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.
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.
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.
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
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
•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 price | Australia | Brazil | Argentina | Colombia |
| $/oz | AUD/oz | BRL/oz | ARS/oz | COP/oz |
2021 Mineral Reserve(3) | 1,200 | 1,633 | 6,182 | 134,452 | 3,849,000 |
2020 Mineral Reserve(2) | 1,200 | 1,604 | 5,510 | 119,631 | 4,096,877 |
2021 Mineral Resource(1) | 1,500 | 2,072 | 7,940 | 173,065 | 5,336,250 |
(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.
Copper price
The following copper price was used as a basis for estimation in the December 2021 declaration:
| | | | | | | | |
| Copper price(5) |
| $/lb | COP/lb |
2021 Mineral Reserve(4) | 2.90 | 9,302 |
2020 Mineral Reserve(3) | 2.65 | 9,047 |
2021 Mineral Resource(1) | 3.50 | 12,451 |
| | |
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.
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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.
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.
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Mineral Resource (1) | Measured | Indicated | Measured and Indicated Total | Inferred |
Gold | Tonnes (3) | Grade | Contained Gold | Tonnes (3) | Grade | Contained Gold | Tonnes (3) | Grade | Contained Gold | Tonnes (3) | Grade | Contained Gold |
as at 31 December 2021 | Million | g/t | Tonnes | Moz | Million | g/t | Tonnes | Moz | Million | g/t | Tonnes | Moz | Million | g/t | Tonnes | Moz |
Continental Africa Region | 13.16 | | 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 Congo | 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 | |
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 | |
Ghana | 4.09 | | 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 | |
Tanzania | 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 | |
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 Region | 64.29 | | 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 | |
Argentina | 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 | |
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 | |
Brazil | 14.81 | | 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 | |
Colombia | 45.15 | | 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 Region | 29.92 | | 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 Total | 107.37 | | 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 | |
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.
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Mineral Resource (1) | Measured | Indicated | Measured and Indicated Total | Inferred |
Copper | Tonnes (2) | Grade | Contained Copper | Tonnes (2) | Grade | Contained Copper | Tonnes (2) | Grade | Contained Copper | Tonnes (2) | Grade | Contained Copper |
as at 31 December 2021 | Million | %Cu | Tonnes Million | Pounds Million | Million | %Cu | Tonnes Million | Pounds Million | Million | %Cu | Tonnes Million | Pounds Million | Million | %Cu | Tonnes Million | Pounds Million |
Americas Region | 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 | |
Colombia | 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 | |
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 Total | 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 | |
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.
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.
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Mineral Reserve | Proven | Probable | Total Mineral Reserve |
Gold | Tonnes (2) | Grade | Contained Gold | Tonnes (2) | Grade | Contained Gold | Tonnes (2) | Grade | Contained Gold |
as at 31 December 2021 | Million | g/t | Tonnes | Moz | Million | g/t | Tonnes | Moz | Million | g/t | Tonnes | Moz |
Continental Africa Region | 41.33 | | 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 Congo | 14.35 | | 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 | |
Ghana | 6.88 | | 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 | |
Guinea | 17.91 | | 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 | |
Tanzania | 2.19 | | 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 Region | 11.11 | | 2.70 | | 29.99 | | 0.96 | | 141.28 | | 1.03 | | 146.01 | | 4.69 | | 152.40 | | 1.15 | | 176.00 | | 5.66 | |
Argentina | 4.19 | | 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 | |
Brazil | 6.93 | | 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 Region | 26.41 | | 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 Total | 78.86 | | 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.
(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.
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Mineral Reserve | Proven | Probable | Total Mineral Reserve |
Copper | Tonnes (1) | Grade | Contained Copper | Tonnes (1) | Grade | Contained Copper | Tonnes (1) | Grade | Contained Copper |
as at 31 December 2021 | Million | %Cu | Tonnes Million | Pounds Million | Million | %Cu | Tonnes Million | Pounds Million | Million | %Cu | Tonnes Million | Pounds 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.
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.
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);
•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
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.
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”.
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
| | | | | | | | | | | | | | | | | |
Kibali | Qualified Person | Professional Organisation | Membership number | Relevant Years Experience | Qualification |
Mineral Resource | Richard Peattie | AusIMM | 301029 | 25 years | MPhil Mineral Resource Evaluation (University of Queensland) |
Mineral Reserve | Romulo Sanhueza | AusIMM | 211794 | 24 years | BSc 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
| | | | | | | | |
Kibali | Unit | Open Pit |
Costs | | |
Waste cost | $/tonne mined | 2.92-3.09(1) |
Extra Ore Cost – Grade Control + Ore – Rehandle + Overhaul | $/tonne mined | 1.27 | |
Grade Control cost | $/tonne mined | 0.75 | |
Dilution | % | 10 |
Ore Loss | % | 3 |
Processing cost | $/tonne milled | 15.04-17.85(1) |
G&A | $/tonne milled | 8.47 | |
Other Parameters | | |
| | | | | | | | |
Gold Royalties (4.7%) | $/oz | 70.50 | |
Metallurgical Recovery Factor | %MetRF | 86.1-90.1(1) |
Mineral Resource cut-off grade | g/t | 0.6-0.7(1) |
Mineral Resource price | $/oz | 1,500 | |
(1) Vary according to rock type |
| | | | | | | | |
Kibali | Unit | Underground |
Costs | | |
Mine Production | $/tonne ore mined | 36.17 | |
Capital | $/tonne ore mined | 3.97 |
G&A | $/tonne ore milled | 8.47 |
Processing cost | $/tonne ore milled | 17.85 |
Other Parameters | | |
Gold Royalties (4.7%) | $/oz | 70.50 |
Mining cut-off grade | g/t | 1.62 |
Mineral Resource price | $/oz | 1,500 | |
Metallurgical Recovery Factor | %MetRF | 90 |
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 2021 | Kibali |
Category | Proven | Probable | Total |
Previous Year | 1.272 | | 2.974 | | 4.247 | |
Depletion | (0.410) | | — | | (0.410) | |
Exploration | 0.852 | | (0.485) | | 0.367 | |
Methodology | — | | — | | — | |
Price | 0.039 | | 0.105 | | 0.144 | |
Cost | — | | — | | — | |
Geotechnical | 0.002 | | — | | 0.002 | |
Metallurgical | — | | — | | — | |
Operational | — | | — | | — | |
Acquisition / Disposal | — | | — | | — | |
Other | (0.018) | | — | | (0.018) | |
| | | | | | | | | | | |
Current Year | 1.737 | | 2.595 | | 4.331 | |
Net Difference | 0.464 | | (0.380) | | 0.085 | |
% Difference | 36 | | (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 2021 | Kibali |
Primary Commodity Price | $/oz | 1,200 | |
| | |
| | |
| | |
Cut-off grade | g/t | 1.5(2); 1.76(4); 2.02(3) |
| | |
Stoping width | cm | 2990(3) |
Dilution | % | 4.7(3); 10(2) |
| | |
| | |
| | |
Mining Recovery Factor | %MRF based on tonnes | 91.6(3); 97(2) |
| | |
Mine Call Factor | %MCF | 97 |
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.
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
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
| | | | | | | | | | | | | | | | | |
Iduapriem | Qualified Person | Professional Organisation | Membership number | Relevant Years Experience | Qualification |
Mineral Resource | Charles Kusi-Manu | AusIMM | 205238 | 31 years | Dip (Geological Engineering), MSc, MBA, Postgraduate Certificate (Geostatistics) |
Mineral Reserve | Mashudu Justice Davhana | ECSA | 20090050 | 21 years | BSc 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.
Material Assumptions for the Mineral Resource
Key Parameters
| | | | | | | | |
Iduapriem | Unit | Open 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 treated | 15.24 |
G&A | $/tonne treated | 6.75 |
Other Parameters | | |
Metallurgical Recovery Factor | %MetRF | 95.85 |
Slope angles | degree | 38-62.5(1) |
Mineral Resource cut-off grade | g/t | 0.45-0.50(1) |
Mineral Resource price | $/oz | 1,500 | |
(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 2021 | Iduapriem |
Category | Proven | Probable | Total |
Previous Year | 0.287 | | 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 | — | | — | | — | |
Operational | 0.007 | | 0.137 | | 0.144 | |
Acquisition / Disposal | — | | — | | — | |
| | | | | | | | | | | |
Other | — | | — | | — | |
Current Year | 0.047 | | 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 2021 | Iduapriem |
Primary Commodity Price | $/oz | 1200 |
| | |
| | |
| | |
Cut-off grade | g/t | 0.6-0.8(3); 0.8-0.85(2) |
| | |
| | |
| | |
| | |
Resource Modification Factor | %RMF based on tonnes | 100 |
Resource Modification Factor | %RMF based on g/t | 100 |
Mining Recovery Factor | %MRF based on tonnes | 94-100(1) |
Mining Recovery Factor | %MRF based on g/t | 96-100(1) |
Mine Call Factor | %MCF | 100 |
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.
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
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
| | | | | | | | | | | | | | | | | |
Obuasi | Qualified Person | Professional Organisation | Membership number | Relevant Years Experience | Qualification |
Mineral Resource | Emmarentia Maritz | SACNASP | 118345 | 18 years | MSc (Mineral Resource Evaluation) |
Mineral Reserve | Douglas Atanga | AusIMM | 334391 | 13 years | BSc (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
| | | | | | | | |
Obuasi | Unit | Underground |
Costs | | |
Mining cost | $/tonne mined | 59.52-98.01(1) |
Processing cost | $/tonne treated | 42.06 |
G&A | $/tonne treated | 22.92 |
Other Parameters | | |
Royalties | % | 3.0 |
MSO optimising cut-off | g/t | 3.15-4.0(1) |
Mineral Resource cut-off grade | g/t | 3.15-4.0(1) |
Mineral Resource price | $/oz | 1,500 | |
Metallurgical Recovery Factor | %MetRF | 87 |
(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
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 2021 | Obuasi |
Category | Proven | Probable | Total |
Previous Year | — | | 8.733 | | 8.733 | |
Depletion | — | | (0.086) | | (0.086) | |
Exploration | — | | — | | — | |
Methodology | 1.186 | | 0.010 | | 1.196 | |
Price | — | | — | | — | |
Cost | — | | — | | — | |
Geotechnical | — | | — | | — | |
Metallurgical | — | | — | | — | |
Operational | — | | (1.580) | | (1.580) | |
Acquisition / Disposal | — | | — | | — | |
Other | — | | — | | — | |
Current Year | 1.186 | | 7.078 | | 8.263 | |
Net Difference | 1.186 | | (1.655) | | (0.470) | |
% Difference | 100 | | (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 2021 | Obuasi |
Primary Commodity Price | $/oz | 1200 |
| | |
| | |
| | |
Cut-off grade | g/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/t | 100 |
Mine Call Factor | %MCF | 100 |
Metallurgical Recovery Factor | %MetRF | 87 |
(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.
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.
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.
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.
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
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
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
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”).
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
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
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.
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.
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
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.
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.
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
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.
ANGLOGOLD ASHANTI GLOBAL OPERATIONS: 2021
Operations, projects and exploration programmes | | | | | | | | | | | | | | | | | |
AMERICAS | AFRICA REGION | AUSTRALIA |
1 | | Argentina | 5 | | Guinea | 9 | | Australia |
| Cerro Vanguardia (92.5%) | | Siguiri (85%) | | Sunrise Dam |
2 | | Brazil | 6 | | Ghana | | Butcher Well (70%) |
| Serra Grande | | Iduapriem | | Tropicana (70%) |
| AGA Mineração | | Obuasi(3) | | |
3 | | Colombia | 7 | | Democratic Republic of the Congo (DRC) | | |
| Gramalote (50%)(1) | | Kibali (45%)(4) | | |
| La Colosa | 8 | | Tanzania | | |
| Quebradona | | Geita | | |
4 | USA | | | | |
| 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).
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).
AFRICA REGION
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 | | | |
Iduapriem | 202 | | | 1,639 | |
Obuasi | 108 | | | 3,914 | |
Guinea | | | |
Attr. Siguiri 85% | 258 | | | 3,369 | |
Tanzania | | | |
Geita | 486 | | | 5,884 | |
|
Joint venture operations |
Democratic Republic of the Congo | | | |
Attr. Kibali 45% | 365 | | | 2,454 | |
| | | |
| | | |
| | | |
Africa Region - Key Statistics | | | | | | | | | | | | | | | | | | | | | | | |
| Unit | | 2021 | | 2020 | | 2019 |
Subsidiary operations | | | | | | | |
Tonnes treated/milled | Mt | | 21.2 | | | 20.5 | | | 19.1 | |
Pay limit | oz/t | | 0.035 | | | 0.034 | | | 0.039 | |
| g/t | | 1.193 | | | 1.160 | | | 1.330 | |
Recovered grade | oz/t | | 0.045 | | | 0.052 | | | 0.060 | |
| g/t | | 1.54 | | | 1.77 | | | 1.77 | |
Gold production (a) (attributable) | 000oz | | 1,054 | | | 1,143 | | | 1,094 | |
Cost of sales | $m | | 1,300 | | | 1,232 | | | 1,173 | |
Total cash costs (1) | $/oz | | 991 | | | 797 | | | 801 | |
All-in sustaining costs (1) | $/oz | | 1,264 | | | 975 | | | 947 | |
Capital expenditure | $m | | 434 | | | 345 | | | 359 | |
Safety | | | | | | | |
Number of fatalities | | | 1 | | 2 | | 0 |
AIFR | Per million hours worked | | 0.61 | | | 0.55 | | | 0.62 | |
People | | | | | | | |
Average no of employees: Total | | | 14,806 | | | 14,496 | | | 12,847 | |
Permanent employees | | | 5,619 | | | 5,433 | | | 4,940 | |
Contractors | | | 9,187 | | | 9,063 | | | 7,907 | |
(a) Includes Obuasi gold production in 2020, capitalised as part of the project development.
| | | | | | | | | | | | | | | | | | | | | | | |
| Unit | | 2021 | | 2020 | | 2019 |
Joint venture operations | | | | | | | |
Tonnes treated/milled | Mt | | 3.5 | | | 3.4 | | | 7.5 | |
Pay limit | oz/t | | 0.048 | | | 0.048 | | | 0.037 | |
| g/t | | 1.652 | | | 1.640 | | | 1.255 | |
Recovered grade | oz/t | | 0.095 | | | 0.096 | | | 0.060 | |
| g/t | | 3.25 | | | 3.29 | | | 1.85 | |
Gold production (attributable) | 000oz | | 365 | | | 364 | | | 445 | |
Cost of sales | $m | | 350 | | | 340 | | | 428 | |
Total cash costs (1) | $/oz | | 647 | | | 629 | | | 657 | |
All-in sustaining costs (1) | $/oz | | 856 | | | 810 | | | 767 | |
Capital expenditure | $m | | 72 | | | 52 | | | 51 | |
Safety | | | | | | | |
Number of fatalities(2) | | | n/a | | n/a | | 0 |
AIFR (2) | Per million hours worked | | n/a | | n/a | | 0.65 | |
People | | | | | | | |
Average no of employees: Total | | | 2,454 | | | 2,333 | | | 2,939 | |
Permanent employees | | | 860 | | | 824 | | | 1,191 | |
Contractors | | | 1,594 | | | 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.
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.
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 Mineração | 331 | | | 6,142 | |
Serra Grande | 83 | | | 1,980 | |
Americas - Key Statistics | | | | | | | | | | | | | | | | | | | | | | | |
| Unit | | 2021 | | 2020 | | 2019 |
Operation | | | | | | | |
Tonnes treated/milled | Mt | | 7.8 | | | 7.5 | | | 7.3 | |
Pay limit | oz/t | | 0.10 | | | 0.07 | | | 0.11 | |
| g/t | | 3.49 | | | 2.46 | | | 3.79 | |
Recovered grade | oz/t | | 0.066 | | | 0.081 | | | 0.089 | |
| g/t | | 2.27 | | | 2.77 | | | 3.04 | |
Gold production (Attributable) | 000oz | | 559 | | | 649 | | | 710 | |
Silver (attributable) | Moz | | 3.2 | | | 3.3 | | | 3.4 | |
Cost of sales | $m | | 822 | | | 764 | | | 822 | |
Total cash costs (1) | $/oz | | 921 | | | 721 | | | 736 | |
All-in sustaining costs (1) | $/oz | | 1,587 | | | 1,003 | | | 1,032 | |
Capital expenditure (2) | $m | | 398 | | | 217 | | | 195 | |
Safety | | | | | | | |
Number of fatalities | | | 1 | | 0 | | 0 |
AIFR | Per million hours worked | | 3.55 | | | 3.68 | | | 3.50 | |
People | | | | | | | |
Average no of employees: Total | | | 9,972 | | | 8,789 | | | 8,114 | |
Permanent employees | | | 6,452 | | | 6,158 | | | 5,869 | |
Contractors | | | 3,520 | | | 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.
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.
AUSTRALIA
| | | | | | | | | | | |
| Attributable gold production (000oz) | | Average number of employees |
Operations | | | |
Australia | | | |
1. Sunrise Dam | 229 | | | 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%).
Australia - Key Statistics | | | | | | | | | | | | | | | | | | | | | | | |
| Unit | | 2021 | | 2020 | | 2019 |
Operation | | | | | | | |
Tonnes treated/milled | Mt | | 10.5 | | | 10.2 | | | 10.1 | |
Pay limit | oz/t | | 0.06 | | | 0.06 | | | 0.06 | |
| g/t | | 1.89 | | | 1.95 | | | 1.95 | |
Recovered grade | oz/t | | 0.047 | | | 0.054 | | | 0.060 | |
| g/t | | 1.47 | | | 1.68 | | | 1.87 | |
Gold production (attributable) | 000oz | | 494 | | | 554 | | | 614 | |
Cost of sales | $m | | 740 | | | 705 | | | 632 | |
Total cash costs (1) | $/oz | | 1,196 | | | 968 | | | 730 | |
All-in sustaining costs (1) | $/oz | | 1,500 | | | 1,225 | | | 990 | |
Capital expenditure | $m | | 185 | | | 143 | | | 149 | |
Safety | | | | | | | |
Number of fatalities | | | 0 | | 0 | | 0 |
AIFR | Per million hours worked | | 6.59 | | | 3.74 | | | 7.33 | |
People | | | | | | | |
Average no of employees: Total | | | 1,332 | | | 1,230 | | | 1,140 | |
Permanent employees | | | 288 | | | 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.
SOUTH AFRICA
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 | | | | | | | | | | | | | | | | | | | | | | | |
| Unit | | 2021 | | 2020 | | 2019 |
Operation | | | | | | | |
Tonnes treated/milled | Mt | | | | 0.4 | | | 35.1 | |
Pay limit (1) | oz/t | | | | 0.40 | | | 0.33 | |
| g/t | | | | 14.60 | | | 11.90 | |
Recovered grade (1) | oz/t | | | | 0.120 | | | 0.183 | |
| g/t | | | | 3.75 | | | 5.69 | |
Gold production | 000oz | | | | 241 | | | 419 | |
Cost of sales | $m | | | | 287 | | | 479 | |
Total cash costs (2) | $/oz | | | | 1,149 | | | 981 | |
All-in sustaining costs (2) | $/oz | | | | 1,296 | | | 1,132 | |
Capital expenditure | $m | | | | 35 | | | 57 | |
Safety | | | | | | | |
Number of fatalities | | | | | 4 | | 0 |
AIFR | Per million hours worked | | | | 6.12 | | | 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”.
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.
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.
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.
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
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
•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 price | Australia | Brazil | Argentina | Colombia |
| $/oz | AUD/oz | BRL/oz | ARS/oz | COP/oz |
2021 Mineral Reserve(3) | 1,200 | 1,633 | 6,182 | 134,452 | 3,849,000 |
2020 Mineral Reserve(2) | 1,200 | 1,604 | 5,510 | 119,631 | 4,096,877 |
2021 Mineral Resource(1) | 1,500 | 2,072 | 7,940 | 173,065 | 5,336,250 |
(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.
Copper price
The following copper price was used as a basis for estimation in the December 2021 declaration:
| | | | | | | | |
| Copper price(5) |
| $/lb | COP/lb |
2021 Mineral Reserve(4) | 2.90 | 9,302 |
2020 Mineral Reserve(3) | 2.65 | 9,047 |
2021 Mineral Resource(1) | 3.50 | 12,451 |
| | |
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.
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) | Measured | Indicated | Measured and Indicated Total | Inferred |
Gold | Tonnes (3) | Grade | Contained Gold | Tonnes (3) | Grade | Contained Gold | Tonnes (3) | Grade | Contained Gold | Tonnes (3) | Grade | Contained Gold |
as at 31 December 2021 | Million | g/t | Tonnes | Moz | Million | g/t | Tonnes | Moz | Million | g/t | Tonnes | Moz | Million | g/t | Tonnes | Moz |
Continental Africa Region | 13.16 | | 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 Congo | 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 | |
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 | |
Ghana | 4.09 | | 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 | |
Tanzania | 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 | |
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 Region | 64.29 | | 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 | |
Argentina | 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 | |
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 | |
Brazil | 14.81 | | 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 | |
Colombia | 45.15 | | 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 Region | 29.92 | | 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 Total | 107.37 | | 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 | |
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) | Measured | Indicated | Measured and Indicated Total | Inferred |
Copper | Tonnes (2) | Grade | Contained Copper | Tonnes (2) | Grade | Contained Copper | Tonnes (2) | Grade | Contained Copper | Tonnes (2) | Grade | Contained Copper |
as at 31 December 2021 | Million | %Cu | Tonnes Million | Pounds Million | Million | %Cu | Tonnes Million | Pounds Million | Million | %Cu | Tonnes Million | Pounds Million | Million | %Cu | Tonnes Million | Pounds Million |
Americas Region | 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 | |
Colombia | 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 | |
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 Total | 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 | |
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.
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 Reserve | Proven | Probable | Total Mineral Reserve |
Gold | Tonnes (2) | Grade | Contained Gold | Tonnes (2) | Grade | Contained Gold | Tonnes (2) | Grade | Contained Gold |
as at 31 December 2021 | Million | g/t | Tonnes | Moz | Million | g/t | Tonnes | Moz | Million | g/t | Tonnes | Moz |
Continental Africa Region | 41.33 | | 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 Congo | 14.35 | | 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 | |
Ghana | 6.88 | | 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 | |
Guinea | 17.91 | | 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 | |
Tanzania | 2.19 | | 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 Region | 11.11 | | 2.70 | | 29.99 | | 0.96 | | 141.28 | | 1.03 | | 146.01 | | 4.69 | | 152.40 | | 1.15 | | 176.00 | | 5.66 | |
Argentina | 4.19 | | 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 | |
Brazil | 6.93 | | 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 Region | 26.41 | | 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 Total | 78.86 | | 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.
(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 Reserve | Proven | Probable | Total Mineral Reserve |
Copper | Tonnes (1) | Grade | Contained Copper | Tonnes (1) | Grade | Contained Copper | Tonnes (1) | Grade | Contained Copper |
as at 31 December 2021 | Million | %Cu | Tonnes Million | Pounds Million | Million | %Cu | Tonnes Million | Pounds Million | Million | %Cu | Tonnes Million | Pounds 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.
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.
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);
•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
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.
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
|
| | | |
| Morila | | Sadiola |
| | | |
Capacity (tonnes/annum) | 5.5Mt | | 4.9Mt |
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”.
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
| | | | | | | | | | | | | | | | | |
Kibali | Qualified Person | Professional Organisation | Membership number | Relevant Years Experience | Qualification |
Mineral Resource | Richard Peattie | AusIMM | 301029 | 25 years | MPhil Mineral Resource Evaluation (University of Queensland) |
Mineral Reserve | Romulo Sanhueza | AusIMM | 211794 | 24 years | BSc 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
| | | | | | | | |
Kibali | Unit | Open Pit |
Costs | | |
Waste cost | $/tonne mined | 2.92-3.09(1) |
Extra Ore Cost – Grade Control + Ore – Rehandle + Overhaul | $/tonne mined | 1.27 | |
Grade Control cost | $/tonne mined | 0.75 | |
Dilution | % | 10 |
Ore Loss | % | 3 |
Processing cost | $/tonne milled | 15.04-17.85(1) |
G&A | $/tonne milled | 8.47 | |
Other Parameters | | |
| | | | | | | | |
Gold Royalties (4.7%) | $/oz | 70.50 | |
Metallurgical Recovery Factor | %MetRF | 86.1-90.1(1) |
Mineral Resource cut-off grade | g/t | 0.6-0.7(1) |
Mineral Resource price | $/oz | 1,500 | |
(1) Vary according to rock type |
| | | | | | | | |
Kibali | Unit | Underground |
Costs | | |
Mine Production | $/tonne ore mined | 36.17 | |
Capital | $/tonne ore mined | 3.97 |
G&A | $/tonne ore milled | 8.47 |
Processing cost | $/tonne ore milled | 17.85 |
Other Parameters | | |
Gold Royalties (4.7%) | $/oz | 70.50 |
Mining cut-off grade | g/t | 1.62 |
Mineral Resource price | $/oz | 1,500 | |
Metallurgical Recovery Factor | %MetRF | 90 |
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 2021 | Kibali |
Category | Proven | Probable | Total |
Previous Year | 1.272 | | 2.974 | | 4.247 | |
Depletion | (0.410) | | — | | (0.410) | |
Exploration | 0.852 | | (0.485) | | 0.367 | |
Methodology | — | | — | | — | |
Price | 0.039 | | 0.105 | | 0.144 | |
Cost | — | | — | | — | |
Geotechnical | 0.002 | | — | | 0.002 | |
Metallurgical | — | | — | | — | |
Operational | — | | — | | — | |
Acquisition / Disposal | — | | — | | — | |
Other | (0.018) | | — | | (0.018) | |
| | | | | | | | | | | |
Current Year | 1.737 | | 2.595 | | 4.331 | |
Net Difference | 0.464 | | (0.380) | | 0.085 | |
% Difference | 36 | | (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 2021 | Kibali |
Primary Commodity Price | $/oz | 1,200 | |
| | |
| | |
| | |
Cut-off grade | g/t | 1.5(2); 1.76(4); 2.02(3) |
| | |
Stoping width | cm | 2990(3) |
Dilution | % | 4.7(3); 10(2) |
| | |
| | |
| | |
Mining Recovery Factor | %MRF based on tonnes | 91.6(3); 97(2) |
| | |
Mine Call Factor | %MCF | 97 |
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.
