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

As filed with the Securities and Exchange Commission on 2730 March 2020
2022
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 20-F
☐REGISTRATION STATEMENT PURSUANT TO SECTION 12(B) OR 12(G) OF THE SECURITIES EXCHANGE ACT OF 1934 OR
☒OR
☒ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 OR
☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 OR
☐SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE FINANCIAL YEAR ENDED 31 December 20192021
Commission file number: 1-14846
AngloGold Ashanti Limited
(Exact Name of Registrant as Specified in its Charter)
Republic of South Africa
(Jurisdiction of Incorporation or Organisation)
76 Rahima Moosa Street, Newtown,112 Oxford Road , Houghton Estate, Johannesburg, 20012198
(P.O. Box 62117, Marshalltown, 2107)Private Bag X 20, Rosebank, 2196)
South Africa
(Address of Principal Executive Offices)
Kandimathie Christine Ramon, Chief Financial Officer, Telephone: +27 11 6376019+27 116376019
E-mail: cramon@anglogoldashanti.com 76 Rahima Moosa Street, Newtown, , 112 Oxford Road, Houghton Estate, Johannesburg 2001, , 2198, South Africa
(Name, Telephone, E-mail and/or Facsimile number and Address of Company Contact Person)
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading SymbolsName of each exchange on which registered
American Depositary SharesAUNew York Stock Exchange
Ordinary SharesAUNew York Stock Exchange*
5.375%3.375% Notes due 20202028AU/2028New York Stock Exchange
5.125%3.75% Notes due 20222030AU/2230New York Stock Exchange
6.50% Notes due 2040AU/40New York Stock Exchange
*    Not for trading, but only in connection with the registration of American Depositary Shares pursuant to the requirements of the Securities and Exchange Commission


Securities registered pursuant to Section 12(g) of the Act:
None
Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act:
None
Indicate the number of outstanding shares of each of the issuer’s classes of capital or common stock as of the close of the period covered by the annual report:
Ordinary Shares of 25 ZAR cents each415,301,215417,501,452 
A Redeemable Preference Shares of 50 ZAR cents each2,000,000
B Redeemable Preference Shares of 1 ZAR cent each778,896

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


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

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



Table of Contents
TABLE OF CONTENTS
Page
4
6
7
8
78
10
Currencies
11
Abbreviations
12
Item 1:
1316
Item 2:
1316
Item 3:
1316
3A.[Reserved]
Selected financial data16
13
3B.
1716
3C.
1716
3D.
17
Item 4:
4346
4A.
4346
4B.
4548
4C.
10488
4D.
10589
Item 4A:
133182
Item 5:
134183
5A.
135184
5B.
185238
5C.
192247
5D.
192247
5E.
192247
5F.Item 6:
192
Item 6:
Directors, senior management and employees
193248
6A.
Directors and senior management
194248
6B.
201255
6C.
203257
6D.
208262
6E.
209263
Item 7:
213266
7A.
214267
7B.
215268
7C.
216269
Item 8:
217270
8A.
218271
Legal proceedings
Legal proceedings272
219
224277
8B.
225278




2
Table of Contents
Item 9:
226279
9A.
226279
9B.
226279
9C.
226279
9D.
226279
9E.
226279
9F.
226279
Item 10:
227280
10A.
227280
10B.
227280
10C.
232286
10D.
241296
10E.
242297
10F.
247302
10G.
247302
10H.
247302
10I.
247302
Item 11:
248303
Item 12:
252307
12A.
252307
12B.
252307
12C.
252307
12D.
252307
12D.3
252307
12D.4
252307
Item 13:
253308
Item 14:
254309
Item 15:
255310
Item 16A:
257312
Item 16B:
258313
Item 16C:
259314
Item 16D:
260314
Item 16E:
260314
Item 16F:
260314
Item 16G:
260315
Item 16H:
260315
Item 16I:
315
Item 17:
261316
Item 18:
F-1
Item 19
E-1





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PRESENTATION OF INFORMATION


AngloGold Ashanti Limited


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


IFRS financial statements


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


Currency


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


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


Non-GAAP financial measures


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


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


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


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


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



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



A reconciliation of both cost of sales and total cash costs as included in the company’s audited financial statements to “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 20192021 is presented herein. See “Item 5A: Operating Results-Non-GAAPResults—Non-GAAP analysis”.


DiscontinuedOperations

On 12 February 2020, AngloGold Ashanti announced that it had reached an agreement to sell its remaining South African producing assets and related liabilities to Harmony Gold Mining Company Limited.Limited (“Harmony”). On 30 September 2020, the transaction closed and, on 1 October 2020, Harmony took effective control of AngloGold Ashanti’s remaining South African producing assets and related liabilities. The South African asset sale was assessed as a major geographical area of operations and part of a single co-ordinated plan to dispose of a major geographical area of operations and accordingly, it was classified as a discontinued operation.

The financial information contained herein for the years ended 31 December 2019, 2018 and 2017 has been restated to separate continuing operations from discontinued operations in accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations, as a consequence of the classification of the sale of theoperations. Accordingly, AngloGold Ashanti’s remaining South African producing assets and related liabilities were recorded as a discontinued operation.operations for the years ended and as at 31 December 2020 and 31 December 2019. In addition, AngloGold Ashanti sold its interests in the Morila and Sadiola gold mines in Mali in November and December 2020, respectively. None of AngloGold Ashanti’s Malian assets were recorded as discontinued operations.


Shares and shareholders


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




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CERTAIN FORWARD-LOOKING STATEMENTS


Certain statements contained in this document,annual report on Form 20-F, other than statements of historical fact, including, without limitation, those concerning the economic outlook for the gold mining industry, expectations regarding gold prices, production, total cash costs, all-in sustaining costs, all-in costs, cost savings and other operating results, return on equity, productivity improvements, growth prospects and outlook of AngloGold Ashanti’s operations, individually or in the aggregate, including the achievement of project milestones, commencement and completion of commercial operations of certain of AngloGold Ashanti’s exploration and production projects and the completion of acquisitions, dispositions or joint venture transactions, AngloGold Ashanti’s liquidity and capital resources and capital expenditures, the consequences of the COVID-19 pandemic and the outcome and consequenceconsequences of any potential or pending litigation or regulatory proceedings or environmental, health and safety issues, are forward-looking statements regarding AngloGold Ashanti’s operations, economic performance and financial condition.


