonnes of ore treated year-on-year, which was partially offset by a 15,000-ounce increaselower grades. At Serra Grande, production decreased year-on-year mainly due to lower tonnage resulting from various delays in accessing mine stopes, as well as lower feed grades, the negative impact of COVID-19 on mining operations and operational impacts of the fatality that occurred in February 2021. The production performance was further impacted by stabilisation challenges during the commissioning of the new filter process as work is ongoing to complete the conversion of the TSFs to dry-stacking operations to comply with new legal requirements. At Cerro Vanguardia, production was down year-on-year mainly due to the effect of lower grades as per the mine plan for 2021 as well as COVID-19 related limitations and restrictions that affect the mine’s ability to operate at full capacity. The decrease in gold production at Cerro Vanguardia was partially offset by higher by-product revenue derived from higher ounces of silver sold.


In the Americas,Australia, all-in sustaining costs (excluding stockpile impairments) increased by $68$275 per ounce, or eight22 percent, to $943$1,500 per ounce in 20172021 from $875$1,225 per ounce in 2016.2020. This increase was mainly due to an increase in costscost of sales, lower ounces of gold sold and the strengthening of the local currency against the US dollar, partly offset by a decrease in sustaining capital expenditure. For a discussion of the increase in cost of sales in Australia during 2021, see “Item 5A: Operating Results—Comparison of operating performance on a segment basis in 2021 with 2020—Cost of sales”. Sustaining capital expenditure increased in Australia mainly at Tropicana due to higher deferred stripping, Mineral Reserve and other stay-in business expenditure. Gold sold in Australia decreased by 62,000 ounces, or 11 percent, from 557,000 ounces in 2020 to 495,000 ounces in 2021. At Sunrise Dam, production was impacted by lower head grade and a decrease in metallurgical recovery, which was partially offset by higher tonnes mined in the underground mine. Mine-to-mill grade reconciliations stabilised during the second half of 2021 and access to higher-grade underground ore was achieved at the end of 2021 in the newly accessed Frankie orebody. At Tropicana, production was lower year-on-year due to a lower mill feed grade as stockpile drawdowns increased while mining focused on waste removal in the Havana Stage 2 Cutback. Production at Tropicana has also been adversely impacted by the wall failure in the Boston Shaker open pit in June 2021, which delayed higher grade ore delivery. Tropicana has also been affected by labour market shortages which have had an increase of 47,000 ounces in gold sold in 2017 (excluding pre-production ounces).adverse impact on open pit and underground material movement.


All-in costs per ounce

In Australia,Africa - Subsidiaries, all-in sustaining costs (excluding stockpile impairments) decreasedincreased by $5$367 per ounce, or 0.532 percent, to $1,062$1,516 per ounce in 20172021 from $1,067$1,149 per ounce in 2016.2020. This decreaseincrease was mainly due to an increase in all-in sustaining costs, higher care and maintenance expenditure and higher non-sustaining project capital expenditure. At Obuasi, underground mining activities were voluntarily suspended between 18 May 2021 and 15 October 2021, following a sill pillar incident. From 15 October 2021, underground mining resumed to replenish the run-of-mine stockpile without corresponding gold production. Since the voluntary suspension of 43,000underground mining activities, care and maintenance costs of $45 million were incurred at Obuasi during 2021. Non-sustaining capital expenditure at Geita in Tanzania increased mainly due to an increase in project capital with the start of the Nyamulilima project. For a discussion of the decrease in ounces inof gold sold in 2017 partially offset by an increase in sustaining capital expenditure.Africa - Subsidiaries during 2021, see “Item 5A:





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Operating Results—Comparison of operating performance on a segment basis in 2021 with 2020—All-in sustaining costs per ounce”.

In Africa - Joint Ventures, all-in costs in 2017 with 2016

All-in costs per ounce (excluding stockpile impairments) in South Africa increased by $156$76 per ounce, or 14nine percent, to $1,278$900 per ounce in 20172021 from $1,122$824 per ounce in 2016. The2020. This increase was as a result of the strengthening of the rand against the US dollar,mainly due to an increase in all-in sustaining costs and higher non-sustaining project capital expenditure at Kibali. For a discussion of the 61,000-ounce decreaseincrease in ounces of gold sold.sold in Africa - Joint Ventures during 2021, see “Item 5A: Operating Results—Comparison of operating performance on a segment basis in 2021 with 2020—All-in sustaining costs per ounce”.


In Continental Africa - Subsidiaries,the Americas, all-in costs (excluding stockpile impairments) increased by $30$679 per ounce, or three58 percent, to $1,019$1,858 per ounce in 20172021 from $989$1,179 per ounce in 2016.2020. This increase was mainly due to an increase in all-in sustaining costs and an increase in non-sustaining project capitalexploration and study cost expenditure due to combination plant, infill drillingat the Colombian and overland land conveyor belt replacement at Siguiri. The increaseNevada growth projects. For a discussion of the decrease in ounces of gold sold in the Americas during 2021, see “Item 5A: Operating Results—Comparison of operating performance on a segment basis in 2021 with 2020—All-in sustaining costs per ounce”.

In Australia, all-in costs was partially offset by a 149,000-ounce increase in gold sold (excluding pre-production ounces).

In Continental Africa - Joint Ventures, all-in costs (excluding stockpile impairments) increased by $45$369 per ounce, or four27 percent, to $1,186$1,725 per ounce in 20172021 from $1,141$1,356 per ounce in 2016. This increase was mainly due to a $60 million increase in all-in

sustaining costs. This increase was partially offset by a 15,000-ounce increase in gold sold and a decrease in major project spending at Kibali as projects were completed and commissioned.

In the Americas, all-in costs (excluding stockpile impairments) increased by $59 per ounce, or six percent, to $1,018 per ounce in 2017 from $959 per ounce in 2016.2020. This increase was mainly due to an increase in all-in sustaining costs, partially offset byhigher non-sustaining project capital expenditure at Sunrise Dam on the Golden Delicious open pit growth project and at Tropicana on the Havana cutback project, and higher non-sustaining exploration and study costs relating to growth deposits at Sunrise Dam and Tropicana. For a 47,000-ounce increasediscussion of the decrease in ounces of gold sold (excluding pre-production ounces).

Inin Australia all-in costs (excluding stockpile impairments) decreased by $1 per ounce, or 0.1 percent, to $1,080 per ounce in 2017 from $1,081 per ounce in 2016, mainly due to an increase of 43,000 ounces in gold sold partially offset by an increase in all-in sustaining costs.

during 2021, see “Item 5A: Operating Results—Comparison of totaloperating performance on a segment basis in 2021 with 2020—All-in sustaining costs per ounce”.

Total cash costs in 2017 with 2016per ounce


The currencies of South Africa, AustraliaArgentina and Brazil were, on average, weaker against the US dollar during 2021 as compared to 2020, which positively impacted total cash costs per ounce for 2021. This positive impact was partly offset by the currency of Australia being, on average, stronger against the US dollar during 20172021 as compared to 2016 which negatively impacted2020.

In Africa - Subsidiaries, total cash costs for 2017.per ounce increased by $194 per ounce, or 24 percent, to $991 per ounce in 2021 from $797 per ounce in 2020. The currencyincrease was mainly due to a 89,000 ounce decrease in production (excluding pre-production ounces) and an increase in total cash costs.

In Tanzania, at Geita, total cash costs per ounce increased by $181 per ounce, or 28 percent, to $822 per ounce in 2021 from $641 per ounce in 2020. Total cash costs per ounce increased year-on-year mainly due to lower grades, together with the depletion of ore stockpiles in 2021 compared to an increase in ore stockpiles during 2020. This increase was partly offset by lower royalties paid and improved efficiencies in that more open pit tonnes were mined in 2021 at a lower rate per tonne than in 2020.

In Ghana, at Iduapriem, total cash costs per ounce increased by $350 per ounce, or 48 percent, to $1,081 per ounce in 2021 from $731 per ounce in 2020. Total cash costs per ounce increased year-on-year mainly due to lower production and ore stockpile movements. This increase was partly offset by a significant amount of waste stripping capitalised at Teberebie Cut 2 in 2021 compared to 2020, together with a decrease in royalties paid due to lower volumes sold.

At Obuasi, total cash costs per ounce decreased by $33 per ounce, or three percent, to $1,112 per ounce in 2021 from $1,145 per ounce in 2020. Total cash costs per ounce decreased mainly due to an increase in ounces gold produced.

In Guinea, at Siguiri, total cash costs per ounce decreased by $93 per ounce, or seven percent, to $1,200 per ounce in 2021 from $1,293 per ounce in 2020. Total cash costs per ounce decreased year-on-year mainly as a result of higher production, partially offset by higher operating costs, increases on fuel and reagent costs, and higher royalties paid from additional volumes sold in 2021.

In Africa - Joint Ventures, total cash costs per ounce increased by $18 per ounce, or three percent, to $647 per ounce in 2021 from $629 per ounce in 2020. The increase was mainly due to an increase in total cash costs, partly offset by a 1,000 ounce increase in production.Total cash costs per ounce increased year-on-year mainly as a result of lower open-pit recovered grades, unfavourable movements in stockpiles, higher royalties paid due to an increase in the average gold price received, and additional reagent consumption, as compared to 2020. The Kibali mine in the DRC was the only operating asset in Africa - Joint Ventures in 2021.

In the Americas, total cash costs per ounce increased by $200 per ounce, or 28 percent, to $921 per ounce in 2021 from $721 per ounce in 2020. The increase was mainly due to a 90,000 ounce decrease in production and an increase in total cash costs.

In Brazil, at AGA Mineração, total cash costs per ounce increased by $111 per ounce, or 15 percent, to $858 per ounce in 2021 from $747 per ounce in 2020. Total cash costs per ounce increased year-on-year mainly due to lower production and



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higher commodity prices (oil, iron ore and construction materials) and higher costs of services and labour. This increase was partially offset by higher sulphuric acid by-product revenue and lower royalties paid due to lower volumes sold.

At Serra Grande, total cash costs per ounce increased by $527 per ounce, or 79 percent, to $1,192 per ounce in 2021 from $665 per ounce in 2020. Total cash costs per ounce increased year-on-year mainly due to lower production, higher commodity prices (oil, iron ore and construction materials) and higher cost of services and labour as well as inefficiencies primarily caused by higher absenteeism due to COVID-19 and various production challenges encountered during 2021.

In Argentina, at Cerro Vanguardia, total cash costs per ounce increased by $195 per ounce, or 28 percent, to $894 per ounce in 2021 from $699 per ounce in 2020. Total cash costs per ounce increased year-on-year mainly due to salary increases, additional costs relating to COVID-19 tests and other related medical costs in line with protocols, higher commodity prices and higher materials consumption (such as fuel, explosives and spare parts) as a result of higher tonnes mined. The increase was partially offset by the weakening of the Argentinean peso against the US dollar and higher by-product revenue derived from higher ounces of silver sold.

In Australia, total cash costs per ounce increased by $228 per ounce, or 24 percent, to $1,196 per ounce in 2021 from $968 per ounce in 2020, primarily due to a 60,000 ounce decrease in production and an increase in total cash costs.

At Sunrise Dam, total cash costs per ounce increased by $252 per ounce, or 24 percent, to $1,321 per ounce in 2021 from $1,069 per ounce in 2020. Total cash costs per ounce increased year-on-year primarily due to lower production and higher mining costs (mainly higher cost of labour due to critical skill shortages), partially offset by lower royalties paid.

At Tropicana, total cash costs per ounce increased by $180 per ounce, or 22 percent, to $987 per ounce in 2021 compared to $807 per ounce in 2020. Total cash costs per ounce increased year-on-year mainly due to lower grades, inventory movements and the impact of higher underground and open pit mining costs.

Overall the subsidiaries’ total cash costs per ounce increased by $202, or 25 percent, to $1,017 per ounce in 2021 compared to $815 per ounce in 2020. The increase was mainly due to an increase in total cash costs and a 238,000-ounce decrease in production.

Comparison of operating performance on a segment basis in 2020 with 2019

Cost of sales

In Africa - Subsidiaries, cost of sales increased by $59 million, or five percent, to $1,232 million in 2020 from $1,173 million in 2019. The increase was mainly due to an increase in labour and contractors’ costs, consumable stores, COVID-19 pandemic related expenditure, royalties paid, amortisation, and services and other charges, partly offset by lower fuel costs and ore stockpile adjustments. In Guinea, at Siguiri, cost of sales increased by $62 million, or 20 percent, to $377 million in 2020 from $315 million in 2019. In Ghana, at Obuasi, the Obuasi redevelopment project was commissioned during 2020 incurring cost of sales of $34 million in 2020, from $nil in 2019. In Tanzania, at Geita, cost of sales decreased by $29 million, or five percent, to $542 million in 2019 from $571 million in 2019. In Ghana, at Iduapriem, cost of sales decreased by $8 million, or three percent, to $280 million in 2020 from $288 million in 2019.

In Africa - Joint Ventures, cost of sales decreased by $88 million, or 21 percent, to $340 million in 2020 from $428 million in 2019. The decrease was mainly due to the Sadiola and Morila operations reaching the end of their operating lives and the incurrence of $90 million cost of sales during 2019 which was not repeated in 2020. On 10 November 2020, AngloGold Ashanti together with its joint venture partner Barrick completed the sale of the Morila gold mine in Mali to Firefinch Limited. On 30 December 2020, AngloGold Ashanti together with its joint venture partner IAMGOLD completed the sale of the Sadiola gold mine in Mali to Allied Gold. In the DRC, at Kibali, cost of sales increased by $2 million, or 0.5 percent, to $340 million in 2020 from $338 million in 2019.

In the Americas, cost of sales decreased by $58 million, or seven percent, to $764 million in 2020 from $822 million in 2019. The decrease was mainly due to the weakening of the local currencies against the US dollar, decrease in environmental rehabilitation and other non-cash costs and lower fuel costs, partly offset by increases in contractors’ costs and COVID-19 pandemic related expenditure. The Argentinean peso weakened by 46 percent and the Brazilian real weakened by 31 percent, against the US dollar. In Brazil, at AGA Mineração, cost of sales decreased by $26 million, or six percent, to $391 million in 2020 from $417 million in 2019. At Serra Grande, cost of sales decreased by $28 million, or 22 percent, to $102 million in 2020 from $130 million in 2019. In Argentina, at Cerro Vanguardia, cost of sales decreased by $5 million, or two percent, to $269 million in 2020 from $274 million in 2019. In the Americas other segment, cost of sales increased by $1 million, or 100 percent, to $2 million in 2020 from $1 million in 2019.

In Australia, cost of sales increased by $73 million, or 12 percent, to $705 million in 2020 from $632 million in 2019. The increase was mainly due to an increase in labour and contractors’ costs, consumable stores, royalties paid, COVID-19 pandemic related expenditure, services and other charges, and ore stockpile adjustments, partly offset by lower fuel costs, amortisation and the weakening of the Australian dollar against the US dollar. At Sunrise Dam, cost of sales increased by



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$24 million, or eight percent, to $342 million in 2020 from $318 million in 2019. At Tropicana, cost of sales increased by $41 million, or 14 percent, to $338 million in 2020 from $297 million in 2019.

Overall the subsidiaries’ cost of sales increased from $2,626 million in 2019 to $2,699 million in 2020, which represents a $73 million, or three percent increase. The increase was primarily due to an increase in cash operating costs by $50 million, or three percent, to $1,881 million in 2020 from $1,831 million in 2019 and an increase in royalties paid by $44 million, or 32 percent, to $181 million in 2020 from $137 million in 2019, partly offset by a decrease in environmental rehabilitation and other non-cash costs by $21 million, or 40 percent, to $32 million in 2020 from $53 million in 2019. The increase in cash operating costs was due to higher labour and contractors’ costs, consumable stores, COVID-19 pandemic related expenditure, services and other charges, partly offset by lower fuel and power costs. The decrease in environmental rehabilitation and other non-cash costs arose from the changes to restoration provision cash flows and discount rates compared to 2019.

All-in sustaining costs per ounce

In Africa - Subsidiaries, all-in sustaining costs increased by $28 per ounce, or three percent, to $975 per ounce in 2020 from $947 per ounce in 2019. This increase was mainly due to an increase in cost of sales at Siguiri due to the increase in hard rock processing capability which resulted in a higher plant throughput during 2020. The higher plant throughput has been partly offset by lower than planned recovery rate from high levels of carbon in the ore affecting the capacity to recover gold. This led to higher processing costs year-on-year as a result of higher reagent consumption. The increase was partly offset by lower cost of sales at Geita driven by a build-up of ore stockpiles and lower mining costs, boosted by the move to owner mining. During 2020, the Obuasi redevelopment project was commissioned with higher level of sales as the project continued to ramp-up. Capital expenditure increased at Iduapriem due to higher pre-stripping activities and stay-in-business capital, at Siguiri to resolve the current recovery and throughput challenges of the newly commissioned plant, at Geita due to increased Mineral Reserve development expenditure as a result of more underground activities and more exploration work done in 2020. The higher cost of sales and capital expenditure was partly offset by an increase in gold sold (excluding pre-production ounces) of 59,000 ounces, or five percent, from 1,096,000 ounces in 2019 to 1,155,000 ounces in 2020, mainly due to the transition to predominantly underground operations which resulted in increased tonnes treated at Geita and the commissioning of the redevelopment project at Obuasi.

In Africa - Joint Ventures, all-in sustaining costs increased by $43 per ounce, or six percent, to $810 per ounce in 2020 from $767 per ounce in 2019. This increase was mainly due to an increase in cost of sales, lower amortisation and an increase in sustaining capital expenditure at Kibali as well as a decrease in gold sold by 77,000 ounces, or 17 percent, from 442,000 ounces in 2019 to 365,000 ounces in 2020. During 2020, the Sadiola and Morila operations reached the end of their operating lives and recorded no cost of sales and no gold sales. On 10 November 2020, AngloGold Ashanti together with its joint venture partner Barrick completed the sale of the Morila gold mine in Mali to Firefinch Limited. On 30 December 2020, AngloGold Ashanti together with its joint venture partner IAMGOLD completed the sale of the Sadiola gold mine in Mali to Allied Gold.

In the Americas, all-in sustaining costs decreased by $29 per ounce, or three percent, to $1,003 per ounce in 2020 from $1,032 per ounce in 2019. This decrease was mainly due to the weakening of the local currencies against the US dollar, decrease in environmental rehabilitation and other non-cash and lower fuel costs, partly offset by an increase in contractors’ costs, COVID-19 pandemic related expenditure, increased capital expenditure at AGA Mineração mainly due to increased Mineral Reserve development expenditure and expenditure on TSFs. Gold sold decreased by 36,000 ounces in 2020, as compared to 2019, mainly due to lower ounces of gold sold at Cerro Vanguardia and Serra Grande.

In Australia, all-in sustaining costs increased by $235 per ounce, or 24 percent, to $1,225 per ounce in 2020 from $990 per ounce in 2019. This increase was mainly due to an increase in cost of sales at Sunrise Dam and Tropicana, partly offset by lower sustaining capital expenditure at Tropicana. Gold sold decreased by 57,000 ounces in 2020, as compared to 2019, mainly due to lower gold sales at Tropicana.

All-in costs per ounce

In Africa - Subsidiaries, all-in costs decreased by $88 per ounce, or seven percent, to $1,149 per ounce in 2020 from $1,237 per ounce in 2019. This decrease was mainly due to lower non-sustaining capital expenditure at Obuasi and revenue from pre-production ounces of gold sold being offset against project capital expenditure, and the commissioning of the Obuasi redevelopment project during 2020, partly offset by an increase in all-in sustaining costs at Siguiri. Gold sold increased by 59,000 ounces, in 2020, as compared to 2019, mainly due to the transition to predominantly underground operations which resulted in increased tonnes treated at Geita and commissioning of the redevelopment project at Obuasi.

In Africa - Joint Ventures, all-in costs increased by $39 per ounce, or five percent, to $824 per ounce in 2020 from $785 per ounce in 2019. This increase was mainly due to an increase in all-in sustaining costs and a decrease in gold sold of 77,000 ounces, or 17 percent, from 442,000 ounces in 2019 to 365,000 ounces in 2020.

In the Americas, all-in costs decreased by $4 per ounce to $1,179 per ounce in 2020 from $1,183 per ounce in 2019. This decrease was mainly due to a decrease in all-in sustaining costs and a decrease in corporate and social responsibility costs



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not related to current operations, partly offset by an increase in non-sustaining capital expenditure at the Colombia projects. Gold sold decreased by 36,000 ounces in 2020, as compared to 2019, mainly due to lower ounces of gold sold at Cerro Vanguardia and Serra Grande.

In Australia, all-in costs increased by $284 per ounce, or 26 percent, to $1,356 per ounce in 2020 from $1,072 per ounce in 2019. This increase was mainly due to an increase in all-in sustaining costs and non-sustaining exploration and study costs relating to growth deposits at Sunrise Dam. Gold sold decreased by 57,000 ounces, in 2020, as compared to 2019, mainly due to lower gold sales at Tropicana.

Total cash costs per ounce

The currencies of Argentina, was,Australia and Brazil were, on average, weaker against the US dollar during 20172020 as compared to 20162019, which positively impacted total cash costs for 2017.

In South Africa, total cash costs increased by $189 per ounce or 21 percent, to $1,085 per ounce in 2017 from $896 per ounce in 2016. The increase was mainly due to a 65,000-ounce decrease in production (excluding pre-production ounces), an increase in salaries and wages costs, consumables store costs, fuel costs, service related costs, the strengthening of the rand against the US dollar and expensed capital expenditure on certain operations as they underwent orderly closure.for 2020.

At Kopanang, total cash costs increased by $210 per ounce, or 16 percent, to $1,534 per ounce in 2017 from $1,324 per ounce in 2016. The increase was mainly due to the increase in salaries and wages costs, consumables store costs, fuel costs and service related costs, the strengthening of the rand against the US dollar, lower uranium sales and expensed capital. Subsequent to the announcement made 28 June 2017 to restructure its South African operations by placing certain mines into care and maintenance, to be followed by orderly closure, on 19 October 2017, the company announced the sale of Kopanang Mine and related infrastructure, subject to conditions precedent. The Section 189 process continued at Kopanang together with the pending disposal of the mine.

At TauTona total cash costs increased by $896 per ounce, or 78 percent, to $2,044 per ounce in 2017 from $1,148 per ounce in 2016. The increase was mainly due to 55,000-ounce decrease in production and the strengthening of the rand against the US dollar. A decision was made to stop operations at TauTona and final blast took place on 15 September 2017.

At Moab Khotsong, total cash costs increased by $50 per ounce, or seven percent, to $779 per ounce in 2017 from $729 per ounce in 2016. The increase was mainly due to the increase in salaries and wages costs and fuel costs and the strengthening of the rand against the US dollar. The increase was partially offset by a 14,000-ounce increase in production.

At Mponeng, total cash costs increased by $235 per ounce, or 30 percent, to $1,014 per ounce in 2017 from $779 per ounce in 2016. The increase was mainly due to a 30,000-ounce decrease in production, the increase in salaries and wages costs, consumables store costs, fuel costs and service related costs and the strengthening of the rand against the US dollar.

At the Surface Operations, total cash costs increased by $70 per ounce, or eight percent, to $969 per ounce in 2017 from $899 per ounce in 2016. The increase was mainly due to the increase in salaries and wages costs, consumables store costs, fuel costs and service related costs and the strengthening of the rand against the US dollar. The increase was partially offset by a 6,000-ounce increase in production.


In Continental Africa - Subsidiaries, total cash costs increased by $6 per ounce decreased by $4, or one0.5 percent, to $688$797 per ounce in 20172020 from $682$801 per ounce in 2016.2019. The increasedecrease was mainly due to the increase in salaries and wages costs, consumables store costs, fuel costs and contractor costs. The increase was partially offset by a 139,000-ounce52,000-ounce increase in production (excluding pre-production ounces). The decrease was partially offset by an increase in total cash costs.


TotalIn Tanzania, at Geita, total cash costs at Geita, in Tanzania, increased by $78 per ounce decreased by $54, or 15eight percent, to $608$641 per ounce in 20172020 from $530$695 per ounce in 2016.2019. The increasedecrease was mainly due theto a decrease in total cash costs and a 19,000 ounce increase in consumables store costs, fuel costs and contractor costs partially offset by a 61,000-ounce increase in production (excluding pre-production ounces).production.


In Ghana, at Iduapriem, total cash costs per ounce decreased by $85 per ounce,$84, or nineten percent, to $823$731 per ounce in 20172020, compared to $908$815 per ounce in 20162019 due to a decrease in total cash costs, while production during 2020 remained consistent with the prior year’s production at 275,000 ounces. At Obuasi, the Obuasi redevelopment project was commissioned during 2020 with total cash costs per ounce of $1,145 and 30,000 ounces production.

In Guinea, at Siguiri, total cash costs per ounce increased by $202, or 19 percent, to $1,293 per ounce in 2020 from $1,091 per ounce in 2019 mainly due to an increase in total cash costs, partly offset by a 14,000-ounce2,000-ounce increase in production.

At Siguiri, in Guinea, total cash costs decreased by eight percent to $725 per ounce in 2017 from $784 per ounce in 2016 mainly due to a 63,000-ounce increase in production partially offset by an increase in salaries and wages costs, consumables store costs, fuel costs and service related cost.



In Continental Africa - Joint Ventures, total cash costs increased by $7 per ounce decreased by $28, or onefour percent, to $819$629 per ounce in 20172020 from $812$657 per ounce in 2016. The increase was mainly due to the increase in salaries and wages costs, consumables store costs, fuel costs and contractor costs partially offset by a 4,000-ounce increase in production.

In Mali, at Morila, total cash costs decreased by $149 per ounce, or 13 percent, to $974 per ounce in 2017 from $1,123 per ounce in 2016.2019. The decrease was mainly due to the 6,000-ounce increasea decrease in total cash costs. The decrease was partially offset by a 81,000-ounce decrease in production. At

In Mali, during 2020, the Sadiola total cash costs decreased by $91 per ounce, or nine percent, from $991 per ounceand Morila operations reached the end of their operating lives and recorded $nil cost of sales and nil gold sales. On 10 November 2020, AngloGold Ashanti together with its joint venture partner Barrick completed the sale of the Morila gold mine in 2016Mali to $900 per ounceFirefinch Limited. On 30 December 2020, AngloGold Ashanti together with its joint venture partner IAMGOLD completed the sale of the Sadiola gold mine in 2017. The decrease in cash costs per ounces, despite the 7,000-ounce decrease in production, was dueMali to the additional of full grade ore stockpiles compared to stockpile utilisation in 2016.Allied Gold.


In the DRC, at Kibali, total cash costs per ounce increased by $44 per ounce,$57, or sixten percent, to $784$629 per ounce in 20172020 from $740$572 per ounce in 2016 mainly due to the increase in salaries and wages and contractor cost partially offset by a 4,000-ounce increase in production.

In the Americas, total cash costs increased by $60 per ounce, or 10 percent, to $638 per ounce in 2017 from $578 per ounce in 2016.2019. The increase was mainly due to an increase in salaries and wages costs, consumables storetotal cash costs and contractora 2,000-ounce decrease in production.

In the Americas, total cash costs per ounce decreased by $15, or two percent, to $721 per ounce in 2020 from $736 per ounce in 2019. The decrease was mainly due to a decrease in cost of sales and an increase in by-product revenue, partially offset by a 19,000-ounce increase61,000 ounce decrease in production (excluding pre-production ounces) and an increase in silver revenue due to an increase in silver sold from 5.1 million ounces in 2016 to 6.3 million ounces in 2017.production.


In Brazil, at AngloGold Ashanti Córrego do SítioAGA Mineração, total cash costs increased by $109 per ounce decreased by $35, or 19four percent, to $671$747 per ounce in 20172020 from $562$782 per ounce in 20162019, primarily due to increasesa decrease in salaries and wagestotal cash costs, consumables store costs and contractor costs partially offset by a 16,000-ounce increase inwhile production (excluding pre-production ounces).during 2020 remained consistent with the prior year’s production at 362,000 ounces. At Serra Grande, total cash costs increased by $130 per ounce decreased by $42, or 21six percent, to $764$665 per ounce in 20172020 from $634$707 per ounce in 20162019, primarily due to increasesa decrease in salaries and wages, consumable stores and service related costs.total cash costs, partly offset by a 9,000-ounce decrease in production.


In Argentina, at Cerro Vanguardia, total cash costs decreased by $41 per ounce increased by $26, or sevenfour percent, to $522$699 per ounce in 20172020 from $563$673 per ounce in 20162019, primarily due to a 2,000-ounce increase52,000-ounce decrease in production, andpartly offset by an increase in silver revenue due to an increase in silver sold from 5.1 million ounces in 2016 to 6.3 million ounces in 2017.by-product revenue.


In Australia, total cash costs decreased by $50 per ounce increased by $238, or six33 percent, to $743$968 per ounce in 20172020 from $793$730 per ounce in 20162019, primarily due to a 39,000-ouncean increase in total cash costs and a 60,000-ounce decrease in production.


At Sunrise Dam, total cash costs decreased by $7 per ounce increased by $55, or onefive percent, to $919$1,069 per ounce in 20172020 compared to $926$1,014 per ounce in 2016,2019, mainly due to an increase in total cash costs, partly offset by a 10,000-ounce2,000 ounce increase in production.


At Tropicana, total cash costs decreased by $66 per ounce increased by $303, or ten60 percent, to $564$807 per ounce in 20172020 compared to $630$504 per ounce in 2016,2019, mainly due to a 30,000-ouncean increase in total cash costs and a 62,000 ounce decrease in production.





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Overall the subsidiaries’ total cash costs per ounce increased by $52, per ounce, or seven percent, to $789$815 per ounce in 20172020 compared to $737$763 per ounce in 2016.2019. The increase was mainly due to increases in salaries and wages costs, consumables store costs, fuel costs and contractor costs partially offset by a 134,000-ounce increase in production and an increase in silver revenue.total cash costs and a 70,000-ounce decrease in production.



Reconciliations



The following tables present a reconciliation of both cost of sales and total cash costs as included in the company’s audited financial statements to “all-in sustaining costs”, “all-in sustaining costs per ounce”, “all-in costs”, “all-in costs per ounce”, “total cash costs net of by-product revenue” and “total cash costs per ounce” for each of the three years in the period ended 31 December 2021 on a total and segment basis. In addition, the company has provided detail of the attributable ounces of gold produced and sold by mine for each of those periods below.









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For the year ended 31 December 20182021
Corporate and other
(in $ millions, except as otherwise noted)
Corporate (4)
All-in sustaining costs
Cost of sales per segmental information(5)
(5)
By-product revenue—
Realised other commodity contracts—
Amortisation of tangible, intangible and right of use assets(3)
Adjusted for decommissioning and inventory amortisation—
Corporate administration and marketing expenditure73
Lease payment sustaining3
Sustaining exploration and study costs—
Total sustaining capital expenditure11
All-in sustaining costs79
Adjusted for non-controlling interests and non-gold producing companies(1)
—
All-in sustaining costs adjusted for non-controlling interests and non-gold producing companies79
All-in sustaining costs79
Non-sustaining project capital expenditure—
Non-sustaining lease payments—
Non-sustaining exploration and study costs—
Care and maintenance—
Closure and social responsibility costs not related to current operations4
Other provisions1
All-in costs84
Adjusted for non-controlling interests and non-gold producing companies(1)
—
All-in costs adjusted for non-controlling interests and non-gold producing companies84
Gold sold - oz (000)(2)
—
All-in sustaining cost per unit - $/oz(3)
—
All-in cost per unit - $/oz(3)
—
(1)Adjusting for non-controlling interest of items included in calculation, to disclose the attributable portions only.
(2)Attributable portion (excluding pre-production ounces).
(3)In addition to the operational performances of the mines, “all-in sustaining cost per ounce”, “all-in cost per ounce” and “total cash costs per ounce” are affected by fluctuations in the currency exchange rate. AngloGold Ashanti reports “all-in sustaining cost per ounce” and “all-in cost per ounce” calculated to the nearest US dollar amount and gold sold in ounces. AngloGold Ashanti reports “total cash costs per ounce” calculated to the nearest US dollar amount and gold produced in ounces.
(4)Corporate includes non-gold producing subsidiaries.
(5)Refer to “Item 18: Financial Statements—Note 2—Segmental Information”.

Rounding of figures may result in computational discrepancies.




210

For the year ended 31 December 2021
Corporate and other
(in $ millions, except as otherwise noted)
Corporate(4)
Total cash costs
Cost of sales per segmental information(5)
(5)
By-product revenue—
Inventory change—
Amortisation of tangible assets(1)
Amortisation of right of use assets(1)
Amortisation of intangible assets(1)
Rehabilitation and other non-cash costs—
Retrenchment costs—
Total cash costs(8)
Adjusted for non-controlling interests(1)
—
Total cash costs adjusted for non-controlling interests(8)
Gold produced – oz (000)(2)
—
Total cash costs per unit – $/oz(3)
—
(1)Adjusting for non-controlling interest of items included in calculation, to disclose the attributable portions only.
(2)Attributable portion (excluding pre-production ounces).
(3)In addition to the operational performances of the mines, “all-in sustaining cost per ounce”, “all-in cost per ounce” and “total cash costs per ounce” are affected by fluctuations in the currency exchange rate. AngloGold Ashanti reports “all-in sustaining cost per ounce” and “all-in cost per ounce” calculated to the nearest US dollar amount and gold sold in ounces. AngloGold Ashanti reports “total cash costs per ounce” calculated to the nearest US dollar amount and gold produced in ounces.
(4)Corporate includes non-gold producing subsidiaries.
(5)Refer to “Item 18: Financial Statements—Note 2—Segmental Information”.

Rounding of figures may result in computational discrepancies.



211

For the year ended 31 December 2021
Operations in DRC, Ghana, Guinea, Mali and Tanzania
(in $ millions, except as otherwise noted)
DRCMaliJointGhanaGuineaTanzaniaAfrica otherSubsidiaries
KibaliMorilaSadiolaVenturesIduapriemObuasiSiguiriGeita
All-in sustaining costs
Cost of sales per segmental information(5)
350 — — 350 238 164 410 488 — 1,300 
By-product revenue(2)— — (2)(1)— (1)(1)— (3)
Realised other commodity contracts— — — — — — — — — — 
Amortisation of tangible, intangible and right of use assets(105)— — (105)(19)(22)(47)(75)— (163)
Adjusted for decommissioning and inventory amortisation1 — — 1 1 — — 1 — 2 
Corporate administration and marketing expenditure— — — — — — — — — — 
Lease payment sustaining9 — — 9 2 — 1 19 — 22 
Sustaining exploration and study costs— — — — 1 — 3 4 — 8 
Total sustaining capital expenditure61 — — 61 103 46 18 65 — 232 
All-in sustaining costs314 — — 314 325 188 384 501 — 1,398 
Adjusted for non-controlling interests and non -gold producing companies(1)
— — — — — — (58)— — (58)
All-in sustaining costs adjusted for non-controlling interests and non-gold producing companies314 — — 314 325 188 326 501 — 1,340 
All-in sustaining costs314 — — 314 325 188 384 501 — 1,398 
Non-sustaining project capital expenditure11 — — 11 2 122 20 58 — 202 
Non-sustaining lease payments— — — — — — — 2 — 2 
Non-sustaining exploration and study costs2 — — 2 3 2 2 1 — 8 
Care and maintenance— — — — — 45 — — — 45 
Closure and social responsibility costs not related to current operations3 — — 3 — 10 — — — 10 
Other provisions— — — — — — — 3 — 3 
All-in costs330 — — 330 330 367 406 565 — 1,668 
Adjusted for non-controlling interests and non-gold producing companies(1)
— — — — — — (61)— — (61)
All-in costs adjusted for non-controlling interests and non-gold producing companies330 — — 330 330 367 345 565 — 1,607 
Gold sold – oz (000)(2)
367 — — 367 201 114 258 487 — 1,060 
All-in sustaining cost per unit – $/oz(3)
856 — — 856 1,619 1,653 1,267 1,029 — 1,264 
All-in cost per unit – $/oz(3)
898 — — 900 1,642 3,229 1,340 1,161 — 1,516 




212

For the year ended 31 December 2021
Operations in DRC, Ghana, Guinea, Mali and Tanzania
(in $ millions, except as otherwise noted)
DRCMaliJointGhanaGuineaTanzaniaAfrica otherSubsidiaries
KibaliMorilaSadiolaVenturesIduapriemObuasiSiguiriGeita
Total cash costs
Cost of sales per segmental information(5)
350 — — 350 238 164 410 488 — 1,300 
By-product revenue(2)— — (2)(1)— (1)(1)— (3)
Inventory change(1)— — (1)1 (10)(1)(1)— (11)
Amortisation of tangible assets(100)— — (100)(17)(21)(46)(55)— (139)
Amortisation of right of use assets(5)— — (5)(2)— (1)(20)— (23)
Amortisation of intangible assets— — — — — (1)— — — (1)
Rehabilitation and other non-cash costs(5)— — (5)(1)(12)2 (12)— (23)
Retrenchment costs— — — — — — — — — — 
Total cash costs237 — — 237 218 120 363 399 — 1,100 
Adjusted for non-controlling interests(1)
— — — — — — (55)— — (55)
Total cash costs adjusted for non-controlling interests237 — — 237 218 120 308 399 — 1,045 
Gold produced - oz (000)(2)
365 — — 365 202 108 — 258 — 486 — — 1,054 
Total cash costs per unit - $/oz(3)
647 — — 647 1,081 1,112 1,200 822 — 991 




213

For the year ended 31 December 2021
Operations in Australia, Argentina and Brazil
(in $ millions, except as otherwise noted)
AustraliaTotal
Australia		ArgentinaBrazilAmericas otherTotal Americas
Sunrise DamTropicanaAustralia otherCerro VanguardiaAngloGold Ashanti
Mineração		Serra Grande
All-in sustaining costs
Cost of sales per segmental information(5)
364 346 30 740 261 435 123 3 822 
By-product revenue(1)(3)— (4)(93)(26)— — (119)
Realised other commodity contracts— — — — — — — — — 
Amortisation of tangible, intangible and right of use assets(60)(88)(2)(150)(27)(108)(25)(1)(161)
Adjusted for decommissioning and inventory amortisation1 1 — 2 — (4)— — (4)
Corporate administration and marketing expenditure— — — — — — — — — 
Lease payment sustaining13 12 — 25 — 15 4 1 20 
Sustaining exploration and study costs— — — — 1 1 — — 2 
Total sustaining capital expenditure47 82 1 130 69 193 82 — 344 
All-in sustaining costs364 350 29 743 211 506 184 3 904 
Adjusted for non-controlling interests and non -gold producing companies(1)
— — — — (16)— — — (16)
All-in sustaining costs adjusted for non-controlling interests and non-gold producing companies364 350 29 743 195 506 184 3 888 
All-in sustaining costs364 350 29 743 211 506 184 3 904 
Non-sustaining project capital expenditure15 40 — 55 — 2 — 52 54 
Non-sustaining lease payments— — — — — — — — — 
Non-sustaining exploration and study costs27 8 21 56 1 11 4 73 89 
Care and maintenance— — — — — — — — — 
Closure and social responsibility costs not related to current operations— — — — — 7 2 1 10 
Other provisions— — — — — — — — — 
All-in costs406 398 50 854 212 526 190 129 1,057 
Adjusted for non-controlling interests and non -gold producing companies(1)
— — — — (16)— — — (16)
All-in costs adjusted for non-controlling interests and non-gold producing companies406 398 50 854 196 526 190 129 1,041 
Gold sold – oz (000)(2)
231 264 — 495 144 334 83 — 561 
All-in sustaining cost per unit – $/oz(3)
1,573 1,326 — 1,500 1,353 1,519 2,220 — 1,587 
All-in cost per unit – $/oz(3)
1,757 1,506 — 1,725 1,362 1,582 2,283 — 1,858 




214

For the year ended 31 December 2021
Operations in Australia, Argentina and Brazil
(in $ millions, except as otherwise noted)
AustraliaTotal
Australia		ArgentinaBrazilAmericas otherTotal Americas
Sunrise DamTropicanaAustralia otherCerro VanguardiaAngloGold Ashanti
Mineração		Serra Grande
Total cash costs
Cost of sales per segmental information(5)
364 346 30 740 261 435 123 3 822 
By-product revenue(1)(3)— (4)(93)(26)— — (119)
Inventory change(3)3 — — 7 (3)1 — 5 
Amortisation of tangible assets(49)(80)— (129)(27)(94)(21)— (142)
Amortisation of right of use assets(11)(8)(1)(20)— (14)(4)(1)(19)
Amortisation of intangible assets— — (1)(1)— — — — — 
Rehabilitation and other non-cash costs3 3 (1)5 (8)(12)— — (20)
Retrenchment costs— — — — (1)(1)— — (2)
Total cash costs303 261 27 591 139 285 99 2 525 
Adjusted for non-controlling interests(1)
— — — — (10)— — — (10)
Total cash costs adjusted for non-controlling interests303 261 27 591 129 285 99 2 515 
Gold produced – oz (000)(2)
229 265 — 494 145 331 83 — 559 
Total cash costs per unit – $/oz(3)
1,321 987 — 1,196 894 858 1,192 — 921 





215

For the year ended 31 December 2021
AngloGold Ashanti operations – Total
(in $ millions, except as otherwise noted)
JOINT VENTURESSUBSIDIARIES EXCLUDING DISCONTINUED OPERATIONS
All-in sustaining costs
Cost of sales per segmental information(5)
350 2,857 
By-product revenue(2)(126)
Realised other commodity contracts— — 
Amortisation of tangible, intangible and right of use assets(105)(477)
Adjusted for decommissioning and inventory amortisation1 — 
Corporate administration and marketing expenditure— 73 
Lease payment sustaining9 70 
Sustaining exploration and study costs— 10 
Total sustaining capital expenditure61 717 
All-in sustaining costs314 3,124 
Adjusted for non-controlling interests and non-gold producing companies(1)
— (74)
All-in sustaining costs adjusted for non-controlling interests and non-gold producing companies314 3,050 
All-in sustaining costs314 3,124 
Non-sustaining project capital expenditure11 311 
Non-sustaining lease payments— 2 
Non-sustaining exploration and study costs2 153 
Care and maintenance— 45 
Closure and social responsibility costs not related to current operations3 24 
Other provisions— 4 
All-in costs330 3,663 
Adjusted for non-controlling interests and non-gold producing companies(1)
— (77)
All-in costs adjusted for non-controlling interests and non-gold producing companies330 3,586 
Gold sold – oz (000)(2)
367 2,116 
All-in sustaining cost per unit – $/oz(3)
856 1,441 
All-in cost per unit – $/oz(3)
900 1,695 




216

For the year ended 31 December 2021
AngloGold Ashanti operations – Total
(in $ millions, except as otherwise noted)
JOINT VENTURESSUBSIDIARIES EXCLUDING DISCONTINUED OPERATIONS
Total cash costs
Cost of sales per segmental information(5)
350 2,857 
By-product revenue(2)(126)
Inventory change(1)(6)
Amortisation of tangible assets(100)(411)
Amortisation of right of use assets(5)(63)
Amortisation of intangible assets— (3)
Rehabilitation and other non-cash costs(5)(38)
Retrenchment costs— (2)
Total cash costs237 2,208 
Adjusted for non-controlling interests(1)
— (65)
Total cash costs adjusted for non-controlling interests237 2,143 
Gold produced – oz (000)(2)
365 2,107 
Total cash costs (adjusted) per unit – $/oz(3)
647 1,017 





217

For the year ended 31 December 2020
Corporate and other
(in $ millions, except as otherwise noted)
Corporate (4)
All-in sustaining costs
Cost of sales per segmental information(5)
(2)
By-product revenue— 
Realised other commodity contracts5 
Amortisation of tangible, intangible and right of use assets(2)
Adjusted for decommissioning and inventory amortisation(1)
Corporate administration and marketing expenditure67 
Lease payment sustaining3 
Sustaining exploration and study costs1 
Total sustaining capital expenditure2 
All-in sustaining costs73 
Adjusted for non-controlling interests and non -gold producing companies(1)
— 
All-in sustaining costs adjusted for non-controlling interests and non-gold producing companies73 
All-in sustaining costs73 
Non-sustaining project capital expenditure— 
Non-sustaining lease payments— 
Non-sustaining exploration and study costs— 
Care and maintenance— 
Closure and social responsibility costs not related to current operations9 
Other provisions— 
All-in costs82 
Adjusted for non-controlling interests and non -gold producing companies(1)
— 
All-in costs adjusted for non-controlling interests and non-gold producing companies82 
Gold sold - oz (000)(2)
— 
All-in sustaining cost per unit - $/oz(3)
— 
All-in cost per unit - $/oz(3)
— 
(1)Adjusting for non-controlling interest of items included in calculation, to disclose the attributable portions only.
(2)Attributable portion (excluding pre-production ounces).
(3)In addition to the operational performances of the mines, “all-in sustaining cost per ounce”, “all-in cost per ounce” and “total cash costs per ounce” are affected by fluctuations in the currency exchange rate. AngloGold Ashanti reports “all-in sustaining cost per ounce” and “all-in cost per ounce” calculated to the nearest US dollar amount and gold sold in ounces. AngloGold Ashanti reports “total cash costs per ounce” calculated to the nearest US dollar amount and gold produced in ounces.
(4)Corporate includes non-gold producing subsidiaries.
(5)Refer to “Item 18: Financial Statements—Note 2—Segmental Information”.

Rounding of figures may result in computational discrepancies.





218

For the year ended 31 December 2020
Corporate and other
(in $ millions, except as otherwise noted)
Corporate (4)
Total cash costs
Cost of sales per segmental information(5)
(2)
By-product revenue—
Inventory change—
Amortisation of tangible assets—
Amortisation of right of use assets—
Amortisation of intangible assets(2)
Rehabilitation and other non-cash costs—
Retrenchment costs—
Total cash costs net of by-product revenue(4)
Adjusted for non-controlling interests,(1)
—
Total cash costs for non-controlling interests(4)
Gold produced – oz (000)(2)
—
Total cash costs per unit – $/oz(3)
—
(1)Adjusting for non-controlling interest of items included in calculation, to disclose the attributable portions only.
(2)Attributable portion (excluding pre-production ounces).
(3)In addition to the operational performances of the mines, “all-in sustaining cost per ounce”, “all-in cost per ounce” and “total cash costs per ounce” are affected by fluctuations in the currency exchange rate. AngloGold Ashanti reports “all-in sustaining cost per ounce” and “all-in cost per ounce” calculated to the nearest US dollar amount and gold sold in ounces. AngloGold Ashanti reports “total cash costs per ounce” calculated to the nearest US dollar amount and gold produced in ounces.
(4)Corporate includes non-gold producing subsidiaries.
(5)Refer to “Item 18: Financial Statements—Note 2—Segmental Information”.

Rounding of figures may result in computational discrepancies.




219

For the year ended 31 December 2020
Operations in South Africa (Discontinued operations)
(in $ millions, except as otherwise noted)
MponengWest Wits OperationsSurface OperationsSouth Africa otherTotal South Africa (Operations)
All-in sustaining costs
Cost of sales per segmental information(5)
158 158 124 4 287 
By-product revenue(1)— — — (1)
Realised other commodity contracts— — — — — 
Amortisation of tangible, intangible and right of use assets— — — — — 
Adjusted for decommissioning and inventory amortisation— — — — — 
Corporate administration and marketing expenditure— — — — — 
Sustaining exploration and study costs— — — — — 
Total sustaining capital expenditure27 27 7 1 35 
All-in sustaining costs184 185 131 5 321 
All-in sustaining costs adjusted for non-controlling interest and non-gold producing companies184 185 131 5 321 
Non-sustaining project capital expenditure— — — — — 
Non-sustaining lease payments— — — — — 
Non-sustaining exploration and study costs— — — — — 
Care and maintenance— — — 17 17 
Closure and social responsibility costs not related to current operations— — — — — 
Other provisions— — — — — 
All-in costs184 185 131 22 338 
Gold sold - oz (000)(2)
135 135 109 — 247 
All-in sustaining cost per unit - $/oz(3)
1,365 1,365 1,201 — 1,296 
All-in cost per unit - $/oz(3)
1,366 1,366 1,201 — 1,367 





220
 Kopanang
 Moab Khotsong
 
Vaal River
Operations

 Mponeng
 West Wits Operations
 Surface Operations
 South Africa other
 Total South Africa (Operations)
 
Corporate (4)

All-in sustaining costs                 
Cost of sales per segmental information(5)
29
 48
 77
 320
 320
 193
 —
 590
 (4)
By-product revenue(2) (4) (6) —
 —
 —
 —
 (6) —
Amortisation of tangible and intangible assets—
 —
 —
 (57) (57) (15) —
 (72) (3)
Adjusted for decommissioning and inventory amortisation—
 —
 —
 —
 —
 (3) —
 (3) (1)
Corporate administration and marketing related to current operations—
 —
 —
 —
 —
 —
 —
 —
 75
Inventory writedown to net realisable value and other stockpile adjustments—
 —
 —
 —
 —
 —
 1
 1
 —
Sustaining exploration and study costs—
 —
 —
 —
 —
 —
 —
 —
 1
Total sustaining capital expenditure—
 7
 7
 49
 49
 12
 —
 68
 3
Realised other commodity contracts—
 —
 —
 —
 —
 —
 —
 —
 —
All-in sustaining costs27
 51
 78
 312
 312
 187
 1
 578
 73
Adjusted for non-controlling interests and non-gold producing companies(1)
—
 —
 —
 —
 —
 —
 —
 —
 —
All-in sustaining costs adjusted for non-controlling interests and non-gold producing companies27
 51
 78
 312
 312
 187
 1
 578
 73
Adjusted for stockpile
write-offs
—
 —
 —
 —
 —
 —
 (1) (1) —
All-in sustaining costs adjusted for non-controlling interests, non-gold producing companies and stockpile write-offs27
 51
 78
 312
 312
 187
 —
 577
 73
All-in sustaining costs27
 51
 78
 312
 312
 187
 1
 578
 73
Non-sustaining project capital expenditure—
 —
 —
 5
 5
 —
 —
 5
 —
Technology improvements—
 —
 —
 —
 —
 —
 4
 4
 —
Non-sustaining exploration and study costs—
 —
 —
 —
 —
 —
 —
 —
 2
Care and maintenance—
 —
 —
 —
 —
 —
 35
 35
 —
Corporate and social responsibility costs not related to current operations—
 —
 —
 —
 —
 —
 —
 —
 8
Other provisions—
 —
 —
 —
 —
 —
 —
 —
 (2)
All-in costs27
 51
 78
 317
 317
 187
 40
 622
 78
Adjusted for non-controlling interests and non-gold producing companies(1)
—
 —
 —
 —
 —
 —
 —
 —
 —
All-in costs adjusted for non-controlling interests and non-gold producing companies27
 51
 78
 317
 317
 187
 40
 622
 78
Adjusted for stockpile
write-offs
—
 —
 —
 —
 —
 —
 (1) (1) —
All-in costs adjusted for non-controlling interests, non-gold producing companies and stockpile write-offs27
 51
 78
 317
 317
 187
 39
 621
 79
Gold sold - oz (000)(2)
13
 41
 53
 265
 265
 171
 —
 490
 —
All-in sustaining cost (excluding stockpile write-offs) per unit - $/oz(3)
2,115
 1,247
 1,452
 1,177
 1,177
 1,094
 —
 1,178
 —
All-in cost per unit (excluding stockpile write-offs) - $/oz(3)
2,115
 1,247
 1,452
 1,196
 1,196
 1,094
 —
 1,268
 —

(1)
Adjusting for non-controlling interest of items included in calculation, to disclose the attributable portions only. Other consists of heap leach inventory.
(2)
Attributable portion (excluding pre-production ounces).
(3)
In addition to the operational performances of the mines, all-in sustaining cost per ounce, all-in cost per ounce and total cash costs per ounce are affected by fluctuations in the currency exchange rate. AngloGold Ashanti reports all-in sustaining cost per ounce and all-in cost per ounce calculated to the nearest US dollar amount and gold sold in ounces. AngloGold Ashanti reports total cash costs per ounce calculated to the nearest US dollar amount and gold produced in ounces.
(4)
Corporate includes non-gold producing subsidiaries.
(5)
Refer to “Item 18: Financial Statements – Note 2 – Segmental Information”.

Rounding of figures may result in computational differences.

For the year ended 31 December 20182020
Operations in South Africa (Discontinued operations)
(in $ millions, except as otherwise noted)
MponengWest Wits OperationsSurface OperationsSouth Africa otherTotal South Africa (Operations)
Total cash costs
Cost of sales per segmental information(5)
158 158 124 4 287 
By-product revenue(1)(1)— — (1)
Inventory change(1)(1)(2)(4)(7)
Amortisation of tangible assets— — — — —
Amortisation of right of use assets— — — — —
Amortisation of intangible assets— — — — —
Rehabilitation and other non-cash costs— — — — —
Retrenchment costs(1)(1)— — (2)
Total cash costs155 155 122 — 277 
Gold produced - oz (000)(2)
134 134 107 — 241 
Total cash costs per unit -$/oz(3)
1,164 1,164 1,131 — 1,149 




221
 Kopanang
 Moab Khotsong
 
Vaal River
Operations

 Mponeng
 West Wits Operations
 Surface Operations
 South Africa other
 Total South Africa (Operations)
 
Corporate(4)

Total cash costs                 
Cost of sales per segmental information(5)29
 48
 77
 320
 320
 193
 —
 590
 (4)
By-product revenue(2) (4) (6) —
 —
 —
 —
 (6) —
Inventory change—
 (1) (1) —
 —
 (4) —
 (5) (1)
Amortisation of intangible assets—
 —
 —
 —
 —
 —
 —
 —
 —
Amortisation of tangible and intangible assets—
 —
 —
 (57) (57) (15) —
 (72) (3)
Rehabilitation and other non-cash costs(2) (1) (3) (4) (4) 2
 2
 (3) 1
Retrenchment costs—
 —
 —
 —
 —
 —
 —
 —
 (1)
Total cash costs net of by-product revenue25
 42
 67
 259
 259
 176
 2
 504
 (7)
Adjusted for non-controlling interests, non-gold producing companies and other(1)
—
 —
 —
 —
 —
 —
 —
 —
 (1)
Total cash costs net of by-product revenue adjusted for non-controlling interests and non-gold producing companies25
 42
 67
 259
 259
 176
 2
 504
 (8)
Gold produced – oz (000)(2)
12
 39
 51
 265
 265
 171
 —
 487
 —
Total cash costs per unit –
$/oz(3)
2,002
 1,083
 1,304
 977
 983
 1,030
 —
 1,033
 —


For the year ended 31 December 20182020
Operations in DRC, Ghana, Guinea, Mali and Tanzania
(in $ millions, except as otherwise noted)
DRCMaliJointGhanaGuineaTanzaniaAfrica otherSubsidiaries
KibaliMorilaSadiolaVenturesIduapriemObuasiSiguiriGeita
All-in sustaining costs
Cost of sales per segmental information(5)
340 — — 340 280 34 377 542 (1)1,232 
By-product revenue(1)— — (1)(1)— — (2)— (3)
Realised other commodity contracts— — — — — — — — — — 
Amortisation of tangible, intangible and right of use assets(104)— — (104)(74)(6)(41)(124)— (245)
Adjusted for decommissioning and inventory amortisation1 — — 1 1 — — 4 — 5 
Corporate administration and marketing expenditure— — — — — — — — — — 
Lease payment sustaining9 — — 9 — — — 17 — 17 
Sustaining exploration and study costs— — — — 3 — 2 5 — 10 
Total sustaining capital expenditure52 — — 52 60 7 15 80 1 163 
All-in sustaining costs296 — — 297 269 35 353 522 — 1,179 
Adjusted for non-controlling interests and non -gold producing companies(1)
— — — — — — (53)— — (53)
All-in sustaining costs adjusted for non-controlling interests and non-gold producing companies296 — — 297 269 35 300 522 — 1,126 
All-in sustaining costs296 — — 297 269 35 353 522 — 1,179 
Non-sustaining project capital expenditure— — — — — 161 15 7 — 183 
Non-sustaining lease payments— — — — — — — 2 — 2 
Non-sustaining exploration and study costs— — — — 2 2 5 2 — 11 
Care and maintenance— — — — — — — — — — 
Closure and social responsibility costs not related to current operations2 6 (3)4 — 10 — — — 10 
Other provisions— — — — — — — — — — 
All-in costs298 6 (3)301 271 208 373 533 — 1,385 
Adjusted for non-controlling interests and non -gold producing companies(1)
— — — — — — (56)— — (56)
All-in costs adjusted for non-controlling interests and non-gold producing companies298 6 (3)301 271 208 317 533 — 1,329 
Gold sold – oz (000)(2)
365 — — 365 274 27 215 639 — 1,155 
All-in sustaining cost per unit – $/oz(3)
809 — — 810 985 1,316 1,397 814 — 975 
All-in cost per unit – $/oz(3)
817 — — 824 992 7,731 1,476 831 — 1,149 




222
 DRC MALI Joint GHANA GUINEA TANZANIA Continental Africa other
 SUBSIDIARIES
 Kibali
 Morila
 Sadiola
 Ventures
 Iduapriem
 Obuasi
 Siguiri
 Geita
  
All-in sustaining costs                   
Cost of sales per segmental information(5)
373
 42
 65
 480
 233
 (6) 286
 612
 2
 1,127
By-product revenue(1) —
 —
 (1) —
 —
 —
 (2) —
 (2)
Amortisation of tangible and intangible assets(149) (7) (9) (165) (29) —
 (38) (144) (3) (214)
Adjusted for decommissioning and inventory amortisation1
 3
 —
 4
 —
 —
 2
 2
 —
 4
Corporate administration and marketing related to current operations—
 —
 —
 —
 —
 —
 —
 —
 —
 —
Inventory writedown to net realisable value and other stockpile adjustments—
 —
 —
 —
 —
 —
 —
 —
 —
 —
Sustaining exploration and study costs—
 —
 —
 —
 1
 —
 7
 8
 —
 16
Total sustaining capital expenditure54
 2
 —
 56
 43
 —
 11
 59
 —
 113
Realised other commodity contracts—
 —
 —
 —
 —
 —
 —
 —
 —
 —
All-in sustaining costs278
 40
 56
 374
 248
 (6) 267
 535
 —
 1,044
Adjusted for non-controlling interests and non -gold producing companies(1)
—
 —
 —
 —
 —
 —
 (40) —
 —
 (40)
All-in sustaining costs adjusted for non-controlling interests and non-gold producing companies278
 40
 56
 374
 248
 (6) 227
 535
 —
 1,004
Adjusted for stockpile write-offs—
 —
 —
 —
 —
 —
 —
 —
 —
 —
All-in sustaining costs adjusted for non-controlling interests, non-gold producing companies and stockpile write-offs278
 40
 56
 374
 248
 (6) 227
 535
 —
 1,004
All-in sustaining costs278
 40
 56
 374
 248
 (6) 267
 535
 —
 1,044
Non-sustaining project capital expenditure10
 —
 1
 11
 —
 48
 85
 —
 —
 133
Technology improvements—
 —
 —
 —
 —
 —
 —
 —
 —
 —
Non-sustaining exploration and study costs1
 —
 —
 1
 —
 1
 10
 —
 —
 11
Care and maintenance costs—
 —
 —
 —
 —
 39
 —
 —
 —
 39
Corporate and social responsibility costs not related to current operations—
 —
 —
 —
 —
 —
 —
 —
 —
 —
Other provisions—
 —
 —
 —
 —
 —
 —
 —
 —
 —
All-in costs289
 40
 57
 386
 248
 82
 362
 535
 —
 1,227
Adjusted for non-controlling interests and non-gold producing companies(1)
—
 —
 —
 —
 —
 —
 (54) —
 —
 (54)
All-in costs adjusted for non-controlling interests and non-gold producing companies289
 40
 57
 386
 248
 82
 308
 535
 —
 1,173
Adjusted for stockpile write-offs—
 —
 —
 —
 —
 —
 —
 —
 —
 —
All-in costs adjusted for non-controlling interests, non-gold producing companies and stockpile write-offs289
 40
 57
 386
 248
 82
 308
 535
 —
 1,173
Gold sold – oz (000)(2)
370
 30
 58
 459
 254
 —
 244
 568
 —
 1,066
All-in sustaining cost (excluding stockpile write-offs) per unit – $/oz(3)
752
 1,321
 990
 820
 977
 —
 930
 940
 —
 941
All-in cost per unit (excluding stockpile write-offs) – $/oz(3)
782
 1,321
 1,005
 846
 977
 —
 1,261
 940
 —
 1,099


For the year ended 31 December 20182020
Operations in DRC, Ghana, Guinea, Mali and Tanzania
(in $ millions, except as otherwise noted)
DRCMaliJointGhanaGuineaTanzania Africa otherSubsidiaries
KibaliMorilaSadiolaVenturesIduapriemObuasiSiguiriGeita
Total cash costs
Cost of sales per segmental information(5)
340 — — 340 280 34 377 542 (1)1,232 
By-product revenue(1)— — (1)(1)— — (2)— (3)
Inventory change(1)— — (1)1 9 (1)(12)— (3)
Amortisation of tangible assets(101)— — (101)(74)(6)(40)(108)— (228)
Amortisation of right of use assets(3)— — (3)— — (1)(16)— (17)
Amortisation of intangible assets— — — — — — — — — — 
Rehabilitation and other non-cash costs(4)— — (4)(6)(2)(9)(5)— (22)
Retrenchment costs— — — — — — — — — — 
Total cash costs230 — — 230 200 35 326 399 (1)959 
Adjusted for non-controlling interests(1)
— — — — — — (49)— — (49)
Total cash costs adjusted for non-controlling interests230 — — 230 200 35 277 399 (1)910 
Gold produced - oz (000) (2)
364 — — 364 275 30 215 623 — 1,143 
Total cash costs per unit - $/oz(3)
629 — — 629 731 1,145 1,293 641 — 797 




223
 DRC MALI JOINT GHANA GUINEA TANZANIA Continental Africa other
 SUBSIDIARIES
 Kibali
 Morila
 Sadiola
 VENTURES Iduapriem
 Obuasi
 Siguiri
 Geita
  
Total cash costs                   
Cost of sales per segmental information(5)373
 42
 65
 480
 233
 (6) 286
 612
 2
 1,127
By-product revenue(1) —
 —
 (1) —
 —
 —
 (2) —
 (2)
Inventory change(3) —
 1
 (2) —
 —
 (3) (2) —
 (5)
Amortisation of tangible and intangible assets(149) (7) (9) (165) (29) —
 (38) (144) (3) (214)
Rehabilitation and other non-cash costs(1) (1) —
 (2) —
 6
 (5) (10) —
 (8)
Retrenchment costs—
 —
 (2) (2) —
 —
 —
 —
 —
 —
Total cash costs net of by-product revenue219
 34
 55
 308
 204
 —
 240
 454
 —
 898
Adjusted for non-controlling interests, non-gold producing companies and other(1)
—
 —
 —
 —
 —
 —
 (36) —
 —
 (36)
Total cash costs net of by-product revenue adjusted for non-controlling interests and non-gold producing companies219
 34
 55
 308
 204
 —
 204
 454
 —
 862
Gold produced - oz (000) (2)
363
 30
 59
 452
 254
 —
 242
 564
 —
 1,060
Total cash costs per unit - $/oz(3)
600
 1,145
 938
 680
 804
 —
 844
 804
 —
 813


For the year ended 31 December 20182020
Operations in Australia, Argentina and Brazil
(in $ millions, except as otherwise noted)
AustraliaTotal
Australia		ArgentinaBrazilAmericas otherTotal Americas
Sunrise DamTropicanaAustralia otherCerro VanguardiaAngloGold Ashanti
Mineração		Serra Grande
All-in sustaining costs
Cost of sales per segmental information(5)
342 338 25 705 269 391 102 2 764 
By-product revenue(1)(2)— (3)(82)(17)— — (99)
Realised other commodity contracts— — — — — — — — — 
Amortisation of tangible, intangible and right of use assets(64)(94)(2)(160)(26)(109)(27)(1)(163)
Adjusted for decommissioning and inventory amortisation2 1 — 3 (7)3 — — (4)
Corporate administration and marketing expenditure— — — — — — — — — 
Lease payment sustaining11 10 1 22 — 8 2 — 10 
Sustaining exploration and study costs— 1 — 1 2 2 — — 4 
Total sustaining capital expenditure50 64 — 114 31 103 33 — 167 
All-in sustaining costs340 318 24 682 187 381 110 1 679 
Adjusted for non-controlling interests and non -gold producing companies(1)
— — — — (14)— — — (14)
All-in sustaining costs adjusted for non-controlling interests and non-gold producing companies340 318 24 682 173 381 110 1 665 
All-in sustaining costs340 318 24 682 187 381 110 1 679 
Non-sustaining project capital expenditure3 25 — 28 — — — 49 49 
Non-sustaining lease payments— — — — — — — — — 
Non-sustaining exploration and study costs22 5 17 44 1 6 3 47 57 
Care and maintenance— — — — — — — — — 
Closure and social responsibility costs not related to current operations— — — — — 8 2 — 10 
Other provisions— — — — — — — — — 
All-in costs365 348 41 754 188 395 115 97 795 
Adjusted for non-controlling interests and non -gold producing companies(1)
— — — — (14)— — — (14)
All-in costs adjusted for non-controlling interests and non-gold producing companies365 348 41 754 174 395 115 97 781 
Gold sold – oz (000)(2)
258 299 — 557 186 364 114 — 664 
All-in sustaining cost per unit – $/oz(3)
1,320 1,061 — 1,225 931 1,050 953 — 1,003 
All-in cost per unit – $/oz(3)
1,417 1,164 — 1,356 934 1,091 997 — 1,179 




224
 Australia 
Total
Australia

 ARGENTINA Brazil Americas other
 TOTAL AMERICAS
Sunrise Dam
 Tropicana
 Australia other
  Cerro Vanguardia
 
AngloGold Ashanti
Mineração

 Serra Grande
  
All-in sustaining costs                 
Cost of sales per segmental information(5)
310
 293
 19
 622
 325
 382
 129
 2
 838
By-product revenue—
 (2) —
 (2) (111) (17) —
 —
 (128)
Amortisation of tangible and intangible assets(51) (92) (6) (149) (50) (99) (42) (1) (192)
Adjusted for decommissioning and inventory amortisation1
 1
 —
 2
 (3) (6) (2) —
 (11)
Corporate administration and marketing related to current operations—
 —
 —
 —
 —
 —
 —
 —
 —
Inventory writedown to net realisable value and other stockpile adjustments—
 —
 —
 —
 —
 —
 —
 —
 —
Sustaining exploration and study costs7
 5
 —
 12
 2
 4
 4
 —
 10
Total sustaining capital expenditure79
 74
 1
 154
 36
 96
 35
 9
 176
Realised other commodity contracts—
 —
 —
 —
 —
 —
 —
 (5) (5)
All-in sustaining costs346
 279
 14
 639
 199
 360
 124
 5
 688
Adjusted for non-controlling interests and non -gold producing companies(1)
—
 —
 —
 —
 (15) —
 —
 (9) (24)
All-in sustaining costs adjusted for non-controlling interests and non-gold producing companies346
 279
 14
 639
 184
 360
 124
 (4) 664
Adjusted for stockpile write-offs—
 —
 —
 —
 —
 —
 —
 —
 —
All-in sustaining costs adjusted for non-controlling interests, non-gold producing companies and stockpile write-offs346
 279
 14
 639
 184
 360
 124
 (4) 664
All-in sustaining costs346
 279
 14
 639
 199
 360
 124
 5
 688
Non-sustaining project capital expenditure—
 2
 —
 2
 —
 —
 —
 —
 —
Technology improvements—
 —
 —
 —
 —
 —
 —
 —
 —
Non-sustaining exploration and study costs—
 —
 18
 18
 —
 2
 —
 34
 36
Care and maintenance—
 —
 —
 —
 —
 —
 —
 —
 —
Corporate and social responsibility costs not related to current operations—
 —
 —
 —
 2
 12
 3
 (1) 16
Other provisions—
 —
 —
 —
 —
 —
 —
 —
 —
All-in costs346
 281
 32
 659
 201
 374
 127
 38
 740
Adjusted for non-controlling interests and non -gold producing companies(1)
—
 —
 —
 —
 (15) —
 —
 —
 (15)
All-in costs adjusted for non-controlling interests and non-gold producing companies346
 281
 32
 659
 186
 374
 127
 38
 725
Adjusted for stockpile write-offs—
 —
 —
 —
 —
 —
 —
 —
 —
All-in costs adjusted for non-controlling interests, non-gold producing companies and stockpile write-offs346
 281
 32
 659
 186
 374
 126
 38
 725
Gold sold – oz (000)(2)
283
 332
 —
 615
 282
 370
 131
 —
 783
All-in sustaining cost (excluding stockpile write-offs) per unit – $/oz(3)
1,223
 843
 —
 1,038
 652
 973
 945
 —
 855
All-in cost per unit (excluding stockpile write-offs) – $/oz(3)
1,223
 848
 —
 1,070
 656
 1,015
 965
 —
 932


For the year ended 31 December 20182020
Operations in Australia, Argentina and Brazil
(in $ millions, except as otherwise noted)
AustraliaTotal
Australia		ArgentinaBrazilAmericas otherTotal Americas
Sunrise DamTropicanaAustralia otherCerro VanguardiaAngloGold Ashanti
Mineração		Serra Grande
Total cash costs
Cost of sales per segmental information(5)
342 338 25 705 269 391 102 2 764 
By-product revenue(1)(2)— (3)(82)(17)— — (99)
Inventory change(1)(1)— (2)(16)1 — — (16)
Amortisation of tangible assets(54)(86)— (141)(26)(100)(25)— (151)
Amortisation of right of use assets(10)(8)(1)(18)— (8)(2)(1)(11)
Amortisation of intangible assets— — (1)(1)— (1)— — (1)
Rehabilitation and other non-cash costs(2)(1)(1)(4)(13)4 3 (1)(6)
Retrenchment costs— — — — — (1)— — (2)
Total cash costs274 240 22 536 132 269 77 — 478 
Adjusted for non-controlling interests— — — — (10)— — — (10)
Total cash costs adjusted for non-controlling interests274 240 22 536 122 269 77 — 468 
Gold produced – oz (000) (2)
256 298 — 554 173 362 114 — 649 
Total cash costs per unit – $/oz(3)
1,069 807 — 968 699 747 665 — 721 




225
 Australia 
Total
Australia

 ARGENTINA Brazil Americas other
 TOTAL AMERICAS
 Sunrise Dam
 Tropicana
 Australia other
  Cerro Vanguardia
 
AngloGold Ashanti
Mineração

 Serra Grande
  
Total cash costs                 
Cost of sales per segmental information(5)310
 293
 19
 622
 325
 382
 129
 2
 838
By-product revenue—
 (2) —
 (2) (111) (17) —
 —
 (128)
Inventory change7
 5
 —
 12
 (7) (6) (3) —
 (16)
Amortisation of tangible and intangible assets(51) (92) (6) (149) (50) (99) (42) (1) (192)
Rehabilitation and other non-cash costs—
 (5) (1) (6) (10) 4
 2
 —
 (4)
Retrenchment costs—
 —
 —
 —
 (2) (1) —
 —
 (3)
Total cash costs net of by-product revenue266
 199
 12
 477
 145
 263
 86
 1
 495
Adjusted for non-controlling interests, non-gold producing companies and other(1)
—
 —
 —
 —
 (11) —
 —
 —
 (11)
Total cash costs net of by-product revenue adjusted for non-controlling interests and non-gold producing companies266
 199
 12
 477
 134
 263
 86
 1
 484
Gold produced – oz (000) (2)
289
 336
 —
 625
 282
 364
 130
 —
 776
Total cash costs per unit – $/oz(3)
920
 594
 —
 762
 476
 723
 660
 —
 624


For the year ended 31 December 20182020
AngloGold Ashanti operations – Total
(in $ millions, except as otherwise noted)
JOINT VENTURESSUBSIDIARIES EXCLUDING DISCONTINUED OPERATIONS
All-in sustaining costs
Cost of sales per segmental information(5)
340 2,699 
By-product revenue(1)(105)
Realised other commodity contracts— 5 
Amortisation of tangible, intangible and right of use assets(104)(570)
Adjusted for decommissioning and inventory amortisation1 4 
Corporate administration and marketing expenditure— 67 
Lease payment sustaining9 52 
Sustaining exploration and study costs— 15 
Total sustaining capital expenditure52 445 
All-in sustaining costs297 2,612 
Adjusted for non-controlling interests and non-gold producing companies(1)
— (67)
All-in sustaining costs adjusted for non-controlling interests and non-gold producing companies297 2,545 
All-in sustaining costs297 2,612 
Non-sustaining project capital expenditure— 260 
Non-sustaining lease payments— 2 
Non-sustaining exploration and study costs— 112 
Care and maintenance— — 
Closure and social responsibility costs not related to current operations4 29 
Other provisions— — 
All-in costs301 3,015 
Adjusted for non-controlling interests and non-gold producing companies(1)
— (70)
All-in costs adjusted for non-controlling interests and non-gold producing companies301 2,945 
Gold sold – oz (000)(2)
365 2,376 
All-in sustaining cost per unit – $/oz(3)
810 1,072 
All-in cost per unit – $/oz(3)
824 1,240 




226
 JOINT VENTURES
SUBSIDIARIES
All-in sustaining costs  
Cost of sales per segmental information(5)
480
3,173
By-product revenue(1)(138)
Amortisation of tangible and intangible assets(165)(630)
Adjusted for decommissioning and inventory amortisation4
(9)
Corporate administration and marketing related to current operations—
76
Inventory write-down to net realisable value and other stockpile adjustments—
1
Sustaining exploration and study costs—
38
Total sustaining capital expenditure56
515
Realised other commodity contracts—
(5)
All-in sustaining costs374
3,021
Adjusted for non-controlling interests and non-gold producing companies(1)
—
(64)
All-in sustaining costs adjusted for non-controlling interests and non-gold producing companies374
2,957
Adjusted for stockpile write-offs—
(1)
All-in sustaining costs adjusted for non-controlling interests, non-gold producing companies and stockpile write-offs374
2,956
All-in sustaining costs374
3,021
Non-sustaining project capital expenditure11
139
Technology improvements—
4
Non-sustaining exploration and study costs1
66
Care and maintenance costs—
74
Corporate and social responsibility costs not related to current operations—
24
Other provisions—
(2)
All-in costs386
3,326
Adjusted for non-controlling interests and non-gold producing companies(1)
—
(69)
All-in costs adjusted for non-controlling interests and non-gold producing companies386
3,257
Adjusted for stockpile write-offs—
(1)
All-in costs adjusted for non-controlling interests, non-gold producing companies and stockpile write-offs386
3,256
Gold sold – oz (000)(2)
459
2,953
All-in sustaining cost (excluding stockpile write-offs) per unit – $/oz(3)
820
1,000
All-in cost per unit (excluding stockpile write-offs) – $/oz(3)
846
1,102


For the year ended 31 December 20182020
AngloGold Ashanti operations – Total
(in $ millions, except as otherwise noted)
JOINT VENTURESSUBSIDIARIES EXCLUDING DISCONTINUED OPERATIONS
Total cash costs
Cost of sales per segmental information(5)
340 2,699 
By-product revenue(1)(105)
Inventory change(1)(21)
Amortisation of tangible assets(101)(520)
Amortisation of right of use assets(3)(47)
Amortisation of intangible assets— (3)
Rehabilitation and other non-cash costs(4)(32)
Retrenchment costs— (2)
Total cash costs230 1,969 
Adjusted for non-controlling interests(1)
— (59)
Total cash costs adjusted for non-controlling interests230 1,910 
Gold produced – oz (000)(2)
364 2,345 
Total cash costs (adjusted) per unit – $/oz(3)
629 815 




227
 JOINT VENTURES
SUBSIDIARIES
Total cash costs  
Cost of sales per segmental information(5)
480
3,173
By-product revenue(1)(138)
Inventory change(2)(14)
Amortisation of tangible and intangible assets(165)(630)
Rehabilitation and other non-cash costs(2)(20)
Retrenchment costs(2)(4)
Total cash costs net of by-product revenue308
2,367
Adjusted for non-controlling interests, non-gold producing companies and other(1)
—
(48)
Total cash costs net of by-product revenue adjusted for non-controlling interests and non-gold producing companies308
2,319
Gold produced – oz (000)(2)
452
2,948
Total cash costs (adjusted) per unit – $/oz(3)
680
787



For the year ended 31 December 20172019
Operations in South AfricaCorporate and other
(in $ millions, except as otherwise noted)
 Kopanang
 Moab Khotsong
 
Vaal River
Operations

 Mponeng
 Tau Tona
 West Wits Operations
 Surface Operations
 South Africa other
 Total South Africa (Operations)
 
Corporate (4)

All-in sustaining costs                   
Cost of sales per segmental information(5)
152
 284
 435
 284
 207
 491
 204
 (1) 1,129
 (2)
By-product revenue(5) (9) (14) (1) —
 (1) (1) —
 (15) —
Amortisation of tangible and intangible assets(9) (41) (50) (53) (14) (67) (14) (1) (133) (3)
Adjusted for decommissioning and inventory amortisation—
 —
 —
 —
 —
 —
 (2) 2
 —
 (3)
Corporate administration and marketing related to current operations—
 —
 —
 —
 —
 —
 —
 —
 —
 62
Inventory writedown to net realisable value and other stockpile adjustments—
 —
 —
 —
 —
 —
 —
 2
 2
 —
Sustaining exploration and study costs—
 —
 —
 —
 —
 —
 —
 —
 —
 1
Total sustaining capital expenditure8
 42
 50
 52
 12
 64
 13
 3
 130
 5
All-in sustaining costs146

276

421

282

205

487

200

5

1,113

60
Adjusted for non-controlling interests and non -gold producing companies(1)
—
 —
 —
 —
 —
 —
 —
 —
 —
 3
All-in sustaining costs adjusted for non-controlling interests and non-gold producing companies146
 276
 421
 282
 205
 487
 200
 5
 1,113
 64
Adjusted for stockpile write-offs—
 —
 —
 —
 —
 —
 —
 (2) (2) (1)
All-in sustaining costs adjusted for non-controlling interests, non-gold producing companies and stockpile write-offs146

276

421

282

205

487

200

3

1,111

63
All-in sustaining costs146
 276
 421
 282
 205
 487
 200
 5
 1,113
 60
Non-sustaining project capital expenditure—
 —
 —
 20
 —
 20
 —
 —
 20
 —
Technology improvements—
 —
 —
 —
 —
 —
 —
 9
 9
 1
Non-sustaining exploration and study costs—
 —
 —
 —
 —
 —
 —
 —
 —
 1
Care and maintenance—
 —
 —
 —
 —
 —
 —
 —
 —
 —
Corporate and social responsibility costs not related to current operations—
 —
 —
 —
 —
 —
 —
 —
 —
 10
All-in costs146

276

421

302

205

507

200

14

1,142

72
Adjusted for non-controlling interests and non -gold producing companies(1)
—
 —
 —
 —
 —
 —
 —
 —
 —
 4
All-in costs adjusted for non-controlling interests and non-gold producing companies146
 276
 421
 302
 205
 507
 200
 14
 1,142
 76
Adjusted for stockpile write-offs—
 —
 —
 —
 —
 —
 —
 (2) (2) (1)
All-in costs adjusted for non-controlling interests, non-gold producing companies and stockpile write-offs146
 276
 421
 302
 205
 507
 200
 12
 1,140
 75
Gold sold - oz (000)(2)
91
 294
 385
 224
 91
 316
 192
 —
 892
 —
All-in sustaining cost (excluding stockpile write-offs) per unit - $/oz(3)
1,593
 938
 1,094
 1,259
 2,242
 1,544
 1,045
 —
 1,245
 —
All-in cost per unit (excluding stockpile write-offs) - $/oz(3)
1,593
 939
 1,094
 1,349
 2,242
 1,607
 1,045
 —
 1,278
 —
Corporate (4)
All-in sustaining costs
(1)Cost of sales per segmental information(5)
Adjusting(1)
By-product revenue—
Realised other commodity contracts—
Amortisation of tangible, intangible and right of use assets(3)
Adjusted for non-controlling interest of items included in calculation, to disclose the attributable portions only. Other consists of heap leach inventory.decommissioning and inventory amortisation(1)
Corporate administration and marketing expenditure82
Lease payment sustaining5
Sustaining exploration and study costs1
Total sustaining capital expenditure—
(2)
All-in sustaining costs		Attributable portion.
83
(3)Adjusted for non-controlling interests and non -gold producing companies(1)
In addition—
All-in sustaining costs adjusted for non-controlling interests and non-gold producing companies82
All-in sustaining costs83
Non-sustaining project capital expenditure—
Non-sustaining lease payments—
Non-sustaining exploration and study costs(1)
Care and maintenance—
Closure and social responsibility costs not related to the operational performances of the mines, all-incurrent operations7
Other provisions2
All-in costs91
Adjusted for non-controlling interests and non -gold producing companies(1)
—
All-in costs adjusted for non-controlling interests and non-gold producing companies90
Gold sold - oz (000)(2)
—
All-in sustaining cost per ounce, all-in cost per ounce and total cash costs per ounce are affected by fluctuations in the currency exchange rate. AngloGold Ashanti reports all-in sustaining cost per ounce and all-in cost per ounce calculated to the nearest US dollar amount and gold sold in ounces. AngloGold Ashanti reports total cash costs per ounce calculated to the nearest US dollar amount and gold produced in ounces.unit – $/oz(3)
—
(4)All-in cost per unit – $/oz(3)
Corporate includes non-gold producing subsidiaries.
(5)
Refer to “Item 18: Financial Statements – Note 2 – Segmental Information”.—

(1)Adjusting for non-controlling interest of items included in calculation, to disclose the attributable portions only.
(2)Attributable portion (excluding pre-production ounces).
(3)In addition to the operational performances of the mines, “all-in sustaining cost per ounce”, “all-in cost per ounce” and “total cash costs per ounce” are affected by fluctuations in the currency exchange rate. AngloGold Ashanti reports “all-in sustaining cost per ounce” and “all-in cost per ounce” calculated to the nearest US dollar amount and gold sold in ounces. AngloGold Ashanti reports “total cash costs per ounce” calculated to the nearest US dollar amount and gold produced in ounces.
(4)Corporate includes non-gold producing subsidiaries.
(5)Refer to “Item 18: Financial Statements—Note 2—Segmental Information”.

Rounding of figures may result in computational discrepancies.







228

For the year ended 31 December 20172019
Operations in South AfricaCorporate and other
(in $ millions, except as otherwise noted)
Corporate (4)
Total cash costs
Cost of sales per segmental information(5)
(1)
By-product revenue—
Inventory change4
Amortisation of intangible assets—
Amortisation of right of use assets(3)
Amortisation of tangible assets—
Rehabilitation and other non-cash costs—
Retrenchment costs—
Total cash costs1
Adjusted for non-controlling interests(1)
—
Total cash costs adjusted for non-controlling interests1
Gold produced - oz (000) (2)
—
Total cash costs (adjusted) per unit – $/oz(3)
—
(1)Adjusting for non-controlling interest of items included in calculation, to disclose the attributable portions only.
(2)Attributable portion (excluding pre-production ounces).
(3)In addition to the operational performances of the mines, “all-in sustaining cost per ounce”, “all-in cost per ounce” and “total cash costs per ounce” are affected by fluctuations in the currency exchange rate. AngloGold Ashanti reports “all-in sustaining cost per ounce” and “all-in cost per ounce” calculated to the nearest US dollar amount and gold sold in ounces. AngloGold Ashanti reports “total cash costs per ounce” calculated to the nearest US dollar amount and gold produced in ounces.
(4)Corporate includes non-gold producing subsidiaries.
(5)Refer to “Item 18: Financial Statements—Note 2—Segmental Information”.

Rounding of figures may result in computational discrepancies.




229
 Kopanang
 Moab Khotsong
 
Vaal River
Operations

 Mponeng
 Tau Tona
 West Wits Operations
 Surface Operations
 South Africa other
 Total South Africa (Operations)
 
Corporate (4)

Total cash costs                   
Cost of sales per segmental information(5)
152
 284
 435
 284
 207
 491
 204
 (1) 1,129
 (2)
By-product revenue(5) (9) (14) (1) —
 (1) (1) —
 (15) —
Inventory change—
 —
 1
 —
 —
 —
 (2) —
 (2) 1
Amortisation of intangible assets—
 (1) (1) (1) —
 (1) —
 —
 (2) (1)
Amortisation of tangible assets(9) (40) (49) (52) (14) (67) (14) (1) (131) (3)
Rehabilitation and other non-cash costs3
 (5) (3) (3) (6) (9) (1) —
 (12) 1
Retrenchment costs—
 —
 —
 —
 —
 —
 —
 —
 —
 —
Total cash costs net of by-product revenue140
 229
 369
 227
 186
 413
 186
 (2) 967
 (5)
Adjusted for non-controlling interests, non-gold producing companies and other(1)
—
 —
 —
 —
 —
 —
 —
 —
 —
 4
Total cash costs net of by-product revenue adjusted for non-controlling interests and non-gold producing companies140
 229
 369
 227
 186
 413
 186
 (2) 967
 (1)
Gold produced – oz (000) (2)
91
 294
 386
 224
 91
 315
 192
 —
 892
 —
Total cash costs per unit –
$/oz(3)
1,534
 779
 958
 1,014
 2,044
 1,311
 969
 —
 1,085
 —


For the year ended 31 December 20172019
Operations in South Africa (Discontinued operations)
(in $ millions, except as otherwise noted)
MponengWest Wits OperationsSurface OperationsSouth Africa otherTotal South Africa (Operations)
All-in sustaining costs
Cost of sales per segmental information(5)
287 287 189 3 479 
By-product revenue— — ——(1)
Realised other commodity contracts— — ——— 
Amortisation of tangible and intangible assets and right of use assets(47)(47)(13)(1)(61)
Adjusted for decommissioning and inventory amortisation— — ——1 
Inventory writedown to net realisable value and other stockpile adjustments— — (3)(3)(6)
Total sustaining capital expenditure47 47 73 57 
All-in sustaining costs287 287 180 2 469 
All-in sustaining costs287 289 180 2 469 
Non-sustaining project capital expenditure2 — ——2 
Care and maintenance— — —4242 
All-in costs289 289 18044 513 
Gold sold - oz (000)(2)
242 242 172 — 414 
All-in sustaining cost per unit - $/oz(3)
1,186 1,187 1,043 — 1,132 
All-in cost per unit - $/oz(3)
1,197 1,198 1,043 — 1,240 




230

For the year ended 31 December 2019
Operations in South Africa (Discontinued operations)
(in $ millions, except as otherwise noted)
MponengWest Wits OperationsSurface OperationsSouth Africa otherTotal South Africa (Operations)
Total cash costs
Cost of sales per segmental information(5)
287 287 189 3 479 
By-product revenue— —— — (1)
Inventory change3 3(1)— 2 
Amortisation of tangible assets(47)(47)(13)(1)(61)
Amortisation of right of use assets— —— — — 
Amortisation of intangible assets— —— — — 
Rehabilitation and other non-cash costs(2)(2)(2)(2)(6)
Retrenchment costs(2)(2)— — (2)
Total cash costs239 239 173 — 411 
Gold produced - oz (000)(2)
244 244 175 — 419 
Total cash costs per unit - $/oz(3)
976 976 987 — 981 




231

For the year ended 31 December 2019
Operations in DRC, Ghana, Guinea, Mali and Tanzania
(in $ millions, except as otherwise noted)
DRCMaliJointGhanaGuineaTanzaniaAfrica otherSubsidiaries
KibaliMorilaSadiolaVenturesIduapriemObuasiSiguiriGeita
All-in sustaining costs
Cost of sales per segmental information(5)
338 36 54 428 288 — 315 571 (1)1,173 
By-product revenue(1)— — (1)(1)— — (1)— (2)
Realised other commodity contracts— — — — — — — — — — 
Amortisation of tangible, intangible and right of use assets(130)(3)(4)(137)(58)— (38)(133)(1)(230)
Adjusted for decommissioning and inventory amortisation1 1 — 2 1 — — 3 1 4 
Corporate administration and marketing expenditure— — — — — — — — — — 
Lease payment sustaining— — — — — — — 19 — 19 
Sustaining exploration and study costs— — — — 3 — 3 6 (1)12 
Total sustaining capital expenditure46 — — 46 16 — 15 75 — 107 
All-in sustaining costs254 34 50 338 249 — 295 540 (1)1,083 
Adjusted for non-controlling interests and non -gold producing companies(1)
— — — — — — (44)— — (44)
All-in sustaining costs adjusted for non-controlling interests and non-gold producing companies254 34 50 338 249 — 251 540 (1)1,039 
All-in sustaining costs254 34 50 338 249 — 295 540 (1)1,083 
Non-sustaining project capital expenditure5 — — 5 — 246 6 — — 252 
Non-sustaining lease payments— — — — — — — 1 — 1 
Non-sustaining exploration and study costs5 — — 4 1 — 4 4 1 10 
Care and maintenance— — — — — 48 — — (1)47 
Closure and social responsibility costs not related to current operations1 — — — 2 — 9 — — 11 
Other provisions— — — — — — — — — — 
All-in costs265 34 49 347 252 294 314 545 (1)1,404 
Adjusted for non-controlling interests and non -gold producing companies(1)
— — — — — — (47)— — (47)
All-in costs adjusted for non-controlling interests and non-gold producing companies265 34 49 347 252 294 267 545 (1)1,357 
Gold sold - oz (000)(2)
362 28 52 442 280 — 213 604 — 1,096 
All-in sustaining cost per unit – $/oz(3)
704 1,237 956 767 890 — 1,176 894 — 947 
All-in cost per unit – $/oz(3)
734 1,237 930 785 900 — 1,252 903 — 1,237 




232
 DRC MALIJOINT GHANA GUINEATANZANIA Continental Africa other
 SUBSIDIARIES
 Kibali
 Morila
 Sadiola
VENTURES Iduapriem
 Obuasi
 Siguiri
Geita
  
All-in sustaining costs                 
Cost of sales per segmental information(5)
340
 34
 67
441
 210
 (6) 344
520
 3
 1,071
By-product revenue(1) —
 —
(1) —
 —
 —
(1) —
 (2)
Amortisation of tangible and intangible assets(120) (6) (10)(136) (28) —
 (57)(197) (3) (285)
Adjusted for decommissioning and inventory amortisation—
 3
 —
3
 1
 —
 1
2
 —
 4
Corporate administration and marketing related to current operations—
 —
 —
—
 —
 —
 —
—
 —
 —
Inventory writedown to net realisable value and other stockpile adjustments—
 —
 —
—
 —
 —
 —
—
 —
 —
Sustaining exploration and study costs—
 —
 1
1
 —
 —
 8
17
 —
 25
Total sustaining capital expenditure77
 2
 6
85
 51
 —
 15
156
 1
 223
All-in sustaining costs296
 33
 64
393
 234
 (6) 311
497
 2
 1,037
Adjusted for non-controlling interests and non -gold producing companies(1)
—
 —
 —
—
 —
 —
 (47)—
 —
 (47)
All-in sustaining costs adjusted for non-controlling interests and non-gold producing companies296
 33
 64
393
 234
 (6) 264
497
 2
 990
Adjusted for stockpile write-offs—
 —
 —
—
 —
 —
 —
—
 —
 —
All-in sustaining costs adjusted for non-controlling interests, non-gold producing companies and stockpile write-offs296
 33
 64
393
 234
 (6) 264
497
 2
 990
All-in sustaining costs296
 33
 64
393
 234
 (6) 311
497
 2
 1,037
Non-sustaining project capital expenditure34
 —
 1
35
 —
 —
 67
—
 —
 67
Technology improvements—
 —
 —
—
 —
 —
 —
—
 —
 —
Non-sustaining exploration and study costs1
 —
 —
1
 —
 1
 —
—
 —
 1
Care and maintenance costs—
 —
 —
—
 —
 62
 —
—
 —
 62
Corporate and social responsibility costs not related to current operations—
 —
 —
—
 —
 —
 —
—
 —
 —
All-in costs331
 33
 65
429
 234
 57
 378
497
 2
 1,167
Adjusted for non-controlling interests and non -gold producing companies(1)
—
 —
 —
—
 —
 —
 (57)—
 —
 (57)
All-in costs adjusted for non-controlling interests and non-gold producing companies331
 33
 65
429
 234
 57
 321
497
 2
 1,110
Adjusted for stockpile write-offs—
 —
 —
—
 —
 —
 —
—
 —
 —
All-in costs adjusted for non-controlling interests, non-gold producing companies and stockpile write-offs331
 33
 65
429
 234
 57
 321
497
 2
 1,110
Gold sold – oz (000)(2)
272
 27
 63
362
 227
 3
 332
528
 —
 1,090
All-in sustaining cost (excluding stockpile write-offs) per unit –
$/oz(3)
1,090
 1,218
 1,019
1,087
 1,033
 —
 796
941
 —
 909
All-in cost per unit (excluding stockpile write-offs) – $/oz(3)
1,216
 1,218
 1,044
1,186
 1,033
 —
 967
941
 —
 1,019


For the year ended 31 December 20172019
Operations in DRC, Ghana, Guinea, Mali and Tanzania
(in $ millions, except as otherwise noted)
DRCMaliJointGhanaGuineaTanzaniaAfrica otherSubsidiaries
KibaliMorilaSadiolaVenturesIduapriemObuasiSiguiriGeita
Total cash costs
Cost of sales per segmental information(5)
338 36 54 428 288 — 315 571 (1)1,173 
By-product revenue(1)— — (1)(1)— — (1)— (2)
Inventory change4 (1)— 3 (5)— 1 (9)1 (12)
Amortisation of intangible assets(129)(2)(4)(135)(57)— (38)(114)— (209)
Amortisation of right of use assets(1)(1)— (2)— — — (18)(1)(19)
Amortisation of tangible assets— — — — (1)— — (1)— (2)
Rehabilitation and other non-cash costs(1)1 — (1)— — (5)(8)(2)(14)
Retrenchment costs— — — — — — — — — — 
Total cash costs210 33 50 292 224 — 273 420 (2)915 
Adjusted for non-controlling interests(1)
— — — — — — (41)— — (41)
Total cash costs adjusted for non-controlling interests210 33 50 292 224 — 232 420 (2)874 
Gold produced - oz (000) (2)
366 27 51 445 275 — 213 604 — 1,091 
Total cash costs per unit - $/oz(3)
572 1,205 966 657 815 — 1,091 695 — 801 




233
 DRC MALI JOINT GHANA GUINEA TANZANIA Continental Africa other
 SUBSIDIARIES
 Kibali
 Morila
 Sadiola
 VENTURES Iduapriem
 Obuasi
 Siguiri
 Geita
  
Cash costs                   
Cost of sales per segmental information(5)
340
 34
 67
 441
 210
 (6) 344
 520
 3
 1,071
By-product revenue(1) —
 —
 (1) —
 —
 —
 (1) —
 (2)
Inventory change(4) —
 1
 (3) —
 —
 (7) 13
 1
 6
Amortisation of intangible assets—
 —
 —
 —
 (1) —
 —
 —
 (2) (3)
Amortisation of tangible assets(120) (6) (10) (136) (28) —
 (57) (197) (1) (282)
Rehabilitation and other non-cash costs(5) (1) —
 (6) 7
 7
 (5) (7) 1
 2
Retrenchment costs—
 —
 —
 —
 —
 —
 —
 —
 —
 —
Total cash costs net of by-product revenue210
 27
 58
 295
 188
 1
 275
 328
 3
 793
Adjusted for non-controlling interests, non-gold producing companies and other(1)
—
 —
 —
 —
 —
 —
 (41) —
 —
 (41)
Total cash costs net of by-product revenue adjusted for non-controlling interests and non-gold producing companies210
 27
 58
 295
 188
 1
 234
 328
 3
 752
Gold produced - oz (000) (2)
268
 28
 63
 360
 228
 3
 323
 539
 —
 1,094
Total cash costs per unit - $/oz(3)
784
 974
 900
 819
 823
 —
 725
 608
 —
 688


For the year ended 31 December 20172019
Operations in Australia, Argentina and Brazil
(in $ millions, except as otherwise noted)
AustraliaTOTAL AUSTRALIAArgentinaBrazilAmericas otherTotal Americas
Sunrise DamTropicanaAustralia otherCerro VanguardiaAngloGold Ashanti
Mineração		Serra Grande
All-in sustaining costs
Cost of sales per segmental information(5)
318 297 17 632 274 417 130 1 822 
By-product revenue— (2)— (3)(61)(20)— (1)(81)
Realised other commodity contracts— — — — — — — — — 
Amortisation of tangible, intangible and right of use assets(56)(111)(7)(173)(40)(103)(34)— (177)
Adjusted for decommissioning and inventory amortisation2 — — 2 (3)(3)— 2 (5)
Corporate administration and marketing expenditure— — — — — — — — — 
Lease payment sustaining8 4 8 20 — 7 — — 7 
Sustaining exploration and study costs4 — — 4 1 8 5 — 14 
Total sustaining capital expenditure43 83 — 126 33 91 34 — 157 
All-in sustaining costs319 271 18 609 204 397 136 2 737 
Adjusted for non-controlling interests and non -gold producing companies(1)
— — — — (15)— — — (15)
All-in sustaining costs adjusted for non-controlling interests and non-gold producing companies319 271 18 609 189 397 136 2 722 
All-in sustaining costs319 271 18 609 204 397 136 2 737 
Non-sustaining project capital expenditure— 23 — 23 — — — 38 38 
Non-sustaining lease payments— — — — — — — — — 
Non-sustaining exploration and study costs5 4 18 27 1 3 1 44 49 
Care and maintenance— — — — — — — — — 
Closure and social responsibility costs not related to current operations— — — — — 17 3 — 20 
Other provisions— — — — — — — — — 
All-in costs324 298 36 659 205 418 140 83 844 
Adjusted for non-controlling interests and non -gold producing companies(1)
— — — — (15)— — — (15)
All-in costs adjusted for non-controlling interests and non-gold producing companies324 298 36 659 190 418 140 83 829 
Gold sold - oz (000)(2)
256 358 — 614 219 358 122 — 700 
All-in sustaining cost per unit - $/oz(3)
1,246 757 — 990 859 1,107 1,105 — 1,032 
All-in cost per unit - $/oz(3)
1,266 830 — 1,072 863 1,164 1,141 — 1,183 




234
 Australia 
Total
Australia

 ARGENTINA Brazil Americas other
 TOTAL AMERICAS
Sunrise Dam
 Tropicana
 Australia other
  Cerro Vanguardia
 
AngloGold Ashanti
Mineração

 Serra Grande
  
All-in sustaining costs                 
Cost of sales per segmental information(5)
260
 276
 15
 551
 385
 447
 153
 3
 987
By-product revenue—
 (2) —
 (2) (117) (18) —
 —
 (135)
Amortisation of tangible and intangible assets(34) (89) (7) (130) (83) (140) (50) —
 (273)
Adjusted for decommissioning and inventory amortisation—
 1
 —
 1
 1
 (1) —
 —
 —
Corporate administration and marketing related to current operations—
 —
 —
 —
 —
 1
 —
 —
 1
Inventory writedown to net realisable value and other stockpile adjustments—
 —
 1
 1
 —
 —
 —
 —
 —
Sustaining exploration and study costs2
 7
 5
 14
 3
 8
 6
 7
 24
Total sustaining capital expenditure62
 91
 —
 153
 56
 134
 38
 4
 232
All-in sustaining costs290
 284
 14
 588
 245
 431
 147
 14
 836
Adjusted for non-controlling interests and non -gold producing companies(1)
—
 —
 8
 8
 (18) —
 —
 (11) (29)
All-in sustaining costs adjusted for non-controlling interests and non-gold producing companies290
 284
 22
 596
 227
 431
 147
 3
 807
Adjusted for stockpile write-offs—
 —
 —
 —
 —
 —
 —
 —
 —
All-in sustaining costs adjusted for non-controlling interests, non-gold producing companies and stockpile write-offs290
 284
 22
 596
 227
 431
 147
 3
 807
All-in sustaining costs290
 284
 14
 588
 245
 431
 147
 14
 836
Non-sustaining project capital expenditure—
 —
 —
 —
 —
 2
 —
 —
 2
Technology improvements—
 —
 —
 —
 —
 —
 —
 —
 —
Non-sustaining exploration and study costs—
 —
 10
 10
 2
 7
 —
 28
 37
Care and maintenance—
 —
 —
 —
 —
 —
 —
 —
 —
Corporate and social responsibility costs not related to current operations—
 —
 —
 —
 —
 12
 2
 1
 15
All-in costs290
 284
 24
 598
 247
 452
 149
 42
 890
Adjusted for non-controlling interests and non -gold producing companies(1)
—
 —
 8
 8
 (19) —
 —
 (1) (19)
All-in costs adjusted for non-controlling interests and non-gold producing companies290
 284
 32
 606
 228
 452
 149
 42
 871
Adjusted for stockpile write-offs—
 —
 —
 —
 —
 —
 —
 —
 —
All-in costs adjusted for non-controlling interests, non-gold producing companies and stockpile write-offs290
 284
 32
 606
 228
 452

149

42
 871
Gold sold – oz (000)(2)
241
 321
 —
 562
 293
 428
 133
 —
 854
All-in sustaining cost (excluding stockpile write-offs) per unit – $/oz(3)
1,203
 885
 —
 1,062
 772
 1,006
 1,103
 —
 943
All-in cost per unit (excluding stockpile write-offs) – $/oz(3)
1,203
 885
 —
 1,080
 780
 1,055
 1,119
 —
 1,018


For the year ended 31 December 20172019
Operations in Australia, Argentina and Brazil
(in $ millions, except as otherwise noted)
AustraliaTOTAL AUSTRALIAArgentinaBrazilAmericas otherTotal America
Sunrise DamTropicanaAustralia otherCerro VanguardiaAngloGold Ashanti
Mineração		Serra Grande
Total cash costs
Cost of sales per segmental information(5)
318 297 17 632 274 417 131 1 822 
By-product revenue— (3)— (3)(61)(20)— (1)(81)
Inventory change(1)(1)— (2)3 (1)— — 2 
Amortisation of tangible assets(49)(107)(1)(156)(40)(97)(34)— (170)
Amortisation of right of use assets(7)(4)(6)(16)— (6)— — (6)
Amortisation of intangible assets— — — (1)— — — — (1)
Rehabilitation and other non-cash costs(3)(1)(1)(5)(11)(12)(10)— (33)
Retrenchment costs— — — (1)(1)(2)— (1)(3)
Total cash costs258 181 9 448 164 279 87 (2)530 
Adjusted for non-controlling interests(1)
— — — — (12)— — — (12)
Total cash costs adjusted for non-controlling interests258 181 9 448 152 279 87 (2)518 
Gold produced - oz (000) (2)
254 360 — 614 225 362 123 — 710 
Total cash costs per unit - $/oz(3)
1,014 504 — 730 673 782 707 — 736 




235
 Australia 
Total
Australia

 ARGENTINA Brazil Americas other
 TOTAL AMERICAS
 Sunrise Dam
 Tropicana
 Australia other
  Cerro Vanguardia
 
AngloGold Ashanti
Mineração

 Serra Grande
  
Cash costs                 
Cost of sales per segmental information(5)
260
 276
 15
 551
 385
 447
 153
 3
 987
By-product revenue—
 (2) —
 (2) (117) (18) —
 —
 (135)
Inventory change(2) (2) —
 (4) (12) (3) —
 —
 (15)
Amortisation of intangible assets—
 —
 —
 —
 —
 (1) —
 —
 (1)
Amortisation of tangible assets(34) (89) (7) (130) (83) (139) (50) —
 (272)
Rehabilitation and other non-cash costs(5) (2) (2) (9) (11) —
 —
 —
 (11)
Retrenchment costs—
 —
 —
 —
 (2) (3) (1) —
 (5)
Total cash costs net of by-product revenue219
 181
 6
 406
 160
 284
 101
 3
 548
Adjusted for non-controlling interests, non-gold producing companies and other(1)
—
 —
 8
 8
 (12) —
 —
 —
 (12)
Total cash costs net of by-product revenue adjusted for non-controlling interests and non-gold producing companies219
 181
 14
 414
 148
 284
 101
 3
 536
Gold produced – oz (000) (2)
238
 322
 —
 559
 283
 424
 133
 —
 840
Total cash costs per unit – $/oz(3)
919
 564
 —
 743
 522
 671
 764
 —
 638


For the year ended 31 December 20172019
AngloGold Ashanti operations – Total
(in $ millions, except as otherwise noted)
JOINT VENTURESSUBSIDIARIES EXCLUDING DISCONTINUED OPERATIONS
All-in sustaining costs
Cost of sales per segmental information(5)
428 2,626 
By-product revenue(1)(86)
Realised other commodity contracts— — 
Amortisation of tangible, intangible and right of use assets(137)(583)
Adjusted for decommissioning and inventory amortisation2 1 
Corporate administration and marketing expenditure— 82 
Lease payment sustaining— 51 
Sustaining exploration and study costs— 31 
Total sustaining capital expenditure46 390 
All-in sustaining costs338 2,512 
Adjusted for non-controlling interests and non-gold producing companies(1)
— (60)
All-in sustaining costs adjusted for non-controlling interests and non-gold producing companies338 2,452 
All-in sustaining costs338 2,512 
Non-sustaining project capital expenditure5 313 
Non-sustaining lease payments— 1 
Non-sustaining exploration and study costs4 85 
Care and maintenance— 47 
Closure and social responsibility costs not related to current operations— 38 
Other provisions— 2 
All-in costs347 2,998 
Adjusted for non-controlling interests and non-gold producing companies(1)
— (62)
All-in costs adjusted for non-controlling interests and non-gold producing companies347 2,936 
Gold sold - oz (000)(2)
442 2,410 
All-in sustaining cost per unit - $/oz(3)
767 1,017 
All-in cost per unit - $/oz(3)
785 1,218 




236

 JOINT VENTURES
SUBSIDIARIES
All-in sustaining costs  
Cost of sales per segmental information(5)
441
3,736
By-product revenue(1)(154)
Amortisation of tangible and intangible assets(136)(823)
Adjusted for decommissioning and inventory amortisation3
3
Corporate administration and marketing related to current operations—
63
Inventory writedown to net realisable value and other stockpile adjustments—
3
Sustaining exploration and study costs1
64
Total sustaining capital expenditure85
744
All-in sustaining costs393
3,636
Adjusted for non-controlling interests and non-gold producing companies(1)
—
(64)
All-in sustaining costs adjusted for non-controlling interests and non-gold producing companies393
3,572
Adjusted for stockpile write-offs—
(3)
All-in sustaining costs adjusted for non-controlling interests, non-gold producing companies and stockpile write-offs393
3,569
All-in sustaining costs393
3,636
Non-sustaining project capital expenditure35
89
Technology improvements—
10
Non-sustaining exploration and study costs1
49
Care and maintenance costs—
62
Corporate and social responsibility costs not related to current operations—
24
All-in costs429
3,870
Adjusted for non-controlling interests and non-gold producing companies(1)
—
(63)
All-in costs adjusted for non-controlling interests and non-gold producing companies429
3,807
Adjusted for stockpile write-offs—
(3)
All-in costs adjusted for non-controlling interests, non-gold producing companies and stockpile write-offs429
3,804
Gold sold – oz (000)(2)
362
3,399
All-in sustaining cost (excluding stockpile write-offs) per unit – $/oz(3)
1,087
1,050
All-in cost per unit (excluding stockpile write-offs) – $/oz(3)
1,186
1,119


For the year ended 31 December 20172019
AngloGold Ashanti operations – Total
(in $ millions, except as otherwise noted)
JOINT VENTURESSUBSIDIARIES EXCLUDING DISCONTINUED OPERATIONS
Total cash costs
Cost of sales per segmental information(5)
428 2,626 
By-product revenue(1)(86)
Inventory change3 (5)
Amortisation of tangible assets(135)(540)
Amortisation of right of use assets(2)(43)
Amortisation of intangible assets— — 
Rehabilitation and other non-cash costs(1)(53)
Retrenchment costs— (4)
Total cash costs292 1,895 
Adjusted for non-controlling interests(1)
— (53)
Total cash costs adjusted for non-controlling interests292 1,841 
Gold produced - oz (000)(2)
445 2,415 
Total cash costs (adjusted) per unit - $/oz(3)
657 763 




237
 JOINT VENTURES
SUBSIDIARIES
Cash costs  
Cost of sales per segmental information(5)
441
3,736
By-product revenue(1)(154)
Inventory change(3)(15)
Amortisation of intangible assets—
(6)
Amortisation of tangible assets(136)(817)
Rehabilitation and other non-cash costs(6)(29)
Retrenchment costs—
(6)
Total cash costs net of by-product revenue295
2,709
Adjusted for non-controlling interests, non-gold producing companies and other(1)
—
(41)
Total cash costs net of by product revenue adjusted for non-controlling interests and non-gold producing companies295
2,668
Gold produced – oz (000)(2)
360
3,384
Total cash costs (adjusted) per unit – $/oz(3)
819
789

For the year ended 31 December 2016
Operations in South Africa
(in $ millions, except as otherwise noted)

 Kopanang
 Moab Khotsong
 
Vaal River
Operations

 Mponeng
 Tau Tona
 West Wits Operations
 Surface Operations
 South Africa other
 Total South Africa (Operations)
 
Corporate (4)

All-in sustaining costs                   
Cost of sales per segmental information(5)
151
 270
 421
 259
 198
 458
 185
 —
 1,064
 6
By-product revenue(7) (15) (21) —
 —
 (1) —
 (1) (23) —
Amortisation of tangible and intangible assets(20) (49) (69) (55) (28) (83) (14) (1) (167) (4)
Adjusted for decommissioning and inventory amortisation—
 —
 (1) —
 —
 —
 (2) 2
 —
 1
Corporate administration and marketing related to current operations—
 —
 —
 —
 —
 —
 —
 —
 —
 59
Inventory writedown to net realisable value and other stockpile adjustments—
 —
 —
 —
 —
 —
 —
 4
 5
 1
Sustaining exploration and study costs—
 —
 —
 —
 —
 —
 —
 —
 —
 1
Total sustaining capital expenditure16
 41
 57
 52
 25
 77
 17
 6
 157
 5
All-in sustaining costs140

247

387

256

195

451

186

11

1,036

65
Adjusted for non-controlling interests and non -gold producing companies(1)
—
 —
 —
 —
 —
 —
 —
 —
 —
 —
All-in sustaining costs adjusted for non-controlling interests and non-gold producing companies140

247

387

256

195

451

186

11

1,036

64
Adjusted for stockpile write-offs—
 —
 —
 —
 —
 —
 —
 (4) (5) —
All-in sustaining costs adjusted for non-controlling interests, non-gold producing companies and stockpile write-offs140

247

387

256

195

451

186

6

1,031

64
All-in sustaining costs140
 247
 387
 256
 195
 451
 186
 11
 1,036
 65
Non-sustaining project capital expenditure—
 2
 2
 24
 —
 24
 —
 —
 25
 —
Technology improvements—
 —
 —
 —
 —
 —
 —
 14
 14
 —
Non-sustaining exploration and study costs—
 —
 —
 —
 —
 —
 —
 —
 —
 1
Care and maintenance—
 —
 —
 —
 —
 —
 —
 —
 —
 —
Corporate and social responsibility costs not related to current operations—
 —
 —
 —
 —
 —
 —
 —
 —
 25
All-in costs140

249

389

280

195

475

186

25

1,075

89
Adjusted for non-controlling interests and non -gold producing companies(1)
—
 —
 —
 —
 —
 —
 —
 —
 —
 1
All-in costs adjusted for non-controlling interests and non-gold producing companies140

249

389

280

195

475

186

25

1,075

90
Adjusted for stockpile write-offs—
 —
 —
 —
 —
 —
 —
 (4) (5) —
All-in costs adjusted for non-controlling interests, non-gold producing companies and stockpile write-offs140

249

389

280

195

475

186

20

1,070

89
Gold sold - oz (000)(2)
91
 279
 369
 253
 146
 398
 185
 —
 953
 —
All-in sustaining cost (excluding stockpile write-offs) per unit – $/oz(3)
1,555
 884
 1,049
 1,011
 1,345
 1,133
 1,004
 —
 1,081
 —
All-in cost per unit (excluding stockpile write-offs) – $/oz(3)
1,555
 890
 1,053
 1,105
 1,345
 1,193
 1,004
 —
 1,122
 —
(1)
Adjusting for non-controlling interest of items included in calculation, to disclose the attributable portions only. Other consists of heap leach inventory.
(2)
Attributable portion.
(3)
In addition to the operational performances of the mines, all-in sustaining cost per ounce, all-in cost per ounce, total cash costs per ounce per ounce are affected by fluctuations in the currency exchange rate. AngloGold Ashanti reports all-in sustaining cost per ounce and all-in cost per ounce calculated to the nearest US dollar amount and gold sold in ounces. AngloGold Ashanti reports total cash costs per ounce calculated to the nearest US dollar amount and gold produced in ounces.
(4)
Corporate includes non-gold producing subsidiaries.
(5)
Refer to “Item 18: Financial Statements – Note 2 – Segmental Information”.

5B.    LIQUIDITY AND CAPITAL RESOURCES
Rounding of figures may result in computational discrepancies.



For the year ended 31 December 2016
Operations in South Africa
(in $ millions, except as otherwise noted)
 Kopanang
 Moab Khotsong
 
Vaal River
Operations

 Mponeng
 Tau Tona
 West Wits Operations
 Surface Operations
 South Africa other
 Total South Africa (Operations)
 
Corporate (4)

Cash costs                   
Cost of sales per segmental information(5)
151
 270
 421
 259
 198
 458
 185
 —
 1,064
 6
By-product revenue(7) (15) (21) —
 —
 (1) —
 (1) (23) —
Inventory change—
 1
 1
 1
 —
 1
 (1) —
 1
 1
Amortisation of intangible assets—
 (2) (2) (1) (1) (2) (1) (1) (6) (2)
Amortisation of tangible assets(19) (48) (67) (54) (27) (81) (13) —
 (161) (3)
Rehabilitation and other non-cash costs(2) 1
 (2) (4) (1) (5) (3) 3
 (7) (1)
Retrenchment costs(2) (3) (5) (3) (2) (5) —
 —
 (11) —
Total cash costs net of by-product revenue121
 204
 325
 198
 167
 365
 167
 1
 857
 —
Adjusted for non-controlling interests, non-gold producing companies and other(1)
—
 —
 —
 —
 —
 —
 —
 —
 —
 —
Total cash costs net of by-product revenue adjusted for non-controlling interests and non-gold producing companies121

204

325

198

167

365

167

1

857

(1)
Gold produced - oz (000) (2)
91
 280
 371
 254
 146
 399
 186
 —
 957
 —
Total cash costs per unit –
$/oz(3)
1,324
 729
 875
 779
 1,148
 914
 899
 —
 896
 —

For the year ended 31 December 2016
Operations in DRC, Ghana, Guinea, Mali and Tanzania
(in $ millions, except as otherwise noted)
 DRC MALIJOINT GHANA GUINEA TANZANIA Continental Africa other
 SUBSIDIARIES
 Kibali
 Morila
 Sadiola
VENTURES Iduapriem
 Obuasi
 Siguiri
 Geita
  
All-in sustaining costs                  
Cost of sales per segmental information(5)
292
 32
 81
407
 219
 1
 257
 448
 2
 927
By-product revenue—
 —
 —
(1) —
 —
 —
 (1) (1) (3)
Amortisation of tangible and intangible assets(96) (7) (11)(114) (23) —
 (31) (195) (2) (251)
Adjusted for decommissioning and inventory amortisation—
 2
 —
2
 —
 —
 1
 3
 1
 5
Corporate administration and marketing related to current operations—
 —
 —
—
 —
 —
 —
 —
 —
 —
Inventory writedown to net realisable value and other stockpile adjustments—
 1
 —
1
 —
 —
 —
 —
 —
 —
Sustaining exploration and study costs—
 —
 1
1
 —
 —
 3
 27
 (1) 30
Total sustaining capital expenditure32
 1
 3
36
 8
 —
 38
 119
 (2) 164
All-in sustaining costs228
 29
 74
332
 204
 1
 268
 401
 (3) 872
Adjusted for non-controlling interests and non -gold producing companies(1)
—
 —
 —
—
 —
 —
 (40) —
 —
 (40)
All-in sustaining costs adjusted for non-controlling interests and non-gold producing companies228
 29
 74
332
 204
 1
 228
 401
 (3) 832
Adjusted for stockpile write-offs—
 (1) —
(1) —
 —
 —
 —
 —
 —
All-in sustaining costs adjusted for non-controlling interests, non-gold producing companies and stockpile write-offs228
 28
 74
331
 204
 1
 228
 401
 (3) 832
All-in sustaining costs228
 29
 74
332
 204
 1
 268
 401
 (3) 872
Non-sustaining project capital expenditure60
 —
 3
63
 —
 6
 21
 —
 1
 27
Technology improvements—
 —
 —
—
 —
 —
 —
 —
 —
 —
Non-sustaining exploration and study costs2
 —
 —
2
 —
 4
 —
 —
 (1) 3
Care and maintenance costs—
 —
 —
—
 —
 70
 —
 —
 —
 70
Corporate and social responsibility costs not related to current operations—
 —
 —
—
 —
 —
 —
 —
 —
 —
All-in costs290
 29
 77
397
 204
 81
 289
 401
 (3) 972
Adjusted for non-controlling interests and non -gold producing companies(1)
—
 —
 —
—
 —
 —
 (43) —
 —
 (43)
All-in costs adjusted for non-controlling interests and non-gold producing companies290
 29
 77
397
 204
 81
 246
 401
 (3) 929
Adjusted for stockpile write-offs—
 (1) —
(1) —
 —
 —
 —
 —
 —
All-in costs adjusted for non-controlling interests, non-gold producing companies and stockpile write-offs290
 28
 77
396
 204
 81
 246
 401
 (3) 929
Gold sold - oz (000)(2)
256
 21
 70
347
 215
 3
 249
 474
 —
 941
All-in sustaining cost (excluding stockpile write-offs) per unit –
$/oz(3)
893
 1,337
 1,066
955
 950
 440
 915
 844
 —
 886
All-in cost per unit (excluding stockpile write-offs) – $/oz(3)
1,132
 1,337
 1,116
1,141
 950
 29,420
 985
 844
 —
 989




For the year ended 31 December 2016
Operations in DRC, Ghana, Guinea, Mali and Tanzania
(in $ millions, except as otherwise noted)
 DRC MALI JOINT GHANA GUINEA TANZANIA Continental Africa other
 SUBSIDIARIES
 Kibali
 Morila
 Sadiola
 VENTURES Iduapriem
 Obuasi
 Siguiri
 Geita
  
Cash costs                   
Cost of sales per segmental information(5)
292
 32
 81
 407
 219
 1
 257
 448
 2
 927
By-product revenue—
 —
 —
 (1) —
 —
 —
 (1) (1) (3)
Inventory change5
 —
 —
 5
 —
 —
 14
 7
 —
 22
Amortisation of intangible assets—
 —
 —
 —
 —
 —
 —
 —
 (2) (2)
Amortisation of tangible assets(96) (7) (10) (114) (23) —
 (31) (195) —
 (249)
Rehabilitation and other non-cash costs(6) (1) (1) (9) (2) (1) (1) (5) 1
 (8)
Retrenchment costs—
 —
 —
 —
 —
 —
 —
 —
 —
 —
Total cash costs net of by-product revenue195
 24
 70
 288
 194
 1
 239
 253
 —
 687
Adjusted for non-controlling interests, non-gold producing companies and other(1)
—
 —
 —
 —
 —
 —
 (36) —
 —
 (36)
Total cash costs net of by-product revenue adjusted for non-controlling interests and non-gold producing companies195
 24
 70
 288
 194
 1
 203
 253
 —
 651
Gold produced - oz (000) (2)
264
 22
 70
 356
 214
 3
 260
 478
 —
 955
Total cash costs per unit - $/oz(3)
740
 1,123
 991
 812
 908
 167
 784
 530
 —
 682

For the year ended 31 December 2016
Operations in Australia, Argentina and Brazil
(in $ millions, except as otherwise noted)
 Australia TOTAL AUSTRALIA
 ARGENTINA Brazil Americas other
 TOTAL AMERICAS
 Sunrise Dam
 Tropicana
 Australia other
  Cerro Vanguardia
 
AngloGold Ashanti
Mineração

 Serra Grande
  
All-in sustaining costs                 
Cost of sales per segmental information(5)
242
 279
 21
 542
 344
 381
 134
 4
 863
By-product revenue—
 (2) —
 (2) (94) (16) —
 —
 (110)
Amortisation of tangible and intangible assets(32) (83) (11) (126) (77) (132) (51) —
 (260)
Adjusted for decommissioning and inventory amortisation1
 2
 —
 3
 1
 1
 —
 —
 2
Corporate administration and marketing related to current operations—
 —
 —
 —
 —
 1
 —
 (1) —
Inventory writedown to net realisable value and other stockpile adjustments—
 —
 7
 7
 —
 —
 —
 —
 —
Sustaining exploration and study costs1
 12
 8
 21
 2
 2
 7
 7
 18
Total sustaining capital expenditure32
 76
 1
 109
 60
 121
 43
 1
 225
All-in sustaining costs244
 284
 26
 554
 236
 358
 133
 11
 738
Adjusted for non-controlling interests and non -gold producing companies(1)
—
 —
 8
 8
 (18) —
 —
 (8) (26)
All-in sustaining costs adjusted for non-controlling interests and non-gold producing companies244

284

34

562

218

358

133

3

712
Adjusted for stockpile write-offs—
 —
 (8) (8) (4) —
 (1) 1
 (4)
All-in sustaining costs adjusted for non-controlling interests, non-gold producing companies and stockpile write-offs244

284

26

554

214

358

132

4

708
All-in sustaining costs244
 284
 26
 554
 236
 358
 133
 11
 738
Non-sustaining project capital expenditure—
 —
 —
 —
 —
 1
 —
 —
 1
Technology improvements—
 —
 —
 —
 —
 —
 —
 —
 —
Non-sustaining exploration and study costs—
 —
 7
 7
 —
 6
 1
 36
 43
Care and maintenance—
 —
 —
 —
 —
 —
 —
 —
 —
Corporate and social responsibility costs not related to current operations—
 —
 —
 —
 —
 11
 3
 1
 15
All-in costs244

284

33

561

236

376

137

48

797
Adjusted for non-controlling interests and non -gold producing companies(1)
—
 —
 8
 8
 (17) —
 —
 (1) (18)
All-in costs adjusted for non-controlling interests and non-gold producing companies244

284

41

569

219

376

137

47

779
Adjusted for stockpile write-offs—
 —
 (8) (8) (4) —
 (1) 1
 (4)
All-in costs adjusted for non-controlling interests, non-gold producing companies and stockpile write-offs244

284

33

561

215

376

136

48

775
Gold sold - oz (000)(2)
226
 293
 —
 519
 277
 400
 130
 —
 807
All-in sustaining cost (excluding stockpile write-offs) per unit - $/oz(3)
1,080
 970
 —
 1,067
 773
 893
 1,020
 —
 875
All-in cost per unit (excluding stockpile write-offs) - $/oz(3)
1,080
 970
 —
 1,081
 774
 938
 1,044
 —
 959

For the year ended 31 December 2016
Operations in Australia, Argentina and Brazil
(in $ millions, except as otherwise noted)
 Australia TOTAL AUSTRALIA
 ARGENTINA Brazil Americas other
 TOTAL AMERICAS
 Sunrise Dam
 Tropicana
 Australia other
  Cerro Vanguardia
 
AngloGold Ashanti
Mineração

 Serra Grande
  
Cash costs                 
Cost of sales per segmental information(5)
242
 279
 21
 542
 344
 381
 134
 4
 863
By-product revenue—
 (2) —
 (2) (94) (16) —
 —
 (110)
Inventory change—
 —
 1
 1
 7
 5
 1
 —
 13
Amortisation of intangible assets—
 —
 —
 —
 —
 (7) (3) —
 (10)
Amortisation of tangible assets(32) (83) (11) (126) (77) (125) (48) —
 (250)
Rehabilitation and other non-cash costs1
 (10) (2) (11) (8) (7) (1) —
 (16)
Retrenchment costs—
 —
��—
 —
 (1) (1) —
 (1) (3)
Total cash costs net of by-product revenue211
 184
 9
 404
 171
 230
 83
 3
 487
Adjusted for non-controlling interests, non-gold producing companies and other(1)
—
 —
 8
 8
 (13) —
 —
 —
 (13)
Total cash costs net of by-product revenue adjusted for non-controlling interests and non-gold producing companies211
 184
 17
 412
 158
 230
 83
 3
 474
Gold produced - oz (000) (2)
228
 292
 —
 520
 281
 407
 131
 —
 820
Total cash costs per unit - $/oz(3)
926
 630
 —
 793
 563
 562
 634
 —
 578

For the year ended 31 December 2016
AngloGold Ashanti operations – Total
(in $ millions, except as otherwise noted)
 JOINT VENTURES
SUBSIDIARIES
All-in sustaining costs  
Cost of sales per segmental information(5)
407
3,401
By-product revenue(1)(138)
Amortisation of tangible and intangible assets(114)(809)
Adjusted for decommissioning and inventory amortisation2
10
Corporate administration and marketing related to current operations—
59
Inventory writedown to net realisable value and other stockpile adjustments1
12
Sustaining exploration and study costs1
69
Total sustaining capital expenditure36
659
All-in sustaining costs332
3,263
Adjusted for non-controlling interests and non-gold producing companies(1)
—
(58)
All-in sustaining costs adjusted for non-controlling interests and non-gold producing companies332
3,205
Adjusted for stockpile write-offs(1)(17)
All-in sustaining costs adjusted for non-controlling interests, non-gold producing companies and stockpile write-offs331
3,188
All-in sustaining costs332
3,263
Non-sustaining project capital expenditure63
53
Technology improvements—
14
Non-sustaining exploration and study costs2
54
Care and maintenance costs—
70
Care and maintenance costs, Corporate and social responsibility costs not related to current operations—
40
All-in costs397
3,494
Adjusted for non-controlling interests and non-gold producing companies(1)
—
(53)
All-in costs adjusted for non-controlling interests and non-gold producing companies397
3,441
Adjusted for stockpile write-offs(1)(17)
All-in costs adjusted for non-controlling interests, non-gold producing companies and stockpile write-offs396
3,424
Gold sold - oz (000)(2)
347
3,220
All-in sustaining cost (excluding stockpile write-offs) per unit - $/oz(3)
955
990
All-in cost per unit (excluding stockpile write-offs) - $/oz(3)
1,141
1,063

















For the year ended 31 December 2016
AngloGold Ashanti operations - Total
(in $ millions, except as otherwise noted)
 JOINT VENTURES
SUBSIDIARIES
Cash costs  
Cost of sales per segmental information(5)
407
3,401
By-product revenue(1)(138)
Inventory change5
38
Amortisation of intangible assets—
(20)
Amortisation of tangible assets(114)(789)
Rehabilitation and other non-cash costs(9)(43)
Retrenchment costs—
(14)
Total cash costs net of by-product revenue288
2,435
Adjusted for non-controlling interests, non-gold producing companies and other(1)
—
(41)
Total cash costs net of by-product revenue adjusted for non-controlling interests and non-gold producing companies288
2,394
Gold produced - oz (000)(2)
356
3,250
Total cash costs per unit - $/oz(3)
812
737


5B.LIQUIDITY AND CAPITAL RESOURCES


In the board’s opinion, AngloGold Ashanti’s working capital is sufficient to meet the company’s present requirements.


OperatingComparison of cash flows in 2021 with 2020

Cash flows from operating activities

2018


Cash flows from operating activities from continuing operations were $857$1,268 million in 2018, $1402021, $277 million, or 1418 percent, lower than the 20172020 amount of $997$1,545 million. The decrease in cash flows generated byfrom continuing operations was mainly due to a decrease in receipts from customers as a result of a decrease in gold production and an increase in payments to suppliers and employees as a result of higher production costs, partially offset by lower taxation paid due to lower profit before tax, an increase in dividends received from joint ventures and favourable working capital movements.

Net cash inflow from operating working capital items amounted to $53 million in 2021, compared with an outflow of $238 million in 2020. The inflow from operating working capital in 2021 mainly related to a decrease in inventories and an increase in trade, other payables and provisions, partly offset by a decrease in trade, other receivables and other assets.

Cash flows from operating activities were also impacted by movements in the lock-up of value added tax (“VAT”) at Geita in Tanzania as well as foreign exchange controls and export duties at Cerro Vanguardia in Argentina. In Tanzania, net overdue recoverable VAT input credit refunds (after discounting provisions) increased by $3 million, or two percent, from $139 million in 2020 to $142 million in 2021, as a result of new claims submitted to the Tanzania Revenue Authority (“TRA”) during 2021 and despite offsetting verified VAT claims of $54 million against corporate tax payments in 2021. AngloGold Ashanti expects to continue offsetting verified VAT claims against corporate taxes. See “Item 4B: Business Overview—The Regulatory Environment Enabling AngloGold Ashanti to Mine—Africa—Tanzania”. In Argentina, the net export duty receivables (after discounting provisions) decreased by $4 million, or 17 percent, from $23 million at 31 December 2020 to $19 million at 31 December 2021. In addition, Cerro Vanguardia’s cash balance increased by $2 million (equivalent), or one percent, from $137 million (equivalent) at 31 December 2020 to $139 million (equivalent) at 31 December 2021. While the approval of the Argentinean Central Bank to purchase US dollars to distribute an offshore dividend to AngloGold Ashanti is pending, the cash remains fully available for Cerro Vanguardia’s operational requirements. See “Item 4B: Business Overview—The Regulatory Environment Enabling AngloGold Ashanti to Mine—Americas—Argentina”.

Dividends received from joint ventures increased by $83 million, or 56 percent, from $148 million in 2020 to $231 million in 2021. In this connection, cash flows from operating activities were impacted by the level of cash repatriation from, and movements in the VAT lock-up at, the Kibali joint venture in the DRC. In 2021, AngloGold Ashanti’s cumulative cash receipts from the Kibali joint venture, in the form of dividends from Kibali (Jersey) Limited, amounted to $231 million. Kibali (Jersey) Limited received such cash from Kibali Goldmines S.A. in the form of loan repayments (AngloGold Ashanti’s attributable share: $150 million) and dividends (net of withholding taxes) (AngloGold Ashanti’s attributable share: $81 million). AngloGold Ashanti’s attributable share of the outstanding cash balances awaiting repatriation from the DRC increased by $75 million, or 18 percent, from $424 million at 31 December 2020 to $499 million at 31 December 2021. The cash is fully available for the operational requirements of Kibali Goldmines S.A. In addition, Kibali Goldmines S.A. is due certain refunds of VAT which, to date, remain outstanding. During 2021, AngloGold Ashanti did not recover any VAT offsets and refunds from its operations in the DRC. AngloGold Ashanti’s attributable share of the net recoverable VAT balance (including recoverable fuel duty and after discounting provisions) owed to AngloGold Ashanti by the DRC government increased by $4 million, or six percent, from $69 million at 31 December 2020 to $73 million at 31 December 2021. See “Item 4B: Business Overview—The Regulatory Environment Enabling AngloGold Ashanti to Mine—Africa—Democratic Republic of the Congo (DRC)”.

Net taxation paid decreased by $115 million, or 36 percent, from $431 million in 2020 to $316 million in 2021. The decrease in net taxation paid was mainly due to lower profit before taxation in Ghana, Australia, Brazil, Argentina and Tanzania.

Cash flows from operating activities from discontinued operations were nil in 2021, compared to a net cash inflow of $109 million in 2020.

Cash flows from investing activities

Cash flows from investing activities from continuing operations amounted to a net outflow of $940 million in 2021, $492 million or 110 percent, higher than 2020 outflow of $448 million. The increase in outflow from continuing operations was largely due to higher capital expenditure of $326 million, or 47 percent, from $701 million in 2020 to $1,027 million in 2021 mainly due to increased conversion of Mineral Reserve, waste stripping at open pit mines and improved rates of underground development, and the transition of our TSFs in Brazil to dry-stacked structures to comply with new legal requirements, as well as proceeds from the disposals in 2020 of the South African assets of $200 million and certain joint ventures (Sadiola and Morila) of $26 million not being repeated in 2021. The increase in outflows was partly offset by the disposal of certain assets in Brazil and higher interest receipts in Argentina due to higher cash and cash equivalent balances in 2021.




238

Cash flows from investing activities from discontinued operations were nil in 2021, compared to a net cash outflow of $31 million in 2020.

Cash flows from financing activities

Cash flows from financing activities from continuing operations in 2021 amounted to a net outflow of $456 million, which is a change of $127 million from an outflow of $329 million in 2020. The increase in outflow was mainly due to an increase in dividends paid, partly offset by lower net repayment of borrowings.

Cash inflows from proceeds from borrowings decreased by $1,404 million from $2,226 million in 2020 to $822 million in 2021. In 2020, AngloGold Ashanti fully drew on the $1.4 billion multi-currency revolving credit facility in March 2020 and AngloGold Ashanti Holdings plc issued, at the start of October 2020, $700 million aggregate principal amount of 3.750% notes due 2030, which are fully and unconditionally guaranteed by AngloGold Ashanti Limited. In 2021, AngloGold Ashanti Holdings plc issued, at the end of October 2021, $750 million aggregate principal amount of 3.375% notes due 2028, which are fully and unconditionally guaranteed by AngloGold Ashanti Limited.

Cash outflows from repayment of borrowings decreased by $1,490 million from $2,310 million in 2020 to $820 million in 2021. In 2020, AngloGold Ashanti Holdings plc repaid, at maturity in April 2020, its $700 million aggregate principal amount of 5.375% notes due 2020 and AngloGold Ashanti repaid the fully drawn $1.4 billion multi-currency revolving credit facility in October 2020. In 2021, AngloGold Ashanti Holdings plc repurchased its $750 million aggregate principal amount of 5.125% notes due 2022 by way of a tender offer in October 2021 followed by a redemption in November 2021.

Finance costs paid increased by $2 million from $118 million in 2020 to $120 million in 2021. The increase was mainly due to lower interest capitalised against the Obuasi redevelopment project and higher lease liabilities.

Other borrowing costs increased by $2 million from $33 million in 2020 to $35 million in 2021. The other borrowing costs paid in 2021 were for the underwriting fees of AngloGold Ashanti Holdings plc’s new $750 million aggregate principal amount of 3.375% notes due 2028 as well as the tender offer premium and redemption premium costs of AngloGold Ashanti Holdings plc’s previous $750 million aggregate principal amount of 5.125% notes due 2022. The other borrowing costs paid in 2020 included the costs of AngloGold Ashanti’s $1.0 standby credit facility and the underwriting fees of AngloGold Ashanti Holdings plc’s $700 million aggregate principal amount of 3.750% notes due 2030.

Dividends paid increased by $193 million from $47 million in 2020 to $240 million in 2021. Dividends paid to non-controlling interests increased by $7 million from $9 million in 2020 to $16 million in 2021. These dividends were paid by our non-wholly owned subsidiaries CVSA and Siguiri to their respective non-AGA related shareholders. During 2021, the company declared and paid a dividend of $224 million to its shareholders, compared to $38 million in 2020.

Cash flows from financing activities from discontinued operations were nil in 2020 and 2021.

Comparison of cash flows in 2020 with 2019

Cash flows from operating activities

Cash flows from operating activities from continuing operations were $1,545 million in 2020, $587 million, or 61 percent, higher than the 2019 amount of $958 million. The increase in cash flows from continuing operations was mainly due to an increase in revenue from gold sales due to an increase in the sale of Moab Khotsong, Kopananggold price and the closure of TauTona offset by a decreasean increase in production costs and dividends received from joint ventures.ventures, partially offset by an increase in production costs which was impacted by unfavourable working capital movements and higher taxation paid due to higher profit before taxation.


Net cash outflow from operating working capital items amounted to $131$238 million in 2018,2020, compared with an outflow of $156$165 million in 2017.2019. The outflow from operating working capital mainly related to inventories, the VAT lock-up at Geita and increased export duty receivables at Cerro Vanguardia.

2017


Cash flows from operating activities were $997also impacted by movements in the lock-up of VAT at Geita in Tanzania as well as foreign exchange controls and export duties at Cerro Vanguardia in Argentina. In Tanzania, net overdue recoverable VAT input credit refunds (after discounting provisions) increased by $20 million, or 17 percent, from $119 million in 2017, $1892019 to $139 million in 2020, as a result of new claims submitted to the TRA during 2020. No refunds were received in cash or offset against provisional corporate tax payments in 2020. See “Item 4B: Business Overview—The Regulatory Environment Enabling AngloGold Ashanti to Mine—Africa—Tanzania”. In Argentina, the net export duty receivables (after discounting provisions) decreased by $2 million, or 16eight percent, from $25 million at 31 December 2019 to $23 million at 31 December 2020. In addition, Cerro Vanguardia’s cash balance increased by $84 million (equivalent), or 158 percent, from $53 million (equivalent) at 31 December 2019 to $137 million (equivalent) at 31 December 2020. See “Item 4B: Business Overview—The Regulatory Environment Enabling AngloGold Ashanti to Mine—Americas—Argentina”.




239

Dividends received from joint ventures increased by $71 million, or 92 percent, from $77 million in 2019 to $148 million in 2020. In this connection, cash flows from operating activities were impacted by the level of cash repatriation from, and movements in the VAT lock-up at, the Kibali joint venture in the DRC. In 2020, AngloGold Ashanti’s cumulative cash receipts from the Kibali joint venture, in the form of dividends from Kibali (Jersey) Limited, amounted to $140 million. Kibali (Jersey) Limited received such cash from Kibali Goldmines S.A. in the form of loan repayments (AngloGold Ashanti’s attributable share: $140 million). AngloGold Ashanti’s attributable share of the outstanding cash balances awaiting repatriation from the DRC increased by $222 million, or 110 percent, from $202 million at 31 December 2019 to $424 million at 31 December 2020. In addition, Kibali Goldmines S.A. is due certain refunds of VAT which, to date, remain outstanding. During 2020, AngloGold Ashanti recovered $2 million in VAT offsets and refunds from its operations in the DRC. AngloGold Ashanti’s attributable share of the net recoverable VAT balance (including recoverable fuel duty and after discounting provisions) owed to AngloGold Ashanti by the DRC government increased by $2 million, or three percent, from $67 million at 31 December 2019 to $69 million at 31 December 2020. See “Item 4B: Business Overview—The Regulatory Environment Enabling AngloGold Ashanti to Mine—Africa—Democratic Republic of the Congo (DRC)”. In 2020, AngloGold Ashanti’s dividend receipts from the Sadiola joint venture amounted to $8 million.

Net taxation paid increased by $210 million, or 95 percent, from $221 million in 2019 to $431 million in 2020. The increase in net taxation paid was mainly due to higher profit before taxation in Australia, Ghana, Tanzania and Argentina.

Cash flows from operating activities from discontinued operations increased by $20 million, or 22 percent, from a net cash inflow of $89 million in 2019 to a net cash inflow of $109 million in 2020.

Cash flows from investing activities

Cash flows from investing activities from continuing operations amounted to a net outflow of $448 million in 2020, $235 million or 34 percent, lower than the 2016 amount2019 outflow of $1,186$683 million. The decrease in cash flows generated by operationsoutflow was mainlylargely due to increased total cash costs partially offset by increased revenues$200 million proceeds on disposal of discontinued assets and subsidiaries (South Africa asset disposal group) and $26 million proceeds from a higher gold price receiveddisposal of joint ventures (Sadiola and increased production.Morila).


Net cashCash outflow from operating working capital items amounted to $156investing activities from discontinued operations decreased by $23 million, in 2017, compared withor 43 percent, from an outflow of $76$54 million in 2016.2019 to an outflow of $31 million in 2020.


FinancingCash flows from financing activities

2018


Cash flows from financing activities from continuing operations in the year ended 31 December 20182020 amounted to a net outflow of $393$329 million, which is a change of $245$152 million from an outflow of $148$177 million in the year ended 31 December 2017. 2019. The increase in outflow was mainly due to an increase in net repayment of borrowings, higher other borrowing costs and higher dividends paid.

Cash inflows from proceeds from borrowings in 2018 decreasedincreased by $62$2,058 million from $815$168 million in 20172019 to $753$2,226 million in 2018. This decrease included a $45 million drawdown2020. In order to safeguard the balance sheet during the COVID-19 pandemic, AngloGold Ashanti took proactive steps by fully drawing on the $1.0$1.4 billion syndicatedmulti-currency revolving credit facility $158 million drawdown on the A$500 million syndicated revolvingin March 2020 to bolster liquidity. All amounts were repaid by 31 December 2020. In addition, in April 2020, AngloGold Ashanti secured a new standby credit facility $407of $1.0 billion in order to provide additional liquidity at the onset of the COVID-19 pandemic. The $1.0 billion standby facility, which remained undrawn, was cancelled on 1 October 2020. At the start of October 2020, AngloGold Ashanti Holdings plc issued $700 million in proceeds from the local borrowings facilities in South Africaaggregate principal amount of 3.750% notes due 2030, which are fully and proceeds from other small loans amounting to $143 million.unconditionally guaranteed by AngloGold Ashanti Limited.


Cash outflows from repayment of borrowings increased by $200$2,187 million from $767 during the year ended$123 million in 2019 to $2,310 million in 31 December 2017 to $967 million during the year ended 31 December 2018.2020. This increase includedwas mainly due to the repayment of $80the $700 million aggregate principal amount of 5.375% notes due 2020 at maturity in April 2020 and the repayment of the US$1.0$1.4 billion syndicatedmulti-currency revolving credit facility, $571 million of the local borrowing facilities in South Africa, $315 million of the A$500 million syndicated revolving credit facility and $1 million relating to other loans.which had been fully drawn.


Finance costs paid decreased by $8$19 million from $138$137 million in 20172019 to $130$118 million in 2018.2020. The decrease was due to a combination of decreasedreduced borrowings, and fluctuatingreduced interest rates, for Corporate (non-gold producing subsidiaries)interest capitalised against the Obuasi redevelopment project and lower lease liabilities. The coupon on the $700 million aggregate principal amount of $33.750% notes due 2030 contributed to the decrease in finance costs by replacing relatively more expensive debt.

Other borrowing costs increased from nil in 2019 to $33 million Australiain 2020 and mainly related to costs associated with AngloGold Ashanti’s $1.0 standby credit facility and the issuance costs of $3 million, AngloGold Ashanti Holdings plcplc’s $700 million aggregate principal amount of $1 million and Córrego do Sítio of $1 million.3.750% notes due 2030.


Bond settlement premium, RCF and bond transaction costsDividends paid increased by $10$4 million to $10from $43 million in 2018 from nil2019 to $47 million in 2017. The increase was due to transaction costs paid for the new $1.4 billion multi-currency RCF.

2020. Dividends paid to non-controlling interests decreased by $19$7 million from $58$16 million in 20172019 to $39$9 million in 2018 and2020. These dividends were all paid by our non-wholly owned subsidiaries.subsidiaries CVSA and Siguiri to their respective non-AGA related shareholders. During 2018,2020, the company declared and paid a dividend of $24$38 million to its shareholders, compared to $39$27 million in 2017.2019.

2017


Cash flows from financing activities from discontinued operations were nil in 2019 and 2020.



240

Liquidity

Sources of liquidity

To service the year endedcapital commitments and other operational requirements, AngloGold Ashanti is dependent on existing cash resources, cash generated from operations and borrowings (in the form of bonds and credit facilities).

AngloGold Ashanti intends to finance its capital expenditure, capital lease obligations, other purchase obligations, environmental rehabilitation expenditures and debt repayment requirements in 2022 from cash on hand, cash flow from operations, existing credit facilities and, potentially, if deemed appropriate, long-term debt financing, the issuance of equity and equity-linked instruments. As part of the management of liquidity, funding and interest rate risk the group regularly evaluates market conditions and may enter into transactions, from time to time, to repurchase outstanding debt, pursuant to open market purchases, tender offers or other means.

Cash and cash equivalents

AngloGold Ashanti’s cash and cash equivalents decreased to $1.154 billion at 31 December 2017 amounted to a net outflow of $148 million, which is a change of $615 million from an outflow of $763 million in the year ended2021 compared with $1.330 billion at 31 December 2016. Cash inflows from proceeds from borrowings increased by $28 million from $787 million2020. At 31 December 2021, 50 percent of the company’s cash and cash equivalents were held in 2016 to $815 millionUS dollars, 24 percent in 2017. This increase included a $155 million drawdown on the $1.0 billion syndicated revolving credit facility, $42 million drawdown on the A$500 million syndicated revolving credit facility, $540 millionCanadian dollars, 5 percent in proceeds from the local borrowings facilitiesAustralian dollars, 7 percent in South AfricaAfrican rands, 10 percent in Argentinean pesos and proceeds from4 percent in other small loans amountingcurrencies. Amounts are converted to $78 million.US dollars at exchange rates as of 31 December 2021.


Cash outflowsgenerated from repaymentoperations

Cash generated from operations is subject to operational, market and other risks. Distributions from operations may be subject to foreign investment, exchange control laws and regulations and the quantity of borrowings decreased by $566 million from $1,333 million duringforeign exchange available in offshore countries. For example, in accordance with the year ended 31 December 2016 to $767 million during the year ended 31 December 2017. This decrease included the repayment of $170 millionrules and regulations of the US$1.0 billion syndicated revolving credit facility, $428 millionCentral Bank of the local borrowing facilitiesArgentina, cash generated by our Argentinean operations is held in South Africa, $65 million of the A$500 million syndicated revolving credit facilityArgentinean peso and $104 million relatingis subject to other loans.