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
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
| | | | | | | | | | | | | | | | | |
Iduapriem | Qualified Person | Professional Organisation | Membership number | Relevant Years Experience | Qualification |
Mineral Resource | Charles Kusi-Manu | AusIMM | 205238 | 31 years | Dip (Geological Engineering), MSc, MBA, Postgraduate Certificate (Geostatistics) |
Mineral Reserve | Mashudu Justice Davhana | ECSA | 20090050 | 21 years | BSc 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.
Material Assumptions for the Mineral Resource
Key Parameters
| | | | | | | | |
Iduapriem | Unit | Open 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 treated | 15.24 |
G&A | $/tonne treated | 6.75 |
Other Parameters | | |
Metallurgical Recovery Factor | %MetRF | 95.85 |
Slope angles | degree | 38-62.5(1) |
Mineral Resource cut-off grade | g/t | 0.45-0.50(1) |
Mineral Resource price | $/oz | 1,500 | |
(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 2021 | Iduapriem |
Category | Proven | Probable | Total |
Previous Year | 0.287 | | 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 | — | | — | | — | |
Operational | 0.007 | | 0.137 | | 0.144 | |
Acquisition / Disposal | — | | — | | — | |
| | | | | | | | | | | |
Other | — | | — | | — | |
Current Year | 0.047 | | 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 2021 | Iduapriem |
Primary Commodity Price | $/oz | 1200 |
| | |
| | |
| | |
Cut-off grade | g/t | 0.6-0.8(3); 0.8-0.85(2) |
| | |
| | |
| | |
| | |
Resource Modification Factor | %RMF based on tonnes | 100 |
Resource Modification Factor | %RMF based on g/t | 100 |
Mining Recovery Factor | %MRF based on tonnes | 94-100(1) |
Mining Recovery Factor | %MRF based on g/t | 96-100(1) |
Mine Call Factor | %MCF | 100 |
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.
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
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
| | | | | | | | | | | | | | | | | |
Obuasi | Qualified Person | Professional Organisation | Membership number | Relevant Years Experience | Qualification |
Mineral Resource | Emmarentia Maritz | SACNASP | 118345 | 18 years | MSc (Mineral Resource Evaluation) |
Mineral Reserve | Douglas Atanga | AusIMM | 334391 | 13 years | BSc (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
| | | | | | | | |
Obuasi | Unit | Underground |
Costs | | |
Mining cost | $/tonne mined | 59.52-98.01(1) |
Processing cost | $/tonne treated | 42.06 |
G&A | $/tonne treated | 22.92 |
Other Parameters | | |
Royalties | % | 3.0 |
MSO optimising cut-off | g/t | 3.15-4.0(1) |
Mineral Resource cut-off grade | g/t | 3.15-4.0(1) |
Mineral Resource price | $/oz | 1,500 | |
Metallurgical Recovery Factor | %MetRF | 87 |
(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
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 2021 | Obuasi |
Category | Proven | Probable | Total |
Previous Year | — | | 8.733 | | 8.733 | |
Depletion | — | | (0.086) | | (0.086) | |
Exploration | — | | — | | — | |
Methodology | 1.186 | | 0.010 | | 1.196 | |
Price | — | | — | | — | |
Cost | — | | — | | — | |
Geotechnical | — | | — | | — | |
Metallurgical | — | | — | | — | |
Operational | — | | (1.580) | | (1.580) | |
Acquisition / Disposal | — | | — | | — | |
Other | — | | — | | — | |
Current Year | 1.186 | | 7.078 | | 8.263 | |
Net Difference | 1.186 | | (1.655) | | (0.470) | |
% Difference | 100 | | (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 2021 | Obuasi |
Primary Commodity Price | $/oz | 1200 |
| | |
| | |
| | |
Cut-off grade | g/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/t | 100 |
Mine Call Factor | %MCF | 100 |
Metallurgical Recovery Factor | %MetRF | 87 |
(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.
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.
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.
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.
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
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
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
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”).
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
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
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.
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.
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
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.
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.
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
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.
ANGLOGOLD ASHANTI GLOBAL OPERATIONS: 2021
Operations, projects and exploration programmes | | | | | | | | | | | | | | | | | |
AMERICAS | AFRICA REGION | AUSTRALIA |
1 | | Argentina | 5 | | Guinea | 9 | | Australia |
| Cerro Vanguardia (92.5%) | | Siguiri (85%) | | Sunrise Dam |
2 | | Brazil | 6 | | Ghana | | Butcher Well (70%) |
| Serra Grande | | Iduapriem | | Tropicana (70%) |
| AGA Mineração | | Obuasi(3) | | |
3 | | Colombia | 7 | | Democratic Republic of the Congo (DRC) | | |
| Gramalote (50%)(1) | | Kibali (45%)(4) | | |
| La Colosa | 8 | | Tanzania | | |
| Quebradona | | Geita | | |
4 | USA | | | | |
| 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).
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).
AFRICA REGION
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 | | | |
Iduapriem | 202 | | | 1,639 | |
Obuasi | 108 | | | 3,914 | |
Guinea | | | |
Attr. Siguiri 85% | 258 | | | 3,369 | |
Tanzania | | | |
Geita | 486 | | | 5,884 | |
|
Joint venture operations |
Democratic Republic of the Congo | | | |
Attr. Kibali 45% | 365 | | | 2,454 | |
| | | |
| | | |
| | | |
Africa Region - Key Statistics | | | | | | | | | | | | | | | | | | | | | | | |
| Unit | | 2021 | | 2020 | | 2019 |
Subsidiary operations | | | | | | | |
Tonnes treated/milled | Mt | | 21.2 | | | 20.5 | | | 19.1 | |
Pay limit | oz/t | | 0.035 | | | 0.034 | | | 0.039 | |
| g/t | | 1.193 | | | 1.160 | | | 1.330 | |
Recovered grade | oz/t | | 0.045 | | | 0.052 | | | 0.060 | |
| g/t | | 1.54 | | | 1.77 | | | 1.77 | |
Gold production (a) (attributable) | 000oz | | 1,054 | | | 1,143 | | | 1,094 | |
Cost of sales | $m | | 1,300 | | | 1,232 | | | 1,173 | |
Total cash costs (1) | $/oz | | 991 | | | 797 | | | 801 | |
All-in sustaining costs (1) | $/oz | | 1,264 | | | 975 | | | 947 | |
Capital expenditure | $m | | 434 | | | 345 | | | 359 | |
Safety | | | | | | | |
Number of fatalities | | | 1 | | 2 | | 0 |
AIFR | Per million hours worked | | 0.61 | | | 0.55 | | | 0.62 | |
People | | | | | | | |
Average no of employees: Total | | | 14,806 | | | 14,496 | | | 12,847 | |
Permanent employees | | | 5,619 | | | 5,433 | | | 4,940 | |
Contractors | | | 9,187 | | | 9,063 | | | 7,907 | |
(a) Includes Obuasi gold production in 2020, capitalised as part of the project development.
| | | | | | | | | | | | | | | | | | | | | | | |
| Unit | | 2021 | | 2020 | | 2019 |
Joint venture operations | | | | | | | |
Tonnes treated/milled | Mt | | 3.5 | | | 3.4 | | | 7.5 | |
Pay limit | oz/t | | 0.048 | | | 0.048 | | | 0.037 | |
| g/t | | 1.652 | | | 1.640 | | | 1.255 | |
Recovered grade | oz/t | | 0.095 | | | 0.096 | | | 0.060 | |
| g/t | | 3.25 | | | 3.29 | | | 1.85 | |
Gold production (attributable) | 000oz | | 365 | | | 364 | | | 445 | |
Cost of sales | $m | | 350 | | | 340 | | | 428 | |
Total cash costs (1) | $/oz | | 647 | | | 629 | | | 657 | |
All-in sustaining costs (1) | $/oz | | 856 | | | 810 | | | 767 | |
Capital expenditure | $m | | 72 | | | 52 | | | 51 | |
Safety | | | | | | | |
Number of fatalities(2) | | | n/a | | n/a | | 0 |
AIFR (2) | Per million hours worked | | n/a | | n/a | | 0.65 | |
People | | | | | | | |
Average no of employees: Total | | | 2,454 | | | 2,333 | | | 2,939 | |
Permanent employees | | | 860 | | | 824 | | | 1,191 | |
Contractors | | | 1,594 | | | 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.
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.
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 Mineração | 331 | | | 6,142 | |
Serra Grande | 83 | | | 1,980 | |
Americas - Key Statistics | | | | | | | | | | | | | | | | | | | | | | | |
| Unit | | 2021 | | 2020 | | 2019 |
Operation | | | | | | | |
Tonnes treated/milled | Mt | | 7.8 | | | 7.5 | | | 7.3 | |
Pay limit | oz/t | | 0.10 | | | 0.07 | | | 0.11 | |
| g/t | | 3.49 | | | 2.46 | | | 3.79 | |
Recovered grade | oz/t | | 0.066 | | | 0.081 | | | 0.089 | |
| g/t | | 2.27 | | | 2.77 | | | 3.04 | |
Gold production (Attributable) | 000oz | | 559 | | | 649 | | | 710 | |
Silver (attributable) | Moz | | 3.2 | | | 3.3 | | | 3.4 | |
Cost of sales | $m | | 822 | | | 764 | | | 822 | |
Total cash costs (1) | $/oz | | 921 | | | 721 | | | 736 | |
All-in sustaining costs (1) | $/oz | | 1,587 | | | 1,003 | | | 1,032 | |
Capital expenditure (2) | $m | | 398 | | | 217 | | | 195 | |
Safety | | | | | | | |
Number of fatalities | | | 1 | | 0 | | 0 |
AIFR | Per million hours worked | | 3.55 | | | 3.68 | | | 3.50 | |
People | | | | | | | |
Average no of employees: Total | | | 9,972 | | | 8,789 | | | 8,114 | |
Permanent employees | | | 6,452 | | | 6,158 | | | 5,869 | |
Contractors | | | 3,520 | | | 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.
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.
AUSTRALIA
| | | | | | | | | | | |
| Attributable gold production (000oz) | | Average number of employees |
Operations | | | |
Australia | | | |
1. Sunrise Dam | 229 | | | 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%).
Australia - Key Statistics | | | | | | | | | | | | | | | | | | | | | | | |
| Unit | | 2021 | | 2020 | | 2019 |
Operation | | | | | | | |
Tonnes treated/milled | Mt | | 10.5 | | | 10.2 | | | 10.1 | |
Pay limit | oz/t | | 0.06 | | | 0.06 | | | 0.06 | |
| g/t | | 1.89 | | | 1.95 | | | 1.95 | |
Recovered grade | oz/t | | 0.047 | | | 0.054 | | | 0.060 | |
| g/t | | 1.47 | | | 1.68 | | | 1.87 | |
Gold production (attributable) | 000oz | | 494 | | | 554 | | | 614 | |
Cost of sales | $m | | 740 | | | 705 | | | 632 | |
Total cash costs (1) | $/oz | | 1,196 | | | 968 | | | 730 | |
All-in sustaining costs (1) | $/oz | | 1,500 | | | 1,225 | | | 990 | |
Capital expenditure | $m | | 185 | | | 143 | | | 149 | |
Safety | | | | | | | |
Number of fatalities | | | 0 | | 0 | | 0 |
AIFR | Per million hours worked | | 6.59 | | | 3.74 | | | 7.33 | |
People | | | | | | | |
Average no of employees: Total | | | 1,332 | | | 1,230 | | | 1,140 | |
Permanent employees | | | 288 | | | 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.
SOUTH AFRICA
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 | | | | | | | | | | | | | | | | | | | | | | | |
| Unit | | 2021 | | 2020 | | 2019 |
Operation | | | | | | | |
Tonnes treated/milled | Mt | | | | 0.4 | | | 35.1 | |
Pay limit (1) | oz/t | | | | 0.40 | | | 0.33 | |
| g/t | | | | 14.60 | | | 11.90 | |
Recovered grade (1) | oz/t | | | | 0.120 | | | 0.183 | |
| g/t | | | | 3.75 | | | 5.69 | |
Gold production | 000oz | | | | 241 | | | 419 | |
Cost of sales | $m | | | | 287 | | | 479 | |
Total cash costs (2) | $/oz | | | | 1,149 | | | 981 | |
All-in sustaining costs (2) | $/oz | | | | 1,296 | | | 1,132 | |
Capital expenditure | $m | | | | 35 | | | 57 | |
Safety | | | | | | | |
Number of fatalities | | | | | 4 | | 0 |
AIFR | Per million hours worked | | | | 6.12 | | | 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”.
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.
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.
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.
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
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
•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 price | Australia | Brazil | Argentina | Colombia |
| $/oz | AUD/oz | BRL/oz | ARS/oz | COP/oz |
2021 Mineral Reserve(3) | 1,200 | 1,633 | 6,182 | 134,452 | 3,849,000 |
2020 Mineral Reserve(2) | 1,200 | 1,604 | 5,510 | 119,631 | 4,096,877 |
2021 Mineral Resource(1) | 1,500 | 2,072 | 7,940 | 173,065 | 5,336,250 |
(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.
Copper price
The following copper price was used as a basis for estimation in the December 2021 declaration:
| | | | | | | | |
| Copper price(5) |
| $/lb | COP/lb |
2021 Mineral Reserve(4) | 2.90 | 9,302 |
2020 Mineral Reserve(3) | 2.65 | 9,047 |
2021 Mineral Resource(1) | 3.50 | 12,451 |
| | |
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.
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) | Measured | Indicated | Measured and Indicated Total | Inferred |
Gold | Tonnes (3) | Grade | Contained Gold | Tonnes (3) | Grade | Contained Gold | Tonnes (3) | Grade | Contained Gold | Tonnes (3) | Grade | Contained Gold |
as at 31 December 2021 | Million | g/t | Tonnes | Moz | Million | g/t | Tonnes | Moz | Million | g/t | Tonnes | Moz | Million | g/t | Tonnes | Moz |
Continental Africa Region | 13.16 | | 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 Congo | 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 | |
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 | |
Ghana | 4.09 | | 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 | |
Tanzania | 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 | |
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 Region | 64.29 | | 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 | |
Argentina | 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 | |
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 | |
Brazil | 14.81 | | 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 | |
Colombia | 45.15 | | 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 Region | 29.92 | | 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 Total | 107.37 | | 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 | |
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) | Measured | Indicated | Measured and Indicated Total | Inferred |
Copper | Tonnes (2) | Grade | Contained Copper | Tonnes (2) | Grade | Contained Copper | Tonnes (2) | Grade | Contained Copper | Tonnes (2) | Grade | Contained Copper |
as at 31 December 2021 | Million | %Cu | Tonnes Million | Pounds Million | Million | %Cu | Tonnes Million | Pounds Million | Million | %Cu | Tonnes Million | Pounds Million | Million | %Cu | Tonnes Million | Pounds Million |
Americas Region | 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 | |
Colombia | 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 | |
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 Total | 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 | |
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.
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.
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Mineral Reserve | Proven | Probable | Total Mineral Reserve |
Gold | Tonnes (2) | Grade | Contained Gold | Tonnes (2) | Grade | Contained Gold | Tonnes (2) | Grade | Contained Gold |
as at 31 December 2021 | Million | g/t | Tonnes | Moz | Million | g/t | Tonnes | Moz | Million | g/t | Tonnes | Moz |
Continental Africa Region | 41.33 | | 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 Congo | 14.35 | | 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 | |
Ghana | 6.88 | | 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 | |
Guinea | 17.91 | | 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 | |
Tanzania | 2.19 | | 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 Region | 11.11 | | 2.70 | | 29.99 | | 0.96 | | 141.28 | | 1.03 | | 146.01 | | 4.69 | | 152.40 | | 1.15 | | 176.00 | | 5.66 | |
Argentina | 4.19 | | 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 | |
Brazil | 6.93 | | 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 Region | 26.41 | | 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 Total | 78.86 | | 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.
(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.
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Mineral Reserve | Proven | Probable | Total Mineral Reserve |
Copper | Tonnes (1) | Grade | Contained Copper | Tonnes (1) | Grade | Contained Copper | Tonnes (1) | Grade | Contained Copper |
as at 31 December 2021 | Million | %Cu | Tonnes Million | Pounds Million | Million | %Cu | Tonnes Million | Pounds Million | Million | %Cu | Tonnes Million | Pounds 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.
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.
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);
•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
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.
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”.
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
| | | | | | | | | | | | | | | | | |
Kibali | Sunrise DamQualified Person | Professional Organisation | TropicanaMembership number | Relevant Years Experience | Qualification |
Mineral Resource | Richard Peattie | AusIMM | 301029 | 25 years | MPhil Mineral Resource Evaluation (University of Queensland) |
Nameplate capacity (tonnes/annum)Mineral Reserve | 4.1MtRomulo Sanhueza | AusIMM | 4.9Mt211794 | 24 years | BSc 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
| | | | | | | | |
Kibali | Unit | Open Pit |
Costs | | |
Waste cost | $/tonne mined | 2.92-3.09(1) |
Extra Ore Cost – Grade Control + Ore – Rehandle + Overhaul | $/tonne mined | 1.27 | |
Grade Control cost | $/tonne mined | 0.75 | |
Dilution | % | 10 |
Ore Loss | % | 3 |
Processing cost | $/tonne milled | 15.04-17.85(1) |
G&A | $/tonne milled | 8.47 | |
Other Parameters | | |
| | | | | | | | |
Gold Royalties (4.7%) | $/oz | 70.50 | |
Metallurgical Recovery Factor | %MetRF | 86.1-90.1(1) |
Mineral Resource cut-off grade | g/t | 0.6-0.7(1) |
Mineral Resource price | $/oz | 1,500 | |
(1) Vary according to rock type |
| | | | | | | | |
Kibali | Unit | Underground |
Costs | | |
Mine Production | $/tonne ore mined | 36.17 | |
Capital | $/tonne ore mined | 3.97 |
G&A | $/tonne ore milled | 8.47 |
Processing cost | $/tonne ore milled | 17.85 |
Other Parameters | | |
Gold Royalties (4.7%) | $/oz | 70.50 |
Mining cut-off grade | g/t | 1.62 |
Mineral Resource price | $/oz | 1,500 | |
Metallurgical Recovery Factor | %MetRF | 90 |
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 2021 | Kibali |
Category | Proven | Probable | Total |
Previous Year | 1.272 | | 2.974 | | 4.247 | |
Depletion | (0.410) | | — | | (0.410) | |
Exploration | 0.852 | | (0.485) | | 0.367 | |
Methodology | — | | — | | — | |
Price | 0.039 | | 0.105 | | 0.144 | |
Cost | — | | — | | — | |
Geotechnical | 0.002 | | — | | 0.002 | |
Metallurgical | — | | — | | — | |
Operational | — | | — | | — | |
Acquisition / Disposal | — | | — | | — | |
Other | (0.018) | | — | | (0.018) | |
| | | | | | | | | | | |
Current Year | 1.737 | | 2.595 | | 4.331 | |
Net Difference | 0.464 | | (0.380) | | 0.085 | |
% Difference | 36 | | (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 2021 | Kibali |
Primary Commodity Price | $/oz | 1,200 | |
| | |
| | |
| | |
Cut-off grade | g/t | 1.5(2); 1.76(4); 2.02(3) |
| | |
Stoping width | cm | 2990(3) |
Dilution | % | 4.7(3); 10(2) |
| | |
| | |
| | |
Mining Recovery Factor | %MRF based on tonnes | 91.6(3); 97(2) |
| | |
Mine Call Factor | %MCF | 97 |
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.
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
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
| | | | | | | | | | | | | | | | | |
Iduapriem | Qualified Person | Professional Organisation | Membership number | Relevant Years Experience | Qualification |
Mineral Resource | Charles Kusi-Manu | AusIMM | 205238 | 31 years | Dip (Geological Engineering), MSc, MBA, Postgraduate Certificate (Geostatistics) |
Mineral Reserve | Mashudu Justice Davhana | ECSA | 20090050 | 21 years | BSc 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.
Material Assumptions for the Mineral Resource
Key Parameters
| | | | | | | | |
Iduapriem | Unit | Open 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 treated | 15.24 |
G&A | $/tonne treated | 6.75 |
Other Parameters | | |
Metallurgical Recovery Factor | %MetRF | 95.85 |
Slope angles | degree | 38-62.5(1) |
Mineral Resource cut-off grade | g/t | 0.45-0.50(1) |
Mineral Resource price | $/oz | 1,500 | |
(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 2021 | Iduapriem |
Category | Proven | Probable | Total |
Previous Year | 0.287 | | 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 | — | | — | | — | |
Operational | 0.007 | | 0.137 | | 0.144 | |
Acquisition / Disposal | — | | — | | — | |
| | | | | | | | | | | |
Other | — | | — | | — | |
Current Year | 0.047 | | 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 2021 | Iduapriem |
Primary Commodity Price | $/oz | 1200 |
| | |
| | |
| | |
Cut-off grade | g/t | 0.6-0.8(3); 0.8-0.85(2) |
| | |
| | |
| | |
| | |
Resource Modification Factor | %RMF based on tonnes | 100 |
Resource Modification Factor | %RMF based on g/t | 100 |
Mining Recovery Factor | %MRF based on tonnes | 94-100(1) |
Mining Recovery Factor | %MRF based on g/t | 96-100(1) |
Mine Call Factor | %MCF | 100 |
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.
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
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
| | | | | | | | | | | | | | | | | |
Obuasi | Qualified Person | Professional Organisation | Membership number | Relevant Years Experience | Qualification |
Mineral Resource | Emmarentia Maritz | SACNASP | 118345 | 18 years | MSc (Mineral Resource Evaluation) |
Mineral Reserve | Douglas Atanga | AusIMM | 334391 | 13 years | BSc (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
| | | | | | | | |
Obuasi | Unit | Underground |
Costs | | |
Mining cost | $/tonne mined | 59.52-98.01(1) |
Processing cost | $/tonne treated | 42.06 |
G&A | $/tonne treated | 22.92 |
Other Parameters | | |
Royalties | % | 3.0 |
MSO optimising cut-off | g/t | 3.15-4.0(1) |
Mineral Resource cut-off grade | g/t | 3.15-4.0(1) |
Mineral Resource price | $/oz | 1,500 | |
Metallurgical Recovery Factor | %MetRF | 87 |
(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
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 2021 | Obuasi |
Category | Proven | Probable | Total |
Previous Year | — | | 8.733 | | 8.733 | |
Depletion | — | | (0.086) | | (0.086) | |
Exploration | — | | — | | — | |
Methodology | 1.186 | | 0.010 | | 1.196 | |
Price | — | | — | | — | |
Cost | — | | — | | — | |
Geotechnical | — | | — | | — | |
Metallurgical | — | | — | | — | |
Operational | — | | (1.580) | | (1.580) | |
Acquisition / Disposal | — | | — | | — | |
Other | — | | — | | — | |
Current Year | 1.186 | | 7.078 | | 8.263 | |
Net Difference | 1.186 | | (1.655) | | (0.470) | |
% Difference | 100 | | (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 2021 | Obuasi |
Primary Commodity Price | $/oz | 1200 |
| | |
| | |
| | |
Cut-off grade | g/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/t | 100 |
Mine Call Factor | %MCF | 100 |
Metallurgical Recovery Factor | %MetRF | 87 |
(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.
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.
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.