These forward-looking statements or forecasts involve known and unknown risks, uncertainties and other factors that may cause AngloGold Ashanti’s actual results, performance or achievements to differ materially from the anticipated results, performance or achievements expressed or implied in these forward-looking statements. Although AngloGold Ashanti believes that the expectations reflected in such forward-looking statements and forecasts are reasonable, no assurance can be given that such expectations will prove to have been correct. Accordingly, results could differ materially from those set out in the forward-looking statements as a result of, among other factors, changes in economic, social, and political and market conditions, (including as a result of the COVID-19 pandemic),including related to international conflicts, the success of business and operating initiatives, changes in the regulatory environment and other government actions, including environmental approvals, fluctuations in gold prices and exchange rates, (including as a result of the COVID-19 pandemic), the outcome of pending or future litigation proceedings, any supply chain disruptions, any public health crises, pandemics or epidemics (including the COVID-19 pandemic), and other business and operational risk managementrisks and other factors, as described inincluding mining accidents. For a discussion of such risk factors, refer to “Item 3D: Risk Factors” and elsewhere in this annual report (including as a result of the COVID-19 pandemic).report. These factors are not necessarily all of the important factors that could cause AngloGold Ashanti’s actual results to differ materially from those expressed in any forward-looking statements. Other unknown or unpredictable factors could also have material adverse effects on future results. Consequently, readers are cautioned not to place undue reliance on forward-looking statements.


AngloGold Ashanti undertakes no obligation to update publicly or release any revisions to these forward-looking statements to reflect events or circumstances after the date of this annual report on Form 20-F or to reflect the occurrence of unanticipated events, except to the extent required by applicable law. All subsequent written or oral forward-looking statements attributable to AngloGold Ashanti or any person acting on its behalf are qualified by the cautionary statements herein.




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GLOSSARY OF SELECTED TERMS


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

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

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

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


Currencies



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


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



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



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



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




11
Table of Contents
Abbreviations

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



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



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



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



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




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


Not applicable.



ITEM 2: OFFER STATISTICS AND EXPECTED TIMETABLE


Not applicable.







ITEM 3: KEY INFORMATION



3A.    [Reserved]

3A.SELECTED FINANCIAL DATA


The selected financial information set forth below for the years ended and as at 31 December 2019, 2018 and 2017 has been derived from, and should be read in conjunction with, the IFRS financial statements included under Item 18 of this annual report. The selected financial information for the years ended and as at 31 December 2016 and 2015 has been derived from the IFRS financial statements not included in this annual report.








3B.    CAPITALISATION AND INDEBTEDNESS
  Year ended 31 December
 2019
 2018
 2017
 
2016 (1)

 
2015 (1)

 $
 $
 $
 $
 $
  (in millions, except share and per share amounts)
Consolidated income statement         
Revenue from product sales3,525
 3,336
 3,394
 4,223
 4,015
Cost of sales(2,626) (2,584) (2,607) (3,401) (3,294)
Gain (loss) on non-hedge derivatives and other commodity contracts5
 (2) —
 19
 (7)
Gross profit904
 750
 787
 841
 714
Corporate administration, marketing and other expenses(82) (76) (64) (61) (78)
Exploration and evaluation costs(112) (98) (105) (133) (132)
Impairment, derecognition of assets and p/l on disposal(6) (7) (2) —
 —
Other expenses (income)(83) (79) (150) —
 —
Other operating expenses—
 —
 —
 (110) (96)
Special items—
 —
 —
 (42) (71)
Operating profit (loss)621
 490
 466
 495
 337
Dividends received—
 2
 —
 —
 —
Interest income14
 8
 8
 22
 28
Foreign exchange losses(12) (9) (11) (88) (17)
Finance costs and unwinding of obligations(172) (168) (157) (180) (245)
Fair value adjustments—
 —
 —
 9
 66
Share of associates and joint ventures’ profit (loss)168
 122
 22
 11
 88
Profit (loss) before taxation619
 445
 328
 269
 257
Taxation(250) (212) (163) (189) (211)
Profit (loss) after taxation from continuing operations369
 233
 165
 80
 46
Discontinued operations         
Profit (loss) from discontinued operations(376) (83) (336)   (116)
Profit (loss) for the year(7) 150
 (171) 80
 (70)
          
Allocated as follows         
Equity shareholders         
- Continuing operations364
 216
 145
 63
 31
- Discontinued operations(376) (83) (336) —
 (116)
Non-controlling interests         
- Continuing operations5
 17
 20
 17
 15
 (7) 150
 (171) 80
 (70)
          
Basic earnings (loss) per ordinary share (U.S. cents)(3) 32
 (46) 15
 (20)
Earnings (loss) per ordinary share from continuing operations87
 52
 35
 15
 8
Earnings (loss) per ordinary share from discontinued operations(90) (20) (81) —
 (28)
          
Diluted earnings (loss) per ordinary share (U.S. cents)(3) 32
 (46) 15
 (20)
Earnings (loss) per ordinary share from continuing operations87
 52
 35
 15
 8
Earnings (loss) per ordinary share from discontinued operations(90) (20) (81) —
 (28)
Dividend per ordinary share (U.S. cents)7
 6
 10
 —
 —

(1)
The selected financial information presented for the years ended 31 December 2016 and 2015 has not been reclassified for the changes in disclosure of "Special items" or restated to reflect the disposal of the South African assets and liabilities as a discontinued operation, as such financial information cannot be provided on a reclassified or restated basis without unreasonable effort and expense. The discontinued operation reported in 2015 related to the sale of Cripple Creek &Victor gold mine to Newmont Corp.


 As at 31 December
 2019
 2018
 2017
 2016
 2015
 $
 $
 $
 $
 $
 (in millions, except share and per share amounts)
Consolidated balance sheet data         
ASSETS         
Non-current assets         
Tangible assets2,592
 3,381
 3,742
 4,111
 4,058
Right of use assets158
 —
 —
 —
 —
Intangible assets123
 123
 138
 145
 161
Investments in associates and joint ventures1,581
 1,528
 1,507
 1,448
 1,465
Other investments76
 141
 131
 125
 91
Inventories93
 106
 100
 84
 90
Trade, other receivables and other assets122
 102
 67
 34
 13
Deferred taxation105
 —
 4
 4
 1
Cash restricted for use31
 35
 37
 36
 37
Other non-current assets—
 —
 —
 —
 18
 4,881
 5,416
 5,726
 5,987
 5,934
Current assets         
Other investments10
 6
 7
 5
 1
Inventories632
 652
 683
 672
 646
Trade, other receivables and other assets250
 209
 222
 255
 196
Cash restricted for use33
 31
 28
 19
 23
Cash and cash equivalents456
 329
 205
 215
 484
 1,381
 1,227
 1,145
 1,166
 1,350
Assets held for sale601
 —
 348
 —
 —
 1,982
 1,227
 1,493
 1,166
 1,350
Total assets6,863
 6,643
 7,219
 7,153
 7,284
EQUITY AND LIABILITIES         
Share capital and premium7,199
 7,171
 7,134
 7,108
 7,066
Accumulated losses and other reserves(4,559) (4,519) (4,471) (4,393) (4,636)
Shareholders’ equity2,640
 2,652
 2,663
 2,715
 2,430
Non-controlling interests36
 42
 41
 39
 37
Total equity2,676
 2,694
 2,704
 2,754
 2,467
Non-current liabilities         
Borrowings1,299
 1,911
 2,230
 2,144
 2,637
Lease liabilities126
 —
 —
 —
 —
Environmental rehabilitation and other provisions697
 827
 942
 877
 847
Provision for pension and post-retirement benefits100
 100
 122
 118
 107
Trade, other payables and provisions15
 3
 3
 4
 5
Deferred taxation241
 315
 363
 496
 514
 2,478
 3,156
 3,660
 3,639
 4,110
Current liabilities         
Borrowings734
 139
 38
 34
 100
Lease liabilities45
 —
 —
 —
 —
Trade, other payables and provisions586
 594
 638
 615
 516
Taxation72
 60
 53
 111
 91
 1,437
 793
 729
 760
 707
Liabilities held for sale272
 —
 126
 —
 —
 1,709
 793
 855
 760
 707
Total liabilities4,187
 3,949
 4,515
 4,399
 4,817
Total equity and liabilities6,863
 6,643
 7,219
 7,153
 7,284
Number of ordinary shares as adjusted to reflect changes in share capital415,301,215
 412,769,980
 410,054,615
 408,223,760
 405,265,315
Share capital (exclusive of long-term debt and redeemable preference shares)17
 16
 16
 16
 16
Net assets2,676
 2,694
 2,704
 2,754
 2,467