Finance costs paid decreased by $34 millionmonetary and exchange policy controls. In addition, distributions from $172 million in 2016joint ventures are subject to $138 million in 2017, due to the redemption of the remaining $1.25 billion bonds 8.5% bonds due in 2020 in 2016. This once-off cost did not recur in 2017.

Bond settlement premium, RCF and bond transaction costs decreased by $30 million to nil in 2017 from $30 million in 2016. During 2016, the company incurred a $30 million cost in respect of the repurchase premium and cost on redemption of the remaining $1.25 billion bonds 8.5% bonds due in 2020. This once-off cost did not recur in 2017.

Dividends paid to non-controlling interests increased from by $4 million from $15 million in 2016 to $19 million in 2017 and were all paid by non-wholly owned subsidiaries. During 2017, the company declared and paid a dividend of $39 million to shareholders, whereas in the prior period, no dividend was paid to shareholders.


Liquidity

relevant board approvals. AngloGold Ashanti’s revenues are derived primarily from the sale of gold produced at its mines. Cash flows from operating activities are therefore the function of gold produced that is sold at a specific price. The market price of gold can fluctuate widely, which impacts the profitability of the company’s operations and the cash flows generated by these operations.


AngloGold Ashanti’s cashBorrowings

The credit facilities contain financial covenants and cash equivalents increasedother similar undertakings. To the extent that external borrowings are required, the company’s covenant performance indicates that existing financing facilities will be available to $329 million at 31 December 2018 compared with $205 million at 31 December 2017. In accordance with South African Reserve Bank regulations, cash generated by South African operations is held in South African rands and is therefore subject to exchange controls. At 31 December 2018, 79 percentmeet the above commitments. To the extent that any of the company’s cash and cash equivalents were heldfinancing facilities mature in US dollars, 11 percentthe near future, the company believes that sufficient measures are in Australian dollars, three percentplace to ensure that these facilities can be refinanced.

A full analysis of the borrowings as presented on the statement of financial position is included in South African rands and seven percent in other currencies.“Item 18: Financial Statements—Note 24—Borrowings”.


Bonds

During April 2010, AngloGold Ashanti Holdings plc issued two rated bonds, fully and unconditionally guaranteed by AngloGold Ashanti Limited. The issuance consisted of a 10-year ($700 million) bond with a semi-annual coupon of 5.375% per annum was repaid at maturity in April 2020 and ais no longer outstanding. The 30-year ($300 million) bond with a semi-annual coupon of 6.50% per annum. Unless the company redeems the bonds earlier, the bondsannum will mature on 15 April 2020 and 15 April 2040, respectively.unless the company redeems the bond earlier. See also “Item 10C: Material Contracts—Notes—2010 Notes”.


During July 2012, AngloGold Ashanti Holdings plc issued a 10-year $750 million rated bond. Semi-annual coupons are paid at 5.125% per annum. The bonds are dollar based and unless the company redeems the bonds earlier, they are repayable on 1 August 2022. The bonds arebond, fully and unconditionally guaranteed by AngloGold Ashanti Limited. The 10-year ($750 million) bond with a semi-annual coupon of 5.125% per annum was repurchased in part in October 2021 with the remainder redeemed in November 2021 and is no longer outstanding. See also “Item 10C: Material Contracts—Notes—2012 Notes”.


During July 2015,October 2020, AngloGold Ashanti Limited, as borrower, entered intoHoldings plc issued a five-year unsecured syndicated revolving credit facility (ZAR RCF 1.4 billion)rated bond, fully and unconditionally guaranteed by AngloGold Ashanti Limited. The 10-year ($700 million) bond with a semi-annual coupon of R1.4 billion about $983.750% per annum will mature on 1 October 2030, unless the company redeems the bond earlier. See also “Item 10C: Material Contracts—Notes—2020 Notes”.

During October 2021, AngloGold Ashanti Holdings plc issued a rated bond, fully and unconditionally guaranteed by AngloGold Ashanti Limited. The 7-year ($750 million) bond with Nedbank Limited, as facility agent, who in conjunction with ABSA Bank Limited constitutea semi-annual coupon of 3.375% per annum will mature on 1 November 2028, unless the lenders. Amounts may be repaid and re-borrowed undercompany redeems the facility during its five-year term and the facility bears interest at JIBAR plus 1.65% per annum. This ZAR RCF 1.4 billion facility, as well as the ZAR RCF 1 billion and ZAR RCF 2.5 billionbond earlier. See also “Item 10C: Material Contracts—Notes—2021 Notes”.

Credit facilities (see below), will be used to fund the working capital and development costs associated with the group's operations within South Africa without eroding the group's headroom under its other facilities and exposing the group to foreign exchange gains/losses each quarter. This facility matures in July 2020.





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During August 2016, Geita Gold Mining Limited and Société AngloGold Ashanti de Guinée S.A., as borrowers, entered into a three-year unsecured revolving credit facilities of $100 million with Nedbank Limited, as lender. Interest is currently charged at a margin of between 6.2% and 8% above LIBOR. In January 2019, $35 million of this facility was combined with the Geita RCF (see below). The remaining portion of $65 million was renewed for a further three years in February 2019 and matures in February 2022.

During November 2017, AngloGold Ashanti Limited, as borrower, entered into a three-year unsecured revolving credit facility (ZAR RCF 1 billion) of R1 billion (about $70 million) with The Standard Bank of South Africa Limited, as facility agent and lender. Amounts may be repaid and re-borrowed under the facility during its three-year term and the facility bears interest at JIBAR plus 1.3% per annum. The facility matures in November 2020, with the option on application to extend for another year.

During December 2017, AngloGold Ashanti Limited, as borrower, entered into a three-year unsecured syndicated revolving credit facility (ZAR RCF 2.5 billion) of R2.5 billion (about $174 million)$65 million with Nedbank Limited, and ABSA Bank Limited, as lenders. Amounts may be repaid and re-borrowedlender (the “Siguiri RCF”). In February 2019, the Siguiri RCF was renewed for a further three years. The current interest rate charged is LIBOR +8.50%. The Siguiri RCF will mature on 3 May 2022. As of 31 December 2021, $30 million was undrawn under the facility during its three-year term and the facility bears interest at JIBAR plus 1.8% per annum. The facility matures in December 2020, with the option on application to extend for another year.$65 million Siguiri RCF.

AngloGold Ashanti Limited registered a R10 billion Domestic Medium Term Note Programme (DMTNP) with the JSE in April 2011, which was updated in the second half of 2018 to comply with the new JSE debt listing requirements. The DMTNP permits the group to access the South African debt capital market for funding required. The group has not utilised the commercial paper under its R10 billion DMTNP during 2018, instead it made use of its other facilities, to provide for funding requirements of the South Africa region.


During April 2018, Geita Gold Mining Limited, as borrower, entered into a three-year unsecured multi-currency revolving credit facility of $115 million with Nedbank Limited, as underwriter and agent, and certain financial institutions party thereto, as original banks (Geita RCF)(the “Original Geita RCF”). The agreement has beenwas amended and restated in January 2019.2019 to add $35 million. Facility A iswas a US dollar based facility with

interest charged at a margin of 6.7% above LIBOR and facility B iswas a Tanzanian shilling facility capped at the equivalent of $45 million with interest charged at a margin of 5% plus a reference rate as determined by the lending agent. The maturity date of the Original Geita RCF was extended from June 2021 to September 2021 and its amount was reduced to $143 million. Following a second extension, the Original Geita RCF was cancelled in December 2021.


During October 2018, AngloGold Ashanti Holdings plc and AngloGold Ashanti Australia Limited, as borrowers, entered into a five-year unsecured multi-currency syndicated revolving credit facility of $1.4 billion (the “$1.4 billion multi-currency RCF”) with the Bank of Nova Scotia, as facility agent, and certain financial institutions party thereto, as lenders. The loan consists of a US dollar based facility with interest charged at a margin of 1.45% above LIBOR and an Australian dollar based facility capped at A$500 million with interest charged at a margin of 1.45% above BBSY. The applicable margin is subject to a ratings grid. In this regard, the interest margin will reduce should the group’s credit rating improve from its current BB+/Baa3 status and should increase if its credit rating worsens. The A$500 million portion of this facility will be used to fund the working capital and development costs associated with the group'sgroup’s mining operations within Australia without eroding the group'sgroup’s headroom under its other facilities and exposing the group to foreign exchange gains/losses each quarter. This newfacility will mature on 23 October 2023. As of 31 December 2021, the equivalent of $1.367 billion was undrawn under the $1.4 billion multi-currency RCF. See also “Item 10C: Material Contracts—Multi-currency Revolving Credit Facility”.

Following the completion of the South African asset sale, the company cancelled its ZAR RCF facilities. The ZAR RCF 1.4 billion, the ZAR RCF 2.5 billion and the ZAR RCF 1.0 billion facilities were cancelled in February, October and November 2020, respectively.

During December 2021, Geita Gold Mining Limited, as borrower, entered into a three-year unsecured multi-currency revolving credit facility replacesof $150 million with Nedbank Limited, as underwriter and agent, and certain financial institutions party thereto, as original banks (the “New Geita RCF”). The New Geita RCF consists of a Tanzanian shilling component capped at the $1 billionequivalent of $87 million bearing interest at 12.5% and a US dollar component bearing interest at LIBOR plus 6.7%. The New Geita RCF and A$500 million RCF, which were available until July 2019 and were cancelledwill mature during October 2018.

A full analysis of the borrowings as presentedAugust 2024 or December 2024 depending on the statementfulfillment of financial position is includedcertain conditions in “Item 18: Financial Statements-Note 24-Borrowings”.
Amounts are converted to US dollars at exchange rates asthe facility agreement. As of 31 December 2018.2021, the equivalent of $40 million was undrawn under the $150 million New Geita RCF.


AngloGold Ashanti intendsLimited, as borrower, renews its corporate overnight facility of ZAR 150 million (the “RMB corporate overnight facility”) with FirstRand Bank Limited on an annual basis. During October 2021, the RMB corporate overnight facility was reduced from ZAR 500 million to finance its capital expenditureZAR 150 million. As of 31 December 2021, the ZAR 150 million RMB corporate overnight facility was undrawn.

Environmental obligations

Pursuant to environmental regulations in the countries in which AngloGold Ashanti operates, in connection with planning for end-of-life of our mines, AngloGold Ashanti is obligated to rehabilitate the lands where such mines are located. In most cases, AngloGold Ashanti is required to provide financial guarantees for such work, including reclamation bonds or letters of credit issued by third party entities, independent trust funds or cash reserves maintained by the operation, to the respective environmental protection agency, or such other government department with responsibility for environmental oversight in the respective country, to cover all or a portion of the estimated environmental rehabilitation obligations.

In most cases, the environmental obligations will expire on completion of the rehabilitation although, in some cases, AngloGold Ashanti may be required to post bonds for potential events or conditions that could arise after the rehabilitation has been completed.

In Australia, since 2014, AngloGold Ashanti has paid into a Mine Rehabilitation Fund an amount of A$10 million for a current carrying value of the liability of A$138 million. At Iduapriem, AngloGold Ashanti has provided a bond composed of a cash component of $11 million with a further bond guarantee amounting to $39 million issued by ABSA Bank Ghana Limited and debt repayment requirementsStandard Chartered Bank Ghana Ltd for a current carrying value of the liability of $54 million. At Obuasi, AngloGold Ashanti has provided a bond composed of a cash component of $21 million with a further bank guarantee amounting to $30 million issued by Stanbic Bank Ghana Limited for $13 million and Standard Chartered Bank Ghana PLC (SCB) for $17 million for a current carrying value of the liability of $217 million. In some circumstances, AngloGold Ashanti may be required to post further bonds in 2019 from cash on hand, cash flow from operations, existing credit facilities and, potentially, if deemed appropriate, long-term debt financing,due course which will have a consequential income statement charge for the issuancefees charged by the providers of equity and equity-linked instruments.the reclamation bonds.






242

Current borrowings


AngloGold Ashanti’s current borrowings increaseddecreased by $101$91 million to $139$51 million at 31 December 20182021 from $38$142 million at 31 December 2017.2020. See “Item 18: Financial Statements-Note 24-Borrowings”Statements—Note 24—Borrowings”.


Non-current borrowings


AngloGold Ashanti’s non-current borrowings decreasedincreased by $319$69 million to $1,911$1,858 million at 31 December 20182021 compared to $2,230$1,789 million at 31 December 2017.2020. See “Item 18: Financial Statements-Note 24-Borrowings”Statements—Note 24—Borrowings”.


As at 31 December 2018,2021, AngloGold Ashanti’s total non-current borrowings, including the short-term portion maturing within 2018,2021, was made up as follows:
$ (million)
Unsecured borrowings1,9891,909 
Secured finance leases61
Total borrowings2,0501,909 
Less: Short-term maturities (current borrowings)13951 
Total non-current borrowings1,9111,858
Amounts falling due are scheduled as follows:
$ (million) 
Within one year13951 
Between one and two years73431 
Between two and five years860110 
After five years3171,717 
Total2,0501,909

At 31 December 20182021, the currencies in which the borrowings were denominated were as follows:

$ (million)
United States dollarsdollar1,8961,829 
Australian dollarsdollar4833 
South African rand75— 
Tanzanian shillingsshilling2947 
Brazilian real2— 
Total2,0501,909
At 31 December 2018,2021, AngloGold Ashanti had the following undrawn amounts available under its borrowing facilities:
$ (million)
Syndicated revolving credit facility (R2.5 billion) - SA rand174
Syndicated revolving credit facility (R1.4 billion) - SA rand70
FirstRand Bank Limited (R750corporate overnight facility (R150 million) -– SA rand5210 
Revolving credit facility (R1billion) - SA rand35
Multi-currency syndicated revolving credit facility ($1.4 billion) -– US dollar / Australian dollar1,4001,367 
RevolvingGeita revolving credit facility ($115150 million) -– US dollar / Tanzanian shilling5740 
Siguiri revolving credit facility ($65 million) – US dollar30 
Total undrawn facilities1,7881,447


AngloGold Ashanti had no other committed lines of credit as of 31 December 2018.2021.


As of 31 December 2018,2021, the company was in compliance with all debt covenants and provisions related to potential defaults.


See “Item 18: Financial Statements-Note 34-CapitalStatements—Note 34—Capital Management” and “Item 10C: Material Contracts”.





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At 31 December 2021, lease liabilities were as follows:
$ (million)
Non-current124 
Current61 
Total185

AngloGold Ashanti, through its executive committee, reviews its short-, medium- and long-term funding, treasury and liquidity requirements and positions monthly. The Audit and Risk Committee also reviews these on a quarterly basis at its meetings.


Supplemental parent guarantor and subsidiary issuer financial information

AngloGold Ashanti Holdings plc (the “Issuer”), a direct wholly-owned subsidiary of AngloGold Ashanti Limited (the “Guarantor”), has issued three series of outstanding debt securities which are each fully and unconditionally guaranteed by the Guarantor (the “guaranteed debt securities”). The Issuer is a company incorporated under the laws of the Isle of Man that holds certain of AngloGold Ashanti’s operations and assets located outside of South Africa. The guaranteed debt securities outstanding as of 31 December 2021 consisted of:

•a $300 million 30-year bond, with a maturity date of 15 April 2040 and a fixed coupon of 6.500% payable semi-annually;
•a $750 million 7-year bond, with a maturity date of 1 November 2028 and a fixed coupon of 3.375% payable semi-annually; and
•a $700 million 10-year bond, with a maturity date of 1 October 2030 and a fixed coupon of 3.750% payable semi-annually.

The Guarantor fully and unconditionally guarantees the payment of the principal of, premium, if any, and interest on each of the guaranteed debt securities, including any additional amounts, when and as any such payments become due, whether at maturity, upon redemption or declaration of acceleration, or otherwise. The Guarantor has obtained the approval of the South African Reserve Bank to provide each of the guarantees. Each guarantee constitutes unsecured and unsubordinated debt of the Guarantor and ranks equally with all of its other unsecured and unsubordinated debt from time to time outstanding. Each guarantee is or will be effectively subordinated to any of the Guarantor’s existing and future secured debt, to the extent of the value of the assets securing such debt, and structurally subordinated to all of the existing and future liabilities (including trade payables) of each of the Guarantor’s subsidiaries. As at 31 December 2021, all of the debt of the Guarantor was unsecured. Under the terms of each full and unconditional guarantee, holders of the guaranteed debt securities will not be required to exercise their remedies against the Issuer before they proceed directly against the Guarantor.

The following summarised financial information reflects, on a combined basis, the assets, liabilities, and results of operations of the Issuer and the Guarantor (collectively, the “Obligor Group”). Intercompany balances and transactions within the Obligor Group have been eliminated. Amounts attributable to the Obligor Group’s investment in consolidated subsidiaries that have not issued or guaranteed the guaranteed debt securities (the “Non-Obligor Subsidiaries”) have been excluded. The Obligor Group’s amounts due from, amounts due to and transactions with Non-Obligor Subsidiaries have been separately disclosed, if considered to be material. The summarised financial information below should be read in conjunction with AngloGold Ashanti’s consolidated financial statements for the year ended and as at 31 December 2021, see “Item 18: Financial Statements”.

Income statement information
Obligor Group(1)
$ (million)Year ended 31 December 2021
Revenues from Non-Obligor Subsidiaries5 
Revenues from Investments22 
Net intergroup dividends, interest, royalties and fees with Non-Obligor Subsidiaries— 
Loss for the period from continuing operations(154)
Loss for the period(154)

(1)    Gross profit is not disclosed for the Obligor Group. The Guarantor changed the nature of its main operating activities from mining operations to investment holding in 2021 and has no costs and expenses applicable to revenue. As a result cost of sales and gross profit are no longer presented. The principal activity of the Issuer is to act as a holding company for certain of AngloGold Ashanti’s operations and assets located outside of South Africa.





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Statement of financial position information
Obligor Group
$ (million)Year ended 31 December 2021
ASSETS
Receivables due from Non-Obligor Subsidiaries969 
Other current assets661 
Total current assets1,630 
Non-current assets42 
LIABILITIES
Payables due to Non-Obligor Subsidiaries270 
Other current liabilities245 
Total current liabilities515 
Non-current liabilities1,826 

Contractual commitments and contingencies


For a detailed discussion of commitments and contingencies, see “Note 32-Contractual“Item 18: Financial Statements—Note 32—Contractual Commitments and Contingencies” to the consolidated financial statements..


As at 31 December 2018,2021, capital commitments can be summarised over the periods shown below as follows:
Expiration per period
CommitmentTotal
amount		Less than
1 year		1 – 3
years		4 – 5
years		Over 5
years
(in millions)$$$$$
Capital expenditure (contracted and not yet contracted)(1)
693 629 64 — — 
Other commercial commitments(2)
1,047 423 468 129 27 
Total1,740 1,052 532 129 27 
(1)    Including commitments through contractual arrangements with equity-accounted joint ventures of $4 million.
(2)    Excludes commitments through contractual arrangements with equity-accounted joint ventures.

To service the above capital commitments and other operational requirements, the group is dependent on existing cash resources, cash generated from operations and borrowings (in the form of bonds and credit facilities).



245

 Expiration per period
Commitment
Total
amount

 
Less than
1 year

 
1 – 3
years

 
4 – 5
years

 
Over 5
years

(in millions)$
 $
 $
 $
 $
Capital expenditure (contracted and not yet contracted)(1)
891
 571
 320
 —
 —
Other commercial commitments(2)
963
 305
 430
 163
 65
Total1,854
 876
 750
 163
 65
Contractual obligations
(1)
Including commitments through contractual arrangements with equity accounted joint ventures of $91 million.
(2)
Excludes commitments through contractual arrangements with equity accounted joint ventures.


As at 31 December 2021, AngloGold Ashanti had the following known contractual obligations:

TotalLess than
1 year		1 – 3
years		4 – 5
years		More than
5 years
(in millions)$$$$$
Long-term debt obligations including interest(1)
2,734 119 304 142 2,169 
Capital lease obligations204 69 86 38 11 
Purchase obligations
- Contracted capital expenditure(2)
146 146 
- Other purchase obligations(3)
1,047 423 468 129 27 
Environmental rehabilitation costs(4)
685 59 87 79 460 
Provision for silicosis(5)
59 16 25 11 7 
Pensions and other post-retirement medical obligations(6)
77 8 16 18 35 
Total4,952 840 986 417 2,709 

(1)    Interest calculations are at the rate existing at the year end. Actual rates are set at floating rates for some of the borrowings (Refer to “Item 18: Financial Statements—Note 24—Borrowings”).
(2)    Represents contracted capital expenditure for which contractual obligations exist. Amounts stated include commitments of equity-accounted joint ventures.
(3)    Other purchase obligations represent contractual obligations for mining contract services, purchase of power, supplies, consumables, inventories, explosives and activated carbon.
(4)    Pursuant to environmental requirements, AngloGold Ashanti is obligated to close its operations and reclaim and rehabilitate the lands upon which it conducted its mining and gold recovery operations. The present value of estimated closure costs at existing operating mines as well as mines in various stages of closure are reflected in this table. Costs are calculated using undiscounted real cash flows, not nominal cash flows. The amount will change from year to year depending on rehabilitation work undertaken, changes in design and methodology, and new occurrences. For more information on AngloGold Ashanti’s environmental rehabilitation obligations, see “Item 4B: Business Overview—Mine Site Rehabilitation and Closure” and “Item 4B: Business Overview—Sustainability and Environmental, Social and Governance (“ESG”) Matters”. Amounts stated include a total estimated liability of $24 million in respect of equity-accounted joint ventures.
(5)     In South Africa, AngloGold Ashanti has been subject to numerous claims, including class action litigation with respect to alleged occupational lung diseases. The settlement agreement in relation to the silicosis and tuberculosis class action came into effect in December 2019, following the approval of the settlement by the High Court in Johannesburg in July 2019. As a result, a trust (Tshiamiso Trust) was established for a minimum of 13 years responsible for making payments to eligible beneficiaries. The amount of monetary compensation will vary depending on the nature and seriousness of the disease. See “Item 3D: Risk Factors—The prevalence of occupational health diseases and other diseases and the potential costs and liabilities related thereto may have an adverse effect on the business and results of operations of AngloGold Ashanti”, “Item 4B: Business Overview—Sustainability and Environmental, Social and Governance (“ESG”) Matters” and “Item 18: Financial Statements—Note 1.2—Accounting Policies—Significant Accounting Judgements and Estimates—Provision for silicosis”.
(6)    Represents payments for unfunded plans or plans with insufficient funding.

Off-balance sheet arrangements

AngloGold Ashanti does not engage in off-balance sheet financing activities, and does not have any off-balance sheet debt obligations, special purpose entities or unconsolidated associates. The most significant off-balance sheet item are the unaccrued future rehabilitation obligations.

Recent developments


Recent developments disclosed in “Item 18: Financial Statements-Note 35-Recent Developments”Statements—Note 35—Subsequent Events” include the following details:


On 14 February 2019, AngloGold Ashanti Limited (AGA) sold its holding in Société d’Exploitation des Mines d’Or de Yatela (Yatela) toAnnounces Completion of Acquisition of Corvus - On 18 January 2022, AngloGold Ashanti announced the government of Mali, for a consideration of $1. As partsuccessful completion of the transaction, a one-time payment will be madepreviously announced plan of arrangement with Corvus Gold Inc. (“Corvus”) pursuant to which AngloGold Ashanti agreed to acquire the governmentremaining 80.5% of Mali in an amount corresponding tocommon shares of Corvus not already owned by AngloGold Ashanti. Under the estimated costs of completing the rehabilitation and closureterms of the Yatela site, and also financing certain outstanding social programmes. Upon completion and this payment being made,arrangement, the shareholders of Corvus (other than the AngloGold Ashanti will be released of all obligations relating to the Yatela project. At 31 December 2018, the estimated costs relating to rehabilitation, mine closure and the financing of social programmes amounted to $19.7 million.its subsidiaries) received C$4.10 in cash per Corvus share.



Dividend declaration - On 1922 February 2019,2022, the directors of AngloGold Ashanti declared a gross cash dividend per ordinary share of 95217 South African cents (assuming an exchange rate of ZAR13.7619/ZAR 15.50/$, the gross dividend payable per ADS is equivalent to 714 US cents).


Related party transactions


For a detailed discussion of related party transactions, see “Item 7B: Related Party Transactions”.


Recently adopted accounting policies and pending adoption of new accounting standards





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AngloGold Ashanti’s accounting policies are described in “Note 1-Accounting Policies” to the consolidated financial statements“Item 18: Financial Statements—Note 1—Accounting Policies—New Standards and Interpretations Issued”.


Critical accounting policies


AngloGold Ashanti’s accounting policies are described in “Note 1-Accounting Policies” to the consolidated financial statements“Item 18: Financial Statements—Note 1.2—Accounting Policies—Significant Accounting Judgements and Estimates”.


Use of estimates and making of assumptions

The preparation of the company’s financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the year. The following are considered to be the accounting policies that are most critical to the company’s results of operations, financial condition and cash flows.

Use of estimates and making of assumptions


The more significant areas requiring the use of management estimates and assumptions relate to OreMineral Reserve that are the basis of future cash flow estimates and unit-of-production depreciation, depletion and amortisation calculations; environmental, reclamation, rehabilitation and closure obligations; asset impairments/reversals (including impairments of goodwill); production start date; and write-downs of inventory to net realisable value. Other estimates include employee benefit liabilities and unrecognised tax positions.


The complex or subjective judgements that have the most significant effect on amounts recognised and the sources of estimation uncertainty where there is a significant risk of material adjustment to the carrying amounts of assets or liabilities in the next reporting period are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. On an ongoing basis, management evaluates its estimates and assumptions; however, actual amounts could differ significantly due to the ultimate conclusion of uncertainties.

Ore Reserve and life-of-mines

AngloGold Ashanti estimates on an annual basis its Ore Reserve at its mining operations. There are a number of uncertainties inherent in estimating quantities of Ore Reserve, including many factors beyond the company’s control. Estimates of Ore Reserve are based upon engineering evaluations of assay values derived from samplings of drill holes and other openings. Additionally, declines in the market price of gold may render certain Ore Reserve containing relatively lower grades of mineralisation uneconomic to mine. Further, availability of permits, changes in operating and capital costs, and other factors could materially and adversely affect the Ore Reserve. The company uses its estimates of Ore Reserve to determine the unit basis for mine depreciation and closure rates, and to evaluate mine asset impairments. Changes in estimates of Ore Reserve could significantly affect these items. At least annually, the company reviews mining schedules, production levels and asset lives in the company’s life-of-mine planning for all of the company’s operating and development properties. Significant changes in the life-of-mine plans may occur as a result of mining experience, new ore discoveries, changes in mining methods and rates, process changes, investment in new equipment and technology and gold prices. Based on the life-of-mine analysis the company reviews its accounting estimates and adjusts depreciation, amortisation, reclamation costs and evaluation of each mine for impairment where necessary. Accordingly, this analysis and the estimates made therein have a significant impact on the company’s results of operations and financial condition.

Contingencies

Accounting for contingencies requires the recording of an estimated loss for a loss contingency when information available indicates that it is probable that an asset has been impaired or a liability has been incurred, and the amount of the loss can be reasonably estimated. Accounting for contingencies such as legal and income tax matters requires the use of judgements to determine the amount to be recorded in the financial statements. By their nature, contingencies will only be resolved when one or more future events occur or fail to occur, and typically, those events will occur a number of years into the future. The company assesses such contingent liabilities, which inherently involves the exercise of significant management judgement and estimates of the outcome of future events.

Provision for environmental rehabilitation


AngloGold Ashanti’s miningsignificant accounting judgements and exploration activitiesestimates are subject to various lawsdescribed in “Item 18: Financial Statements—Note 1.2—Accounting Policies—Significant Judgements and regulations governing the protection of the environment. The company recognises management’s best estimate for asset retirement obligations in the period in which they are incurred. Actual costs incurred in future periods could differ materially from the estimates. Additionally, future changes to environmental laws and regulations, life of mine estimates and discount rates could affect the carrying amount of this provision. Changes in Ore Reserve could similarly affect the useful lives of assets depreciated on a straight-line-basis, where those lives are limited to the life of mine.Estimates”.



5C.RESEARCH AND DEVELOPMENT, PATENTS AND LICENSES, ETC.

5C.    RESEARCH AND DEVELOPMENT, PATENTS AND LICENSES, ETC.

Research and development expenditure included in the income statement amounted to $1 million $11 million and $15during 2021, $1 million during 2018, 20172020 and 2016, respectively.nil during 2019.








5D.    TREND INFORMATION
5D.TREND INFORMATION


For a discussion of trends affecting AngloGold Ashanti’s business and operations, see “Item 5A: Operating Results – Results—Key factors affecting results”.






5E.    CRITICAL ACCOUNTING ESTIMATES
5E.OFF-BALANCE SHEET ARRANGEMENTS


AngloGold Ashanti does not engage in off-balance sheet financing activities, and does not have any off-balance sheet debt obligations, special purpose entities or unconsolidated associates. The most significant off-balance sheet item is the unaccrued future rehabilitation obligations.Not applicable.


See “Item 5F: Tabular Disclosure of Contractual Obligations”.






5F.TABULAR DISCLOSURE OF CONTRACTUAL OBLIGATIONS

As at 31 December 2018 AngloGold Ashanti had the following known contractual obligations:
 Total
 
Less than
1 year

 
1 – 3
years

 
4 – 5
years

 
More than
5 years

(in millions)$
 $
 $
 $
 $
Long-term debt obligations including interest(1)
2,757
 135
 1,049
 910
 663
Capital lease obligations93
 12
 23
 17
 41
Operating lease obligations265
 102
 96
 67
 —
Purchase obligations         
- Contracted capital expenditure(2)
99
 99
 —
 —
 —
- Other purchase obligations(3)
963
 305
 430
 163
 65
Environmental rehabilitation costs(4)
819
 75
 61
 82
 601
Pensions and other post-retirement medical obligations(5)
100
 9
 19
 20
 52
Total5,096
 737
 1,678
 1,259
 1,422
(1)
Interest calculations are at the rate existing at the year end. Actual rates are set at floating rates for some of the borrowings (Refer to “Note 24-Borrowings”
of the consolidated financial statements).
(2)
Represents contracted capital expenditure for which contractual obligations exist. Amounts stated include commitments of equity accounted joint ventures.
(3)
Other purchase obligations represent contractual obligations for mining contract services, purchase of power, supplies, consumables, inventories, explosives and activated carbon.
(4)
Operations of gold mining companies are subject to extensive environmental regulations in the various jurisdictions in which they operate. These regulations establish certain conditions on the conduct of operations by AngloGold Ashanti. Pursuant to environmental regulations, AngloGold Ashanti is also obligated to close its operations and reclaim and rehabilitate the lands upon which it conducted its mining and gold recovery operations. The present estimated closure costs at existing operating mines and mines in various stages of closure are reflected in this table. They are calculated using undiscounted real cash flows, not nominal cash flows. The amount will change from year to year depending on rehabilitation work undertaken, changes in design and methodology and new occurrences. For more


information of environmental rehabilitation obligations, see "Item 4B: Business Overview-Mine Site Rehabilitation and Closure" and "Item 4B: Business Overview-Environmental, Health and Safety Matters”. Amounts stated include a total estimated liability of $58 million in respect of equity accounted joint ventures.
(5)
Represents payments for unfunded plans or plans with insufficient funding.





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ITEM 6: DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES





6A.DIRECTORS AND SENIOR MANAGEMENT

6A. DIRECTORS AND SENIOR MANAGEMENT

Directors


As at 1929 March 2019,2022, AngloGold Ashanti has a unitary board comprising 1211 directors - 10nine independent non-executive directors and two executive directors. Certain information with respect to AngloGold Ashanti’s directors is set forth below:

NameAgePosition
Year first
appointed(1)
Alberto Calderon62Executive director and Chief Executive Officer2021
Christine Ramon54Executive director and Chief Financial Officer2014
Maria Ramos63Independent non-executive director and chairperson2019
Rhidwaan Gasant62Lead independent non-executive director2010
Kojo Busia59Independent non-executive director2020
Alan Ferguson64Independent non-executive director2018
Albert Garner66Independent non-executive director2015
Scott Lawson60Independent non-executive director2021
Nelisiwe Magubane56Independent non-executive director2020
Maria Richter67Independent non-executive director2015
Jochen Tilk58Independent non-executive director2019
Name Age Position 
Year first
appointed(1)
Kelvin Dushnisky 55 Executive director and chief executive officer 2018
Christine Ramon 51 Executive director and chief financial officer 2014
Sipho Pityana(2)
 59 Independent non-executive director and chairman 2007
Alan Ferguson 61 Independent non-executive director 2018
Albert Garner 63 Independent non-executive director 2015
Rhidwaan Gasant 59 Independent non-executive director 2010
Dave Hodgson 71 Independent non-executive director 2014
Nozipho January-Bardill 68 Independent non-executive director 2011
Michael J. Kirkwood 71 Independent non-executive director 2012
Maria Richter 64 Independent non-executive director 2015
Rodney J. Ruston 68 Independent non-executive director 2012
Jochen Tilk 55 Independent non-executive director 2019
(1)    One-third of the directors (if their number is not a multiple of three, then the number nearest to but not less than one third), must retire at each annual general meeting, according to those who have been longest in office or by lot but may be re-elected, if eligible. A director may not serve for a period of more than three years without retiring. Directors appointed since the previous annual general meeting must be approved by shareholders at the next annual general meeting (“AGM”).



(1)
Directors serve for a period of three years unless re-elected. At each annual general meeting, directors appointed since the previous annual general meeting are required to retire, but are eligible for re-election. In addition, one-third of the directors (if their number is not a multiple of three, then the number nearest to but not less than one third), must retire according to seniority or by lot but may be re-elected.
(2)
Appointed as Chairman with effect from 17 February 2014.
Sipho Pityana (59)Maria Ramos (63)
BAMSc, BCom (Hons), MSc, Dtech (Honoris)Banker Diploma, Certified Associate of the Institute of Bankers (SA)
Independent Non-Executive ChairmanDirector and Chairperson
Appointed: A director on 13 February 20071 June 2019 and Chairmanas chairperson of the Boardboard on 17 February 20145 December 2020
Board committee memberships:•    Nominations and Governance Committee (Chairman)(Chairperson)
•    Social, Ethics and Sustainability Committee

Maria Ramos is an independent non-executive director of Standard Chartered Plc and serves on the board of Compagnie Financière Richemont SA. She recently served as independent non-executive director on the boards of the Public Investment Corporation and Saudi British Bank. She also co-chaired, the United Nations Secretary General’s Task Force on Digital Financing of the Sustainable Development Goals.

Before joining Absa Group (previously Barclays Africa Group Limited) as the group chief executive, Ms. Ramos served as the chief executive of Transnet Limited. This followed an eight-year tenure as director general of South Africa’s National Treasury.

Ms. Ramos has in the past served as a non-executive and independent director on the boards of Sanlam Ltd, Remgro Ltd and SABMiller Plc. She was a member of the World Economic Forum’s International Business Council and member of its executive Committee and its chairman for two years.

She is a member of the Group of Thirty and serves on the International Advisory Board of the Blavatnik School of Government, Oxford University.













248

Rhidwaan Gasant (62)
BCompt (Hons), CA (SA), ACIMA, Executive Development Programme
Lead Independent Non-Executive Director
Appointed: 12 August 2010
Board committee memberships:Audit and Risk Committee
Investment Committee
Nominations and Governance Committee
Remuneration and Human Resources Committee
•    Social, Ethics and Sustainability Committee

Sipho PityanaRhidwaan Gasant is the Lead Independent Non-Executive Director. He was previously the Chief Executive Officer of Energy Africa Limited. He is currently the Independent Non-Executive Chairman of Growthpoint Properties Limited and chairs the company. He has extensive business experience having served in both an executive and non-executive capacity on several JSE listed boardsBoard Audit Committee of companies as well as running his own company, Izingwe Capital which he chairs. He is chairman of the JSE-listed Onelogix Group, as well as the Council of the University of Cape Town. He has previously served as chair of Munich Reinsurance of Africa, he also served on the boards of Bytes Technology Group, Afrox, SPESCOM, Scaw Metals Group and the Old Mutual Leadership Group. He previously worked as an executive director of Nedcor Investment Bank and managing director of Nedbank.MTN Nigeria Communications Plc.

In addition to his private sector track record, Sipho has extensive public sector experience and international exposure. He was the first Director General of the Department of Labour in the former President Mandela’s government. As the Foreign Affairs Director General he represented South Africa in various international fora including the United Nations, African Union, Commonwealth and the International Labour Organization. He was one of the founding members of the governing body of the Commission for Conciliation, Mediation and Arbitration and Convenor of the South African government delegation to the National Economic Development and Labour Council.



Kelvin Dushnisky (55)Kojo Busia (59)
BSc (Hons), MSc and Juris DoctorPhD, MA, BA
Chief Executive OfficerIndependent Non-Executive Director
Appointed:1 September 2018August 2020
Board committee memberships:Social, Ethics and Sustainability Committee (Chairperson)
Investment Committee
Nominations and Governance Committee

Kojo Busia has over 25 years of professional experience in African natural resources governance and management working at both bilateral and multilateral organisations. He recently held the position of Chief of the Natural Resources Management Section, Technology, Climate Change and Natural Resource Management Division, at the United Nations Economic Commission for Africa (UNECA).
Kelvin Dushnisky was appointed
He previously served as Chief Executive Officercoordinator of the African Mineral Development Centre (AMDC) at the UNECA. Prior to heading the AMDC, Dr Busia spent nearly a decade leading the African Peer Review Mechanism Support Section, Governance and an ExecutivePublic Administration Division, also at the UNECA. In addition, Dr Busia has served on several advisory boards including the Responsible Mining Foundation Advisory Council, Advisory Director of AngloGold Ashanti on 1 September 2018. He leads the execution of AngloGold Ashanti’s strategic prioritiesGlobal Mining Sustainability, and oversees a global portfolio of mining operations and projects in Africa, South America and Australia, along with exploration interests and investments in North America. He also leads the company’s interface with key stakeholders including shareholders, host governments, communities and organised labour groups, among others.

Mr. Dushnisky previously worked sixteen-years at Barrick Gold Corporation, where he served as president and a member of the board of directors.Mining Indaba’s Sustainability Advisory Committee. He is a memberfounding director of the Advisory Board of the Shanghai Gold Exchange, the Accenture Global Mining Executive Council, memberAfrica Resource Management, Environment and principal business advisor to theClimate Change Institute, of Business Advisers Southern Africa and the Institute of Directors Southern Africa. Mr Dushnisky is also a member of the Law Society of British Columbia, the Canadian Bar Association and the Canadian Council for the Americas. He represents AngloGold Ashanti on the World Gold Council and the International Council on Mining and Metals. He is a past member of the Board of Trustees of the Toronto-based University Health Network.think-do-tank recently established in Accra, Ghana.



Christine Ramon (51)Alan Ferguson (64)
BCompt, BCompt (Hons), CA(SA), Senior Executive Programme (Harvard)BSc; CA (Scotland)
Chief Financial Officer and ExecutiveIndependent Non-Executive Director
Appointed: 1 October 20142018
Board committee memberships:•    Investment Committee

Christine Ramon was appointed Chief Financial Officer of AngloGold Ashanti with effect from 1 October 2014. She is responsible for the group technical accounting and reporting function ensuring full compliance/disclosure in accordance with the relevant regulations. She is also responsible for the group’s treasury, taxation, insurance and risk function, shared services, including the South African region’s commercial function, managing the group’s corporate costs, internal audit and information technology.

Ms. Ramon has held senior financial management and executive positions in various companies, in particular as chief financial officer and executive director of Sasol Limited from 2006 to 2013. Prior to this, she was chief executive officer of Johnnic Holdings Limited, having previously served as its financial director. Ms. Ramon has served on the boards of Transnet SOC Limited, Lafarge SA Limited, and Johnnic Communications Limited. She is currently a non-executive director on the board of MTN Group Limited.

Ms. Ramon currently serves as the chairperson of the CFO Forum of South Africa and as a director of the International Federation of Accountants. She served previously as a member of the Standing Advisory Committee to the International Accounting Standards Board and as Deputy Chair of the Financial Reporting Standards Council of South Africa.


Alan Ferguson (61)
BSc (Accountancy and Business Economics), CA (Institute of Chartered Accountants of Scotland)
Independent Non-Executive Director
Appointed: 1 October 2018
Board committee memberships:
•    Audit and Risk Committee
•     (Chairperson)
Remuneration and Human Resources Committee

Nominations and Governance Committee


Alan Ferguson is an Independent Non-Executive Director. As a chartered accountant, Mr. Ferguson is highly experienced in a range of finance roles. He was a former chief financial officer of a number of FTSE-listed entities, including Lonmin Plc. Since 2011 he has held non-executive directorships on a number of FTSE boards including current positions with Johnson Matthey, Croda International and the Weir Group where he chaired their audit committees. He currently serves on the boards of Harbour Energy and Marshall Motors Holdings all basedwhere he chairs the audit committees. At Marshall Motors he is also Interim Chair and Senior Independent Director. These companies are listed on the FTSE in the United Kingdom. He chairsIn addition, Mr. Ferguson serves as a member of the Business Policy Panel of the Institute of Chartered Accountants of Scotland and is a member of the leadership team of the UK Audit Committee’s on all these boards.Committee Chair’s Independent Forum.









Albert Garner (63)(66)
BSE Aerospace and Mechanical Sciences
Independent Non-Executive Director
Appointed: 1 January 2015
Board committee memberships:
•    Audit and Risk Committee
•    Investment Committee
•    Nominations
Remuneration and Human Resources Committee





249

Albert Garner is an Independent Non-Executive Director. He has extensive experience in capital markets, corporate finance and mergers and acquisitions having worked with Lazard Frères & Co., LLC for 39over 40 years in various leadership positions. He is one of the most senior bankers at Lazard, currently leading their special committee practice and chairing their fairness opinion committee. He formerly led Lazard’s corporate finance practice. AlbertMr. Garner became a general partner in 1989 and is now Vice Chair -Investmentof Investment Banking. Over the past 10 years he has advised and acted as lead adviser to more than 50 companies and their boards of directors on transformative transactions.



Rhidwaan Gasant (59)Nelisiwe Magubane (56)
BCompt (Hons), CA (SA), ACIMA, Executive Development ProgrammePr.Eng, BSc, MBA
Independent Non-Executive Director
Appointed: 12 August 20101 January 2020
Board committee memberships:
•    Audit and Risk Committee (Chairman)
•    Investment
Social, Ethics and Sustainability Committee


Rhidwaan Gasant is an Independent Non-Executive Director. HeNelisiwe Magubane has extensive experience in the energy sector, having started her career in Eskom. After a stint in the private sector as a consulting electrical engineer, she joined the Department of Minerals and Energy as the chief director and was previouslylater appointed as the Chief Executive OfficerDeputy Director General. Ms. Magubane was the Director General of Energy Africaand a non-executive director on the board of Eskom Holdings SOC Limited. He servesMore recently, she was appointed as the chairperson of the Strategic Fuel Fund, a director and chairssubsidiary of the Audit and Risk Committees of international companies in the MTN Group. His other directorships include those in the Rapid AfricanCentral Energy Holdings Group,Fund.

As an entrepreneur, she has established Matleng Energy Solutions, a start up oil and gas exploration business focused on Africa, and Edcon Limited.70% women-owned company that provides energy solutions.



David Hodgson (71)Maria Richter (67)
BSc (Civil Engineering), BSc (Mining) (Hons), BCom, Advanced Management Program (Harvard)BA, Juris Doctor
Independent Non-Executive Director
Appointed: 25 April 20141 January 2015
Board committee memberships:
•    Investment Committee
•    Social, Ethics and Sustainability Committee

David Hodgson is an Independent Non-Executive Director. He formerly held a series of senior and executive positions over three decades with the Anglo American and De Beers group of companies, and also held the post of Chief Operating Officer of AngloGold Ashanti from November 2001 through to his retirement in April 2005. In addition, he has held non-executive directorships at Moto Gold Mines Limited, Uranium One Inc., Goliath Gold Mining Limited, Auryx Gold Corporation, Montero Mining and Exploration Limited, and Acacia Mining. He currently serves as a non-executive director of Osino Resources Corp., a Canadian company, focused on the acquisition and development of gold projects in Namibia.


Nozipho January-Bardill (68)
BA (English and Philosophy), MA (Applied Linguistics), Diploma Human Resources Management, Certificate in Education
Independent Non-Executive Director
Appointed: 1 October 2011
Board committee memberships:
•    Social, Ethics and Sustainability Committee (Chairman)
•    Remuneration and Human Resources Committee

Ambassador Nozipho January-Bardill is an Independent Non-Executive Director. She has extensive experience in both the local and international public and private sectors. She is an Independent Non-Executive Director (NED) on the boards of AngloGold Ashanti and Mercedes Benz South Africa (MBSA), and chairs the Social, Ethics and Sustainability board sub-committees of both companies. She is also a member of the MTN Foundation and was appointed the Chairperson of the Council of the Nelson Mandela

University in October 2017. Other NED positions were held in Credit Suisse Securities Johannesburg as well as Southern Life and Momentum Limited after their merger. She has also chaired the board of the SA Health and Welfare Sector Education and Training Authority (HWSETA).

Ms. January-Bardill is chair of the Interim Board of the newly registered UN Global Compact Local Network in South Africa and a member of the boards of Shared Value Africa Initiative (SVAI), Phenduka Literacy project and Tshwaranang Legal Advocacy to end violence against women. She was the Acting Chief of Staff of UN Women from Jan 2014 to March 2015 and special adviser to UN Women in SA and New York until the end of 2017.

She has served as Executive Director of Corporate Affairs and Spokesperson at MTN Group, and on multiple boards of operations in the MTN African footprint. Prior to MTN she was the South African Ambassador to Switzerland, Lichtenstein and the Holy See, where she thrived in economic and cultural diplomacy. On her return she was appointed Deputy Director General of Human Capital Management in the South African Department of Foreign Affairs (now DIRCO).

Other senior appointments included being the Chief Director of Transformation and Democratisation in the post-apartheid South African Parliament, and a member of the Council of the University of Cape Town. Ms. January-Bardill served 12 years as a member of the UN Committee for the Elimination of Racial Discrimination and among other publications on race and gender justice, recently contributed a chapter in a Manchester University Press publication (2017) entitled Fifty Years of the International Convention on the Elimination of all Forms of Racial Discrimination-A Living instrument. Besides her passion for working on issues related to human rights, gender and social justice in the private and public sectors, Ms. January-Bardill is active in advancing good corporate governance, ethical conduct, environmental stewardship and sustainable development, including the promotion of the 2030 Global Goals.


Michael J. Kirkwood (71)
AB, Stanford (Economics & Industrial Engineering)
Independent Non-Executive Director
Appointed: 1 June 2012
Board committee memberships:•    Remuneration and Human Resources Committee (Chairman)
•    (Chairperson)
Audit and Risk Committee
•    
Nominations and Governance Committee

Michael J. Kirkwood is an Independent Non-Executive Director. He experienced and respected former international banker, having worked at the highest levels of Citigroup during his 30-year career with the bank. He is currently Chairman of Ondra Partners LLP, Senior Independent Director of Bushveld Minerals Limited, and a non-executive director of London Scottish International Limited. He formerly served as Chairman of Circle Holdings plc and on the boards of Kidde plc, UK Financial Investments Limited, Eros International plc and as deputy chairman on PwC’s Advisory Board. During his career in finance, he held appointments as Chairman of British American Business Inc., as President and a Fellow of The Chartered Institute of Bankers and as Deputy Chairman of the British Bankers Association.


Maria Richter (64)
BA, Juris Doctor
Independent Non-Executive Director
Appointed: 1 January 2015
Board committee memberships:•    Audit and Risk Committee
•    Remuneration and Human Resources Committee
•    Nominations Committee

Maria Richter is an Independent Non-Executive Director. She is an experienced non-executive director who has served on a diverse range of UKUS and International boards. She previously served on the board of Barclays International, Barclays Bank plc and National Grid plc in the UK from 2003 to July 2014 where she was the chairperson of the finance committee and a member of the audit and nominations committees. She currently sits on the boards of Rexel Group, France, a global leader in the professional distribution of energy products and services, and Bessemer Trust.  SheTrust, a US wealth management company, and is a member of the audit and compensationnominations committees of Rexel and the remuneration committee of Bessemer Trust.


On 1 September 2017, she joined the divisional board of Barclays International and in April 2018, she transitioned from Barclays International to the board of Barclays Bank plc and is a member of both its risk and remuneration committees. Maria’sDuring Ms. Richter’s professional

career spanned from 1980 to 2002 during which time she served in various positions at the former Dewey Ballantine, Prudential, Salomon Brothers Inc. and Morgan Stanley & Co.


Rodney Ruston (68)Scott Lawson (60)
BSc, Civil Engineering, MBA Business, BE (Mining)
BSc, MBA
Independent Non-Executive Director
Appointed:1 January 2012December 2021
Board committee memberships:•    Investment Committee (Chairman)
•    Audit
Social, Ethics and RiskSustainability Committee


Rodney Ruston is an Independent Non-Executive Director. HeScott Lawson has over 35 years of business experience during which he has led private and publicly-listed companies in the resources, oilmining industry and gasis an experienced global mining executive who has served in a broad range of roles. He is the former executive vice president and construction industries. His international experiencechief integration officer of Newmont Corporation. Prior to this Mr. Lawson served as theexecutive vice president and chief technology officer and other executive of a heavy construction and mining contractor coupledtechnical roles for Newmont Corporation.

Mr. Lawson spent 22 years with chiefRio Tinto in executive roles with operating resource companies providesRio Tinto Alcan, Rio Tinto Technology and Innovation and Rio Tinto Kennecott. He is the board with a broad based director, who can provide insightformer senior vice president, engineering services at Peabody Energy responsible for global engineering and advice on the full range of domestic and international activities in the AngloGold Ashanti business. Mr. Ruston is currently the chief executive of County Coal Limited, an Australian listed start-up company, which he joined in July 2012. He was previously Chief Executive Officer and President of North American Energy Partners Inc., a large Canadian mining and construction contracting company, which he took public with a listing on the NYSE and the TSX. Prior to that he was managing director of Ticor Limited, an Australian-based titanium producer with operations in Australia and South Africa.technical services support.










250

Jochen Tilk (55)(58)
Bachelors in Mining Engineering,, Masters in Mining Engineering
Independent Non-Executive Director
Appointed: 1 January 2019
Independent Non-Executive Director
Appointed: 1 January 2019
Board committee memberships:•    Investment Committee (Chairman)
•    (Chairperson)
Social, Ethics and Sustainability Committee
Nominations and Governance Committee
Audit and Risk Committee


Jochen Tilk is an Independent Non-Executive Director. He is the former Executive Chair of Nutrien Inc., a Canadian global supplier of agricultural products and services based in Saskatoon, Saskatchewan.services. He is the former President and Chief Executive Officer of Potash Corporation of Saskatchewan.Corporation. Mr. Tilk, previously spent 25 years with Inmet Mining Corporation, a Canadian-based, international metals company, with five of those years as the company’s president and chief executive officer. He is also a director of Emera Inc., a publicly listed energy utility company and the Princess Margaret Cancer Foundation, a not-for-profit organization, which raises fundsorganization.

Alberto Calderon (62)
PhD, MPhil, MA, Juris Doctor, BA
Chief Executive Officer and Executive Director
Appointed: 1 September 2021
Board committee memberships:None

Alberto Calderon’s executive experience includes leadership roles across the mining, petroleum, and energy sectors. He was CEO of Orica, the largest mining explosives company in the world. He was also an executive with the world’s leading diversified mining company, BHP Group Plc. During his time with BHP Group Plc, Alberto held a number of key leadership positions, including group executive and chief executive aluminum, nickel and corporate development, group executive and chief commercial officer.

Mr. Calderon was also CEO of Cerrejón Coal Company, an integrated thermal coal mine in Colombia, and CEO of the Colombian oil company, Ecopetrol. Prior to supportthis, Mr. Calderon held senior leadership positions in the Princess Margaret Cancer Centre.International Monetary Fund and the Colombian government and has been a board member of a range of private, public and non-government organisations.


Christine Ramon (54)
BCompt, BCompt (Hons), CA(SA), Senior Executive Programme (Harvard)
Chief Financial Officer and Executive Director
Appointed: 1 October 2014
Board committee memberships:Investment Committee

Christine Ramon has held senior financial management and executive positions in various companies. She previously served as Chief Financial Officer and Executive Director of Sasol. Prior to this, she was CEO of Johnnic Holdings, having previously served as Financial Director.

Ms. Ramon has served on the boards of MTN Group, International Federation of Accountants, the International Council of Mining and Metals, Rand Refinery, Lafarge SA (France), Transnet and Johnnic Communications. In addition, she has served as the Chairperson of the listed companies CFO Forum in South Africa, as a member of the Standing Advisory Committee to the International Accounting Standards Board and Deputy Chair of the Financial Reporting Standards Council of South Africa.

She is an alternate director of the World Gold Council and serves on the Presidential Council for State Owned Enterprises in South Africa.

Ms. Ramon has elected to take early retirement from her role as CFO at the end of June 2022.

Board movements during 20182021 and subsequent to year end

year-end
The following changes to the board of directors took place during the period from 1 January 20182021 to 31 December 20182021 and subsequent to year-end:

•On 18 February 2021, Ms. Maria Ramos stepped down as a member of the following directors retired at the Annual General Meeting on 16 May 2018Remuneration and being eligible for re-election were re-elected by the shareholders: Al Garner, Nozipho January-Bardill,Human Resources Committee and Mr. Rhidwaan Gasant and Christine Ramon.
Sindiswa Zilwa resigned as an Independent Non-Executive Director with effect from 15 May 2018.
Srinivasan Venkatakrishnan resigned as Chief Executive Officer and an Executive Director of the board with effect from 31 August 2018.
Kelvin Dushnisky was appointed as Chiefa member of the Remuneration and Human Resource Committee.
•Effective 1 September 2021, Mr. Calderon joined the Company’s Board of Directors as an Executive OfficerDirector.
•Effective 1 December 2021, Mr. Scott Lawson was appointed as an independent non-executive director to the Board and as a member of the Investment Committee and the Social, Ethics and Sustainability Committee.



251

•On 22 February 2022, the Company announced that Ms. Christine Ramon has elected to take early retirement from her role as CFO and Executive Director of the board with effect from 1 September 2018.Company at the end of June 2022. A process to identify a new CFO has commenced.
Alan Ferguson and Jochen Tilk were appointed as Independent Non-Executive Directors with effect from 1 October 2018 and 1 January 2019, respectively.

In terms of the company’s Memorandum of Incorporation (MoI), one third of the directors are required to retire at each Annual General Meeting (AGM)AGM and if they are eligible and available for re-election, will be put forward for re-election by the shareholders. The board has determined that the directors to retire at the next AGM on 9 May 2019 are MariaMses. Ramos, Richter Michael Kirkwood and David Hodgson. Ms. Richter isMagubane, who are eligible and hashave offered herselfthemselves for re-election. Messrs Kirkwood and Hodgson have elected not to stand for re-election in accordance with board policies and guidelines.







EXECUTIVE COMMITTEE

AngloGold Ashanti’s executive management team (Executive Committee) currently comprises nineseven members of whom two are executive directors. This committeeThe Executive Committee oversees the day-to-day management of the group’s activities and is supported by country and regional management teams as well as by group corporate functions.


In addition to Kelvin DushniskyMr. Alberto Calderon and ChristineMs.Christine Ramon, the following people are members of the Executive Committee:


Tirelo Sibisi (50)Stewart Bailey (48)
BSSc, Advanced HRChief Sustainability and Corporate Affairs Officer
Stewart Bailey’s portfolio includes stakeholder relations and the broader ambit of sustainability policy and oversight. He leads a strong team of specialists covering investor relations and communications, alongside the core sustainability disciplines, namely, environment, community and government relations, and human rights. Over 11 years with AngloGold Ashanti, based both in the US and South Africa, he has built in-depth knowledge of the Company and its stakeholders. Mr. Bailey was formerly Senior Vice President of Investor Relations & Group Communications, was appointed to his current role in 2019. In his previous role, Mr. Bailey covered debt and equity investors in the US, South Africa, the UK, Europe and Asia. He also held line responsibility for AngloGold Ashanti’s corporate communications programme, which included engagement with financial news media in South Africa, the US and the UK. He is a former financial journalist with Bloomberg LP in New York and Johannesburg.

Italia Boninelli (65)

MA, PGDip in Labour Relations, Executive Development Programme Post Graduate Diploma in Business Management and an MBA
Executive Vice President -Consultant – Group Human Resources

In her role as Executive Vice President - Group Human Resources, Tirelo SibisiItalia Boninelli is responsible for Group Human Resources,group human resources, which entails attracting, retaining and developing a highly engaged, diverse and productive workforce. She has more than 2030 years’ executive experience in the field of human resources both locallocally and Internationally,internationally, having been the Groupgroup executive for human resources at Gold Fields Limited, Network Healthcare Holdings Ltd and corporate social investment at PPC Cement.the Retail Banking division of Standard Bank.


Ms. Sibisi's experience includes 10 yearsBoninelli is a director on the board of London-listed Polymetal International in the information technologymining sector and has been on the advisory board of two universities. She continues to lecture and teach at IBM (South Africabusiness schools, and Europe) and at Telkom, making her a well-roundedshe is the author of numerous publications including three books on human resources generalist with strengthsand leadership. She is passionate in talent management, succession planning, organisational transformationher support for women’s leadership development programs and diversity management, union negotiations and executive compensation. She served on the Boardis a patron of Women in Mining in South Africa.

Effective 1 April 2022, Ms. Italia Boninelli will be replaced by Ms. Lisa Ali, who was appointed as Chief People Officer of the Institute of People Management in SA as a Non- Executive DirectorCompany and was a member of the Remuneration Committee and the FinanceExecutive Committee. She currently sits on the Board of AngloGold Ashanti in Ghana.

Charles Carter (56)
BA (Hons), DPhil
Executive Vice President - Strategy and Business Development

In his role as Executive Vice President - Strategy and Business Development, Charles Carter is responsible for group strategy, business development, corporate finance, investor relations and communications. He has worked in the mining industry in South Africa and the Americas for 25 years and has had responsibility for a range of additional portfolios that include human resources, risk management, business planning and executive responsibility for the company’s business in Colombia.

Graham Ehm (61)
BSc Hons, MAusIMM, MAICD
Executive Vice President - Group Planning and Technical

Graham Ehm, who has multi-commodity experience, has held senior leadership positions in AngloGold Ashanti in Tanzania and Australia. In his role as Executive Vice President - Group Planning and Technical, he is responsible for business planning and portfolio optimisation, capital investment optimisation, monitoring of projects, studies and exploration, and non-managed joint ventures. In 2014, he was also assigned accountability for the closure and redevelopment of the Obuasi Gold Mine.

Maria Sanz Perez (53)
BCom LLB, Higher Diploma in Tax, Advance Map Program (Harvard), Admitted Attorney
Executive Vice President - Legal, Commercial and Governance and Company Secretary

Maria Sanz Perez partners with the company’s business leaders to ensure AngloGold Ashanti complies with legal requirements across the group. Her other responsibilities include compliance, company secretarial functions and integrated reporting. She is also accountable for the legal and commercial aspects of global procurement. Ms. Sanz Perez has been with the group since 2011 and has worked in similar positions for leading South African companies in her career including Investec, Sappi and Afrox.


Ludwig Eybers (52)(55)
BSc, (Mining Engineering), Post graduate qualifications with Darden Business School, USA
Chief Operating Officer - International

Ludwig Eybers has over 30 years international mining experience. He joined AngloGold Ashanti in 2011 as Senior Vice President Namibia and Mining Task Force, based in Perth Australia. In 2013, he relocated to AngloGold Ashanti in South Africa to take-up the position of Senior Vice President Continental Africa Region. He was subsequently promoted to Chief Operations Officer-International in 2017. HeMr. Eybers is currently responsible for overall strategic and operational responsibilities for production at the company’s mining operations across three continents and eight countries.operations.



Marcelo Godoy (50)



PhD, Masters in Geostatistics



Stewart Bailey (45)
Executive Vice President - Corporate Affairs

Stewart Bailey was formerly Senior Vice President of Investor Relations & Group Communications, has been appointed as Executive Vice President: Corporate Affairs in 2019. His portfolio includes stakeholder relations and the broader ambit of sustainability policy and oversight. He leads a strong team of specialists covering each of the core sustainability disciplines. His in-depth knowledge of the Company and many of its stakeholders, close cooperation with the sustainability team over several years and ongoing work in integrating environmental, social and governance reporting into the broader business, provide a strong foundation for this role.

Mr. Bailey previously covered debt and equity investors in the US, South Africa, the UK, Europe and Asia. He is also a key member of AngloGold Ashanti’s capital markets team, which has successfully completed debt issues of more than $3bn since 2010. He also held line responsibility for AngloGold Ashanti’s corporate communications programme, which included engagement with financial news media in South Africa, the US and the UK. He is a former financial journalist with Bloomberg LP in New York and Johannesburg.

Sicelo Ntuli (40)
BSc Eng. (Electrical), MBA
Chief OperatingTechnology Officer - Africa

Sicelo NtuliMarcelo Godoy has over 20 years workof experience in the mining industry and has held various senior roles in Operations, Engineering, Business Strategy and Investor Relations. In 2011, he was appointed Managing Director of Iduapriem Mine and played a key role in the turnaround of the mine’s operating performance and reduction of costs. Mr. Ntuli was promoted topreviously Senior Vice President, Continental Africa Region in 2016Exploration at Newmont Corporation where he led the transitiondevelopment of Geitanumerous innovation programs, including a world-class orebody risk management system that delivered a step change in the reliability of production forecasts. Mr. Godoy is a recognised leader in the field of mine planning under geological uncertainty and a champion of diversity and inclusion. Prior to joining Newmont Corporation, he was Mining Sector Leader for Golder Associates in South America and a Director at Golder’s Global Board of



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Directors. During his tenure at Golder Associates, Marcelo managed major mining feasibility studies and reserve compliance audits for Codelco, Vale S.A., BHP Group Plc, Anglo American Plc and Antofagasta Minerals Plc.

He brings to AngloGold Ashanti experience in resource modeling, mine planning and project development, as well as a track record in leading technical teams and introducing technology to drive sustainable competitive advantage.

Lizelle Marwick (44)

B.Proc; LLB; LLM

Chief Legal Officer
Lizelle Marwick was appointed as Executive Vice President: General Counsel and Compliance on 1 July 2020, after previously serving as Senior Vice President: Deputy General Counsel. She joined the company in 2011 establishing and heading up the legal function for the Africa operations. She is familiar with all aspects of the organisation and well versed on multi-jurisdictional legal work covering a wide range of subjects, with extensive experience in governance, corporate transactions and government negotiations. Prior to joining AngloGold Ashanti, Ms. Marwick practiced law at Bowman Gilfillan in South Africa and Herbert Smith in the United Kingdom. She is admitted as an attorney in South Africa and a solicitor in England and Wales.

Terry Briggs (49)
BSc (Hons) in Geology; MEng

Chief Development Officer (effective 1 April 2022)
Mr. Terry Briggs was appointed as Chief Development Officer of the Company and a member of the Executive Committee with effect from 1 April 2022. His portfolio at AngloGold Ashanti will include Corporate Strategy and Business Planning, Business Development and greenfields exploration.

Mr. Briggs has almost 25 years of experience, spanning site based technical and management roles at several underground and open pit base and precious metal operations at all stages of development from start-up to underground operations, amongst other achievements. Heclosure, as well as regional and corporate leadership roles. Since 2008, Mr. Briggs has worked at Newmont Corporation where, most recently, he has served as Vice President Planning. Prior to serving in this role, Mr. Briggs held various leadership roles in Technical Services, Corporate Development and Finance at Newmont Corporation.

Mr. Briggs is represented on various geology and mining industry bodies and has authored a number of publications on engineering, geology and exploration.

Lisa Ali (54)

BSc (Hons) in Chemistry, Analytical Chemistry, Biochemistry; Executive MBA

Chief People Officer (effective 1 April 2022)
Ms. Lisa Ali was subsequently promotedappointed as Chief People Officer of the Company and a member of the Executive Committee with effect from 1 April 2022. In this role, Ms. Ali will be responsible for group human resources.

Ms. Ali has over 30 years of experience, most of which has been in extractive industries. Since 2020, Ms. Ali has served as Chief People and Sustainability Officer at Newcrest Mining Limited. Prior to joining Newcrest, Ms. Ali was Head of Transformation at Trinidad Petroleum Holdings Ltd. and its subsidiary companies and has held several senior positions at BP International PLC.


Executive Committee movements during 2021 and subsequent to year-end
The following movements to the Executive Committee took place during the period from 1 January 2021 to 31 December 2021 and subsequent to year-end:
•Ms. Tirelo Sibisi, Executive Vice President – Group Human Resources and a member of the Executive Committee, gave notice of her resignation effective 1 April 2021 and her contract of employment terminated on 30 September 2021.
•Mr. Alberto Calderon became Chief Executive Officer (CEO) and a member of the Company’s Executive Committee with effect from 1 September 2021.
•Ms. Christine Ramon, who served as Interim CEO, resumed her role as Chief Financial Officer (CFO) of the Company with effect from 1 September 2021, remaining a member of the Executive Committee and the Board. Ms. Ramon has elected to take early retirement from her current role as CFO and Executive Director of the Company effective 30 June 2022.
•Mr. Ian Kramer, who served as Interim CFO, resumed his role as Senior Vice President: Group Finance with effect from 1 September 2021, stepping down from the Executive Committee.
•Mr. Marcelo Godoy was appointed as Chief Technology Officer of the Company and a member of the Executive Committee with effect from 15 October 2021. Mr. Godoy replaces Mr. Graham Ehm, Executive Vice President: Group Planning & Technical and a member of the Executive Committee, who retired on 31 December 2021.



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•Mr. Ludwig Eybers became the sole Chief Operating Officer (COO) of the Company upon the consolidation of the COO role into a single portfolio with effect from 31 December 2021.
•Mr. Sicelo Ntuli, formerly Chief Operating Officer: Africa including South African operations in 2019. and a member of the Executive Committee, resigned effective 31 December 2021.
•Ms. Lisa Ali was appointed as Chief People Officer of the Company and a member of the Executive Committee with effect from 1 April 2022. Ms. Ali will be replacing Ms. Italia Boninelli, who acted as an executive consultant overseeing human resources with effect from 1 April 2021.
•Mr. Ntuli is alsoTerry Briggs was appointed as Chief Development Officer of the Company and a Harvard Business School alumnus.member of the Executive Committee with effect from 1 April 2022. Mr. Briggs will be replacing Mr. Vaughan Chamberlain, who was appointed as Acting Chief Development Officer of the Company and an interim member of the Executive Committee with effect from 1 October 2021. Mr. Chamberlain will step down from the Executive Committee with effect from 1 April 2022.




COMPETENTQUALIFIED PERSONS

As part of its suite of annual reports, AngloGold Ashanti produces a Mineral Resource and OreMineral Reserve Statement and all the information in this report that relates to Exploration Results, Mineral Resource and OreMineral Reserve is based on information compiled by the CompetentQualified Persons.


During the past decade, the company has developed and implemented a system of internal and external reviews aimed at providing assurance in respect of OreMineral Reserve and Mineral Resource estimates. A documented chain of responsibility exists from the CompetentQualified Persons at the operations to the Company’s Mineral Resource and Ore Reserve Steering Committee. Accordingly, the Chairman of the AngloGold Ashanti Mineral Resource and Ore Reserve Steering Committee, MrMr. Vaughan Chamberlain, assumes responsibility for the Mineral Resource and OreMineral Reserve processes for AngloGold Ashanti and is satisfied that the CompetentQualified Persons have fulfilled their responsibilities.


Vaughan Chamberlain (56)(58)
MSc (Mining Engineering), BSc (Hons) (Geology), FAusIMM

Vaughan Chamberlain holds a BSc (Hons) degree in Geology from the University of Natal and a MSc in Mining Engineering from the University of the Witwatersrand. He started his career with Anglo American Corporation in 1987 as a geologist at Western Deep Levels East Mine (now TauTona mine). He joined AngloGold in 1998 and currently holds the position of Senior Vice President: Strategic Technical Group and is Chairman of the AngloGold Ashanti Mineral Resource and Ore Reserve Steering Committee.


6B.COMPENSATION





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6B.    COMPENSATION

REMUNERATION AND HUMAN RESOURCES COMMITTEE


Remuneration and Human Resources Committee (Remco)


The Remco comprisesis composed of fivefour non-executive directors .directors. Its purpose is to discharge the responsibilities of the board relating to all compensation, including all salary and equity compensation of the company’s executives. The committeeRemco establishes and administers the company’s executive remuneration and its broad objectives include;include: aligning executive remuneration with company performance and shareholder interests; setting remuneration standards aimed at attracting, motivating and retaining a competent executive team; linking individual executive pay with operational and company performance aligned to strategic objectives; and evaluating the compensation of executives including approval of salary, equity and incentive based awards.


With respect to its mandate on human resources, the committee has oversight to all strategic aspects of people development and human resource issues. The committee also considers and makes recommendations to shareholders on non-executive director’s fees.


The performance of the executive team, including the executive directors, is considered relative to the prevailing business climate and market conditions, as well as to annual evaluations of the achievement of key performance objectives. Bonuses paid to the executives are a reflection of performance of each of the executives and the company as a whole.


In 2018,2021, the committee was composed of the following members:


Members
Michael J. KirkwoodMaria Richter (Chairperson);
Sipho Pityana;
Nozipho January-Bardill;
Alan Ferguson - (since 1 October 2018);
Maria Richter; andAlbert Garner
Sindiswa Zilwa - (resigned effective 15 May 2018).Rhidwaan Gasant (appointed effective18 February 2021)


The meetings of the committee are attended by the Chief Executive Officer, Chief Financial Officer and Executive Vice President: Group Human Resources,Resources/ Chief People Officer, except when they are conflicted or have a personal financial interest, such as when their own remuneration or benefits are being discussed.


Remuneration policy


TheOur remuneration policy is designed to allow AngloGold Ashanti to compete in a global market where we strive to retain and remunerate our employees using fair, robust and appropriate remuneration and to reward our employees for their contributions. Cost management and shareholder value remain fundamental drivers of our policy.


Linking pay and performance for our executives is important and by having a large portion of executive pay defined as at riskat-risk pay, the policy ensures that executive compensation is aligned with the overall performance of the company, the regions in which it operates and theits business units. The executives have an overriding focus on social sustainability including safety, and a large percentage of variable pay is directly linked to keeping our employees safe.


Total reward


When determining remuneration AngloGold Ashanti considers all elements of short-short-term and long-termlong-term; fixed and variable pay and ensures that it is consistent with the overall strategic direction of the company and each employee’s individual performance.


For a description of share-based compensation and awards (including cash awards) see “Item 6E: Share Ownership”.


ExecutiveOur executive directors do not receive payment of directorsdirectors’ fees or committee fees.


Benchmarking


Our executivesexecutive employees and non-executives are benchmarkednon-executive director’s remuneration is evaluated against a global group of competitors.comparator companies. AngloGold Ashanti’s size and complexity as well as each individual executive’s role areis reviewed against the benchmarkour peer group from a base pay, benefits,and benchmarked based on guaranteed pay and variable pay perspective (which takes into consideration individual performance). The 2018 bespoke benchmark survey was completed by Mercer.pay. Performance (Company and individual) is a key factor influencing the remuneration of the executive employees.


Our salary benchmarks are targeted at the market median of a global market.market in our industry. Where there is a shortage of specialist and/or key technical skillstechnically skilled employees, we may offer a salary that is higher than the benchmark median salary is paid.salary.






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Each executive’s role is individually sized to ensure the best match possible. The comparison is done onfor the same or similar roles irrespective of placelocation of work (including a review of purchasing power parity between countries).work. Each component of remuneration (base salary, short-term incentives, long-term incentives co-investment plan and employee benefits and allowances) is analysed and compared with the benchmarksour global peer group’s market range and the overall package is reviewed accordingly. The last allocation regarding the long-term incentive and the co-investment plan participation was done in 2017 and 2018, respectively. The newOur incentive scheme, the Deferred Share Plan (DSP), has beenwas implemented in January 2018. For a description of the DSP, see “Item 6E: Share Ownership--AngloGold Ashanti share incentive scheme-DeferredOwnership—AngloGold Deferred Share Plan (DSP)”.


Retirement benefits/pension


Retirement benefits are granted to all executives. All new executives and employees, receive retirement benefits under defined contribution plans. There are no longer any executives in the legacy defined benefit plan. Contributions vary based on the employee’s retirement plan. See “Item 18: Financial Statements—Note 8—Employee Benefits” and “Item 18: Financial Statements—Note 26—Provision for Pension and Post-Retirement Benefits”.


EXECUTIVE DIRECTORS'DIRECTORS’ AND EXECUTIVE MANAGEMENT REMUNERATION


See "Item“Item 18: Financial Statements-Note 31-Related Parties-DirectorsStatements—Note 31—Related Parties—Directors and other key management personnel-Executivepersonnel—Executive Directors’ and Prescribed Officers’ remuneration"remuneration”.


NON-EXECUTIVE DIRECTORS' COMPENSATION

DIRECTORS’ FEES AND ALLOWANCES
The compensationfees of non-executive directors isare fixed by shareholders at the annual general meeting. In addition to their compensation, the non-executive directors receive fees for their participation on board committees and allowances for travelling internationally to attend board meetings. Non-executive directors do not receive further payments from the company and are precluded from participation in the company’s share incentive scheme.

NON-EXECUTIVE DIRECTORS’ REMUNERATION

See "Item“Item 18: Financial Statements-Note 31-Related Parties-DirectorsStatements—Note 31—Related Parties—Directors and other key management personnel-Non-Executive Director remuneration"personnel—Non-Executive Directors’ fees and allowances”.










6C.BOARD PRACTICES




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6C.    BOARD PRACTICES


The Board of Directors


The company is governed by a unitary board of directors, the composition of which promotes the balance of authority and precludes any one director from dominating decision-making. Our board membership at year-end comprised 12eleven directors, 10nine independent non-executive directors and two executive directors.


The board is supported by its committees and has delegated certain functions to these committees without abdicating any of its own responsibilities. This process of formal delegation involves approved and documented terms of reference, which are reviewed annually.


See Item“Item 6A: “DirectorsDirectors and Senior Management” for information about the composition of the Boardboard and directors’ term of office and year of appointment.


Appointment and rotation of directors


Several factors including the requirements of relevant legislation, best practice recommendations, qualifications and skills of a prospective board member and the requirements of the Director’s Fit and Proper Standards of the company, as well as regional demographics are considered in appointing board members. New directors are appointed pursuant to the recommendations of the Nominations and Governance Committee, which conducts a rigorous assessment of the credentials of each candidate. Newly appointed directors are elected at the next annual general meeting following their appointment and to stand for approval by shareholders.


At the next Annual General Meeting (“AGM”) Messrs Alberto Calderon and Scott Lawson will be named for election by shareholders as directors of AngloGold Ashanti.

In terms of the company’s Memorandum of Incorporation (MoI)(“MoI”), one third of the directors are required to retire at each Annual General Meeting (AGM)AGM and if they are eligible and available for re-election, will be put forward for re-election by the shareholders. The board has determined that the directors to retire at the next AGM on 9 May 2019 are Mses. Maria Ramos, Maria Richter who isand Nelisiwe Magubane, and being eligible, and hassuch directors have offered herself for re-election, and Michael Kirkwood and David Hodgson who have elected not to offer themselves for re-election.


The company’s MoI does not set a mandatory retirement age for non-executive directors. However, in accordance with recommendations of King IV -— any independent non-executive director serving more than nine years should be subjected to a rigorous review of his or her independence and performance by the board.


Service contracts


Non-Executive Directors
Non-executive directors receive fees for their services as directors which are approved by shareholders at annual general meetings.AGMs. Non-executive directors do not participate in the company’s share incentive scheme.


Non-executive directors do not hold service contracts with the company.


Executive Committee
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 Deferred Share Plan (DSP). Interim appointments (including interim Chief Executive Officer, interim Chief Financial Officer and interim Chief Development Officer) include an allowance aligned to the Company’s acting allowance policy to recognise the additional responsibilities associated with these roles.


South African-based executives are paid a portion of their remuneration offshore, which is detailed under a separate contract. This reflects global roles and responsibilities and takes account of offshore business requirements.


The executive contracts are reviewed annually and include a change of control provision. The change of control is subject to the following triggers:
•The acquisition of all or part of AngloGold Ashanti; or
•A number of shareholders holding less than thirty-five percent of the company’s issued share capital consorting to gain a majority of the board and make management decisions; and
•The contracts of Executive Committee members are either terminated or their role and employment conditions are curtailed.


In the event of a change of control becoming effective, thean executive will, in certain circumstances, be subject to both the notice period and the change of control contract terms. The notice periodand change of control periods applied per category of executive and the change of control periods(excluding interim appointments) as at 31 December 20182021 were as follows:




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Executive Committee member
Executive committee memberNotice periodChange of control
Chief Executive Officer12 months12 months
Chief Financial Officer6 months6 months
Other Executive Management team members6 months6 months



As at 23 March 2022, VA Chamberlain, the Interim Chief Development Officer, remains on a three-month notice period and a three-month change of control period.

Key activities of the board and committees during 20182021


The activities of the board and committees during 20182021 were aimed at promoting the economic stability of the business. This entailed ensuring that its operations were conducted with due regard to the expectations and needs of stakeholders, the safety and health of employees and communities, and the development of systems to ensure proper access to and dissemination of credible information.


Board and committee meeting attendance


The compositionDirectors’ attendance at board and committee meetings during 2021 was as follows:


Board (7)
Audit and RiskInvestmentRemuneration and Human ResourcesSocial, Ethics and Sustainability
Nominations and Governance (8)
Special Committee (9)
Number of meetings in 20211466116202
MDC Ramos (1)
14n/an/a26202
KOF Busia13n/a6n/a619n/a
A Calderon (2)
5n/an/an/an/an/an/a
AM Ferguson146n/a11n/a19n/a
AH Garner14n/a611n/an/a2
R Gasant (3)
13558n/a202
SP Lawson (4)
0n/a1n/a0n/an/a
NVB Magubane (5)
143n/an/a6n/an/a
KC Ramon (6)
13n/a6n/an/an/an/a
MC Richter146n/a11n/a19n/a
JE Tilk1466n/a6202

(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 the board meeting held on 14 April 2021.
(7)    During 2021, the Board held 5 scheduled Board meetings and committees at9 special Board meetings.
(8)    During 2021, the dateNominations and Governance Committee held 4 scheduled meetings and 16 special meetings in respect of this reportthe recruitment of a CEO and attendance at meetings during 2018 are disclosednon-executive director.
(9)    The Special Committee was established in 2020 to provide oversight for various aspects of the table below:company’s strategy.





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 Board
 Audit and Risk
 Investment
 
Remuneration
and Human
Resources
 
Social,
Ethics and
Sustainability

 Nomination
 
CEO search(6)

 
NED search(6)

Number of meetings in 201810
 5
 4
 4
 5
 2
 4
 4
SM Pityana10
 n/a
 n/a
 4
 5
 2
 4
 4
R Gasant10
 5
 4
 n/a
 n/a
 n/a
 n/a
 n/a
DL Hodgson10
 n/a
 4
 n/a
 5
 n/a
 n/a
 1
NP January-Bardill10
 n/a
 n/a
 4
 5
 n/a
 n/a
 n/a
MJ Kirkwood10
 5
 n/a
 4
 n/a
 2
 n/a
 3
AH Garner(1)
10
 3
 4
 n/a
 n/a
 1
 n/a
 n/a
RJ Ruston10
 5
 4
 n/a
 n/a
 n/a
   3
MDC Richter10
 5
 n/a
 4
 n/a
 2
   n/a
SV Zilwa(2)
5
 3
 1
 2
 n/a
 n/a
 n/a
 n/a
AM Ferguson (3)
2
 1
 n/a
 1
 n/a
 n/a
 n/a
 n/a
S Venkatakrishnan (4)
7
 n/a
 n/a
 n/a
 4
 n/a
 n/a
 n/a
KPM Dushnisky (5)
2
 n/a
 n/a
 n/a
 n/a
 n/a
 n/a
 n/a
KC Ramon10
 n/a
 4
 n/a
 n/a
 n/a
 n/a
 n/a
(1)
AG Garner ceased being a member of the Audit and Risk Committee as of 15 May 2018, and was appointed to the Nominations Committee on with effect from 16 February 2018.
(2)
SV Zilwa resigned from the board with effect from 15 May 2018.
(3)
AM Ferguson was appointed to the board with effect from 1 October 2018.
(4)
S Venkatakrishnan resigned as chief executive officer with effect from 31 August 2018.
(5)
KPM Dushnisky was appointed as chief executive officer with effect from 1 September 2018.
(6)
Two special purpose committees were established by the board in 2018, the CEO Search Committee and the NED Search Committee.


Audit and Risk Committee


The Audit and Risk Committee comprises sixfive independent non-executive directors who collectively possess the skills and knowledge to oversee and assess the strategies and processes developed and implemented by management to manage the business within a continually evolving mining environment.


The Audit and Risk Committee’s duties as required by section 94(2)94(7) of the South AfricanSA Companies Act, King IV and JSE Listing Requirements are set out in its board-approved terms of reference which is reviewed and updated annually. These duties were discharged as follows:
•reviewed the quarterly market updates and the half year results;
•confirmed the integrity of the group’sGroup’s Integrated Report, Annual Financial Statements and the Form 20-F;
•reviewed the expertise, experience and performance of the finance function and Chief Financial Officer;
•assessed the scope and effectiveness of the systems to identify, manage and monitor financial and non-financial risks;
•reviewed the procedures for detecting, monitoring and managing the risk of fraud;
•reviewed the scope, resources, results and effectiveness of the internal audit department;
•approved the internal audit plan and subsequent changes to the approved plan;
•ensured that a combined assurance model is applied to provide a co-ordinatedcoordinated approach to all assurance activities;
•nominated the appointment of independent external auditors by the shareholders;
•reviewed and approved the terms of engagement as contained in the engagement letter of the external auditors;
•approved the remuneration of the external auditors;
•pre-approved all non-audit services in line with a revised formal policy on non-audit services;
•assessed the external auditors’ independence;

•annually consider the suitability, after assessing the information provided by the audit firm in terms of section 22.15(h) of the JSE Listings Requirements, for appointment of the audit firm and the designated individual partner;
•assessed the effectiveness of the group’s external audit function;
approved•assessed the appointment ofaudit tender process for the external auditors to provide independent limited assurance on certain sustainability indicators as included in the Sustainable Development Report;2023 year-end audit;
•reviewed developments in reporting standards, corporate governance and best practice;
•monitored the governance of information technology (IT) and the effectiveness of the group’s information systems;
•reviewed the adequacy and effectiveness of the group’s compliance function; and
•evaluated the effectiveness of the committeeAudit and Risk Committee through a self-assessment.


Proceedings and Performance Review


The Audit and Risk Committee formally met fivesix times in 2018.2021.


The current members of the Audit and Risk Committee are:
Audit and Risk Committee MembersR GasantAM Ferguson (Chairman and independent NED)
MJ KirkwoodR Gasant (Independent NED)
AH Garner (Independent NED)
RJ Ruston (Independent NED)
MDCMC Richter (Independent NED)
AM FergusonNVB Magubane (Independent NED) joined 1 October 2018
JE Tilk (Independent NED)
Number of meetings held from
January to December 2018
2021		FiveSix

NED - Non-Executive Director


The Chief Financial Officer, Senior Vice President: Finance, GroupExecutive Vice President: General Counsel and Company Secretary,Compliance, Senior Vice President: Group Internal Audit; Vice President: Group Tax; Group Risk Manager; Chief Information Officer; Group Compliance Officer, the external auditors, as well as other assurance providers regularly attend committee meetings in an ex officio capacity and provide responses to questions raised by committee members during meetings. The full Audit and Risk Committee meets separately during closed sessions with management (including the Chief Executive Officer), internal audit and external audit at every scheduled quarterly meeting.


The Audit and Risk Committee has assessed its effectiveness through the completion of an independent external evaluation process, during which results were discussed, actions taken and processes put in place to address areas identified for refinement.requiring further attention.


Remuneration and Human Resources Committee (“Remco”)


The Remuneration and Human Resources CommitteeRemco activities are governed by the Terms of Reference (these were reviewed and approved atby the August 2018 Remuneration and Human Resources Committee meeting)board in February 2022). The purpose of the CommitteeRemco is to assist the Board in discharging its oversight responsibilities relating to all compensation, including annual base salary, annual incentive compensation, employment, severance pay and ongoing



259

perquisites or special benefit items and equity compensation of the Company’s executives, including the Chief Executive Officer as well as retention strategies, design and application of material compensation programmes and share ownership guidelines.


With respect to its mandate on human resources, the CommitteeRemco has strategic oversight of matters relating to the development of the Company’s human resources with the main objective of creating a competitive human resource for the Group.


The CommitteeRemco operates in an independent role, operating as an overseer with accountability to the Board. This is accomplished by:


•Determining specific remuneration packages for the Executive Committee (ExCom) members, and reviewing these annually. The broad framework and cost of executive remuneration shall be a matter for the Board on the recommendation and advice of the Remco;
•Reviewing and approving corporate goals and objectives relevant to the compensation of the Chief Executive Officer;ExCom members;
•Evaluating the performance of the Chief Executive OfficerExCom (excluding executive directors) in light of these goals and objectives annually and setting compensation based on such evaluation;evaluations;
•Ensuring that the mix of fixed and variable pay, in base pay, shares and other elements of compensation for each ExCom member meets the company’sCompany’s requirements and strategic objectives;
Linking individual pay with operational•Determining any long-term incentive component of each ExCom member’s compensation based on awards given to such member in past years and companythe Company’s performance against set targets;
•Considering other matters relating to the remuneration of or terms of employment applicable to ExCom members that may be referred to the Remco by the Board;
•On an annual basis, or at intervals that the Remco may deem necessary, considering the results of independent research into executive remuneration trends, to assist the Remco in relation to strategic objectives;its decision-making regarding executive remuneration;
•Ensuring that all benefits, including retirement benefits and other financial arrangements are justified and correctly valued and reviewed annually;
•Considering the sentimentspayment of performance linked non-pensionable bonuses to ExCom members, and viewssetting the criteria for, and relative value of such payments;
•Satisfying itself as to the accuracy of recorded performance measures that govern the vesting of share awards and incentives;
•On an annual basis, approving the granting of share options or performance shares to qualifying employees of the company’s investors;Company;
•Regularly reviewing incentive schemes to ensure continued contribution to shareholder value and ensureensuring that these are administered in terms of the rules;rules of the relevant incentive scheme;
Regularly reviewing human resources strategy aimed at•As and when required, considering proposed amendments to the rules of the incentive schemes and making recommendations for their approval by shareholders;
•Reviewing the executive director’s termination payments and ensuring the supply and retention of sufficient skilled resources to achieve the company’s objectives;
Ensure that they are included in the remuneration policy together with any obligations arising from such contracts which would give rise to termination payments; and
•Appointing an independent remuneration advisor to provide consultation to the executive directors, who make recommendations to the Board and implementation report is put to a non-binding advisory vote atshareholders on the general meetingremuneration of non-executive directors, taking into consideration market trends on non-executive directors’ remuneration, the views and sentiments of shareholders once every year; and

Review the outcomefinancial position of the implementation of the remuneration policy to ensure that the set objectives are being achieved and fairness is addressed.Company.


The current members of the CommitteeRemco are:

Remuneration and Human
Resource Committee Members
MJ Kirkwood (ChairmanMC Richter (Chairperson and independent NED)
NP January-Bardill (Independent NED)
SM Pityana (Board Chairman)
MDC RichterR Gasant (Independent NED)
AM Ferguson (Independent NED) joined 1 October 2018
A Garner (Independent NED)
Number of meetings held from
January to December 2018
2021		FiveEleven
Other individuals who regularly
attended meetings
(attended by invitation or if needed to contribute pertinent insights and information)		KPM DushniskyA Calderon (CEO)
TKC Ramon (Interim CEO and CFO)
TR Sibisi (EVP: Group Human Resources)
M HopkinsI Boninelli (Executive Human Resources Consultant)
P Wolstenholme representing PwC (Independent Advisor to the Committee)Remco)
SD Van Rensburg (VP: Group Remuneration and Benefits and Secretary to the Committee)Remco)
EM Mabuza (VP: Group Remuneration and Benefits and Secretary to the Remco)
CM van Dyk (Remuneration and Benefits Consultant)

NED – Non-Executive Director








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Remuneration Consultants


WhereWhen appropriate, the CommitteeRemco obtains advice from independent remuneration consultants. TheThese consultants are employed directly by the CommitteeRemco and engage directly with them to ensure independence.


The CommitteeRemco has appointed PwC to provide specialist, independent remuneration advice on all forms of executive and non-executive pay.


Mercer performs an independent bespoke executive survey and its advice is primarily around salary benchmarking for both executive and non-executive pay.










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6D.    EMPLOYEES


The average number of attributable employees (including contractors) in the AngloGold Ashanti group over the last three financial years was:
202120202019
Africa17,260 16,829 15,786 
Australia1,332 1,230 1,140 
Americas9,972 8,789 8,114 
Other, including corporate and non-gold producing subsidiaries1,997 1,807 1,353 
South Africa - discontinued operations (1)
— 8,297 7,870 
Total*30,561 36,952 34,263 
*    The number of contractors employed on average during 2021 was 16,384.
 2018
 2017
 2016
South Africa18,803
 26,245
 28,507
Continental Africa14,833
 13,593
 12,691
Australasia1,051
 974
 925
Americas7,973
 8,511
 8,126
Other, including corporate and non-gold producing subsidiaries1,589
 2,157
 2,400
Total*44,249
 51,480
 52,649
*The number of contractors employed on average during 2018 was 14,281.

(1)    In 2020, represents the monthly average number of employees for the nine months as discontinued operations before completion of sale on 30 September 2020.


Labour relations and collective bargaining


AtThe AngloGold Ashanti allapproach to employee relations is predicated on a relationship-based model. We work to establish constructive relations with our employees have the right to freedom of association and collective bargaining, which we recognisetheir union representatives based on our Company values, through effective line management, and apply according toby following the applicable laws and regulationslabour legislation across our global footprint.

Except for those in each of the countries in which we operate. Only our Australasian operations do not have collective bargaining, as this is not recognised in Australia.

In the South African region, engagement was aimed at informing relevant stakeholders about the restructuring process which is aimed at protecting the longer-term sustainability of the business and limit job losses. The process was completed reaching a balance between preserving local jobs while we focused on creating a smaller, more profitable production base in the South African region. These engagements helped to mitigate forced retrenchments, limiting the 2,000 retrenchments initially anticipated to 72. This was achieved by offering voluntary severance packages, and preserving jobs by transferring ownership when selling some of the minesAustralia and the non-core assets, such as healthcare facilities and rail networksUnited States, most employees in our operating jurisdictions are union members. No strikes were reported for the Vaal River region.reporting period.

Additionally, in 2018 we concluded wage negotiations and signed a three-year wage agreement with all employee representatives (unions). The wage negotiations were concluded amicably without any disruptions and we managed to agree on a new shift arrangement. This shift arrangement was implemented in November 2018 and will allow for planned work cycle activities to be realised, resulting in improved safe production levels, while productivity is expected to increase.


In Continental Africa - labour relations remained stable across the region, despite some labour stoppage challenges.region.


In Guinea, at Siguiri, 93.8% of the 2018mine employees are unionised. Collective bargaining negotiations for wage conditions and services were conducted in October 2021 and agreements were reached between the parties successfully without any internal or external mediation. Engagement with the Union Delegation continues through regular meetings, communications and timeous implementation of the collective agreements.

In Ghana, at Obuasi, the labour relations environment remained stable throughout the year. Unionisation at Obuasi is limited to Stratum I, with 57% of the total workforce unionised as at December 2021. Annual wage negotiations were successfully conducted and finalised within 10 days with the agreed outcome remaining within mandate.

In Mali, the mine labour relations climate continued to be influenced by the uncertainty relating to the Sadiola sulphides project. Negotiations relating to the phased retrenchments necessitated by restricted and suspended mining operationsfor 2022 were successfully concluded and implemented. These were effective from 31 May 2018. The final agreement focused mainly on providing an additional social package on topin Q1 2022.

At Iduapriem, four unions represent bargaining unit employees who constitutes 95.2% of the legal package, thereby helping to softenentire workforce. To improve the social impact of the retrenchments. This agreement nullified anycollaboration between management and site unions’ leadership, a capacity building workshop on workplace labour relations practices was organised in 2021. Collective bargaining on wage increasesadjustment for 2018 and 2019. At Yatela, the retrenchment process, as approved by the labour inspector in 2017,2021 was concluded.

In Ghana, following commitment to develop a salary adjustment framework in 2017, Iduapriem successfully concluded a two-year salary adjustment framework with the Ghana Mineworkers Union in mid-2018.and implemented.


In Tanzania towards53% of the employees are unionised in the bargaining unit. In 2021, a fourth Collective Bargaining Agreement (the “Fourth CBA”) was concluded with a majority Trade Union called TAMICO; the Fourth CBA was concluded without strike action or operational disruption. Management in collaboration with TAMICO are currently in the process of implementing various articles which have been agreed in the Fourth CBA. The Fourth CBA lasts for two years except for wage, education allowance and end of 2017, Geita management and the union concluded a compressed working week agreement for implementation in 2018 in respect of Geita mine employees. This agreement was concluded alongside a full review of the two-year collective bargaining agreement. The next full review of the bargaining agreement is planned for October 2019. Annual wage negotiations were successfully concludedyear package which are negotiated on 3 December 2018.an annual basis.


In the Americas region, annual wage negotiations in both Brazil, and Argentina were concluded and agreements signed. Brazil signed all three collective agreements (Nova Lima,Lima/Sabará, Santa Bárbara and Crixás) were signed with the first weekunions and implemented effective September 2021. The Brazilian context of August 2018. higher inflation, gold price and exchange rates have made the process more complex. Despite a seven day strike at the Córrego do Sítio mine, the 2021 negotiation was concluded with a salary increase of 8.5%, lower than the accumulated Brazilian inflation for the period (9.85%). The routine to strengthen the relationship continuously with the employees and their representatives was key to that achievement.

CVSA, in Argentina, completed the 2018 salaries2021 salary negotiation in January 2019 (whenNovember 2021, aligned with country inflation, was known andwith a final percentage increase of 50.04% for 2019 was agreed) and after two prior adjustments made in May 2018 (fix amount paid) and September 2018 (percentage increase).2021 effective until April 2022.










6E.SHARE OWNERSHIP


262

6E.    SHARE OWNERSHIP

DIRECTORS’ AND PRESCRIBED OFFICERS’ INTERESTS IN ORDINARY SHARES


The interests of directors and prescribed officers in the ordinary shares of the company at 31 December 2018,2021, which individually did not exceed one percent of the company’s issued ordinary share capital are included in the annual financial statements, see "Item“Item 18: Financial Statements—Note 31-Related Parties-Directors’31—Related Parties—Directors’ and Prescribed Officers’ interests in AngloGold Ashanti shares"shares”.


A register detailing Directors and Prescribed Officers’ interests in contracts is available for inspection at the company’s registered and corporate office. See "Item“Item 10H: Documents on Display"Display”.



CHANGE IN DIRECTOR’S AND PRESCRIBED OFFICER’S INTERESTS IN ANGLOGOLD ASHANTI SHARES SINCE 31 DECEMBER 20182021


Refer "Itemto “Item 18: Note 31 - 31—Related Parties - Parties—Directors’ and Prescribed Officers’ interests in AngloGold Ashanti shares"shares”




SHARE OWNERSHIP OF EXECUTIVE OFFICERS/EXECUTIVE MANAGEMENT


Under the Listings Requirements of the JSE, AngloGold Ashanti is not required to disclose, and it does not otherwise disclose or ascertain, share ownership of individual executive officers/executive management in the share capital of AngloGold Ashanti. However, toTo the best of its knowledge, AngloGold Ashanti believes that AngloGold Ashantiits ordinary shares held by executive officers, in aggregate, do not exceed one percent of the company'scompany’s issued ordinary share capital.




MINIMUM SHAREHOLDING REQUIREMENT FOR EXECUTIVESEXECUTIVE MANAGEMENT


With effect from March 2013, a minimum shareholding requirement (MSR) was introduced for the executive management team (including executive directors). All executive management team members (including executive directors) are required to have a minimum shareholding in the Company as per the table below.

The MSR was extended to include a 12- month post termination holding, effective 1 January 2022:

RoleWithin three years of appointment/from introduction of MSR (1 January 2020)Within six years of appointment/from introduction of MSR (1 January 2020)Holding requirement12 - month Post Termination Holding
(1 January 2022)
CEO150% of net annual base salary300% of net annual base salaryThroughout employment as a director or prescribed officerThe 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 form the company’s share incentive will be held for one year post-termination period. The holding will be up to their required MSR.
CFO125% of net annual base salary250% of net annual base salary
Executive Management Team100% of net annual base salary200% of net base salary
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
Accumulation of the post termination holding commences on 1 January 2022, Executives have 5 years from introduction or appointment to accumulate holding





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The table below summarises each executive director and executive committee member’s accomplishment of the MSR:

ExecutiveSix-year target achievement date
MSR holding as at 31 December 2021 as a percentage
of net base pay
Three-year MSR target achievement percentageSix-year MSR target achievement percentage
Executive directors
A Calderon (1)
September 20277%150%300%
KC RamonMarch 2021899%125%250%
Prescribed officers
SD BaileyJanuary 2025199%100%200%
I Boninelli (2)
April 20270 %100%200%
VA Chamberlain (3)
October 202757%100%200%
GJ Ehm (4)
March 2019243%100%200%
L EybersMarch 2023370%100%200%
MC Godoy (5)
October 20270 %100%200%
L MarwickJuly 2026108%100%200%
S Ntuli (6)
January 2025181%100%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.

MINIMUM SHAREHOLDING REQUIREMENT FOR NON-EXECUTIVE DIRECTORS (“NEDs”)

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.

ANGLOGOLD DEFERRED SHARE PLAN (DSP)

On 16 May 2017, the shareholders approved the introduction of the Deferred Share Plan (DSP). The DSP became effective 1 January 2018 and was designed to better align the interests of company management with those of shareholders by rewarding decision-making that promotes the long term health of the business by increasing the maximum vesting period of shares from two to five years, and introducing a claw-back provision, reducing the impact of uncontrollable factors, like gold price and currency fluctuations, in determining remuneration, providing better incentive for prudent, value-adding capital allocation, capping the number of shares that can be issued under the DSP in any given year to 1% of total shares in issue, and providing greater incentives for excellence in the broad area of sustainability, which covers the safety, environmental, health, governance, community relations and human capital disciplines.

The scope of participation in the DSP include Executive Directors, members of the Executive Committee and senior management employees of the company and its subsidiaries. These participants are allocated units with the opportunity to acquire shares in the company. The intention of the incentive scheme is to ensure that the medium- to long-term interests of the executives and senior management employees are aligned with the shareholders’ interests, providing rewards to the executives and senior management employees and wealth creation opportunities to the shareholders when the strategic performance drivers are achieved. All share awards which remain unexercised by the tenth-year anniversary from the date of grant, automatically lapse for no value.

Non-Executive Directors are not eligible to participate in the DSP.

Each metric is weighted and has a threshold, target and stretch definition related to the company budget and the desired stretch targets for the year. Below threshold achievement results in no payment. At the end of each financial year, the Company’s and the CEO, CFO and EVP/COO’s performance is assessed by the Remco and the Board against the defined metrics to determine



264

the quantum of the cash portion and the quantum of the deferred portion as a percentage of base salary based on on-target achievement:
CashSharesTotal Incentive
LevelOn Target Achievement
CEO100.00%200.00%300.00%
%
%
CFO85.00%
%		185.00%
%		270.00%
%
%
EVP/COO75.00%
%		174.00%
%		249.00%
%
%

CEO means Chief Executive Officer.
CFO means Chief Financial Officer.
EVP/COO means Executive Vice President/Chief Operating Officer.

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 with the exception of the Executive Committee members who have post termination vesting for good-leavers. Effective 1 January 2021, all Executive Committee members (including the CEO and CFO) streamlined strategic objectives (KPIs), between 3 to 4 at a maximum, as compared to the previous 10 KPIs as held by the CEO. Individual KPIs account for 20% of the performance scorecard in the DSP incentive scheme and 80% towards the company scorecard.

Company and individual performance measures are assessed over each financial year, with the exception of certain company measures that are measured over a trailing three-year basis. The first allocation under the DSP was made in February 2019 in respect of the 2018 performance year. For further information about the DSP, see Exhibit 19.4.1.3.

PARTICIPATION BY EXECUTIVE DIRECTORS, EXECUTIVE MANAGEMENT TEAM MEMBERS AND OTHER MANAGERS IN THE ANGLOGOLD SHARE INCENTIVE SCHEME

For details of the share-based awards and rights to subscribe for ordinary shares in the company granted to, and exercised by, executive directors, executive management team members and other managers on an aggregate basis during the year to 31 December 2021 and subsequent to year end up to 23 March 2022, see “Item 18: Financial Statements-Note 31-Related Parties-Directors and other key management personnel”.

PARTICIPATION BY EMPLOYEES IN THE ANGLOGOLD SHARE INCENTIVE SCHEME

For details of the share-based awards and rights to subscribe for ordinary shares in the company granted to, and exercised by, employees on an aggregate basis during the year to 31 December 2021, see “Item 18: Financial Statements—Note 9—Share Based Payments”.





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ITEM 7: MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS

Overview

Description of AngloGold Ashanti’s share capital

AngloGold Ashanti’s share capital consists of four classes of stock:

•Ordinary shares, par value 25 South African cents each (the “ordinary shares”);
•A redeemable preference shares, par value 50 South African cents each (the “A redeemable preference shares”);
•B redeemable preference shares, par value 1 South African cent each (the “B redeemable preference shares”); and
•C redeemable preference shares of no par value (the “C redeemable preference shares”).

The authorised and issued share capital of AngloGold at 31 December 2021 is set out below:
Title of classAuthorisedIssued
Ordinary shares600,000,000 417,501,452 
A redeemable preference shares2,000,000 — 
B redeemable preference shares5,000,000 — 
C redeemable preference shares30,000,000 — 

All the issued ordinary shares are fully paid and are not subject to further calls or assessment by AngloGold Ashanti. The A and B redeemable preference shares were redeemed in December 2021. No C redeemable preference shares have been issued as of 23 March 2022. Accordingly, there are no A, B or C redeemable preference shares outstanding as of 23 March 2022. For a discussion of rights attaching to the ordinary shares, the A redeemable preference shares, the B redeemable preference shares and the C redeemable preference shares, see “Item 10B: Memorandum of Incorporation”.

The following are the movements in the ordinary issued share capital at 31 December:

Ordinary shares
Number of
Shares		RandNumber of
Shares		RandNumber of
Shares		Rand
202120202019
At 1 January416,890,087 104,222,525 415,301,215 103,825,307 412,769,980 103,192,498 
Issued during the year:
Exercise of options by participants in the AngloGold Share Incentive Scheme611,365 152,841 1,588,872 397,218 2,531,235 632,809 
31 December 2021417,501,452 104,375,366 416,890,087 104,222,525 415,301,215 103,825,307 

During the period 1 January 2022 to and including 23 March 2022, 727,597 ordinary shares were issued at an average issue price of R246.32 per share, resulting in 418,229,049 ordinary shares being in issue at 23 March 2022.

Redeemable preference shares

A and B redeemable preference shares, all of which were held by Eastvaal Gold Holdings Limited, a wholly owned subsidiary of AngloGold Ashanti, were redeemed in December 2021. As of 23 March 2022, the Company has not issued any C redeemable preference shares. The C redeemable preference shares have no par value but have the same rights as the B redeemable preference shares save that the C redeemable preference shares rank after the B redeemable preference shares (but prior to the A redeemable preference shares) as regards the payment of dividends, redemption proceeds and payment on winding up of the company. Accordingly, there are no A, B or C redeemable preference shares outstanding as of 23 March 2022. The process to cancel all the authorised A, B and C redeemable preference shares is in process.








266

7A.    MAJOR SHAREHOLDERS

According to information available to the directors, the following are the only shareholders or their associates holding, directly or indirectly, in excess of five percent of the ordinary issued share capital of the company:
Ordinary shares held at31 December 202131 December 202031 December 2019
Shareholder*Number of
Shares		Percent
Voting
Rights		Number of
Shares		Percent
Voting
Rights		Number of
Shares		Percent
Voting
Rights
Public Investment Corp. of South Africa44,332,506 10.62 39,846,637 9.56 30,439,075 7.33 
Coronation Holdings37,322,250 8.94 n/an/an/an/a
BlackRock Inc.27,155,066 6.50 27,956,084 6.71 41,236,154 9.93 
Van Eck Globaln/an/a26,488,311 6.35 27,375,511 6.59 

* Shares may not necessarily reflect the beneficial shareholder.

At 31 December 2021, a total of 135,501,107 shares (or 32.5 percent of issued ordinary share capital) were held by The Bank of New York Mellon, as Depositary for the company’s American Depositary Receipt programme. Each American Depositary Share (ADS) is equivalent to one ordinary share. At 31 December 2021, the number of persons who were registered holders of ADSs was reported at 2,012. AngloGold Ashanti is aware that many ADSs are held of record by brokers and other nominees, and accordingly the above numbers are not necessarily representative of the actual number of persons who are beneficial holders of ADSs or the number of ADSs beneficially held by these persons.

All ordinary shareholders have the same voting rights.

As at 31 December 2021, there were 24,731 holders on record of AngloGold Ashanti ordinary shares. Of these holders 486 had registered addresses in the United States and held a total of 63,440,198 ordinary shares, or 15.20 percent of the total outstanding ordinary shares. In addition, certain accounts on record with registered addresses outside the United States, including The Bank of New York Mellon, hold AngloGold Ashanti ordinary shares, in whole or in part, beneficially for United States persons.

At 23 March 2022, a total of 127,824,510 ADSs or 30.6 percent of total issued ordinary share capital were issued and outstanding and held on record by 1,994 registered holders.

Insofar as is known to AngloGold Ashanti, there was no person who, directly or indirectly, jointly or severally, exercised or could exercise control over AngloGold Ashanti, nor is AngloGold Ashanti aware of any arrangements which might result in a change in control of AngloGold Ashanti.



267

7B.    RELATED PARTY TRANSACTIONS

The Company had the following transactions with related parties during the year ended 31 December:
2021
Purchases from related party
(in million)$
Purchases of goods and services from related parties
Rand Refinery (Pty) Limited14 

2021
Sales and
services
rendered to
related parties
(in million)$
Sales and services rendered to related parties
Rand Refinery (Pty) Limited7 

Amounts due by joint ventures and associates arising from purchases of goods and services are unsecured and non-interest bearing.

As at 31 December 2021 the outstanding balances arising from the sale of goods and services due by associates and joint ventures is $7 million.

As at 31 December 2021 there are no outstanding balances arising from loans owed to or by related parties.






268

7C.    INTERESTS OF EXPERTS AND COUNSEL

Not applicable.



269

ITEM 8: FINANCIAL INFORMATION




270

8A.    CONSOLIDATED FINANCIAL STATEMENTS AND OTHER FINANCIAL INFORMATION

See “Item 18: Financial Statements”.





271

LEGAL PROCEEDINGS

There is no material proceeding in which a director, officer or affiliate of AngloGold Ashanti is either a party adverse or has a material interest adverse to the company.

In addition to the proceedings described below, the company becomes involved, from time to time, in various claims, legal proceedings and complaints incidental to the ordinary course of its business.


TAX MATTERS

•The State of Minas Gerais v. Mineração Serra Grande S.A. (MSG): In Brazil, MSG received a tax assessment in October 2003 from the State of Minas Gerais related to VAT on gold bullion transfers. The tax administrators rejected MSG’s appeal against the assessment. MSG is now appealing the dismissal of the case to the State Court of Minas Gerais. The assessment is approximately $9 million. Any possible payment by MSG would be set off by an indemnity from Kinross Gold Corporation (Kinross) of $5 million provided for as part of the company’s acquisition of Kinross’ interest in MSG in 2012. The matter is currently pending in the State Court of Minas Gerais.

•Brazilian tax authorities v. AngloGold Ashanti Córrego do Sítio Mineração SA and Mineração Serra Grande S.A. (MSG): AngloGold Ashanti’s subsidiaries in Brazil, including AGA Mineração (formerly AngloGold Ashanti Brasil Mineração Ltda) and MSG, are involved in various disputes with the Brazilian tax authorities. These disputes date back to 2007 and involve federal tax assessments including income tax, royalties, social contributions, VAT and annual property tax. Various new claims, relating to VAT on diesel and consumables, for $12 million were assessed by management during the second half of 2020 and classified as possible claims, based on external legal opinions. Collectively, the total possible amount involved across all disputes is approximately $45 million.

•Colombian Tax Office (DIAN) v. AngloGold Ashanti Colombia S.A.S. (AGAC) and Gramalote Colombia Limited (Gramalote): Since 2013, AGAC received various notices from the DIAN that it disagreed with the company’s tax treatment of certain items in its 2010, 2011, 2013 and 2014 income and equity tax returns (including the treatment of exploration expenditure). The official assessments from the DIAN for those tax returns calculate additional taxes of $17 million. Penalties and interest for such additional taxes amounted to $95 million as of 31 December 2021. However, AGAC believes that the DIAN has applied the tax legislation incorrectly and subsequently filed lawsuits before the Administrative Court of Cundinamarca (the trial court for tax litigation) challenging each of the DIAN’s rulings in respect of those tax returns. In April 2018, the Administrative Court of Cundinamarca denied AGAC’s arguments with respect to the 2011 income and equity tax litigation. AGAC subsequently appealed this judgement to the Council of State of Colombia (the highest court for tax matters) where the appeal is currently pending. A final judgement could take several years. The company’s other lawsuits with respect to its 2010, 2013 and 2014 income and equity tax returns are still pending before the Administrative Court of Cundinamarca.

Since 2019, Gramalote also received various notices from the DIAN that it disagreed with its 2013 and 2014 income and equity tax returns on the same basis as the abovementioned AGAC returns. The official assessments from the DIAN for those tax returns calculate additional taxes of less than $100,000. Penalties and interest for such additional taxes amounted to $10 million as of 31 December 2021. However, Gramalote also believes that the DIAN has applied the tax legislation incorrectly and subsequently filed lawsuits before the Administrative Court of Cundinamarca challenging each of the DIAN’s rulings in respect of those tax returns. Gramalote’s lawsuits with respect to its 2013 and 2014 income and equity tax returns are still pending before the Administrative Court of Cundinamarca.

The total amount claimed by the DIAN, related to the above tax matters, amounted to $122 million of which $105 million related to penalties and interest as of 31 December 2021. Following a judgment of the Council of State in July 2019 holding that duplicate penalties may not be charged, the company expects that certain penalties will likely be waived, reducing the overall exposure by $48 million to $74 million in respect of those tax matters. In addition, from 2017 onwards, the deduction of exploration costs is prohibited following a change in Colombian tax legislation. As a result, exploration costs have been treated in accordance with the amended tax legislation subsequent to that date.

•Argentina Tax Authority (AFIP) v. Cerro Vanguardia S.A. (CVSA): In July 2013, CVSA received a notification from the AFIP requesting corrections to the 2007, 2008 and 2009 income tax returns of about $1.1 million relating to the non-deduction of tax losses previously claimed on hedge contracts. The AFIP is of the view that the financial derivatives could not be considered as hedge contracts, as hedge contract losses could only be offset against gains derived from the same kind of hedging contracts. Penalties and interest on the disputed amounts are estimated at a further $5.5 million. CVSA and AFIP have corresponded on this issue over the past several years, and the Argentinian tax authorities continue to assert their position regarding the use of the financial derivatives. CVSA filed an appeal with the Tax Court in June 2015, and the parties submitted their final reports in July 2017. The matter is pending with the Tax Court.







272

•Ghanaian tax authorities v. AngloGold Ashanti (Ghana) Limited (AGAG): In Ghana, AGAG received tax assessments of $9 million as of 31 December 2021 in respect of the 2004-2014 tax years, following an audit by the Ghanaian tax authorities related to withholding taxes on payments to non-resident persons. AGAG raised objections with the Ghanaian tax authorities and believes that the withholding taxes were not properly assessed. On several occasions, most recently in 2017, AGAG met with the Commissioner-General of the Ghana Revenue Authority and provided its position in writing together with the relevant supporting documentation. AGAG has yet to receive a response from the Commissioner-General.

COLOMBIA

•Santa María-Montecristo and La Colosa class action lawsuits: Class action lawsuits have been filed in relation to each of AngloGold Ashanti Colombia S.A.S.’s (AGAC) Santa María-Montecristo and La Colosa projects. Each of the two lawsuits aims to stop exploration and mining in certain restricted areas affected by the projects due to environmental concerns.

In respect of the Santa María-Montecristo class action lawsuit, in September 2011, the Administrative Court of Tolima granted one of the plaintiffs a preliminary injunction suspending AGAC’s mining concession contracts in relation to this project. AGAC has challenged this injunction, nevertheless, it remains in place during the course of the court proceedings. In May 2019, the Administrative Court of Tolima ruled that a technical study be prepared to define the places in which mining activities could be performed in the Combeima canyon without posing any threat to the water reservoirs of Ibagué, the capital of the Tolima department. In September 2020, the Council of State of Colombia (the highest court for administrative matters) on appeal overruled the decision of the Administrative Court of Tolima. The Council of State’s decision, which is final and not subject to further appeal, determined that AGAC, as concessionaire, has a right to develop the project if it can demonstrate to the mining and environmental authorities on the basis of technical studies that its mining exploration and, eventually, exploitation activities, will not impact the water resources of the Coello River basin and its tributaries. Until such time, the injunction remains in place.

The consolidated La Colosa class action lawsuit originally consisted of four separate class actions. In relation to this project, in October 2016, Tolima’s Administrative Court ordered that a technical study be prepared by a panel of seven experts (selected by the plaintiff, AGAC, universities, the Colombian government and an NGO) to determine whether the La Colosa project presents a “threat” to the environment during its exploration phase. In December 2017, Ibagué’s Third Administrative Court ordered that another technical study, similar to the one described in the October 2016 order, be prepared for the La Colosa project. AGAC appealed both orders. In September 2018, Tolima’s Administrative Court consolidated all class actions in relation to the La Colosa project into one single class action lawsuit which is currently pending before the Council of State. The orders to prepare the technical studies have been temporarily suspended pending resolution by the Council of State. If AGAC’s appeal before the Council of State is not successful, the company may have to perform one or more technical studies in relation to the La Colosa project. If the studies were to conclude that a “threat” exists, certain development activities at the La Colosa project may be suspended.

Further, while the plaintiffs in the La Colosa class action have petitioned the courts to cancel the mining concession contracts, the company believes that the judiciary system in Colombia does not have the authority to order such cancellation. Such power, by law, vests solely in the Colombian government which, through the relevant Colombian mining authorities, has the discretion to declare concessions void if a concession holder breaches applicable environmental laws or regulations. The Colombian government, as the authority granting the mining concession contracts, is also a defendant in this class action lawsuit together with AGAC. AGAC continues to oppose, through a variety of integrated legal and political strategies, the class action lawsuit that was filed against it. However, if the plaintiffs prevail and AGAC is unable to perform its core concession contracts as a result of the judicial decision, the company would be required to abandon the project.

•Cortolima’s injunction against AngloGold Ashanti Colombia S.A.S. (AGAC): In March 2013, Cortolima, a regional environmental authority in the Tolima department, issued a regulatory injunction against AGAC alleging, among other things, that in relation to certain of AGAC’s La Colosa mine design-related activities in the municipality of Piedras, AGAC engaged in drilling and other activities that could have negative effects on the environment. The injunction did not include any allegation that AGAC’s actions actually caused any environmental damages in Piedras. AGAC’s challenge of the injunction was unsuccessful before Cortolima. In August 2013, AGAC initiated legal proceedings before the Council of State of Colombia (the highest court for administrative matters) seeking annulment of the injunction as well as restoration of its rights to continue its activities in the area. In November 2019, the Council of State ruled that the competent judicial authority to decide on this matter is the Administrative Court of Tolima and referred the case to that court. In July 2020, the Twelfth Administrative Court of Tolima ruled that since the injunction is a preliminary and temporary measure imposed as part of the administrative approval process within Cortolima and not a final decision, it is not yet amenable to administrative judicial review. On 29 July 2021, this decision was reversed on appeal by the Administrative Superior Court of Tolima in a ruling that such injunctions are amenable to administrative judicial review. The appellate court ordered the Twelfth Administrative Court of Tolima to review the matter and issue a decision thereon. Consequently, the Twelfth Administrative Court of Tolima admitted the case and a first hearing is scheduled to be held on 21 April 2022. The company expects that a final resolution of this matter will include payment of a penalty by AGAC in an amount that is not expected to be material. While the injunction remains in place, AGAC is not able to engage in certain of its activities related to the La Colosa project.




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•Piedras and Cajamarca popular consultations: In 2013, the local council of the city of Piedras, near the La Colosa project, organised a popular consultation to ban all mining activities in Piedras (Piedras popular consultation), the result of which was validated by the Administrative Court of Tolima as part of an administrative procedure. Although the Piedras popular consultation did not have an immediate impact on the La Colosa project (due to its distant location from the project), AGAC believes the Piedras popular consultation was in violation of national law in Colombia. In 2013, AGAC filed a ‘tutela’ action (a legal action alleging a violation of constitutional rights) with the Council of State of Colombia (the highest court for administrative issues). In 2014, AGAC’s ‘tutela’ action was dismissed by the Council of State for lack of standing on the grounds that AGAC did not have mining tenements in Piedras. In addition, in 2015, AGAC filed a request for annulment of the administrative acts adopted by the local authorities in furtherance of the results of the Piedras popular consultation, which was rejected by the Second Administrative Court of Ibagué. AGAC subsequently appealed this ruling. On 22 July 2021, AGAC was notified that the Administrative Superior Court of Tolima ruled on appeal that, in light of the 2018 decision of the Constitutional Court of Colombia (the highest court for constitutional issues) holding that local municipalities or regions are not entitled to veto mining activities through popular consultations (as further described below), the results of the Piedras popular consultation, and the administrative acts adopted in furtherance thereof, were not enforceable. On 13 September 2021, a third party filed a ‘tutela’ action with the Council of State arguing that the Administrative Superior Court of Tolima did not have the authority to determine that the results of the Piedras popular consultation, and the administrative acts adopted in furtherance thereof, were not enforceable. On 15 December 2021, the Council of State dismissed this ‘tutela’ action for lack of standing.

In March 2017, the residents of the municipality of Cajamarca also voted in a popular consultation to disapprove mining projects in the municipality, including the La Colosa project (Cajamarca popular consultation). However, the Mining Minister of Colombia subsequently publicly confirmed that Cajamarca’s vote does not apply retroactively implying the Cajamarca popular consultation did not have an immediate impact on AGAC’s rights with respect to the La Colosa project. In April 2017, AGAC nevertheless suspended all exploration activities at the La Colosa project until there is more certainty about mining activity in Colombia. On 11 October 2018, the Colombian Constitutional Court issued ruling SU-095-2018 stating that local municipalities or regions were not entitled to veto mining activities through popular consultations. The Constitutional Court also ordered the national legislative body, the Congress of Colombia, to enact a law within two years to ensure that local communities and groups are adequately consulted in the approval of mining activities in accordance with specific criteria set out in its ruling. Subsequently, a group of citizens submitted an annulment claim before the Administrative Court of Cundinamarca to cancel AGAC’s mining contract in Cajamarca on the grounds of the results of the Cajamarca popular consultation. After having admitted the annulment claim in December 2019, the Administrative Court of Cundinamarca dismissed the plaintiffs’ claim on 26 May 2021 on procedural grounds. The plaintiffs subsequently appealed this decision and the appeal is currently pending before the Council of State.

•La Colosa Human Rights Litigation: In November 2014, the Personero (Ombudsman) of Ibagué, the capital of the Tolima department, filed a petition against the Colombian government before the Inter-American Commission on Human Rights (Commission), based in Washington, D.C., for alleged human rights violations protected by the American Convention on Human Rights (Convention) which has been ratified by Colombia along with many other Central and South American countries. The Commission has the power to refer a case to the Inter-American Court of Human Rights (Court) which is an autonomous judicial institution based in San José, Costa Rica whose purpose is the application and interpretation of the Convention. The petition alleges that the Colombian government denied justice to the Personero as a result of the failure of the Colombian judiciary to resolve the issues raised in two class actions filed by him before the local Colombian administrative courts within a reasonable period of time. Although AGAC is not a party to the suit, its outcome is nevertheless important to the development of the La Colosa project. The Commission currently has not accepted nor referred the case to the Court. If the case would be accepted or referred in the future, the Colombian government will have to defend itself against the lawsuit and will be bound by the findings of the Court. AGAC continues to regularly follow up with the Colombian government for updates.

•Paramo Delimitation: In November 2016, the Colombian government issued Resolution 1987 delineating certain wetlands or moorlands as environmentally important protected areas, which designation includes certain areas in and around the La Colosa project. In these areas there are limitations, or in some instances outright bans, on mining and mining-related activities. These limitations and bans could potentially adversely impact the design, operations and production of the mining project at the La Colosa project. In June 2017, AGAC filed suit against the Colombian Ministry of the Environment in the Administrative Court of Cundinamarca to annul Resolution 1987 on technical and other grounds. The lawsuit was admitted in April 2019. The Ministry of the Environment, as defendant in this action, is expected to file its response to the annulment claim.

•Zonte Metals: A Canadian junior mining company, Zonte Metals, filed applications for title to certain corridors, or small slivers of land, overlaying sections of the Gramalote project. The Secretary of Mines of Antioquia, the department in which the Gramalote project is located, denied the applications filed by Zonte Metals. However, Zonte Metals then filed a claim against the Colombian National Mining Agency (ANM) and the Antioquia Secretary of Mines before the Council of State of Colombia, by which it seeks to (i) revoke the resolution that denied its application and (ii) obtain the rights over the corridors requested in its application. The Council of State subsequently enjoined the Antioquia Secretary of Mines and Gramalote Colombia Limited (Gramalote) from progressing a pending application to integrate the disputed corridors with Gramalote’s tenement. The Antioquia Secretary of Mines has filed its response to the Zonte Metals claim, which includes arguments



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aligned with the interests and position of Gramalote. In September 2017, the Council of State approved Gramalote’s request to be made an interested party to the lawsuit, but it rejected Gramalote’s request to join the Antioquia Secretary of Mines as a co-defendant in August 2019. In January 2019, the Council of State also re-affirmed that the Council of State is the competent judicial authority to hear the matter. The date for the first hearing is currently pending.

GHANA

•Pompora Treatment Plant Litigation: In April 2013, AngloGold Ashanti (Ghana) Limited (AGAG) received a summons from Abdul Waliyu and 152 others in which the plaintiffs allege that they were or are residents of the Obuasi municipality or its suburbs and that their health has been adversely affected by emissions and/or other environmental impacts arising in connection with the current and/or historical operations of the Pompora Treatment Plant (PTP), which was decommissioned in 2000. The plaintiffs’ alleged injuries include respiratory infections, skin diseases and certain cancers. The plaintiffs subsequently did not timely file their application for directions but AGAG intends to allow some time to pass prior to applying to have the matter dismissed for want of prosecution. In February 2014, executive members of the PTP (AGAG) Smoke Effect Association (PASEA), sued AGAG by themselves and on behalf of their members (undisclosed number) on grounds similar to those discussed above, as well as economic hardships resulting from the failure of their crops. This matter has been adjourned indefinitely.

•Mining and Building Contractors Limited: In October 2011, AGAG terminated Mining and Building Contractors Limited’s (MBC) underground development agreement, construction on bulkheads agreement and diamond drilling agreement at Obuasi mine. The parties reached agreement on the terms of the separation and concluded a separation agreement in November 2012. In February 2014, AGAG was served with a demand issued by MBC claiming a total of $97 million. In December 2015, the proceedings were stayed in the Ghanaian High Court pending arbitration. In February 2016, MBC submitted the matter to arbitration. The arbitration panel has been constituted and held an arbitration management meeting to address initial procedural matters in July 2019. In May 2020, the Ghana Arbitration Centre granted MBC’s request to stay the arbitral proceedings indefinitely to enable it and AGAG to explore possible settlement. On 12 April 2021, the parties executed a settlement agreement to resolve the matter at no cost to either of the parties.

•Ghana Mining Licenses Litigation: In January 2019, AGAG and AngloGold Ashanti (Iduapriem) Limited (AAIL), along with other Ghanaian mining companies, were served with writs by two members of the Ghanaian Parliament seeking to invoke the jurisdiction of the Ghanaian Supreme Court (highest court in Ghana) for a declaration that the mining companies were not entitled to carry out any exploitation of minerals otherwise allowed under their relevant mining leases unless the leases had been timely ratified by the Parliament of Ghana. In January 2019, the Ghanaian Attorney General filed its statement of case, agreeing with the position of the plaintiffs (that the mining leases required parliamentary ratification) and requesting that the Supreme Court order the mining companies to pay the Ghanaian government all revenue related to mining activities accrued during the time such mining leases were unratified. In April 2019, AGAG and AAIL, in coordination with the other mining companies, filed their statement of case. The Supreme Court has not yet set a date for the first hearing to commence the case.

GUINEA

•Government of Guinea (National Claim Commission) v. Société AngloGold Ashanti Goldfields de Guinée SA (SAG): A national claim recovery commission established by the government of Guinea has demanded that SAG pay $43 million in dividends and penalties that would allegedly have been owed to the government of Guinea for the accounting years 2004 - 2007. SAG opposes the claim. Even though both parties had originally decided to submit their dispute to an independent audit firm to be appointed by a common accord, the independent audit firm was never appointed. In December 2010, the national claim recovery commission was disbanded and the matter was turned over to the Inspector General of the Ministry of Finance of Guinea. This matter has been dormant since it was handed over to the Inspector General.

TANZANIA

•Geita Gold Mining Limited (GGM): In January 2007, Jackson Manyelo and other plaintiffs filed a suit against GGM in the Mwanza High Court alleging that they were affected by blasting activities in the Katoma area carried out by GGM and had suffered damages in the amount of TZS9.6 billion (approximately $6 million). In April 2015, the High Court issued a judgement in favour of GGM. In 2016, plaintiffs appealed to the Court of Appeal, where the matter is pending.

•Geita Gold Mining Limited (GGM) and Samax Resources Limited (Samax) v. Government of Tanzania: In July 2017, GGM and Samax filed a notice of arbitration against the government of Tanzania arising from the enactment by the government of certain legislation that purports to make a number of changes to the operating environment of Tanzania’s extractive industries, including mining. The notice of arbitration was submitted in accordance with Article 12 of the Agreement for the Development of a Gold Mine at Geita, Mwanza between the government of Tanzania and each of GGM and Samax (the MDA), and under the 1976 Arbitration Rules of the United Nations Commission on International Trade Law (UNCITRAL). The Arbitral Tribunal has been duly constituted. Since January 2019, at the request of the parties, the arbitral proceedings have been stayed several times in order to afford the parties the opportunity to achieve an amicable resolution



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of the dispute and as a result of the impact of the COVID-19 pandemic. On 7 May 2021, the parties agreed to stay the arbitration proceedings for a further period of 18 months (until 7 November 2022).

•Arbitration under the United Kingdom-Tanzania Bilateral Investment Treaty (UK-Tanzania BIT):Unrelated to the arbitration proceedings under the MDA described above, in September 2017, GGM and Samax, together with Cluff Oil Limited and Cluff Mineral Exploration Limited, notified the government of Tanzania in writing that the Tanzanian government’s conduct amounted to a breach of its commitments under the UK-Tanzania BIT. This notice triggered a ‘cooling-off’ period under the UK-Tanzania BIT, pursuant to which the parties had six months to achieve an amicable resolution to their dispute. Following the expiry of the ‘cooling off’ period in March 2018, GGM, Samax, Cluff Oil Limited and Cluff Mineral Exploration Limited are now entitled to submit their dispute with the government of Tanzania to ICSID arbitration in accordance with the terms of the UK-Tanzania BIT to the extent that they may deem this necessary.

BRAZIL

•Public Civil Action between Mineração Serra Grande S.A. (MSG) and the Goiás State Public Prosecutor's Office (Prosecutor): In August 2019, the Prosecutor filed a public civil action against MSG in the local court of Crixás (Court) arguing that the Serra Grande tailings dam should be deactivated and decommissioned due to its size and upstream construction method. The Prosecutor requested the Court to grant an injunction ordering MSG to, inter alia, completely deactivate the tailings dam by 15 September 2021 and decommission the tailings dam, including complete removal of tailings material, by 15 September 2022. Further, the Prosecutor requested that a daily penalty of approximately $245,000 be imposed for MSG’s failure to comply with such injunction. MSG submitted its defence in September 2019 and contends that it has not violated any Brazilian laws or regulations applicable to operations of the Serra Grande tailings dam. In February 2020, the Court granted an injunction in respect of a number of the requests made by the Prosecutor. In line with the legal requirements of ANM Resolution No. 13/19, the injunction ordered the deactivation of the Serra Grande tailings dam by 15 September 2021, but did not include requirements to decommission the tailings dam, or to conduct complete removal of tailings material, by 15 September 2022. MSG filed a motion for clarification in relation to certain items of the Court’s decision. In May 2020, the Court clarified that its injunction should be interpreted in line with the legal requirements of ANM Resolution No. 13/19. In June 2020, the Prosecutor presented further technical arguments in court, reiterating its request for an injunction ordering MSG to, inter alia, deactivate the tailings dam by September 2021 and to decommission the tailings dam, including complete removal of tailings material. Afterwards, MSG filed an interlocutory appeal against the preliminary injunction granted in February 2020 and a motion for further clarification. In August 2020, both MSG and the Prosecutor filed petitions informing the Court that the parties did not wish to produce oral evidence at a hearing. On 29 May 2021, the Court upheld the preliminary injunction ordering the deactivation of the Serra Grande tailings dam by 15 September 2021 and its decommissioning by 15 September 2025, both of which are consistent with the deadlines established by existing legal and regulatory requirements. On 28 June 2021, the Prosecutor appealed this decision. This appeal is currently pending before the Court of Appeals of Goiás.

•Public Civil Action between AngloGold Ashanti Córrego do Sítio Mineração SA (AGA Mineração) and the Minas Gerais State Public Prosecutor's Office (Prosecutor): In March 2020, the Prosecutor filed a public civil action against AGA Mineração in the local court of Sabará (Court) alleging a violation of Minas Gerais Law No. 23.291/19, which was adopted in February 2019. Article 12 of this law prohibits the grant of an environmental license for construction, installation, expansion or raising of a tailings dam if the “dam break” studies identify communities that are located in the self-rescue zone. In February 2020, the state of Minas Gerais approved AGA Mineração’s permit to operate the Cuiabá tailings dam following the determination by the Minas Gerais’ Attorney’s Office that Law No. 23.291/19 does not apply to tailings dams already in operation. In its lawsuit, the Prosecutor requested the Court to grant an injunction ordering the suspension of AGA Mineração’s operational permit for the Cuiabá tailings dam on the grounds that it was issued in violation of this law. During the months of March through May 2020, all parties presented their arguments in court. In June 2020, the Court rejected the Prosecutor’s request to grant an injunction. In July 2020, the Court’s decision not to grant an injunction was upheld on appeal by the Court of Appeals of Minas Gerais. Subsequently, the Court issued an order proposing a conciliation hearing between the parties, to which none of the parties objected. On 28 January 2022, the parties filed a joint petition requesting the cancellation of the conciliation hearing and the suspension of the legal proceedings in view of negotiations between the parties to explore a possible settlement.






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DIVIDENDS

General

Dividends are proposed by and approved by the board of directors of AngloGold Ashanti (the “board”), based on the company’s financial performance and compliance with applicable laws, including in respect of the solvency and liquidity test contemplated in the SA Companies Act. Dividends are recognised when declared by the Board. AngloGold Ashanti’s dividend policy allows the Board to declare a semi-annual dividend to be based on 20 percent of the free cash flow generated by the business for that financial year, before taking into account growth capital expenditure, subject to applicable laws required to be complied with before a dividend may be declared by the Board. The Board may exercise its discretion on an annual basis, taking into consideration the prevailing market conditions, balance sheet flexibility and future capital commitments of the group.

As a company incorporated in accordance with and bound by the company laws of the Republic of South Africa with its primary listing on the Johannesburg Stock Exchange, AngloGold Ashanti is required to declare dividends in South African rands. Therefore, dividends are declared in South African rands and paid in Australian dollars, South African rands, British pounds and Ghanaian cedis. Dividends paid to registered holders of AngloGold Ashanti ADSs are paid in US dollars converted from South African rands by The Bank of New York Mellon, as Depositary, in accordance with the deposit agreement. Exchange rate fluctuations may therefore affect the value of the dividends received by registered shareholders and distributions paid by the relevant Depositary to investors holding AngloGold Ashanti securities. Moreover, fluctuations in the exchange rates of the US dollar may affect the US dollar price of the ADSs on the NYSE. For details on taxation and exchange controls applicable to holders of ordinary shares or ADSs, see “Item 10D: Exchange Controls”, “Item 10E: Taxation—South African Taxation — Taxation of dividends” and “Item 10E: Taxation—United States Taxation — Taxation of dividends”.

Dividends declared (in the ordinary course from trading and non-trading profits) to foreign shareholders are not subject to the approval by the South African Reserve Bank (SARB) in terms of South African foreign exchange control regulations. Dividends are freely transferable to foreign shareholders from both trading and non-trading profits earned in South Africa by publicly listed companies. Dividends in specie or special dividends may require SARB approval prior to declaration and payment to foreign shareholders.

Under South African law, the company may declare and pay dividends from any reserves included in total shareholder’s equity (including share capital and share premium) calculated in accordance with International Financial Reporting Standards (IFRS), subject to the solvency and liquidity test.

Withholding tax

South Africa currently imposes a Dividend Withholding Tax on Companies (dividends tax) at a rate of 20 percent on the net amount of the dividend declared and paid by a resident company, other than a Headquarter Company.

The dividends tax is generally imposed on the beneficial owner of the dividends. The dividends paid to South African shareholders may be exempt from dividend withholding tax in terms of certain domestic exemptions, or may be reduced to a lower rate under an applicable double tax treaty, if the required declarations and undertakings are provided by the beneficial owner of the dividend. In the case of dividends paid to a US holder with respect to shares, the Convention Between the Government of the United States of America and the Republic of South Africa for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income and Capital Gains, signed 17 February 1997 (the “US/SA Double Taxation Treaty”) would generally limit the dividends tax rate to five percent of the gross amount of the dividends if a corporate US holder holds directly at least 10 percent of the voting stock of AngloGold Ashanti. In all other cases, the maximum tax rate under the US/SA Double Taxation Treaty is 15 percent of the gross amount of the dividend. Different rules may apply if the beneficial owner of the dividends is a US resident who carries on business in South Africa through a permanent establishment situated in South Africa, or performs in South Africa independent personal services from a permanent establishment situated in South Africa, and the dividends are attributable to such permanent establishment.













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8B.    SIGNIFICANT CHANGES

Refer to “Item 18: Financial Statements—Note 35—Subsequent Events”.





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ITEM 9: THE OFFER AND LISTING


9A.    OFFER AND LISTING DETAILS

The principal trading markets for AngloGold Ashanti’s ordinary shares are the New York Stock Exchange (NYSE), in the form of ADSs, under the symbol “AU” and the JSE Limited, in the form of ordinary shares, under the symbol “ANG”. Each ADS represents one ordinary share.






9B.    PLAN OF DISTRIBUTION

Not applicable.






9C.    MARKETS

NATURE OF TRADING MARKET

The principal trading markets for AngloGold Ashanti’s ordinary shares are the NYSE, in the form of ADSs, under the symbol “AU” (each representing one ordinary share) and the JSE Limited, in the form of ordinary shares, under the symbol “ANG”.

AngloGold Ashanti’s ordinary shares are also listed on the Ghana Stock Exchange, as ordinary shares under the symbol “AGA” and in the form of Ghanaian Depositary Shares or GhDSs (each representing one one-hundredth of an ordinary share) under the symbol “AAD”, and the Australian Securities Exchange, in the form of CHESS Depositary Interests (each representing one-fifth of an ordinary share) under the symbol “AGG”.






9D.    SELLING SHAREHOLDERS

Not applicable.






9E.    DILUTION

Not applicable.






9F.    EXPENSES OF THE ISSUE

Not applicable.



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ITEM 10:    ADDITIONAL INFORMATION


10A.SHARE CAPITAL

Not applicable.






10B.MEMORANDUM OF INCORPORATION

At the last AGM held on 4 May 2021, AngloGold Ashanti did not need to seek approval from shareholders for any amendments to its Memorandum of Incorporation (MoI).

At the annual general meeting to be held on 16 May 2022, AngloGold Ashanti will seek approval from shareholders (by way of
a special resolution) to amend the MoI as follows:

1.by the deletion of the phrase “Subject to 9.4.3, this” at the beginning of clause 1.3 and the replacement thereof with the word “This”;
2.by the deletion of clause 9 (Rights Attaching to Preference Shares) in its entirety; and
3.by the amendment of Schedule 1 (Authorised Shares) as follows:

3.1    by the deletion of paragraphs 2, 3 and 4 of Schedule 1 in their entirety; and
3.2    by the deletion of the table at the end of Schedule 1 in its entirety and the replacement thereof with the following new table:

Share capitalSouth African Rands
600,000,000 ordinary shares of R0.25 each150,000,000

The reason for these amendments is to comply with the provisions of the SA Companies Act and the JSE Listings Requirements and, following the recent redemption of all of the A redeemable preference shares and B redeemable preference shares of the Company, to remove all references in the MoI to the A redeemable preference shares, the B redeemable preference shares and the C redeemable preference shares, as well as all of the provisions relating to all such redeemable preference shares, and thereby to remove all such redeemable preference shares from the authorised share capital of the Company. Prior to the above special resolution to amend the MoI being put to the shareholders for approval at the AGM to be held on 16 May 2022, AngloGold Ashanti will first seek approval from shareholders (by way of a separate special resolution) to cancel all such classes of redeemable preference shares.

Registration

AngloGold Ashanti is incorporated under the company laws of the Republic of South Africa and is registered with the Companies and Intellectual Property Commission under registration number 1944/017354/06. The SA Companies Act has abolished the requirement for specific “object and purpose” provisions to be included in a memorandum of incorporation and although the MoI is silent on the matter, the company continues to carry on as its main business, gold exploration, the mining and production of gold, the manufacturing, marketing and selling of gold products and the development of markets for gold.
AngloGold Ashanti’s MoI is available for inspection as set out in “Item 10H: Documents on Display” and a summary of the pertinent provisions, including the rights of the holders of shares in AngloGold Ashanti, are set out below.

This summary does not contain all the information pertaining to the rights of holders of AngloGold Ashanti’s ordinary shares and is qualified in its entirety by reference to the laws of South Africa and AngloGold Ashanti’s governing corporate documents. As well as being governed by the provisions of the MoI, the rights of holders of AngloGold Ashanti’s ordinary shares are governed by the JSE Listings Requirements, the SA Companies Act and the Companies Regulations, 2011, promulgated under the SA Companies Act (the “Regulations”), which include the Takeover Regulations. Further, the rights of holders of AngloGold Ashanti ADSs are governed by the Deposit Agreement between AngloGold Ashanti and The Bank of New York Mellon.See “Item 10C: Material Contracts—The Deposit Agreement”.

The SA Companies Act provides that shares will no longer have a par or nominal value and hence no new shares having a nominal or par value may be authorised. However, any shares which have a nominal or par value authorised prior to 1 May 2011 (the effective date of the SA Companies Act) continue to have that nominal or par value and can be issued as such for so long as



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there are par value shares in the company’s authorised share capital. Should the company wish, it may also elect to convert its authorised par value shares to shares of no par value, subject to the relevant process and approvals contemplated in the SA Companies Act.

Directors

The management and control of any business of AngloGold Ashanti is vested in its board of directors (board). The authority of the board to manage and direct the business and affairs of the company is not limited, restricted or qualified by the MoI.

Appointment and Retirement of Directors

The shareholders of the company have the power to elect the directors, and shareholders are also entitled to elect one or more alternate directors, in accordance with the provisions of the MoI and the SA Companies Act.

The board may appoint any person who satisfies the requirements for election as a director to fill any vacancy and serve as a director on a temporary basis until the vacancy is filled by election by shareholders entitled to exercise voting rights in such an election.

The MoI authorises the chairman of the board, subject to the written approval of the majority of the directors, to appoint any person as a director provided that such appointment is approved by shareholders at the next shareholders’ meeting or annual general meeting.

At every annual general meeting one-third of the directors will retire by rotation, or if their number is not a multiple of three, then the number nearest to but not less than one third. The directors to retire at every annual general meeting will be those who have been the longest in office since their last election. Directors retiring by rotation are eligible for re-election. Directors who voluntarily decide not to make themselves available for re-election may be counted towards the one-third of directors required to retire at the relevant annual general meeting.

The MoI contains no provision for directors to hold qualification shares. The MoI does not impose an age limit for the retirement of directors.

Remuneration

In accordance with the SA Companies Act, the MoI provides that the directors are entitled to such remuneration for their services as directors as AngloGold Ashanti’s shareholders may approve by special resolution in a general meeting or annual general meeting within the previous two years of the date of payment of such remuneration. If a director is employed in any other capacity, or holds an executive office or performs services that, in the opinion of the board, are outside the scope of the ordinary duties of a director, he or she may be paid such additional remuneration as a disinterested quorum of directors may reasonably determine.

Interests of Directors and Restriction on Voting

Although the interests of directors are not dealt with in the MoI, the provisions of the SA Companies Act in this regard are unalterable and will automatically apply, together with the applicable common law rules. Under the SA Companies Act, the procedures to deal with the personal financial interests of directors also apply to prescribed officers (i.e., persons who exercise general executive control over and management of the whole, or a significant portion, of the business and activities of the company or regularly participate to a material degree in the exercise of general executive control over and management of the whole, or a significant portion, of the business and activities of the company, irrespective of the office held or function performed by such persons) and any person who is a member of a committee of the board of the company, whether or not that person is also a member of the company’s board. The SA Companies Act provides that a director or such other person with a personal financial interest must disclose this to the board and cannot vote on or, after having made the disclosures to the meeting as prescribed by the SA Companies Act, remain present during the meeting when the matter in which he has interest is being discussed but will be counted as present for the purposes of a quorum (but is not to be regarded as being present at the meeting for the purposes of determining whether a resolution has sufficient support to be adopted).

Share Rights, Preferences and Restrictions

Allotment and Issue of Ordinary Shares

Subject to the JSE Listings Requirements, the SA Companies Act and/or with approval of shareholders in a general meeting, unissued ordinary shares must be offered to existing ordinary shareholders, pro rata to their ordinary shareholdings, unless they are issued for the acquisition of assets. The shareholders in a general meeting may authorise the board to issue any unissued ordinary shares.





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Dividends, Rights and Distributions

The ordinary shares participate fully in all dividends, other distributions and entitlements as and when declared by AngloGold Ashanti in respect of fully paid ordinary shares. Under South African law, AngloGold Ashanti may declare and pay distributions (as defined in the SA Companies Act, which includes dividends), subject to the company satisfying the solvency and liquidity test as set out in section 4 of the SA Companies Act and the board passing a resolution acknowledging that such test has been applied and has reasonably concluded that the company would satisfy such test immediately after completing the distribution. Dividends are payable to shareholders registered at a record date after the date of declaration of the dividend.

As a company incorporated and registered in the Republic of South Africa with its primary listing on the Johannesburg Stock Exchange, AngloGold Ashanti is required to declare dividends in South African rands. Dividends are paid in South African rands, Australian dollars, Ghanaian cedis and British pounds. Registered holders of AngloGold Ashanti ADSs are paid dividends in US dollars by The Bank of New York Mellon as Depositary, in accordance with the Deposit Agreement. See “Item 10C: Material Contracts—The Deposit Agreement”.

A holder of the B redeemable preference shares is entitled to the right to an annual dividend amounting to the lesser of 5 percent of the issue price of the B redeemable preference shares or an amount equivalent to the balance of the after tax profits arising from income derived from mining the Moab Lease Area as determined by the directors in each financial year. The annual dividend shall be a first charge on any profit available for distribution from the Moab Lease Area but shall not be payable from any other profits of the Company.

A holder of the C redeemable preference shares is entitled to the right to an annual dividend amounting to the lesser of 5 percent of the issue price of the C redeemable preference shares or an amount equivalent to the balance of the after tax profits arising from income derived from mining the Moab Lease Area as determined by the directors in each financial year. The annual dividend shall be a first charge on any profit available for distribution from the Moab Lease Area ranking after and following payment of any annual dividend payable to a holder of the B redeemable preference shares, but shall not be payable from any other profits of the Company.

A holder of the A redeemable preference shares is entitled to an annual dividend equivalent to the balance of the after-tax profits from income derived from mining the Moab Lease Area as determined by AngloGold Ashanti’s directors in each financial year, only once the annual dividend on the B redeemable preference shares and the C redeemable preference shares have been paid in full.

Although not stated in the MoI, but subject to the JSE Listings Requirements and the SA Companies Act, any dividend may be paid and satisfied, either wholly or in part, by the distribution of specific assets, or in paid-up securities of AngloGold Ashanti or of any other company, or in cash, or in any one or more of such ways as the directors may at the time of declaring the dividend determine and direct.