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
| | | | | | | | | | | | | | | | | |
Siguiri | Qualified Person | Professional Organisation | Membership number | Relevant Years Experience | Qualification |
Mineral Resource | Adama Sissoko | AusIMM | 224835 | 28 years | BSc Hons (Geology), GDE (Mining Engineering) |
Mineral Reserve | Desiderius Kamugisha | AusIMM | 227181 | 20 years | BSc (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 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
| | | | | | | | |
Siguiri | Unit | Open 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 treated | 7.28 |
Rehandling Cost | $/tonne treated | 0.35-11.43(1) |
Other Parameters | | |
Metallurgical Recovery Factor | %MetRF | 80.5-88.0(1) |
Slope angles | degree | 25-55(1) |
Mineral Resource cut-off grade | g/t | 0.4-0.6(1) |
Mineral Resource price | $/oz | 1,500 | |
(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 2021 | Siguiri |
Category | Proven | Probable | Total |
Previous Year | 0.352 | | 1.540 | | 1.892 | |
Depletion | 0.013 | | (0.293) | | (0.280) | |
Exploration | — | | 0.085 | | 0.085 | |
Methodology | — | | 0.276 | | 0.276 | |
| | | | | | | | | | | |
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 Year | 0.365 | | 1.276 | | 1.641 | |
Net Difference | 0.013 | | (0.264) | | (0.251) | |
% Difference | 4 | | (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 2021 | Siguiri | Oxide | Transitional | Sulphide | Stockpile |
Primary Commodity Price | $/oz | 1200 | 1200 | 1200 | 1200 |
| | | | | |
| | | | | |
| | | | | |
Cut-off grade | g/t | 0.65-1.0 | 0.8-1.2 | 0.8-1.2 | - |
| | | | | |
| | | | | |
Dilution | % | 16.7-81.5 | 21.2-50.9 | 33.7-37.3 | - |
Dilution | g/t | 0.15-0.30 | 0.23-0.44 | 0.23-0.46 | - |
Resource Modification Factor | %RMF based on tonnes | 100 | 100 | 100 | 100 |
Resource Modification Factor | %RMF based on g/t | 90 | 90 | 90 | 100 |
Mining Recovery Factor | %MRF based on tonnes | 78.1-89.5 | 70.3-88.4 | 96.1-98.0 | 100 |
Mining Recovery Factor | %MRF based on g/t | 98.0-104.6 | 101.5-103.8 | 100.7-101.7 | 100 |
Mine Call Factor | %MCF | 100 | 100 | 100 | 100 |
Metallurgical Recovery Factor | %MetRF | 88 | 80 | 80 | 85-88 |
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.
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.
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.
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
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
| | | | | | | | | | | | | | | | | |
Geita | Qualified Person | Professional Organisation | Membership number | Relevant Years Experience | Qualification |
Mineral Resource | Damon Elder | AusIMM | 208240 | 25 years | BSc Hons (Geology) |
Mineral Reserve | Duan Campbell | ECSA | 202101953 | 19 years | BEng (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
| | | | | | | | |
Geita | Unit | Open Pit |
Costs | | |
Ore mining cost | $/tonne mined | 2.96 |
Waste mining cost | $/tonne mined | 2.89 |
Material handling | $/tonne mined | 3.18 |
Processing cost | $/tonne treated | 16.9 |
G&A | $/tonne treated | 9.92 |
Other Parameters | | |
Metallurgical Recovery Factor | %MetRF | 92 |
Slope angles | degree | 55 |
Mineral Resource cut-off grade | g/t | 0.8 |
Mineral Resource price | $/oz | 1,500 | |
Royalties | % | 7.3 | |
| | | | | | | | |
Geita | Unit | Underground |
Costs | | |
Production (Mining cost) | $/tonne ore mined | 28.50-80.93(1) |
Mine Services | $/tonne ore mined | 19.51 | |
Processing cost | $/tonne treated | 17.81-18.74(2) |
Other Parameters | | |
Mineral Resource cut-off grade | g/t | 1.69-2.94(2) |
Mineral Resource price | $/oz | 1,500 | |
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 2021 | Geita |
Category | Proven | Probable | Total |
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 | |
| | | | | | | | | | | |
Operational | — | | 0.245 | | 0.245 | |
Acquisition / Disposal | — | | — | | — | |
Other | 0.091 | | (0.184) | | (0.093) | |
Current Year | 0.091 | | 2.554 | | 2.646 | |
Net Difference | 0.091 | | 0.218 | | 0.309 | |
% Difference | 100 | | 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 2021 | Geita |
Primary Commodity Price | $/oz | 1200 |
| | |
| | |
| | |
Cut-off grade | g/t | 1.20(2)-3.48(3) |
| | |
Stoping width | cm | 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 | %MCF | 99 |
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
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.
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
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
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 Vanguardia | Qualified Person | Professional Organisation | Membership number | Relevant Years Experience | Qualification |
Mineral Resource | Juan Paredes | AusIMM | 227738 | 25 years | PhD (Geology) |
Mineral Reserve | Martin Cesca | AusIMM | 333864 | 8 years | 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 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 Vanguardia | Unit | Open Pit |
Costs | | |
Ore mining cost | $/tonne mined | 13.08 |
Waste mining cost | $/tonne mined | 3.31 |
Processing cost | $/tonne treated | 42.34 |
G&A | $/tonne treated | 11.79 |
Other Parameters | | |
| | | | | | | | |
Metallurgical Recovery Factor Au | %MetRF | 94.1 |
Metallurgical Recovery Factor Ag | %MetRF | 79.8 |
Slope angles | degree | 57 |
Mineral Resource cut-off grade | g/t | 0.96 |
Mineral Resource price | $/oz | 1,500 | |
| | | | | | | | |
Cerro Vanguardia | Unit | Underground |
Costs | | |
Lateral development (average) | $/m | 8,096 | |
Mine Services | $/tonne ore mined | 8.50 | |
Processing cost | $/tonne treated | 42.34 | |
Other Parameters | | |
MSO optimising cut-off | g/t | 5.08 | |
Mineral Resource cut-off grade | g/t | 5.08 | |
Mineral Resource price | $/oz | 1,500 | |
Metallurgical Recovery Factor | %MetRF | 94.0 |
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 2021 | Cerro Vanguardia |
Category | Proven | Probable | Total |
Previous Year | 0.229 | | 0.525 | | 0.755 | |
Depletion | (0.055) | | (0.111) | | (0.166) | |
Exploration | 0.008 | | — | | 0.008 | |
Methodology | 0.059 | | 0.034 | | 0.093 | |
Price | 0.060 | | 0.138 | | 0.199 | |
Cost | (0.016) | | (0.021) | | (0.037) | |
Geotechnical | (0.008) | | (0.018) | | (0.026) | |
| | | | | | | | | | | |
Metallurgical | (0.003) | | (0.005) | | (0.008) | |
Operational | — | | — | | — | |
Acquisition / Disposal | — | | — | | — | |
Other | — | | — | | — | |
Current Year | 0.274 | | 0.543 | | 0.817 | |
Net Difference | 0.045 | | 0.017 | | 0.063 | |
% Difference | 20 | | 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 2021 | Cerro Vanguardia |
Primary Commodity Price | $/oz | 1200 |
| | |
Exchange Rate | $/ARS | 112.04 |
| | |
Cut-off grade | g/t | 0.32-0.43(3); 3.25(1); 6.37(2) |
| | |
| | |
Dilution | % | 35(1)(3); 54(2) |
| | |
| | |
| | |
Mining Recovery Factor | %MRF based on tonnes | 97 |
Mining Recovery Factor | %MRF based on g/t | 96(2); 96.5(1)(3) |
Mine Call Factor | %MCF | 94 |
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.
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
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
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
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 Sítio | Qualified Person | Professional Organisation | Membership number | Relevant Years Experience | Qualification |
Mineral Resource | Marcelo Martins de Souza Vieira | AusIMM | 337974 | 10 years | BSc (Geological Engineering), MSc (Mining Engineering), MBA |
Mineral Reserve | Sergio Alfonso Navarrete Letelier | AusIMM | 334556 | 38 years | BSc (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 Sítio | Unit | Underground |
Costs | | |
Lateral development (average) | $/m | 2,464 | |
Vertical development (average) | $/m | 1,896 | |
Production | $/tonne ore mined | 65.72 | |
Mine Services | $/tonne ore mined | 6.22 | |
Processing cost | $/tonne treated | 38.27 | |
Other Parameters | | |
MSO optimising cut-off | g/t | 1.58 |
Mineral Resource cut-off grade | g/t | 1.58 |
| | | | | | | | |
Mineral Resource price | BRL/oz | 7,940 | |
Metallurgical Recovery Factor | %MetRF | 90.7 |
| | | | | | | | |
Córrego do Sítio | Unit | Open Pit |
Costs | | |
Ore mining cost | $/tonne mined | 2.62-3.79(1) |
Waste mining cost | $/tonne mined | 2.34 |
Processing cost | $/tonne treated | 8.59 |
G&A | $/tonne treated | 2.25 |
Other Parameters | | |
Metallurgical Recovery Factor | %MetRF | 70.16-90.7(1) |
Slope angles | degree | 47-64(1) |
Mineral Resource cut-off grade | g/t | 0.33-1.06(1) |
Mineral Resource price | BRL/oz | 7,940 | |
(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 2021 | AGA Mineração - Córrego do Sítio |
Category | Proven | Probable | Total |
Previous Year | 0.070 | | 0.327 | | 0.397 | |
Depletion | (0.046) | | (0.045) | | (0.090) | |
Exploration | 0.064 | | 0.113 | | 0.178 | |
Methodology | — | | — | | — | |
Price | — | | — | | — | |
Cost | (0.036) | | (0.086) | | (0.121) | |
Geotechnical | 0.001 | | (0.016) | | (0.016) | |
Metallurgical | (0.003) | | (0.006) | | (0.010) | |
Operational | — | | (0.001) | | (0.001) | |
Acquisition / Disposal | — | | — | | — | |
Other | 0.019 | | 0.021 | | 0.040 | |
Current Year | 0.070 | | 0.308 | | 0.378 | |
Net Difference | (0.001) | | (0.019) | | (0.020) | |
% Difference | (1) | | (6) | | (5) | |
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 2021 | Córrego do Sítio | Open pit and Stockpiles | Underground |
Primary Commodity Price | BRL/oz | 6,182 | | 6,182 | |
| | | |
| | | |
| | | |
Cut-off grade | g/t | 0.43-1.36(1) | 3.29 |
| | | |
Stoping width | cm | - | 229.8-380.3(1) |
Dilution | % | 0 | 19.9-28.3(1) |
| | | |
Resource Modification Factor | %RMF based on tonnes | 100 | 100 |
Resource Modification Factor | %RMF based on g/t | 100 | 100 |
Mining Recovery Factor | %MRF based on tonnes | 100 | 90 |
Mining Recovery Factor | %MRF based on g/t | 100 | 100 |
Mine Call Factor | %MCF | 100 | 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.
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 |
| | 125 |
|
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.
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
| | | | | | | | | | | | | | | | | |
Cuiabá | Qualified Person | Professional Organisation | Membership number | Relevant Years Experience | Qualification |
Mineral Resource | Henrique Vigario | AusIMM | 329310 | 15 years | BSc (Geology), Postgraduate Certificate (Geostatistics) |
Mineral Reserve | Felipe Lima | AusIMM | 336176 | 16 years | BSc (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
| | | | | | | | | | | |
Cuiabá | Unit | Sublevel | Cut and fill |
Costs | | | |
Lateral development (average) | $/m | 5,194 | | 5,194 | |
Vertical development (average) | $/m | 3,471 | | 3,471 | |
Production | $/tonne ore mined | 27.31 | | 38.03 | |
Material handling | $/tonne ore mined | 76.09 | | 41.96 | |
Mine Services | $/tonne ore mined | 26.84 | | 38.76 | |
Processing cost | $/tonne treated | 19.60 | | 20.13 | |
Other Parameters | | | |
MSO optimising cut-off | g/t | 1.68 | | 2.57 | |
Mineral Resource cut-off grade | g/t | 1.68 | | 2.57 | |
Mineral Resource price | BRL/oz | 7,940 | | 7,940 | |
Metallurgical Recovery Factor | %MetRF | 93.5 | 93.5 |
| | | | | | | | |
Cuiabá | Unit | Open Pit |
Costs | | |
Ore mining cost | $/tonne mined | 1.28 |
Waste mining cost | $/tonne mined | 1.28 |
Processing cost | $/tonne treated | 17.68 |
G&A | $/tonne treated | 1.07 |
Other Parameters | | |
| | | | | | | | |
Metallurgical Recovery Factor | %MetRF | 93.5 |
Slope angles | degree | 20 |
Mineral Resource cut-off grade | g/t | 0.66 |
Mineral Resource price | BRL/oz | 7,940 | |
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 2021 | AGA Mineração - Cuiabá |
Category | Proven | Probable | Total |
Previous Year | 0.273 | | 0.944 | | 1.216 | |
Depletion | (0.084) | | (0.101) | | (0.184) | |
Exploration | 0.005 | | 0.101 | | 0.106 | |
Methodology | 0.038 | | (0.032) | | 0.006 | |
Price | — | | — | | — | |
Cost | (0.003) | | (0.018) | | (0.020) | |
Geotechnical | — | | — | | — | |
Metallurgical | — | | — | | — | |
Operational | 0.082 | | (0.015) | | 0.067 | |
Acquisition / Disposal | — | | — | | — | |
Other | (0.001) | | (0.001) | | (0.002) | |
Current Year | 0.311 | | 0.878 | | 1.189 | |
Net Difference | 0.038 | | (0.066) | | (0.028) | |
% Difference | 14 | | (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 2021 | Cuiabá |
Primary Commodity Price | BRL/oz | 6,182 | |
| | |
| | |
| | |
Cut-off grade | g/t | 4.73 |
| | |
Stoping width | cm | 400 |
Dilution | % | 24.1-34(1) |
| | |
| | |
| | |
| | | | | | | | |
Mining Recovery Factor | %MRF based on tonnes | 83.5-92.1(1) |
| | |
Mine Call Factor | %MCF | 95.3 |
Metallurgical Recovery Factor | %MetRF | 93.5 |
(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.
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.
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
| | | | | | | | | | | | | | | | | |
Lamego | Qualified Person | Professional Organisation | Membership number | Relevant Years Experience | Qualification |
Mineral Resource | Henrique Vigario | AusIMM | 329310 | 15 years | BSc (Geology), Postgraduate Certificate (Geostatistics) |
Mineral Reserve | Rodolfo Reis | AusIMM | 323402 | 10 years | MEng (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
| | | | | | | | | | | |
Lamego | Unit | Sublevel | Cut and fill |
Costs | | | |
Lateral development (average) | $/m | 3,175 | | 3,264 | |
Production | $/tonne ore mined | 12.94 | | 15.86 | |
Material handling | $/tonne ore mined | 13.58 | | 64.43 | |
Processing cost | $/tonne treated | 20.09 | | 19.75 | |
Exploration capitalised | $/tonne ore mined | 6.67 | | 6.49 | |
Other Parameters | | | |
MSO optimising cut-off | g/t | 1.06 | | 1.66 | |
Mineral Resource cut-off grade | g/t | 1.06 | | 1.66 | |
Mineral Resource price | BRL/oz | 7,940 | | 7,940 | |
Metallurgical Recovery Factor | %MetRF | 93.5 | 93.5 |
| | | | | | | | |
Lamego | Unit | Open Pit |
Costs | | |
Ore mining cost | $/tonne mined | 1.19 |
| | | | | | | | |
Waste mining cost | $/tonne mined | 1.05 |
Processing cost | $/tonne treated | 10.84 |
G&A | $/tonne treated | 2.00 | |
Other Parameters | | |
Metallurgical Recovery Factor | %MetRF | 93.5 |
Slope angles | degree | 40-50(1) |
Mineral Resource cut-off grade | g/t | 0.39 |
Mineral Resource price | BRL/oz | 7,940 | |
(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 2021 | AGA Mineração - Lamego |
Category | Proven | Probable | Total |
Previous Year | 0.029 | | 0.091 | | 0.120 | |
Depletion | (0.010) | | (0.025) | | (0.035) | |
Exploration | — | | 0.038 | | 0.038 | |
Methodology | 0.018 | | (0.014) | | 0.004 | |
Price | — | | — | | — | |
Cost | (0.002) | | (0.003) | | (0.004) | |
Geotechnical | (0.001) | | (0.001) | | (0.002) | |
Metallurgical | — | | — | | — | |
Operational | 0.004 | | (0.003) | | 0.001 | |
Acquisition / Disposal | — | | — | | — | |
Other | — | | 0.001 | | — | |
Current Year | 0.037 | | 0.084 | | 0.122 | |
Net Difference | 0.008 | | (0.007) | | 0.002 | |
% Difference | 28 | | (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 2021 | Lamego |
Primary Commodity Price | BRL/oz | 6,182 | |
| | |
| | |
| | |
Cut-off grade | g/t | 2.97 |
| | |
Stoping width | cm | 500 |
Dilution | % | 15 |
| | |
| | |
| | |
Mining Recovery Factor | %MRF based on tonnes | 90 |
| | |
Mine Call Factor | %MCF | 94.5 |
Metallurgical Recovery Factor | %MetRF | 93.5 |
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.
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
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 Grande | Qualified Person | Professional Organisation | Membership number | Relevant Years Experience | Qualification |
Mineral Resource | Marcelo Campos | AusIMM | 328667 | 16 years | MSc, MBA, BA (Geology) |
Mineral Reserve | Thiago Teixeira | AusIMM | 336093 | 12 years | BEng, 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 Grande | Unit | Underground Mineral Resource (excluding Mina Nova) | Underground Mineral Resource Mina Nova |
Costs | | | |
Lateral development (average) | $/m | 17.47 | | 17.47 | |
Vertical development (average) | $/m | 26.97 | | 26.97 | |
Production | $/tonne ore mined | 41.28 | | 41.28 | |
Mine Services | $/tonne ore mined | 16.54 | | 16.54 | |
Processing cost | $/tonne treated | 8.96 | | 8.96 | |
Other Parameters | | | |
MSO optimising cut-off | g/t | 1.08 | | 1.08 | |
Mineral Resource cut-off grade | g/t | 1.08 | | 1.08 | |
Mineral Resource price | BRL/oz | 7,935 | | 7,935 | |
Metallurgical Recovery Factor | %MetRF | 93 | 93 |
| | | | | | | | |
Serra Grande | Unit | Open Pit |
Costs | | |
Ore mining cost | $/tonne mined | 3.15 | |
Waste mining cost | $/tonne mined | 2.38 | |
Processing cost | $/tonne treated | 10.71 | |
Other Parameters | | |
Metallurgical Recovery Factor | %MetRF | 92 |
Slope angles | degree | 45-59(1) |
Mineral Resource cut-off grade | g/t | 0.4 |
Mineral Resource price | BRL/oz | 7,935 | |
(1) Vary according to rock type / area |
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 2021 | Serra Grande |
Category | Proven | Probable | Total |
Previous Year | 0.240 | | 0.387 | | 0.627 | |
Depletion | (0.027) | | (0.052) | | (0.079) | |
Exploration | 0.004 | | 0.020 | | 0.024 | |
Methodology | 0.027 | | (0.047) | | (0.020) | |
Price | — | | — | | — | |
Cost | 0.012 | | (0.036) | | (0.024) | |
Geotechnical | 0.001 | | (0.001) | | — | |
Metallurgical | — | | — | | — | |
Operational | 0.015 | | 0.012 | | 0.027 | |
Acquisition / Disposal | — | | — | | — | |
Other | — | | — | | — | |
Current Year | 0.271 | | 0.283 | | 0.554 | |
Net Difference | 0.032 | | (0.104) | | (0.072) | |
% Difference | 13 | | (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 2021 | Serra Grande |
Primary Commodity Price | $/oz | 1200 |
| | |
Exchange Rate | $/BRL | 5.15 |
| | |
Cut-off grade | g/t | 0.41(1); 2.0(2) |
| | |
Stoping width | cm | 180-400(2) |
Dilution | % | 17.5(1); 12.5-21(2) |
| | |
Resource Modification Factor | %RMF based on tonnes | 100 |
Resource Modification Factor | %RMF based on g/t | 100 |
Mining Recovery Factor | %MRF based on tonnes | 86-95(2); 100(1) |
Mining Recovery Factor | %MRF based on g/t | 100 |
Mine Call Factor | %MCF | 95 |
Metallurgical Recovery Factor | %MetRF | 93 |
(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.
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.
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.
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
| | | | | | | | | | | | | | | | | |
Silicon | Qualified Person | Professional Organisation | Membership number | Relevant Years Experience | Qualification |
Mineral Resource | Derek Nicholson | AusIMM | 306185 | 19 years | BSc (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.
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
| | | | | | | | |
Silicon | Unit | Open Pit |
Costs | | |
Ore mining cost | $/tonne mined | 2.03 | |
Waste mining cost | $/tonne mined | 2.03 | |
Processing cost | $/tonne treated | 3.82 | |
Closure cost | $/tonne treated | 0.12 | |
Rehandling cost | $/tonne treated | 0.80 | |
Fixed cost | $/tonne treated | 0.38 | |
G&A | $/tonne treated | 0.50 | |
Other Parameters | | |
Metallurgical Recovery Factor | %MetRF | 56-82(1) |
Slope angles | degree | 43-54(1) |
Mineral Resource cut-off grade | g/t | 0.14-0.21(1) |
Mineral Resource price | $/oz | 1,500 | |
(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.
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.
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.
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).
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
| | | | | | | | | | | | | | | | | |
Gramalote | Qualified Person | Professional Organisation | Membership number | Relevant Years Experience | Qualification |
Mineral Resource | Tom Gell | AusIMM | 211795 | 30 years | BSc (Geology), BSc Hons (Geology) |
Mineral Reserve | Romulo Sanhueza | AusIMM | 211794 | 24 years | BSc 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
| | | | | | | | |
Gramalote | Unit | Open Pit |
Costs | | |
Ore mining cost | $/tonne mined | 2.55 |
Waste mining cost | $/tonne mined | 1.79 |
Processing cost | $/tonne treated | 5.85 |
G&A | $/tonne treated | 2.58 |
Other Parameters | | |
Metallurgical Recovery Factor | %MetRF | 82-95(1) |
Slope angles | degree | 27.4-57.6(1) |
Mineral Resource cut-off grade | g/t | 0.13-0.17(1) |
Mineral Resource price | $/oz | 1,400 | |
(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). |
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 2021 | Gramalote |
Category | Proven | Probable | Total |
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
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.
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
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 Colosa | Qualified Person | Professional Organisation | Membership number | Relevant Years Experience | Qualification |
Mineral Resource | Rudolf Jahoda | AusIMM | 990544 | 28 years | MSc (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.
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 Colosa | Unit | Open Pit |
Costs | | |
Ore mining cost | $/tonne mined | 2.1 |
Waste mining cost | $/tonne mined | 2.3 |
Processing cost | $/tonne treated | 8.98 |
G&A | $/tonne treated | 1.74 |
Other Parameters | | |
Metallurgical Recovery Factor | %MetRF | 82.2-87.3(1) |
Slope angles - Hangingwall | degree | 34-50(1) |
Mineral Resource cut-off grade | g/t | 0.35 |
Mineral Resource price | $/oz | 1,400 | |
(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.
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.
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).
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
| | | | | | | | | | | | | | | | | |
Quebradona | Qualified Person | Professional Organisation | Membership number | Relevant Years Experience | Qualification |
Mineral Resource | Pablo Luis Noriega | AusIMM | 315688 | 23 years | BSc Hons (Geology) |
Mineral Reserve | Andrew McCauley | AusIMM | 223692 | 17 years | Graduate 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:
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| |
Units |
(3 year average) |
| | (Ore Reserve) |
| | (3 year average) |
| |
Ore Reserve Gold Price | 1,258 |
| | 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 Price | 2.66 | | 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 - unit | Cu $/lb | Au $/oz | Ag $/0z | Mo $/lb |
Commodity prices - value | 3.50 | $ | 1,500 | | 25.15 | 12 |
Metallurgical Recoveries - unit | Cu % | Au % | Ag % | Mo % |
Metallurgical Recoveries - value | 93.6 | 58.6 | 83.65 | 34.1 |
| | | | |
Parameter | | | | |
Costs - unit | Costs - value | | | |
Mining cost $/t | 8.32 | | | |
Processing cost $/t | 11.98 | | | |
G&A (owner cost) $/t | 3.03 | | | |
TSF $/t | 2.27 | | | |
Closure $/t | 0.3 | | | |
Environmental compensation $/t | 0.11 | | | |
Environmental compensation general $/t | 0.06 | | | |
Exploration cost $/t | 0.11 | | | |
Social payment $/t | 0.46 | | | |
Severance payment $/t | 0.26 | | | |
Total for break even cut-off $/t | 26.9 | | | |
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 2021 | Quebradona - copper (Mlb) | Quebradona - gold (Moz) |
Category | Proven | Probable | Total | Proven | Probable | Total |
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 2021 | Quebradona |
Primary Commodity Price(1) | $/lb | 2.90 |
Exchange Rate | $/COP | 3,208 | |
Cut-off grade | NSR$/t(2) | 30 |
Percentage Tonnes Dilution | % | 4.14 |
Cu dilution | % | 0.34 |
Au dilution | (g/t) | 0.23 |
Ag dilution | (g/t) | 2.13 |
| | | | | | | | |
Cu Mine Call Factor | % MCF | 100 |
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.
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.
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.