Annual dividends

The table below sets forth the amounts of interim, final and total dividends declared in respect of the past five years in cents per ordinary share.
Year ended 31 December (1)
2019
 2018
 2017
 2016
 2015
South African cents per ordinary share95
 70
 130
 —
 —
          
US cents per ordinary share(2)
7
 6
 10
 —
 —

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

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



3B.CAPITALISATION AND INDEBTEDNESS


Not applicable.










3C.REASONS FOR THE OFFER AND USE OF PROCEEDS

3C.    REASONS FOR THE OFFER AND USE OF PROCEEDS

Not applicable.













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3D.RISK FACTORS


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


SUMMARY OF RISK FACTORS

1.    Risks Related to AngloGold Ashanti’s Industry

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

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

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

The market price of gold has been and continues to be significantly volatile. During 2019, the market spot gold price traded from a low of $1,270.20 per ounce to a high of $1,552.35 per ounce, remaining well below a peak of $1,900 per ounce in September 2011. Between 1 January 2020 and 19 March 2020, the market spot gold price traded between a low of $1,469.80 per ounce and a high of $1,679.60 per ounce. On 19 March 2020 the afternoon price for gold on the London Bullion Market was $1,474.25 per ounce. In addition to protracted declines such as the one experienced from 2011 through 2015, the price of gold is also often subject to sharp, short-term changes. For example, the market spot gold price decreased from a high of $1,687.00 per ounce on 6 March 2020 to a low of $1,469.80 per ounce on 19 March 2020 in the midst of a wider market dislocation related to the COVID-19 pandemic and despite the alleged investor perception of gold as a relatively safe haven in periods of market volatility.

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

In addition, any announcements or proposals by central banks, such as the U.S. Federal Reserve, or any of its board members or regional presidents or other similar officials in other major economies, may materially and adversely affect the price of gold and, as a result, AngloGold Ashanti’s financial condition or reputation.
•Compliance with tailings management requirements and resultsstandards, and potential liabilities in the event of operations.

Events that affect the supply and demand of gold, such as government intervention, may havea failure to timely comply or an impact on the price of gold. Demand for gold is also largely impacted by trends in China and India, which account for the highest gold consumption worldwide. Demand for gold may be particularly affected by government policies in these countries. For example, according to the World Gold Council, gold demand in China fell 38 percent in 2014 compared to 2013 and demand for gold bars and coins fell by 50 percent

due in part to the Chinese government’s anti-corruption programme, which put limited pressure on demand for gold ornaments and so-called “gift bars”. These and similar policies in India, China or other large gold-importing countriesincident involving a tailings storage facility, could adversely affect demand for, and consequently prices of, gold and, as a result, may adversely affectimpact AngloGold Ashanti’s financial condition, and results of operations.operations and reputation.

Furthermore, the shift•AngloGold Ashanti’s ability to replace Mineral Reserve is subject to uncertainty and risks inherent in demand from physical gold to gold-related investmentsexploration, technical and speculative instruments may exacerbate the volatility of the gold price. For example, the Finance Ministry in India announced an offering of sovereign gold bonds as an alternative to the purchase of physical gold in March 2015 and conducted several follow-on offerings in 2016. Thiseconomic feasibility studies and other project evaluation activities as well as competition within the industry for attractive mining properties.
•Mining is inherently hazardous and the related risks of events that cause disruptions to AngloGold Ashanti’s mining operations may adversely impact cash flows and overall profitability.
•Mining operations and projects are vulnerable to supply chain disruption such that operations and development projects could be adversely affected by shortages of, as well as the lead times to deliver, strategic spares, critical consumables, mining equipment or metallurgical plant.
•AngloGold Ashanti’s operations are vulnerable to infrastructure constraints.
•AngloGold Ashanti faces strong competition and industry consolidation.

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

•AngloGold Ashanti’s mineral deposits, Mineral Reserve and mining operations are located in countries where political, tax and economic laws and policies may change rapidly and unpredictably and such changes and policies may adversely affect both the terms of its mining concessions, as well as its ability to conduct operations in certain countries.
•The prevalence of occupational health diseases and other diseases and the Indian government contributed to a 22 percent decline in gold jewellery demand in India between 2015potential costs and 2016. Slower consumption of physical gold in India, resulting from a move toward gold-tracking investments or otherwise,liabilities related thereto may have an adverse impacteffect on global demand for,the business and pricesresults of gold.operations of AngloGold Ashanti.

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

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

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



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


4.    Market Risks

•The price of silver has also experienced significantgold, AngloGold Ashanti’s principal product, and other commodity market price fluctuations in past years.  During 2019,could adversely affect the price varied between a lowprofitability of $14.35 per ounce and a high of $19.57 per ounce. On 19 March 2020, the price of silver was $12.11 per ounce.operations.

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

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


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

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

Exchange rate movements may have a material impact on AngloGold Ashanti’s operating results.  For example, based on average exchange rates received in 2019, the company estimates that a one percent strengthening of all of the South African rand, Brazilian real, the Argentinian peso or the Australian dollar against the U.S. dollar will, other factors remaining equal, result in an increase in cost of sales and total cash costs per ounce of approximately $17 million and $4 per ounce, respectively.

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





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

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

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

The price of oil has fluctuated between $54 and $61 per barrel of Brent Crude in 2019. As of 19 March 2020, the price of oil was at $24.43 per barrel of Brent Crude. 

AngloGold Ashanti estimates that for each U.S. dollar per barrel rise or fall in the oil price, other factors remaining equal, cost of sales and total cash costs per ounce of all its operations change by approximately $2 million and $0.6 per ounce, respectively. The cost of sales and total cash costs per ounce of certain of the company’s mines, particularly Siguiri, Geita, Tropicana and Iduapriem are most sensitive to changes in the price of oil. Even when fuel prices are in decline, expected savings may be partly offset by increases in governments’ fixed fuel levies or the introduction of new levies.