All dividends remaining unclaimed for a period of not less than three years from the date on which they became payable, may, by a resolution of the directors, become forfeited for the benefit of the company.

Voting Rights

Each ordinary share confers the right to vote at all general meetings. Each holder present in person or by proxy or, in the case of a corporate entity, represented, has one vote on a show of hands. If a poll is held, holders present or any duly appointed proxy will have one vote for each ordinary share held. A holder of ordinary shares is entitled to appoint a proxy to attend, speak and vote at any meeting on his or her behalf and the proxy need not be a shareholder. Holders of ADSs are not entitled to vote in person at meetings, but may vote by way of proxy through The Bank of New York Mellon as the ADS issuer. Holders of Australian Chess Depositary Interests (CDIs) and Ghanaian Depositary Shares (GhDSs) are not entitled to vote in person or by proxy at meetings, but may vote by instructing Chess Depository Nominees and NTHC Limited as Depositary, respectively, how to vote their shares.

There are no limitations on the right of non-South African registered shareholders to hold or exercise voting rights attaching to any of the ordinary shares.

The A redeemable preference shares have similar voting rights to those of ordinary shares. The B and C redeemable preference shares have voting rights only in the event that a dividend on this class of share has not been paid and remains unpaid for six months or more, or in connection with resolutions directly affecting these redeemable preference shares or in limited circumstances affecting AngloGold Ashanti as a whole, such as disposal of substantially all of the company’s assets, winding up AngloGold Ashanti or reducing the company’s share capital.

At any meeting of AngloGold Ashanti at which the holders of the ordinary shares, A redeemable preference shares, B redeemable preference shares and C redeemable preference shares are present and entitled to vote on a poll, each holder of the A redeemable preference shares shall be entitled to 50 votes for every A redeemable preference share held, each holder of the ordinary shares is entitled to 50 votes for every ordinary share held and each holder of the B redeemable preference shares



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and the C redeemable preference shares is entitled to one vote for every B redeemable preference share and C redeemable preference share held respectively.

The MoI specifies that the rights relating to any class of shares may be modified or abrogated with the sanction of a resolution passed as if it were a special resolution of the holders of shares in that class at a separate general meeting. The MoI also specifies that any holders of the A, B and C redeemable preference shares may provide written consents to the modification of their rights.

Increase and Reduction of Capital

The company is authorised to issue the shares specified in the MoI and all such shares are required to be issued as fully paid up in accordance with the applicable approval and/or other requirements of the SA Companies Act and the JSE Listings Requirements.

The directors are authorised, subject to any requirements of the JSE Listings Requirements, the SA Companies Act, the Regulations and the MoI, to increase or decrease the number of authorised shares of any class of shares, reclassify any shares that have been authorised but not issued, classify any unclassified shares that have been authorised but not issued, and determine the preferences, rights, limitations or other terms of any class of authorised shares or amend any preferences, rights, limitations or other terms as determined. However, such capital amendments require an amendment to be made to the MoI. The SA Companies Act and the JSE Listings Requirements currently do not allow the MoI to be amended to give effect to such capital amendments without the approval of ordinary shareholders by special resolution.

Rights Upon Liquidation

In the event of the winding up of AngloGold Ashanti:
•The A redeemable preference shares shall confer the right, on a winding-up of the company, in priority to any payment in respect of the ordinary shares in the capital of the company then issued, but after any payment in respect of the B redeemable preference shares and the C redeemable preference shares in the capital of the company then issued, to receive only so much of the net proceeds from the disposal of the assets relating to the Moab Lease Area as is then available for distribution;
•The B redeemable preference shares shall confer the right, on a winding-up of the company in priority to any payment in respect of the ordinary shares, the A redeemable preference shares and the C redeemable preference shares then in issue, to receive only so much of the net proceeds from the disposal of the assets relating to the Moab Lease Area as is available for distribution but not exceeding a return per B preference share of the capital paid-up thereon and any share premium paid on the issue of the B redeemable preference shares outstanding at that time;
•The C redeemable preference shares shall confer the right, on a winding-up of the company, ranking after and following payment of the holders of the B redeemable preference shares, but in priority to any payment in respect of the ordinary shares and the A redeemable preference shares in the capital of the company then issued, to receive only so much of the net proceeds from the disposal of the assets relating to the Moab Lease Area as is available for distribution but not exceeding a return per C preference share of the capital paid-up on the issue of the C redeemable preference shares outstanding at that time;
•The A, B and C redeemable preference shares shall not be entitled to any participation, on a winding-up, in any of the surplus funds of the company in any other manner arising; and
•The ordinary shares confer the right to participate equally in any surplus arising from the liquidation of all other assets of AngloGold Ashanti.

Redemption Provisions

The A redeemable preference shares may be redeemed for their nominal value, plus a premium per share of an amount equal to the net proceeds available from the disposal of the assets relating to the Moab Lease Area, after redemption in full of the B redeemable preference shares and the C redeemable preference shares, and payment of the nominal value of the A redeemable preference shares, divided by 2,000,000.

The B redeemable preference shares may be redeemed for their nominal value, plus a premium of an amount equal to 175,096,390 divided by that number of B redeemable preference shares in issue, but limited to an amount equal to the net proceeds available from the disposal of the assets relating to the Moab Lease Area after payment of the nominal value of the B redeemable preference shares.

The C redeemable preference shares may be redeemed for their aggregate issue price of the said C redeemable preference shares, but shall be limited to an amount equal to the net proceeds available from the disposal of the assets relating to the Moab Lease Area and only after redemption in full of the B redeemable preference shares.





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Shareholders’ Meetings

The directors may convene meetings of AngloGold Ashanti shareholders. Subject to the provisions of the SA Companies Act, the shareholders may requisition for the convening of a meeting.

Notice of each AngloGold Ashanti annual general meeting and general meeting of AngloGold Ashanti shareholders must be delivered at least 15 business days before that shareholders’ meeting is to begin. In accordance with the SA Companies Act, business days are calculated by excluding the first day, including the last day and excluding Saturdays, Sundays and any public holiday in the Republic of South Africa. In terms of the MoI, all shareholders are entitled to attend shareholders’ meetings at which they are entitled to vote.

In the case of a class meeting of the A, B or C redeemable preference shares, the sole holder of such shares shall constitute a quorum. Save as aforesaid, the quorum of a shareholders’ meeting is sufficient persons present, in person or by proxy, at the meeting to exercise, in aggregate, at least 25 percent of all of the voting rights that are entitled to be exercised in respect of at least one matter to be decided at the meeting and a quorum must remain present for the continuation of that shareholders meeting, provided that at least three shareholders must be present and remain at the meeting. Such quorum requirement also applies for the consideration of any matter to be decided at the meeting. If the meeting is not quorate within 30 minutes after the appointed time for the meeting to begin (or such longer or shorter period as the chairperson may determine), it will be postponed, without motion, vote or further notice, for 1 week and the shareholders present, in person or by proxy, at the postponed meeting will constitute a quorum. For an ordinary resolution to be approved by shareholders, it must be supported by more than 50 percent of the voting rights exercised on the resolution. For a special resolution to be approved by shareholders, it must be supported by at least 75 percent of the voting rights exercised on the resolution.

Disclosure of Interest in Shares

Under South African law, a person must notify AngloGold Ashanti within three business days after that person (i) acquires a beneficial interest in sufficient securities of a class of securities issued by AngloGold Ashanti such that, as a result of the acquisition, the person holds a beneficial interest in securities amounting to five percent, ten percent, fifteen percent or any further whole multiple of five percent of the issued securities of that class or (ii) disposes of any beneficial interest in sufficient securities of a class of securities issued by AngloGold Ashanti such that, as a result of the disposition, the person no longer holds a beneficial interest in securities amounting to a particular multiple of five percent of issued securities of that class. When AngloGold Ashanti has received the notice referred to above it must file a copy with the Takeover Regulation Panel and report the information to holders of the relevant class of securities unless the notice concerned is a disposition of less than one percent of the class of securities.

If the securities of AngloGold Ashanti are registered in the name of a person who is not the holder of the beneficial interest in all of the securities in AngloGold Ashanti held by that person, that registered holder of the securities must disclose the identity of the person on whose behalf that security is held and the identity of each person with a beneficial interest in securities so held, the number and the class of securities held for each such person with a beneficial interest and the extent of each such beneficial interest. This information must be disclosed in writing to the company within five business days after the end of every month during which a change has occurred in the information or more promptly or frequently to the extent so provided by the requirements of a Central Securities Depository. A company that knows or has reasonable cause to believe that any of its securities are held by one person for the beneficial interest of another may by notice in writing require either of those persons to confirm or deny that fact, provide particulars of the extent of the beneficial interest held during the three years preceding the date of the notice and disclose the identity of each person with a beneficial interest in the securities held by that person, which information must be provided within 10 business days of the receipt of the notice.

AngloGold Ashanti is obligated to establish and maintain a register of the disclosures described above and to publish in its annual financial statements a list of the persons who hold beneficial interests equal to or in excess of five percent of the total number of ordinary shares issued by AngloGold Ashanti together with the extent of those beneficial interests.

Rights of Minority Shareholders

Majority shareholders of South African companies have no fiduciary obligations under South African common law to minority shareholders. However, under the SA Companies Act, a shareholder or director may, under certain circumstances, seek relief from a court if he has been unfairly prejudiced by any act or omission of the company or a related person, by the conduct of the business of the company or a related person in a particular manner, the exercise of the powers of the directors of the company or a related person in a particular manner. There may also be personal and derivative actions available to a shareholder of a company.

Pursuant to the SA Companies Act, a shareholder may petition a South African court for relief from the actions or omissions or, business conduct of the company or the actions of the company’s directors or officers that is oppressive or unfairly prejudicial to, or unfairly disregards the interest of the shareholder. In addition, a shareholder who voted against a resolution to amend the company’s MoI, or to approve a fundamental transaction, (and complied with other requirements set out in the SA Companies



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Act) may exercise its appraisal right to demand that the company pay to it the fair value for all the shares of the company held by that shareholder.

Description of ADSs

The Bank of New York Mellon issues AngloGold Ashanti’s American Depositary Shares, or ADSs. Please see “Item 10C: Material Contracts—Description of AngloGold Ashanti ADSs”.



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10C.MATERIAL CONTRACTS

Multi-currency Revolving Credit Facility

General

On 23 October 2018, AngloGold Ashanti Holdings plc (AGAH) and AngloGold Ashanti Australia Limited, as borrowers, entered into a five-year unsecured multi-currency syndicated revolving credit facility of $1.4 billion (the $1.4 billion multi-currency RCF) with The Bank of Nova Scotia, as facility agent, and certain financial institutions party thereto, as lenders. The loan consists of (i) a US dollar based facility (base currency) and (ii) an Australian dollar based facility capped at A$500 million which will be used to fund the working capital and development costs associated with the group’s mining operations within Australia (without eroding the group’s headroom under its other facilities and exposing the group to foreign exchange gains/losses each quarter). As of 23 March 2022, the equivalent of $34 million was drawn under the AUD portion of the $1.4billion multi-currency RCF.

Guarantees

The $1.4 billion multi-currency RCF is guaranteed by AGAH and AngloGold Ashanti Australia Limited. The guarantees constitute unconditional obligations of the guarantors and rank at least pari passu with all other future unsecured obligations of the guarantors, except for obligations mandatorily preferred by law.

Security

Save as set out under the heading “—Guarantees” above, the obligations under the $1.4 billion multi-currency RCF are unsecured.

Amount and repayment of borrowings

Loans under the $1.4 billion multi-currency RCF must be for a minimum of $10 million, if the currency selected is the base currency (US dollar), or a minimum of A$10 million (or for the balance of the undrawn total commitments at the time of the drawing), if the currency selected is Australian dollars. No more than 14 loans may be outstanding at any time. Each loan must be repaid on the maturity date in the same currency as the maturing loan. All loans must be repaid in full on the final maturity date. The $1.4 billion multi-currency RCF matures in October 2023.

Interest rates and fees

The annual interest rate on loans drawn under the $1.4 billion multi-currency RCF is calculated based on LIBOR, plus an initial margin of 1.45 percent per annum that varies between 0.95 percent and 2.15 percent per annum depending on the long-term debt rating of AGAH, and in relation to any Loan in Australian dollars, BBSY, and certain mandatory costs. The applicable margin is subject to a ratings grid. In this regard, the interest margin will reduce should the group’s credit rating improve from its current BB+/Baa3 status and should increase if its credit rating worsens. Interest on loans is payable on the last day of the loan’s interest period and, if the interest period exceeds six months, on the dates falling at six-monthly intervals after the day the loan was made.

The borrowers under the $1.4 billion multi-currency RCF are required to pay a commitment fee in the base currency equal to 35 percent of the then applicable margin per annum on the undrawn and uncancelled amount of each lender’s commitment during the commitment period. The borrowers are also required to pay a utilisation fee of 0.10 percent per annum (if the aggregate outstanding loans are less than one third of the total commitments then in effect), 0.20 percent per annum (if the aggregate outstanding loans are equal to or greater than one third but less than two-thirds of the total commitments then in effect) or 0.40 percent per annum (if the aggregate outstanding loans are equal to or greater than two-thirds of the total commitments then in effect).

Financial covenant

The $1.4 billion multi-currency RCF includes a financial maintenance covenant which requires that the ratio of Total Net Financial Indebtedness to EBITDA (as such terms are defined in the revolving credit agreement) does not at any time exceed 3.50 to 1.00, with the proviso that this ratio may exceed 3.50 to 1.00 once during the life of the revolving credit agreement, for one six-month period subject to certain criteria. Refer to “Item 18: Financial Statements—Note 34—Capital Management” for the formulae used in the revolving credit agreement to test compliance with the covenants.

Change of control

If a lender so requires, the commitment of such lender under the $1.4 billion multi-currency RCF will be cancelled and the participation of such lender in all outstanding loans, together with accrued interest and all other amounts accrued, will become immediately due and payable in case any person or group of persons acting in concert becomes (directly or indirectly) the beneficial owner of more than 50 percent of the issued share capital of AngloGold Ashanti Limited.




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Undertakings

The $1.4 billion multi-currency RCF contains a negative pledge covenant, including restrictions on the granting of security, a change of business of AngloGold Ashanti Limited and its subsidiaries, acquisitions or participations in joint ventures and mergers and disposals.

The $1.4 billion multi-currency RCF also contains, among other things, the following affirmative covenants: mandatory periodic reporting of financial and other information, notice upon the occurrence of events of default and certain other events, compliance with environmental laws and other obligations requiring each of AGAH and its subsidiaries to maintain its corporate existence and qualifications to conduct its business as currently conducted in all applicable jurisdictions and to maintain insurance coverage. The covenants are subject to exceptions and materiality thresholds.

Events of default

The $1.4 billion multi-currency RCF contains events of default including failure to make payment of amounts due, breach of obligations under the loan documents, defaults under other agreements evidencing indebtedness, certain bankruptcy events and a cessation of business, failure of any of the borrowers to be a wholly owned subsidiary of AGAH and the occurrence of a material adverse change in the business and financial condition of the borrowers and guarantors under the revolving credit agreement, or AngloGold Ashanti and its subsidiaries as a whole, or in the ability of the borrowers and guarantors to perform their payment obligations under the loan documents. The occurrence of an event of default could result in the immediate and automatic cancellation of all commitments and the acceleration of all payment obligations under the revolving credit agreement and the other loan documents.

The above description is only a summary of certain provisions of the revolving credit agreement and is qualified in its entirety by reference to the provisions of the revolving credit agreement, a copy of which is attached hereto as Exhibit 19.4.4.1 and is incorporated herein by reference.

Bridge Facility

On 28 April 2020, AngloGold Ashanti Holdings plc (AGAH), as borrower, entered into a US$1.0 billion unsecured bridge facility agreement with a syndicate of lenders, guaranteed by AngloGold Ashanti Australia Limited. The bridge facility was for a term of 364 days which could be extended for a further six months with consent of the lenders. Amounts outstanding under the bridge facility bore interest at LIBOR plus a margin that increased over time. The bridge facility contained certain restrictive and affirmative covenants, events of default as well as a financial maintenance covenant. The lenders under the bridge facility were required to fund only if our $1.4 billion multi-currency RCF was drawn by at least $1.39 billion. The bridge facility agreement also contained a mandatory prepayment and cancellation clause. In particular, commitments under the bridge facility were automatically cancelled upon, among other matters, the incurrence of certain indebtedness (including the offering of the 2020 Notes as described below) and the consummation of certain disposals (including, for example, the disposal of our South African operations). The bridge facility, which remained undrawn, was cancelled on 1 October 2020.

The above description is only a summary of certain provisions of the bridge facility agreement and is qualified in its entirety by reference to the provisions of the cancelled bridge facility agreement.

Notes

Each of the series of notes described below were issued under the indenture, dated as of 28 April 2010, among AngloGold Ashanti Holdings plc (AGAH), as issuer, AngloGold Ashanti Limited, as guarantor, and The Bank of New York Mellon, as trustee (the Indenture). The below descriptions are only a summary of certain provisions of those series of notes and are qualified in their entirety by reference to the provisions of the Indenture and such relevant series of notes, a copy of each is attached hereto as Exhibits 19.2.1, 19.2.2, 19.2.3, 19.2.4 and 19.2.5 and is incorporated herein by reference.

2021 Notes

On 22 October 2021, AGAH issued $750 million 3.375 percent Notes due 2028 (the “2021 Notes”). The interest on the 2021 Notes is payable semi-annually on 1 May and 1 November of each year, commencing on 1 May 2022. AGAH may on any one or more occasions redeem all or part of the 2021 Notes, at a redemption price equal to the greater of (1) 100 percent of the principal amount of the 2021 Notes to be redeemed and (2) the sum of the present values of the remaining scheduled payments of principal and interest on the 2021 Notes (excluding any portion of such payments of interest accrued or unpaid as of the date of redemption) discounted to the redemption date on a semiannual basis (assuming a 360-day year consisting of twelve 30-day months) at the treasury rate, plus 30 basis points, plus accrued and unpaid interest, if any, to the date of redemption. AGAH has agreed to pay certain additional amounts in respect of any withholdings or deductions for certain types of taxes in certain jurisdictions on payments to holders of the 2021 Notes. The 2021 Notes are unsecured and unsubordinated and are fully and unconditionally guaranteed by AngloGold Ashanti Limited.




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AGAH has agreed to observe certain covenants with respect to the 2021 Notes restricting, subject to certain limitations, the ability of AngloGold Ashanti Limited and AGAH to amalgamate, reconstruct, consolidate or merge with another company or other legal entity, and the ability of AngloGold Ashanti Limited and its restricted subsidiaries to pledge their assets to secure certain borrowings, create or incur liens on certain of their property or to engage in sale and leaseback transactions. In case of a change of control of the guarantor and a downgrade, within a specified period, of the 2021 Notes by three rating agencies, holders of the 2021 Notes have the right to require the issuer to repurchase all or any part of their 2021 Notes in cash for a value equal to 101 percent of the aggregate principal amount of 2021 Notes repurchased, plus accrued and unpaid interest, if any, on the 2021 Notes repurchased to the date of repurchase.

The offering of the 2021 Notes was registered under the Securities Act. The 2021 Notes were listed on the New York Stock Exchange.

2020 Notes

On 1 October 2020, AGAH issued $700 million 3.750 percent Notes due 2030 (the 2020 Notes). The interest on the 2020 Notes is payable semi-annually on 1 April and 1 October of each year, commencing on 1 April 2021. AGAH may on any one or more occasions redeem all or part of the 2020 Notes, at a redemption price equal to the greater of (1) 100 percent of the principal amount of the 2020 Notes to be redeemed and (2) the sum of the present values of the remaining scheduled payments of principal and interest on the 2020 Notes (excluding any portion of such payments of interest accrued or unpaid as of the date of redemption) discounted to the redemption date on a semiannual basis (assuming a 360-day year consisting of twelve 30-day months) at the treasury rate, plus 50 basis points, plus accrued and unpaid interest, if any, to the date of redemption. AGAH has agreed to pay certain additional amounts in respect of any withholdings or deductions for certain types of taxes in certain jurisdictions on payments to holders of the 2020 Notes. The 2020 Notes are unsecured and unsubordinated and are fully and unconditionally guaranteed by AngloGold Ashanti Limited.

AGAH has agreed to observe certain covenants with respect to the 2020 Notes restricting, subject to certain limitations, the ability of AngloGold Ashanti Limited and AGAH to amalgamate, reconstruct, consolidate or merge with another company or other legal entity, and the ability of AngloGold Ashanti Limited and its restricted subsidiaries to pledge their assets to secure certain borrowings, create or incur liens on certain of their property or to engage in sale and leaseback transactions. In case of a change of control of the guarantor and a downgrade, within a specified period, of the 2020 Notes by three rating agencies, holders of the 2020 Notes have the right to require the issuer to repurchase all or any part of their 2020 Notes in cash for a value equal to 101 percent of the aggregate principal amount of 2020 Notes repurchased, plus accrued and unpaid interest, if any, on the 2020 Notes repurchased to the date of repurchase.

The offering of the 2020 Notes was registered under the Securities Act. The 2020 Notes were listed on the New York Stock Exchange.

2012 Notes

On 30 July 2012, AGAH issued $750 million 5.125 percent Notes due 2022 (the 2012 Notes). The interest on the 2012 Notes was payable semi-annually on 1 February and 1 August of each year, commencing on 1 February, 2013. AGAH was permitted on any one or more occasions to redeem all or part of the 2012 Notes, at a redemption price equal to the greater of (1) 100 percent of the principal amount of the 2012 Notes to be redeemed and (2) the sum of the present values of the remaining scheduled payments of principal and interest on the 2012 Notes (excluding any portion of such payments of interest accrued or unpaid as of the date of redemption) discounted to the redemption date on a semiannual basis (assuming a 360-day year consisting of twelve 30-day months) at the treasury rate, plus 50 basis points, plus accrued and unpaid interest, if any, to the date of redemption. AGAH had agreed to pay certain additional amounts in respect of any withholdings or deductions for certain types of taxes in certain jurisdictions on payments to holders of the 2012 Notes. The 2012 Notes were unsecured and unsubordinated and were fully and unconditionally guaranteed by AngloGold Ashanti Limited.

AGAH had agreed to observe certain covenants with respect to the 2012 Notes restricting, subject to certain limitations, the ability of AngloGold Ashanti Limited and AGAH to amalgamate, reconstruct, consolidate or merge with another company or other legal entity, and the ability of AngloGold Ashanti Limited and its restricted subsidiaries to pledge their assets to secure certain borrowings, create or incur liens on certain of their property or to engage in sale and leaseback transactions. In case of a change of control of the guarantor and a downgrade, within a specified period, of the 2012 Notes below an investment grade rating by two rating agencies, holders of the 2012 Notes had the right to require the issuer to repurchase all or any part of their 2012 Notes in cash for a value equal to 101 percent of the aggregate principal amount of 2012 Notes repurchased, plus accrued and unpaid interest, if any, on the 2012 Notes repurchased to the date of purchase.

The offering of the 2012 Notes was registered under the Securities Act. The 2012 Notes were listed on the New York Stock Exchange.

The 2012 notes were redeemed in October and November 2021 and are no longer outstanding.





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2010 Notes

On 28 April 2010, AGAH issued $700 million 5.375 percent Notes due 2020 and $300 million 6.500 percent Notes due 2040 (together, the 2010 Notes). The interest on the 2010 Notes is payable semi-annually on 15 April and 15 October of each year, commencing on 15 October 2010. AGAH may on any one or more occasions redeem all or part of the 2010 Notes, at a redemption price equal to the greater of (1) 100 percent of the principal amount of the 2010 Notes to be redeemed and (2) the sum of the present values of the remaining scheduled payments of principal and interest on the 2010 Notes (excluding any portion of such payments of interest accrued or unpaid as of the date of redemption) discounted to the redemption date on a semiannual basis (assuming a 360-day year consisting of twelve 30-day months) at the treasury rate, plus 25 basis points with respect to the 2010 Notes maturing in 2020 and 30 basis points with respect to the 2010 Notes maturing in 2040, plus accrued and unpaid interest, if any, to the date of redemption. AGAH has agreed to pay certain additional amounts in respect of any withholdings or deductions for certain types of taxes in certain jurisdictions on payments to holders of the 2010 Notes. The 2010 Notes are unsecured and unsubordinated and are fully and unconditionally guaranteed by AngloGold Ashanti Limited.

AGAH has agreed to observe certain covenants with respect to the 2010 Notes restricting, subject to certain limitations, the ability of AngloGold Ashanti Limited and AGAH to amalgamate, reconstruct, consolidate or merge with another company or other legal entity, and the ability of AngloGold Ashanti Limited and its restricted subsidiaries to pledge their assets to secure certain borrowings, create or incur liens on certain of their property or to engage in sale and leaseback transactions. In case of a change of control of the guarantor and a downgrade, within a specified period, of a series of 2010 Notes below an investment grade rating by two rating agencies, holders of the 2010 Notes have the right to require the issuer to repurchase all or any part of their 2010 Notes in cash for a value equal to 101 percent of the aggregate principal amount of 2010 Notes repurchased, plus accrued and unpaid interest, if any, on the 2010 Notes repurchased to the date of purchase.

The offering of the 2010 Notes was registered under the Securities Act. The 2010 Notes were listed on the New York Stock Exchange.

The $700 million 5.375 percent Notes due 2020 were repaid at maturity on 15 April 2020 and are no longer outstanding.

For further information, see Item 18: Financial Statements—Note 24—Borrowings”,“Item 5B: Liquidity and Capital Resources” and “Item 19: Exhibits to Form 20-F”.

Description of AngloGold Ashanti ADSs

The Bank of New York Mellon issues AngloGold Ashanti’s American Depositary Shares, or ADSs. Each ADS represents the ownership interest of one ordinary share of AngloGold Ashanti.

The Deposit Agreement

This section provides a summary description of AngloGold Ashanti’s ADSs.

AngloGold Ashanti has entered into an Amended and Restated Deposit Agreement dated 3 June 2008 with The Bank of New York Mellon as Depositary and the owners and beneficial owners of American Depositary Receipts (Deposit Agreement).

The following is a summary of the material provisions of the Deposit Agreement. For more complete information, read the entire Deposit Agreement and the Form of American Depositary Receipt, which AngloGold Ashanti has filed with the SEC as an exhibit to AngloGold Ashanti’s registration statements on Form F-6 (Registration Nos. 333-133049 and 333-159248) on 27 May 2008 and 14 May 2009, respectively. A copy thereof is also attached hereto as Exhibit 19.2.6 and is incorporated herein by reference. See “Item 10H: Documents on Display”. Copies of the Deposit Agreement are also available for inspection at the Corporate Trust Office of The Bank of New York Mellon currently located at 240 Greenwich Street, New York, New York 10286.

Description of the ADSs

The Bank of New York Mellon, as Depositary, registers and delivers ADSs. Each ADS represents one ordinary share (or a right to receive one share) deposited with Standard Bank of South Africa Limited, FirstRand Bank Limited or HSBC Bank Australia Limited, each as a custodian for The Bank of New York Mellon, and all of which are referred to collectively as the “Custodian”. Each ADS also represents any other securities, cash or other property which may be held by The Bank of New York Mellon. The Bank of New York Mellon’s Corporate Trust Office at which the ADSs are administered is located at 240 Greenwich Street, New York, New York 10286. The Bank of New York Mellon’s principal executive office is also located at 240 Greenwich Street, New York, New York 10286.

ADSs may be held either (A) directly (i) by having an American Depositary Receipt, also referred to as an ADR, which is a certificate evidencing a specific number of ADSs, registered in the holder’s name, or (ii) by having ADSs registered in a holder’s name in the Direct Registration System, or (B) indirectly by holding a security entitlement in ADSs through a broker or other financial institution. If ADSs are held directly, such holders are ADS holders. This description applies to AngloGold Ashanti’s ADS holders. If ADSs are held indirectly, such holders must rely on the procedures of their broker or other financial institution to assert



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the rights of ADS registered holders described in this section. Such holders should consult with their broker or financial institution to find out what those procedures are.

The Direct Registration System, or DRS, is a system administered by DTC pursuant to which the Depositary may register the ownership of uncertificated ADSs, which ownership will be evidenced by periodic statements sent by the Depositary to the registered holders of uncertificated ADSs.

AngloGold Ashanti does not treat ADS holders as its shareholders and ADS holders do not have shareholder rights. South African law governs shareholder rights. The Bank of New York Mellon is the holder of the shares underlying the ADSs. Registered holders of ADSs have ADS holder rights. The Deposit Agreement sets out ADS holder rights as well as the rights and obligations of The Bank of New York Mellon. New York law governs the Deposit Agreement and the ADSs.

Dividends and Other Distributions

The Bank of New York Mellon has agreed to pay to holders of ADSs the cash dividends or other distributions it or a Custodian receives on AngloGold Ashanti ordinary shares or other deposited securities after deducting any fees and expenses and any applicable withholding taxes. Holders of ADSs will receive these distributions in proportion to the number of AngloGold Ashanti’s ordinary shares that their ADSs represent.

Cash

The Bank of New York Mellon will convert any cash dividend or other cash distribution (in South African rands) that AngloGold Ashanti pays on ordinary shares into US dollars (unless AngloGold Ashanti pays such dividend or cash distribution in US dollars) and distribute to registered holders of ADSs. If that is no longer possible or if any approval from any government is needed and cannot be obtained, The Bank of New York Mellon may distribute non-US currency only to those ADS holders to whom it is possible to make this type of distribution.

The Bank of New York Mellon may hold the non-US currency it cannot convert for the account of holders of ADSs who for one reason or the other have not been paid. It will not invest the non-US currency, and it will not be liable for interest on such amounts. Before making a distribution, any withholding taxes that must be paid will be deducted. See “Payment of Taxes” below. The Bank of New York Mellon will distribute only whole US dollars and cents and will round fractional cents to the nearest whole cent. If the exchange rates fluctuate during a time when The Bank of New York Mellon cannot convert the non-US currency, holders of ADSs may lose some or all of the value of the distribution.

Ordinary Shares

The Bank of New York Mellon may distribute to holders of ADSs additional ADSs representing ordinary shares that AngloGold Ashanti distributes as a dividend or free distribution, if AngloGold Ashanti provides it promptly with satisfactory evidence that it is legal to do so. If The Bank of New York Mellon does not distribute additional ADSs, the outstanding ADSs will also represent the newly distributed AngloGold Ashanti ordinary shares. The Bank of New York Mellon will only distribute whole ADSs. It will sell AngloGold Ashanti ordinary shares that would require it to deliver a fraction of an ADS and distribute the net proceeds in the same way as it distributes cash. The Bank of New York Mellon may sell a portion of the distributed shares sufficient to pay its fees and expenses in connection with that distribution.

Rights to Subscribe for Additional Ordinary Shares

If AngloGold Ashanti offers holders of its ordinary shares any rights to subscribe for additional AngloGold Ashanti ordinary shares or any other rights, The Bank of New York Mellon, after consultation with AngloGold Ashanti, may make these rights available to holders of ADSs or sell the rights and distribute the proceeds in the same way as it distributes cash. If The Bank of New York Mellon cannot do either of these things for any reason, it may allow these rights to lapse. In that case, holders of ADSs will receive no value for them.

If The Bank of New York Mellon makes these types of subscription rights available to holders of ADS, upon instruction from holders of ADSs, it will exercise the rights and purchase AngloGold Ashanti’s ordinary shares on their behalf. The Bank of New York Mellon will then deposit the AngloGold Ashanti ordinary shares and deliver ADSs to the holders of ADSs. It will only exercise these rights if holders of ADSs pay it the exercise price and any other charges the rights require them to pay.

US securities laws may restrict the sale, deposit, cancellation and transfer of the ADSs issued after exercise of rights. For example, holders of ADSs may not be able to trade the ADSs freely in the United States. In this case, The Bank of New York Mellon may deliver ADSs which are “restricted securities” within the meaning of Rule 144 which will have the same provisions as the ADSs described here, except for the changes needed to put the restrictions in place.

Other Distributions

The Bank of New York Mellon will send to holders of ADSs any other distributions that AngloGold Ashanti makes on deposited securities by any means it thinks is legal, fair and practical. If it cannot make the distribution in that way, The Bank of New York



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Mellon may decide to sell what AngloGold Ashanti distributes, and then distribute the net proceeds in the same way as it distributes cash, or it may decide to hold what AngloGold Ashanti distributes, in which case the outstanding ADSs will also represent the newly distributed property. However, The Bank of New York Mellon is not required to distribute any securities (other than ADSs) to ADS holders unless it receives satisfactory evidence from AngloGold Ashanti that it is legal to make that distribution. The Bank of New York Mellon may sell a portion of the distributed securities or property sufficient to pay its fees and expenses in connection with that distribution.

The Bank of New York Mellon is not responsible if, based on available information, it decides that it is unlawful or impractical to make a distribution available to any ADS holders. AngloGold Ashanti has no obligation to register ADSs, AngloGold Ashanti ordinary shares, rights or other securities under the Securities Act. AngloGold Ashanti also has no obligation to take any other action to permit the distribution of ADSs, AngloGold Ashanti ordinary shares, or any other rights to ADS holders. This means that the holders of ADSs may not receive the distribution AngloGold Ashanti makes on its ordinary shares or any value for them if it is illegal or impracticable for AngloGold Ashanti to make them available to the holders of ADSs.

Deposit, Withdrawal and Cancellation

The Bank of New York Mellon will deliver ADSs if a holder of AngloGold Ashanti’s ordinary shares or its broker deposits AngloGold Ashanti’s ordinary shares or evidence of rights to receive ordinary shares with the Custodian. Upon payment of its fees and expenses and of any taxes or charges, such as stamp taxes or stock transfer taxes or fees, The Bank of New York Mellon will register the appropriate number of ADSs in the names such holder of AngloGold Ashanti ordinary shares requests and will deliver the ADSs at its Corporate Trust Office to the persons such holders request.

Holders of ADSs may turn in their ADSs at The Bank of New York Mellon’s Corporate Trust Office. Upon payment of its fees and expenses and of any taxes or charges, such as stamp taxes or stock transfer taxes or fees, The Bank of New York Mellon will deliver (1) the underlying ordinary shares to an account designated by the relevant holder of ADSs and (2) any other deposited securities underlying the ADSs at the office of the Custodian, or, at the request, risk and expense of ADS holders, The Bank of New York Mellon will deliver the deposited securities at its Corporate Trust Office.

Interchange Between Certificated ADSs and Uncertificated ADSs

ADS registered holders may surrender their ADS to The Bank of New York Mellon for the purpose of exchanging such ADS for uncertificated ADSs. The Bank of New York Mellon will cancel that ADS and will send to the ADS registered holder a statement confirming that the ADS registered holder is the registered holder of uncertificated ADSs. Alternatively, upon receipt by The Bank of New York Mellon of a proper instruction from a registered holder of uncertificated ADSs requesting the exchange of uncertificated ADSs for certificated ADSs, The Bank of New York Mellon will execute and deliver to the ADS registered holder an ADS evidencing those ADSs.

Voting Rights

ADS registered holders may instruct The Bank of New York Mellon to vote the number of deposited shares their ADSs represent. The Bank of New York Mellon will notify ADS registered holders of shareholders’ meetings and arrange to deliver AngloGold Ashanti’s voting materials to them if AngloGold Ashanti asks it to. Those materials will describe the matters to be voted on and explain how ADS registered holders may instruct The Bank of New York Mellon how to vote. For instructions to be valid, they must reach The Bank of New York Mellon by a date set by The Bank of New York Mellon.

Otherwise, ADS registered holders will not be able to exercise their right to vote unless they withdraw the shares. However, ADS registered holders may not know about the meeting sufficiently in advance to withdraw the shares.

The Bank of New York Mellon will try, as far as practicable, to vote or to have its agents vote the ordinary shares or other deposited securities as holders of ADSs instruct, but this is subject to South African law, the provisions of AngloGold Ashanti’s MoI and of the deposited securities and any applicable rule of the JSE. The Bank of New York Mellon will only vote or attempt to vote as such holders of ADSs instruct.

AngloGold Ashanti cannot assure the holders of ADSs that they will receive the voting materials in time for them to instruct The Bank of New York Mellon to vote their ordinary shares. In addition, The Bank of New York Mellon and its agents are not responsible for failing to carry out voting instructions or for the manner of carrying out voting instructions. This means that holders of ADSs may not be able to exercise their right to vote and there may be nothing they can do if their ordinary shares are not voted as they requested.





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Fees and Expenses
ADS holders must pay:For:
$5.00 (or less) per 100 ADSsEach issuance of an ADS, including as a result of a distribution of AngloGold Ashanti ordinary shares or rights or other property

Each cancellation of an ADS, including if the Deposit Agreement terminates
$0.02 (or less) per ADSAny cash payment
Registration or transfer feesTransfer and registration of AngloGold Ashanti ordinary shares on the AngloGold Ashanti share register to or from the name of The Bank of New York Mellon or its agent when AngloGold Ashanti ordinary shares are deposited or withdrawn
$0.02 (or less) per ADS per yearDepositary services
Expenses of The Bank of New York MellonConversion of non-US currency to US dollars

Cable, telex and facsimile transmission expenses

Servicing the deposited securities
Taxes and other governmental charges that The Bank of New York Mellon or any Custodian has to pay on any ADS or AngloGold Ashanti ordinary share underlying an ADS, for example, stock transfer taxes, stamp duty or withholding taxesAs necessary
A fee equivalent to the fee that would have been payable if the securities distributed had been ordinary shares deposited for issuance of ADSsDistribution of securities distributed to holders of deposited securities that are distributed by The Bank of New York Mellon to ADS holders





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Payment of Taxes

Holders of ADSs will be responsible for any taxes or other governmental charges payable on their ADSs or on the deposited securities underlying their ADSs. The Bank of New York Mellon may refuse to transfer their ADSs or allow them to withdraw the deposited securities underlying their ADSs until such taxes or other charges are paid. It may apply payments owed to holders of ADSs or sell deposited securities underlying their ADSs to pay any taxes they owe, and they will remain liable for any deficiency. If The Bank of New York Mellon sells deposited securities, it will, if appropriate, reduce the number of ADSs to reflect the sale and pay to holders of ADSs any proceeds, or send to them any property remaining after it has paid the taxes.

Reclassifications
If AngloGold Ashanti:Then:
Reclassifies, splits up or consolidates any of the deposited securities;

The cash, ordinary shares or other securities received by The Bank of New York Mellon will become deposited securities. Each ADS will automatically represent its equal share of the new deposited securities.
Distributes securities on the ordinary shares that are not distributed to holders of ADSs; or

Recapitalises, reorganises, merges, liquidates, sells all or substantially all of AngloGold Ashanti’s assets, or takes any similar action.		The Bank of New York Mellon may, and will if AngloGold Ashanti asks it to, distribute some or all of the cash, AngloGold Ashanti ordinary shares or other securities it receives. It may also issue new ADSs or ask holders of ADSs to surrender their outstanding ADSs in exchange for new ADSs identifying the new deposited securities.

Amendment and Termination

AngloGold Ashanti may, for any reason, agree with The Bank of New York Mellon to amend the Deposit Agreement and the ADSs without the consent of holders. If the amendment increases fees or charges (except for taxes and other governmental charges or registration fees, cable, telex or facsimile transmission costs, delivery costs or other such expenses) or if the amendment prejudices an important right of ADS holders, it will only become effective 30 days after The Bank of New York Mellon notifies holders of ADSs of the amendment. At the time an amendment becomes effective, holders of ADSs are considered, by continuing to hold their ADSs, to agree to the amendment and to be bound by the ADSs and the agreement as amended.

The Bank of New York Mellon may terminate the Deposit Agreement by mailing notice of termination to ADS holders at least 30 days prior to the date fixed in the notice if AngloGold Ashanti asks it to do so. The Bank of New York Mellon may also terminate the Deposit Agreement if The Bank of New York Mellon has told AngloGold Ashanti that it would like to resign and AngloGold Ashanti has not appointed a new Depositary bank within 90 days. In both cases, The Bank of New York Mellon must notify holders of AngloGold Ashanti ADSs at least 30 days before termination.

After termination, The Bank of New York Mellon and its agents will be required to do only the following under the Deposit Agreement: collect distributions on the deposited securities, sell rights, and, upon surrender of ADSs, deliver AngloGold Ashanti ordinary shares and other deposited securities. Four months after the date of termination or later, The Bank of New York Mellon may sell any remaining deposited securities by public or private sale and will hold the proceeds of the sale, as well as any other cash it is holding under the Deposit Agreement, for the pro rata benefit of the ADS holders who have not surrendered their ADSs. It will not invest the money and will have no liability for interest. The Bank of New York Mellon’s only obligations will be to account for the proceeds of the sale and other cash. After termination, AngloGold Ashanti’s only obligations will be with respect to indemnification of, and payment of certain amounts to, The Bank of New York Mellon.

Limitations on Obligations and Liability to ADS Holders

The Deposit Agreement expressly limits AngloGold Ashanti’s obligations and the obligations of The Bank of New York Mellon, and limits AngloGold Ashanti’s liability and the liability of The Bank of New York Mellon. AngloGold Ashanti and The Bank of New York Mellon:
•are only obligated to take the actions specifically set forth in the Deposit Agreement without negligence or bad faith;
•are not liable if either of AngloGold Ashanti or The Bank of New York Mellon is prevented or delayed by law or circumstances beyond their control from performing their obligations under the Deposit Agreement;
•are not liable if either of AngloGold Ashanti or The Bank of New York Mellon exercises discretion permitted under the Deposit Agreement;
•are not liable for the inability of any holder of ADSs to benefit from any distribution on deposited securities that is not made available to holders of ADSs under the terms of the Deposit Agreement, or for any special, consequential or punitive damages for any breach of the terms of the Deposit Agreement;
•have no obligation to become involved in a lawsuit or other proceeding related to the ADSs or the Deposit Agreement on behalf of the holders of ADSs or on behalf of any other party;
•may rely on advice of or information from legal counsel, accountants, and any persons presenting AngloGold Ashanti’s ordinary shares for deposit, any registered holder or any other person believed by AngloGold Ashanti in good faith to be competent to give such advice or information; and



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•pursuant to the Deposit Agreement agree to indemnify each other under certain circumstances.

Requirements for Depositary Action

Before The Bank of New York Mellon will issue, transfer or register the transfer of an ADS, make a distribution on an ADS, or allow withdrawal of AngloGold Ashanti ordinary shares, The Bank of New York Mellon may require:
•payment of stock transfer or other taxes or other governmental charges and transfer or registration fees charged by third parties for the transfer of any ordinary shares or other deposited securities;
•production of satisfactory proof of the identity and genuineness of any signature or other information it deems necessary; and
•compliance with regulations it may establish, from time to time, consistent with the Deposit Agreement, including presentation of transfer documents.

The Bank of New York Mellon may refuse to deliver, transfer or register transfers of ADSs generally when the books of The Bank of New York Mellon or AngloGold Ashanti are closed, or at any time if either AngloGold Ashanti or The Bank of New York Mellon thinks it advisable to do so.

Holders of ADSs have the right to cancel their ADSs and withdraw the underlying ordinary shares at any time except:
•when temporary delays arise because: (1) either AngloGold Ashanti or The Bank of New York Mellon have closed AngloGold Ashanti’s transfer books; (2) the transfer of the ordinary shares is blocked in connection with voting at a general meeting of shareholders; or (3) AngloGold Ashanti is paying a dividend on the ordinary shares;
•when ADS holders seeking to withdraw the ordinary shares are liable for unpaid fees, taxes and similar charges; or
•when it is necessary to prohibit withdrawals in order to comply with any laws or governmental regulations that apply to ADSs or to the withdrawal of the ordinary shares or other deposited securities.

This right of withdrawal may not be limited by any other provision of the Deposit Agreement.

Pre-release of ADSs

In certain circumstances, subject to the provisions of the Deposit Agreement, The Bank of New York Mellon may deliver ADSs before deposit of the underlying ordinary shares. This is called a pre-release of the ADS.

The Bank of New York Mellon may also deliver AngloGold Ashanti ordinary shares upon cancellation of pre-released ADSs (even if the ADSs are cancelled before the pre-release transaction has been closed out). A pre-release is closed out as soon as the underlying AngloGold Ashanti ordinary shares are delivered to The Bank of New York Mellon. The Bank of New York Mellon may receive ADSs instead of ordinary shares to close out a pre-release.

The Bank of New York Mellon may pre-release ADSs only under the following conditions:
•before or at the time of the pre-release, the person to whom the pre-release is being made must represent to The Bank of New York Mellon in writing that it or its customer: (a) owns the ordinary shares or ADSs to be remitted, (b) assigns all beneficial rights, title and interest in such ADSs or ordinary shares, as the case may be, to The Bank of New York Mellon in its capacity as the Depositary and for the benefit of the ADS holders, and (c) will not take any action with respect to such ADSs or ordinary shares, as the case may be, that is consistent with the transfer of beneficial ownership (including, without the consent of The Bank of New York Mellon, disposing of such ADSs or ordinary shares, as the case may be) other than satisfaction of such pre-release;
•the pre-release must be fully collateralised with cash, US government securities, or other collateral that The Bank of New York Mellon considers appropriate; and
•The Bank of New York Mellon must be able to close out the pre-release on not more than five business days’ notice. Each pre-release will be subject to any further indemnities and credit regulations that The Bank of New York Mellon deems appropriate. The Bank of New York Mellon will normally limit the number of AngloGold Ashanti ordinary shares not deposited but represented by ADSs outstanding at any time as a result of pre-release so that they do not exceed 30 percent of the ordinary shares deposited, although The Bank of New York Mellon may disregard this limit from time to time, if it thinks it is appropriate to do so.

Direct Registration System

In the Deposit Agreement, all parties to the Deposit Agreement acknowledge that the DRS and Profile Modification System, or Profile, will apply to uncertificated ADSs upon acceptance thereof to DRS by The Depository Trust Company, also referred to as DTC. DRS is the system administered by DTC pursuant to which the Depositary may register the ownership of uncertificated ADSs, which ownership will be evidenced by periodic statements sent by the Depositary to the registered holders of uncertificated ADSs. Profile is a required feature of DRS which allows a DTC participant, claiming to act on behalf of a registered holder of ADSs, to direct the Depositary to register a transfer of those ADSs to DTC or its nominee and to deliver those ADSs to the DTC account of that DTC participant without receipt by the Depositary of prior authorisation from the ADS registered holder to register that transfer.




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In connection with and in accordance with the arrangements and procedures relating to DRS/Profile, the parties to the Deposit Agreement understand that The Bank of New York Mellon will not verify, determine or otherwise ascertain that the DTC participant which is claiming to be acting on behalf of an ADS holder in requesting registration of transfer and delivery described in the paragraph above has the actual authority to act on behalf of the ADS holder (notwithstanding any requirements under the Uniform Commercial Code). In the Deposit Agreement, the parties agree that The Bank of New York Mellon’s reliance on and compliance with instructions received by The Bank of New York Mellon through the DRS/Profile System and in accordance with the Deposit Agreement will not constitute negligence or bad faith on the part of The Bank of New York Mellon.

Shareholder Communications: Inspection of Register of Holders of ADSs

The Bank of New York Mellon will make available for inspection at its office all communications that it receives from AngloGold Ashanti as a holder of deposited securities that AngloGold Ashanti makes generally available to holders of deposited securities. The Bank of New York Mellon sends copies of those communications if requested by AngloGold Ashanti. ADS holders have a right to inspect the register of holders of ADSs, but not for the purpose of contacting those holders about a matter unrelated to AngloGold Ashanti’s business or the ADSs.




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10D.Exchange controls

Exchange controls and other limitations affecting security holders

The following is a general outline of South African exchange controls and such outline may not apply to former residents of South Africa. Investors should consult a professional advisor as to the exchange control implications of their particular investments.

South African law provides for exchange control regulations, which restrict the export of capital from South Africa. Exchange controls are administered by the Financial Surveillance Department of the South African Reserve Bank (SARB), in terms of the Exchange Control Regulations, and regulate transactions involving South African residents and non-residents, with the exception of transactions between South African residents and residents of the Common Monetary Area, which comprises the Kingdoms of Lesotho and Eswatini (formerly Swaziland) and the Republic of Namibia. The purpose of exchange controls is to mitigate the decline of foreign capital reserves in South Africa.

The Government of South Africa has, however, committed itself to relaxing exchange controls gradually and significant relaxation has occurred in recent years.

The comments below relate, in general, to exchange controls in place at the date of this annual report.

Investments in South African companies

Acquisitions of shares or assets of South African companies by non-South African purchasers are generally subject to review and approval by the SARB, particularly where the consideration is payable in a form other than cash. In this regard, the SARB will give approval where it is persuaded, inter alia, that the consideration payable for the acquisition of the shares or assets is an arm’s-length consideration and that such acquisition offers benefits to South Africa. In addition, where shares in a South African company are acquired by a non-resident, the share certificates issued to the non-resident shareholder must be endorsed “non-resident” by the SARB (or an Authorised Dealer).

Dividends

Dividends declared to foreign stockholders in public companies listed on the Johannesburg Stock Exchange (JSE) are not subject to the approval of the SARB, provided that the shares in respect of which the dividends are declared have been endorsed “non-resident” by the SARB or an Authorised Dealer at the time of acquisition. Dividends are freely transferable to foreign stockholders from both trading and non-trading profits earned in South Africa by public listed companies.

Voting rights

There are no limitations imposed by South African law, including South African exchange controls, or by the Memorandum of Incorporation of AngloGold Ashanti on the rights of non-South African shareholders to vote their ordinary shares.

Overseas financing, interest and investments

Interest on foreign loans, if paid from cash generated from operations in South Africa, may be remittable abroad, provided that the loans and the payment of the relevant interest in respect of such loans have received prior SARB approval.

AngloGold Ashanti and its South African subsidiaries require SARB approval to raise debt from and repay debt to non-residents of the Common Monetary Area, mainly in respect of the terms of repayment applicable to such loans, as well as any guarantees that may be provided in respect of such loans, by AngloGold Ashanti or its South African subsidiaries.

Debt raised outside the Common Monetary Area by AngloGold Ashanti’s non-South African subsidiaries is not restricted under South African exchange control regulations and can be used for investment outside the Common Monetary Area, subject to the relevant conditions imposed by the SARB in connection with such investment, the establishing of such a non-South African subsidiary or in raising the debt by such subsidiary. For example, AngloGold Ashanti and its South African subsidiaries would require SARB approval in order for AngloGold Ashanti and/or its South African subsidiaries to provide guarantees for the obligations of any of its non-South African subsidiaries. In addition, funds obtained from non-residents of the Common Monetary Area and debt raised outside the Common Monetary Area by AngloGold Ashanti’s non-South African subsidiaries must be repaid or serviced by AngloGold Ashanti’s foreign subsidiaries unless otherwise approved by the SARB.

A listing by a South African company on any stock exchange other than the JSE in connection with raising capital requires permission from the SARB.

Under current exchange control regulations, offshore investments by AngloGold Ashanti and its subsidiaries require the approval of the SARB. Subject to such prior approval of the SARB, there is no limit on the amount of capital that may be invested offshore.



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10E.Taxation

South African taxation

General
The following summary summarises the South African tax consequences of the ownership and disposition of shares by South African residents or ADSs by a US holder (as defined below) and is not intended to constitute tax advice. This summary is based upon current South African tax law and South African Revenue Service (SARS) practice, the US/SA Double Taxation Treaty, and in part upon representations of the Depositary, and assumes that each obligation provided for in, or otherwise contemplated by, a Deposit Agreement and any related agreement will be performed in accordance with its respective terms.

The following summary of the South African tax considerations does not address the tax consequences to a US holder that is resident in South Africa for South African tax purposes, whose holding of shares or ADSs is effectively connected with a permanent establishment in South Africa through which such US holder carries on business activities or, in the case of an individual, with a fixed base situated therein, or who is otherwise not entitled to the full benefits under the US/SA Double Taxation Treaty.

The statements of law set forth below are subject to any changes (which may be applied retroactively) in South African law or in the interpretation thereof by SARS, or in the US/SA Double Taxation Treaty, occurring after the date hereof. It should be expressly noted that South African tax law does not specifically address the treatment of ADSs. However, it is reasonable to assume (although no assurance can be made) that the tax treatment of US holders of shares is also applicable to US holders of ADSs.

Holders are strongly urged to consult their own tax advisors as to the consequences under South African, US federal, state and local, and other applicable laws, of the ownership and disposition of shares or ADSs.

Taxation of dividends

South Africa currently imposes a Dividend Withholding Tax on Companies (dividends tax) at a rate of 20 percent on the net amount of the dividend declared and paid by a resident company, other than a Headquarter Company.

The dividends tax is generally imposed on the beneficial owner of the dividends. The dividends tax is subject to domestic exemptions or relief in terms of an applicable double taxation treaty. The application of such domestic exemptions or relief in terms of an applicable double taxation treaty is subject to the making of certain declarations and undertakings by the beneficial owner of the dividends to the regulated intermediary making payment of the dividend. In terms of the latest amendments to the tax provisions, the declaration and undertaking entitling the beneficial owner to a reduced dividend withholding tax rate must be renewed every five years, subject to certain exemptions.

The dividends tax could be reduced to a lower rate under an applicable double tax treaty, if all requirements are met. In the case of dividends paid to a US holder with respect to shares, the US/SA Double Taxation Treaty would generally limit the dividends tax rate to five percent of the gross amount of the dividends if a corporate US holder holds directly at least 10 percent of the voting stock of the Company, provided that the applicable declaration and undertaking are given by the beneficial owner that the reduced rate applies. In all other cases, the maximum tax rate under the US/SA Double Taxation Treaty is 15 percent of the gross amount of the dividend. Different rules may apply if the beneficial owner of the dividends is a US resident who carries on business in South Africa through a permanent establishment situated in South Africa, or performs in South Africa services from a permanent establishment situated in South Africa, and the dividends are attributable to such permanent establishment or fixed base. Moreover, if the dividends tax rate is reduced under the auspices of an applicable double tax treaty, certain South African compliance requirements must be met in order to obtain the double tax treaty relief, amongst others the completion of a declaration and undertaking by the beneficial owners in favour of the Company and/or the relevant regulated intermediary. In terms of the latest tax provisions the declaration and undertaking need to be renewed at least every five years unless the regulated intermediary is subject to the provisions of inter alia the US Foreign Account Tax Compliance legislation.

A dividend is currently defined as any amount transferred or applied by a company that is a resident (including the Company) for the benefit or on behalf of any person in respect of any share in that company, whether that amount is transferred or applied by way of a distribution made by the company, or as consideration for the acquisition of any share in that company. The definition of a dividend specifically excludes any amount transferred or applied by the company that results in a reduction of so-called contributed tax capital (CTC) of the relevant class of shares, or constitutes shares in the company or constitutes an acquisition by the company of its own securities by way of a general repurchase of securities in terms of the JSE Listings Requirements. A distinction is thus made between a general repurchase of securities and a specific repurchase of securities. If the company embarks upon a general repurchase of securities, the proceeds of such repurchase would not constitute a dividend whereas, in the case of a specific repurchase of securities where the purchase price is not funded out of CTC of that class of shares, the proceeds would likely constitute a dividend.

The concept of CTC effectively means the sum of the stated capital or share capital and share premium of a company that existed on 1 January 2011, excluding any transfers from reserves to the share premium account or stated capital account, plus



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proceeds from the issue of any new shares by a company, less the amount of CTC that has been returned to shareholders. Any application of CTC is limited to the holders of a class of shares. In addition, a distribution of CTC attributable to a specific class must be made proportionately to the number of shares held by a shareholder in a specific class. The definition of CTC is subject to various provisos.

For dividends tax purposes a dividend is defined as any dividend as indicated above that is paid by a company that is a resident or paid by a foreign company if the share in respect of which that foreign dividend is paid is a listed share and to the extent that the foreign dividend does not constitute a distribution of an asset in kind.

Dividends are generally exempt from the payment of income tax, subject to various exclusions.


Taxation of capital gains on sale or other disposition

South African residents are taxed on their worldwide income, while non-residents are only taxed on South African sourced income (subject to the provisions of any relevant double taxation agreement).

Capital gains tax is not a separate tax to income tax; instead, a percentile of the taxpayer’s net capital gain (that is the taxable capital gain) is included in its taxable income on which it is taxed at the income tax rate.

Non-residents are only subject to the South African capital gains tax provisions in respect of the disposal of any immovable property (such as land and buildings or mining rights) or any interest or right of whatever nature to or in immovable property situated in South Africa, or any asset of a permanent establishment through which that non-resident is carrying on a trade in South Africa. In the instance of a shareholder holding shares in a South African company, the ‘interest in immovable property’ requirements are met if 80 percent or more of the market value of the shares is directly or indirectly attributable to South African immovable property held on capital account, and that shareholder (whether alone or together with any connected person in relation to that person), directly or indirectly, holds at least 20 percent of the equity shares of that South African company.

Gains realised on the sale of ordinary shares are deemed to be of a capital nature and subject to capital gains tax provided the ordinary shares have been held for a continuous period of at least three years. This deeming provision is applicable to all executives“equity shares” as defined in section 1 of the South African Income Tax Act, No. 58 of 1962 (the “SA Income Tax Act”), and may not extend to preference shares or ADSs where the preference shares or ADSs do not constitute “equity shares” as so defined.

The meaning of the word “resident” is different for individuals and corporations and is governed by the Act and by the Treaty. In the event of conflict, the Treaty, which contains a tie breaker clause or mechanism to determine residency if a holder is resident in both countries, will prevail. In terms of the Act and Treaty, a US resident holder of shares or ADSs will not be subject to capital gains tax on the disposal of securities held as capital assets unless the securities are linked to a permanent establishment conducted in South Africa or constitute an interest in immovable property as indicated below:above. In contrast, gains on the disposal of securities which are not capital in nature are usually subject to income tax. Any asset held as a long-term investment will be considered a capital asset and subject to capital gains tax on the disposal of such an asset. Any asset acquired for purposes of resale as part of a profit-making scheme will not be considered a capital asset and will be subject to income tax on the disposal of such an asset. However, even in the latter case, a US resident holder will not be subject to income tax, unless the US resident holder carries on business in South Africa through a permanent establishment situated therein.
Executive directors
Securities transfer tax (STT)

No securities transfer tax, or STT, is payable in South Africa with respect to the issue of a security, but STT is payable upon transfer, redemption or cancellation thereof.

STT on transfers of securities is charged at a rate of 0.25 percent on the ‘taxable amount’ in respect of the ‘transfer’ of every security issued by a company incorporated in South Africa, or a company incorporated outside South Africa, but listed on an exchange in South Africa, subject to certain exemptions.

The word ‘transfer’ is broadly defined and includes the transfer, sale, assignment or cession or disposal in any other manner of a security which results in a change in beneficial ownership. The cancellation or redemption of a security is also regarded as a ‘transfer’ unless the company is being liquidated. However, the transfer of a security that does not result in a change in beneficial ownership is not regarded as a ‘transfer’ for STT purposes. A security is also defined as a depositary receipt in a company. Accordingly, STT is payable on the transfer of a depositary receipt issued by a company, including specifically the ADSs issued by the Company. Generally, the central securities Depositary that has been accepted as a participant in terms of the Financial Markets Act, is liable for the payment of the STT, on the basis that it is recoverable from the person to whom it is transferred.

STT is levied on the ‘taxable amount’ of a security. The taxable amount of a listed security is the greater of the consideration for the security declared by the transferee or the closing price of that security as traded on the stock exchange concerned. The person to whom the listed security is transferred is liable for payment of the STT, and such tax must be paid through the member or the participant holding the security in custody, or where the listed security is not held in custody, the company that issued the



298

listed security. The tax so payable may be recovered from the person to whom the security is transferred. The tax must be paid by the fourteenth day of the month following the month during which the transfer occurred.

Withholding tax on interest

Generally, a 15 percent withholding tax may apply to the payments of interest. Under the US/SA Double Taxation Treaty, interest derived and beneficially owned by a resident of the United States will be taxable only in the United States (and therefore not subject to interest withholding tax in South Africa), subject to certain exclusions.

Value-Added Tax

The issue or transfer of shares is not a taxable supply for value-added tax (“VAT”) purposes. However, fees charged by independent service providers would be subject to VAT at the standard rate of 15%.

United States Taxation

General
The following is a general summary of certain material US federal income tax consequences of the ownership and disposition of shares or ADSs to a US holder (as defined below) that holds its shares or ADSs as a capital asset. With respect to the following, references to shares includes references to ADSs unless the context indicates otherwise. This summary does not address any aspect of US federal gift or estate tax, or the state, local or non-US tax consequences to a US holder of shares. This summary is based on US tax laws including the Internal Revenue Code of 1986, as amended (the Code), Treasury regulations promulgated thereunder, rulings, judicial decisions, administrative pronouncements, and the US/SA Double Taxation Treaty, all as currently in effect as of the date of this annual report, and all of which are subject to change or changes in interpretation, possibly with retroactive effect. In addition, this summary is based in part upon the representations of the Depositary and the assumption that each obligation in the Deposit Agreement relating to the ADSs and any related agreement will be performed in accordance with its terms.

This summary does not address all aspects of US federal income taxation that may apply to holders that are subject to special tax rules, including US expatriates, non-resident aliens present in the United States for at least 183 days during the calendar year, insurance companies, tax-exempt entities, banks, certain financial institutions, persons subject to the alternative minimum tax, regulated investment companies, securities broker-dealers, traders in securities who elect to apply a mark-to-market method of accounting, investors that own (directly, indirectly or by attribution) 10 percent or more of the outstanding share capital or voting stock of AngloGold Ashanti, partnerships or other entities treated as partnerships for US federal income tax purposes or persons holding shares through such entities, persons holding their shares as part of a straddle, hedging or conversion transaction, persons who acquired their shares pursuant to the exercise of employee stock options or otherwise as compensation, or persons whose functional currency is not the US dollar. Such holders may be subject to US federal income tax consequences different from those set forth below.

As used herein, the term “US holder” means a beneficial owner of shares that is: (a) a citizen or individual resident of the United States for US federal income tax purposes; (b) a corporation (or other entity taxable as a corporation for US federal income tax purposes) created or organised in or under the laws of the United States, any state thereof or the District of Columbia; (c) an estate the income of which is subject to US federal income taxation regardless of its source; or (d) a trust if (i) a court within the United States can exercise primary supervision over the administration of the trust and one or more US persons are authorised to control all substantial decisions of the trust or (ii) it has a valid election in effect under applicable Treasury regulations to be treated as a United States person.

If a partnership (including for this purpose any entity treated as a partnership for US federal income tax purposes) holds shares, the tax treatment of a partner generally will depend upon the status of the partner and the activities of the partnership. If a US holder is a partner in a partnership that holds shares, the holder is urged to consult its own tax advisor regarding the specific tax consequences of the ownership and disposition of the shares.

US holders should consult their own tax advisors regarding the specific South African and US federal, state and local tax consequences of owning and disposing of shares in light of their particular circumstances as well as any consequences arising under the laws of any other taxing jurisdiction. In particular, US holders are urged to consult their own tax advisors regarding whether they are eligible for benefits under the US/SA Double Taxation Treaty.

For US federal income tax purposes, a US holder of ADSs should generally be treated as owning the underlying shares represented by those ADSs. Therefore, deposits or withdrawals by a US holder of shares for ADSs or of ADSs for shares will not be subject to US federal income tax. The following discussion (except where otherwise expressly noted) applies equally to US holders of shares and US holders of ADSs.

▪Taxation of dividends
The gross amount of any distribution (including the amount of any South African withholding tax thereon) paid to a US holder by AngloGold Ashanti generally will be taxable as dividend income to the US holder for US federal income tax purposes on the date



299

the distribution is actually or constructively received by the US holder, in the case of shares, or by the Depositary, in the case of ADSs. Corporate US holders will not be eligible for the dividends received deduction in respect of dividends paid by AngloGold Ashanti. For foreign tax credit limitation purposes, dividends paid by AngloGold Ashanti will be income from sources outside the United States.

As noted above in “Taxation—South African taxation—Taxation of dividends”, the South African government has enacted a dividend withholding tax. As a result, US holders who are eligible for benefits under the current US/SA Double Taxation Treaty will be subject to a maximum withholding tax of 15 percent on the gross amount of dividend distributions paid by AngloGold Ashanti.

The amount of any distribution paid in foreign currency (including the amount of any South African withholding tax thereon) generally will be includible in the gross income of a US holder of shares in an amount equal to the US dollar value of the foreign currency calculated by reference to the spot rate in effect on the date of receipt by the US holder, in the case of shares, or by the Depositary, in the case of ADSs, regardless of whether the foreign currency is converted into US dollars on such date. If the foreign currency is converted into US dollars on the date of receipt, a US holder of shares generally should not be required to recognise foreign currency gain or loss in respect of the dividend. If the foreign currency received in the distribution is not converted into US dollars on the date of receipt, a US holder of shares generally will have a tax basis in the foreign currency equal to its US dollar value on the date of receipt. Any gain or loss recognised upon a subsequent conversion or other disposition of the foreign currency generally will be treated as US source ordinary income or loss. In the case of a US holder of ADSs, the amount of any distribution paid in a foreign currency generally will be converted into US dollars by the Depositary upon its receipt. Accordingly, a US holder of ADSs generally will not be required to recognise foreign currency gain or loss in respect of the distribution. Special rules govern and specific elections are available to accrual method taxpayers to determine the US dollar amount includible in income in the case of taxes withheld in a foreign currency. Accrual basis taxpayers are therefore urged to consult their own tax advisors regarding the requirements and elections applicable in this regard.

Subject to certain limitations, South African withholding taxes will be treated as foreign taxes eligible for credit against a US holder’s US federal income tax liability. The limitation on foreign taxes eligible for credit is calculated separately with respect to specific classes of income. Dividend income generally will constitute “passive category” income, or in the case of certain US holders, “general category” income. The use of foreign tax credits is subject to complex conditions and limitations. In lieu of a credit, a US holder who itemises deductions may elect to deduct all of such holder’s foreign taxes in the taxable year. A deduction does not reduce US tax on a dollar-for-dollar basis like a tax credit, but the deduction for foreign taxes is not subject to all the same limitations applicable to foreign tax credits. US holders are urged to consult their own tax advisors regarding the availability of foreign tax credits.

Certain US holders (including individuals) are eligible for reduced rates of US federal income tax in respect of “qualified dividend income” received. AngloGold Ashanti currently believes that dividends paid with respect to its shares should constitute qualified dividend income for US federal income tax purposes. Each individual US holder of AngloGold Ashanti shares is urged to consult his own tax advisor regarding the availability of the reduced dividend tax rate in light of his own particular situation.

The US Treasury has expressed concern that parties to whom ADSs are pre-released may be taking actions that are inconsistent with the claiming of foreign tax credits for US holders of ADSs. Such actions would also be inconsistent with the claiming of the reduced rate of tax described above, applicable to dividends received by certain non-corporate holders. Accordingly, the analysis of the creditability of South African withholding taxes or the availability of qualified dividend treatment could be affected by future actions that may be taken by the US Treasury with respect to ADSs.

▪Taxation of dispositions
If a US holder is a resident of the United States for purposes of the US/SA Double Taxation Treaty, such holder will not be subject to South African tax on any capital gain if it sells or disposes of its shares. Special rules apply to individuals who are residents of more than one country.

Subject to the passive foreign investment company considerations discussed below, upon the sale, exchange or other disposition of shares, a US holder generally will recognise capital gain or loss for US federal income tax purposes in an amount equal to the difference between the US dollar value of the amount realised on the disposition and the holder’s tax basis, determined in US dollars, in the shares. Such gain or loss generally will be US source gain or loss, and will be treated as a long-term capital gain or loss if the holder’s holding period in the shares exceeds one year at the time of disposition. If the US holder is an individual, any capital gain generally will be subject to US federal income tax at preferential rates if specified minimum holding periods are met. The deductibility of capital losses is subject to limitations under the Code.

A US holder’s tax basis in a share will generally be its US dollar cost. The US dollar cost of a share purchased with foreign currency will generally be the US dollar value of the purchase price on the settlement date for the purchase (in the case of shares traded on an established securities market that are purchased by a cash basis US holder or an electing accrual basis US holder), or the date of purchase in all other cases. The amount realised on a sale or other disposition of shares for an amount in foreign currency will be the US dollar value of this amount on the settlement date for the sale or disposition (in the case of shares traded on an established securities market that are sold by a cash basis US holder or an electing accrual basis US holder), or the date of sale or disposition in all other cases. In addition, in such other cases, the US holder will recognise US source foreign



300

currency gain or loss (taxable as ordinary income or loss) equal to the difference (if any) between the US dollar value of the amount received based on the exchange rates in effect on the date of sale or other disposition and the settlement date. If an accrual basis US holder makes either of the elections described above, it must be applied consistently from year to year and cannot be revoked without the consent of the Internal Revenue Services (IRS).

Foreign currency received on the sale or other disposition of a share will have a tax basis equal to its US dollar value on the settlement date. Any gain or loss recognised on a sale or other disposition of foreign currency (including its use to purchase shares or upon exchange for US dollars) will be US source ordinary income or loss.

▪Passive foreign investment company considerations
A foreign corporation will be classified a passive foreign investment company (PFIC) for any taxable year if at least 75 percent of its gross income consists of passive income (such as dividends, interest, rents or royalties (other than rents or royalties derived in the active conduct of a trade or business and received from an unrelated person), or gains on the disposition of certain minority interests), or at least 50 percent of the average value of its assets consists of assets that produce, or are held for the production of, passive income. AngloGold Ashanti believes that it was not treated as a PFIC for the taxable year ended 31 December 2021 or any prior taxable years and does not expect to become a PFIC in the foreseeable future. If AngloGold Ashanti were characterised as a PFIC for any taxable year, a US holder would suffer adverse tax consequences with respect to that taxable year and all future years during which it holds AngloGold Ashanti ordinary shares.

These consequences may include having gain realised on the disposition of shares treated as ordinary income rather than capital gain and being subject to punitive interest charges on the receipt of certain dividends and on the proceeds of the sale or other disposition of the shares. Furthermore, dividends paid by AngloGold Ashanti would not be “qualified dividend income” and would be taxed at the higher rates applicable to other items of ordinary income. US holders should consult their own tax advisors regarding the potential application of the PFIC rules to their ownership of the shares.

▪US information reporting and backup withholding
In general, dividend payments made to a US holder and proceeds paid from the sale, exchange, or other disposition of shares may be subject to information reporting to the IRS and possible backup withholding. US federal backup withholding generally is imposed at a current rate of 24 percent on specified payments including dividends and gross sale proceeds to persons who fail to furnish required information. Backup withholding will not apply to a US holder who furnishes a correct taxpayer identification number and makes any other required certification or who is otherwise exempt from backup withholding. US persons who are required to establish their exempt status generally must provide IRS Form W-9 (Request for Taxpayer Identification Number and Certification). Backup withholding is not an additional tax. Amounts withheld as backup withholding may be credited against a holder’s US federal income tax liability. A holder may obtain a refund of any excess amounts withheld under the backup withholding rules by filing the appropriate claim for refund with the IRS and furnishing any required information.

▪Information with respect to foreign financial assets
Individuals that own “specified foreign financial assets” with an aggregate value in excess of $50,000 are generally required to file information reports with respect to such assets with their U.S. federal income tax returns. Depending on the individual’s circumstances, higher threshold amounts may apply. “Specified foreign financial assets” include any financial accounts maintained by foreign financial institutions, as well as any of the following, but only if they are not held in accounts maintained by financial institutions: (i) stocks and securities issued by foreign persons, (ii) financial instruments and contracts held for investment that have foreign issuers or counterparties and (iii) interests in foreign entities. Therefore, the shares may be treated as specified foreign financial assets. In such cases, certain US holders may be subject to this information reporting regime and be required to file IRS Form 8938 listing these assets with their U.S. federal income tax returns. Failure to file information reports may subject a US holder to penalties. US holders are urged to consult their own tax advisors regarding their obligations to file information reports with respect to the shares.







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10F.    DIVIDENDS AND PAYING AGENTS

Not applicable.






10G.    STATEMENT BY EXPERTS

Not applicable.






10H.Documents on Display

AngloGold Ashanti files annual reports on Form 20-F and reports on Form 6-K with the SEC. You may access this information at the SEC’s home page (http://www.sec.gov). Copies of the documents referred to herein may be inspected at AngloGold Ashanti’s offices by contacting AngloGold Ashanti at 112 Oxford Road, Houghton Estate, Johannesburg, 2198 (Private Bag X 20, Rosebank, 2196) South Africa, Attention: Company Secretary, telephone number: +27 11 637 6000.

No material on the AngloGold Ashanti website forms any part of, or is incorporated by reference into, this annual report on Form 20-F. References herein to the company’s website shall not be deemed to cause such incorporation.







10I.    SUBSIDIARY INFORMATION

Not applicable.



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ITEM 11: QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

TREASURY POLICY

Risk management activities within the group are the ultimate responsibility of the board. The Chief Financial Officer is responsible to the board for the design, implementation and monitoring of the risk management plan. The Audit and Risk Committee is responsible for overseeing risk management plans and systems, as well as financial risks which include a review of treasury activities and exposure to the group’s counterparties.

Under the financial and risk management policy, hedges may be put in place once approved by the Board, using approved instruments over the group’s planned gold production and resultant gold sales and currency exposures. The financial and risk management policy sets trading limits for the various levels of treasury management from dealer, through treasurer, executive management team and board members.

The financial risk management activities objectives of the group are as follows:
•Safeguarding the group’s core earnings stream from its major assets through the effective control and management of gold and other commodity price risk, foreign exchange risk and interest rate risk;
•Effective and efficient usage of credit facilities in both the short- and long-term through the adoption of reliable liquidity management planning and procedures;
•Ensuring that investment and hedging transactions are undertaken with creditworthy counterparts; and
•Ensuring that all contracts and agreements related to financial risk management activities are co-ordinated and consistent throughout the group and comply where necessary with all relevant regulatory and statutory requirements.

Under the financial and risk management policy, treasury reports are produced at the following minimum intervals for review by management and the board of directors:
•DailyTreasury Manager
•WeeklyTreasurer
•MonthlyTreasurer
•QuarterlyAudit and Risk Committee and Board of Directors

The Treasury Risk Analyst is responsible for monitoring all reports for completeness and accuracy which are reviewed by the Treasurer.

At AngloGold Ashanti, all front office (dealing), middle office (risk reporting), back office (deal confirmations) and payment (treasury settlements) activities are segregated. All treasury transactions are captured on a third party developed treasury and risk management system that is widely used in corporate treasuries. The group internal audit function conducts regular and ad-hoc reviews of the activities of treasury and the group’s treasury system.

Gold price risk management activities

In the normal course of its operations, the group is exposed to gold and other commodity price, currency, interest rate, equity price, liquidity and non-performance risk, which includes credit risk. The group is also exposed to certain by-product commodity price risk. In order to manage these risks, the group may enter into transactions which make use of derivatives. The group has developed a risk management process to facilitate, control and monitor these risks.

Gold price risk arises from the risk of an adverse effect of current or future earnings resulting from fluctuations in the price of gold. The group eliminated its hedge book during 2010 and has since had full exposure to the spot price of gold.

As at 31 December 2021, the group had no commitments against future production potentially settled in cash.

Foreign exchange price risk protection agreements

The group, from time to time, may enter into currency forward exchange and currency option contracts to hedge certain anticipated transactions denominated in foreign currencies. The objective of the group’s foreign currency hedging activities is to protect the group from the risk that the eventual cash flows resulting from transactions denominated in US dollars will be adversely affected by changes in exchange rates.

As at 31 December 2021 and 2020, the group had no open forward exchange or currency option contracts in its currency hedge position.







303

IFRS guidance on derivatives and hedging requires that derivative instruments be accounted for as follows:
•Contracts that meet the criteria for hedge accounting are designated as hedging instruments, hedging the variability of forecasted cash flows from the sale of production into the spot market and from capital expenditure denominated in a foreign currency and are classified as cash flow hedges. Cash flow hedge losses pertaining to capital expenditure of $1 million as at 31 December 2021 (2020: $1 million) are expected to be reclassified from accumulated other comprehensive income and recognised as an adjustment to depreciation expense over the life of the Serra Grande mine.
•All other derivatives are measured at their estimated fair value, with the changes in estimated fair value at each reporting date reported as gains or losses on derivatives in earnings in the period in which they occur.

Cash flows related to these instruments designated as qualifying hedges are reflected in the consolidated statement of cash flows in the same category as the cash flow from the items being hedged. Accordingly, cash flows relating to the settlement of forward sale commodity derivatives contracts hedging the forecasted sale of production into the spot market will be reflected upon settlement as a component of operating cash flows.

Interest rate and liquidity risk

Fluctuations in interest rates impact interest paid and received on the short-term cash investments and financing activities, giving rise to interest rate risk.

In the ordinary course of business, the group receives cash from the proceeds of its gold sales and is required to fund its working capital requirements. This cash is managed to ensure that surplus funds are invested in a manner to achieve market related returns while minimising risks.

The group is able to actively source financing at competitive rates. The counterparts are financial and banking institutions and their credit ratings are regularly monitored by the group.

Cash and loans advanced maturity profile
20212020
Maturity dateCurrencyFixed rate
investment
amount
(million)		Effective
rate %		Floating rate
investment
amount
(million)		Effective
rate %		Fixed rate
investment
amount
(million)		Effective
rate %		Floating rate
investment
amount
(million)		Effective
rate %
All less than one year$1 — 301 0.10 — 572 0.15 
ZAR1,337 3.54 — — 2,611 3.30 29 2.00 
AUD— 72 — — 50 — 
BRL— 106 4.27 — 32 1.90 
ARS13,256 34.00 — 6,679 34.00 4,820 30.00 
CAD— 353 0.19 

Borrowings maturity profile
Within one yearBetween
One and two years		Between Two
and five years		After five yearsTotal
CurrencyBorrowings
amount
(million)		Effective
rate
%		Borrowings
amount
(million)		Effective
rate
%		Borrowings
amount
(million)		Effective
rate
%		Borrowings
amount
(million)		Effective
rate
%		Borrowings amount (million)
$51 7.4 — — 63 7.0 1,717 4.1 1,831 
AUD— — 43 1.5 — — — — 43 
BRL1 5.7 — — — — — — 1 
TZS516 12.5 — — 107,163 12.5 — — 107,679 

The table above is based on the borrowings as at 31 December 2021 including borrowing cost and accrued interest but excludes any fair value adjustments.




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Interest rate risk
Fixed for less than one yearFixed for between one and three yearsFixed for greater than three years
CurrencyBorrowings
amount
(million)		Effective
rate
%		Borrowings
amount
(million)		Effective
rate
%		Borrowings
amount
(million)		Effective
rate
%		Total
Borrowings
amount
(million)
$51 7.4 63 7.0 1,717 4.1 1,831 
AUD— — 43 1.5 — — 43 
BRL1 5.7 — — — — 1 
TZS516 12.5 107,163 12.5— — 107,679 

The table above is based on the borrowings as at 31 December 2021 including borrowing cost and accrued interest but excludes any fair value adjustments.

Non-performance risk

Realisation of contracts is dependent upon counterparts’ performance. The group has not obtained collateral or other security to support the financial instruments subject to non-performance risk, but the credit standing of counterparts was monitored on a regular basis throughout the year. The group spreads its business over a number of financial and banking institutions to minimise the risk of potential non-performance. Furthermore, the approval process of counterparts and the limits applied to each counterpart were monitored by the board of directors. Where possible, ISDA netting agreements were put in place.

The combined maximum credit risk exposure at balance sheet date amounts to $1,300 million in 2021 for financial assets (2020: $1,500 million) and nil million for financial guarantees (2020: nil). Credit risk exposure netted by open derivative positions with counterparts was nil (2020: nil). No set-off is applied to balance sheet amounts due to the different maturity profiles of assets and liabilities.

Fair value of financial instruments

The estimated fair values of financial instruments are determined at discrete points in time based on relevant market information. The estimated fair values of the group’s financial instruments, as measured at 31 December, are as follows (assets (liabilities)):
20212020
Carrying
Amount		Fair
value		Carrying
Amount		Fair
value
(millions)$$$$
Cash and cash equivalents1,154 1,154 1,330 1,330 
Restricted cash58 58 73 73 
Deferred compensation asset25 25 28 28 
Short-term borrowings(51)(51)(142)(142)
Long-term borrowings(1,858)(1,960)(1,789)(1,989)
Listed investments - FVTOCI116 116 186 186 
Listed and unlisted investments1 1 2 2 

The following methods and assumptions were used to estimate the fair value of each class of financial instrument:

Cash restricted for use, cash and cash equivalents

The carrying amounts approximate fair value.

Trade and other receivables and trade and other payables

The carrying amounts approximate fair value because of the short-term duration of these instruments, except for the deferred compensation asset which is carried at fair value in level 3 of the fair value hierarchy.

Other investments

Listed equity investments classified as FVTOCI and FVTPL are carried at fair value in level 1 of the fair value hierarchy.






305

Borrowings

The interest rate on borrowings is reset on a short-term floating rate basis, and accordingly the carrying amount is considered to approximate fair value.

Derivatives

The fair values of volatility-based instruments (i.e. options) are estimated based on market prices, volatilities, credit risk and interest rates for the periods under review.

Gain (loss) on non-hedge derivatives and other commodity contracts recognised
Year ended 31 December
20212020
(millions)$$
Other commodity contracts(1)
— (19)

(1)    Excluding the commodity contracts transferred to held for sale liabilities in 2020.

Foreign exchange risk

Foreign exchange risk arises on financial instruments that are denominated in a foreign currency.

The following table discloses the approximate foreign exchange risk sensitivities of borrowings at 31 December 2021 (actual changes in the timing and amount of the following variables may differ from the assumed changes below).
2021
Change in
exchange rate
Change in
borrowings
Total
$M
Debt
TZS denominated (TZS/$)Spot (+TZS250)(5)
AUD denominated (AUD/$)Spot (+AUD0.1)(2)
2021
Change in
exchange rate		Change in
borrowings
Total
$M
Debt
TZS denominated (TZS/$)Spot (-TZS250)6 
AUD denominated (AUD/$)Spot (-AUD0.1)2 




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ITEM 12:    DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES


12A.    DEBT SECURITIES

Not applicable


12B.    WARRANTS AND RIGHTS

Not applicable


12C.    OTHER SECURITIES

Not applicable


12D.    AMERICAN DEPOSITARY SHARES


12D.3.    DEPOSITARY FEES AND CHARGES


AngloGold Ashanti’s American Depositary Shares, or ADSs, each representing one of AngloGold Ashanti’s ordinary shares, are traded on the New York Stock Exchange under the symbol “AU.” The ADSs are evidenced by American Depositary Receipts, or ADRs, issued by The Bank of New York Mellon, as Depositary under the Amended and Restated Deposit Agreement dated as of 3 June 2008, among AngloGold Ashanti Limited, The Bank of New York Mellon and owners and beneficial owners of from time to time of ADRs. ADS holders may have to pay the following service fees to the Depositary:

ServiceFees (USD)
Issuance of ADSsUp to 5 cents per ADS(1)
Cancellation of ADSsUp to 5 cents per ADS(1)
Distribution of cash dividends or other cash distributionsUp to 2 cents per ADS(2)
Distribution of securities pursuant to
(i) stock dividends, free stock distributions or
(ii) exercises of rights to purchase additional ADSsUp to 5 cents per ADS(2)
ADR Depositary Services feeUp to 2 cents per year(2)
(1)These fees are typically paid to the Depositary by the brokers on behalf of their clients receiving the newly-issued ADSs from the Depositary and by the brokers on behalf of their clients delivering the ADSs to the Depositary for cancellation. The brokers in turn charge these transaction fees to their clients.
(2)In practice, the Depositary has not collected these fees. If collected, such fees are offset against the related distribution made to the ADR holder.

In addition, ADS holders are responsible for certain fees and expenses incurred by the Depositary on their behalf including (1) taxes and other governmental charges, (2) such registration fees as may from time to time be in effect for the registration of transfers of ordinary shares generally on the share register and applicable to transfers of ordinary shares to the name of the Depositary or its nominee or the Custodian or its nominee on the making of deposits or withdrawals, and (3) such cable, telex and facsimile transmission expenses as are expressly incurred by the Depositary in the conversion of foreign currency.

Fees and other charges payable by the Depositary, any of the Depositary’s agents, including the Custodian, or the agents of the Depositary’s agents in connection with the servicing of Shares or other Deposited Securities, shall be collected at the sole discretion of the Depositary by billing such owners for such charge or by deducting such charge from one or more cash dividends or other cash distributions.

For further information, refer to “Item 10C: Material Contracts—The Deposit Agreement”.

12D.4.    DEPOSITARY PAYMENTS FOR 2021

For the year ended 31 December 2021, The Bank of New York Mellon, as Depositary, reimbursed AngloGold Ashanti an amount of $1,083,405 (2020: $1,057,722) mainly for investor relations related expenses.





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PART II
ITEM 13:    DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES

None.



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ITEM 14:    MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS

None.




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ITEM 15: CONTROLS AND PROCEDURES


(a)    Disclosure Controls and Procedures: As of 31 December 2021, (the “Evaluation Date”), the company, under the supervision and with the participation of its management, including the chief executive officer and chief financial officer has evaluated the effectiveness of the company’s disclosure controls and procedures (as defined in Rules 13a - 15(e) and 15d - 15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)). Based on such evaluation, the chief executive officer and chief financial officer have concluded that, as of the Evaluation Date, the company’s disclosure controls and procedures are effective, and are reasonably designed to ensure that information required to be disclosed by the company in reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the Securities and Exchange Commission. These disclosure controls and procedures include without limitation, controls and procedures designed to ensure that information required to be disclosed by the company in reports that it files or submits under the Exchange Act is accumulated and communicated to the company’s management, including its chief executive officer and chief financial officer, as appropriate to allow timely decisions regarding disclosure.

(b)    Management’s Annual Report on Internal Control over Financial Reporting: Management is responsible for establishing and maintaining adequate internal control over financial reporting for the company, as defined in the Exchange Act Rule 13a - 15(f) and 15d -15(f). The company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of the company’s financial statements for external purposes in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board.

The company’s internal control over financial reporting includes those policies and procedures that:
•Pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect transactions and dispositions of the assets of the company;
•Provide reasonable assurance that the transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of management and the Directors of the company; and
•Provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Projections of any evaluation of effectiveness to future periods is subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with policies and procedures may deteriorate.

The company’s management assessed the effectiveness of the company’s internal control over financial reporting as of the Evaluation Date. In making this assessment, management used the criteria set forth by the Committee of Sponsoring Organisations of the Treadway Commission (COSO) in Internal Control - Integrated Framework and related illustrative documents released on 14 May 2013. Based on this assessment, and using those criteria, management concluded that the company’s internal control over financial reporting was effective as of the Evaluation Date.

(c)    Changes in Internal Control over Financial Reporting: The Company maintains a system of internal control over financial reporting that is designed to provide reasonable assurance that its books and records accurately reflect transactions and that established policies and procedures are followed.

There have been no changes in the company’s internal control over financial reporting identified in connection with the evaluation required by paragraph (d) of Exchange Act Rule 13(a) - 15 during the year ended 31 December 2021 that have materially affected, or are reasonably likely to materially affect, the company’s internal control over financial reporting.

See also “Item 3D: Risk Factors—AngloGold Ashanti’s inability to maintain an effective system of internal control over financial reporting may have an adverse effect on investors’ confidence in the reliability of its financial statements.”

(d)    Attestation Report of the Registered Public Accounting Firm: The Company’s independent registered accounting firm, Ernst & Young Inc., has issued an attestation report on the effectiveness of the company’s internal control over financial reporting. This report appears below.


/s/ KC Ramon
Kandimathie Christine Ramon
Chief Financial Officer


/s/ A Calderon
Alberto Calderon
Chief Executive OfficerLEGAL PROCEEDINGS
Within three years of appointment (or for existing executive
There is no material proceeding in which a director, from introduction of this rule) executive director is to accumulate a MSRofficer or affiliate of AngloGold Ashanti sharesis either a party adverse or has a material interest adverse to the valuecompany.

In addition to the proceedings described below, the company becomes involved, from time to time, in various claims, legal proceedings and complaints incidental to the ordinary course of 100 percentits business.


TAX MATTERS

•The State of net annual base salary; andMinas Gerais v. Mineração Serra Grande S.A. (MSG): In Brazil, MSG received a tax assessment in October 2003 from the State of Minas Gerais related to VAT on gold bullion transfers. The tax administrators rejected MSG’s appeal against the assessment. MSG is now appealing the dismissal of the case to the State Court of Minas Gerais. The assessment is approximately $9 million. Any possible payment by MSG would be set off by an indemnity from Kinross Gold Corporation (Kinross) of $5 million provided for as part of the company’s acquisition of Kinross’ interest in MSG in 2012. The matter is currently pending in the State Court of Minas Gerais.
At the end of six years, executive director is to accumulate a MSR of
•Brazilian tax authorities v. AngloGold Ashanti sharesCórrego do Sítio Mineração SA and Mineração Serra Grande S.A. (MSG): AngloGold Ashanti’s subsidiaries in Brazil, including AGA Mineração (formerly AngloGold Ashanti Brasil Mineração Ltda) and MSG, are involved in various disputes with the Brazilian tax authorities. These disputes date back to 2007 and involve federal tax assessments including income tax, royalties, social contributions, VAT and annual property tax. Various new claims, relating to VAT on diesel and consumables, for $12 million were assessed by management during the second half of 2020 and classified as possible claims, based on external legal opinions. Collectively, the total possible amount involved across all disputes is approximately $45 million.

•Colombian Tax Office (DIAN) v. AngloGold Ashanti Colombia S.A.S. (AGAC) and Gramalote Colombia Limited (Gramalote): Since 2013, AGAC received various notices from the DIAN that it disagreed with the company’s tax treatment of certain items in its 2010, 2011, 2013 and 2014 income and equity tax returns (including the treatment of exploration expenditure). The official assessments from the DIAN for those tax returns calculate additional taxes of $17 million. Penalties and interest for such additional taxes amounted to $95 million as of 31 December 2021. However, AGAC believes that the DIAN has applied the tax legislation incorrectly and subsequently filed lawsuits before the Administrative Court of Cundinamarca (the trial court for tax litigation) challenging each of the DIAN’s rulings in respect of those tax returns. In April 2018, the Administrative Court of Cundinamarca denied AGAC’s arguments with respect to the value2011 income and equity tax litigation. AGAC subsequently appealed this judgement to the Council of 200 percentState of net annual base salary (additional 100 percent MSR) which they will be requiredColombia (the highest court for tax matters) where the appeal is currently pending. A final judgement could take several years. The company’s other lawsuits with respect to hold on an on-going basis.its 2010, 2013 and 2014 income and equity tax returns are still pending before the Administrative Court of Cundinamarca.
Chief Financial Officer
Within three years of appointment (or for existing executive director,Since 2019, Gramalote also received various notices from the introductionDIAN that it disagreed with its 2013 and 2014 income and equity tax returns on the same basis as the abovementioned AGAC returns. The official assessments from the DIAN for those tax returns calculate additional taxes of less than $100,000. Penalties and interest for such additional taxes amounted to $10 million as of 31 December 2021. However, Gramalote also believes that the DIAN has applied the tax legislation incorrectly and subsequently filed lawsuits before the Administrative Court of Cundinamarca challenging each of the DIAN’s rulings in respect of those tax returns. Gramalote’s lawsuits with respect to its 2013 and 2014 income and equity tax returns are still pending before the Administrative Court of Cundinamarca.

The total amount claimed by the DIAN, related to the above tax matters, amounted to $122 million of which $105 million related to penalties and interest as of 31 December 2021. Following a judgment of the Council of State in July 2019 holding that duplicate penalties may not be charged, the company expects that certain penalties will likely be waived, reducing the overall exposure by $48 million to $74 million in respect of those tax matters. In addition, from 2017 onwards, the deduction of exploration costs is prohibited following a change in Colombian tax legislation. As a result, exploration costs have been treated in accordance with the amended tax legislation subsequent to that date.

•Argentina Tax Authority (AFIP) v. Cerro Vanguardia S.A. (CVSA): In July 2013, CVSA received a notification from the AFIP requesting corrections to the 2007, 2008 and 2009 income tax returns of about $1.1 million relating to the non-deduction of tax losses previously claimed on hedge contracts. The AFIP is of the view that the financial derivatives could not be considered as hedge contracts, as hedge contract losses could only be offset against gains derived from the same kind of hedging contracts. Penalties and interest on the disputed amounts are estimated at a further $5.5 million. CVSA and AFIP have corresponded on this rule), executive directorissue over the past several years, and the Argentinian tax authorities continue to assert their position regarding the use of the financial derivatives. CVSA filed an appeal with the Tax Court in June 2015, and the parties submitted their final reports in July 2017. The matter is to accumulate a MSR ofpending with the Tax Court.







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•Ghanaian tax authorities v. AngloGold Ashanti shares to the value(Ghana) Limited (AGAG): In Ghana, AGAG received tax assessments of 75 percent$9 million as of net annual base salary; and
At the end of six years, executive director is to accumulate a MSR of AngloGold Ashanti shares to the value of 150 percent of net annual base salary (additional 75 percent MSR) which they will be required to hold on an on-going basis.
Executive Committee members:
Within three years of appointment (or for existing executives, from the introduction of this rule), executive committee members are to accumulate a MSR of AngloGold Ashanti shares to the value of 75 percent of net annual base salary; and
At the end of six years, executive committee members are to accumulate a MSR of AngloGold Ashanti shares to the value of 150 percent of net annual base salary (additional 75 percent MSR) which they will be required to hold on an on-going basis.

The table below summarises each director and executive committee member’s accomplishment of the MSR:
Executive 
Six-year target
Achievement
Date
 MSR holding as at 31 December 2018 as percentage of net base pay Three-year MSR Target Achievement Percentage 
Six-year
MSR Target
Achievement Percentage
Executive Directors        
KPM Dushnisky(1)
 March 2024 74% 100% 200%
KC Ramon March 2021 425% 75% 150%
Prescribed Officers        
CE Carter March 2019 235% 75% 150%
GJ Ehm March 2019 318% 75% 150%
L Eybers March 2023 137% 75% 150%
DC Noko March 2019 562% 75% 150%
ME Sanz Perez March 2019 662% 75% 150%
C Sheppard March 2021 126% 75% 150%
TR Sibisi March 2022 75% 75% 150%
Exit        
S Venkatakrishnan(2)
 March 2019 0%
 100% 200%

(1)
The Executive Director joined the company 1 September 2018 and the MSR achievement is due in March 2021. The six-year achievement is due in March 2024.
(2)
S Venkatakrishnan resigned effective 30 August 2018.

CO-INVESTMENT PLAN

To assist executives in meeting their MSR’s, with effect from February 2013, they were given the opportunity, on a voluntary basis, to participate in the Co-Investment Plan (CIP), and this has been adopted on the conditions below:

Executives will be allowed to take up to 50 percent of their after-tax cash bonus to participate in a further matching scheme by purchasing shares in AngloGold Ashanti, and the company will match their initial investment into the scheme at 150 percent, with vesting over a two-year period in two equal tranches. Due to the implementation of the new incentive scheme in January 2018, the Deferred Share Plan (DSP), the last CIP participation took place in 201831 December 2021 in respect of the cash bonus2004-2014 tax years, following an audit by the Ghanaian tax authorities related to withholding taxes on payments to non-resident persons. AGAG raised objections with the Ghanaian tax authorities and believes that the withholding taxes were not properly assessed. On several occasions, most recently in 2017, AGAG met with the Commissioner-General of the Ghana Revenue Authority and provided its position in writing together with the relevant supporting documentation. AGAG has yet to receive a response from the Commissioner-General.

COLOMBIA

•Santa María-Montecristo and La Colosa class action lawsuits: Class action lawsuits have been filed in relation to each of AngloGold Ashanti Colombia S.A.S.’s (AGAC) Santa María-Montecristo and La Colosa projects. Each of the two lawsuits aims to stop exploration and mining in certain restricted areas affected by the projects due to environmental concerns.

In respect of the Santa María-Montecristo class action lawsuit, in September 2011, the Administrative Court of Tolima granted one of the plaintiffs a preliminary injunction suspending AGAC’s mining concession contracts in relation to this project. AGAC has challenged this injunction, nevertheless, it remains in place during the course of the court proceedings. In May 2019, the Administrative Court of Tolima ruled that a technical study be prepared to define the places in which mining activities could be performed in the Combeima canyon without posing any threat to the water reservoirs of Ibagué, the capital of the Tolima department. In September 2020, the Council of State of Colombia (the highest court for administrative matters) on appeal overruled the decision of the Administrative Court of Tolima. The Council of State’s decision, which is final and not subject to further appeal, determined that AGAC, as concessionaire, has a right to develop the project if it can demonstrate to the mining and environmental authorities on the basis of technical studies that its mining exploration and, eventually, exploitation activities, will not impact the water resources of the Coello River basin and its tributaries. Until such time, the injunction remains in place.

The consolidated La Colosa class action lawsuit originally consisted of four separate class actions. In relation to this project, in October 2016, Tolima’s Administrative Court ordered that a technical study be prepared by a panel of seven experts (selected by the plaintiff, AGAC, universities, the Colombian government and an NGO) to determine whether the La Colosa project presents a “threat” to the environment during its exploration phase. In December 2017, performance year.Ibagué’s Third Administrative Court ordered that another technical study, similar to the one described in the October 2016 order, be prepared for the La Colosa project. AGAC appealed both orders. In September 2018, Tolima’s Administrative Court consolidated all class actions in relation to the La Colosa project into one single class action lawsuit which is currently pending before the Council of State. The lastorders to prepare the technical studies have been temporarily suspended pending resolution by the Council of State. If AGAC’s appeal before the Council of State is not successful, the company matchingmay have to perform one or more technical studies in relation to the La Colosa project. If the studies were to conclude that a “threat” exists, certain development activities at the La Colosa project may be suspended.

Further, while the plaintiffs in the La Colosa class action have petitioned the courts to cancel the mining concession contracts, the company believes that the judiciary system in Colombia does not have the authority to order such cancellation. Such power, by law, vests solely in the Colombian government which, through the relevant Colombian mining authorities, has the discretion to declare concessions void if a concession holder breaches applicable environmental laws or regulations. The Colombian government, as the authority granting the mining concession contracts, is also a defendant in this class action lawsuit together with AGAC. AGAC continues to oppose, through a variety of integrated legal and political strategies, the class action lawsuit that was filed against it. However, if the plaintiffs prevail and AGAC is unable to perform its core concession contracts as a result of the judicial decision, the company would be required to abandon the project.

•Cortolima’s injunction against AngloGold Ashanti Colombia S.A.S. (AGAC): In March 2013, Cortolima, a regional environmental authority in the Tolima department, issued a regulatory injunction against AGAC alleging, among other things, that in relation to certain of AGAC’s La Colosa mine design-related activities in the municipality of Piedras, AGAC engaged in drilling and other activities that could have negative effects on the environment. The injunction did not include any allegation that AGAC’s actions actually caused any environmental damages in Piedras. AGAC’s challenge of the injunction was unsuccessful before Cortolima. In August 2013, AGAC initiated legal proceedings before the Council of State of Colombia (the highest court for administrative matters) seeking annulment of the injunction as well as restoration of its rights to continue its activities in the area. In November 2019, the Council of State ruled that the competent judicial authority to decide on this matter is the Administrative Court of Tolima and referred the case to that court. In July 2020, the Twelfth Administrative Court of Tolima ruled that since the injunction is a preliminary and temporary measure imposed as part of the administrative approval process within Cortolima and not a final decision, it is not yet amenable to administrative judicial review. On 29 July 2021, this decision was reversed on appeal by the Administrative Superior Court of Tolima in a ruling that such injunctions are amenable to administrative judicial review. The appellate court ordered the Twelfth Administrative Court of Tolima to review the matter and issue a decision thereon. Consequently, the Twelfth Administrative Court of Tolima admitted the case and a first hearing is scheduled to be held on 21 April 2022. The company expects that a final resolution of this matter will include payment of a penalty by AGAC in an amount that is not expected to be material. While the injunction remains in place, AGAC is not able to engage in certain of its activities related to the La Colosa project.




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•Piedras and Cajamarca popular consultations: In 2013, the local council of the city of Piedras, near the La Colosa project, organised a popular consultation to ban all mining activities in Piedras (Piedras popular consultation), the result of which was validated by the Administrative Court of Tolima as part of an administrative procedure. Although the Piedras popular consultation did not have an immediate impact on the La Colosa project (due to its distant location from the project), AGAC believes the Piedras popular consultation was in violation of national law in Colombia. In 2013, AGAC filed a ‘tutela’ action (a legal action alleging a violation of constitutional rights) with the Council of State of Colombia (the highest court for administrative issues). In 2014, AGAC’s ‘tutela’ action was dismissed by the Council of State for lack of standing on the grounds that AGAC did not have mining tenements in Piedras. In addition, in 2015, AGAC filed a request for annulment of the administrative acts adopted by the local authorities in furtherance of the results of the Piedras popular consultation, which was rejected by the Second Administrative Court of Ibagué. AGAC subsequently appealed this ruling. On 22 July 2021, AGAC was notified that the Administrative Superior Court of Tolima ruled on appeal that, in light of the 2018 decision of the Constitutional Court of Colombia (the highest court for constitutional issues) holding that local municipalities or regions are not entitled to veto mining activities through popular consultations (as further described below), the results of the Piedras popular consultation, and the administrative acts adopted in furtherance thereof, were not enforceable. On 13 September 2021, a third party filed a ‘tutela’ action with the Council of State arguing that the Administrative Superior Court of Tolima did not have the authority to determine that the results of the Piedras popular consultation, and the administrative acts adopted in furtherance thereof, were not enforceable. On 15 December 2021, the Council of State dismissed this ‘tutela’ action for lack of standing.

In March 2017, the residents of the municipality of Cajamarca also voted in a popular consultation to disapprove mining projects in the municipality, including the La Colosa project (Cajamarca popular consultation). However, the Mining Minister of Colombia subsequently publicly confirmed that Cajamarca’s vote does not apply retroactively implying the Cajamarca popular consultation did not have an immediate impact on AGAC’s rights with respect to the La Colosa project. In April 2017, AGAC nevertheless suspended all exploration activities at the La Colosa project until there is more certainty about mining activity in Colombia. On 11 October 2018, the Colombian Constitutional Court issued ruling SU-095-2018 stating that local municipalities or regions were not entitled to veto mining activities through popular consultations. The Constitutional Court also ordered the national legislative body, the Congress of Colombia, to enact a law within two years to ensure that local communities and groups are adequately consulted in the approval of mining activities in accordance with specific criteria set out in its ruling. Subsequently, a group of citizens submitted an annulment claim before the Administrative Court of Cundinamarca to cancel AGAC’s mining contract in Cajamarca on the grounds of the results of the Cajamarca popular consultation. After having admitted the annulment claim in December 2019, the Administrative Court of Cundinamarca dismissed the plaintiffs’ claim on 26 May 2021 on procedural grounds. The plaintiffs subsequently appealed this decision and the appeal is currently pending before the Council of State.

•La Colosa Human Rights Litigation: In November 2014, the Personero (Ombudsman) of Ibagué, the capital of the Tolima department, filed a petition against the Colombian government before the Inter-American Commission on Human Rights (Commission), based in Washington, D.C., for alleged human rights violations protected by the American Convention on Human Rights (Convention) which has been ratified by Colombia along with many other Central and South American countries. The Commission has the power to refer a case to the Inter-American Court of Human Rights (Court) which is an autonomous judicial institution based in San José, Costa Rica whose purpose is the application and interpretation of the Convention. The petition alleges that the Colombian government denied justice to the Personero as a result of the failure of the Colombian judiciary to resolve the issues raised in two class actions filed by him before the local Colombian administrative courts within a reasonable period of time. Although AGAC is not a party to the suit, its outcome is nevertheless important to the development of the La Colosa project. The Commission currently has not accepted nor referred the case to the Court. If the case would be accepted or referred in the future, the Colombian government will have to defend itself against the lawsuit and will be bound by the findings of the Court. AGAC continues to regularly follow up with the Colombian government for updates.

•Paramo Delimitation: In November 2016, the Colombian government issued Resolution 1987 delineating certain wetlands or moorlands as environmentally important protected areas, which designation includes certain areas in 2020and around the La Colosa project. In these areas there are limitations, or in some instances outright bans, on mining and mining-related activities. These limitations and bans could potentially adversely impact the design, operations and production of the mining project at the La Colosa project. In June 2017, AGAC filed suit against the Colombian Ministry of the Environment in the Administrative Court of Cundinamarca to annul Resolution 1987 on technical and other grounds. The lawsuit was admitted in April 2019. The Ministry of the Environment, as defendant in this action, is expected to file its response to the annulment claim.

•Zonte Metals: A Canadian junior mining company, Zonte Metals, filed applications for title to certain corridors, or small slivers of land, overlaying sections of the Gramalote project. The Secretary of Mines of Antioquia, the department in which the Gramalote project is located, denied the applications filed by Zonte Metals. However, Zonte Metals then filed a claim against the Colombian National Mining Agency (ANM) and the Antioquia Secretary of Mines before the Council of State of Colombia, by which it seeks to (i) revoke the resolution that denied its application and (ii) obtain the rights over the corridors requested in its application. The Council of State subsequently enjoined the Antioquia Secretary of Mines and Gramalote Colombia Limited (Gramalote) from progressing a pending application to integrate the disputed corridors with Gramalote’s tenement. The Antioquia Secretary of Mines has filed its response to the Zonte Metals claim, which includes arguments



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aligned with the interests and position of Gramalote. In September 2017, the Council of State approved Gramalote’s request to be made an interested party to the lawsuit, but it rejected Gramalote’s request to join the Antioquia Secretary of Mines as a co-defendant in August 2019. In January 2019, the Council of State also re-affirmed that the Council of State is the competent judicial authority to hear the matter. The date for the executives who participated in 2018.first hearing is currently pending.


ANGLOGOLD ASHANTI SHARE INCENTIVE SCHEMEGHANA


•Pompora Treatment Plant Litigation: In April 2013, AngloGold Ashanti operates(Ghana) Limited (AGAG) received a share incentive scheme throughsummons from Abdul Waliyu and 152 others in which Executive Directors,the plaintiffs allege that they were or are residents of the Obuasi municipality or its suburbs and that their health has been adversely affected by emissions and/or other environmental impacts arising in connection with the current and/or historical operations of the Pompora Treatment Plant (PTP), which was decommissioned in 2000. The plaintiffs’ alleged injuries include respiratory infections, skin diseases and certain cancers. The plaintiffs subsequently did not timely file their application for directions but AGAG intends to allow some time to pass prior to applying to have the matter dismissed for want of prosecution. In February 2014, executive members of the Executive CommitteePTP (AGAG) Smoke Effect Association (PASEA), sued AGAG by themselves and on behalf of their members (undisclosed number) on grounds similar to those discussed above, as well as economic hardships resulting from the failure of their crops. This matter has been adjourned indefinitely.

•Mining and Building Contractors Limited: In October 2011, AGAG terminated Mining and Building Contractors Limited’s (MBC) underground development agreement, construction on bulkheads agreement and diamond drilling agreement at Obuasi mine. The parties reached agreement on the terms of the separation and concluded a separation agreement in November 2012. In February 2014, AGAG was served with a demand issued by MBC claiming a total of $97 million. In December 2015, the proceedings were stayed in the Ghanaian High Court pending arbitration. In February 2016, MBC submitted the matter to arbitration. The arbitration panel has been constituted and held an arbitration management meeting to address initial procedural matters in July 2019. In May 2020, the Ghana Arbitration Centre granted MBC’s request to stay the arbitral proceedings indefinitely to enable it and AGAG to explore possible settlement. On 12 April 2021, the parties executed a settlement agreement to resolve the matter at no cost to either of the parties.

•Ghana Mining Licenses Litigation: In January 2019, AGAG and AngloGold Ashanti (Iduapriem) Limited (AAIL), along with other Ghanaian mining companies, were served with writs by two members of the Ghanaian Parliament seeking to invoke the jurisdiction of the Ghanaian Supreme Court (highest court in Ghana) for a declaration that the mining companies were not entitled to carry out any exploitation of minerals otherwise allowed under their relevant mining leases unless the leases had been timely ratified by the Parliament of Ghana. In January 2019, the Ghanaian Attorney General filed its statement of case, agreeing with the position of the plaintiffs (that the mining leases required parliamentary ratification) and requesting that the Supreme Court order the mining companies to pay the Ghanaian government all revenue related to mining activities accrued during the time such mining leases were unratified. In April 2019, AGAG and AAIL, in coordination with the other mining companies, filed their statement of case. The Supreme Court has not yet set a date for the first hearing to commence the case.

GUINEA

•Government of Guinea (National Claim Commission) v. Société AngloGold Ashanti Goldfields de Guinée SA (SAG): A national claim recovery commission established by the government of Guinea has demanded that SAG pay $43 million in dividends and penalties that would allegedly have been owed to the government of Guinea for the accounting years 2004 - 2007. SAG opposes the claim. Even though both parties had originally decided to submit their dispute to an independent audit firm to be appointed by a common accord, the independent audit firm was never appointed. In December 2010, the national claim recovery commission was disbanded and the matter was turned over to the Inspector General of the Ministry of Finance of Guinea. This matter has been dormant since it was handed over to the Inspector General.

TANZANIA

•Geita Gold Mining Limited (GGM): In January 2007, Jackson Manyelo and other management groupsplaintiffs filed a suit against GGM in the Mwanza High Court alleging that they were affected by blasting activities in the Katoma area carried out by GGM and had suffered damages in the amount of TZS9.6 billion (approximately $6 million). In April 2015, the High Court issued a judgement in favour of GGM. In 2016, plaintiffs appealed to the Court of Appeal, where the matter is pending.

•Geita Gold Mining Limited (GGM) and Samax Resources Limited (Samax) v. Government of Tanzania: In July 2017, GGM and Samax filed a notice of arbitration against the government of Tanzania arising from the enactment by the government of certain legislation that purports to make a number of changes to the operating environment of Tanzania’s extractive industries, including mining. The notice of arbitration was submitted in accordance with Article 12 of the companyAgreement for the Development of a Gold Mine at Geita, Mwanza between the government of Tanzania and its subsidiaries are giveneach of GGM and Samax (the MDA), and under the 1976 Arbitration Rules of the United Nations Commission on International Trade Law (UNCITRAL). The Arbitral Tribunal has been duly constituted. Since January 2019, at the request of the parties, the arbitral proceedings have been stayed several times in order to afford the parties the opportunity to acquire shares in the company. The intention achieve an amicable resolution



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of the incentive scheme isdispute and as a result of the impact of the COVID-19 pandemic. On 7 May 2021, the parties agreed to ensurestay the arbitration proceedings for a further period of 18 months (until 7 November 2022).

•Arbitration under the United Kingdom-Tanzania Bilateral Investment Treaty (UK-Tanzania BIT):Unrelated to the arbitration proceedings under the MDA described above, in September 2017, GGM and Samax, together with Cluff Oil Limited and Cluff Mineral Exploration Limited, notified the government of Tanzania in writing that the mediumTanzanian government’s conduct amounted to long-term interestsa breach of its commitments under the UK-Tanzania BIT. This notice triggered a ‘cooling-off’ period under the UK-Tanzania BIT, pursuant to which the parties had six months to achieve an amicable resolution to their dispute. Following the expiry of the executive‘cooling off’ period in March 2018, GGM, Samax, Cluff Oil Limited and shareholdersCluff Mineral Exploration Limited are aligned, providing rewardsnow entitled to submit their dispute with the executives and wealth creation opportunitiesgovernment of Tanzania to ICSID arbitration in accordance with the shareholders whenterms of the strategic performance drivers are achieved.

Non-Executive Directors are not eligible to participate in the share incentive scheme.

Employees participate in the share incentive schemeUK-Tanzania BIT to the extent that they are granted optionsmay deem this necessary.

BRAZIL

•Public Civil Action between Mineração Serra Grande S.A. (MSG) and the Goiás State Public Prosecutor's Office (Prosecutor): In August 2019, the Prosecutor filed a public civil action against MSG in the local court of Crixás (Court) arguing that the Serra Grande tailings dam should be deactivated and decommissioned due to its size and upstream construction method. The Prosecutor requested the Court to grant an injunction ordering MSG to, inter alia, completely deactivate the tailings dam by 15 September 2021 and decommission the tailings dam, including complete removal of tailings material, by 15 September 2022. Further, the Prosecutor requested that a daily penalty of approximately $245,000 be imposed for MSG’s failure to comply with such injunction. MSG submitted its defence in September 2019 and contends that it has not violated any Brazilian laws or rightsregulations applicable to acquire shares and accept them. All options or rights which have not been exercised within 10 years from the date of grant, automatically expire.

The incentives offered by AngloGold Ashanti are reviewed periodically to ensure that they remain globally competitive, so as to attract, motivate and retain managersoperations of the highest calibre. As a result, several typesSerra Grande tailings dam. In February 2020, the Court granted an injunction in respect of incentives, each with their own issue and vesting criteria, have been granted to employees. These are collectively known as the “AngloGold Ashanti Share Incentive Scheme” or “Share Incentive Scheme”.

Although the Remuneration and Human Resources Committee has the discretion to incentivise employees through the issue of shares, only options or awards have so far been granted.


The type and vesting criteria of the options or awards granted are:

Bonus Share Plan (BSP)

The granting of awards in terms of the BSP was approved by shareholders at the Annual General Meeting held on 29 April 2005. The scheme has undergone a number of changes, eachthe requests made by the Prosecutor. In line with the legal requirements of ANM Resolution No. 13/19, the injunction ordered the deactivation of the Serra Grande tailings dam by 15 September 2021, but did not include requirements to decommission the tailings dam, or to conduct complete removal of tailings material, by 15 September 2022. MSG filed a motion for clarification in relation to certain items of the Court’s decision. In May 2020, the Court clarified that its injunction should be interpreted in line with the legal requirements of ANM Resolution No. 13/19. In June 2020, the Prosecutor presented further technical arguments in court, reiterating its request for an injunction ordering MSG to, inter alia, deactivate the tailings dam by September 2021 and to decommission the tailings dam, including complete removal of tailings material. Afterwards, MSG filed an interlocutory appeal against the preliminary injunction granted in February 2020 and a motion for further clarification. In August 2020, both MSG and the Prosecutor filed petitions informing the Court that the parties did not wish to produce oral evidence at a hearing. On 29 May 2021, the Court upheld the preliminary injunction ordering the deactivation of the Serra Grande tailings dam by 15 September 2021 and its decommissioning by 15 September 2025, both of which are consistent with the deadlines established by existing legal and regulatory requirements. On 28 June 2021, the Prosecutor appealed this decision. This appeal is currently pending before the Court of Appeals of Goiás.

•Public Civil Action between AngloGold Ashanti Córrego do Sítio Mineração SA (AGA Mineração) and the Minas Gerais State Public Prosecutor's Office (Prosecutor): In March 2020, the Prosecutor filed a public civil action against AGA Mineração in the local court of Sabará (Court) alleging a violation of Minas Gerais Law No. 23.291/19, which was adopted in February 2019. Article 12 of this law prohibits the grant of an environmental license for construction, installation, expansion or raising of a tailings dam if the “dam break” studies identify communities that are located in the self-rescue zone. In February 2020, the state of Minas Gerais approved AGA Mineração’s permit to operate the Cuiabá tailings dam following the determination by the Minas Gerais’ Attorney’s Office that Law No. 23.291/19 does not apply to tailings dams already in operation. In its lawsuit, the Prosecutor requested the Court to grant an injunction ordering the suspension of AGA Mineração’s operational permit for the Cuiabá tailings dam on the grounds that it was issued in violation of this law. During the months of March through May 2020, all parties presented their arguments in court. In June 2020, the Court rejected the Prosecutor’s request to grant an injunction. In July 2020, the Court’s decision not to grant an injunction was upheld on appeal by the Court of Appeals of Minas Gerais. Subsequently, the Court issued an order proposing a conciliation hearing between the parties, to which none of the parties objected. On 28 January 2022, the parties filed a joint petition requesting the cancellation of the conciliation hearing and the suspension of the legal proceedings in view of negotiations between the parties to explore a possible settlement.






276

DIVIDENDS

General

Dividends are proposed by and approved by the shareholders. Each award madeboard of directors of AngloGold Ashanti (the “board”), based on the company’s financial performance and compliance with applicable laws, including in respect of the BSP entitles the holder to acquire one ordinary share at “nil” cost, provided that the participant remainssolvency and liquidity test contemplated in the employSA Companies Act. Dividends are recognised when declared by the Board. AngloGold Ashanti’s dividend policy allows the Board to declare a semi-annual dividend to be based on 20 percent of the company atfree cash flow generated by the date of vesting unlessbusiness for that financial year, before taking into account growth capital expenditure, subject to applicable laws required to be complied with before a dividend may be declared by the Board. The Board may exercise its discretion on an event, such as death, retirement or redundancy occurs, which may result in a pro-rata allocation of awardsannual basis, taking into consideration the prevailing market conditions, balance sheet flexibility and an earlier vesting date.

The Executive Committee members receive an allocation of 150 percent of their cash bonus while all other participating employees receive a 120 percent matching. The vesting period runs over two years with 50 percent vesting 12 months after the date of issue and the remaining 50 percent vesting 24 months after the date of issue.

The last shares allocation under the BSP was in February 2018 in respectfuture capital commitments of the 2017 performance year duegroup.

As a company incorporated in accordance with and bound by the company laws of the Republic of South Africa with its primary listing on the Johannesburg Stock Exchange, AngloGold Ashanti is required to declare dividends in South African rands. Therefore, dividends are declared in South African rands and paid in Australian dollars, South African rands, British pounds and Ghanaian cedis. Dividends paid to registered holders of AngloGold Ashanti ADSs are paid in US dollars converted from South African rands by The Bank of New York Mellon, as Depositary, in accordance with the deposit agreement. Exchange rate fluctuations may therefore affect the value of the dividends received by registered shareholders and distributions paid by the relevant Depositary to investors holding AngloGold Ashanti securities. Moreover, fluctuations in the exchange rates of the US dollar may affect the US dollar price of the ADSs on the NYSE. For details on taxation and exchange controls applicable to holders of ordinary shares or ADSs, see “Item 10D: Exchange Controls”, “Item 10E: Taxation—South African Taxation — Taxation of dividends” and “Item 10E: Taxation—United States Taxation — Taxation of dividends”.

Dividends declared (in the ordinary course from trading and non-trading profits) to foreign shareholders are not subject to the implementation ofapproval by the new incentive scheme, Deferred Share Plan (DSP) in January 2018.

Long Term Incentive Plan (LTIP)

The granting of awardsSouth African Reserve Bank (SARB) in terms of South African foreign exchange control regulations. Dividends are freely transferable to foreign shareholders from both trading and non-trading profits earned in South Africa by publicly listed companies. Dividends in specie or special dividends may require SARB approval prior to declaration and payment to foreign shareholders.

Under South African law, the LTIP was approvedcompany may declare and pay dividends from any reserves included in total shareholder’s equity (including share capital and share premium) calculated in accordance with International Financial Reporting Standards (IFRS), subject to the solvency and liquidity test.

Withholding tax

South Africa currently imposes a Dividend Withholding Tax on Companies (dividends tax) at a rate of 20 percent on the net amount of the dividend declared and paid by a resident company, other than a Headquarter Company.

The dividends tax is generally imposed on the beneficial owner of the dividends. The dividends paid to South African shareholders may be exempt from dividend withholding tax in terms of certain domestic exemptions, or may be reduced to a lower rate under an applicable double tax treaty, if the required declarations and undertakings are provided by the beneficial owner of the dividend. In the case of dividends paid to a US holder with respect to shares, the Convention Between the Government of the United States of America and the Republic of South Africa for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income and Capital Gains, signed 17 February 1997 (the “US/SA Double Taxation Treaty”) would generally limit the dividends tax rate to five percent of the gross amount of the dividends if a corporate US holder holds directly at least 10 percent of the voting stock of AngloGold Ashanti. In all other cases, the maximum tax rate under the US/SA Double Taxation Treaty is 15 percent of the gross amount of the dividend. Different rules may apply if the beneficial owner of the dividends is a US resident who carries on business in South Africa through a permanent establishment situated in South Africa, or performs in South Africa independent personal services from a permanent establishment situated in South Africa, and the dividends are attributable to such permanent establishment.













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8B.    SIGNIFICANT CHANGES

Refer to “Item 18: Financial Statements—Note 35—Subsequent Events”.





278

ITEM 9: THE OFFER AND LISTING


9A.    OFFER AND LISTING DETAILS

The principal trading markets for AngloGold Ashanti’s ordinary shares are the New York Stock Exchange (NYSE), in the form of ADSs, under the symbol “AU” and the JSE Limited, in the form of ordinary shares, under the symbol “ANG”. Each ADS represents one ordinary share.






9B.    PLAN OF DISTRIBUTION

Not applicable.






9C.    MARKETS

NATURE OF TRADING MARKET

The principal trading markets for AngloGold Ashanti’s ordinary shares are the NYSE, in the form of ADSs, under the symbol “AU” (each representing one ordinary share) and the JSE Limited, in the form of ordinary shares, under the symbol “ANG”.

AngloGold Ashanti’s ordinary shares are also listed on the Ghana Stock Exchange, as ordinary shares under the symbol “AGA” and in the form of Ghanaian Depositary Shares or GhDSs (each representing one one-hundredth of an ordinary share) under the symbol “AAD”, and the Australian Securities Exchange, in the form of CHESS Depositary Interests (each representing one-fifth of an ordinary share) under the symbol “AGG”.






9D.    SELLING SHAREHOLDERS

Not applicable.






9E.    DILUTION

Not applicable.






9F.    EXPENSES OF THE ISSUE

Not applicable.



279

ITEM 10:    ADDITIONAL INFORMATION


10A.SHARE CAPITAL

Not applicable.






10B.MEMORANDUM OF INCORPORATION

At the last AGM held on 4 May 2021, AngloGold Ashanti did not need to seek approval from shareholders for any amendments to its Memorandum of Incorporation (MoI).

At the annual general meeting to be held on 16 May 2022, AngloGold Ashanti will seek approval from shareholders (by way of
a special resolution) to amend the MoI as follows:

1.by the deletion of the phrase “Subject to 9.4.3, this” at the Annual General Meeting held on 29 April 2005. Executive directorsbeginning of clause 1.3 and selected senior management were eligible for participation. Each award madethe replacement thereof with the word “This”;
2.by the deletion of clause 9 (Rights Attaching to Preference Shares) in respectits entirety; and
3.by the amendment of Schedule 1 (Authorised Shares) as follows:

3.1    by the deletion of paragraphs 2, 3 and 4 of Schedule 1 in their entirety; and
3.2    by the deletion of the LTIP entitled the holder to acquire one ordinary sharetable at “nil” cost. Awards granted vested in three years from the date of grant, to the extent that the set company performance targets, under which the awards were made, were met, and provided that the participant remained in the employ of the company at the date of vesting, unless an event, such as death, retirement or redundancy occurred, which may have resulted in a pro-rata allocation of awards and an earlier vesting date.

The last share allocation under the LTIP scheme was made in 2017 as cash settled. There has not been any allocation under the LTIP scheme since 2017 due to the implementation of the new incentive scheme, the Deferred Share Plan (DSP), in January 2018.

Deferred Share Plan (DSP)

On 16 May 2017, the shareholders approved the introduction of the Deferred Share Plan to replace both the BSP and LTIP with effect from 1 January 2018. The DSP is a single incentive scheme for short-term and long-term performance. Under the DSP, a portion of the award is paid in cash as a bonus and the balance is delivered as either deferred cash or deferred shares (ordinary 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, defined annually. Weightings are applied to each measure. The metrics are defined against the objectives that most strongly drive company performance and are weighted to financial outcomes, production, cost and sustainability. Each metric is weighted and has a threshold, target and stretch definition based on the company budget and the desired stretch targets for the year. Below threshold achievement results in no payment. At the end of each financial year, company and CEO’s performance are assessed by the Remuneration and Human Resources Committee (REMCO)Schedule 1 in its entirety and the Board againstreplacement thereof with the defined metricsfollowing new table:

Share capitalSouth African Rands
600,000,000 ordinary shares of R0.25 each150,000,000

The reason for these amendments is to determinecomply with the quantumprovisions of the cash portionSA Companies Act and the quantumJSE Listings Requirements and, following the recent redemption of the deferred portion as follows:

 CashSharesTotal IncentiveCashSharesTotal IncentiveCashSharesTotal Incentive
LevelThreshold AchievementOn Target AchievementMaximum Achievement
CEO50.00%100.00%150.00%100.00%200.00%300.00%150.00%300.00%450.00%
CFO40.00%87.50%127.50%80.00%175.00%255.00%120.00%262.50%382.50%
EVP/COO35.00%82.50%117.50%70.00%165.00%235.00%105.00%247.50%352.50%

CEO means Chief Executive Officer.
CFO means Chief Financial Officer.
EVP/COO means Executive Vice President/Chief Operating Officer.

One setall 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 key performance indicators (KPIs), as follows:
LevelCompany performance weightingIndividual performance weighting
CEO70.00%30.00%
CFO60.00%40.00%
EVP/COO60.00%40.00%

CEO means Chief Executive Officer.
CFO means Chief Financial Officer.
EVP/COO means Executive Vice President/Chief Operating Officer.


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. The first allocation under the DSP has been made in February 2019 in respect of the 2018 performance year. For further information about the DPS, see Exhibit 19.4.1.3.


PARTICIPATION BY EXECUTIVE DIRECTORS, EXECUTIVE MANAGEMENT AND OTHER MANAGERS IN THE ANGLOGOLD SHARE INCENTIVE SCHEME

For details of the options and rights to subscribe for ordinary shares in the company granted to, and exercised by, executive directors, executive management and other managers on an aggregate basis during the year to 31 December 2018 and subsequent to year end up to 19 March 2019, see "Item 18: Financial Statements-Note 31-Related Parties-Directors and other key management personnel-Number of options and awards granted".


PARTICIPATION BY EMPLOYEES IN THE ANGLOGOLD SHARE INCENTIVE SCHEME

For details of the options and rights to subscribe for ordinary shares in the company granted to, and exercised by, employees on an aggregate basis during the year to 31 December 2018, see "Item 18: Financial Statements-Note 10-Share-based payments".



ITEM 7: MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS

Overview

Description of AngloGold Ashanti’s share capital

AngloGold Ashanti’s share capital consists of four classes of stock:

Ordinary shares, par value 25 South African cents each (the “ordinary shares”);
A redeemable preference shares, par value 50 South African cents each (the “A preference shares”);
B redeemable preference shares, par value 1 South African cent each (the “B preference shares”); and
C redeemable preference shares of no par value (the “C preference shares”).

The authorised and issued share capital of AngloGold at 31 December 2018 is set out below:
Title of class Authorised
 Issued
Ordinary shares 600,000,000
 412,769,980
A preference shares 2,000,000
 2,000,000
B preference shares 5,000,000
 778,896
C preference shares 30,000,000
 0

All the issued ordinary shares, A redeemable preference shares and B redeemable preference shares are fully paid and are not subjectof the Company, to further calls or assessment by AngloGold Ashanti. For a discussion of rights attachingremove all references in the MoI to the ordinary shares, the A redeemable preference shares, the B redeemable preference shares and the C redeemable preference shares, see “Item 10B: Memorandumas well as all of Incorporation”.

The following are the movements in the ordinary issued share capital at 31 December:

Ordinary shares
  
Number of
Shares

 Rand
 
Number of
Shares

 Rand
 
Number of
Shares

 Rand
  2018 2017 2016
At 1 January 410,054,615
 102,513,654
 408,223,760
 102,055,940
 405,265,315
 101,316,329
Issued during the year:            
Exercise of options by participants in the AngloGold Share Incentive Scheme 2,715,365
 678,844
 1,830,855
 457,714
 2,958,445
 739,611
  412,769,980
 103,192,498
 410,054,615
 102,513,654
 408,223,760
 102,055,940

During the period 1 January 2019provisions relating to and including 19 March 2019, 1,026,316 ordinary shares were issued at an average issue price of R149.11 per share, resulting in 413,796,296 ordinary shares being in issue at 19 March 2019.

Redeemable preference shares

The A and Ball such redeemable preference shares, and thereby to remove all of which are held by Eastvaal Gold Holdings Limited, a wholly owned subsidiary of AngloGold Ashanti. The Csuch redeemable preference shares have no par value but havefrom the same rights as the B preference shares save that the C preference shares rank after the B preference shares (but prior to the A preference shares) as regards the payment of dividends, redemption proceeds and payment on winding up of the company. The company has started a process to cancel all the A,B and C redeemable preference shares.






7A.    MAJOR SHAREHOLDERS

According to information available to the directors, the following are the only shareholders or their associates holding, directly or indirectly, in excess of 5 percent of the ordinary issuedauthorised share capital of the company:Company. Prior to the above special resolution to amend the MoI being put to the shareholders for approval at the AGM to be held on 16 May 2022, AngloGold Ashanti will first seek approval from shareholders (by way of a separate special resolution) to cancel all such classes of redeemable preference shares.

Registration

AngloGold Ashanti is incorporated under the company laws of the Republic of South Africa and is registered with the Companies and Intellectual Property Commission under registration number 1944/017354/06. The SA Companies Act has abolished the requirement for specific “object and purpose” provisions to be included in a memorandum of incorporation and although the MoI is silent on the matter, the company continues to carry on as its main business, gold exploration, the mining and production of gold, the manufacturing, marketing and selling of gold products and the development of markets for gold.
AngloGold Ashanti’s MoI is available for inspection as set out in “Item 10H: Documents on Display” and a summary of the pertinent provisions, including the rights of the holders of shares in AngloGold Ashanti, are set out below.

This summary does not contain all the information pertaining to the rights of holders of AngloGold Ashanti’s ordinary shares and is qualified in its entirety by reference to the laws of South Africa and AngloGold Ashanti’s governing corporate documents. As well as being governed by the provisions of the MoI, the rights of holders of AngloGold Ashanti’s ordinary shares are governed by the JSE Listings Requirements, the SA Companies Act and the Companies Regulations, 2011, promulgated under the SA Companies Act (the “Regulations”), which include the Takeover Regulations. Further, the rights of holders of AngloGold Ashanti ADSs are governed by the Deposit Agreement between AngloGold Ashanti and The Bank of New York Mellon.See “Item 10C: Material Contracts—The Deposit Agreement”.

The SA Companies Act provides that shares will no longer have a par or nominal value and hence no new shares having a nominal or par value may be authorised. However, any shares which have a nominal or par value authorised prior to 1 May 2011 (the effective date of the SA Companies Act) continue to have that nominal or par value and can be issued as such for so long as



280

Ordinary shares held at 31 December 2018 31 December 2017 31 December 2016
Shareholder* 
Number of
Shares

 
Percent
Voting
Rights
 
Number of
Shares

 
Percent
Voting
Rights
 
Number of
Shares

 
Percent
Voting
Rights
Van Eck Global 52,402,004
 12.70     24,485,374
 6.00
BlackRock Inc. 32,926,713
 7.98 38,926,159
 9.49 42,966,540
 10.53
Public Investment Corp. of South Africa 25,395,823
 6.15 25,808,607
 6.29 25,580,542
 6.27
there are par value shares in the company’s authorised share capital. Should the company wish, it may also elect to convert its authorised par value shares to shares of no par value, subject to the relevant process and approvals contemplated in the SA Companies Act.


* SharesDirectors

The management and control of any business of AngloGold Ashanti is vested in its board of directors (board). The authority of the board to manage and direct the business and affairs of the company is not limited, restricted or qualified by the MoI.

Appointment and Retirement of Directors

The shareholders of the company have the power to elect the directors, and shareholders are also entitled to elect one or more alternate directors, in accordance with the provisions of the MoI and the SA Companies Act.

The board may not necessarily reflectappoint any person who satisfies the beneficial shareholder.requirements for election as a director to fill any vacancy and serve as a director on a temporary basis until the vacancy is filled by election by shareholders entitled to exercise voting rights in such an election.


The MoI authorises the chairman of the board, subject to the written approval of the majority of the directors, to appoint any person as a director provided that such appointment is approved by shareholders at the next shareholders’ meeting or annual general meeting.

At 31 December 2018,every annual general meeting one-third of the directors will retire by rotation, or if their number is not a totalmultiple of 183,174,711three, then the number nearest to but not less than one third. The directors to retire at every annual general meeting will be those who have been the longest in office since their last election. Directors retiring by rotation are eligible for re-election. Directors who voluntarily decide not to make themselves available for re-election may be counted towards the one-third of directors required to retire at the relevant annual general meeting.

The MoI contains no provision for directors to hold qualification shares. The MoI does not impose an age limit for the retirement of directors.

Remuneration

In accordance with the SA Companies Act, the MoI provides that the directors are entitled to such remuneration for their services as directors as AngloGold Ashanti’s shareholders may approve by special resolution in a general meeting or annual general meeting within the previous two years of the date of payment of such remuneration. If a director is employed in any other capacity, or holds an executive office or performs services that, in the opinion of the board, are outside the scope of the ordinary duties of a director, he or she may be paid such additional remuneration as a disinterested quorum of directors may reasonably determine.

Interests of Directors and Restriction on Voting

Although the interests of directors are not dealt with in the MoI, the provisions of the SA Companies Act in this regard are unalterable and will automatically apply, together with the applicable common law rules. Under the SA Companies Act, the procedures to deal with the personal financial interests of directors also apply to prescribed officers (i.e., persons who exercise general executive control over and management of the whole, or a significant portion, of the business and activities of the company or regularly participate to a material degree in the exercise of general executive control over and management of the whole, or a significant portion, of the business and activities of the company, irrespective of the office held or function performed by such persons) and any person who is a member of a committee of the board of the company, whether or not that person is also a member of the company’s board. The SA Companies Act provides that a director or such other person with a personal financial interest must disclose this to the board and cannot vote on or, after having made the disclosures to the meeting as prescribed by the SA Companies Act, remain present during the meeting when the matter in which he has interest is being discussed but will be counted as present for the purposes of a quorum (but is not to be regarded as being present at the meeting for the purposes of determining whether a resolution has sufficient support to be adopted).

Share Rights, Preferences and Restrictions

Allotment and Issue of Ordinary Shares

Subject to the JSE Listings Requirements, the SA Companies Act and/or with approval of shareholders in a general meeting, unissued ordinary shares (or 44 percentmust be offered to existing ordinary shareholders, pro rata to their ordinary shareholdings, unless they are issued for the acquisition of issuedassets. The shareholders in a general meeting may authorise the board to issue any unissued ordinary share capital) were heldshares.





281

Dividends, Rights and Distributions

The ordinary shares participate fully in all dividends, other distributions and entitlements as and when declared by AngloGold Ashanti in respect of fully paid ordinary shares. Under South African law, AngloGold Ashanti may declare and pay distributions (as defined in the SA Companies Act, which includes dividends), subject to the company satisfying the solvency and liquidity test as set out in section 4 of the SA Companies Act and the board passing a resolution acknowledging that such test has been applied and has reasonably concluded that the company would satisfy such test immediately after completing the distribution. Dividends are payable to shareholders registered at a record date after the date of declaration of the dividend.

As a company incorporated and registered in the Republic of South Africa with its primary listing on the Johannesburg Stock Exchange, AngloGold Ashanti is required to declare dividends in South African rands. Dividends are paid in South African rands, Australian dollars, Ghanaian cedis and British pounds. Registered holders of AngloGold Ashanti ADSs are paid dividends in US dollars by The Bank of New York Mellon as Depositary, forin accordance with the company’s American Depositary Receipt programme. Each American Depositary Share (ADS)Deposit Agreement. See “Item 10C: Material Contracts—The Deposit Agreement”.

A holder of the B redeemable preference shares is entitled to the right to an annual dividend amounting to the lesser of 5 percent of the issue price of the B redeemable preference shares or an amount equivalent to one ordinary share. At 31 December 2018, the number of persons who were registered holders of ADSs was reported at 2,302. AngloGold Ashanti is aware that many ADSs are held of record by brokers and other nominees, and accordingly the above numbers are not necessarily representativebalance of the actual numberafter tax profits arising from income derived from mining the Moab Lease Area as determined by the directors in each financial year. The annual dividend shall be a first charge on any profit available for distribution from the Moab Lease Area but shall not be payable from any other profits of persons who are beneficial holdersthe Company.

A holder of ADSsthe C redeemable preference shares is entitled to the right to an annual dividend amounting to the lesser of 5 percent of the issue price of the C redeemable preference shares or an amount equivalent to the numberbalance of ADSs beneficially heldthe after tax profits arising from income derived from mining the Moab Lease Area as determined by these persons.the directors in each financial year. The annual dividend shall be a first charge on any profit available for distribution from the Moab Lease Area ranking after and following payment of any annual dividend payable to a holder of the B redeemable preference shares, but shall not be payable from any other profits of the Company.


All shareholdersA holder of the A redeemable preference shares is entitled to an annual dividend equivalent to the balance of the after-tax profits from income derived from mining the Moab Lease Area as determined by AngloGold Ashanti’s directors in each financial year, only once the annual dividend on the B redeemable preference shares and the C redeemable preference shares have been paid in full.

Although not stated in the same voting rights.

As at 31 December 2018, there were 11,342 holders on recordMoI, but subject to the JSE Listings Requirements and the SA Companies Act, any dividend may be paid and satisfied, either wholly or in part, by the distribution of specific assets, or in paid-up securities of AngloGold Ashanti or of any other company, or in cash, or in any one or more of such ways as the directors may at the time of declaring the dividend determine and direct.

All dividends remaining unclaimed for a period of not less than three years from the date on which they became payable, may, by a resolution of the directors, become forfeited for the benefit of the company.

Voting Rights

Each ordinary shares. Of these holders 461 had registered addressesshare confers the right to vote at all general meetings. Each holder present in person or by proxy or, in the United States andcase of a corporate entity, represented, has one vote on a show of hands. If a poll is held, a totalholders present or any duly appointed proxy will have one vote for each ordinary share held. A holder of 48,642,690 ordinary shares 11.78 percentis entitled to appoint a proxy to attend, speak and vote at any meeting on his or her behalf and the proxy need not be a shareholder. Holders of the total outstanding ordinary shares. In addition, certain accounts on record with registered addresses outside the United States, includingADSs are not entitled to vote in person at meetings, but may vote by way of proxy through The Bank of New York Mellon as the ADS issuer. Holders of Australian Chess Depositary Interests (CDIs) and Ghanaian Depositary Shares (GhDSs) are not entitled to vote in person or by proxy at meetings, but may vote by instructing Chess Depository Nominees and NTHC Limited as Depositary, respectively, how to vote their shares.

There are no limitations on the right of non-South African registered shareholders to hold or exercise voting rights attaching to any of the ordinary shares.

The A redeemable preference shares have similar voting rights to those of ordinary shares. The B and C redeemable preference shares have voting rights only in the event that a dividend on this class of share has not been paid and remains unpaid for six months or more, or in connection with resolutions directly affecting these redeemable preference shares or in limited circumstances affecting AngloGold Ashanti as a whole, such as disposal of substantially all of the company’s assets, winding up AngloGold Ashanti or reducing the company’s share capital.

At any meeting of AngloGold Ashanti at which the holders of the ordinary shares, A redeemable preference shares, B redeemable preference shares and C redeemable preference shares are present and entitled to vote on a poll, each holder of the A redeemable preference shares shall be entitled to 50 votes for every A redeemable preference share held, each holder of the ordinary shares is entitled to 50 votes for every ordinary share held and each holder of the B redeemable preference shares



282

and the C redeemable preference shares is entitled to one vote for every B redeemable preference share and C redeemable preference share held respectively.

The MoI specifies that the rights relating to any class of shares may be modified or abrogated with the sanction of a resolution passed as if it were a special resolution of the holders of shares in that class at a separate general meeting. The MoI also specifies that any holders of the A, B and C redeemable preference shares may provide written consents to the modification of their rights.

Increase and Reduction of Capital

The company is authorised to issue the shares specified in the MoI and all such shares are required to be issued as fully paid up in accordance with the applicable approval and/or other requirements of the SA Companies Act and the JSE Listings Requirements.

The directors are authorised, subject to any requirements of the JSE Listings Requirements, the SA Companies Act, the Regulations and the MoI, to increase or decrease the number of authorised shares of any class of shares, reclassify any shares that have been authorised but not issued, classify any unclassified shares that have been authorised but not issued, and determine the preferences, rights, limitations or other terms of any class of authorised shares or amend any preferences, rights, limitations or other terms as determined. However, such capital amendments require an amendment to be made to the MoI. The SA Companies Act and the JSE Listings Requirements currently do not allow the MoI to be amended to give effect to such capital amendments without the approval of ordinary shareholders by special resolution.

Rights Upon Liquidation

In the event of the winding up of AngloGold Ashanti:
•The A redeemable preference shares shall confer the right, on a winding-up of the company, in priority to any payment in respect of the ordinary shares in the capital of the company then issued, but after any payment in respect of the B redeemable preference shares and the C redeemable preference shares in the capital of the company then issued, to receive only so much of the net proceeds from the disposal of the assets relating to the Moab Lease Area as is then available for distribution;
•The B redeemable preference shares shall confer the right, on a winding-up of the company in priority to any payment in respect of the ordinary shares, the A redeemable preference shares and the C redeemable preference shares then in issue, to receive only so much of the net proceeds from the disposal of the assets relating to the Moab Lease Area as is available for distribution but not exceeding a return per B preference share of the capital paid-up thereon and any share premium paid on the issue of the B redeemable preference shares outstanding at that time;
•The C redeemable preference shares shall confer the right, on a winding-up of the company, ranking after and following payment of the holders of the B redeemable preference shares, but in priority to any payment in respect of the ordinary shares and the A redeemable preference shares in the capital of the company then issued, to receive only so much of the net proceeds from the disposal of the assets relating to the Moab Lease Area as is available for distribution but not exceeding a return per C preference share of the capital paid-up on the issue of the C redeemable preference shares outstanding at that time;
•The A, B and C redeemable preference shares shall not be entitled to any participation, on a winding-up, in any of the surplus funds of the company in any other manner arising; and
•The ordinary shares confer the right to participate equally in any surplus arising from the liquidation of all other assets of AngloGold Ashanti.

Redemption Provisions

The A redeemable preference shares may be redeemed for their nominal value, plus a premium per share of an amount equal to the net proceeds available from the disposal of the assets relating to the Moab Lease Area, after redemption in full of the B redeemable preference shares and the C redeemable preference shares, and payment of the nominal value of the A redeemable preference shares, divided by 2,000,000.

The B redeemable preference shares may be redeemed for their nominal value, plus a premium of an amount equal to 175,096,390 divided by that number of B redeemable preference shares in issue, but limited to an amount equal to the net proceeds available from the disposal of the assets relating to the Moab Lease Area after payment of the nominal value of the B redeemable preference shares.

The C redeemable preference shares may be redeemed for their aggregate issue price of the said C redeemable preference shares, but shall be limited to an amount equal to the net proceeds available from the disposal of the assets relating to the Moab Lease Area and only after redemption in full of the B redeemable preference shares.





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Shareholders’ Meetings

The directors may convene meetings of AngloGold Ashanti shareholders. Subject to the provisions of the SA Companies Act, the shareholders may requisition for the convening of a meeting.

Notice of each AngloGold Ashanti annual general meeting and general meeting of AngloGold Ashanti shareholders must be delivered at least 15 business days before that shareholders’ meeting is to begin. In accordance with the SA Companies Act, business days are calculated by excluding the first day, including the last day and excluding Saturdays, Sundays and any public holiday in the Republic of South Africa. In terms of the MoI, all shareholders are entitled to attend shareholders’ meetings at which they are entitled to vote.

In the case of a class meeting of the A, B or C redeemable preference shares, the sole holder of such shares shall constitute a quorum. Save as aforesaid, the quorum of a shareholders’ meeting is sufficient persons present, in person or by proxy, at the meeting to exercise, in aggregate, at least 25 percent of all of the voting rights that are entitled to be exercised in respect of at least one matter to be decided at the meeting and a quorum must remain present for the continuation of that shareholders meeting, provided that at least three shareholders must be present and remain at the meeting. Such quorum requirement also applies for the consideration of any matter to be decided at the meeting. If the meeting is not quorate within 30 minutes after the appointed time for the meeting to begin (or such longer or shorter period as the chairperson may determine), it will be postponed, without motion, vote or further notice, for 1 week and the shareholders present, in person or by proxy, at the postponed meeting will constitute a quorum. For an ordinary resolution to be approved by shareholders, it must be supported by more than 50 percent of the voting rights exercised on the resolution. For a special resolution to be approved by shareholders, it must be supported by at least 75 percent of the voting rights exercised on the resolution.

Disclosure of Interest in Shares

Under South African law, a person must notify AngloGold Ashanti within three business days after that person (i) acquires a beneficial interest in sufficient securities of a class of securities issued by AngloGold Ashanti such that, as a result of the acquisition, the person holds a beneficial interest in securities amounting to five percent, ten percent, fifteen percent or any further whole multiple of five percent of the issued securities of that class or (ii) disposes of any beneficial interest in sufficient securities of a class of securities issued by AngloGold Ashanti such that, as a result of the disposition, the person no longer holds a beneficial interest in securities amounting to a particular multiple of five percent of issued securities of that class. When AngloGold Ashanti has received the notice referred to above it must file a copy with the Takeover Regulation Panel and report the information to holders of the relevant class of securities unless the notice concerned is a disposition of less than one percent of the class of securities.