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 Dam | Qualified Person | Professional Organisation | Membership number | Relevant Years Experience | Qualification |
Mineral Resource | David Perkin | AusIMM | 326239 | 13 years | BSc Hons (Geology), MSc (Geology), Postgraduate Certificate (Geostatistics) |
Mineral Reserve (underground) | Cailli Knievel | AusIMM | 205388 | 25 years | BEng (Mining Engineering) |
Mineral Reserve (surface) | Joanne Endersbee | AusIMM | 334537 | 12 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 Dam | Unit | Open Pit |
Costs | | |
Ore mining cost | $/tonne mined | 3.25 | |
Waste mining cost | $/tonne mined | 1.04 | |
Processing cost | $/tonne treated | 19.23 | |
G&A | $/tonne treated | 3.84 | |
Other Parameters | | |
Metallurgical Recovery Factor | %MetRF | 92 |
Slope angles | degree | 28-59(1) |
Mineral Resource cut-off grade | g/t | 0.5 |
Mineral Resource price | AUD/oz | 2,072 | |
(1) Vary according to rock type |
| | | | | | | | |
Sunrise Dam | Unit | Underground |
Costs | | |
Lateral development (average) | $/tonne ore mined | 10.97 | |
Vertical development (average) | $/tonne ore mined | 2.40 | |
Production | $/tonne ore mined | 18.39 | |
Material handling | $/tonne ore mined | 9.36 | |
| | | | | | | | |
Mine Services | $/tonne ore mined | 3.79 | |
Processing cost | $/tonne treated | 19.23 | |
Other Parameters | | |
MSO optimising cut-off | g/t | 1.65 | |
Mineral Resource cut-off grade | g/t | 1.10 | |
Mineral Resource price | AUD/oz | 2,072 | |
Metallurgical Recovery Factor | %MetRF | 83.4 |
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 2021 | Sunrise Dam |
Category | Proven | Probable | Total |
Previous Year | 0.543 | | 0.607 | | 1.150 | |
Depletion | (0.139) | | (0.104) | | (0.243) | |
Exploration | 0.166 | | 0.257 | | 0.423 | |
Methodology | 0.236 | | 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) | |
Operational | 0.006 | | 0.019 | | 0.025 | |
Acquisition / Disposal | — | | — | | — | |
Other | — | | — | | — | |
Current Year | 0.588 | | 0.718 | | 1.307 | |
Net Difference | 0.046 | | 0.111 | | 0.156 | |
% Difference | 8 | | 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.
Material Assumptions for the Mineral Reserve
Modifying factors and price estimates
| | | | | | | | |
as at 31 December 2021 | Sunrise Dam |
Primary Commodity Price(1) | $/oz | 1200 |
| | |
Exchange Rate | AUD/$ | 0.74 |
| | |
Cut-off grade | g/t | 0.75(2); 1.65(3)(4) |
| | |
Stoping width | cm | 1080(3) |
Dilution | % | 5.6(3) |
Dilution | g/t | 0.7(3) |
Resource Modification Factor | %RMF based on tonnes | 100 |
Resource Modification Factor | %RMF based on g/t | 100 |
Mining Recovery Factor | %MRF based on tonnes | 100 |
Mining Recovery Factor | %MRF based on g/t | 100 |
Mine Call Factor | %MCF | 100 |
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.
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.
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
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 Well | Qualified Person | Professional Organisation | Membership number | Relevant Years Experience | Qualification |
Mineral Resource | Mark Kent | AusIMM | 203631 | 24 years | BSc 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 Well | Unit | Open Pit |
Costs | | |
Ore mining cost | AUD/tonne mined | 16.54 |
Waste mining cost | AUD/tonne mined | 3.13 |
Processing cost | AUD/tonne treated | 26.85 |
G&A | AUD/tonne treated | 6.16 |
Other Parameters | | |
Metallurgical Recovery Factor | %MetRF | 79.0 |
Slope angles | degree | 35 - 53(1) |
Mineral Resource cut-off grade | g/t | 0.7 |
Mineral Resource price | AUD/oz | 2,072 | |
(1) Vary according to rock type |
| | | | | | | | |
Butcher Well | Unit | Underground |
Costs | | |
Lateral development (average) | AUD/tonne ore mined | 35.46 |
Vertical development (average) | AUD/tonne ore mined | 35.46 |
Production | AUD/tonne ore mined | 58.03 |
Material handling | AUD/tonne ore mined | 19.4 |
Backfill / Others | AUD/tonne ore mined | 2.4 |
Processing cost | AUD/tonne treated | 8.5 |
Other Parameters | | |
MSO optimising cut-off | g/t | 2.1 |
Mineral Resource cut-off grade | g/t | 2.1 |
| | | | | | | | |
Mineral Resource price | AUD/oz | 2,072 | |
Metallurgical Recovery Factor | %MetRF | 79.0 |
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.
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.
Qualified Persons
| | | | | | | | | | | | | | | | | |
Tropicana | Qualified Person | Professional Organisation | Membership number | Relevant Years Experience | Qualification |
Mineral Resource | Fraser Clark | AusIMM | 226390 | 20 years | BSc Hons (Geology), Postgraduate Certificate (Geostatistics) |
Mineral Reserve (surface) | Joanne Endersbee | AusIMM | 334537 | 12 years | — |
Mineral Reserve (underground) | Glen Reitsema | AusIMM | 228391 | 8 years | BCom, 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
| | | | | | | | |
Tropicana | Unit | Open Pit |
Costs | | |
Ore mining cost | AUD/tonne mined | 4.96 |
Waste mining cost | AUD/tonne mined | 3.73 |
Processing cost | AUD/tonne treated | 20.42 |
G&A | AUD/tonne treated | 3.11 |
Other Parameters | | |
Metallurgical Recovery Factor | %MetRF | 89.5 |
Slope angles - Hangingwall | degree | 60 |
Slope angles - Footwall | degree | 45 |
Mineral Resource cut-off grade | g/t | 0.4 |
Mineral Resource price | AUD/oz | 2,072 | |
The open pit ore mining cost includes the over-haul from the plant. The processing cost includes an allowance for stay in business capital.
| | | | | | | | |
Tropicana | Unit | Underground |
Costs | | |
Lateral development (average) | AUD/tonne ore mined | 12.84 |
Vertical development (average) | AUD/tonne ore mined | 0.27 |
Production | AUD/tonne ore mined | 14.35 |
Material handling | AUD/tonne ore mined | 12.02 |
Backfill / Others | AUD/tonne ore mined | 37.65 |
Mine Services | AUD/tonne ore mined | 1.99 |
Processing cost | AUD/tonne treated | 20.42 |
Other Parameters | | |
MSO optimising cut-off | g/t | 1.7 |
Mineral Resource cut-off grade | g/t | 1.7 |
Mineral Resource price | AUD/oz | 2,072 | |
Metallurgical Recovery Factor | %MetRF | 89.1 |
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 2021 | Tropicana |
Category | Proven | Probable | Total |
Previous Year | 0.552 | | 1.334 | | 1.886 | |
Depletion | (0.190) | | (0.091) | | (0.281) | |
Exploration | 0.141 | | (0.042) | | 0.098 | |
Methodology | 0.158 | | (0.166) | | (0.008) | |
Price | 0.001 | | 0.110 | | 0.111 | |
Cost | 0.003 | | (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 Year | 0.647 | | 1.019 | | 1.667 | |
Net Difference | 0.096 | | (0.315) | | (0.219) | |
% Difference | 17 | | (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 2021 | Tropicana |
Primary Commodity Price | AUD/oz | 1633 |
| | |
| | |
ORE RESERVE | | Moz |
Ore Reserve as at 31 December 2017 | 49.6 |
Disposals | Moab Khotsong | -4.8 |
| Kopanang | -0.3 |
| Vaal River Surface | -0.9 |
| Sub Total | 43.6 |
Depletions | | -3.6 |
| Sub Total | 40 |
Additions | | |
Quebradona | Initial Ore Reserve publication post successful conclusion of the prefeasibility study | 2.2 |
Geita | Additions are primarily due to exploration success on underground targets at Star and Comet and Nyankanga | 0.5 |
CVSA | Reduced cost and exploration success led to the additions | 0.4 |
Sunrise Dam | The increase is due to exploration success | 0.3 |
Other | Additions less than 0.3Moz. | 1.0 |
| Sub Total | 44.4 |
Reductions | | |
Other | Reductions less than 0.3Moz. | -0.3 |
Ore Reserve as at 31 December 2018 | 44.1 |
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 - COPPER | Mt | Mlb |
Ore Reserve as at 31 December 2017 | 0.00 | 0 |
Additions | | | |
Quebradona | Exploration success and completion of the prefeasibility study | 1.26 | 2,769 |
Ore Reserve as at 31 December 2018 | 1.26 | 2,769 |
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: Imperial | At 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 | | | | | | | | | | | | | | | |
Iduapriem | 3.02 |
| | 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 | | | | |
Total | 199.80 |
| | 0.025 |
| | 4.97 |
| | 1057.65 |
| | 0.037 |
| | 39.12 |
| | | | |
Copper
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ore Reserve: Imperial | At 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
|
| | | | | | | | |
Mine | Tons (millions) | | Grade (ounces/ton) | | Gold Content (million ounces) |
Mponeng | 30.27 | | | 0.28 | | | 8.53 | |
Obuasi | 1.87 | | | 0.60 | | | 1.13 | |
Sunrise Dam | 1.42 | | | 0.11 | | | 0.16 | |
Tropicana | 2.08 | | | 0.11 | | | 0.22 | |
AGA Mineração | 7.42 | | | 0.16 | | | 1.18 | |
Serra Grande | 1.75 | | | 0.11 | | | 0.20 | |
Quebradona | 114.69 | | | 0.02 | | | 2.22 | |
Total | 159.50 | | | 0.09 | | | 13.64 | |
Copper
|
| | | | | | | | |
Mine | Tons (millions) | | Grade (%) | | Copper Content (million pounds) |
Quebradona | 114.69 | | | 1.21 | | | 2,769 | |
Total | 114.69 | | | 1.21 | | | 2,769 | |
The Ore Reserve has been determined based on completed economic studies.
Gold
|
| | | | | | | | | | | | | | | | | | | | | | | | | |
Ore Reserve: Imperial | At 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) | | | | | | | | | | | | | | | |
Kopanang | 1.10 |
| | 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 | | | | | | | | | | | | | | | |
Iduapriem | 3.25 |
| | 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 Dam | 12.00 |
| | 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) |
Total | 219.72 |
| | 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:
|
| | | | | | | | |
Mine | Tons (millions) |
| | Grade (ounces/ton) |
| | Gold Content (million ounces) |
|
Moab Khotsong | 14.47 |
| | 0.24 |
| | 3.48 |
|
Mponeng | 31.04 |
| | 0.27 |
| | 8.50 |
|
Obuasi | 1.87 |
| | 0.60 |
| | 1.13 |
|
AGA Mineração | 3.89 |
| | 0.16 |
| | 0.62 |
|
Serra Grande | 1.33 |
| | 0.10 |
| | 0.14 |
|
Total | 52.59 |
| | 0.26 |
| | 13.86 |
|
The Ore Reserve has been determined based on completed economic studies.
Gold
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Ore Reserve: Metric | At 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 | | | | | | | | | | | | | | | |
Iduapriem | 2.74 |
| | 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 |
| | | | |
Total | 181.26 |
| | 0.85 |
| | 154.60 |
| | 959.49 |
| | 1.27 |
| | 1,216.69 |
| | | | |
Copper
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ore Reserve: Metric | At 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
|
| | | | | | | | | | | |
Mine | Tons (millions) | | Grade (ounces/ton) | | Gold Content (tonnes) |
Mponeng | 27.46 |
| | | 9.66 |
| | | 265.29 |
| |
Obuasi | 1.70 |
| | | 20.68 |
| | | 35.15 |
| |
Sunrise Dam | 1.29 |
| | | 3.85 |
| | | 4.95 |
| |
Tropicana | 1.89 |
| | | 3.65 |
| | | 6.89 |
| |
AGA Mineração | 6.73 |
| | | 5.45 |
| | | 36.64 |
| |
Serra Grande | 1.59 |
| | | 3.94 |
| | | 6.28 |
| |
Quebradona | 104.05 |
| | | 0.66 |
| | | 69.12 |
| |
Total | 144.70 |
| | | 2.93 |
| | | 424.32 |
| |
Copper
|
| | | | | | | | | | |
Mine | Tons (millions) | | Grade (%) | | Copper Content (million tonnes) |
Quebradona | 104.05 |
| | | 1.21 | | | 1.26 |
| |
Total | 104.05 |
| | | 1.21 | | | 1.26 |
| |
The Ore Reserve has been determined based on completed economic studies.
Gold
|
| | | | | | | | | | | | | | | | | | | | | | | |
Ore Reserve: Metric | At 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) | | | | | | | | | | | | | | | |
Kopanang | 1.00 |
| | 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 | | | | | | | | | | | | | | | |
Iduapriem | 2.95 |
| | 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 Dam | 10.88 |
| | 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) |
|
Total | 199.32 |
| | 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:
|
| | | | | | | | |
Mine | Tonnes (millions) |
| | Grade (grams/tonne) |
| | Gold Content (tonnes) |
|
Moab Khotsong | 13.12 |
| | 8.24 |
| | 108.14 |
|
Mponeng | 28.16 |
| | 9.38 |
| | 264.25 |
|
Obuasi | 1.70 |
| | 20.68 |
| | 35.15 |
|
AGA Mineração | 3.53 |
| | 5.44 |
| | 19.20 |
|
Serra Grande | 1.20 |
| | 3.52 |
| | 4.24 |
|
Total | 47.71 |
| | 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:
|
| | | | | | | | |
Stockpiles | At 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 | | | | | |
Iduapriem | 16.42 |
| | 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 | | | | | |
Geita | 3.00 |
| | 0.038 |
| | 0.11 |
|
Australasia | | | | | |
Australia | | | | | |
Sunrise Dam | 10.66 |
| | 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:
|
| | | | | | | | |
Stockpiles | At 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 | | | | | |
Iduapriem | 12.88 |
| | 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 | | | | | |
Geita | 2.79 |
| | 0.041 |
| | 0.12 |
|
Australasia | | | | | |
Australia | | | | | |
Sunrise Dam | 12.00 |
| | 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 Grande | 0.03 |
| | 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:
|
| | | | | | | | |
Stockpiles | At 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 | | | | | |
Iduapriem | 14.89 |
| | 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 | | | | | |
Geita | 2.72 |
| | 1.29 |
| | 3.51 |
|
Australasia | | | | | |
Australia | | | | | |
Sunrise Dam | 9.67 |
| | 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:
|
| | | | | | | | |
Stockpiles | At 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 | | | | | |
Iduapriem | 11.68 |
| | 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 | | | | | |
Geita | 2.53 |
| | 1.42 |
| | 3.59 |
|
Australasia | | | | | |
Australia | | | | | |
Sunrise Dam | 10.88 |
| | 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 Grande | 0.02 |
| | 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 width | Drill Hole Spacing |
| Proven Ore Reserve | Probable Ore Reserve |
South Africa | | |
Underground sources | Ore 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 sourcesDilution | 164 x 164 feet to 1050 x 820 feet auger drilling, variable sampling strategies: belt samplers, cross stream residue samplers and bulk sampling campaigns | 328 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 | | |
Kibali | 16 x 33 feet, 49 x 66 feet | 131 x 131 feet |
Ghana | | |
Iduapriem | 66 x 49 feet | 164 x 246 feet |
Obuasi | None | 197 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 | | |
Morila | 33 x 16 feet, 164 x 328 feet | 33 x 66 feet |
Sadiola | 21 x 41 feet, 82 x 82 feet | 82 x 82 feet, 164 x 82 feet |
Tanzania | | |
Geita | None | 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 Dam | 33 x 33 feet, 82 x 82 feet | 131 x 66 feet, 131 x 131 feet |
Tropicana | 39 x 39 feet, 82 x 82 feet | 164 x 164 feet |
Americas | | |
Argentina | | |
Cerro Vanguardia | 20 x 66 feet, 39 x 16 feet | 131 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 Grande | 33 x 33 feet, 33 x 66 feet | 82 x 82 feet, 131 x 66 feet, 164 x 66 feet |
Colombia | | |
Gramalote | None | 164 x 164 feet |
Quebradona | None | 98 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 Factor | Drill Hole Spacing%RMF based on tonnes | 100 |
Resource Modification Factor | Proven Ore Reserve%RMF based on g/t | Probable Ore Reserve100 |
South AfricaMining Recovery Factor | | |
Underground sources | Ore 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 Factor | 50 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/t | 100 x 100 metre to 300 x 375 metre auger drilling, variable sampling strategies: belt samplers, cross stream residue samplers |
Continental AfricaMine Call Factor | %MCF | 100 |
Democratic Republic of the CongoMetallurgical Recovery Factor | | |
Kibali | 5 x 10 metre, 15 x 20 metre | 40 x 40 metre |
Ghana | | |
Iduapriem | 20 x 15 metre | 50 x 75 metre |
Obuasi | None | 60 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 | | |
Morila | 10 x 5 metre, 50 x 100 metre | 10 x 20 metre |
Sadiola | 6.25 x 12.5 metre, 25 x 25 metre | 25 x 25 metre, 50 x 25 metre |
Tanzania | | |
Geita | None | 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 Dam | 10 x 10 metre, 25 x 25 metre | 40 x 20 metre, 40 x 40 metre |
Tropicana | 12 x 12 metre, 25 x 25 metre | 50 x 50 metre |
Americas | | |
Argentina | | |
Cerro Vanguardia | 6 x 20 metre, 12 x 5 metre | 40 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 Grande | 10 x 10 metre, 10 x 20 metre | 25 x 25 metre, 40 x 20 metre,
50 x 20 metre
|
Colombia | | |
Gramalote | None | 50 x 50 metre |
Quebradona | None | 30 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.
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.
ITEM 4A: UNRESOLVED STAFF COMMENTS
Not applicable.
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.
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.
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.
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
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 dollar | 2021 | | 2020 | | 2019 |
Brazilian real | 5.40 | | | 5.15 | | | 3.94 | |
Australian dollar | 1.33 | | | 1.45 | | | 1.44 | |
Argentinean peso | 95.21 | | | 70.71 | | | 48.29 | |
|
| | | | | | | | |
Average annual exchange rates to the US dollar | 2018 |
| | 2017 |
| | 2016 |
|
South African rand | 13.25 |
| | 13.30 |
| | 14.68 |
|
Brazilian real | 3.66 |
| | 3.19 |
| | 3.48 |
|
Australian dollar | 1.34 |
| | 1.30 |
| | 1.35 |
|
Argentinian peso | 28.14 |
| | 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”.
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
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
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.
Comparison of financial performance in 2018, 20172021, 2020 and 20162019 | | | | | | | | | | | | | | | | | |
Financial performance of AngloGold Ashanti | Year ended 31 December |
(in $ millions) | 2021 | 2020 | | 2019 | |
Continuing operations | | | | | |
Revenue from product sales | 4,029 | | 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 period | 646 | 971 | | (7) | | |
| | | | | |
Net profit (loss) attributable to equity shareholders | | | | | |
- Continuing operations | 622 | | 946 | | | 364 | | |
- Discontinued operations | — | | 7 | | | (376) | | |
Net profit (loss) attributable to non-controlling interests | | | | | |
- Continuing operations | 24 | | 18 | | | 5 | | |
|
| | | | | | | | |
Financial performance of AngloGold Ashanti | Year ended 31 December |
(in $ millions) | 2018 |
| | 2017 |
| | 2016 |
|
Revenue from product sales | 3,943 |
| | 4,510 |
| | 4,223 |
|
Cost of sales | (3,173 | ) | | (3,736 | ) | | (3,401 | ) |
Other expenses | (614 | ) | | (859 | ) | | (564 | ) |
Share of associates and joint ventures’ profit | 122 |
| | 22 |
| | 11 |
|
Taxation expense | (128 | ) | | (108 | ) | | (189 | ) |
Net profit attributable to non-controlling interests | 17 |
| | 20 |
| | 17 |
|
Net profit (loss) attributable to equity shareholders | 133 |
| | (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 Ashanti | Year ended 31 December |
(in $ millions) | 2021 | 2020 | | 2019 | |
Total cost of sales | 2,857 | | 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 costs | 2,334 | | 2,074 | | | 1,981 | | |
|
| | | | | | | | |
Cost of sales for AngloGold Ashanti | Year ended 31 December |
(in $ millions) | 2018 |
| | 2017 |
| | 2016 |
|
Total cost of sales | 3,173 |
| | 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 costs | 2,505 |
| | 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.
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
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.
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
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
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.
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
$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 Ashanti | | Year ended 31 December |
(in $ millions) | | 2021 | | 2020 | | 2019 |
Capital expenditure | | 1,100 | | | 757 | | | 754 | |
- Consolidated entities | | 1,028 | | | 701 | | | 703 | |
- Equity-accounted joint ventures | | 72 | | | 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
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 |
| 2021 | | 2020 | | 2019 |
| $ | | percent | | $ | | percent | | $ | | percent |
Geographical analysis of gold income by origin is as follows: | | | | | | | | | | | |
Africa | 2,644 | | | 68 | | | 2,769 | | | 58 | | | 2,203 | | | 55 | |
Australia | 890 | | | 23 | | | 989 | | | 21 | | | 851 | | | 21 | |
Americas | 1,028 | | | 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 operations | 3,903 | | | | | 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 Africa | 602 |
| | 16 |
| | 1,101 |
| | 25 |
| | 1,173 |
| | 29 |
|
Continental Africa | 1,983 |
| | 52 |
| | 1,895 |
| | 44 |
| | 1,663 |
| | 41 |
|
Australasia | 780 |
| | 20 |
| | 709 |
| | 16 |
| | 646 |
| | 16 |
|
Americas | 1,021 |
| | 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 operations | 3,805 |
| | | | 4,356 |
| | | | 4,085 |
| | |
Discontinued operations | — |
| | — |
| | — |
| | — |
| | — |
| | — |
|
| 3,805 |
| | 100 |
| | 4,356 |
| | 100 |
| | 4,085 |
| | 100 |
|
Assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
(in millions) | Year ended 31 December |
| 2021 | | 2020 | | 2019 |
| $ | | percent | | $ | | percent | | $ | | percent |
Geographical analysis of assets by origin is as follows: | | | | | | | | | | | |
South Africa | — | | | — | | | — | | | — | | | 697 | | | 10 | |
Africa | 4,193 | | | 53 | | | 3,956 | | | 51 | | | 3,514 | | | 51 | |
Australia | 1,034 | | | 13 | | | 1,044 | | | 14 | | | 972 | | | 14 | |
Americas | 1,886 | | | 24 | | | 1,626 | | | 21 | | | 1,427 | | | 21 | |
Other, including non-gold producing subsidiaries | 854 | | | 10 | | | 1,046 | | | 14 | | | 253 | | | 4 | |
Total assets | 7,967 | | | 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 Africa | 1,106 |
| | 17 | | 1,734 |
| | 24 | | 1,818 |
| | 26 |
Continental Africa | 3,135 |
| | 47 | | 3,153 |
| | 44 | | 3,090 |
| | 43 |
Australasia | 888 |
| | 13 | | 929 |
| | 13 | | 804 |
| | 11 |
Americas | 1,286 |
| | 19 | | 1,258 |
| | 17 | | 1,273 |
| | 18 |
Other, including non-gold producing subsidiaries | 228 |
| | 4 | | 145 |
| | 2 | | 168 |
| | 2 |
Total assets | 6,643 |
| | 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
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 Ashanti | Year ended 31 December |
| 2021 | 2020 | | 2019 | |
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 ($/oz) | 1,796 | | 1,778 | | | 1,394 | | |
A reconciliation of both cost of sales and total cash costs as included in the company’s audited financial statements to all-in“all-in sustaining costs”, “all-in sustaining costs all-inper ounce”, “all-in costs”, “all-in costs and totalper ounce”, “total cash costs net of by-product revenue” and “total cash costs per ounce” for each of the three years in the period ended 31 December 20182021 is presented on a
total and segment basis in the tables below. In addition, the company has provided below detail of the attributable ounces of gold produced and sold by mine for each of those periods.periods below.
The following table presents selected total operating data from continuing operations for the AngloGold Ashanti group for the three-year period ended 31 December 2018:2021:
|
| | | | | | | | |
Operating data for AngloGold Ashanti | Year ended 31 December |
| 2018 |
| | 2017 |
| | 2016 |
|
Total cash costs (million US dollars) – per financial statements(1) | 2,505 |
| | 2,863 |
| | 2,573 |
|
All-in sustaining costs ($/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 ($/oz) - Joint Ventures(1) | 680 |
| | 819 |
| | 812 |
|
| |
(1)
| All-in sustaining costs, all-in costs and total cash costs are non-GAAP measures. |
| | | | | | | | | | | | | | | | | |
Operating data for AngloGold Ashanti operations - Total | Year ended 31 December |
(continuing operations)
| 2021 | 2020 | | 2019 | |
Cost of sales (million US dollars) - Subsidiaries | 2,857 | | 2,699 | | | 2,626 | | |
Cost of sales (million US dollars) - Joint Ventures | 350 | | 340 | | | 428 | | |
All-in sustaining costs per ounce ($/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
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
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:
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
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
$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
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.
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.
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 expenditure | | | | | | | | | | | | | | | | | | | 73 | |
Lease payment sustaining | | | | | | | | | | | | | | | | | | | 3 | |
Sustaining exploration and study costs | | | | | | | | | | | | | | | | | | | — | |
Total sustaining capital expenditure | | | | | | | | | | | | | | | | | | | 11 | |
All-in sustaining costs | | | | | | | | | | | | | | | | | | | 79 | |
Adjusted for non-controlling interests and non-gold producing companies(1) | | | | | | | | | | | | | | | | | | | — | |
All-in sustaining costs adjusted for non-controlling interests and non-gold producing companies | | | | | | | | | | | | | | | | | | | 79 | |
All-in sustaining costs | | | | | | | | | | | | | | | | | | | 79 | |
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 operations | | | | | | | | | | | | | | | | | | | 4 | |
Other provisions | | | | | | | | | | | | | | | | | | | 1 | |
All-in costs | | | | | | | | | | | | | | | | | | | 84 | |
Adjusted for non-controlling interests and non-gold producing companies(1) | | | | | | | | | | | | | | | | | | | — | |
All-in costs adjusted for non-controlling interests and non-gold producing companies | | | | | | | | | | | | | | | | | | | 84 | |
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.