Furthermore, the price of steel has also been volatile.  Steel is used in the manufacture of most forms of fixed and mobile mining equipment, which is a relatively large contributor to the operating costs and capital expenditure of a mine.  For example, in 2016 the price of flat hot rolled coil (North American Domestic FOB) steel traded between $379 per tonne as of 1 January 2016 and $630 per tonne as of 29 June 2016. On 19 March 2020, the price of flat hot rolled coil (North American Domestic FOB) was $492.62 per tonne.

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


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

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

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

In South Africa, electricity is supplied by Eskom, a state-owned power generation company. Electricity is used for most of our business and safety-critical operations, including cooling, hoisting and dewatering.  Loss of power can therefore impact production and employee safety, and prolonged outages could lead to flooding of workings and ore sterilisation.

In the past decade, Eskom introduced on several occasions a schedule of rolling blackouts, or “load shedding”. For example, at the end of 2018, Eskom was forced to implement load shedding due to a combination of factors including plant breakdowns and urgent plant maintenance. A high degree of load shedding has been continuous ever since, including in early 2020. Furthermore, Eskom carries a significant amount of debt and, while it has been seeking ways to reduce its liabilities, its financial situation remains precarious. These operational and financial issues at Eskom may have a materially adverse impact on the company’s South African operations.

There can be no assurance as to the existence or nature of any government intervention with respect to tariff increases in the future. Other difficulties at Eskom, relating to a large financial deficit, may result in additional tariff increases. As energy represents a large proportionreliability of the company's operating costs in South Africa, tariff increases have had, and any future increases will have, a materially adverse impact on the cost of sales and total cash costs per ounce of the company's South African operations.

In Ghana and Brazil, the company has also identified a risk of energy shortages. The company’s mining operations in Ghana depend on hydro and thermal power supplied by a state-controlled national grid operator. In 2014, the company experienced extended power interruptions in Ghana. Although the situation has improved since then, the grid is still subject to disturbances and voltage

fluctuations during periods of limited electricity availability, which can damage equipment. In Brazil, a two-year drought in 2014 and 2015 adversely affected hydro-electrical power generation. Similar water shortages in the future could have an adverse impact on AngloGold Ashanti’s operations in Brazil.

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


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

AngloGold Ashanti’s operations and performance depend significantly on worldwide economic conditions. Despite signs of economic recoveryinvestor interest in certain geographic markets, global economic conditions remain fragile with significant uncertainty regarding recovery prospects, levels of recovery and long-term economic growth effects. Concerns remain regarding the sustainability and future of both the European Monetary Union and its common currency, the Euro, and the European Union (EU), in their current form, particularly following the withdrawal of the United Kingdom from the EU on 31 January 2020 and the uncertainty around any subsequent negotiations and the resulting terms of any new economic and security relationship, including trade arrangements, between the EU and the United Kingdom. Concerns also exist regarding the negative impacts of the downgrade of the sovereign credit rating of the Republic of South Africa in recent years.

Concerns remain regarding South Africa’s credit rating. The country has been assigned BB (negative outlook), Baa3 (negative outlook) and BB+ (negative outlook) status by S&P Global, Moody’s and Fitch, respectively. See “-Any downgrade of credit ratings assigned to AngloGold Ashanti’s debt securities could increase future interest costs and adversely affect the availability of new financing”.

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

Global economic turmoil, or the expectation that economic turmoil could worsen, could have follow-on effects on AngloGold Ashanti’s business that include inflationary cost pressures, interest rate fluctuations and commodity market fluctuations. The COVID-19 pandemic has resulted in a sharp decline in global financial markets and a significant decrease in global economic activity, which may have a material adverse effect on worldwide demand for gold and may also materially adversely affect the profitability of our operations or our financial condition. See also “-The prevalence of occupational health diseases and other diseases and the potential costs and liabilities related thereto may have an adverse effect on the business and results of operations of AngloGold Ashanti”.

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

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


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


Many5.    Other Regulatory and Legal Risks

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

a country in which the company operates, social unrest and union activity may increase, which in turninternal control over financial reporting may have an adverse effect on investors’ confidence in the reliability of its financial statements.
•Breaches in cybersecurity and violations of data protection laws may adversely impact or disrupt AngloGold Ashanti’s operational costs and results of operation in that country.business.

Of particular concern is the inflation rate in Argentina which increased from an average of ten percent in 2012•U.S. securities laws do not require AngloGold Ashanti to 40.5 percent in 2016. Inflation in Argentina was recorded at 24.8 percent in 2017 and rosedisclose as much information to 47.6 percent in 2018, and 53.8 percent in 2019. Hyper-inflationary reporting will be reflected in the financial statements of our local subsidiaries. However, hyper-inflationary movements are not reflected in the group’s consolidated financial statementsinvestors as our local Argentinian subsidiary is deemed to have a U.S. dollar functional currency.issuer is required to disclose, and investors may receive less information about the company than they might otherwise receive from a comparable U.S. company.




Mining companies are subject




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Risks Related to many risks related to the development of mining projects that may adversely affect the company’s results of operations and profitability.

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

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

The remote location of many mining properties, delays in obtaining necessary permits and approvals, as well as third-party legal challenges to individual mining projects and broader social or political opposition to mining may increase the cost, timing and complexity of mine development and construction.

For example, AngloGold Ashanti may prove unable to successfully develop the La Colosa and Gramalote projects, or the Nuevo Chaquiro deposit that is part of the Quebradona project in Colombia, as well as other potential exploration sites due to, for example, social and community opposition, litigation and governmental regulatory or administrative proceedings, the classification of land covered by mining titles as an environmentally-protected area, ore body grades, the inability of any such project to meet AngloGold Ashanti’s investment hurdle rate, and delays that could result in the expiry of permits. See “-Mining companies are subject to extensive environmental, health and safety laws and regulations” and “Item 8A: Legal Proceedings-Colombia”.

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


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


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

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

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



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

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

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

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

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


Mining is inherently hazardous, and mining companies are subject to the risk of disruptions to their operations, which may adversely impact cash flows and overall profitability.

Gold mining operations are subject to risks of events that may adversely impact a mining company’s ability to produce gold and meet production and cost targets. These events include, but are not limited to:
accidents or incidents, including due to human error, during exploration, production, drilling, blasting or transportation resulting in injury, loss of life or damage to equipment or infrastructure;
air, land and water pollution;
social or community disputes or interventions;
security incidents, including the activities of artisanal or illegal miners;
surface or underground fires or explosions;
labour force disputes and disruptions;
loss of information integrity or data;
shortages in material and equipment;
mechanical failure or breakdowns and ageing infrastructure;
failure of unproven or evolving technologies;
energy and electrical power supply interruptions or rationing;
unusual or unexpected geological formations, ground conditions, including lack of mineable face length and ore-pass blockages;
water ingress and flooding of mine shafts;
process water shortages;
metallurgical conditions and gold recovery;
unexpected decline of ore grade;
unanticipated increases in gold lock-up and inventory levels at heap-leach operations;
fall-of-ground accidents in underground operations;
cave-ins, sinkholes, subsidence, rock falls, rock bursts orlandslides;
failure of mining pit slopes, heap-leach facilities, water or solution dams, waste stockpiles and tailings dam walls;

safety-related stoppages;
gold bullion or concentrate theft;
corruption and fraud;
allegations of human rights abuses;
seismic activity; and
other natural phenomena, such as floods, droughts or weather conditions, potentially exacerbated by climate change.