If the securities of AngloGold Ashanti are registered in the name of a person who is not the holder of the beneficial interest in all of the securities in AngloGold Ashanti held by that person, that registered holder of the securities must disclose the identity of the person on whose behalf that security is held and the identity of each person with a beneficial interest in securities so held, the number and the class of securities held for each such person with a beneficial interest and the extent of each such beneficial interest. This information must be disclosed in writing to the company within five business days after the end of every month during which a change has occurred in the information or more promptly or frequently to the extent so provided by the requirements of a Central Securities Depository. A company that knows or has reasonable cause to believe that any of its securities are held by one person for the beneficial interest of another may by notice in writing require either of those persons to confirm or deny that fact, provide particulars of the extent of the beneficial interest held during the three years preceding the date of the notice and disclose the identity of each person with a beneficial interest in the securities held by that person, which information must be provided within 10 business days of the receipt of the notice.

AngloGold Ashanti is obligated to establish and maintain a register of the disclosures described above and to publish in its annual financial statements a list of the persons who hold beneficial interests equal to or in excess of five percent of the total number of ordinary shares issued by AngloGold Ashanti together with the extent of those beneficial interests.

Rights of Minority Shareholders

Majority shareholders of South African companies have no fiduciary obligations under South African common law to minority shareholders. However, under the SA Companies Act, a shareholder or director may, under certain circumstances, seek relief from a court if he has been unfairly prejudiced by any act or omission of the company or a related person, by the conduct of the business of the company or a related person in a particular manner, the exercise of the powers of the directors of the company or a related person in a particular manner. There may also be personal and derivative actions available to a shareholder of a company.

Pursuant to the SA Companies Act, a shareholder may petition a South African court for relief from the actions or omissions or, business conduct of the company or the actions of the company’s directors or officers that is oppressive or unfairly prejudicial to, or unfairly disregards the interest of the shareholder. In addition, a shareholder who voted against a resolution to amend the company’s MoI, or to approve a fundamental transaction, (and complied with other requirements set out in the SA Companies



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Act) may exercise its appraisal right to demand that the company pay to it the fair value for all the shares of the company held by that shareholder.

Description of ADSs

The Bank of New York Mellon issues AngloGold Ashanti’s American Depositary Shares, or ADSs. Please see “Item 10C: Material Contracts—Description of AngloGold Ashanti ADSs”.



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10C.MATERIAL CONTRACTS

Multi-currency Revolving Credit Facility

General

On 23 October 2018, AngloGold Ashanti Holdings plc (AGAH) and AngloGold Ashanti Australia Limited, as borrowers, entered into a five-year unsecured multi-currency syndicated revolving credit facility of $1.4 billion (the $1.4 billion multi-currency RCF) with The Bank of Nova Scotia, as facility agent, and certain financial institutions party thereto, as lenders. The loan consists of (i) a US dollar based facility (base currency) and (ii) an Australian dollar based facility capped at A$500 million which will be used to fund the working capital and development costs associated with the group’s mining operations within Australia (without eroding the group’s headroom under its other facilities and exposing the group to foreign exchange gains/losses each quarter). As of 23 March 2022, the equivalent of $34 million was drawn under the AUD portion of the $1.4billion multi-currency RCF.

Guarantees

The $1.4 billion multi-currency RCF is guaranteed by AGAH and AngloGold Ashanti Australia Limited. The guarantees constitute unconditional obligations of the guarantors and rank at least pari passu with all other future unsecured obligations of the guarantors, except for obligations mandatorily preferred by law.

Security

Save as set out under the heading “—Guarantees” above, the obligations under the $1.4 billion multi-currency RCF are unsecured.

Amount and repayment of borrowings

Loans under the $1.4 billion multi-currency RCF must be for a minimum of $10 million, if the currency selected is the base currency (US dollar), or a minimum of A$10 million (or for the balance of the undrawn total commitments at the time of the drawing), if the currency selected is Australian dollars. No more than 14 loans may be outstanding at any time. Each loan must be repaid on the maturity date in the same currency as the maturing loan. All loans must be repaid in full on the final maturity date. The $1.4 billion multi-currency RCF matures in October 2023.

Interest rates and fees

The annual interest rate on loans drawn under the $1.4 billion multi-currency RCF is calculated based on LIBOR, plus an initial margin of 1.45 percent per annum that varies between 0.95 percent and 2.15 percent per annum depending on the long-term debt rating of AGAH, and in relation to any Loan in Australian dollars, BBSY, and certain mandatory costs. The applicable margin is subject to a ratings grid. In this regard, the interest margin will reduce should the group’s credit rating improve from its current BB+/Baa3 status and should increase if its credit rating worsens. Interest on loans is payable on the last day of the loan’s interest period and, if the interest period exceeds six months, on the dates falling at six-monthly intervals after the day the loan was made.

The borrowers under the $1.4 billion multi-currency RCF are required to pay a commitment fee in the base currency equal to 35 percent of the then applicable margin per annum on the undrawn and uncancelled amount of each lender’s commitment during the commitment period. The borrowers are also required to pay a utilisation fee of 0.10 percent per annum (if the aggregate outstanding loans are less than one third of the total commitments then in effect), 0.20 percent per annum (if the aggregate outstanding loans are equal to or greater than one third but less than two-thirds of the total commitments then in effect) or 0.40 percent per annum (if the aggregate outstanding loans are equal to or greater than two-thirds of the total commitments then in effect).

Financial covenant

The $1.4 billion multi-currency RCF includes a financial maintenance covenant which requires that the ratio of Total Net Financial Indebtedness to EBITDA (as such terms are defined in the revolving credit agreement) does not at any time exceed 3.50 to 1.00, with the proviso that this ratio may exceed 3.50 to 1.00 once during the life of the revolving credit agreement, for one six-month period subject to certain criteria. Refer to “Item 18: Financial Statements—Note 34—Capital Management” for the formulae used in the revolving credit agreement to test compliance with the covenants.

Change of control

If a lender so requires, the commitment of such lender under the $1.4 billion multi-currency RCF will be cancelled and the participation of such lender in all outstanding loans, together with accrued interest and all other amounts accrued, will become immediately due and payable in case any person or group of persons acting in concert becomes (directly or indirectly) the beneficial owner of more than 50 percent of the issued share capital of AngloGold Ashanti Limited.




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Undertakings

The $1.4 billion multi-currency RCF contains a negative pledge covenant, including restrictions on the granting of security, a change of business of AngloGold Ashanti Limited and its subsidiaries, acquisitions or participations in joint ventures and mergers and disposals.

The $1.4 billion multi-currency RCF also contains, among other things, the following affirmative covenants: mandatory periodic reporting of financial and other information, notice upon the occurrence of events of default and certain other events, compliance with environmental laws and other obligations requiring each of AGAH and its subsidiaries to maintain its corporate existence and qualifications to conduct its business as currently conducted in all applicable jurisdictions and to maintain insurance coverage. The covenants are subject to exceptions and materiality thresholds.

Events of default

The $1.4 billion multi-currency RCF contains events of default including failure to make payment of amounts due, breach of obligations under the loan documents, defaults under other agreements evidencing indebtedness, certain bankruptcy events and a cessation of business, failure of any of the borrowers to be a wholly owned subsidiary of AGAH and the occurrence of a material adverse change in the business and financial condition of the borrowers and guarantors under the revolving credit agreement, or AngloGold Ashanti and its subsidiaries as a whole, or in the ability of the borrowers and guarantors to perform their payment obligations under the loan documents. The occurrence of an event of default could result in the immediate and automatic cancellation of all commitments and the acceleration of all payment obligations under the revolving credit agreement and the other loan documents.

The above description is only a summary of certain provisions of the revolving credit agreement and is qualified in its entirety by reference to the provisions of the revolving credit agreement, a copy of which is attached hereto as Exhibit 19.4.4.1 and is incorporated herein by reference.

Bridge Facility

On 28 April 2020, AngloGold Ashanti Holdings plc (AGAH), as borrower, entered into a US$1.0 billion unsecured bridge facility agreement with a syndicate of lenders, guaranteed by AngloGold Ashanti Australia Limited. The bridge facility was for a term of 364 days which could be extended for a further six months with consent of the lenders. Amounts outstanding under the bridge facility bore interest at LIBOR plus a margin that increased over time. The bridge facility contained certain restrictive and affirmative covenants, events of default as well as a financial maintenance covenant. The lenders under the bridge facility were required to fund only if our $1.4 billion multi-currency RCF was drawn by at least $1.39 billion. The bridge facility agreement also contained a mandatory prepayment and cancellation clause. In particular, commitments under the bridge facility were automatically cancelled upon, among other matters, the incurrence of certain indebtedness (including the offering of the 2020 Notes as described below) and the consummation of certain disposals (including, for example, the disposal of our South African operations). The bridge facility, which remained undrawn, was cancelled on 1 October 2020.

The above description is only a summary of certain provisions of the bridge facility agreement and is qualified in its entirety by reference to the provisions of the cancelled bridge facility agreement.

Notes

Each of the series of notes described below were issued under the indenture, dated as of 28 April 2010, among AngloGold Ashanti Holdings plc (AGAH), as issuer, AngloGold Ashanti Limited, as guarantor, and The Bank of New York Mellon, as trustee (the Indenture). The below descriptions are only a summary of certain provisions of those series of notes and are qualified in their entirety by reference to the provisions of the Indenture and such relevant series of notes, a copy of each is attached hereto as Exhibits 19.2.1, 19.2.2, 19.2.3, 19.2.4 and 19.2.5 and is incorporated herein by reference.

2021 Notes

On 22 October 2021, AGAH issued $750 million 3.375 percent Notes due 2028 (the “2021 Notes”). The interest on the 2021 Notes is payable semi-annually on 1 May and 1 November of each year, commencing on 1 May 2022. AGAH may on any one or more occasions redeem all or part of the 2021 Notes, at a redemption price equal to the greater of (1) 100 percent of the principal amount of the 2021 Notes to be redeemed and (2) the sum of the present values of the remaining scheduled payments of principal and interest on the 2021 Notes (excluding any portion of such payments of interest accrued or unpaid as of the date of redemption) discounted to the redemption date on a semiannual basis (assuming a 360-day year consisting of twelve 30-day months) at the treasury rate, plus 30 basis points, plus accrued and unpaid interest, if any, to the date of redemption. AGAH has agreed to pay certain additional amounts in respect of any withholdings or deductions for certain types of taxes in certain jurisdictions on payments to holders of the 2021 Notes. The 2021 Notes are unsecured and unsubordinated and are fully and unconditionally guaranteed by AngloGold Ashanti Limited.




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AGAH has agreed to observe certain covenants with respect to the 2021 Notes restricting, subject to certain limitations, the ability of AngloGold Ashanti Limited and AGAH to amalgamate, reconstruct, consolidate or merge with another company or other legal entity, and the ability of AngloGold Ashanti Limited and its restricted subsidiaries to pledge their assets to secure certain borrowings, create or incur liens on certain of their property or to engage in sale and leaseback transactions. In case of a change of control of the guarantor and a downgrade, within a specified period, of the 2021 Notes by three rating agencies, holders of the 2021 Notes have the right to require the issuer to repurchase all or any part of their 2021 Notes in cash for a value equal to 101 percent of the aggregate principal amount of 2021 Notes repurchased, plus accrued and unpaid interest, if any, on the 2021 Notes repurchased to the date of repurchase.

The offering of the 2021 Notes was registered under the Securities Act. The 2021 Notes were listed on the New York Stock Exchange.

2020 Notes

On 1 October 2020, AGAH issued $700 million 3.750 percent Notes due 2030 (the 2020 Notes). The interest on the 2020 Notes is payable semi-annually on 1 April and 1 October of each year, commencing on 1 April 2021. AGAH may on any one or more occasions redeem all or part of the 2020 Notes, at a redemption price equal to the greater of (1) 100 percent of the principal amount of the 2020 Notes to be redeemed and (2) the sum of the present values of the remaining scheduled payments of principal and interest on the 2020 Notes (excluding any portion of such payments of interest accrued or unpaid as of the date of redemption) discounted to the redemption date on a semiannual basis (assuming a 360-day year consisting of twelve 30-day months) at the treasury rate, plus 50 basis points, plus accrued and unpaid interest, if any, to the date of redemption. AGAH has agreed to pay certain additional amounts in respect of any withholdings or deductions for certain types of taxes in certain jurisdictions on payments to holders of the 2020 Notes. The 2020 Notes are unsecured and unsubordinated and are fully and unconditionally guaranteed by AngloGold Ashanti Limited.

AGAH has agreed to observe certain covenants with respect to the 2020 Notes restricting, subject to certain limitations, the ability of AngloGold Ashanti Limited and AGAH to amalgamate, reconstruct, consolidate or merge with another company or other legal entity, and the ability of AngloGold Ashanti Limited and its restricted subsidiaries to pledge their assets to secure certain borrowings, create or incur liens on certain of their property or to engage in sale and leaseback transactions. In case of a change of control of the guarantor and a downgrade, within a specified period, of the 2020 Notes by three rating agencies, holders of the 2020 Notes have the right to require the issuer to repurchase all or any part of their 2020 Notes in cash for a value equal to 101 percent of the aggregate principal amount of 2020 Notes repurchased, plus accrued and unpaid interest, if any, on the 2020 Notes repurchased to the date of repurchase.

The offering of the 2020 Notes was registered under the Securities Act. The 2020 Notes were listed on the New York Stock Exchange.

2012 Notes

On 30 July 2012, AGAH issued $750 million 5.125 percent Notes due 2022 (the 2012 Notes). The interest on the 2012 Notes was payable semi-annually on 1 February and 1 August of each year, commencing on 1 February, 2013. AGAH was permitted on any one or more occasions to redeem all or part of the 2012 Notes, at a redemption price equal to the greater of (1) 100 percent of the principal amount of the 2012 Notes to be redeemed and (2) the sum of the present values of the remaining scheduled payments of principal and interest on the 2012 Notes (excluding any portion of such payments of interest accrued or unpaid as of the date of redemption) discounted to the redemption date on a semiannual basis (assuming a 360-day year consisting of twelve 30-day months) at the treasury rate, plus 50 basis points, plus accrued and unpaid interest, if any, to the date of redemption. AGAH had agreed to pay certain additional amounts in respect of any withholdings or deductions for certain types of taxes in certain jurisdictions on payments to holders of the 2012 Notes. The 2012 Notes were unsecured and unsubordinated and were fully and unconditionally guaranteed by AngloGold Ashanti Limited.

AGAH had agreed to observe certain covenants with respect to the 2012 Notes restricting, subject to certain limitations, the ability of AngloGold Ashanti Limited and AGAH to amalgamate, reconstruct, consolidate or merge with another company or other legal entity, and the ability of AngloGold Ashanti Limited and its restricted subsidiaries to pledge their assets to secure certain borrowings, create or incur liens on certain of their property or to engage in sale and leaseback transactions. In case of a change of control of the guarantor and a downgrade, within a specified period, of the 2012 Notes below an investment grade rating by two rating agencies, holders of the 2012 Notes had the right to require the issuer to repurchase all or any part of their 2012 Notes in cash for a value equal to 101 percent of the aggregate principal amount of 2012 Notes repurchased, plus accrued and unpaid interest, if any, on the 2012 Notes repurchased to the date of purchase.

The offering of the 2012 Notes was registered under the Securities Act. The 2012 Notes were listed on the New York Stock Exchange.

The 2012 notes were redeemed in October and November 2021 and are no longer outstanding.





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2010 Notes

On 28 April 2010, AGAH issued $700 million 5.375 percent Notes due 2020 and $300 million 6.500 percent Notes due 2040 (together, the 2010 Notes). The interest on the 2010 Notes is payable semi-annually on 15 April and 15 October of each year, commencing on 15 October 2010. AGAH may on any one or more occasions redeem all or part of the 2010 Notes, at a redemption price equal to the greater of (1) 100 percent of the principal amount of the 2010 Notes to be redeemed and (2) the sum of the present values of the remaining scheduled payments of principal and interest on the 2010 Notes (excluding any portion of such payments of interest accrued or unpaid as of the date of redemption) discounted to the redemption date on a semiannual basis (assuming a 360-day year consisting of twelve 30-day months) at the treasury rate, plus 25 basis points with respect to the 2010 Notes maturing in 2020 and 30 basis points with respect to the 2010 Notes maturing in 2040, plus accrued and unpaid interest, if any, to the date of redemption. AGAH has agreed to pay certain additional amounts in respect of any withholdings or deductions for certain types of taxes in certain jurisdictions on payments to holders of the 2010 Notes. The 2010 Notes are unsecured and unsubordinated and are fully and unconditionally guaranteed by AngloGold Ashanti Limited.

AGAH has agreed to observe certain covenants with respect to the 2010 Notes restricting, subject to certain limitations, the ability of AngloGold Ashanti Limited and AGAH to amalgamate, reconstruct, consolidate or merge with another company or other legal entity, and the ability of AngloGold Ashanti Limited and its restricted subsidiaries to pledge their assets to secure certain borrowings, create or incur liens on certain of their property or to engage in sale and leaseback transactions. In case of a change of control of the guarantor and a downgrade, within a specified period, of a series of 2010 Notes below an investment grade rating by two rating agencies, holders of the 2010 Notes have the right to require the issuer to repurchase all or any part of their 2010 Notes in cash for a value equal to 101 percent of the aggregate principal amount of 2010 Notes repurchased, plus accrued and unpaid interest, if any, on the 2010 Notes repurchased to the date of purchase.

The offering of the 2010 Notes was registered under the Securities Act. The 2010 Notes were listed on the New York Stock Exchange.

The $700 million 5.375 percent Notes due 2020 were repaid at maturity on 15 April 2020 and are no longer outstanding.

For further information, see Item 18: Financial Statements—Note 24—Borrowings”,“Item 5B: Liquidity and Capital Resources” and “Item 19: Exhibits to Form 20-F”.

Description of AngloGold Ashanti ADSs

The Bank of New York Mellon issues AngloGold Ashanti’s American Depositary Shares, or ADSs. Each ADS represents the ownership interest of one ordinary share of AngloGold Ashanti.

The Deposit Agreement

This section provides a summary description of AngloGold Ashanti’s ADSs.

AngloGold Ashanti has entered into an Amended and Restated Deposit Agreement dated 3 June 2008 with The Bank of New York Mellon as Depositary and the owners and beneficial owners of American Depositary Receipts (Deposit Agreement).

The following is a summary of the material provisions of the Deposit Agreement. For more complete information, read the entire Deposit Agreement and the Form of American Depositary Receipt, which AngloGold Ashanti has filed with the SEC as an exhibit to AngloGold Ashanti’s registration statements on Form F-6 (Registration Nos. 333-133049 and 333-159248) on 27 May 2008 and 14 May 2009, respectively. A copy thereof is also attached hereto as Exhibit 19.2.6 and is incorporated herein by reference. See “Item 10H: Documents on Display”. Copies of the Deposit Agreement are also available for inspection at the Corporate Trust Office of The Bank of New York Mellon currently located at 240 Greenwich Street, New York, New York 10286.

Description of the ADSs

The Bank of New York Mellon, as Depositary, registers and delivers ADSs. Each ADS represents one ordinary share (or a right to receive one share) deposited with Standard Bank of South Africa Limited, FirstRand Bank Limited or HSBC Bank Australia Limited, each as a custodian for The Bank of New York Mellon, and all of which are referred to collectively as the “Custodian”. Each ADS also represents any other securities, cash or other property which may be held by The Bank of New York Mellon. The Bank of New York Mellon’s Corporate Trust Office at which the ADSs are administered is located at 240 Greenwich Street, New York, New York 10286. The Bank of New York Mellon’s principal executive office is also located at 240 Greenwich Street, New York, New York 10286.

ADSs may be held either (A) directly (i) by having an American Depositary Receipt, also referred to as an ADR, which is a certificate evidencing a specific number of ADSs, registered in the holder’s name, or (ii) by having ADSs registered in a holder’s name in the Direct Registration System, or (B) indirectly by holding a security entitlement in ADSs through a broker or other financial institution. If ADSs are held directly, such holders are ADS holders. This description applies to AngloGold Ashanti’s ADS holders. If ADSs are held indirectly, such holders must rely on the procedures of their broker or other financial institution to assert



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the rights of ADS registered holders described in this section. Such holders should consult with their broker or financial institution to find out what those procedures are.

The Direct Registration System, or DRS, is a system administered by DTC pursuant to which the Depositary may register the ownership of uncertificated ADSs, which ownership will be evidenced by periodic statements sent by the Depositary to the registered holders of uncertificated ADSs.

AngloGold Ashanti does not treat ADS holders as its shareholders and ADS holders do not have shareholder rights. South African law governs shareholder rights. The Bank of New York Mellon is the holder of the shares underlying the ADSs. Registered holders of ADSs have ADS holder rights. The Deposit Agreement sets out ADS holder rights as well as the rights and obligations of The Bank of New York Mellon. New York law governs the Deposit Agreement and the ADSs.

Dividends and Other Distributions

The Bank of New York Mellon has agreed to pay to holders of ADSs the cash dividends or other distributions it or a Custodian receives on AngloGold Ashanti ordinary shares or other deposited securities after deducting any fees and expenses and any applicable withholding taxes. Holders of ADSs will receive these distributions in proportion to the number of AngloGold Ashanti’s ordinary shares that their ADSs represent.

Cash

The Bank of New York Mellon will convert any cash dividend or other cash distribution (in South African rands) that AngloGold Ashanti pays on ordinary shares into US dollars (unless AngloGold Ashanti pays such dividend or cash distribution in US dollars) and distribute to registered holders of ADSs. If that is no longer possible or if any approval from any government is needed and cannot be obtained, The Bank of New York Mellon may distribute non-US currency only to those ADS holders to whom it is possible to make this type of distribution.

The Bank of New York Mellon may hold the non-US currency it cannot convert for the account of holders of ADSs who for one reason or the other have not been paid. It will not invest the non-US currency, and it will not be liable for interest on such amounts. Before making a distribution, any withholding taxes that must be paid will be deducted. See “Payment of Taxes” below. The Bank of New York Mellon will distribute only whole US dollars and cents and will round fractional cents to the nearest whole cent. If the exchange rates fluctuate during a time when The Bank of New York Mellon cannot convert the non-US currency, holders of ADSs may lose some or all of the value of the distribution.

Ordinary Shares

The Bank of New York Mellon may distribute to holders of ADSs additional ADSs representing ordinary shares that AngloGold Ashanti distributes as a dividend or free distribution, if AngloGold Ashanti provides it promptly with satisfactory evidence that it is legal to do so. If The Bank of New York Mellon does not distribute additional ADSs, the outstanding ADSs will also represent the newly distributed AngloGold Ashanti ordinary shares. The Bank of New York Mellon will only distribute whole ADSs. It will sell AngloGold Ashanti ordinary shares that would require it to deliver a fraction of an ADS and distribute the net proceeds in the same way as it distributes cash. The Bank of New York Mellon may sell a portion of the distributed shares sufficient to pay its fees and expenses in connection with that distribution.

Rights to Subscribe for Additional Ordinary Shares

If AngloGold Ashanti offers holders of its ordinary shares any rights to subscribe for additional AngloGold Ashanti ordinary shares or any other rights, The Bank of New York Mellon, after consultation with AngloGold Ashanti, may make these rights available to holders of ADSs or sell the rights and distribute the proceeds in the same way as it distributes cash. If The Bank of New York Mellon cannot do either of these things for any reason, it may allow these rights to lapse. In that case, holders of ADSs will receive no value for them.

If The Bank of New York Mellon makes these types of subscription rights available to holders of ADS, upon instruction from holders of ADSs, it will exercise the rights and purchase AngloGold Ashanti’s ordinary shares on their behalf. The Bank of New York Mellon will then deposit the AngloGold Ashanti ordinary shares and deliver ADSs to the holders of ADSs. It will only exercise these rights if holders of ADSs pay it the exercise price and any other charges the rights require them to pay.

US securities laws may restrict the sale, deposit, cancellation and transfer of the ADSs issued after exercise of rights. For example, holders of ADSs may not be able to trade the ADSs freely in the United States. In this case, The Bank of New York Mellon may deliver ADSs which are “restricted securities” within the meaning of Rule 144 which will have the same provisions as the ADSs described here, except for the changes needed to put the restrictions in place.

Other Distributions

The Bank of New York Mellon will send to holders of ADSs any other distributions that AngloGold Ashanti makes on deposited securities by any means it thinks is legal, fair and practical. If it cannot make the distribution in that way, The Bank of New York



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Mellon may decide to sell what AngloGold Ashanti distributes, and then distribute the net proceeds in the same way as it distributes cash, or it may decide to hold what AngloGold Ashanti distributes, in which case the outstanding ADSs will also represent the newly distributed property. However, The Bank of New York Mellon is not required to distribute any securities (other than ADSs) to ADS holders unless it receives satisfactory evidence from AngloGold Ashanti that it is legal to make that distribution. The Bank of New York Mellon may sell a portion of the distributed securities or property sufficient to pay its fees and expenses in connection with that distribution.

The Bank of New York Mellon is not responsible if, based on available information, it decides that it is unlawful or impractical to make a distribution available to any ADS holders. AngloGold Ashanti has no obligation to register ADSs, AngloGold Ashanti ordinary shares, rights or other securities under the Securities Act. AngloGold Ashanti also has no obligation to take any other action to permit the distribution of ADSs, AngloGold Ashanti ordinary shares, or any other rights to ADS holders. This means that the holders of ADSs may not receive the distribution AngloGold Ashanti makes on its ordinary shares or any value for them if it is illegal or impracticable for AngloGold Ashanti to make them available to the holders of ADSs.

Deposit, Withdrawal and Cancellation

The Bank of New York Mellon will deliver ADSs if a holder of AngloGold Ashanti’s ordinary shares or its broker deposits AngloGold Ashanti’s ordinary shares or evidence of rights to receive ordinary shares with the Custodian. Upon payment of its fees and expenses and of any taxes or charges, such as stamp taxes or stock transfer taxes or fees, The Bank of New York Mellon will register the appropriate number of ADSs in the names such holder of AngloGold Ashanti ordinary shares requests and will deliver the ADSs at its Corporate Trust Office to the persons such holders request.

Holders of ADSs may turn in their ADSs at The Bank of New York Mellon’s Corporate Trust Office. Upon payment of its fees and expenses and of any taxes or charges, such as stamp taxes or stock transfer taxes or fees, The Bank of New York Mellon will deliver (1) the underlying ordinary shares to an account designated by the relevant holder of ADSs and (2) any other deposited securities underlying the ADSs at the office of the Custodian, or, at the request, risk and expense of ADS holders, The Bank of New York Mellon will deliver the deposited securities at its Corporate Trust Office.

Interchange Between Certificated ADSs and Uncertificated ADSs

ADS registered holders may surrender their ADS to The Bank of New York Mellon for the purpose of exchanging such ADS for uncertificated ADSs. The Bank of New York Mellon will cancel that ADS and will send to the ADS registered holder a statement confirming that the ADS registered holder is the registered holder of uncertificated ADSs. Alternatively, upon receipt by The Bank of New York Mellon of a proper instruction from a registered holder of uncertificated ADSs requesting the exchange of uncertificated ADSs for certificated ADSs, The Bank of New York Mellon will execute and deliver to the ADS registered holder an ADS evidencing those ADSs.

Voting Rights

ADS registered holders may instruct The Bank of New York Mellon to vote the number of deposited shares their ADSs represent. The Bank of New York Mellon will notify ADS registered holders of shareholders’ meetings and arrange to deliver AngloGold Ashanti’s voting materials to them if AngloGold Ashanti asks it to. Those materials will describe the matters to be voted on and explain how ADS registered holders may instruct The Bank of New York Mellon how to vote. For instructions to be valid, they must reach The Bank of New York Mellon by a date set by The Bank of New York Mellon.

Otherwise, ADS registered holders will not be able to exercise their right to vote unless they withdraw the shares. However, ADS registered holders may not know about the meeting sufficiently in advance to withdraw the shares.

The Bank of New York Mellon will try, as far as practicable, to vote or to have its agents vote the ordinary shares or other deposited securities as holders of ADSs instruct, but this is subject to South African law, the provisions of AngloGold Ashanti’s MoI and of the deposited securities and any applicable rule of the JSE. The Bank of New York Mellon will only vote or attempt to vote as such holders of ADSs instruct.

AngloGold Ashanti cannot assure the holders of ADSs that they will receive the voting materials in time for them to instruct The Bank of New York Mellon to vote their ordinary shares. In addition, The Bank of New York Mellon and its agents are not responsible for failing to carry out voting instructions or for the manner of carrying out voting instructions. This means that holders of ADSs may not be able to exercise their right to vote and there may be nothing they can do if their ordinary shares are not voted as they requested.





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Fees and Expenses
ADS holders must pay:For:
$5.00 (or less) per 100 ADSsEach issuance of an ADS, including as a result of a distribution of AngloGold Ashanti ordinary shares or rights or other property

Each cancellation of an ADS, including if the Deposit Agreement terminates
$0.02 (or less) per ADSAny cash payment
Registration or transfer feesTransfer and registration of AngloGold Ashanti ordinary shares on the AngloGold Ashanti share register to or from the name of The Bank of New York Mellon or its agent when AngloGold Ashanti ordinary shares are deposited or withdrawn
$0.02 (or less) per ADS per yearDepositary services
Expenses of The Bank of New York MellonConversion of non-US currency to US dollars

Cable, telex and facsimile transmission expenses

Servicing the deposited securities
Taxes and other governmental charges that The Bank of New York Mellon or any Custodian has to pay on any ADS or AngloGold Ashanti ordinary share underlying an ADS, for example, stock transfer taxes, stamp duty or withholding taxesAs necessary
A fee equivalent to the fee that would have been payable if the securities distributed had been ordinary shares deposited for issuance of ADSsDistribution of securities distributed to holders of deposited securities that are distributed by The Bank of New York Mellon to ADS holders





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Payment of Taxes

Holders of ADSs will be responsible for any taxes or other governmental charges payable on their ADSs or on the deposited securities underlying their ADSs. The Bank of New York Mellon may refuse to transfer their ADSs or allow them to withdraw the deposited securities underlying their ADSs until such taxes or other charges are paid. It may apply payments owed to holders of ADSs or sell deposited securities underlying their ADSs to pay any taxes they owe, and they will remain liable for any deficiency. If The Bank of New York Mellon sells deposited securities, it will, if appropriate, reduce the number of ADSs to reflect the sale and pay to holders of ADSs any proceeds, or send to them any property remaining after it has paid the taxes.

Reclassifications
If AngloGold Ashanti:Then:
Reclassifies, splits up or consolidates any of the deposited securities;

The cash, ordinary shares or other securities received by The Bank of New York Mellon will become deposited securities. Each ADS will automatically represent its equal share of the new deposited securities.
Distributes securities on the ordinary shares that are not distributed to holders of ADSs; or

Recapitalises, reorganises, merges, liquidates, sells all or substantially all of AngloGold Ashanti’s assets, or takes any similar action.		The Bank of New York Mellon may, and will if AngloGold Ashanti asks it to, distribute some or all of the cash, AngloGold Ashanti ordinary shares or other securities it receives. It may also issue new ADSs or ask holders of ADSs to surrender their outstanding ADSs in exchange for new ADSs identifying the new deposited securities.

Amendment and Termination

AngloGold Ashanti may, for any reason, agree with The Bank of New York Mellon to amend the Deposit Agreement and the ADSs without the consent of holders. If the amendment increases fees or charges (except for taxes and other governmental charges or registration fees, cable, telex or facsimile transmission costs, delivery costs or other such expenses) or if the amendment prejudices an important right of ADS holders, it will only become effective 30 days after The Bank of New York Mellon notifies holders of ADSs of the amendment. At the time an amendment becomes effective, holders of ADSs are considered, by continuing to hold their ADSs, to agree to the amendment and to be bound by the ADSs and the agreement as amended.

The Bank of New York Mellon may terminate the Deposit Agreement by mailing notice of termination to ADS holders at least 30 days prior to the date fixed in the notice if AngloGold Ashanti asks it to do so. The Bank of New York Mellon may also terminate the Deposit Agreement if The Bank of New York Mellon has told AngloGold Ashanti that it would like to resign and AngloGold Ashanti has not appointed a new Depositary bank within 90 days. In both cases, The Bank of New York Mellon must notify holders of AngloGold Ashanti ADSs at least 30 days before termination.

After termination, The Bank of New York Mellon and its agents will be required to do only the following under the Deposit Agreement: collect distributions on the deposited securities, sell rights, and, upon surrender of ADSs, deliver AngloGold Ashanti ordinary shares and other deposited securities. Four months after the date of termination or later, The Bank of New York Mellon may sell any remaining deposited securities by public or private sale and will hold the proceeds of the sale, as well as any other cash it is holding under the Deposit Agreement, for the pro rata benefit of the ADS holders who have not surrendered their ADSs. It will not invest the money and will have no liability for interest. The Bank of New York Mellon’s only obligations will be to account for the proceeds of the sale and other cash. After termination, AngloGold Ashanti’s only obligations will be with respect to indemnification of, and payment of certain amounts to, The Bank of New York Mellon.

Limitations on Obligations and Liability to ADS Holders

The Deposit Agreement expressly limits AngloGold Ashanti’s obligations and the obligations of The Bank of New York Mellon, and limits AngloGold Ashanti’s liability and the liability of The Bank of New York Mellon. AngloGold Ashanti and The Bank of New York Mellon:
•are only obligated to take the actions specifically set forth in the Deposit Agreement without negligence or bad faith;
•are not liable if either of AngloGold Ashanti or The Bank of New York Mellon is prevented or delayed by law or circumstances beyond their control from performing their obligations under the Deposit Agreement;
•are not liable if either of AngloGold Ashanti or The Bank of New York Mellon exercises discretion permitted under the Deposit Agreement;
•are not liable for the inability of any holder of ADSs to benefit from any distribution on deposited securities that is not made available to holders of ADSs under the terms of the Deposit Agreement, or for any special, consequential or punitive damages for any breach of the terms of the Deposit Agreement;
•have no obligation to become involved in a lawsuit or other proceeding related to the ADSs or the Deposit Agreement on behalf of the holders of ADSs or on behalf of any other party;
•may rely on advice of or information from legal counsel, accountants, and any persons presenting AngloGold Ashanti’s ordinary shares for deposit, any registered holder or any other person believed by AngloGold Ashanti in good faith to be competent to give such advice or information; and



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•pursuant to the Deposit Agreement agree to indemnify each other under certain circumstances.

Requirements for Depositary Action

Before The Bank of New York Mellon will issue, transfer or register the transfer of an ADS, make a distribution on an ADS, or allow withdrawal of AngloGold Ashanti ordinary shares, The Bank of New York Mellon may require:
•payment of stock transfer or other taxes or other governmental charges and transfer or registration fees charged by third parties for the transfer of any ordinary shares or other deposited securities;
•production of satisfactory proof of the identity and genuineness of any signature or other information it deems necessary; and
•compliance with regulations it may establish, from time to time, consistent with the Deposit Agreement, including presentation of transfer documents.

The Bank of New York Mellon may refuse to deliver, transfer or register transfers of ADSs generally when the books of The Bank of New York Mellon or AngloGold Ashanti are closed, or at any time if either AngloGold Ashanti or The Bank of New York Mellon thinks it advisable to do so.

Holders of ADSs have the right to cancel their ADSs and withdraw the underlying ordinary shares at any time except:
•when temporary delays arise because: (1) either AngloGold Ashanti or The Bank of New York Mellon have closed AngloGold Ashanti’s transfer books; (2) the transfer of the ordinary shares is blocked in connection with voting at a general meeting of shareholders; or (3) AngloGold Ashanti is paying a dividend on the ordinary shares;
•when ADS holders seeking to withdraw the ordinary shares are liable for unpaid fees, taxes and similar charges; or
•when it is necessary to prohibit withdrawals in order to comply with any laws or governmental regulations that apply to ADSs or to the withdrawal of the ordinary shares or other deposited securities.

This right of withdrawal may not be limited by any other provision of the Deposit Agreement.

Pre-release of ADSs

In certain circumstances, subject to the provisions of the Deposit Agreement, The Bank of New York Mellon may deliver ADSs before deposit of the underlying ordinary shares. This is called a pre-release of the ADS.

The Bank of New York Mellon may also deliver AngloGold Ashanti ordinary shares upon cancellation of pre-released ADSs (even if the ADSs are cancelled before the pre-release transaction has been closed out). A pre-release is closed out as soon as the underlying AngloGold Ashanti ordinary shares are delivered to The Bank of New York Mellon. The Bank of New York Mellon may receive ADSs instead of ordinary shares to close out a pre-release.

The Bank of New York Mellon may pre-release ADSs only under the following conditions:
•before or at the time of the pre-release, the person to whom the pre-release is being made must represent to The Bank of New York Mellon in writing that it or its customer: (a) owns the ordinary shares or ADSs to be remitted, (b) assigns all beneficial rights, title and interest in such ADSs or ordinary shares, as the case may be, to The Bank of New York Mellon in its capacity as the Depositary and for the benefit of the ADS holders, and (c) will not take any action with respect to such ADSs or ordinary shares, as the case may be, that is consistent with the transfer of beneficial ownership (including, without the consent of The Bank of New York Mellon, disposing of such ADSs or ordinary shares, as the case may be) other than satisfaction of such pre-release;
•the pre-release must be fully collateralised with cash, US government securities, or other collateral that The Bank of New York Mellon considers appropriate; and
•The Bank of New York Mellon must be able to close out the pre-release on not more than five business days’ notice. Each pre-release will be subject to any further indemnities and credit regulations that The Bank of New York Mellon deems appropriate. The Bank of New York Mellon will normally limit the number of AngloGold Ashanti ordinary shares not deposited but represented by ADSs outstanding at any time as a result of pre-release so that they do not exceed 30 percent of the ordinary shares deposited, although The Bank of New York Mellon may disregard this limit from time to time, if it thinks it is appropriate to do so.

Direct Registration System

In the Deposit Agreement, all parties to the Deposit Agreement acknowledge that the DRS and Profile Modification System, or Profile, will apply to uncertificated ADSs upon acceptance thereof to DRS by The Depository Trust Company, also referred to as DTC. DRS is the system administered by DTC pursuant to which the Depositary may register the ownership of uncertificated ADSs, which ownership will be evidenced by periodic statements sent by the Depositary to the registered holders of uncertificated ADSs. Profile is a required feature of DRS which allows a DTC participant, claiming to act on behalf of a registered holder of ADSs, to direct the Depositary to register a transfer of those ADSs to DTC or its nominee and to deliver those ADSs to the DTC account of that DTC participant without receipt by the Depositary of prior authorisation from the ADS registered holder to register that transfer.




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In connection with and in accordance with the arrangements and procedures relating to DRS/Profile, the parties to the Deposit Agreement understand that The Bank of New York Mellon will not verify, determine or otherwise ascertain that the DTC participant which is claiming to be acting on behalf of an ADS holder in requesting registration of transfer and delivery described in the paragraph above has the actual authority to act on behalf of the ADS holder (notwithstanding any requirements under the Uniform Commercial Code). In the Deposit Agreement, the parties agree that The Bank of New York Mellon’s reliance on and compliance with instructions received by The Bank of New York Mellon through the DRS/Profile System and in accordance with the Deposit Agreement will not constitute negligence or bad faith on the part of The Bank of New York Mellon.

Shareholder Communications: Inspection of Register of Holders of ADSs

The Bank of New York Mellon will make available for inspection at its office all communications that it receives from AngloGold Ashanti as a holder of deposited securities that AngloGold Ashanti makes generally available to holders of deposited securities. The Bank of New York Mellon sends copies of those communications if requested by AngloGold Ashanti. ADS holders have a right to inspect the register of holders of ADSs, but not for the purpose of contacting those holders about a matter unrelated to AngloGold Ashanti’s business or the ADSs.




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10D.Exchange controls

Exchange controls and other limitations affecting security holders

The following is a general outline of South African exchange controls and such outline may not apply to former residents of South Africa. Investors should consult a professional advisor as to the exchange control implications of their particular investments.

South African law provides for exchange control regulations, which restrict the export of capital from South Africa. Exchange controls are administered by the Financial Surveillance Department of the South African Reserve Bank (SARB), in terms of the Exchange Control Regulations, and regulate transactions involving South African residents and non-residents, with the exception of transactions between South African residents and residents of the Common Monetary Area, which comprises the Kingdoms of Lesotho and Eswatini (formerly Swaziland) and the Republic of Namibia. The purpose of exchange controls is to mitigate the decline of foreign capital reserves in South Africa.

The Government of South Africa has, however, committed itself to relaxing exchange controls gradually and significant relaxation has occurred in recent years.

The comments below relate, in general, to exchange controls in place at the date of this annual report.

Investments in South African companies

Acquisitions of shares or assets of South African companies by non-South African purchasers are generally subject to review and approval by the SARB, particularly where the consideration is payable in a form other than cash. In this regard, the SARB will give approval where it is persuaded, inter alia, that the consideration payable for the acquisition of the shares or assets is an arm’s-length consideration and that such acquisition offers benefits to South Africa. In addition, where shares in a South African company are acquired by a non-resident, the share certificates issued to the non-resident shareholder must be endorsed “non-resident” by the SARB (or an Authorised Dealer).

Dividends

Dividends declared to foreign stockholders in public companies listed on the Johannesburg Stock Exchange (JSE) are not subject to the approval of the SARB, provided that the shares in respect of which the dividends are declared have been endorsed “non-resident” by the SARB or an Authorised Dealer at the time of acquisition. Dividends are freely transferable to foreign stockholders from both trading and non-trading profits earned in South Africa by public listed companies.

Voting rights

There are no limitations imposed by South African law, including South African exchange controls, or by the Memorandum of Incorporation of AngloGold Ashanti on the rights of non-South African shareholders to vote their ordinary shares.

Overseas financing, interest and investments

Interest on foreign loans, if paid from cash generated from operations in South Africa, may be remittable abroad, provided that the loans and the payment of the relevant interest in respect of such loans have received prior SARB approval.

AngloGold Ashanti and its South African subsidiaries require SARB approval to raise debt from and repay debt to non-residents of the Common Monetary Area, mainly in respect of the terms of repayment applicable to such loans, as well as any guarantees that may be provided in respect of such loans, by AngloGold Ashanti or its South African subsidiaries.

Debt raised outside the Common Monetary Area by AngloGold Ashanti’s non-South African subsidiaries is not restricted under South African exchange control regulations and can be used for investment outside the Common Monetary Area, subject to the relevant conditions imposed by the SARB in connection with such investment, the establishing of such a non-South African subsidiary or in raising the debt by such subsidiary. For example, AngloGold Ashanti and its South African subsidiaries would require SARB approval in order for AngloGold Ashanti and/or its South African subsidiaries to provide guarantees for the obligations of any of its non-South African subsidiaries. In addition, funds obtained from non-residents of the Common Monetary Area and debt raised outside the Common Monetary Area by AngloGold Ashanti’s non-South African subsidiaries must be repaid or serviced by AngloGold Ashanti’s foreign subsidiaries unless otherwise approved by the SARB.

A listing by a South African company on any stock exchange other than the JSE in connection with raising capital requires permission from the SARB.

Under current exchange control regulations, offshore investments by AngloGold Ashanti and its subsidiaries require the approval of the SARB. Subject to such prior approval of the SARB, there is no limit on the amount of capital that may be invested offshore.



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10E.Taxation

South African taxation

General
The following summary summarises the South African tax consequences of the ownership and disposition of shares by South African residents or ADSs by a US holder (as defined below) and is not intended to constitute tax advice. This summary is based upon current South African tax law and South African Revenue Service (SARS) practice, the US/SA Double Taxation Treaty, and in part beneficiallyupon representations of the Depositary, and assumes that each obligation provided for United States persons.in, or otherwise contemplated by, a Deposit Agreement and any related agreement will be performed in accordance with its respective terms.


At 19 March 2019,The following summary of the South African tax considerations does not address the tax consequences to a totalUS holder that is resident in South Africa for South African tax purposes, whose holding of 178,961,001shares or ADSs is effectively connected with a permanent establishment in South Africa through which such US holder carries on business activities or, 43in the case of an individual, with a fixed base situated therein, or who is otherwise not entitled to the full benefits under the US/SA Double Taxation Treaty.

The statements of law set forth below are subject to any changes (which may be applied retroactively) in South African law or in the interpretation thereof by SARS, or in the US/SA Double Taxation Treaty, occurring after the date hereof. It should be expressly noted that South African tax law does not specifically address the treatment of ADSs. However, it is reasonable to assume (although no assurance can be made) that the tax treatment of US holders of shares is also applicable to US holders of ADSs.

Holders are strongly urged to consult their own tax advisors as to the consequences under South African, US federal, state and local, and other applicable laws, of the ownership and disposition of shares or ADSs.

Taxation of dividends

South Africa currently imposes a Dividend Withholding Tax on Companies (dividends tax) at a rate of 20 percent on the net amount of the dividend declared and paid by a resident company, other than a Headquarter Company.

The dividends tax is generally imposed on the beneficial owner of the dividends. The dividends tax is subject to domestic exemptions or relief in terms of an applicable double taxation treaty. The application of such domestic exemptions or relief in terms of an applicable double taxation treaty is subject to the making of certain declarations and undertakings by the beneficial owner of the dividends to the regulated intermediary making payment of the dividend. In terms of the latest amendments to the tax provisions, the declaration and undertaking entitling the beneficial owner to a reduced dividend withholding tax rate must be renewed every five years, subject to certain exemptions.

The dividends tax could be reduced to a lower rate under an applicable double tax treaty, if all requirements are met. In the case of dividends paid to a US holder with respect to shares, the US/SA Double Taxation Treaty would generally limit the dividends tax rate to five percent of total issued ordinarythe gross amount of the dividends if a corporate US holder holds directly at least 10 percent of the voting stock of the Company, provided that the applicable declaration and undertaking are given by the beneficial owner that the reduced rate applies. In all other cases, the maximum tax rate under the US/SA Double Taxation Treaty is 15 percent of the gross amount of the dividend. Different rules may apply if the beneficial owner of the dividends is a US resident who carries on business in South Africa through a permanent establishment situated in South Africa, or performs in South Africa services from a permanent establishment situated in South Africa, and the dividends are attributable to such permanent establishment or fixed base. Moreover, if the dividends tax rate is reduced under the auspices of an applicable double tax treaty, certain South African compliance requirements must be met in order to obtain the double tax treaty relief, amongst others the completion of a declaration and undertaking by the beneficial owners in favour of the Company and/or the relevant regulated intermediary. In terms of the latest tax provisions the declaration and undertaking need to be renewed at least every five years unless the regulated intermediary is subject to the provisions of inter alia the US Foreign Account Tax Compliance legislation.

A dividend is currently defined as any amount transferred or applied by a company that is a resident (including the Company) for the benefit or on behalf of any person in respect of any share in that company, whether that amount is transferred or applied by way of a distribution made by the company, or as consideration for the acquisition of any share in that company. The definition of a dividend specifically excludes any amount transferred or applied by the company that results in a reduction of so-called contributed tax capital (CTC) of the relevant class of shares, or constitutes shares in the company or constitutes an acquisition by the company of its own securities by way of a general repurchase of securities in terms of the JSE Listings Requirements. A distinction is thus made between a general repurchase of securities and a specific repurchase of securities. If the company embarks upon a general repurchase of securities, the proceeds of such repurchase would not constitute a dividend whereas, in the case of a specific repurchase of securities where the purchase price is not funded out of CTC of that class of shares, the proceeds would likely constitute a dividend.

The concept of CTC effectively means the sum of the stated capital or share capital were issued and outstandingshare premium of a company that existed on 1 January 2011, excluding any transfers from reserves to the share premium account or stated capital account, plus



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proceeds from the issue of any new shares by a company, less the amount of CTC that has been returned to shareholders. Any application of CTC is limited to the holders of a class of shares. In addition, a distribution of CTC attributable to a specific class must be made proportionately to the number of shares held by a shareholder in a specific class. The definition of CTC is subject to various provisos.

For dividends tax purposes a dividend is defined as any dividend as indicated above that is paid by a company that is a resident or paid by a foreign company if the share in respect of which that foreign dividend is paid is a listed share and heldto the extent that the foreign dividend does not constitute a distribution of an asset in kind.

Dividends are generally exempt from the payment of income tax, subject to various exclusions.


Taxation of capital gains on record by 2,285 registered holders.sale or other disposition


InsofarSouth African residents are taxed on their worldwide income, while non-residents are only taxed on South African sourced income (subject to the provisions of any relevant double taxation agreement).

Capital gains tax is not a separate tax to income tax; instead, a percentile of the taxpayer’s net capital gain (that is the taxable capital gain) is included in its taxable income on which it is taxed at the income tax rate.

Non-residents are only subject to the South African capital gains tax provisions in respect of the disposal of any immovable property (such as land and buildings or mining rights) or any interest or right of whatever nature to or in immovable property situated in South Africa, or any asset of a permanent establishment through which that non-resident is known to AngloGold Ashanti, there was no person who,carrying on a trade in South Africa. In the instance of a shareholder holding shares in a South African company, the ‘interest in immovable property’ requirements are met if 80 percent or more of the market value of the shares is directly or indirectly jointlyattributable to South African immovable property held on capital account, and that shareholder (whether alone or severally, exercisedtogether with any connected person in relation to that person), directly or could exercise control over AngloGold Ashanti, norindirectly, holds at least 20 percent of the equity shares of that South African company.

Gains realised on the sale of ordinary shares are deemed to be of a capital nature and subject to capital gains tax provided the ordinary shares have been held for a continuous period of at least three years. This deeming provision is AngloGold Ashanti awareapplicable to “equity shares” as defined in section 1 of the South African Income Tax Act, No. 58 of 1962 (the “SA Income Tax Act”), and may not extend to preference shares or ADSs where the preference shares or ADSs do not constitute “equity shares” as so defined.

The meaning of the word “resident” is different for individuals and corporations and is governed by the Act and by the Treaty. In the event of conflict, the Treaty, which contains a tie breaker clause or mechanism to determine residency if a holder is resident in both countries, will prevail. In terms of the Act and Treaty, a US resident holder of shares or ADSs will not be subject to capital gains tax on the disposal of securities held as capital assets unless the securities are linked to a permanent establishment conducted in South Africa or constitute an interest in immovable property as indicated above. In contrast, gains on the disposal of securities which are not capital in nature are usually subject to income tax. Any asset held as a long-term investment will be considered a capital asset and subject to capital gains tax on the disposal of such an asset. Any asset acquired for purposes of resale as part of a profit-making scheme will not be considered a capital asset and will be subject to income tax on the disposal of such an asset. However, even in the latter case, a US resident holder will not be subject to income tax, unless the US resident holder carries on business in South Africa through a permanent establishment situated therein.

Securities transfer tax (STT)

No securities transfer tax, or STT, is payable in South Africa with respect to the issue of a security, but STT is payable upon transfer, redemption or cancellation thereof.

STT on transfers of securities is charged at a rate of 0.25 percent on the ‘taxable amount’ in respect of the ‘transfer’ of every security issued by a company incorporated in South Africa, or a company incorporated outside South Africa, but listed on an exchange in South Africa, subject to certain exemptions.

The word ‘transfer’ is broadly defined and includes the transfer, sale, assignment or cession or disposal in any arrangementsother manner of a security which mightresults in a change in beneficial ownership. The cancellation or redemption of a security is also regarded as a ‘transfer’ unless the company is being liquidated. However, the transfer of a security that does not result in a change in controlbeneficial ownership is not regarded as a ‘transfer’ for STT purposes. A security is also defined as a depositary receipt in a company. Accordingly, STT is payable on the transfer of a depositary receipt issued by a company, including specifically the ADSs issued by the Company. Generally, the central securities Depositary that has been accepted as a participant in terms of the Financial Markets Act, is liable for the payment of the STT, on the basis that it is recoverable from the person to whom it is transferred.

STT is levied on the ‘taxable amount’ of a security. The taxable amount of a listed security is the greater of the consideration for the security declared by the transferee or the closing price of that security as traded on the stock exchange concerned. The person to whom the listed security is transferred is liable for payment of the STT, and such tax must be paid through the member or the participant holding the security in custody, or where the listed security is not held in custody, the company that issued the



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listed security. The tax so payable may be recovered from the person to whom the security is transferred. The tax must be paid by the fourteenth day of the month following the month during which the transfer occurred.

Withholding tax on interest

Generally, a 15 percent withholding tax may apply to the payments of interest. Under the US/SA Double Taxation Treaty, interest derived and beneficially owned by a resident of the United States will be taxable only in the United States (and therefore not subject to interest withholding tax in South Africa), subject to certain exclusions.

Value-Added Tax

The issue or transfer of shares is not a taxable supply for value-added tax (“VAT”) purposes. However, fees charged by independent service providers would be subject to VAT at the standard rate of 15%.

United States Taxation

General
The following is a general summary of certain material US federal income tax consequences of the ownership and disposition of shares or ADSs to a US holder (as defined below) that holds its shares or ADSs as a capital asset. With respect to the following, references to shares includes references to ADSs unless the context indicates otherwise. This summary does not address any aspect of US federal gift or estate tax, or the state, local or non-US tax consequences to a US holder of shares. This summary is based on US tax laws including the Internal Revenue Code of 1986, as amended (the Code), Treasury regulations promulgated thereunder, rulings, judicial decisions, administrative pronouncements, and the US/SA Double Taxation Treaty, all as currently in effect as of the date of this annual report, and all of which are subject to change or changes in interpretation, possibly with retroactive effect. In addition, this summary is based in part upon the representations of the Depositary and the assumption that each obligation in the Deposit Agreement relating to the ADSs and any related agreement will be performed in accordance with its terms.

This summary does not address all aspects of US federal income taxation that may apply to holders that are subject to special tax rules, including US expatriates, non-resident aliens present in the United States for at least 183 days during the calendar year, insurance companies, tax-exempt entities, banks, certain financial institutions, persons subject to the alternative minimum tax, regulated investment companies, securities broker-dealers, traders in securities who elect to apply a mark-to-market method of accounting, investors that own (directly, indirectly or by attribution) 10 percent or more of the outstanding share capital or voting stock of AngloGold Ashanti.Ashanti, partnerships or other entities treated as partnerships for US federal income tax purposes or persons holding shares through such entities, persons holding their shares as part of a straddle, hedging or conversion transaction, persons who acquired their shares pursuant to the exercise of employee stock options or otherwise as compensation, or persons whose functional currency is not the US dollar. Such holders may be subject to US federal income tax consequences different from those set forth below.


7B.    RELATED PARTY TRANSACTIONSAs used herein, the term “US holder” means a beneficial owner of shares that is: (a) a citizen or individual resident of the United States for US federal income tax purposes; (b) a corporation (or other entity taxable as a corporation for US federal income tax purposes) created or organised in or under the laws of the United States, any state thereof or the District of Columbia; (c) an estate the income of which is subject to US federal income taxation regardless of its source; or (d) a trust if (i) a court within the United States can exercise primary supervision over the administration of the trust and one or more US persons are authorised to control all substantial decisions of the trust or (ii) it has a valid election in effect under applicable Treasury regulations to be treated as a United States person.


If a partnership (including for this purpose any entity treated as a partnership for US federal income tax purposes) holds shares, the tax treatment of a partner generally will depend upon the status of the partner and the activities of the partnership. If a US holder is a partner in a partnership that holds shares, the holder is urged to consult its own tax advisor regarding the specific tax consequences of the ownership and disposition of the shares.

US holders should consult their own tax advisors regarding the specific South African and US federal, state and local tax consequences of owning and disposing of shares in light of their particular circumstances as well as any consequences arising under the laws of any other taxing jurisdiction. In particular, US holders are urged to consult their own tax advisors regarding whether they are eligible for benefits under the US/SA Double Taxation Treaty.

For US federal income tax purposes, a US holder of ADSs should generally be treated as owning the underlying shares represented by those ADSs. Therefore, deposits or withdrawals by a US holder of shares for ADSs or of ADSs for shares will not be subject to US federal income tax. The following discussion (except where otherwise expressly noted) applies equally to US holders of shares and US holders of ADSs.

▪Taxation of dividends
The Company hadgross amount of any distribution (including the amount of any South African withholding tax thereon) paid to a US holder by AngloGold Ashanti generally will be taxable as dividend income to the US holder for US federal income tax purposes on the date



299

the distribution is actually or constructively received by the US holder, in the case of shares, or by the Depositary, in the case of ADSs. Corporate US holders will not be eligible for the dividends received deduction in respect of dividends paid by AngloGold Ashanti. For foreign tax credit limitation purposes, dividends paid by AngloGold Ashanti will be income from sources outside the United States.

As noted above in “Taxation—South African taxation—Taxation of dividends”, the South African government has enacted a dividend withholding tax. As a result, US holders who are eligible for benefits under the current US/SA Double Taxation Treaty will be subject to a maximum withholding tax of 15 percent on the gross amount of dividend distributions paid by AngloGold Ashanti.

The amount of any distribution paid in foreign currency (including the amount of any South African withholding tax thereon) generally will be includible in the gross income of a US holder of shares in an amount equal to the US dollar value of the foreign currency calculated by reference to the spot rate in effect on the date of receipt by the US holder, in the case of shares, or by the Depositary, in the case of ADSs, regardless of whether the foreign currency is converted into US dollars on such date. If the foreign currency is converted into US dollars on the date of receipt, a US holder of shares generally should not be required to recognise foreign currency gain or loss in respect of the dividend. If the foreign currency received in the distribution is not converted into US dollars on the date of receipt, a US holder of shares generally will have a tax basis in the foreign currency equal to its US dollar value on the date of receipt. Any gain or loss recognised upon a subsequent conversion or other disposition of the foreign currency generally will be treated as US source ordinary income or loss. In the case of a US holder of ADSs, the amount of any distribution paid in a foreign currency generally will be converted into US dollars by the Depositary upon its receipt. Accordingly, a US holder of ADSs generally will not be required to recognise foreign currency gain or loss in respect of the distribution. Special rules govern and specific elections are available to accrual method taxpayers to determine the US dollar amount includible in income in the case of taxes withheld in a foreign currency. Accrual basis taxpayers are therefore urged to consult their own tax advisors regarding the requirements and elections applicable in this regard.

Subject to certain limitations, South African withholding taxes will be treated as foreign taxes eligible for credit against a US holder’s US federal income tax liability. The limitation on foreign taxes eligible for credit is calculated separately with respect to specific classes of income. Dividend income generally will constitute “passive category” income, or in the case of certain US holders, “general category” income. The use of foreign tax credits is subject to complex conditions and limitations. In lieu of a credit, a US holder who itemises deductions may elect to deduct all of such holder’s foreign taxes in the taxable year. A deduction does not reduce US tax on a dollar-for-dollar basis like a tax credit, but the deduction for foreign taxes is not subject to all the same limitations applicable to foreign tax credits. US holders are urged to consult their own tax advisors regarding the availability of foreign tax credits.

Certain US holders (including individuals) are eligible for reduced rates of US federal income tax in respect of “qualified dividend income” received. AngloGold Ashanti currently believes that dividends paid with respect to its shares should constitute qualified dividend income for US federal income tax purposes. Each individual US holder of AngloGold Ashanti shares is urged to consult his own tax advisor regarding the availability of the reduced dividend tax rate in light of his own particular situation.

The US Treasury has expressed concern that parties to whom ADSs are pre-released may be taking actions that are inconsistent with the claiming of foreign tax credits for US holders of ADSs. Such actions would also be inconsistent with the claiming of the reduced rate of tax described above, applicable to dividends received by certain non-corporate holders. Accordingly, the analysis of the creditability of South African withholding taxes or the availability of qualified dividend treatment could be affected by future actions that may be taken by the US Treasury with respect to ADSs.

▪Taxation of dispositions
If a US holder is a resident of the United States for purposes of the US/SA Double Taxation Treaty, such holder will not be subject to South African tax on any capital gain if it sells or disposes of its shares. Special rules apply to individuals who are residents of more than one country.

Subject to the passive foreign investment company considerations discussed below, upon the sale, exchange or other disposition of shares, a US holder generally will recognise capital gain or loss for US federal income tax purposes in an amount equal to the difference between the US dollar value of the amount realised on the disposition and the holder’s tax basis, determined in US dollars, in the shares. Such gain or loss generally will be US source gain or loss, and will be treated as a long-term capital gain or loss if the holder’s holding period in the shares exceeds one year at the time of disposition. If the US holder is an individual, any capital gain generally will be subject to US federal income tax at preferential rates if specified minimum holding periods are met. The deductibility of capital losses is subject to limitations under the Code.

A US holder’s tax basis in a share will generally be its US dollar cost. The US dollar cost of a share purchased with foreign currency will generally be the US dollar value of the purchase price on the settlement date for the purchase (in the case of shares traded on an established securities market that are purchased by a cash basis US holder or an electing accrual basis US holder), or the date of purchase in all other cases. The amount realised on a sale or other disposition of shares for an amount in foreign currency will be the US dollar value of this amount on the settlement date for the sale or disposition (in the case of shares traded on an established securities market that are sold by a cash basis US holder or an electing accrual basis US holder), or the date of sale or disposition in all other cases. In addition, in such other cases, the US holder will recognise US source foreign



300

currency gain or loss (taxable as ordinary income or loss) equal to the difference (if any) between the US dollar value of the amount received based on the exchange rates in effect on the date of sale or other disposition and the settlement date. If an accrual basis US holder makes either of the elections described above, it must be applied consistently from year to year and cannot be revoked without the consent of the Internal Revenue Services (IRS).

Foreign currency received on the sale or other disposition of a share will have a tax basis equal to its US dollar value on the settlement date. Any gain or loss recognised on a sale or other disposition of foreign currency (including its use to purchase shares or upon exchange for US dollars) will be US source ordinary income or loss.

▪Passive foreign investment company considerations
A foreign corporation will be classified a passive foreign investment company (PFIC) for any taxable year if at least 75 percent of its gross income consists of passive income (such as dividends, interest, rents or royalties (other than rents or royalties derived in the active conduct of a trade or business and received from an unrelated person), or gains on the disposition of certain minority interests), or at least 50 percent of the average value of its assets consists of assets that produce, or are held for the production of, passive income. AngloGold Ashanti believes that it was not treated as a PFIC for the taxable year ended 31 December 2021 or any prior taxable years and does not expect to become a PFIC in the foreseeable future. If AngloGold Ashanti were characterised as a PFIC for any taxable year, a US holder would suffer adverse tax consequences with respect to that taxable year and all future years during which it holds AngloGold Ashanti ordinary shares.

These consequences may include having gain realised on the disposition of shares treated as ordinary income rather than capital gain and being subject to punitive interest charges on the receipt of certain dividends and on the proceeds of the sale or other disposition of the shares. Furthermore, dividends paid by AngloGold Ashanti would not be “qualified dividend income” and would be taxed at the higher rates applicable to other items of ordinary income. US holders should consult their own tax advisors regarding the potential application of the PFIC rules to their ownership of the shares.

▪US information reporting and backup withholding
In general, dividend payments made to a US holder and proceeds paid from the sale, exchange, or other disposition of shares may be subject to information reporting to the IRS and possible backup withholding. US federal backup withholding generally is imposed at a current rate of 24 percent on specified payments including dividends and gross sale proceeds to persons who fail to furnish required information. Backup withholding will not apply to a US holder who furnishes a correct taxpayer identification number and makes any other required certification or who is otherwise exempt from backup withholding. US persons who are required to establish their exempt status generally must provide IRS Form W-9 (Request for Taxpayer Identification Number and Certification). Backup withholding is not an additional tax. Amounts withheld as backup withholding may be credited against a holder’s US federal income tax liability. A holder may obtain a refund of any excess amounts withheld under the backup withholding rules by filing the appropriate claim for refund with the IRS and furnishing any required information.

▪Information with respect to foreign financial assets
Individuals that own “specified foreign financial assets” with an aggregate value in excess of $50,000 are generally required to file information reports with respect to such assets with their U.S. federal income tax returns. Depending on the individual’s circumstances, higher threshold amounts may apply. “Specified foreign financial assets” include any financial accounts maintained by foreign financial institutions, as well as any of the following, but only if they are not held in accounts maintained by financial institutions: (i) stocks and securities issued by foreign persons, (ii) financial instruments and contracts held for investment that have foreign issuers or counterparties and (iii) interests in foreign entities. Therefore, the shares may be treated as specified foreign financial assets. In such cases, certain US holders may be subject to this information reporting regime and be required to file IRS Form 8938 listing these assets with their U.S. federal income tax returns. Failure to file information reports may subject a US holder to penalties. US holders are urged to consult their own tax advisors regarding their obligations to file information reports with respect to the shares.







301

10F.    DIVIDENDS AND PAYING AGENTS

Not applicable.






10G.    STATEMENT BY EXPERTS

Not applicable.






10H.Documents on Display

AngloGold Ashanti files annual reports on Form 20-F and reports on Form 6-K with the SEC. You may access this information at the SEC’s home page (http://www.sec.gov). Copies of the documents referred to herein may be inspected at AngloGold Ashanti’s offices by contacting AngloGold Ashanti at 112 Oxford Road, Houghton Estate, Johannesburg, 2198 (Private Bag X 20, Rosebank, 2196) South Africa, Attention: Company Secretary, telephone number: +27 11 637 6000.

No material on the AngloGold Ashanti website forms any part of, or is incorporated by reference into, this annual report on Form 20-F. References herein to the company’s website shall not be deemed to cause such incorporation.







10I.    SUBSIDIARY INFORMATION

Not applicable.



302

ITEM 11: QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

TREASURY POLICY

Risk management activities within the group are the ultimate responsibility of the board. The Chief Financial Officer is responsible to the board for the design, implementation and monitoring of the risk management plan. The Audit and Risk Committee is responsible for overseeing risk management plans and systems, as well as financial risks which include a review of treasury activities and exposure to the group’s counterparties.

Under the financial and risk management policy, hedges may be put in place once approved by the Board, using approved instruments over the group’s planned gold production and resultant gold sales and currency exposures. The financial and risk management policy sets trading limits for the various levels of treasury management from dealer, through treasurer, executive management team and board members.

The financial risk management activities objectives of the group are as follows:
•Safeguarding the group’s core earnings stream from its major assets through the effective control and management of gold and other commodity price risk, foreign exchange risk and interest rate risk;
•Effective and efficient usage of credit facilities in both the short- and long-term through the adoption of reliable liquidity management planning and procedures;
•Ensuring that investment and hedging transactions are undertaken with creditworthy counterparts; and
•Ensuring that all contracts and agreements related partiesto financial risk management activities are co-ordinated and consistent throughout the group and comply where necessary with all relevant regulatory and statutory requirements.

Under the financial and risk management policy, treasury reports are produced at the following minimum intervals for review by management and the board of directors:
•DailyTreasury Manager
•WeeklyTreasurer
•MonthlyTreasurer
•QuarterlyAudit and Risk Committee and Board of Directors

The Treasury Risk Analyst is responsible for monitoring all reports for completeness and accuracy which are reviewed by the Treasurer.

At AngloGold Ashanti, all front office (dealing), middle office (risk reporting), back office (deal confirmations) and payment (treasury settlements) activities are segregated. All treasury transactions are captured on a third party developed treasury and risk management system that is widely used in corporate treasuries. The group internal audit function conducts regular and ad-hoc reviews of the activities of treasury and the group’s treasury system.

Gold price risk management activities

In the normal course of its operations, the group is exposed to gold and other commodity price, currency, interest rate, equity price, liquidity and non-performance risk, which includes credit risk. The group is also exposed to certain by-product commodity price risk. In order to manage these risks, the group may enter into transactions which make use of derivatives. The group has developed a risk management process to facilitate, control and monitor these risks.

Gold price risk arises from the risk of an adverse effect of current or future earnings resulting from fluctuations in the price of gold. The group eliminated its hedge book during 2010 and has since had full exposure to the spot price of gold.

As at 31 December 2021, the group had no commitments against future production potentially settled in cash.

Foreign exchange price risk protection agreements

The group, from time to time, may enter into currency forward exchange and currency option contracts to hedge certain anticipated transactions denominated in foreign currencies. The objective of the group’s foreign currency hedging activities is to protect the group from the risk that the eventual cash flows resulting from transactions denominated in US dollars will be adversely affected by changes in exchange rates.

As at 31 December 2021 and 2020, the group had no open forward exchange or currency option contracts in its currency hedge position.







303

IFRS guidance on derivatives and hedging requires that derivative instruments be accounted for as follows:
•Contracts that meet the criteria for hedge accounting are designated as hedging instruments, hedging the variability of forecasted cash flows from the sale of production into the spot market and from capital expenditure denominated in a foreign currency and are classified as cash flow hedges. Cash flow hedge losses pertaining to capital expenditure of $1 million as at 31 December 2021 (2020: $1 million) are expected to be reclassified from accumulated other comprehensive income and recognised as an adjustment to depreciation expense over the life of the Serra Grande mine.
•All other derivatives are measured at their estimated fair value, with the changes in estimated fair value at each reporting date reported as gains or losses on derivatives in earnings in the period in which they occur.

Cash flows related to these instruments designated as qualifying hedges are reflected in the consolidated statement of cash flows in the same category as the cash flow from the items being hedged. Accordingly, cash flows relating to the settlement of forward sale commodity derivatives contracts hedging the forecasted sale of production into the spot market will be reflected upon settlement as a component of operating cash flows.

Interest rate and liquidity risk

Fluctuations in interest rates impact interest paid and received on the short-term cash investments and financing activities, giving rise to interest rate risk.

In the ordinary course of business, the group receives cash from the proceeds of its gold sales and is required to fund its working capital requirements. This cash is managed to ensure that surplus funds are invested in a manner to achieve market related returns while minimising risks.

The group is able to actively source financing at competitive rates. The counterparts are financial and banking institutions and their credit ratings are regularly monitored by the group.

Cash and loans advanced maturity profile
20212020
Maturity dateCurrencyFixed rate
investment
amount
(million)		Effective
rate %		Floating rate
investment
amount
(million)		Effective
rate %		Fixed rate
investment
amount
(million)		Effective
rate %		Floating rate
investment
amount
(million)		Effective
rate %
All less than one year$1 — 301 0.10 — 572 0.15 
ZAR1,337 3.54 — — 2,611 3.30 29 2.00 
AUD— 72 — — 50 — 
BRL— 106 4.27 — 32 1.90 
ARS13,256 34.00 — 6,679 34.00 4,820 30.00 
CAD— 353 0.19 

Borrowings maturity profile
Within one yearBetween
One and two years		Between Two
and five years		After five yearsTotal
CurrencyBorrowings
amount
(million)		Effective
rate
%		Borrowings
amount
(million)		Effective
rate
%		Borrowings
amount
(million)		Effective
rate
%		Borrowings
amount
(million)		Effective
rate
%		Borrowings amount (million)
$51 7.4 — — 63 7.0 1,717 4.1 1,831 
AUD— — 43 1.5 — — — — 43 
BRL1 5.7 — — — — — — 1 
TZS516 12.5 — — 107,163 12.5 — — 107,679 

The table above is based on the borrowings as at 31 December 2021 including borrowing cost and accrued interest but excludes any fair value adjustments.




304

Interest rate risk
Fixed for less than one yearFixed for between one and three yearsFixed for greater than three years
CurrencyBorrowings
amount
(million)		Effective
rate
%		Borrowings
amount
(million)		Effective
rate
%		Borrowings
amount
(million)		Effective
rate
%		Total
Borrowings
amount
(million)
$51 7.4 63 7.0 1,717 4.1 1,831 
AUD— — 43 1.5 — — 43 
BRL1 5.7 — — — — 1 
TZS516 12.5 107,163 12.5— — 107,679 

The table above is based on the borrowings as at 31 December 2021 including borrowing cost and accrued interest but excludes any fair value adjustments.

Non-performance risk

Realisation of contracts is dependent upon counterparts’ performance. The group has not obtained collateral or other security to support the financial instruments subject to non-performance risk, but the credit standing of counterparts was monitored on a regular basis throughout the year. The group spreads its business over a number of financial and banking institutions to minimise the risk of potential non-performance. Furthermore, the approval process of counterparts and the limits applied to each counterpart were monitored by the board of directors. Where possible, ISDA netting agreements were put in place.

The combined maximum credit risk exposure at balance sheet date amounts to $1,300 million in 2021 for financial assets (2020: $1,500 million) and nil million for financial guarantees (2020: nil). Credit risk exposure netted by open derivative positions with counterparts was nil (2020: nil). No set-off is applied to balance sheet amounts due to the different maturity profiles of assets and liabilities.

Fair value of financial instruments

The estimated fair values of financial instruments are determined at discrete points in time based on relevant market information. The estimated fair values of the group’s financial instruments, as measured at 31 December, are as follows (assets (liabilities)):
20212020
Carrying
Amount		Fair
value		Carrying
Amount		Fair
value
(millions)$$$$
Cash and cash equivalents1,154 1,154 1,330 1,330 
Restricted cash58 58 73 73 
Deferred compensation asset25 25 28 28 
Short-term borrowings(51)(51)(142)(142)
Long-term borrowings(1,858)(1,960)(1,789)(1,989)
Listed investments - FVTOCI116 116 186 186 
Listed and unlisted investments1 1 2 2 

The following methods and assumptions were used to estimate the fair value of each class of financial instrument:

Cash restricted for use, cash and cash equivalents

The carrying amounts approximate fair value.

Trade and other receivables and trade and other payables

The carrying amounts approximate fair value because of the short-term duration of these instruments, except for the deferred compensation asset which is carried at fair value in level 3 of the fair value hierarchy.

Other investments

Listed equity investments classified as FVTOCI and FVTPL are carried at fair value in level 1 of the fair value hierarchy.






305

Borrowings

The interest rate on borrowings is reset on a short-term floating rate basis, and accordingly the carrying amount is considered to approximate fair value.

Derivatives

The fair values of volatility-based instruments (i.e. options) are estimated based on market prices, volatilities, credit risk and interest rates for the periods under review.

Gain (loss) on non-hedge derivatives and other commodity contracts recognised
Year ended 31 December
20212020
(millions)$$
Other commodity contracts(1)
— (19)

(1)    Excluding the commodity contracts transferred to held for sale liabilities in 2020.

Foreign exchange risk

Foreign exchange risk arises on financial instruments that are denominated in a foreign currency.

The following table discloses the approximate foreign exchange risk sensitivities of borrowings at 31 December 2021 (actual changes in the timing and amount of the following variables may differ from the assumed changes below).
2021
Change in
exchange rate
Change in
borrowings
Total
$M
Debt
TZS denominated (TZS/$)Spot (+TZS250)(5)
AUD denominated (AUD/$)Spot (+AUD0.1)(2)
2021
Change in
exchange rate		Change in
borrowings
Total
$M
Debt
TZS denominated (TZS/$)Spot (-TZS250)6 
AUD denominated (AUD/$)Spot (-AUD0.1)2 




306

ITEM 12:    DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES


12A.    DEBT SECURITIES

Not applicable


12B.    WARRANTS AND RIGHTS

Not applicable


12C.    OTHER SECURITIES

Not applicable


12D.    AMERICAN DEPOSITARY SHARES


12D.3.    DEPOSITARY FEES AND CHARGES


AngloGold Ashanti’s American Depositary Shares, or ADSs, each representing one of AngloGold Ashanti’s ordinary shares, are traded on the New York Stock Exchange under the symbol “AU.” The ADSs are evidenced by American Depositary Receipts, or ADRs, issued by The Bank of New York Mellon, as Depositary under the Amended and Restated Deposit Agreement dated as of 3 June 2008, among AngloGold Ashanti Limited, The Bank of New York Mellon and owners and beneficial owners of from time to time of ADRs. ADS holders may have to pay the following service fees to the Depositary:

ServiceFees (USD)
Issuance of ADSsUp to 5 cents per ADS(1)
Cancellation of ADSsUp to 5 cents per ADS(1)
Distribution of cash dividends or other cash distributionsUp to 2 cents per ADS(2)
Distribution of securities pursuant to
(i) stock dividends, free stock distributions or
(ii) exercises of rights to purchase additional ADSsUp to 5 cents per ADS(2)
ADR Depositary Services feeUp to 2 cents per year(2)
(1)These fees are typically paid to the Depositary by the brokers on behalf of their clients receiving the newly-issued ADSs from the Depositary and by the brokers on behalf of their clients delivering the ADSs to the Depositary for cancellation. The brokers in turn charge these transaction fees to their clients.
(2)In practice, the Depositary has not collected these fees. If collected, such fees are offset against the related distribution made to the ADR holder.

In addition, ADS holders are responsible for certain fees and expenses incurred by the Depositary on their behalf including (1) taxes and other governmental charges, (2) such registration fees as may from time to time be in effect for the registration of transfers of ordinary shares generally on the share register and applicable to transfers of ordinary shares to the name of the Depositary or its nominee or the Custodian or its nominee on the making of deposits or withdrawals, and (3) such cable, telex and facsimile transmission expenses as are expressly incurred by the Depositary in the conversion of foreign currency.

Fees and other charges payable by the Depositary, any of the Depositary’s agents, including the Custodian, or the agents of the Depositary’s agents in connection with the servicing of Shares or other Deposited Securities, shall be collected at the sole discretion of the Depositary by billing such owners for such charge or by deducting such charge from one or more cash dividends or other cash distributions.

For further information, refer to “Item 10C: Material Contracts—The Deposit Agreement”.

12D.4.    DEPOSITARY PAYMENTS FOR 2021

For the year ended 31 December 2021, The Bank of New York Mellon, as Depositary, reimbursed AngloGold Ashanti an amount of $1,083,405 (2020: $1,057,722) mainly for investor relations related expenses.





307

PART II
ITEM 13:    DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES

None.



308

ITEM 14:    MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS

None.




309

ITEM 15: CONTROLS AND PROCEDURES


(a)    Disclosure Controls and Procedures: As of 31 December 2021, (the “Evaluation Date”), the company, under the supervision and with the participation of its management, including the chief executive officer and chief financial officer has evaluated the effectiveness of the company’s disclosure controls and procedures (as defined in Rules 13a - 15(e) and 15d - 15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)). Based on such evaluation, the chief executive officer and chief financial officer have concluded that, as of the Evaluation Date, the company’s disclosure controls and procedures are effective, and are reasonably designed to ensure that information required to be disclosed by the company in reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the Securities and Exchange Commission. These disclosure controls and procedures include without limitation, controls and procedures designed to ensure that information required to be disclosed by the company in reports that it files or submits under the Exchange Act is accumulated and communicated to the company’s management, including its chief executive officer and chief financial officer, as appropriate to allow timely decisions regarding disclosure.

(b)    Management’s Annual Report on Internal Control over Financial Reporting: Management is responsible for establishing and maintaining adequate internal control over financial reporting for the company, as defined in the Exchange Act Rule 13a - 15(f) and 15d -15(f). The company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of the company’s financial statements for external purposes in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board.

The company’s internal control over financial reporting includes those policies and procedures that:
•Pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect transactions and dispositions of the assets of the company;
•Provide reasonable assurance that the transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of management and the Directors of the company; and
•Provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Projections of any evaluation of effectiveness to future periods is subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with policies and procedures may deteriorate.

The company’s management assessed the effectiveness of the company’s internal control over financial reporting as of the Evaluation Date. In making this assessment, management used the criteria set forth by the Committee of Sponsoring Organisations of the Treadway Commission (COSO) in Internal Control - Integrated Framework and related illustrative documents released on 14 May 2013. Based on this assessment, and using those criteria, management concluded that the company’s internal control over financial reporting was effective as of the Evaluation Date.

(c)    Changes in Internal Control over Financial Reporting: The Company maintains a system of internal control over financial reporting that is designed to provide reasonable assurance that its books and records accurately reflect transactions and that established policies and procedures are followed.

There have been no changes in the company’s internal control over financial reporting identified in connection with the evaluation required by paragraph (d) of Exchange Act Rule 13(a) - 15 during the year ended 31 December 2018:2021 that have materially affected, or are reasonably likely to materially affect, the company’s internal control over financial reporting.

At 31 December2018
(in million)Purchases from related party
$
Purchases of goods and services from related parties
Rand Refinery (Pty) Limited15
Margaret Water Company4
19
See also “Item 3D: Risk Factors—AngloGold Ashanti’s inability to maintain an effective system of internal control over financial reporting may have an adverse effect on investors’ confidence in the reliability of its financial statements.”


Amounts due by joint ventures and associates arising from purchases(d)    Attestation Report of goods and services are unsecured and non-interest bearing.the Registered Public Accounting Firm: The Company’s independent registered accounting firm, Ernst & Young Inc., has issued an attestation report on the effectiveness of the company’s internal control over financial reporting. This report appears below.

At 31 December2018
(in million)
Sales and
services
rendered to
related parties


$
Sales and services rendered to related parties
Société d’Exploitation des Mines d’Or de Sadiola S.A.7
Gramalote3
10


/s/ KC Ramon
As at 31 December 2018 the outstanding balances arising from the sale of goods and services due by associates is $19 million.Kandimathie Christine Ramon

Chief Financial Officer
As at 31 December 2018 there are no outstanding balances arising from loans owed to related parties.



/s/ A Calderon

Alberto Calderon



7C.    INTERESTS OF EXPERTS AND COUNSEL

Not applicable.

ITEM 8: FINANCIAL INFORMATION


8A.    CONSOLIDATED FINANCIAL STATEMENTS AND OTHER FINANCIAL INFORMATION

See “Item 18: Financial Statements”.



LEGAL PROCEEDINGS


There is no material proceeding in which a director, officer or affiliate of AngloGold Ashanti is either a party adverse or has a material interest adverse to the company.


In addition to the proceedings described below, the company becomes involved, from time to time, in various claims, legal proceedings and complaints incidental to the ordinary course of its business.



TAX MATTERS


•The State of Minas Gerais v. Mineração Serra Grande S.A. (MSG): In Brazil, MSG received a tax assessment in October 2003 from the State of Minas Gerais related to VAT on gold bullion transfers. The tax administrators rejected MSG’s appeal against the assessment. MSG is now appealing the dismissal of the case to the State Court of Minas Gerais. The assessment is approximately $12$9 million. Any possible payment by MSG would be set off by an indemnity from Kinross Gold Corporation (Kinross) of $7.5$5 million provided for as part of the company’s acquisition of Kinross’ interest in MSG in 2012.
The matter is currently pending in the State Court of Minas Gerais.


•Brazilian tax authorities v. AngloGold Ashanti BrazilCórrego do Sítio Mineração (AABM)SA and Mineração Serra Grande S.A. (MSG): AngloGold Ashanti’s subsidiaries in Brazil, including AABM,AGA Mineração (formerly AngloGold Ashanti Brasil Mineração Ltda) and MSG, are involved in various disputes with the Brazilian tax authorities. These disputes date back to 2007 and involve federal tax assessments including income tax, royalties, social contributions, VAT and annual property tax. Various new claims, relating to VAT on diesel and consumables, for $12 million were assessed by management during the second half of 2020 and classified as possible claims, based on external legal opinions. Collectively, the total possible amount involved across all disputes is approximately $21$45 million.


Notice from the •Colombian Tax Office (DIAN) tov. AngloGold Ashanti Colombia S.A.S.A.S. (AGAC) and Gramalote Colombia Limited (Gramalote): In January Since 2013, AGAC received noticevarious notices from the DIAN that it disagreed with the company’s tax treatment of certain items in theits 2010, 2011, 2013 and 20112014 income and equity tax returns. On 23 October 2013, AGAC receivedreturns (including the treatment of exploration expenditure). The official assessments from the DIAN which established that an estimated additional tax of $20 million will be payable if thefor those tax returns are amended.calculate additional taxes of $17 million. Penalties and interest for thesuch additional taxes may amountamounted to $115 million. The company$95 million as of 31 December 2021. However, AGAC believes that the DIAN has applied the tax legislation incorrectly. AGACincorrectly and subsequently challenged the DIAN’s ruling by filingfiled lawsuits in March and April 2015, before the Administrative Court of Cundinamarca (the trial court for tax litigation). Closing arguments on challenging each of the DIAN’s rulings in respect of those tax disputes were presented in February and June 2017. On 23returns. In April 2018, the Administrative Court of Cundinamarca denied AGAC’s arguments with respect to the 2011 income and equity tax litigation. AGAC subsequently appealed this judgmentjudgement to the Supreme CourtCouncil of Colombia.State of Colombia (the highest court for tax matters) where the appeal is currently pending. A final judgement could take several years. A determination byThe company’s other lawsuits with respect to its 2010, 2013 and 2014 income and equity tax returns are still pending before the Administrative Court with respect to the 2010 income tax litigation is still pending. In addition, in January 2018, AGACof Cundinamarca.

Since 2019, Gramalote also received noticevarious notices from the DIAN that it also disagreed with AGAC’sits 2013 and 2014 income and equity tax returns on the same basis as the 2010 and 2011abovementioned AGAC returns. The official assessments from the DIAN for those tax returns calculatingcalculate additional tax along with penaltiestaxes of less than $100,000. Penalties and interest for such additional taxes amounted to $10 million as of $9 million. On 2131 December 2018, AGAC2021. However, Gramalote also believes that the DIAN has applied the tax legislation incorrectly and subsequently filed a lawsuitlawsuits before the Administrative Court of Cundinamarca challenging this allegation. each of the DIAN’s rulings in respect of those tax returns. Gramalote’s lawsuits with respect to its 2013 and 2014 income and equity tax returns are still pending before the Administrative Court of Cundinamarca.

The mattertotal amount claimed by the DIAN, related to the above tax matters, amounted to $122 million of which $105 million related to penalties and interest as of 31 December 2021. Following a judgment of the Council of State in July 2019 holding that duplicate penalties may not be charged, the company expects that certain penalties will likely be waived, reducing the overall exposure by $48 million to $74 million in respect of those tax matters. In addition, from 2017 onwards, the deduction of exploration costs is currently pending.
prohibited following a change in Colombian tax legislation. As a result, exploration costs have been treated in accordance with the amended tax legislation subsequent to that date.


•Argentina Tax Authority (AFIP) v. Cerro Vanguardia S.A. (CVSA): On 12 In July 2013, CVSA received a notification from the AFIP requesting corrections to the 2007, 2008 and 2009 income tax returns of about $3$1.1 million relating to the non-deduction of tax losses previously claimed on hedge contracts. The AFIP is of the view that the financial derivatives could not be considered as hedge contracts, as hedge contract losses could only be offset against gains derived from the same kind of hedging contracts. Penalties and interest on the disputed amounts are estimated at a further $11$5.5 million. CVSA and AFIP have corresponded on this issue over the past several years, and the Argentinian tax authorities continue to assert their position regarding the use of the financial derivatives. CVSA filed an appeal with the Tax Court on 19in June 2015, and the parties submitted their final reports in July 2017. The matter is pending with the Tax Court.







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•Ghanaian tax authorities v. AngloGold Ashanti (Ghana) Limited (AGAG): In Ghana, AGAGreceived tax assessments of $4.4$9 million as of 31 December 20182021 in respect of the 2004-2014 tax years, following an audit by the Ghanaian tax authorities related to withholding taxes on payments to non-resident persons. AGAG raised objections with the Ghanaian tax authorities and believes that the withholding taxes were not properly assessed. On several occasions, most recently in 2017, AGAG met with the Commissioner-General of the Ghana Revenue Authority and provided its position in writing together with the relevant supporting documentation. AGAG has yet to receive a response from the Commissioner-General.

SOUTH AFRICA

Silicosis litigation: On 3 March 2011, in Mankayi vs. AngloGold Ashanti, the Constitutional Court of South Africa held that section 35(1) of the Compensation for Occupational Injuries and Diseases Act, 1993 does not cover an “employee” who qualifies for compensation in respect of “compensable diseases” under the Occupational Diseases in Mines and Works Act, 1973 (ODMWA). This judgement allows such qualifying employee to pursue a civil claim for damages against the employer. Following the Constitutional Court decision, AngloGold Ashanti has become subject to numerous claims relating to silicosis and other Occupational Lung Diseases (OLD), including class actions and individual claims.

In November 2014, Anglo American South Africa, AngloGold Ashanti, Gold Fields Limited, Harmony Gold Mining Company Limited and Sibanye Gold Limited formed an industry working group on OLD (OLD Working Group) to address issues relating

to compensation and medical care for occupational lung disease in the gold mining industry in South Africa. The working group now also includes African Rainbow Minerals (ARM).

AngloGold Ashanti, along with other mining companies including Anglo American South Africa, ARM, Gold Fields Limited, Harmony Gold Mining Company Limited, DRDGold Limited, Randgold and Exploration Company Limited, and Sibanye Gold Limited, were served with a consolidated class action application on 21 August 2013.  On 13 May 2016, the South Gauteng High Court of South Africa ruled in favour of the applicants and found that there were sufficient common issues to certify two industry-wide classes: a Silicosis Class and a Tuberculosis Class.  On 3 June 2016, AngloGold Ashanti, together with certain of the other mining companies, filed an application with the High Court for leave to appeal to the Supreme Court of Appeal (SCA).  On 13 September 2016, the SCA granted the mining companies leave to appeal the entire High Court ruling to the SCA. On 10 January 2018, in response to a postponement request from all parties involved in the appeal due to the advanced stage of settlement negotiations, the Registrar of the SCA postponed the hearing date until further notice.

Settlement of the consolidated class action litigation was reached on 3 May 2018, after three years of extensive negotiations between the OLD Working Group companies and the lawyers of the claimants. On 13 December 2018, the High Court issued a Court order setting out the process of how members of the settling classes and any interested parties can object to the proposed settlement. In the coming months, the High Court is scheduled to hold a hearing during which the Court will consider arguments by the parties to the settlement as well as arguments by other interested parties who are granted leave by the Court to participate, including parties filing objections to the proposed settlement. The purpose of this second hearing is to determine the fairness and reasonableness of the settlement.

If the settlement is approved by the Court and all its other conditions are met, a trust (Tshiamiso Trust) will be established and will exist for a minimum of 13 years. Eligible claimants will be able to seek specified payment from the Tshiamiso Trust and the amount of monetary compensation will vary depending on the nature and degree of the disease. As of 31 December 2018, AngloGold Ashanti has recorded a provision of $63 million to cover the estimated settlement costs and related expenditure of the silicosis litigation.

It is possible that additional class actions and/or individual claims relating to silicosis and/or other OLD will be filed against AngloGold Ashanti in the future.  AngloGold Ashanti will defend all current and subsequently filed claims on their merits. Should AngloGold Ashanti be unsuccessful in defending any such claims, or in otherwise favourably resolving perceived deficiencies in the national occupational disease compensation framework that were identified in the earlier decision by the Constitutional Court, such matters would have an adverse effect on its financial position, which could be material.



COLOMBIA



•Santa María-Montecristo and La Colosa class action lawsuits: Four classlawsuits: Class action lawsuits are pendinghave been filed in relation to each of AngloGold Ashanti Colombia S.A.S.A.S.’s (AGAC) Santa Maria-MontecristoMaría-Montecristo and La Colosa projects. Each lawsuitof the two lawsuits aims to stop exploration and mining in certain restricted areas affected by the projects due to environmental concerns or alleged breachesconcerns.

In respect of environmental laws. In one of these lawsuits,the Santa María-Montecristo class action lawsuit, in September 2011, the Administrative Court of Tolima granted one of the plaintiffplaintiffs a preliminary injunction in September 2011, suspending theAGAC’s mining concession contracts in relation to this project. AGAC has challenged this injunction, nevertheless, it remains in place during the course of the Santa Maria-Montecristo project.court proceedings. In May 2019, the Administrative Court of Tolima ruled that a technical study be prepared to define the places in which mining activities could be performed in the Combeima canyon without posing any threat to the water reservoirs of Ibagué, the capital of the Tolima department. In September 2020, the Council of State of Colombia (the highest court for administrative matters) on appeal overruled the decision of the Administrative Court of Tolima. The Council of State’s decision, which is final and not subject to further appeal, determined that AGAC, as concessionaire, has a right to develop the project if it can demonstrate to the mining and environmental authorities on the basis of technical studies that its mining exploration and, eventually, exploitation activities, will not impact the water resources of the Coello River basin and its tributaries. Until such time, the injunction remains in place and has been challenged by AGAC; however, it is not a critical path item for the project.place.

The consolidated La Colosa class action lawsuit originally consisted of four separate class actions. In another lawsuit, on 10relation to this project, in October 2016, Tolima’s Administrative Court ordered that a technical study be prepared by April 2017 by a panel of seven experts (selected by the plaintiff, AGAC, universities, the Colombian government and an NGO) to determine whether the La Colosa project presents a “threat” to the environment during its exploration phase. AGAC successfully appealed the order to prepare the technical study and the order has been temporarily suspended, pending resolution by the Council of State (appellate court). In another of the lawsuits, on 4 December 2017, Ibagué’s Third Administrative Court ordered that aanother technical study, similar to the one described in the October 2016 order, be prepared for the La Colosa project. AGAC also successfully appealed this order onboth orders. In September 2018, Tolima’s Administrative Court consolidated all class actions in relation to the ground that the identical issue (La Colosa)La Colosa project into one single class action lawsuit which is alreadycurrently pending before the Council of State. The orders to prepare the technical studies have been temporarily suspended pending resolution by the Council of State. If AGAC’s appeal before the Council of State is not successful, the company may have to perform one or more technical studies in relation to the La Colosa project. If the studies were to conclude that a “threat” exists, certain development activities at the La Colosa project may be suspended.


WhileFurther, while the plaintiffs in all four casesthe La Colosa class action have petitioned the courts to cancel concession contracts for the mining projects,concession contracts, the company believes that courts and judgesthe judiciary system in Colombia dodoes not have the authority to order such cancellations.cancellation. Such power, by law, vests solely in the Colombian government which, through the relevant Colombian mining authority, whichauthorities, has the discretion to declare concessions void if a contractorconcession holder breaches applicable environmental laws or regulations. To date, the company is not aware of theThe Colombian government, having ever declaredas the authority granting the mining concession contracts, is also a concession void for these reasons.defendant in this class action lawsuit together with AGAC. AGAC continues to oppose, through a variety of integrated legal and political strategies, the class action lawsuitslawsuit that have beenwas filed against it. IfHowever, if the plaintiffs prevail and AGAC’sAGAC is unable to perform its core concession contracts are cancelled,as a result of the judicial decision, the company would be required to abandon the La Colosa project and all of AGAC’s other existing mining concession contracts, and pending proposals for new mining concession contracts would also be cancelled. Given the inherent legal and factual uncertainties with respect to the pending claims, no reliable estimate can be made for the obligation.project.


•Cortolima’s injunction against AGACAngloGold Ashanti Colombia S.A.S. (AGAC): On 11 In March 2013, Cortolima, a regional environmental authority in Colombia,the Tolima department, issued a regulatory injunction against AGAC alleging, among other things, that in relation to certain of AGAC’s La Colosa explorationmine design-related activities AGAC (1) did not provide timely notice toin the government prior to performing certain exploration activities, and

(2)municipality of Piedras, AGAC engaged in drilling and other activities that could have negative effects on the environment. On 22 March 2013, AGAC challenged theThe injunction seeking its annulment and the restorationdid not include any allegation that AGAC’s actions actually caused any environmental damages in Piedras. AGAC’s challenge of AGAC’s rights to continue exploration activities in the area. The request to annul the injunction was denied by the Director of Cortolima, and AGAC is continuing with its plans to challenge the injunction through a variety of legal actions. On 31unsuccessful before Cortolima. In August 2013, AGAC presentedinitiated legal proceedings before the Council of State of Colombia (the highest court for administrative matters) seeking annulment of the injunction as well as restoration of its claim forrights to continue its activities in the annulment and rights re-establishment.  Thisarea. In November 2019, the Council of State ruled that the competent judicial authority to decide on this matter is pending.the Administrative Court of Tolima and referred the case to that court. In July 2020, the Twelfth Administrative Court of Tolima ruled that since the injunction is a preliminary and temporary measure imposed as part of the administrative approval process within Cortolima and not a final decision, it is not yet amenable to administrative judicial review. On 29 July 2021, this decision was reversed on appeal by the Administrative Superior Court of Tolima in a ruling that such injunctions are amenable to administrative judicial review. The appellate court ordered the Twelfth Administrative Court of Tolima to review the matter and issue a decision thereon. Consequently, the Twelfth Administrative Court of Tolima admitted the case and a first hearing is scheduled to be held on 21 April 2022. The company expects that a final resolution of this matter will include payment of a penalty by AGAC in an amount that is not expected to be material. While the injunction remains in place, AGAC is not able to engage in certain of its activities related to the La Colosa project.





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•Piedras and Cajamarca: popular consultations: In 2013, the Council forlocal council of the city of Piedras, near the La Colosa project, organised a referendum attemptingpopular consultation to ban all mining activities in Piedras.  This referendum doesPiedras (Piedras popular consultation), the result of which was validated by the Administrative Court of Tolima as part of an administrative procedure. Although the Piedras popular consultation did not have an immediate impact on the La Colosa project. However,project (due to its distant location from the project), AGAC believes this referendum isthe Piedras popular consultation was in violation of federalnational law in Colombia. The referendum was subsequently validated by the Administrative Court in Tolima (the local department in which Piedras is located).In 2013, AGAC subsequently filed a request for annulment of the referendum with the Second Administrative Court of Ibagué and a ‘tutela’ action (a legal action alleging a violation of AGAC’s constitutional rights) with the Council of State of Colombia (the highest court for administrative issues). On 21 AugustIn 2014, AGAC’s ‘tutela’ action was dismissed by the Council of State dismissed the ‘tutela’ action for lack of standing which AGAC appealed to a different division of the Council of State. On 11 December 2014, that division of the Council of State affirmed the earlier dismissal on the grounds that AGAC did not have mining tenements in Piedras. However,In addition, in the same ruling the Council of State recognised that the local council of Piedras did not follow the correct procedure when it organised the 2013 referendum. AGAC’s2015, AGAC filed a request for annulment of the referendum is pending.
administrative acts adopted by the local authorities in furtherance of the results of the Piedras popular consultation, which was rejected by the Second Administrative Court of Ibagué. AGAC subsequently appealed this ruling. On 22 July 2021, AGAC was notified that the Administrative Superior Court of Tolima ruled on appeal that, in light of the 2018 decision of the Constitutional Court of Colombia (the highest court for constitutional issues) holding that local municipalities or regions are not entitled to veto mining activities through popular consultations (as further described below), the results of the Piedras popular consultation, and the administrative acts adopted in furtherance thereof, were not enforceable. On 13 September 2021, a third party filed a ‘tutela’ action with the Council of State arguing that the Administrative Superior Court of Tolima did not have the authority to determine that the results of the Piedras popular consultation, and the administrative acts adopted in furtherance thereof, were not enforceable. On 15 December 2021, the Council of State dismissed this ‘tutela’ action for lack of standing.


On 26In March 2017, the residents of the municipality of Cajamarca also voted in a referendumpopular consultation to disapprove mining projects in the municipality, including the La Colosa.Colosa project (Cajamarca popular consultation). However, the Mining Minister of Colombia subsequently publicly confirmed that Cajamarca’s vote does not apply retroactively so it doesimplying the Cajamarca popular consultation did not have an immediate impact on AGAC’s rights with respect to the La Colosa project. On 27In April 2017, AGAC nevertheless suspended all exploration activities at the La Colosa project until there is more certainty about mining activity in Colombia. On 11 October 2018, the Colombian Constitutional Court issued a ruling SU-095-2018 stating that local municipalities or regions were not entitled to veto mining activities through popular consultations (referendums).consultations. The Constitutional Court also ordered the Colombiannational legislative body, the Congress of Colombia, to enact a law within two years to ensure that local communities and groups are adequately consulted in the approval of mining activities in accordance with specific criteria set out in its ruling. Subsequently, a group of citizens submitted an annulment claim before the Administrative Court of Cundinamarca to cancel AGAC’s mining contract in Cajamarca on the grounds of the results of the Cajamarca popular consultation. After having admitted the annulment claim in December 2019, the Administrative Court of Cundinamarca dismissed the plaintiffs’ claim on 26 May 2021 on procedural grounds. The plaintiffs subsequently appealed this decision and the appeal is currently pending before the Council of State.


•La Colosa Human Rights Litigation:Litigation: In November 2014, the Personero (Ombudsman) of Ibagué, the capital of the Tolima department, filed suita petition against the Colombian government before the Inter-American Commission on Human Rights (Commission), based in Washington, D.C., for alleged human rights violations protected by the American Convention on Human Rights (Convention) which has been ratified by Colombia along with many other Central and South American countries. The Commission has the power to refer a case to the Inter-American Court of Human Rights. This CourtRights (Court) which is an autonomous judicial institution based in San José, Costa Rica whose purpose is the application and interpretation of the American Convention on Human Rights (Colombia, along with many other Central and South American countries, has ratified this Convention).Convention. The suitpetition alleges that the Colombian government has faileddenied justice to protect the interestsPersonero as a result of the peoplefailure of Ibagué by issuing permits to AGAC for the La Colosa project and by failingColombian judiciary to resolve the issues raised in two class actions that have been pending for an extendedfiled by him before the local Colombian administrative courts within a reasonable period of time. Although AGAC is not a party to the suit, its outcome is nevertheless important to the development of the La Colosa project. The first step inCommission currently has not accepted nor referred the litigation process is forcase to the Court to decide whether to accept the case.Court. If the case iswould be accepted or referred in the future, the Colombian government will have to defend itself against the lawsuit and will be bound by the findings of the Court. AGAC continues to regularly follow up with the Colombian government for updates.

•Paramo Delimitation:In November 2016, the Colombian government issued Resolution 1987 which delineatesdelineating certain wetlands or moorlands as environmentally important and establishes protected areas, andwhich designation includes certain areas in and around the La Colosa project. In these areas there are limitations, or in some instances outright bans, on mining and mining-related activities. These limitations and bans could potentially adversely impact the design, operations and production of the mining project at the La Colosa project. On 12In June 2017, AGAC filed suit against the Colombian Ministry of the Environment in the Administrative TribunalCourt of CajamarcaCundinamarca to challenge the paramo delimitationannul Resolution 1987 on technical and other grounds. The lawsuit was admitted in April 2019. The Ministry of the Environment, as defendant in this action, is pending admission.
expected to file its response to the annulment claim.


•Zonte Metals:Metals: A Canadian junior mining company, Zonte Metals, filed applications for title to certain corridors, or small slivers of land, overlaying sections of the Gramalote project. The Secretary of Mines of Antioquia, the department in Antioquiawhich the Gramalote project is located, denied the applications filed by Zonte Metals. However, Zonte Metals then filed a claim against the Colombian National Mining Agency (ANM) and the Antioquia Secretary of Mines before the Colombian Council of State of Colombia, by which it seeks to (i) revoke the resolution that denied its application and (ii) obtain the rights over the corridors requested in its application. The Council of State subsequently enjoined the Antioquia Secretary of Mines and AGACGramalote Colombia Limited (Gramalote) from moving forward onprogressing a pending application to integrate the disputed corridors with ourGramalote’s tenement. The Antioquia Secretary of Mines has filed its response to the Zonte Metals claim, which includes arguments



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aligned with the interests and position of Gramalote. On 4In September 2017, the Council of State approved AGAC’sGramalote’s request to be made an interested party to the lawsuit. On 10 April 2018,lawsuit, but it rejected Gramalote’s request to join the Antioquia Secretary of Mines as a co-defendant in August 2019. In January 2019, the Council of State denied AGAC’s request to be recognized as an indispensable part of the defendant party and recognized AGAC only as an interested party. AGAC appealed this decision on 3 May 2018 and this appeal is pending. On 5 July 2018,also re-affirmed that the Council of State ruled thatis the competent judicial authority to decide onhear the litigationmatter. The date for the first hearing is Antioquia’s Administrative Court. That ruling was appealed by AGAC on 1 August 2018 in order to avoid a transfer of the case and to maintain the Council of State as the competent court. That appeal iscurrently pending.









GHANA


•Pompora Treatment Plant Litigation: On 2In April 2013, AGAGAngloGold Ashanti (Ghana) Limited (AGAG) received a summons from Abdul Waliyu and 152 others in which the plaintiffs allege that they were or are residents of the Obuasi municipality or its suburbs and that their health has been adversely affected by emissions and/or other environmental impacts arising in connection with the current and/or historical operations of the Pompora Treatment Plant (PTP), which was decommissioned in 2000. The plaintiffs’ alleged injuries include respiratory infections, skin diseases and certain cancers. The plaintiffs subsequently did not timely file their application for directions but AGAG intends to allow some time to pass prior to applying to have the matter dismissed for want of prosecution. On 24In February 2014, executive members of the PTP (AGAG) Smoke Effect Association (PASEA), sued AGAG by themselves and on behalf of their members (undisclosed number) on grounds similar to those discussed above, as well as economic hardships resulting from the failure of their crops. This matter has been adjourned indefinitely.

•Mining and Building Contractors Limited: In October 2011, AGAG intends to allow some time to pass prior to applying to haveterminated Mining and Building Contractors Limited’s (MBC) underground development agreement, construction on bulkheads agreement and diamond drilling agreement at Obuasi mine. The parties reached agreement on the terms of the separation and concluded a separation agreement in November 2012. In February 2014, AGAG was served with a demand issued by MBC claiming a total of $97 million. In December 2015, the proceedings were stayed in the Ghanaian High Court pending arbitration. In February 2016, MBC submitted the matter struckto arbitration. The arbitration panel has been constituted and held an arbitration management meeting to address initial procedural matters in July 2019. In May 2020, the Ghana Arbitration Centre granted MBC’s request to stay the arbitral proceedings indefinitely to enable it and AGAG to explore possible settlement. On 12 April 2021, the parties executed a settlement agreement to resolve the matter at no cost to either of the parties.

•Ghana Mining Licenses Litigation: In January 2019, AGAG and AngloGold Ashanti (Iduapriem) Limited (AAIL), along with other Ghanaian mining companies, were served with writs by two members of the Ghanaian Parliament seeking to invoke the jurisdiction of the Ghanaian Supreme Court (highest court in Ghana) for a declaration that the mining companies were not entitled to carry out for wantany exploitation of prosecution.

•
Mining and Building Contractors Limited: On 11 October 2011, AGAG terminated Mining and Building Contractors Limited’s (MBC) underground development agreement, construction on bulkheads agreement and diamond drilling agreement at Obuasi mine. The parties reached agreement on the terms of the separation and concluded a separation agreement on 8 November 2012. On 20February 2014, AGAG was served with a demand issued by MBC claiming a total of $97 million. In December 2015, the proceedings were stayed in the Ghanaian High Court pending arbitration. In February 2016, MBC submitted the matter to arbitration. On 12 July 2018, the Ghana Arbitration Centre notified AGAG that MBC had appointed an arbitrator and AGAG subsequently selected its own arbitrator. The arbitration is pending.

Obuasi Arbitration:On 8 April 2016, AGAG filed a request for arbitration againstminerals otherwise allowed under their relevant mining leases unless the governmentleases had been timely ratified by the Parliament of Ghana. AGAGIn January 2019, the Ghanaian Attorney General filed this requestits statement of case, agreeing with the International Centre for Settlementposition of Investment Disputes (ICSID), an international arbitration institution headquartered in Washington, D.C., which facilitates dispute resolution between international investorsthe plaintiffs (that the mining leases required parliamentary ratification) and host states. AGAG was seeking relief fromrequesting that the Supreme Court order the mining companies to pay the Ghanaian government all revenue related to mining activities accrued during the time such mining leases were unratified. In April 2019, AGAG and AAIL, in coordination with the other mining companies, filed their statement of case. The Supreme Court has not yet set a date for breaching the mining lease relatingfirst hearing to commence the Obuasi mine by withdrawing military personnel from the Obuasi mine and subsequently failing to restore law and order. The dispute has now been resolved to the parties’ mutual satisfaction and the arbitration proceedings have been discontinued.
case.



GUINEA


•Government of Guinea (National Claim Commission) v. Société AngloGold Ashanti Goldfields de Guinée SA (SAG): A national claim recovery commission established by the government of Guinea has demanded that SAG pay $43 million in dividends and penalties that would allegedly have been owed to the government of Guinea for the accounting years 2004 - 2007. SAG opposes the claim. Even though both parties had originally decided to submit their dispute to an independent audit firm to be appointed by a common accord, the independent audit firm was never appointed. In December 2010, the national claim recovery commission was disbanded and the matter was turned over to the Inspector General of the Ministry of Finance of Guinea. This matter has been dormant since it was handed over to the Inspector General.

NORTH AMERICA

Designated Matters under the Stock Purchase Agreement between AngloGold Ashanti and Newmont Mining Corporation (Newmont): On 19 October 2017, Newmont filed a lawsuit in New York federal court against AngloGold Ashanti and certain related parties, alleging that AngloGold Ashanti and such parties did not provide Newmont with certain material information related to a gold-ore processing mill located at AngloGold Ashanti’s Cripple Creek & Victor Gold Mining Company (CC&V) in 2015 during the negotiation and sale of CC&V to Newmont. AngloGold Ashanti believes the lawsuit is without merit and continues to vigorously defend against it. The matter is proceeding.


TANZANIA


•Geita Gold Mining Limited (GGM): In January 2007, Jackson Manyelo and other plaintiffs filed a suit against GGM in the Mwanza High Court alleging that they were affected by blasting activities in the Katoma area carried out by GGM and had suffered damages in the amount of TZS9.6 billion (approximately $6 million). On 30In April 2015, the High Court issued a judgement in favour of GGM. In 2016, plaintiffs appealed to the Court of Appeal, where the matter is pending.


GGM•Geita Gold Mining Limited (GGM) and Samax Resources Limited (Samax) v. Government of Tanzania: On 13Tanzania: In July 2017, GGM and Samax Resources Limited (Samax) filed a notice of arbitration against the government of Tanzania arising from the enactment by the government of certain legislation that purports to make a number of changes to the operating environment of Tanzania’s extractive industries, including mining. The notice of arbitration was submitted in accordance with Article 12 of the Agreement for the Development of a Gold Mine at Geita, Mwanza between the government of Tanzania and each of GGM and Samax (the MDA), and under the 1976 Arbitration Rules of the United Nations Commission on International Trade Law (UNCITRAL). The Arbitral Tribunal has been duly constituted. On 15Since January 2019, at the request of the parties, requested that the arbitral proceedings behave been stayed until 12 July 2019.several times in order to afford the parties the opportunity to achieve an amicable resolution



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of the dispute and as a result of the impact of the COVID-19 pandemic. On 7 May 2021, the parties agreed to stay the arbitration proceedings for a further period of 18 months (until 7 November 2022).



•Arbitration under the United Kingdom-Tanzania Bilateral Investment Treaty (UK-Tanzania BIT):Unrelated to the arbitration proceedings under the MDA described above, on 4in September 2017, GGM and Samax, together with Cluff Oil Limited and Cluff Mineral Exploration Limited, notified the government of Tanzania in writing that the Tanzanian government’s conduct amounted to a breach of its commitments under the UK-Tanzania BIT. This notice triggered a ‘cooling-off’ period under the UK-Tanzania BIT, pursuant to which the parties had six months to achieve an amicable resolution to their dispute. Following the expiry of the ‘cooling off’ period on 4in March 2018, GGM, Samax, Cluff Oil Limited and Cluff Mineral Exploration Limited are now entitled to submit their dispute with the government of Tanzania to ICSID arbitration in accordance with the terms of the UK-Tanzania BIT.BIT to the extent that they may deem this necessary.

BRAZIL

•Public Civil Action between Mineração Serra Grande S.A. (MSG) and the Goiás State Public Prosecutor's Office (Prosecutor): In August 2019, the Prosecutor filed a public civil action against MSG in the local court of Crixás (Court) arguing that the Serra Grande tailings dam should be deactivated and decommissioned due to its size and upstream construction method. The Prosecutor requested the Court to grant an injunction ordering MSG to, inter alia, completely deactivate the tailings dam by 15 September 2021 and decommission the tailings dam, including complete removal of tailings material, by 15 September 2022. Further, the Prosecutor requested that a daily penalty of approximately $245,000 be imposed for MSG’s failure to comply with such injunction. MSG submitted its defence in September 2019 and contends that it has not violated any Brazilian laws or regulations applicable to operations of the Serra Grande tailings dam. In February 2020, the Court granted an injunction in respect of a number of the requests made by the Prosecutor. In line with the legal requirements of ANM Resolution No. 13/19, the injunction ordered the deactivation of the Serra Grande tailings dam by 15 September 2021, but did not include requirements to decommission the tailings dam, or to conduct complete removal of tailings material, by 15 September 2022. MSG filed a motion for clarification in relation to certain items of the Court’s decision. In May 2020, the Court clarified that its injunction should be interpreted in line with the legal requirements of ANM Resolution No. 13/19. In June 2020, the Prosecutor presented further technical arguments in court, reiterating its request for an injunction ordering MSG to, inter alia, deactivate the tailings dam by September 2021 and to decommission the tailings dam, including complete removal of tailings material. Afterwards, MSG filed an interlocutory appeal against the preliminary injunction granted in February 2020 and a motion for further clarification. In August 2020, both MSG and the Prosecutor filed petitions informing the Court that the parties did not wish to produce oral evidence at a hearing. On 29 May 2021, the Court upheld the preliminary injunction ordering the deactivation of the Serra Grande tailings dam by 15 September 2021 and its decommissioning by 15 September 2025, both of which are consistent with the deadlines established by existing legal and regulatory requirements. On 28 June 2021, the Prosecutor appealed this decision. This appeal is currently pending before the Court of Appeals of Goiás.

•Public Civil Action between AngloGold Ashanti Córrego do Sítio Mineração SA (AGA Mineração) and the Minas Gerais State Public Prosecutor's Office (Prosecutor): In March 2020, the Prosecutor filed a public civil action against AGA Mineração in the local court of Sabará (Court) alleging a violation of Minas Gerais Law No. 23.291/19, which was adopted in February 2019. Article 12 of this law prohibits the grant of an environmental license for construction, installation, expansion or raising of a tailings dam if the “dam break” studies identify communities that are located in the self-rescue zone. In February 2020, the state of Minas Gerais approved AGA Mineração’s permit to operate the Cuiabá tailings dam following the determination by the Minas Gerais’ Attorney’s Office that Law No. 23.291/19 does not apply to tailings dams already in operation. In its lawsuit, the Prosecutor requested the Court to grant an injunction ordering the suspension of AGA Mineração’s operational permit for the Cuiabá tailings dam on the grounds that it was issued in violation of this law. During the months of March through May 2020, all parties presented their arguments in court. In June 2020, the Court rejected the Prosecutor’s request to grant an injunction. In July 2020, the Court’s decision not to grant an injunction was upheld on appeal by the Court of Appeals of Minas Gerais. Subsequently, the Court issued an order proposing a conciliation hearing between the parties, to which none of the parties objected. On 28 January 2022, the parties filed a joint petition requesting the cancellation of the conciliation hearing and the suspension of the legal proceedings in view of negotiations between the parties to explore a possible settlement.






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DIVIDENDS


General

Dividends are proposed by and approved by the board of directors of AngloGold Ashanti (the “board”), based on the company’s financial performance.performance and compliance with applicable laws, including in respect of the solvency and liquidity test contemplated in the SA Companies Act. Dividends are recognised when declared by the board of directors of AngloGold Ashanti.Board. AngloGold Ashanti’s dividend policy allows the Board to declare an annuala semi-annual dividend to be based on 1020 percent of the free cash flow generated by the business for that financial year, before taking into account growth capital expenditure.expenditure, subject to applicable laws required to be complied with before a dividend may be declared by the Board. The Board may exercise its discretion on an annual basis, taking into consideration the prevailing market conditions, balance sheet flexibility and future capital commitments of the group.


Dividends may be declaredAs a company incorporated in any currency ataccordance with and bound by the discretioncompany laws of the Republic of South Africa with its primary listing on the Johannesburg Stock Exchange, AngloGold Ashanti board or AngloGold Ashanti shareholders at a general meeting. Currently,is required to declare dividends in South African rands. Therefore, dividends are declared in South African rands and paid in Australian dollars, South African rands, British pounds and Ghanaian cedis. Dividends paid to registered holders of AngloGold Ashanti ADSs are paid in US dollars converted from South African rands by The Bank of New York Mellon, as depositary,Depositary, in accordance with the deposit agreement. Exchange rate fluctuations may therefore affect the value of the dividends received by registered shareholders and distributions paid by the relevant depositaryDepositary to investors holding AngloGold Ashanti securities. Moreover, fluctuations in the exchange rates of the US dollar may affect the US dollar price of the ADSs on the NYSE. For details on taxation and exchange controls applicable to holders of ordinary shares or ADSs, see “Item 10D: Exchange Controls”, “Item 10E: Taxation-SouthTaxation—South African Taxation-TaxationTaxation — Taxation of dividends” and “Item 10E: Taxation-UnitedTaxation—United States Taxation-TaxationTaxation — Taxation of dividends”.


Dividends declared (in the ordinary course from trading and non-trading profits) to foreign shareholders are not subject to the approval by the South African Reserve Bank (SARB) in terms of South African foreign exchange control regulations. Dividends are freely transferable to foreign shareholders from both trading and non-trading profits earned in South Africa by publicly listed companies. Dividends in specie or special dividends may require SARB approval prior to declaration and payment to foreign shareholders.


Under South African law, the company may declare and pay dividends from any reserves included in total shareholder’s equity (including share capital and share premium) calculated in accordance with International Financial Reporting Standards (IFRS), subject to the solvency and liquidity test.


Withholding tax


South Africa currently imposes a Dividend Withholding Tax on Companies (dividends tax) at a rate of 20 percent on the net amount of the dividend declared and paid by a resident company, other than a Headquarter Company.


The dividends tax is generally imposed on the beneficial owner of the dividends. The dividends paid to South African shareholders may be exempt from dividend withholding tax couldin terms of certain domestic exemptions, or may be reduced to a lower rate under an applicable double tax treaty, if all requirementsthe required declarations and undertakings are met.provided by the beneficial owner of the dividend. In the case of dividends paid to a US holder with respect to shares, the TreatyConvention Between the Government of the United States of America and the Republic of South Africa for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income and Capital Gains, signed 17 February 1997 (the “US/SA Double Taxation Treaty”) would generally limit the dividends tax rate to five percent of the gross amount of the dividends if a corporate US holder holds directly at least 10 percent of the voting stock of AngloGold Ashanti, provided that the applicable declaration and undertaking are given by the beneficial owner that the reduced rate applies.Ashanti. In all other cases, the maximum tax rate under the US/SA Double Taxation Treaty is 15 percent of the gross amount of the dividend. Different rules may apply if the beneficial owner of the dividends is a US resident who carries on business in South Africa through a permanent establishment situated in South Africa, or performs in South Africa independent personal services from a fixed basepermanent establishment situated in South Africa, and the dividends are attributable to such permanent establishment or fixed base. Moreover, if the dividends tax rate is reduced under the auspices of an applicable double tax treaty, certain South African compliance requirements must be met in order to obtain the double tax treaty relief.establishment.














8B.SIGNIFICANT CHANGES







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8B.    SIGNIFICANT CHANGES

Refer to “Item 18: Financial Statements-Note 35-Recent developments”Statements—Note 35—Subsequent Events”.








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ITEM 9: THE OFFER AND LISTING




9A.OFFER AND LISTING DETAILS

9A.    OFFER AND LISTING DETAILS

The principal trading markets for AngloGold Ashanti’s ordinary shares are the New York Stock Exchange (NYSE), in the form of ADSs, under the symbol “AU” and the JSE Limited, in the form of ordinary shares, under the symbol “ANG”. Each ADS represents one ordinary share.














9B.    PLAN OF DISTRIBUTION
9B.PLAN OF DISTRIBUTION


Not applicable.





9C.MARKETS




9C.    MARKETS

NATURE OF TRADING MARKET


The principal trading markets for AngloGold Ashanti’s ordinary shares are the New York Stock Exchange,NYSE, in the form of ADSs, under the symbol “AU” (each representing one ordinary share) and the JSE Limited, in the form of ordinary shares, under the symbol “ANG”.


AngloGold Ashanti’s ordinary shares are also listed on the Ghana Stock Exchange, as ordinary shares under the symbol “AGA” and in the form of Ghanaian Depositary Shares or GhDSs (each representing one one-hundredth of an ordinary share) under the symbol “AADS”“AAD”, and the Australian Securities Exchange, in the form of ChessCHESS Depositary Interests (each representing one-fifth of an ordinary share) under the symbol “AGG”.











9D.SELLING SHAREHOLDERS

9D.    SELLING SHAREHOLDERS

Not applicable.













9E.    DILUTION
9E.DILUTION


Not applicable.












9F.EXPENSES OF THE ISSUE

9F.    EXPENSES OF THE ISSUE

Not applicable.




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ITEM 10:    ADDITIONAL INFORMATION




10A.SHARE CAPITAL


Not applicable.









10B.MEMORANDUM OF INCORPORATION


On 1At the last AGM held on 4 May 2011, the South African Companies Act 71 of 2008 (as amended) (the Companies Act) came into effect.  In terms of the Companies Act, companies were granted a two-year period2021, AngloGold Ashanti did not need to amend their constitutional documents (previously referredseek approval from shareholders for any amendments to as the Memorandum and Articles of Association, but known under the Companies Act as aits Memorandum of Incorporation (MoI)), in order to harmonise such constitutional documents with the Companies Act or adopt a new MoI. At a general meeting held on 27 March 2013, shareholders voted to adopt a new MoI for AngloGold Ashanti. The MoI was subsequently amended by special resolutions of shareholders passed at annual general meetings held on 14 May 2014, 6 May 2015, 4 May 2016 and 16 May 2017..


At the annual general meeting to be held on 916 May 2019,2022, AngloGold Ashanti will not seek approval from shareholders (by way of
a special resolution) to make any changesamend the MoI as follows:

1.by the deletion of the phrase “Subject to 9.4.3, this” at the beginning of clause 1.3 and the replacement thereof with the word “This”;
2.by the deletion of clause 9 (Rights Attaching to Preference Shares) in its entirety; and
3.by the amendment of Schedule 1 (Authorised Shares) as follows:

3.1    by the deletion of paragraphs 2, 3 and 4 of Schedule 1 in their entirety; and
3.2    by the deletion of the table at the end of Schedule 1 in its entirety and the replacement thereof with the following new table:

Share capitalSouth African Rands
600,000,000 ordinary shares of R0.25 each150,000,000

The reason for these amendments is to comply with the provisions of the SA Companies Act and the JSE Listings Requirements and, following the recent redemption of all of the A redeemable preference shares and B redeemable preference shares of the Company, to remove all references in the MoI to the MoI.A redeemable preference shares, the B redeemable preference shares and the C redeemable preference shares, as well as all of the provisions relating to all such redeemable preference shares, and thereby to remove all such redeemable preference shares from the authorised share capital of the Company. Prior to the above special resolution to amend the MoI being put to the shareholders for approval at the AGM to be held on 16 May 2022, AngloGold Ashanti will first seek approval from shareholders (by way of a separate special resolution) to cancel all such classes of redeemable preference shares.


REGISTRATIONRegistration


AngloGold Ashanti is incorporated under the company laws of the Republic of South Africa and is registered with the Companies and Intellectual Property Commission under registration number 1944/017354/06. The SA Companies Act has abolished the requirement for specific “object and purpose” provisions to be included in an MoIa memorandum of incorporation and although the new MoI is now silent on the matter, the company continues to carry on as its main business, gold exploration, the mining and production of gold, the manufacturing, marketing and selling of gold products and the development of markets for gold.

AngloGold Ashanti’s MoI is available for inspection as set out in “Item 10H: Documents on Display” and a summary of the pertinent provisions, including the rights of the holders of shares in AngloGold Ashanti, are set out below.


This summary does not contain all the information pertaining to the rights of holders of AngloGold Ashanti’s ordinary shares and is qualified in its entirety by reference to the laws of South Africa and AngloGold Ashanti’s governing corporate documents. As well as being governed by the provisions of the MoI, the rights of holders of AngloGold Ashanti’s ordinary shares are governed by the JSE Listings Requirements, the SA Companies Act and the Companies Regulations, 2011, promulgated under the SA Companies Act (Regulations)(the “Regulations”), which include the Takeover Regulations. Further, the rights of holders of AngloGold Ashanti ADSs are governed by the Deposit Agreement between AngloGold Ashanti and The Bank of New York Mellon.See “Item 10C: Material Contracts-TheContracts—The Deposit Agreement”.


The SA Companies Act provides that shares will no longer have a par or nominal value and hence no new shares having a nominal or par value may be authorised. However, any shares which have a nominal or par value authorised prior to the1 May 2011 (the effective date of the SA Companies ActAct) continue to have that nominal or par value and can be issued as such for so long as



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there are par value shares in the company’s authorised share capital. Should the company wish, it may also elect to convert its authorised par value shares to shares of no par value, subject to the relevant process and approvals contemplated in the SA Companies Act.


DIRECTORSDirectors


The management and control of any business of AngloGold Ashanti is vested in theits board of directors (board). The authority of the board to manage and direct the business and affairs of the company is not limited, restricted or qualified by the MoI.


Appointment and Retirement of Directors


The shareholders of the company have the power to elect the directors, and shareholders are also entitled to elect one or more alternate directors, in accordance with the provisions of the MoI.MoI and the SA Companies Act.


The board of directors may appoint any person who satisfies the requirements for election as a director to fill any vacancy and serve as a director on a temporary basis until the vacancy is filled by election by shareholders entitled to exercise voting rights in such an election.


The MoI authorises the chairman of the board, subject to the written approval of the majority of the directors, to appoint any person as a director provided that such appointment is approved by shareholders at the next shareholders’ meeting or annual general meeting.



At every annual general meeting one-third of the directors will retire by rotation, or if their number is not a multiple of three, then the number nearest to but not less than one third. The directors so to retire at every annual general meeting will be those who have been the longest in office since their last election. Directors retiring by rotation are eligible for re-election. Directors who voluntarily decide not to make themselves available for re-election may be counted towards the one-third of directors required to retire at the relevant annual general meeting.


The MoI contains no provision for directors to hold qualification shares. The MoI does not impose an age limit for the retirement of directors.


Remuneration


In accordance with the SA Companies Act, the MoI provides that the directors are entitled to such remuneration for their services as directors as AngloGold Ashanti’s shareholders may approve by special resolution in a general meeting or annual general meeting within the previous two years of the date of payment of such remuneration. If a director is employed in any other capacity, or holds an executive office or performs services that, in the opinion of the board, are outside the scope of the ordinary duties of a director, he or she may be paid such additional remuneration as a disinterested quorum of directors may reasonably determine.


Interests of Directors and Restriction on Voting


Although the interests of directors are not dealt with in the MoI, the provisions of the SA Companies Act in this regard are unalterable and will automatically apply, together with the applicable common law rules. Under the SA Companies Act, the procedures to deal with the personal financial interests of directors also apply to prescribed officers (i.e., persons who exercise general executive control over and management of the whole, or a significant portion, of the business and activities of the company or regularly participate to a material degree in the exercise of general executive control over and management of the whole, or a significant portion, of the business and activities of the company, irrespective of the office held or function performed by such persons) and any person who is a member of a committee of the board of the company, whether or not that person is also a member of the company’s board. The SA Companies Act provides that a director or such other person with a personal financial interest must disclose this to the board and cannot vote on or, after having made the disclosures to the meeting as prescribed by the SA Companies Act, remain present during the meeting when the matter in which he has interest is being discussed but will be counted as present for the purposes of a quorum.quorum (but is not to be regarded as being present at the meeting for the purposes of determining whether a resolution has sufficient support to be adopted).


Share Rights, Preferences and Restrictions


Allotment and Issue of Ordinary Shares


Subject to the JSE Listings Requirements, the SA Companies Act and/or with approval of shareholders in a general meeting, unissued ordinary shares must be offered to existing ordinary shareholders, pro rata to their ordinary shareholdings, unless they are issued for the acquisition of assets. The shareholders in a general meeting may authorise the AngloGold Ashanti board to issue any unissued ordinary shares.






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Dividends, Rights and Distributions


The ordinary shares participate fully in all dividends, other distributions and entitlements as and when declared by AngloGold Ashanti in respect of fully paid ordinary shares. Under South African law, AngloGold Ashanti may declare and pay dividends,distributions (as defined in the SA Companies Act, which includes dividends), subject to the company satisfying the solvency and liquidity test as provided byset out in section 4 of the SA Companies Act and the board passing a resolution acknowledging that such test has been applied and has reasonably concluded that the company would satisfy such test immediately after completing the distribution. Dividends are payable to shareholders registered at a record date after the date of declaration of the dividend.


As a company incorporated and registered in the Republic of South Africa with its primary listing on the Johannesburg Stock Exchange, AngloGold Ashanti is required to declare dividends in South African rands. Dividends are paid in South African rands, Australian dollars, Ghanaian cedis or United Kingdomand British pounds. Registered holders of AngloGold Ashanti ADSs are paid dividends in US dollars by The Bank of New York Mellon as depositary,Depositary, in accordance with the Deposit Agreement. See “Item 10C: Material Contracts - Contracts—The Deposit Agreement”.


TheA holder of the B redeemable preference shares is entitled to the right to an annual dividend amounting to the lesser of 5 percent of the issue price of the B redeemable preference shares or an amount equivalent to the balance of the after tax profits arising from income derived from mining the Moab Lease Area as determined by the directors in each financial year. The annual dividend shall be a first charge on any profit available for distribution from the Moab Lease Area but shall not be payable from any other profits of the Company.


TheA holder of the C redeemable preference shares is entitled to the right to an annual dividend amounting to the lesser of 5 percent of the issue price of the C redeemable preference shares or an amount equivalent to the balance of the after tax profits arising from income derived from mining the Moab Lease Area as determined by the directors in each financial year. The annual dividend shall be a first charge on any profit available for distribution from the Moab Lease Area ranking after and following payment of any annual dividend payable to a holder of the B redeemable preference shares, but shall not be payable from any other profits of the Company.

A holder of the A redeemable preference shares is entitled to an annual dividend equivalent to the balance of the after-tax profits from income derived from mining the Moab Lease Area as determined by AngloGold Ashanti’s directors in each financial year, only once the annual dividend on the B redeemable preference shares hasand the C redeemable preference shares have been paid in full.


Although not stated in the MoI, but subject to the JSE Listings Requirements and the SA Companies Act, any dividend may be paid and satisfied, either wholly or in part, by the distribution of specific assets, or in paid-up securities of AngloGold Ashanti or of any other company, or in cash, or in any one or more of such ways as the directors may at the time of declaring the dividend determine and direct.


All dividends remaining unclaimed for a period of not less than three years from the date on which they became payable, may, by a resolution of the directors, become forfeited for the benefit of the company.


Voting Rights


Each ordinary share confers the right to vote at all general meetings. Each holder present in person or by proxy or, in the case of a corporate entity, represented, has one vote on a show of hands. If a poll is held, holders present or any duly appointed proxy will have one vote for each ordinary share held. A holder of ordinary shares is entitled to appoint a proxy to attend, speak and vote at any meeting on his or her behalf and the proxy need not be a shareholder. Holders of ADSs are not entitled to vote in person at meetings, but may vote by way of proxy through The Bank of New York Mellon as the ADS issuer. Holders of CDIsAustralian Chess Depositary Interests (CDIs) and GhDSsGhanaian Depositary Shares (GhDSs) are not entitled to vote in person or by proxy at meetings, but may vote by instructing Chess Depository Nominees and NTHC Limited as depositary,Depositary, respectively, how to vote their shares.


There are no limitations on the right of non-South African registered shareholders to hold or exercise voting rights attaching to any of the ordinary shares.


The A redeemable preference shares have similar voting rights to those of ordinary shares.The B and C redeemable preference shares have voting rights only in the event that a dividend on this class of share has not been paid and remains unpaid for six months or more, or in connection with resolutions directly affecting these redeemable preference shares or in limited circumstances affecting AngloGold Ashanti as a whole, such as disposal of substantially all of the company’s assets, winding up AngloGold Ashanti or reducing the company’s share capital.


At any meeting of AngloGold Ashanti at which the holders of the ordinary shares, A redeemable preference shares, B redeemable preference shares and C redeemable preference shares are present and entitled to vote on a poll, each holder of the A redeemable preference shares shall be entitled to 50 votes for every A redeemable preference share held, each holder of the ordinary shares is entitled to 50 votes for every ordinary share held and each holder of the B redeemable preference shares



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and the C redeemable preference shares is entitled to one vote for every B redeemable preference share and C redeemable preference share held respectively.


The MoI specifies that the rights relating to any class of shares may be modified or abrogated with the sanction of a resolution passed as if it were a special resolution of the holders of shares in that class at a separate general meeting. The MoI also specifies that theany holders of the A, B and C redeemable preference shares may provide written consents to the modification of their rights.


Increase and Reduction of Capital


The company is authorised to issue the shares specified in the MoI and all such shares are required to be issued as fully paid up in accordance with the applicable approval and/or other requirements of the SA Companies Act and the JSE Listings Requirements.


The directors are authorised, subject to any requirements of the JSE Listings Requirements, the SA Companies Act, the Regulations and the MoI, to increase or decrease the number of authorised shares of any class of shares, reclassify any shares that have been authorised but not issued, classify any unclassified shares that have been authorised but not issued, and determine the preferences, rights, limitations or other terms of any class of authorised shares or amend any preferences, rights, limitations or other terms as determined. However, such capital amendments require an amendment to be made to the MoIMoI. The SA Companies Act and the JSE Listings Requirements currently doesdo not allow the MoI to be amended to give effect to such capital amendments without the approval of ordinary shareholders by special resolution.


Rights Upon Liquidation


In the event of the winding up of AngloGold Ashanti:
•The A redeemable preference shares shall confer the right, on a winding-up of the company, in priority to any payment in respect of the Ordinary Sharesordinary shares in the capital of the company then issued, but after any payment in respect of the B redeemable preference shares and the C redeemable preference shares in the capital of the company then issued, to receive only so much of the net proceeds from the disposal of the assets relating to the Moab Lease Area as is then available for distribution;
•The B redeemable preference shares shall confer the right, on a winding-up of the company in priority to any payment in respect of the Ordinary Shares,ordinary shares, the A redeemable preference shares and the C redeemable preference shares then in issue, to receive only so much of the net proceeds from the disposal of the assets relating to the Moab Lease Area as is available for distribution but not exceeding a return per B preference share of the capital paid-up thereon and any share premium paid on the issue of the B redeemable preference shares outstanding at that time;
•The C redeemable preference shares shall confer the right, on a winding-up of the company, ranking after and following payment of the holders of the B redeemable preference shares, but in priority to any payment in respect of the Ordinary Sharesordinary shares and the A redeemable preference shares in the capital of the company then issued, to receive only so much of the net proceeds from the disposal of the assets relating to the Moab Lease Area as is available for distribution but not exceeding a return per C preference share of the capital paid-up on the issue of the C redeemable preference shares outstanding at that time;
•The A, B and C redeemable preference shares shall not be entitled to any participation, on a winding-up, in any of the surplus funds of the company in any other manner arising; and

the•The ordinary shares confer the right to participate equally in any surplus arising from the liquidation of all other assets of AngloGold Ashanti.


Redemption Provisions


The A redeemable preference shares may be redeemed for their nominal value, plus a premium per share of an amount equal to the net proceeds available from the disposal of the assets relating to the Moab Lease Area, after redemption in full of the B redeemable preference shares and the C redeemable preference shares, and payment of the nominal value of the A redeemable preference shares, divided by 2,000,000.


The B redeemable preference shares may be redeemed for their nominal value, plus a premium of upan amount equal to R249.99 per share,175,096,390 divided by that number of B redeemable preference shares in issue, but limited to an amount equal to the net proceeds available from the disposal of the assets relating to the Moab Lease Area after payment of the nominal value of the B redeemable preference shares.


The C redeemable preference shares may be redeemed for their aggregate issue price of the said C redeemable preference shares, but shall be limited to an amount equal to the net proceeds available from the disposal of the assets relating to the Moab Lease Area and only after redemption in full of the B redeemable preference shares.





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Shareholders’ meetingsMeetings


The directors may convene meetings of AngloGold Ashanti shareholders. Subject to the provisions of the SA Companies Act, the shareholders may requisition for the convening of a meeting.


Notice of each AngloGold Ashanti annual general meeting and general meeting of AngloGold Ashanti shareholders must be delivered at least 15 business days before that shareholders’ meeting is to begin. In accordance with the SA Companies Act, business days are calculated by excluding the first day, including the last day and excluding Saturdays, Sundays and any public holiday in the Republic of South Africa. In terms of the MoI, all shareholders are entitled to attend shareholders’ meetings.meetings at which they are entitled to vote.


In the case of a class meeting of the A, B or BC redeemable preference shares, the sole holder of such shares shall constitute a quorum. Save as aforesaid, the quorum of a shareholders’ meeting to begin is sufficient persons present, in person or by proxy, at the meeting to exercise, in aggregate, at least 25 percent of all of the voting rights that are entitled to be exercised in respect of at least one matter to be decided at the meeting and a quorum must remain present for the continuation of that shareholders meeting, provided that at least three shareholders must be present and remain at the meeting. Such quorum requirement also applies for the consideration of any matter to be decided at the meeting. If the meeting is not quorate within 30 minutes after the appointed time for the meeting to begin (or such longer or shorter period as the chairperson may determine), it will be postponed, without motion, vote or further notice, for 1 week and the shareholders present, in person or by proxy, at the postponed meeting will constitute a quorum. For an ordinary resolution to be approved by shareholders, it must be supported by more than 50 percent of the voting rights exercised on the resolution. For a special resolution to be approved by shareholders, it must be supported by at least 75 percent of the voting rights exercised on the resolution.


Disclosure of Interest in Shares


Under South African law, a person must notify AngloGold Ashanti within three business days after that person (i) acquires a beneficial interest in sufficient securities of a class of securities issued by AngloGold Ashanti such that, as a result of the acquisition, the person holds a beneficial interest in securities amounting to five percent, 10ten percent, 15fifteen percent or any further whole multiple of five percent of the issued securities of that class or (ii) disposes of any beneficial interest in sufficient securities of a class of securities issued by AngloGold Ashanti such that, theas a result of the disposition, the person no longer holds a beneficial interest in securities amounting to a particular multiple of five percent of issued securities of that class. When AngloGold Ashanti has received the notice referred to above it must file a copy with the Takeover Regulation Panel and report the information to holders of the relevant class of securities unless the notice concerned is a disposition of less than one percent of the class of securities.


If the securities of AngloGold Ashanti are registered in the name of a person who is not the holder of the beneficial interest in all of the securities in AngloGold Ashanti held by that person, that registered holder of the securities must disclose the identity of the person on whose behalf that security is held and the identity of each person with a beneficial interest in securities so held, the number and the class of securities held for each such person with a beneficial interest and the extent of each such beneficial interest. This information must be disclosed in writing to the company within five business days after the end of every month during which a change has occurred in the information or more promptly or frequently to the extent so provided by the requirements of a Central Securities Depository. A company that knows or has reasonable cause to believe that any of its securities are held by one person for the beneficial interest of another may by notice in writing require either of those persons to confirm or deny that fact, provide particulars of the extent of the beneficial interest held during the three years preceding the date of the notice and disclose the identity of each person with a beneficial interest in the securities held by that person, which information must be provided within 10 business days of the receipt of the notice.


AngloGold Ashanti is obligated to establish and maintain a register of the disclosures described above and to publish in its annual financial statements a list of the persons who hold beneficial interests equal to or in excess of five percent of the total number of ordinary shares issued by AngloGold Ashanti together with the extent of those beneficial interests.






Rights of Minority Shareholders


Majority shareholders of South African companies have no fiduciary obligations under South African common law to minority shareholders. However, under the SA Companies Act, a shareholder or director may, under certain circumstances, seek relief from thea court if he has been unfairly prejudiced by any act or omission of the company or a related person, by the conduct of the business of the company or a related person in a particular manner, the exercise of the powers of the directors of the company or a related person in a particular manner. There may also be personal and derivative actions available to a shareholder of a company.


Pursuant to the SA Companies Act, a shareholder may petition a South African court for relief from the actions or omissions or, business conduct of the company or the actions of the company’s directors or officers that is oppressive or unfairly prejudicial to, or unfairly disregards the interest of the shareholder. In addition, a shareholder who voted against a resolution to amend the company’s MoI, or to approve a fundamental transaction, (and complied with other requirements set out in the SA Companies



284

Act) may exercise its appraisal right to demand that the company pay to it the fair value for all the shares of the company held by that shareholder.


Description of ADSs


The Bank of New York Mellon issues AngloGold Ashanti’s American Depositary Shares, or ADSs. Please see “Item 10C: Material Contracts-DescriptionContracts—Description of AngloGold Ashanti ADSs”.






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10C.MATERIAL CONTRACTS


Multi-currency Revolving Credit FacilitiesFacility


General

On 17 July 2014, AngloGold Ashanti Holdings plc and AngloGold Ashanti USA Inc., as borrowers, entered into a credit agreement with The Bank of Nova Scotia, as facility agent, and certain financial institutions party thereto as lenders. This credit agreement provided for a $1.0 billion revolving credit facility available for drawing in US dollars. The facility was cancelled in October 2018 and replaced with the Multi-Currency Revolving Credit Facility.

On 25 July 2014, AngloGold Ashanti Australia Limited, as borrower, entered into a credit agreement with Commonwealth Bank of Australia, as facility agent, and certain financial institutions party thereto as lenders. This credit agreement provided for a A$0.5 billion revolving credit facility available for drawing in Australian dollars. The facility was cancelled in October 2018 and replaced with the Multi-Currency Revolving Credit Facility.

On 7 July 2015, AngloGold Ashanti Limited, as borrower, entered into a five-year unsecured syndicated revolving credit facility with Nedbank Limited, as facility agent, who in conjunction with ABSA Bank Limited constitute the lenders. This credit agreement provides for a ZAR 1.4 billion (about $98 million) revolving credit facility available for drawing in South African Rands. The facility bears interest at JIBAR plus 1.65% per annum. As of 19 March 2019, ZAR 400 million was drawn under this revolving facility.

On 23 August 2016, Geita Gold Mining Limited and Societé AngloGold Ashanti de Guinée S.A., as borrowers, entered into a three-year unsecured revolving credit facility agreement of $100 million with Nedbank Limited, as lender. Interest is currently charged at a margin of between 6.2% and 8% above LIBOR. On 29 January 2019, $35 million of this facility was combined with the Geita Revolving Credit Facility. The remaining portion of $65 million was renewed for a further three years on 27 February 2019. As of 19 March 2019, this facility is fully drawn.

On 3 November 2017, AngloGold Ashanti Limited, as borrower, entered into a new three-year unsecured revolving credit facility of ZAR 1 billion (about $70 million) with The Standard Bank of South Africa Limited, as facility agent and lender. This credit agreement includes an option, on application, to extend the facility for another year. The facility bears interest at JIBAR plus 1.3% per annum. As of 19 March 2019, ZAR 500 million was drawn under this revolving facility.

On 12 December 2017, AngloGold Ashanti Limited, as borrower, entered into a three-year unsecured syndicated revolving credit facility of ZAR 2.5 billion (about $174 million) (the ZAR Revolving Credit Facility) with Nedbank Limited and ABSA Bank Limited, as lenders. The ZAR Revolving Credit Facility replaced a ZAR 1.5 billion revolving credit facility entered into on 3 December 2013. The agreement includes an option, on application, to extend the facility for another year. The facility bears interest at JIBAR plus 1.8% per annum. As of 19 March 2019, the ZAR Revolving Credit Facility is undrawn.

On 6 April 2018, Geita Gold Mining Limited, as borrower, entered into a three-year unsecured multi-currency revolving credit facility agreement of $115 million with Nedbank Limited, as underwriter and agent, and certain financial institutions party thereto, as original banks (the Geita Revolving Credit Facility). The agreement has been amended and restated on 29 January 2019. Facility A is a US dollar based facility with interest charged at a margin of 6.7% above LIBOR. Facility B is a Tanzanian shilling facility capped at the equivalent of $45 million with interest charged at a margin of 5% plus a reference rate as determined by the lending agent. As of 19 March 2019, the equivalent of $75 million was drawn under this revolving facility.


On 23 October 2018, AngloGold Ashanti Holdings plc (AGAH) and AngloGold Ashanti Australia Limited, as borrowers, entered into a new five-year unsecured multi-currency syndicated revolving credit facility of $1.4 billion (the Multi-Currency Revolving Credit Facility)$1.4 billion multi-currency RCF) with The Bank of Nova Scotia, as facility agent, and certain financial institutions party thereto, as lenders. The loan consists of (i) a US dollar based facility (base currency) with interest charged at a margin of 1.45% above LIBOR and (ii) an Australian dollar based facility capped at A$500 million which will be used to fund the working capital and development costs associated with interest charged at a margin of 1.45% above BBSY. The applicable margin is subjectthe group’s mining operations within Australia (without eroding the group’s headroom under its other facilities and exposing the group to a ratings grid.foreign exchange gains/losses each quarter). As of 1923 March 2019,2022, the Multi-Currency Revolving Credit Facility is undrawn.equivalent of $34 million was drawn under the AUD portion of the $1.4billion multi-currency RCF.


Guarantees


The Multi-Currency Revolving Credit Facility$1.4 billion multi-currency RCF is guaranteed by AngloGold Ashanti Holdings plcAGAH and AngloGold Ashanti Australia Limited. The guarantees constitute unconditional obligations of the guarantors and rank at least pari passu with all other future unsecured obligations of the guarantors, except for obligations mandatorily preferred by law.


Security


TheSave as set out under the heading “—Guarantees” above, the obligations under all the revolving credit facility agreements$1.4 billion multi-currency RCF are unsecured.


Amount and repayment of borrowings


Loans under the Multi-Currency Revolving Credit Facility$1.4 billion multi-currency RCF must be for a minimum of $10 million, if the currency selected is the base currency (US dollar), or a minimum of A$10,000,00010 million (or for the balance of the undrawn total commitments at the time of the drawing), if the currency selected is Australian Dollars.dollars. No more than 14 loans may be outstanding at any time. Each loan must be repaid on the maturity date in the same currency as the maturing loan. All loans must be repaid in full on the final maturity date. The $1.4 billion multi-currency RCF matures in October 2023.