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.
For the year ended 31 December 2021
Operations in DRC, Ghana, Guinea, Mali and Tanzania
(in $ millions, except as otherwise noted) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| DRC | | Mali | | Joint | | Ghana | | Guinea | | Tanzania | | Africa other | | Subsidiaries |
| Kibali | | Morila | | Sadiola | | Ventures | | Iduapriem | | Obuasi | | Siguiri | | Geita | | |
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 amortisation | 1 | | | — | | | — | | | 1 | | | 1 | | | — | | | — | | | 1 | | | — | | | 2 | |
Corporate administration and marketing expenditure | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | |
Lease payment sustaining | 9 | | | — | | | — | | | 9 | | | 2 | | | — | | | 1 | | | 19 | | | — | | | 22 | |
Sustaining exploration and study costs | — | | | — | | | — | | | — | | | 1 | | | — | | | 3 | | | 4 | | | — | | | 8 | |
Total sustaining capital expenditure | 61 | | | — | | | — | | | 61 | | | 103 | | | 46 | | | 18 | | | 65 | | | — | | | 232 | |
All-in sustaining costs | 314 | | | — | | | — | | | 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 companies | 314 | | | — | | | — | | | 314 | | | 325 | | | 188 | | | 326 | | | 501 | | | — | | | 1,340 | |
All-in sustaining costs | 314 | | | — | | | — | | | 314 | | | 325 | | | 188 | | | 384 | | | 501 | | | — | | | 1,398 | |
Non-sustaining project capital expenditure | 11 | | | — | | | — | | | 11 | | | 2 | | | 122 | | | 20 | | | 58 | | | — | | | 202 | |
Non-sustaining lease payments | — | | | — | | | — | | | — | | | — | | | — | | | — | | | 2 | | | — | | | 2 | |
Non-sustaining exploration and study costs | 2 | | | — | | | — | | | 2 | | | 3 | | | 2 | | | 2 | | | 1 | | | — | | | 8 | |
Care and maintenance | — | | | — | | | — | | | — | | | — | | | 45 | | | — | | | — | | | — | | | 45 | |
Closure and social responsibility costs not related to current operations | 3 | | | — | | | — | | | 3 | | | — | | | 10 | | | — | | | — | | | — | | | 10 | |
Other provisions | — | | | — | | | — | | | — | | | — | | | — | | | — | | | 3 | | | — | | | 3 | |
All-in costs | 330 | | | — | | | — | | | 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 companies | 330 | | | — | | | — | | | 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 | |
For the year ended 31 December 2021
Operations in DRC, Ghana, Guinea, Mali and Tanzania
(in $ millions, except as otherwise noted) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| DRC | | Mali | | Joint | | Ghana | | Guinea | | Tanzania | | Africa other | | Subsidiaries |
| Kibali | | Morila | | Sadiola | | Ventures | | Iduapriem | | Obuasi | | Siguiri | | Geita | | |
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 costs | 237 | | | — | | | — | | | 237 | | | 218 | | | 120 | | | 363 | | | 399 | | | — | | | 1,100 | |
Adjusted for non-controlling interests(1) | — | | | — | | | — | | | — | | | — | | | — | | | (55) | | | — | | | — | | | (55) | |
Total cash costs adjusted for non-controlling interests | 237 | | | — | | | — | | | 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 | |
For the year ended 31 December 2021
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) | 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 amortisation | 1 | | | 1 | | | — | | | 2 | | | — | | | (4) | | | — | | | — | | | (4) | |
Corporate administration and marketing expenditure | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | |
Lease payment sustaining | 13 | | | 12 | | | — | | | 25 | | | — | | | 15 | | | 4 | | | 1 | | | 20 | |
Sustaining exploration and study costs | — | | | — | | | — | | | — | | | 1 | | | 1 | | | — | | | — | | | 2 | |
Total sustaining capital expenditure | 47 | | | 82 | | | 1 | | | 130 | | | 69 | | | 193 | | | 82 | | | — | | | 344 | |
All-in sustaining costs | 364 | | | 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 companies | 364 | | | 350 | | | 29 | | | 743 | | | 195 | | | 506 | | | 184 | | | 3 | | | 888 | |
All-in sustaining costs | 364 | | | 350 | | | 29 | | | 743 | | | 211 | | | 506 | | | 184 | | | 3 | | | 904 | |
Non-sustaining project capital expenditure | 15 | | | 40 | | | — | | | 55 | | | — | | | 2 | | | — | | | 52 | | | 54 | |
Non-sustaining lease payments | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | |
Non-sustaining exploration and study costs | 27 | | | 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 costs | 406 | | | 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 companies | 406 | | | 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 | |
For the year ended 31 December 2021
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 | | |
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 costs | 3 | | | 3 | | | (1) | | | 5 | | | (8) | | | (12) | | | — | | | — | | | (20) | |
Retrenchment costs | — | | | — | | | — | | | — | | | (1) | | | (1) | | | — | | | — | | | (2) | |
Total cash costs | 303 | | | 261 | | | 27 | | | 591 | | | 139 | | | 285 | | | 99 | | | 2 | | | 525 | |
Adjusted for non-controlling interests(1) | — | | | — | | | — | | | — | | | (10) | | | — | | | — | | | — | | | (10) | |
Total cash costs adjusted for non-controlling interests | 303 | | | 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 | |
For the year ended 31 December 2021
AngloGold Ashanti operations – Total
(in $ millions, except as otherwise noted) | | | | | | | | |
| JOINT VENTURES | SUBSIDIARIES 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 amortisation | 1 | | — | |
Corporate administration and marketing expenditure | — | | 73 | |
Lease payment sustaining | 9 | | 70 | |
Sustaining exploration and study costs | — | | 10 | |
Total sustaining capital expenditure | 61 | | 717 | |
All-in sustaining costs | 314 | | 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 companies | 314 | | 3,050 | |
All-in sustaining costs | 314 | | 3,124 | |
Non-sustaining project capital expenditure | 11 | | 311 | |
Non-sustaining lease payments | — | | 2 | |
Non-sustaining exploration and study costs | 2 | | 153 | |
Care and maintenance | — | | 45 | |
Closure and social responsibility costs not related to current operations | 3 | | 24 | |
Other provisions | — | | 4 | |
All-in costs | 330 | | 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 companies | 330 | | 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 | |
For the year ended 31 December 2021
AngloGold Ashanti operations – Total
(in $ millions, except as otherwise noted) | | | | | | | | |
| JOINT VENTURES | SUBSIDIARIES 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 costs | 237 | | 2,208 | |
Adjusted for non-controlling interests(1) | — | | (65) | |
Total cash costs adjusted for non-controlling interests | 237 | | 2,143 | |
Gold produced – oz (000)(2) | 365 | | 2,107 | |
Total cash costs (adjusted) per unit – $/oz(3) | 647 | | 1,017 | |
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 contracts | | | | | | | | | | | | | | | | | | | 5 | |
Amortisation of tangible, intangible and right of use assets | | | | | | | | | | | | | | | | | | | (2) | |
Adjusted for decommissioning and inventory amortisation | | | | | | | | | | | | | | | | | | | (1) | |
Corporate administration and marketing expenditure | | | | | | | | | | | | | | | | | | | 67 | |
Lease payment sustaining | | | | | | | | | | | | | | | | | | | 3 | |
Sustaining exploration and study costs | | | | | | | | | | | | | | | | | | | 1 | |
Total sustaining capital expenditure | | | | | | | | | | | | | | | | | | | 2 | |
All-in sustaining costs | | | | | | | | | | | | | | | | | | | 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 companies | | | | | | | | | | | | | | | | | | | 73 | |
All-in sustaining costs | | | | | | | | | | | | | | | | | | | 73 | |
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 operations | | | | | | | | | | | | | | | | | | | 9 | |
Other provisions | | | | | | | | | | | | | | | | | | | — | |
All-in costs | | | | | | | | | | | | | | | | | | | 82 | |
Adjusted for non-controlling interests and non -gold producing companies(1) | | | | | | | | | | | | | | | | | | | — | |
All-in costs adjusted for non-controlling interests and non-gold producing companies | | | | | | | | | | | | | | | | | | | 82 | |
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.
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.
For the year ended 31 December 2020
Operations in South Africa (Discontinued operations)
(in $ millions, except as otherwise noted)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | Mponeng | | | | West Wits Operations | | Surface Operations | | South Africa other | | Total 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 expenditure | | | | | | | 27 | | | | | 27 | | | 7 | | | 1 | | | 35 | |
All-in sustaining costs | | | | | | | 184 | | | | | 185 | | | 131 | | | 5 | | | 321 | |
All-in sustaining costs adjusted for non-controlling interest and non-gold producing companies | | | | | | | 184 | | | | | 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 costs | | | | | | | 184 | | | | | 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 | |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| 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 costs | 27 |
| | 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 companies | 27 |
| | 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-offs | 27 |
| | 51 |
| | 78 |
| | 312 |
| | 312 |
| | 187 |
| | — |
| | 577 |
| | 73 |
|
All-in sustaining costs | 27 |
| | 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 costs | 27 |
| | 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 companies | 27 |
| | 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-offs | 27 |
| | 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)
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | Mponeng | | West Wits Operations | | Surface Operations | | South Africa other | | Total 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 costs | | | | | | | 155 | | | 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 | |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| 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 revenue | 25 |
| | 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 companies | 25 |
| | 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)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| DRC | | Mali | Joint | | Ghana | | Guinea | Tanzania | | Africa other | | Subsidiaries |
| Kibali | | Morila | | Sadiola | Ventures | | Iduapriem | | Obuasi | | Siguiri | Geita | | |
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 amortisation | 1 | | | — | | | — | | 1 | | | 1 | | | — | | | — | | 4 | | | — | | | 5 | |
Corporate administration and marketing expenditure | — | | | — | | | — | | — | | | — | | | — | | | — | | — | | | — | | | — | |
Lease payment sustaining | 9 | | | — | | | — | | 9 | | | — | | | — | | | — | | 17 | | | — | | | 17 | |
Sustaining exploration and study costs | — | | | — | | | — | | — | | | 3 | | | — | | | 2 | | 5 | | | — | | | 10 | |
Total sustaining capital expenditure | 52 | | | — | | | — | | 52 | | | 60 | | | 7 | | | 15 | | 80 | | | 1 | | | 163 | |
All-in sustaining costs | 296 | | | — | | | — | | 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 companies | 296 | | | — | | | — | | 297 | | | 269 | | | 35 | | | 300 | | 522 | | | — | | | 1,126 | |
All-in sustaining costs | 296 | | | — | | | — | | 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 operations | 2 | | | 6 | | | (3) | | 4 | | | — | | | 10 | | | — | | — | | | — | | | 10 | |
Other provisions | — | | | — | | | — | | — | | | — | | | — | | | — | | — | | | — | | | — | |
All-in costs | 298 | | | 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 companies | 298 | | | 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 | |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 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 amortisation | 1 |
| | 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 expenditure | 54 |
| | 2 |
| | — |
| | 56 |
| | 43 |
| | — |
| | 11 |
| | 59 |
| | — |
| | 113 |
|
Realised other commodity contracts | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
|
All-in sustaining costs | 278 |
| | 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 companies | 278 |
| | 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-offs | 278 |
| | 40 |
| | 56 |
| | 374 |
| | 248 |
| | (6 | ) | | 227 |
| | 535 |
| | — |
| | 1,004 |
|
All-in sustaining costs | 278 |
| | 40 |
| | 56 |
| | 374 |
| | 248 |
| | (6 | ) | | 267 |
| | 535 |
| | — |
| | 1,044 |
|
Non-sustaining project capital expenditure | 10 |
| | — |
| | 1 |
| | 11 |
| | — |
| | 48 |
| | 85 |
| | — |
| | — |
| | 133 |
|
Technology improvements | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
|
Non-sustaining exploration and study costs | 1 |
| | — |
| | — |
| | 1 |
| | — |
| | 1 |
| | 10 |
| | — |
| | — |
| | 11 |
|
Care and maintenance costs | — |
| | — |
| | — |
| | — |
| | — |
| | 39 |
| | — |
| | — |
| | — |
| | 39 |
|
Corporate and social responsibility costs not related to current operations | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
|
Other provisions | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
|
All-in costs | 289 |
| | 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 companies | 289 |
| | 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-offs | 289 |
| | 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)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| DRC | | Mali | | Joint | | Ghana | | Guinea | | Tanzania | | Africa other | | Subsidiaries |
| Kibali | | Morila | | Sadiola | | Ventures | | Iduapriem | | Obuasi | | Siguiri | | Geita | | |
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 costs | 230 | | | — | | | — | | | 230 | | | 200 | | | 35 | | | 326 | | | 399 | | | (1) | | | 959 | |
Adjusted for non-controlling interests(1) | — | | | — | | | — | | | — | | | — | | | — | | | (49) | | | — | | | — | | | (49) | |
Total cash costs adjusted for non-controlling interests | 230 | | | — | | | — | | | 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 | |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 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 revenue | 219 |
| | 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 companies | 219 |
| | 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)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 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) | 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 amortisation | 2 | | | 1 | | | — | | | 3 | | | (7) | | | 3 | | | — | | | — | | | (4) | |
Corporate administration and marketing expenditure | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | |
Lease payment sustaining | 11 | | | 10 | | | 1 | | | 22 | | | — | | | 8 | | | 2 | | | — | | | 10 | |
Sustaining exploration and study costs | — | | | 1 | | | — | | | 1 | | | 2 | | | 2 | | | — | | | — | | | 4 | |
Total sustaining capital expenditure | 50 | | | 64 | | | — | | | 114 | | | 31 | | | 103 | | | 33 | | | — | | | 167 | |
All-in sustaining costs | 340 | | | 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 companies | 340 | | | 318 | | | 24 | | | 682 | | | 173 | | | 381 | | | 110 | | | 1 | | | 665 | |
All-in sustaining costs | 340 | | | 318 | | | 24 | | | 682 | | | 187 | | | 381 | | | 110 | | | 1 | | | 679 | |
Non-sustaining project capital expenditure | 3 | | | 25 | | | — | | | 28 | | | — | | | — | | | — | | | 49 | | | 49 | |
Non-sustaining lease payments | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | |
Non-sustaining exploration and study costs | 22 | | | 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 costs | 365 | | | 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 companies | 365 | | | 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 | |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| 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 amortisation | 1 |
| | 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 costs | 7 |
| | 5 |
| | — |
| | 12 |
| | 2 |
| | 4 |
| | 4 |
| | — |
| | 10 |
|
Total sustaining capital expenditure | 79 |
| | 74 |
| | 1 |
| | 154 |
| | 36 |
| | 96 |
| | 35 |
| | 9 |
| | 176 |
|
Realised other commodity contracts | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | (5 | ) | | (5 | ) |
All-in sustaining costs | 346 |
| | 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 companies | 346 |
| | 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-offs | 346 |
| | 279 |
| | 14 |
| | 639 |
| | 184 |
| | 360 |
| | 124 |
| | (4 | ) | | 664 |
|
All-in sustaining costs | 346 |
| | 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 costs | 346 |
| | 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 companies | 346 |
| | 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-offs | 346 |
| | 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)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 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) | 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 costs | 274 | | | 240 | | | 22 | | | 536 | | | 132 | | | 269 | | | 77 | | | — | | | 478 | |
Adjusted for non-controlling interests | — | | | — | | | — | | | — | | | (10) | | | — | | | — | | | — | | | (10) | |
Total cash costs adjusted for non-controlling interests | 274 | | | 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 | |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| 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 change | 7 |
| | 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 revenue | 266 |
| | 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 companies | 266 |
| | 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 VENTURES | SUBSIDIARIES 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 amortisation | 1 | | 4 | |
Corporate administration and marketing expenditure | — | | 67 | |
Lease payment sustaining | 9 | | 52 | |
Sustaining exploration and study costs | — | | 15 | |
Total sustaining capital expenditure | 52 | | 445 | |
All-in sustaining costs | 297 | | 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 companies | 297 | | 2,545 | |
All-in sustaining costs | 297 | | 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 operations | 4 | | 29 | |
Other provisions | — | | — | |
All-in costs | 301 | | 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 companies | 301 | | 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 | |
|
| | | | |
| 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 amortisation | 4 |
| (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 expenditure | 56 |
| 515 |
|
Realised other commodity contracts | — |
| (5 | ) |
All-in sustaining costs | 374 |
| 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 companies | 374 |
| 2,957 |
|
Adjusted for stockpile write-offs | — |
| (1 | ) |
All-in sustaining costs adjusted for non-controlling interests, non-gold producing companies and stockpile write-offs | 374 |
| 2,956 |
|
All-in sustaining costs | 374 |
| 3,021 |
|
Non-sustaining project capital expenditure | 11 |
| 139 |
|
Technology improvements | — |
| 4 |
|
Non-sustaining exploration and study costs | 1 |
| 66 |
|
Care and maintenance costs | — |
| 74 |
|
Corporate and social responsibility costs not related to current operations | — |
| 24 |
|
Other provisions | — |
| (2 | ) |
All-in costs | 386 |
| 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 companies | 386 |
| 3,257 |
|
Adjusted for stockpile write-offs | — |
| (1 | ) |
All-in costs adjusted for non-controlling interests, non-gold producing companies and stockpile write-offs | 386 |
| 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 VENTURES | SUBSIDIARIES 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 costs | 230 | | 1,969 | |
Adjusted for non-controlling interests(1) | — | | (59) | |
Total cash costs adjusted for non-controlling interests | 230 | | 1,910 | |
Gold produced – oz (000)(2) | 364 | | 2,345 | |
Total cash costs (adjusted) per unit – $/oz(3) | 629 | | 815 | |
|
| | | | |
| 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 revenue | 308 |
| 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 companies | 308 |
| 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 expenditure | 8 |
| | 42 |
| | 50 |
| | 52 |
| | 12 |
| | 64 |
| | 13 |
| | 3 |
| | 130 |
| | 5 |
|
All-in sustaining costs | 146 |
|
| 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 companies | 146 |
| | 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-offs | 146 |
|
| 276 |
|
| 421 |
|
| 282 |
|
| 205 |
|
| 487 |
|
| 200 |
|
| 3 |
|
| 1,111 |
|
| 63 |
|
All-in sustaining costs | 146 |
| | 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 costs | 146 |
|
| 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 companies | 146 |
| | 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-offs | 146 |
| | 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 expenditure | | | | | | | | | | | | | | | | | | | 82 | |
Lease payment sustaining | | | | | | | | | | | | | | | | | | | 5 | |
Sustaining exploration and study costs | | | | | | | | | | | | | | | | | | | 1 | |
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 companies | | | | | | | | | | | | | | | | | | | 82 | |
All-in sustaining costs | | | | | | | | | | | | | | | | | | | 83 | |
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 operations | | | | | | | | | | | | | | | | | | | 7 | |
Other provisions | | | | | | | | | | | | | | | | | | | 2 | |
All-in costs | | | | | | | | | | | | | | | | | | | 91 | |
Adjusted for non-controlling interests and non -gold producing companies(1) | | | | | | | | | | | | | | | | | | | — | |
All-in costs adjusted for non-controlling interests and non-gold producing companies | | | | | | | | | | | | | | | | | | | 90 | |
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.
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 change | | | | | | | | | | | | | | | | | | | 4 | |
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 costs | | | | | | | | | | | | | | | | | | | 1 | |
Adjusted for non-controlling interests(1) | | | | | | | | | | | | | | | | | | | — | |
Total cash costs adjusted for non-controlling interests | | | | | | | | | | | | | | | | | | | 1 | |
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.