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

Seismic activity is of particular concern in underground mining operations, particularly in South Africa due to the extent and extreme depth of mining, and also in Australia and Brazil due to the depth of mining and residual tectonic stresses. Seismic events have caused death and injury to employees and contractors as well as safety-related stoppages and may continue to do so in the future.

Seismic activity may also cause a loss of mining equipment, damage to or destruction of mineral properties or production facilities, monetary losses, environmental pollution and potential legal liabilities. As a result, these events may have a material adverse effect on AngloGold Ashanti’s results of operations and financial condition. For example, in South Africa, Mponeng experienced during 2019 a production loss of approximately 5,700m2 due to rock burst damages and other internal seismic procedural stoppages. Furthermore, on 5 March 2020, a seismic event at Mponeng resulted in three fatalities and, on 16 March 2020, another fatality occurred as the result of a tramming accident. As a result, operations in the affected areas at Mponeng have been suspended pending the outcome of investigations relating to such events.

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


Mining companies’ operations are vulnerable to infrastructure constraints.

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

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

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

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


Mining companies face strong competition and industry consolidation.

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

Further, industry consolidation may lead to increased competition and may harm AngloGold Ashanti’s operating results. A number of transactions have recently been completed in the gold mining industry. In this regard, some of AngloGold Ashanti’s competitors have made acquisitions or entered into business combinations, joint ventures, partnerships or other strategic relationships. For example, Barrick Gold Corporation completed its merger with Randgold Resources Limited in January 2019 and Newmont Corporation (formerly Newmont Mining Corporation) completed its business combination with Goldcorp Inc.Similar consolidations in the form of acquisitions, business combinations, joint ventures, partnerships or other strategic relationships may continue in the future. The companies or alliances resulting from these transactions or any further consolidation involving AngloGold Ashanti’s competitors may benefit from greater economies of scale, significantly larger asset bases and broader differentiation of mining assets in respect of geographies and commodities than AngloGold Ashanti. In addition, following such transactions certain of AngloGold Ashanti’s competitors may decide to sell specific mining assets increasing the availability of such assets in the market.

An excess of mining assets available for sale could have a material adverse impact on any of the company’s contemplated asset sales and could result in sales processes taking longer to complete or not completing at all or not realizing the full value of the assets being disposed of. Such developments could have a material adverse effect on the company’s business, operating results and financial condition.


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


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


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


Mining operations are often located at or near existing towns and villages, natural waterways and other infrastructure or natural resources. As the impacts of dust generation, waste storage, water pollution or water shortages may be directly adverse to those communities, poor environmental management practices, or, in particular, adverse changes in the supply or quality of water, can result in community protest, regulatory sanctions or ultimately in the withdrawal of community and government support for company operations. For example, following a 2017 popular consultation in the Colombian municipality of Cajamarca in the Tolima department, which hosts the company’s La Colosa exploration site, AngloGold Ashanti’s management has suspended much of the current fieldwork around the project until the related environmental permits are granted and there is more certainty about mining activity in Colombia. Force majeure was declared at the project. Similarly, in the Colombian town of Piedras in the Tolima department, which is not located in the immediate vicinity of the La Colosa exploration site, AngloGold Ashanti is also contestingcontested a 2013 popular consultation which attempted to ban all mining activities in the area. Subsequently, the Colombian Constitutional Court has decided that local municipalities or regions do not have authority to veto mining activities through popular consultations. See “Item“Item 8A: Legal Proceedings-Colombia”Proceedings—Colombia”. If AngloGold Ashanti is unsuccessful in challenging these popular consultations,securing community support for its projects, or groups opposed to mining successfully pursue similar or other legal mechanisms to attempt to block exploration or extraction activities, there could be an adverse impact on AngloGold Ashanti’s reputation, its ability to develop its mining concessions, and its results of operations and financial condition.


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


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



AngloGold Ashanti is subject to many risks related to the development of existing and new mining projects that may adversely affect its results of operations and profitability.
Mining companies are
Development of AngloGold Ashanti’s existing and new mining projects may be subject to unexpected problems and delays that could impact the company’s ability to exploit or operate the relevant project as planned or increase the costs of such relevant project. For example, constraints on the availability of mining and processing equipment, increase in capital and operating costs, skilled labour, utilities, transportation and/or appropriate smelting and refining arrangements could result in delays or increase the costs needed to secure adequate supplies or resources or to construct facilities required for AngloGold Ashanti’s mining operations.






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


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

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

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



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

For example, in March 2022, AngloGold Ashanti was informed of an incident involving potentially unauthorised cutting of vegetation by a contractor at the La Colosa project near Cajamarca. The company promptly notified Cortolima, the regional environmental authority in the Tolima department, as well as the national Environmental Ministry of the incident. Cortolima conducted a technical visit to evaluate if any breach of environmental law had occurred. Based on such findings, this authority is expected to determine whether to open a formal environmental investigation. In addition, the company initiated an internal investigation to assess the incident and identify potential mitigation measures, if required, as well as to determine the root cause(s). These investigations are ongoing and, as a result, the company is not able to determine at this time whether this incident violated applicable law or will result in enforcement action against AngloGold Ashanti, including any civil fines against the company or criminal sanctions against any individuals involved in the incident or against any AngloGold Ashanti employees. In some of the jurisdictions in which AngloGold Ashanti operates, the government enforces compulsory shutdownsmay enforce a total or partial shutdown of operations to enable investigations into the cause of accidents. Certain of the company’s operations have been temporarily suspended for safety reasons in the past. In South Africa, so-called “Section 54 safety stoppages” have become a significant issue as an enforcement mechanism used by the Department of Mineral Resources and Energy Mining Inspectorate whose inspectors routinely issue such notices. For example, in 2019, 8 notices were issued that had a material adverse impact on productionaccidents at the company’s mines. Section 54 safety stoppages resulted in the estimated direct loss of 11,324, 4,680 and 1,226 ounces of gold production from the South African region operations during 2017, 2018 and 2019, respectively. In March 2020, operations in certain areas at Mponeng have been suspended pending the outcome of investigations in connection with three fatalities caused by a seismic event and one fatality due to a tramming accident.