Loans under the ZAR Revolving Credit Facility must be for a minimum of ZAR 100 million (or for the balance of the undrawn total commitments at the time of the drawing), and no more than 14 loans may be outstanding at any time. Each loan must be repaid on the last day of the loan’s interest period, which can be a period of one, two, three or six months or any other period agreed by AngloGold Ashanti Limited. All loans must be repaid in full on the final maturity date.


Interest rates and fees


The annual interest rate on loans drawn under the Multi-Currency Revolving Credit Facility$1.4 billion multi-currency RCF is calculated based on LIBOR, plus an initial margin of 1.45 percent per annum that varies between 0.95 percent and 2.15 percent per annum depending on the long-term debt rating of AngloGold Ashanti Holdings plc,AGAH, and in relation to any Loan in Australian Dollars,dollars, BBSY, and certain mandatory costs. The applicable margin is subject to a ratings grid. In this regard, the interest margin will reduce should the group’s credit rating improve from its current BB+/Baa3 status and should increase if its credit rating worsens. Interest on loans is payable on the last day of the loan’s interest period and, if the interest period exceeds six months, on the dates falling at six-monthly intervals after the day the loan was made.

The annual interest rate on loans drawn under the ZAR Revolving Credit Facility is calculated based on JIBAR, plus a margin of 1.8 percent. Interest on loans is payable on the last day of the loan’s interest period and, if the interest period exceeds six months, on the dates falling at six-monthly intervals after the first day of that interest period.


The borrowers under the Multi-Currency Revolving Credit Facility$1.4 billion multi-currency RCF are required to pay a commitment fee in the base currency equal to 35 percent of the then applicable margin per annum on the undrawn and uncancelled amount of each lender’s commitment during the commitment period. The borrowers are also required to pay a utilisation fee of 0.10 percent per annum (if the aggregate outstanding loans are less than one third of the total commitments then in effect), 0.20 percent per annum (if the aggregate outstanding loans are equal to or greater than one third but less than two thirdstwo-thirds of the total commitments then in effect) or 0.40 percent per annum (if the aggregate outstanding loans are equal to or greater than two thirdstwo-thirds of the total commitments then in effect).

The borrower under the ZAR Revolving Credit Facility is required to pay a commitment fee of 0.60 percent on the undrawn and uncancelled amount of each lender’s commitment during the commitment period. The borrower is also required to pay a utilisation fee of 0.20 percent per annum (if the aggregate outstanding loans are less than one third of the total commitments then in effect), 0.40 percent per annum (if the aggregate outstanding loans are equal to or greater than one third but less than two thirds of the total commitments then in effect) or 0.60 percent per annum (if the aggregate outstanding loans are equal to or greater than two thirds of the total commitments then in effect).


Financial covenant


The revolving credit agreements include$1.4 billion multi-currency RCF includes a financial maintenance covenant which requires that the ratio of Total Net Financial Indebtedness to EBITDA (as such terms are defined in the revolving credit agreements)agreement) does not at any time exceed 3.50 to 1.00, with the proviso that this ratio may exceed 3.50 to 1.00 once during the life of the revolving credit agreements,agreement, for one six-month period subject to certain criteria. Refer to “Item 18: Financial Statements-Note 34-CapitalStatements—Note 34—Capital Management” for the formulae used in the revolving credit agreementsagreement to test compliance with the covenants.


Change of control


If a lender so requires, the commitment of such lender under the Multi-Currency Revolving Credit Facility or the ZAR Revolving Credit Facility$1.4 billion multi-currency RCF will be cancelled and the participation of such lender in all outstanding loans, together with accrued interest and all other amounts accrued, will become immediately due and payable in case any person or group of persons acting in concert becomes (directly or indirectly) the beneficial owner of more than 50 percent of the issued share capital of AngloGold Ashanti Limited.





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Undertakings


The revolving credit agreements contain$1.4 billion multi-currency RCF contains a negative pledge covenants,covenant, including restrictions on the granting of security, a change of business of AngloGold Ashanti Limited and its subsidiaries, acquisitions or participations in joint ventures and mergers and disposals.


The revolving credit agreements$1.4 billion multi-currency RCF also contain,contains, among others,other things, the following affirmative covenants: mandatory periodic reporting of financial and other information, notice upon the occurrence of events of default and certain other events, compliance with environmental laws and other obligations requiring each of AngloGold Ashanti Holdings plcAGAH and its subsidiaries to maintain its corporate existence and qualifications to conduct its business as currently conducted in all applicable jurisdictions and to maintain insurance coverage. The covenants are subject to exceptions and materiality thresholds.




Events of default


The revolving credits agreements contain$1.4 billion multi-currency RCF contains events of default including failure to make payment of amounts due, breach of obligations under the loan documents, defaults under other agreements evidencing indebtedness, certain bankruptcy events and a cessation of business, failure of any of the borrowers to be a wholly-ownedwholly owned subsidiary of AngloGold Ashanti Holdings plcAGAH and the occurrence of a material adverse change in the business and financial condition of the borrowers and guarantors under the revolving credit agreements,agreement, or AngloGold Ashanti and its subsidiaries as a whole, or in the ability of the borrowers and guarantors to perform their payment obligations under the loan documents. The occurrence of an event of default could result in the immediate and automatic cancellation of all commitments and the acceleration of all payment obligations under the revolving credit agreementsagreement and the other loan documents.


The above description is only a summary of certain provisions of the revolving credit agreementsagreement and is qualified in its entirety by reference to the provisions of the revolving credit agreements,agreement, a copy of which is attached hereto as Exhibit 19.4.4.1 and is incorporated herein by reference.

Bridge Facility

On 28 April 2020, AngloGold Ashanti Holdings plc (AGAH), as borrower, entered into a US$1.0 billion unsecured bridge facility agreement with a syndicate of lenders, guaranteed by AngloGold Ashanti Australia Limited. The bridge facility was for a term of 364 days which could be extended for a further six months with consent of the lenders. Amounts outstanding under the bridge facility bore interest at LIBOR plus a margin that increased over time. The bridge facility contained certain restrictive and affirmative covenants, events of default as well as a financial maintenance covenant. The lenders under the bridge facility were required to fund only if our $1.4 billion multi-currency RCF was drawn by at least $1.39 billion. The bridge facility agreement also contained a mandatory prepayment and cancellation clause. In particular, commitments under the bridge facility were automatically cancelled upon, among other matters, the incurrence of certain indebtedness (including the offering of the 2020 Notes as described below) and the consummation of certain disposals (including, for example, the disposal of our South African operations). The bridge facility, which remained undrawn, was cancelled on 1 October 2020.

The above description is only a summary of certain provisions of the bridge facility agreement and is qualified in its entirety by reference to the provisions of the cancelled bridge facility agreement.

Notes

Each of the series of notes described below were issued under the indenture, dated as of 28 April 2010, among AngloGold Ashanti Holdings plc (AGAH), as issuer, AngloGold Ashanti Limited, as guarantor, and The Bank of New York Mellon, as trustee (the Indenture). The below descriptions are only a summary of certain provisions of those series of notes and are qualified in their entirety by reference to the provisions of the Indenture and such relevant series of notes, a copy of each is attached hereto as Exhibit 19.4.4Exhibits 19.2.1, 19.2.2, 19.2.3, 19.2.4 and 19.2.5 and is incorporated herein by reference.


2021 Notes


On 22 October 2021, AGAH issued $750 million 3.375 percent Notes due 2028 (the “2021 Notes”). The interest on the 2021 Notes is payable semi-annually on 1 May and 1 November of each year, commencing on 1 May 2022. AGAH may on any one or more occasions redeem all or part of the 2021 Notes, at a redemption price equal to the greater of (1) 100 percent of the principal amount of the 2021 Notes to be redeemed and (2) the sum of the present values of the remaining scheduled payments of principal and interest on the 2021 Notes (excluding any portion of such payments of interest accrued or unpaid as of the date of redemption) discounted to the redemption date on a semiannual basis (assuming a 360-day year consisting of twelve 30-day months) at the treasury rate, plus 30 basis points, plus accrued and unpaid interest, if any, to the date of redemption. AGAH has agreed to pay certain additional amounts in respect of any withholdings or deductions for certain types of taxes in certain jurisdictions on payments to holders of the 2021 Notes. The 2021 Notes are unsecured and unsubordinated and are fully and unconditionally guaranteed by AngloGold Ashanti Limited.




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AGAH has agreed to observe certain covenants with respect to the 2021 Notes restricting, subject to certain limitations, the ability of AngloGold Ashanti Limited and AGAH to amalgamate, reconstruct, consolidate or merge with another company or other legal entity, and the ability of AngloGold Ashanti Limited and its restricted subsidiaries to pledge their assets to secure certain borrowings, create or incur liens on certain of their property or to engage in sale and leaseback transactions. In case of a change of control of the guarantor and a downgrade, within a specified period, of the 2021 Notes by three rating agencies, holders of the 2021 Notes have the right to require the issuer to repurchase all or any part of their 2021 Notes in cash for a value equal to 101 percent of the aggregate principal amount of 2021 Notes repurchased, plus accrued and unpaid interest, if any, on the 2021 Notes repurchased to the date of repurchase.

The offering of the 2021 Notes was registered under the Securities Act. The 2021 Notes were listed on the New York Stock Exchange.

2020 Notes

On 1 October 2020, AGAH issued $700 million 3.750 percent Notes due 2030 (the 2020 Notes). The interest on the 2020 Notes is payable semi-annually on 1 April and 1 October of each year, commencing on 1 April 2021. AGAH may on any one or more occasions redeem all or part of the 2020 Notes, at a redemption price equal to the greater of (1) 100 percent of the principal amount of the 2020 Notes to be redeemed and (2) the sum of the present values of the remaining scheduled payments of principal and interest on the 2020 Notes (excluding any portion of such payments of interest accrued or unpaid as of the date of redemption) discounted to the redemption date on a semiannual basis (assuming a 360-day year consisting of twelve 30-day months) at the treasury rate, plus 50 basis points, plus accrued and unpaid interest, if any, to the date of redemption. AGAH has agreed to pay certain additional amounts in respect of any withholdings or deductions for certain types of taxes in certain jurisdictions on payments to holders of the 2020 Notes. The 2020 Notes are unsecured and unsubordinated and are fully and unconditionally guaranteed by AngloGold Ashanti Limited.

AGAH has agreed to observe certain covenants with respect to the 2020 Notes restricting, subject to certain limitations, the ability of AngloGold Ashanti Limited and AGAH to amalgamate, reconstruct, consolidate or merge with another company or other legal entity, and the ability of AngloGold Ashanti Limited and its restricted subsidiaries to pledge their assets to secure certain borrowings, create or incur liens on certain of their property or to engage in sale and leaseback transactions. In case of a change of control of the guarantor and a downgrade, within a specified period, of the 2020 Notes by three rating agencies, holders of the 2020 Notes have the right to require the issuer to repurchase all or any part of their 2020 Notes in cash for a value equal to 101 percent of the aggregate principal amount of 2020 Notes repurchased, plus accrued and unpaid interest, if any, on the 2020 Notes repurchased to the date of repurchase.

The offering of the 2020 Notes was registered under the Securities Act. The 2020 Notes were listed on the New York Stock Exchange.

2012 Notes


On 30 July 2012, AngloGold Ashanti Holdings plc (AGAH),AGAH issued $750 million 5.125 percent Notes due 2022 (the 2012 Notes). The interest on the 2012 Notes iswas payable semi-annually on 1 February and 1 August of each year, commencing on 1 February, 2013. AGAH maywas permitted on any one or more occasions to redeem all or part of the 2012 Notes, at a redemption price equal to the greater of (1) 100 percent of the principal amount of the 2012 Notes to be redeemed and (2) the sum of the present values of the remaining scheduled payments of principal and interest on the 2012 Notes (excluding any portion of such payments of interest accrued or unpaid as of the date of redemption) discounted to the redemption date on a semiannual basis (assuming a 360-day year consisting of twelve 30-day months) at the treasury rate, plus 50 basis points, plus accrued and unpaid interest, if any, to the date of redemption. AGAH hashad agreed to pay certain additional amounts in respect of any withholdings or deductions for certain types of taxes in certain jurisdictions on payments to holders of the 2012 Notes. The 2012 Notes arewere unsecured and unsubordinated and arewere fully and unconditionally guaranteed by AngloGold Ashanti Limited.


AGAH hashad agreed to observe certain covenants with respect to the 2012 Notes restricting, subject to certain limitations, the ability of AngloGold Ashanti Limited and AGAH to amalgamate, reconstruct, consolidate or merge with another company or other legal entity, and the ability of AngloGold Ashanti Limited and its restricted subsidiaries to pledge their assets to secure certain borrowings, create or incur liens on certain of their property or to engage in sale and leaseback transactions. In case of a change of control of the guarantor and a downgrade, within a specified period, of the 2012 Notes below an investment grade rating by two rating agencies, holders of the 2012 Notes havehad the right to require the issuer to repurchase all or any part of their 2012 Notes in cash for a value equal to 101 percent of the aggregate principal amount of 2012 Notes repurchased, plus accrued and unpaid interest, if any, on the 2012 Notes repurchased to the date of purchase.


The offering of the 2012 Notes was registered under the Securities Act. The 2012 Notes were listed on the New York Stock Exchange.


The 2012 notes were redeemed in October and November 2021 and are no longer outstanding.





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2010 Notes


On 28 April 2010, AGAH issued $700 million 5.375 percent Notes due 2020 and $300 million 6.500 percent Notes due 2040 (together, the 2010 Notes). The interest on the 2010 Notes is payable semi-annually on 15 April and 15 October of each year, commencing on 15 October 2010. AGAH may on any one or more occasions redeem all or part of the 2010 Notes, at a redemption price equal to the greater of (1) 100 percent of the principal amount of the 2010 Notes to be redeemed and (2) the sum of the present values of the remaining scheduled payments of principal and interest on the 2010 Notes (excluding any portion of such payments of interest accrued or unpaid as of the date of redemption) discounted to the redemption date on a semiannual basis (assuming a 360-day year consisting of twelve 30-day months) at the treasury rate, plus 25 basis points with respect to the 2010 Notes maturing in 2020 and 30 basis points with respect to the 2010 Notes maturing in 2040, plus accrued and unpaid interest, if any, to the date of redemption. AGAH has agreed to pay certain additional amounts in respect of any withholdings or deductions for certain types of taxes in certain jurisdictions on payments to holders of the 2010 Notes. The 2010 Notes are unsecured and unsubordinated and are fully and unconditionally guaranteed by AngloGold Ashanti Limited.


AGAH has agreed to observe certain covenants with respect to the 2010 Notes restricting, subject to certain limitations, the ability of AngloGold Ashanti Limited and AGAH to amalgamate, reconstruct, consolidate or merge with another company or other legal entity, and the ability of AngloGold Ashanti Limited and its restricted subsidiaries to pledge their assets to secure certain borrowings, create or incur liens on certain of their property or to engage in sale and leaseback transactions. In case of a change of control of the guarantor and a downgrade, within a specified period, of a series of 2010 Notes below an investment grade rating by two rating agencies, holders of the 2010 Notes have the right to require the issuer to repurchase all or any part of their 2010 Notes in cash for a value equal to 101 percent of the aggregate principal amount of 2010 Notes repurchased, plus accrued and unpaid interest, if any, on the 2010 Notes repurchased to the date of purchase.


The offering of the 2010 Notes was registered under the Securities Act. The 2010 Notes were listed on the New York Stock Exchange.



The $700 million 5.375 percent Notes due 2020 were repaid at maturity on 15 April 2020 and are no longer outstanding.

For further information, see “Note 24: Borrowings” to our AnnualItem 18: Financial Statements included in Statements—Note 24—Borrowings”,“Item 18 of this Annual Report, “Item 5B: Liquidity and Capital Resources” and “Item 19: Exhibits to Form 20-F”.



Description of AngloGold Ashanti ADSs


The Bank of New York Mellon issues AngloGold Ashanti’s American Depositary Shares, or ADSs. OneEach ADS represents the ownership interest of one ordinary share of AngloGold Ashanti.


The Deposit Agreement


This section provides a summary description of AngloGold Ashanti’s ADSs.


AngloGold Ashanti has entered into an Amended and Restated Deposit Agreement dated 3 June 2008 with The Bank of New York Mellon as depositaryDepositary and the owners and beneficial owners of American Depositary Receipts (Deposit Agreement).


The following is a summary of the material provisions of the Deposit Agreement. For more complete information, read the entire Deposit Agreement and the Form of American Depositary Receipt, which AngloGold Ashanti has filed with the SEC as an exhibit to AngloGold Ashanti’s registration statements on Form F-6F-6 (Registration No. 333-133049Nos. 333-133049 and No. 333-159248) on 27 May 2008 and 14 May 2009, respectively. A copy thereof is also attached hereto as Exhibit 19.2.6 and is incorporated herein by reference. See “Item 10H: Documents on Display”. Copies of the Deposit Agreement are also available for inspection at the Corporate Trust Office of The Bank of New York Mellon currently located at 240 Greenwich Street, New York, New York 10286.


Description of the ADSs


The Bank of New York Mellon, as depositary, will registerDepositary, registers and deliverdelivers ADSs. Each ADS will representrepresents one ordinary share (or a right to receive one share) deposited with Standard Bank of South Africa Limited, FirstRand Bank Limited or HSBC Bank Australia Limited, each as a custodian for The Bank of New York Mellon, and all of which are referred to collectively as “the Custodian”the “Custodian”. Each ADS will also representrepresents any other securities, cash or other property which may be held by The Bank of New York Mellon. The Bank of New York Mellon’s Corporate Trust Office at which the ADSs will beare administered is located at 240 Greenwich Street, New York, New York 10286. The Bank of New York Mellon’s principal executive office is also located at 240 Greenwich Street, New York, New York 10286.


ADSs may be held either (A) directly (i) by having an American Depositary Receipt, also referred to as an ADR, which is a certificate evidencing a specific number of ADSs, registered in the holder’s name, or (ii) by having ADSs registered in a holder’s name in the Direct Registration System, or (B) indirectly by holding a security entitlement in ADSs through a broker or other financial institution. If ADSs are held directly, such holders are ADS holders. This description applies to AngloGold Ashanti’s ADS holders. If ADSs are held indirectly, such holders must rely on the procedures of their broker or other financial institution to assert



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the rights of ADS registered holders described in this section. Such holders should consult with their broker or financial institution to find out what those procedures are.


The Direct Registration System, or DRS, is a system administered by DTC pursuant to which the depositaryDepositary may register the ownership of uncertificated ADSs, which ownership will be evidenced by periodic statements sent by the depositaryDepositary to the registered holders of uncertificated ADSs.


AngloGold Ashanti willdoes not treat ADS holders as its shareholders and ADS holders do not have shareholder rights. South African law governs shareholder rights. The Bank of New York Mellon is the holder of the shares underlying the ADSs. Registered holders of ADSs have ADS holder rights. The Deposit Agreement sets out ADS holder rights as well as the rights and obligations of The Bank of New York Mellon. New York law governs the Deposit Agreement and the ADSs.


Dividends and Other Distributions


The Bank of New York Mellon has agreed to pay to holders of ADSs the cash dividends or other distributions it or a custodianCustodian receives on AngloGold Ashanti ordinary shares or other deposited securities after deducting any fees and expenses and any applicable withholding taxes. Holders of ADSs will receive these distributions in proportion to the number of AngloGold Ashanti’s ordinary shares that their ADSs represent.


Cash


The Bank of New York Mellon will convert any cash dividend or other cash distribution (in South African rands) that AngloGold Ashanti pays on ordinary shares into US dollars (unless AngloGold Ashanti pays such dividend or cash distribution in US dollars) and distribute to registered holders of ADSs. If that is no longer possible or if any approval from any government is needed and cannot be obtained, The Bank of New York Mellon may distribute non-US currency only to those ADS holders to whom it is possible to make this type of distribution.



The Bank of New York Mellon may hold the non-US currency it cannot convert for the account of holders of ADSs who for one reason or the other have not been paid. It will not invest the non-US currency, and it will not be liable for interest on such amounts. Before making a distribution, any withholding taxes that must be paid will be deducted. See “Payment of Taxes” below. The Bank of New York Mellon will distribute only whole US dollars and cents and will round fractional cents to the nearest whole cent. If the exchange rates fluctuate during a time when The Bank of New York Mellon cannot convert the non-US currency, holders of ADSs may lose some or all of the value of the distribution.


Ordinary Shares


The Bank of New York Mellon may distribute to holders of ADSs additional ADSs representing ordinary shares that AngloGold Ashanti distributes as a dividend or free distribution, if AngloGold Ashanti provides such distributionit promptly with satisfactory evidence that it is legal to do so. If The Bank of New York Mellon does not distribute additional ADSs, the outstanding ADSs will also represent the newly distributed AngloGold Ashanti ordinary shares. The Bank of New York Mellon will only distribute whole ADSs. It will sell AngloGold Ashanti ordinary shares that would require it to deliver a fraction of an ADS and distribute the net proceeds in the same way as it distributes cash. The Bank of New York Mellon may sell a portion of the distributed shares sufficient to pay its fees and expenses in connection with that distribution.


Rights to Subscribe for Additional Ordinary Shares


If AngloGold Ashanti offers holders of its ordinary shares any rights to subscribe for additional AngloGold Ashanti ordinary shares or any other rights, The Bank of New York Mellon, after consultation with AngloGold Ashanti, may make these rights available to holders of ADSs or sell the rights and distribute the proceeds in the same way as it distributes cash. If The Bank of New York Mellon cannot do either of these things for any reason, it may allow these rights to lapse. In that case, holders of ADSs will receive no value for them.


If The Bank of New York Mellon makes these types of subscription rights available to holders of ADSs,ADS, upon instruction from holders of ADSs, it will exercise the rights and purchase AngloGold Ashanti’s ordinary shares on their behalf. The Bank of New York Mellon will then deposit the AngloGold Ashanti ordinary shares and deliver ADSs to the holders of ADSs. It will only exercise these rights if holders of ADSs pay it the exercise price and any other charges the rights require them to pay.


US securities laws may restrict the sale, deposit, cancellation and transfer of the ADSs issued after the exercise of rights. For example, holders of ADSs may not be able to trade the ADSs freely in the United States. In this case, The Bank of New York Mellon may deliver ADSs which are "restricted securities"“restricted securities” within the meaning of Rule 144 which will have the same provisions as the ADSs described here, except for the changes needed to put the restrictions in place.


Other Distributions


The Bank of New York Mellon will send to holders of ADSs any other distributions that AngloGold Ashanti makes on deposited securities by any means it thinks is legal, fair and practical. If it cannot make the distribution in that way, The Bank of New York



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Mellon may decide to sell what AngloGold Ashanti distributes, and then distribute the net proceeds in the same way as it distributes cash, or it may decide to hold what AngloGold Ashanti distributes, in which case the outstanding ADSs will also represent the newly distributed property. However, The Bank of New York Mellon is not required to distribute any securities (other than ADSs) to ADS holders unless it receives satisfactory evidence from AngloGold Ashanti that it is legal to make that distribution. The Bank of New York Mellon may sell a portion of the distributed securities or property sufficient to pay its fees and expenses in connection with that distribution.


The Bank of New York Mellon is not responsible if, based on available information, it decides that it is unlawful or impractical to make a distribution available to any ADS holders. AngloGold Ashanti has no obligation to register ADSs, AngloGold Ashanti ordinary shares, rights or other securities under the US Securities Act of 1933.Act. AngloGold Ashanti also has no obligation to take any other action to permit the distribution of ADSs, AngloGold Ashanti ordinary shares, or any other rights to ADS holders. This means that the holders of ADSs may not receive the distribution AngloGold Ashanti makes on its ordinary shares or any value for them if it is illegal or impracticalimpracticable for AngloGold Ashanti to make them available to the holders of ADSs.


Deposit, Withdrawal and Cancellation


The Bank of New York Mellon will deliver ADSs if a holder of AngloGold Ashanti’s ordinary shares or theirits broker deposits AngloGold Ashanti’s ordinary shares or evidence of rights to receive ordinary shares with the Custodian. Upon payment of its fees and expenses and of any taxes or charges, such as stamp taxes or stock transfer taxes or fees, The Bank of New York Mellon will register the appropriate number of ADSs in the names such holder of AngloGold Ashanti ordinary shares requests and will deliver the ADSs at its Corporate Trust officeOffice to the persons such holders request.


Holders of ADSs may turn in their ADSs at The Bank of New York Mellon’s Corporate Trust Office. Upon payment of its fees and expenses and of any taxes or charges, such as stamp taxes or stock transfer taxes or fees, The Bank of New York Mellon will deliver (1) the underlying ordinary shares to an account designated by the relevant holder of ADSs and (2) any other deposited

securities underlying the ADSs at the office of the Custodian, or, at the request, risk and expense of ADS holders, The Bank of New York Mellon will deliver the deposited securities at its Corporate Trust Office.


Interchange Between Certificated ADSs and Uncertificated ADSs


ADS registered holders may surrender their ADS to The Bank of New York Mellon for the purpose of exchanging such ADS for uncertificated ADSs. The Bank of New York Mellon will cancel that ADS and will send to the ADS registered holder a statement confirming that the ADS registered holder is the registered holder of uncertificated ADSs. Alternatively, upon receipt by The Bank of New York Mellon of a proper instruction from a registered holder of uncertificated ADSs requesting the exchange of uncertificated ADSs for certificated ADSs, The Bank of New York Mellon will execute and deliver to the ADS registered holder an ADS evidencing those ADSs.


Voting Rights


ADS registered holders may instruct The Bank of New York Mellon to vote the number of deposited shares their ADSs represent. The Bank of New York Mellon will notify ADS registered holders of shareholders’ meetings and arrange to deliver AngloGold Ashanti’s voting materials to them if AngloGold Ashanti asks it to. Those materials will describe the matters to be voted on and explain how ADS registered holders may instruct The Bank of New York Mellon how to vote. For instructions to be valid, they must reach The Bank of New York Mellon by a date set by The Bank of New York Mellon.


Otherwise, ADS registered holders will not be able to exercise their right to vote unless they withdraw the shares. However, ADS registered holders may not know about the meeting sufficiently in advance to withdraw the shares.


The Bank of New York Mellon will try, as far as practical,practicable, to vote or to have its agents vote the ordinary shares or other deposited securities as holders of ADSs instruct, but this is subject to South African law, the provisions of AngloGold Ashanti’s MoI and of the deposited securities and any applicable rule of the JSE. The Bank of New York Mellon will only vote or attempt to vote as such holders of ADSs instruct.


AngloGold Ashanti cannot assure the holders of ADSs that they will receive the voting materials in time for them to instruct The Bank of New York Mellon to vote their ordinary shares. In addition, The Bank of New York Mellon and its agents are not responsible for failing to carry out voting instructions or for the manner of carrying out voting instructions. This means that holders of ADSs may not be able to exercise their right to vote and there may be nothing they can do if their ordinary shares are not voted as they requested.






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Fees and expenses
Expenses
ADS holders must pay:For:
$5.00 (or less) per 100 ADSs
Each issuance of an ADS, including as a result of a distribution of AngloGold Ashanti ordinary shares or rights or other property



Each cancellation of an ADS, including if the Deposit Agreement terminates
$0.02 (or less) per ADSAny cash payment
Registration or transfer feesTransfer and registration of AngloGold Ashanti ordinary shares on the AngloGold Ashanti share register to or from the name of The Bank of New York Mellon or its agent when AngloGold Ashanti ordinary shares are deposited or withdrawn
$0.02 (or less) per ADS per yearDepositary services
Expenses of The Bank of New York Mellon
Conversion of non-US currency to US dollars



Cable, telex and facsimile transmission expenses



Servicing the deposited securities
Taxes and other governmental charges that The Bank of New York Mellon or any custodianCustodian has to pay on any ADS or AngloGold Ashanti ordinary share underlying an ADS, for example, stock transfer taxes, stamp duty or withholding taxes
As necessary


A fee equivalent to the fee that would have been payable if the securities distributed had been ordinary shares deposited for issuance of ADSsDistribution of securities distributed to holders of deposited securities that are distributed by The Bank of New York Mellon to ADS holders






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Payment of Taxes


Holders of ADSs will be responsible for any taxes or other governmental charges payable on their ADSs or on the deposited securities underlying their ADSs. The Bank of New York Mellon may refuse to transfer their ADSs or allow them to withdraw the deposited securities underlying their ADSs until such taxes or other charges are paid. It may apply payments owed to holders of ADSs or sell deposited securities underlying their ADSs to pay any taxes they owe, and they will remain liable for any deficiency. If theThe Bank of New York Mellon sells deposited securities, it will, if appropriate, reduce the number of ADSs to reflect the sale and pay to holders of ADSs any proceeds, or send to them any property remaining after it has paid the taxes.


Reclassifications
If AngloGold Ashanti:Then:
Reclassifies, splits up or consolidates any of the deposited securities;


The cash, ordinary shares or other securities received by The Bank of New York Mellon will become deposited securities. Each ADS will automatically represent its equal share of the new deposited securities.
Distributes securities on the ordinary shares that are not distributed to holders of ADSs; or



Recapitalises, reorganises, merges, liquidates, sells all or substantially all of AngloGold Ashanti’s assets, or takes any similar action.
The Bank of New York Mellon may, and will if AngloGold Ashanti asks it to, distribute some or all of the cash, AngloGold Ashanti ordinary shares or other securities it receives. It may also issue new ADSs or ask holders of ADSs to surrender their outstanding ADSs in exchange for new ADSs identifying the new deposited securities.


Amendment and Termination


AngloGold Ashanti may, for any reason, agree with The Bank of New York Mellon to amend the Deposit Agreement and the ADSs without the consent of holders. If the amendment increases fees or charges (except for taxes and other governmental charges or registration fees, cable, telex or facsimile transmission costs, delivery costs or other such expenses) or if the amendment prejudices an important right of ADS holders, it will only become effective 30 days after The Bank of New York Mellon notifies holders of ADSs of the amendment. At the time an amendment becomes effective, holders of ADSs are considered, by continuing to hold their ADSs, to agree to the amendment and to be bound by the ADSs and the agreement as amended.


The Bank of New York Mellon may terminate the Deposit Agreement by mailing notice of termination to ADS holders at least 30 days prior to the date fixed in the notice if AngloGold Ashanti asks it to do so. The Bank of New York Mellon may also terminate the Deposit Agreement if The Bank of New York Mellon has told AngloGold Ashanti that it would like to resign and AngloGold Ashanti has not appointed a new depositaryDepositary bank within 90 days. In both cases, The Bank of New York Mellon must notify holders of AngloGold Ashanti ADSs at least 30 days before termination.


After termination, The Bank of New York Mellon and its agents will be required to do only the following under the Deposit Agreement: collect distributions on the deposited securities, sell rights, and, upon surrender of ADSs, deliver AngloGold Ashanti ordinary shares and other deposited securities. Four months after the date of termination or later, The Bank of New York Mellon may sell any remaining deposited securities by public or private sale and will hold the proceeds of the sale, as well as any other cash it is holding under the Deposit Agreement, for the pro rata benefit of the ADS holders who have not surrendered their ADSs. It will not invest the money and will have no liability for interest. The Bank of New York Mellon’s only obligations will be to account for the proceeds of the sale and other cash. After termination, AngloGold Ashanti’s only obligations will be with respect to indemnification of, and payment of certain amounts to, The Bank of New York Mellon.


Limitations on Obligations and Liability to ADS Holders


The Deposit Agreement expressly limits AngloGold Ashanti’s obligations and the obligations of The Bank of New York Mellon, and limits AngloGold Ashanti’s liability and the liability of The Bank of New York Mellon. AngloGold Ashanti and The Bank of New York Mellon:
•are only obligated to take the actions specifically set forth in the Deposit Agreement without negligence or bad faith;
•are not liable if either of AngloGold Ashanti or The Bank of New York Mellon is prevented or delayed by law or circumstances beyond their control from performing their obligations under the Deposit Agreement;
•are not liable if either of AngloGold Ashanti or The Bank of New York Mellon exercises discretion permitted under the Deposit Agreement;
•are not liable for the inability of any holder of ADSs to benefit from any distribution on deposited securities that is not made available to holders of ADSs under the terms of the Deposit Agreement, or for any special, consequential or punitive damages for any breach of the terms of the Deposit Agreement;
•have no obligation to become involved in a lawsuit or other proceeding related to the ADSs or the Deposit Agreement on behalf of the holders of ADSs or on behalf of any other party;

•may rely on advice of or information from legal counsel, accountants, and any persons presenting AngloGold Ashanti’s ordinary shares for deposit, any registered holder or any other person believed by AngloGold Ashanti in good faith to be competent to give such advice or information; and



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•pursuant to the Deposit Agreement AngloGold Ashanti and The Bank of New York Mellon agree to indemnify each other under certain circumstances.


Requirements for Depositary Action


Before The Bank of New York Mellon will issue, transfer or register the transfer of an ADS, make a distribution on an ADS, or allow withdrawal of AngloGold Ashanti ordinary shares, The Bank of New York Mellon may require:
•payment of stock transfer or other taxes or other governmental charges and transfer or registration fees charged by third parties for the transfer of any ordinary shares or other deposited securities;
•production of satisfactory proof of the identity and genuineness of any signature or other information it deems necessary; and
•compliance with regulations it may establish, from time to time, consistent with the Deposit Agreement, including presentation of transfer documents.


The Bank of New York Mellon may refuse to deliver, transfer or register transfers of ADSs generally when the books of The Bank of New York Mellon or AngloGold Ashanti’s booksAshanti are closed, or at any time if either AngloGold Ashanti or The Bank of New York Mellon thinks it advisable to do so.


Holders of ADSs have the right to cancel their ADSs and withdraw the underlying ordinary shares at any time except:
•when temporary delays arise because: (1) either AngloGold Ashanti or The Bank of New York Mellon have closed AngloGold Ashanti’s transfer books; (2) the transfer of the ordinary shares is blocked in connection with voting at a general meeting of shareholders; or (3) AngloGold Ashanti is paying a dividend on the ordinary shares;
•when ADS holders seeking to withdraw the ordinary shares are liable for unpaid fees, taxes and similar charges; or
•when it is necessary to prohibit withdrawals in order to comply with any laws or governmental regulations that apply to ADSs or to the withdrawal of the ordinary shares or other deposited securities.


This right of withdrawal may not be limited by any other provision of the Deposit Agreement.


Pre-release of ADSs


In certain circumstances, subject to the provisions of the Deposit Agreement, The Bank of New York Mellon may deliver ADSs before deposit of the underlying ordinary shares. This is called a pre-release of the ADS.


The Bank of New York Mellon may also deliver AngloGold Ashanti ordinary shares upon cancellation of pre-released ADSs (even if the ADSs are cancelled before the pre-release transaction has been closed out). A pre-release is closed out as soon as the underlying AngloGold Ashanti ordinary shares are delivered to The Bank of New York Mellon. The Bank of New York Mellon may receive ADSs instead of ordinary shares to close out a pre-release.


The Bank of New York Mellon may pre-release ADSs only under the following conditions:
•before or at the time of the pre-release, the person to whom the pre-release is being made must represent to The Bank of New York Mellon in writing that it or its customer: (a) owns the ordinary shares or ADSs to be remitted, (b) assigns all beneficial rights, title and interest in such ADSs or ordinary shares, as the case may be, to The Bank of New York Mellon in its capacity as the depositaryDepositary and for the benefit of the ADS holders, and (c) will not take any action with respect to such ADSs or ordinary shares, as the case may be, that is consistent with the transfer of beneficial ownership (including, without the consent of The Bank of New York Mellon, disposing of such ADSs or ordinary shares, as the case may be) other than satisfaction of such pre-release;
•the pre-release must be fully collateralizedcollateralised with cash, US government securities, or other collateral that The Bank of New York Mellon considers appropriate; and
the•The Bank of New York Mellon must be able to close out the pre-release on not more than five business days’ notice. Each pre-release will be subject to any further indemnities and credit regulations that The Bank of New York Mellon deems appropriate. The Bank of New York Mellon will normally limit the number of AngloGold Ashanti ordinary shares not deposited but represented by ADSs outstanding at any time as a result of pre-release so that they do not exceed 30 percent of the ordinary shares deposited, although The Bank of New York Mellon may disregard this limit from time to time, if it thinks it is appropriate to do so.


Direct Registration System


In the Deposit Agreement, all parties to the Deposit Agreement acknowledge that the DRS and Profile Modification System, or Profile, will apply to uncertificated ADSs upon acceptance thereof to DRS by The Depository Trust Company, also referred to as DTC. DRS is the system administered by DTC pursuant to which the depositaryDepositary may register the ownership of uncertificated ADSs, which ownership will be evidenced by periodic statements sent by the depositaryDepositary to the registered holders of uncertificated ADSs. Profile is a required feature of DRS which allows a DTC participant, claiming to act on behalf of a registered holder of ADSs, to direct the depositaryDepositary to register a transfer of those ADSs to DTC or its nominee and to deliver those ADSs to the DTC account of that DTC participant without receipt by the depositaryDepositary of prior authorizationauthorisation from the ADS registered holder to register that transfer.






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In connection with and in accordance with the arrangements and procedures relating to DRS/Profile, the parties to the Deposit Agreement understand that The Bank of New York Mellon will not verify, determine or otherwise ascertain that the DTC participant which is claiming to be acting on behalf of an ADS holder in requesting registration of transfer and delivery described in the paragraph above has the actual authority to act on behalf of the ADS holder (notwithstanding any requirements under the Uniform Commercial Code). In the Deposit Agreement, the parties agree that The Bank of New York Mellon’s reliance on and compliance with instructions received by The Bank of New York Mellon through the DRS/Profile System and in accordance with the Deposit Agreement will not constitute negligence or bad faith on the part of The Bank of New York Mellon.


Shareholder Communications: Inspection of Register of Holders of ADSs


The Bank of New York Mellon will make available for inspection at its office all communications that it receives from AngloGold Ashanti as a holder of deposited securities that AngloGold Ashanti makes generally available to holders of deposited securities. The Bank of New York Mellon sends copies of those communications if requested by AngloGold Ashanti. ADS holders have a right to inspect the register of holders of ADSs, but not for the purpose of contacting those holders about a matter unrelated to AngloGold Ashanti’s business or the ADSs.






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10D.Exchange controls


Exchange controls and other limitations affecting security holders


The following is a general outline of South African exchange controls and such outline may not apply to former residents of South Africa. Investors should consult a professional advisor as to the exchange control implications of their particular investments.


South African law provides for exchange control regulations, which restrict the export of capital from the Common Monetary Area, which comprises South Africa, the Kingdoms of Lesotho and Swaziland and the Republic of Namibia. The exchange control regulations, whichAfrica. Exchange controls are administered by the Financial Surveillance Department of the South African Reserve Bank (SARB), are applied throughoutin terms of the Exchange Control Regulations, and regulate transactions involving South African residents and non-residents, with the exception of transactions between South African residents and residents of the Common Monetary Area, which comprises the Kingdoms of Lesotho and regulate transactions (including capital flows intoEswatini (formerly Swaziland) and outthe Republic of the Common Monetary Area) involving South African residents, including natural persons and legal entities.

Government officials have from time to time stated their intentions to relax South Africa’s exchange control regulations when economic conditions permit such action. In his budget speech in March 1998, the then Minister of Finance first announced that restrictions relating to offshore investments by South African companies and individuals subject to South African exchange control would, to a limited extent, be lifted. Since then, the government has incrementally relaxed aspectsNamibia. The purpose of exchange control forcontrols is to mitigate the decline of foreign capital reserves in South African companies and financial institutions as well as forAfrica.

The Government of South African individuals. However, it is impossibleAfrica has, however, committed itself to predict with any certainty if and when the government will removerelaxing exchange controls gradually and significant relaxation has occurred in their entirety or how the controls may continue to change over time.recent years.


The comments below relate, in general, to exchange controls in place at the date of this annual report.


Investments in South African companies


A foreign investor may invest freely in ordinary shares in a South African company. Any foreign investor may also sell shares in a South African company and transfer the proceeds out of South Africa without restriction. Acquisitions of shares or assets of South African companies by non-South African purchasers are not generally subject to review and approval by the SARB, whenparticularly where the consideration is payable in cash, but may requirea form other than cash. In this regard, the SARB review andwill give approval in certain circumstances, including whenwhere it is persuaded, inter alia, that the consideration is equity in a non-South African company or whenpayable for the acquisition of the shares or assets is financed by a loan froman arm’s-length consideration and that such acquisition offers benefits to South Africa. In addition, where shares in a South African lender.company are acquired by a non-resident, the share certificates issued to the non-resident shareholder must be endorsed “non-resident” by the SARB (or an Authorised Dealer).


Dividends


Dividends declared to foreign stockholders in public companies listed on the Johannesburg Stock Exchange (JSE) are not subject to the approval of the SARB.SARB, provided that the shares in respect of which the dividends are declared have been endorsed “non-resident” by the SARB or an Authorised Dealer at the time of acquisition. Dividends are freely transferable to foreign stockholders from both trading and non-trading profits earned in South Africa by public listed companies.


Voting rights


There are no limitations imposed by South African law, including South African exchange controls, or by the Memorandum of Incorporation of AngloGold Ashanti on the rights of non-South African shareholders to vote their ordinary shares.


Overseas financing, interest and investments


Interest on foreign loans, if paid from cash generated from operations in South Africa, may be remittable abroad, provided that the loans and the payment of the relevant interest in respect of such loans have received prior SARB approval.


AngloGold Ashanti and its South African subsidiaries require SARB approval to raise debt from and repay debt to non-residents of the Common Monetary Area, mainly in respect of the terms of repayment applicable to such loans, as well as any guarantees that may be provided in respect of such loans, by AngloGold Ashanti or its South African subsidiaries.


Debt raised outside the Common Monetary Area by AngloGold Ashanti’s non-South African subsidiaries is not restricted under South African exchange control regulations and can be used for investment outside the Common Monetary Area, subject to the relevant conditions imposed by the SARB in connection with such investment, the establishing of such a non-South African subsidiary or in raising the debt by such subsidiary. For example, AngloGold Ashanti and its South African subsidiaries would require SARB approval in order for AngloGold Ashanti and/or its South African subsidiaries to provide guarantees for the obligations of any of its non-South African subsidiaries. In addition, funds obtained from non-residents of the Common Monetary Area and debt raised outside the Common Monetary Area by AngloGold Ashanti’s non-South African subsidiaries must be repaid or serviced by AngloGold Ashanti’s foreign subsidiaries unless otherwise approved by the SARB.


A listing by a South African company on any stock exchange other than the JSE in connection with raising capital requires permission from the SARB.


Under current exchange control regulations, offshore investments by AngloGold Ashanti and its subsidiaries require the approval of the SARB. Subject to such prior approval of the SARB, there is no limit on the amount of capital that may be invested offshore.


10E.Taxation


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10E.Taxation

South African taxation


General
The following discussionsummary summarises the South African tax consequences of the ownership and disposition of shares by South African residents or ADSs by a US holder (as defined below) and is not intended to constitute tax advice. This summary is based upon current South African tax law and South African Revenue Service (SARS) practice, the Convention Between the Government of the United States of America and the Republic of South Africa for the Avoidance ofUS/SA Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income and Capital Gains, signed 17 February 1997 (Treaty),Treaty, and in part upon representations of the depositary,Depositary, and assumes that each obligation provided for in, or otherwise contemplated by, a Deposit Agreement and any related agreement will be performed in accordance with its respective terms.



The following summary of the South African tax considerations does not address the tax consequences to a US holder that is resident in South Africa for South African tax purposes, whose holding of shares or ADSs is effectively connected with a permanent establishment in South Africa through which such US holder carries on business activities or, in the case of an individual, who performs independent personal services, with a fixed base situated therein, or who is otherwise not entitled to the full benefits under the US/SA Double Taxation Treaty.


The statements of law set forth below are subject to any changes (which may be applied retroactively) in South African law or in the interpretation thereof by SARS, or in the US/SA Double Taxation Treaty, occurring after the date hereof. It should be expressly noted that South African tax law does not specifically address the treatment of ADSs. However, it is reasonable to assume (although no assurance can be made) that the tax treatment of US holders of shares is also applicable to US holders of ADSs.


Holders are strongly urged to consult their own tax advisors as to the consequences under South African, US federal, state and local, and other applicable laws, of the ownership and disposition of shares or ADSs.


Taxation of dividends


South Africa currently imposes a Dividend Withholding Tax on Companies (dividends tax) at a rate of 20 percent on the net amount of the dividend declared and paid by a resident company, other than a Headquarter Company.


The dividends tax is generally imposed on the beneficial owner of the dividends. The dividends tax is subject to domestic exemptions or relief in terms of an applicable double taxation treaty. The application of such domestic exemptions or relief in terms of an applicable double taxation treaty is subject to the making of certain declarations and undertakings by the beneficial owner of the dividends to the regulated intermediary making payment of the dividend. In terms of the latest amendments to the tax provisions, the declaration and undertaking entitling the beneficial owner to a reduced dividend withholding tax rate must be renewed every five years, subject to certain exemptions.

The dividends tax could be reduced to a lower rate under an applicable double tax treaty, if all requirements are met. In the case of dividends paid to a US holder with respect to shares, the US/SA Double Taxation Treaty would generally limit the dividends tax rate to five percent of the gross amount of the dividends if a corporate US holder holds directly at least 10 percent of the voting stock of AngloGold Ashanti,the Company, provided that the applicable declaration and undertaking are given by the beneficial owner that the reduced rate applies. In all other cases, the maximum tax rate under the US/SA Double Taxation Treaty is 15 percent of the gross amount of the dividend. Even though the domestic rate is 20 percent on the net amount of the dividends, the maximum rate that is payable under the Treaty is 15 percent of the gross amount of the dividends. Different rules may apply if the beneficial owner of the dividends is a US resident who carries on business in South Africa through a permanent establishment situated in South Africa, or performs in South Africa independent personal services from a fixed basepermanent establishment situated in South Africa, and the dividends are attributable to such permanent establishment or fixed base. Moreover, if the dividends tax rate is reduced under the auspices of an applicable double tax treaty, certain South African compliance requirements must be met in order to obtain the double tax treaty relief, amongst others the completion of a declaration and undertaking by the beneficial owners in favour of the Company and/or the relevant participant.regulated intermediary. In terms of the latest tax provisions the declaration and undertaking need to be renewed at least every five years unless the regulated intermediary is subject to the provisions of inter alia the US Foreign Account Tax Compliance legislation.


A dividend is currently defined as any amount transferred or applied by a company that is a resident (including AngloGold Ashanti)the Company) for the benefit or on behalf of any person in respect of any share in that company, whether that amount is transferred or applied by way of a distribution made by the company, or as consideration for the acquisition of any share in that company. The definition of a dividend specifically excludes any amount transferred or applied by the company that results in a reduction of so-called contributed tax capital (CTC) of the relevant class of shares, or constitutes shares in the company or constitutes an acquisition by the company of its own securities by way of a general repurchase of securities in terms of the JSE Listings Requirements. A distinction is thus made between a general repurchase of securities and a specific repurchase of securities. If the company embarks upon a general repurchase of securities, the proceeds areof such repurchase would not deemed to beconstitute a dividend whereas, in the case of a specific repurchase of securities where the purchase price is not funded out of CTC of that class of shares, the proceeds arewould likely to constitute a dividend.


The concept of CTC effectively means the sum of the stated capital or share capital and share premium of a company that existed on 1 January 2011, excluding any transfers from reserves to the share premium account or stated capital account, plus



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proceeds from the issue of any new shares by a company.company, less the amount of CTC that has been returned to shareholders. Any application of CTC is limited to the holders of a class of shares and specifically thatshares. In addition, a distribution of CTC attributable to a specific class must be made proportionately to the number of shares held by a shareholder in a specific class. The definition of CTC is subject to various provisos.


For dividends tax purposes a dividend is defined as any dividend as indicated above that is paid by a company that is a resident or paid by a foreign company if the share in respect of which that foreign dividend is paid is a listed share and to the extent that the foreign dividend does not constitute a distribution of an asset in kind.



Dividends are generally exempt from the payment of income tax, subject to various exclusions.


Taxation of capital gains on sale or other disposition


South African residents are (subject to certain exemptions) taxed on their worldwide income, while non-residents are only taxed on South African sourced income (subject to the provisions of any relevant double taxation agreement).


Capital gains tax is not a separate tax to income tax; instead, a percentile of the taxpayer’s net capital gain (that is the taxable capital gain) is included in its taxable income on which it is taxed at the income tax rate.


Non-residents are only subject to the South African capital gains tax provisions in respect of the disposal of any immovable property (such as land and buildings or mining rights) or any interest or right of whatever nature to or in immovable property situated in South Africa, or any asset of a permanent establishment through which that non-resident is carrying on a trade in South Africa. In the instance of a shareholder holding shares in a South African company, the ‘interest in immovable property’ requirements are met if 80 percent or more of the market value of the shares is directly or indirectly attributable to South African immovable property held on capital account, and that shareholder (whether alone or together with any connected person in relation to that person), directly or indirectly, holds at least 20 percent of the equity shares of that South African company.


Gains realised on the sale of ordinary shares are automatically deemed to be onof a capital accountnature and therefore, subject to capital gains tax provided the ordinary shares have been held for a continuous period of at least three years. This deeming provision is limitedapplicable to ordinary shares“equity shares” as defined in section 1 of the South African Income Tax Act, No. 58 of 1962 (the “SA Income Tax Act”), and doesmay not extend to preference shares or ADSs. ADSs where the preference shares or ADSs do not constitute “equity shares” as so defined.

The meaning of the word “resident” is different for individuals and corporations and is governed by the South African Income Tax Act 1962 ( the Act) and by the Treaty. In the event of conflict, the Treaty, which contains a tie breaker clause or mechanism to determine residency if a holder is resident in both countries, will prevail. In terms of the Act and Treaty, a US resident holder of shares or ADSs will not be subject to capital gains tax on the disposal of securities held as capital assets unless the securities are linked to a permanent establishment conducted in South Africa.Africa or constitute an interest in immovable property as indicated above. In contrast, gains on the disposal of securities which are not capital in nature are usually subject to income tax. Any asset held as a long-term investment will be considered a capital asset and subject to capital gains tax on the disposal of such an asset. Any asset acquired for purposes of resale as part of a profit-making scheme will not be considered a capital asset and will be subject to income tax on the disposal of such an asset. However, even in the latter case, a US resident holder will not be subject to income tax, unless the US resident holder carries on business in South Africa through a permanent establishment situated therein.

The effective marginal rate for South African residents is 36 percent for trusts, 18 percent for individuals and 22,4 percent for companies. The income tax rate applicable in each instance is 45 percent for trusts, 45 percent for individuals and 28 percent for companies.


Securities transfer tax (STT)


No securities transfer tax, or STT, is payable in South Africa with respect to the issue of a security, but STT is payable upon transfer, redemption or redemptioncancellation thereof.


STT on transfers of securities is charged at a rate of 0,250.25 percent on the 'taxable amount'‘taxable amount’ in respect of the 'transfer'‘transfer’ of every security issued by a company incorporated in South Africa, or a company incorporated outside South Africa, but listed on an exchange in South Africa, subject to certain exemptions.


The word 'transfer'‘transfer’ is broadly defined and includes the transfer, sale, assignment or cession or disposal in any other manner of a security which results in a change in beneficial ownership. The cancellation or redemption of a security is also regarded as a transfer‘transfer’ unless the company is being liquidated. However, the transfer of a security that does not result in a change in beneficial ownership is not regarded as a 'transfer'‘transfer’ for STT purposes. A security is also defined as a depositary receipt in a company. Accordingly, STT is payable on the transfer of a depositary receipt issued by a company, including specifically the ADSs issued by AngloGold Ashanti.the Company. Generally, the central securities depositaryDepositary that has been accepted as a participant in terms of the Financial Markets Act, is liable for the payment of the STT, on the basis that it is recoverable from the person to whom it is transferred.


STT is levied on the 'taxable amount'‘taxable amount’ of a security. The taxable amount of a listed security is the greater of the consideration for the security declared by the transferee or the closing price of that security as traded on the stock exchange concerned. InThe person to whom the case of a transfer of a listed security eitheris transferred is liable for payment of the STT, and such tax must be paid through the member or the participant holding the security in custody, or where the listed security is not held in custody, the company that issued the



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listed security. The tax so payable may be recovered from the person to whom the security is liable for the tax.transferred. The tax must be paid by the fourteenth day of the month following the month during which the transfer occurred.


Withholding tax on interest


Generally, a 15 percent withholding tax may apply to the payments of interest. Under the US/SA Double Taxation Treaty, withholding is reduced to zero percent provided the interest is derived and beneficially owned by a resident of the United States.States will be taxable only in the United States (and therefore not subject to interest withholding tax in South Africa), subject to certain exclusions.


UNITED STATES TAXATIONValue-Added Tax


The issue or transfer of shares is not a taxable supply for value-added tax (“VAT”) purposes. However, fees charged by independent service providers would be subject to VAT at the standard rate of 15%.

United States Taxation

General
The following is a general summary of certain material US federal income tax consequences of the ownership and disposition of shares or ADSs to a US holder (as defined below) that holds its shares or ADSs as a capital asset. With respect to the following, references to shares includes references to ADSs unless the context indicates otherwise. This summary does not address any aspect of US federal gift or estate tax, or the state, local or non-US tax consequences to a US holder of shares. This summary is

based on US tax laws including the Internal Revenue Code of 1986, as amended (the Code), Treasury regulations promulgated thereunder, rulings, judicial decisions, administrative pronouncements, and the US/SA Double Taxation Treaty, all as currently in effect as of the date of this annual report, and all of which are subject to change or changes in interpretation, possibly with retroactive effect. In addition, this summary is based in part upon the representations of the depositaryDepositary and the assumption that each obligation in the Deposit Agreement relating to the ADSs and any related agreement will be performed in accordance with its terms.


This summary does not address all aspects of US federal income taxation that may apply to holders that are subject to special tax rules, including US expatriates, non-resident aliens present in the United States for at least 183 days during the calendar year, insurance companies, tax-exempt entities, banks, certain financial institutions, persons subject to the alternative minimum tax, regulated investment companies, securities broker-dealers, traders in securities who elect to apply a mark-to-market method of accounting, investors that own (directly, indirectly or by attribution) 10 percent or more of the outstanding share capital or voting stock of AngloGold Ashanti, partnerships or other entities treated as partnerships for US federal income tax purposes or persons holding shares through such entities, persons holding their shares as part of a straddle, hedging or conversion transaction, persons who acquired their shares pursuant to the exercise of employee stock options or otherwise as compensation, or persons whose functional currency is not the US dollar. Such holders may be subject to US federal income tax consequences different from those set forth below.


As used herein, the term “US holder” means a beneficial owner of shares that is: (a) a citizen or individual resident of the United States for US federal income tax purposes; (b) a corporation (or other entity taxable as a corporation for US federal income tax purposes) created or organised in or under the laws of the United States, any state thereof or the District of Columbia; (c) an estate the income of which is subject to US federal income taxation regardless of its source; or (d) a trust if (i) a court within the United States can exercise primary supervision over the administration of the trust and one or more US persons are authorised to control all substantial decisions of the trust or (ii) it has a valid election in effect under applicable Treasury regulations to be treated as a United States person.


If a partnership (including for this purpose any entity treated as a partnership for US federal income tax purposes) holds shares, the tax treatment of a partner generally will depend upon the status of the partner and the activities of the partnership. If a US holder is a partner in a partnership that holds shares, the holder is urged to consult its own tax advisor regarding the specific tax consequences of the ownership and disposition of the shares.


US holders should consult their own tax advisors regarding the specific South African and US federal, state and local tax consequences of owning and disposing of shares in light of their particular circumstances as well as any consequences arising under the laws of any other taxing jurisdiction. In particular, US holders are urged to consult their own tax advisors regarding whether they are eligible for benefits under the US/SA Double Taxation Treaty.


For US federal income tax purposes, a US holder of ADSs should generally be treated as owning the underlying shares represented by those ADSs. Therefore, deposits or withdrawals by a US holder of shares for ADSs or of ADSs for shares will not be subject to US federal income tax. The following discussion (except where otherwise expressly noted) applies equally to US holders of shares and US holders of ADSs.


▪Taxation of dividends

The gross amount of any distribution (including the amount of any South African withholding tax thereon) paid to a US holder by AngloGold Ashanti generally will be taxable as dividend income to the US holder for US federal income tax purposes on the date



299

the distribution is actually or constructively received by the US holder, in the case of shares, or by the depositary,Depositary, in the case of ADSs. Corporate US holders will not be eligible for the dividends received deduction in respect of dividends paid by AngloGold Ashanti. For foreign tax credit limitation purposes, dividends paid by AngloGold Ashanti will be income from sources outside the United States.


As noted above in “-Taxation-South“Taxation—South African Taxation-Taxationtaxation—Taxation of dividends”, the South African government has enacted a dividend withholding tax. As a result, US holders who are eligible for benefits under the current US/SA Double Taxation Treaty will be subject to a maximum withholding tax of 15 percent on the gross amount of dividend distributions paid by AngloGold Ashanti.


The amount of any distribution paid in foreign currency (including the amount of any South African withholding tax thereon) generally will be includible in the gross income of a US holder of shares in an amount equal to the US dollar value of the foreign currency calculated by reference to the spot rate in effect on the date of receipt by the US holder, in the case of shares, or by the depositary,Depositary, in the case of ADSs, regardless of whether the foreign currency is converted into US dollars on such date. If the foreign currency is converted into US dollars on the date of receipt, a US holder of shares generally should not be required to recognise foreign currency gain or loss in respect of the dividend. If the foreign currency received in the distribution is not converted into US dollars on the date of receipt, a US holder of shares generally will have a tax basis in the foreign currency equal to its US dollar value on the date of receipt. Any gain or loss recognised upon a subsequent conversion or other disposition of the foreign currency generally will be treated as US source ordinary income or loss. In the case of a US holder of ADSs, the amount of any distribution paid in a foreign currency generally will be converted into US dollars by the depositaryDepositary upon its receipt. Accordingly, a US holder of ADSs generally will not be required to recognise foreign currency gain or loss in respect of the distribution. Special rules govern and specific elections are available to accrual method taxpayers to determine the US dollar amount includible in income in the case of

taxes withheld in a foreign currency. Accrual basis taxpayers are therefore urged to consult their own tax advisors regarding the requirements and elections applicable in this regard.


Subject to certain limitations, South African withholding taxes will be treated as foreign taxes eligible for credit against a US holder’s US federal income tax liability. The limitation on foreign taxes eligible for credit is calculated separately with respect to specific classes of income. Dividend income generally will constitute ‘passive category’“passive category” income, or in the case of certain US holders, ‘general category’“general category” income. The use of foreign tax credits is subject to complex conditions and limitations. In lieu of a credit, a US holder who itemises deductions may elect to deduct all of such holder’s foreign taxes in the taxable year. A deduction does not reduce US tax on a dollar-for-dollar basis like a tax credit, but the deduction for foreign taxes is not subject to all the same limitations applicable to foreign tax credits. US holders are urged to consult their own tax advisors regarding the availability of foreign tax credits.


Certain US holders (including individuals) are eligible for reduced rates of US federal income tax in respect of “qualified dividend income” received. AngloGold Ashanti currently believes that dividends paid with respect to its shares should constitute qualified dividend income for US federal income tax purposes. Each individual US holder of AngloGold Ashanti shares is urged to consult his own tax advisor regarding the availability of the reduced dividend tax rate in light of his own particular situation.


The US Treasury has expressed concern that parties to whom ADSs are pre-released may be taking actions that are inconsistent with the claiming of foreign tax credits for US holders of ADSs. Such actions would also be inconsistent with the claiming of the reduced rate of tax described above, applicable to dividends received by certain non-corporate holders. Accordingly, the analysis of the creditability of South African withholding taxes or the availability of qualified dividend treatment could be affected by future actions that may be taken by the US Treasury with respect to ADSs.


▪Taxation of dispositions

If a US holder is a resident of the United States for purposes of the US/SA Double Taxation Treaty, such holder will not be subject to South African tax on any capital gain if it sells or disposes of its shares. Special rules apply to individuals who are residents of more than one country.


Subject to the passive foreign investment company considerations discussed below, upon the sale, exchange or other disposition of shares, a US holder generally will recognise capital gain or loss for US federal income tax purposes in an amount equal to the difference between the US dollar value of the amount realised on the disposition and the holder'sholder’s tax basis, determined in US dollars, in the shares. Such gain or loss generally will be US source gain or loss, and will be treated as a long-term capital gain or loss if the holder’s holding period in the shares exceeds one year at the time of disposition. If the US holder is an individual, any capital gain generally will be subject to US federal income tax at preferential rates if specified minimum holding periods are met. The deductibility of capital losses is subject to limitations under the Code.


A US holder’s tax basis in a share will generally be its US dollar cost. The US dollar cost of a share purchased with foreign currency will generally be the US dollar value of the purchase price on the date of purchase, or the settlement date for the purchase in(in the case of shares traded on an established securities market that are purchased by a cash basis US holder or an electing accrual basis US holder.holder), or the date of purchase in all other cases. The amount realised on a sale or other disposition of shares for an amount in foreign currency will be the US dollar value of this amount on the settlement date for the sale or disposition (in the case of shares traded on an established securities market that are sold by a cash basis US holder or an electing accrual basis US holder), or the date of sale or disposition. On the settlement date,disposition in all other cases. In addition, in such other cases, the US holder will recognise US source foreign



300

currency gain or loss (taxable as ordinary income or loss) equal to the difference (if any) between the US dollar value of the amount received based on the exchange rates in effect on the date of sale or other disposition and the settlement date. However, in the case of shares traded on an established securities market that are sold by a cash basis US holder (or an accrual basis US holder that so elects), the amount realised will be based on the exchange rate in effect on the settlement date for the sale, and no exchange gain or loss will be recognised at that time. If an accrual basis US holder makes either of the elections described above, it must be applied consistently from year to year and cannot be revoked without the consent of the Internal Revenue Services (IRS).


Foreign currency received on the sale or other disposition of a share will have a tax basis equal to its US dollar value on the settlement date. Any gain or loss recognised on a sale or other disposition of foreign currency (including its use to purchase shares or upon exchange for US dollars) will be US source ordinary income or loss.


▪Passive foreign investment company considerations

A foreign corporation will be classified a passive foreign investment company (PFIC) for any taxable year if at least 75 percent of its gross income consists of passive income (such as dividends, interest, rents or royalties (other than rents or royalties derived in the active conduct of a trade or business and received from an unrelated person), or gains on the disposition of certain minority interests), or at least 50 percent of the average value of its assets consists of assets that produce, or are held for the production of, passive income. AngloGold Ashanti believes that it was not treated as a PFIC for the taxable year ended 31 December 20182021 or any prior taxable years and does not expect to become a PFIC in the foreseeable future. If AngloGold Ashanti were characterised as a PFIC for any taxable year, a US holder would suffer adverse tax consequences with respect to that taxable year and all future years during which it holds AngloGold Ashanti ordinary shares.





These consequences may include having gain realised on the disposition of shares treated as ordinary income rather than capital gain and being subject to punitive interest charges on the receipt of certain dividends and on the proceeds of the sale or other disposition of the shares. Furthermore, dividends paid by AngloGold Ashanti would not be “qualified dividend income” and would be taxed at the higher rates applicable to other items of ordinary income. US holders should consult their own tax advisors regarding the potential application of the PFIC rules to their ownership of the shares.


▪US information reporting and backup withholding

In general, dividend payments made to a US holder and proceeds paid from the sale, exchange, or other disposition of shares may be subject to information reporting to the IRS and possible backup withholding. US federal backup withholding generally is imposed at a current rate of 24 percent on specified payments including dividends and gross sale proceeds to persons who fail to furnish required information. Backup withholding will not apply to a US holder who furnishes a correct taxpayer identification number and makes any other required certification or who is otherwise exempt from backup withholding. US persons who are required to establish their exempt status generally must provide IRS Form W-9 (Request for Taxpayer Identification Number and Certification). Backup withholding is not an additional tax. Amounts withheld as backup withholding may be credited against a holder’s US federal income tax liability. A holder may obtain a refund of any excess amounts withheld under the backup withholding rules by filing the appropriate claim for refund with the IRS and furnishing any required information.


▪Information with respect to foreign financial assets

Individuals that own “specified foreign financial assets” with an aggregate value in excess of $50,000 are generally required to file information reports with respect to such assets with their U.S. federal income tax returns. Depending on the individual’s circumstances, higher threshold amounts may apply. “Specified foreign financial assets” include any financial accounts maintained by foreign financial institutions, as well as any of the following, but only if they are not held in accounts maintained by financial institutions: (i) stocks and securities issued by foreign persons, (ii) financial instruments and contracts held for investment that have foreign issuers or counterparties and (iii) interests in foreign entities. Therefore, the shares may be treated as specified foreign financial assets. In such cases, certain US holders may be subject to this information reporting regime and be required to file IRS formForm 8938 listing these assets with their U.S. federal income tax returns. Failure to file information reports may subject a US holder to penalties. US holders are urged to consult their own tax advisors regarding their obligations to file information reports with respect to the shares.








10F.DIVIDENDS AND PAYING AGENTS




301

10F.    DIVIDENDS AND PAYING AGENTS

Not applicable.












10G.STATEMENT BY EXPERTS

10G.    STATEMENT BY EXPERTS

Not applicable.












10H.Documents on Display


AngloGold Ashanti files annual reports on Form 20-F and reports on Form 6-K with the SEC. You may access this information at the SEC’s home page (http://www.sec.gov). Copies of the documents referred to herein may be inspected at AngloGold Ashanti’s offices by contacting AngloGold Ashanti at 76 Rahima Moosa Street, Newtown,112 Oxford Road, Houghton Estate, Johannesburg, 2001 (P.O. Box 62117, Marshalltown, 2107)2198 (Private Bag X 20, Rosebank, 2196) South Africa, Attention: Company Secretary, telephone number: +27 11 637 6000.


No material on the AngloGold Ashanti website forms any part of, or is incorporated by reference into, this annual report on Form 20-F. References herein to the company’s website shall not be deemed to cause such incorporation.





10I.SUBSIDIARY INFORMATION





10I.    SUBSIDIARY INFORMATION

Not applicable.




302

ITEM 11: QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK


TREASURY POLICY


Risk management activities within the group are the ultimate responsibility of the board of directors.board. The Chief Financial Officer is responsible to the board of directors for the design, implementation and monitoring of the risk management plan. The Audit and Risk Committee is responsible for overseeing risk management plans and systems, as well as financial risks which include a review of treasury activities and exposure to the group’s counterparties.


Under the treasuryfinancial and risk management policy, hedges may be put in place once approved by the Board, using approved instruments over the group’s planned gold production and resultant gold sales and currency exposures. The tenor of the hedges may extend out to 10 years. The treasuryfinancial and risk management policy sets trading limits on the extent to which the hedge position may change for the various levels of treasury management from dealer, through treasurer, executive management team and board.board members.


The financial risk management activities objectives of the group are as follows:
•Safeguarding the group’s core earnings stream from its major assets through the effective control and management of gold and other commodity price risk, foreign exchange risk and interest rate risk;
•Effective and efficient usage of credit facilities in both the short- and long-term through the adoption of reliable liquidity management planning and procedures;
•Ensuring that investment and hedging transactions are undertaken with creditworthy counterparts; and
•Ensuring that all contracts and agreements related to financial risk management activities are co-ordinated and consistent throughout the group and comply where necessary with all relevant regulatory and statutory requirements.


Under the treasuryfinancial and risk management policy, treasury reports are produced at the following minimum intervals for review by management and the board of directors.

directors:
•DailyTreasurerTreasury Manager
•MonthlyWeeklyExecutive CommitteeTreasurer
•QuarterlyMonthlyTreasurer
•QuarterlyAudit and Risk Committee and Board of Directors and shareholder reports


The Treasury Risk Analyst is responsible for monitoring all reports for completeness and accuracy which are reviewed by the Treasurer.


At AngloGold Ashanti, all front office (dealing), middle office (risk reporting), back office (deal confirmations) and payment (treasury settlements) activities are segregated. All treasury transactions are captured on a third party developed treasury and risk management system that is widely used in corporate treasuries. The group internal audit function conducts regular and ad-hoc reviews of the activities of treasury and the group’s treasury system.


Gold price risk management activities


In the normal course of its operations, the group is exposed to gold and other commodity price, currency, interest rate, equity price, liquidity and non-performance risk, which includes credit risk. The group is also exposed to certain by-product commodity price risk. In order to manage these risks, the group may enter into transactions which make use of derivatives. The group has developed a risk management process to facilitate, control and monitor these risks.


Gold price risk arises from the risk of an adverse effect of current or future earnings resulting from fluctuations in the price of gold. The group eliminated its hedge book during 2010 and has since had full exposure to the spot price of gold. In December 2018, the group entered into gold zero-cost collar commitments as described below.


As at 31 December 2018,2021, the group hashad no commitments against future production potentially settled in cash.

Foreign exchange price risk protection agreements

The group, from time to time, may enter into currency forward exchange and currency option contracts to hedge certain anticipated transactions denominated in foreign currencies. The objective of the followinggroup’s foreign currency hedging activities is to protect the group from the risk that the eventual cash settled zero-cost collar commitments:flows resulting from transactions denominated in US dollars will be adversely affected by changes in exchange rates.


Gold
In December 2018, AngloGold Ashanti entered into zero-cost collars for a total of 300,000 ounces of South Africa’s gold production, for the period from January 2019 to December 2019. The strike prices are R545,000 per kilogram on the floor and an average price of R725,500 per kilogram on the cap. AtAs at 31 December 2018,2021 and 2020, the mark-to-market value of the derivative was an unrealised loss of $3.6million.group had no open forward exchange or currency option contracts in its currency hedge position.


Oil
In November 2018, AngloGold Ashanti entered into zero-cost collars for a total of 984,000 barrels of Brent crude oil for the period from January 2019 to December 2019. The average strike prices are $56.56 per barrel on the floor and an average price of $82 per barrel on the cap. At 31 December 2018, the mark-to-market value of the derivative was an unrealised loss of $5.6 million.






303

IFRS guidance on derivatives and hedging requires that derivative instruments be accounted for as follows:
•Contracts that meet the criteria for hedge accounting are designated as the hedging instruments, hedging the variability of forecasted cash flows from the sale of production into the spot market and from capital expenditure denominated in a foreign currency and are classified as cash flow hedges. Cash flow hedge losses pertaining to capital expenditure of $1m$1 million as at 31 December 2018 (2017: $2m)2021 (2020: $1 million) are expected to be reclassified from accumulated other comprehensive income and recognised as an adjustment to depreciation expense over the life of the Serra Grande mine.
•All other derivatives are measured at their estimated fair value, with the changes in estimated fair value at each reporting date reported as gains or losses on derivatives in earnings in the period in which they occur.


Cash flows related to these instruments designated as qualifying hedges are reflected in the consolidated statement of cash flows in the same category as the cash flow from the items being hedged. Accordingly, cash flows relating to the settlement of forward sale commodity derivatives contracts hedging the forecasted sale of production into the spot market will be reflected upon settlement as a component of operating cash flows.

Foreign exchange price risk protection agreements

The group, from time to time, may enter into currency forward exchange and currency option contracts to hedge certain anticipated transactions denominated in foreign currencies. The objective of the group’s foreign currency hedging activities is to protect the group from the risk that the eventual cash flows resulting from transactions denominated in US dollars will be adversely affected by changes in exchange rates.

As at 31 December 2018 and 2017, the group had no open forward exchange or currency option contracts in its currency hedge position.


Interest rate and liquidity risk

Fluctuations in interest rates impactsimpact interest paid and received on the short-term cash investments and financing activities, giving rise to interest rate risk.


In the ordinary course of business, the group receives cash from the proceeds of its gold sales and is required to fund its working capital requirements. This cash is managed to ensure that surplus funds are invested in a manner to achieve market related returns while minimising risks.


The group is able to actively source financing at competitive rates. The counterparts are financial and banking institutions and their credit ratings are regularly monitored by the group.


Cash and loans advanced maturity profile
2018201720212020
Maturity dateCurrency
Fixed rate
investment
amount
(million)

 
Effective
rate %
 
Floating rate
investment
amount
(million)

 
Effective
rate %
Fixed rate
investment
amount
(million)

 
Effective
rate %
 
Floating rate
investment
amount
(million)

 
Effective
rate %
Maturity dateCurrencyFixed rate
investment
amount
(million)		Effective
rate %		Floating rate
investment
amount
(million)		Effective
rate %		Fixed rate
investment
amount
(million)		Effective
rate %		Floating rate
investment
amount
(million)		Effective
rate %
All less than one year$—
 — 131
 1.99—
 — 57
 2.39All less than one year$1 — 301 0.10 — 572 0.15 
ZAR121
 6.44 21
 5.25123
 6.46 157
 5.78ZAR1,337 3.54 — — 2,611 3.30 29 2.00 
AUD—
 — 52
 0.20—
 — 22
 0.25AUD— 72 — — 50 — 
BRL—
 — 64
 6.13—
 — 28
 8.60BRL— 106 4.27 — 32 1.90 
ARS13,256 34.00 — 6,679 34.00 4,820 30.00 
CAD— 353 0.19 


Borrowings maturity profile
Within one yearBetween
One and two years		Between Two
and five years		After five yearsTotal
CurrencyBorrowings
amount
(million)		Effective
rate
%		Borrowings
amount
(million)		Effective
rate
%		Borrowings
amount
(million)		Effective
rate
%		Borrowings
amount
(million)		Effective
rate
%		Borrowings amount (million)
$51 7.4 — — 63 7.0 1,717 4.1 1,831 
AUD— — 43 1.5 — — — — 43 
BRL1 5.7 — — — — — — 1 
TZS516 12.5 — — 107,163 12.5 — — 107,679 
 Within one year 
Between
One and two years
Between Two
and five years
After five yearsTotal
Currency
Borrowings
amount
(million)

 
Effective
rate
%

 
Borrowings
amount
(million)

 
Effective
rate
%

Borrowings
amount
(million)

 
Effective
rate
%

Borrowings
amount
(million)

 
Effective
rate
%

Borrowings amount (million)
$29
 5.6
 699
 5.4
877
 5.8
291
 6.5
1,896
ZAR39
 10.1
 443
 8.9
572
 8.7
214
 14.7
1,269
BRL3
 5.2
 2
 5.1
1
 4.0
—
 —
6
AUD6
 6.8
 7
 6.8
23
 80.0
33
 6.8
68
TZS2,762
 12.5
 —
 —
64,427
 12.5
—
 —
67,189


The table above is based on the borrowings as at 31 December 20182021 including borrowing cost and accrued interest but excludes any fair value adjustments.






304

Interest rate risk
Fixed for less than one yearFixed for between one and three yearsFixed for greater than three years
CurrencyBorrowings
amount
(million)		Effective
rate
%		Borrowings
amount
(million)		Effective
rate
%		Borrowings
amount
(million)		Effective
rate
%		Total
Borrowings
amount
(million)
$51 7.4 63 7.0 1,717 4.1 1,831 
AUD— — 43 1.5 — — 43 
BRL1 5.7 — — — — 1 
TZS516 12.5 107,163 12.5— — 107,679 
  Fixed for less than one year Fixed for between one and three years Fixed for greater than three years  
Currency 
Borrowings
amount
(million)

 
Effective
rate
%

 
Borrowings
amount
(million)

 
Effective
rate
%
 
Borrowings
amount
(million)

 
Effective
rate
%

 
Total
Borrowings
amount
(million)

$ 29
 5.6
 729
 5.5 1,138
 5.3
 1,896
ZAR 39
 10.1
 995
 8.8 235
 14.4
 1,269
BRL 3
 5.2
 3
 4.9 1
 3.3
 6
AUD 6
 6.8
 14
 6.8 48
 6.8
 48
TZS 2,762
 12.5
 64,427
 12.5 —
 —
 67,189


The table above is based on the borrowings as at 31 December 20182021 including borrowing cost and accrued interest but excludes any fair value adjustments.


Non-performance risk


Realisation of contracts is dependent upon counterparts’ performance. The group has not obtained collateral or other security to support the financial instruments subject to non-performance risk, but the credit standing of counterparts was monitored on a regular basis throughout the year. The group spreads its business over a number of financial and banking institutions to minimise the risk of potential non-performance risk.non-performance. Furthermore, the approval process of counterparts and the limits applied to each counterpart were monitored by the board of directors. Where possible, ISDA netting agreements were put in place.


The combined maximum credit risk exposure at balance sheet date amounts to $495$1,300 million in 20182021 for financial assets (2017: $361(2020: $1,500 million) and nil million for financial guarantees (2017:(2020: nil). Credit risk exposure netted by open derivative positions with counterparts was nil (2017:(2020: nil). No set-off is applied to balance sheet amounts due to the different maturity profiles of assets and liabilities.


Fair value of financial instruments


The estimated fair values of financial instruments are determined at discrete points in time based on relevant market information. The estimated fair values of the group’s financial instruments, as measured at 31 December, are as follows (assets (liabilities)):

20212020
Carrying
Amount		Fair
value		Carrying
Amount		Fair
value
(millions)$$$$
Cash and cash equivalents1,154 1,154 1,330 1,330 
Restricted cash58 58 73 73 
Deferred compensation asset25 25 28 28 
Short-term borrowings(51)(51)(142)(142)
Long-term borrowings(1,858)(1,960)(1,789)(1,989)
Listed investments - FVTOCI116 116 186 186 
Listed and unlisted investments1 1 2 2 
  2018 2017
  
Carrying
Amount

 
Fair
value

 
Carrying
Amount

 
Fair
value

(millions) $
 $
 $
 $
Cash and cash equivalents 329
 329
 205
 205
Restricted cash 66
 66
 65
 65
Short-term borrowings (139) (139) (38) (38)
Long-term borrowings (1,911) (1,945) (2,230) (2,339)
Listed investments - available for sale     80
 80
Listed investments - held to maturity     4
 6
Unlisted investments - held to maturity     54
 54
Listed investments - FVTPL 19
 19
    
Listed investments - FVTOCI 69
 69
    
Listed and unlisted investments - held to maturity 59
 59
    


The following methods and assumptions were used to estimate the fair value of each class of financial instrument:


Cash restricted for use, cash and cash equivalents


The carrying amounts approximate fair value.


Trade and other receivables and trade and other payables


The carrying amounts approximate fair value because of the short-term duration of these instruments.instruments, except for the deferred compensation asset which is carried at fair value in level 3 of the fair value hierarchy.



Other investments


Investments and other non-current assets


Listed equity investments classified as FVTOCI and FVTPL are carried at fair value while fixed income investments and other non-current assets are carried at amortised cost. Thein level 1 of the fair value of fixed income investments and other non-current assets has been calculated using market interest rates. The unlisted equity investments are carried at cost.hierarchy.






305

Borrowings


The interest rate on borrowings is reset on a short-term floating rate basis, and accordingly the carrying amount is considered to approximate fair value.


Derivatives


The fair values of volatility-based instruments (i.e. options) are estimated based on market prices, volatilities, credit risk and interest rates for the periods under review.



Gain (loss) on non-hedge derivatives and other commodity contracts recognised
Year ended 31 December
20212020
(millions)$$
Other commodity contracts(1)
— (19)
 Year ended 31 December
 2018
 2017
(millions)$ $
Unrealised   
Other commodity contracts2
 10


(1)    Excluding the commodity contracts transferred to held for sale liabilities in 2020.


Foreign exchange risk


Foreign exchange risk arises on financial instruments that are denominated in a foreign currency.


The following table discloses the approximate foreign exchange risk sensitivities of borrowings at 31 December 20182021 (actual changes in the timing and amount of the following variables may differ from the assumed changes below)
.
20182021
Change in
exchange rate
Change in
exchange rate
Change in
borrowings
Total

$M
Debt$M
Debt
ZAR denominated (R/$)Spot (+R1.50)(7)
TZS denominated (TZS/$)Spot (+TZS250)(3(5))
AUD denominated (AUD/$)Spot (+AUD0.1)(3(2))
20182021
Change in

exchange rate
Change in

borrowings

Total

$M
Debt
ZAR denominated (R/$)Spot (-R1.50)9
TZS denominated (TZS/$)Spot (-TZS250)46 
AUD denominated (AUD/$)Spot (-AUD0.1)42 





306

ITEM 12:    DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES




12A.DEBT SECURITIES

12A.    DEBT SECURITIES

Not applicable





12B.    WARRANTS AND RIGHTS
12B.WARRANTS AND RIGHTS


Not applicable




12C.OTHER SECURITIES

12C.    OTHER SECURITIES

Not applicable




12D.AMERICAN DEPOSITARY SHARES

12D.3.DEPOSITARY FEES AND CHARGES

12D.    AMERICAN DEPOSITARY SHARES



12D.3.    DEPOSITARY FEES AND CHARGES


AngloGold Ashanti’s American Depositary Shares, or ADSs, each representing one of AngloGold Ashanti’s ordinary shares, are traded on the New York Stock Exchange under the symbol “AU.” The ADSs are evidenced by American Depositary Receipts, or ADRs, issued by The Bank of New York Mellon, as Depositary under the Amended and Restated Deposit Agreement dated as of 3 June 2008, among AngloGold Ashanti Limited, The Bank of New York Mellon and owners and beneficial owners of from time to time of ADRs. ADS holders may have to pay the following service fees to the Depositary:

ServiceFees (USD)
Issuance of ADSsUp to 5 cents per ADS
(1)
Cancellation of ADSsUp to 5 cents per ADS
(1)
Distribution of cash dividends or other cash distributionsUp to 2 cents per ADS
(2)
Distribution of securities pursuant to
(i) stock dividends, free stock distributions or
(ii) exercises of rights to purchase additional ADSsUp to 5 cents per ADS
(2)
ADR Depositary Services feeUp to 2 cents per year
(2)
(1)
These fees are typically paid to the Depositary by the brokers on behalf of their clients receiving the newly-issued ADSs from the Depositary and by the brokers on behalf of their clients delivering the ADSs to the Depositary for cancellation. The brokers in turn charge these transaction fees to their clients.
(2)
In practice, the Depositary has not collected these fees. If collected, such fees are offset against the related distribution made to the ADR holder.

(1)These fees are typically paid to the Depositary by the brokers on behalf of their clients receiving the newly-issued ADSs from the Depositary and by the brokers on behalf of their clients delivering the ADSs to the Depositary for cancellation. The brokers in turn charge these transaction fees to their clients.
(2)In practice, the Depositary has not collected these fees. If collected, such fees are offset against the related distribution made to the ADR holder.

In addition, ADS holders are responsible for certain fees and expenses incurred by the Depositary on their behalf including (1) taxes and other governmental charges, (2) such registration fees as may from time to time be in effect for the registration of transfers of ordinary shares generally on the share register and applicable to transfers of ordinary shares to the name of the Depositary or its nominee or the Custodian or its nominee on the making of deposits or withdrawals, and (3) such cable, telex and facsimile transmission expenses as are expressly incurred by the Depositary in the conversion of foreign currency.


Fees and other charges payable by the Depositary, any of the Depositary’s agents, including the Custodian, or the agents of the Depositary’s agents in connection with the servicing of Shares or other Deposited Securities, shall be collected at the sole discretion of the Depositary by billing such owners for such charge or by deducting such charge from one or more cash dividends or other cash distributions.


For further information, refer to “Item 10C: Material Contracts - Contracts—The Deposit Agreement”.



12D.4.    DEPOSITARY PAYMENTS FOR 2021
12D.4.DEPOSITARY PAYMENTS FOR 2018


For the year ended 31 December 2018,2021, The Bank of New York Mellon, as Depositary, reimbursed AngloGold Ashanti an amount of $557,454 (2017: $867,747)$1,083,405 (2020: $1,057,722) mainly for investor relations related expenses.








307

PART II
ITEM 13:DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES

ITEM 13:    DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES

None.




308

ITEM 14:    MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS


None.






309

ITEM 15: CONTROLS AND PROCEDURES


(a)
Disclosure Controls and Procedures: As of 31 December 2018 (the “Evaluation Date”), the company, under the supervision and with the participation of its management, including the chief executive officer and chief financial officer has evaluated the effectiveness of the company’s disclosure controls and procedures (as defined in Rules 13a - 15(e) and 15d - 15(e) under the Securities Exchange Act of 1934, as amended (“the Exchange Act”)). Based on such evaluation, the chief executive officer and chief financial officer have concluded that, as of the Evaluation Date, the company’s disclosure controls and procedures are effective, and are reasonably designed to ensure that information required to be disclosed by the company in reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the Securities and Exchange Commission. These disclosure controls and procedures include without limitation, controls and procedures designed to ensure that information required to be disclosed by the company in reports that it files or submits under the Exchange Act is accumulated and communicated to the company’s management, including its chief executive officer and chief financial officer, as appropriate to allow timely decisions regarding disclosure.


(b)Management’s Annual Report on Internal Control over Financial Reporting: Management is responsible for establishing and maintaining adequate internal control over financial reporting for the company, as defined in the Exchange Act Rule 13a - 15(f) and 15d -15(f). The company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of the company’s financial statements for external purposes in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board.

(a)    Disclosure Controls and Procedures: As of 31 December 2021, (the “Evaluation Date”), the company, under the supervision and with the participation of its management, including the chief executive officer and chief financial officer has evaluated the effectiveness of the company’s disclosure controls and procedures (as defined in Rules 13a - 15(e) and 15d - 15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)). Based on such evaluation, the chief executive officer and chief financial officer have concluded that, as of the Evaluation Date, the company’s disclosure controls and procedures are effective, and are reasonably designed to ensure that information required to be disclosed by the company in reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the Securities and Exchange Commission. These disclosure controls and procedures include without limitation, controls and procedures designed to ensure that information required to be disclosed by the company in reports that it files or submits under the Exchange Act is accumulated and communicated to the company’s management, including its chief executive officer and chief financial officer, as appropriate to allow timely decisions regarding disclosure.

(b)    Management’s Annual Report on Internal Control over Financial Reporting: Management is responsible for establishing and maintaining adequate internal control over financial reporting for the company, as defined in the Exchange Act Rule 13a - 15(f) and 15d -15(f). The company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of the company’s financial statements for external purposes in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board.

The company’s internal control over financial reporting includes those policies and procedures that:
•Pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect transactions and dispositions of the assets of the company;
•Provide reasonable assurance that the transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of management and the Directors of the company; and
•Provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.


Because of inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Projections of any evaluation of effectiveness to future periods is subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with policies and procedures may deteriorate.


The company’s management assessed the effectiveness of the company’s internal control over financial reporting as of the Evaluation Date. In making this assessment, management used the criteria set forth by the Committee of Sponsoring Organisations of the Treadway Commission (COSO) in Internal Control - Integrated Framework and related illustrative documents released on 14 May 2013. Based on this assessment, and using those criteria, management concluded that the company’s internal control over financial reporting was effective as of the Evaluation Date.


(c)
Changes in Internal Control over Financial Reporting:
(c)    Changes in Internal Control over Financial Reporting: The Company maintains a system of internal control over financial reporting that is designed to provide reasonable assurance that its books and records accurately reflect transactions and that established policies and procedures are followed. The Company started in 2013 with the implementation of an enterprise resource planning (“ERP”) system on a staggered basis and concluded with the last at its Obuasi Mine in Quarter 3, 2018. The Company implemented the global ERP system to improve standardization and automation, and not in response to a deficiency in its internal control over financial reporting. The Company believes that the implementation of the ERP system and related changes to internal controls enhanced its internal controls over financial reporting while providing the ability to scale its business in the future.  The Company has taken the necessary steps to monitor and maintain appropriate internal control over financial reporting during this period of change and will continue to evaluate the operating effectiveness of related key controls during subsequent periods.

The South Africa region completed a significant restructuring during 2018 which included a rationalization of jobs at various levels which had a direct impact on the internal control environment over financial reporting.reporting that is designed to provide reasonable assurance that its books and records accurately reflect transactions and that established policies and procedures are followed.


There have been no further changes in the company’s internal control over financial reporting identified in connection with the evaluation required by paragraph (d) of Exchange Act Rule 13(a) - 15 during the year ended 31 December 20182021 that have materially affected, or are reasonably likely to materially affect, the company’s internal control over financial reporting.


See "Itemalso “Item 3D: Risk Factors", of this annual report on Form 20F for risk factors relatedFactors—AngloGold Ashanti’s inability to the implementation and integration of information technology systems and maintainingmaintain an effective system of internal control over financial reporting.reporting may have an adverse effect on investors’ confidence in the reliability of its financial statements.”



(d)
Attestation Report of the Registered Public Accounting Firm: The Company’s independent registered accounting firm, Ernst & Young Inc., has issued an attestation report on the effectiveness of the company’s internal control over financial reporting. This report appears below.

(d)    Attestation Report of the Registered Public Accounting Firm: The Company’s independent registered accounting firm, Ernst & Young Inc., has issued an attestation report on the effectiveness of the company’s internal control over financial reporting. This report appears below.







/s/ KC Ramon
Kandimathie Christine Ramon
Chief Financial Officer




/s/ KPM DushniskyA Calderon
Kelvin Paul Michael DushniskyAlberto Calderon
Chief Executive Officer








310

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM


TheTo the Shareholders and the Board of Directors and Shareholders of AngloGold Ashanti Limited


Opinion on internalInternal Control over Financial Reporting


We have audited AngloGold Ashanti Limited’s (the “Company”) internal control over financial reporting as of 31 December 2018,2021, based on criteria established in Internal Control-IntegratedControl—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 COSO framework) (the “COSO criteria)criteria”). In our opinion, AngloGold Ashanti Limited (the Company)the Company maintained, in all material respects, effective internal control over financial reporting as of 31 December 2018,2021, based on the COSO criteria.


We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States)(PCAOB) (“PCAOB”), the consolidated statement of financial position of AngloGold Ashanti Limitedthe Company as of 31 December 2018, 20172021, 2020 and 2016,2019, the related consolidated statements of income, comprehensive income, cash flows and changes in equity for each of the three years in the period ended 31 December 2018,2021, and the related notes and our report dated 29 March 20192022 expressed an unqualified opinion thereon.


Basis for Opinion


The Company’s management is responsible for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting included in the accompanying Management’s Annual Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.


We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects.


Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.


Definition and LimitationLimitations of Internal Control overOver Financial Reporting


A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.


Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.











/s/ Ernst & Young Inc.
Johannesburg, Republic of South Africa
29 March 20192022






ITEM 16A:AUDIT COMMITTEE FINANCIAL EXPERT



311

ITEM 16A:    AUDIT COMMITTEE FINANCIAL EXPERT

Membership of the Audit and Risk Committee, including its chairman, comprises only independent non-executive directors, in compliance with the Sarbanes-Oxley Act. This also fulfils the guidelines of King IV, which became effective 1 November 2016, and the requirements of the SA Companies Act, of 2008, which became effective on 1 May 2011. The Sarbanes-Oxley Act requires the board to identify a financial expert from within its ranks. The board has resolved that Mr Rhidwaan GasantMr. Alan Ferguson is the Audit and Risk Committee'sCommittee’s financial expert. Individually, the remaining members of the committeeAudit and Risk Committee have considerable knowledge and experience in associated areas such as audit, risk and corporate governance to help oversee and guide the board and the company.




ITEM 16B:CODE OF ETHICS AND WHISTLE-BLOWING POLICIES





312

ITEM 16B:    CODE OF ETHICS AND WHISTLE-BLOWING POLICIES

In order to comply with the company'scompany’s obligation in terms of the Sarbanes-Oxley Act and King IV, and in the interests of good governance, the company has systems and procedures to introduce, monitor and enforce its ethical codes and has adopted a code of business principles and ethics for employees and directors, a code of ethics for the Chief Executive Officer, Chief Financial Officer and Senior Financial Officers, and a whistle-blowing policy that encourages employees to report anonymously if they wish and without fear of retaliation acts of an unethical or illegal nature that affect the company'scompany’s interests. The code of business principles and ethics expresses the company’s commitment to the conduct of its business in line with ethical standards and is designed to enable employees and directors to perform their roles and duties with integrity and responsibility.


The whistle-blowing policy provides channels for employees to report acts and practices that are in conflict with the company’s code of business principles and ethics or are unlawful, including financial malpractice or dangers to the public or the environment. Reports may be made to management or through several mediums including the intranet, internet, telephone, short messaging system (sms), fax and post. All reports not made to management are administered by a third party, Tip-Offs Anonymous, to ensure independence of the process. Reported cases are relayed to management through group compliance and group internal audit.compliance. A report is provided by group compliance and group internal audit to the Serious Concerns Committee, a management committee, on a quarterly basis as well as the Social, Ethics and Sustainability Committee and the Audit and Risk Committee on a quarterly basis. Reporters have the option to request feedback on reported cases. The whistle-blowing policy encourages reports to be made in good faith in a responsible and ethical manner. Employees are encouraged to first seek resolution of alleged malpractices through discussion with their direct managers, if appropriate, or other management including legal, compliance, human resources or internal audit.


The code of business principles and ethics for employees and directors and the code of ethics for the Chief Executive Officer, Chief Financial Officer and Senior Financial Officers are available on the company’s website at https://www.anglogoldashanti.com/company/governance/.








ITEM 16C:PRINCIPAL ACCOUNTANT FEES AND SERVICES



313

ITEM 16C:    PRINCIPAL ACCOUNTANT FEES AND SERVICES

Ernst & Young Inc. has served as AngloGold Ashanti’s independent publicprincipal accountants for each of the financial years in the three-year period ended 31 December 2018,2021, for which audited financial statements appear in this annual report on Form 20-F.


The following table presents the aggregate fees for professional services and other services rendered by Ernst & Young Inc. to AngloGold Ashanti in 20182021 and 2017.2020.
2018
 2017
20212020
(in millions)$
 $
(in millions)$$
Audit fees(1)
5.96
 6.14
Audit fees(1)
5.87 6.02 
Audit-related fees(2)
0.76
 0.73
Audit-related fees(2)
2.10 1.80 
Tax fees(3)
0.18
 0.16
Tax fees(3)
0.03 0.32 
All other fees(4)
0.02
 0.04
All other fees(4)
0.01 0.01 
Total6.92
 7.07
Total8.01 8.15 
Rounding may result in computational differences.
(1)
The Audit fees consist of fees billed for the annual audit services engagement and other audit services, which are those services that only the external auditor reasonably can provide, and include the Company audit; statutory audits; attest services; and assistance with and review of documents filed with the SEC.
(2)
Audit-related fees consist of fees billed for assurance and related services.
(3)
Tax fees include fees billed for tax advice and tax compliance services.
(4)
All other fees include non-audit services.

(1)    The Audit fees consist of fees billed for the annual audit services engagement and other audit services, which are those services that only the external auditor reasonably can provide, and include the Company audit; statutory audits; attest services; and assistance with and review of documents filed with the SEC.
(2)    Audit-related fees consist of fees billed for assurance and related services.
(3)    Tax fees include fees billed for tax advice and tax compliance services.
(4)    All other fees include non-audit services.

Audit and Risk Committee Pre-approval Policies and Procedures


It is the policy of AngloGold Ashanti to maintain compliance with the requirements of the various applicable legislation and good governance practices when appointing or assigning work to the Company’s external auditor. Non-audit services may not be undertaken without an employee of AngloGold Ashanti obtaining the pre-approval of the Audit and Risk Committee as is laid out in the procedures relating to the pre-approval process.


The Audit and Risk Committee has delegated the approval authority to the chairman of the committee, Mr. Rhidwaan GasantAlan Ferguson or his designated official. The approval may take the form of a written or oral instruction, and in the case of an oral instruction this would be ratified at the next Audit and Risk Committee meeting. On a quarterlyhalf yearly basis a summary of all approvals and work to date is tabled at the Audit and Risk Committee meeting.


All non-audit services provided to AngloGold Ashanti by the principal independent registered public accounting firm during 20182021 were reviewed and approved according to the procedures above. None of the services provided during 20182021 were approved under the de minimis exception allowed under the Exchange Act.



ITEM 16D:    EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES
ITEM 16D:EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES


Not applicable.

ITEM 16E:    PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS


Neither the issuer nor any affiliate of the issuer purchased any of the company’s shares during 2018.2021.

ITEM 16F:    CHANGE IN REGISTRANT’S CERTIFYING ACCOUNTANT


Not applicable.On 19 November 2021, PwC was appointed by the AngloGold Ashanti Limited’s Board of Directors as the Company’s independent principal accountants for the financial year ending 31 December 2023 (subject to shareholder approval), after a formal tender process to appoint a new independent registered public accounting firm. Ernst & Young Inc. (EY) will resign as independent principal accountants of the group on conclusion of its responsibilities relating to the 31 December 2022 financial year audit, which is expected to conclude during April 2023.

ITEM 16G:CORPORATE GOVERNANCE

The reports of EY on the Company’s consolidated financial statements for the past two fiscal years did not contain an adverse opinion or a disclaimer of opinion, and were not qualified or modified as to uncertainty, audit scope, or accounting principles. In connection with the audits of the Company’s financial statements for each of the two fiscal years ended 31 December 2021, there were (i) no disagreements with EY, as that term is used in Item 16F(a)(1)(iv) of Form 20-F over any matters of accounting principles or practices, financial statement disclosure, or auditing scope or procedures, which, if not resolved to the satisfaction of EY, would have caused EY to make reference to the matter in their report and (ii) there were no “reportable events” as defined in Item 16F(a)(1)(v) of Form 20-F.

AngloGold Ashanti has provided EY with a copy of the foregoing disclosure and has requested EY to provide it with a letter addressed to the SEC stating whether or not EY agrees with the above statements. A copy of such letter, dated 29 March 2022, in which EY state they agree with such disclosure, is filed as an exhibit to this annual report on Form 20-F, see “Item 19: Exhibits



314

—Exhibit 19.15.21 "Letter from Ernst & Young Inc. to the Securities and Exchange Commission regarding a change in registrant's certifying accountant”.


ITEM 16G:    CORPORATE GOVERNANCE

AngloGold Ashanti’s corporate governance practices do notare regulated by the JSE Listings Requirements. The following is a summary of the significant ways in which South Africa’s corporate governance standards which are followed by AngloGold Ashanti differ in any significant way from those followed by US domestic companies under the New York Stock Exchange’s NYSE Listing Standards. At this time, as described further below, AngloGold Ashanti complies with all of the NYSE Listing Standards as well as the JSE Listings Requirements.

The NYSE Listing Standards require that non-management directors of US-listed companies meet at regularly scheduled executive sessions without management. The JSE Listings Requirements do not require such meetings of listed company non-executive directors. However, management is invited to attend the executive section of board meetings.

The NYSE Listing Standards require US-listed companies to have a nominating/corporate governance listing standards.committee composed entirely of independent directors. The JSE Listings Requirements do not require such a committee but AngloGold Ashanti currently has a Nominations and Governance Committee composed of six non-executive directors, all of whom are independent under the JSE Listings Requirements and NYSE Listing Standards. The Nominations and Governance Committee is chaired by the Chairman of the AngloGold Ashanti Board.


The NYSE Listing Standards also require US-listed companies to have a compensation committee composed entirely of independent directors. The JSE Listings Requirements merely require that boards have such a committee but not that its members be independent. AngloGold Ashanti has appointed a Remuneration and Human Resources Committee, currently comprised of four non-executive directors, all of whom are independent under the JSE Listings Requirements and NYSE Listing Standards.
ITEM 16H:MINE SAFETY DISCLOSURE


The NYSE Listings Standards require US-listed companies to have an audit committee composed entirely of independent directors. The SA Companies Act requires that the members of the Audit Committee be approved by shareholders on an annual basis at a company’s annual general meeting. Both the SA Companies Act and the JSE Listings Requirements require that the audit committee be composed entirely of independent directors. AngloGold Ashanti has appointed an Audit and Risk Committee, currently comprising five non-executive directors, all of whom are independent, as defined under the SA Companies Act, the JSE Listings Requirements and the NYSE Listing Standards.

The SA Companies Act and the JSE Listings Requirements require the appointment of a Social and Ethics Committee, and AngloGold Ashanti has appointed a Social, Ethics and Sustainability Committee, comprising independent non-executive directors.






ITEM 16H:    MINE SAFETY DISCLOSURE

Not applicable.


ITEM 16I:        DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT
INSPECTIONS

Not applicable.



315

PART III
ITEM 17:FINANCIAL STATEMENTS

ITEM 17:    FINANCIAL STATEMENTS

Not applicable.


ITEM 18:FINANCIAL STATEMENTS



316

ITEM 18:    FINANCIAL STATEMENTS

The consolidated financial statements for the year ended 31 December 20182021 were authorised for issue by the Board of Directors on 29 March 20192022 and were signed on its behalf by Kelvin Paul Michael Dushnisky, Chief Executive Officer, Kandimathie Christine Ramon, Chief Financial Officer, Sipho Pityana, ChairmanMaria DC Ramos, Chairperson of the Board of Directors, and Rhidwaan Gasant, ChairmanAlan Ferguson, Chairperson of the Audit and Risk Committee.



The report of independent registered public accounting firm Ernst & Young Inc. Johannesburg, Republic of South Africa (PCAOB ID # 1698) is included in Item 18.

F - 1

Report of independent registered public accounting firm


To the shareholders and the board of directors of AngloGold Ashanti Limited


Opinion on the Financial Statements


We have audited the accompanying consolidated statement of financial position of AngloGold Ashanti Limited (“the Company”) as of 31 December 2018, 20172021, 2020 and 2016,2019, the related consolidated statements of income, comprehensive income, cash flows and changes in equity for each of the three years in the period ended 31 December 2018,2021, and the related notes (collectively referred to as the “consolidated financial statements”). In our opinion, based on our audits and the report of other auditors, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at 31 December 2018, 2017,2021, 2020 and 2016,2019, and the results of its operations and its cash flows for each of the three years thenin the period ended 31 December 2021, in conformity with International Financial Reporting Standards (“IFRS’IFRS”) as Issued by the International Accounting Standards Board.


We did not audit the financial statements of Kibali (Jersey) Limited (“Kibali”), a corporation in which the Company has a 50% interest. In the consolidated financial statements, the Company’s investment in Kibali was stated at $1,439$1,604 million, $1,423$1,604 million and $1,400$1,506 million as of 31 December 2018, 20172021, 2020 and 2016,2019, respectively, and the Company’s equity in the net income of Kibali was stated at $104$231 million in 2018, $92021, $238 million in 20172020 and, $24$143 million in 2016.2019. Those statements were audited by other auditors whose report has been furnished to us, and our opinion, insofar as it relates to the amounts included for Kibali, is based solely on the report of the other auditors.


We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of 31 December 2018,2021, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) and our report dated 29 March 20192022 expressed an unqualified opinion thereon.
Basis for Opinion


These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the U.S. Securities and Exchange Commission and the PCAOB.


We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits and the report of other auditors provide a reasonable basis for our opinion.



Critical Audit Matters



The critical audit matters communicated below are matters arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.



F - 2


Description of the
Matter		Geita VAT recoverability
As disclosed in Note 1.2 and Note 20 to the consolidated financial statements, at 31 December 2021, the Company’s Geita mine has recorded $187 million of VAT receivables due from the Tanzanian Revenue Authority (TRA).

An amendment, effective 20 July 2017, to Tanzania’s mining legislation included an amendment to the VAT Act 2015 to the effect that no input tax credit can be claimed for expenses incurred in the production of raw minerals which are to be exported, resulting in Geita’s VAT input claims being disqualified since then by the TRA. In 2019, an amendment issued by the Tanzanian Ministry of Minerals, effective 22 February 2019, provided clarity on the definition of raw minerals. The Finance Amendment act became effective from 1 July 2020 which deleted the disqualification of Input VAT claims. The change is not retrospective and therefore VAT input claims and offsets from July 2017 to June 2020 remain disallowed. Further correspondence was received from the TRA in early 2021 in which the TRA state that they continue to disallow the claims between July 2017 to June 2020

Significant auditor judgment, including the involvement of our tax specialists, was required in assessing whether the TRA will apply the definition of raw minerals to the historical claims and how the TRA will apply the legal rulings and related recovery mechanisms in relation to VAT offsetting against taxable income.

Auditing the expected timing of recovery of the VAT receivables and the probability weighted discounting scenarios thereof, also required significant auditor judgement. This is because the timing and likelihood of VAT offsetting needs to consider factors such as the ongoing correspondence and meetings with the Tanzanian authorities and the experience to date of offsetting VAT against income taxes. In addition, the ability to offset VAT depends on forecasts of Geita’s available taxable income, which includes judgments around Geita’s business plan.
How We Addressed the Matter in Our AuditOur procedures to address this matter included, among others, obtaining an understanding, evaluating the design and testing the operating effectiveness of controls over the Company’s assessment of tax law and the process to estimate the recoverability of the VAT receivable.

We read correspondence between management and the Tanzanian authorities, including correspondence related to the tax returns and assessments received during the period to evaluate management assumptions primarily related to definition of raw minerals and the expected timing of the VAT recoverability.

Our audit procedures included, among others, reading external legal counsel opinions obtained by management to support their interpretation of the tax legislation for offsets of the manner undertaken or proposed by the Company and to support management’s view that gold ore bars are not a raw mineral as defined. We also discussed external legal counsel’s interpretation of tax legislation with external legal counsel directly.

We held meetings with the management team responsible for the resolution of the VAT matter to understand the processes that management are following, progress made to date, and the content of discussions to resolve the VAT matter with the Tanzanian authorities.

We involved our tax professionals to assist us to evaluate the recoverability of the VAT receivable based on the above correspondence and their interpretation of legislation, including historical payments and offsets received to date for claims in the period July 2017 to June 2020.

We tested the judgements around the timing of VAT offsetting, by comparing the Company’s business plan to historical performance. We also evaluated the reasonableness of the annual percentage of VAT to corporate tax offset and the probability weighted discounting scenarios by considering recent developments with the relevant authorities and the interpretations by management and their external legal counsel of the relevant tax legislations, as well as the experience to date of offsetting VAT against income taxes.

We evaluated the reasonableness of management’s assumptions by performing a sensitivity analysis using alternative probability weighted discounting scenarios.

F - 3


Description of the
Matter		Environmental rehabilitation obligations
At 31 December 2021 the provision for decommissioning and the provision for restoration in aggregate amounted to $673 million in the consolidated financial statements.

The Company incurs obligations to close, restore and rehabilitate its mine sites. Auditing the Company’s rehabilitation and decommissioning provision was complex due to the significance, as well as the high estimation uncertainty, of the provision. The determination of the provision is based on, among other things, judgements and estimates of current damage caused, nature, timing and amount of future costs to be incurred to rehabilitate the mine sites, estimates of future inflation, exchange rates and discount rates. These assumptions are inherently judgemental and subject to change due to continued mining activity and rehabilitation, legislation and environmental changes, which cannot be predicted with certainty and thus requires specific focus each year and the involvement of specialists on our team.

The consolidated disclosures are included in Note 1.2 and Note 25 to the consolidated financial statements.
How We Addressed the Matter in Our AuditOur procedures to address this matter included, among others, obtaining an understanding, evaluating the design and testing the operating effectiveness of controls over the Company’s process to estimate rehabilitation and decommissioning provisions. For example, we tested controls over the determination of key inputs such as life of mine reserves and production profile, discount rates, inflation and exchange rates, and the nature, amount and timing of future rehabilitation costs.

With the support of our valuation specialists, we assessed management’s macro-economic assumptions in their rehabilitation models by comparing them to available market information. The most significant of these macro-economic assumptions were the risk-free interest rates, expected inflation and exchange rates.

We tested the mathematical accuracy of the valuation models. We compared the timing of the expected cash flows with reference to the life of mine plans for the respective mines.

We compared the current year cash flow assumptions to those of the prior year and considered management’s explanations where these have changed or deviated. We compared the cost rates used by management to publicly available information, as well as ongoing rehabilitation activities undertaken by the Company.

With the support of our environmental specialists, we inquired of operational management whether additional environmental damage occurred since the prior year that would require additional rehabilitation in the future and compared this information to the current mine plan. We inspected reports of the Company’s mine closure plans and assessments of the timing and determination of costs to be incurred prepared by management.

We, together with our environmental specialists, evaluated the reports prepared by management in the calculation of the provision.


/s/ Ernst & Young Inc.

We have served as the Company’s auditor since 1944
Johannesburg, Republic of South Africa
29 March 20192022






F - 4


PAGE LEFT BLANK INTENTIONALLY



F - 5

ANGLOGOLD ASHANTI LIMITED
Group – income statement
FOR THE YEARS ENDED December 31, DECEMBER 2018, 20172021, 2020 and 20162019
202120202019
Figures in millionsNotes
US Dollars
Continuing operations
Revenue from product sales34,029 4,427 3,525 
Cost of sales4(2,857)(2,699)(2,626)
(Loss) gain on non-hedge derivatives and other commodity contracts— (19)5 
Gross profit21,172 1,709 904 
Corporate administration, marketing and related expenses(73)(68)(82)
Exploration and evaluation costs(164)(124)(112)
Impairment, derecognition of assets and profit (loss) on disposal11 (1)(6)
Other (expenses) income5(136)(57)(83)
Operating profit810 1,459 621 
Interest income58 27 14 
Dividend received— 2 — 
Foreign exchange and fair value adjustments(43)— (12)
Finance costs and unwinding of obligations6(116)(177)(172)
Share of associates and joint ventures’ profit7249 278 168 
Profit before taxation958 1,589 619 
Taxation10(312)(625)(250)
Profit after taxation from continuing operations646 964 369 
Discontinued operations
Profit (loss) from discontinued operations— 7 (376)
Profit (loss) for the year646 971 (7)
Allocated as follows:
Equity shareholders
- Continuing operations622 946 364 
- Discontinued operations— 7 (376)
Non-controlling interests
- Continuing operations24 18 5 
646 971 (7)
Basic earnings (loss) per ordinary share (cents)11148 227 (3)
Earnings per ordinary share from continuing operations148 225 87 
Earnings (loss) per ordinary share from discontinued operations— 2 (90)
Diluted earnings (loss) per ordinary share (cents)11148 227 (3)
Earnings per ordinary share from continuing operations148 225 87 
Earnings (loss) per ordinary share from discontinued operations— 2 (90)

F - 6
Figures in millionsNotes2018
 2017
 2016
    Restated
 Restated
  US Dollars
Revenue from product sales33,943

4,510

4,223
Cost of sales4(3,173)
(3,736)
(3,401)
Gain (loss) on non-hedge derivatives and other commodity contracts 2

10

19
Gross profit (loss)2772
 784
 841
Corporate administration, marketing and other expenses (76) (64) (61)
Exploration and evaluation costs (102) (114) (133)
Other operating expenses5(97) (88) (110)
Special items6(170) (438) (42)
Operating profit (loss) 327
 80
 495
Interest income 17
 15
 22
Dividend income 2
 —
 —
Other gains (losses) (9) (11) (88)
Finance costs and unwinding of obligations7(178) (169) (180)
Fair value adjustments (3) —
 9
Share of associates and joint ventures’ profit (loss)8122
 22
 11
Profit (loss) before taxation 278
 (63) 269
Taxation11(128) (108) (189)
Profit (loss) for the year 150
 (171) 80
Allocated as follows:      
Equity shareholders 133
 (191) 63
Non-controlling interests 17
 20
 17
  150
 (171) 80
       
Basic earnings (loss) per ordinary share (cents)1232
 (46) 15
Diluted earnings (loss) per ordinary share (cents)1232
 (46) 15



ANGLOGOLD ASHANTI LIMITED
Group – statement of comprehensive income
FOR THE YEARS ENDED December 31, DECEMBER 2018, 20172021, 2020 and 20162019
Figures in millions202120202019
US Dollars
Profit (loss) for the year646 971 (7)
Items that will be reclassified subsequently to profit or loss:(22)38 — 
Exchange differences on translation of foreign operations(22)38 — 
Items that will not be reclassified subsequently to profit or loss:(83)86 14 
Exchange differences on translation of non-foreign operations(3)(16)4 
Net (loss) gain on equity investments(73)98 6 
Actuarial (loss) gain recognised(1)10 2 
Deferred taxation thereon(6)(6)2 
Other comprehensive (loss) income for the year, net of tax(105)124 14 
Total comprehensive income for the year, net of tax541 1,095 7 
Allocated as follows:
Equity shareholders
- Continuing operations517 1,121 378 
 - Discontinued operations— (44)(376)
Non-controlling interests
- Continuing operations24 18 5 
541 1,095 7 

F - 7
Figures in millions 2018
 2017
 2016
 
  US Dollars 
Profit (loss) for the year 150
 (171) 80
 
        
Items that will be reclassified subsequently to profit or loss: (150) 148
 189
 
Exchange differences on translation of foreign operations (150) 123
 180
 
Available-for-sale financial assets   25
 9
 
Net gain (loss) on available-for-sale financial assets 

 20
 13
 
Release on impairment of available-for-sale financial assets   3
 —
 
Release on disposal of available-for-sale financial assets   (6) (2) 
Deferred taxation thereon   8
 (2) 
        
Items that will not be reclassified subsequently to profit or loss: 9
 6
 (2) 
Net gain (loss) on equity investments 9
 

 

 
Actuarial gain (loss) recognised 5
 8
 (2) 
Deferred taxation thereon (5) (2) —
 
        
Other comprehensive income (loss) for the year, net of tax (141) 154
 187
 
        
Total comprehensive income (loss) for the year, net of tax 9
 (17) 267
 
        
Allocated as follows:       
Equity shareholders (8) (37) 250
 
Non-controlling interests 17
 20
 17
 
  9
 (17) 267
 



ANGLOGOLD ASHANTI LIMITED
Group – statement of financial position
AS AT December 31, DECEMBER 2018, 20172021, 2020 and 20162019
Figures in millionsNotes202120202019
US Dollars
ASSETS
Non-current assets
Tangible assets133,460 2,884 2,592 
Right of use assets14175 142 158 
Intangible assets15122 131 123 
Investments in associates and joint ventures171,647 1,651 1,581 
Other investments18117 188 76 
Inventories1927 69 93 
Trade, other receivables and other assets20237 235 122 
Deferred taxation277 7 105 
Cash restricted for use2132 31 31 
5,824 5,338 4,881 
Current assets
Other investments18— — 10 
Inventories19703 733 632 
Trade, other receivables and other assets20260 229 250 
Cash restricted for use2126 42 33 
Cash and cash equivalents221,154 1,330 456 
2,143 2,334 1,381 
Assets held for sale— — 601 
2,143 2,334 1,982 
Total assets7,967 7,672 6,863 
EQUITY AND LIABILITIES
Share capital and premium237,223 7,214 7,199 
Accumulated losses and other reserves(3,214)(3,519)(4,559)
Shareholders’ equity4,009 3,695 2,640 
Non-controlling interests52 45 36 
Total equity4,061 3,740 2,676 
Non-current liabilities
Borrowings241,858 1,789 1,299 
Lease liabilities14124 116 126 
Environmental rehabilitation and other provisions25729 731 697 
Provision for pension and post-retirement benefits2677 83 100 
Trade, other payables and provisions287 8 15 
Deferred taxation27313 246 241 
3,108 2,973 2,478 
Current liabilities
Borrowings2451 142 734 
Lease liabilities1461 37 45 
Trade, other payables and provisions28647 627 586 
Taxation2939 153 72 
798 959 1,437 
Liabilities held for sale— — 272 
798 959 1,709 
Total liabilities3,906 3,932 4,187 
Total equity and liabilities7,967 7,672 6,863 

F - 8
Figures in millionsNotes2018
 2017
 2016
  US Dollars
ASSETS      
Non-current assets      
Tangible assets143,381
 3,742
 4,111
Intangible assets15123
 138
 145
Investments in associates and joint ventures171,528
 1,507
 1,448
Other investments18141
 131
 125
Inventories19106
 100
 84
Trade, other receivables and other assets20102
 67
 34
Deferred taxation27—
 4
 4
Cash restricted for use2135
 37
 36
  5,416
 5,726
 5,987
Current assets      
Other investments186
 7
 5
Inventories19652
 683
 672
Trade, other receivables and other assets20209
 222
 255
Cash restricted for use2131
 28
 19
Cash and cash equivalents22329
 205
 215
  1,227
 1,145
 1,166
Non-current assets held for sale —
 348
 —
  1,227

1,493

1,166
       
Total assets 6,643

7,219

7,153
EQUITY AND LIABILITIES      
Share capital and premium237,171
 7,134
 7,108
Accumulated losses and other reserves (4,519) (4,471) (4,393)
Shareholders’ equity 2,652
 2,663
 2,715
Non-controlling interests 42
 41
 39
Total equity 2,694
 2,704
 2,754
Non-current liabilities      
Borrowings241,911
 2,230
 2,144
Environmental rehabilitation and other provisions25827
 942
 877
Provision for pension and post-retirement benefits26100
 122
 118
Trade, other payables and deferred income283
 3
 4
Deferred taxation27315
 363
 496
  3,156
 3,660
 3,639
Current liabilities      
Borrowings24139
 38
 34
Trade, other payables and deferred income28594
 638
 615
Taxation2960
 53
 111
  793
 729
 760
Non-current liabilities held for sale —
 126
 —
  793

855

760
       
Total liabilities 3,949
 4,515
 4,399
       
Total equity and liabilities 6,643
 7,219
 7,153



ANGLOGOLD ASHANTI LIMITED
Group – statement of cash flows
FOR THE YEARS ENDED December 31, DECEMBER 2018, 20172021, 2020 and 20162019
Figures in millionsNotes202120202019
US Dollars
Cash flows from operating activities
Receipts from customers4,054 4,411 3,535 
Payments to suppliers and employees(2,701)(2,583)(2,433)
Cash generated from operations301,353 1,828 1,102 
Dividends received from joint ventures231 148 77 
Taxation refund2920 — 7 
Taxation paid29(336)(431)(228)
Net cash inflow (outflow) from operating activities from continuing operations1,268 1,545 958 
Net cash inflow (outflow) from operating activities from discontinued operations— 109 89 
Net cash inflow (outflow) from operating activities1,268 1,654 1,047 
Cash flows from investing activities
Capital expenditure
- project capital(392)(331)(336)
- stay-in-business capital(635)(370)(367)
Interest capitalised and paid(14)(17)(6)
Acquisition of intangible assets(1)(1)— 
Dividends from other investments22 9 — 
Proceeds from disposal of tangible assets25 3 3 
Other investments and assets acquired(4)(8)(9)
Proceeds from disposal of other investments— 9 3 
Investments in associates and joint ventures— — (5)
Proceeds from disposal of joint ventures2 26 — 
Loans advanced(15)— — 
Loans advanced to associates and joint ventures— — (3)
Loans repaid by associates and joint ventures— 12 23 
Recognition of joint operation - cash— 2 — 
Proceeds from disposal of discontinued assets and subsidiaries— 200 — 
Decrease (increase) in cash restricted for use14 (9)— 
Interest received58 27 14 
Net cash inflow (outflow) from investing activities from continuing operations(940)(448)(683)
Net cash outflow from investing activities from discontinued operations— (31)(54)
Cash in subsidiaries sold and transferred to held for sale— 3 (6)
Net cash inflow (outflow) from investing activities(940)(476)(743)
Cash flows from financing activities
Proceeds from borrowings822 2,226 168 
Repayment of borrowings(820)(2,310)(123)
Repayment of lease liabilities(63)(47)(42)
Finance costs - borrowings24(111)(110)(128)
Finance costs - leases(9)(8)(9)
Other borrowing costs(35)(33)— 
Dividends paid(240)(47)(43)
Net cash outflow from financing activities from continuing operations(456)(329)(177)
Net (decrease) increase in cash and cash equivalents(128)849 127 
Translation(48)25 — 
Cash and cash equivalents at beginning of year1,330 456 329 
Cash and cash equivalents at end of year221,154 1,330 456 

F - 9
Figures in millionsNotes2018
 2017
 2016
  US Dollars
Cash flows from operating activities      
Receipts from customers 3,947
 4,534
 4,231
Payments to suppliers and employees (3,015) (3,383) (2,929)
Cash generated from operations30932
 1,151
 1,302
Dividends received from joint ventures 91
 6
 37
Taxation refund295
 14
 12
Taxation paid29(171) (174) (165)
Net cash inflow (outflow) from operating activities 857
 997
 1,186
       
Cash flows from investing activities      
Capital expenditure      
- project capital (176) (156) (93)
- stay-in-business capital (476) (674) (618)
Proceeds from disposal of assets 313
 7
 4
Dividends from other investments 2
 —
 —
Other investments acquired (81) (91) (73)
Proceeds from disposal of other investments 98
 78
 61
Investments in associates and joint ventures (8) (27) (11)
Proceeds from disposal of associates and joint ventures —
 —
 10
Loans advanced to associates and joint ventures (5) (6) (4)
Loans repaid by associates and joint ventures 22
 —
 —
Cash payment to settle the sale of environmental trust fund (32) —
 —
Decrease (increase) in cash restricted for use (4) (8) 8
Interest received 12
 15
 14
Net cash inflow (outflow) from investing activities (335) (862) (702)
       
Cash flows from financing activities      
Proceeds from borrowings 753
 815

787
Repayment of borrowings (967) (767) (1,333)
Finance costs paid (130) (138) (172)
Bond settlement premium, RCF and bond transaction costs (10) —
 (30)
Dividends paid (39) (58) (15)
Net cash inflow (outflow) from financing activities (393) (148) (763)
       
Net increase (decrease) in cash and cash equivalents 129
 (13) (279)
Translation (5) 3
 10
Cash and cash equivalents at beginning of year 205
 215
 484
Cash and cash equivalents at end of year22329
 205
 215


ANGLOGOLD ASHANTI LIMITED
Group – statement of changes in equity
FOR THE YEARS ENDED December 31, DECEMBER 2018, 20172021, 2020 and 20162019
Equity holders of the parent
Figures in millionsShare capital
and premium
Other capital reserves(1)
Retained earnings (Accumulated
losses)(2)
Fair value through OCIActuarial
gains
(losses)
Foreign
currency
translation
reserve (3)
TotalNon-
controlling
interests		Total
equity
US Dollars
Balance at 31 December 20187,171 96 (3,227)37 (12)(1,413)2,652 42 2,694 
Profit (loss) for the year— — (12)— — — (12)5 (7)
Other comprehensive income (loss)— — — 82 4 14 — 14 
Total comprehensive income (loss)— — (12)82 4 2 5 7 
Shares issued28 — — — — — 28 — 28 
Share-based payment for share awards net of exercised— (10)— — — — (10)— (10)
Dividends paid (note 12)— — (27)— — — (27)— (27)
Dividends of subsidiaries— — — — — — — (16)(16)
Transactions with non-controlling interests— (4)— — — (4)4 — 
Translation— 1 (2)— — — (1)1 — 
Balance at 31 December 20197,199 83 (3,268)45 (10)(1,409)2,640 36 2,676 
Profit (loss) for the year— — 953 — — — 953 18 971 
Other comprehensive income (loss)— — — 92 10 22 124 — 124 
Total comprehensive income (loss)— — 953 92 10 22 1,077 18 1,095 
Shares issued15 — — — — — 15 — 15 
Share-based payment for share awards net of exercised— (3)— — — — (3)— (3)
Dividends paid (note 12)— — (38)— — — (38)— (38)
Dividends of subsidiaries— — — — — — — (9)(9)
Recognition of joint operation444 
Transfer on disposal and derecognition of equity investments— — 6 (6)— — — — — 
Translation— (3)2 — 1 — — — — 
Balance at 31 December 20207,214 77 (2,341)131 1 (1,387)3,695 45 3,740 
Profit (loss) for the year— — 622 — — — 622 24 646 
Other comprehensive income (loss)— — — (78)(2)(25)(105)— (105)
Total comprehensive income (loss)— — 622 (78)(2)(25)517 24 541 
Shares issued9 — — — — — 9 — 9 
Share-based payment for share awards net of exercised— 11 — — — — 11 — 11 
Dividends paid (note 12)— — (224)— — — (224)— (224)
Dividends of subsidiaries— — — — — — — (16)(16)
Translation— (4)6 — (1)— 1 (1)— 
Balance at 31 December 20217,223 84 (1,937)53 (2)(1,412)4,009 52 4,061 
(1)Other capital reserves include a surplus on disposal of Company shares held by companies prior to the formation of AngloGold Ashanti Limited of $9m (2020: $10m; 2019: $10m), surplus on equity transaction of joint venture of $36m (2020: $36m; 2019: $36m), equity items for share-based payments of $41m (2020: $33m; 2019:$39m) and other reserves.

(2)Included in accumulated losses are retained earnings totalling $389m (2020: $391m; 2019: $378m) arising at the equity accounted investments and certain subsidiaries which may not be remitted without third party consent.

(3) Foreign currency translation reserve includes a loss of $1,399m (2020: $1,396; 2019: $1,380m) that will not re-cycle through the Income statement on disposal of the non-foreign operations, and a loss of $13m (2020: $9m gain: 2019: $29m loss) relating to the foreign operations that will re-cycle through the Income statement on disposal.
 Equity holders of the parent   
Figures in millions
Share capital
and premium

Other capital reserves(1)

Retained earnings (Accumulated
losses)(2)

Fair value through OCI


Available-
for-sale
reserve

Actuarial
gains
(losses)

Foreign
currency
translation
reserve

Total
Non-
controlling
interests

Total
equity

US Dollars          
Balance at 31 December 20157,066
116
(3,174)

7
(19)(1,566)2,430
37
2,467
Profit (loss) for the year

63




63
17
80
Other comprehensive income (loss)




9
(2)180
187

187
Total comprehensive income (loss)  63
 9
(2)180
250
17
267
Shares issued42






42
 42
Share-based payment for share awards net of exercised
(7)




(7)
(7)
Dividends of subsidiaries






—
(15)(15)
Transfer to reserves


(2)

2
—

—
Translation
7
(6)
1
(2)
—

—
Balance at 31 December 20167,108
116
(3,119)

17
(21)(1,386)2,715
39
2,754
Profit (loss) for the year

(191)



(191)20
(171)
Other comprehensive income (loss)
 

25
6
123
154

154
Total comprehensive income (loss)  (191)

25
6
123
(37)20
(17)
Shares issued26






26

26
Share-based payment for share awards net of exercised
(1)




(1)
(1)
Dividends paid (note 13)  (39)    (39) (39)
Dividends of subsidiaries






—
(19)(19)
Translation
9
(10)
1
(1)
(1)1
—
Balance at 31 December 20177,134
124
(3,359)

43
(16)(1,263)2,663
41
2,704
Impact of adopting IFRS 9  10
33
(43)  —
 —
Opening balance under IFRS 97,134
124
(3,349)33
—
(16)(1,263)2,663
41
2,704
Profit (loss) for the year

133




133
17
150
Other comprehensive income (loss)


5
 4
(150)(141)
(141)
Total comprehensive income (loss)  133
5
 4
(150)(8)17
9
Shares issued37






37

37
Share-based payment for share awards net of exercised
(17)




(17)
(17)
Dividends paid (note 13)



(24)







(24)

(24)
Dividends of subsidiaries






—
(15)(15)
Transfer of gain on disposal of equity investments  1
(1)   —
 —
Translation
(11)12

  
1
(1)—
Balance at 31 December 20187,171
96
(3,227)37
—
(12)(1,413)2,652
42
2,694
F - 10
(1)
Other capital reserves include a surplus on disposal of company shares held by companies prior to the formation of AngloGold Ashanti Limited of $10m (2017: $11m; 2016: $10m), surplus on equity transaction of joint venture of $36m (2017: $36m; 2016: $36m), equity items for share-based payments of $48m (2017: $75m; 2016: $68m), cash flow hedge reserves and other reserves.
(2)
Included in accumulated losses are retained earnings totalling $283m (2017: $287m; 2016: $250m) arising at the equity accounted investments and certain subsidiaries which may not be remitted without third party consent.




NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

ANGLOGOLD ASHANTI LIMITED
Notes to the consolidated financial statements
FOR THE YEARS ENDED 31 December, 2018, 20172021, 2020 and 20162019


1    ACCOUNTING POLICIES


Statement of compliance

The consolidated and company financial statements are prepared in compliance with International Financial Reporting Standards (IFRS) and Interpretations of those standards, as issued by the International Accounting Standards Board (IASB), SAICA Financial Reporting Guides as issued by the Accounting Practices Committee, Financial Reporting Pronouncements as issued by the Financial Reporting Standards Council, JSE Listings Requirements and in the manner required by the South African Companies Act, 2008.


New standards and interpretations issued


The financial statements have been drawn up on the basis of accounting standards, interpretations and amendments effective at the beginning of the accounting period on 1 January 2018.2021. The adoption of the new standards, interpretations and amendments effective from 1 January 20182021 had the followingno material impact on the group.

IFRS 15 "Revenue from Contracts with Customers"
Management assessed the potential impact of IFRS 15 on the financial statements of the group and concluded that the group does not sell product based on multiple-element arrangements and it does not sell product on a provisional or variable pricing basis and as such the new standard did not have a significant impact on the timing or amount of the group’s revenue recognition. However, the adoption of IFRS 15 resulted in the presentation of by-product revenue in revenue from product sales where previously by-product revenue was included in cost of sales. Revenue from product sales includes gold income and by-product revenue. This change in classification resulted in a corresponding increase in costs of sales, and therefore did not have an impact on previously reported gross profit.

As previously reported:
   U S Dollars
Figures in millions2017
 2016
Revenue4,543
 4,254
Gold income4,356
 4,085
Cost of sales(3,582) (3,263)
Gain (loss) on non-hedge derivatives and other commodity contracts10
 19
Gross profit784
 841
Gross profit %18.00% 20.59%

By-products revenue for the years ended 2017 and 2016 ($154m and $138m respectively) is included in the Revenue line, but was offset and thus reduced cost of sales in the income statement.

On adoption of IFRS 15, AngloGold Ashanti discloses revenue from all product sales, including by-products sales in Revenue from product sales in the income statement. Accordingly, the income statement was restated for the effects of adopting IFRS 15 as follows:
   U S Dollars
Figures in millions  2017
 2016
Revenue from product sales4,510
 4,223
Cost of sales(3,736) (3,401)
Gain (loss) on non-hedge derivatives and other commodity contracts10
 19
Gross profit784
 841
Gross profit %17.38% 19.91%

AngloGold Ashanti applied IFRS 15 retrospectively to each prior reporting period presented in accordance with IAS 8 “Accounting Policies, Changes in Accounting Estimates and Errors”.


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

IFRS 9 "Financial Instruments"
The group’s financial assets include debt instruments (held to maturity bonds and negotiable certificates of deposit), trade receivables, cash restricted for use and cash and cash equivalents which are subject to the IFRS 9 expected credit loss model as they are carried at amortised cost. The accounting policy for listed equity investments depends on the nature of the listed investment. Listed equity investments which are held to meet rehabilitation liabilities are classified as fair value through profit or loss (FVTPL) to eliminate accounting mismatch, which previously arose from the unwinding of the rehabilitation liabilities recognised in profit or loss and the fair value adjustments to investments held to meet the rehabilitation liabilities recognised in other comprehensive income. Listed equity investments held for other purposes are classified as fair value through other comprehensive income (FVTOCI). Financial liabilities are carried at amortised cost and there is no change in their recognition or presentation under IFRS 9. The adoption of IFRS 9 did not have a significant impact on total assets, total liabilities or the results of the group.

In accordance with the transitional provisions in IFRS 9, upon adoption, comparative figures were not restated. The available for sale reserve of $43m was transferred to the FVTOCI reserve -$33m and to accumulated losses -$10m in respect of equity investments at FVTOCI and FVTPL respectively. Refer statement of changes in equity for reclassifications.


AngloGold Ashanti assesses the significance of new standards, interpretations and amendments to standards in issue that are not yet adopted but are likely to affect the financial reporting in future years. We have identified that IFRS

The following amendments issued by the IASB are not yet effective:

IAS 16 “Leases” which hasamendment "Property, Plant and Equipment — Proceeds before Intended Use"

The IAS 16 amendment was issued by the IASB in May 2020 with an effective date of 1 January 2019, is likely2022 for annual periods beginning on or after 1 January 2022.

The amendment prohibits deducting from the cost of an item of property, plant and equipment any proceeds from selling items produced while bringing that asset to affect future financial reporting.the location and condition necessary for it to be capable of operating in the manner intended by management. Instead, an entity recognises the proceeds from selling such items, and the cost of producing those items, in profit or loss. An entity applies the amendments retrospectively to items of property, plant and equipment (PPE) made available for use on or after the beginning of the earliest period presented when the entity first applies the amendment.

IFRS 16 “Leases”
Management is in the process of completinghas completed its preliminary assessment of the accounting impact and required disclosures arising out of the adoption of this standard. IFRS 16 requires lessees to recognise right-of-use assets and lease liabilities arising from lease contracts with additional disclosures about leasing arrangements. Leases within the scope of IFRS 16 will result in increases in assets and liabilities. Based on contracts in existence at 31 December 2018 containing leasing arrangements within the recognition scope of IFRS 16, we expect an increase in the group’s depreciation charge of between $36m and $42m, and a finance cost increase of between $6m to $8m. Operating cashflows are expected to increase and financing cashflows to decrease by between $39m and $45m as repayment of the principal portion of the lease liabilities will be classified as cash flows from financing activities, while previously the operating lease payments were classified as cash flows from operating activities. Management has determined that certain mining, drilling and power generation contracts which are not classified as finance leases under the current accounting standards (IAS 17 and IFRIC 4), will have the most impact on the group’s results on adoption of IFRS 16. The adoption of the new standard will result in the recognition of additional right-of-use assets and lease liabilities of between $135m to $160mamendment on 1 January 2019.AngloGold Ashanti has elected2022. The adoption is expected to transition to IFRS 16 retrospectively withresult in a retrospective increase in property, plant and equipment and gross profit of $38m in 2020 (2019: decrease of $6m). No impact is expected on the cumulative effect2021 results. The effects of initially applying the Standard recognised at the date of initial application. AngloGold Ashanti will not restate comparative information. Instead, the cumulative effect of initially applying IFRS 162019 restatement will be recognised by adjustingincluded in the accumulated losses opening balance of retained earningsthe 2020 financial reporting period. The estimated impact arises from the reclassification of revenue, cost of sales, and tangible assets and the resulting amortisation recalculation.

Disclosure of accounting policies — Amendment to IAS 1 "Presentation of Financial Statements" and IFRS Practice Statement 2 "Making Materiality Judgements"

The amendments to IAS 1 are effective for annual periods beginning on or after 1 January 2023. Earlier application is permitted. The amendments change the requirements in IAS 1 regarding disclosure of accounting policies replacing the requirement for entities to disclose their ‘significant’ accounting policies with a requirement to disclose their ‘material’ accounting policies. The amendments explain how an entity can identify a material accounting policy, with added examples of when an accounting policy is likely to be material. IFRS Practice Statement 2 notes that an entity may find it helpful to follow a systematic process in making materiality judgements and offers an example of such a process. The amendments are applied prospectively. Once the entity applies the amendments to IAS 1, it is also permitted to apply the amendments to IFRS Practice Statement 2. Management is assessing the impact of the amendments to determine the impact they will have on accounting policy disclosures.

IFRS 17 "Insurance Contracts"

IFRS 17 requires insurance liabilities to be measured at a current fulfilment value and provides a more uniform measurement and presentation approach for all insurance contracts. IFRS 17 supersedes IFRS 4 "Insurance Contracts" and is effective from 1 January 2023. IFRS 17 will be applied retrospectively, management is assessing the impact IFRS 17 adoption will have on the group.


Amendments to IAS 1 "Presentation of Financial Statements — Classification of Liabilities as Current or Non-current"
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

The amendments provide guidance on the classification of liabilities as current or non-current in the statement of financial position. They clarify that the classification of liabilities as current or non-current should be based on rights that are in place at the dateend of initial application.the reporting period which enable the reporting entity to defer settlement by at least twelve months. Classification is unaffected by expectations about whether an entity will exercise its right to defer settlement of a liability. The adoption of IFRS 16amendments, which are effective from 1 January 2023, will be applied retrospectively and are not expected to impact AngloGold Ashanti's current debt covenant arrangements with financial institutions.the group significantly.


The significant accounting principlesjudgements and estimates applied in the presentation of the group and company annual financial statements are set out in 1.2 below. The accounting policies adopted are detailed in Annexure A:1.3 “Summary of significant accounting policies”.

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

1.1    BASIS OF PREPARATION


The financial statements are prepared according to the historical cost convention, except for the revaluation of certain financial instruments to fair value. The group’s accounting policies as set out below are consistent in all material respects with those applied in the previous year except for the changes arising from the adoption of IFRS 9 and IFRS 15 as described in “New Standards and Interpretations Issued” above.year.


The group financial statements are presented in US dollars.


Based on materiality, certain comparatives in theAll notes have been aggregated and comparatives have been restated to accord with current year disclosures.are from continuing operations unless otherwise stated.


The group financial statements incorporate the financial statements of the company,Company, its subsidiaries and its interests in joint ventures and associates. The financial statements of all material subsidiaries, the Environmental Rehabilitation Trust Fund, joint ventures and associates, are prepared for the same reporting period as the holding company,Company, using the same accounting policies.


Subsidiaries are all entities (including structured entities) over which the group has control. The group controls an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Control would generally exist where the group owns more than 50% of the voting rights, unless the group and other investors collectively control the entity where they must act together to direct the relevant activities. In such cases, as no investor individually controls the entity the investment is accounted for as an equity method investmentassociate, joint venture or a joint operation. Subsidiaries are fully consolidated from the date on which control is transferred to the group. They are deconsolidated from the date on which control ceases. The group re-assesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS



Intra-group transactions, balances and unrealised gains and losses on transactions between group companies, including any resulting tax effecteffects are eliminated.



1.2    SIGNIFICANT ACCOUNTING JUDGEMENTS AND ESTIMATES


Use of estimates


The preparation of the financial statements requires the group’s management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. The determination of estimates requires the exercise of judgement based on various assumptions and other factors such as historical experience, current and expected economic conditions, and in some cases actuarial techniques. Actual results could differ from those estimates.


The more significant areas requiring the use of management estimates and assumptions relate to OreMineral Reserve that are the basis of future cash flow estimates and unit-of-production depreciation, depletion and amortisation calculations; environmental, reclamation and closure obligations; asset impairments/reversals (including impairments of goodwill); production start date; recoverability of indirect taxes; recoverability of deferred tax assets; and write-downs of inventory to net realisable value. Other estimates include employee benefit liabilities, and unrecognised tax positions.positions and deferred compensation assets.


Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.


The uncertainty of the impact of the COVID-19 pandemic on the global economy and on the group has been considered in judgements made and in the key assumptions used in management's estimates. Key assumptions include items such as commodity prices, exchange rates and changes in interest rates.

The judgements thatapplied by management has applied in the application of accounting policies, and the estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are discussed below.



Carrying value of tangible assets


Amortisation
The majority of mining assets are amortised using the units-of-production method where the mine operating plan calls for production from a well-defined provedProven and probable OreProbable Mineral Reserve.


F - 13

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For other tangible assets, the straight-line method is applied over the estimated useful life of the asset which does not exceed the estimated mine life based on provedProven and probable OreProbable Mineral Reserve as the useful lives of these assets are considered to be limited to the life of the relevant mine.


The calculation of the units-of-production rate of amortisation could be impacted to the extent that actual production in the future is different from current forecast production based on provedProven and probable OreProbable Mineral Reserve. This would generally arise when there are significant from the following factors:
•changes in any of the factors or assumptions used in estimating Ore Reserve.Proven and Probable Mineral Reserve;

These factors could include:
•changes in proved and probable Ore Reserve;
•the grade of OreMineral Reserve may vary significantly from time to time;
•differences between actual commodity prices and commodity price assumptions;
•unforeseen operational issues at mine sites; and
•changes in capital, operating, mining, processing and reclamation costs, discount rates and foreign exchange rates.


Changes in provedProven and probable OreProbable Mineral Reserve could similarly impact the useful lives of assets amortised on the straight-line method, where those lives are limited to the life of the mine.


Stripping costs
The group has a number of surface mining operations that are in the production phase for which production stripping costs are incurred. The benefits that accrue to the group as a result of incurring production stripping costs include (a) ore that can be used to produce inventory and (b) improved access to further quantities of material that will be mined in future periods.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS



The production stripping costs relating to improved access to further quantities of material in future periods are capitalised as a stripping activity asset, if and only if, all of the following are met:
•It is probable that the future economic benefit (improved access to the orebody) associated with the stripping activity will flow to the group;
•The group can identify the component of the orebody for which access has been improved; and
•The costs relating to the stripping activity associated with that component or components can be measured reliably.



Components of the various orebodies at the operations of the group are determined based on the geological areas identified for each of the orebodies and are reflected in the OreMineral Reserve reporting of the group. In determining whether any production stripping costs should be capitalised as a stripping activity asset, the group uses three operational guidance measures; two of which relate to production measures, while the third relates to an average stripping ratio measure.


Once determined that any portion of the production stripping costs should be capitalised, the group determines the amount of the production stripping costs that should be capitalised with reference to the average mine costs per tonne of the component and the actual waste tonnes that should be deferred. Stripping activity assets are amortised on the units-of-production method based on the OreMineral Reserve of the component or components of the orebody to which these assets relate.


This accounting treatment is consistent with that for stripping costs incurred during the development phase of a pit, before production commences, except that stripping costs incurred during the development phase of a pit, before production commences, are amortised on the units-of-production method based on the OreMineral Reserve of the pit.


Deferred stripping costs are included in ‘Mine development costs’, within tangible assets. These costs form part of the total investment in the relevant cash-generating unit, which is reviewed for impairment if events or a change in circumstances indicate that the carrying value may not be recoverable. Amortisation of stripping activity assets is included in operating costs.cost of sales.


Impairment
The group reviews and tests the carrying value of tangible assets when events or changes in circumstances indicate that the carrying amount may not be recoverable. Assets are grouped at the lowest level for which identifiable cash flows are largely independent of cash flows of other assets, which is generally at the individual mine level. If there are indications that impairment may have occurred, estimates are prepared of expected future cash flows for each group of assets. Expected future cash flows used to determine the value in use of goodwill and tangible assets are inherently uncertain and could materially change over time and impact the recoverable amounts. The cash flows and value in use are significantly affected by a number of factors including published reserves, resources,Mineral Reserve, Mineral Resource, exploration potential and production estimates, together with economic factors such as spot and future metal prices, discount rates, foreign currency exchange rates, estimates of costs to produce reservesMineral Reserve and future capital expenditure. At the reporting date the group assesses whether any of the indicators which gave rise to previously recognised impairments have changed such that the impairment loss no longer exists or may have decreased. The impairment loss is then assessed on the original factors for reversal and if indicated, such reversal is recognised.


An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use. Details of assumptions and sensitivity analyses of cash generating units (CGUs) with marginal headroom are included in note 13 Tangible assets.


The recoverable amount is estimated based on the positive indicators.
F - 14

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
If an impairment loss has decreased, the carrying amount is recorded at the recoverable amount as limited in terms of IAS 36 “ImpairmentImpairment of Assets”Assets.


The carrying value of tangible assets at 31 December 20182021 was $3,381m (2017: $3,742m; 2016: $4,111m)$3,460m (2020: $2,884m; 2019: $2,592m). The impairment and derecognition of tangible assets recognised in the consolidated financial statements for the year ended 31 December 20182021 was $104m (2017: $288m; 2016: $3m)$6m (2020: nil; 2019: $505m - including impairment of tangible assets transferred to held for sale).


Production start date

The group assesses the stage of each mine construction project to determine when a project moves into the production stage. The criteria used to assess the start date are determined by the unique nature of each mine construction project and include factors such as the complexity of a plant and its location. The group considers various relevant criteria to assess when the construction project is substantially complete and ready for its intended use and moves into the production stage. The criteria used in the assessment would include, but are not limited to the following:

•the level of capital expenditure compared to the construction cost estimates;
•completion of a reasonable period of testing of the constructed asset;
•adequacy of stope face;
•ability to produce metals in saleable form (within specifications); and
•ability to sustain ongoing production of metal.

When a mine construction project moves into the production stage, the capitalisation of certain mine construction costs ceases and costs are either regarded as inventory or expensed, except for capitalisable costs related to mining asset additions or improvements, underground mine development, deferred stripping activities, or Ore Reserve development.

Phase 1 of the Obuasi mine re-development project moved into the production stage on 1 October 2020 when it was determined that the Phase 1 assets were capable of operating in the manner intended by management. Phase 2 was delayed because the Company voluntarily suspended all underground activities following a sill pillar incident during May 2021. Phase 2 construction of the Obuasi redevelopment project was completed at the end of December 2021, however, a reasonable period of testing of the Phase 2 assets could not be completed during 2021.


Carrying value of goodwill and intangible assets


Where an investment in a subsidiary, joint venture or an associate is made, any excess of the consideration transferred over the fair value of the attributable Mineral Resource including value beyond provedProven and probable OreProbable Mineral Reserve, exploration properties and net assets is recognised as goodwill.


Intangible assets that have an indefinite useful life and separately recognised goodwill areGoodwill is not subject to amortisation and areis tested annually for impairment and whenever events or changes in circumstance indicate that the carrying amount may not be recoverable. Assets that are subject to amortisation are tested for impairment whenever events or changes in circumstance indicate that the carrying amount may not be recoverable.


An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable independent cash flows (cash-generating units).


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS


An individual operating mine is not a typical going-concern business because of the finite life of its reserves.Mineral Reserve. The allocation of goodwill to an individual mine will result in an eventual goodwill impairment due to the wasting nature of the mine reporting unit. In accordance with the provisions of IAS 36, the group performs its annual impairment review of assigned goodwill during the fourth quarter of each year.year, refer note 15 for impairment assumptions.