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 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 costs | 3 |
| | (5 | ) | | (3 | ) | | (3 | ) | | (6 | ) | | (9 | ) | | (1 | ) | | — |
| | (12 | ) | | 1 |
|
Retrenchment costs | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
|
Total cash costs net of by-product revenue | 140 |
| | 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 companies | 140 |
| | 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)
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | Mponeng | | West Wits Operations | | Surface Operations | | South Africa other | Total 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 expenditure | | | | | | | 47 | | | 47 | | | 7 | | 3 | | 57 | |
All-in sustaining costs | | | | | | | 287 | | | 287 | | | 180 | | | 2 | | 469 | |
All-in sustaining costs | | | | | | | 287 | | | 289 | | | 180 | | | 2 | | 469 | |
Non-sustaining project capital expenditure | | | | | | | 2 | | | — | | | — | | — | 2 | |
Care and maintenance | | | | | | | — | | | — | | | — | | 42 | 42 | |
All-in costs | | | | | | | 289 | | | 289 | | | 180 | | 44 | | 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 | |
For the year ended 31 December 2019
Operations in South Africa (Discontinued operations)
(in $ millions, except as otherwise noted)
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | Mponeng | | West Wits Operations | | Surface Operations | | South Africa other | | Total South Africa (Operations) |
Total cash costs | | | | | | | | | | | | | | | |
Cost of sales per segmental information(5) | | | | | | | 287 | | | 287 | | | 189 | | | 3 | | | 479 | |
By-product revenue | | | | | | | — | | | — | | — | | | — | | | (1) | |
Inventory change | | | | | | | 3 | | | 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 costs | | | | | | | 239 | | | 239 | | | 173 | | | — | | | 411 | |
Gold produced - oz (000)(2) | | | | | | | 244 | | | 244 | | | 175 | | | — | | | 419 | |
Total cash costs per unit - $/oz(3) | | | | | | | 976 | | | 976 | | | 987 | | | — | | | 981 | |
For the year ended 31 December 2019
Operations in DRC, Ghana, Guinea, Mali and Tanzania
(in $ millions, except as otherwise noted)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| DRC | | Mali | Joint | | Ghana | | Guinea | | Tanzania | | Africa other | | Subsidiaries |
| Kibali | | Morila | | Sadiola | Ventures | | Iduapriem | | Obuasi | | Siguiri | | Geita | | |
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 amortisation | 1 | | | 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 expenditure | 46 | | | — | | | — | | 46 | | | 16 | | | — | | | 15 | | | 75 | | | — | | | 107 | |
| | | | | | | | | | | | | | | | | | |
All-in sustaining costs | 254 | | | 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 companies | 254 | | | 34 | | | 50 | | 338 | | | 249 | | | — | | | 251 | | | 540 | | | (1) | | | 1,039 | |
All-in sustaining costs | 254 | | | 34 | | | 50 | | 338 | | | 249 | | | — | | | 295 | | | 540 | | | (1) | | | 1,083 | |
Non-sustaining project capital expenditure | 5 | | | — | | | — | | 5 | | | — | | | 246 | | | 6 | | | — | | | — | | | 252 | |
Non-sustaining lease payments | — | | | — | | | — | | — | | | — | | | — | | | — | | | 1 | | | — | | | 1 | |
Non-sustaining exploration and study costs | 5 | | | — | | | — | | 4 | | | 1 | | | — | | | 4 | | | 4 | | | 1 | | | 10 | |
Care and maintenance | — | | | — | | | — | | — | | | — | | | 48 | | | — | | | — | | | (1) | | | 47 | |
Closure and social responsibility costs not related to current operations | 1 | | | — | | | — | | — | | | 2 | | | — | | | 9 | | | — | | | — | | | 11 | |
Other provisions | — | | | — | | | — | | — | | | — | | | — | | | — | | | — | | | — | | | — | |
All-in costs | 265 | | | 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 companies | 265 | | | 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 | |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 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) | 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 expenditure | 77 |
| | 2 |
| | 6 |
| 85 |
| | 51 |
| | — |
| | 15 |
| 156 |
| | 1 |
| | 223 |
|
All-in sustaining costs | 296 |
| | 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 companies | 296 |
| | 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-offs | 296 |
| | 33 |
| | 64 |
| 393 |
| | 234 |
| | (6 | ) | | 264 |
| 497 |
| | 2 |
| | 990 |
|
All-in sustaining costs | 296 |
| | 33 |
| | 64 |
| 393 |
| | 234 |
| | (6 | ) | | 311 |
| 497 |
| | 2 |
| | 1,037 |
|
Non-sustaining project capital expenditure | 34 |
| | — |
| | 1 |
| 35 |
| | — |
| | — |
| | 67 |
| — |
| | — |
| | 67 |
|
Technology improvements | — |
| | — |
| | — |
| — |
| | — |
| | — |
| | — |
| — |
| | — |
| | — |
|
Non-sustaining exploration and study costs | 1 |
| | — |
| | — |
| 1 |
| | — |
| | 1 |
| | — |
| — |
| | — |
| | 1 |
|
Care and maintenance costs | — |
| | — |
| | — |
| — |
| | — |
| | 62 |
| | — |
| — |
| | — |
| | 62 |
|
Corporate and social responsibility costs not related to current operations | — |
| | — |
| | — |
| — |
| | — |
| | — |
| | — |
| — |
| | — |
| | — |
|
All-in costs | 331 |
| | 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 companies | 331 |
| | 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-offs | 331 |
| | 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)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| DRC | | Mali | | Joint | | Ghana | | Guinea | | Tanzania | | Africa other | | Subsidiaries |
| Kibali | | Morila | | Sadiola | | Ventures | | Iduapriem | | Obuasi | | Siguiri | | Geita | | |
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 change | 4 | | | (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 costs | 210 | | | 33 | | | 50 | | | 292 | | | 224 | | | — | | | 273 | | | 420 | | | (2) | | | 915 | |
Adjusted for non-controlling interests(1) | — | | | — | | | — | | | — | | | — | | | — | | | (41) | | | — | | | — | | | (41) | |
Total cash costs adjusted for non-controlling interests | 210 | | | 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 | |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 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 revenue | 210 |
| | 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 companies | 210 |
| | 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)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 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) | 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 amortisation | 2 | | | — | | | — | | | 2 | | | (3) | | | (3) | | | — | | | 2 | | | (5) | |
Corporate administration and marketing expenditure | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | |
Lease payment sustaining | 8 | | | 4 | | | 8 | | | 20 | | | — | | | 7 | | | — | | | — | | | 7 | |
Sustaining exploration and study costs | 4 | | | — | | | — | | | 4 | | | 1 | | | 8 | | | 5 | | | — | | | 14 | |
Total sustaining capital expenditure | 43 | | | 83 | | | — | | | 126 | | | 33 | | | 91 | | | 34 | | | — | | | 157 | |
| | | | | | | | | | | | | | | | | |
All-in sustaining costs | 319 | | | 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 companies | 319 | | | 271 | | | 18 | | | 609 | | | 189 | | | 397 | | | 136 | | | 2 | | | 722 | |
All-in sustaining costs | 319 | | | 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 costs | 5 | | | 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 costs | 324 | | | 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 companies | 324 | | | 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 | |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| 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 costs | 2 |
| | 7 |
| | 5 |
| | 14 |
| | 3 |
| | 8 |
| | 6 |
| | 7 |
| | 24 |
|
Total sustaining capital expenditure | 62 |
| | 91 |
| | — |
| | 153 |
| | 56 |
| | 134 |
| | 38 |
| | 4 |
| | 232 |
|
All-in sustaining costs | 290 |
| | 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 companies | 290 |
| | 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-offs | 290 |
| | 284 |
| | 22 |
| | 596 |
| | 227 |
| | 431 |
| | 147 |
| | 3 |
| | 807 |
|
All-in sustaining costs | 290 |
| | 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 costs | 290 |
| | 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 companies | 290 |
| | 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-offs | 290 |
| | 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)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Australia | | TOTAL AUSTRALIA | | Argentina | | Brazil | | Americas other | | Total America |
| Sunrise Dam | | Tropicana | | Australia other | | | Cerro Vanguardia | | AngloGold 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 costs | 258 | | | 181 | | | 9 | | | 448 | | | 164 | | | 279 | | | 87 | | | (2) | | | 530 | |
Adjusted for non-controlling interests(1) | — | | | — | | | — | | | — | | | (12) | | | — | | | — | | | — | | | (12) | |
Total cash costs adjusted for non-controlling interests | 258 | | | 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 | |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| 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 revenue | 219 |
| | 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 companies | 219 |
| | 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 VENTURES | SUBSIDIARIES 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 amortisation | 2 | | 1 | |
Corporate administration and marketing expenditure | — | | 82 | |
Lease payment sustaining | — | | 51 | |
Sustaining exploration and study costs | — | | 31 | |
Total sustaining capital expenditure | 46 | | 390 | |
All-in sustaining costs | 338 | | 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 companies | 338 | | 2,452 | |
All-in sustaining costs | 338 | | 2,512 | |
Non-sustaining project capital expenditure | 5 | | 313 | |
Non-sustaining lease payments | — | | 1 | |
Non-sustaining exploration and study costs | 4 | | 85 | |
Care and maintenance | — | | 47 | |
Closure and social responsibility costs not related to current operations | — | | 38 | |
Other provisions | — | | 2 | |
All-in costs | 347 | | 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 companies | 347 | | 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 | |
|
| | | | |
| 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 amortisation | 3 |
| 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 costs | 1 |
| 64 |
|
Total sustaining capital expenditure | 85 |
| 744 |
|
All-in sustaining costs | 393 |
| 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 companies | 393 |
| 3,572 |
|
Adjusted for stockpile write-offs | — |
| (3 | ) |
All-in sustaining costs adjusted for non-controlling interests, non-gold producing companies and stockpile write-offs | 393 |
| 3,569 |
|
All-in sustaining costs | 393 |
| 3,636 |
|
Non-sustaining project capital expenditure | 35 |
| 89 |
|
Technology improvements | — |
| 10 |
|
Non-sustaining exploration and study costs | 1 |
| 49 |
|
Care and maintenance costs | — |
| 62 |
|
Corporate and social responsibility costs not related to current operations | — |
| 24 |
|
All-in costs | 429 |
| 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 companies | 429 |
| 3,807 |
|
Adjusted for stockpile write-offs | — |
| (3 | ) |
All-in costs adjusted for non-controlling interests, non-gold producing companies and stockpile write-offs | 429 |
| 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 VENTURES | SUBSIDIARIES EXCLUDING DISCONTINUED OPERATIONS |
Total cash costs | | |
Cost of sales per segmental information(5) | 428 | | 2,626 | |
By-product revenue | (1) | | (86) | |
Inventory change | 3 | | (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 costs | 292 | | 1,895 | |
Adjusted for non-controlling interests(1) | — | | (53) | |
Total cash costs adjusted for non-controlling interests | 292 | | 1,841 | |
Gold produced - oz (000)(2) | 445 | | 2,415 | |
Total cash costs (adjusted) per unit - $/oz(3) | 657 | | 763 | |
|
| | | | |
| 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 revenue | 295 |
| 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 companies | 295 |
| 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 expenditure | 16 |
| | 41 |
| | 57 |
| | 52 |
| | 25 |
| | 77 |
| | 17 |
| | 6 |
| | 157 |
| | 5 |
|
All-in sustaining costs | 140 |
|
| 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 companies | 140 |
|
| 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-offs | 140 |
|
| 247 |
|
| 387 |
|
| 256 |
|
| 195 |
|
| 451 |
|
| 186 |
|
| 6 |
|
| 1,031 |
|
| 64 |
|
All-in sustaining costs | 140 |
| | 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 costs | 140 |
|
| 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 companies | 140 |
|
| 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-offs | 140 |
|
| 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. |
| |
(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 revenue | 121 |
| | 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 companies | 121 |
|
| 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 | | 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) | 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 expenditure | 32 |
| | 1 |
| | 3 |
| 36 |
| | 8 |
| | — |
| | 38 |
| | 119 |
| | (2 | ) | | 164 |
|
All-in sustaining costs | 228 |
| | 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 companies | 228 |
| | 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-offs | 228 |
| | 28 |
| | 74 |
| 331 |
| | 204 |
| | 1 |
| | 228 |
| | 401 |
| | (3 | ) | | 832 |
|
All-in sustaining costs | 228 |
| | 29 |
| | 74 |
| 332 |
| | 204 |
| | 1 |
| | 268 |
| | 401 |
| | (3 | ) | | 872 |
|
Non-sustaining project capital expenditure | 60 |
| | — |
| | 3 |
| 63 |
| | — |
| | 6 |
| | 21 |
| | — |
| | 1 |
| | 27 |
|
Technology improvements | — |
| | — |
| | — |
| — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
|
Non-sustaining exploration and study costs | 2 |
| | — |
| | — |
| 2 |
| | — |
| | 4 |
| | — |
| | — |
| | (1 | ) | | 3 |
|
Care and maintenance costs | — |
| | — |
| | — |
| — |
| | — |
| | 70 |
| | — |
| | — |
| | — |
| | 70 |
|
Corporate and social responsibility costs not related to current operations | — |
| | — |
| | — |
| — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
|
All-in costs | 290 |
| | 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 companies | 290 |
| | 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-offs | 290 |
| | 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 change | 5 |
| | — |
| | — |
| | 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 revenue | 195 |
| | 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 companies | 195 |
| | 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 amortisation | 1 |
| | 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 costs | 1 |
| | 12 |
| | 8 |
| | 21 |
| | 2 |
| | 2 |
| | 7 |
| | 7 |
| | 18 |
|
Total sustaining capital expenditure | 32 |
| | 76 |
| | 1 |
| | 109 |
| | 60 |
| | 121 |
| | 43 |
| | 1 |
| | 225 |
|
All-in sustaining costs | 244 |
| | 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 companies | 244 |
|
| 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-offs | 244 |
|
| 284 |
|
| 26 |
|
| 554 |
|
| 214 |
|
| 358 |
|
| 132 |
|
| 4 |
|
| 708 |
|
All-in sustaining costs | 244 |
| | 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 costs | 244 |
|
| 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 companies | 244 |
|
| 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-offs | 244 |
|
| 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 costs | 1 |
| | (10 | ) | | (2 | ) | | (11 | ) | | (8 | ) | | (7 | ) | | (1 | ) | | — |
| | (16 | ) |
Retrenchment costs | — |
| | — |
| �� | — |
| | — |
| | (1 | ) | | (1 | ) | | — |
| | (1 | ) | | (3 | ) |
Total cash costs net of by-product revenue | 211 |
| | 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 companies | 211 |
| | 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 amortisation | 2 |
| 10 |
|
Corporate administration and marketing related to current operations | — |
| 59 |
|
Inventory writedown to net realisable value and other stockpile adjustments | 1 |
| 12 |
|
Sustaining exploration and study costs | 1 |
| 69 |
|
Total sustaining capital expenditure | 36 |
| 659 |
|
All-in sustaining costs | 332 |
| 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 companies | 332 |
| 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-offs | 331 |
| 3,188 |
|
All-in sustaining costs | 332 |
| 3,263 |
|
Non-sustaining project capital expenditure | 63 |
| 53 |
|
Technology improvements | — |
| 14 |
|
Non-sustaining exploration and study costs | 2 |
| 54 |
|
Care and maintenance costs | — |
| 70 |
|
Care and maintenance costs, Corporate and social responsibility costs not related to current operations | — |
| 40 |
|
All-in costs | 397 |
| 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 companies | 397 |
| 3,441 |
|
Adjusted for stockpile write-offs | (1 | ) | (17 | ) |
All-in costs adjusted for non-controlling interests, non-gold producing companies and stockpile write-offs | 396 |
| 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 change | 5 |
| 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 revenue | 288 |
| 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 companies | 288 |
| 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.
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”.
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.
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.
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.
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 borrowings | 1,9891,909 |
|
Secured finance leases | 61 |
|
Total borrowings | 2,0501,909 |
|
Less: Short-term maturities (current borrowings) | 13951 |
|
Total non-current borrowings | 1,9111,858 |
|
Amounts falling due are scheduled as follows: |
| | | | |
| $ (million) |
|
Within one year | 13951 |
|
Between one and two years | 73431 |
|
Between two and five years | 860110 |
|
After five years | 3171,717 |
|
Total | 2,0501,909 |
|
At 31 December 20182021, the currencies in which the borrowings were denominated were as follows:
|
| | | | |
| $ (million) |
|
United States dollarsdollar | 1,8961,829 |
|
Australian dollarsdollar | 4833 |
|
South African rand | 75— |
|
Tanzanian shillingsshilling | 2947 |
|
Brazilian real | 2— |
|
Total | 2,0501,909 |
|
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 rand | 174 |
|
Syndicated revolving credit facility (R1.4 billion) - SA rand | 70 |
|
FirstRand Bank Limited (R750corporate overnight facility (R150 million) -– SA rand | 5210 |
|
Revolving credit facility (R1billion) - SA rand | 35 |
|
Multi-currency syndicated revolving credit facility ($1.4 billion) -– US dollar / Australian dollar | 1,4001,367 |
|
RevolvingGeita revolving credit facility ($115150 million) -– US dollar / Tanzanian shilling | 5740 |
|
Siguiri revolving credit facility ($65 million) – US dollar | 30 | |
Total undrawn facilities | 1,7881,447 |
|
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”.
At 31 December 2021, lease liabilities were as follows: | | | | | |
| $ (million) |
Non-current | 124 | |
Current | 61 | |
Total | 185 | |
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 Subsidiaries | 5 | | |
Revenues from Investments | 22 | | |
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.
Statement of financial position information
| | | | | | |
| Obligor Group |
$ (million) | Year ended 31 December 2021 | |
| | |
ASSETS | | |
Receivables due from Non-Obligor Subsidiaries | 969 | | |
Other current assets | 661 | | |
Total current assets | 1,630 | | |
| | |
Non-current assets | 42 | | |
| | |
LIABILITIES | | |
Payables due to Non-Obligor Subsidiaries | 270 | | |
Other current liabilities | 245 | | |
Total current liabilities | 515 | | |
| | |
Non-current liabilities | 1,826 | | |
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 |
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) | 693 | | | 629 | | | 64 | | | — | | | — | |
Other commercial commitments(2) | 1,047 | | | 423 | | | 468 | | | 129 | | | 27 | |
Total | 1,740 | | | 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).
|
| | | | | | | | | | | | | | |
| 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 |
|
Total | 1,854 |
| | 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:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total | | Less than 1 year | | 1 – 3 years | | 4 – 5 years | | More than 5 years |
(in millions) | $ | | $ | | $ | | $ | | $ |
Long-term debt obligations including interest(1) | 2,734 | | | 119 | | | 304 | | | 142 | | | 2,169 | |
Capital lease obligations | 204 | | | 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 | |
Total | 4,952 | | | 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
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
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 obligations | 93 |
| | 12 |
| | 23 |
| | 17 |
| | 41 |
|
Operating lease obligations | 265 |
| | 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 |
|
Total | 5,096 |
| | 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. |
247
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:
| | | | | | | | | | | | | | | | | | | | |
Name | | Age | | Position | | Year first appointed(1) |
Alberto Calderon | | 62 | | Executive director and Chief Executive Officer | | 2021 |
Christine Ramon | | 54 | | Executive director and Chief Financial Officer | | 2014 |
Maria Ramos | | 63 | | Independent non-executive director and chairperson | | 2019 |
Rhidwaan Gasant | | 62 | | Lead independent non-executive director | | 2010 |
Kojo Busia | | 59 | | Independent non-executive director | | 2020 |
Alan Ferguson | | 64 | | Independent non-executive director | | 2018 |
Albert Garner | | 66 | | Independent non-executive director | | 2015 |
Scott Lawson | | 60 | | Independent non-executive director | | 2021 |
Nelisiwe Magubane | | 56 | | Independent non-executive director | | 2020 |
Maria Richter | | 67 | | Independent non-executive director | | 2015 |
Jochen Tilk | | 58 | | Independent non-executive director | | 2019 |
|
| | | | | | |
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.
| | | | | | | | |
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.
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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.
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| | | | | | | |
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
|
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.
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| | | | | | | |
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.
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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.
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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.
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| | | | | | | |
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.
•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
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.
•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
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.
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
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:
| | | | | | | | |
| | |
Executive Committee member | | |
Executive committee member | Notice period | Change of control |
Chief Executive Officer | 12 months | 12 months |
Chief Financial Officer | 6 months | 6 months |
Other Executive Management team members | 6 months | 6 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 Risk | Investment | Remuneration and Human Resources | Social, Ethics and Sustainability | Nominations and Governance (8) | Special Committee (9) |
Number of meetings in 2021 | 14 | 6 | 6 | 11 | 6 | 20 | 2 |
MDC Ramos (1) | 14 | n/a | n/a | 2 | 6 | 20 | 2 |
KOF Busia | 13 | n/a | 6 | n/a | 6 | 19 | n/a |
A Calderon (2) | 5 | n/a | n/a | n/a | n/a | n/a | n/a |
AM Ferguson | 14 | 6 | n/a | 11 | n/a | 19 | n/a |
AH Garner | 14 | n/a | 6 | 11 | n/a | n/a | 2 |
R Gasant (3) | 13 | 5 | 5 | 8 | n/a | 20 | 2 |
SP Lawson (4) | 0 | n/a | 1 | n/a | 0 | n/a | n/a |
NVB Magubane (5) | 14 | 3 | n/a | n/a | 6 | n/a | n/a |
KC Ramon (6) | 13 | n/a | 6 | n/a | n/a | n/a | n/a |
MC Richter | 14 | 6 | n/a | 11 | n/a | 19 | n/a |
JE Tilk | 14 | 6 | 6 | n/a | 6 | 20 | 2 |
(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.
|
| | | | | | | | | | | | | | | | | | | | | | | |
| Board |
| | Audit and Risk |
| | Investment |
| | Remuneration and Human Resources | | Social, Ethics and Sustainability |
| | Nomination |
| | CEO search(6) |
| | NED search(6) |
|
Number of meetings in 2018 | 10 |
| | 5 |
| | 4 |
| | 4 |
| | 5 |
| | 2 |
| | 4 |
| | 4 |
|
SM Pityana | 10 |
| | n/a |
| | n/a |
| | 4 |
| | 5 |
| | 2 |
| | 4 |
| | 4 |
|
R Gasant | 10 |
| | 5 |
| | 4 |
| | n/a |
| | n/a |
| | n/a |
| | n/a |
| | n/a |
|
DL Hodgson | 10 |
| | n/a |
| | 4 |
| | n/a |
| | 5 |
| | n/a |
| | n/a |
| | 1 |
|
NP January-Bardill | 10 |
| | n/a |
| | n/a |
| | 4 |
| | 5 |
| | n/a |
| | n/a |
| | n/a |
|
MJ Kirkwood | 10 |
| | 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 Ruston | 10 |
| | 5 |
| | 4 |
| | n/a |
| | n/a |
| | n/a |
| | | | 3 |
|
MDC Richter | 10 |
| | 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 Ramon | 10 |
| | 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 Members | R 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
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
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.
6D. EMPLOYEES
The average number of attributable employees (including contractors) in the AngloGold Ashanti group over the last three financial years was: | | | | | | | | | | | | | | | | | |
| 2021 | | 2020 | | 2019 |
Africa | 17,260 | | | 16,829 | | | 15,786 | |
Australia | 1,332 | | | 1,230 | | | 1,140 | |
Americas | 9,972 | | | 8,789 | | | 8,114 | |
Other, including corporate and non-gold producing subsidiaries | 1,997 | | | 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 Africa | 18,803 |
| | 26,245 |
| | 28,507 |
|
Continental Africa | 14,833 |
| | 13,593 |
| | 12,691 |
|
Australasia | 1,051 |
| | 974 |
| | 925 |
|
Americas | 7,973 |
| | 8,511 |
| | 8,126 |
|
Other, including corporate and non-gold producing subsidiaries | 1,589 |
| | 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
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:
| | | | | | | | | | | | | | | | |
Role | Within three years of appointment/from introduction of MSR (1 January 2020) | Within six years of appointment/from introduction of MSR (1 January 2020) | | | Holding requirement | 12 - month Post Termination Holding (1 January 2022) |
CEO | 150% of net annual base salary | 300% of net annual base salary | | | Throughout employment as a director or prescribed officer | The post-termination MSR will be the requirement based on the MSR policy at the time of termination. Should the executive depart (or no longer serve as director or prescribed officer) before they have achieved the MSR, all shares allocated effective 1 January 2022 form the company’s share incentive will be held for one year post-termination period. The holding will be up to their required MSR. |
CFO | 125% of net annual base salary | 250% of net annual base salary | | |
Executive Management Team | 100% of net annual base salary | 200% 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 |
The table below summarises each executive director and executive committee member’s accomplishment of the MSR:
| | | | | | | | | | | | | | |
Executive | Six-year target achievement date
| MSR holding as at 31 December 2021 as a percentage of net base pay | Three-year MSR target achievement percentage | Six-year MSR target achievement percentage |
Executive directors | | | | |
A Calderon (1) | September 2027 | 7% | 150% | 300% |
KC Ramon | March 2021 | 899% | 125% | 250% |
Prescribed officers | | | | |
SD Bailey | January 2025 | 199% | 100% | 200% |
I Boninelli (2) | April 2027 | 0 % | 100% | 200% |
VA Chamberlain (3) | October 2027 | 57% | 100% | 200% |
GJ Ehm (4) | March 2019 | 243% | 100% | 200% |
L Eybers | March 2023 | 370% | 100% | 200% |
MC Godoy (5) | October 2027 | 0 % | 100% | 200% |
L Marwick | July 2026 | 108% | 100% | 200% |
S Ntuli (6) | January 2025 | 181% | 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
the quantum of the cash portion and the quantum of the deferred portion as a percentage of base salary based on on-target achievement:
| | | | | | | | | | | |
| Cash | Shares | Total Incentive |
Level | On Target Achievement |
CEO | 100.00% | 200.00% | 300.00% % % |
CFO | 85.00% % | 185.00% % | 270.00% % % |
EVP/COO | 75.00% % | 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”.
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 class | | Authorised | | Issued |
Ordinary shares | | 600,000,000 | | | 417,501,452 | |
A redeemable preference shares | | 2,000,000 | | | — | |
B redeemable preference shares | | 5,000,000 | | | — | |
C redeemable preference shares | | 30,000,000 | | | — | |
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 | | Rand | | Number of Shares | | Rand | | Number of Shares | | Rand |
| | 2021 | | 2020 | | 2019 |
At 1 January | | 416,890,087 | | | 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 Scheme | | 611,365 | | | 152,841 | | | 1,588,872 | | | 397,218 | | | 2,531,235 | | | 632,809 | |
31 December 2021 | | 417,501,452 | | | 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.
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 at | | 31 December 2021 | | 31 December 2020 | | 31 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 Africa | | 44,332,506 | | | 10.62 | | | 39,846,637 | | | 9.56 | | | 30,439,075 | | | 7.33 | |
Coronation Holdings | | 37,322,250 | | | 8.94 | | | n/a | | n/a | | n/a | | n/a |
BlackRock Inc. | | 27,155,066 | | | 6.50 | | | 27,956,084 | | | 6.71 | | | 41,236,154 | | | 9.93 | |
Van Eck Global | | n/a | | n/a | | 26,488,311 | | | 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.
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) Limited | 14 | |
| |
| |
| | | | | |
| 2021 |
| Sales and services rendered to related parties |
(in million) | $ |
Sales and services rendered to related parties | |
Rand Refinery (Pty) Limited | 7 | |
| |
| |
| |
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.
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 $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.
•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.
•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
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
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.
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.
8B. SIGNIFICANT CHANGES
Refer to “Item 18: Financial Statements—Note 35—Subsequent Events”.
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.
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 capital | South African Rands |
600,000,000 ordinary shares of R0.25 each | 150,000,000 |
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
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.
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
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.
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
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”.
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.
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.
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.
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
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
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.
Fees and 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 ADS | Any cash payment |
Registration or transfer fees | Transfer 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 year | Depositary 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 Custodian 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 ADSs | Distribution of securities distributed to holders of deposited securities that are distributed by The Bank of New York Mellon to ADS holders |
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
•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.
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.
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.
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
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
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
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
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.
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.
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:
| | | | | | | | | | | |
• | Daily | | Treasury Manager |
• | Weekly | | Treasurer |
• | Monthly | | Treasurer |
• | Quarterly | | Audit 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.
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
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 2021 | 2020 |
Maturity date | Currency | 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 % |
All less than one year | $ | 1 | | | — | | | 301 | | | 0.10 | | — | | | | | 572 | | | 0.15 | |
| ZAR | 1,337 | | | 3.54 | | | — | | | — | | 2,611 | | | 3.30 | | | 29 | | | 2.00 | |
| AUD | — | | | | | 72 | | | — | | — | | | | | 50 | | | — | |
| BRL | — | | | | | 106 | | | 4.27 | | — | | | | | 32 | | | 1.90 | |
| ARS | 13,256 | | | 34.00 | | | — | | | | 6,679 | | | 34.00 | | | 4,820 | | | 30.00 | |
| CAD | — | | | | | 353 | | | 0.19 | | | | | | | | |
Borrowings maturity profile | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Within one year | | Between One and two years | Between Two and five years | After five years | Total |
Currency | Borrowings 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 | |
BRL | 1 | | | 5.7 | | | — | | | — | | — | | | — | | — | | | — | | 1 | |
TZS | 516 | | | 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.
Interest rate risk | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 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) |
$ | | 51 | | | 7.4 | | | 63 | | | 7.0 | | | 1,717 | | | 4.1 | | | 1,831 | |
AUD | | — | | | — | | | 43 | | | 1.5 | | | — | | | — | | | 43 | |
BRL | | 1 | | | 5.7 | | | — | | | — | | | — | | | — | | | 1 | |
| | | | | | | | | | | | | | |
TZS | | 516 | | | 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)):
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 2021 | | 2020 |
| | Carrying Amount | | Fair value | | Carrying Amount | | Fair value |
(millions) | | $ | | $ | | $ | | $ |
Cash and cash equivalents | | 1,154 | | | 1,154 | | | 1,330 | | | 1,330 | |
Restricted cash | | 58 | | | 58 | | | 73 | | | 73 | |
Deferred compensation asset | | 25 | | | 25 | | | 28 | | | 28 | |
Short-term borrowings | | (51) | | | (51) | | | (142) | | | (142) | |
Long-term borrowings | | (1,858) | | | (1,960) | | | (1,789) | | | (1,989) | |
| | | | | | | | |
Listed investments - FVTOCI | | 116 | | | 116 | | | 186 | | | 186 | |
Listed and unlisted investments | | 1 | | | 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.
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 |
| 2021 | | 2020 |
(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 | |
| | | | |
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:
| | | | | | | | |
Service | Fees (USD) |
| |
Issuance of ADSs | Up to 5 cents per ADS | (1) |
Cancellation of ADSs | Up to 5 cents per ADS | (1) |
Distribution of cash dividends or other cash distributions | Up 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 ADSs | Up to 5 cents per ADS | (2) |
ADR Depositary Services fee | Up 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.