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


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



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

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

For example, in Colombia, various plaintiffs, including certain governmental authorities and various associations that represent local communities, brought legal proceedings against AngloGold Ashanti Colombia S.A. (AGAC) alleging that AGAC violated applicablein order to stop exploration, development and mining activities in certain areas, in which its exploration projects are located, due to environmental laws in connectionconcerns. For instance, a consolidated class action with the La Colosa project. In one instance, the Colombian Department of the Environment, Housing and Territorial Development (DoE) issued a fine of $70,000 against the company. Although the amount of the fine is not significant, the repeated or continuous breach of such applicable environmental laws, among other grounds, could be used as the basis for legal action by the Colombian government that could prohibit AGAC from doing business with the Colombian government for a period of five years. In such circumstances, AGAC’s three core concession contracts relatingrespect to the La Colosa project could be cancelled depending on the severity of the violations. As a result, AGAC could be required to abandon the La Colosa project and its other existing mining concession contracts as well as any pending proposals for new mining concession contracts of AGAC. However, this would not affect those of other companies of the AngloGold Ashanti group operating in Colombia. Separately, as part of the La Colosa class action lawsuit, Tolima’s Administrative Court ordered in October 2016 that a technical study be prepared 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 similar technical study be prepared for the La Colosa project. AGAC appealed these orders and the matter is currently pending before the Council of State of Colombia (the highest court for administrative matters). with respect to the impact of the project on the environment. If AngloGold Ashanti does not prevail before the Council of State, it may have to perform one or more technical studies in relation to the La Colosa project, which if they were to conclude that a “threat” to the environment exists, could result in the suspension of certain development activities or even the abandonment of the project. See “Item“Item 8A: Legal Proceedings-Colombia”Proceedings—Colombia”.


Environmental impacts arising in connection with AngloGold Ashanti'sAshanti’s operations could lead to the imposition of legal obligations, including the remediation of environmental contamination, claims for property damage and personal injury from adjacent communities and restrictions on mining operations. For example, brief gold processing stoppages after environmental incidents, such as pipeline failures or deficiencies in water management systems, have occurred previously at AngloGold Ashanti'sAshanti’s operations. Leaks or discharges of hazardous materials could result in liabilities for clean-up or personal injury that may not be covered by insurance. The company has identified groundwater contamination plumes at certain of its operations that have occurred primarily as the result of seepage from surface operations and facilities, including tailings storage facilities and waste rock piles, or from sulphide or other substances in local rock formations which are exposed to water. In addition, closure of a mine could trigger or accelerate obligations, including to conduct environmental rehabilitation activities and/or to address historical impacts on environmental quality in the area surrounding the mine. Costs incurred by the companyAngloGold Ashanti in excess of AngloGold Ashanti’sits existing provisions for such matters, or on a more accelerated or compressed timeline than currently anticipated, could have a material adverse impact on AngloGold Ashanti’s results of operations and financial condition.


Environmental laws and regulations are continually changing and are generally becoming more stringent. Changes to AngloGold Ashanti’s environmental compliance obligations or operating requirements could adversely affect the company’s operations, rate of production and revenue. Variations in laws and regulations, assumptions made to estimate liabilities, standards or operating procedures, more stringent emission or pollution thresholds or controls, or the occurrence of unanticipated conditions, may require operations to be suspended or permanently closed, and could increase AngloGold Ashanti’s expenses and provisions. These expenses and provisions could adversely affect the company’s results of operations and financial condition.

For example,In addition, the use of hazardous materials in metallurgical processing remains under continued scrutiny. As there are few, if any, effective substitutes in extracting gold from the ore, any ban or material restrictions on the use of such materials in mining operations in the jurisdictions where AngloGold Ashanti conducts its operations could adversely affect the company’s results of operations and

financial condition. In addition, leaks or discharges of hazardous materials could result in liabilities for clean-up or personal injury that may not be covered by insurance.


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


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

For example, a TSF at the Córrego do Feijão iron ore mine owned by Vale at Brumadinho in the state of Minas Gerais in Brazil burst in January 2019. Tailings reached the mine’s administrative area and part of the local community, reportedly resulting in death or injury to hundreds of people. As a result of this incident, environmental licensing processes in Brazil for mining companies have become more difficult, especially those involving TSFs. Since this incident, the Brazilian authorities 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. It is expected that there will be further changes in federal and state legislation and regulation, as well as much more intense scrutiny and control of, as well as cost increases associated with inspecting, maintaining and constructing TSFs. Certain types of TSFs may be prohibited, and any such prohibitions may result in operational disruptions until alternate facilities can be constructed or existing facilities can be reinforced. In addition, it is believed that communities will increasingly seek engagement and information with respect to the adequacy of the safety measures in place to protect them from TSF-related incidents. For example, the National Congress is currently considering Federal Bill No. 550/2019, which, among other measures, contains specific requirements in respect of the decharacterization (descaracterização) and decommissioning of TSFs, including the removal of tailings material from existing and future TSFs. If adopted in its current form, the bill may cause a significant increase in provisions for decharacterization, decommissioning and closure, may result in additional operating or capital costs for the company and could potentially have an adverse impact on production levels at the affected operations over the next 24 months. The mining sector is liaising with the legislative authorities and other stakeholders in an effort to introduce amendments to this proposed bill which would mitigate some of the concerns identified by the mining industry, in particular, regarding the requirement to remove tailings material from decommissioned TSFs. See “Item 4B: Business Overview-The Regulatory Environment Enabling AngloGold Ashanti to Mine-Americas-Brazil”. Furthermore, at the federal level, the Brazilian National Mining Agency (ANM) issued Resolution No. 13/19 in August 2019 prohibiting the upstream method for the construction or heightening of tailings dams throughout the national territory of Brazil. ANM Resolution No. 13/19 further requires the deactivation of TSFs constructed or heightened upstream or by an “unknown” method by 15 September 2021 as well as the decommissioning of such TSFs by 15 August 2022 to 15 September 2027 (depending on the capacity volume). As a result, the Serra Grande mine in the state of Goiás is in the process of reinforcing the dam walls of its upstream TSF in advance of its expected deactivation by 15 September 2021. Additionally, public prosecutors have been pursuing an active role in the enforcement of new state and federal laws and regulations by way of legal action against several mining companies to compel compliance with these new rules. The company’s Brazilian subsidiaries are currently involved in such lawsuits in the state of Goiás in respect of the Serra Grande tailings dam and in the state of Minas Gerais in relation to the Cuiabá tailings dam. The outcome of these lawsuits cannot be predicted but, if resolved adversely to the company, may oblige the company to accelerate the decommissioning of the Serra Grande tailings dam, including possibly the complete removal of tailings material, by 15 September 2022 and could result in the suspension of the company’s operational permit for the Cuiabá tailings dam. As a result, such adverse judgments may result in additional and accelerated operating or capital costs for the company, including costs exceeding the company’s current provisions for decommissioning these sites, and could have an adverse impact on the company’s production levels at the affected operations over the next 24 months, all of which may adversely affect the company’s financial condition and results of operations. See “Item 4B: Business Overview-The Regulatory Environment Enabling AngloGold Ashanti to Mine-Americas-Brazil” and “Item 8A: Legal Proceedings-Brazil”.

Mining companies are required by law to close their operations at the end of the mine life and rehabilitate the impacted areas. Estimates of the total ultimate closure, reclamation and rehabilitation costs for gold mining operations are significant and based principally on life-of-mine profiles, changing inflation and discount rate assumptions, changing infrastructure and facilities design and current legal and regulatory requirements that may change materially. Environmental liabilities are accrued when they become known, are probable and can be reasonably estimated. Increasingly, regulators are seeking security in the form of cash collateral or bank guarantees in respect of environmental obligations. For example, in South Africa, regulations require mining companies to

make financial provisions for rehabilitation for at least 10 years. See “Item“Item 4B: Business Overview-TheOverview—The Regulatory Environment Enabling AngloGold Ashanti to Mine”Mine”.