The carrying value of goodwill in the consolidated financial statements at 31 December 20182021 was $116m (2017: $127m; 2016: $126m)$119m (2020: $126m; 2019: $116m). TheNo impairment of goodwill was recognised in the consolidated financial statements for the yearyears ended 31 December 2018 was nil (2017: $9m; 2016: nil).2021, 2020 and 2019.


Income taxes


The group is subject to income taxes in numerous jurisdictions. Significant judgement is required in determining the worldwide provision for income taxes due to the complexity of legislation. There are many transactions and calculations for which the ultimate tax determination is uncertain during the ordinary course of business. The group recognises liabilities for anticipated tax audit issues based on estimates of whether additional taxes will be due. Where the final tax outcome of these matters is different from the amounts that were initially recorded, such differences will impact the income tax and deferred tax provisions in the period in which such determination is made.

F - 15

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
The group tax reconciliation between tax expense and the product of accounting profit multiplied by the applicable tax rate, prepared in accordance with IAS 12 "Income Taxes”Income Taxes, applies the South African corporate tax rate of 28%.28 percent.


The group recognises the net future tax benefit related to deferred income tax assets to the extent that it is probable that the deductible temporary differences will reverse in the foreseeable future. Assessing the recoverability of deferred income tax assets requires the group to make significant estimates related to expectations of future taxable income. Estimates of future taxable income are based on forecast cash flows from operations and the application of existing tax laws in each jurisdiction. To the extent that future cash flows and taxable income differ significantly from estimates, the ability of the group to realise the net deferred tax assets recorded at the reporting date could be impacted.


Additionally, future changes in tax laws in the jurisdictions in which the group operates could limit the ability of the group to obtain tax deductions in future periods.


Carrying values of the group at 31 December 2018:2021:
•deferred tax asset: nil (2017: $4m; 2016: $4m);
$7m (2020: $7m; 2019: $105m );
•deferred tax liability: $315m (2017: $363m; 2016: $496m)$313m (2020: $246m; 2019: $241m);
•taxation liability: $60m (2017: $53m; 2016: $111m)$39m (2020: $153m; 2019: $72m); and
•taxation asset: $6m (2017: $3m; 2016: $14m)$49m (2020: $14m; 2019: $10m), included in trade, other receivables and other assets.


UnrecognisedThe unrecognised value of deferred tax assets: $501m (2017: $470m; 2016: $477m)assets is $834m (2020: $487m; 2019: $389m).


Provision for environmental rehabilitation obligations


The group’sgroup incurs obligations to close, restore and rehabilitate its mine sites affected by mining and exploration activities which are subject to various laws and regulations governing the protection of the environment. The group recognises management’s best estimate for decommissioning and restoration obligations in the period in which they are incurred.incurred and the costs can be reasonably estimated. The determination of the provision is based on, among other considerations, judgements and estimates of current damage caused, timing and amount of future costs to be incurred to rehabilitate the mine sites, estimates of future inflation, exchange rates and discount rates. Future changes to environmental laws and regulations, technology, life of mine estimates, inflation rates, foreign currency exchange rates and discount rates could affect the carrying amount of this provision.provision, cannot be predicted with certainty and could have a material impact on our business, financial condition, results of operations and cash flows. A sensitivity assessment is included in note 25.


The carrying amount of the rehabilitation obligations for the group at 31 December 20182021 was $622m (2017: $724m; 2016: $705m)$688m (2020: $674m; 2019: $730m - including held for sale rehabilitation obligations). Note 33 provides information about related environmental guarantees and bonds.


Stockpiles and metals in process


Costs that are incurred in or benefit the production process are accumulated in stockpiles and metals in process values. Net realisable value tests are performed at least annually and represent the estimated future sales price of the product, based on prevailing and long-term metals prices, less estimated costs to complete production and bring the product to sale.


Surface and underground stockpiles and metals in process are measured by estimating the number of tonnes added and removed from the stockpile, the number of contained ounces based on assay data, and the estimated recovery percentage based on the expected processing method. Stockpile ore tonnages are verified by periodic surveys.


Although the quantities of recoverable metal are reconciled by comparing the grades of ore to the quantities of metals actually recovered (metallurgical balancing), the nature of the process inherently limits the ability to precisely monitor recoverability levels. As a result, the metallurgical balancing process is constantly monitored and engineering estimates are refined based on actual results over time.


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS


Variations between actual and estimated quantities resulting from changes in assumptions and estimates that do not result in write-downs to net realisable value are accounted for on a prospective basis.


The carrying value of inventories (excluding finished goods and mine operating supplies) for the group at 31 December 20182021 was $404m (2017: $424m; 2016: $397m)$299m (2020: $382m; 2019: $377m).




Recoverable tax, rebates, levies and duties


In a number of countries, particularly in Continental Africa,Tanzania and Argentina, AngloGold Ashanti is due refunds of indirect tax which remain outstanding for periods longer than those provided for in the respective statutes. The group uses probability weighted discounting

F - 16

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
models together with the expected timing of recovery of these refunds to estimate their fair values and related discounting effects which are updated at each reporting period. Timing of the recoverability and the resultant probabilities is updated based on several factors including ongoing correspondence and meetings with the relevant authorities and available income taxes for off-sets, if applicable. Where the recovery of the indirect tax refunds is tied to off-set arrangements against income taxes, the modeled scenarios incorporate judgements around the applicable mine’s business plan and availability of future income tax off-sets. The group consults tax and legal specialists to determine the current basis of applicable laws and regulations in the associated jurisdictions which are highly complex and subject to interpretation. Future changes to such laws and regulations or the interpretation thereof could have a material impact on the carrying value of these assets, results of operations and cash flows.

In addition, AngloGold Ashanti has unresolved non-income tax disputes in a number of countries, particularly in Continental AfricaTanzania, Brazil and in Brazil.Argentina. If the outstanding input taxes are not received and these disputes are not resolved in a manner favourable to AngloGold Ashanti, it could have a material adverse effect upon the carrying value of these assets and our results of operations.


The net carrying value of recoverable tax, rebates, levies and duties for the group at 31 December 20182021 was $194m (2017: $174m; 2016: $135m).$304m (2020: $281m; 2019: $227m) and is included in trade, other receivables and other assets, refer note 20.


Post-retirement obligations


The determination of AngloGold Ashanti’sthe group’s obligation and expense for post-retirement liabilities depends on the selection of certain assumptions used by actuaries to calculate amounts. These assumptions include, among others, the discount rate, the expected long-term rate of return of plan assets, health care inflation costs, rates of increase in compensation costs and the number of employees who reach retirement age before the mine reaches the end of its life. While AngloGold Ashanti believes that these assumptions are appropriate, significant changes in the assumptions may materially affect post-retirement obligations as well as future expenses, which may result in an impact on earnings in the periods that the changes in these assumptions occur.


The carrying value of the post-retirement obligations at 31 December 20182021 was $100m (2017: $122m; 2016: $118m)$77m (2020: $83m; 2019: $100m).


OreMineral Reserve estimates


An OreA Mineral Reserve estimate is an estimate of the amount of product that can be economically and legally extracted from the group’s properties. In order to calculate the OreMineral Reserve, estimates and assumptions are required about a range of geological, technical and economic factors, including quantities, grades, production techniques, recovery rates, production costs, transport costs, commodity demand, commodity prices and exchange rates.


Estimating the quantity and/or grade of the OreMineral Reserve requires the size, shape and depth of orebodies to be determined by analysing geological data such as the logging and assaying of drill samples. This process may require complex and difficult geological judgements and calculations to interpret the data.


The group is required to determine and report its OreMineral Reserve 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)Code, 2016 Edition.Edition).


Because the economic assumptions used to estimate changes in the OreMineral Reserve from period to period, and because additional geological data is generated during the course of operations, estimates of the OreMineral Reserve may change from period to period. Changes in the reported OreMineral Reserve may affect the group’s financial results and financial position in a number of ways, including the following:
•asset carrying values may be affected due to changes in estimated future cash flows;
•depreciation, depletion and amortisation charged in the income statement may change where such charges are determined by the units-of-production method, or where the useful economic lives of assets change;
•overburden removal costs, including production stripping activities, recorded on the statement of financial position or charged in the income statement may change due to changes in stripping ratios or the units-of-production method of depreciation;
•decommissioning site restoration and environmental provisions may change where changes in the estimated OreMineral Reserve affect expectations about the timing or cost of these activities; and
•the carrying value of deferred tax assets may change due to changes in estimates of the likely recovery of the tax benefits.

Development expenditure

Development activities commence after project sanctioning by the appropriate level of management. Judgement is applied by management in determining when a project has reached a stage at which economically recoverable reserves exist such that development may be sanctioned. In exercising this judgement, management is required to make certain estimates and assumptions similar to those described in the accounting policy for exploration and evaluation assets. Any such estimates and assumptions may

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

change as new information becomes available. If, after having started the development activity, a judgement is made that a development asset is impaired, the appropriate amount will be written off to the income statement.


Provision for silicosis


The Settlement Agreement in the silicosis and tuberculosis class action litigation became operational on 10 December 2019. A settlement trust, known as the Tshiamiso Trust, was established to carry out the terms of the Settlement Agreement. Significant judgement is applied in estimating the costs that will be incurred to settle the silicosis class action claims and related expenditure.Theexpenditure. The final costs may differ from current cost estimates. The provision is based on actuarial assumptions including:
•silicosis prevalence rates;
•estimated settlement per claimant;
F - 17

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
•benefit take-up rates;
•disease progression rates;
•timing of cashflows; and
•discount rate.


Management believes the assumptions are appropriate, however changes in the assumptions may materially affect the provision and final costs of settlement. In prior years, a silicosis provision was not raised as a reliable estimate could not be determined.A sensitivity assessment is included in note 25.


The carrying value of the silicosis provision at 31 December 20182021 was $63m (2017: $63m)$50m (2020: $61m; 2019: $65m).


Deferred compensation asset

As a consequence of the sale of the South African operations in 2020, a deferred compensation asset was recognised. The deferred compensation asset is included at fair value in level 3 of the fair value hierarchy. Management used a probability weighted discounted cash flow model to measure the deferred compensation asset. The significant inputs and assumptions used in the discounted cash flow calculation, include the production plan over the deferred compensation period and the weighted average cost of capital. Details of the valuation, including a sensitivity assessment, are included in note 33.

The carrying value of the deferred compensation asset at 31 December 2021 was $25m (2020: $28m).

Contingencies


By their nature, contingencies will only be resolved when one or more future events occur or fail to occur. The assessment of such contingencies inherently involves the exercise of significant judgement and estimates of the outcome of future events. Such contingencies include, but are not limited to environmental obligations, litigation, regulatory proceedings, tax matters and losses resulting from other events and developments. Refer note 10 for tax uncertainties and contingencies and note 32 for legal claims and other contingencies.


When a loss is considered probable and reasonably estimable, a liability is recorded in the amount of the best estimate for the ultimate loss. The likelihood of a loss with respect to a contingency can be difficult to predict and determining a meaningful estimate of the loss or a range of loss may not always be practicable based on the information available at the time and the potential effect of future events and decisions by third parties that will determine the ultimate resolution of the contingency. It is not uncommon for such matters to be resolved over many years, during which time relevant developments and new information is continuously evaluated to determine both the likelihood of any potential loss and whether it is possible to reasonably estimate a range of possible losses. When a loss is probable but a reasonable estimate cannot be made, disclosure is provided.


In determining the threshold for disclosure on a qualitative and quantitative basis, management considers the potential for a disruptive effect on the normal functioning of the group and/or whether the contingency could impact investment decisions. Such qualitative matters considered are reputational risks, regulatory compliance issues and reasonable investor considerations. For quantitative purposes, an amount of $18m$33m has been considered.


As a global company, the group is exposed to numerous legal risks. The outcome of currently pending and future proceedings cannot be predicted with certainty. Litigation and other judicial proceedings as a rule raise difficult and complex legal issues and are subject to uncertainties and complexities including, but not limited to, the facts and circumstances of each particular case, issues regarding the jurisdiction in which each suit is brought and differences in applicable law. Upon resolution of any pending legal matter, the group may be forced to incur charges in excess of the presently established provisions and related insurance coverage. It is possible that the financial position, results of operations or cash flows of the group could be materially affected by the unfavourable outcome of litigation.

COVID-19 pandemic


AngloGold Ashanti continues to respond to the COVID-19 pandemic, including the multiple waves of the outbreak in different countries and the surge of new variants of the virus, while contributing to the global effort to stop the spread of the virus and provide public health and economic relief to local communities. Operations continue to implement and strengthen controls on-site and in communities, including facilitating access to vaccines. We continue to monitor the pandemic and update guidelines and response plans to ensure preparedness while maintaining programmes for awareness, prevention, surveillance, early detection and control at group and site level.


While infection rates have largely declined, the emergence of the Omicron variant at the end of 2021 presented challenges with increasing absenteeism due to isolation and quarantine requirements as well as some travel restrictions and shortages of critical skills that continue to challenge operations in Argentina, Australia, Brazil and Ghana, albeit at varying levels.

During 2021, Cerro Vanguardia operated with limited mining capacity largely due to the impact of COVID-19 and resulting restrictions related to moving personnel to and from the site. However, during the second half of 2021 we saw an improvement in
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
the operation, which was largely due to the utilisation of the newly expanded on-site accommodation, as the camp can now safely host an increased number of employees on site for longer periods of time.

The impact on production from COVID-19 was estimated at 47,000oz for 2021.


Climate change considerations

As a member of the International Council on Mining and Metals (ICMM), AngloGold Ashanti has committed to the ICMM’s target of net zero Scope 1 and 2 greenhouse gas (GHG) emissions by 2050 or sooner in line with the ambitions of the Paris Agreement. Unlike other major resources companies, AngloGold Ashanti does not mine or extract hydrocarbons such as coal, natural gas or oil. AngloGold Ashanti does, however, emit greenhouse gases directly from energy and fuel used in its gold mining operations, the processing of ore, and the transportation of its products.

In 2021, AngloGold Ashanti published its first TCFD-aligned Climate Change Report which frames a refreshed Climate Change Strategy. The Climate Change Strategy, which was approved by the board in November 2021, seeks to embed the management of physical risks, transition climate risks, and climate change-related opportunities into our strategic and operational planning processes. The group has committed to the ICMM’s target of net zero Scope 1 and 2 emissions by 2050, and to accelerate action on Scope 3 emissions, including setting credible targets in partnership with suppliers by the end of 2023.

Whilst the group has set targets to be carbon neutral by 2050, the consequences, in terms of investment, its cost base and impact on cash flows are still being assessed as the group considers how it will work towards meeting these targets. This could have an impact on the future carrying amounts of assets or liabilities as the group responds to its climate change targets.

Assessing the risks of aggressive decarbonisation scenarios and other market transition risks, as well as physical and regulatory risks to our operations, on our business strategy and planning assumptions is an area that will be addressed through the implementation of our Climate Change strategy. This could have a knock-on effect on a number of areas, such as driving up the costs of capital goods, and key mining inputs, such as energy, potentially impacting impairments of asset carrying amounts.



1.3    SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES


Equity-accounted investments


Joint ventures


A joint venture is an entity in which the group holds a long-termlong term interest and which the group and one or more other ventures jointly control under a contractual arrangement, that provides for strategic, financial and operating policy decisions relating to the activities requiring unanimous consent of the parties sharing control. The group’s interests in joint arrangements classified as joint ventures are accounted for using the equity method.


Profits and losses realised in connection with transactions between the group and joint ventures are eliminated in proportion to share ownership. Such profits and losses are deducted from the group’s equity and related statement of financial position amount and released in the group accounts when the assets are effectively realised outside the group. Dividends received from joint ventures are included in operating activities in the cash flow statement.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS



Associates


The equity method of accounting is used for an investmentinvestments over which the group exercises significant influence and normally owns between 20% and 50% of the voting equity. Associates are equity-accounted from the effective date of acquisition to the effective date of disposal.


Profits and losses realised in connection with transactions between the group and associated companies are eliminated in proportion to share ownership. Such profits and losses are deducted from the group’s equity and related statement of financial position amount and released in the group accounts when the assets are effectively realised outside the group. Dividends received from associates are included in investing activities in the cash flow statement.


Joint ventures and associates


If necessary, impairment lossesand impairment reversals on loans and equity are reported under share of joint ventures and associates profit and loss.


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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Any losses of equity-accounted investments are brought to accountaccounted for in the consolidated financial statements until the investment in such investments is written down to zero. Thereafter, losses are accounted for only insofar as the group is committed to providing financial support to such investees.


The carrying value of equity-accounted investments represents the cost of each investment, including goodwill, balance outstanding on loans advanced if the loan forms part of the net investment in the investee, any impairment losses/ impairment reversals recognised, the share of post-acquisition retained earnings and losses, and any other movements in reserves. The carrying value of equity-accounted investments is reviewed when indicators arise and if any impairment in value/ impairment reversal has occurred; it is recognised in the period in which the impairment arose.


In determining materiality for the disclosure requirements of IFRS 12 “DisclosureDisclosure of Interest in Other Entities”,Entities, management has assessed that amounts representing the carrying value of at least 90% of the investments in associates and joint ventures balances, reported in the statement of financial position, constitute quantitative materiality.


Unincorporated joint ventures – jointJoint operations


A joint operation is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the use of assets and obligations for the liabilities of the arrangement. The group accounts for activities under joint operations by recognising, in relation to the joint operation, the assets it controls and the liabilities it incurs, the expenses it incurs and the revenue from the sale or use of its share of the joint operations output.


Foreign currency translation


Functional currency


Items included in the financial statements of each of the group’s entities are measured using the currency of the primary economic environment in which the entity operates (the ‘functional currency’). The functional currency of the parent company is South African Rands.


Transactions and balances


Foreign currency transactions are translated into the functional currency using the approximate exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of foreign currency transactions and from the translation at the reporting period exchange rate of monetary assets and liabilities denominated in foreign currencies are recognised in the income statement.


Group companies


The results and financial position of all group entities (none of which has the currency of a hyperinflationary economy) that have a functional currency different from the presentation currency are translated into the presentation currency as follows:
•share capital and premium are translated at historical rates of exchange at the reporting date;
•retained earnings are converted at historical average exchange rates;
•assets and liabilities for each statement of financial position presented are translated at the closing rate at the date of that statement of financial position;
•income and expenses for each income statement presented are translated at monthly average exchange rates (unless this average is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates,in which case income and expenses are translated at the rates prevailing at the date of the transaction); and

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

•all resulting exchange differences are recognised in other comprehensive income and presented as a separate component of equity (foreign currency translation)translation reserve, or FCTR).


Exchange differences arising from the translation of the net investment in foreign operations and of borrowings and other currency instruments designatedare accounted for as hedges of such investments, are taken to other comprehensive income on consolidation. On repayment or realisation permanent loans andof net investments arein foreign operations, the resulting FCTR is recycled from FCTR to the income statement. On disposal of non-foreign operations, where the parent’s functional currency, is the same as the subsidiary’s, associate’s, joint venture’s or branch’s functional currency, no reclassification of FCTR is required.


Segment reporting


An operating segment is a business activity whose results are regularly reviewed by the chief operating decision maker (CODM) in order to make decisions about resources to be allocated to it and to assess its performance and for which discrete financial information is available. The chief executive officerChief Executive Officer and the executive committeeExecutive Committee are collectively identified as the CODM.



F - 20

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Tangible assets


Tangible assets are recorded at cost less accumulated amortisation and impairments/reversals. Cost includes pre-production revenue generated and pre-production expenditure incurred during the development of a mine and the present value of related future decommissioning costs.


Interest on borrowings relating to the financing of major capital projects under construction is capitalised during the construction phase as part of the cost of the project. Such borrowing costs are capitalised over the period during which the asset is being acquired or constructed and borrowings have been incurred. Capitalisation ceases when construction is interrupted for an extended period or when the asset is substantially complete. Other borrowing costs are expensed as incurred.


IfWhen there is an indication that the recoverable amount of any of the tangible assets is less than the carrying value, the recoverable amount is estimated and the difference is recognised as an impairment.


Subsequent costs are included in the asset’s carrying amount only when it is probable that future economic benefits associated with the asset will flow to the group, and the cost of the addition can be measured reliably. All other repairs and maintenance are charged to the income statement during the financial period in which they are incurred.


To the extent a legal or constructive obligation to a third party exists, the acquisition cost includes estimated costs of dismantling and removing the asset and restoring the site. A change in estimated expenditures for dismantling, removal and restoration is added to or deducted from the carrying value of the related asset. To the extent that the change would result in a negative carrying amount forof the related asset, this effect is recognised as income. The change in depreciation charge is recognised prospectively.


For assets amortised on the units-of-production method, amortisation is calculated to allocate the cost of each asset to its residual value over its estimated useful life. For assets not amortised on the units-of-production method, amortisation is calculated over their estimated useful life as follows:

•buildings up to life of mine;
•plant and machinery up to life of mine;
•equipment and motor vehicles up to five years; and
•computer equipment up to three years; andyears.
leased assets over the shorter of the period of the lease and the useful life of the leased asset.


Major renovations are depreciated over the remaining useful life of the related asset or to the date of the next major renovation, whichever is sooner.


Assets are amortised to residual values. Residual values and useful lives are reviewed, and adjusted if appropriate, at the beginning of each financial year.


Gains and losses on disposals are determined by comparing net sale proceeds with the carrying amount at the date of sale. These are included in the income statement.


Mine development costs


Capitalised mine development costs include expenditure incurred to develop new orebodies, to define further mineralisation in existing orebodies and to expand the capacity of a mine. Mine development costs include acquired provedProven and probable OreProbable Mineral Reserve at cost at the acquisition date. These costs are amortised from the date on which commercial production begins.the assets are ready for use as intended by management.


Depreciation, depletion and amortisation of mine development costs are computed by the units-of-production method based on estimated provedProven and probable OreProbable Mineral Reserve. The provedProven and probable OreProbable Mineral Reserve reflects estimated quantities of reservesMineral Reserve which can be recovered economically in the future from known mineral deposits.


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS


Capitalised mine development costs also include stripping activity assets relating to production stripping activities incurred in the production phase of open-pit operations of the group. Once determined that any portion of the production stripping costs should be capitalised, the group determines the average mine costs per tonne of the component and the waste tonnes to which the production stripping costs relate to determine the amount of the production stripping costs that should be capitalised. Stripping activity assets are amortised on a units-of-production method based on the OreMineral Reserve of the component of the orebody to which these assets relate.


The average mine cost per tonne of the component is calculated as the total expected costs to be incurred to mine the relevant component of the orebody, divided by the number of tonnes expected to be mined from the component. The average mine cost per tonne of the component to which the stripping activity asset relates are recalculated annually in the light of additional knowledge and changes in estimates.


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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Mine infrastructure


Mine plant facilities, including decommissioning assets, are amortised using the lesser of their useful life or units-of-production method based on estimated provedProven and probable OreProbable Mineral Reserve.


Land and assets under construction


Land and assets under construction are not depreciated and are measured at historical cost less impairments.


Mineral rights and dumps


Mineral rights are amortised using the units-of-production method based on the estimated provedProven and probable OreProbable Mineral Reserve. Dumps are amortised over the period of treatment.


Exploration and evaluation assets


All pre-license and exploration costs, including geological and geographical costs, labour, Mineral Resource and exploratory drilling cost, are expensed as incurred, until it is concluded that a future economic benefit will more likely than not be realised. In evaluating if expenditures meet this criterion to be capitalised, several different sources of information are used depending on the level of exploration. While the criterion for concluding that expenditure should be capitalised is always probable, the information used to make that determination depends on the level of exploration:


•Costs on greenfields sites, being those where the group does not have any mineral deposits which are already being mined or developed under the planned method of extraction, are expensed as incurred until the group is able to demonstrate that future economic benefits are probable, which generally will be the establishment of provedProven and probable OreProbable Mineral Reserve at this location;
•Costs on brownfields sites, being those adjacent to mineral deposits which are already being mined or developed under the planned method of extraction, are expensed as incurred until the group is able to demonstrate that future economic benefits are probable, which generally will be the establishment of increased inclusive proved and probable Ore ReserveMineral Resource, after which the expenditure is capitalised as a mine development cost; and
•Costs relating to extensions of mineral deposits, which are already being mined or developed, including expenditure on the definition of mineralisation of such mineral deposits, are capitalised as a mine development cost.


Costs relating to property acquisitions are capitalised within mine development costs.


LeasedDevelopment expenditure

Development activities commence after project sanctioning by the appropriate level of management. Judgement is applied by management in determining when a project has reached a stage at which economically recoverable reserves exist such that development may be sanctioned. In exercising this judgement, management is required to make certain estimates and assumptions that may change as new information becomes available. If, after having started the development activity, a judgement is made that a development asset is impaired, the appropriate amount will be written off to the income statement. Capitalised development costs are included as assets under construction and mine development costs in tangible assets.


Assets subject to finance leases are capitalised atGoodwill

Where an investment in a subsidiary, joint venture or an associate is made, any excess of the lower of theirconsideration transferred over the fair value of the attributable Mineral Resource including value beyond Proven and Probable Mineral Reserve, exploration properties and net assets is recognised as goodwill. Goodwill in respect of subsidiaries is disclosed as goodwill.

Goodwill relating to subsidiaries is tested annually for impairment and carried at cost less accumulated impairment losses. Gains and losses on the disposal of an entity include the carrying amount of goodwill relating to the entity sold. Goodwill is allocated to cash-generating units for the purpose of impairment testing.

Leases

The group assesses whether a contract is or contains a lease at inception of a contract. The group recognises a right-of-use asset and a corresponding lease liability with respect to all lease agreements in which it is the lessee, except for short-term leases (defined as leases with a lease term of 12 months or less with no purchase option) and leases of low value assets. For these leases, the group recognises the lease payments as an operating expense on a straight-line basis over the term of the lease unless another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed. The lease liability is initially measured at the present value of minimumthe lease payments measured at inception of the lease with the related lease obligation recognisedthat are not paid at the same amount. Capitalised leased assets are depreciated over the shorter of their estimated useful lives and the lease term. Finance lease payments are allocatedcommencement date, discounted by using the rate implicit in the lease, which is includedlease. If this rate cannot be readily determined, the group uses its incremental borrowing rate. The group applies the IFRS 16 portfolio approach in finance costs, anddetermining the capital repayment, which reduces the liability to the lessor.discount rate for leases. As

F - 22
Operating lease rentals are charged against operating profits in a systematic manner related to the period the assets concerned will be used.

Non-current assets held for sale

Non-current assets and disposal groups are classified as held for sale if their carrying amount will be recovered principally through a sale transaction rather than through continuing use. This condition is regarded as having been met only when the sale is highly probable and the asset (or disposal group) is available for immediate sale in its present condition. Management must be committed to the sale, which should be expected to qualify for recognition as a completed sale within one year from the date of classification.



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

such a single discount rate has been used for contracts that share similar characteristics. The group has determined that contracts that are denominated in the same currency will use a single discount rate. This rate has been determined using various factors including in-country borrowings as well as other sources of finance. Contracts may contain both lease and non-lease components. The group allocates the consideration in the contract to the lease and non-lease components based on their relative stand-alone prices.
Non-current
Lease payments included in the measurement of the lease liability comprise:
•fixed lease payments (including in-substance fixed payments), less any lease incentives;
•variable lease payments that depend on an index or rate, initially measured using the index or rate at the commencement date;
•the amount expected to be payable by the lessee under residual value guarantees;
•the exercise price of purchase options, if the lessee is reasonably certain to exercise the options; and
•payments of penalties for terminating the lease, if the lease term reflects the exercise of an option to terminate the lease.

The lease liability is presented separately in the consolidated statement of financial position, allocated to non-current and current liabilities.

The lease liability is subsequently measured by increasing the carrying amount to reflect interest on the lease liability (using the effective interest method) and by reducing the carrying amount to reflect the lease payments made.

The group remeasures the lease liability (and makes a corresponding adjustment to the related right-of-use asset) whenever:
•the lease term has changed or there is a change in the assessment of exercise of a purchase option, in which case the lease liability is remeasured by discounting the revised lease payments using a revised discount rate;
•the lease payments change due to changes in an index or rate or a change in expected payment under a guaranteed residual value, in which cases the lease liability is remeasured by discounting the revised lease payments using the initial discount rate (unless the lease payments change is due to a change in a floating interest rate, in which case a revised discount rate is used);
•a lease contract is modified and the lease modification is not accounted for as a separate lease, in which case the lease liability is remeasured by discounting the revised lease payments using a revised discount rate.

The right-of-use assets (and disposal groups) classifiedcomprise the initial measurement of the corresponding lease liability, lease payments made at or before the commencement day, any initial direct costs and restoration costs as held for saledescribed below. They are subsequently measured at cost less accumulated depreciation and impairment losses.

The lease term is determined as the lowernon-cancellable period of their previous carrying amounta lease, together with:
•periods covered by an option to extend the lease if the group is reasonably certain to make use of that option; and fair value less/ or
•periods covered by an option to terminate the lease, if the group is reasonably certain not to make use of that option.

Whenever the group incurs an obligation for costs to sell.dismantle and remove a leased asset, restore the site on which it is located or restore the underlying asset to the condition required by the terms and conditions of the lease, a provision is recognised and measured under IAS 37 Provisions, Contingent Liabilities and Contingent Assets. The costs are included in the related right-of-use asset, unless those costs are incurred to produce inventories.


Right-of-use assets are depreciated over the shorter period of lease term and useful life of the underlying asset. If a lease transfers ownership of the underlying asset or the cost of the right-of-use asset reflects that the group expects to exercise a purchase option, the related right-of-use asset is depreciated over the useful life of the underlying asset. The depreciation starts at the commencement date of the lease.

The right-of-use assets are presented as a separate line in the consolidated statement of financial position.

The group applies IAS 36 Impairment of Assets to determine whether a right-of-use asset is impaired and accounts for any identified impairment loss accordingly.

Inventories


Inventories are valued at the lower of cost and net realisable value after appropriate allowances for redundant and obsolete items. Cost is determined on the following bases:
•metals in process are valued at the average total production cost at the relevant stage of production;
•gold doré/bullion is valued on an average total production cost method;
•ore stockpiles are valued at the average moving cost of mining and stockpiling the ore. Stockpiles are classified as a non-current asset where the stockpile exceeds current processing capacity;
•by-products, which include uranium oxide, silver and sulphuric acid, are valued using an average total production cost method;
•mine operating supplies are valued at average cost; and
•heap leach pad materials are measured on an average total production cost basis.

F - 23

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

A portion of the related depreciation, depletion and amortisation charge is included in the cost of inventory. Impairments resulting from a decrease in prices are disclosed in special items, all other impairmentsInventory write downs are included in cost of sales.



Provisions


Provisions are recognised when the group has a present obligation, whether legal or constructive, because of a past event for which it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Where some or all of the expenditure required to settle a provision is expected to be reimbursed by another party, the reimbursement is recognised only when the reimbursement is virtually certain. The amount to be reimbursed is recognised as a separate asset. Where the group has a joint and several liability with one or more other parties, no provision is recognised to the extent that those other parties are expected to settle part or all of the obligation.


Provisions are measured at the present value of management’s best estimate of the expenditure required to settle the obligation at the reporting date. The discount rate used to determine the present value reflects current market assessments of the time value of money and the risks specific to the liability.


Litigation and administrative proceedings are evaluated on a case-by-case basis considering the information available, including that of legal counsel, to assess potential outcomes. Where it is considered probable that an obligation will result in an outflow of resources, a provision is recorded for the present value of the expected cash outflows if these are reasonably measurable. These provisions cover the estimated payments to plaintiffs, court fees and the cost of potential settlements.

AngloGold Ashanti does not recognise a contingent liability on its statement of financial position except in a business combination where the contingent liability represents a possible obligation.


Employee benefits


Other post-employment benefit obligations


Some group companies provide post-retirement health care benefits to their retirees. The entitlement to these benefits is usually conditional on the employee remaining in service up to retirement age and completion of a minimum service period. The expected costs of these benefits are accrued over the period of employment using an accounting methodology on the same basis as that used for defined benefit pension plans. Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are recorded in other comprehensive income immediately. These obligations are valued annually by independent qualified actuaries.


Termination benefits


Termination benefits are payable when employment is terminated before the normal retirement date, or when an employee accepts voluntary redundancy in exchange for these benefits. The group recognises a liability and expense for termination benefits at the earlier of the following dates: (a) when the entity can no longer withdraw the offer of those benefits; and (b) when the entity recognises costs for a restructuring that is within the scope of IAS 37 “Provisions,Provisions, Contingent Liabilities and Contingent Assets”Assets and involves the payment of termination benefits. The group recognises termination benefits when it is demonstrably committed to either terminating the employment of current employees according to a detailed formal plan without possibility of withdrawal; or providing termination benefits as a result of an offer made to encourage voluntary redundancy based on the number of employees expected to accept the offer. Benefits falling due more than 12 months after reporting date are discounted to present value.


Share-based payments


The group’s management awards certain employee bonuses in the form of equity-settled share-based payments on a discretionary basis.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS


The fair value of the equity instruments granted is calculated at grant date. For transactions with employees, fair value is based on market prices of the equity instruments granted, if available, taking into account the terms and conditions upon which those equity instruments were granted. If market prices of the equity instruments granted are not available, the fair value of the equity instruments granted is estimated using an appropriate valuation model. Vesting conditions, other than market conditions, are not taken into account when estimating the fair value of shares or share options at measurement date.


Over the vesting period, the fair value at measurement date is recognised as an employee benefit expense with a corresponding increase in other capital reserves based on the group’s estimate of the number of instruments that will eventually vest. The income statement charge or credit for a period represents the movement in cumulative expense recognised as at the beginning and end of that period. Vesting assumptions for non-market conditions are reviewed at each reporting date to ensure they reflect current expectations.


F - 24

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
When options are exercised or share awards vest, the proceeds received, net of any directly attributable transaction costs, are credited to share capital (nominal value) and share premium.


Where the terms of an equity settled award are modified, as a minimum, an expense is recognised as if the terms had not been modified. In addition, an expense is recognised for any modification which increases the total fair value of the share-based payment arrangement, or is otherwise beneficial to the employee, as measured at the date of the modification.


In addition, the group’s management awards certain employee bonuses in the form of a cash settled scheme, whereby awards granted are linked to the performance of the company’sCompany’s share price. A liability is recognised based upon the grant date fair value and is subsequently remeasured to the closing share price at each reporting date up to the date of vesting. Remeasurements to fair value are recognised in the income statement.


Environmental expenditure


The group has long-term remediation obligations comprising decommissioning and restoration liabilities relating to its past operations which are based on the group’s environmental management plans, in compliance with current environmental and regulatory requirements. Provisions for non-recurring remediation costs are made when there is a present obligation, it is probable that expenditure on remediation work will be required and the cost can be estimated within a reasonable range of possible outcomes. The costs are based on currently available facts, technology expected to be available at the time of the clean-up, laws and regulations presently or virtually certain to be enacted and prior experience in remediation of contaminated sites.

Contributions for the South African operations are made to Environmental Rehabilitation Trust Funds, created in accordance with local statutory requirements where applicable, to solely fund the estimated cost of rehabilitation during and at the end of the life of a mine. These funds may only be utilised for purposes of settling decommissioning and environmental liabilities relating to existing mining operations. All income earned on these funds is reinvested or spent to meet these obligations. For group purposes, the trusts are consolidated.


Decommissioning costs


The provision for decommissioning represents the cost that will arise from rectifying damage caused before production commences. Accordingly, a provision and a decommissioning asset is recognised and included within mine infrastructure.


Decommissioning costs are provided at the present value of the expenditures expected to settle the obligation, using estimated cash flows based on current prices. The unwinding of the decommissioning obligation is included in the income statement. Estimated future costs of decommissioning obligations are reviewed regularly and adjusted as appropriate for new circumstances or changes in law or technology. Changes in estimates are capitalised or reversed against the relevant asset. Estimates are discounted at a pre-tax rate that reflects current market assessments of the time value of money.


Gains or losses from the expected disposal of assets are not taken into account when determining the provision.


Restoration costs


The provision for restoration represents the cost of restoring site damage after the start of production. Changes in the provision are recorded in the income statement as a cost of production.


Restoration costs are estimated at the present value of the expenditures expected to settle the obligation, using estimated cash flows based on current prices and adjusted for risks specific to the liability. The estimates are discounted at a pre-tax rate that reflects current market assessments of the time value of money.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS



Revenue recognition


Revenue is recognised when control of the goods passes to the customer and the performance obligations of transferring control have been met. The amount of revenue recognised reflects the consideration to which the entity is entitled in exchange for the goods transferred.

Revenue from product sales comprises sales of:
•refined gold;
•by-products including silver uranium and sulphuric acid; and
•doré bars.


Revenue from product sales is recognised at a point in time.

Taxation


Deferred taxation is providedrecognised on all qualifying temporary differences at the reporting date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes.


Deferred tax assets are only recognised to the extent that it is probable that the deductible temporary differences will reverse in the foreseeable future and future taxable profit will be available against which the temporary difference can be utilised.

F - 25

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

The carrying amount of deferred tax assets is reviewed at each reporting date.


Deferred tax assets and liabilities are measured at future anticipated tax rates, which have been enacted or substantively enacted at the reporting date.


Current and deferred tax is recognised as income or expense and included in profit or loss for the period, except to the extent that the tax arises from a transaction or event which is recognised, in the same or a different period in other comprehensive income or directly in equity, or an acquisition that is a business combination that is an acquisition.combination.


Current tax is measured on taxable income at the applicable statutory rate enacted or substantively enacted at the reporting date. Interest and penalties, if any, are recognised in the income statement as part of taxation expense.expense if based on the specific facts and circumstances, the entity has determined that the interest (receivable or payable) and penalties payable to the tax authorities are an income tax.


Special itemsOther expenses and income


Items of income and expense, not included in gross profit, that require separate disclosure, in accordance with IAS 1.97, are classified as special itemsare:
•material either quantitatively or qualitatively, or both;
•not directly related to current operating or financing activities ; and
•not disclosed separately on the face of the income statement.statement,

are classified as Other (expenses) income on the face of the income statement

Financial instruments


Financial instruments are initially recognised at fair value when the group becomes a party to their contractual arrangements. Transaction costs directly attributable to the instrument’s acquisition or issue are included in the initial measurement of financial assets and financial liabilities, except financial instruments classified as at fair value through profit or loss (FVTPL). The subsequent measurement of financial instruments is dealt with below.


Financial liabilities


Financial liabilities are classified as measured at amortised cost.cost using the effective interest rate method. Financial liabilities subsequently measured at amortised cost compromise of interest bearing borrowings and trade and other payables.


A financial liability is derecognised when the obligation under the liability is discharged, cancelled or expires. The group also derecognises a financial liability when its terms are modified and the cash flows of the modified liability are substantially different. In this case a new financial liability based on the modified terms is recognised at fair value.


Financial assets


On initial recognition, a financial asset is classified as measured at:
•amortised cost;
•Fair value through other comprehensive income (FVTOCI) - equity instruments; or
•FVTPL.


At initial recognition, the group measures a financial asset at its fair value plus, in the case of a financial asset not at FVTPL, transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at FVTPL, are expensed.


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS


A financial asset is measured at amortised cost if it is held within the business model whose objective is to hold assets to collect contractual cash flows and its contractual terms give rise, on specified dates, to cash flows that are solely payments of principal and interest on the principal amount outstanding. Assets at amortised cost include trade, other receivables and other assets, cash restricted for use and cash and cash equivalents. Interest income from these financial assets is included in finance income using the effective interest rate method. Any gain or loss arising on derecognition is recognised directly in profit or loss and presented in other gains or losses, together with foreign exchange gains or losses.impairment, derecognition of assets and profit (loss) on disposal. Impairment losses are presented as separate line item in the statement of profit or loss. A gain or loss on a debt investment that is subsequently measured at FVTPL is recognised in profit or loss and presented net within other gains or lossesforeign exchange and fair value adjustments in the period in which it arises. On derecognition of a financial asset, the difference between the proceeds received or receivable and the carrying amount of the asset is included in profit or loss.





F - 26

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Equity instruments
Listed and unlisted equity investments are included in Other investments in the Statement of financial position. Listed equity investments which are held to meet rehabilitation liabilities are classified as FVTPL. Listed equity investments held for other purposes are classified as FVTOCI.


The group subsequently measures all equity investments at fair value. Where the group’s management has elected to present fair value gains and losses on equity investments in OCI, there is no subsequent reclassification of fair value gains and losses to profit or loss following the derecognition of the investment. Dividends from such investments continue to be recognised in profit or loss as other income when the group’s right to receive payments is established. Residual values in OCI are reclassified to retained earnings (accumulated losses) on derecognition of the related FVTOCI instruments. Changes in the fair value of financial assets at FVPLFVTPL are recognised in other gains or losses in the statement of profit or loss as applicable.


Trade receivables
Trade receivables mainly comprise receivables owing from banking institutions purchasing gold bullion. Normal market settlement terms are two working days. Trade receivables are recognised on settlement date.

Deferred compensation asset
Deferred consideration is treated as a financial instrument to the extent that it constitutes a right to receive cash from a third party and measured at FVTPL. The fair value change in the deferred compensation asset is recognised in foreign exchange and fair value adjustments in the income statement.

Impairment of financial assets

Financial assets at amortised cost consist of trade receivables, loans, cash and cash equivalents and debt instruments. Impairment losses are assessed using the forward-looking expected credit loss (ECL) approach. An allowance is recorded for all loans and other debt financial assets not held at FVTPL. The impairment methodology applied depends on whether there has been a significant increase in credit risk. Trade receivable loss allowances are measured at an amount equal to lifetime ECL’s. Loss allowances are deducted from the gross carrying amount of the assets. Debt securities that are determined to have a low credit risk at the reporting date and bank balances, for which credit risk has not increased significantly since initial recognition, are measured at an amount equal to 12-month ECL.


Financial guarantees in the parent company
Financial guarantee contracts are recognised as a financial liability at the time the guarantee is issued. The liability is initially measured at fair value. The fair value of a financial guarantee contract is the present value of the difference between the net contractual cash flows required under a debt instrument, and the net contractual cash flows that would have been required without the guarantee. The liability is amortised in a straight line over the period the guarantee remains in place.

Fair value measurements


The group measures financial instruments at fair value at each reporting date where relevant. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest.


For the purpose of fair value disclosures, the group has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy. The group uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.



F - 27


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)






2    SEGMENTAL INFORMATION


AngloGold Ashanti Limited’sAshanti’s operating segments are being reported based on the financial information provided to the Chief Executive Officer and the Executive Committee, collectively identified as the Chief Operating Decision Maker (CODM). The group produces gold as its primary product and does not have distinct divisional segments in terms of principal business activity, but manages its business on the basis of different geographic segments (including equity accounted joint venture investments). Individual members of the Executive Committee are responsible for geographic regions of the business.


Group analysis by origin is as follows:
Figures in millionsGold income
US Dollars202120202019
Geographical analysis of gold income by origin is as follows:
Africa(1)
2,644 2,769 2,203 
Australia890 989 851 
Americas1,028 1,211 1,000 
4,562 4,969 4,054 
Equity-accounted joint ventures included above(659)(647)(615)
Continuing operations3,903 4,322 3,439 
Discontinued operations - South Africa— 408 554 
3,903 4,730 3,993 
Foreign countries included in the above and considered material are:
Australia890 989 851 
Brazil749 853 679 
Ghana565 536 
Guinea5450
Tanzania875 1,133 849 
DRC659 647 504 
Geographical analysis of gold income by destination is as follows:
South Africa1,214 943 981 
North America699 580 486 
South America34 1 — 
Australia890 989 851 
Europe279 358 329 
United Kingdom1,446 2,098 1,407 
4,562 4,969 4,054 
Equity-accounted joint ventures included above(659)(647)(615)
Continuing operations3,903 4,322 3,439 
Discontinued operations - South Africa— 408 554 
Continuing and discontinued operations3,903 4,730 3,993 



F - 28

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)

2    SEGMENTAL INFORMATION (continued)
Figures in millionsGold income
US Dollars2018 2017 2016
Geographical analysis of gold income by origin is as follows:     
South Africa602
 1,101
 1,173
Continental Africa(1)
1,983
 1,895
 1,663
Australasia780
 709
 646
Americas1,021
 1,104
 1,036
 4,386
 4,809
 4,518
Equity-accounted investments included above(581) (453) (433)
 3,805
 4,356
 4,085
      
Foreign countries included in the above and considered material are:     
Brazil634
 705
 659
Guinea  489
 

Tanzania715
 664
 591
DRC468
    
      
Geographical analysis of gold income by destination is as follows:     
South Africa1,445
 1,659
 1,719
North America450
 456
 893
Australia780
 709
 645
Europe387
 399
 377
United Kingdom1,324
 1,586
 884
 4,386
 4,809
 4,518
Equity-accounted investments included above(581) (453) (433)
 3,805
 4,356
 4,085
Figures in millionsBy product revenue
US Dollars202120202019
Africa(1)
5 4 3 
Australia4 3 3 
Americas119 99 81 
128 106 87 
Equity-accounted joint ventures included above(2)(1)(1)
Continuing operations126 105 86 
Discontinued operations - South Africa— 1 1 
126 106 87 

Figures in millionsBy product revenue
US Dollars2018
 2017
 2016
South Africa6
 15
 23
Continental Africa(1)
3
 3
 4
Australasia2
 2
 2
Americas128
 135
 110
 139
 155
 139
Equity-accounted investments included above(1) (1) (1)
 138
 154
 138


The Group'sgroup's revenue is mainly derived from gold income. GoldApproximately 59% of the group's total gold produced is sold through numerous traders worldwide. The Group isto three customers of the group: ANZ Investment Bank Ltd in Australia (20%), Standard Chartered Bank in the United Kingdom (23%), and Bank of Montreal in North America (16%). Due to the diversity and depth of the total gold market, the bullion banks do not economically dependent on a limited numberpossess significant pricing power.

Figures in millionsCost of sales
US Dollars202120202019
Africa(1)
1,650 1,572 1,601 
Australia740 705 632 
Americas822 764 822 
Corporate and other(5)(2)(1)
3,207 3,039 3,054 
Equity-accounted joint ventures included above(350)(340)(428)
Continuing operations2,857 2,699 2,626 
Discontinued operations - South Africa— 287 479 
2,857 2,986 3,105 

Figures in millions
Gross profit (loss) (2)
US Dollars202120202019
Africa(1)
999 1,201 605 
Australia153 286 221 
Americas325 532 265 
Corporate and other6 (2)1 
1,483 2,017 1,092 
Equity-accounted joint ventures included above(311)(308)(188)
Continuing operations1,172 1,709 904 
Discontinued operations - South Africa— 83 79 
1,172 1,792 983 


F - 29


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)


2    Segmental InformationSEGMENTAL INFORMATION (continued)

Figures in millionsAmortisation
US Dollars202120202019
Africa(1)
268 349 367 
Australia150 160 173 
Americas161 163 177 
Corporate and other3 2 3 
582 674 720 
Equity-accounted joint ventures included above(105)(104)(137)
Continuing operations477 570 583 
Discontinued operations - South Africa— — 61 
477 570 644 


Figures in millions
Total assets (1)(3)(4)
US Dollars202120202019
South Africa— — 697 
Africa4,193 3,956 3,514 
Australia1,034 1,044 972 
Americas1,886 1,626 1,427 
Corporate and other854 1,046 253 
7,967 7,672 6,863 

Figures in millions
Non-current assets (5)
US Dollars202120202019
Non-current assets considered material, by country are:
South Africa61 59 25 
Foreign entities5,607 5,053 4,644 
DRC1,604 1,604 1,506 
Ghana1,158 915 758 
Tanzania510 425 379 
Australia806 849 817 
Brazil797 627 625 
F - 30
Figures in millions
Gross profit (loss) (2)
US Dollars2018
 2017
 2016
South Africa21
 (3) 149
Continental Africa(1)
380
 386
 334
Australasia160
 159
 106
Americas(1)
310
 253
 283
Corporate and other(1)
3
 2
 (4)
 874
 797
 868
Equity-accounted investments included above(102) (13) (27)
 772
 784
 841



Figures in millionsCost of sales
   Restated
 Restated
US Dollars2018
 2017
 2016
South Africa590
 1,129
 1,064
Continental Africa(1)
1,607
 1,513
 1,334
Australasia622
 551
 542
Americas (1)
838
 987
 863
Corporate and other(1)
(4) (3) 5
 3,653
 4,177
 3,808
Equity-accounted investments included above(480) (441) (407)
 3,173
 3,736
 3,401


Figures in millionsAmortisation
US Dollars2018
 2017
 2016
South Africa72
 133
 167
Continental Africa(1)
379
 421
 365
Australasia149
 130
 126
Americas(1)
192
 273
 260
Other, including non-gold producing subsidiaries3
 2
 5
 795
 959
 923
Equity-accounted investments included above(165) (136) (114)
Continuing operations630
 823
 809


Figures in millions
Total assets (1)(3)(4)
US Dollars2018
 2017
 2016
South Africa1,106
 1,734
 1,818
Continental Africa3,135
 3,153
 3,090
Australasia888
 929
 804
Americas1,286
 1,258
 1,273
Other, including non-gold producing subsidiaries228
 145
 168
 6,643
 7,219
 7,153



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)


2    Segmental InformationSEGMENTAL INFORMATION (continued)

Figures in millionsCapital expenditure
US Dollars202120202019
Africa(1)
506 397 410 
Australia185 143 149 
Americas398 217 195 
Corporate and other11 — — 
Continuing operations1,100 757 754 
Discontinued operations - South Africa— 35 60 
1,100 792 814 
Equity-accounted joint ventures included above(72)(56)(51)
1,028 736 763 

(1)Includes equity-accounted investments.
(2)The group's segmental profit measure is gross profit (loss), which excludes the results of associates and joint ventures. For the reconciliation of gross profit (loss) to profit before taxation and discontinued operations, refer to the group income statement.
(3)Total assets include allocated goodwill of $111m (2020: $118m; 2019: $108m) for Australia and $8m (2020: $8m; 2019: $8m) for Americas (note 15). In 2019, the South African segment included assets held for sale of $581m and the Africa Region segment included assets held for sale of $20m.
(4)In 2021, pre-tax impairments and derecognition of assets of $1m were accounted for in Corporate and other (2020: nil; 2019: nil), nil in South Africa (2020: $17m impairment reversal; 2019: $556m), Africa Region of $4m (2020: nil; 2019: $2m) and the Americas of $1m (2020: nil; 2019: $1m).
(5)Non-current assets exclude financial instruments and deferred tax assets.


F - 31
Figures in millions
Non-current assets (5)
US Dollars2018
 2017
 2016
      
Non-current assets considered material, by country are:     
South Africa(5)
1,005
 1,295
 1,678
Foreign entities(5)
4,234
 4,259
 4,144
      
DRC(5)
1,439
 1,423
 1,400
Ghana(5)
550
 533
 520
Tanzania(5)
369
 422
 437
Australia(5)
718
 764
 673
Brazil(5)
615
 632
 645


Figures in millionsCapital expenditure
US Dollars2018
 2017
 2016
South Africa73
 150
 182
Continental Africa(1)
313
 409
 291
Australasia156
 153
 109
Americas (1)
176
 234
 225
Other, including non-gold producing subsidiaries3
 7
 4
 721
 953
 811
Equity-accounted investments included above(69) (123) (100)
 652
 830
 711

(1)
Includes equity-accounted investments.
(2)
The group's segmental profit measure is gross profit (loss), which excludes the results of associates and joint ventures. For the reconciliation of gross profit (loss) to profit before taxation, refer to the group income statement.
(3)
Total assets includes allocated goodwill of nil (2017: nil; 2016: $8m) for South Africa, $108m (2017: $119m; 2016: $110m) for Australasia and $8m (2017: $8m; 2016: $8m) for Americas (note 15). The South African segment includes assets held for sale of nil (2017: $348m; 2016:nil).
(4)
In 2018, pre-tax impairments and derecognition of assets of $98m were accounted for in South Africa (2017: $294m; 2016: $3m), Continental Africa $5m (2017: nil; 2016: nil) and the Americas $1m (2017: nil; 2016; nil).
(5)
Non-current assets exclude financial instruments and deferred tax assets.


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)












3    REVENUE FROM PRODUCT SALES
US Dollars
Figures in millions202120202019
Revenue consists of the following principal categories:
Gold income (note 2)3,903 4,322 3,439 
By-products (note 2)126 105 86 
4,029 4,427 3,525 

 US Dollars
Figures in millions2018
 2017
 2016
   Restated
 Restated
Revenue consists of the following principal categories:     
Gold income (note 2)3,805
 4,356
 4,085
By-products (note 2)138

154

138
Revenue from product sales3,943
 4,510
 4,223
4    COST OF SALES
US Dollars
Figures in millions202120202019
Cash operating costs2,160 1,881 1,831 
Royalties162 181 137 
Other cash costs12 12 13 
Total cash costs2,334 2,074 1,981 
Retrenchment costs2 2 4 
Rehabilitation and other non-cash costs38 32 53 
Amortisation of tangible assets (notes 30 and 34)411 521 538 
Amortisation of right of use assets (notes 14, 30 and 34)63 47 42 
Amortisation of intangible assets (notes 15, 30 and 34)3 2 3 
Inventory change6 21 5 
2,857 2,699 2,626 

 US Dollars
Figures in millions2018
 2017
 2016
   Restated
 Restated
Cash operating costs2,356
 2,728
 2,444
Royalties135
 116
 105
Other cash costs14
 19
 24
Total cash costs2,505
 2,863
 2,573
Retrenchment costs4
 6
 14
Rehabilitation and other non-cash costs20
 29
 43
Amortisation of tangible assets (note 30 and note 34)625
 817
 789
Amortisation of intangible assets (note 30 and note 34)5
 6
 20
Inventory change14
 15
 (38)
 3,173
 3,736
 3,401
5    OTHER OPERATING EXPENSESEXPENSE (INCOME)
US Dollars
Figures in millions202120202019
Care and maintenance (1)
45 — 47 
Governmental fiscal claims7 6 12 
 Cost of old tailings operations9 14 9 
Guinea public infrastructure contribution— — 8 
Pension and medical defined benefit provisions7 8 9 
Royalty receivable impaired— 4 — 
Royalties received(2)(2)(3)
Brazilian power utility legal settlement— — (16)
Retrenchment and related costs (2)
18 — 3 
Legal fees and project costs10 9 11 
Refund from insurance claim— (5)— 
Other indirect taxes18 23 3 
Premium on settlement of bonds (3)    
24 — — 
136 57 83 

(1)    Following a sill pillar incident at Obuasi on 18 May 2021, the Company voluntarily suspended all underground activities until mid-October 2021 when underground ore mining resumed to replenish the run-of-mine stockpile without corresponding gold production.
(2)    Retrenchment costs incurred in 2021 as part of the transition to the new Operating Model.
(3)    Bond settlement costs following the early redemption of the $750m, 5.125% notes due 2022.

F - 32
 US Dollars
Figures in millions2018
 2017
 2016
Care and maintenance costs (note 34)74
 62
 70
Pension and medical defined benefit provisions10
 9
 25
Governmental fiscal claims, care and maintenance of old tailings operations and other13
 17
 15
 97
 88
 110
6    SPECIAL ITEMS

US Dollars
Figures in millions2018

2017

2016
Impairment and derecognition of assets104
 297
 3
Impairment of other investments—
 3
 —
Retrenchment and related costs34
 88
 1
Legal fees (recoveries) and other costs related to contract terminations and settlement costs17
 71
 11
Write-down of inventories1
 3
 12
Net (profit) loss on disposal of assets20
 (8) (4)
Royalties received(10) (18) (9)
Indirect tax expense (recoveries)4
 2
 (2)
Repurchase premium and cost on settlement of debt facilities—
 —
 30
 170
 438
 42

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)











76    FINANCE COSTS AND UNWINDING OF OBLIGATIONS
US Dollars
Figures in millions202120202019
Finance costs
Finance costs on bonds, bank loans and other109 124 135 
Amortisation of fees6 23 4 
Lease finance charges9 8 10 
Less: interest captalised(14)(17)(6)
110 138 143 
Unwinding of obligations6 39 29 
Total finance costs and unwinding of obligations (notes 30 and 34)116 177 172 
The interest included within finance costs is calculated at effective interest rates.
 US Dollars
Figures in millions2018
 2017
 2016
Finance costs     
Finance costs on bonds, corporate notes, bank loans and other128
 132
 148
Amortisation of fees7
 4
 4
Finance lease charges5
 6
 6
 140
 142
 158
Unwinding of obligations38
 27
 22
Total finance costs and unwinding of obligations (note 30 and 34)178
 169
 180
87    SHARE OF ASSOCIATES AND JOINT VENTURES' PROFIT (LOSS)
US Dollars
Figures in millions202120202019
Revenue697 677 616 
Operating costs and other expenses(370)(353)(452)
Profit on sale of joint ventures— 19 — 
Net interest received7 5 10 
Profit (loss) before taxation334 348 174 
Taxation(85)(70)(35)
Profit (loss) after taxation249 278 139 
Impairment reversal of investments in associates— — 23 
Impairment reversal of investments in joint ventures (note 17)— — 6 
Share of associates and joint ventures’ profit (loss) (note 30)249 278 168 


8    EMPLOYEE BENEFITS
US Dollars
Figures in millions202120202019
Employee benefits including Executive Directors’ and Prescribed Officers’ salaries and other benefits593 644 697 
- current medical expenses25 23 29 
- defined benefit post-retirement medical expenses6 7 8 
- defined contribution20 25 29 
Retrenchment costs16 2 7 
Share-based payment expense (note 9)22 16 42 
Included in cost of sales, other expenses and corporate administration, marketing and related expenses of continuing and discontinued operations682 717 812 



F - 33
 US Dollars
Figures in millions2018
 2017
 2016
   Restated
 Restated
Revenue(1)
582
 454
 442
Operating costs, special items and other expenses(1)
(472) (471) (447)
Net interest received(8) 1
 3
Profit (loss) before taxation102

(16)
(2)
Taxation(9) 23
 7
Profit (loss) after taxation93

7

5
(Impairment) impairment reversal of investments in associates15
 13
 (5)
Impairment reversal of investments in joint ventures (note 17)14
 2
 11
Share of associates and joint ventures’ profit (loss) (note 30)122

22

11
(1) Restated on adoption of IFRS 15.    

9    EMPLOYEE BENEFITS
 US Dollars
Figures in millions2018
 2017
 2016
Employee benefits including Executive Directors’ and Prescribed Officers’ salaries and other benefits797
 1,024
 918
Health care and medical scheme costs
    
- current medical expenses39
 58
 51
- defined benefit post-retirement medical expenses9
 10
 10
Pension and provident plan costs
    
- defined contribution37
 53
 48
- defined benefit pension plans—
 —
 15
Retrenchment costs30
 92
 16
Share-based payment expense (note 10)35
 33
 37
Included in cost of sales, other operating expenses, special items and corporate administration, marketing and other expenses947

1,270

1,095



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)

10    Share-based payments


9    SHARE-BASED PAYMENTS
US Dollars
Figures in millions202120202019
Equity-settled share incentive schemes
Bonus Share Plan (BSP)— 1 6 
Deferred Share Plan (DSP)22 14 13 
Other— 1 2 
22 16 21 
Cash-settled share incentive scheme— — 21 
Total share-based payment expense (note 8)22 16 42 
 US Dollars
Figures in millions2018
 2017
 2016
Equity-settled share incentive schemes     
Bonus Share Plan (BSP)20
 26
 26
Long Term Incentive Plan (LTIP)1
 (1) 7
Other1
 1
 1
 22

26

34
Cash-settled share incentive scheme     
Cash-settled Long Term Incentive Plan (CSLTIP)13
 7
 3
Total share-based payment expense (note 9)35

33

37


Equity-settled incentive schemes


EquityPrevious equity schemes with outstanding awards exercisable include the Bonus Share Plan (BSP), and Long Term Incentive Plan (LTIP) and the Co-Investment Plan (CIP). A new incentive scheme, theThe Deferred Share Plan (DSP), has been implemented in January 2018. No allocation under the DSP has been made in 2018. There were otherwise no additional schemes introduced during 2018 and no changes to rules or practices replaced all previous AngloGold Ashanti incentive schemes. The last allocations granted in the existing schemes.BSP and LTIP schemes vested during 2020; there are no further allocations and vesting as the schemes have been closed.


Bonus Share Plan (BSP)
Award date (unvested awards and awards vested during the year)2018
 2017
 2016
Calculated fair valueR119.14
 R152.87
 R229.22
Vesting date 50%22 Feb 2019
 1 Mar 2018
 1 Mar 2017
Vesting date 50%22 Feb 2020
 1 Mar 2019
 1 Mar 2018
Expiry date22 Feb 2028
 1 Mar 2027
 1 Mar 2026
 Number of shares
 2018
 2017
 2016
Awards outstanding at beginning of year4,479,679
 4,198,285
 4,708,799
Awards granted during the year2,492,584
 1,926,549
 2,103,767
Awards lapsed during the year(359,343) (218,601) (204,374)
Awards exercised during the year(2,055,001) (1,426,554) (2,409,907)
Awards outstanding at end of year4,557,919
 4,479,679
 4,198,285
Awards exercisable at end of year1,588,512
 1,904,021
 1,170,849

Long Term Incentive Plan (LTIP)
Award date (unvested awards and awards vested during the year)2015
2018
Calculated fair value

R129.94119.14 
Vesting date 50%22 Feb 2019
Vesting date 50%22 Feb 2020
Expiry date22 Feb 2028
Number of shares
202120202019
Awards outstanding at beginning of year1,005,977 2,141,415 4,557,919 
Awards granted during the year— — — 
Awards lapsed during the year— — (109,065)
Awards exercised during the year(156,294)(1,135,438)(2,307,439)
Awards outstanding at end of year849,683 1,005,977 2,141,415 
Awards exercisable at end of year849,683 1,005,977 1,207,936 

No cash awards were granted under the bonus share plan at year end 31 December 2021 (2020: nil; 2019: 12,295) and no cash awards vested or were deemed settled for the year ended 31 December 2021 (2020: 12,295; 2019: 20,751).
Deferred Share Plan (DSP)
The DSP was implemented with effect from 1 January 2018, with the first awards for the scheme allocated in March 2019. This represents a single scheme under which share awards will be allocated to certain employees from 2019 onwards, vesting equally over a period of 2, 3 and 5 years depending on the level of seniority of the participant.

F - 34




Equity-settled incentive schemes (continued)
Award date (unvested awards and awards vested during the year)202120202019
Calculated fair valueR308.97 R325.97 R204.42 
DSP 2 year
Vesting date 50%24 Feb 202225 Feb 202121 Feb 2020
Vesting date 50%24 Feb 202325 Feb 202221 Feb 2021
DSP 3 year
Vesting date 33%24 Feb 202225 Feb 202121 Feb 2020
Vesting date 33%24 Feb 202325 Feb 202221 Feb 2021
Vesting date 34%24 Feb 202425 Feb 202321 Feb 2022
DSP 5 year
Vesting date 20%24 Feb 202225 Feb 202121 Feb 2020
Vesting date 20%24 Feb 202325 Feb 202221 Feb 2021
Vesting date 20%24 Feb 202425 Feb 202321 Feb 2022
Vesting date 20%24 Feb 202525 Feb 202421 Feb 2023
Vesting date 20%24 Feb 202625 Feb 202521 Feb 2024
Expiry date24 Feb 203125 Feb 203021 Feb 2029
Number of shares
202120202019
Awards outstanding at beginning of year2,289,762 1,599,360 — 
Awards granted during the year1,185,348 1,176,532 1,669,191 
Awards lapsed during the year(322,814)(155,575)(55,208)
Awards exercised during the year(459,913)(330,555)(14,623)
Awards outstanding at end of year2,692,383 2,289,762 1,599,360 
Awards exercisable at end of year588,694 183,439 — 

Long Term Incentive Plan (LTIP)
Award date (unvested awards and awards vested during the year)2015
Calculated fair valueR129.94 
Vesting date3 Mar 2018
Expiry date3 Mar 2025
Number of shares
202120202019
Awards outstanding at beginning of year111,562 229,639 447,842 
Awards lapsed during the year— — — 
Awards exercised during the year(2,333)(118,077)(218,203)
Awards outstanding at end of year109,229 111,562 229,639 
Awards exercisable at end of year109,229 111,562 229,639 
F - 35
 Number of shares
 2018
 2017
 2016
Awards outstanding at beginning of year2,466,357
 4,363,330
 6,028,193
Awards lapsed during the year(1,186,330) (1,512,857) (1,160,023)
Awards exercised during the year(832,185) (384,116) (504,840)
Awards outstanding at end of year447,842
 2,466,357
 4,363,330
Awards exercisable at end of year447,842
 455,914
 320,169



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)


10    Share-based payments (continued)


10    TAXATION
Figures in millionsUS Dollars
202120202019
South African taxation
Normal taxation— 1 — 
Prior year over provision(1)— — 
Deferred taxation
Other temporary differences— 74 (18)
Change in estimated deferred tax rate— — (14)
(1)75 (32)
Foreign taxation
Normal taxation252 553 299 
Prior year (over) under provision(3)8 (1)
Deferred taxation
Temporary differences52 9 (28)
Prior year under (over) provision4 (6)1 
Change in estimate6 (14)9 
Change in statutory tax rate2 — 2 
313 550 282 
312 625 250 


Equity-settled incentive schemes (continued)


Co-Investment Plan (CIP)
 Number of shares
 2018
 2017
 2016
Awards outstanding at beginning of year95,378
 97,651
 145,040
Awards granted during the year80,809
 112,105
 47,590
Awards lapsed during the year(11,633) (62,775) (18,570)
Awards exercised during the year(51,976) (51,603) (76,409)
Awards outstanding at end of year112,578
 95,378
 97,651

Cash-Settled Long Term Incentive Plan (CSLTIP)

There were no changes to rules or practices within the CSLTIP scheme, and no awards during 2018.
Award date (unvested awards and awards vested during the year)    
  2017
 2016
Closing share price at 30 December:
R128.62
 R152.58
Vesting date
1 March 2020
 1 March 2019
 Number of units
 2018
2017
2016
Share units outstanding at beginning of year4,469,618
2,464,630
30,163
Share units granted during the year—
2,572,437
2,537,000
Share units lapsed during the year(611,265)(507,597)(100,490)
Share units exercised during the year(42,592)(59,852)(2,043)
Share units outstanding at end of year3,815,761
4,469,618
2,464,630



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)



11    TAXATION
Figures in millionsUS Dollars
 2018
 2017
 2016
South African taxation     
Normal taxation—
 1
 1
Prior year (over) under provision(2) —
 (3)
Deferred taxation     
Impairment and disposal of tangible assets(47) (72) —
Other temporary differences(34) (62) 12
Prior year (over) under provision(2) 15
 25
Change in estimated deferred tax rate(23) 31
 —
 (108)
(87)
35
Foreign taxation     
Normal taxation243
 201
 246
Prior year (over) under provision1
 (26) (10)
Deferred taxation     
Temporary differences(4) 20
 (65)
Prior year (over) under provision4
 2
 (17)
Change in estimate(7) —
 —
Change in statutory tax rate(1) (2) —
 236
 195
 154
 128
 108
 189
      

Reconciliation to South African statutory rate
Figures in millionsUS Dollars
Reconciliation to South African statutory rate202120202019
Implied tax charge at 28%268 445 173 
Increase (decrease) due to:
Expenses not tax deductible(1)
22 29 28 
Share of associates and joint ventures' profit(70)(78)(47)
Tax rate differentials(2) and withholding taxes(3)
54 96 39 
Exchange variations and translation adjustments6 28 11 
Current year tax losses (expense) not recognised:
Obuasi6 (6)14 
AngloGold Ashanti Holdings plc25 31 29 
   North America13 4 6 
   Siguiri (4)
(37)(8)— 
   SA Corporate18 — — 
Change in planned utilisation of deferred tax assets and impact of estimated deferred tax rate change6 (14)(5)
Tax effect of retained SA items— 16 3 
Tax allowances— (1)(1)
Derecognition of deferred tax assets— 78 — 
Impact of statutory tax rate change2 — 2 
Adjustment in respect of prior years— 2 — 
Other(1)3 (2)
Income tax expense312 625 250 
Figures in millionsUS Dollars
Reconciliation to South African statutory rate2018
 2017
 2016
      
Implied tax charge at 28%78

(18)
75
Increase (decrease) due to: 
   
Expenses not tax deductible(1)
29
 30
 27
Share of associates and joint ventures' profit (loss)(34) (6) (3)
Tax rate differentials(2)
25
 27
 48
Exchange variations, translation and accounting adjustments20
 7
 (20)
Current year tax losses not recognised (recognised) in deferred tax assets:     
Obuasi mine13
 18
 22
AngloGold Ashanti Holdings plc(3)
36
 —
 —
   North America6
 —
 —
Tax exempt entities:
 
 
AngloGold Ashanti Holdings plc(3)
—
 31
 37
Other6
 (2) (2)
Change in planned utilisation of deferred tax assets and impact of estimated deferred tax rate change(30) 35
 2
Tax effect of disposal of Vaal River assets(18) —
 —
Loss on realisation of loan settlement—
 —
 17
Tax allowances(3) (3) (9)
Impact of statutory tax rate change(1) (2) —
Adjustment in respect of prior years1
 (9) (5)
Income tax expense128
 108
 189
      
      


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)

11    Taxation (continued)

Anglogold Ashanti has changed the tax rate reconciliation from a percentage reconciliation of the estimated corporate tax rate to a numerical reconciliation of the income tax expense and has expanded disclosure on certain line items in the reconciliation to provide more relevant information to users.

(1) Includes corporate, exploration and othernon-tax deductible rehabilitation costs transfer pricing and British Virgin Isle companygroup losses.

(2) Due to different tax rates in various jurisdictions.jurisdictions, primarily Tanzania, Ghana, Guinea, Australia, Brazil and Argentina.

(3) Withholding taxes on dividends paid.
(3) During 2018, AngloGold Ashanti Holdings plc changed its(4) Siguiri current tax jurisdiction from the Isle of Man (taxed at 0% in 2017)expense not recognised due to the United Kingdom (taxed at 19% in 2018).

tax holiday.
F - 36
Table of Contents

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)

10    TAXATION (continued)
Figures in millionsUS DollarsFigures in millionsUS Dollars

2018

2017

2016
202120202019
Analysis of unrecognised deferred tax assets




Analysis of unrecognised deferred tax assets
Tax losses available to be utilised against future profits




Available to be utilised against future profitsAvailable to be utilised against future profits
- utilisation required within one year48
 —
 —
- utilisation required within one year54 62 — 
- utilisation required between one and two years187
 48
 —
- utilisation required between one and two years177 54 85 
- utilisation required between two and five years300
 333
 321
- utilisation required between two and five years1,339 352 356 
- utilisation required between five and twenty years1,229
 1,210
 1,185
- utilisation required between five and twenty years989 1,002 973 
- utilisation in excess of twenty years26
 1
 1
- utilisation in excess of twenty years449 421 73 

1,790
 1,592
 1,507
3,008 1,891 1,487 
At the statutory tax rates the unrecognised value of deferred tax assets are: $501m (2017: $470m; 2016: $477m)is: $834m (2020: $487m; 2019: $389m), mainly relating to tax losses incurred in the United Kingdom, North America, Ghana, Colombia and Colombia.South Africa. Unutilised capital allowances in Ghana of $1bn were converted into tax losses in 2021. The losses are forfeited if not utilised within five years.


Income tax uncertainties

AngloGold Ashanti operates in numerous countries around the world and accordingly is subject to, and pays annual income taxes under, the various income tax regimes in the countries in which it operates. Some of these tax regimes are defined by contractual agreements with local government, and others are defined by the general corporate income tax laws of the country. The group has historically filed, and continues to file, all required income tax returns and to pay the taxes reasonably determined to be due. In some jurisdictions, tax authorities are yet to complete their assessments for previous years. The tax rules and regulations in many countries are highly complex and subject to interpretation. From time to time, the group is subject to a review of its historic income tax filings and in connection with such reviews, disputes can arise with the tax authorities over the interpretation or application of certain rules in respect of the group’s business conducted within the country involved. Significant judgement is required in determining the worldwide provisions for income taxes due to the complexity of legislation. There are many transactions and calculations for which the ultimate tax determination is uncertain during the ordinary course of business.

Irrespective of whether potential economic outflows of matters have been assessed as probable or possible, individually significant matters are included below, to the extent that disclosure does not prejudice the group.

Argentina - Cerro Vanguardia SA
The Argentina Tax Authority has challenged the deduction of certain hedge losses, with tax and penalties amounting to $7m (2020: $8m; 2019: $10m). Management has appealed this matter which has been heard by the Tax Court, with final evidence submitted in 2017. The matter is pending and judgement is expected in the next 24 months as at 31 December 2021. Management is of the opinion that the hedge losses were claimed correctly and no provision has therefore been made.

Brazil - AGA Mineração and Serra Grande
The Brazil Tax Authority has challenged various aspects of the companies’ tax returns for periods from 2005 to 2016 which individually and in aggregate are not considered to be material. Based on engagement with the Brazil Tax Authority, certain amounts have been allowed and assessments reduced, whilst objections have been lodged against the remainder of the findings. In December 2019, Serra Grande received a tax assessment of $19m (2020: $20m; 2019: $25m) relating to the amortisation of goodwill on the acquisition of mining interests, which is permitted as a tax deduction when the acquirer is a domiciled entity. Management is of the opinion that the Brazil Tax Authority is unlikely to succeed in this matter. This is supported by external legal advice and therefore no provision has been made.

Colombia - La Colosa and Gramalote
The tax treatment of exploration expenditure has been investigated by the Colombian Tax Authority which resulted in claims for taxes and penalties of $74m(1) (2020: $86m; 2019: $88m) pertaining to the 2010 to 2014 tax years.

These assessments were appealed in 2016 (in the case of La Colosa) and resulted in an adverse judgement on 22 October 2018, in the Administrative Court of Cundinamarca. An appeal was lodged and all arguments submitted to the Council of State on 21 August 2018, with an expected judgement in the next 12 to 18 months as at 31 December 2021. The deduction of exploration costs is prohibited from 2017 onwards following a change in legislation. Subsequent to this date, exploration costs have been treated in accordance with the amended legislation. In July 2019, the Supreme Administrative Court issued a ruling that duplicate penalties may not be charged. The impact of the ruling is that certain penalties will be waived, which reduces the overall exposure by $48m (2020: $76m; 2019: $76m). The matter is pending and may take two to four years to be resolved. Management is of the opinion that the Colombian Tax Authority is unlikely to succeed in this matter and therefore no provision has been made.

(1) After reduction of overall exposure by $48m (2020: $76m; 2019: $76m ) as described above.

Ghana - Iduapriem
The Ghana Revenue Authority completed a tax audit during the third quarter of 2020 for the 2018 year of assessment claiming a tax liability of $14m (2020: $15m). The claim relates to corporate income taxes, where certain business expenses have been disallowed as a deduction for tax purposes. Management filed an objection to the assessment in September 2020 and a tax appeal with the High Court during the fourth quarter of 2021. Management is of the opinion that the Ghana Revenue Authority is unlikely to succeed in this matter and therefore no provision has been made.


F - 37
Table of Contents

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)

10    TAXATION (continued)

Guinea - Siguiri
The Guinea Tax Authority has challenged certain aspects of Société AngloGold Ashanti de Guinée S.A.'s tax return for the 2010 year of assessment totaling $8m (attributable) (2020: $8m (attributable); 2019: $12m (attributable)). Management has objected to the assessment. However, provision has been made for a portion of the total claims amounting to $2m (attributable) (2020: $2m (attributable); 2019: $2m (attributable)).

Mali – Yatela and AGA Mali Services
The Mali Tax Authority has challenged various aspects of Société des Mines de Yatela S.A. and Société AngloGold Ashanti Mali S.A.'s tax returns for periods of 2012 to 2019 totaling $4m (attributable) (2020: $1m (attributable); 2019: $1m (attributable)). Management is of the opinion that the Mali Tax Authority is unlikely to succeed in the tax matters and therefore no provision has been made.

Tanzania - Geita Gold Mine
The Tanzania Revenue Authority has raised audit findings on various tax matters for years from 2009 to 2020 amounting to $291m (2020: $254m; 2019: $164m) including adjusted tax assessments relating to the years from 2015 to 2020 totaling $36m received during 2021. In addition, the Tanzania Revenue Authority has issued Agency Notices on various local bank accounts of the Company in Tanzania, enforcing payments from those bank accounts, despite the matters being on appeal. In order to continue operating its bank accounts and to not impact operations, Geita paid $25m under protest. Management has objected and appealed through various levels of the administrative processes. Management is of the opinion that the claims of the Tanzania Revenue Authority are unlikely to succeed.

In addition, it should be noted that amendments passed to Tanzanian legislation in 2017 amended the 2010 Mining Act and new Finance Act. Effective from 1 July 2017, the gold mining royalty rate increased to 6% (from 4%) and further a 1% clearing fee on the value of all minerals exported was imposed. The group has been paying the higher royalty and clearing fees since this date, under protest, and is of the view that this is in contravention of its Mining Development Agreement.

Tax impacts of COVID-19
As a result of the COVID-19 pandemic, governments have responded with various stimulus packages, to provide relief to companies and individuals, to ensure business and employment continuity. This has been achieved through various tax and employment concessions, over varying periods, mostly commencing in April 2020. In North America, the US Government passed the Coronavirus Aid, Relief and Economic Security (CARES) Act on 27 March 2020. The bill provides various tax relief and incentives such as accelerated access to tax attributes created under the Tax Cuts and Jobs Act of 2017 (TCJA) and resulted in an alternative minimum tax refund of $7m received during 2021. Other tax jurisdictions have provided tax relief in various forms to companies which will impact on tax planning and tax payments in the light of the uncertainty created by the pandemic. Management continues to evaluate these tax measures and applies them when appropriate.


F - 38
Table of Contents

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

1211    EARNINGS (LOSS) PER ORDINARY SHARE
202120202019
US cents per share
Basic earnings (loss) per ordinary share148 227 (3)
- Continuing operations148 225 87 
The calculation of basic earnings (loss) per ordinary share is based on profits (losses) attributable to equity shareholders of $622m (2020: $946m; 2019: $364m) and 419,755,627 (2020: 419,033,516; 2019: 418,349,777) shares being the weighted average number of ordinary shares in issue during the financial year.
- Discontinued operations— 2 (90)
The calculation of basic earnings (loss) per ordinary share is based on profits (losses) attributable to equity shareholders of nil (2020: $7m; 2019: $(376)m) and 419,755,627 (2020: 419,033,516; 2019: 418,349,777) shares being the weighted average number of ordinary shares in issue during the financial year.
Diluted earnings (loss) per ordinary share148 227 (3)
- Continuing operations148 225 87 
The calculation of diluted earnings (loss) per ordinary share is based on profits (losses) attributable to equity shareholders of $622m (2020: $946m; 2019: $364m) and 420,056,703 (2020: 419,481,450; 2019: 418,349,777) shares being the diluted number of ordinary shares.
- Discontinued operations— 2 (90)
The calculation of diluted earnings (loss) per ordinary share is based on profits (losses) attributable to equity shareholders of nil (2020: $7m; 2019: $(376)m) and 420,056,703 (2020: 419,481,450; 2019: 418,349,777) shares being the weighted average number of ordinary shares in issue during the financial year.

 2018
 2017
 2016
 US cents per share
Basic earnings (loss) per ordinary share32
 (46) 15
The calculation of basic earnings (loss) per ordinary share is based on profits (losses) attributable to equity shareholders of $133m (2017: ($191m); 2016: $63m) and 417,122,155 (2017: 415,440,077; 2016: 412,585,042) shares being the weighted average number of ordinary shares in issue during the financial year.     
      
Diluted earnings (loss) per ordinary share32
 (46) 15
The calculation of diluted earnings (loss) per ordinary share is based on profits (losses) attributable to equity shareholders of $133m (2017: ($191m); 2016: $63m) and 417,379,405 (2017: 415,440,077; 2016: 414,706,400) shares being the diluted number of ordinary shares.     

In calculating the basic and diluted number of ordinary shares outstanding for the year, the following were taken into consideration:
Number of shares
202120202019
Ordinary shares417,272,178 416,399,307 414,407,622 
Fully vested options and currently exercisable(1)
2,483,449 2,634,209 3,942,155 
Weighted average number of shares419,755,627 419,033,516 418,349,777 
Dilutive potential of share options(2)
301,076 447,934 — 
Fully diluted number of ordinary shares420,056,703 419,481,450 418,349,777 
(1)Employee compensation awards are included in basic earnings per share from the date that all necessary conditions have been satisfied and it is virtually certain that shares will be issued as a result of employees exercising their options.
(2)The number of share options that could potentially dilute basic earnings in the future were not included. The anti-dilutive effect was nil (2020: nil; 2019: 517,186).

F - 39
 Number of shares
 2018
 2017
 2016
Ordinary shares411,412,947
 409,265,471
 407,519,542
Fully vested options and currently exercisable(1)
5,709,208
 6,174,606
 5,065,500
Weighted average number of shares417,122,155
 415,440,077
 412,585,042
Dilutive potential of share options257,250
 —
 2,121,358
Fully diluted number of ordinary shares417,379,405
 415,440,077
 414,706,400
Table of Contents

Figures in millionsUS Dollars
In calculating the diluted earnings (loss) attributable to equity shareholders, the following were taken into consideration:     
Profit (loss) attributable to equity shareholders133
 (191) 63
(1)
Employee compensation awards are included in basic earnings per share from the date that all necessary conditions have been satisfied and it is virtually certain that shares will be issued as a result of employees exercising their options.
 US Dollars
Figures in millions2018
 2017
 2016
Headline earnings (loss)     
The profit (loss) attributable to equity shareholders was adjusted by the following to arrive at headline earnings (loss):     
Profit (loss) attributable to equity shareholders from continuing and discontinued operations133
 (191) 63
Net impairment (impairment reversal) and derecognition of assets102
 298
 (16)
Net (profit) loss on disposal of assets32
 (8) 4
Exchange loss on foreign currency translation reserve release—
 —
 60
Taxation on items above(47) (72) —
 220
 27
 111
 US Cents
Basic headline earnings (loss) per share     
The calculation of basic headline earnings (loss) per ordinary share is based on basic headline earnings (losses) of $220m (2017: $27m; 2016: $111m) and 417,122,155 (2017: 415,440,077; 2016: 412,585,042) shares being the weighted average number of ordinary shares in issue during the year.53
 6
 27
Diluted headline earnings (loss) per share     
The calculation of diluted headline earnings (loss) per ordinary share is based on diluted headline earnings (losses) of $220m (2017: $27m; 2016: $111m) and 417,379,405 (2017: 415,440,077; 2016: 414,706,400) shares being the weighted average number of ordinary shares in issue during the year.53
 6
 27

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)




11    EARNINGS (LOSS) PER ORDINARY SHARE (continued)
US Dollars
Figures in millions202120202019
Headline earnings (loss)(2)
The profit (loss) attributable to equity shareholders was adjusted by the following to arrive at headline earnings (loss):
Profit (loss) attributable to equity shareholders from continuing and discontinued operations622 953 (12)
Net (impairment reversal) impairment on held for sale assets— (17)549 
Taxation on net impairment on held for sale assets— — (165)
Net impairment on property, plant and equipment and right of use asset (1)
2 — — 
Derecognition of assets (1)
4 — 10 
Loss on disposal of discontinued operations— 80 — 
Taxation on loss on disposal of discontinued operations— 1 — 
Profit on sale of joint ventures (1)
— (19)— 
Net loss (profit) on disposal of tangible assets(17)2 (3)
Taxation on net (profit) loss on disposal of assets1 — — 
612 1,000 379 
13.(1) Tax effect has not been disclosed as the tax is less than $1m.
(2) Headline earnings and headline earnings per share disclosure has been included due to Johannesburg Stock Exchange requirements.

US Cents
Basic headline earnings (loss) per share
The calculation of basic headline earnings (loss) per ordinary share is based on basic headline earnings (losses) of $612m (2020: $1,000m; 2019: $379m) and 419,755,627 (2020: 419,033,516; 2019: 418,349,777) shares being the weighted average number of ordinary shares in issue during the year.146 238 91 
Diluted headline earnings (loss) per share
The calculation of diluted headline earnings (loss) per ordinary share is based on diluted headline earnings (losses) of $612m (2020: $1,000m; 2019: $379m) and 420,056,703 (2020: 419,481,450; 2019: 418,349,777) shares being the weighted average number of ordinary shares in issue during the year.146 238 91 


12    DIVIDENDS
US Dollars
Figures in millions202120202019
Ordinary shares
Dividend number 120 of 95 SA cents per share was declared on 19 February 2019 and paid on 8 April 2019 (7 US cents per share).27 
Dividend number 121 of 165 SA cents per share was declared on 21 February 2020 and paid on 27 March 2020 (9 US cents per share).38 
Dividend number 122 of 705 SA cents per share was declared on 22 February 2021 and paid on 26 March 2021 (48 US cents per share)199 
Dividend number 123 of 87 SA cents per share was declared on 6 August 2021 and paid on 10 September 2021 (6 US cents per share)25 
224 38 27 

F - 40
  US Dollars
Figures in million 2018
 2017
 2016
Ordinary shares      
Dividend number 118 of 130 SA cents per share was declared on 21 February 2017 and paid on 7 April 2017. (10 US cents per share)   39
  
Dividend number 119 of 70 SA cents per share was declared on 20 February 2018 and paid on 6 April 2018 (6 US cents per share). 24
    
  24
 39
  
Table of Contents


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1413    TANGIBLE ASSETS
Figures in millionsMine
development
costs		Mine
infra-
structure		Mineral
rights
and
dumps		Exploration
and
evaluation
assets		Assets
under
construction
Land and
buildings(2)
Total
US Dollars
Cost
Balance at 1 January 20195,674 4,212 888 4 512 77 11,367 
Additions
- project capital43 — — 1 281 14 339 
- stay-in-business capital208 25 1 2 188 — 424 
Finance costs capitalised(3)
— — — — 6 — 6 
Disposals(1)(16)— — — — (17)
Transfers and other movements(1)
(259)219 1 — (489)(16)(544)
Transfer to assets and liabilities held for sale(660)(663)(9)— (90)(9)(1,431)
Translation(4)(1)— — (3)— (8)
Balance at 31 December 20195,001 3,776 881 7 405 66 10,136 
Accumulated amortisation and impairments
Balance at 1 January 20194,184 2,911 849 3 27 12 7,986 
Amortisation for the year392 215 1 1 — — 609 
Impairment and derecognition of
assets (4)
243 172 — — 90 — 505 
Disposals(1)(15)— — — — (16)
Transfers and other movements(1)
(455)(53)1 — (3)(12)(522)
Transfer to assets and liabilities held for sale(488)(422)(5)— (88)— (1,003)
Translation(9)(5)— — (1)— (15)
Balance at 31 December 20193,866 2,803 846 4 25 — 7,544 
Net book value at 31 December 20191,135 973 35 3 380 66 2,592 
Cost
Balance at 1 January 20205,001 3,776 881 7 405 66 10,136 
Additions
- project capital64 — — 1 246 20 331 
- stay-in-business capital180 8 1 — 179 2 370 
Finance costs capitalised(3)
— — — — 17 — 17 
Disposals(1)(26)— — — — (27)
Transfers and other movements(1)
(1,076)186 (699)2 (320)24 (1,883)
Translation157 9 5 (1)6 — 176 
Balance at 31 December 20204,325 3,953 188 9 533 112 9,120 
Accumulated amortisation and impairments
Balance at 1 January 20203,866 2,803 846 4 25 — 7,544 
Amortisation for the year345 179 5 1 — — 530 
Disposals(1)(25)— — — — (26)
Transfers and other movements(1)
(1,208)(33)(699)— — — (1,940)
Translation117 6 4 — 1 — 128 
Balance at 31 December 20203,119 2,930 156 5 26 — 6,236 
Net book value at 31 December 20201,206 1,023 32 4 507 112 2,884 
F - 41
Figures in millions
Mine
development
costs

 
Mine
infra-
structure(2)

 
Mineral
rights
and
dumps

 
Exploration
and
evaluation
assets

 
Assets
under
construction

 
Land and
buildings(3)(4)

 Total
US Dollars             
              
Cost             
Balance at 1 January 20166,282
 4,432
 914
 5
 356
 78
 12,067
Additions            
- project capital25
 4
 —
 —
 64
 —
 93
- stay-in-business capital363
 54
 1
 —
 192
 1
 611
- capitalised leased assets—
 2
 —
 —
 —
 —
 2
Disposals(45) (46) —
 —
 —
 —
 (91)
Transfers and other movements(1)
(884) 25
 —
 —
 (190) —
 (1,049)
Translation202
 105
 4
 —
 28
 3
 342
Balance at 31 December 20165,943

4,576

919

5

450

82

11,975
              
Accumulated amortisation and impairments             
Balance at 1 January 20164,488
 2,618
 862
 2
 29
 10
 8,009
Amortisation for the year546
 254
 4
 1
 —
 1
 806
Impairment and derecognition of assets1
 2
 —
 —
 —
 —
 3
Disposals(43) (43) —
 —
 —
 —
 (86)
Transfers and other movements(1)
(964) (70) —
 —
 (3) —
 (1,037)
Translation135
 31
 2
 —
 —
 1
 169
Balance at 31 December 20164,163

2,792

868

3

26

12

7,864
Net book value at 31 December 20161,780

1,784

51

2

424

70

4,111
              
Cost             
Balance at 1 January 20175,943
 4,576
 919
 5
 450
 82
 11,975
Additions            
- project capital28
 3
 —
 —
 125
 —
 156
- stay-in-business capital371
 37
 —
 —
 257
 —
 665
Disposals(1) (20) —
 —
 —
 —
 (21)
Transfers and other movements(1)
(168) (21) (27) —
 (291) 1
 (506)
Transfer to non-current assets and liabilities held for sale(785) (281) (7) —
 (72) (3) (1,148)
Translation174
 88
 7
 —
 21
 3
 293
Balance at 31 December 20175,562

4,382

892

5

490

83

11,414
              
Table of Contents


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)


14.    Tangible assets 13    TANGIBLE ASSETS (continued)



Figures in millionsMine
development
costs		Mine
infra-
structure		Mineral
rights
and
dumps		Exploration
and
evaluation
assets		Assets
under
construction
Land and
buildings(2)
Total
US Dollars
Cost
Balance at 1 January 20214,325 3,953 188 9 533 112 9,120 
Additions
- project capital68 — — 5 300 19 392 
- stay-in-business capital274 17 — — 344 — 635 
Finance costs capitalised (3)
— — — — 14 — 14 
Disposals(2)(23)— — — (5)(30)
Transfers and other movements(1)
140 (207)— (2)(320)— (389)
Translation(107)(6)(3)— (5)— (121)
Balance at 31 December 20214,698 3,734 185 12 866 126 9,621 
Accumulated amortisation and impairments
Balance at 1 January 20203,119 2,930 156 5 26 — 6,236 
Amortisation for the year243 166 6 2 — — 417 
Impairment and derecognition of assets(4)
— 6 — — — — 6 
Disposals(1)(22)— — — — (23)
Transfers and other movements(1)
(79)(311)— — — — (390)
Translation(78)(4)(3)— — — (85)
Balance at 31 December 20213,204 2,765 159 7 26 — 6,161 
Net book value at 31 December 20211,494 969 26 5 840 126 3,460 
(1)Transfers and other movements include amounts from deferred stripping, changes in estimates of decommissioning assets, asset reclassifications, derecognition of assets and initial recognition of joint operation share of property, plant and equipment.
Figures in millions
Mine
development
costs

 
Mine
infra-
structure(2)

 
Mineral
rights
and
dumps

 
Exploration
and
evaluation
assets

 
Assets
under
construction

 
Land and
buildings(3)(4)

 Total
Accumulated amortisation and impairments             
Balance at 1 January 20174,163
 2,792
 868
 3
 26
 12
 7,864
Amortisation for the year553
 272
 3
 —
 —
 1
 829
Impairment and derecognition of assets(5)
182
 62
 8
 —
 1
 —
 253
Disposals(1) (20) —
 —
 —
 —
 (21)
Transfers and other movements(1)
(326) (163) (27) —
 —
 —
 (516)
Transfer to non-current assets and liabilities held for sale(685) (169) (4) —
 (1) —
 (859)
Translation93
 22
 5
 —
 —
 2
 122
Balance at 31 December 20173,979

2,796

853

3

26

15

7,672
Net book value at 31 December 20171,583

1,586

39

2

464

68

3,742
              
              
Cost             
Balance at 1 January 20185,562
 4,382
 892
 5
 490
 83
 11,414
Additions            
- project capital2
 —
 —
 —
 175
 —
 177
- stay-in-business capital294
 20
 3
 —
 149
 1
 467
Disposals(5) (30) —
 (1) —
 (3) (39)
Transfers and other movements(1)
60
 (41) —
 —
 (270) 1
 (250)
Translation(239) (119) (7) —
 (32) (5) (402)
Balance at 31 December 20185,674
 4,212
 888
 4
 512
 77
 11,367
              
Accumulated amortisation and impairments             
Balance at 1 January 20183,979
 2,796
 853
 3
 26
 15
 7,672
Amortisation for the year397
 233
 2
 1
 —
 1
 634
Impairment and derecognition of assets(5)
—
 104
 —
 —
 —
 —
 104
Disposals(5) (27) —
 (1) —
 (2) (35)
Transfers and other movements(1)
(52) (153) —
 —
 —
 —
 (205)
Translation(135) (42) (6) —
 1
 (2) (184)
Balance at 31 December 20184,184
 2,911
 849
 3
 27
 12
 7,986
Net book value at 31 December 20181,490
 1,301
 39
 1
 485
 65
 3,381
(1)
Transfers and other movements include amounts from deferred stripping, change in estimates of decommissioning assets, asset reclassifications and derecognition of assets with a carrying value of nil.
(2)
Included in the amounts for mine infrastructure are assets held under finance leases with a net book value of $45m (2017: $56m; 2016: $58m).
(3)
Included in the amounts for land and buildings are assets held under finance leases with a net book value of $3m (2017: $6m; 2016: $7m).
(4)
Assets of $10m (2017: $11m; 2016: $12m) have been pledged as security.
(5)
Impairment and derecognition of assets is assessed as follows:

(2)Assets of $6m (2020: $7m; 2019: $9m) have been pledged as security.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)(3)The weighted average capitalisation rate used to determine the amount of borrowing costs eligible for capitalisation was 4.96% (2020: 4.52%; 2019: 5.60%)

(4)Impairment of assets is assessed as follows:
14.    Tangible assets (continued)


Impairments and derecognitions of tangible assets

For theyear ended 31 December, the following impairments and derecognitions of tangible assets were recognised:

Figures in millions - US Dollars2018
2017
First Uranium93
13
TauTona—
79
Kopanang—
35
Surface Operations1
9
Moab Khotsong—
112
Mponeng4
2
Obuasi5
—
Other1
3
 104
253



Impairment calculation assumptions as at 31 December 20182021 - goodwill, tangible and intangible assets
Management assumptions for the value in use of tangible assets and goodwill include:
•the gold price assumption represents management’s best estimate of the future price of gold. A long-term real gold price of $1,239/$1,599/oz (2017: $1,240/(2020: $1,450/oz; 2019:$1,300/oz) is based on a range of economic and market conditions that will exist over the remaining useful life of the assets.
Annual life of mine plans take into account the following:
proved•Proven and probable Ore Reserve;Probable Mineral Reserve
•value beyond provedProven and probable reservesProbable Mineral Reserve (including exploration potential) determined using the gold price assumption referred to above;
in•In determining the impairment for each cash generating unit, the real pre-tax rate was derived from the weighted average cost of capital (WACC) using the Capital Asset Pricing Model (CAPM) to determine the required return on equity with risk factors consistent with the basis used in 2017.2020. At 31 December 2018,2021, the derived group WACC was 8.30%8.6% (real post-tax) which is 8050 basis points higherlower than in 20172020 of 7.50%9.1%, and is based on the industry average capital structure of the major gold companies considered to be appropriate peers. In determining the WACC for each cash generating unit, sovereign and mining risk factors are considered to determine country specific risks. In certain instances, a specific risk premium was added to large projects being undertaken or the turnaround nature of a specific mine to address uncertainties in the forecast of the cash flows;
•foreign currency cash flows translated at estimated forward exchange rates and then discounted using appropriate discount rates for that currency;
•cash flows used in impairment calculations are based on life of mine plans which range from 26 years to 4129 years; and
•variable operating cash flows are increased at local Consumer Price Index rates.



F - 42
Table of Contents

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)

13    TANGIBLE ASSETS (continued)


Impairments and derecognitions of tangible assets

For theyear ended 31 December, impairments and derecognitions of tangible assets were recognised for the following cash generating units (CGUs):
Figures in millions - US Dollars2021
Obuasi4
Gramalote1
Corporate1
6

Impairment of cash generating units


The group reviews and tests the carrying value of its mining assets when events or changes in circumstances suggest that the carrying amount may not be recoverable.

During June 2018, due to market conditions and a strategic decision taken to change the processing strategy of Mine Waste Solutions (MWS), whereby MWS in future will focus solely on gold recovery, the Uranium plant of the MWS cash-generating unit was fully impaired as it is unlikely to be utilised or generate future economic benefits.

During June 2017, due to a change in mine plans to restructure the South African operations, Kopanang mine, TauTona mine including Savuka section and the West Gold Plant section of the Surface operations in South Africa were fully impaired as they were not expected to generate future economic benefits.

On 19 October 2017, AngloGold Ashanti announced the sale of various assets in the Vaal River Region including the Moab Khotsong Mine and related assets (Moab) to Harmony Gold Mining Company Limited for a cash consideration of US$300m. Moab was accordingly transferred to held for sale and written down to the fair value less cost to sell.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)

14.    Tangible assets (continued)

In a separate announcement on 19 October 2017, AngloGold Ashanti announced the sale of its Kopanang Mine, the West Gold Plant and related infrastructure (Kopanang) to Heaven-Sent SA Sunshine Investment Company Limited for a cash consideration of R100m. Kopanang was accordingly transferred to held for sale and written down to the fair value less cost to sell.

The sales of the above mentioned assets were concluded on 28 February 2018.


Cash generating unitsunit with marginalthe least headroom


Based on an analysis carried out by the group in 2018,2021, the carrying value and value in use of the most sensitive cash generating unit (CGU)CGU are:
Figures in millions - US DollarsCarrying valueValue in use
AngloGold Ashanti Mineração (1)
349 418 

Figures in millions - US DollarsCarrying value
Value in use
Mponeng(1)
533
547
Kibali(2)
1,439
1,484
 





(1) It is estimated that a decrease of the long-term real gold price of $1,239/$1,599/oz by 0.3%3%, would cause the receivablerecoverable amount of MponengAngloGold Ashanti Mineração to equal its carrying amount.amount using a real pre-tax weighted average cost of capital (WACC) discounted rate of 9.0% (2020: 11.0%). The sensitivity analysis has been provided on the basis that the key assumption changes without a change in the other assumptions. However, for a change in each of the assumptions used, it is impracticable to disclose the consequential effect of changes on the other variables used to measure the recoverable amount because these assumptions and others used in impairment testing are inextricably linked.


(2) Equity accounted investment, included in investments in associates and joint ventures in the statement


F - 43
Table of financial position.Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)








14 RIGHT OF USE ASSETS AND LEASE LIABILITIES
15    INTANGIBLE
The group leases various assets including buildings, plant and equipment and vehicles. The group’s lease obligations are secured by the lessors’ title to the leased assets for such leases.

RIGHT OF USE ASSETS
Figures in millions - US DollarsMine Infra-
structure		Land and
buildings		Total
Cost
Impact of adopting IFRS 16 - 1 January 2019119 9 128 
Additions
- stay-in-business capital32 — 32 
Transfers and other movements(1)
58 15 73 
Transfer to assets and liabilities held for sale— (1)(1)
Translation— 1 1 
Balance at 31 December 2019209 24 233 
Accumulated amortisation and impairments
Balance at 1 January 2019— — — 
Amortisation for the year40 2 42 
Transfers and other movements(1)
21 12 33 
Balance at 31 December 201961 14 75 
Net book value at 31 December 2019148 10 158 
Cost
Balance at 1 January 2020209 24 233 
Additions
- stay-in-business capital23 — 23 
Derecognition and other movements(2)
(13)1 (12)
Translation14 (1)13 
Balance at 31 December 2020233 24 257 
Accumulated amortisation and impairments
Balance at 1 January 202061 14 75 
Amortisation for the year45 2 47 
Derecognition and other movements(2)
(11)— (11)
Translation5 (1)4 
Balance at 31 December 2020100 15 115 
Net book value at 31 December 2020133 9 142 
Cost
Balance at 1 January 2021233 24 257 
Additions
- project capital— 1 1 
- stay-in-business capital95 6 101 
Derecognition and other movements(2)
(22)(15)(37)
Translation(9)— (9)
Balance at 31 December 2021297 16 313 
F - 44
Figures in millionsGoodwill
 
Software and
licences

 
Royalty
tax rate
concession
and other

 Total
US Dollars       
Cost       
Balance at 1 January 2016380
 118
 60
 558
Additions—
 5
 —
 5
Transfers and other movements(1)
—
 (4) —
 (4)
Translation(1) 6
 —
 5
Balance at 31 December 2016379

125

60

564
Accumulated amortisation and impairments       
Balance at 1 January 2016254
 93
 50
 397
Amortisation for the year  16
 4
 20
Transfers and other movements(1)
—
 (3) —
 (3)
Translation(1) 6
 —
 5
Balance at 31 December 2016253

112

54

419
Net book value at 31 December 2016126

13

6

145
Cost       
Balance at 1 January 2017379

125

60
 564
Additions—
 1
 —
 1
Transfer to non-current assets and liabilities held for sale—
 (17) —
 (17)
Transfers and other movements(1)
(263) (1) —
 (264)
Translation11
 4
 —
 15
Balance at 31 December 2017127

112

60

299
Accumulated amortisation and impairments       
Balance at 1 January 2017253
 112
 54
 419
Amortisation for the year  3
 3
 6
Impairment9
 —
 —
 9
Transfer to non-current assets and liabilities held for sale—
 (15) —
 (15)
Transfers and other movements(1)
(263) (1) —
 (264)
Translation1
 5
 —
 6
Balance at 31 December 2017—

104

57

161
Net book value at 31 December 2017127

8

3

138
Cost       
Balance at 1 January 2018127
 112
 60
 299
Additions—
 1
 —
 1
Disposals—
 (2) (1) (3)
Transfer to non-current assets and liabilities held for sale—
 —
 —
 —
Transfers and other movements(1)
—
 4
 —
 4
Translation(11) (7) —
 (18)
Balance at 31 December 2018116

108

59

283
Accumulated amortisation and impairments       
Balance at 1 January 2018—
 104
 57
 161
Amortisation for the year  3
 2
 5
Disposals—
 (2) (1) (3)
Transfers and other movements(1)
—
 4
 —
 4
Translation—
 (7) —
 (7)
Balance at 31 December 2018—

102

58

160
Net book value at 31 December 2018116

6

1

123
(1)
Transfers and other movements include amounts from asset reclassifications and amounts written off.

Table of Contents
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)


15    Intangible assets (continued)




Accumulated amortisation and impairments
Balance at 1 January 2021100 15 115 
Amortisation for the year61 2 63 
Derecognition and other movements(2)
(22)(15)(37)
Impairment— 1 1 
Translation(4)— (4)
Balance at 31 December 2021135 3 138 
Net book value at 31 December 2021162 13 175 
(1)    Relates to contracts previously classified as leases under IAS 17, which the group has reassessed upon initial transition as leases under IFRS 16 as of 1 January 2019.
(2)    Derecognition and other movements include amounts relating to the derecognition and write-off of assets.

LEASE EXPENSES
Figures in millions - US Dollars202120202019
Amounts recognised in the income statement
Amortisation expense on right of use assets (note 4)63 47 42 
Interest expense on lease liabilities (note 6)9 8 10 
Expenses on short term leases48 107 83 
Expenses on variable lease payments not included in the lease liabilities(1)
302 234 220 
Expenses on leases of low value assets(1)
33 24 2 
(1) Includes expenses at Obuasi that have been capitalised as part of the re-development project

Total cash outflow for leases during the period amounted to $72m (2020: $55m; 2019: $51m), consisting of repayments of liabilities of $63m (2020: $47m; 2019: $42m) and finance costs paid of $9m (2020: $8m;2019: $9m).


LEASE LIABILITIES
Figures in millions - US Dollars202120202019
Reconciliation of lease liabilities
A reconciliation of the lease liabilities included in the statement of financial position is set out in the following table:
Opening balance153 171 — 
Lease liabilities recognised103 23 160 
Repayment of lease liabilities(63)(47)(42)
Finance costs paid on lease liabilities(9)(8)(9)
Interest charged to the income statement9 8 10 
Reclassification of finance leases from borrowings— — 60 
Change in estimate— (1)(5)
Translation(8)7 (3)
Closing balance185 153 171 
Lease finance costs paid included in the statement of cash flows9 8 9 
Figures in millions - US Dollars202120202019
Maturity analysis of lease liabilities
Undiscounted cash flows
Less than and including 1 year69 43 52 
Between 1 and 5 years114 83 89 
Five years and more21 36 57 
Total204 162 198 
F - 45
Table of Contents
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)






14.    RIGHT OF USE ASSETS AND LEASE LIABILITIES (continued)
Figures in millions - US Dollars202120202019
Lease liabilities
Non-current (note 34)124 116 126 
Current (note 34)61 37 45 
Total185 153 171 


The group does not face a significant liquidity risk with regard to its lease liabilities. Lease liabilities are monitored within the group’s treasury function.
All lease contracts contain market review clauses in the event that the group exercises its option to renew.

Certain of the group’s contracts have a payment structure that is variable in nature and hence do not qualify for IFRS 16 lease accounting. These contracts consist of mostly mining and drilling services. The variable nature of these contracts is to allow equal sharing of pain and gain between the group and its contractors. The cash flows are not disclosed as their variability does not permit reliable forecasts. Short-term, low value and variable contracts continue to be recognised within cost of sales and corporate administration, marketing and related expenses, except for certain expenses at Obuasi which have been capitalised as part of the re-development project.

The weighted average incremental borrowing rate at the end of 31 December 2021 4.56% (2020: 5.38%; 2019: 4.72%).

F - 46
Table of Contents


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)



15    INTANGIBLE ASSETS
Figures in millionsGoodwillOtherTotal
US Dollars
Cost
Balance at 1 January 2019116 167 283 
Transfer to assets and liabilities held for sale— (26)(26)
Transfers and other movements(1)
— 3 3 
Balance at 31 December 2019116 144 260 
Accumulated amortisation and impairments
Balance at 1 January 2019— 160 160 
Amortisation for the year— 3 3 
Transfer to assets and liabilities held for sale— (26)(26)
Balance at 31 December 2019— 137 137 
Net book value at 31 December 2019116 7 123 
Cost
Balance at 1 January 2020116 144 260 
Additions— 1 1 
Transfers and other movements(1)
— (49)(49)
Translation10 — 10 
Balance at 31 December 2020126 96 222 
Accumulated amortisation and impairments
Balance at 1 January 2020— 137 137 
Amortisation for the year— 2 2 
Transfers and other movements(1)
— (49)(49)
Translation— 1 1 
Balance at 31 December 2020— 91 91 
Net book value at 31 December 2020126 5 131 
Cost
Balance at 1 January 2021126 96 222 
Additions— 1 1 
Transfers and other movements(1)
— (1)(1)
Translation(7)(1)(8)
Balance at 31 December 2021119 95 214 
Accumulated amortisation and impairments
Balance at 1 January 2021— 91 91 
Amortisation for the year— 3 3 
Transfers and other movements (1)
— (1)(1)
Translation— (1)(1)
Balance at 31 December 2021— 92 92 
Net book value at 31 December 2021119 3 122 
(1)Transfers and other movements include amounts from asset reclassifications and amounts written off.
Impairment calculation assumptions for goodwill
Based on an analysis carried out by the group in 2018,2021, the carrying value and value in use of cash generating units (CGUs)the most sensitive CGU with goodwill that were most sensitive is:
2021
US Dollars
Figures in millionsCarrying
Value		Value in
use
Sunrise Dam183 389 

F - 47
 2018
 US Dollars
Figures in millions
Carrying
Value
 
Value in
use
Serra Grande104
 259
Table of Contents

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)

15    INTANGIBLE ASSETS(continued)
As at 31 December 2018,2021, the recoverable amount of Serra GrandeSunrise Dam exceeded its carrying amount by $155m. The Serra Grande CGU$206m. Sunrise Dam had $8m$111m goodwill at that date.


It is estimated that a decrease of the long-term real gold price of $1,239/$1,599/oz by 15%10%, would cause the recoverable amount of this CGU to equal its carrying amount. The sensitivity analysis has been provided on the basis that the key assumption changes without a change in the other assumptions. However, for a change in each of the assumptions used, it is impracticable to disclose the consequential effect of changes on the other variables used to measure the recoverable amount because these assumptions and others used in impairment testing of goodwill are inextricably linked.


Therefore, it is possible that outcomes within the next financial year that are different from the assumptions used in the impairment testing process for goodwill could require a material adjustment to the carrying amounts in future periods.


Net book value of goodwill allocated to each of the CGUs:
US Dollars
Figures in millions202120202019
- Sunrise Dam111 118 108 
- Serra Grande8 8 8 
119 126 116 
Real pre-tax discount rates applied in impairment calculations on the CGU for which the carrying amount of goodwill is significant is as follows:
- Sunrise Dam (1)
5.5 %8.7 %10.8 %
 US Dollars
Figures in millions2018
 2017
 2016
- Sunrise Dam108
 119
 110
- First Uranium (Pty) Limited

 

 8
- Serra Grande8
 8
 8
 116
 127
 126
Real pre-tax discount rates applied in impairment calculations on CGUs for which the carrying amount of goodwill is significant are as follows:     
- Sunrise Dam(1)
8.3% 8.3% 8.8%


Goodwill has been allocated to its respective CGU'sCGUs where it is tested for impairment as part of the CGU . The group reviews and tests the carrying value of goodwill on an annual basis for impairment. The discount rates for 20182021 were determined on a basis consistent with the 20172020 discount rates.

(1)
The value in use of the CGU is $750m in 2018 (2017: $402m; 2016: $487m).


(1)The value in use of the CGU is $389m (2020: $538m; 2019: $363m).
F - 48
Table of Contents
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(continued)
16    Material partly-owned subsidiariesMATERIAL PARTLY-OWNED SUBSIDIARIES

NameNon-controlling interest holdingCountry of incorporation and operation
202120202019
Cerro Vanguardia S.A. (CVSA)7.5 %7.5 %7.5 %Argentina
Société AngloGold Ashanti de Guinée S.A. (Siguiri)15 %15 %15 %Republic of Guinea



NameNon-controlling interest holding Country of incorporation and operation
 2018
 2017
 2016
  
Cerro Vanguardia S.A. (CVSA)7.5% 7.5% 7.5% Argentina
Société AngloGold Ashanti de Guinée S.A. (Siguiri)15% 15% 15% Republic of Guinea

Financial information of subsidiaries that have material non-controlling interests are provided below:
US Dollars
Figures in millions202120202019
Profit (loss) allocated to material non-controlling interests
CVSA5 8 5 
Siguiri19 10 — 
Accumulated balances of material non-controlling interests
CVSA11 14 13 
Siguiri41 31 23 

 US Dollars
Figures in millions2018
 2017
 2016
Profit allocated to material non-controlling interests     
CVSA9
 7
 6
Siguiri8
 13
 11
Accumulated balances of material non-controlling interests     
CVSA14
 13
 15
Siguiri32
 32
 28

Summarised financial information of subsidiaries is as follows. The information is based on amounts including inter-company balances.
US Dollars
Figures in millionsCVSASiguiri
Statement of profit or loss for 2021
Revenue371 546 
Profit (loss) for the year75 124 
Total comprehensive income (loss) for the year, net of tax75 124 
Attributable to non-controlling interests5 19 
Dividends paid to non-controlling interests(8)(8)
Statement of profit or loss for 2020
Revenue440 453 
Profit (loss) for the year84 68 
Total comprehensive income (loss) for the year, net of tax84 68 
Attributable to non-controlling interests8 10 
Dividends paid to non-controlling interests(6)(3)
Statement of profit or loss for 2019
Revenue390 349 
Profit (loss) for the year68 1 
Total comprehensive income (loss) for the year, net of tax68 1 
Attributable to non-controlling interests5 — 
Dividends paid to non-controlling interests(7)(9)

F - 49
 US Dollars
Figures in millionsCVSA
 Siguiri
    
Statement of profit or loss for 2018   
Revenue498
 365
Profit (loss) for the year119
 56
Total comprehensive income (loss) for the year, net of tax119
 56
Attributable to non-controlling interests9
 8
Dividends paid to non-controlling interests(7) (8)
    
Statement of profit or loss for 2017   
Revenue517
 489
Profit (loss) for the year96
 88
Total comprehensive income (loss) for the year, net of tax96
 88
Attributable to non-controlling interests7
 13
Dividends paid to non-controlling interests(9) (10)
    
Statement of profit or loss for 2016   
Revenue472
 367
Profit (loss) for the year81
 74
Total comprehensive income (loss) for the year, net of tax81
 74
Attributable to non-controlling interests6
 11
Dividends paid to non-controlling interests(6) (9)
Table of Contents








NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)


16Material partly-owned subsidiariesMATERIAL PARTLY-OWNED SUBSIDIARIES (continued)



Summarised financial information of subsidiaries is as follows. The information is based on amounts before inter-company eliminations.
US Dollars
Figures in millionsCVSASiguiri
Statement of financial position as at 31 December 2021
Non-current assets240 229 
Current assets (1)
252 234 
Non-current liabilities(132)(68)
Current liabilities(218)(122)
Total equity142 273 
Statement of financial position as at 31 December 2020
Non-current assets202 233 
Current assets254 224 
Non-current liabilities(123)(138)
Current liabilities(150)(117)
Total equity183 202 
Statement of financial position as at 31 December 2019
Non-current assets177 245 
Current assets202 170 
Non-current liabilities(120)(141)
Current liabilities(82)(121)
Total equity177 153 
Statement of cash flows for the year ended 31 December 2021
Cash inflow (outflow) from operating activities165 197 
Cash inflow (outflow) from investing activities(23)(38)
Cash inflow (outflow) from financing activities(112)(143)
Net increase (decrease) in cash and cash equivalents30 16 
Statement of cash flows for the year ended 31 December 2020
Cash inflow (outflow) from operating activities169 63 
Cash inflow (outflow) from investing activities(16)(30)
Cash inflow (outflow) from financing activities(59)(11)
Net increase (decrease) in cash and cash equivalents94 22 
Statement of cash flows for the year ended 31 December 2019
Cash inflow (outflow) from operating activities107 46 
Cash inflow (outflow) from investing activities(30)(22)
Cash inflow (outflow) from financing activities(47)(30)
Net increase (decrease) in cash and cash equivalents30 (6)
(1) CVSA had a cash balance equivalent to $139m (2020: $137m), following the payment to AngloGold Ashanti of $19m (2020: nil) offshore dividend during the fourth quarter of 2021. The remaining declared attributable dividend of $131m (2020: $50m) is available for payment to AngloGold Ashanti's offshore and onshore investment holding companies. Applications have been made to the Argentinean Central Bank to approve the payment of $114m (2020: $11m) of the offshore declared dividends. While the approval is pending, the cash remains fully available for CVSA’s operational requirements.

F - 50
 US Dollars
Figures in millionsCVSA Siguiri
    
Statement of financial position as at 31 December 2018   
Non-current assets176
 257
Current assets215
 157
Non-current liabilities(112) (64)
Current liabilities(78) (137)
Total equity201

213
    
Statement of financial position as at 31 December 2017   
Non-current assets193
 206
Current assets171
 189
Non-current liabilities(103) (101)
Current liabilities(84) (82)
Total equity177
 212
    
Statement of financial position as at 31 December 2016   
Non-current assets241
 174
Current assets177
 178
Non-current liabilities(108) (79)
Current liabilities(107) (85)
Total equity203
 188
    
Statement of cash flows for the year ended 31 December 2018   
Cash inflow (outflow) from operating activities179
 84
Cash inflow (outflow) from investing activities(36) (96)
Cash inflow (outflow) from financing activities(140) (6)
Net increase (decrease) in cash and cash equivalents3
 (18)
    
Statement of cash flows for the year ended 31 December 2017   
Cash inflow (outflow) from operating activities189
 152
Cash inflow (outflow) from investing activities(55) (82)
Cash inflow (outflow) from financing activities(118) (58)
Net increase (decrease) in cash and cash equivalents16
 12
    
Statement of cash flows for the year ended 31 December 2016   
Cash inflow (outflow) from operating activities110
 120
Cash inflow (outflow) from investing activities(57) (59)
Cash inflow (outflow) from financing activities(97) (53)
Net increase (decrease) in cash and cash equivalents(44) 8
Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(continued)




17    INVESTMENTS IN ASSOCIATES AND JOINT VENTURES
US DollarsUS Dollars
Figures in millions2018
 2017
 2016
Figures in millions202120202019
Carrying value     Carrying value
Investments in associates36
 36
 20
Investments in associates43 47 40 
Investments in joint ventures1,492
 1,471
 1,428
Investments in joint ventures1,604 1,604 1,541 
1,528

1,507

1,448
Total comprehensive profit (loss) for the year, net of taxTotal comprehensive profit (loss) for the year, net of tax1,647 1,651 1,581 
Detailed disclosures are provided for the years in which investments in associates and joint ventures are considered to be material.

Summarised financial information of immaterial associates is as follows:
US Dollars
Figures in millions202120202019
Aggregate statement of profit or loss for associates (attributable)
Revenue36 29 20 
Operating (expenses) income (1)
(16)(6)3 
Taxation(2)— — 
Profit (loss) for the year18 23 23 
Total comprehensive profit (loss) for the year, net of tax18 23 23 
(1) Includes share of associate profit.
 US Dollars
Figures in millions2018
 2017
 2016
Aggregate statement of profit or loss for associates (attributable)     
Revenue19
 21
 30
Operating costs and expenses(4) (11) (38)
Taxation(1) 2
 (1)
Profit (loss) for the year14

12

(9)
Total comprehensive profit (loss) for the year, net of tax14

12

(9)
Investments in material joint ventures comprise:
NameEffective %DescriptionCountry of incorporation and operation
202120202019
Kibali Goldmines S.A.(1)
45.0 45.0 45.0 Exploration and mine
development		The Democratic Republic of the Congo
(1)AngloGold Ashanti Limited has a 50% interest in Kibali (Jersey) Limited (Kibali) which holds our effective 45% interest in Kibali Goldmines S.A.
US Dollars
Figures in millions202120202019
Carrying value of joint ventures
Kibali1,604 1,604 1,506 
Immaterial joint ventures— — 35 
1,604 1,604 1,541 
Reversal (impairment) of investments in joint ventures
Sadiola (note 7) (1)
— — 6 
The cumulative unrecognised share of losses of the joint ventures:
Morila (2)
— — 8 
Yatela2 1 2 
(1) Sold effective 30 December 2020.
(2) Sold effective 10 November 2020.
F - 51
NameEffective % Description Country of incorporation and operation
 2018 2017 2016    
Kibali Goldmines S.A.(1)
45 45 45 
Exploration and mine
development
 The Democratic Republic of the Congo
(1)
AngloGold Ashanti Limited has a 50% interest in Kibali (Jersey) Limited (Kibali) which holds our effective 45% interest in Kibali Goldmines S.A.
Table of Contents
 US Dollars
Figures in millions2018
 2017
 2016
      
Carrying value of joint ventures     
Kibali1,439
 1,423
 1,400
Immaterial joint ventures53
 48
 28
 1,492
 1,471
 1,428
Reversal (impairment) of investments in joint ventures     
Sadiola (note 8)14
 2
 11
 US Dollars
Figures in millions2018
 2017
 2016
      
The cumulative unrecognised share of losses of the joint ventures:     
Morila8
 7
 9
Yatela3
 2
 3

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)

17    Investments in associates and joint venturesINVESTMENTS IN ASSOCIATES AND JOINT VENTURES (continued)


Summarised financial information of the Kibali joint venturesventure is as follows (not attributable)(1):
US Dollars
Figures in millions202120202019
Statement of profit or loss
Revenue1,470 1,443 1,123 
Other operating costs and expenses(551)(541)(479)
Amortisation of tangible and intangible assets(244)(241)(282)
Finance costs and unwinding of obligations(6)(6)(4)
Interest received6 7 4 
Taxation(181)(157)(62)
Profit for the year494 505 300 
Total comprehensive income for the year, net of tax494 505 300 
Dividends received from joint venture (attributable)231 140 75 
US Dollars
Figures in millions202120202019
Statement of financial position
Non-current assets2,361 2,459 2,522 
Current assets162 120 183 
Cash and cash equivalents (2)
1,115 944 453 
Total assets3,638 3,523 3,158 
Non-current financial liabilities44 50 45 
Other non-current liabilities226 118 26 
Current financial liabilities14 15 11 
Other current liabilities107 106 66 
Total liabilities391 289 148 
Net assets3,247 3,234 3,010 
Group’s share of net assets1,624 1,617 1,505 
Other (3)
(20)(13)1 
Carrying amount of interest in joint venture1,604 1,604 1,506 
(1)    Subsequent event - At the end of January and in early February 2022, Kibali Goldmines S.A., which owns and operates the Kibali gold mine in the Democratic Republic of the Congo, received 15 claims from the Direction Générale des Douanes et Accises (Customs Authority) concerning customs duties. The Customs Authority claims that incorrect import duty tariffs have been applied to the importation of certain consumables and equipment for the Kibali gold mine. In addition, they claim that the exemption available to Kibali Goldmines SA, which was granted in relation to the original mining lease, no longer applies. Finally, the Customs Authority claims that a service fee paid on the exportation of gold was paid to the wrong government body. The claims, including substantial penalties and interest, total $339m (AngloGold Ashanti attributable share: $153m). Kibali Goldmines S.A. has examined the Customs Authority claims and concluded that they are without merit, as they seek to challenge established customs practices which have been accepted by the Customs Authority for many years and, where relevant, are in line with ministerial instruction letters. Kibali Goldmines S.A. will vigorously defend its position that the Customs Authority claims are unfounded.
(2)    Kibali cash and equivalents are subject to various steps before they can be distributed to the joint venture shareholders and are held across 4 banks in the Democratic Republic of Congo, including 2 domestic banks.
(3)    Includes amounts relating to additional costs and contributions at acquisition as well as minority interests.


F - 52
 US Dollars
 Kibali
Figures in millions2018
 2017
 2016
      
Statement of profit or loss     
Revenue1,098
 755
 709
Other operating costs and expenses(539) (530) (471)
Amortisation of tangible and intangible assets(330) (264) (211)
Finance costs and unwinding of obligations(4) (5) (5)
Interest income3
 4
 5
Taxation(16) 54
 23
Profit for the year212
 14
 50
Total comprehensive income for the year, net of tax212
 14
 50
Dividends received from joint venture (attributable)89
 —
 30
Table of Contents

 US Dollars
 Kibali
Figures in millions2018
 2017
 2016
      
Statement of financial position     
Non-current assets2,659
 2,834
 2,805
Current assets205
 166
 179
Cash and cash equivalents124
 3
 19
Total assets2,988
 3,003
 3,003
      
Non-current financial liabilities29
 41
 47
Other non-current liabilities24
 23
 32
Current financial liabilities11
 7
 10
Other current liabilities64
 107
 133
Total liabilities128

178

222
      
Net assets2,860

2,825

2,781
Group’s share of net assets1,430
 1,413
 1,391
Other9
 10
 9
Carrying amount of interest in joint venture1,439

1,423

1,400
 US Dollars
Figures in millions2018
 2017
 2016
      
Aggregate statement of profit (loss) for immaterial joint ventures (attributable)     
Revenue112
 113
 114
Other operating costs and expenses(92) (94) (95)
Amortisation of tangible and intangible assets(15) (16) (18)
Taxation(2) (2) (3)
Profit (loss) for the year3
 1
 (2)
Total comprehensive income (loss) for the year, net of tax3
 1
 (2)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)





18    OTHER INVESTMENTS
US Dollars
Figures in millions202120202019
Listed investments (1)
Non-current investments
Equity investments at fair value though OCI (FVTOCI)
Balance at beginning of year186 72 63 
Additions3 9 9 
Fair value adjustments (2)
(73)98 — 
Transfer from unlisted non-current investments— 7 — 
Balance at end of year116 186 72 
The non-current equity investments consist of ordinary shares and collective investment schemes and primarily comprise:
Corvus Gold Inc.80 59 41 
Pure Gold Mining35 126 31 
Other1 1 — 
116 186 72 
Listed investments (continued)
Current investments
Listed investments - FVTOCI— — 10 
Book value of listed investments116 186 82 
Unlisted investments
Non-current investments
Balance at beginning of year2 4 47 
Additions— — 45 
Maturities— — (44)
Transfer to non-current assets and liabilities held for sale— — (48)
Transfer to listed non-current investments— (7)— 
Fair value adjustment - FVTOCI— — 2 
Fair value adjustments - FVTPL(1)5 — 
Translation— — 2 
Balance at end of year1 2 4 
The unlisted investments include:
Book value of unlisted investments1 2 4 
Non-current other investments117 188 76 
Total book value of other investments117 188 86 
 US Dollars
Figures in millions2018
 2017
 2016
      
Non-current investments     
      
Listed investments (1)
     
      
Equity investments at fair value through profit and loss (FVTPL)     
Balance at beginning of year26
    
Additions2
    
Disposals(2)    
Fair value adjustments(3)    
Translation(4)    
Balance at end of year19
    
      
Equity investments at fair value though OCI (FVTOCI)     
Balance at beginning of year47
    
Additions13
    
Disposals(7)    
Fair value adjustments10
    
Balance at end of year63
    
      
The group reclassified its listed investments as FVTPL and FVTOCI on adoption of IFRS 9 on 1 January 2018. The fair value of available-for-sale investments as at 31 December 2017 amounted to $73m (2016: $46m).     
      
The non-current equity investments consist of ordinary shares and collective investment schemes and primarily comprise:     
International Tower Hill Mines Limited (ITH)—
 7
 9
Corvus Gold Corporation43
 25
 7
Various listed investments held by Environmental Rehabilitation Trust Fund16
 22
 18
Pure Gold Mining18
 11
 8
Other5
 8
 4
 82

73

46

(1)    The group’s listed available-for-sale equity investments are susceptible to market price risk arising from uncertainties about the future values of the investments.
At the reporting date, the majority of equity investments were listed on the Toronto Stock Exchange and the JSE.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)

18    Other investments (continued)

 US Dollars
Figures in millions2018
 2017
 2016
      
Non-current investments (continued)     
      
Listed investments (continued)     
      
Investments held to maturity  4
 6
      
Investments at amortised cost12
    
      
The amortised cost investment consists of government bonds held by the Environmental Rehabilitation Trust Fund administered by Ashburton Investments.     
      
Current investments     
Listed investments - Available for Sale

 7
 5
      
Listed investments - FVTOCI6
    
      
Book value of listed investments100
 84
 57
      
Non-current assets     
Unlisted investments     
      
Balance at beginning of year54
 73
 57
Additions48
 81
 66
Maturities(45) (73) (58)
Transfer to non-current assets and liabilities held for sale—
 (32) —
Other(2) —
 1
Translation(8) 5
 7
Balance at end of year47
 54
 73
The unlisted investments include:     
Negotiable Certificates of Deposit - Environmental Rehabilitation Trust Fund administered by Ashburton Investments46
 53
 69
Other1
 1
 4
 47
 54
 73
      
Book value of unlisted investments47
 54
 73
      
Total value of non-current investments141
 131
 125
Total book value of other investments147

138

130
      

(1)The group’s listed equity investments are susceptible to market price risk arising from uncertainties about the future values of the investments.

At the reporting date, the majority ofFVTOCI equity investments were listed on the Toronto Stock ExchangeExchange.

(2)    Includes net fair value gain of $21m (2020: $18m) for Corvus Gold Inc. and the JSE.a fair value loss of $94m (2020: $81m net gain) for Pure Gold Mining.

F - 53

Table of Contents


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)



19    INVENTORIES
US Dollars
Figures in millions202120202019
Non-current
Raw materials - ore stockpiles27 69 93 
Current
Raw materials
- ore stockpiles217 262 229 
- heap-leach inventory6 5 4 
Work in progress
- metals in process49 46 51 
Finished goods
- gold doré/bullion29 42 42 
- by-products1 — 1 
Total metal inventories302 355 327 
Mine operating supplies401 378 305 
703 733 632 
Total inventories(1)
730 802 725 

(1)The amount of the write-down of ore stockpiles, heap-leach inventory, metals in process, finished goods and mine operating supplies to net realisable value, and recognised as an expense in cost of sales is $13m (2020: $7m; 2019: $4m).
 US Dollars
Figures in millions2018
 2017
 2016
Non-current     
Raw materials - ore stockpiles106
 100
 84
 

 

 

Current     
Raw materials     
- ore stockpiles251
 261
 233
- heap-leach inventory3
 5
 3
Work in progress     
- metals in process44
 58
 77
Finished goods     
- gold doré/bullion57
 59
 60
- by-products—
 5
 4
Total metal inventories355

388

377
Mine operating supplies297
 295
 295
 652

683

672
Total inventories(1)
758

783

756

(1)
The amount of the write-down of ore stockpiles, metals in process, by-products and mine operating supplies to net realisable value, and recognised as an expense during the year in special items or cost of sales is $19m (2017: $17m; 2016: $30m).
20    TRADE, OTHER RECEIVABLES AND OTHER ASSETS
US Dollars
Figures in millions202120202019
Non-current
Deferred compensation asset25 28 — 
Prepayments14 12 15 
Recoverable tax, rebates, levies and duties198 195 107 
237 235 122 
Current
Trade and loan receivables50 56 47 
Prepayments41 56 61 
Recoverable tax, rebates, levies and duties (1)
155 100 130 
Other receivables14 17 12 
260 229 250 
Total trade, other receivables and other assets497 464 372 
There is a concentration of risk in respect of amounts due from Revenue Authorities for recoverable tax, rebates, levies and duties from subsidiaries in the Africa Region segment. These values are summarised as follows:
Recoverable value added tax212 215 167 
Recoverable fuel duties— — 43 
Appeal deposits43 34 10 

(1) Includes taxation asset, refer note 29.




F - 54
Table of Contents

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
 US Dollars
Figures in millions2018
 2017
 2016
Non-current     
Prepayments18
 17
 9
Recoverable tax, rebates, levies and duties84
 50
 25
 102
 67
 34
      
Current     
Trade and loan receivables33
 27
 35
Prepayments42
 62
 85
Recoverable tax, rebates, levies and duties116
 127
 124
Other receivables18
 6
 11
 209
 222
 255
      
Total trade, other receivables and other assets311

289

289
      
Current trade and loan receivables are generally on terms less than 90 days.     
      
At 31 December 2018 trade receivables of $2m have been pledged as security.     
      
There is a concentration of risk in respect of amounts due from Revenue Authorities for recoverable tax, rebates, levies and duties from subsidiaries in the Continental Africa segment. These values are summarised as follows:     
      
Recoverable value added tax126
 106
 61
Recoverable fuel duties41
 38
 39
Appeal deposits10
 10
 8
20    TRADE, OTHER RECEIVABLES AND OTHER ASSETS (continued)


Geita Gold Mine

Geita Gold Mine (GGM) in Tanzania net indirect tax receivables balance increased by $17m$3m to $84m (2017: $67m)$142m (2020: $139m; 2019: $119m).


No refunds were received in cash in the current year, however claimsClaims relating to periods prefrom July 20172020 totalling $33m have been$54m were offset against provisional corporate tax payments in 20182021. No refunds were received in accordance with legislation. These amountscash or offset against provisional corporate tax payments were set offmade in 2020. Claims relating to periods pre-July 2017 totalling $9m were offset against provisional corporate tax payments in 2019. Amounts offset against VAT claims that have been certified by an external advisor and verified by the Tanzania Revenue Authority (“TRA”)(TRA). We requestedThe remaining disputed balance relating to the period July 2017 to June 2020 was objected to as GGM believe that the TRA formally acknowledge the set off. The TRA has not responded to our request. We believe that due process has been correctly followed in respect of the set off. Given that GGM believes

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)



the $33m claims have been correctly set offlodged pursuant to the Tanzanian law, no provision has been established for the amounts that have been set off.law.


An amendment, effective 20 July 2017, to Tanzania's mining legislation included an amendment to the Value Added Tax Act, 2014 (No. 5) (“2015(2015 VAT Act”)Act) to the effect that no input tax credit can be claimed for the exportation of “raw minerals”. The 2015 VATWritten Laws (Miscellaneous Amendments) (No. 2) Act, does not expressly include2019, issued during 2019, provides a definition of “raw minerals”, the term is further not defined in the Mining Act of 2010.for "raw minerals". However, GGM has received notices from the TRA that they are not eligible for VAT relief from July 2017 onwards on the basis that all production constitutes “raw minerals” for this purpose.


The basis for dispute of the disqualifications is on the interpretation of the legislation. We have disputed this interpretationManagement's view is the definition of "raw minerals" provided in the legislation as a matter of Tanzanian law.Written Laws (Miscellaneous Amendments) (No. 2) Act, 2019 excludes gold doré. Gold bearing ore is mined from the open pit and underground mining operations, where it is further crushed and milled to maximise the gold recovery process, producing gold doré exceeding 80% purity as well as beneficiated products (concentrate). On this basis the mined doré and concentrate do not constitute “raw minerals” and accordingly the VAT claims are valid. WeManagement have obtained legal opinionopinions that supports oursupport management's view that doré does not constitute a “raw mineral”.


The Finance Act 2020 became effective on 1 July 2020. The Finance Act amended the VAT Act by deleting the disqualification of VAT refunds due to the exportation of “raw minerals”. The deletion is intended to ensure the recovery of VAT refunds from July 2020, although the amendment cannot be applied retrospectively, the change in the VAT Act, together with the Written Laws (Miscellaneous Amendments) (No.2) Act 2019, confirms that doré bars are not “raw minerals” and that VAT refunds from July 2017 onwards are due to GGM. On 30 January 2021, management received a proposal from the TRA to settle VAT objections filed between 2017 and 2020, confirming the TRA's position to disqualify all VAT refunds requested by GGM for the period from July 2017 to June 2020. Management is not in agreement with the proposal and are pursuing legal remedies provided to taxpayers by Tanzanian law.

The total VAT claims submitted sincefrom July 2017 to June 2020 amount to $82.7m (of the total, $56.4m$164m and claims of claims$27m were submitted in 2018).between July 2020 and December 2020. All disqualifications received from the TRA have been objected to by GGM in accordance with the provisions and timeframestime frames set out in the Tax Administration Act, 2015 (No.10). Claims of $50m were submitted in 2021 taking the total claims to $187m (net of $54m offsets in 2021). The net indirect tax receivable at 31 December 2021 of $142m, reflects the discounting effects applied to the timing of when GGM expects to offset its indirect tax claims against future income taxes of GGM.



Cerro Vanguardia (CVSA)
On 4 September 2018, a decree was published by the Argentinian Government, which reintroduced export duties for products exported from Argentina. The export duty rate was 12% on the freight on board (FOB) value of goods exported, including gold, paid in country. The duty was limited so as not to exceed ARS $4 for each US dollar exported. On 14 December 2019, the Government of Argentina announced that the cap of ARS $4 for each US dollar exported, would be replaced by a flat rate of 12% for 2020. On 2 October 2020, the Government of Argentina extended the export duties until 31 December 2021, at a rate of 8% for gold bullion. On 31 December 2021, the Government of Argentina extended the export duties until 31 December 2023, at a rate of 8% for gold bullion. In terms of the Stability Agreement between CVSA and the Government of Argentina, CVSA has a right of refund or offset of these amounts paid as established by its Stability Agreement, which provides for a 30% taxation cap on annual taxes and duties paid by CVSA. Export duty refunds for the years 2018 to 2021 are outstanding as at 31 December 2021 and their fair value has been estimated using on a probability weighted scenario model considering various recovery time frames, estimated Argentina Peso to USD exchange rates and discounting using a country risk adjusted rate. As a result of the taxation cap, net export duty receivables amount to $19m (2020: $23m; 2019 $25m), and reflects the discounting effects applied to when CVSA expects refund of these receivables.

21    CASH RESTRICTED FOR USE
US Dollars
Figures in millions202120202019
Non-current
Cash restricted for environmental and rehabilitation obligations32 31 31 
Current
Cash restricted by prudential solvency requirements18 24 27 
Cash balances held by - joint operations8 18 6 
26 42 33 
Total cash restricted for use (note 33 and 34)58 73 64 

F - 55
 US Dollars
Figures in millions2018
 2017
 2016
      
Non-current35
 37
 36
 

 

 

Current     
Cash restricted by prudential solvency requirements and other24
 18
 16
Cash balances held by the Tropicana - joint venture7
 10
 3
 31
 28
 19
Total cash restricted for use (note 33 and 34)66
 65
 55
Table of Contents

22    CASH AND CASH EQUIVALENTS
 US Dollars
Figures in millions2018
 2017
 2016
      
Cash and deposits on call312
 170
 167
Money market instruments17
 35
 48
Total cash and cash equivalents (note 33 and note 34)329
 205
 215

23    SHARE CAPITAL AND PREMIUM
 US Dollars
Figures in millions2018
 2017
 2016
      
Share capital     
Authorised     
600,000,000 ordinary shares of 25 SA cents each23
 23
 23
2,000,000 A redeemable preference shares of 50 SA cents each—
 —
 —
5,000,000 B redeemable preference shares of 1 SA cent each—
 —
 —
30,000,000 C redeemable preference shares of no par value—
 —
 —
 23
 23
 23
Issued and fully paid     
412,769,980 (2017: 410,054,615; 2016: 408,223,760) ordinary shares of 25 SA cents each16
 16
 16
2,000,000 A redeemable preference shares of 50 SA cents each—
 —
 —
778,896 B redeemable preference shares of 1 SA cent each—
 —
 —
 16
 16
 16
Treasury shares held within the group:     
2,778,896 A and B redeemable preference shares—
 —
 —
 16
 16
 16
Share premium     
Balance at beginning of year7,171
 7,145
 7,103
Ordinary shares issued37
 26
 42
 7,208
 7,171
 7,145
Less: held within the group     
Redeemable preference shares(53) (53) (53)
Balance at end of year7,155
 7,118
 7,092
Share capital and premium7,171
 7,134
 7,108

The rights and restrictions applicable to the A, B and C redeemable preference shares were unchanged during 2018. The group has commenced with a process to cancel all redeemable preference shares.


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

24    BORROWINGS
 US Dollars
Figures in millions2018
 2017
 2016
      
Non-current     
      
Unsecured     
Debt carried at amortised cost     
Rated bonds - issued July 2012761
 759
 758
Semi-annual coupons are paid at 5.125% per annum. The bonds were issued on 30 July 2012, are repayable on 1 August 2022 and are US dollar-based.     
Rated bonds - issued April 20101,002
 1,001
 1,000
Semi-annual coupons are paid at 5.375% per annum on $700m 10-year bonds and at 6.5% per annum on $300m 30-year bonds. The $700m bonds are repayable in April 2020 and the $300m bonds are repayable in April 2040. The bonds are US dollar-based.     
Syndicated revolving credit facility ($1bn)—
 32
 45
The facility was issued on 17 July 2014 and cancelled during October 2018. Replaced with a new $1.4bn multi-currency facility. The new facility is undrawn.     
Syndicated revolving credit facility (A$500m)—
 163
 168
The loan was cancelled in October 2018 and replaced by a $1.4bn multi-currency facility which is capped at A$500m. The new facility is undrawn.     
Syndicated loan facility (R1.5bn)—
 —
 88
The facility was issued on 3 December 2013 and was settled on 12 December 2017.     
Syndicated revolving credit facility (R2.5bn)—
 56
 —
Quarterly interest paid at JIBAR plus 1.8% per annum. The facility was issued on 12 December 2017 and is available until 12 December 2021, with the option on application to extend for another year. The loan is SA rand-based.     
Syndicated loan facility (R1.4bn)28
 81
 —
Quarterly interest paid at JIBAR plus 1.65% per annum. The facility was issued on 7 July 2015 and is available until 7 July 2020. The loan is SA rand-based.     
Syndicated loan facility (R1bn)35
 81
 —
Quarterly interest paid at JIBAR plus 1.3% per annum. The facility was issued on 3 November 2017 and is available until 3 November 2021, with the option on application to extend for another year. The loan is SA rand-based.     
Revolving Credit Facilities ($100m)(1)(2)
103
 16
 41
Various loans with interest rates ranging from 6.2% to 8% above LIBOR. The facilities were issued on 23 August 2016 and are available until 23 August 2019 and are US dollar-based.     
Geita revolving credit facility ($115m)(1)
60
 —
 —
Multi-currency RCF consisting of Tanzanian shilling component which is capped at the equivalent of US$45m. This component bears interest at 12.5%. The remaining USD component of the facility bears interest at LIBOR plus 6.7%. The facility matures on 6 April 2021.     
Other—
 1
 1
Interest charged at various rates from 2.5% plus delta exchange rate on individual instalments per annum to 4.5% per annum. Repayments terminate in June 2023. All loans are Brazilian real-based.     
 The loans are subject to debt covenant arrangements for which no default event occurred.     
      

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)

24    Borrowings (continued)

22    CASH AND CASH EQUIVALENTS
US Dollars
Figures in millions202120202019
Cash and deposits on call712 1,081 417 
Money market instruments442 249 39 
Total cash and cash equivalents (note 33 and note 34)1,154 1,330 456 


23    SHARE CAPITAL AND PREMIUM
US Dollars
Figures in millions202120202019
Share capital
Authorised
600,000,000 ordinary shares of 25 SA cents each23 23 23 
2,000,000 A redeemable preference shares of 50 SA cents each— — — 
5,000,000 B redeemable preference shares of 1 SA cent each— — — 
30,000,000 C redeemable preference shares of no par value— — — 
23 23 23 
Issued and fully paid
417,501,452 (2020: 416,890,087; 2019: 415,301,215) ordinary shares of 25 SA cents each17 17 17 
nil (2020 and 2019: 2,000,000) A redeemable preference shares of 50 SA cents each(1)
0— — 
nil (2020 and 2019: 778,896) B redeemable preference shares of 1 SA cent each(1)
0— — 
17 17 17 
Treasury shares held within the group:
nil (2020: 2,778,896; 2019: 2,778,896) A and B redeemable preference shares0— — 
17 17 17 
Share premium
Balance at beginning of year7,250 7,235 7,208 
Ordinary shares issued - share premium9 15 27 
Preference shares redeemed(1)
(53)00
7,206 7,250 7,235 
Less: held within the group
Redeemable preference shares(1)
0(53)(53)
Balance at end of year7,206 7,197 7,182 
Share capital and premium7,223 7,214 7,199 

(1)     During December 2021 the A and B redeemable preference shares were redeemed and the preference share certificates cancelled.

F - 56
 US Dollars
Figures in millions2018
 2017
 2016
Non-current (continued)     
Secured     
Finance leases     
Turbine Square Two (Pty) Limited9

15

15
The lease is capitalised at an implied interest rate of 9.8% per annum. Lease payments are due in monthly instalments terminating in March 2022 and are SA rand-based. The building financed is used as security for these loans.     
Australian Gas Pipeline48
 58
 57
The contract with the supplier of gas contains embedded leases which have been determined to bear interest at an average of 6.75% per annum. The embedded leases commenced in November and December 2015 and are for a 10 and 12 year duration, respectively. The leases are repayable in monthly instalments and are Australian dollar-based. The equipment related to the embedded leases is used as security for these loans.     
Other4
 5
 5
Various loans with interest rates ranging from 2.5% to 14.7% per annum. These loans are repayable from 2016 to 2041. Some of these loans are secured by the financed assets.     
Total borrowings (note 34)2,050

2,268

2,178
Current portion of borrowings(139) (38) (34)
Total non-current borrowings1,911

2,230

2,144
      
Current     
Current portion of non-current borrowings included above139
 38
 34
      
Amounts falling due     
Within one year(1)(2)
139
 38
 34
Between one and two years734
 219
 170
Between two and five years860
 1,687
 902
After five years317
 324
 1,072
(note 34)2,050

2,268

2,178
Table of Contents


(1) On 29 January 2019 $35m of this facility was combined with the Geita RCF $115m and will be transferred to non-current borrowings during the next reporting period as the new facility is due on 6 April 2021.
(2) On 27 February 2019 the remaining portion of the $65m was renewed for a further three years, maturing 27 February 2022.