PART II
ITEM 13: DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES
None.
ITEM 14: MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS
None.
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.
•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.
•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
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
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.
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.
8B. SIGNIFICANT CHANGES
Refer to “Item 18: Financial Statements—Note 35—Subsequent Events”.
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.
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 capital | South African Rands |
600,000,000 ordinary shares of R0.25 each | 150,000,000 |
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:
|
| | | | | | | | | |
| Cash | Shares | Total Incentive | Cash | Shares | Total Incentive | Cash | Shares | Total Incentive |
Level | Threshold Achievement | On Target Achievement | Maximum Achievement |
CEO | 50.00% | 100.00% | 150.00% | 100.00% | 200.00% | 300.00% | 150.00% | 300.00% | 450.00% |
CFO | 40.00% | 87.50% | 127.50% | 80.00% | 175.00% | 255.00% | 120.00% | 262.50% | 382.50% |
EVP/COO | 35.00% | 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:
|
| | |
Level | Company performance weighting | Individual performance weighting |
CEO | 70.00% | 30.00% |
CFO | 60.00% | 40.00% |
EVP/COO | 60.00% | 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
|
| | | | | | | | | | | | | | | |
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.
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
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.
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
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”.
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.
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.
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.
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
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
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.
Fees and 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 ADS | Any cash payment |
Registration or transfer fees | Transfer 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 year | Depositary 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 Custodian 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 ADSs | Distribution of securities distributed to holders of deposited securities that are distributed by The Bank of New York Mellon to ADS holders |
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
•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.
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.
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.
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
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
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
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
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.
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.
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:
| | | | | | | | | | | |
• | Daily | | Treasury Manager |
• | Weekly | | Treasurer |
• | Monthly | | Treasurer |
• | Quarterly | | Audit 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.
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
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 2021 | 2020 |
Maturity date | Currency | 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 % |
All less than one year | $ | 1 | | | — | | | 301 | | | 0.10 | | — | | | | | 572 | | | 0.15 | |
| ZAR | 1,337 | | | 3.54 | | | — | | | — | | 2,611 | | | 3.30 | | | 29 | | | 2.00 | |
| AUD | — | | | | | 72 | | | — | | — | | | | | 50 | | | — | |
| BRL | — | | | | | 106 | | | 4.27 | | — | | | | | 32 | | | 1.90 | |
| ARS | 13,256 | | | 34.00 | | | — | | | | 6,679 | | | 34.00 | | | 4,820 | | | 30.00 | |
| CAD | — | | | | | 353 | | | 0.19 | | | | | | | | |
Borrowings maturity profile | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Within one year | | Between One and two years | Between Two and five years | After five years | Total |
Currency | Borrowings 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 | |
BRL | 1 | | | 5.7 | | | — | | | — | | — | | | — | | — | | | — | | 1 | |
TZS | 516 | | | 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.
Interest rate risk | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 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) |
$ | | 51 | | | 7.4 | | | 63 | | | 7.0 | | | 1,717 | | | 4.1 | | | 1,831 | |
AUD | | — | | | — | | | 43 | | | 1.5 | | | — | | | — | | | 43 | |
BRL | | 1 | | | 5.7 | | | — | | | — | | | — | | | — | | | 1 | |
| | | | | | | | | | | | | | |
TZS | | 516 | | | 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)):
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 2021 | | 2020 |
| | Carrying Amount | | Fair value | | Carrying Amount | | Fair value |
(millions) | | $ | | $ | | $ | | $ |
Cash and cash equivalents | | 1,154 | | | 1,154 | | | 1,330 | | | 1,330 | |
Restricted cash | | 58 | | | 58 | | | 73 | | | 73 | |
Deferred compensation asset | | 25 | | | 25 | | | 28 | | | 28 | |
Short-term borrowings | | (51) | | | (51) | | | (142) | | | (142) | |
Long-term borrowings | | (1,858) | | | (1,960) | | | (1,789) | | | (1,989) | |
| | | | | | | | |
Listed investments - FVTOCI | | 116 | | | 116 | | | 186 | | | 186 | |
Listed and unlisted investments | | 1 | | | 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.
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 |
| 2021 | | 2020 |
(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 | |
| | | | |
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:
| | | | | | | | |
Service | Fees (USD) |
| |
Issuance of ADSs | Up to 5 cents per ADS | (1) |
Cancellation of ADSs | Up to 5 cents per ADS | (1) |
Distribution of cash dividends or other cash distributions | Up 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 ADSs | Up to 5 cents per ADS | (2) |
ADR Depositary Services fee | Up 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.
PART II
ITEM 13: DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES
None.
ITEM 14: MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS
None.
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 December | 2018 |
(in million) | Purchases from related party |
|
| $ |
Purchases of goods and services from related parties | |
Rand Refinery (Pty) Limited | 15 |
|
Margaret Water Company | 4 |
|
| 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 December | 2018 |
(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 |
|
Gramalote | 3 |
|
| 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.
•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.
•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
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.
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• | 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.
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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
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.
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
Refer to “Item 18: Financial Statements-Note 35-Recent developments”Statements—Note 35—Subsequent Events”.
ITEM 9: THE OFFER AND LISTING
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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
Not applicable.
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
Not applicable.
Not applicable.
9F. EXPENSES OF THE ISSUE
Not applicable.
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 capital | South African Rands |
600,000,000 ordinary shares of R0.25 each | 150,000,000 |
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
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.
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
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.
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
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”.
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.
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.
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.
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
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
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.
Fees and expenses
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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
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$0.02 (or less) per ADS | Any cash payment |
Registration or transfer fees | Transfer 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 year | Depositary 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
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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
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A fee equivalent to the fee that would have been payable if the securities distributed had been ordinary shares deposited for issuance of ADSs | Distribution of securities distributed to holders of deposited securities that are distributed by The Bank of New York Mellon to ADS holders |
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
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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
•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.
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.
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
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
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
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
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
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.
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10F. | DIVIDENDS AND PAYING AGENTS |
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 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.
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10I. | SUBSIDIARY INFORMATION |
10I. SUBSIDIARY INFORMATION
Not applicable.
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.
|
| | | | | | | | | | |
• | Daily | | TreasurerTreasury Manager |
• | MonthlyWeekly | | Executive CommitteeTreasurer |
• | QuarterlyMonthly | | Treasurer |
• | Quarterly | | Audit 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.
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 | | | | 2018 | 2017 | | 2021 | 2020 |
Maturity date | Currency | 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 date | Currency | 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 % |
All less than one year | $ | — |
| | — | | 131 |
| | 1.99 | — |
| | — | | 57 |
| | 2.39 | All less than one year | $ | 1 | | | — | | | 301 | | | 0.10 | | — | | | 572 | | | 0.15 | |
| ZAR | 121 |
| | 6.44 | | 21 |
| | 5.25 | 123 |
| | 6.46 | | 157 |
| | 5.78 | | ZAR | 1,337 | | | 3.54 | | | — | | | — | | 2,611 | | | 3.30 | | | 29 | | | 2.00 | |
| AUD | — |
| | — | | 52 |
| | 0.20 | — |
| | — | | 22 |
| | 0.25 | | AUD | — | | | 72 | | | — | | — | | | 50 | | | — | |
| BRL | — |
| | — | | 64 |
| | 6.13 | — |
| | — | | 28 |
| | 8.60 | | BRL | — | | | 106 | | | 4.27 | | — | | | 32 | | | 1.90 | |
| | | ARS | 13,256 | | | 34.00 | | | — | | | 6,679 | | | 34.00 | | | 4,820 | | | 30.00 | |
| | | CAD | — | | | 353 | | | 0.19 | | | | |
Borrowings maturity profile | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Within one year | | Between One and two years | Between Two and five years | After five years | Total |
Currency | Borrowings 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 | |
BRL | 1 | | | 5.7 | | | — | | | — | | — | | | — | | — | | | — | | 1 | |
TZS | 516 | | | 12.5 | | | — | | | — | | 107,163 | | | 12.5 | | — | | | — | | 107,679 | |
|
| | | | | | | | | | | | | | | | | | | | | | | |
| Within one year | | Between One and two years | Between Two and five years | After five years | Total |
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 |
|
ZAR | 39 |
| | 10.1 |
| | 443 |
| | 8.9 |
| 572 |
| | 8.7 |
| 214 |
| | 14.7 |
| 1,269 |
|
BRL | 3 |
| | 5.2 |
| | 2 |
| | 5.1 |
| 1 |
| | 4.0 |
| — |
| | — |
| 6 |
|
AUD | 6 |
| | 6.8 |
| | 7 |
| | 6.8 |
| 23 |
| | 80.0 |
| 33 |
| | 6.8 |
| 68 |
|
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.
Interest rate risk | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 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) |
$ | | 51 | | | 7.4 | | | 63 | | | 7.0 | | | 1,717 | | | 4.1 | | | 1,831 | |
AUD | | — | | | — | | | 43 | | | 1.5 | | | — | | | — | | | 43 | |
BRL | | 1 | | | 5.7 | | | — | | | — | | | — | | | — | | | 1 | |
| | | | | | | | | | | | | | |
TZS | | 516 | | | 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)):
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 2021 | | 2020 |
| | Carrying Amount | | Fair value | | Carrying Amount | | Fair value |
(millions) | | $ | | $ | | $ | | $ |
Cash and cash equivalents | | 1,154 | | | 1,154 | | | 1,330 | | | 1,330 | |
Restricted cash | | 58 | | | 58 | | | 73 | | | 73 | |
Deferred compensation asset | | 25 | | | 25 | | | 28 | | | 28 | |
Short-term borrowings | | (51) | | | (51) | | | (142) | | | (142) | |
Long-term borrowings | | (1,858) | | | (1,960) | | | (1,789) | | | (1,989) | |
| | | | | | | | |
Listed investments - FVTOCI | | 116 | | | 116 | | | 186 | | | 186 | |
Listed and unlisted investments | | 1 | | | 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.
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 |
| 2021 | | 2020 |
(millions) | $ | | $ |
| | | |
Other commodity contracts(1) | — | | | (19) | |
|
| | | | | |
| Year ended 31 December |
| 2018 |
| | 2017 |
|
(millions) | $ | | $ |
Unrealised | | | |
Other commodity contracts | 2 |
| | 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 |
|
| | | | |
ITEM 12: DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES
12A. DEBT SECURITIES
Not applicable
Not applicable
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:
|
| | | | | | | |
Service | Fees (USD) |
| |
Issuance of ADSs | Up to 5 cents per ADS | (1) |
Cancellation of ADSs | Up to 5 cents per ADS | (1) |
Distribution of cash dividends or other cash distributions | Up 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 ADSs | Up to 5 cents per ADS | (2) |
ADR Depositary Services fee | Up 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.
PART II
| |
ITEM 13: | DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES |
ITEM 13: DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES
None.
ITEM 14: MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS
None.
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
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 |
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 |
| | 2021 | | 2020 |
(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 | |
Total | 6.92 |
| | 7.07 |
| Total | 8.01 | | | 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
—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.
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.
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.
| | | | | |
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 Audit | Our 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.
|
| | | | | |
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 Audit | Our 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
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ANGLOGOLD ASHANTI LIMITED
Group – income statement
FOR THE YEARS ENDED December 31, DECEMBER 2018, 20172021, 2020 and 20162019 | | | | | | | | | | | | | | | | | | | | |
| | 2021 | | 2020 | | 2019 |
Figures in millions | Notes | | | | | |
| | US Dollars |
Continuing operations | | | | | | |
Revenue from product sales | 3 | 4,029 | | | 4,427 | | | 3,525 | |
Cost of sales | 4 | (2,857) | | | (2,699) | | | (2,626) | |
(Loss) gain on non-hedge derivatives and other commodity contracts | | — | | | (19) | | | 5 | |
Gross profit | 2 | 1,172 | | | 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 disposal | | 11 | | | (1) | | | (6) | |
Other (expenses) income | 5 | (136) | | | (57) | | | (83) | |
Operating profit | | 810 | | | 1,459 | | | 621 | |
Interest income | | 58 | | | 27 | | | 14 | |
Dividend received | | — | | | 2 | | | — | |
Foreign exchange and fair value adjustments | | (43) | | | — | | | (12) | |
Finance costs and unwinding of obligations | 6 | (116) | | | (177) | | | (172) | |
| | | | | | |
Share of associates and joint ventures’ profit | 7 | 249 | | | 278 | | | 168 | |
Profit before taxation | | 958 | | | 1,589 | | | 619 | |
Taxation | 10 | (312) | | | (625) | | | (250) | |
Profit after taxation from continuing operations | | 646 | | | 964 | | | 369 | |
Discontinued operations | | | | | | |
Profit (loss) from discontinued operations | | — | | | 7 | | | (376) | |
Profit (loss) for the year | | 646 | | | 971 | | | (7) | |
| | | | | | |
Allocated as follows: | | | | | | |
Equity shareholders | | | | | | |
- Continuing operations | | 622 | | | 946 | | | 364 | |
- Discontinued operations | | — | | | 7 | | | (376) | |
Non-controlling interests | | | | | | |
- Continuing operations | | 24 | | | 18 | | | 5 | |
| | 646 | | | 971 | | | (7) | |
| | | | | | |
Basic earnings (loss) per ordinary share (cents) | 11 | 148 | | | 227 | | | (3) | |
Earnings per ordinary share from continuing operations | | 148 | | | 225 | | | 87 | |
Earnings (loss) per ordinary share from discontinued operations | | — | | | 2 | | | (90) | |
| | | | | | |
Diluted earnings (loss) per ordinary share (cents) | 11 | 148 | | | 227 | | | (3) | |
Earnings per ordinary share from continuing operations | | 148 | | | 225 | | | 87 | |
Earnings (loss) per ordinary share from discontinued operations | | — | | | 2 | | | (90) | |
| | | | | | |
|
| | | | | | | | | |
Figures in millions | Notes | 2018 |
| | 2017 |
| | 2016 |
|
| | | | Restated |
| | Restated |
|
| | US Dollars |
Revenue from product sales | 3 | 3,943 |
|
| 4,510 |
|
| 4,223 |
|
Cost of sales | 4 | (3,173 | ) |
| (3,736 | ) |
| (3,401 | ) |
Gain (loss) on non-hedge derivatives and other commodity contracts | | 2 |
|
| 10 |
|
| 19 |
|
Gross profit (loss) | 2 | 772 |
| | 784 |
| | 841 |
|
Corporate administration, marketing and other expenses | | (76 | ) | | (64 | ) | | (61 | ) |
Exploration and evaluation costs | | (102 | ) | | (114 | ) | | (133 | ) |
Other operating expenses | 5 | (97 | ) | | (88 | ) | | (110 | ) |
Special items | 6 | (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 obligations | 7 | (178 | ) | | (169 | ) | | (180 | ) |
Fair value adjustments | | (3 | ) | | — |
| | 9 |
|
Share of associates and joint ventures’ profit (loss) | 8 | 122 |
| | 22 |
| | 11 |
|
Profit (loss) before taxation | | 278 |
| | (63 | ) | | 269 |
|
Taxation | 11 | (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) | 12 | 32 |
| | (46 | ) | | 15 |
|
Diluted earnings (loss) per ordinary share (cents) | 12 | 32 |
| | (46 | ) | | 15 |
|
ANGLOGOLD ASHANTI LIMITED
Group – statement of comprehensive income
FOR THE YEARS ENDED December 31, DECEMBER 2018, 20172021, 2020 and 20162019 | | | | | | | | | | | | | | | | | | | | | | | |
Figures in millions | | 2021 | | 2020 | | 2019 | |
| | | | | | | |
| | US Dollars | |
Profit (loss) for the year | | 646 | | | 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 tax | | 541 | | | 1,095 | | | 7 | | |
| | | | | | | |
Allocated as follows: | | | | | | | |
Equity shareholders | | | | | | | |
- Continuing operations | | 517 | | | 1,121 | | | 378 | | |
- Discontinued operations | | — | | | (44) | | | (376) | | |
Non-controlling interests | | | | | | | |
- Continuing operations | | 24 | | | 18 | | | 5 | | |
| | 541 | | | 1,095 | | | 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 millions | Notes | 2021 | | 2020 | | 2019 |
| | US Dollars |
ASSETS | | | | | | |
Non-current assets | | | | | | |
Tangible assets | 13 | 3,460 | | | 2,884 | | | 2,592 | |
Right of use assets | 14 | 175 | | | 142 | | | 158 | |
Intangible assets | 15 | 122 | | | 131 | | | 123 | |
Investments in associates and joint ventures | 17 | 1,647 | | | 1,651 | | | 1,581 | |
Other investments | 18 | 117 | | | 188 | | | 76 | |
Inventories | 19 | 27 | | | 69 | | | 93 | |
Trade, other receivables and other assets | 20 | 237 | | | 235 | | | 122 | |
Deferred taxation | 27 | 7 | | | 7 | | | 105 | |
Cash restricted for use | 21 | 32 | | | 31 | | | 31 | |
| | | | | | |
| | 5,824 | | | 5,338 | | | 4,881 | |
Current assets | | | | | | |
Other investments | 18 | — | | | — | | | 10 | |
Inventories | 19 | 703 | | | 733 | | | 632 | |
Trade, other receivables and other assets | 20 | 260 | | | 229 | | | 250 | |
Cash restricted for use | 21 | 26 | | | 42 | | | 33 | |
Cash and cash equivalents | 22 | 1,154 | | | 1,330 | | | 456 | |
| | 2,143 | | | 2,334 | | | 1,381 | |
Assets held for sale | | — | | | — | | | 601 | |
| | 2,143 | | | 2,334 | | | 1,982 | |
| | | | | | |
Total assets | | 7,967 | | | 7,672 | | | 6,863 | |
EQUITY AND LIABILITIES | | | | | | |
Share capital and premium | 23 | 7,223 | | | 7,214 | | | 7,199 | |
Accumulated losses and other reserves | | (3,214) | | | (3,519) | | | (4,559) | |
Shareholders’ equity | | 4,009 | | | 3,695 | | | 2,640 | |
Non-controlling interests | | 52 | | | 45 | | | 36 | |
Total equity | | 4,061 | | | 3,740 | | | 2,676 | |
| | | | | | |
Non-current liabilities | | | | | | |
Borrowings | 24 | 1,858 | | | 1,789 | | | 1,299 | |
Lease liabilities | 14 | 124 | | | 116 | | | 126 | |
Environmental rehabilitation and other provisions | 25 | 729 | | | 731 | | | 697 | |
Provision for pension and post-retirement benefits | 26 | 77 | | | 83 | | | 100 | |
Trade, other payables and provisions | 28 | 7 | | | 8 | | | 15 | |
Deferred taxation | 27 | 313 | | | 246 | | | 241 | |
| | 3,108 | | | 2,973 | | | 2,478 | |
Current liabilities | | | | | | |
Borrowings | 24 | 51 | | | 142 | | | 734 | |
Lease liabilities | 14 | 61 | | | 37 | | | 45 | |
Trade, other payables and provisions | 28 | 647 | | | 627 | | | 586 | |
Taxation | 29 | 39 | | | 153 | | | 72 | |
| | 798 | | | 959 | | | 1,437 | |
Liabilities held for sale | | — | | | — | | | 272 | |
| | 798 | | | 959 | | | 1,709 | |
| | | | | | |
Total liabilities | | 3,906 | | | 3,932 | | | 4,187 | |
| | | | | | |
Total equity and liabilities | | 7,967 | | | 7,672 | | | 6,863 | |
|
| | | | | | | | | |
Figures in millions | Notes | 2018 |
| | 2017 |
| | 2016 |
|
| | US Dollars |
ASSETS | | | | | | |
Non-current assets | | | | | | |
Tangible assets | 14 | 3,381 |
| | 3,742 |
| | 4,111 |
|
Intangible assets | 15 | 123 |
| | 138 |
| | 145 |
|
Investments in associates and joint ventures | 17 | 1,528 |
| | 1,507 |
| | 1,448 |
|
Other investments | 18 | 141 |
| | 131 |
| | 125 |
|
Inventories | 19 | 106 |
| | 100 |
| | 84 |
|
Trade, other receivables and other assets | 20 | 102 |
| | 67 |
| | 34 |
|
Deferred taxation | 27 | — |
| | 4 |
| | 4 |
|
Cash restricted for use | 21 | 35 |
| | 37 |
| | 36 |
|
| | 5,416 |
| | 5,726 |
| | 5,987 |
|
Current assets | | | | | | |
Other investments | 18 | 6 |
| | 7 |
| | 5 |
|
Inventories | 19 | 652 |
| | 683 |
| | 672 |
|
Trade, other receivables and other assets | 20 | 209 |
| | 222 |
| | 255 |
|
Cash restricted for use | 21 | 31 |
| | 28 |
| | 19 |
|
Cash and cash equivalents | 22 | 329 |
| | 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 premium | 23 | 7,171 |
| | 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 | | | | | | |
Borrowings | 24 | 1,911 |
| | 2,230 |
| | 2,144 |
|
Environmental rehabilitation and other provisions | 25 | 827 |
| | 942 |
| | 877 |
|
Provision for pension and post-retirement benefits | 26 | 100 |
| | 122 |
| | 118 |
|
Trade, other payables and deferred income | 28 | 3 |
| | 3 |
| | 4 |
|
Deferred taxation | 27 | 315 |
| | 363 |
| | 496 |
|
| | 3,156 |
| | 3,660 |
| | 3,639 |
|
Current liabilities | | | | | | |
Borrowings | 24 | 139 |
| | 38 |
| | 34 |
|
Trade, other payables and deferred income | 28 | 594 |
| | 638 |
| | 615 |
|
Taxation | 29 | 60 |
| | 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 millions | Notes | 2021 | | 2020 | | 2019 |
| | | | | | |
| | US Dollars |
Cash flows from operating activities | | | | | | |
Receipts from customers | | 4,054 | | | 4,411 | | | 3,535 | |
Payments to suppliers and employees | | (2,701) | | | (2,583) | | | (2,433) | |
Cash generated from operations | 30 | 1,353 | | | 1,828 | | | 1,102 | |
Dividends received from joint ventures | | 231 | | | 148 | | | 77 | |
Taxation refund | 29 | 20 | | | — | | | 7 | |
Taxation paid | 29 | (336) | | | (431) | | | (228) | |
Net cash inflow (outflow) from operating activities from continuing operations | | 1,268 | | | 1,545 | | | 958 | |
Net cash inflow (outflow) from operating activities from discontinued operations | | — | | | 109 | | | 89 | |
Net cash inflow (outflow) from operating activities | | 1,268 | | | 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 investments | | 22 | | | 9 | | | — | |
Proceeds from disposal of tangible assets | | 25 | | | 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 ventures | | 2 | | | 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 use | | 14 | | | (9) | | | — | |
Interest received | | 58 | | | 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 borrowings | | 822 | | | 2,226 | | | 168 | |
Repayment of borrowings | | (820) | | | (2,310) | | | (123) | |
Repayment of lease liabilities | | (63) | | | (47) | | | (42) | |
Finance costs - borrowings | 24 | (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 year | | 1,330 | | | 456 | | | 329 | |
Cash and cash equivalents at end of year | 22 | 1,154 | | | 1,330 | | | 456 | |
|
| | | | | | | | | |
Figures in millions | Notes | 2018 |
| | 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 operations | 30 | 932 |
| | 1,151 |
| | 1,302 |
|
Dividends received from joint ventures | | 91 |
| | 6 |
| | 37 |
|
Taxation refund | 29 | 5 |
| | 14 |
| | 12 |
|
Taxation paid | 29 | (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 year | 22 | 329 |
| | 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 millions | Share capital and premium | Other capital reserves(1) | Retained earnings (Accumulated losses)(2) | Fair value through OCI | | Actuarial gains (losses) | Foreign currency translation reserve (3) | Total | Non- controlling interests | Total equity |
US Dollars | | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
Balance at 31 December 2018 | 7,171 | | 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) | — | | — | | — | | 8 | | 2 | | 4 | | 14 | | — | | 14 | |
Total comprehensive income (loss) | — | | — | | (12) | | 8 | | 2 | | 4 | | 2 | | 5 | | 7 | |
Shares issued | 28 | | — | | — | | — | | | — | | — | | 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 2019 | 7,199 | | 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 issued | 15 | | — | | — | | — | | | — | | — | | 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 operation | | | 4 | | | | | 4 | | 4 | |
Transfer on disposal and derecognition of equity investments | — | | — | | 6 | | (6) | | | — | | — | | — | | — | | — | |
Translation | — | | (3) | | 2 | | — | | | 1 | | — | | — | | — | | — | |
Balance at 31 December 2020 | 7,214 | | 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 issued | 9 | | — | | — | | — | | | — | | — | | 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 2021 | 7,223 | | 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 2015 | 7,066 |
| 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 issued | 42 |
|
|
|
|
|
|
| 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 2016 | 7,108 |
| 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 issued | 26 |
|
|
|
|
|
|
| 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 2017 | 7,134 |
| 124 |
| (3,359 | ) |
|
| 43 |
| (16 | ) | (1,263 | ) | 2,663 |
| 41 |
| 2,704 |
|
Impact of adopting IFRS 9 | | | 10 |
| 33 |
| (43 | ) | | | — |
| | — |
|
Opening balance under IFRS 9 | 7,134 |
| 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 issued | 37 |
|
|
|
|
|
|
| 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 2018 | 7,171 |
| 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 millions | 2017 |
| | 2016 |
|
Revenue | 4,543 |
| | 4,254 |
|
Gold income | 4,356 |
| | 4,085 |
|
Cost of sales | (3,582 | ) | | (3,263 | ) |
Gain (loss) on non-hedge derivatives and other commodity contracts | 10 |
| | 19 |
|
Gross profit | 784 |
| | 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 sales | 4,510 |
| | 4,223 |
|
Cost of sales | (3,736 | ) | | (3,401 | ) |
Gain (loss) on non-hedge derivatives and other commodity contracts | 10 |
| | 19 |
|
Gross profit | 784 |
| | 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"
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”.