AngloGold Ashanti’s provisions for decommissioning and for restoration (excluding joint ventures but including liabilities related to assets held for sale)and discontinued operations) totalled $724$688 million in 2017, $6372021, $674 million in 20182020 and $730$634 million in 2019. Costs associated with rehabilitating land disturbed by mining processes and addressing environmental, health and community issues are estimated and financial provision made based upon current available information based on ourAngloGold Ashanti’s commitments in terms of environmental legislation or agreements with government. Estimates notably relate to discount rates, which may vary due to changes in global economic assumptions, and mine plans, which may change in line with variations in cash flows, designs of tailings storage facilities and methodologies used to compute liabilities (including as a result of a request from environmental regulatory authorities). As such, estimates may be insufficient and further costs may be identified at any stage that may exceed the provisions that AngloGold Ashanti has made. Any underestimated or unidentified rehabilitation costs would reduce earnings and could materially and



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



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

Greenhouse gases (GHGs) are emitted directly by AngloGold Ashanti’s environmental compliance obligations or operating requirements could adversely affect its operations, as well as by external utilities from which AngloGold Ashanti purchases electricity. As a resultrate of commitmentsproduction and revenue. Variations in laws and regulations, assumptions made atto estimate liabilities, standards or operating procedures, more stringent emission or pollution thresholds or controls, or the UN Climate Change Conference in Durban, South Africa in December 2011, certain membersoccurrence of the international community negotiated a treaty at the Conference of the Parties of the UN Framework Convention on Climate Change in Paris in December 2015 (Paris Agreement). The Paris Agreement, which came into force on 4 November 2016, requires developed countries to set targets for emissions reductions. Additional measures addressing GHG emissionsunanticipated conditions, may be implemented at national or international levels in various countries.

For example, in South Africa, the Carbon Tax Act, No. 15 of 2019, imposing a tax on carbon dioxide equivalent of GHG emissions, took effect on 1 June 2019. The tax will be implemented in a phased manner, taking into account South Africa’s Nationally Determined Contributions (NDCs) commitment under the Paris Agreement to reduce greenhouse gas emissions. The first phase, which runs from June 2019 to December 2022, imposed a tax of ZAR120/ton carbon dioxide equivalent (CO2-e) of direct GHG emissions, which will increase by CPI plus two percent up to 2022 and in line with inflation thereafter. As this first phase is designedrequire operations to be revenue-neutral in terms of its aggregated impact, a system of rebates is in place effectively reducing the actual rate to be in a range of ZAR6/ton to ZAR48/ton. See also “Item 4B: Business Overview-Environmental, Healthsuspended or permanently closed, and Safety Matters”.

These, or future, measures could require AngloGold Ashanti to reduce its direct GHG emissions or energy use or to incur significant costs for GHG emissions permits or taxes, including for those costs or taxes passed on by electricity utilities which supply the company’s operations. AngloGold Ashanti could also incur significant costs associated with capital equipment, GHG monitoring and reporting and other obligations to comply with applicable requirements. The most likely source of these obligations is through state-level implementation of new emissions or financial obligations pursuant to evolving climate change regulatory regimes.

Other countries, including Australia and Brazil, have passed or are considering GHG trading or tax schemes and/or other regulation of GHG emissions, although the precise impact onincrease AngloGold Ashanti’s operations cannot yet be determined.See also “Item 4B: Business Overview-Environmental, Healthexpenses and Safety Matters”.

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



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

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

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

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

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



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

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

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

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

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

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

These estimates depend on assumptions made based on available data. Mineral Reserve estimates are not precise calculations and depend on the interpretation of limited information on the location, shape and continuity of the mineral occurrence and on available current and historical sampling results. No assurance can be given that Mineral Reserve estimates or other estimates are accurate or that the indicated levels of gold, supply chain, especially as they relate to “scrap”silver, copper or recycled gold,other mineral will be produced. Further exploration and feasibility studies can result in new data becoming available that may change previous or historical Mineral Reserve estimates and impact the fragmentedtechnical and often unregulated supplyeconomic viability of artisanal and small-scale mined gold are such that there may be significant uncertainties at each stage

production from the project. Changes in the chainforecast prices of commodities, exchange rates, production costs or recovery rates may change the economic status of Mineral Reserves resulting in revisions to previous or historical Mineral Reserve estimates. These revisions in Mineral Reserves estimates as well as changes in life of mine estimates could also impact depreciation and amortisation rates, asset carrying values and/or estimates for closure, restoration and environmental rehabilitation costs.

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




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

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

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

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

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



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


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







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Individually, AngloGold Ashanti and other mining companies have limited influence over manufacturers and suppliers of these items. In certain cases, there are a limited number of suppliers for certain strategic spares, critical consumables, mining equipment or metallurgical plant who command superior bargaining power relative to the company. The companyAngloGold Ashanti. AngloGold Ashanti could at times face limited supply or increased lead time in the delivery of such items.items.


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


Furthermore, supply chains and rates can be impacted by natural disasters, such as earthquakes, extremesevere weather, patternssuch as storms, heavy rainfall and other impacts that may be increasing due to climate change, as well as other phenomena that include unrest, strikes, theft and fires. For example, a three-week transport strike in 2012 delayed the supply of consumables in South Africa and in February 2013, a fire destroyed the heavy mining equipment stock of spares and components at the Geita gold mine.mine in Tanzania. If AngloGold Ashanti experiences shortages, or increased lead times in the delivery of strategic spares, critical consumables, mining equipment or processing plant, the companyAngloGold Ashanti might have to suspend some of its operations and its results of operations and financial condition could be adversely impacted.


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


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

AngloGold Ashanti’s operations are vulnerable to infrastructure constraints.

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

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

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

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



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

AngloGold Ashanti faces strong competition and industry consolidation.

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



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

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

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

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

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

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



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

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

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

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

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

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



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

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

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

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

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

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

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



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

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

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

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

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

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



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

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

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

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

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

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

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

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

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

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

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



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

Risks Related to AngloGold Ashanti’s Operations and Business

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

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

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

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

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

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

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

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



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

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

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

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

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

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

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

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

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



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

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

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

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

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

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

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

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

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

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







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

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

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

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

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

AngloGold Ashanti expects to have significant financing requirements.

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

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

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

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

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



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

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

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

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

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

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

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

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

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

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

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

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



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

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

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

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

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

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

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

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

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

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






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

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

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

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

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

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

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

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

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










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Market Risks

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

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

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

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

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

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

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

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



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

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

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

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

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

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

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

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

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

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

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

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

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

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



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

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

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

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

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

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

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

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

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

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



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

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

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

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

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

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


Historically, the gold market relied on prices and trades made relative to a benchmark known as the London Gold Fix (Fix)(“Fix”), set by a group of five fixing banks that matched buyers and sell orders. Following a series of allegations regarding the possible manipulation of the Fix by fixing banks, U.S., German and UK regulators undertook a review of the fixing process.