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)

24    Borrowings (continued)

24    BORROWINGS
US Dollars
Figures in millions202120202019
Non-current
Unsecured
Debt carried at amortised cost
Rated bonds - issued October 2021744— — 
Semi-annual coupons are paid at 3.375% per annum on the $750m 7-year bonds. The bonds were issued on 22 October 2021, are repayable on 1 November 2028 and are US dollar-based.
Rated bonds - issued October 2020693 692 — 
Semi-annual coupons are paid at 3.75% per annum on $700m 10-year bonds. The bonds were issued on 1 October 2020, are repayable on 1 October 2030 and are US dollar-based.
Rated bonds - issued April 2010296 295 1,003 
Semi-annual coupons are paid at 6.5% per annum on $300m 30-year bonds. The $300m bonds are repayable in April 2040. The bonds are US dollar-based.
Rated bonds - issued July 2012— 764 762 
Semi-annual coupons were paid at 5.125% per annum on the $750m 10-year bonds. The bonds were issued on 30 July 2012 and were repaid during October 2021 and November 2021. The bonds were US dollar-based.
Multi-currency syndicated revolving credit facility ($1.4bn multi-currency RCF)31 — 15 
The Facility consists of a US dollar based facility with interest charged at a margin of 1.45% above LIBOR and an Australian dollar based facility capped at $500m with a margin of 1.45% above BBSY. The applicable margin is subject to a ratings grid. The facility was issued on 23 October 2018 and is available until 23 October 2023.
Syndicated loan facility (R1bn)0072 
During 2020 the facility was cancelled.
Siguiri revolving credit facilities ($65m)35 67 67 
Interest paid at 8.5% above LIBOR. The facility was issued on 23 August 2016, and is available until 3 May 2022 and is US dollar-based.
Geita revolving credit facility ($150m)0113 114 
Multi-currency RCF consisting of a Tanzanian shilling component which was capped at the equivalent of US$45m. Interest on this component was paid at 12.5%. Interest on the remaining USD component was paid at LIBOR plus 6.7%. The facility was cancelled during December 2021.
Geita revolving credit facility ($150m) - 2021110 00
A multi-currency RCF was entered into during December 2021, consisting of a Tanzanian shilling component which is capped at the equivalent of US$87m. This component bears interest at 12.5%. The remaining USD component of the facility bears interest at LIBOR plus 6.7%. The facility matures either in August 2024 or December 2024 depending on the fulfilment of certain conditions in the facility agreement.
Total borrowings (note 33)1,909 1,931 2,033 
Current portion of borrowings (note 34)(51)(142)(734)
Total non-current borrowings (note 34)1,858 1,789 1,299 
Amounts falling due
Within one year51 142 734 
Between one and two years31 812 110 
Between two and five years110 — 898 
After five years1,717 977 291 
(note 33)1,909 1,931 2,033 




F - 57
 US Dollars
Figures in millions2018
 2017
 2016
      
Currency     
The currencies in which the borrowings are denominated are as follows:     
US dollar1,896
 1,807
 1,844
Australian dollar48
 221
 225
SA rand75
 237
 106
Tanzanian shilling29
 —
 —
Brazilian real2
 3
 3
(notes 33 and 34)2,050

2,268

2,178
      
Undrawn facilities     
Undrawn borrowing facilities as at 31 December are as follows:     
Syndicated revolving credit facility ($1bn) - US dollar—
 965
 950
Syndicated revolving credit facility (A$500m) - Australian dollar—
 226
 191
Syndicated revolving credit facility (R1.5bn) - SA rand—
 —
 21
Syndicated revolving credit facility (R2.5bn) - SA rand174
 146
 —
Syndicated revolving credit facility (R1.4bn) - SA rand70
 32
 102
FirstRand Bank Limited (R750m) - SA rand52
 61
 37
Revolving credit facilities ($100m) - US dollar—
 85
 60
Revolving credit facility (R1bn) - SA rand35
 —
 —
Multi currency syndicated revolving credit facility ($1.4bn) - US Dollar1,400
 —
 —
Revolving credit facility - $115m57
 —
 —
 1,788

1,515

1,361
      
Changes in liabilities arising from financing activities:     
Reconciliation of total borrowings:     
A reconciliation of total borrowings included in the statement of financial position is set out in the following table:     
Opening balance2,268
 2,178
 2,737
Proceeds from borrowings753
 815
 787
Repayment of borrowings(967) (767) (1,333)
Finance costs paid on borrowings(117) (125) (159)
Interest charged to the income statement127
 130
 145
Fair value adjustments on issued bonds—
 —
 (9)
Translation(14) 37
 10
Closing balance2,050
 2,268
 2,178
      
Reconciliation of finance costs paid:     
A reconciliation of finance costs paid included in the statement of cash flows is set out in the following table:     
Finance costs paid on borrowings117
 125
 159
Commitment fees, environmental guarantee fees and other borrowing costs13
 13
 13
Total finance costs paid130
 138
 172
Table of Contents




NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)



IBOR linked borrowings
25    ENVIRONMENTAL REHABILITATION AND OTHER PROVISIONS
The IBOR Phase 2 amendments became effective on 1 January 2021. The amendments had no material impact on the group financial statements as management is in the process of negotiating new reference rates on the IBOR linked borrowings, with bank syndicates.

The table below provides further detail on revolving credit facilities (RCFs) which reference LIBOR. These facilities have yet to transfer to an alternative benchmark interest rate:

Figures in millions - US DollarCarrying value at 31 December 2021Repayable within one yearRepayable within one to two years
Siguiri revolving credit facility ($65m) (1)
3535— 
Geita revolving credit facility ($150m) (2)
63— — 
Multi-currency syndicated revolving credit facility ($1.4bn multi-currency RCF) (3)
— — — 

(1) The Siguiri RCF currently bears interest at LIBOR plus 8.5%. At 31 December 2021, $30m of the facility was undrawn. The Siguiri RCF matures in May 2022.

(2) The Geita RCF consists of a Tanzanian shilling component which is capped at the equivalent of US$87m and this component bears interest at 12.5%. The remaining component bears interest at LIBOR plus 6.7%. The equivalent of $40m was undrawn under the Geita RCF at 31 December 2021. The Geita RCF facility matures either in August 2024 or December 2024 depending on the fulfilment of certain conditions in the facility agreement.

(3) At 31 December 2021, an equivalent of $33m was drawn under the AUD portion of the $1.4bn multi-currency RCF, which bears interest at BBSY plus 1.45%. At 31December 2021, the USD portion of the $1.4bn multi-currency RCF, bearing interest at LIBOR plus 1.45%, was undrawn. The $1.4bn RCF is available until October 2023.

F - 58
 US Dollars
Figures in millions2018
 2017
 2016
      
Environmental rehabilitation obligations     
      
Provision for decommissioning     
Balance at beginning of year286
 279
 272
Charge to income statement1
 2
 —
Change in estimates(1)
(47) 4
 (12)
Unwinding of decommissioning obligation12
 12
 12
Transfer to non-current assets and liabilities held for sale—
 (20) —
Utilised during the year(1) (2) (2)
Translation(14) 11
 9
Balance at end of year237
 286
 279
      
Provision for restoration     
Balance at beginning of year409
 426
 411
Charge to income statement2
 8
 10
Change in estimates(1)
(28) (17) (2)
Unwinding of restoration obligation12
 10
 8
Transfer to non-current assets and liabilities held for sale—
 (3) —
Transfer to current portion—
 (17) —
Utilised during the year(3) (4) (3)
Translation(7) 6
 2
Balance at end of year385
 409
 426
      
Other provisions(2)(3)
     
Balance at beginning of year247
 172
 164
Charge to income statement24
 17
 11
Change in estimates18
 15
 5
Additions—
 64
 —
Transfer to trade and other payables(26) (6) (2)
Unwinding of other provisions7
 1
 1
Utilised during the year(35) (35) (30)
Translation(30) 19
 23
Balance at end of year205
 247
 172
      
Total environmental rehabilitation and other provisions827

942

877
Table of Contents

(1)
The change in estimates is attributable to changes in discount rates due to changes in global economic assumptions and changes in mine plans resulting in a change in cash flows and changes in design of tailings storage facilities and in methodology following requests from the environmental regulatory authorities. These provisions are expected to unwind beyond the end of the life of mine.
(2)
Other provisions include the following significant item: Chemwes (Pty) Limited, a subsidiary of First Uranium (Pty) Limited acquired by AngloGold Ashanti Limited during 2012, agreed to sell 25% of its production, capped at 312,500oz from 1 January 2012, to Franco-Nevada (Barbados) Corporation. Franco Nevada is required to pay $400/oz which inflates at 1% compounded annually from 2013. These factors were considered in determining the commodity contract obligation. The provision is calculated as the present value of the portion which is deemed onerous in light of the current market conditions using a gold forward for the duration of the contract of $1,283/oz (2017: $1,303/oz; 2016: $1,152/oz). As at 31 December 2018, the remaining production due to Franco Nevada is 144,517oz (2017: 170,435oz; 2016: 197,528oz).
(3)
Other provisions include the long-term provision for the silicosis class action litigation of $47m, the short-term portion of $16m has been included in trade and other payables.




NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)

26    Provision for pension and post-retirement benefits


US Dollars
Figures in millions202120202019
Currency
The currencies in which the borrowings are denominated are as follows:
US dollar1,829 1,884 1,893 
Australian dollar33 — 21 
SA rand— — 72 
Tanzanian shillings47 47 47 
(notes 33)1,909 1,931 2,033 
Undrawn facilities
Undrawn borrowing facilities as at 31 December are as follows:
Syndicated revolving credit facility (R2.5bn) - SA rand (1)
00179 
Syndicated revolving credit facility (R1.4bn) - SA rand (2)
00100 
FirstRand Bank Limited (R150m; 2020: R500m; 2019: R750m) - SA rand10 34 54 
Multi currency syndicated revolving credit facility ($1.4bn) - US Dollar1,367 1,400 1,379 
Revolving credit facility - $150m40 41 40 
Revolving credit facility - $65m30 — — 
1,447 1,475 1,752 
Change in liabilities arising from financing activities:
Reconciliation of borrowings (excluding lease liabilities) (3):
A reconciliation of the total borrowings included in the statement of financial position is set out in the following table:
Opening balance1,931 2,033 2,050 
Proceeds from borrowings822 2,226 168 
Repayment of borrowings(820)(2,310)(123)
Finance costs paid on borrowings(115)(114)(122)
Deferred loan fees(4)4 (7)
Other borrowing fees(11)(15)0
Interest charged to the income statement106 115 127 
Reclassification of finance leases to lease liabilities— — (60)
Translation— (8)— 
Closing balance1,909 1,931 2,033 
Reconciliation of finance costs paid:
A reconciliation of the finance cost paid included in the statement of cash flows is set out in the following table:
Finance costs paid on borrowings115 114 122 
Capitalised finance cost(14)(17)(6)
Commitment fees, utilisation fees and other borrowing costs10 13 12 
Total finance costs paid111 110 128 

(1) R2.5bn Syndicated loan facility issued December 2017 was cancelled on 23 October 2020.

(2) R1.4bn Syndicated loan facility issued July 2015 was cancelled on 19 February 2020.

(3) Refer note 14 for changes in lease liabilities arising from financing activities.


F - 59
 US Dollars
Figures in millions2018
 2017
 2016
      
Defined benefit plans     
The retirement schemes consist of the following:     
Post-retirement medical scheme for AngloGold Ashanti's South African employees93
 114
 109
Other defined benefit plans7
 8
 9
Sub-total100
 122
 118
 







Table of Content

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)


26    Provision for pension and post-retirement benefits




25    ENVIRONMENTAL REHABILITATION AND OTHER PROVISIONS
US Dollars
Figures in millions202120202019
Environmental rehabilitation obligations
Provision for decommissioning
Balance at beginning of year219 196 237 
Charge to income statement3 — — 
Change in estimates(1)
(8)17 29 
Unwinding of decommissioning obligation3 2 10 
Transfer to assets and liabilities held for sale— — (81)
Utilised during the year— — (1)
Translation(2)4 2 
Balance at end of year215 219 196 
Provision for restoration
Balance at beginning of year440 423 385 
Charge to income statement(3)2 (1)
Change in estimates(1)
29 15 50 
Unwinding of restoration obligation6 4 9 
Transfer to assets and liabilities held for sale— — (15)
Utilised during the year(10)(11)(5)
Translation(4)7 — 
Balance at end of year458 440 423 
Provision for silicosis
Balance at beginning of year49 5447
Change in estimates1 4(1)
Transfer (to) from short term provisions included in trade, other payables and provisions(5)(1)6
Unwinding of silicosis provision3 45
Utilised during the year(10)(9)(5)
Translation(4)(3)2
Balance at end of year34 4954
Other provisions(2)
Balance at beginning of year23 24 158 
Charge to income statement14 12 39 
Change in estimates— 1 28 
Transfer to assets and liabilities held for sale— — (115)
Transfer (to) from short term provisions included in trade, other payables and provisions(7)3 (79)
Unwinding of other provisions— — 1 
Utilised during the year(6)(13)(11)
Translation(2)(4)3 
Balance at end of year22 23 24 
Total environmental rehabilitation and other provisions729 731 697 
Sensitivity analysis - Provision for decommissioning (3)
Assumed discount rates and cash flows have a significant impact on the amounts recognised in the statement of financial position. A 10% change in the discount rate and cash flows would have the following impact:
Effect of increase in assumptions:
10% change in discount rate(5)(3)(4)
10% change in cash flows21 22 20 
Effect of decrease in assumptions:
10% change in discount rate5 3 4 
10% change in cash flows(21)(22)(20)
F - 60
Figures in millions2018
 2017
 2016
 US Dollars
Post-retirement medical scheme for AngloGold Ashanti's South African employees     
The provision for post-retirement medical funding represents the provision for health care benefits for employees and retired employees and their registered dependants.     
The post-retirement benefit costs are assessed in accordance with the advice of independent professionally qualified actuaries. The actuarial method used is the projected unit credit funding method. This scheme is unfunded. The last valuation was performed as at 31 December 2018.     
Information with respect to the defined benefit liability is as follows:     
Benefit obligation     
Balance at beginning of year115
 109
 97
Interest cost9
 10
 10
Benefits paid(10) (9) (8)
Actuarial (gain) loss(5) (8) (2)
Translation(16) 13
 12
Balance at end of year93

115

109
Less: transfer to non-current assets and liabilities held for sale—
 (1) —
Net amount recognised93

114

109
      
Components of net periodic benefit cost     
Interest cost9
 10
 10
Net periodic benefit cost9

10

10
Assumptions     
Assumptions used to determine benefit obligations at the end of the year are as follows:     
Discount rate9.57% 9.29% 9.31%
Expected increase in health care costs7.35% 7.75% 8.30%
      
Assumed health care cost trend rates at 31 December:     
Health care cost trend assumed for next year7.35% 7.75% 8.30%
Rate to which the cost trend is assumed to decline (the ultimate trend rate)7.35% 7.75% 8.30%
Assumed health care cost trend rates have a significant effect on the amounts reported for health care plans. A 1% point change in assumed health care cost trend rates would have the following effect:     
Effect on total service and interest cost – 1% point increase1
 1
 1
Effect on post-retirement benefit obligation – 1% point increase7
 10
 10
Effect on total service and interest cost – 1% point decrease(1) (1) (1)
Effect on post-retirement benefit obligation – 1% point decrease(7) (8) (9)
      
      
      
Cash flows     
Contributions     
AngloGold Ashanti Limited expects to contribute $9m to the post-retirement medical plan in 2019.     
      
Estimated future benefit payments     
The following medical benefit payments, which reflect the expected future service, as appropriate, are expected to be paid:     
20199
    
20209
    
20219
    
20229
    
20239
    
Thereafter48
    
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)






Sensitivity analysis - Provision for restoration (3)
Assumed discount rates and cash flows have a significant impact on the amounts recognised in the income statement. A 10% change in the discount rate and cash flows would have the following impact:
Effect of increase in assumptions:
10% change in discount rate(5)(3)(6)
10% change in cash flows46 44 42 
Effect of decrease in assumptions:
10% change in discount rate5 3 6 
10% change in cash flows(46)(44)(42)
Sensitivity analysis - Provision for silicosis (3)
Significant judgements are applied in estimating the costs required to settle any qualifying silicosis claims, the provision included in the Statement of financial position are based on certain assumptions which includes the number of claimants, take-up rates and disease progression rates. Considering actuarial guidance received, a 10% change in these assumptions would have the following impact:
Effect of increase in assumptions:
10% change in take-up rates6 6 6 
10% change in number of cases6 6 6 
10% change in disease progression rate3 3 3 
Effect of decrease in assumptions:
10% change in take-up rates(6)(6)(6)
10% change in number of cases(6)(6)(6)
10% change in disease progression rate(3)(3)(3)

(1)The change in estimates is attributable to changes in discount rates due to changes in global economic assumptions and changes in mine plans resulting in a change in cash flows and changes in design of tailings storage facilities and in methodology following requests from the environmental regulatory authorities. These provisions are expected to unwind beyond the end of the life of mine.

(2)Other provisions comprises claims filed by former employees in respect of loss of employment, work-related accident injuries and diseases, governmental fiscal claims relating to levies, surcharges and environmental legal disputes and a shareholder claim related to stamp duties. These liabilities are expected to be settled over the next two-to five-year period.

(3)The sensitivity analysis is based on the change of a single assumption, keeping all other assumptions constant. This may not be the case in practice where changes in assumptions may result in correlated changes in other assumptions, and a change in the provision amount..


26    PROVISION FOR PENSION AND POST-RETIREMENT BENEFITS
US Dollars
Figures in millions202120202019
Defined benefit plans
The retirement schemes consist of the following:
Post-retirement medical scheme for AngloGold Ashanti's South African employees71 77 93 
Other defined benefit plans6 6 7 
77 83 100 
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
26    PROVISION FOR PENSION AND POST-RETIREMENT BENEFITS (continued)

Figures in millions202120202019
US Dollars
Post-retirement medical scheme for AngloGold Ashanti's South African employees
The provision for post-retirement medical funding represents the provision for health care benefits for employees and retired employees and their registered dependants.
The post-retirement benefit costs are assessed in accordance with the advice of independent professionally qualified actuaries. The actuarial method used is the projected unit credit funding method. This scheme is unfunded. The last valuation was performed as at 31 December 2021.
Information with respect to the defined benefit liability is as follows:
Benefit obligation
Balance at beginning of year77 93 93 
Interest cost6 7 8 
Benefits paid(8)(7)(8)
Actuarial loss (gain)1 (9)(2)
Translation(5)(5)2 
Balance at end of year71 79 93 
Settlement gain— (2)— 
Net amount recognised71 77 93 
Components of net periodic benefit cost
Interest cost6 7 8 
Net periodic benefit cost6 7 8 
Assumptions
Assumptions used to determine benefit obligations at the end of the year are as follows:
Discount rate9.79 %9.14 %9.15 %
Expected increase in health care costs7.23 %6.06 %7.25 %
Assumed health care cost trend rates at 31 December:
Health care cost trend assumed for next year7.23 %6.06 %7.25 %
Rate to which the cost trend is assumed to decline (the ultimate trend rate)7.23 %6.06 %7.25 %
Assumed health care cost trend rates have a significant effect on the amounts reported for health care plans. A 1% point change in assumed health care cost trend rates would have the following effect:
Effect on total service and interest cost – 1% point increase1 — 1 
Effect on post-retirement benefit obligation – 1% point increase5 4 7 
Effect on total service and interest cost – 1% point decrease— — (1)
Effect on post-retirement benefit obligation – 1% point decrease(4)(4)(6)
Cash flows
Contributions
AngloGold Ashanti Limited expects to contribute $8m to the post-retirement medical plan in 2022.
Estimated future benefit payments
The following medical benefit payments, which reflect the expected future service, as appropriate, are expected to be paid:
20228 
20238 
20248 
20259 
20269 
Thereafter35 

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)



27    DEFERRED TAXATION
US Dollars
Figures in millions202120202019
Deferred taxation relating to temporary differences is made up as follows:
Liabilities
Tangible assets (owned)442 373 370 
Right-of-use assets53 40 48
Inventories13 20 24 
Other22 13 9 
530 446 451 
Assets
Provisions141 122 209 
Lease liabilities56 42 52 
Tax losses16 15 45 
Other11 28 9 
224 207 315 
Net deferred taxation liability306 239 136 
Included in the statement of financial position as follows:
Deferred tax assets (1)
7 7 105 
Deferred tax liabilities313 246 241 
Net deferred taxation liability306 239 136 
The movement on the net deferred tax balance is as follows:
Balance at beginning of year239 136 315 
Taxation of items included in income statement from continuing and discontinued operations64 53 (189)
Taxation of non-current assets and liabilities included in discontinued operations— 28 — 
Taxation on items included in other comprehensive income6 6 (2)
Transfer to non-current assets and liabilities held for sale— — 15 
Translation(3)16 (3)
Balance at end of year306 239 136 
(1)    Deferred tax assets of $7m (2020: $7m; 2019: nil) were recognised for Obuasi, resulting from generated tax losses to be utilised against future taxable income. Deferred tax assets recorded in 2019 for South Africa, were fully derecognised during the fourth quarter of 2020 as part of the disposal of the South African assets and on consideration of future recovery.
 US Dollars
Figures in millions2018
 2017
 2016
      
Deferred taxation relating to temporary differences is made up as follows:




Liabilities




Tangible assets521
 604
 730
Inventories37
 33
 31
Other5
 15
 10

563
 652
 771
Assets




Provisions218
 229
 245
Tax losses24
 60
 31
Other6
 4
 3

248
 293
 279
Net deferred taxation liability315
 359
 492
Included in the statement of financial position as follows:




Deferred tax assets—
 4
 4
Deferred tax liabilities315
 363
 496
Net deferred taxation liability315
 359
 492
The movement on the deferred tax balance is as follows:




Balance at beginning of year359
 492
 513
Taxation of items included in income statement(30) (68) (45)
Taxation on items included in other comprehensive income5
 (6) 2
Transfer to non-current assets and liabilities held for sale—

(73)
—
Translation(19) 14
 22
Balance at end of year315
 359
 492
Provision has been made for South African income tax or foreign taxes that may result from future remittances of undistributed earnings of foreign subsidiaries or foreign corporate joint ventures, where the group is able to assert that the undistributed earnings are not permanently reinvested. In all other cases, the foreign subsidiaries reinvest the undistributed earnings into future capital expansion projects, maintenance capital and ongoing working capital funding requirements. Unrecognised taxable temporary differences pertaining to undistributed earnings totalled $413m (2017: $384m; 2016: $366m)$1,800m (2020: $1,806m; 2019: $1,787m). If remitted, the undistributed earnings may be subject to withholding taxes between 0% - 10%.









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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)



28    TRADE, OTHER PAYABLES AND DEFERRED INCOMEPROVISIONS
US Dollars
Figures in millions202120202019
Non-current
Other payables7 8 15 
Current
Trade payables406 403 365 
Accruals(1)
205 191 167 
Short-term provisions31 30 53 
Other payables5 3 1 
647 627 586 
Total trade, other payables and provisions654 635 601 
Current trade and other payables are non-interest bearing and are normally settled within 60 days.
 US Dollars
Figures in millions2018
 2017
 2016
      
Non-current3
 3
 4
Current     
Trade payables350
 358
 381
Accruals and deferred income(1)
186
 228
 206
Short-term provisions20
 22
 —
Derivatives9
 —
 —
Other payables29
 30
 28
 594
 638
 615
Total trade, other payables and deferred income597
 641
 619
Current trade and other payables are non-interest bearing and are normally settled within 60 days.     
(1)Includes accrual for silicosis of $16m in 2018(2020: $12m; 2019: $11m) and retrenchments of $7m (2020: nil; 2019: nil).

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)






29    TAXATION
US Dollars
Figures in millions202120202019
Balance at beginning of year139 62 54 
Refunds during the year20 — 7 
Payments during the year(336)(431)(228)
Taxation of items included in the income statement248 562 298 
Offset of VAT and other taxes(87)(41)(50)
Withholding tax transferred from (to) trade, other payables and provisions7 (7)— 
Discounting of tax receivable1 — — 
Transfer from tax receivable relating to North America— (4)(10)
Translation(2)(2)(9)
Balance at end of year(10)139 62 
Included in the statement of financial position as follows:
Taxation asset included in trade, other receivables and other assets(49)(14)(10)
Taxation liability39 153 72 
(10)139 62 

 US Dollars
Figures in millions2018
 2017
 2016
      
Balance at beginning of year50
 97
 64
Refunds during the year5
 14
 12
Payments during the year(171) (174) (165)
Taxation of items included in the income statement242
 190
 234
Offset of VAT and other taxes(63) (78) (47)
Translation(9) 1
 (1)
Balance at end of year54
 50
 97
Included in the statement of financial position as follows:     
Taxation asset included in trade and other receivables(6) (3) (14)
Taxation liability60
 53
 111
 54

50

97
30    CASH GENERATED FROM OPERATIONS
US Dollars
Figures in millions202120202019
Profit (loss) before taxation958 1,589 619 
Adjusted for:
Movement on non-hedge derivatives and other commodity contracts— — (6)
Amortisation of tangible and right of use assets (note 4)474 568 580 
Amortisation of intangible assets (note 4)3 2 3 
Finance costs and unwinding of obligations (note 6)116 177 172 
Environmental, rehabilitation, silicosis and other provisions(20)(50)(6)
Impairment and derecognition of assets7 1 3 
Profit on sale of assets(22)(2)— 
Other expenses (income)61 51 41 
Interest income(58)(27)(14)
Share of associates and joint ventures’ (profit) loss (note 7)(249)(278)(168)
Other non-cash movements30 35 43 
Movements in working capital53 (238)(165)
1,353 1,828 1,102 
Movements in working capital:
Decrease (increase) in inventories58 (83)(67)
Increase in trade, other receivables and other assets(49)(163)(138)
Increase in trade, other payables and provisions44 8 40 
53 (238)(165)

F - 65
 US Dollars
Figures in millions2018
 2017
 2016
      
Profit (loss) before taxation278
 (63) 269
Adjusted for:     
Movement on non-hedge derivatives and other commodity contracts3
 (10) (19)
Amortisation of tangible assets (note 4)625
 817
 789
Finance costs and unwinding of obligations (note 7)178
 169
 180
Environmental, rehabilitation and other expenditure(35) (30) (13)
Special items106
 394
 44
Amortisation of intangible assets (notes 4 and 15)5
 6
 20
Fair value adjustments3
 —
 (9)
Interest received(17) (15) (22)
Share of associates and joint ventures’ (profit) loss (note 8)(122) (22) (11)
Exchange loss on foreign currency reserve release—
 —
 60
Other non-cash movements39
 61
 90
Movements in working capital(131) (156) (76)
 932
 1,151
 1,302
Movements in working capital:     
(Increase) decrease in inventories(9) (67) (48)
(Increase) decrease in trade, other receivables and other assets(72) (86) (131)
Increase (decrease) in trade, other payables and deferred income(50) (3) 103
 (131) (156) (76)
Table of Contents


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

31    RELATED PARTIES
US Dollars
Figures in millions202120202019
Material related party transactions were as follows (not attributable):
Sales and services rendered to related parties
Associates7 11 19 
Joint ventures— 8 7 
Purchases and services acquired from related parties
Associates14 20 12 
Joint ventures— 1 1 
Outstanding balances arising from sale of goods and services due by related parties
Associates7 11 19 
Joint ventures— — 1 
Amounts owed to/due by related parties above are unsecured and non-interest bearing.
Loans advanced to joint ventures and associates
Loans advanced to associates and joint ventures are included in the carrying value of investments in associates and joint ventures (note 17)
 US Dollars
Figures in millions2018
 2017
 2016
      
Material related party transactions were as follows (not attributable):     
      
Sales and services rendered to related parties     
Joint ventures10
 12
 16
      
Purchases and services acquired from related parties     
Associates19
 16
 15
Joint ventures—
 3
 6
      
Outstanding balances arising from sale of goods and services due by related parties     
Associates19
 7
 —
Joint ventures—
 2
 8
Amounts owed to/due by related parties above are unsecured and non-interest bearing.     
Loans advanced to joint ventures and associates     
      
Loans advanced to associates and joint ventures are included in the carrying value of investments in associates and joint ventures (note 17)     


Executive contracts
All members of the Executive CommitteeManagement team have permanent employment contracts which entitle them to standard group benefits as defined by their specific region and participation in the company’s short-term incentive scheme, the BonusCompany’s Deferred Share Plan (BSP) and the Long Term Incentive Plan (LTIP). All recently updated Executive Committee contracts include details on participation in the Co-Investment Plan (CIP)(DSP).


South AfricanAfrican-based executives have an off-shore retainerare paid a portion of their remuneration offshore, which is detailed under a separate contract. This reflects the percentageglobal roles and responsibilities and takes account of their time focused on offshore business requirements. The offshore pay has been increased to a maximum cap of 40% of base pay due to a review of the amount of time spent outside South Africa on the offshore responsibilities of each executive team member. Where practical the offshore portion is now pensionable.


The executive contracts are reviewed annually and currently continue to include a change ofin control provision. The change ofin control is subject to the following triggers:
•The acquisition of all or part of AngloGold Ashanti; or
•A number of shareholders holding less than 35%thirty-five percent of the company’sCompany’s issued share capital consorting to gain a majority of the board and make management decisions; and
•The contracts of Executive Committee members are either terminated or their role and employment conditions are curtailed.


In the event of a change ofin control becoming effective, the executive management team will in certain circumstances be subject to both the notice period and the change ofin control contract terms. The notice period applied per category of executive and the change ofin control periods as at 31 December 20182021 were as follows:
Executive Committee memberNotice PeriodChange of control
CEOChief Executive Officer12 months12 months
CFOChief Financial Officer6 months6 months
EXCOOther Executive Management team members6 months6 months





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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)






Directors and other key management personnel

Executive Directors’directors’ and Prescribed Officers’prescribed officers’ remuneration

Key management remuneration includes directors and prescribed officers that held office in the current year. For disclosure of the remuneration of key management in the prior year, refer to the disclosure provided in the prior year annual financial statements.
The tabletables below summarisesillustrate the single total figure of remuneration and the total cash equivalent received reconciliation of Executive Directors and Prescribed Officers.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 2018.2021.


The following are definitions of terminology used in the adoption of the reporting requirements under King IV.
 Salary
Performance
related
payments(4)

Pension
scheme
benefits

Other benefits
and
encashed
leave(3)

Total
salary
and
benefits (IFRS)

Pre-tax gains on share awards exercised
2018 TotalTotal
 SA RandsUS Dollars
Figures in thousands2018
2018(8)
20172016
Executive Directors         
KPM Dushnisky(1)(2)(3)

5,740
6,529
1,421
16,022
29,712
—
29,712
2,243
—
—
KC Ramon

8,692
8,187
725
1,162
18,766
—
18,766
1,417
1,157
947
S Venkatakrishnan(7)
8,995
—
2,275
4,218
15,488
55,278
70,766
5,342
2,134
1,832
Total Executive Directors23,427
14,716
4,421
21,402
63,966
55,278
119,244
9,002
3,291
2,779
Prescribed Officers          
CE Carter(5)
9,557
8,050
1,381
985
19,973
9,628
29,601
2,235
1,887
1,535
GJ Ehm8,693
7,019
248
694
16,654
13,874
30,528
2,304
1,449
1,693
L Eybers7,946
6,549
248
1,369
16,112
—
16,112
1,216
1,051
—
DC Noko7,014
5,751
658
406
13,829
22,132
35,961
2,715
938
961
ME Sanz Perez6,953
5,730
869
150
13,702
—
13,702
1,034
885
1,640
CB Sheppard7,415
6,080
696
389
14,580
—
14,580
1,101
862
721
TR Sibisi6,347
5,416
793
114
12,670
—
12,670
957
711
541
Retired prescribed officers







—


—






Total prescribed officers53,925
44,595
4,893
4,107
107,520
45,634
153,154
11,562
7,783
7,091
Total Executive Directors’ and Prescribed Officers’ remuneration ZAR77,352
59,311
9,314
25,509
171,486
100,912
272,398
20,564
11,074
9,870
           

(1)
All salary payments (including salary, performance related payments, pension and other benefits) for KPM Dushnisky are pro-rated in accordance with his start date (1 September 2018 - 31 December 2018).
(2)
Other benefits for KPM Dushnisky represent a cash sign on award of $1.2m accrued in 2018, payable as follows: $0.8m upon engagement and $0.4m in January 2019. Full details of total cash and share sign-on awards are included below.
(3)
Other benefits include health care, pension allowance, cash in lieu of dividends, vested CIP match awards, group personal accident, disability and funeral cover. Surplus leave days accrued are automatically encashed unless work requirements allow for carry over.
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 SalaryPension scheme benefitsCash in lieu of dividends
Other benefits(2)
Awards earned during the period reflected but not yet settledOther PaymentsSingle total figure of remuneration
ZAR denominated portion
USD/AUD denominated portion(1)
DSP awards(3)
Sign-on
awards
granted		202120202019
ZAR '000ZAR '000ZAR '000ZAR '000ZAR '000ZAR '000ZAR '000ZAR '000
USD '000(15)
USD '000(15)
USD '000(15)
Executive directors
A Calderon(4)
— 7,821 2,066 — 156 20,481 10,289 — 40,813 2,761 — — 
KC Ramon(5)
6,104 4,324 864 67 525 7,652 — 22,974 42,510 2,875 3,138 5,097 
Total executive directors6,104 12,145 2,930 67 681 28,133 10,289 22,974 83,323 5,636 3,138 5,097 
Prescribed officers
SD Bailey4,648 3,062 — 30 1,246 15,752 — — 24,738 1,673 2,019 2,190 
I Boninelli(6)
4,725 — — — 131 4,091 — — 8,947 605 — — 
VA Chamberlain (7)
1,047 252 137 — 29 7,228 — 264 8,957 606 — — 
PD Chenard(8)
440 335 — — 1,489 — — — 2,264 153 1,250 3,292 
GJ Ehm(9)
— 10,392 291 54 1,548 6,359 — — 18,644 1,261 2,673 4,742 
L Eybers— 10,760 291 52 1,578 21,189 — — 33,870 2,291 2,686 4,659 
MC Godoy(10)
— 1,882 141 — 358 4,782 35,072 — 42,235 2,857 — — 
I Kramer(11)
2,408 — 301 15 48 5,459 — 602 8,833 598 468 — 
L Marwick(12)
4,706 1,828 629 13 271 13,735 — — 21,182 1,433 1,241 — 
S Ntuli(13)
5,415 3,567 756 36 2,239 5,358 — 17,599 34,970 2,365 2,322 2,565 
TR Sibisi(14)
1,144 758 242 47 14 — — 4,406 6,611 447 1,831 3,514 
Total prescribed officers24,533 32,836 2,788 247 8,951 83,953 35,072 22,871 211,251 14,289 14,490 20,962 
(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 3 to 5-year period in equal tranches.
(4) RepresentsA Calderon was appointed as executive director and CEO with effect from 1 September 2021. All payments including salary, DSP awards, pension, and other benefits 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 portion;bonus and share award for 2021 calculated on the financial year's results;CFO role for 4 months. Other payments reflect the acting allowance paid and payablethe DSP cash bonus and share award for the acting period of 8 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 2019DSP 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 3 months acting allowance). Other payments reflect the acting allowance for the acting period from 1 October to 31 December 2021.
(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, were 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 benefits, were pro-rated and aligned to the appointment period.
(11)    I Kramer was appointed as Interim CFO and prescribed officer from 1 September 2020 to 31 August 2021. All payments, including 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 normal SVP salary plus 8 months acting allowance on the SVP target bonus opportunity). 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.year as compared to 2020 earnings which were prorated as she was promoted and appointed as a prescribed officer effective 1 July 2020.
(5) Includes remuneration(13)    S Ntuli separated due to operational requirements effective 31 December 2021. All payments, including salary, pension, DSP awards (cash bonus only) and pre-tax gains on share awards for S Venkatakrishnan upother benefits, were aligned to resignation dateseparation 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 August 2018.September 2021.
(6)(15)Convenience conversion to USD at the year-to-date average exchange rate of $1:R13.25 (2017: R14.7842 (2020: $1:R13.30; 2016:R16.4506; 2019: $1:R14.68)R14.445).

F - 67

Subsequent to year end, up to 19 March 2019, the following awards / options were exercised by Executive Directors and Prescribed Officers: Charles Carter exercised a total of 43,236 awards for a pre-tax gain of $610,240 and Chris Sheppard exercised 79,268 awards for a pre-tax gain of $1,127,973.

While the company has endeavoured to comply with single figure reporting principles as recommended by King IV, we consider that disclosing remuneration consistent with prior years provides greater transparency, insight and usefulness for users of the Integrated Report and Annual Financial Statements, especially since the company is in transition to a new incentive scheme.


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)

31    Related parties (continued)
Directors and other key management personnel (continued)
CONTINUED
Total cash equivalent received reconciliationSingle total figure of remunera-
tion		Awards earned during the period reflected but not yet settledDSP 2020 cash portion settledBSP, CIP, DSP and LTIP share awards settledSign-on cash settledSign-on shares settledTotal cash equivalent received reconciliation
DSP awards(1)
Sign-on
awards
granted
Grant fair value(2)
Market movement since grant date(2)
Vesting fair value(2)
Grant fair value(2)
Currency move-
ment since grant date(2)
Settlement fair value(2)
Grant fair value(2)
Market move-
ment since grant date(2)
Vesting fair value(2)
202120202019
ZAR '000ZAR '000ZAR '000ZAR '000ZAR '000ZAR '000ZAR '000ZAR '000ZAR '000ZAR '000ZAR '000ZAR '000ZAR '000ZAR '000
USD '000(3)
USD '000(3)
USD '000(3)
Executive directors
A Calderon40,813 (20,481)(10,289)— — — — 10,289 — 10,289 — — — 20,332 1,375 — — 
KC Ramon42,510 (28,907)— 11,479 7,751 1,596 9,347 — — — — — — 34,429 2,329 4,278 3,057 
Total executive directors83,323 (49,388)(10,289)11,479 7,751 1,596 9,347 10,289 — 10,289 — — — 54,761 3,704 4,278 3,057 
Prescribed officers
SD Bailey24,738 (15,752)— 6,793 3,892 504 4,396 — — — — — — 20,175 1,365 1,508 1,041 
I Boninelli8,947 (4,091)— — — — — — — — — — — 4,856 328 — — 
VA Chamberlain8,957 (7,228)— — 2,099 425 2,524 — — — — — — 4,253 288 — — 
PD Chenard2,264 — — 7,977 2,624 (151)2,473 — — — 6,513 3,644 10,157 22,871 1,547 2,204 900 
GJ Ehm18,644 (6,359)— 9,465 6,912 1,468 8,380 — — — — — — 30,130 2,038 3,843 2,536 
L Eybers33,870 (21,189)— 9,402 6,683 1,376 8,059 — — — — — — 30,142 2,039 3,756 2,082 
MC Godoy42,235 (4,782)(35,072)— — — — 4,583 — 4,583 — — — 6,964 471 — — 
I Kramer8,833 (5,459)— 2,434 1,772 340 2,112 — — — — — — 7,920 536 98 — 
L Marwick21,182 (13,735)— 4,760 1,543 262 1,805 — — — — — — 14,012 948 231 — 
S Ntuli34,970 (5,358)— 7,593 6,278 1,637 7,915 — — — — — — 45,120 3,052 1,862 1,160 
TR Sibisi6,611 — — 5,849 5,399 1,132 6,531 — — — — — — 18,991 1,285 2,835 2,249 
Total prescribed officers211,251 (83,953)(35,072)54,273 37,202 6,993 44,195 4,583 — 4,583 6,513 3,644 10,157 205,434 13,897 16,337 9,968 

Notes
(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 3 to 5 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; 2019: $1:R14.445).

KPM Dushnisky resigned effective 1 September 2020 and on 28 February 2021 was paid the balance of his 12-month notice period of $2.8m which included his DSP FY 2020 cash bonus (Single total figure of remuneration – 2020: $3.3m; 2019: $6.3m). Payment made in the current year is aligned to the standard terms and conditions of termination.

Details of the share incentive scheme awards are included below.
BSP

0Sign-on share awards
Balance at
1 January 2021		GrantedVested deemed settledForfeited/ Lapsed
Balance at
31 December 2021
 Fair value of granted awards(1)
 Fair value of vested awards(2)
Fair value of unvested awards at
31 December 2021(3)
ZAR '000ZAR '000ZAR '000
Prescribed officers
PD Chenard32,476 — 32,476 — — — 10,157 — 
M Godoy— 107,353 — — 107,353 30,489 — 35,287 
Total prescribed officers32,476 107,353 32,476 — 107,353 30,489 10,157 35,287 
Other management(4)
87,939 5,449 87,939 896 4,553 1,415 27,277 1,497 
Total sign-on share awards120,415 112,802 120,415 896 111,906 31,904 37,434 36,784 
 Balance at 1 January 2018
Granted during 2018


Exercised during 2018
Lapsed during 2018
Balance at 31 December 2018(1)

Vested balance at 31 December 2018(1)

Pre-tax gains on options exercised during 2018
USD'000(2)(3)

Closing indicative fair value of Balance at 31 December 2018
USD'000(4)

Executive Directors        
S Venkatakrishnan331,742
101,217
295,683
137,276
—
—
2,470
—
KC Ramon89,825
55,634
—
—
145,459
68,386
—
1,675
Total Executive Directors421,567
156,851
295,683
137,276
145,459
68,386
2,470
1,675
Prescribed Officers        
CE Carter56,933
47,873
37,633
—
67,173
—
305
774
GJ Ehm117,164
45,993
21,882
—
141,275
78,492
185
1,627
L Eybers36,959
44,575
—
—
81,534
27,908
—
939
DC Noko101,548
38,718
87,735
—
52,531
—
901
605
ME Sanz Perez67,902
38,143
—
—
106,045
53,203
—
1,221
CB Sheppard39,357
40,931
—
—
80,288
24,754
—
925
TR Sibisi23,621
35,410
—
—
59,031
11,810
—
680
Total Prescribed Officers443,484
291,643
147,250
—
587,877
196,167
1,391
6,771
(1)
Vested awards not yet exercised are included in "Balance at 31 December 2018".(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 “Balance at 31 December 2018” includes unvested awards as well as vested awards not yet exercised.
(2)
Represents the actual pre-tax gains on date of exercise, converted to USD at the convenience year-to-date average exchange rate of $1:R13.25.
(3)
Pre-tax gains on awards exercised included in the 2018 remuneration table.
(4)
Represents the indicative fair value of closing share balance, at the JSE year end VWAP price converted to USD at the December closing exchange rate of $1:R14.35.

The last BSP awards were granted on start date and will vest over a 2 to 3-year period in 2018. No further BSPequal tranches in accordance with the JSE Listings Requirements.
(2)    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 will be grantedfor other management include awards for Mr KPM Dushnisky who stepped down as the Company is transitioning to the new DSP. The BSP 2018 cash portion of the scheme, paidexecutive director in February 2018, was included in the 2017 remuneration table, while pre-tax gains on BSP 2018 share awards will be included in future remuneration tables when vested shares are exercised. BSP share awards vest at 100% over two years, with 50% vesting 12 months after the date of grant and the remaining 50% vesting 24 months after the date of grant.2020.


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
F - 68


31    Related parties (continued)
Directors and other key management personnel (continued)
CONTINUED

DSP awards

Balance at
1 January 2021		GrantedVested, deemed settledForfeited/ Lapsed
Balance at
31 December 2021
 Fair value of granted awards(1)
 Fair value of vested awards(2)
Fair value of unvested awards at
31 December 2021(3)
ZAR '000ZAR '000ZAR '000
Executive directors
KC Ramon134,421 79,541 30,475 — 183,487 24,576 9,347 60,312 
Total executive directors134,421 79,541 30,475 — 183,487 24,576 9,347 60,312 
Prescribed officers
SD Bailey52,433 51,929 14,325 — 90,037 16,045 4,396 29,595 
VA Chamberlain(4)
19,889 15,498 8,228 — 27,159 4,788 2,524 8,927 
PD Chenard40,251 — 8,050 — 32,201 — 2,473 10,584 
GJ Ehm120,204 73,218 27,321 — 166,101 22,622 8,380 54,597 
L Eybers115,886 72,734 26,272 — 162,348 22,473 8,058 53,364 
I Kramer12,892 11,816 6,884 — 17,824 3,651 2,112 5,859 
L Marwick11,482 36,223 5,884 — 41,821 11,192 1,805 13,747 
S Ntuli62,114 58,047 25,226 — 94,935 17,935 7,915 31,205 
TR Sibisi(5)
93,775 — 21,291 72,484 — — 6,531 — 
Total prescribed officers528,926 319,465 143,481 72,484 632,426 98,706 44,194 207,878 
Other management(6)
1,442,976 786,342 691,212 250,330 1,287,776 242,956 212,629 423,292 
Total DSP awards2,106,323 1,185,348 865,168 322,814 2,103,689 366,238 266,170 691,482 
LTIP(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.
 Balance at 1 January 2018
Exercised during 2018
Lapsed during 2018
Balance at 31 December 2018(1)(2)

Vested balance at 31 December 2018(2)

Pre-tax gain on awards exercised during 2018
USD'000(3)(4)

Closing indicative fair value of balance at 31 December 2018
USD'000(5)

Executive Directors       
S Venkatakrishnan634,782
203,786
430,996
—
—
1,703
—
KC Ramon358,334
—
67,590
290,744
60,149
—
3,348
Total Executive Directors993,116
203,786
498,586
290,744
60,149
1,703
3,348
Prescribed Officers       
CE Carter352,962
50,219
72,148
230,595
—
422
2,655
GJ Ehm387,556
86,659
70,302
230,595
—
862
2,655
L Eybers146,061
—
14,492
131,569
14,034
—
1,515
DC Noko339,221
75,041
55,330
208,850
—
770
2,405
ME Sanz Perez332,634
—
55,090
277,544
69,081
—
3,196
CB Sheppard231,328
—
10,260
221,068
7,140
—
2,546
TR Sibisi195,971
—
—
195,971
—
—
2,257
Total Prescribed Officers1,985,733
211,919
277,622
1,496,192
90,255
2,054
17,229
(2)The fair value of vested awards represents the value deemed received on settlement date.

(3)The fair value of unvested awards is calculated using the closing share price as at 31 December.
(1)
Represents the total long term incentive awards (including cash settled awards for 2016 and 2017). The “Balance at 31 December 2018” includes unvested awards as well as vested awards not yet exercised.
(2)
Vested awards are included in "Balance at 31 December2018".
(3)
Represents the actual pre-tax gains on date of exercise, converted to USD at the convenience year-to-date average exchange rate of $1:R13.25.
(4)
Pre-tax gains on awards exercised are included in the remuneration table.
(5)
Represents the indicative fair value of closing share balance, at the JSE year end VWAP price converted to USD at the December closing exchange rate of $1:R14.35.

(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 for 2020 and Mr KPM Dushnisky who stepped down as executive director in 2020.

Non-Executive Directors’ fees and allowances

The last LTIP awards were granted in 2017, i.e. cash-settled LTIP 2017. No further LTIP awards will be issued as the Company is transitioning to the new DSP. Cash-settled LTIP 2016 awards vested in March 2019 at 47.3%, while cash-settled LTIP 2017 awards will vest in March 2020,board received a 2% inflationary increase for 2021. This increase was based on the actual vesting percentage achieved atUS inflation rate in 2021, in line with market practice. This is the time. Pre-tax gains on vested awards exercised are included in remuneration tables in the years exercises occur.first increase Non-Executive Directors have received since 2014.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)

31    Related parties (continued)
Directors and other key management personnel (continued)


CIP matched awards
 Balance at 1 January 2018
Granted during 2018

Vested and exercised during 2018(1)

Lapsed during 2018
Balance at 31 December 2018
 
Closing indicative fair value of balance at 31 December 2018
USD'000(2)

Executive Directors       
S Venkatakrishnan23,265
—
11,632
11,633
—
 —
KC Ramon17,817
16,950
11,497
—
23,270
 268
Total Executive Directors41,082
16,950
23,129
11,633
23,270
 268
Prescribed Officers       
CE Carter1,897
—
948
—
949
 11
GJ Ehm9,000
12,000
4,500
—
16,500
 190
L Eybers7,218
13,179
3,609
—
16,788
 193
DC Noko12,929
10,606
8,165
—
15,370
 177
ME Sanz Perez9,109
11,484
4,554
—
16,039
 185
CB Sheppard8,016
10,350
4,008
—
14,358
 165
TR Sibisi6,127
6,240
3,063
—
9,304
 107
Total Prescribed Officers54,296
63,859
28,847
—
89,308
 1,028

(1)
Vested CIP matched awards are included in the remuneration table as part of "Other benefits and encashed leave". The “Balance at 31 December 2018” includes unvested awards only.
(2)
Represents the fair value of closing share balance, at the JSE year end VWAP price converted to USD at the December closing exchange rate of $1:R14.35.

DSP awards

Subsequent to year end and up to the date of this report, the following DSP awards were granted to executive directors and prescribed officers:
 Awards granted (unvested)
Indicative fair value of unvested awards based on grant date price
USD'000(1)

Executive Directors  
KPM Dushnisky67,742
965
KC Ramon89,782
1,279
Total Executive Directors157,524
2,244
Prescribed Officers  
CE Carter98,451
1,402
GJ Ehm82,037
1,169
L Eybers77,380
1,102
DC Noko67,548
962
ME Sanz Perez67,712
965
CB Sheppard71,409
1,017
TR Sibisi63,424
904
Total Prescribed Officers527,961
7,521
(1)
Represents the fair value of closing share balance, at the JSE year end VWAP price converted to USD at the December closing exchange rate of $1:R14.35.

The DSP, which replaces all previous short-term and long-term incentive plans was implemented in 2018. The DSP 2019 cash portion of the scheme, paid in February 2019, was included in “Performance related payments” in the 2018 remuneration table. The table above reflects the DSP 2019 share awards granted in February 2019. These shares will vest in equal annual portions over five years from 2020 to 2024.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)

31    Related parties (continued)
Directors and other key management personnel (continued)


Special on-boarding incentives

The following table shows the special once-off on-boarding incentives (cash and shares) awarded to KPM Dushnisky upon joining the company:
   USD '000
Total cash sign-on incentive   
Upon engagement - 1 September 2018(1)
  800
1 January 2019(1)
  400
1 January 2020(1)
  1,000
 

 2,200
    
 Number of shares
USD '000
Closing indicative fair value of awards at 31 December 2018
USD '000(4)

Total share sign-on incentive   
January 2019(3)(5)
175,877
1,400
2,025
January 2020(3)
87,939
700
1,012
January 2021(3)
87,939
700
1,012
 351,755
2,800
4,049
    

(1)
Amounts included in 2018 remuneration table as part of "Other benefits and encashed leave".
(2)
Amount will be included in remuneration table for the financial year ending 31 December 2019.
(3)
Value of the share sign-on awards to be included in future years' remuneration tables.
(4)
Represents the indicative fair value of closing share balance, at the JSE year end VWAP price converted to USD at the convenience December closing exchange rate of $1:R14.35.
(5)
Shares were awarded on 20 February 2019 (40,877) and 21 February 2019 (135,000).
Non-Executive Director remuneration
The table below details the fees andpayable to Non-Executive Directors in accordance with the Company’s shareholder approved policy together with allowances paid in the year:

Figures in thousandsFigures in thousands
Director fees(1)
Committee feesTravel allowanceTotalTotalTotal
US Dollars202120202019
M Ramos (Chairperson)359,350 92,000 — 451,350 202 107 
R Gasant (Lead independent director)179,900 116,500 — 296,400 223 193 
KOF Busia139,300 93,500 7,500 240,300 103 — 
AM Ferguson139,300 103,000 12,500 254,800 197 217 
AH Garner139,300 53,500 8,750 201,550 174 196 
N Magubane139,300 38,500 — 177,800 171 — 
MDC Richter139,300 103,000 7,500 249,800 209 230 
JE Tilk139,300 130,500 8,750 278,550 206 231 
Total fees for 20211,375,050 730,500 45,000 2,150,550 1,485 1,174 
(1)    Includes the annual base fee paid to Non-Executive Directors:NEDs as well as fees paid for special board meetings.
Non-Executive Directors’ fees and allowances
   
Figures in
thousands(1)

 
Figures in
thousands(1)

 
Director
fees

 
Committee
fees

 
Travel
allowance

 Total
 Total
 Total
US Dollars(1)
2018 2017
 2016
SM Pityana (Chairman)342,000
 87,750
 11,250
 441,000
 372
 378
AH Garner134,000
 38,500
 27,500
 200,000
 201
 200
MJ Kirkwood134,000
 79,000
 33,750
 246,750
 231
 249
NP January-Bardill134,000
 56,000
 7,500
 197,500
 180
 189
R Gasant134,000
 83,000
 12,500
 229,500
 182
 193
RJ Ruston134,000
 80,500
 46,250
 260,750
 212
 231
MDC Richter134,000
 67,500
 33,750
 235,250
 203
 200
DL Hodgson134,000
 47,000
 8,750
 189,750
 167
 176
AM Ferguson(2)
30,000
 10,000
 12,500
 52,500
 —
 —
Retired and resigned non-executive director(3)(4)
67,000
 28,500
 —
 95,500
 212
 256
Total1,377,000
 577,750
 193,750
 2,148,500
 1,960
 2,072

(1)
Directors’ compensation is disclosed in US dollars.
(2)
Director joined in 1 October 2018.
(3)
Director retired in May 2017.
(4)
Director resigned 15 May 2018.


Non-Executive Directors do not hold service contracts with the company.Company. Executive Directors do not receive payment of directors'directors’ fees or commitmentcommittee fees.

F - 69
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)

31    Related parties (continued)





Directors’ and Prescribed Officers’ interests in AngloGold Ashanti shares (continued)
The interests of directors, prescribed officers and their associates in the ordinary shares of the companyCompany at 31 December, which individually did not exceed 1% of the company’sCompany’s issued ordinary share capital, were:
31 December 2021
Beneficial holding
31 December 2020
Beneficial holding
31 December 2019
Beneficial holding
US DollarsDirectIndirectDirectIndirectDirectIndirect
Non-Executive directors
KOF Busia(1)
2,000 
AM Ferguson(1)
5,000 
MDC Richter(1)
10,300 9,300 — 9,300 — 
AH Garner(1)
17,500 17,500 — 17,500 — 
Total34,800 — 26,800 — 26,800 — 
Executive directors
A Calderon (1)(2)
4,690 — — — — — 
KC Ramon91,949 — 91,949 — 59,124 — 
Total96,639 — 91,949 — 59,124 — 
Prescribed officers
SD Bailey(1)
12,867 — 8,609 — 1,190 — 
GJ Ehm(2)
26,125 12,213 50,443 12,213 35,058 16,213 
L Eybers(2)
28,466 — 28,466 — 18,164 — 
S Ntuli6,421 — 6,421 — — — 
Total73,879 12,213 93,939 12,213 54,412 16,213 
Grand total205,318 12,213 212,688 12,213 140,336 16,213 
(1)Held on the New York stock exchange as American Depositary Shares (ADSs) (1 ADS is equivalent to 1 ordinary share)
 31 December 2018 31 December 2017 31 December 2016
 Beneficial holding Beneficial holding Beneficial holding
 Direct Indirect Direct Indirect Direct Indirect
Non-Executive Directors           
SM Pityana2,990
 

 2,990
 —
 2,990
 —
MDC Richter(1)
9,300
 

 7,300
 —
 7,300
 —
DL Hodgson1,500
 

 1,500
 —
 1,500
 —
MJ Kirkwood(1)
15,000
 

 15,000
 —
 15,000
 —
RJ Ruston(2)
—
 1,000
 —
 1,000
 —
 1,000
AH Garner(1)
17,500
 

 7,500
 —
 —
 —
Total46,290

1,000

34,290

1,000

26,790

1,000
Executive Directors           
KPM Dushnisky50,000
 —
 —
 —
 —
 —
S Venkatakrishnan—
 —
 236,468
 —
 213,423
 —
KC Ramon51,062
 —
 28,265
 —
 12,334
 —
Total101,062
 —
 264,733
 —
 225,757
 —
Company Secretary           
ME Sanz Perez26,204
 16,368
 13,994
 16,368
 7,921
 12,747
Total26,204
 16,368
 13,994
 16,368
 7,921
 12,747
Prescribed Officers           
CE Carter51,748
 —
 50,800
 —
 43,229
 —
GJ Ehm(2)
35,058
 16,213
 30,319
 16,213
 33,782
 —
L Eybers17,207
 —
 4,812
 —
 —
 —
DC Noko139,853
 —
 41,224
 —
 28,015
 —
CB Sheppard14,428
 —
 5,344
 —
 —
 —
TR Sibisi9,914
 —
 4,085
 —
 —
 —
Total268,208
 16,213
 136,584
 16,213
 105,026
 —
Grand total441,764
 33,581
 449,601
 33,581
 365,494
 13,747
(2)Held on the Australian securities exchange as CHESS Depositary Receipts (5 CDIs are equivalent to 1 ordinary share)

(1)
Held on the New York stock exchange as American Depositary Shares (ADSs) (1 ADS is equivalent to 1 ordinary share)
(2)
Held on the Australian stock exchange as CHESS Depositary Receipts (5 CDIs are equivalent to 1 ordinary share)


A register detailing Directors and Prescribed Officers’ interests in contracts is available for inspection at the company’sCompany’s registered and corporate office.


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)Subsequent to 31 December 2021

31    Related parties (continued)





Changes in Directors’Directors' and Prescribed Officers’Officers' interests in AngloGold Ashanti shares, excluding options and awards granted in terms of the group’s BSP and LTIP schemes,group's DSP scheme, after 31 December 2018 and up to 18 March 20192021 include:



Date of
transaction
Type of transaction
Number
of shares
Direct/Indirect
beneficial
holdings
holding
Executive Directors
KPM DushniskyExecutive Directors20 February 2019On-market purchase in respect of sign-on award40,877
Direct
KC Ramon21 February 20197 March 2022Off market exercise of vested share awards to retain 26,751 sharesOn-market purchase in respect of sign-on award50,000135,000
Direct
KC Ramon27 February 20197 March 2022On-market purchase of ordinary shares pursuant to the AngloGold Ashanti Co-Investment Plan6,320
Direct
On-market purchase of ordinary shares pursuant to the AngloGold Ashanti Co-Investment Plan8,475
Direct
On-market sale of ordinary shares to settlefund tax liability in relation to costs incurred in exercise of vested share awards23,2496,733
Direct
Company Secretary
ME Sanz PerezPrescribed officers27 February 2019On-market purchase of ordinary shares pursuant to the AngloGold Ashanti Co-Investment Plan5,742
Direct
M Godoy1 March 2022Off market award of the first tranche of the sign-on bonus to retain 32,643 shares48,309Direct
2 March 2022On-market sale of ordinary shares to settlefund tax liability in relation to costs incurred with the sign-on awards15,6662,613
Direct
28 February 2019On-market purchase of ordinary shares pursuant to the AngloGold Ashanti Co-Investment Plan4,555
Direct
On-market sale of ordinary shares to settle tax costs2,073
Direct
Prescribed Officers
CE Carter7 March 2019On-market purchase of ordinary shares pursuant to the AngloGold Ashanti Co-Investment Plan949
Direct
On-market sale of ordinary shares to settle tax costs427
Direct
L Eybers11 March 2019On-market purchase of ordinary shares pursuant to the AngloGold Ashanti Co-Investment Plan6,589
Direct
13 March 2019On-market sale of ordinary shares to settle tax costs2,998
Direct
18 March 2019On-market purchase of ordinary shares pursuant to the AngloGold Ashanti Co-Investment Plan3,609
Direct
On-market sale of ordinary shares to settle tax costs1,643
Direct
DC Noko27 February 2019On-market purchase of ordinary shares pursuant to the AngloGold Ashanti Co-Investment Plan5,303
Direct
1 March 2019On-market sale of ordinary shares to settle tax costs2,413
Direct
5 March 2019On-market purchase of ordinary shares pursuant to the AngloGold Ashanti Co-Investment Plan5,303
Direct
On-market purchase of ordinary shares pursuant to the AngloGold Ashanti Co-Investment Plan4,764
Direct
On-market sale of ordinary shares to settle tax costs4,581
Direct
CB Sheppard1 March 2019On-market purchase of ordinary shares pursuant to the AngloGold Ashanti Co-Investment Plan5,175
Direct
On-market sale of ordinary shares to settle tax costs2,355
Direct
15 March 2019On-market purchase of ordinary shares pursuant to the AngloGold Ashanti Co-Investment Plan4,008
Direct
On-market sale of ordinary shares to settle tax costs1,824
Direct
18 March 2019On-market purchase of ordinary shares pursuant to the AngloGold Ashanti Co-Investment Plan5,175
Direct
On-market sale of ordinary shares to settle tax costs2,355
Direct
TR Sibisi28 February 2019On-market purchase of ordinary shares pursuant to the AngloGold Ashanti Co-Investment Plan3,064
Direct
On-market sale of ordinary shares to settle tax costs1,395
Direct
1 March 2019On-market purchase of ordinary shares pursuant to the AngloGold Ashanti Co-Investment Plan3,120
Direct
On-market sale of ordinary shares to settle tax costs1,420
Direct




F - 70
Table of Contents


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(continued)





32    CONTRACTUAL COMMITMENTS AND CONTINGENCIES

US Dollars
Figures in millions202120202019
Capital commitments
Acquisition of tangible assets
Contracted for146 120 161 
Not contracted for547 367 426 
Authorised by the directors693 487 587 
Allocated to:
Project capital
- within one year337 216 288 
- thereafter64 71 162 
401 287 450 
Stay-in-business capital
- within one year292 200 117 
- thereafter— — 20 
292 200 137 
Share of underlying capital commitments of joint ventures included above4 12 2 
Purchase obligations
Contracted for
- within one year423 391 506 
- thereafter624 882 579 
1,047 1,273 1,085 
Operating Leases
 US Dollars
Figures in millions2018
 2017
 2016
      
Operating leases     
At 31 December 2018, the group was committed to making the following payments in respect of operating leases for, amongst others, the hire of plant and equipment and land and buildings. Certain contracts contain renewal options and escalation clauses for various periods of time.     
Expiry:     
- less than one year102
 45
 47
- between one and three years96
 38
 36
- thereafter67
 7
 5
 265
 90
 88

Operating lease charges included in profit before taxation amounts to $353m (2017: $247m; 2016: $198m).

Finance leases

The group has finance leases for plant and equipment and buildings. The leases for plant and equipment and buildings have terms of renewal but no purchase options. Future minimum lease payments under finance lease contracts together with the present value of the net minimum lease payments are as follows:
 
Minimum
payments

 
Present
value of
payments

 
Minimum
payments

 
Present
value of
payments

 
Minimum
payments

 
Present
value of
payments

US Dollars million2018 2017 2016
Less than one year12
 7
 14
 8
 12
 6
Between one and three years23
 16
 27
 18
 25
 15
Between three and five years17
 12
 24
 17
 26
 18
More than five years41
 26
 54
 35
 63
 38
Total minimum lease payments93
 61
 119
 78
 126
 77
Amounts representing finance charges(32) —
 (41) —
 (49) —
Present value of minimum lease payments61
 61
 78
 78
 77
 77
            
       US Dollars
Figures in millions      2018
 2017
 2016
            
Capital commitments           
Acquisition of tangible assets           
Contracted for      99
 87
 58
Not contracted for      792
 113
 587
Authorised by the directors      891
 200
 645
Allocated to:           
Project capital           
- within one year      446
 104
 252
- thereafter      308
 —
 255
       754
 104
 507
Stay-in-business capital           
- within one year      125
 84
 135
- thereafter      12
 12
 3
  137
 96
 138
Share of underlying capital commitments of joint ventures included above 91
 21
 138
Purchase obligations           
Contracted for           
- within one year      305
 274
 605
- thereafter      658
 424
 269
       963
 698
 874

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)

32    Contractual commitments and contingencies (continued)



Purchase obligations


Purchase obligations represent contractual obligations for the purchase of mining contract services, power, supplies, consumables, inventories, explosives and activated carbon.


To service these capital commitments, purchase obligations and other operational requirements, the group is dependent on existing cash resources, cash generated from operations and borrowing facilities.


Cash generated from operations is subject to operational, market and other risks. Distributions from operations may be subject to foreign investment, exchange control laws and regulations, and the quantity of foreign exchange available in offshore countries. In addition, distributions from joint ventures are subject to the relevant board approval.


The credit facilities and other finance arrangements contain financial covenants and other similar undertakings. To the extent that external borrowings are required, the group’sgroup's covenant performance indicates that existing financing facilities will be available to meet the commitments detailed above. To the extent that any of the financing facilities mature in the near future, the group believes that sufficient measures are in place to ensure that these facilities can be refinanced.


Contingencies
US Dollars
Figures in millions202120202019
Contingent liabilities
Litigation - Ghana(1)(2)
— 97 97 
— 97 97 



F - 71
 US Dollars
Figures in millions2018
 2017
 2016
Contingent liabilities     
Litigation - Ghana(1)(2)
97
 97
 97
Litigation - North America (3)
—
 —
 —
Tax disputes - Brazil (4)
21
 24
 15
Tax dispute - AngloGold Ashanti Colombia S.A.(5)
144
 150
 141
Groundwater pollution(6)
—
 —
 —
Deep groundwater pollution - Africa(7)
—
 —
 —
 262
 271
 253
Table of Contents
Contingent liabilitiesNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)


32    Contractual commitments and contingencies (continued)
Litigation claims


(1)
Litigation - On 11 October 2011, AngloGold Ashanti (Ghana) Limited (AGAG) terminated Mining and Building Contractors Limited’s (MBC) underground development agreement, construction on bulkheads agreement and diamond drilling agreement at Obuasi mine. The parties reached agreement on the terms of the separation and concluded a separation agreement on 8 November 2012. On 20 February 2014, AGAG was served with a demand issued by MBC claiming a total of $97m. In December 2015, the proceedings were stayed in the High Court pending arbitration. In February 2016, MBC submitted the matter to arbitration. On 12 July 2018, the Ghana Arbitration Centre notified AGAG that MBC had appointed an arbitrator and AGAG subsequently selected its own arbitrator.

(1)Litigation - On 11 October 2011, AngloGold Ashanti (Ghana) Limited (AGAG) terminated Mining and Building Contractors Limited’s (MBC) underground development agreement, construction on bulkheads agreement and diamond drilling agreement at Obuasi mine. The parties reached agreement on the terms of the separation and concluded a separation agreement in November 2012. In February 2014, AGAG was served with a demand issued by MBC claiming a total of $97m. In December 2015, the proceedings were stayed in the High Court pending arbitration. In February 2016, MBC submitted the matter to arbitration. The arbitration panel was constituted and held an arbitration management meeting to address initial procedural matters in July 2019. In May 2020, the Ghana Arbitration Centre granted MBC’s request to stay the arbitral proceedings indefinitely to enable it and AGAG to explore a possible settlement. On 12 April 2021, the parties executed a settlement agreement to resolve the matter at no cost to either of the parties.
(2)
Litigation - AGAG received a summons on 2 April 2013 from Abdul Waliyu and 152 others in which the plaintiffs allege that they were or are residents of the Obuasi municipality or its suburbs and that their health has been adversely affected by emission and/or other environmental impacts arising in connection with the current and/or historical operations of the Pompora Treatment Plant (PTP), which was decommissioned in 2000. The plaintiffs’ alleged injuries include respiratory infections, skin diseases and certain cancers. The plaintiffs subsequently did not timely file their application for directions, but AGAG intends to allow some time to pass prior to applying to have the matter struck out for want of prosecution.

(2)Litigation - AGAG received a summons on 2 April 2013 from Abdul Waliyu and 152 others in which the plaintiffs allege that they were or are residents of the Obuasi municipality or its suburbs and that their health has been adversely affected by emission and/or other environmental impacts arising in connection with the current and/or historical operations of the Pompora Treatment Plant (PTP), which was decommissioned in 2000. The plaintiffs’ alleged injuries include respiratory infections, skin diseases and certain cancers. The plaintiffs subsequently did not timely file their application for directions. On 24 February 2014, executive members of the PTP (AGAG) Smoke Effect Association (PASEA), sued AGAG by themselves and on behalf of their members (undisclosed number) on grounds similar to those discussed above, as well as economic hardships as a result of constant failure of their crops. This matter has been adjourned indefinitely. AGAG intends to allow some time to pass prior to applying to have the matter struck out for want of prosecution. In view of the limitation of current information for the accurate estimation of a liability, no reliable estimate can be made for AGAG’s obligation in either matter.

(3)
Litigation - On 19 October 2017, Newmont Mining Co. filed a lawsuit in the United States District Court for the Southern District of New York against AngloGold Ashanti and certain related parties, alleging that AngloGold Ashanti and such parties did not provide Newmont with certain information material to its purchase of the Cripple Creek & Victor Gold Mining Company in 2015 during the negotiation- and-sale process.  AngloGold Ashanti believes the lawsuit is without merit and continues to vigorously

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)

32    Contractual commitments and contingencies (continued)

defend against it. The matter is proceeding. In view of the limitation of current information for the accurate estimation of a liability, no reliable estimate can be made for the obligation.AGAG’s obligation in either matter.


Tax claims

(4)
Tax disputes - AngloGold Ashanti Limited’s subsidiaries in Brazil are involved in various disputes with tax authorities. These disputes involve federal tax assessments including income tax, royalties, social contributions, VAT and annual property tax. Collectively, the possible amount involved is approximately $21m (2017: $24m, 2016: $15m). Management is of the opinion that these taxes are not payable.

(5)
Tax dispute - In January 2013, AngloGold Ashanti Colombia S.A. (AGAC) received notice from the Colombian Tax Office (DIAN) that it disagreed with the company’s tax treatment of certain items in the 2010 and 2011 income and equity tax returns. On 23 October 2013, AGAC received the official assessments from the DIAN which established that an estimated additional tax of $20m (2017: $21m, 2016: $21m) will be payable if the tax returns are amended. Penalties and interest for the additional taxes may amount to $115m (2017: $129m, 2016: $120m).The Company believes that the DIAN has applied the tax legislation incorrectly. AGAC subsequently challenged the DIAN’s ruling by filing lawsuits in March 2015 and April 2015 before the Administrative Tribunal of Cundinamarca (the trial court for tax litigation). Closing arguments on the tax disputes were presented in February and June 2017 and judgement is pending. On 23 April 2018, the Administrative Tribunal denied AGAC’s arguments with respect to the 2011 income tax litigation. AGAC subsequently appealed this judgement to the Colombian Supreme Court.  A final judgement could take several years.  In addition, in January 2018 AGAC received notice from the DIAN that it also disagreed with AGAC’s 2013 income and equity tax returns on the same basis as the 2010 and 2011 returns, calculating additional tax along with penalties and interest of $9m. On 21 December 2018, AGAC filed an appeal before the Administrative Tribunal in respect of the 2013 year of assessment.



For a discussion on tax claims and tax uncertainties refer to note 10.
Other

(6)
Groundwater pollution - AngloGold Ashanti has identified groundwater contamination plumes at certain of its operations, which have occurred primarily as a result of seepage from mine residue stockpiles. Numerous scientific, technical and legal studies have been undertaken to assist in determining the magnitude of the contamination and to find sustainable remediation solutions. The group has instituted processes to reduce future potential seepage and it has been demonstrated that Monitored Natural Attenuation (MNA) by the existing environment will contribute to improvements in some instances. Furthermore, literature reviews, field trials and base line modelling techniques suggest, but have not yet proven, that the use of phyto-technologies can address the soil and groundwater contamination. Subject to the completion of trials and the technology being a proven remediation technique, no reliable estimate can be made for the obligation.

(7)
Deep groundwater pollution - The group has identified potential water ingress and future pollution risk posed by deep groundwater in certain underground mines in Africa. Various studies have been undertaken by AngloGold Ashanti since 1999 to understand this potential risk.  In South Africa, due to the interconnected nature of mining operations, any proposed solution needs to be a combined one supported by all the mines located in these gold fields. As a result, the Mineral and Petroleum Resources Development Act (MPRDA) requires that the affected mining companies develop a Regional Mine Closure Strategy to be approved by the Department of Mineral Resources. In view of the limitation of current information for the accurate estimation of a liability, no reliable estimate can be made for the obligation.









F - 72
Table of Contents

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS


33FINANCIAL RISK MANAGEMENT ACTIVITIES


In the normal course of its operations, the group is exposed to gold price, other commodity price, foreign exchange, interest rate, liquidity, equity price (deemed to be immaterial) and credit risks. In order to manage these risks, the group may enter into transactions which make use of both on- and off-balance sheet derivatives. The group does not acquire, hold or issue derivatives for speculative purposes. The group has developed a comprehensive risk management process to facilitate, control and monitor these risks. The board has approved and monitors this risk management process, inclusive of documented treasury policies, counterparty limits and controlling and reporting structures.


Managing risk in the group


Risk management activities within the group are the ultimate responsibility of the board of directors. The Chief Financial Officer is responsible to the board of directors for the design, implementation and monitoring of the risk management plan. The Audit and Risk Committee is responsible for overseeing risk management plans and systems, as well as financial risks which include a review of treasury activities and the group’s counterparties.


The financial risk management objectives of the group are defined as follows:
•safeguarding the group’s core earnings stream from its major assets through the effective control and management of gold price risk, other commodity risk, foreign exchange risk and interest rate risk;
•effective and efficient usage of credit facilities in both the short and long-term through the adoption of reliable liquidity management planning and procedures;
•ensuring that investment and hedging transactions are undertaken with creditworthy counterparties; and
•ensuring that all contracts and agreements related to risk management activities are co-ordinated, consistent throughout the group and that they comply where necessary with all relevant regulatory and statutory requirements.


Gold price and foreign exchange risk


Gold price risk arises from the risk of an adverse effect on current or future earnings resulting from fluctuations in the price of gold. The group has transactional foreign exchange exposures, which arise from sales or purchases by an operating unit in currencies other than the unit’sunit's functional currency. The gold market is predominately priced in US dollars which exposes the group to the risk thatof fluctuations in the SA rand/US dollar, Brazilian real/US dollar, Argentinean peso/US dollar and Australian dollar/US dollar exchange rates may also have an adverse effect on current or future earnings. The group is also exposed to certain by-product commodity price risk.rates.



Net open hedge position as at 31 December 2021


The group has the following cashhad no commitments against future production potentially settled zero-cost collar commitments for the period ended 31 December 2018.in cash.


Gold
In December 2018, AngloGold Ashanti entered into zero-cost collars for a total of 300,000 ounces of South Africa’s gold production, for the period January 2019 to December 2019. The strike prices are R545,000 per kilogram on the floor and an average price of R725,500 per kilogram on the cap. At 31 December 2018, the mark-to-market value of the derivative was an unrealised loss of $3.6m.

Oil
In November 2018, AngloGold Ashanti entered into zero-cost collars for a total of 984,000 barrels of Brent crude oil for the period January 2019 to December 2019. The average strike prices are $56.56 per barrel on the floor and an average price of $82 per barrel on the cap. At 31 December 2018, the mark-to-market value of the derivative was an unrealised loss of $5.6m.


Interest rate and liquidity risk


The group manages liquidity risk by ensuring that there isit has sufficient committed borrowing and banking facilities after taking into consideration the actual and forecast cash flows, in order to meet the group's short, medium and long term funding and liquidity management requirements.


In the ordinary course of business, the group receives cash from the proceeds of its gold sales and is required to fund its working capital and capital expenditure requirements. This cash is managed to ensure surplus funds are invested in a manner to achieve market-related returns whilst minimising risks. The group is able to actively source financing at competitive rates. The counterpartiescounter parties are financial and banking institutions and their credit ratings are regularly monitored.


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)

33    Financial risk management activities (continued)


The group has sufficient undrawn borrowing facilities available to fund its working capital and capital requirements (notes 24 and 34).
F - 73
Table of Contents
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)

33FINANCIAL RISK MANAGEMENT ACTIVITIES (continued)

The following are the contractual maturities of financial liabilities, including interest payments:payments, are as follows:


Financial liabilities
Within one yearBetween
one and two
years		Between
two and five years		After five yearsTotal
2021$ millionsEffective
rate %		$ millionsEffective
rate %		$ millionsEffective
rate %		$ millionsEffective
rate %		$ millions
Trade and other payables647 7 — — 654 
Borrowings119 115 332 2,169 2,735 
- In USD113 4.3 76 4.2 280 4.1 2,169 4.1 2,638 
- In AUD— 1.5 33 1.5 — — — — 33 
- TZS in USD equivalent6 12.5 6 12.5 52 12.5 — — 64 
2020
Trade and other payables627 8 — — 635 
Borrowings205 901 137 1,414 2,657 
- In USD158 5.0 901 5.0 137 4.6 1,414 4.6 2,610 
- TZS in USD equivalent47 12.5 — — — — — — 47 
2019
Trade and other payables586 15 — — 601 
Borrowings802 185 1,012 602 2,601 
- In USD790 5.8 132 6.0 913 6.1 602 6.5 2,437 
- AUD in USD equivalent— 2.3 — 2.3 22 2.3 — — 22 
- TZS in USD equivalent6 12.5 47 12.5 — — — — 53 
- ZAR in USD equivalent6 8.1 6 8.1 77 8.1 — — 89 

  Within one year 
Between
one and two
years
 
Between
two and five years
 After five years Total
2018 $ millions
 
Effective
rate %
 $ millions
 
Effective
rate %
 $ millions
 
Effective
rate %
 $ millions
 
Effective
rate %
 $ millions
Trade and other payables 562
   —
   —
   —
   562
Gold and oil derivative contracts 9
   —
   —
   —
   9
Borrowings 133
   836
   1,120
   663
   2,752
- In USD 112
 5.8 790
 5.8 1,025
 6.0 622
 6.5 2,549
- AUD in USD equivalent 7
 6.8 7
 6.8 23
 6.8 26
 6.8 63
- TZS in USD equivalent 5
 12.5 3
 12.5 29
 12.5 —
 — 37
- ZAR in USD equivalent 9
 9.0 36
 9.0 43
 9.7 15
 14.7 103
2017                 
Trade and other payables 615
   —
   —
   —
   615
Borrowings 137
   343
   1,912
   695
   3,087
- In USD 98
 5.4 145
 5.4 1,643
 5.5 641
 6.5 2,527
- AUD in USD equivalent 16
 5.1 174
 5.1 25
 6.8 38
 6.8 253
- ZAR in USD equivalent 23
 8.9 24
 8.9 244
 9.1 16
 15.5 307
2016                 
Trade and other payables 596
   —
   —
   —
   596
Borrowings 127
   287
   1,155
   1,513
   3,082
- In USD 100
 5.4 100
 5.4 1,023
 5.5 1,449
 5.5 2,672
- AUD in USD equivalent 16
 5.4 89
 5.3 119
 6.0 43
 6.8 267
- ZAR in USD equivalent 11
 8.9 98
 8.9 13
 11.2 21
 14.0 143
The table below provides a breakdown of the contractual maturities including interest payments of the lease liabilities.
Within one yearBetween one and two yearsBetween two and five yearsAfter five yearsTotal
2021$ millionsEffective rate %$ millionsEffective rate %$ millionsEffective rate %$ millionsEffective rate %$ millions
Lease liabilities68 50 74 10 202 
  - In USD32 2.3 19 2.3 13 2.3 — — 64 
  - AUD in USD equivalent24 4.6 23 4.6 51 4.6 10 4.6 108 
  - BRL in USD equivalent10 11.0 7 11.0 6 11.0 — — 23 
  - ZAR in USD equivalent2 5.9 1 5.9 4 5.9 — — 7 
2020
Lease liabilities42 31 68 19 160 
  - In USD10 6.1 4 6.1 6 6.1 — — 20 
  - AUD in USD equivalent22 4.7 21 4.7 58 4.7 19 4.7 120 
  - BRL in USD equivalent7 8.4 5 8.4 4 8.4 — — 16 
  - ZAR in USD equivalent3 9.8 1 9.8 — — — — 4 
2019
Lease liabilities51 33 54 56 194 
- In USD22 7.0 4 7.0 8 7.0 1 7.0 35 
- AUD in USD equivalent22 3.5 22 3.5 42 3.5 55 3.5 141 
- BRL in USD equivalent3 6.8 3 6.8 3 6.8 — — 9 
- ZAR in USD equivalent4 9.8 4 9.8 1 9.8 — — 9 


Credit risk


Credit risk arises from the risk that a counterparty may default or not meet its obligations timeously. The group minimises credit risk by ensuring that credit risk is spread over a number of counterparties. These counterparties are financial and banking institutions. Counterparty credit limits and exposures are reviewed by the Audit and Risk Committee. Where possible, management ensures that netting agreements are in place. No set-off is applied to the statement of financial position due to the different maturity profiles of assets and liabilities.


F - 74
Table of Contents
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)

33FINANCIAL RISK MANAGEMENT ACTIVITIES (continued)

The combined maximum credit risk exposure of the group is as follows:
US Dollars
Figures in millions202120202019
Other investments (1)
1 2 67 
Trade and other receivables87 95 57 
Cash restricted for use (note 21)58 73 64 
Cash and cash equivalents (note 22)1,154 1,330 456 
Total financial assets1,300 1,500 644 
(1) Included in other investments are amounts transferred to held for sale nil (2020 : nil; 2019: $63m).
  US Dollars
Figures in millions 2018
 2017
 2016
       
Other investments 59
 58
 79
Trade and other receivables 41
 33
 46
Cash restricted for use (note 21) 66
 65
 55
Cash and cash equivalents (note 22) 329
 205
 215
Total financial assets 495
 361
 395


Trade and other receivables, that are past due but not impaired totalled $22m (2017: $20m; 2016: $9m). Other investments that are impaired totalled nil (2017: $3m; 2016: nil)$18m (2020: $12m; 2019: $15m).


Trade receivables mainly comprise banking institutions purchasing gold bullion. Normalbullion and normal market settlement terms are two working days.days, therefore expected credit losses are not expected to be material.


The group does not generally obtain collateral or other security to support financial instruments subject to credit risk, but monitors the credit standing of counterparties.


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)The maximum exposure to credit risk for all other financial instruments are approximated by their carrying values.

33    Financial risk management activities (continued)


Fair value of financial instruments


The estimated fair values of financial instruments are determined at discrete points in time based on relevant market information.


The estimated fair value of the group’s other investments and borrowings as at 31 December are as follows:


Type of instrument
Carrying
amount		Fair
value		Carrying
amount		Fair
value		Carrying
amount		Fair
value
Figures in millions - US Dollars202120202019
Financial assets
Other investments (1)
117 117 188 188 170 170 
Financial liabilities
Borrowings (note 24)1,909 2,011 1,931 2,131 2,033 2,135 
(1) Included in other investments are amounts transferred to held for sale nil (2020: nil; 2019: $84m)
  
Carrying
amount

 
Fair
value

 
Carrying
amount

 
Fair
value

 
Carrying
amount

 
Fair
value

US Dollar millions 2018 2017 2016
Financial assets            
Other investments (note 18) 147
 147
 138
 140
 130
 132
Financial liabilities            
Borrowings (note 25) 2,050
 2,084
 2,268
 2,377
 2,178
 2,203


The following methods and assumptions were used to estimate the fair value of each class of financial instrument:


Cash restricted for use, cash and cash equivalents, trade, other receivables and other receivablesassets and trade and other payables
The carrying amounts approximate fair value due to their short term nature.


Other Investments and other non-current assets
Listed equity investments classified as FVTOCI and FVTPL are carried at fair value in level 1 of the fair value hierarchy while fixed income investments and other non-current assets are carried at amortised cost. The fair value of fixed income investments has been calculated using market interest rates at the hierarchy level 2.hierarchy.


Borrowings
The rated bonds are carried at amortised cost and their fair values are their closing market values at the reporting date (fair value hierarchy - level 1). The interest rate on the remaining borrowings is resetset on a short-term floating rate basis, and accordingly the carrying amount is considered to approximate fair value.


Fair value hierarchy
The group uses the following hierarchy for determining and disclosing the fair value of financial instruments:
Level 1:quoted prices (unadjusted) in active markets for identical assets or liabilities;
Level 2:inputs other than quoted prices included in level 1 that are observable for the asset or liability, either directly (as prices) or indirectly (derived from prices); and
Level 3:inputs for the asset or liability that are not based on observable market data (unobservable inputs).

Level 1:    quoted prices (unadjusted) in active markets for identical assets or liabilities;
Level 2:    inputs other than quoted prices included in level 1 that are observable for the asset or liability, either directly (as prices) or indirectly (derived from prices); and
Level 3:    inputs for the asset or liability that are not based on observable market data (unobservable inputs).

F - 75
Table of Contents
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)

33FINANCIAL RISK MANAGEMENT ACTIVITIES (continued)

The following table sets out the group’s financial assets measured at fair value by level within the fair value hierarchy as at 31 December:


Type of instrument
Assets measured at fair value on a recurring basis
Figures in millions - US DollarsLevel 1Level 2Level 3Total
2021
Equity securities - FVTOCI116 — — 116 
Deferred compensation asset— — 25 25 
2020
Deferred compensation asset— — 28 28 
Equity securities - FVTOCI186 — — 186 
2019
Equity securities - FVTOCI82— — 82
Equity securities - FVTPL21 — — 21 

Level 3 financial assets
On 12 February 2020, AngloGold Ashanti announced that it had reached an agreement to sell its remaining South African producing assets and related liabilities to Harmony Gold Mining Company Limited ("Harmony"). The transaction closed on 30 September 2020, with Harmony taking effective control of these producing assets and related liabilities on 1 October 2020. Consideration for the transaction is in cash and deferred payments, subject to subsequent performance, and with additional proceeds if the West Wits assets are developed below current infrastructure.

The two components of the deferred compensation assets are calculated as follows:
a.$260 per ounce payable on all underground production sourced within the West Wits mineral rights (comprising the Mponeng, Savuka and TauTona mines) in excess of 250,000 ounces per annum for 6 years commencing 1 January 2021. Using a probability weighted calculation of unobservable market data and estimated with reference to expected underlying discounted cash flows a deferred compensation asset of $25m is recognised in the statement of financial position as at 31 December 2021.

b. $20 per ounce payable on underground production sourced within the West Wits mineral rights (comprising the Mponeng, Savuka and TauTona mines) below the datum of current infrastructure. At transaction date this constituted 8.53 million ounces of Mineral Reserve. The consideration is dependent on Harmony developing below infrastructure. The performance of this obligation is outside the influence of AngloGold Ashanti as it depends on Harmony’s future investment decisions. Under the conditions prevailing as at 31 December 2021, no portion of deferred compensation below infrastructure has been included in the deferred compensation asset.
F - 76
US Dollar millions Level 1 Level 2 Level 3 Total
  2018
         
Equity securities - FVTPL 19
 —
 —
 19
Equity securities - FVTOCI 69
 —
 —
 69
     
  2017
Equity securities - available-for-sale
 80
 —
 —
 80
  2016
         
Equity securities - available-for-sale
 51
 —
 —
 51
Table of Contents


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)


33    Financial risk management activities (continued)FINANCIAL RISK MANAGEMENT ACTIVITIES (continued)

Reconciliation of deferred compensation asset

A reconciliation of the deferred compensation asset included in the statement of financial position is set out in the following table:
Figures in millions - US Dollars2021
Opening balance28 
Unwinding of the deferred compensation asset2 
Changes in estimates - fair value adjustments (1)
(3)
Translation(2)
Closing balance (2)
25 
(1) Included in the Income statement in foreign exchange and fair value adjustments
(2) Included in the Statement of financial position in non-current trade, other receivables and other assets    
Sensitivity analysis
The table below illustrates the impact on the fair value of the deferred compensation asset resulting from an increase / decrease in production estimates over the remaining period used in the weighted probability calculation.
Percentage
change in
number of
ounces		Change in
deferred
compensation
asset
$m
Effect of changes in assumptions
Increase in number of ounces+10%3 
Decrease in number of ounces-10%(3)
The sensitivity on the weighted number of ounces included within the weighted probability calculation has been based on the range of possible outcomes expected from Harmony’s mining plans, which could differ from the actual mining plans followed by Harmony.


Environmental obligations


Pursuant to environmental regulations in the countries in which we operate, in connection with planning for end-of-life of our mines, we are obligated to close our operations and rehabilitate the lands which we mine in accordance with these regulations. As a consequence,where such mines are located. In most cases, AngloGold Ashanti is required in some circumstances to provide either reclamationsfinancial guarantees for such work, including reclamation bonds or letters of credit issued by third party entities, establish independent trust funds or provide guarantees issuedcash reserves maintained by the operation, to the respective environmental protection agency, or such other government department with responsibility for environmental oversight in the respective country, to cover the potentialestimated environmental rehabilitation obligation in specified amounts.obligations.


In most cases, the environmental obligations will expire on completion of the rehabilitation although, in some cases, we aremay be required to potentially post bonds for potential events unknownor conditions that maycould arise after the rehabilitation has been completed.


In South Africa, AngloGold Ashanti has established a trust fund which has assets of ZAR 1.077bn and guarantees of ZAR 0.549bn issued by various banks, for a current carrying value of the liability of ZAR 0.796bn. In Australia, since 2014, the group haswe have paid an amount of AUD $5.5m into a Mine Rehabilitation Fund an amount of AUD $10m for a current carrying value of the liability of AUD $125.5m.$138m. At Iduapriem, the group haswe have provided a bond comprising of a cash component of $9.99m$11m with a further bond guarantee amounting to $36.4m$39m issued by EcobankABSA Bank Ghana limited, United Bank for Africa (Ghana) Limited and BarclaysStandard Chartered Bank Ghana LimitedLtd for a current carrying value of the liability of $42.8m.$54m. At Obuasi, the group haswe have provided a bond comprising of a cash component of $20.6m$21m with a further bank guarantee amounting to $30m issued by Nedbankamongst Stanbic Bank Ghana Limited for $13m and Standard Chartered Bank Ghana PLC (SCB) for $17m for a current carrying value of the liability of $163.2m.$217m. In some circumstances the groupwe may be required to post further bonds in future yearsdue course which will have a consequential income statement charge for the fees charged by the providers of the reclamation bonds.

F - 77
Table of Contents
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)

33FINANCIAL RISK MANAGEMENT ACTIVITIES (continued)

Sensitivity analysis
Interest rate risk on other financial assets and liabilities (excluding derivatives)
The group also monitors interest rate risk on other financial assets and liabilities.
The following table shows the approximate interest rate sensitivities of other financial assets and liabilities at 31 December (actual changes in the timing and amount of the following variables may differ from the assumed changes below). As the sensitivity is the same (linear) for both increases and decreases in interest rates only absolute numbers are presented. The expected impact on the Group's profit or loss and equity is fairly reflected within the "Change in interest" amount.
Change in interest
rate
basis points		Change in interest
amount
in currency
millions		Change in interest
amount
US dollar
millions
2021
Financial assets
USD denominated1003 3 
AUD denominated1501 1 
CAD denominated1004 5 
Financial liabilities
TZS denominated2502,692 1 
AUD denominated1501 1 
USD denominated1001 1 
Change in interest
rate
basis points		Change in interest
amount
in currency
millions		Change in interest
amount
US dollar
millions
2020
Financial assets
USD denominated1006 6 
AUD denominated1501 1 
ARS denominated250121 1 
Financial liabilities
TZS denominated2502,730 1 
USD denominated1001 1 
Change in interest
rate
basis points		Change in interest
amount
in currency
millions		Change in interest
amount
US dollar
millions
2019
Financial assets
USD denominated1001 1 
ZAR denominated1501 1 
Financial liabilities
TZS denominated2502,704 1 
ZAR denominated(1)
15015 1 
AUD denominated1001 1 

(1) This is the only interest rate for the Company



F - 78
  
Change in interest
rate
basis points

 
Change in interest
amount
in currency
millions

 
Change in interest
amount
US dollar
millions

  2018
Financial assets      
USD denominated 100
 1
 1
AUD denominated 150
 1
 1
BRL denominated 250
 2
 1
Financial liabilities      
TZS denominated 250
 1,680
 1
ZAR denominated(1)
 150
 14
 1
USD denominated 100
 1
 1
       
Table of Contents


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)


33    Financial risk management activities (continued)FINANCIAL RISK MANAGEMENT ACTIVITIES (continued)

  
Change in interest
rate
basis points

 
Change in interest
amount
in currency
millions

 
Change in interest
amount
US dollar
millions

  2017
Financial assets      
USD denominated 100
 1
 1
ZAR denominated(1)
 150
 2
 —
Financial liabilities      
ZAR denominated(1)
 150
 41
 3
AUD denominated 100
 3
 2

  
Change in interest
rate
basis points

 
Change in interest
amount
in currency
millions

 
Change in interest
amount
US dollar
millions

  2016
Financial liabilities      
ZAR denominated(1)
 150
 18
 1
AUD denominated 100
 2
 1
USD denominated 100
 1
 1

A change of 100 basis points in financial assets results in less than a $1m change in the interest amount.

(1) This is the only interest rate risk for the company.

Sensitivity analysis (continued)


Foreign exchange risk


Foreign exchange risk arises on financial instruments that are denominated in a foreign currency.


The following table discloses the approximate foreign exchange risk sensitivities of borrowings at 31 December (actual changes in the timing and amount of the following variables may differ from the assumed changes below).
Change in
exchange rate		Change in
borrowings
total		Change in
exchange rate		Change in
borrowings
total		Change in
exchange rate		Change in
borrowings
total
US$ MillionUS$ MillionUS$ Million
202120202019
Borrowings
ZAR denominated (R/$)Spot (+R1.50)— Spot (+R1.50)— Spot (+R1.50)(7)
TZS denominated (TZS/$)Spot (+TZS250)(5)Spot (+TZS250)(5)Spot (+TZS250)(5)
AUD denominated (AUD/$)Spot (+AUD0.1)(2)Spot (+AUD0.1)— Spot (+AUD0.1)(1)
ZAR denominated (R/$)Spot (-R(1.5))— Spot (-R(1.5))— Spot (-R(1.50))9 
TZS denominated (TZS/$)Spot (-TZS(250))6 Spot (-TZS(250))6 Spot (-TZS(250))6
AUD denominated (AUD/$)Spot (-AUD(0.1))2 Spot (-AUD(0.1))— Spot (-AUD(0.1))1 
  Change in
exchange rate		 Change in
borrowings
total
 Change in
exchange rate		 Change in
borrowings
total
 Change in
exchange rate		 Change in
borrowings
total
   US$ Million
  US$ Million
  US$ Million
  2018 2017 2016
Borrowings            
ZAR denominated (R/$) Spot (+R1.50) (7) Spot (+R1.50) (26) Spot (+R1.50) (10)
TZS denominated (TZS/$) Spot (+TZS250) (3)        
AUD denominated (AUD/$) Spot (+AUD0.1) (3) Spot (+AUD0.1) (16) Spot (+AUD0.1) (15)
ZAR denominated (R/$) Spot (-R1.50) 9
 Spot (-R1.50) 33
 Spot (-R1.50) 13
TZS denominated (TZS/$) Spot (-TZS250) 4
        
AUD denominated (AUD/$) Spot (-AUD0.1) 4
 Spot (-AUD0.1) 19
 Spot (-AUD0.1) 18


The borrowings total in the denominated currency will not be influenced by a movement in its exchange rate.

F - 79
Table of Contents


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)






34    CAPITAL MANAGEMENT


The primary objective of managing the group's capital is to ensure that there is sufficient capital available to support the funding requirements of the group, including capital expenditure, in a way that optimises the cost of capital, maximises shareholders' returns and ensures that the group remains in a sound financial position.


The capital structure of the group consists of net debt (borrowings as detailed in note 24, offset by cash and bank balances detailed in note 22) and equity of the group (comprising share capital and premium and accumulated reserves and non-controlling interests).


The group manages and makes adjustments to the capital structure as opportunities arise in the market place, as and when borrowings mature, or as and when funding is required. This may take the form of raising equity, market or bank debt or hybrids thereof.


The group manages capital using various financial metrics including the ratio of Adjusted net debt to Adjusted EBITDA (gearing). Both the calculation of Adjusted net debt and Adjusted EBITDA are based on the formula included in the Revolving Credit Agreements. The loan covenant ratio of Adjusted net debt to Adjusted EBITDA should not exceed 3.5 times. The facility also makes provision for the ability of the group to have a leverage ratio of greater than 3.5 times but less than 4.5 times, subject to certain conditions, for one measurement period not exceeding six months, during the tenor of the facility.


The group had no major issuance of equity during the year.


A full analysis of the borrowings as presented on the statement of financial position is included in note 24. During October and November 2021 the $750m rated bonds due 2022 issued during July 2012, were redeemed. During October 2021 the Company concluded a 7-year $750m bond offering, priced at 3.375% per annum due 2028. The bonds were issued on 22 October 2021 with interest accruing from that date. Coupons are payable on a semi-annual basis payable in May and November each year and the bonds are repayable on 1 November 2028.

The $300m, $700m and the new $750m rated bonds are fully and unconditionally guaranteed by AngloGold Ashanti Limited registered a R10bn Domestic Medium Term Note Programme (DMTNP) with the JSE in April 2011, which was updated in December 2018 to comply with the new JSE debt listing requirements. The DMTNP permits the group to access the South African debt capital market for funding required. The group has not utilised the commercial paper under its R10bn DMTNP during the current year, instead it made use of its other facilities, to provide for funding requirements of the South Africa region.Limited.


During April 2018,December 2021, the group entered into a new syndicated three-year unsecured multi-currency revolving credit facility of $115m with Nedbank Ltd.$150m. Facility A is a US dollardollar- based facility with interest charged at a margin of 6.7% above LIBOR and facility B is a Tanzanian Shilling facility capped at the approximate equivalent of $45m$87m with interest charged at a margin of 5% plus a reference rate as determined by the lending agent.
During October 2018, the group entered into a new five-year unsecured multi-currency syndicated revolving credit The facility of $1.4bn with a group of banks. The loan consists of a US dollar based facility with interest chargedis repayable at a margin of 1.45% above LIBOR and an Australian dollar based facility capped at A$500m with interest charged at a margin of 1.45% above BBSY. The applicable margin is subject to a ratings grid. This facility replaces the $1bn RCF and A$500m RCF, which were both available until July 2019, however, cancelled during October 2018.
A full analysis of the borrowings as presentedeither 26 August 2024 or 17 December 2024 depending on the statementfulfilment of financial positioncertain conditions in included in note 24. In addition, the $750m, $700m and $300m rated bonds are fully and unconditionally guaranteed by the group.borrowing agreement.


The interest margin on the five-year unsecured multi-currency syndicated revolving credit facility of $1.4bn with a group of banks will reduce should the group’s credit rating improve from its current BB+/Baa3 status and should increase if its credit rating worsens. The A$500m portion of this facility will be used to fund the working capital and development costs associated with the group's mining operations within Australia without eroding the group's headroom under its other facilities and exposing the group to foreign exchange gains/losses each quarter.losses.


The R1bn, R1.4bn and R2.5bn unsecured syndicated revolving credit facilities will be used to fund the working capital and development costs associated with the group's operations within South Africa without eroding the group's headroom under its other facilities and exposing the group to foreign exchange gains/losses each quarter.


Amounts are converted to US dollarsdollar at year end exchange rates.

F - 80
Table of Contents

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)


34    Capital Management (continued)


Gearing ratio (Net(Adjusted Net debt to Adjusted EBITDA)
US Dollars
Figures in millions202120202019
Adjusted net debt from continuing operations
Borrowings - non-current portion (note 24)1,858 1,789 1,299 
Lease liabilities - non-current portion (note 14)124 116 126 
Borrowings - current portion (note 24)51 142 734 
Lease liabilities - current portion (note 14)61 37 45 
Total borrowings2,094 2,084 2,204 
Less: cash and cash equivalents (note 22)(1,154)(1,330)(456)
Net debt940 754 1,748 
Adjustments:
IFRS16 lease adjustments(149)(106)(119)
Unamortised portion of borrowing costs32 22 16 
Cash restricted for use (note 21)(58)(73)(64)
Adjusted net debt765 597 1,581 
The Adjusted EBITDA calculation included in this note is based on the formula included in the Revolving Credit Agreements for compliance with the debt covenant formula.
Adjusted EBITDA from continuing operations
Profit (loss) before taxation958 1,589 619 
Add back:
Finance costs and unwinding of obligations (note 6)116 177 172 
Interest income(58)(27)(14)
Amortisation of tangible, intangible and right of use assets (note 4)477 570 583 
Other amortisation4 6 6 
Associates and joint ventures’ adjustments for amortisation, interest and taxation183 168 149 
EBITDA1,680 2,483 1,515 
Adjustments:
Foreign exchange and fair value adjustments43 — 12 
Dividend income— (2)— 
Retrenchment and related costs20 2 7 
Care and maintenance costs (note 5)45 — 47 
Impairment, derecognition of assets and (profit) loss on disposal(11)1 6 
Profit on disposal of joint ventures— (19)— 
Premium on settlement of bonds24 — — 
Loss (gain) on non-hedge derivatives and other commodity contracts— 5 (5)
Associates and joint ventures’ share of costs— — (2)
Adjusted EBITDA (as defined in the Revolving Credit Agreements)1,801 2,470 1,580 
Gearing ratio (Adjusted net debt to Adjusted EBITDA)0.42:10.24:11.00:1
Maximum debt covenant ratio allowed per agreement3.5:13.5:13.5:1

F - 81
 US Dollars
Figures in millions2018
 2017
 2016
      
Borrowings (note 24)2,050
 2,268
 2,178
Corporate office lease (note 24)(9) (15) (15)
Unamortised portion of rated bonds13
 18
 23
Cash restricted for use (note 21)(66) (65) (55)
Cash and cash equivalents (note 22)(329) (205) (215)
Net debt1,659
 2,001
 1,916
The Adjusted EBITDA calculation included in this note is based on the formula included in the Revolving Credit Facility Agreements for compliance with the debt covenant formula.     
Adjusted EBITDA     
Profit (loss) before taxation278
 (63) 269
Add back:
 
 
Finance costs and unwinding of obligations (note 7)178
 169
 180
Interest income(17) (15) (22)
Amortisation of tangible and intangible assets (note 4)630
 823
 809
Adjustments:
 
 
Other (gains) losses9
 11
 88
Dividend income(2) —
 —
Realised gain on other commodity contracts(5) —
 —
Impairment and derecognition of assets (note 6)104
 297
 3
Impairment of other investments (note 6)—
 3
 —
Write-down of inventories (note 6)1
 3
 12
Retrenchments costs32
 90
 14
Care and maintenance costs (note 5)74
 62
 70
Net (profit) loss on disposal of assets (note 6)20
 (8) (4)
(Gain) loss on unrealised non-hedge derivatives and other commodity contracts3
 (10) (18)
Repurchase premium and cost on settlement of issued bonds—
 —
 30
Associates and joint ventures’ special items(2) (2) (11)
Associates and joint ventures’ – adjustments for amortisation, interest, taxation and other159
 116
 137
Fair value adjustments3
 —
 (9)
Other amortisation15
 7
 —
Adjusted EBITDA (as defined in the Revolving Credit Facility Agreements)1,480
 1,483
 1,548
Gearing ratio (Net debt to Adjusted EBITDA)1.12:1
 1.35:1
 1.24:1
Maximum debt covenant ratio allowed per agreement3.5:1
 3.5:1
 3.5:1
Table of Contents

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)

35    RECENT DEVELOPMENTSSUBSEQUENT EVENTS


AngloGold Ashanti Announces Completion of Acquisition of Corvus
On 14 February 2019,18 January 2022, AngloGold Ashanti sold its holdingannounced the successful completion of the previously announced plan of arrangement with Corvus Gold Inc. (“Corvus”), pursuant to which AngloGold Ashanti agreed to acquire the remaining 80.5% of common shares of Corvus, not already owned by AngloGold Ashanti. On acquisition, AngloGold Ashanti obtained control over Corvus. Under the terms of the arrangement, the shareholders of Corvus (other than the AGA group) received C$4.10 in Société d’Exploitation des Mines d’Or de Yatela (Yatela)cash per Corvus share.

The acquisition, deemed to be an asset acquisition under IFRS, resulted in a total consideration of $445m, including a non-cash consideration of $80m. The non-cash consideration represents the fair value of the 19.5% Corvus investment held by the group, prior to the government of Mali, for a consideration of $1. As partacquisition of the 80.5%, and previously accounted for as an equity investment at fair value through OCI. The cash consideration paid, including transaction a onetime paymentcosts, at an exchange rate of C$1.26/$, amounted to $365m.

The total consideration will be madeallocated to the governmentacquired assets and assumed liabilities based on their estimated relative fair values on the acquisition date, which primarily consist of Mali in an amount corresponding toleased mineral properties and exploration results. Management is finalising the estimated costsassessment of completingcertain inputs and assumptions and gathering information that may impact the rehabilitationidentification and closurefair value of the Yatela site, and also financing certain outstanding social programmes. Upon completion and this payment being made, AngloGold Ashanti will be released of all obligations relating to the Yatela project. At 31 December 2018, a provision for the estimated costs relating to rehabilitation, mine closure and the financing of social programmes amounted to $19.7m.net assets.


Dividend declaration - On 1922 February 2019,2022, the directors of AngloGold Ashanti declared a gross cash dividend per ordinary share of 95217 South African cents (assuming an exchange rate of ZAR13.7619/ZAR 15.50/$, the gross dividend payable per ADS is equivalent to ~714 US cents).






NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)







PAGE LEFT BLANK INTENTIONALLY
F - 82

36    SUPPLEMENTAL CONDENSED CONSOLIDATING FINANCIAL INFORMATION

AngloGold Ashanti Holdings plc (“IOMco”), a 100 percent wholly-owned subsidiaryTable of AngloGold Ashanti Limited, has issued debt securities which are fully and unconditionally guaranteed by AngloGold Ashanti Limited (being the “Guarantor”). See Note 24 and Note 32. IOMco is an Isle of Man registered company that holds certain of AngloGold Ashanti’s operations and assets located outside South Africa (excluding certain operations and assets in the United States of America). The following is condensed consolidating financial information for the Company as of 31 December 2018, 2017 and 2016 and for the years ended 31 December 2018, 2017 and 2016, with a separate column for each of AngloGold Ashanti Limited as Guarantor, IOMco as Issuer and the other subsidiaries of the Company combined (the “Non-Guarantor Subsidiaries”). For the purposes of the condensed consolidating financial information, the Company carries its investments under the equity method. The following supplemental condensed consolidating financial information should be read in conjunction with the Company’s condensed consolidated financial statements.Contents
Figures in millions (US dollars)2018
 2018
 2018
 2018
 2018
Condensed consolidating income statement
AngloGold Ashanti
(the “Guarantor”)

 
IOMco
(the “Issuer”)

 
Other subsidiaries
(the “Non-Guarantor
Subsidiaries”)

 
Consolidation
adjustments

 Total
Revenue from product sales498
 —
 3,445
 —
 3,943
Cost of sales(494) —
 (2,679) —
 (3,173)
Gain (loss) on non-hedge derivatives and other commodity contracts(4) —
 6
 —
 2
Gross profit (loss)—
 —
 772
 —
 772
Corporate administration, marketing and other income (expenses)(12) (20) (13) (31) (76)
Exploration and evaluation costs(4) —
 (98) —
 (102)
Other operating income (expenses)(46) 3
 (54) —
 (97)
Special items(15) 8
 (155) (8) (170)
Operating profit (loss)(77) (9) 452
 (39) 327
Dividend income2
 —
 —
 —
 2
Interest income—
 4
 13
 —
 17
Other gains (losses)—
 (6) (3) —
 (9)
Finance costs and unwinding of obligations(23) (107) (48) —
 (178)
Fair value adjustments—
 —
 (3) —
 (3)
Share of associates and joint ventures’ profit (loss)6
 —
 107
 9
 122
Equity gain (loss) in subsidiaries142
 490
 —
 (632) —
Profit (loss) before taxation50
 372
 518
 (662) 278
Taxation83
 —
 (211) —
 (128)
Profit (loss) for the period133
 372
 307
 (662) 150
Allocated as follows:         
Equity shareholders133
 372
 290
 (662) 133
Non-controlling interests—
 —
 17
 —
 17
 133
 372
 307
 (662) 150
Comprehensive income (loss)(8) 320
 301
 (604) 9
Comprehensive (income) loss attributable to non-controlling interests—
 —
 (17) —
 (17)
Comprehensive income (loss) attributable to AngloGold Ashanti(8) 320
 284
 (604) (8)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)

36    Supplemental condensed consolidating financial information (continued)


Figures in millions (US dollars)2017
 2017
 2017
 2017
 2017
Condensed consolidating income statement (restated)
AngloGold Ashanti
(the “Guarantor”)

 
IOMco
(the “Issuer”)

 
Other subsidiaries
(the “Non-Guarantor
Subsidiaries”)

 
Consolidation
adjustments

 Total
Revenue from product sales1,001
 —
 3,539
 (30) 4,510
Cost of sales(1,030) —
 (2,707) 1
 (3,736)
Gain (loss) on non-hedge derivatives and other commodity contracts—
 —
 11
 (1) 10
Gross profit (loss)(29) —
 843
 (30)
784
Corporate administration, marketing and other income (expenses)(7) (7) (2) (48) (64)
Exploration and evaluation costs(10) —
 (104) —
 (114)
Other operating income (expenses)(9) —
 (79) —
 (88)
Special items(414) (6) (27) 9
 (438)
Operating profit (loss)(469) (13) 631
 (69)
80
Interest income1
 3
 11
 —
 15
Other gains (losses)—
 1
 (12) —
 (11)
Finance costs and unwinding of obligations(22) (107) (40) —
 (169)
Share of associates and joint ventures’ profit (loss)13
 —
 9
 —
 22
Equity gain (loss) in subsidiaries212
 447
 —
 (659) —
Profit (loss) before taxation(265) 331
 599
 (728)
(63)
Taxation104
 —
 (212) —
 (108)
Profit (loss) after taxation(161) 331
 387
 (728)
(171)
Preferred stock dividends(30) —
 —
 30
 —
Profit (loss) for the period(191) 331
 387
 (698)
(171)
          
Allocated as follows:         
Equity shareholders(191) 331
 367
 (698) (191)
Non-controlling interests—
 —
 20
 —
 20
 (191) 331
 387
 (698)
(171)
Comprehensive income (loss)(37) 365
 422
 (767) (17)
Comprehensive (income) loss attributable to non-controlling interests—
 —
 (20) —
 (20)
Comprehensive income (loss) attributable to AngloGold Ashanti(37) 365
 402
 (767) (37)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)

36    Supplemental condensed consolidating financial information (continued)


Figures in millions (US dollars)2016
 2016
 2016
 2016
 2016
Condensed consolidating income statement (restated)
AngloGold Ashanti
(the “Guarantor”)

 
IOMco
(the “Issuer”)

 
Other subsidiaries
(the “Non-Guarantor
Subsidiaries”)

 
Consolidation
adjustments

 Total
Revenue from product sales1,131
 —
 3,150
 (58) 4,223
Cost of sales(981) —
 (2,420) —
 (3,401)
Gain (loss) on non-hedge derivatives and other commodity contracts—
 —
 18
 1
 19
Gross profit (loss)150
 —
 748
 (57)
841
Corporate administration, marketing and other income (expenses)17
 (6) (3) (69) (61)
Exploration and evaluation costs(14) —
 (119) —
 (133)
Other operating income (expenses)(26) 2
 (86) —
 (110)
Special items54
 (35) 29
 (90) (42)
Operating profit (loss)181
 (39) 569
 (216)
495
Interest income6
 3
 13
 —
 22
Other gains (losses)1
 (1) (28) (60) (88)
Finance costs and unwinding of obligations(18) (131) (31) —
 (180)
Fair value adjustments—
 9
 —
 —
 9
Share of associates and joint ventures’ profit (loss)(13) 2
 30
 (8) 11
Equity gain (loss) in subsidiaries(61) 389
 —
 (328) —
Profit (loss) before taxation96
 232
 553
 (612)
269
Taxation(4) —
 (184) (1) (189)
Profit (loss) after taxation92
 232
 369
 (613)
80
Preferred stock dividends(29) —
 (29) 58
 —
Profit (loss) for the period63
 232
 340
 (555)
80
          
Allocated as follows:         
Equity shareholders63
 232
 323
 (555) 63
Non-controlling interests—
 —
 17
 —
 17
 63
 232
 340
 (555)
80
Comprehensive income (loss)250
 234
 388
 (605) 267
Comprehensive (income) loss attributable to non-controlling interests—
 —
 (17) —
 (17)
Comprehensive income (loss) attributable to AngloGold Ashanti250

234

371

(605)
250

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)

36    Supplemental condensed consolidating financial information (continued)


Figures in millions (US dollars)2018
 2018
 2018
 2018
 2018
Condensed consolidating statement of financial position
AngloGold Ashanti
(the “Guarantor”)

 
IOMco
(the “Issuer”)

 
Other subsidiaries
(the 
“Non-Guarantor
Subsidiaries”)

 
Consolidation
adjustments

 Total
ASSETS         
Non-current assets         
Tangible assets625
 —
 2,756
 —
 3,381
Intangible assets1
 —
 123
 (1) 123
Investments in subsidiaries, associates and joint ventures2,383
 4,255
 1,398
 (6,508) 1,528
Other investments2
 3
 138
 (2) 141
Inventories1
 —
 105
 —
 106
Trade and other receivables—
 29
 102
 (29) 102
Cash restricted for use—
 —
 35
 —
 35
 3,012
 4,287
 4,657
 (6,540) 5,416
Current assets         
Other investments—
 6
 —
 —
 6
Inventories, trade and other receivables, intergroup balances and other current assets390
 416
 1,166
 (1,111) 861
Cash restricted for use—
 —
 31
 —
 31
Cash and cash equivalents7
 97
 225
 —
 329
 397
 519
 1,422
 (1,111) 1,227
          
Total assets3,409
 4,806
 6,079
 (7,651) 6,643
          
EQUITY AND LIABILITIES         
Share capital and premium7,171
 6,096
 821
 (6,917) 7,171
Retained earnings (accumulated losses) and other reserves(4,519) (3,310) 1,406
 1,904
 (4,519)
Shareholders’ equity2,652
 2,786
 2,227
 (5,013) 2,652
Non-controlling interests—
 —
 42
 —
 42
Total equity2,652
 2,786
 2,269
 (5,013) 2,694
          
Non-current liabilities319
 1,734
 1,103
 —
 3,156
Current liabilities including intergroup balances438
 286
 2,707
 (2,638) 793
Total liabilities757
 2,020
 3,810
 (2,638) 3,949
Total equity and liabilities3,409
 4,806
 6,079
 (7,651) 6,643

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)

36    Supplemental condensed consolidating financial information (continued)


Figures in millions (US dollars)2017
 2017
 2017
 2017
 2017
Condensed consolidating statement of financial position
AngloGold Ashanti
(the “Guarantor”)

 
IOMco
(the “Issuer”)

 
Other subsidiaries
(the 
“Non-Guarantor
Subsidiaries”)

 
Consolidation
adjustments

 Total
ASSETS         
Non-current assets         
Tangible assets739
 —
 3,003
 —
 3,742
Intangible assets1
 —
 139
 (2) 138
Investments in subsidiaries, associates and joint ventures2,371
 4,376
 1,371
 (6,611) 1,507
Other investments2
 6
 125
 (2) 131
Inventories—
 —
 100
 —
 100
Trade and other receivables—
 29
 67
 (29) 67
Deferred taxation—
 —
 4
 —
 4
Cash restricted for use—
 —
 37
 —
 37
 3,113
 4,411
 4,846
 (6,644)
5,726
Current assets        
Other investments—
 6
 1
 —
 7
Inventories, trade and other receivables, intergroup balances and other current assets471
 145
 1,166
 (877) 905
Cash restricted for use—
 1
 27
 —
 28
Cash and cash equivalents11
 21
 173
 —
 205
 482
 173
 1,367
 (877)
1,145
Non-current assets held for sale310
 —
 38
 —
 348
 792
 173
 1,405
 (877) 1,493
          
Total assets3,905
 4,584
 6,251
 (7,521)
7,219
EQUITY AND LIABILITIES        
Share capital and premium7,134
 6,096
 824
 (6,920) 7,134
Retained earnings (accumulated losses) and other reserves(4,471) (3,491) 1,619
 1,872
 (4,471)
Shareholders’ equity2,663
 2,605
 2,443
 (5,048)
2,663
Non-controlling interests—
 —
 41
 —
 41
Total equity2,663
 2,605
 2,484
 (5,048)
2,704
Non-current liabilities527
 1,764
 1,369
 —
 3,660
Current liabilities including intergroup balances591
 215
 2,396
 (2,473) 729
Non-current liabilities held for sale124
 —
 2
 —
 126
Total liabilities1,242

1,979

3,767

(2,473)
4,515
Total equity and liabilities3,905

4,584

6,251

(7,521)
7,219

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)

36    Supplemental condensed consolidating financial information (continued)


Figures in millions (US dollars)2016
 2016
 2016
 2016
 2016
Condensed consolidating statement of financial position
AngloGold Ashanti
(the “Guarantor”)

 
IOMco
(the “Issuer”)

 
Other subsidiaries
(the 
“Non-Guarantor
Subsidiaries”)

 
Consolidation
adjustments

 Total
ASSETS         
Non-current assets         
Tangible assets1,160
 —
 2,951
 —
 4,111
Intangible assets4
 —
 143
 (2) 145
Investments in subsidiaries, associates and joint ventures2,109
 3,478
 1,338
 (5,477) 1,448
Other investments2
 3
 122
 (2) 125
Inventories—
 —
 84
 —
 84
Trade and other receivables—
 29
 34
 (29) 34
Deferred taxation—
 —
 4
 —
 4
Cash restricted for use—
 —
 36
 —
 36
 3,275
 3,510
 4,712
 (5,510)
5,987
Current assets        
Other investments—
 5
 —
 —
 5
Inventories, trade and other receivables, intergroup balances and other current assets429
 807
 1,153
 (1,462) 927
Cash restricted for use—
 1
 18
 —
 19
Cash and cash equivalents44
 32
 139
 —
 215
 473
 845
 1,310
 (1,462)
1,166
          
Total assets3,748
 4,355
 6,022
 (6,972)
7,153
EQUITY AND LIABILITIES        
Share capital and premium7,108
 6,139
 824
 (6,963) 7,108
Retained earnings (accumulated losses) and other reserves(4,393) (3,765) 702
 3,063
 (4,393)
Shareholders’ equity2,715
 2,374
 1,526
 (3,900)
2,715
Non-controlling interests—
 —
 39
 —
 39
Total equity2,715
 2,374
 1,565
 (3,900)
2,754
Non-current liabilities496
 1,799
 1,344
 —
 3,639
Current liabilities including intergroup balances537
 182
 3,113
 (3,072) 760
Total liabilities1,033

1,981

4,457

(3,072)
4,399
Total equity and liabilities3,748

4,355

6,022

(6,972)
7,153

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)

36    Supplemental condensed consolidating financial information (continued)


Figures in millions (US dollars)2018
 2018
 2018
 2018
 2018
Condensed consolidating statement of cash flow
AngloGold Ashanti

(the “Guarantor”)

 
IOMco

(the “Issuer”)

 
Other subsidiaries
(the 
“Non-Guarantor
Subsidiaries”)

 
Consolidation
adjustments

 Total
Cash flows from operating activities         
Cash generated from (used by) operations(120) (18) 1,062
 8
 932
Net movement in intergroup receivables and payables73
 (215) 130
 12
 —
Dividends received from joint ventures—
 91
 —
 —
 91
Taxation refund—
 —
 5
 —
 5
Taxation paid—
 —
 (171) —
 (171)
Net cash inflow (outflow) from operating activities(47) (142) 1,026
 20
 857
Cash flows from investing activities         
Capital expenditure(64) —
 (588) —
 (652)
Dividends from other investments2
 —
 —
 —
 2
Proceeds from disposal of tangible assets303
 —
 4
 6
 313
Other investments acquired—
 —
 (81) —
 (81)
Proceeds from disposal of other investments—
 —
 98
 —
 98
Investments in associates and joint ventures—
 —
 (8) —
 (8)
Net loans repaid by (advanced to) associates and joint ventures9
 10
 (2) —
 17
Cash payment to settle the sale of environmental trust fund(32) —
 —
 —
 (32)
Disposal (acquisition) of subsidiaries—
 (7) 7
 —
 —
Decrease (increase) in cash restricted for use—
 1
 (4) (1) (4)
Interest received—
 1
 11
 —
 12
Net cash inflow (outflow) from investing activities218
 5
 (563) 5
 (335)
Cash flows from financing activities         
Proceeds from borrowings407
 45
 301
 —
 753
Repayment of borrowings(570) (80) (317) —
 (967)
Finance costs paid(12) (102) (16) —
 (130)
Bond settlement premium, RCF and bond transaction costs—
 (10) —
 —
 (10)
Dividends paid(24) —
 (15) —
 (39)
Intergroup dividends received (paid)25
 360
 (386) 1
 —
Net cash inflow (outflow) from financing activities(174) 213
 (433) 1
 (393)
Net increase (decrease) in cash and cash equivalents(3) 76
 30
 26
 129
Translation(1) —
 22
 (26) (5)
Cash and cash equivalents at beginning of year11
 21
 173
 —
 205
Cash and cash equivalents at end of year7

97

225

—

329

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)

36    Supplemental condensed consolidating financial information (continued)


Figures in millions (US dollars)2017
 2017
 2017
 2017
 2017
Condensed consolidating statement of cash flow
AngloGold Ashanti
(the “Guarantor”)

 
IOMco
(the “Issuer”)

 
Other subsidiaries
(the 
“Non-Guarantor
Subsidiaries”)

 
Consolidation
adjustments

 Total
Cash flows from operating activities         
Cash generated from (used by) operations(5) (15) 1,168
 3
 1,151
Net movement in intergroup receivables and payables10
 (102) 123
 (31) —
Dividends received from joint ventures—
 6
 —
 —
 6
Taxation refund3
 —
 11
 —
 14
Taxation paid—
 —
 (174) —
 (174)
Net cash inflow (outflow) from operating activities8
 (111) 1,128
 (28)
997
Cash flows from investing activities        
Capital expenditure(143) —
 (686) —
 (829)
Expenditure on intangible assets(1) —
 —
 —
 (1)
Proceeds from disposal of tangible assets3
 —
 4
 —
 7
Other investments acquired—
 (5) (86) —
 (91)
Proceeds from disposal of other investments—
 —
 75
 3
 78
Investments in associates and joint ventures—
 (15) (14) 2
 (27)
Net loans repaid by (advanced to) associates and joint ventures—
 (6) 2
 (2) (6)
Reduction in investment in subsidiary42
 —
 —
 (42) —
Disposal (acquisition) of subsidiaries—
 (2) 2
 —
 —
Decrease (increase) in cash restricted for use—
 —
 (8) —
 (8)
Interest received1
 3
 11
 —
 15
Net cash inflow (outflow) from investing activities(98) (25) (700) (39)
(862)
Cash flows from financing activities        
Reduction in share capital—
 (43) —
 43
 —
Proceeds from borrowings539
 155
 121
 —
 815
Repayment of borrowings(428) (170) (169) —
 (767)
Finance costs paid(15) (103) (20) —
 (138)
Dividends paid(39) —
 (19) —
 (58)
Intergroup dividends received (paid)—
 286
 (286) —
 —
Net cash inflow (outflow) from financing activities57
 125
 (373) 43
 (148)
Net increase (decrease) in cash and cash equivalents(33) (11) 55
 (24) (13)
Translation—
 —
 (21) 24
 3
Cash and cash equivalents at beginning of year44
 32
 139
 —
 215
Cash and cash equivalents at end of year11

21

173

—

205

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)

36    Supplemental condensed consolidating financial information (continued)



Figures in millions (US dollars)2016
 2016
 2016
 2016
 2016
Condensed consolidating statement of cash flow
AngloGold Ashanti
(the “Guarantor”)

 
IOMco
(the “Issuer”)

 
Other subsidiaries
(the 
“Non-Guarantor
Subsidiaries”)

 
Consolidation
adjustments

 Total
Cash flows from operating activities         
Cash generated from (used by) operations245
 (11) 1,106
 (38) 1,302
Net movement in intergroup receivables and payables(8) 169
 (163) 2
 —
Dividends received from joint ventures—
 37
 —
 —
 37
Taxation refund3
 —
 9
 —
 12
Taxation paid(4) —
 (161) —
 (165)
Net cash inflow (outflow) from operating activities236
 195
 791
 (36)
1,186
Cash flows from investing activities        
Capital expenditure(171) —
 (535) —
 (706)
Expenditure on intangible assets(2) —
 (3) —
 (5)
Proceeds from disposal of tangible assets—
 —
 4
 —
 4
Other investments acquired—
 —
 (73) —
 (73)
Proceeds from disposal of other investments—
 —
 61
 —
 61
Investments in associates and joint ventures—
 —
 (11) —
 (11)
Proceeds from disposal of associates and joint ventures—
 10
 —
 —
 10
Net loans repaid by (advanced to) associates and joint ventures—
 (2) (2) —
 (4)
Disposal (acquisition) of subsidiaries(6) (2) 2
 6
 —
Decrease (increase) in cash restricted for use1
 —
 7
 —
 8
Interest received2
 —
 12
 —
 14
Net cash inflow (outflow) from investing activities(176) 6
 (538) 6

(702)
Cash flows from financing activities        
Proceeds from issue of share capital—
 6
 —
 (6) —
Proceeds from borrowings256
 330
 201
 —
 787
Repayment of borrowings(291) (951) (91) —
 (1,333)
Finance costs paid(11) (145) (16) —
 (172)
Bond settlement premium, RCF and bond transaction costs—
 (30) —
 —
 (30)
Dividends paid—
 —
 (15) —
 (15)
Intergroup dividends received (paid)7
 399
 (406) —
 —
Net cash inflow (outflow) from financing activities(39) (391) (327) (6)
(763)
Net increase (decrease) in cash and cash equivalents21
 (190) (74) (36) (279)
Translation4
 —
 (30) 36
 10
Cash and cash equivalents at beginning of year19
 222
 243
 —
 484
Cash and cash equivalents at end of year44

32

139

—

215

KIBALI (JERSEY) LIMITED
Consolidated Financial Statements for the Three Years Ended
31 December 2018, 20172021, 2020 and 20162019

F - 83
Table of Contents


CONTENTS




PAGE
Report of independent registered public accounting firmF - 85
(BDO LLP: London, United Kingdom: PCAOB ID # 1295)
Consolidated statements of profit or loss and other comprehensive income for the years ended 31 December 2021, 2020 and 2019F - 86
Consolidated statements of financial position as at 31 December 2021, 2020 and 2019F - 87
Consolidated statements of changes in equity for the years ended 31 December 2021, 2020 and 2019F - 88
Consolidated statements of cash flows for the years ended 31 December 2021, 2020 and 2019F - 89
Statement of directors responsibilitiesF - 90
Notes to the consolidated financial statementsF - 91

F - 84
Table of Contents
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM



Shareholders and Board of Directors
Kibali (Jersey) Limited,
Jersey, Channel Islands


Opinion on the Consolidated Financial Statements


We have audited the accompanying consolidated statements of financial position of Kibali (Jersey) Limited (the Company)“Company”) and subsidiaries as of December 31, December 2018, 20172021, 2020 and 2016,2019, the related consolidated statements of profit or loss and other comprehensive income, changes in equity, and cash flows for each of the three years in the period ended December 31, December 2018,2021, and the related notesNotes (collectively referred to as the consolidated“consolidated financial statements)statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at December 31, 2021, 2020 and subsidiaries at 31 December 2018, 2017 and 2016,2019, and the results of theirits operations and theirits cash flows for each of the three years in the period ended December 31, December 2018,2021, in conformity with International Financial Reporting Standards as Issuedissued by the International Accounting Standards Board.


Basis for Opinion


These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s consolidated financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("((“PCAOB)”) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.


We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.


Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion.






/s/ BDO LLP



BDO LLP


We have served as the Company's auditor since 2013.


London, United Kingdom
2529 March 20192022





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CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE YEARS ENDED 31 DECEMBER 2018, 20172021, 2020 and 20162019
31 Dec31 Dec31 Dec
Note202120202019
US$’000US$’000US$’000
REVENUE
Gold sales41,469,221 1,440,328 1,122,940 
Other income51,208 2,204 170 
TOTAL INCOME1,470,429 1,442,532 1,123,110 
COSTS AND EXPENSES
Mining and processing costs6688,086 670,138 688,796 
Royalties68,704 67,547 52,792 
Exploration and corporate expenditure75,848 6,274 13,686 
Other expenses533,246 37,477 6,021 
TOTAL COSTS795,884 781,436 761,295 
Finance income85,618 6,912 4,370 
Finance costs8(5,913)(6,460)(3,973)
Finance income/(costs) – net(295)452 397 
Share of profits of equity accounted joint venture25103 239 34 
PROFIT BEFORE INCOME TAX674,353 661,787 362,246 
Income tax expense9(180,715)(157,090)(61,934)
PROFIT FOR THE YEAR493,638 504,697 300,312 
OTHER COMPREHENSIVE INCOME/(EXPENSE)
Gain/(Loss) on investment in marketable securities(2)6 (5)
TOTAL COMPREHENSIVE INCOME493,636 504,703 300,307 
PROFIT FOR THE YEAR
Attributable to:
Owners of the parent461,271 472,533 288,401 
Non-controlling interest32,367 32,164 11,911 
493,638 504,697 300,312 
TOTAL COMPREHENSIVE INCOME
Attributable to:
Owners of the parent461,269 472,539 288,396 
Non-controlling interest32,367 32,164 11,911 
493,636 504,703 300,307 
  2018
 2017
 2016
 Note$’000
 $’000
 $’000
REVENUE      
Gold sales41,041,035
 754,852
 709,372
Other income556,838
 146
 136
TOTAL INCOME 1,097,873
 754,998
 709,508
COSTS AND EXPENSES      
Mining and processing costs6772,259
 698,980
 594,722
Royalties 45,249
 31,913
 32,976
Exploration and corporate expenditure76,154
 8,205
 6,398
Other expenses545,288
 55,031
 48,250
TOTAL COSTS 868,950
 794,129
 682,346
       
Finance income83,380
 4,147
 4,735
Finance costs8(4,465) (5,478) (5,298)
Finance costs - net (1,085) (1,331) (563)
Share of profits of equity accounted joint venture27132
 113
 129
PROFIT / (LOSS) BEFORE INCOME TAX 227,970
 (40,349) 26,728
Income tax (expense) / benefit9(15,972) 54,333
 22,962
PROFIT FOR THE YEAR 211,998
 13,984
 49,690
OTHER COMPREHENSIVE INCOME/(EXPENSE)      
(Loss) / gain on investment in marketable securities (17) (33) 13
TOTAL COMPREHENSIVE INCOME211,981
 13,951
 49,703
PROFIT FOR THE YEAR      
Attributable to:      
Owners of the parent 207,750
 26,341
 57,537
Non-controlling interest 4,248
 (12,357) (7,847)
 211,998
 13,984
 49,690
TOTAL COMPREHENSIVE INCOME     
Attributable to:      
Owners of the parent 207,733
 26,308
 57,550
Non-controlling interest 4,248
 (12,357) (7,847)
  211,981
 13,951
 49,703





The accompanying notesNotes form part of these consolidated financial statements



F - 86
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CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
AS AT 31 DECEMBER 2018, 20172021, 2020 and 20162019

31 Dec31 Dec31 Dec
Note202120202019
US$’000US$’000US$’000
NON-CURRENT ASSETS
Property, plant and equipment101,811,291 1,846,746 1,892,847 
Mineral properties11334,881 366,053 404,432 
Long term ore stockpiles14— 36,875 52,685 
Investment in associate4 
Investment in equity accounted joint venture25107 244 71 
Other investments in joint venture2521,669 23,096 21,067 
Total investment in joint venture2521,776 23,340 21,138 
Trade and other receivables13192,507 185,768 140,987 
Deferred tax asset12— — 9,647 
TOTAL NON-CURRENT ASSETS2,360,459 2,458,782 2,521,736 
CURRENT ASSETS
Inventories and ore stockpiles14107,951 90,487 95,003 
Trade and other receivables1353,915 29,699 89,047 
Investment in marketable securities7 9 3 
Cash and cash equivalents221,115,359 944,233 452,692 
TOTAL CURRENT ASSETS1,277,232 1,064,428 636,745 
TOTAL ASSETS3,637,691 3,523,210 3,158,481 
EQUITY AND LIABILITIES
Equity
Share capital155 5 5 
Share premium152,523,612 2,523,612 2,523,612 
Retained earnings655,276 655,005 462,972 
Other reserve(38)(36)(42)
Equity attributable to owners of the parent3,178,855 3,178,586 2,986,547 
Non-controlling interest1668,110 55,743 23,579 
TOTAL EQUITY3,246,965 3,234,329 3,010,126 
NON-CURRENT LIABILITIES
Loans and borrowings171,839 — 1,507 
Lease liabilities1741,839 50,457 43,821 
Deferred tax liability12196,654 89,609 — 
Provision for rehabilitation1829,026 28,364 25,516 
TOTAL NON-CURRENT LIABILITIES269,358 168,430 70,844 
CURRENT LIABILITIES
Lease liabilities1713,909 14,674 11,105 
Trade and other payables1997,109 66,881 45,460 
Provision for rehabilitation18600 803 1,024 
Current tax payable9,750 38,093 19,922 
TOTAL CURRENT LIABILITIES121,368 120,451 77,511 
TOTAL EQUITY AND LIABILITIES3,637,691 3,523,210 3,158,481 
  2018
 2017
 2016
 Note$’000
 $’000
 $’000
NON-CURRENT ASSETS      
Property, plant and equipment101,988,533
 2,107,718
 2,068,306
Mineral properties11454,479
 519,117
 576,536
Long term ore stockpiles1428,510
 12,779
 43,771
Investment in equity accounted joint venture27387
 255
 142
Other investments in joint venture2721,479
 25,577
 28,830
Total investment in joint venture2721,866
 25,832
 28,972
Trade and other receivables13137,852
 125,294
 87,435
Deferred tax asset1227,265
 43,237
 —
TOTAL NON-CURRENT ASSETS 2,658,505
 2,833,977
 2,805,020
CURRENT ASSETS      
Inventories and ore stockpiles1493,036
 73,231
 72,505
Trade and other receivables13112,982
 92,991
 107,025
Investment in marketable securities159
 26
 58
Cash and cash equivalents 123,931
 3,288
 18,865
TOTAL CURRENT ASSETS 329,958
 169,536
 198,453
TOTAL ASSETS 2,988,463
 3,003,513
 3,003,473
EQUITY AND LIABILITIES      
EQUITY      
Share capital165
 5
 5
Share premium 2,523,612
 2,523,612
 2,493,612
Retained earnings 324,571
 293,821
 267,480
Other reserve (37) (20) 13
Equity attributable to owners of the parent 2,848,151
 2,817,418
 2,761,110
Non-controlling interest1711,668
 7,420
 19,777
TOTAL EQUITY 2,859,819
 2,824,838
 2,780,887
NON-CURRENT LIABILITIES      
Loans and borrowings1828,991
 41,210
 46,929
Deferred tax liabilities12—
 —
 11,096
Provision for rehabilitation1923,640
 23,244
 21,163
TOTAL NON-CURRENT LIABILITIES 52,631
 64,454
 79,188
CURRENT LIABILITIES      
Loans and borrowings1811,425
 7,596
 10,285
Trade and other payables2059,770
 104,633
 131,859
Current tax payable 4,818
 1,992
 1,254
TOTAL CURRENT LIABILITIES 76,013
 114,221
 143,398
TOTAL EQUITY AND LIABILITIES 2,988,463
 3,003,513
 3,003,473



The consolidated financial statements were approved by the Board of Directors on 2529 March 20192022 and signed on its behalf by:
Graham Shuttleworth
Director

/s/ Graham Shuttleworth

Graham Shuttleworth
Director
The accompanying notesNotes form part of these consolidated financial statements.statements



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CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
AS ATFOR THE YEARS ENDED 31 DECEMBER 2018, 20172021, 2020 and 20162019
Total equity
attributableNon-
US$’000ShareShareRetainedOtherto owners ofcontrollingTotal
capitalpremiumearningsreservesthe parentinterestequity
Balance at 1 January 201952,523,612324,571(37)2,848,15111,6682,859,819
Fair value movement on investment in marketable securities———(5)(5)—(5)
Total other comprehensive expense— — — (5)(5)—(5)
Net profit for the year——288,401—288,40111,911300,312
Total comprehensive income/(expense)——288,401(5)288,39611,911300,307
Dividend paid (1)
——(150,000)—(150,000)—(150,000)
Balance at 31 December 201952,523,612462,972(42)2,986,54723,5793,010,126
Balance at 1 January 202052,523,612462,972(42)2,986,54723,5793,010,126
Fair value movement on investment in marketable securities———66—6
Total other comprehensive income—— —66—6
Net profit for the year——472,533—472,53332,164504,697
Total comprehensive income/(expense)——472,5336472,53932,164504,703
Dividend paid (1)
——(280,500)—(280,500)—(280,500)
Balance at 31 December 202052,523,612655,005(36)3,178,58655,7433,234,329
Balance at 1 January 202152,523,612655,005(36)3,178,58655,7433,234,329
Fair value movement on investment in marketable securities———(2)(2)—(2)
Total other comprehensive expense—— —(2)(2)—(2)
Net profit for the year——461,271—461,27132,367493,638
Total comprehensive income——461,271(2)461,26932,367493,636
Dividend paid (1)
——(461,000)—(461,000)(20,000)(481,000)
Balance at 31 December 202152,523,612655,276(38)3,178,85568,1103,246,965
$’000
Share
Capital

 
Share
Premium

 
Retained
earnings

 
Other
Reserves

 
Total equity
attributable
to owners of
the parent

 
Non-
Controlling
Interest

 
Total
Equity

Balance at 1 January 20165
 2,493,612
 269,943
 —
 2,763,560
 27,624
 2,791,184
Fair value movement on investment in marketable securities—
 —
 —
 13
 13
 —
 13
Total other comprehensive expense—
 —
 —
 13
 13
 —
 13
Net profit/(loss) for the year—
 —
 57,537
 —
 57,537
 (7,847) 49,690
Total comprehensive income/(expense)—
 —
 57,537
 13
 57,550
 (7,847) 49,703
Dividends(1)
—
 —
 (60,000) —
 (60,000) —
 (60,000)
Balance at 31 December 20165
 2,493,612
 267,480
 13
 2,761,110
 19,777
 2,780,887
Balance at 1 January 20175
 2,493,612
 267,480
 13
 2,761,110
 19,777
 2,780,887
Fair value movement on investment in marketable securities—
 —
 —
 (33) (33) —
 (33)
Total other comprehensive income—
 —
 —
 (33) (33) —
 (33)
Net profit/(loss) for the year—
 —
 26,341
 —
 26,341
 (12,357) 13,984
Total comprehensive income/(expense)—
 —
 26,341
 (33) 26,308
 (12,357) 13,951
Shares issued—
 30,000
 —
 —
 30,000
 —
 30,000
Balance at 31 December 20175
 2,523,612
 293,821
 (20) 2,817,418
 7,420
 2,824,838
Balance at 1 January 20185
 2,523,612
 293,821
 (20) 2,817,418
 7,420
 2,824,838
Fair value movement on investment in marketable securities—
 —
 —
 (17) (17) —
 (17)
Total other comprehensive expense—
 —
 —
 (17) (17) —
 (17)
Net profit/(loss) for the year—
 —
 207,750
 —
 207,750
 4,248
 211,998
Total comprehensive income/(expense)—
 —
 207,750
 (17) 207,733
 4,248
 211,981
Dividend(1)
—
 —
 (177,000) —
 (177,000) —
 (177,000)
Balance at 31 December 20185
 2,523,612
 324,571
 (37) 2,848,151
 11,668
 2,859,819



SHARE CAPITAL
The share capital comprises the issued ordinary shares of the Company at par.

SHARE PREMIUM
The share premium comprises the excess value recognised from the issue of ordinary shares at par.

RETAINED EARNINGS
Retained earnings comprises the Group’s cumulative accounting profits and losses since inception less dividends.

OTHER RESERVES
Other reserves comprises the Group’s cumulative fair value movement on the investment in marketable securities since inception in Kilo Goldmines Limited less amounts reclassified to profit and loss.

NON-CONTROLLING INTEREST
TheThe non-controlling interest represents the total carrying value of the 10% interest Société Minière de Kilo-MotoKilo- Moto SA UNISARL (SOKIMO) has in Kibali Goldmines SA (Kibali)("Kibali"), which is a subsidiary of Kibali (Jersey) Limited.






The accompanying notesNotes form part of these consolidated financial statements.statements



(1)This balance relates to dividends declared and fully paid up to Shareholders in the period.

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CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED 31 DECEMBER 2018, 20172021, 2020 and 20162019


31 Dec31 Dec31 Dec
202120202019

US$’000US$’000US$’000
Cash Flows From Operating Activities

Cash generated by operations23944,244 956,870615,431
Interest received3,327 4,1582,683
Finance cost paid(1)(299)(715)
Dividends received from equity accounted joint venture495 65 156
Income tax paid(84,575)(32,121)(6,193)
Withholding tax paid(18,000)— —
Net cash flows generated by operating activities

845,490928,673611,362

Cash Flows Related to Investing Activities
Additions of property, plant and equipment     (168,762)(132,229)(120,202)
Drawdowns, interest and capital repayments from equity accounted joint venture(37)(468)1,900
Net cash flows used in investing activities(168,799)(132,697)(118,302)

Cash Flows Relating to Financing Activities
Payment of dividends(481,000)(280,500)(150,000)
Principal paid on lease liabilities(20,530)(20,753)(11,110)
Interest paid on lease liabilities(4,035)(3,182)(3,153)
Net cash outflows through financing activities(505,565)(304,435)(164,263)
Net increase in cash and cash equivalents171,126491,541328,797
Cash and cash equivalents at the beginning of the year


944,233452,692123,895
Cash and cash equivalents at the end of the year

1,115,359944,233452,692
  2018
 2017
 2016
 Note$’000
 $’000
 $’000
CASH FLOWS FROM OPERATING ACTIVITIES      
Cash generated by operations25473,208
 225,429
 272,950
Interest received 1,814
 2,701
 3,400
Finance cost paid (3,874) (4,856) (4,637)
Dividends received from equity accounted joint venture27—
 —
 276
Income tax paid —
 (1,796) (8,973)
Net cash flows generated by operating activities 471,148
 221,478
 263,016
CASH FLOWS RELATED TO INVESTING ACTIVITIES      
Additions of property, plant and equipment (155,298) (256,208) (213,570)
Repayment of loan from equity accounted joint venture 4,098
 3,170
 2,555
Net cash outflows used in investing activities (151,200) (253,038) (211,015)
CASH FLOWS RELATING TO FINANCING ACTIVITIES      
Proceeds from issue of ordinary shares16—
 30,000
 —
Payment of dividends(1)
 (177,000) (8,000) (52,000)
Decrease in loans and borrowings (9,579) (7,228) (6,714)
Net cash inflows/(outflows) provided by financing activities (186,579) 14,772
 (58,714)
Net increase/(decrease) in cash and cash equivalents 133,369
 (16,788) (6,713)
Cash and cash equivalents at the beginning of the year (9,474) 7,314
 14,027
Cash and cash equivalents at the end of the year 123,895
 (9,474) 7,314
Cash and cash equivalents include the following for the purpose of the consolidated statement of cash flow:      
Cash and cash equivalents 123,931
 3,288
 18,865
Bank overdrafts20(36) (12,762) (11,551)
Cash and cash equivalents 123,895
 (9,474) 7,314



Bank overdrafts are classified as cashCash and cash equivalents as they form an integral partinclude the following for the purpose of the consolidated statement of cash management and fluctuate from positive to overdrawn.flow:

Cash and cash equivalents1,115,359 944,233 452,692 
Bank overdrafts19(1,656)— — 
Cash and cash equivalents1,113,703 944,233 452,692 





The accompanying notesNotes form part of these consolidated financial statements.statements
(1) This balance relates to dividends declared and fully paid up to Shareholders in the period.




1.STATEMENT OF DIRECTORS' RESPONSIBILITIES



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1. STATEMENT OF DIRECTORS’ RESPONSIBILITIES

The Directors are responsible for preparing these special purpose consolidated financial statements for Kibali (Jersey) Limited Limited and its subsidiaries as at December 31, 2018, 20172021, 2020 and 20162019 and for each of the three years in the period ended December 31, 2018,2021, in conformity with lnternational Financial Reporting Standards as issued by the lnternational Accounting Standards Board. The Directors are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the Group, and for identifying and ensuring that the Group complies with the law and regulations applicable to their activities. They are also responsible for safeguarding the assets of the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The Directors confirm that suitable accounting policies have been used and applied consistently for the periods presented. They also confirm that reasonable and prudent judgments and estimates have been made in preparing these special purposes consolidated financial statements and that applicable accounting standards have been followed.





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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

2. SIGNIFICANT ACCOUNTING POLICIES

The principal accounting policies applied in the preparation of these consolidated financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

BASIS OF PREPARATION

The consolidated financial statements of Kibali (Jersey) Limited (the Company) and its subsidiaries and joint venture (the Group) have been prepared in accordance with International Financial Reporting Standards and Interpretations (collectively (IFRS)) issued by the International Accounting Standards Board (IASB).


The consolidated financial statements have been prepared under the historical cost convention, as modified by the revaluation of investment in marketable securities classified as fair value through other comprehensive income. The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group’s accounting policies. The areas involving a high degree of judgement or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements are disclosed in noteNote 3.


After reviewingOn March 11, 2020, the Covid-19 outbreak was declared a pandemic by the World Health Organization. The outbreak and efforts to contain the pandemic have had a significant effect on commodity prices and capital markets. We have adopted certain operating procedures to respond to Covid-19, and to date, our operations have not been significantly impacted by the pandemic.

In assessing the Group’s going concern status, the Directors have taken into account the impact of the current pandemic together with potential impacts associated with the current conflict in Ukraine and associated sanctions on Russia on its on-going operations, as well as the following factors and assumptions: the current cash flow forecastsposition; the latest mine plans, the Group’s capital expenditure and the short-term gold price. Refer to Note 28 for at leastfurther details on management’s assessment. After making appropriate enquiries and considering the next 12 months, and other longer term plans,uncertainties described above, the directors are satisfied, at the time of approving the financial statements, that it is appropriate to adopt the going concern basis in preparing the financial statements. The directors have no reason to believe that the Group will not be a going concern for at least the next 12 months from the date of approval of these financial statements based on forecasts and available cash resources.


NEW STANDARDS AND INTERPRETATIONS APPLIED

The IASB has issued the following new standards, amendments to published standards and interpretations to existing standards with effective dates on or prior to 1 January 20182021 which have been adopted by the Group for the first time this year. These have notyear, and had a materialan immaterial or no impact.