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.
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.
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.
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
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;
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
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.
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.
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.
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
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.
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.
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.
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.
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.
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 millions | Gold income |
US Dollars | 2021 | | 2020 | | 2019 |
Geographical analysis of gold income by origin is as follows: | | | | | |
| | | | | |
Africa(1) | 2,644 | | | 2,769 | | | 2,203 | |
Australia | 890 | | | 989 | | | 851 | |
Americas | 1,028 | | | 1,211 | | | 1,000 | |
| 4,562 | | | 4,969 | | | 4,054 | |
Equity-accounted joint ventures included above | (659) | | | (647) | | | (615) | |
Continuing operations | 3,903 | | | 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: | | | | | |
Australia | 890 | | | 989 | | | 851 | |
| | | | | |
Brazil | 749 | | | 853 | | | 679 | |
Ghana | 565 | | | 536 | | | |
Guinea | 545 | | 0 | | |
Tanzania | 875 | | | 1,133 | | | 849 | |
DRC | 659 | | | 647 | | | 504 | |
| | | | | |
Geographical analysis of gold income by destination is as follows: | | | | | |
South Africa | 1,214 | | | 943 | | | 981 | |
North America | 699 | | | 580 | | | 486 | |
South America | 34 | | | 1 | | | — | |
Australia | 890 | | | 989 | | | 851 | |
Europe | 279 | | | 358 | | | 329 | |
United Kingdom | 1,446 | | | 2,098 | | | 1,407 | |
| 4,562 | | | 4,969 | | | 4,054 | |
Equity-accounted joint ventures included above | (659) | | | (647) | | | (615) | |
Continuing operations | 3,903 | | | 4,322 | | | 3,439 | |
Discontinued operations - South Africa | — | | | 408 | | | 554 | |
Continuing and discontinued operations | 3,903 | | | 4,730 | | | 3,993 | |
| | | | | |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
2 SEGMENTAL INFORMATION (continued)
|
| | | | | | | | |
Figures in millions | Gold income |
US Dollars | 2018 | | 2017 | | 2016 |
Geographical analysis of gold income by origin is as follows: | | | | | |
South Africa | 602 |
| | 1,101 |
| | 1,173 |
|
Continental Africa(1) | 1,983 |
| | 1,895 |
| | 1,663 |
|
Australasia | 780 |
| | 709 |
| | 646 |
|
Americas | 1,021 |
| | 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: | | | | | |
Brazil | 634 |
| | 705 |
| | 659 |
|
Guinea | | | 489 |
| |
|
|
Tanzania | 715 |
| | 664 |
| | 591 |
|
DRC | 468 |
| | | | |
| | | | | |
Geographical analysis of gold income by destination is as follows: | | | | | |
South Africa | 1,445 |
| | 1,659 |
| | 1,719 |
|
North America | 450 |
| | 456 |
| | 893 |
|
Australia | 780 |
| | 709 |
| | 645 |
|
Europe | 387 |
| | 399 |
| | 377 |
|
United Kingdom | 1,324 |
| | 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 millions | By product revenue |
US Dollars | 2021 | | 2020 | | 2019 |
| | | | | |
Africa(1) | 5 | | | 4 | | | 3 | |
Australia | 4 | | | 3 | | | 3 | |
Americas | 119 | | | 99 | | | 81 | |
| 128 | | | 106 | | | 87 | |
Equity-accounted joint ventures included above | (2) | | | (1) | | | (1) | |
Continuing operations | 126 | | | 105 | | | 86 | |
Discontinued operations - South Africa | — | | | 1 | | | 1 | |
| 126 | | | 106 | | | 87 | |
| | | | | |
|
| | | | | | | | |
Figures in millions | By product revenue |
US Dollars | 2018 |
| | 2017 |
| | 2016 |
|
South Africa | 6 |
| | 15 |
| | 23 |
|
Continental Africa(1) | 3 |
| | 3 |
| | 4 |
|
Australasia | 2 |
| | 2 |
| | 2 |
|
Americas | 128 |
| | 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 millions | Cost of sales |
US Dollars | 2021 | | 2020 | | 2019 |
| | | | | |
Africa(1) | 1,650 | | | 1,572 | | | 1,601 | |
Australia | 740 | | | 705 | | | 632 | |
Americas | 822 | | | 764 | | | 822 | |
Corporate and other | (5) | | | (2) | | | (1) | |
| 3,207 | | | 3,039 | | | 3,054 | |
Equity-accounted joint ventures included above | (350) | | | (340) | | | (428) | |
Continuing operations | 2,857 | | | 2,699 | | | 2,626 | |
Discontinued operations - South Africa | — | | | 287 | | | 479 | |
| 2,857 | | | 2,986 | | | 3,105 | |
| | | | | |
| | | | | | | | | | | | | | | | | |
Figures in millions | Gross profit (loss) (2) |
US Dollars | 2021 | | 2020 | | 2019 |
| | | | | |
Africa(1) | 999 | | | 1,201 | | | 605 | |
Australia | 153 | | | 286 | | | 221 | |
Americas | 325 | | | 532 | | | 265 | |
Corporate and other | 6 | | | (2) | | | 1 | |
| 1,483 | | | 2,017 | | | 1,092 | |
Equity-accounted joint ventures included above | (311) | | | (308) | | | (188) | |
Continuing operations | 1,172 | | | 1,709 | | | 904 | |
Discontinued operations - South Africa | — | | | 83 | | | 79 | |
| 1,172 | | | 1,792 | | | 983 | |
| | | | | |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
2 Segmental InformationSEGMENTAL INFORMATION (continued)
| | | | | | | | | | | | | | | | | |
Figures in millions | Amortisation |
US Dollars | 2021 | | 2020 | | 2019 |
| | | | | |
Africa(1) | 268 | | | 349 | | | 367 | |
Australia | 150 | | | 160 | | | 173 | |
Americas | 161 | | | 163 | | | 177 | |
Corporate and other | 3 | | | 2 | | | 3 | |
| 582 | | | 674 | | | 720 | |
Equity-accounted joint ventures included above | (105) | | | (104) | | | (137) | |
Continuing operations | 477 | | | 570 | | | 583 | |
Discontinued operations - South Africa | — | | | — | | | 61 | |
| 477 | | | 570 | | | 644 | |
| | | | | |
| | | | | | | | | | | | | | | | | |
Figures in millions | Total assets (1)(3)(4) |
US Dollars | 2021 | | 2020 | | 2019 |
South Africa | — | | | — | | | 697 | |
Africa | 4,193 | | | 3,956 | | | 3,514 | |
Australia | 1,034 | | | 1,044 | | | 972 | |
Americas | 1,886 | | | 1,626 | | | 1,427 | |
Corporate and other | 854 | | | 1,046 | | | 253 | |
| 7,967 | | | 7,672 | | | 6,863 | |
| | | | | | | | | | | | | | | | | |
Figures in millions | Non-current assets (5) |
US Dollars | 2021 | | 2020 | | 2019 |
Non-current assets considered material, by country are: | | | | | |
South Africa | 61 | | | 59 | | | 25 | |
Foreign entities | 5,607 | | | 5,053 | | | 4,644 | |
| | | | | |
DRC | 1,604 | | | 1,604 | | | 1,506 | |
Ghana | 1,158 | | | 915 | | | 758 | |
Tanzania | 510 | | | 425 | | | 379 | |
Australia | 806 | | | 849 | | | 817 | |
Brazil | 797 | | | 627 | | | 625 | |
|
| | | | | | | | |
Figures in millions | Gross profit (loss) (2) |
US Dollars | 2018 |
| | 2017 |
| | 2016 |
|
South Africa | 21 |
| | (3 | ) | | 149 |
|
Continental Africa(1) | 380 |
| | 386 |
| | 334 |
|
Australasia | 160 |
| | 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 millions | Cost of sales |
| | | Restated |
| | Restated |
|
US Dollars | 2018 |
| | 2017 |
| | 2016 |
|
South Africa | 590 |
| | 1,129 |
| | 1,064 |
|
Continental Africa(1) | 1,607 |
| | 1,513 |
| | 1,334 |
|
Australasia | 622 |
| | 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 millions | Amortisation |
US Dollars | 2018 |
| | 2017 |
| | 2016 |
|
South Africa | 72 |
| | 133 |
| | 167 |
|
Continental Africa(1) | 379 |
| | 421 |
| | 365 |
|
Australasia | 149 |
| | 130 |
| | 126 |
|
Americas(1) | 192 |
| | 273 |
| | 260 |
|
Other, including non-gold producing subsidiaries | 3 |
| | 2 |
| | 5 |
|
| 795 |
| | 959 |
| | 923 |
|
Equity-accounted investments included above | (165 | ) | | (136 | ) | | (114 | ) |
Continuing operations | 630 |
| | 823 |
| | 809 |
|
|
| | | | | | | | |
Figures in millions | Total assets (1)(3)(4) |
US Dollars | 2018 |
| | 2017 |
| | 2016 |
|
South Africa | 1,106 |
| | 1,734 |
| | 1,818 |
|
Continental Africa | 3,135 |
| | 3,153 |
| | 3,090 |
|
Australasia | 888 |
| | 929 |
| | 804 |
|
Americas | 1,286 |
| | 1,258 |
| | 1,273 |
|
Other, including non-gold producing subsidiaries | 228 |
| | 145 |
| | 168 |
|
| 6,643 |
| | 7,219 |
| | 7,153 |
|
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
2 Segmental InformationSEGMENTAL INFORMATION (continued)
| | | | | | | | | | | | | | | | | |
Figures in millions | Capital expenditure |
US Dollars | 2021 | | 2020 | | 2019 |
| | | | | |
Africa(1) | 506 | | | 397 | | | 410 | |
Australia | 185 | | | 143 | | | 149 | |
Americas | 398 | | | 217 | | | 195 | |
Corporate and other | 11 | | | — | | | — | |
Continuing operations | 1,100 | | | 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.
|
| | | | | | | | |
Figures in millions | Non-current assets (5) |
US Dollars | 2018 |
| | 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 millions | Capital expenditure |
US Dollars | 2018 |
| | 2017 |
| | 2016 |
|
South Africa | 73 |
| | 150 |
| | 182 |
|
Continental Africa(1) | 313 |
| | 409 |
| | 291 |
|
Australasia | 156 |
| | 153 |
| | 109 |
|
Americas (1) | 176 |
| | 234 |
| | 225 |
|
Other, including non-gold producing subsidiaries | 3 |
| | 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 millions | 2021 | | 2020 | | 2019 |
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 millions | 2018 |
| | 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 sales | 3,943 |
| | 4,510 |
| | 4,223 |
|
4 COST OF SALES | | | | | | | | | | | | | | | | | |
| US Dollars |
Figures in millions | 2021 | | 2020 | | 2019 |
Cash operating costs | 2,160 | | | 1,881 | | | 1,831 | |
Royalties | 162 | | | 181 | | | 137 | |
Other cash costs | 12 | | | 12 | | | 13 | |
Total cash costs | 2,334 | | | 2,074 | | | 1,981 | |
Retrenchment costs | 2 | | | 2 | | | 4 | |
Rehabilitation and other non-cash costs | 38 | | | 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 change | 6 | | | 21 | | | 5 | |
| 2,857 | | | 2,699 | | | 2,626 | |
|
| | | | | | | | |
| US Dollars |
Figures in millions | 2018 |
| | 2017 |
| | 2016 |
|
| | | Restated |
| | Restated |
|
Cash operating costs | 2,356 |
| | 2,728 |
| | 2,444 |
|
Royalties | 135 |
| | 116 |
| | 105 |
|
Other cash costs | 14 |
| | 19 |
| | 24 |
|
Total cash costs | 2,505 |
| | 2,863 |
| | 2,573 |
|
Retrenchment costs | 4 |
| | 6 |
| | 14 |
|
Rehabilitation and other non-cash costs | 20 |
| | 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 change | 14 |
| | 15 |
| | (38 | ) |
| 3,173 |
| | 3,736 |
| | 3,401 |
|
5 OTHER OPERATING EXPENSESEXPENSE (INCOME) | | | | | | | | | | | | | | | | | |
| US Dollars |
Figures in millions | 2021 | | 2020 | | 2019 |
Care and maintenance (1) | 45 | | | — | | | 47 | |
Governmental fiscal claims | 7 | | | 6 | | | 12 | |
Cost of old tailings operations | 9 | | | 14 | | | 9 | |
Guinea public infrastructure contribution | — | | | — | | | 8 | |
Pension and medical defined benefit provisions | 7 | | | 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 costs | 10 | | | 9 | | | 11 | |
Refund from insurance claim | — | | | (5) | | | — | |
Other indirect taxes | 18 | | | 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.
|
| | | | | | | | |
| US Dollars |
Figures in millions | 2018 |
| | 2017 |
| | 2016 |
|
Care and maintenance costs (note 34) | 74 |
| | 62 |
| | 70 |
|
Pension and medical defined benefit provisions | 10 |
| | 9 |
| | 25 |
|
Governmental fiscal claims, care and maintenance of old tailings operations and other | 13 |
| | 17 |
| | 15 |
|
| 97 |
| | 88 |
| | 110 |
|
6 SPECIAL ITEMS
|
| | | | | | | | |
| US Dollars |
Figures in millions | 2018 |
|
| 2017 |
|
| 2016 |
|
Impairment and derecognition of assets | 104 |
| | 297 |
| | 3 |
|
Impairment of other investments | — |
| | 3 |
| | — |
|
Retrenchment and related costs | 34 |
| | 88 |
| | 1 |
|
Legal fees (recoveries) and other costs related to contract terminations and settlement costs | 17 |
| | 71 |
| | 11 |
|
Write-down of inventories | 1 |
| | 3 |
| | 12 |
|
Net (profit) loss on disposal of assets | 20 |
| | (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 millions | 2021 | | 2020 | | 2019 |
Finance costs | | | | | |
Finance costs on bonds, bank loans and other | 109 | | | 124 | | | 135 | |
Amortisation of fees | 6 | | | 23 | | | 4 | |
Lease finance charges | 9 | | | 8 | | | 10 | |
Less: interest captalised | (14) | | | (17) | | | (6) | |
| 110 | | | 138 | | | 143 | |
Unwinding of obligations | 6 | | | 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 millions | 2018 |
| | 2017 |
| | 2016 |
|
Finance costs | | | | | |
Finance costs on bonds, corporate notes, bank loans and other | 128 |
| | 132 |
| | 148 |
|
Amortisation of fees | 7 |
| | 4 |
| | 4 |
|
Finance lease charges | 5 |
| | 6 |
| | 6 |
|
| 140 |
| | 142 |
| | 158 |
|
Unwinding of obligations | 38 |
| | 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 millions | 2021 | | 2020 | | 2019 |
| | | | | |
Revenue | 697 | | | 677 | | | 616 | |
Operating costs and other expenses | (370) | | | (353) | | | (452) | |
Profit on sale of joint ventures | — | | | 19 | | | — | |
Net interest received | 7 | | | 5 | | | 10 | |
Profit (loss) before taxation | 334 | | | 348 | | | 174 | |
Taxation | (85) | | | (70) | | | (35) | |
Profit (loss) after taxation | 249 | | | 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 millions | 2021 | | 2020 | | 2019 |
| | | | | |
Employee benefits including Executive Directors’ and Prescribed Officers’ salaries and other benefits | 593 | | | 644 | | | 697 | |
| | | | | |
- current medical expenses | 25 | | | 23 | | | 29 | |
- defined benefit post-retirement medical expenses | 6 | | | 7 | | | 8 | |
| | | | | |
- defined contribution | 20 | | | 25 | | | 29 | |
| | | | | |
Retrenchment costs | 16 | | | 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 operations | 682 | | | 717 | | | 812 | |
|
| | | | | | | | |
| US Dollars |
Figures in millions | 2018 |
| | 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 taxation | 102 |
|
| (16 | ) |
| (2 | ) |
Taxation | (9 | ) | | 23 |
| | 7 |
|
Profit (loss) after taxation | 93 |
|
| 7 |
|
| 5 |
|
(Impairment) impairment reversal of investments in associates | 15 |
| | 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 millions | 2018 |
| | 2017 |
| | 2016 |
|
Employee benefits including Executive Directors’ and Prescribed Officers’ salaries and other benefits | 797 |
| | 1,024 |
| | 918 |
|
Health care and medical scheme costs |
| | | | |
- current medical expenses | 39 |
| | 58 |
| | 51 |
|
- defined benefit post-retirement medical expenses | 9 |
| | 10 |
| | 10 |
|
Pension and provident plan costs |
| | | | |
- defined contribution | 37 |
| | 53 |
| | 48 |
|
- defined benefit pension plans | — |
| | — |
| | 15 |
|
Retrenchment costs | 30 |
| | 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 expenses | 947 |
|
| 1,270 |
|
| 1,095 |
|
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
10 Share-based payments
9 SHARE-BASED PAYMENTS | | | | | | | | | | | | | | | | | |
| US Dollars |
Figures in millions | 2021 | | 2020 | | 2019 |
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 millions | 2018 |
| | 2017 |
| | 2016 |
|
Equity-settled share incentive schemes | | | | | |
Bonus Share Plan (BSP) | 20 |
| | 26 |
| | 26 |
|
Long Term Incentive Plan (LTIP) | 1 |
| | (1 | ) | | 7 |
|
Other | 1 |
| | 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 value | R | 119.14 |
| | R | 152.87 |
| | R | 229.22 |
|
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 date | 22 Feb 2028 |
| | 1 Mar 2027 |
| | 1 Mar 2026 |
|
|
| | | | | | | | |
| Number of shares |
| 2018 |
| | 2017 |
| | 2016 |
|
Awards outstanding at beginning of year | 4,479,679 |
| | 4,198,285 |
| | 4,708,799 |
|
Awards granted during the year | 2,492,584 |
| | 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 year | 4,557,919 |
| | 4,479,679 |
| | 4,198,285 |
|
Awards exercisable at end of year | 1,588,512 |
| | 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 |
| |
| | R | 129.94119.14 |
|
Vesting date 50% | | | | | 22 Feb 2019 |
Vesting date 50% | | | | | 22 Feb 2020 |
Expiry date | | | | | 22 Feb 2028 |
| | | | | |
| | | | | | | | | | | | | | | | | |
| Number of shares |
| 2021 | | 2020 | | 2019 |
Awards outstanding at beginning of year | 1,005,977 | | | 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 year | 849,683 | | | 1,005,977 | | | 2,141,415 | |
Awards exercisable at end of year | 849,683 | | | 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.
Equity-settled incentive schemes (continued) | | | | | | | | | | | | | | | | | |
Award date (unvested awards and awards vested during the year) | 2021 | | 2020 | | 2019 |
Calculated fair value | R | 308.97 | | | R | 325.97 | | | R | 204.42 | |
| | | | | |
DSP 2 year | | | | | |
Vesting date 50% | 24 Feb 2022 | | 25 Feb 2021 | | 21 Feb 2020 |
Vesting date 50% | 24 Feb 2023 | | 25 Feb 2022 | | 21 Feb 2021 |
| | | | | |
DSP 3 year | | | | | |
Vesting date 33% | 24 Feb 2022 | | 25 Feb 2021 | | 21 Feb 2020 |
Vesting date 33% | 24 Feb 2023 | | 25 Feb 2022 | | 21 Feb 2021 |
Vesting date 34% | 24 Feb 2024 | | 25 Feb 2023 | | 21 Feb 2022 |
| | | | | |
DSP 5 year | | | | | |
Vesting date 20% | 24 Feb 2022 | | 25 Feb 2021 | | 21 Feb 2020 |
Vesting date 20% | 24 Feb 2023 | | 25 Feb 2022 | | 21 Feb 2021 |
Vesting date 20% | 24 Feb 2024 | | 25 Feb 2023 | | 21 Feb 2022 |
Vesting date 20% | 24 Feb 2025 | | 25 Feb 2024 | | 21 Feb 2023 |
Vesting date 20% | 24 Feb 2026 | | 25 Feb 2025 | | 21 Feb 2024 |
| | | | | |
Expiry date | 24 Feb 2031 | | 25 Feb 2030 | | 21 Feb 2029 |
| | | | | | | | | | | | | | | | | |
| Number of shares |
| 2021 | | 2020 | | 2019 |
Awards outstanding at beginning of year | 2,289,762 | | | 1,599,360 | | | — | |
Awards granted during the year | 1,185,348 | | | 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 year | 2,692,383 | | | 2,289,762 | | | 1,599,360 | |
Awards exercisable at end of year | 588,694 | | | 183,439 | | | — | |
Long Term Incentive Plan (LTIP) | | | | | | | | | | | | | | | | | |
Award date (unvested awards and awards vested during the year) | | | | | 2015 |
Calculated fair value | | | | | R | 129.94 | |
Vesting date | | | | | 3 Mar 2018 |
|
Expiry date | | | | | 3 Mar 2025 |
|
| | | | | | | | | | | | | | | | | |
| Number of shares |
| 2021 | | 2020 | | 2019 |
Awards outstanding at beginning of year | 111,562 | | | 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 year | 109,229 | | | 111,562 | | | 229,639 | |
Awards exercisable at end of year | 109,229 | | | 111,562 | | | 229,639 | |
|
| | | | | | | | |
| Number of shares |
| 2018 |
| | 2017 |
| | 2016 |
|
Awards outstanding at beginning of year | 2,466,357 |
| | 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 year | 447,842 |
| | 2,466,357 |
| | 4,363,330 |
|
Awards exercisable at end of year | 447,842 |
| | 455,914 |
| | 320,169 |
|
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
10 Share-based payments (continued)
10 TAXATION | | | | | | | | | | | | | | | | | |
Figures in millions | US Dollars |
| 2021 | | 2020 | | 2019 |
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 taxation | 252 | | | 553 | | | 299 | |
Prior year (over) under provision | (3) | | | 8 | | | (1) | |
Deferred taxation | | | | | |
Temporary differences | 52 | | | 9 | | | (28) | |
Prior year under (over) provision | 4 | | | (6) | | | 1 | |
Change in estimate | 6 | | | (14) | | | 9 | |
Change in statutory tax rate | 2 | | | — | | | 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 year | 95,378 |
| | 97,651 |
| | 145,040 |
|
Awards granted during the year | 80,809 |
| | 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 year | 112,578 |
| | 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: |
| R | 128.62 |
| | R | 152.58 |
|
Vesting date |
| 1 March 2020 |
| | 1 March 2019 |
|
|
| | | | | | |
| Number of units |
| 2018 |
| 2017 |
| 2016 |
|
Share units outstanding at beginning of year | 4,469,618 |
| 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 year | 3,815,761 |
| 4,469,618 |
| 2,464,630 |
|
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
11 TAXATION
|
| | | | | | | | |
Figures in millions | US 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 taxation | 243 |
| | 201 |
| | 246 |
|
Prior year (over) under provision | 1 |
| | (26 | ) | | (10 | ) |
Deferred taxation | | | | | |
Temporary differences | (4 | ) | | 20 |
| | (65 | ) |
Prior year (over) under provision | 4 |
| | 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 millions | US Dollars |
Reconciliation to South African statutory rate | 2021 | | 2020 | | 2019 |
| | | | | |
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 adjustments | 6 | | | 28 | | | 11 | |
Current year tax losses (expense) not recognised: | | | | | |
Obuasi | 6 | | | (6) | | | 14 | |
AngloGold Ashanti Holdings plc | 25 | | | 31 | | | 29 | |
North America | 13 | | | 4 | | | 6 | |
Siguiri (4) | (37) | | | (8) | | | — | |
SA Corporate | 18 | | | — | | | — | |
| | | | | |
Change in planned utilisation of deferred tax assets and impact of estimated deferred tax rate change | 6 | | | (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 change | 2 | | | — | | | 2 | |
Adjustment in respect of prior years | — | | | 2 | | | — | |
Other | (1) | | | 3 | | | (2) | |
Income tax expense | 312 | | | 625 | | | 250 | |
|
| | | | | | | | |
Figures in millions | US Dollars |
Reconciliation to South African statutory rate | 2018 |
| | 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 adjustments | 20 |
| | 7 |
| | (20 | ) |
Current year tax losses not recognised (recognised) in deferred tax assets: | | | | | |
Obuasi mine | 13 |
| | 18 |
| | 22 |
|
AngloGold Ashanti Holdings plc(3) | 36 |
| | — |
| | — |
|
North America | 6 |
| | — |
| | — |
|
Tax exempt entities: |
| |
| |
|
AngloGold Ashanti Holdings plc(3) | — |
| | 31 |
| | 37 |
|
Other | 6 |
| | (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 years | 1 |
| | (9 | ) | | (5 | ) |
Income tax expense | 128 |
| | 108 |
| | 189 |
|
| | | | | |
| | | | | |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
11 Taxation (continued)