F - 91
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Effective period
commencing on or after
Amendments to Existing Standards
IFRS 4, 7,9,16
IAS 39		Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 Interest Rate Benchmark Reform – Phase 21 Jan 2021
IFRS 4Amendments to IFRS 4 Insurance Contracts – deferral of IFRS 9Financial instruments1 Jan 20182021
IFRS 16
IAS 15Revenue from contracts with customers1 Jan 2018
IFRS 2Classifications and measurement of share based payment transactions (AmendmentAmendments to IFRS 2)16 - Covid-19-Related Rent Concessions beyond 30 June 20211 Jan 2018
IFRIC 22Foreign Currency Transactions and Advance Consideration1 Jan 2018Apr 2021

The Company has adopted IFRS 9 ‘Financial Instruments’ and IFRS 15 ‘Revenue from Customers’ in the year ending 31 December 2018, following the standards becoming effective for periods commencing on or after 1 January 2018.

IFRS 9 ‘Financial Instruments’ addresses the classification and measurement of financial assets and financial liabilities and replaces the guidance in IAS 39 that relates to the classification and measurement of financial instruments. IFRS 9 retains but simplifies the mixed measurement model and establishes three primary measurement categories for financial assets: amortised cost, fair value through other comprehensive income (OCI) and fair value through profit or loss. The basis of classification depends on the entity’s business model and the contractual cash flow characteristics of the financial asset. There is now a new expected credit loss model that replaces the incurred loss impairment model used in IAS 39. The adoption of IFRS 9 did not result in any material change to the consolidated results of the Group from the beginning of the earliest period presented. Following an assessment of the consolidated financial assets investments previously classified as available-for-sale assets were classified as fair value through other comprehensive income investments but remain immaterial. The Group has applied the expected credit loss impairment model to its financial assets, focused in particular on its long-term loans to its KAS joint venture and loans to SOKIMO and no material credit losses are considered to apply. The Group’s value added tax (TVA) receivables are excluded from the scope of IFRS 9.










NEW STANDARDS AND INTERPRETATIONS APPLIED (continued)

IFRS 15 introduced a single framework for revenue recognition and clarify principles of revenue recognition. This standard modifies the determination of when to recognise revenue and how much revenue to recognise. The core principle is that an entity recognises revenue to depict the transfer of promised goods and services to the customer of an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The adoption of IFRS 15 did not result in any material change to the Group's revenue recognition, from the beginning of the earliest period presented, following analysis of the gold sales contracts held by its mining operations. The Company enters into a contract for the sale of gold at its mining operation. The performance obligation under the contract is to supply such gold to the customer subject to minimum quality specifications with the consideration for such gold sales determined by the market spot price for each ounce of gold at the point of sale and gold content. As the sales from gold contracts are subject to customer survey adjustment, sales are initially recorded based on the results of tests on the material prior to shipment to determine the gold content and specification with such estimates subsequently adjusted to reflect the final gold content determined by the customer shortly after period end. Revenue is recorded to the extent that it is highly probable that there will be no subsequent reversal of such revenue due to gold content or quality specifications. Historical adjustments of this nature have been insignificant. The performance obligations are considered to be satisfied and control of the gold transferred as the gold leaves the gold room upon collection by the customer, with title, possession and significant risks and rewards transferred at this point with revenue recorded accordingly.



STANDARDS EFFECTIVE IN FUTURE PERIOD


Certain new standards, amendments and interpretations to existing standards have been published thatand are relevant to the Group’s activities and are mandatory for the Group’s accounting periods beginning after 1 January 20192022, or later periods and which the Group has decided not to adopt early.early adopt. These include:include the following, and are not expected to have any material impact:

Effective
period
commencing
on or after
IFRS 17Insurance contracts including amendments to IFRS 1701-Jan-23
IFRS 16IAS 1Amendments to IAS 1: Classification of Liabilities as Current or Non-currentLeases1 Jan 201901-Jan-23
IFRS 3, IAS 16 and IAS37
IFRS 17Insurance contracts1 Jan 2021
Amendments to existing standards
IFRIC 23Uncertainty over Income Tax Treatments1 Jan 2019
IFRS 9Amendments to IFRS 9: Prepayment Features with Negative Compensation3: Business Combinations, IAS 16: Property, Plant and Equipment and IAS 37: Provisions, Contingency Liabilities and Contingency Assets1 Jan 201901-Jan-22
IFRS 1, IFRS 9, IFRS 16 and IAS 41Annual Improvements to IFRS (2018-2020 Cycle)01-Jan-23
IAS 288Amendments to IAS 28: Long-term interests in Associates and Joint Ventures1 Jan 2019
Annual Improvements to IFRSs (2015-2017 Cycle)1 Jan 2019
IAS 19Amendments to IAS 19: Plan Amendment, Curtailment or Settlement1 Jan 2019
Amendments to References to the Conceptual Framework in IFRS Standards1 Jan 2020
IFRS 3Amendments to IFRS 3 Business Combinations8 - Definition of a BusinessAccounting Estimates1 Jan 202001-Jan-23
IAS 1
Definition of Material - Amendments to IAS 1 and IFRS Practice Statement 2 - Disclosure of Accounting policies01-Jan-23
IAS 812Amendments to IAS 12 - Deferred Tax related to Assets and Liabilities arising from a Single Transaction1 Jan 202001-Jan-23
IFRS 17Amendment to IFRS 17 - Initial Application of IFRS 17 and IFRS 9 - Comparative Information01-Jan-23


IFRS 16 introduces a single lease accounting model. This standard requires lessees to account for all leases under a single on-balance sheet model. Under the new standard, a lessee is required to recognise all lease assets and liabilities on the balance sheet; recognise amortisation
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Table of leased assets and interest on lease liabilities over the lease term; and separately present the principal amount of cash paid and interest in the cash flow statement. The requirements of IFRS 16 extend to certain service contracts, such as mining contractors in which the contractor provides services and the use of assets, which may impact the Group. Accordingly, the Group is completing a review of relevant contracts to quantify the impact on the consolidated financial statements which will be completed by 31 March 2019 (See Note 21 for further details on finance leases held).Contents


2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

CONSOLIDATION

The consolidated financial information includes the financial statements of the Company, its subsidiaries and the Company’s equity accounted joint ventures using uniform accounting policies for similar transactions and other events in similar circumstances.



SUBSIDIARIES

Subsidiaries are entities over which the Group has power, exposure, or rights, to variable returns from its involvement and the ability to use its power over the investee to affect the amount of the Group's returns; generally accompanying an interest of more than one-half of the voting rights.


Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are deconsolidated from the date that control ceases. The purchase method of accounting is used to account for the acquisition of subsidiaries by the Group. The cost of an acquisition is measured at the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange. Acquisition costs are expensed. Identifiable assets acquired (including mineral property interests or other identifiable intangible assets) and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date, irrespective of the extent of any non-controlling interest. The excess of the cost of acquisition over the fair value of the Group’s share of the identifiable net assets acquired is recorded as goodwill. If the cost of acquisition is less than the fair value of the net assets of the subsidiary acquired, the difference is recognised directly in the statement of comprehensive income.


Intercompany transactions, balances and unrealised gains on transactions between group companies are eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Group.


NON-CONTROLLING INTERESTS

The Group initially recognised any non-controlling interest in the acquiree at the non-controlling interest's proportionate share of the acquiree's net assets. The Group has not elected to take the option to use fair value in acquisitions completed to date.


The total comprehensive income of non-wholly owned subsidiaries is attributed to owners of the parent and to the non-controlling interests in proportion to their relative ownership interests.


JOINT VENTURES

The Group holds interests in one joint venture. In a joint venture the parties that have joint control of the arrangement (the joint venturer) have a right to the net assets of the arrangement. This right is accounted for in the consolidated financial statements using the equity method. Joint control is considered to exist when there is contractual joint control; control being the power to govern the financial and operating policies of an entity so as to obtain benefits from the activities and the ability to use its power over the investee to affect the amounts of the Group'sGroup’s returns by the joint venturers.


Acquisitions
Except for initial recognition under IFRS 11 transition rules, further investments in additional joint ventures are initially recognised at cost. The cost of an acquisition is measured at the fair value of the assets given, equity instruments issued or liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the acquisition. Goodwill on associated companies and joint ventures represents the excess of the cost of acquisition of the associate or joint venture over the Group'sGroup’s share
of the fair value of the identifiable net assets of the associate or joint venture and is included in the carrying amount of the investment.
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2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

JOINT VENTURES (CONTINUED)

Joint ventures are accounted for using the equity method of accounting. In applying the equity method of accounting, the Group’s share of its joint ventures’ post-acquisition profits or losses are recognised in profit or loss and its share of post-acquisition other comprehensive income is recognised in other comprehensive income. These post-acquisition movements and distributions received from the joint venture companies are adjusted against the carrying amount of the investments. When the Group’s share of losses in a joint venture Company equals or exceeds its interest in the joint venture Company, including any other unsecured non-current receivables, the Group does not recognise further losses, unless it has obligations to make or has made payments on behalf of the joint venture Company.


Unrealised gains on transactions between the Group and its joint venture companies are eliminated to the extent of the Group'sGroup’s interest in the joint venture companies. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Trading receivables and payables with joint ventures are classified within trade and other receivables and payables. The accounting policies of joint venture companies have been changed where necessary to ensure consistency with the accounting policies adopted by the Group.


Dividends received are classified as operating cash flows in the consolidated cash flow statement.


The carrying value of the investment in joint venture is compared to the recoverable amounts whenever circumstances indicate that the net book value may not be recoverable. An impairment is recognised in the profit or loss to the extent that the carrying value exceeds the recoverable amount.


Impairment provisions for loans to joint ventures classified as ‘other investments’ in joint venture are recognised based on a forward looking expected credit loss model. The methodology used to determine the amount of the provision is based on whether there has been a significant increase in credit risk since initial recognition of the financial asset. For those where the credit risk has not increased significantly since initial recognition of the financial asset, twelve month expected credit losses along with gross interest income are recognised. For those for which credit risk has increased significantly, lifetime expected credit losses along with the gross interest income are recognised. For those that are determined to be credit impaired, lifetime expected credit losses along with interest income on a net basis are recognised.

SEGMENTAL REPORTING

An operating segment is a group of assets and operations engaged in performing mining or advanced exploration that are subject to risks and returns that are different from those of other segments. Other parts of the business are aggregated and treated as part of a 'corporate‘corporate and exploration'exploration’ segment. The Group provides segmental information using the same categories of information which the Group'sGroup’s chief operating decision-maker utilises. The Group'sGroup’s chief operating decision maker is considered by management to be the board of directors.


The Group has only one operating segment, being that of gold mining. Segment analysis is based on the mining operations and exploration projects that have a significant amount of capitalised expenditure or other fixed assets.


FOREIGN CURRENCY TRANSLATION

Functional and presentation currency
Items included in the financial statements of each of the Group'sGroup’s entities are measured using the currency of the primary economic environment in which the entity operates (the functional currency). The consolidated financial statements are presented in US dollars, which is also the functional currency of the Company and its significant subsidiaries and joint ventures.
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2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

FOREIGN CURRENCY TRANSLATION

Transactions and balances
Foreign currency transactions are translated into the relevant functional currency using the exchange rates prevailing at the date of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the statement of comprehensive income in other income and other expenses.

INTANGIBLE ASSETS

Mineral properties
Mineral properties acquired are recognised at fair value at the acquisition date. Mineral properties are recognised at fair value if acquired as part of a business combination, whereasotherwise they are recognised atcost if acquired as an asset. Mineral properties are tested annually for impairment on the same basis that property, plant and equipment are when there is an indication of impairment. Mineral properties are amortised on units of production basis from the point at which the mine commences production (refer to ‘depreciation and amortisation’ policy below).


PROPERTY, PLANT AND EQUIPMENT

Long-lived assets and mine development costs
Long-lived assets including development costs and mine plant facilities (such as metallurgical plant, tailings and raw water dams, power plant and mine infrastructure) are initially recorded at cost. Development of ore bodies includes the development cost of shaft systems and waste rock removal that allows access to reserves that are economically recoverable in the future. Cost associated with underground development are capitalised when the works provide access to the ore body, whereas costs associated with ore extraction from operating ore body sections are treated as operating costs. Where relevant the estimated cost of dismantling the asset and remediating the site is included in the cost of property, plant and equipment, subsequently they are measured at cost less accumulated amortisation and impairment.


Development costs consist primarily of direct expenditure incurred to establish or expand productive capacity.


Costs are capitalised during the construction of a new mine until commercial levels of production are achieved (refer to 'commercial production'‛commercial production’ below), after which the relevant costs are amortised. Costs are capitalised provided that the project is considered to be commercially, technically and economically viable. Such viability is deemed to be achieved when the Group is confident that the project will provide a satisfactory return relative to its perceived risks and is sufficiently certain of economic production. Costs which are necessarily incurred while commissioning new assets, in the period before they are capable of operating in the manner intended by management, are capitalised under 'Long-lived‘Long-lived assets and mine development costs'costs’.


Development costs incurred after the commencement of production are capitalised to the extent they are expected to give rise to a future economic benefit.

Commercial production
When a mine construction project is substantially complete and ready for its intended use the asset moves into the production stage, the capitalisation of certain mine construction costs ceases and subsequent costs are either regarded as inventory or expensed, except for capitalisable costs related to subsequent mining asset additions or improvements, underground mine development or ore reserve development.


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2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)


PROPERTY, PLANT AND EQUIPMENT (CONTINUED)


The commissioning of an underground mine typically occurs in phases, with sections brought into production whilst deeper levels remain under construction. The shared infrastructures, such as declines of shafts, are assessed to determine whether they contribute to the production areas. Where they contribute to production, the attributable costs are transferred to production assets and start to be
depreciated. The costs transferred comprise costs directly attributable to producing zones or, where applicable, estimates of the portion of shared infrastructure that are attributed to the producing zones.


Development expenditure approval
Development activities commence after project sanctioning by the appropriate level of management. Judgement is applied by management in determining when a project has reached a stage at which economically recoverable reserves exists such that development may be sanctioned. In exercising this judgement, management is required to make certain estimates and assumptions similar to those described below for capitalised exploration and evaluation expenditure. Any such estimates and assumptions may change as new information becomes available.


Stripping costs
InIn surface mining operations, the Group may find it necessary to remove waste materials to gain access to mineral ore deposits prior to and after production commences. This waste removal activity is known as ‘stripping’. Prior to production commencing from a pit, stripping costs are measured internally and capitalised until the point where the overburden has been removed and access to the ore commences. Subsequent to production, waste stripping continues, either as part of ore extraction as a run of mine activity or due tostrategic decisions such as pit push-back campaigns. There are two benefits accruing to the Group from stripping activity during the production phase: usable ore that can be used to produce inventory and improved access to further quantities of material that will be mined in future periods. Economic ore extracted during this period and subsequently is accounted for as inventory. The production stripping costs relating to improved access to further quantities in future periods are capitalised as a stripping activity asset, if and only if, all of the following are met:
a.It is probable that the future economic benefit (improved access to the ore body) associated with the stripping activity will flow to the Group;
b.The Group can identify the component of the ore body for which access has been improved; and
c.The costs relating to the stripping activity associated with that component or components can be measured reliably.


In determining the relevant component of the ore body for which access is improved, the Group componentises its mine into geographically distinct ore body sections or phases to which the stripping activities being undertaken within that component are allocated. Such phases are determined based on assessment of factors such as geology and mine planning.


Once determined that any portion of the production stripping costs should be capitalised, the Group typically uses the average stripping ratio of the component or phase of the mine to which the production stripping cost related to determine the amount of the production stripping costs that should be capitalised, unless the direct costs of stripping activity can be separately identified in which case such costs are capitalised. The Group depreciates the deferred costs capitalised as stripping assets on a unit of production method, with reference to the ex-pit ore production from the relevant ore body component or phase.


Short-lived assets
Short-lived assets including non-mining assets are shown at cost less accumulated depreciation and impairment.


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2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

PROPERTY, PLANT AND EQUIPMENT (CONTINUED)

Depreciation and amortisation
Long-lived assets include mining properties, such as metallurgical plant, tailings and raw water dams, power plant and mine infrastructure, as well as mine development costs and are depreciated on a unit of production basis.basis by using ounces produced to calculate depreciation.


Depreciation and amortisation are charged over the life of the mine (or over the remaining useful life of the asset, if shorter) based on estimated ore tonnes contained ounces in proven and probable reserves to be extracted usingand the relevant asset, to reduceportion of resources considered probable of economic extraction based on the cost to estimated residual values.current LOM plan that benefit from the development and are considered probable of economic extraction. No future capital expenditure is included in the depreciable value. Proven and probable ore reserves and the portion of resources reflect estimated quantities of economically recoverable reserves and resources, which can be recovered in the future from known mineral deposits. Only provenLife of mine contained reserves and probable reservesresources are used in the tonnes milledcontained ounces units of production depreciation calculation. Any changes to the expected life of the mine (or asset) are applied prospectively in calculating depreciation and amortisation charges.

Depreciation of construction and development costs commences when commercial production is achieved, as detailed above. Underground development costs that are attributable to the commissioned sections of an underground mine are depreciated from the date the development provides access to operational areas and ore extraction begins from those areas. Other assets under construction, such as plant improvement projects, are depreciated from the date they are commissioned, based on assessment by the Group’s engineers.


Short-lived assets which include motor vehicles, office equipment and computer equipment are depreciated over estimated useful lives of between two to five years but limited to the remaining mine life. Residual values and useful lives are reviewed, and adjusted if appropriate, at each statement of financial position date.


2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

PROPERTY, PLANT AND EQUIPMENT (CONTINUED)

Changes to the estimated residual values or useful lives are accounted for prospectively. Depreciation starts when the assets are ready and available for use.


Impairment
The carrying amount of the property, plant and equipment and investments in joint ventures of the groupGroup is compared to the recoverable amount of the assets whenever events or changes in circumstances indicate that the net book value may not be recoverable. The recoverable amount is the higher of value in use and the fair value less cost to sell. In assessing the value in use, the expected future cash flows from the assets is determined by applying a discount rate to the anticipated risk adjusted future cash flows. The discount rate used is the group’sGroup’s weighted average cost of capital adjusted for asset specific factors when applicable. An impairment is recognised in the income statement to the extent that the carrying amount exceeds the assets’ recoverable amount. Generally proven and probable reserves are used in the calculations, although limited ore resources may be included when they are considered economically viable and sufficiently likely to be extracted and form part of the approved mine plan. The models use the approved mine plans and exclude capital expenditure which enhance the assets or extractable ore tonnes outside of such approved mine plans. The revised asset carrying amounts are depreciated in line with groupGroup accounting policies. Assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash-generating units) for purposes of assessing impairment. The estimates of future discounted cash flows are subject to risks and uncertainties including the future gold price. It is therefore reasonably possible that changes could occur which may affect the recoverability of property, plant and equipment and investments in joint ventures.


A previously recognised impairment loss is reversed if the recoverable amount increases as a result of a reversal of the conditions that originally resulted in the impairment. This reversal is recognised in the income statement and is limited to the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognised in prior years.


Assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash-generating units) for purposes of assessing impairment. The estimates of future discounted cash flows are subject to risks and uncertainties including the future gold price. It is therefore reasonably possible
that changes could occur which may affect the recoverability of property, plant and equipment.



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2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

INVENTORIES


Inventories include ore stockpiles, gold in process and doré, and supplies and spares and are stated at the lower of cost or net realisable value. The cost of ore stockpiles and gold produced is determined principally by the weighted average cost method using related production costs.


Costs of stockpiles include costs incurred up to the point of stockpiling, such as mining and grade control costs, but exclude future costs of production. Ore extracted is allocated to separate stockpiles based on estimated grade, with grades below defined cut-off levels treated as waste and expensed. While held in physically separate stockpiles, the Group blends the ore from each stockpile when feeding the processing plant to achieve the resultant gold content. In such circumstances, lower and higher grade ore stockpiles each represent a raw material, used in conjunction with each other, to deliver overall gold production, as supported by the relevant feed plan. Kibali’s high and medium grade ore stockpile is above 3.50g/3g/t with a marginal ore cut-off grade of 1.10g/t.0.5g/t


The processing of ore in stockpiles occurs in accordance with the Life of Mine (LOM) processing plan that has been optimised based on the known mineral reserves, current plant capacity and mine design. Ore tonnes contained in the stockpile which are to be milled as per the mine plan over the period beyond the next twelve months, are classified as non-current in the statement of financial position.


Net realisable value of ore stockpiles is determined with reference to estimated contained gold and market gold prices applicable. Ore stockpiles which are blended together or with future ore mined when fed to the plant are assessed as an input to the gold production process to ensure the combined stockpiles are carried at the lower of cost and net realisable value. Ore stockpiles which are not planned to be blended in production are assessed separately to ensure they are carried at the lower of cost and net realisable value, although no such stockpiles are currently held.

Costs of gold inventories include all costs incurred up until production of an ounce of gold such as milling costs, mining costs and directly attributable mine general and administration costs but exclude transport costs, refining costs and royalties. Net realisable value is determined with reference to estimated contained gold and market gold prices.

Stores and materials consist of consumable stores and are valued at weighted average cost after appropriate impairment of redundant and slow moving items. Consumable stock for which the Group has substantially all the risks and rewards of ownership are brought onto the statement of financial position as current assets.

2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)


INTEREST/BORROWING COSTS


Interest is recognised on a time proportion basis, taking into account the principal outstanding and the effective rate over the period to maturity. Borrowing cost is expensed as incurred except to the extent that it relates directly to the construction of property, plant and equipment during the time that is required to complete and prepare the asset for its intended use, when it is capitalised as part of property, plant and equipment. Borrowing costs are capitalised as part of the cost of the asset where it is probable that the asset will result in economic benefit and where the borrowing cost can be measured reliably. No interest or borrowing costs have been capitalised during any of the year or during the prior year.disclosure periods .


ROYALTIES


Royalty arrangements based on mineral production are in place at each operating mine. The primary type of royalty is a net smelter return royalty. Under this type of royalty, the Group pays the holder an amount calculated as the royalty percentage multiplied by the value of gold production at market gold prices less selling costs. A royalty expense is recorded when revenue from the sale of gold is
recognised.





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2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

FINANCIAL INSTRUMENTS


Financial instruments are measured as set out below. Financial instruments carried on the statement of financial position include cash and cash equivalents, trade and other receivables, trade and other payables, investments in marketable securities, loans to joint ventures, and loans to minorities.minorities and lease liabilities. Financial assets and financialliabilities are recognised in the Group’s statement of financial position when the Group becomes a party to the contractual provisions of the instrument.


Financial instruments are initially recognised at fair value when the groupGroup becomes a party to their contractual arrangements. Transaction costs directly attributable to the instrument’s acquisition or issue are included in the initial measurement of financial assets and financial liabilities, except financial instruments classified as at fair value through profit or loss (FVTPL). The subsequent measurement of financial instruments is dealt with below.


Financial assets
On initial recognition, a financial asset is classified as measured at:
a.Amortised cost;
b.Fair value through other comprehensive income (FVTOCI) - equity instruments; or
c.FVTPL.


At initial recognition, the groupGroup measures a financial asset at its fair value plus, in the case of a financial asset not at FVTPL, transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at FVTPL, are expensed.


A financial asset is measured at amortised cost if it is held within the business model whose objective is to hold assets to collect contractual cash flows and its contractual terms give rise, on specified dates, to cash flows that are solely payments of principal and interest on the principal amount outstanding. Interest income from these financial assets is included in finance income using the effective interest rate method. Any gain or loss arising on derecognition is recognised directly in profit or loss and presented in other gains or losses, together with foreign exchange gains or losses. Impairment losses are presented as separate line item in the statement of profit or loss. A gain or loss on a debt investment that is subsequently measured at FVTPL is recognised in profit or loss and presented net within other gains or losses in the period in which it arises. On derecognition of a financial asset, the difference between the proceeds received or receivable and the carrying amount of the asset is included in profit or loss.


Financial assets at amortised cost consist of trade receivables and other receivables (excluding taxes), cash and cash equivalents. Impairment losses are assessed using the forward-looking expected credit loss (ECL) approach. An allowance is recorded for all loans and other debt financial assets not held at FVTPL. The impairment methodology applied depends on whether there has been a significant increase in credit risk. Trade receivable loss allowances are measured at an amount equal to lifetime ECL’s. Loss allowances are deducted from the gross carrying amount of the assets. Bank balances, for which credit risk has not increased significantly since initial recognition, are measured at an amount equal to 12-month ECL.


Cash and cash equivalents
Cash and cash equivalents are carried in the statement of financial position at cost. For the purpose of the cash flow statement, cash and cash equivalents comprise cash on hand, deposits held at call with banks, other short term highly liquid investments with a maturity of three months or less at the date of purchase and bank overdrafts. In the statement of financial position, bank overdrafts are included in
borrowings in current liabilities.


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2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

FINANCIAL LIABILITIES


Loans and borrowings (including bank borrowings when applicable, loans from joint venture partners and related companies and finance leases)borrowing
Borrowings are recognised initially at fair value, net of transaction costs incurred. Borrowings are subsequently stated at amortised cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognised in the statement of comprehensive income over the period of the borrowings using the effective interest method. Borrowings are classified as current liabilities unless the Company has an unconditional right to defer settlement of the liability for at least 12 months after the statement of financial position date.


Trade and other payables
Accounts payable and other short term monetary liabilities, are initially recognised at fair value, which equates to the transaction price, and subsequently carriedat amortised cost using the effective interest method.


REHABILITATION COSTS


The net present value of estimated future rehabilitation costs is provided for in the financial statements and capitalized within property, plant and equipment on initial recognition. Rehabilitation will generally occur on closure or after closure of a mine. Initial recognition is at the time of the construction or disturbance occurring and thereafter as and when additional construction or disturbances take place. The estimates are reviewed annually to take into account the effects of inflation and changes in estimated risk adjusted rehabilitation works cost and are discounted using rates that reflect the time value of money.


Annual increases in the provision due to the unwinding of the discount are recognized in the statement of comprehensive income as a finance cost. The present value of additional disturbances and changes in the estimate of the rehabilitation liability are recorded to mining assets against an increase/decrease in the rehabilitation provision. The rehabilitation asset is amortizedamortised as noted previously. Rehabilitation projects undertaken, included in the estimates, are charged to the provision as incurred.


Environmental liabilities, other than rehabilitation costs, which relate to liabilities arising from specific events, are expensed when they are known, probable and may be reasonably estimated.


PROVISIONS


Provisions are recognised when the Company has a present legal or constructive obligation as a result of past events where it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation, and a reliable estimate of the amount of the obligation can be made.


CURRENT TAX


Current tax is the tax expected to be payable on the taxable income for the year calculated using rates (and laws) that have been enacted or substantively enacted by the reporting date (and when such laws are applicable to the groupGroup allowing for the impact of tax stability protections afforded to the group)Group). It includes adjustments for tax expected to be payable or recoverable in respect of previous periods.


The Group is subject to income tax in several jurisdictions and significant judgement is required in determining the provision for income taxes. During the ordinary course of business, there are transactions and calculations for which the ultimate tax determination is uncertain. As a result, the Group recognises tax liabilities based on estimates of whether additional taxes and interest will be due.

These tax liabilities are recognised when, despite the company's belief that its tax return positions are supportable, the company believes it is more likely than not that a taxation authority would not accept its filing position. In these cases, the Group records its tax balances based on either the most likely amount or the expected value, which weights multiple potential scenarios. The company believes that its accruals for tax liabilities are adequate for all open audit years based on its assessment of many factors including past experience and interpretations of tax law.

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2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

No material uncertain income tax positions exist as at 31 December 2021, nor as at 31 December 2020 or 2019. This assessment relies on estimates and assumptions and may involve a series of complex judgments about future events.

DEFERRED TAXATION


Deferred tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements. However, if the temporary difference arises from initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit noror loss, it is not recognised. Deferred tax is determined using tax rates (and laws) that have been enacted or substantively enacted by the statement of financial position date (and when such laws are applicable to the groupGroup allowing for the impact of tax stability protections afforded to the group)Group) and are expected to apply when the temporary differences reverses. Deferred tax assets are recognised to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilised. Deferred tax is provided on temporary differences arising on investments in subsidiaries and joint ventures, except where the timing of the reversal of the temporary difference is controlled by the Group and it is probable that the temporary difference will not reverse in the foreseeable future.


VALUE ADDED TAX (TVA)


TVA receivables are recognised initially at cost. Subsequently, TVA receivables are measured at amortised cost using the effective interest method, less provision for impairment.


The Group assesses at each reporting period whether there is an indication that these receivables may be impaired taking into account the risk of non-collectability and timing of receipt.

2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)


SHARE CAPITAL


Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction from the proceeds.


CONTINGENT LIABILITIES


The Group discloses contingent liabilities when possible obligations exist as a result of past events, unless the possible outflows of economic benefits are considered remote. By their nature, contingencies will often only be resolved when one or more future events occur or fail to occur. The assessment of such contingencies inherently involves the exercise of significant judgement and estimates of the outcome of future events. In certain circumstances, to provide transparency, the Group voluntarily elects to disclose information regarding claims for which any outflow of economic benefit is considered remote.


LEASES


As lessee
Determining whether an arrangement is, or contains, a lease is basedThe Group adopted IFRS 16 using the modified retrospective approach, with recognition of transitional adjustments on the substancedate of the arrangement and requires an assessmentinitial application (1 January 2019), without restatement of whether fulfillment of the arrangement is dependent on the use of a specific asset or assets and whether the arrangement conveys a right to use the asset. Leases of plant and equipment where the Company assumes a significant portion of risks and rewards of ownership are classified as a finance lease. Finance leases are capitalisedcomparative figures.

The lease liabilities were measured at the estimated present value of the underlyingremaining lease payments. Eachpayments, discounted with the rate determined by reference to the estimated incremental borrowing average rate of 6.81% p.a. Variable lease payment is allocated betweenpayments are only included in the measurement of the lease liability andif they depend on an index or rate. In such cases, the finance chargesinitial measurement of the lease liability assumes the variable element will remain unchanged throughout the lease term. Other variable lease payments are expensed in the period to achievewhich they relate.
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2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

LEASES (CONTINUED)
Subsequent to initial measurement lease liabilities increase as a result of interest charged at a constant rate on the finance balance outstanding. The interest portion of the finance payment is charged to the statement of comprehensive income over theoutstanding and are reduced for lease period. The plant and equipment acquired under the finance leasepayments made. Right-of-use assets are depreciated over the useful lives of the assets, or over the lease term if shorter. Leases in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases.

Payments made under operating leases are charged to the statement of comprehensive incomeamortised on a straight-line basis over the periodremaining term of the lease.

As lessor
Leases in which a significant portionlease or over the remaining economic life of the risks and rewards of ownership are retained byasset if, rarely, this is judged to be shorter than the lessor are classified as operating leases. Lease income under operating leases is recognised to the statement of comprehensive income on a straight-line basis over the period of the lease.lease term.

Where a significant portion of the risks and rewards of ownership are transferred the Group is required to account as though it were acting as a lessor in a finance lease. Hire purchase loans disclosed under receivables represent outstanding amounts due under finance lease arrangements less finance charges allocated to future periods.


REVENUE RECOGNITION


The Company’s primary product is gold, other metals produced as part of the extraction process are considered to be by-products arising from the production of gold. The revenue from the sale of any by-products is insignificant. The Company enters into a contract for the sale of gold at each of its mining operations. The performance obligation under its contract is to supply such gold to the customer, subject to minimum quality specifications with the consideration for such gold sales determined by the market spot price for each ounce of gold at the point of sale and gold content. As the sales from the gold contract is subject to customer survey adjustment, sales are initially recorded based on the results of tests on the material prior to shipment to determine the gold content and specification with such estimates subsequently adjusted to reflect the final gold content determined by the customer shortly after period end. Revenue is recorded to the extent that it is highly probable that there will be no subsequent reversal of such revenue due to gold content or quality specifications. Historical adjustments of this nature have been insignificant.


The performance obligations are considered to be satisfied and control of the gold transferred as the gold leaves the gold room upon collection by the customer, with title, possession and significant risks and rewards transferred at this point with revenue recorded accordingly. Subsequent adjustments are recorded in revenue to take into account final assay and weight certificates from the refinery, if different from the initial certificates. The differences between the estimated and actual contained gold have historically not been significant. Payment terms from the customer are based on 95% as initial payment for sales as agreed on the day of shipment based on the results of tests on the material prior to shipment with the final payment of 5% based on final customer assay and includes an adjustment to the initial 95% provisional payment. The period between provisional invoicing and final pricing, or settlement period, is typically around 5 days.


2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)


EXPLORATION AND EVALUATION COSTS


The Group expensescapitalizes all exploration and evaluation expenditures untilwhere management concludes that the directors conclude that arealization of future economic benefit is more likely than not of being realised, i.e. ‘probable’.not. While the criteria for concluding that expenditure should be capitalised is always probable, the information that the directorsmanagement use to make that determination depends on the level of exploration.


Exploration and evaluation expenditure on brownfieldbrownfields sites, being those adjacent to mineral deposits which are already being mined or developed, is expensed as incurred until the directors are able to demonstrate that future economic benefits are probable through the completion of a prefeasibility study, after which the expenditure is capitalised as a mine development cost. A ‘prefeasibility study’ consists of a comprehensive study of the viability of a mineral project that has advanced to a stage where the mining method, in the case of underground mining, or the pit configuration, in the case of an open pit, has been established, and which, if an effective method of mineral processing has been determined, includes a financial analysis based on reasonable assumptions of technical, engineering, operating economic factors and the evaluation of other relevant factors. The prefeasibility study, when combined with existing knowledge of the mineral property that is adjacent to mineral deposits that are already being mined or developed, allow the directors to conclude that it is more likely than not that the Group will obtain future economic benefit from the expenditures.


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2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

EXPLORATION AND EVALUATION COSTS (CONTINUED)

Exploration and evaluation expenditure on greenfield sites, being those where the Group does not have any mineral deposits which are already being mined or developed, is expensed until such time as the directors have sufficient information to determine that future economic benefits are probable, after which theexpenditure is capitalised as a mine development cost. The information required by directors is typically a final feasibility study however a prefeasibility study may be deemed to be sufficient where the additional work required to prepare a final feasibility study is not significant or the work done at prefeasibility level clearly demonstrates an economic asset. Exploration and evaluation expenditure relating to extensions of mineral deposits which are already being mined or developed, including expenditure on the definition of mineralisation of such mineral deposits, is capitalised as a mine development cost following the completion of an economic evaluation equivalent to a prefeasibility study. This economic evaluation is distinguished from a prefeasibility study in that some of the information that would normally be determined in a prefeasibility study is instead obtained from the existing mine or development. This information when combined with existing knowledge of the mineral property already being mined or developed allow the directors to conclude that more likely than not the Company will obtain future economic benefit from the expenditures. Costs relating to property acquisitions arecapitalised within development costs.


DIVIDEND DISTRIBUTION


Dividend distribution to the Company’s shareholders is recognised as a liability in the Group’s financial statements in the period in which the dividends are approved by the board of directors and declared to shareholders.



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3.3. KEY ACCOUNTING ESTIMATES AND JUDGEMENTS

Some of the accounting policies require the application of significant judgement by management in selecting the appropriate assumptions for calculating financial estimates or determining the appropriate accounting treatment for a transaction.


By their nature, these judgements are subject to an inherent degree of uncertainty and are based on historical experience, terms of existing contracts, management’s view on trends in the gold mining industry and information from outside sources.


The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities are discussed below:



DEMOCRATIC REPUBLIC OF CONGO (DRC) 2018 MINING CODE


In the DRC, the 2018 Mining Code and related amended Mining Regulations came into effect during the first half of the year2018 and removed fiscal stability protections under the 2002 Mining Code and introduced a series of potentially significant adverse changes to tax legislation. Kibali has taken legal advice and has been exploring all options to protect its vested rights under the 2002 Mining Code, as well as the specific state guarantees it previously received regarding fiscal stability. Without prejudice to its rights under the stability protections Kibali is currently paying certainthe additional taxes as per the 2018 mining code, while it engages with government. Continued engagement with government has resulted in the submission of an application for a number of exemption and waivers in terms of Article 220 of the 2018 law as part of the Group’s efforts to reach a mutually acceptable way forward. Article 220 affords benefits to mining companies in landlocked infrastructurallyinfrastructural challenged provinces, such as where the Kibali gold mine is located.


3.    KEY ACCOUNTING ESTIMATES AND JUDGEMENTS(continued)




VALUE ADDED TAX (TVA)


Included in trade and other receivables (refer to noteNote 13) is a recoverable TVA balance (including recoverable TVA on fuel duty and after discounting provisions) of US$180.5163.2 million (2017:(2020: US$134.5153.7 million) (2016:(2019: US$131.2147.8 million) owing by the fiscal authorities in the DRC.

The Group continues to seek recovery of TVA in the DRC, in line with the mining code and theMining Code. The carrying value of the receivable has been assessed considering factors such as the level of receipts and tax offsets in the period and to date, the impact of the settlement agreement reached in Q4 2018 (see below)prior years, relationships and communications with government officials and the tax authority and the limited quantum of disputed submissions. Judgement exists in assessing recovery of these receivables. Whilereceivables as whilst the TVA balance is considered collectible, uncertainty exists regarding the timing of receipts and offsets.

Kibali reached an agreement with the Ministry of Finance in late 2018, on the reimbursement of the refundable TVA balance. The agreement allows for US$40.0 million to be refunded initially, while the remaining balance can be settled on an offset basis against other taxes with potential for further cash receipts. As part of the settlement the Group agreed to write off US$20.6 million of the outstanding TVA receivable which has been recorded as an expense (note 5) andwhereby the DRC Government agreed to redenominate historical TVA from Congolese Francs (CDF) into US dollars based on the historical exchange rates applicable at the date of original submissions of the overdue TVA. This latter revisionIn early 2020, Kibali reached redenomination agreement for the period up to February 2020 that gave rise to a US$56.7 million foreign exchange gain of $4.3 million recorded in the income statement (note(Note 5). During 2020, the DRC Government indicated that offsets and cash repayments would be suspended as a result of liquidity constraints due to the global COVID-19 pandemic. Kibali did not receive any cash repayments or offsets during 2021.


The

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3. KEY ACCOUNTING ESTIMATES AND JUDGEMENTS (CONTINUED)

VALUE ADDED TAX (TVA) (CONTINUED)

Given the continued delays in recovery, the outstanding receivable has beenwas discounted by US$37.357.3 million (2017:(2020: US$20.050.1 million) (2016:(2019: US$7.837.3 million) which required estimates as to the timing of future receipts including the remaining portion of the US$40.0 million under the settlement agreement and the level and timing of future offsets with reference to relevant taxes forecast under the mine plan, historical levels and other factors. The increase in the year was based on a probability weighted scenario analysis that takes into account numerous recoverability profiles, following the DRC Government’s decision in July 2020 to suspend offsets and cash repayments. A discount rate of 9.5% has been7.88% was applied to both the expected cash receipts and 3% applied to the amounts forecasted to be recovered through offsetting.offsetting across all scenarios in the assessment. Within the scenarios, Management have assumed a recoverable periodvarying periods of 10 years with an increased level of receiptsdelay in the next 12 months, but a sloweroffsets, and have included staggered recovery through offsets over the remainder of the period. The increase in provisionprofiles which reflects an increasemanagement’s best estimates. A 1% increase/decrease in the discount rate will increase/decrease the provision by US$6.1 million/US$6.3 million. Applying additional weighting based on management assessment of likelihood to reflect assessed risk and an extension in the staggered recovery period from 48 months to 10 years. A 1% change in the discount rateprofiles would increase the provision by US$1.77.8 million.


CARRYING VALUES OF PROPERTY, PLANT, EQUIPMENTAND EQUIPMENTMINERAL PROPERTIES


The Group assesses at each reporting period whether there is any indication that these assets may be impaired (refer to note 9Note 10 and 10)11). If such indication exists, the Group estimates the recoverable amount of the asset. The recoverable amount is assessed by reference to the higher of ‘value in use’ (being the net present value of expected future cash flows of the relevant cash generating unit) and ‘fair value less cost to sell’. The estimates used for impairment reviews are based on detailed mine and operating plans. Future cash flows are based on estimates of:
a.The quantities of the proven and probable reserves and certain limited ore resources being those for which there is a high degree of confidence in economic extraction and certain limited ore resources;extraction;
b.Future production levels;
c.Future commodity prices; including an oil forecast at US$70bbl (2017:(2020: US$65bbl) (2019: US$70bbl) (2016: US$60bbl);
d.Future cash cost of production and capital expenditure associated with extraction of the reserves and certain limited ore resources in the approved mine plan;
e.Future gold prices -– a gold price curve was used for the impairment calculations starting at a US$1 250/700/oz gold price (2017:(2020: US$1 250oz) (2016:700/oz) (2019: US$1 200/350/oz) and increasing at an average of 2.5% per annum (2017: 2.0%) (2016: 1.5%). TheA gold price curveof US$1 700/oz was determined after consideration of a range of forecast techniques and data sources;used for the 2022 year (2023: $1 650/oz) (2024: $1 550/oz) (thereafter at US$1 500/oz);
f.A real discount rate equivalent to 8.6% pre-tax (2017: 8.2%(2020: 10.3%) (2016: 7.8%(2019: 8.7%); and.
An inflation rate of 2.5% (2017: 2.5%) (2016: 2%).

A reduction in forward gold prices in excess of 27.0% or an increase in the discount rate to 18.7% is required to give rise to impairment at the mine. However, having considered such scenarios, the directors remain satisfied that no impairment is appropriate. The model is considered suitably conservative with proven and probable reserves based on a US$1 000/oz gold price (2017: US$1 000/oz) (2016: US$1 000/oz).


OPEN CAST MINE STRIPPING


The Group capitalises costs, associated with stripping activity, to expose the orebody, within mining assets. Judgement is required in determining the relevant section or phase of the orebody to which stripping activity relates, based on assessment of factors such as mine planning, geology of the open cast pits and strategic board decisions such as the pushback campaigns which requires judgement over the eligible costs. The Group capitalised US$9.236.5 million (2017:(2020 US$19.212.2 million) (2016:(2019: US$15.29.1 million) to stripping assets with a net book value of US$5.511.4 million (2017:(2020: US$12.319.1 million) (2016:(2019: US$9.68.6 million). The capitalised stripping costs relate to four open cast satellite pits Pakaka, Kombokolo,Aerodrome, KCD, Sessenge and Sessenge.Gorumbwa. The Group subsequently depreciates relevant stripping assets as that section of the orebody is mined which requires judgement as to the relevant section of the orebody for depreciation.



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3. KEY ACCOUNTING ESTIMATES AND JUDGEMENTS(continued) (CONTINUED)



CAPITALISATION AND DEPRECIATION


There are several methods that could be adopted for calculating depreciation, i.e. the straight line method, the production method using ounces produced and the production method usingor tonnes milled. The directors believe that the tonnes milledounces produced method is the best indication of plant and infrastructure usage. Refer to note 2 for the depreciation policy. Estimates are required regarding the allocation of assets to relevant proven and probable reserves and certain limited resources in the units of production calculations, with assessments involving the Group’s mining, capital and geology departments. Proven and probable reserves and certain limited resources are used in each depreciation calculation, which is considered to be a suitably conservative measure of the future ore extractable using existing assets. Expenditure incurred to date in underground infrastructure development considered to have been commissioned, is depreciated over the remaining proven and probable reserves and certain limited resources of the underground mine, as the infrastructure provides access to the future mining areas.


The Group applies judgement in allocating costs between operating and capital items in respect of underground mining and in determining the date depreciation commences. Costs are capitalised when the activity provides access to future ore bodies and are expensed as operating costs when the works involve extraction of ore from operational sections of the ore body. The nature of activity is assessed based on information provided by contractors, together with inspections by the Group’s mining teams. Direct labour, materials and other costs are specifically allocated based on the activity performed. Indirect costs that are attributable to underground works are allocated between capital and operating expenses based on factors such as development versus operating metres.


Judgement is required in determining the point at which assets under construction at Kibali began commercial production and should be depreciated. Depreciation start dates are determined considering the factors detailed in Note 2 and during 2015 Kibali underground mine assets attributable to production started to be depreciated. The commissioning of the underground happens in phases and as the sections are brought into production the attributable costs are transferred and depreciated. Judgement was applied in identifying the costs considered attributable to this production. Additionally, given ongoing mine construction and development, judgement was required in allocating costs between operating costs, ore stockpiles and ongoing capital works. Costs have been allocated based on the underlying activity and economic benefits.


GOLD PRICE ASSUMPTIONS


The following gold prices were used in the mineral reserves optimisation calculation:
2018    2017     20162021 2020 2019
US$/oz 1 000    1 000    1 0001,200(2) 1,200(3) 1,200


Changes in the gold price used could result in changes in the mineral reserve optimisation calculations. Mine modelling is a complex process and hence it is not feasible to perform sensitivities on gold price assumptions in respect of ore reserves.


DETERMINATION OF ORE RESERVES


The Group estimated its Mineral Reserves and Mineral Resources based on information compiled by qualified persons according to the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) 2014 Definition Standards for Mineral Resources and Mineral Reserves dated May 10, 2014 (CIM (2014) Standards) as incorporated with NI 43-101 since the 2019 financial year. Previously the Group based its estimates itsof ore reserves and mineral resources based on information compiled by Competent Persons as defined in accordance with the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves of December 2012 (the 2012 JORC code). The change in basis of estimation, driven by requirements of the Toronto Stock Exchange following the Randgold and Barrick merger, did not result in a material impact to reserves and resources.


(2) A gold price range of US$1 200 to US$1 500/oz was used, pit dependant, with the majority (75%) at $1 200/oz
(3) A gold price range of US$1 000 to US$1 300/oz was used, pit dependant, with the majority (85%) at $1 200/oz
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3. KEY ACCOUNTING ESTIMATES AND JUDGEMENTS (CONTINUED)

DETERMINATION OF ORE RESERVES (CONTINUED)

Reserves determined in this way are used in the calculation of depreciation, amortisation and impairment charges, as well as the assessment of the carrying value of mining assets and timing of mine closure obligations. There are numerous uncertainties inherent in estimating ore reserves and assumptions that are valid at the time of estimation may change significantly when new information becomes available. Changes in the forecast prices of commodities, exchange rates, production costs or recovery rates may change the economic status of reserves and may, ultimately, result in the reserves being restated.


FUTURE REHABILITATION OBLIGATIONS


The net present value of current rehabilitation estimates have been discounted to their present value at 3%using a real risk free rate of 0% (2020: 0%) (2019: 0.5%) per annum, (2017: 2.5%) (2016: 2.5%)with cash flows adjusted for a market risk rate of 10% being the prevailing risk free interest rates.rates at the time. The majority of expenditure is expected to be incurred at the end of the mine life. The Group undertakes regular assessments by external experts of its mine closure plans, together with assessments by internal staff in the intervening periods, to determine the required rehabilitation works, cost of works and timing of such works. Judgment is required in determining the appropriate costs, timing of costs, discount rates and inflation. inflation (when nominal discount rate used).

For further information, including the carrying amounts of the liabilities, refer to Note 19.18. A 1% decrease0.25% change in the discount rate on the Group’s rehabilitation estimates would result in an impact of US$3.11.0 million (2017:(2020: US$3.2 million) (2016:1.0 million at 0.25% real) (2019: US$3.2 million)1.0 million at 0.25% nominal) on the provision for environmental rehabilitation, and an impact of US$0.2 million (2017:(2020: US$0.2 million) (2016:(2019: US$0.020.2 million) on the statement of comprehensive income.


STOCKPILES, GOLD IN PROCESS AND PRODUCT INVENTORIES


Costs that are incurred in or benefit the productive process are accumulated as stockpiles, gold in process and product inventories. Net realisable value tests are performed at least annually and represent the estimated future sales price of the product based on contained gold and metals prices, less estimated costs to complete production and bring the product to sale. JudgementJudgment is required in assessing whether stockpiles of different grades should be tested individually, or tested as inputs to the gold production process,

3.    KEY ACCOUNTING ESTIMATES AND JUDGEMENTS(continued)


STOCKPILES, GOLD IN PROCESS AND PRODUCT INVENTORIES (continued)

as detailed in the Group’s accounting policy. In the current year, the stockpiles were tested reflecting the planned blended feed of such stockpiles to the mill on the basis that they are blended together and with future ore mined.


Stockpile quantities are measured by estimating the number of tonnes added and removed from the stockpile, the number of contained gold ounces based on assay data, and the estimated recovery percentage based on the expected processing method. Stockpile tonnages are verified by periodic surveys. The forecast gold prices and cost escalators were those used in the impairment test detailed above.


EXPLORATION AND EVALUATION EXPENDITURE


The Group has to apply judgement in determining whether exploration and evaluation expenditure should be capitalised or expensed. Management exercises this judgement based on the results of economic evaluations, prefeasibility or feasibility studies. Costs are capitalised where those studies conclude that more likely than not the Group will obtain future economic benefit from the expenditures.


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3. KEY ACCOUNTING ESTIMATES AND JUDGEMENTS (CONTINUED)

RECOVERY OF DEFERRED TAX ASSETSLIABILITY/ASSET

Management have recognised a deferred tax assetliability of US$27.3196.7 million (2017:(2020: US$43.289.6 million deferred tax asset) (2016:liability) (2019: US$11.19.6 million deferred tax liability)asset). The Group hashad to apply judgement in determining the recoverable amount of deferred tax assets.assets recognized in 2019. Deferred tax assets are recognised to the extent that their utilisation is probable, being based upon whether it is more likely than not that sufficient and suitable taxable profits will be available in the future, against which the reversal of temporary differences can be deducted. The recoverability of the asset has beenwas assessed considering factors such as the underlying assumptions in the life of mine plan, the operating performance of the mine and any restrictions under the applicable DRC tax code having due consideration to the tax stability protections, as detailed in the "DRC 2018 Mining Code" above.

The Group considers the Although Kibali has a deferred tax assetsliability in financial year 2021 accumulated losses carried forward, can still be utilised.

CASH HELD IN DRC

Judgment has been exercised in evaluating the extent to be recoverable owingwhich expected credit losses apply in relation to cash balances held in the latest lifeDRC. Refer to Note 22.
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4. REVENUE

The company has disaggregated revenue into various categories in the following table, which is intended to depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic date.

   31 Dec
       2021
 US$’000
   31 Dec
      2020
US$’000
   31 Dec
       2019
 US$’000
Primary geographic market
Democratic Republic of Congo1,469,221 1,440,328 1,122,940 
1,469,221 1,440,328 1,122,940 
Product type
Gold doré1,465,793 1,437,297 1,120,743 
Silver3,428 3,031 2,197 
1,469,221 1,440,328 1,122,940 
Timing of transfer of goods
Point in time1,469,221 1,440,328 1,122,940 
1,469,221 1,440,328 1,122,940 



 31 Dec 2018
 31 Dec 2017
 31 Dec 2016
 $’000
 $’000
 $’000
Primary geographic market     
Democratic Republic of Congo1,041,035
 754,852
 709,372
 1,041,035
 754,852
 709,372
Product type     
Gold doré1,041,035
 754,852
 709,372
 1,041,035
 754,852
 709,372
Timing of transfer of goods     
Point in time1,041,035
 754,852
 709,372
 1,041,035
 754,852
 709,372






NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)




5. OTHER INCOME AND EXPENSES


31 Dec
2021
31 Dec
2020
31 Dec
2019
31 Dec 2018
 31 Dec 2017
 31 Dec 2016

US$’000US$’000US$’000
$’000
 $’000
 $’000
Other income from operating activities comprise:     
Other Income:Other Income:

Other income174
 146
 136
Other income

147 169 170 
Net foreign exchange gains56,664
 —
 —
Net foreign exchange gains

741 2,035 — 
Dividend receivedDividend received320 — — 
56,838
 146
 136

1,208 2,204 170 

Refer to TVA in note 3 for details of the foreign exchange gain included above related to the settlement agreement reached with the DRC Government in Q4 2018.
The total other income is not considered to be part of the main revenue generating activities and as such the Group presents this income separately from revenue.











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 31 Dec 2018
 31 Dec 2017
 31 Dec 2016
 $’000
 $’000
 $’000
Other expenses     
Management Fee4,478
 4,385
 4,296
Net foreign exchange loss2,917
 38,469
 36,134
Discounting provision (Refer to note 3)37,893
 12,177
 7,820
 45,288
 55,031
 48,250
5. OTHER INCOME AND EXPENSES (CONTINUED)



31 Dec
2021
31 Dec
2020
31 Dec
2019

US$’000US$’000US$’000
Other Expenses:

Management fee

6,216 4,667 4,563 
COVID-19 specific costs35 18,608 — 
Other expenses18,644 — — 
Net foreign exchange loss

— — 1,458 
Provision for impairment against TVA receivable and related expenses

8,351 14,202 — 

33,246 37,477 6,021 

The discounting provision movementUS$0.35 million (2020: $18.6 million) (2019: nil) relates to TVA receivables (referCOVID-19 specific costs, notably laboratory testing facilities on the mine, personal protective equipment for staff and local area, donations and a local medical clinic and testing center.

Included in other expenses are $4.4m community contribution fees, $3.9m bank fees on dividends, $3.6m community resettlement program, $2.8m environmental tax, $1.1m social expenditure and $2.0m legal related.

Also refer to note 3) which is made up of US$17.3m (2017: US$12.2 million, 2016: US$7.8 million) increase in the discounting provision, and US$20.6m write off of TVA balance as part of the TVA settlement agreement. Refer to noteNote 3 for details.details regarding the net foreign exchange gains incurred.





6.MINING AND PROCESSING COSTS
31 Dec31 Dec31 Dec
202120202019
US$’000US$’000US$’000
Mining and processing costs comprise:
Mine production costs264,556 249,395 263,608 
Movement in production inventory and ore stockpiles(15,340)2,924 (32,953)
Depreciation and amortisation243,958 241,311 282,180 
Other mining and processing costs194,912 176,508 175,961 
688,086 670,138 688,796 


 31 Dec 2018
 31 Dec 2017
 31 Dec 2016
 $’000
 $’000
 $’000
Mining and processing costs comprise:     
Mine production costs264,122
 232,209
 202,323
Movement in production inventory and ore stockpiles(12,154) 28,933
 (7,389)
Depreciation and amortisation329,519
 264,415
 210,925
Other mining and processing costs190,772
 173,423
 188,863
 772,259

698,980

594,722
7. EXPLORATION AND CORPORATE EXPENDITURE
31 Dec
2013
31 Dec
2012
31 Dec
2011
202120202019
US$’000US$’000US$’000
Exploration and corporate expenditure comprises:
Exploration expenditure4,214 4,295 7,123 
Corporate expenditure1,634 1,979 6,563 

5,848 6,274 13,686 


















F - 110
 31 Dec 2018
 31 Dec 2017
 31 Dec 2016
 $’000
 $’000
 $’000
Exploration and corporate expenditure comprises:     
Exploration expenditure3,213
 2,760
 2,748
Corporate expenditure2,941
 5,445
 3,650
 6,154

8,205

6,398
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8. FINANCE INCOME AND COSTS

31 Dec
2012
31 Dec
2012
31 Dec
2011

202120202019

US$’000US$’000US$’000
Finance income comprise:
Interest received – loans and receivables3,277 2,664 1,389 
Bank interest2,341 4,248 2,981 
Total finance income5,618 6,912 4,370 
Finance costs comprise:
Interest expense on finance lease(5,428)(4,869)(3,153)
Interest paid on overdrafts— (1,215)(289)
Unwinding of discount on provisions for Rehabilitation(485)(376)(531)
Total finance costs(5,913)(6,460)(3,973)
Net finance income/(costs)(295)452 397 


 31 Dec 2018
 31 Dec 2017
 31 Dec 2016
 $’000
 $’000
 $’000
Finance income comprise:     
Bank Interest20
 20
 15
Interest received – loans and receivables3,360
 4,127
 4,720
Total finance income3,380

4,147

4,735
Finance costs comprise:     
Interest expense on finance lease(3,359) (3,931) (4,482)
Interest expense on bank borrowings(515) (1,018) (467)
Unwinding of discount on provisions for Rehabilitation(591) (529) (349)
Total finance costs(4,465)
(5,478)
(5,298)
Net finance costs(1,085)
(1,331)
(563)
9. INCOME TAXES
  31 Dec 2018
 31 Dec 2017
 31 Dec 2016
  $’000
 $’000
 $’000
Current taxation —
 —
 7,868
Deferred taxation1215,972
 (54,333) (30,830)
  15,972

(54,333)
(22,962)

31 Dec31 Dec
31 Dec

202120202019
US$’000US$’000US$’000
Current taxation

55,67157,83444,316
Deferred taxation12107,04499,25617,618
Withholding tax18,000——

180,715157,09061,934


The tax on the group’sGroup’s profit before tax differs from the theoretical amount that would arise using the statutory tax rate applicable to the Group’s operations. Withholding tax arose from the dividend payment made from Kibali Goldmines SA to Moto (Jersey) 2 Limited and Kibali (Jersey) Limited.

31 Dec31 Dec31 Dec

202120202019

US$’000US$’000US$’000
Profit before tax

674,353661,787362,246
Tax calculated at the DRC effective tax rate of 30%202,306198,537108,674 
Withholding tax18,000
Reconciling items:

Exempt income

(56,141)(54,694)(54,359)

Other differences

16,55013,2477,619
Taxation charges

180,715157,09061,934
 31 Dec 2018
 31 Dec 2017
 31 Dec 2016
 $’000
 $’000
 $’000
Profit/(loss) before tax227,970
 (40,349) 26,728
Tax calculated at the DRC effective tax rate of 30%68,391
 (12,105) 8,018
Reconciling items:     
Exempt income(50,569) (40,948) (38,922)
Other permanent differences(1,850) (1,280) 74
Corporate tax at 1/100 from revenue—
 —
 7,868
Taxation (credit) / charges15,972

(54,333)
(22,962)


Kibali (Jersey) Limited is subject to an income tax rate in Jersey at 0%. In the DRC, Kibali is subject to corporation tax at 30%. The mine was historically required to payIncluded in current taxation for 2019 is an amount of US$15.5 million paid in respect of 2018. This payment arose as a minimum of 1/100result of the Company’s revenue as tax. Whilstapplication of a provision in the mine paid these amounts it has always disputed that2018 Mining Code restricting the tax should be appliedapplication of unredeemed capital allowances against taxable income to mining companies. During 2017, the mine received confirmation from the tax authority that no minimum tax applies and therefore no minimum tax has been recorded in 2018 (2017: nil) (2016: US$7.9 million).60% of such taxable income. The Group is seeking recoveryhas previously resisted the application of past taxesthis provision on the basis of the stability protection in the 2002 Mining Code. However, during 2019, at the time of making the final 2018 corporate tax payment, the Group had, under duress, applied the restriction on the utilisation of unredeemed capital allowances, resulting in an additional charge of US$13.315.5 million but no asset has been recognised as there is currently insufficient certainty of recovery due to current taxation and an ongoing dispute.equivalent increase in the deferred tax asset. Kibali have capital allowances for deduction against future mining income which are partially offset by accelerated capital allowances on property, plant and equipment. Kibali (Jersey) Limited’s estimated tax deductions carried forward at 31 December 20182021 amounted to US$477.1285.6 million (2017:(2020: US$520.5355.7 million) (2016:(2019: US$359.4450.4 million) at the tax rate of 30% which are reduced by accelerated capital allowances to result in a net deferred tax asset recorded. Referrecorded up to note 3 for detailsthe financial year 2019. In the current year, the Group has a deferred tax liability of US$196.7 million. In addition, withholding tax arose from the 2018 Mining Codedividend payments from Kibali Goldmines SA to Kibali (Jersey) and the Group’s assessment regarding its fiscal stability protections.Moto (Jersey) 2 Limited.

F - 111




10.    PROPERTY, PLANT AND EQUIPMENT

Table of Contents



10. PROPERTY, PLANT AND EQUIPMENT

31 Dec31 Dec31 Dec

202120202019

US$’000US$’000US$’000
Mine properties, mine development costs and mine plant facilities and equipment
Cost
Balance at the beginning of the year3,161,305 3,004,474 2,868,026 
Additions

177,331 156,831 136,448 
Balance at the end of the year

3,338,636 3,161,305 3,004,474 




Accumulated depreciation




Balance at the beginning of the year(1,314,559)(1,111,627)(879,493)
Depreciation charged for the year(212,786)(202,932)(232,134)
Balance at the end of the year(1,527,345)(1,314,559)(1,111,627)
Net book value1,811,291 1,846,746 1,892,847 




 31 Dec 2018
 31 Dec 2017
 31 Dec 2016
 $’000
 $’000
 $’000
Mine properties, mine development costs and mine plant facilities and equipment     
Cost     
Balance at the beginning of the year2,722,330
 2,475,924
 2,266,854
Additions145,696
 246,406
 209,070
Balance at the end of the year2,868,026
 2,722,330
 2,475,924
      
Accumulated depreciation     
Balance at the beginning of the year(614,612) (407,618) (254,551)
Depreciation charged for the year(264,881) (206,994) (153,067)
Balance at the end of the year(879,493) (614,612) (407,618)
Net book value1,988,533
 2,107,718
 2,068,306


Long-lived assets and development costs
Included in plant and equipment are long-lived assets and development costs which are amortised on a units of production basis as detailed in noteNote 3 and include mining properties, such as processing plants, tailings facilities, raw water dams and power stations, as well as mine development costs. The net book value of these assets was US$1 903583 million at 31 December 2018 (2017: US$2 023 million) (2016:2021 (2020: US$1 997708 million) (2019: US$1 784 million). The value of assets under construction included in plant and equipment that are not depreciated is US$189.2294.0 million (2017:(2020: US$229.9232.5 million) (2016:(2019: US$507.0209.2 million). Refer to noteNote 3 for judgements applied with regards to stripping assets.

Short-lived assets
Included in property, plant and equipment are short-lived assets which are depreciated over a short life which reflects their likely useful economic life and are comprised of motor vehicles, computer equipment, aircrafts and fixtures and fittings. The net book value of these assets was US$66.0167.1 million at 31 December 2018 (2017:2021 (2020: US$51.675.9 million) (2016:(2019: US$7.966.2 million).

Decommissioning asset
A decommissioning asset has been recognised relating to the rehabilitation liability to the value of US$15.5 million (2017:(2020: US$17.2 million) (2016:(2019: US$17.116.1 million) (refer to note 19)Note 18). Depreciation of the decommissioning asset begancommenced on 1 October 2013 when the Group commenced commercial production. The asset is depreciated over the life of the mine on a unit of production basis.basis (Refer to Note 3).


LeasedRight of Use assets (ROU)
The net carrying amount of property, plant and equipment includes the following amount in respect of assets held under finance lease.
 31 Dec 2018
 31 Dec 2017
 31 Dec 2016
 $’000
 $’000
 $’000
      
Finance Lease Mining Assets4,817
 16,627
 46,153

Right of Use asset, which also includes the KAS 1 Limited (KAS) is an asset leasing joint venture in which the Group has a 50.1% interest. Together with Bougues Traveux Publics SAS (BYTP), the Group provides funding to KAS to buy the assets and in return leases the assets under a finance lease to Kibali, a subsidiary(“KAS”) assets.


31 Dec31 Dec31 Dec
202120202019
US$’000US$’000US$’000
ROU Assets45,449 46,175 26,503 
45,449 46,175 26,503 





F - 112
Table of the Group.Contents




11. MINERAL PROPERTIES
31 Dec31 Dec31 Dec
202120202019
US$’000US$’000US$’000
Cost
At the beginning and end of the year745,092 745,092 745,092 
Amortisation
At the beginning of the year(379,039)(340,660)(290,613)
Charge for the year(31,172)(38,379)(50,047)
At the end of the year(410,211)(379,039)(340,660)
Net book value334,881 366,053 404,432 
 31 Dec 2018
 31 Dec 2017
 31 Dec 2016
 $’000
 $’000
 $’000
Cost     
At the beginning and end of the year745,092
 745,092
 745,092
Amortisation     
At the beginning of the year(225,975) (168,556) (110,698)
Charge for the year(64,638) (57,419) (57,858)
At the end of the year(290,613) (225,975) (168,556)
      
Net book value454,479

519,117

576,536


Mineral properties represent the amounts attributable to licence interest on the purchase of Moto Goldmines Limited (Moto) in 2009. The balance has been amortised over the life of mine on a unit of production basis since the Group commenced commercial production on 1 October 2013.




12. DEFERRED TAXATION
31 Dec31 Dec31 Dec
202120202019
US$’000US$’000US$’000
Deferred taxation is calculated on temporary differences under the liability method using a tax rate of 30% in respect of the DRC operations.
The movement on deferred taxation is as follows:
At the beginning of the year(89,610)9,647 27,265 
Statement of comprehensive income charge (Refer to Note 9)(107,044)(99,256)(17,618)
At the end of the year(196,654)(89,609)9,647 
Deferred taxation comprise the following:
Tax losses carried forward attributable to accelerated capital allowances285,632 355,742 450,408 
Accelerated capital allowances(482,286)(445,351)(440,761)
Net deferred taxation (liability) / asset(196,654)(89,609)9,647 
 31 Dec 2018
 31 Dec 2017
 31 Dec 2016
 $’000
 $’000
 $’000
Deferred taxation is calculated on temporary differences under the liability method using a tax rate of 30% in respect of the DRC operations.     
The movement on deferred taxation is as follows:     
At the beginning of the year43,237
 (11,096) (41,926)
Statement of comprehensive (charge) / credit(15,972) 54,333
 30,830
At the end of the year27,265

43,237

(11,096)
Deferred taxation comprise the following:     
Tax losses carried forward attributable to accelerated capital allowances477,104
 520,526
 359,449
Accelerated capital allowances(449,839) (477,289) (370,545)
Net deferred taxation asset / (liability)27,265

43,237

(11,096)


The Group’s capital allowance pools have no time restriction for utilisation. Refer to Note 3 for an assessment of the utilisation of this deferred tax asset.



F - 113
Table of Contents



13. TRADE AND OTHER RECEIVABLES
31 Dec31 Dec31 Dec
202120202019
US$’000US$’000US$’000
Advances to contractors225 608 1,963 
Trade receivables22,805 1,202 26,580 
Prepayments and other receivables34,302 36,050 31,576 
Loan to SOKIMO (refer Note 26)25,897 23,933 22,090 
TVA receivables163,193 153,674 147,825 
246,422 215,467 230,034 
Less: Non-current portion

Loan to SOKIMO Irefer to Note 26)25,897 23,933 22,090 
Drilling down payment3,417 8,161 — 
Other loans and receivables (including TVA receivables)163,193 153,674 118,897 
192,507 185,768 140,987 
Current portion53,915 29,699 89,047 
 31 Dec 2018
 31 Dec 2017
 31 Dec 2016
 $’000
 $’000
 $’000
Advances to contractors3,288
 2,280
 6,070
Trade receivables11,114
 28,295
 1,497
Prepayments and other receivables33,371
 21,544
 24,239
Loan to SOKIMO (refer note 28)20,393
 18,827
 17,381
Other loans2,150
 8,360
 3,081
TVA receivables180,518
 134,514
 131,214
Hire purchase loans—
 4,465
 10,978
 250,834

218,285

194,460
Less: Non-current portion     
Loan to SOKIMO20,393
 18,827
 17,381
Other loans and receivables (including TVA receivables)117,458
 105,768
 65,616
Hire purchase loans—
 699
 4,438
 137,852

125,294

87,435
Current portion112,982

92,991

107,025

13.    TRADE AND OTHER RECEIVABLES (continued)

 31 Dec 2018
 31 Dec 2017
 31 Dec 2016
 $’000
 $’000
 $’000
      
Gross hire purchase loans – minimum lease payments:     
No later than 1 year—
 3,766
 6,540
Later than 1 year and no later than 5 years—
 699
 4,438
Later than 5 years—
 —
 —
Gross investment on hire purchase loans—

4,465

10,978


The fair values of trade and other receivables classified as loans and receivables are approximate to the carrying value.


The classes within trade and other receivables do not contain impaired assets however TVA receivables and TVA and duties on fuel balances have been discounted with a provision of US$57.3 million (2020: US$50.1 million) (2019: US$37.3 million (2017: US$20.0 million) (2016: US$7.8 million) recognised and US$20.6 million (2017: nil, 2016: nil) was written off as part of the settlement agreement with the DRC Government.recognised. The credit quality of receivables that are not past due or impaired remains very high. The maximum exposure to credit risk at the reporting date is the faircarrying value of each class of receivable mentioned above. The Company does not hold any collateral as security. Refer to note 23Note 22 for further information on the concentration of credit risk.


The terms of payment of trade receivables is less than seven days, advances to contractors 30 days and TVA is recoverable under the mining codeMining Code once submissions are approved. The Group continues to seek recovery of TVA in line with the mining code.Mining Code. Judgement exists in assessing recovery of this amount. See noteNote 3 for further detail.


The loan to SOKIMO bears interest at 8% and the loan and interest will be repaid through future dividends..

The hire purchase loans, receivable from a contractor, bear interest at the aggregate of 10% and the Federal Reserve Rate of 0.75%. The hire purchase loans are repayable over 3 years. The hire purchase loans were settled during the year, leaving no remaining balance.


The balance of "other loans"“prepayments and other receivables” includes loans to related parties of US$1.8 million (2020: US$ 0.2 million) (2019: US$1.5 million (2017: US$ 0.9 million) (2016: US$1.1 million), these. These loans are not required to be paid within 12 months and have no termstherefore been classified as non-current.



F - 114
Table of repayment. All non-current receivables are due after 12 months.Contents




14. INVENTORIES AND ORE STOCKPILES
31 Dec31 Dec31 Dec
202120202019
US$’000US$’000US$’000
Gold on hand4,244 6,878 13,086 
Consumables stores82,417 72,544 64,201 
Ore stockpiles15,744 40,620 62,642 
Gold in process5,546 7,320 7,759 
107,951 127,362 147,688 
Less: Non-current portion

Ore stockpiles— 36,875 52,685 
Current portion107,951 90,487 95,003 
 31 Dec 2018
 31 Dec 2017
 31 Dec 2016
 $’000
 $’000
 $’000
Gold on hand4,425
 8,970
 16,041
Consumables stores66,099
 43,728
 43,363
Ore stockpiles44,116
 29,869
 52,332
Gold in process6,906
 3,443
 4,540
 121,546

86,010

116,276
Less: Non-current portion     
Ore stockpiles28,510
 12,779
 43,771
Current portion93,036

73,231

72,505


All inventory and ore stockpiles are stated at the lower of cost or net realisable value.


Non-current ore stockpiles reflect ore tonnes not planned to be processed within the next 12 months.



15.    INVESTMENT IN MARKETABLE SECURITIES

 31 Dec 2018
 31 Dec 2017
 31 Dec 2016
 $’000
 $’000
 $’000
Balance as at 1 January26
 58
 45
Fair value movement recognised in other comprehensive income(15) (34) 12
Exchange gain/(loss)(2) 2
 1
Balance at 31 December9

26

58
16.    SHARE CAPITAL AND PREMIUM


The total authorised number of ordinary shares is 10 000 (2017:(2020: 10 000) (2016:(2019: 10 000) for the total value of US$10 000 (2017:(2020: US$10 000) (2016:(2019: US$10 000). All issued shares are fully paid. The total number of issued shares at 31 December 20182021 was 4 648 shares (2017:(2020: 4 648) (2016:(2019: 4 620)648).


Barrick Gold Holdings(Kibali) Limited formerly Randgold Resources Limited (Randgold)(Barrick) and AngloGold Ashanti Limited (AngloGold Ashanti) are joint venture partners and shareholders of Kibali (Jersey) Limited, having acquired all 4 648 outstanding ordinary shares. ln 2017 Randgold and AngloGold Ashanti each purchased 14 ordinary shares to the value

31 Dec31 Dec31 Dec
202120202019
US$’000US$’000US$’000
Movement in the number of ordinary shares outstanding:
Balance at 1 January5 5 5 
Shares issued— — — 
Balance at 31 December5 5 5 




Movement in share premium:
Balance at 1 January2,523,612 2,523,612 2,523,612 
Shares issued— — — 
Balance at 31 December2,523,612 2,523,612 2,523,612 

F - 115
Table of US$15 million (total value of US$30 million). These shares were acquired at a price of US$1 071 428.57 per share.

Refer to the Consolidated Statements of Changes in Equity on page 5 for more detail on the annual movement of share capital and share premium. No movement in share capital for the shares issued above is shown due to rounding.

Contents
 31 Dec 2018
 31 Dec 2017
 31 Dec 2016
 $’000
 $’000
 $’000
Movement in the number of ordinary shares outstanding:     
Balance as at 1 January5
 5
 5
Shares issued—
 —
 —
Balance at 31 December5

5

5

17.16.    NON-CONTROLLING INTEREST
31 Dec31 Dec31 Dec
202120202019
31 Dec 2018
 31 Dec 2017
 31 Dec 2016
US$’000US$’000US$’000
$’000
 $’000
 $’000
Balance at 1 January7,420
 19,777
 27,624
Balance at 1 January55,743 23,579 11,668 
Non-controlling interest in results of Kibali Goldmines SA4,248
 (12,357) (7,847)Non-controlling interest in results of Kibali Goldmines SA32,367 32,164 11,911 
Dividend paidDividend paid(20,000)— — 
Balance at 31 December11,668

7,420

19,777
Balance at 31 December68,110 55,743 23,579 
The non-controlling interest represents the 10% interest SOKIMO has in Kibali Goldmines SA, which is a subsidiary of Kibali (Jersey) Limited.


This dividend paid represents the SOKIMO portion of the dividends paid to Moto (Jersey) 2 Limited and subsequently flows through Moto (Jersey) 1 Limited and Kibali (Jersey) Limited.

See summarised financial information for Kibali in note 22.at Note 21.


18.17.    LOANS, BORROWINGS AND BORROWINGSLEASE LIABILITIES
31 Dec31 Dec31 Dec
202120202019
US$’000US$’000US$’000
Non-current
Lease liabilities41,839 50,457 43,821 
Loan from the Group (refer to Note 26)1,839 — 1,507 
43,678 50,457 45,328 
Current
Lease liabilities13,909 14,674 11,105 
13,909 14,674 11,105 
Total loans and borrowings57,587 65,131 56,433 

 31 Dec 2018
 31 Dec 2017
 31 Dec 2016
 $’000
 $’000
 $’000
Non-current     
Finance lease liability (refer to note 21)27,465
 40,350
 46,707
Loan – Randgold (refer to note 28)1,526
 860
 222
 28,991

41,210

46,929
Current     
Finance lease liability (refer to note 21)11,425
 7,596
 8,310
Loan – Randgold (refer to note 28)—
 —
 1,975
 11,425

7,596

10,285
Total loans and borrowings40,416

48,806

57,214




18.    LOANS AND BORROWINGS (continued)

Finance lease liabilityLease liabilities
The finance lease liability is due toliabilities mainly consist of KAS, in respect of the equipment, which has been transferred to the Group under ana previous instalment sale agreement. The finance lease liability is interest bearing at 8%agreement, as well as leases related to the oxygen plant and is to be reduced by rental payments monthly as agreed in the instalment sale agreement. The finance lease is secured by the leased assets.other minor plant components. Refer to noteNote 10 and Note 20 for finance lease asset disclosures.disclosures and further details on the lease liabilities respectively.


Loan – RandgoldBarrick
Randgold,Barrick, a joint venture partner and operator of the Kibali gold mine, incurs management fees and other expenses as part of its role as operator of the mine on behalf of the Group. The loan bears no interest and is repayable on a monthly basis. The non-current portion in 2016 borehas no interest but the effectfixed terms of discounting is non-significant.repayment.




F - 116
19.
Table of Contents

18.    PROVISION FOR REHABILITATION
31 Dec31 Dec31 Dec
202120202019
US$’000US$’000US$’000
Balance at 1 January29,167 25,516 23,640 
Unwinding of discount485 376 531 
Change in estimates(26)3,275 2,369 
Total rehabilitation29,626 29,167 26,540 
Current rehabilitation liability600 (803)(1,024)
Balance at 31 December

C
29,026 28,364 25,516 
 31 Dec 2018
 31 Dec 2017
 31 Dec 2016
 $’000
 $’000
 $’000
Balance at 1 January23,244
 21,163
 15,533
Unwinding of discount591
 529
 349
Change in estimates(195) 1,552
 5,281
Balance at 31 December23,640

23,244

21,163


The provisions for rehabilitation costs include estimates for the effect of inflation and changes in estimates and have been discounted to their present value at 3.0% (2017: 2.5%0% (2020: 0%) (2016: 2.5%(2019: 0.5%) per annum, being an estimate equivalent to the real risk free rate determined with reference to US government bonds with maturity dates comparable to the estimated rehabilitation of the mines. Management used 0% due to the negative long-term real interest rates in the U.S. The estimated cash costs of rehabilitation are risk adjusted. Management have based the provision for environmental rehabilitation on standards set by the World Bank, which require an environmental management plan, an annual environmental report, a closure plan, an up-to-date register of plans of the facility, preservation of public safety on closure, carrying out rehabilitation works and ensuring sufficient funds exist for the closure works. However, it is reasonably possible that the estimate of its ultimate rehabilitation liability could change as a result of changes in regulations or cost estimates. The Group is committed to rehabilitation of its property. It makes use of independent environmental consultants for advice and it also uses past experience in similar situations to ensure that the provision for rehabilitation is adequate. The current Life of Mine (LOM) plan based on only Mineral Reserves envisages the majority of the expected outflow to occur at the end of the LOM (Refer to Note 3) which, at the date of these accounts,consolidated financial statements, is 20322034 (2020: 2033) (2019: 2032) for the Kibali gold mine (Refer to note 3).mine.





20.19.    TRADE AND OTHER PAYABLES
31 Dec31 Dec31 Dec
202120202019
US$’000US$’000US$’000
Trade payables30,764 19,984 20,346 
Payroll and other compensations

7,711 8,839 6,146 
Bank account in overdraft1,656 — — 
Accruals and other payables56,978 38,058 18,968 
97,109 66,881 45,460 
 31 Dec 2018
 31 Dec 2017
 31 Dec 2016
 $’000
 $’000
 $’000
Trade payables29,367
 46,060
 57,590
Payroll and other compensations3,171
 1,908
 1,813
Bank account in overdraft36
 12,762
 11,551
Accruals and other payables27,196
 43,903
 60,905
 59,770

104,633

131,859


Accruals and other payables include retention, in respect of contracts with suppliers, of US$1.90.5 million (2017:(2020: US$8.30.2 million) (2016:(2019: US$17.91.2 million). Accruals and other payables include US$0 (2017: nil) (2016: US$8.0 million) in respect of dividends declared but unpaid.


Trade and other payables are all due within 120 days.





21.
F - 117
Table of Contents

20.    LEASES


On adoption of IFRS 16 on 1 January 2019, the Group recognised right-of-use assets and lease liabilities in relation to leases of mining equipment and plant equipment, which had previously been classified as operating leases.

Right of use assets
Description31 Dec 2021 US$’00031 Dec 2020 US$’00031 Dec 2019 US$’000
Carrying amount – beginning of the year46,175 26,503 20,766 
Additions6,519 28,389 10,994 
Impact of modifications3,235 — — 
Depreciation(10,480)(8,717)(5,257)
Carrying value – end of year45,449 46,175 26,503 

The finance lease liability recognisedright of use asset is in respectmeasured under the cost model

Lease Liabilities
Description31 Dec 2021 US$’00031 Dec 2020 US$’00031 Dec 2019 US$’000
As at 1 January65,131 54,926 54,839 
Additions6,519 28,389 10,994 
Impact of modifications3,235 — — 
Interest expense5,428 4,869 3,153 
Lease payments(24,565)(23,935)(14,263)
Foreign exchange movements— 882 203 
As at 31 December55,748 65,131 54,926 

A number of mining vehicles which have been used in excavation and hauling of waste rock and ore under an instalment sale agreement.


The lease liability is effectively secured as the rights to the leased asset revert to the lessorleases were modified in the event of default.current year. Modifications arose from re-negotiating payment terms or the lease length in the year with the supplier(s).


 31 Dec 2018
 31 Dec 2017
 31 Dec 2016
 $’000
 $’000
 $’000
Gross finance lease liabilities – minimum lease payments:     
No later than 1 year15,435
 11,042
 12,979
Later than 1 year and no later than 5 years32,328
 39,872
 42,239
Later than 5 years—
 6,694
 13,344
Future finance charges(8,873) (9,662) (13,545)
Present value of the finance lease liability38,890

47,946

55,017
No later than 1 year11,425
 7,596
 8,310
Later than 1 year and no later than 5 years27,465
 32,618
 32,853
Later than 5 years—
 7,732
 13,854
 38,890

47,946

55,017
22.21.    SEGMENTAL INFORMATION


Operating segments have been identified on the basis of internal reports about components of the Group that are regularly reviewed by the Group’s chief operating decision maker. The operating segments included in the internal reports are determined on the basis of their significance to the Group. In particular, the operating mine is reported as a separate segment. KAS is included within the corporate segment. The Group’s chief operating decision maker is considered by management to be the board of directors. An analysis of the Group’s business segments, excluding intergroup transactions, is set out below. Major customers are not identifiable because all gold is sold through an agent.


F - 118
Table of Contents

Country of operationDRC Jersey    
US$’000Kibali Corporate 
Intercompany
eliminations
and
consolidation
entries
 Total
Year ended 31 December 2018       
Profit and loss       
Total revenue1,041,035
 —
 —
 1,041,035
Mining and processing costs excluding depreciation(444,147) —
 1,407
 (442,740)
Depreciation and amortisation(309,696) (1,744) (18,079) (329,519)
Mining and processing costs(753,843)
(1,744)
(16,672)
(772,259)
Royalties(45,249) —
 —
 (45,249)
Exploration and corporate expenditure(6,084) (70) —
 (6,154)
Other income/(expense) and JV profit12,552
 537
 (1,407) 11,682
Finance costs(191,543) (29) 187,107
 (4,465)
Finance income1,578
 12,980
 (11,178) 3,380
Profit before income tax58,446

11,674

157,850

227,970
Income tax expense(15,972) —
 —
 (15,972)
Net profit for the year42,474

11,674

157,850

211,998
        
Capital expenditure145,696
 —
 —
 145,696
Total assets3,052,902
 8,183,627
 (8,248,066) 2,988,463
Total liabilities(3,135,151) (4,410,200) 7,416,707
 (128,644)
        
Year ended 31 December 2017       
Profit and loss       
Total revenue754,852
 —
 —
 754,852
Mining and processing costs excluding depreciation(436,054) —
 1,489
 (434,565)
Depreciation and amortisation(240,346) (2,494) (21,575) (264,415)
Mining and processing costs(676,400)
(2,494)
(20,086)
(698,980)
Royalties(31,913) —
 —
 (31,913)
Exploration and corporate expenditure(7,089) (1,116) —
 (8,205)
Other (expenses)/income and JV profit(54,041) 758
 (1,489) (54,772)
Finance costs(163,730) —
 158,252
 (5,478)

22.21.    SEGMENTAL INFORMATION (continued)(CONTINUED)
Country of operationDRCJersey
US$’000Kibali Goldmines SACorporateIntercompany eliminations and consolidation entriesTotal
Year ended 31 December 2021
Profit and loss
Total revenue1,469,221 — — 1,469,221 
Mining and processing costs excluding depreciation(446,175)— 2,047 (444,128)
Depreciation and amortisation(237,215)(1,911)(4,832)(243,958)
Mining and processing costs(683,390)(1,911)(2,785)(688,086)
Royalties(68,704)— — (68,704)
Exploration and corporate expenditure(4,346)545 (2,047)(5,848)
Other income/(expenses) and JV profit(31,831)(104)— (31,935)
Finance costs(198,660)(1)192,748 (5,913)
Finance income4,099 12,697 (11,178)5,618 
Profit before income tax486,389 11,226 176,738 674,353 
Income tax expense(162,715)(18,000)— (180,715)
Net profit for the year323,674 (6,774)176,738 493,638 
Capital expenditure177,331 — — 177,331 
Total assets3,586,931 3,397,061 (3,346,301)3,637,691 
Total liabilities(2,789,133)(3,336)2,401,743 (390,726)
Year ended 31 December 2020
Profit and loss
Total revenue1,440,328 — — 1,440,328 
Mining and processing costs excluding depreciation(429,949)— 1,122 (428,827)
Depreciation and amortisation(232,804)(2,017)(6,490)(241,311)
Mining and processing costs(662,753)(2,017)(5,368)(670,138)
Royalties(67,547)— — (67,547)
Exploration and corporate expenditure(6,173)(101)— (6,274)
Other income/(expenses) and JV profit(34,322)409 (1,121)(35,034)
Finance costs(195,192)— 188,732 (6,460)
Finance income4,389 12,785 (10,262)6,912 
Profit before income tax478,730 11,076 171,981 661,787 
Income tax expense(157,090)— — (157,090)
Net profit for the year321,640 11,076 171,981 504,697 
Capital expenditure156,831 — — 156,831 
Total assets3,762,098 10,862,319 (11,101,207)3,523,210 
Total liabilities(3,403,586)(7,093,329)10,208,034 (288,881)
F - 119
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21.    SEGMENTAL INFORMATION (CONTINUED)
Country of operationDRCJersey
US$’000Kibali Goldmines SACorporateIntercompany eliminations and consolidation entriesTotal
Year ended 31 December 2019
Profit and loss
Total revenue1,122,940 — — 1,122,940 
Mining and processing costs excluding depreciation(408,001)— 1,384 (406,617)
Depreciation and amortisation(268,736)(1,579)(11,864)(282,179)
Mining and processing costs(676,737)(1,579)(10,480)(688,796)
Royalties(52,792)— — (52,792)
Exploration and corporate expenditure(13,606)(80)— (13,686)
Other (expenses)/income and JV profit(4,610)177 (1,384)(5,817)
Finance costs(196,905)(8)192,940 (3,973)
Finance income2,759 12,789 (11,178)4,370 
(Loss)/Profit before income tax181,049 11,299 169,898 362,246 
Income tax expense(61,934)— — (61,934)
Net (loss)/profit for the year119,115 11,299 169,898 300,312 
Capital expenditure140,876 — — 140,876 
Total assets3,302,116 10,330,673 (10,474,308)3,158,481 
Total liabilities(3,265,246)(6,494,171)9,611,062 (148,355)

Finance income1,464
 13,861
 (11,178) 4,147
(Loss) /Profit before income tax(176,857)
11,009

125,499

(40,349)
Income tax expense54,333
 —
 —
 54,333
Net (loss)/profit for the year(122,524)
11,009

125,499

13,984
        
Capital expenditure246,406
 —
 —
 246,406
Total assets2,969,999
 9,514,687
 (9,481,173) 3,003,513
Total liabilities(3,093,485) (5,778,281) 8,693,091
 (178,675)
        
Year ended 31 December 2016       
Profit and loss       
Total revenue709,372
 —
 —
 709,372
Mining and processing costs excluding depreciation(385,295) —
 1,498
 (383,797)
Depreciation and amortisation(186,124) (2,165) (22,636) (210,925)
Mining and processing costs(571,419)
(2,165)
(21,138)
(594,722)
Royalties(32,976) —
 —
 (32,976)
Exploration and corporate expenditure(6,270) (128) —
 (6,398)
Other (expenses)/income and JV profit(47,200) (713) (72) (47,985)
Finance costs(154,288) —
 148,990
 (5,298)
Finance income1,345
 14,599
 (11,209) 4,735
(Loss)/profit before income tax(101,436)
11,593

116,571

26,728
Income tax expense22,962
 —
 —
 22,962
Net (loss)/profit for the year(78,474)
11,593

116,571

49,690
        
Capital expenditure208,708
 362
 —
 209,070
Total assets2,790,160
 6,852,741
 (6,639,428) 3,003,473
Total liabilities(2,515,598) (3,339,052) 6,077,236
 (222,586)


23.22.    FINANCIAL RISK MANAGEMENT


lnIn the normal course of its operations, the Group is exposed to gold price, currency, interest rate, credit and liquidity risks. lnIn order to manage these risks, the Group may enter into transactions which make use of on-balance sheet derivatives, but none were entered into in 2018, 20172021, 2020 or 2016.2019. The Group does not acquire, hold or issue derivatives for trading purposes. The Group has developed a risk management process to facilitate, control and monitor these risks.



Foreign exchange and commodity price risk
In the normal course of business, the Group enters into transactions denominated in foreign currencies (primarily Euro, British Pound, South African Rand, Congolese Franc and Australian Dollar). As a result, the Group is subject to exposure from fluctuations in foreign currency exchange rates. In general, the Group does not enter into derivatives to manage these currency risks and none existed in 2018, 20172021, 2020 or 2016.2019. Generally, the Group does not hedge its exposure to gold price fluctuation risk and gold was sold at market spot prices in 2018, 20172021, 2020 and 2016.2019. Gold sales are made in US dollars and do not expose the Group to any currency fluctuation risk. The Group is also exposed to fluctuations in the price of consumables, such as fuel, steel, rubber, cyanide and lime, mainly due to changes in the price of oil, as well as fluctuations in exchange rates.

F - 120
Table of Contents

 31 Dec 2018
 31 Dec 2017
 31 Dec 2016
 $’000
 $’000
 $’000
Level of exposure of foreign currency risk carrying value of foreign currency balances.
Cash and cash equivalents includes balances denominated in:
     
•    Congolese Franc (CDF)
18
 28
 249
•    Euro (EUR)613
 297
 17
•    South African Rand (ZAR)102
 65
 758
•    British Pound (GBP)22
 3
 55
•    Australian Dollar (AUD)—
 402
 369
Trade and other receivables includes balances denominated in:     
•    Congolese Franc (CDF)3
 4
 5
•    Euro (EUR)—
 —
 —
•    South African Rand (ZAR)—
 —
 —
•    British Pound (GBP)—
 —
 —
•    Australian Dollar (AUD)—
 —
 —
Trade and other payables includes balances denominated in:     
•    Euro (EUR)(1,277) (284) (825)
•    South African Rand (ZAR)(561) (1,003) (671)
•    British Pound (GBP)(4) (2) —
•    Australian Dollar (AUD)(379) (87) (193)


The Group’s exposure to foreign currency arises where a Company holds monetary assets
22.    FINANCIAL RISK MANAGEMENT (CONTINUED)


31 Dec 202131 Dec 202031 Dec 2019
$’000$’000$’000
Level of exposure of foreign currency risk carrying value of foreign currency balances.
Cash and cash equivalents includes balances denominated in:
Congolese Franc (CDF)2,189 313 2,289 
Euro (EUR)4 82 63 
South African Rand (ZAR)205 229 299 
British Pound (GBP)199 7 11 
Australian Dollar (AUD)500 418 10 

Trade and liabilitiesother receivables includes balances denominated in a currency different to the functional currency of the holder of the instrumentforeign currencies, which is the US dollar. The following table shows the impact of a 10% change in the US dollar on profitare not significant.

Trade and equity arising as a result of the revaluation of the Group’s foreign currency financial instruments. The TVA is not a financial instrument under IFRS 7. The TVA balance in Kibali is now substantiallyother payables includes balances denominated in USD andforeign currencies, which are not subject to currency risk. As at 31 December 2017 and 31 December 2016 the balance was denominated in CDF and a 10% movement would have an effect of U$12.2 million and U$11.9 million on the receivable recorded respectively.significant.



There are no sensitivities disclosed for foreign exchange as these balances are immaterial.
 
Closing
exchange rate
 
Effect of 10%
strengthening of US$
on net earnings and equity
   $'000
At 31 December 2018   
•    Euro (EUR)
0.87306
 (128)
•    South African Rand (ZAR)
14.36232
 (56)
At 31 December 2017   
•    Euro (EUR)0.83382
 (28)
•    South African Rand (ZAR)12.34503
 (100)
At 31 December 2016   
•    Euro (EUR)0.94868
 (83)
•    South African Rand (ZAR)13.71502
 (67)

The sensitivities are based on financial assets and liabilities held at 31 December 2018 where balances were not denominated in the functional currency of the Group. The sensitivities do not take into account the Group’s income and costs and the results of the sensitivities could change due to other factors such as changes in the value of financial assets and liabilities as a result of non-foreign exchange influenced factors.


Interest rate and liquidity risk
Fluctuations in interest rates impact on the value of short term cash investments, interest receivable on hire purchase loans and interest payable on financing activities, giving rise to interest rate risk. The Group funds working capital and capital expenditure requirements with operating cash flows. The drawdowns of any funds are subject to the approval of the Annual budget and Business plan by the board of directors.


The Group has in the past been able to actively source financing through shareholder loans. The finance lease entered into bears a fixed rate of interest.


The directors believe that the working capital resources, by way of internal sources and bankingoverdraft facilities, are sufficient to the Group’s currently foreseeable future business requirements.

Amount
$’000		Effective rate
for year
Cash and cash equivalents:
All less than 90 days (2021)1,115,359 0.70%
All less than 90 days (2020)944,233 0.75%
All less than 90 days (2019)452,692 0.88%


F - 121
Table of Contents
 
Amount
$’000

Effective rate
for year
Cash and cash equivalents:  
All less than 90 days (2018)123,931
0.99%
All less than 90 days (2017)3,288
0.08%
All less than 90 days (2016)18,865
0.08%


22.    FINANCIAL RISK MANAGEMENT (CONTINUED)

Concentration of credit risk
TheIn normal circumstances, the Group’s cash balances do not give rise to a concentration of credit risk because it dealsendeavours to deal with a variety of major financial institutions wherever possible. For cash and equivalents, credit risk exposure equals the carrying amount on the balance sheet, net of any overdraft positions. To mitigate our inherent exposure to credit risk we maintain policies to limit the concentration of credit risk, review counterparty creditworthiness on a monthly basis, and ensure liquidity of available funds. Where possible, our cash and equivalents are held with AAA rated financial institutions. Due to the Group’s current difficulties to repatriate as a result of the new mining code, a large portion of cash is held with lower rated financial institutions, however measures have been initiated and all avenues are being considered to reallocate the deposits to banks with higher ratings in order to manage the credit risk exposure. All cash balances under the Company’s control or joint control are free from assignment or other charges. Cash held in banks in the DRC by Kibali is subject to administrative steps prior to repatriation. At year-end, the Group had US$1 075 million (2020: US$ 888 million) of cash in country, an increase of US$187.2 million year on year. Management further assessed any expected credit losses, which was considered immaterial. In forming this assessment, the Company considered the history of the banking relationships, knowledge of the DRC economy and credit rating reports for the DRC banks to evaluate liquidity and any indications of increased credit risk associated with the institutions.

The Group applies IFRS 9 to measure expected credit losses for receivables and loans including other investments in joint ventures and loans to non-controlling interests, these are regularly monitored and assessed. Receivables are impaired when it is probable that amounts outstanding are not recoverable as set out in the accounting policy note for receivables. Gold doré, the Group’s principal product, is produced in the DRC. The gold doré is refined and sold through the largest accredited gold refinery in the world. Credit risk is further managed by regularly reviewing the financial statements of the refinery. Further, the Group is not exposed to significant credit risk on gold sales, as cash is received within a few days of the sale taking place. While not a financial asset for IFRS 7, included in receivables is a TVA balance (including recoverable TVA on fuel duty and after discounting provisions) of US$180.5163.2 million (2017:(2020: US$134.5153.7 million; 2016:2019: US$131.2147.8 million) that was past due. Refer to noteNote 3. This could result in credit risk for the Group.


Capital risk management
The Group'sGroup’s objectives when managing capital are to safeguard its ability to continue as a going concern in order to provide future returns for shareholders and benefits for other stakeholders and to maintain an optimal capital structure to reduce the cost of capital. lnIn order to maintain or adjust the capital structure, the Group issue new shares (by way of funding from the joint venture partners) or will make use of intercompany loans. The Group monitors capital on the basis of the gearing ratio. This ratio is calculated as net borrowings, finance lease liabilities and trade and other payables (less cash) divided by total capital. Total capital is calculated as equity, as shown in the statement of financial position, plus net borrowings, finance lease liabilities and trade and other payables (less cash). This measure may differ to other companies.





F - 122
Table of Contents
 31 Dec 2018
 31 Dec 2017
 31 Dec 2016
 $’000
 $’000
 $’000
Capital risk management     
Borrowings and trade and other payables100,186
 153,439
 189,073
Less: cash and cash equivalents(123,931) (3,288) (18,865)
Net borrowings, trade and other payables(23,745) 150,151
 170,208
      
Total equity2,859,819
 2,824,838
 2,780,887
Total capital2,828,671
 2,974,988
 2,915,095
Gearing ratio-1 % 5% 6%


22.    FINANCIAL RISK MANAGEMENT (CONTINUED)

31 Dec 202131 Dec 202031 Dec 2019
$’000$’000$’000
Capital risk management
Borrowings, trade and other payables and lease liabilities (Note 17 and 19)154,696 132,012 102,917 
Less: cash and cash equivalents(1,115,359)(944,233)(452,692)
Net borrowings, trade and other payables(960,663)(812,221)(349,775)
Total equity3,246,965 3,234,329 3,010,126 
Total capital(4)
2,286,302 2,422,911 2,660,351 
Gearing ratio(42)%(33)%(13)%

Maturity analysis
The following table analyses the Group’s financial liabilities into the relevant maturity groupings based on the remaining period from the Statement of Financial Position to the contractual maturity date.
 
Trade and
other
payables

 Borrowings
 
Expected
Future
interest
payments

 $'000 $'000 $'000
At 31 December 2018     
Financial liabilities     
Within 1 year in demand56,599
 11,425
 2,966
Later than 1 year and no later than 5—
 28,991
 5,780
After 5 years—
 —
 127
Total56,599
 40,416
 8,873
At 31 December 2017     
Financial liabilities     
Within 1 year in demand104,633
 7,596
 3,345
Later than 1 year and no later than 5—
 41,210
 6,012
After 5 years—
 —
 305
Total104,633
 48,806
 9,662
At 31 December 2016     
Financial liabilities     
Within 1 year in demand131,859
 10,285
 3,974
Later than 1 year and no later than 5—
 46,929
 8,693
After 5 years—
 —
 878
Total131,859
 57,214
 13,545
Trade and
other
payables		BorrowingsExpected
Future
interest
payments
$'000$'000$'000
At 31 December 2021
Financial liabilities
Within 1 year in demand97,109 11,502 2,407 
Later than 1 year and no later than 5— 39,649 4,029 
After 5 years— — — 
Total97,109 51,151 6,436 
At 31 December 2020
Financial liabilities
Within 1 year in demand66,881 12,121 2,553 
Later than 1 year and no later than 5— 50,340 117 
After 5 years— — — 
Total66,881 62,461 2,670 
At 31 December 2019
Financial liabilities
Within 1 year in demand45,460 9,075 2,030 
Later than 1 year and no later than 5— 42,955 2,373 
After 5 years— — — 
Total45,460 52,030 4,403 

24.    FAIR VALUE OF FINANCIAL INSTRUMENTS

The following table shows the carrying amounts and the fair values of the Group’s FVOCI financial instruments outstanding at 31 December 2018, 2017 and 2016. The fair value of a financial instrument(1) Total capital is definedcalculated as the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

   
Carrying
amount

 Fair value
   $'000
 $'000
As at 31 December 2018     
Categorised as level 1¹     
Investment marketable securitiesFVOCI 9
 9
As at 31 December 2017     
Categorised as level 1¹     
Investment marketable securitiesFVOCI 26
 26
As at 31 December 2016     
Categorised as level 1¹     
Investment marketable securitiesFVOCI 58
 58

No derivative financial instruments currently exist.


24.    FAIR VALUE OF FINANCIAL INSTRUMENTS(continued)


¹Level 1: fair values are derived from quoted market prices for identical assets from an active market for which an entity has immediate access.

Estimation of fair values
Trade and other receivables,total equity less net borrowings trade and other payables cash and cash equivalents, bank overdrafts, loans to and from related parties

The carrying amounts are a reasonable estimate of the fair values because of the short maturity of such instruments or their interest bearing nature.

Long term and short term borrowings

The carrying amount is a reasonable estimate of the fair value because of the short maturity of such instruments, interest bearing nature and other terms of the agreement.


25.    CASH FLOW FROM OPERATING ACTIVITIES AND NON-CASH ITEMS
F - 123
 31 Dec 2018
 31 Dec 2017
 31 Dec 2016
 $’000
 $’000
 $’000
Profit/(loss) before income tax227,970
 (40,349) 26,728
Adjustments for:     
Interest received (note 8)(3,380) (4,147) (4,735)
Finance cost (note 8)3,874
 4,949
 4,949
Share of profits of equity accounted joint venture (Note 27)(132) (113) (129)
Depreciation and amortisation (Note 6)329,519
 264,415
 210,925
Foreign exchange (gain)/loss(53,747) 38,469
 36,134
Write off on TVA under settlement agreement20,584
 —
 —
Movement in discounting provision on TVA (note 5)17,309
 12,177
 7,820
Unwinding of rehabilitation provision (Note 19)591
 529
 349
 542,588
 275,930
 282,041
- Effects of changes in operating working capital items     
- Receivables(12,877) (69,741) (29,287)
- Inventories(35,536) 30,266
 5,484
- Trade and other payables(20,967) (11,026) 14,712
Cash generated from operations473,208
 225,429
 272,950
Table of Contents


23.    CASH GENERATED BY OPERATIONS
31 Dec31 Dec31 Dec
202120202019
US$’000US$’000US$’000
Profit before income taxation674,353 661,787 362,246 
Adjustments for:
Finance income (Note 8)(5,618)(6,912)(4,370)
Finance cost (Note 8)5,913 6,460 3,973 
Share of profits of equity accounted joint venture(103)(239)(34)
Depreciation and amortisation (Note 6)
243,958 241,311 282,180 
Foreign exchange loss / (gain) (Note 5)(741)(2,035)1,458 
TVA write off agreement (Note 5)— 1,462 — 
Movement in discounting provision on TVA (Note 5)8,351 12,740 — 
926,113 914,574 645,453 
Effects of changes in operating working capital items
Receivables(26,214)2,167 3,998 
Inventories19,412 20,325 (26,142)
Trade and other payables24,933 19,804 (7,878)
Cash generated by operations944,244 956,870 615,431 



Other non-cash items include changes in rehabilitation provision estimates of US$0.20.5 million (2017:(2020: US$1.62.5 million) (2016:(2019: US$5.21.8 million), dividends payable and TVA offsets of nil (2017: nil) (2016:(2020: US$8.0 4.9 million) (2019: US$40.9 million). Please refer to Note 6.


During the year a recovery proposal for TVA was agreed upon between management and the DRC government. The TVA discounting movement comprised



F - 124
Table of $17.3 million (2017: US$12.2 million) (2016: US$7.8 million) increase in the discounting provision, and $20.6 million write off of TVA outstanding from the Government.Contents

23. CASH FLOW FROM OPERATIONS (CONTINUED)

Cash flows relating to loans and borrowings within financing activities comprises the following movements in finance lease liabilities:

Non-currentCurrentTotal
loans andloans and
borrowingsborrowings
US$’000US$’000US$’000
At 1 January 201927,465 11,425 38,890 
IFRS 16 lease liabilities additions15,246 703 15,949 
Cash flows:
Lease repayments— (14,263)(14,263)
Non cash flows:
Loans and borrowings classified as non-current at 31 December 2019(7,162)7,162 — 
Loan from Group (Note 17)1,507 1,507 
Interest and capital accrued— 3,356 3,356 
Lease additions8,272 2,722 10,994 
At 31 December 2019



45,328 11,105 56,433 
At 1 January 202045,328 11,105 56,433 
Cash flows:
Lease repayments— (23,935)(23,935)
Non cash flows:
Loans and borrowings classified as non-current at 31 December 2020(15,825)15,825 — 
Interest and capital accrued— 5,818 5,818 
IFRS 16 lease additions20,954 5,861 26,815 
At 31 December 2020 1



50,457 14,674 65,131 
At 1 January 202150,457 14,674 65,131 
Cash flows:
Lease repayments— (24,565)(24,565)
Non cash flows:
Loans and borrowings classified as non-current at 31 December 2021(17,603)17,603 — 
Loan from Group (Note 17)1,839 — 1,839 
Interest and capital accrued— 5,428 5,428 
IFRS 16 lease additions and modifications8,985 769 9,754 
At 31 December 2021



43,678 13,909 57,587 

1 Refer to Note 20 and the consolidated cash flow statements on page F-91.


 Non-current loans and borrowings
 Current loans and borrowings
 Total
 $’000
 $’000
 $’000
At 1 January 201654,388
 5,365
 59,753
Cash flows:    
Lease repayments—
 (5,089) (5,089)
Non cash flows:     
Loans and borrowings classified as non-current at 31 December 2015(7,681) 7,681
 —
Interest and capital accrued—
 353
 353
At 31 December 201646,707
 8,310
 55,017
At 1 January 201746,707
 8,310
 55,017
Cash flows:     
Lease repayments—
 (7,228) (7,228)
Non cash flows:     
Loans and borrowings classified as non-current at 31 December 2016(6,357) 6,357
 —
Interest and capital accrued—
 157
 157
At 31 December 201740,350
 7,596
 47,946
At 1 January 201840,350
 7,596
 47,946
Cash flows:     
Lease repayments—
 (9,579) (9,579)
Non cash flows:     
Loans and borrowings classified as non-current at 31 December 2017(12,885) 12,885
 —
Interest and capital accrued—
 523
 523
At 31 December 2018(2)
27,465
 11,425
 38,890

(2)
Refer to note 21

26.24.    COMMITMENTS AND CONTINGENT LIABILITIES
31 Dec31 Dec31 Dec
202120202019
US$’000US$’000US$’000
Capital expenditure contracted for at statement of financial
position date but not yet incurred is:
Property, plant and equipment28,157 22,227 29,593 

F - 125
 31 Dec 2018
 31 Dec 2017
 31 Dec 2018
 $’000
 $’000
 $’000
Capital expenditure contracted for at statement of financial position date but not yet incurred is:     
Property, plant and equipment22,687
 19,108
 21,456
Table of Contents

27.

24. COMMITMENTS AND CONTINGENT LIABILITIES (CONTINUED)

At the end of January and in early February 2022, Kibali Goldmines SA, which owns and operates the Kibali gold mine in the Democratic Republic of the Congo, received fifteen claims from the Direction Générale des Douanes et Accises (“Customs Authority”) concerning customs duties. The Customs Authority claims that incorrect import duty tariffs have been applied to the importation of certain consumables and equipment for the Kibali gold mine. In addition, they claim that the exemption available to Kibali Goldmines SA, which was granted in relation to the original mining lease, no longer applies. Finally, the Customs Authority claims that a service fee paid on the exportation of gold was paid to the wrong government body. The claims, including substantial penalties and interest, total $339 million.

The Company has examined the Customs Authority claims and concluded that they are without merit, as they seek to challenge established customs practices which have been accepted by the Customs Authority for many years and, where relevant, are in line with ministerial instruction letters. No amounts have been recorded for any potential liability arising from these claims as the Company cannot reasonably predict the outcome. The Company will vigorously defend its position that the Customs Authority claims are unfounded.

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25.     INVESTMENT IN JOINT VENTURE


Set out below is the summarised financial information for KAS which is accounted for using the equity method (amounts stated at 100% before intercompany eliminations).

31 Dec31 Dec31 Dec
202120202019
US$’000US$’000US$’000
Summarised statement of financial position
Current assets
Cash and cash equivalents3,485 1,630 3,384 
Other current assets (excluding cash)3,675 1,703 3,059 
Total current assets7,160 3,333 6,443 
Other current liabilities (including trade payables)(1,846)(2,149)(6,564)
Total current liabilities(1,846)(2,149)(6,564)
26. INVESTMENT IN JOINT VENTURE (continued)
Non-current
Assets38,148 44,552 42,510 
Financial liabilities(43,249)(45,248)(42,248)
Net assets213 488 141 
Summarised statement of comprehensive income
Operating profit/(loss)3 268 (120)
Interest income3,167 3,562 3,185 
Interest expense(2,965)(3,352)(2,998)
Profit and total comprehensive income for the period205 478 67 
Dividends received from joint venture480 131 156 

Reconciliation of the summarised financial information presented to the carrying amount of the Group's interest in KAS
Opening net assets at 1 January488 141 230 
Profit for the period205 478 67 
Dividends received(480)(131)(156)
Closing net assets at 31 December213 488 141 
Interest in joint venture at 50.1%107 244 71 

Profit for the period at 50.1%
103 239 34 




Funding classified as long term debt by joint venture recorded in ‘other investments in joint ventures’
21,669 23,096 21,067 
Carrying value21,776 23,340 21,138 
 31 Dec 2018
 31 Dec 2017
 31 Dec 2016
 $’000
 $’000
 $’000
Summarised statement of financial position     
Current assets     
Cash and cash equivalents3,125
 2,039
 1,167
Other current assets (excluding cash)1,988
 1,649
 10,061
Total current assets5,113
 3,688
 11,228
Other current liabilities (including trade payables)(1,523) (1,505) (1,456)
Total current liabilities(1,523) (1,505) (1,456)
Non-current     
Assets39,431
 48,065
 46,707
Financial liabilities(42,248) (49,739) (56,195)
Net (liabilities)/assets773

509

284
Summarised statement of comprehensive income     
Operating profit(21) (39) (21)
Interest income3,440
 3,959
 4,489
Interest expense(3,155) (3,695) (4,210)
Profit and total comprehensive income for the period264

225

258
Dividends received from joint venture—
 —
 550
Reconciliation of the summarised financial information presented to the carrying amount of the group’s interest in KAS     
Opening net assets 1 January509
 284
 576
Profit for the period264
 225
 258
Dividends received—
 —
 (550)
Closing Net assets at 31 December773

509

284
Interest in joint venture at 50.1%387
 255
 142
Profit for the period at 50.1%132
 113
 129
      
Funding classified as long term debt by joint venture recorded in ‘other investments in joint ventures’21,479
 25,577
 28,830
Carrying value21,866

25,832

28,972


The loan to KAS bears interest at 8% and has no fixed repayment terms. Joint control is provided through a joint venture agreement.



28.
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26.    RELATED PARTIES AND RELATED PARTY TRANSACTIONS
Related partiesNature of relationship
RandgoldBarrick Gold (Holdings) LimitedUltimate Joint Venture partner
AngloGold AshantiUltimate Joint Venture partner
AngloGold Ashanti Holdings plcJoint Venture partner
Randgold ResourcesBarrick Gold (Kibali) LimitedJoint Venture partner
Randgold Resources CongoBarrick Gold (Congo) SPRLEntity under common control (subsidiary of Randgold)Barrick)
Société des Mines de Loulo SAEntity under common control (subsidiary of Randgold)Barrick)
Société des Mines de Tongon SAEntity under common control (subsidiary of Randgold)Barrick)
Société des Mines de Gounkoto SAEntity under common control (subsidiary of Randgold)Barrick)
Société des Mines de Morila SAEntity under common control (subsidiary of Barrick)
Rand Refinery (Pty) LimitedAssociate of AngloGold Ashanti
SOKIMOGovernment interest in Kibali
KASJoint Venture
Isiro (Jersey) LimitedJoint Venture of RandgoldBarrick
KGL Isiro SARL
Subsidiary of Isiro (Jersey) Limited






31 Dec31 Dec31 Dec
202120202019
US$’000US$’000US$’000
Related party transactions
Dividend paid to Sokimo20,000 — — 
Management fee paid to Barrick Gold (Holdings) Ltd6,216 4,668 4,563 
Refining fees to Rand Refinery (Pty) Limited4,789 5,818 3,444 
Interest received from SOKIMO2,291 1,843 1,697 
Shareholders interest received from KAS1,469 1,494 1,294 
Interest incurred to KAS on the finance lease liability3,128 3,181 2,727 
Amounts included in trade and other receivables owed from / (owing to) related parties
Rand Refinery (Pty) Limited20,832 1,202 26,580 
Loan to SOKIMO25,897 23,933 22,090 
Loan to Barrick Gold (Congo) SPRL1,988 1,569 1,198 
Loan to KGL Isiro SARL

202 172 163 
Loan (from) / to Société des Mines de Loulo SA— (1)3 
Loan (from) / to Société des Mines de Tongon SA(29)(254)133 
Loan to Société des Mines de Gounkoto SA1 1 — 
Amounts included in other investment in joint venture owing by related parties
Loan to KAS21,669 23,096 21,067 
Loan to/(from) Barrick Gold (Holdings) Ltd(1,839)186 (1,507)
Finance lease liability with KAS(35,187)(41,524)(39,681)
28.    RELATED PARTIES AND RELATED PARTY TRANSACTIONS (continued)

 31 Dec 2018
 31 Dec 2017
 31 Dec 2016
 $’000
 $’000
 $’000
Related party transactions     
Management fee paid to Randgold4,478
 4,385
 4,296
Refining fees to Rand Refinery (Pty) Limited3,957
 3,632
 3,062
Interest received from SOKIMO1,446
 1,097
 1,335
Shareholders interest received from KAS1,578
 1,846
 2,105
Interest incurred to KAS on the finance lease liability3,359
 3,931
 4,482
Amounts included in trade and other receivables owing by related parties     
Rand Refinery (Pty) Limited11,114
 30,457
 1,497
Loan to SOKIMO20,393
 18,827
 17,381
Loan to Randgold Resources Congo SPRL616
 182
 45
Loan to Randgold—
 —
 942
Loan to KGL Isiro SARL97
 64
 1
Loan to Société des Mines de Loulo SA22
 4
 —
Loan to Société des Mines de Tongon SA32
 41
 76
Loan to Société des Mines de Gounkoto SA—
 —
 32
Loan to Société des Mines de Morila SA45
 —
 —
Amounts included in other investment in joint venture owing by related parties     
Loan to KAS21,479
 25,557
 28,830
Amounts included in loans and borrowings owed to related parties     
Loan from Randgold(1,526) (860) (2,197)
Finance lease liability with KAS(38,890) (47,946) (55,017)

SOKIMO has a 10% interest in Kibali Goldmines SA, a subsidiary of the Group.


The key management personnel are considered to be the board of Kibali and Kibali (Jersey) Limited. None of the directors receive any remuneration for performing their director duties.

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26. RELATED PARTIES AND RELATED PARTY TRANSACTIONS (CONTINUED)

Rand Refinery (Pty) Limited (Rand Refinery) is an associate of AngloGold Ashanti. Kibali Goldmines SA has incurred refining costs of US$3.94.8 million in the year (2017:(2020: US$3.65.8 million) (2016:(2019: US$3.13.4 million). US$1 041m (2017:469 million (2020: US$7551 440 million) (2016:(2019: US$7091 123 million) of gold and silver was sold by Rand Refinery under the contract with Kibali Goldmines SA in which Rand Refinery is the stated agent.


It is the obligation of the joint venture parties, RandgoldBarrick and AngloGold Ashanti, (joint venture partners) to fund the Group for operating costs, capital costs and other costs in proportion to their respective percentage interests in Kibali (Jersey) Limited. These costs are in accordance with the Kibali Joint Venture Agreement.


The finance lease liability due to KAS is in respect of the equipment which has been transferred to the Group under an instalment sale agreement. Kibali (Jersey) Limited has a 50.1% shareholding in KAS.
Refer to notesNotes 13 and 1817 for the details of loans to and from related parties.






29.27.    SUBSIDIARIES AND TRANSACTIONS WITH NON-CONTROLLING INTERESTS


The consolidated financial statements include the accountsresults of the Company and all of its subsidiaries and jointly controlled entities at 31 December 2018.2021. The Company, the principal subsidiaries and their interests are:

29.    SUBSIDIARIES AND TRANSACTIONS WITH NON-CONTROLLING INTERESTS (continued)




% of interest
Country of
incorporation and
residence
CompanyInterestincorporation
and
residence
CompanyKibali (Jersey) LtdJersey
SubsidiaryBorder Energy East Africa (Pty) Ltd100100%%Uganda
SubsidiaryMoto (Jersey) 1 Ltd100100%%
Jersey



SubsidiaryKibali 2 (Jersey) Ltd100100%%Jersey
Subsidiary0858065 B.C. Limited100100%%Canada
SubsidiaryMoto Goldmines Australia Pty Ltd100100%%Australia
SubsidiaryKibali Goldmines SA9090%%DRC
Jointly controlled entityKAS 1 Limited50.150.1%%Jersey

30.    

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28.SUBSEQUENT EVENTS


On 24 September 2018, Randgold Resources Limited, one In February 2022 geopolitical tensions between Ukraine and Russia increased which led to a full-scale armed conflict. In turn this led to disruption and volatility in the financial and capital markets, as well as impacting global supply chains. Governments around the world have imposed various sanctions on Russian individuals and corporations which has led to a sharp increase in energy and commodity prices.

The Company has considered the impact on key inputs in its life of mine, budget and impairment models. Such impacts may be felt directly through purchases of diesel and natural gas as well as through higher transportation costs, and indirectly through higher costs of other products and services which rely on energy as an input cost. Management note that such increases in costs can be absorbed by the ultimate joint venture partners,company given the substantial headroom in the aforementioned models coupled with the fact that gold prices tend to increase in times of economic instability.

Management have further considered the wider impact of sanctions on its supply chain and Barrick Gold Corporation announced an agreement on do not believe it deals with any sanctioned customers or suppliers.

No other significant subsequent events requiring disclosure or adjustment occurred other than the terms of a recommended share-for-share merger of Randgold and Barrick. The transaction closed on 1 January 2019, with Barrick acquiring 1 007o of the issued and outstanding Randgold shares. Each Randgold shareholder received 6.1280 common shares of Barrick for each Randgold share, which resulted customs claim in the issuance of 583,669,178 Barrick common shares. After this share issuance, Barrick shareholders owned 66.7o/o, while former Randgold shareholders owned 33.3%, of the shares of the combined company.Note 24.



On 22 January 2019, the former Randgold Resources Limited name was changed to Barrick Gold (Holdings) Limited.


31.29.    OTHER INFORMATION


The Company is a private company limited by shares, incorporated in Jersey with its registered office at 3rd Floor, Unity Chambers, 28 Halkett Street, St Helier, Jersey, JE2 4WJ, Channel Islands. The Company’s principal activity is the operation of the Kibali gold mine in the DRC.



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Exhibits to Form 20-F
Exhibit NumberDescriptionRemarks
Exhibit 19.1Incorporated by reference to Exhibit 19.1 to AngloGold Ashanti Limited’s Annual Report on Form 20-F (No. 001-14846) filed with the Securities and Exchange Commission on 26 March 2021
Exhibit 19.2.1Incorporated by reference to Exhibit 4.2 to AngloGold Ashanti Limited and AngloGold Ashanti Holdings plc’s Registration Statement on Form F-3 (Nos. 333-182712 and 333-182712-02) filed with the Securities and Exchange Commission on 17 July 2012
Exhibit 19.2.2Incorporated by reference to Exhibit 99(C) to AngloGold Ashanti Limited and AngloGold Ashanti Holdings plc’s Registration Statement on Form 8-A (Nos. 001-14846 and 001-34725) filed with the Securities and Exchange Commission on 28 April 2010
Exhibit 19.2.3Incorporated by reference to Exhibit 4.1 to AngloGold Ashanti Limited and AngloGold Ashanti Holdings plc’s report on Form 6-K (Nos. 001-14846 and 001-34725) filed with the Securities and Exchange Commission on 1 October 2020
Exhibit 19.2.4Incorporated by reference to Exhibit 4.1 to
AngloGold Ashanti Limited and AngloGold
Ashanti Holdings plc’s report on Form 6-K
(Nos. 001-14846 and 001-34725) filed with the
Securities and Exchange Commission on 22
October 2021
Exhibit 19.2.5Filed herewith
Exhibit 19.2.6Incorporated by reference to Exhibit 1 to AngloGold Ashanti Limited’s Registration Statement on Form F-6 (No. 333-159248) filed with the Securities and Exchange Commission on 14 May 2009
Exhibit 19.4.1.1Incorporated by reference to AngloGold Ashanti Limited’s report on Form 6-K (No. 001-14846) furnished to the Securities and Exchange Commission on 10 April 2013
Exhibit 19.4.1.2Incorporated by reference to AngloGold Ashanti Limited’s report on Form 6-K (No. 001-14846) furnished to the Securities and Exchange Commission on 10 April 2013
Exhibit 19.4.1.3

Incorporated by reference to AngloGold Ashanti Limited’s report on Form 6-K (No. 001-14846) furnished to the Securities and Exchange Commission on 18 May 2017
Exhibit 19.4.4.1
Incorporated by reference to AngloGold Ashanti Limited’s report on Form 6-K (No. 001-14846) furnished to the Securities and Exchange Commission on 25 February 2019
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Exhibit NumberDescriptionRemarks
Exhibit 19.4.5.1Incorporated by reference to AngloGold Ashanti Limited’s report on Form 6-K (No. 001-14846) furnished to the Securities and Exchange Commission on 12 February 2019
Exhibit 19.4.5.2Incorporated by reference to
Exhibit 99.1 to AngloGold Ashanti Limited’s
report on Form 6-K (No. 001-14846) filed with
the Securities and Exchange Commission on 4 May 2021
Exhibit 19.4.5.3Incorporated by reference to Exhibit 19.4.5.2
to AngloGold Ashanti Limited’s Annual
Report on Form 20-F (No. 001-14846) filed
with the Securities and Exchange
Commission on 26 March 2021
Exhibit 19.4.5.4Incorporated by reference to
Exhibit 99.2 to AngloGold Ashanti Limited’s
report on Form 6-K (No. 001-14846) filed with
the Securities and Exchange Commission on
4 May 2021
Exhibit 19.4.5.5Incorporated by reference to Exhibit 19.4.5.3
to AngloGold Ashanti Limited’s Annual
Report on Form 20-F (No. 001-14846) filed
with the Securities and Exchange Commission on 26 March 2021
Exhibit 19.4.5.6Filed herewith
Exhibit 19.4.6Incorporated by reference to AngloGold Ashanti Limited’s report on Form 6-K (No.001-14846) furnished to the Securities and Exchange Commission on 19 February 2016
Exhibit 19.8Filed herewith
Exhibit 19.12.1Filed herewith
Exhibit 19.12.2Filed herewith
Exhibit 19.13Filed herewith
Exhibit 19.15.1Filed herewith
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Exhibit NumberDescriptionRemarks
Exhibit 19.15.2Filed herewith
Exhibit 19.15.3Filed herewith
Exhibit 19.15.4Incorporated by reference to Exhibit 96.1 to AngloGold Ashanti Limited’s report on Form 6-K (No. 001-14846) filed with the Securities and Exchange Commission on 30 March 2022
Exhibit 19.15.5Incorporated by reference to Exhibit 96.2 to AngloGold Ashanti Limited’s report on Form 6-K (No. 001-14846) filed with the Securities and Exchange Commission on 30 March 2022
Exhibit 19.15.6Incorporated by reference to Exhibit 96.3 to AngloGold Ashanti Limited’s report on Form 6-K (No. 001-14846) filed with the Securities and Exchange Commission on 30 March 2022
Exhibit 19.15.7Incorporated by reference to Exhibit 96.4 to AngloGold Ashanti Limited’s report on Form 6-K (No. 001-14846) filed with the Securities and Exchange Commission on 30 March 2022
Exhibit 19.15.8Incorporated by reference to Exhibit 96.5 to AngloGold Ashanti Limited’s report on Form 6-K (No. 001-14846) filed with the Securities and Exchange Commission on 30 March 2022
Exhibit 19.15.9Incorporated by reference to Exhibit 96.6 to AngloGold Ashanti Limited’s report on Form 6-K (No. 001-14846) filed with the Securities and Exchange Commission on 30 March 2022
Exhibit 19.15.10Incorporated by reference to Exhibit 96.7 to AngloGold Ashanti Limited’s report on Form 6-K (No. 001-14846) filed with the Securities and Exchange Commission on 30 March 2022
Exhibit 19.15.11Incorporated by reference to Exhibit 96.8 to AngloGold Ashanti Limited’s report on Form 6-K (No. 001-14846) filed with the Securities and Exchange Commission on 30 March 2022
Exhibit 19.15.12Incorporated by reference to Exhibit 96.9 to AngloGold Ashanti Limited’s report on Form 6-K (No. 001-14846) filed with the Securities and Exchange Commission on 30 March 2022
Exhibit 19.15.13Incorporated by reference to Exhibit 96.10 to AngloGold Ashanti Limited’s report on Form 6-K (No. 001-14846) filed with the Securities and Exchange Commission on 30 March 2022
Exhibit 19.15.14Incorporated by reference to Exhibit 96.11 to AngloGold Ashanti Limited’s report on Form 6-K (No. 001-14846) filed with the Securities and Exchange Commission on 30 March 2022
Exhibit 19.15.15Incorporated by reference to Exhibit 96.12 to AngloGold Ashanti Limited’s report on Form 6-K (No. 001-14846) filed with the Securities and Exchange Commission on 30 March 2022
Exhibit 19.15.16Incorporated by reference to Exhibit 96.13 to AngloGold Ashanti Limited’s report on Form 6-K (No. 001-14846) filed with the Securities and Exchange Commission on 30 March 2022
Exhibit 19.15.17Incorporated by reference to Exhibit 96.14 to AngloGold Ashanti Limited’s report on Form 6-K (No. 001-14846) filed with the Securities and Exchange Commission on 30 March 2022
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Exhibit NumberDescriptionRemarks
Exhibit 19.15.18Incorporated by reference to Exhibit 96.15 to AngloGold Ashanti Limited’s report on Form 6-K (No. 001-14846) filed with the Securities and Exchange Commission on 30 March 2022
Exhibit 19.15.19Incorporated by reference to Exhibit 96.16 to AngloGold Ashanti Limited’s report on Form 6-K (No. 001-14846) filed with the Securities and Exchange Commission on 30 March 2022
Exhibit 19.15.20Incorporated by reference to Exhibit 96.17 to AngloGold Ashanti Limited’s report on Form 6-K (No. 001-14846) filed with the Securities and Exchange Commission on 30 March 2022
Exhibit 19.15.21Filed herewith
Exhibit 19.17Filed herewith

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EXHIBIT 19.8

PRINCIPAL SUBSIDIARIES AND OPERATING ENTITIES AT 31 DECEMBER 2021
Shares heldHoldingPercentage held
2021202020212020
Principal subsidiaries and controlled operating entities (1)
AngloGold Ashanti Australia Limited(2)
2257,462,077 257,462,077 I100100 
AngloGold Ashanti Holdings plc65,326,550,917 5,326,550,917D100100 
AngloGold Ashanti USA Incorporated10235 235 D100100 
Operating entities
AngloGold Ashanti Córrego do Sítio Mineração S.A.34,167,084,999 4,167,084,999 I100100 
AngloGold Ashanti (Ghana) Limited(3)
4132,419,585 132,419,585 I100100 
AngloGold Ashanti (Iduapriem) Limited466,270 66,270 I100100 
Cerro Vanguardia S.A.113,875,000 13,875,000 I92.5092.50 
Geita Gold Mining Limited9123,382,772 123,382,772 I100100 
Mineração Serra Grande S.A.31,999,999 1,999,999 I100100 
Société AngloGold Ashanti de Guinée S.A.53,486,134 3,486,134 I8585 
Joint venture operating entities
Kibali (Jersey) Limited(4)
72,324 2,324 I5050 
Société des Mines de Morila S.A.(5)
8— — 
Société d'Exploitation des Mines d'Or de Sadiola S.A.(6)
8— — 
Unincorporated joint operation
Tropicana joint operation2n/an/aI7070 

D - Direct Holding
I - Indirect Holding

(1)All the operations in South Africa, including, Mine Waste Solutions and Mponeng were held by the parent company, AngloGold Ashanti Limited. The South African operations were sold effective 30 September 2020.
(2) Owner of the Sunrise Dam operation and the Tropicana joint operation in Australia.
(3) Operates the Obuasi mine in Ghana.
(4) 90% owner of Kibali Goldmines S.A. which operates the Kibali mine in the Democratic Republic of the Congo.
(5) Sold, effective 10 November 2020.
(6) Sold, effective 30 December 2020.



1Argentina6Isle of Man
2Australia7Jersey
3Brazil8Mali
4Ghana9Tanzania
5Republic of Guinea10United States of America
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EXHIBIT 19.12.1
CERTIFICATION

I, Alberto Calderon, certify that:

1.I have reviewed this annual report on Form 20-F of AngloGold Ashanti Limited;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the company as of, and for, the periods presented in this report;

4.The company’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the company and have:
a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with IFRS as issued by the IASB;
c.Evaluated the effectiveness of the company’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d.Disclosed in this report any change in the company’s internal control over financial reporting that occurred during the period covered by the annual report that has materially affected, or is reasonably likely to materially affect, the company’s internal control over financial reporting; and

5.The company’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the company’s auditors and the audit committee of company’s board of directors (or persons performing the equivalent functions):
a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the company’s ability to record, process, summarise and report financial information; and
b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the company’s internal control over financial reporting.




Date: 29 March 2022



/s/ Alberto Calderon
Alberto Calderon
Chief Executive Officer
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EXHIBIT 19.12.2
CERTIFICATION

I, Kandimathie Christine Ramon, certify that:

1.I have reviewed this annual report on Form 20-F of AngloGold Ashanti Limited;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the company as of, and for, the periods presented in this report;

4.The company’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the company and have:
a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with IFRS as issued by the IASB;
c.Evaluated the effectiveness of the company’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d.Disclosed in this report any change in the company’s internal control over financial reporting that occurred during the period covered by the annual report that has materially affected, or is reasonably likely to materially affect, the company’s internal control over financial reporting; and

5.The company’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the company’s auditors and the audit committee of company’s board of directors (or persons performing the equivalent functions):
a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the company’s ability to record, process, summarise and report financial information; and
b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the company’s internal control over financial reporting.



Date: 29 March 2022

/s/ Kandimathie Christine Ramon
Kandimathie Christine Ramon
Chief Financial Officer
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EXHIBIT 19.13




CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Annual Report of AngloGold Ashanti Limited (the “Company”) on Form 20-F for the period ending 31 December 2021, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned hereby certify that to the best of our knowledge:

1.    The Report fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934; and

2.    The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.








Date: 29 March 2022            /s/ Alberto Calderon
                    Name: Alberto Calderon
                    Title: Chief Executive Officer




Date: 29 March 2022            /s/ Kandimathie Christine Ramon
                    Name: Kandimathie Christine Ramon
                    Title: Chief Financial Officer






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Exhibit 19.15.1


CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM


We consent to the incorporation by reference in the Registration Statement on Form S-8 (No. 333-113789) and the Registration Statement on Form F-3 (No. 333-230651) of AngloGold Ashanti Limited of our reports dated 29 March 2022, with respect to the consolidated financial statements of AngloGold Ashanti Limited and the effectiveness of internal control over financial reporting of AngloGold Ashanti Limited included in this Annual Report (Form 20-F) for the year ended 31 December 2021, filed with the Securities and Exchange Commission.







/s/ Ernst & Young Inc.


Johannesburg, Republic of South Africa
29 March 2022

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Table of Contents


Exhibit 19.15.2


CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

AngloGold Ashanti Limited
Johannesburg, South Africa


We hereby consent to the incorporation by reference in the Registration Statements on Form S-8 (No. 333-113789) and Form F-3 (No. 333-230651) of AngloGold Ashanti Limited of our report dated 29 March 2022, relating to the consolidated financial statements of Kibali (Jersey) Limited which appears in this Annual Report on Form 20-F of AngloGold Ashanti Limited.



/s/ BDO LLP

BDO LLP
London, United Kingdom
29 March 2022




SIGNATURESCERTIFICATION PURSUANT TO
The registrant hereby certifies that it meets all18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Annual Report of the requirements for filingAngloGold Ashanti Limited (the “Company”) on Form 20-F for the period ending 31 December 2021, as filed with the Securities and that it has duly caused and authorisedExchange Commission on the date hereof (the “Report”), the undersigned hereby certify that to sign this annual report on its behalf.the best of our knowledge:
ANGLOGOLD ASHANTI LIMITED
/s/ Kandimathie Christine Ramon1.    The Report fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934; and


2.    The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
Name:Kandimathie Christine Ramon
Title:Chief Financial Officer
Date:March 29, 2019





Exhibits to Form 20-F

Exhibit NumberDescriptionRemarks
Exhibit 19.1
Memorandum of Incorporation of AngloGold Ashanti Limited (last amended 16 May 2017)
Incorporated by reference to AngloGold Ashanti Limited’s report on Form 6-K (No. 001-14846) furnished to the Securities and Exchange Commission on 19 May 2017
Exhibit 19.2.1
Indenture for guaranteed debt securities among AngloGold Ashanti Holdings plc, as issuer, AngloGold Ashanti Limited, as guarantor, and The Bank of New York Mellon, as trustee, dated as of 28 April 2010
Incorporated by reference to Exhibit 4.2 to AngloGold Ashanti Limited and AngloGold Ashanti Holdings plc’s Registration Statement on Form F-3 (Nos. 333-182712 and 333-182712-02) filed with the Securities and Exchange Commission 17 July 2012
Exhibit 19.2.2
Form of 5.375% Notes due 2020 and related Guarantee
Incorporated by reference to Exhibit 99(C) to AngloGold Ashanti Limited and AngloGold Ashanti Holdings plc’s Registration Statement on Form 8-A (Nos. 001-14846 and 001-34725) filed with the Securities and Exchange Commission on 28 April 2010
Exhibit 19.2.3
Form of 6.50% Notes due 2040 and related Guarantee
Incorporated by reference to Exhibit 99(C) to AngloGold Ashanti Limited and AngloGold Ashanti Holdings plc’s Registration Statement on Form 8-A (Nos. 001-14846 and 001-34725) filed with the Securities and Exchange Commission on 28 April 2010
Exhibit 19.2.4
Form of 5.125% Notes due 2022 and related Guarantee
Incorporated by reference to Exhibit 4.1 to AngloGold Ashanti Limited’s report on Form 6-K (No. 001-14846) furnished to the Securities and Exchange Commission on 30 July 2012
Exhibit 19.2.5
Amended and Restated Deposit Agreement dated as of 3 June 2008 among AngloGold Ashanti Limited, The Bank of New York Mellon as Depositary and all Owners and Beneficial Owners from time to time of American Depositary Shares issued thereunder
Incorporated by reference to Exhibit 1 to AngloGold Ashanti Limited’s Registration Statement on Form F-6 (No. 333-159248) filed on 14 May 2009
Exhibit 19.4.1.1
Bonus Share Plan as amended on 27 March 2013
Incorporated by reference to AngloGold Ashanti Limited’s report on Form 6-K (No. 001-14846) furnished to the Securities and Exchange Commission on 10 April 2013
Exhibit 19.4.1.2
Long-Term Incentive Plan as amended on 27 March 2013
Incorporated by reference to AngloGold Ashanti Limited’s report on Form 6-K (No. 001-14846) furnished to the Securities and Exchange Commission on 10 April 2013
Exhibit 19.4.1.3

Deferred Share Plan of AngloGold Ashanti 2018

Incorporated by reference to AngloGold Ashanti Limited’s report on Form 6-K (No. 001-14846) furnished to the Securities and Exchange Commission on 18 May 2017
Exhibit 19.4.4.2
ZAR Revolving Credit Agreement dated 3 November 2017 with AngloGold Ashanti Limited as borrower and The Standard Bank of South Africa Limited as facility agent and lender

Incorporated by reference to AngloGold Ashanti Limited’s report on Form 6-K (No. 001-14846) furnished to the Securities and Exchange Commission on 13 March 2018

Exhibit 19.4.4.3
ZAR Revolving Credit Agreement dated 12 December 2017 with AngloGold Ashanti Limited as borrower and Nedbank Limited as facility agent who in conjunction with ABSA Bank Limited constitute the lenders

Incorporated by reference to AngloGold Ashanti Limited’s report on Form 6-K (No. 001-14846) furnished to the Securities and Exchange Commission on 15 March 2018




Exhibit NumberDescriptionRemarks
Exhibit 19.4.4.4

Syndicated Multi-currency Revolving Credit Facility agreement dated 23 October 2018 with Anglogold Ashanti Holdings plc and Anglogold Australia Limited as borrowers and the Bank of Novia Scotia as facility agent and the financial institutions party thereto as lenders
Incorporated by reference to AngloGold Ashanti Limited’s report on Form 6-K (No. 001-14846) furnished to the Securities and Exchange Commission on 25 February 2019

Exhibit 19.4.4.5

Multi-currency Revolving Credit Facility agreement as amended and restated on 29 January 2019 with Geita Gold Mining Limited as borrower and Nedbank Limited as lender
Incorporated by reference to AngloGold Ashanti Limited’s report on Form 6-K (No. 001-14846) furnished to the Securities and Exchange Commission on 20 March 2019

Exhibit 19.4.5.1
Employment contract of Kandimathie Christine Ramon – Chief Financial Officer with effect from 1 October 2014
Incorporated by reference to AngloGold Ashanti Limited’s report on Form 6-K (No. 001-14846) furnished to the Securities and Exchange Commission on 8 October 2014
Exhibit 19.4.5.2
Employment contract of Kelvin Paul Michael Dushnisky - Chief Executive Officer with effect from 1 September 2018
Incorporated by reference to AngloGold Ashanti Limited’s report on Form 6-K (No. 001-14846) furnished to the Securities and Exchange Commission on 12 February 2019
Exhibit 19.4.6
Stock Purchase Agreement dated as of 8 June 2015, among AngloGold Ashanti North America Inc., a Colorado corporation, AngloGold Ashanti USA Incorporated, a Delaware corporation, AngloGold Ashanti (Colorado) Corp., a Delaware corporation, GCGC LLC, a Colorado limited liability company, and Newmont Mining Corporation, a Delaware corporation, and AngloGold Ashanti Limited, a South African public company
Incorporated by reference to AngloGold Ashanti Limited’s report on Form 6-K (No.001-14846) furnished to the Securities and Exchange Commission on 19 February 2016
Exhibit 19.8
List of AngloGold Ashanti Limited subsidiaries
Exhibit 19.12.1
Certification of Kelvin Dushnisky as Chief Executive Officer of Anglogold Ashanti Limited, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
Exhibit 19.12.2
Certification of Christine Ramon, Chief Financial Officer of AngloGold Ashanti Limited, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
Exhibit 19.13
Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
Exhibit 19.15.1
Consent of Ernst & Young Inc., independent registered public accounting firm
Exhibit 19.15.2
Consent of BDO LLP, independent registered public accounting firm


EXHIBIT 19.8

PRINCIPAL SUBSIDIARIES AND OPERATING ENTITIES AT 31 DECEMBER 2018

  Shares held HoldingPercentage held
20182017
 20182017
Principal subsidiaries and controlled operating entities(1)
      
AngloGold Ashanti Australia Limited(2)
2257,462,077257,462,077
I100100
AngloGold Ashanti Holdings plc65,326,550,9175,326,550,917
D100100
AngloGold Ashanti USA Incorporated10237237
D100100
       
Operating entities      
AngloGold Ashanti Córrego do Sítio Mineração S.A.34,167,084,9994,167,084,999
I100100
AngloGold Ashanti (Ghana) Limited(3)
4132,419,584132,419,584
I100100
AngloGold Ashanti (Iduapriem) Limited466,27066,270
I100100
Cerro Vanguardia S.A.113,875,00013,875,000
I92.5092.50
Geita Gold Mining Limited9123,382,772123,382,772
I100100
Mineração Serra Grande S.A.31,999,9991,999,999
I100100
Societé AngloGold Ashanti de Guinée S.A.53,486,1343,486,134
I8585
       
Joint venture operating entities      
Kibali (Jersey) Limited(4)
72,3242,324
I5050
Société des Mines de Morila S.A.8400400
I4040
Société d'Exploitation des Mines d'Or de Sadiola S.A.841,00041,000
I4141
       
Unincorporated joint venture      
Tropicana joint venture2n/an/a
I7070

D - Direct Holding
I - Indirect Holding

(1)
All the operations in South Africa, namely, Mine Waste Solutions, Mponeng and TauTona are held by the parent company, AngloGold Ashanti Limited.
(2)
Owner of the Sunrise Dam operation and the Tropicana joint venture in Australia.
(3)
Operates the Obuasi mine in Ghana.
(4)
Owner of Kibali Goldmines S.A. which operates the Kibali mine in the Democratic Republic of the Congo.
1Argentina 6Isle of Man
2Australia 7Jersey
3Brazil 8Mali
4Ghana 9Tanzania
5Republic of Guinea 10United States of America

EXHIBIT 19.12.1
CERTIFICATION

I, Kelvin Dushnisky, certify that:

1.I have reviewed this annual report on Form 20-F of AngloGold Ashanti Limited;
2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the company as of, and for, the periods presented in this report;
4.The company’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the company and have:
a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with IFRS as issued by the IASB;
c.Evaluated the effectiveness of the company’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d.Disclosed in this report any change in the company’s internal control over financial reporting that occurred during the period covered by the annual report that has materially affected, or is reasonably likely to materially affect, the company’s internal control over financial reporting; and
5.The company’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the company’s auditors and the audit committee of company’s board of directors (or persons performing the equivalent functions):
a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the company’s ability to record, process, summarize and report financial information; and
b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the company’s internal control over financial reporting.


Date: 29 March 20192022            /s/ Alberto Calderon

                    Name: Alberto Calderon
/s/ Kelvin Paul Michael Dushnisky
Kelvin Paul Michael Dushnisky
                    Title: Chief Executive Officer


EXHIBIT 19.12.2
CERTIFICATION

I, Christine Ramon, certify that:

1.I have reviewed this annual report on Form 20-F of AngloGold Ashanti Limited;
2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the company as of, and for, the periods presented in this report;
4.The company’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the company and have:
a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with IFRS as issued by the IASB;
c.Evaluated the effectiveness of the company’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d.Disclosed in this report any change in the company’s internal control over financial reporting that occurred during the period covered by the annual report that has materially affected, or is reasonably likely to materially affect, the company’s internal control over financial reporting; and
5.The company’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the company’s auditors and the audit committee of company’s board of directors (or persons performing the equivalent functions):
a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the company’s ability to record, process, summarize and report financial information; and
b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the company’s internal control over financial reporting.


Date: 29 March 2019

/s/2022            /s/ Kandimathie Christine Ramon
                    Name: Kandimathie Christine Ramon
                    Title: Chief Financial Officer


EXHIBIT 19.13








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Exhibit 19.15.1


CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM


We consent to the incorporation by reference in the Registration Statement on Form S-8 (No. 333-113789) and the Registration Statement on Form F-3 (No. 333-230651) of AngloGold Ashanti Limited of our reports dated 29 March 2022, with respect to the consolidated financial statements of AngloGold Ashanti Limited and the effectiveness of internal control over financial reporting of AngloGold Ashanti Limited included in this Annual Report (Form 20-F) for the year ended 31 December 2021, filed with the Securities and Exchange Commission.







/s/ Ernst & Young Inc.


Johannesburg, Republic of South Africa
29 March 2022

E - 9
Table of Contents


Exhibit 19.15.2


CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

AngloGold Ashanti Limited
Johannesburg, South Africa


We hereby consent to the incorporation by reference in the Registration Statements on Form S-8 (No. 333-113789) and Form F-3 (No. 333-230651) of AngloGold Ashanti Limited of our report dated 29 March 2022, relating to the consolidated financial statements of Kibali (Jersey) Limited which appears in this Annual Report on Form 20-F of AngloGold Ashanti Limited.



/s/ BDO LLP

BDO LLP
London, United Kingdom
29 March 2022




CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002


In connection with the Annual Report of AngloGold Ashanti Limited (the “Company”) on Form 20-F for the period ending 31 December 2018,2021, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned hereby certify that to the best of our knowledge:

1.The Report fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934; and

2.The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.



1.    The Report fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934; and



2.    The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.








Date: 29 March 2019/s/ Kelvin Paul Michael Dushnisky2022            /s/ Alberto Calderon
Name: Kelvin Paul Michael DushniskyAlberto Calderon
Title: Chief Executive Officer








Date: 29 March 2019/s/2022            /s/ Kandimathie Christine Ramon
Name: Kandimathie Christine Ramon
Title: Chief Financial Officer








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Exhibit 19.15.1




CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM




We consent to the incorporation by reference in the Registration Statement on Form S-8 (No. 333-113789) and the Registration Statement on Form F-3 (No. 333-210564)333-230651) of AngloGold Ashanti Limited of our reports dated 29 March 2019,2022, with respect to the consolidated financial statements of AngloGold Ashanti Limited and the effectiveness of internal control over financial reporting of AngloGold Ashanti Limited included in this Annual Report (Form 20-F) for the year ended 31 December 2018,2021, filed with the Securities and Exchange Commission.












/s/ Ernst & Young Inc.

Ernst & Young Inc.


Johannesburg, Republic of South Africa
29 March 20192022



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Exhibit 19.15.2




CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM


AngloGold Ashanti Limited
Johannesburg, South Africa




We hereby consent to the incorporation by reference in the Registration StatementStatements on Form S-8 (No. 333-113789) and the Registration Statement on Form F-3 (No. 333-210564)333-230651) of AngloGold Ashanti Limited of our report dated 2529 March 2019,2022, relating to the consolidated financial statements of Kibali (Jersey) Limited which appears in this Annual Report on Form 20-F of AngloGold Ashanti Limited .Limited.






/s/ BDO LLP


BDO LLP

London, United Kingdom
29 March 20192022










SIGNATURES
The registrant hereby certifies that it meets all of the requirements for filing on Form 20-F and that it has duly caused and authorised the undersigned to sign this annual report on its behalf.
ANGLOGOLD ASHANTI LIMITED


/s/ KC Ramon
Name:Kandimathie Christine Ramon
Title:Chief Financial Officer
Date:29 March 2022






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