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


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



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

Many of AngloGold Ashanti’s operations are located in countries that have experienced high rates of inflation during certain periods and inflationary pressures have been exacerbated by recent increases in energy costs. It is possible that significantly higher future inflation in the countries in which the company operates may result in an increase in operational costs in local currencies (without a concurrent devaluation of the local currency of operations against the U.S. dollar or an increase in the U.S. dollar price of gold). This could have a material adverse effect on the company’s results of operations and financial condition. Significantly higher and sustained inflation, with a consequent increase in operational costs, could result in the rationalisation (including closure) of higher-cost mines or projects. Furthermore, when inflation reaches highly inflationary levels in a country in which the company operates, social unrest and union activity may increase, which in turn may have an adverse effect on AngloGold Ashanti’s operational costs and results of operation in that country.




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

Other Regulatory and Legal Risks

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


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


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


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


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

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

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

The sophistication and magnitude of cybersecurity incidents are increasing and include malicious software, attempts to gain unauthorised access to data and other electronic security and protected information breaches that could lead to production downtimes, operational delays, the compromising of confidential or otherwise protected information, destruction or corruption of data, other manipulation or improper use of AngloGold Ashanti’s systems and networks or financial losses from remedial actions. For example, in early 2020, there was an unsuccessful cybersecurity attack (“brute-force” attack) attempting to breach the company’s email servers. No breach was recorded.

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


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

For example, the failure to comply with the General Data Protection Regulation (GDPR) may lead to a fine of up to four percent of a company’s worldwide turnover or up to €20 million. Also, the GDPR has a scope that extends beyond the borders of the EU and does not only affect EU operations.


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

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

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

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

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

Intrusions onto the company’s tenement and operational areas, including artisanal and illegal mining-related activities in particular, continue to be a challenge.  The most significant security challenges remain in Tanzania, Guinea, Mali and Ghana, in areas where there is endemic poverty, high levels of unemployment and an increased level of organisation and funding of criminal activity. See “-Artisanal and illegal mining occurs on AngloGold Ashanti’s properties, which can disrupt the company’s business and expose the company to liability”. If the security environment surrounding the company’s operations that are most exposed to these challenges deteriorates, employee, third-party and community member injuries and fatalities could also increase.  Any such increase could disrupt the company’s operations in certain mines and adversely affect its reputation, results of operations and financial condition.

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

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

In addition, infectious diseases are also a threat to the stability of some of the countries in which the company operates, where limited local health infrastructure weakens governments’ ability to manage and contain outbreaks effectively, in particular prolonged or sustained outbreaks.  For example, during August 2014, cases of the Ebola virus were reported in Siguiri, which is located near AngloGold Ashanti’s Siguiri mine in Guinea.  The company implemented certain restrictions on travel to and from the Siguiri mine as a precaution. As the Ebola virus caused significant disruptions in the company’s exploration activities, particularly relating to field mapping and geophysics, AngloGold Ashanti also suspended its brownfields work programme and greenfields field work in the middle of 2014. The DRC also experienced an outbreak of the Ebola virus in 2018, which is being monitored continuously.

Similarly, the company operates mines in countries that have confirmed cases of COVID-19 and resulting death. In some countries, national or state governments have declared a state of emergency empowering such governments to take actions or impose restrictions to contain the virus that otherwise would not be permitted under the applicable legal and regulatory framework. Governments have also imposed certain restrictions on travel or business activities as precautionary measures, including nationwide lockdowns (quarantine), which may disrupt the company’s activities and operations and even lead to a full or partial shutdown of

the company’s mining operations in those countries. For example, on 21 March 2020, following the Argentinian government’s decision to impose a nationwide lockdown (quarantine), including travel restrictions, border closings and shutdown of most industries, until 31 March 2020, Cerro Vanguardia S.A. (CVSA) was required to temporarily suspend mining activities. Similarly, on 23 March 2020, the South African government announced a 21-day nationwide lockdown, effective from midnight on 26 March 2020, resulting in the temporary suspension of mining activities of the company’s South African operations particularly Mponeng, and the partial suspension of mining activities at Mine Waste Solutions and Surface Operations.On 26 March 2020, in Brazil, the State of Goiás extended a set of restrictions on the operation of non‐essential business, which are set to run through 4 April 2020, to include mining, resulting in the temporary suspension of mining activities at our Serra Grande operations. In these countries, the suspension of mining activities will continue for the period during which the respective restrictions remain in force. Any such emergency governmental action may have a material adverse effect on the company’s operating and financial results, which may result in a negative impact on the company’s cashflows, funding requirements and overall liquidity. In addition to governmental measures, the company may also consider additional safety measures which may further the negative impacts on its operations or its exploration projects in countries that may be affected by infectious diseases, such as Ebola or COVID-19.

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

Past experience demonstrates that political, tax and economic laws and policies in countries in which AngloGold Ashanti operates can change rapidly. Examples include the 2012 coup d’état and subsequent fighting in Mali, the foreign currency regulations that were imposed from 2011 to 2015 and since September 2019 in Argentina and the ban on gold ore exports announced by the Tanzanian government in March 2017. As mining assets are fixed, the adverse impacts of such changes may be unavoidable and immediate.

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

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

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

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

In Brazil, for instance, as a result of the Vale tailings dams failure at Brumadinho in the state of Minas Gerais in January 2019, the Brazilian authorities 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. For example, the federal

government is undertaking action to review relevant mining legislation and has been proposing several bills in this field, including Federal Bill No. 550 which, in its current form, among other measures, contains specific requirements in respect of the decharacterization (descaracterização) and decommissioning of TSFs, including the removal of tailings material from existing and future TSFs. The mining sector is liaising with the legislative authorities and other stakeholders in an effort to introduce amendments to this proposed bill which would mitigate some of the concerns identified by the mining industry, in particular, regarding the requirement to remove tailings material from decommissioned TSFs. See “-Mining companies are subject to extensive environmental, health and safety laws and regulations” and “Item 4B: Business Overview-The Regulatory Environment Enabling AngloGold Ashanti to Mine-Americas-Brazil”. Any amendments to existing legislation in Brazil may cause a significant increase in provisions for decharacterization, decommissioning and closure, may result in additional operating or capital costs for the company and could potentially have an adverse impact on production levels at the affected operations over the next 24 months, all of which may adversely affect the company’s financial condition and results of operations.

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

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

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

In Guinea, Mali, DRC and Tanzania, AngloGold Ashanti is due refunds of input tax and fuel duties which have remained outstanding for periods longer than those provided for in the respective statutes. For example, AngloGold Ashanti calculates that overdue recoverable value added tax, fuel duties and appeal deposits of $196 million are owed to AngloGold Ashanti at the end of 2019 and held by the Tanzanian government and it is not certain when, if ever, AngloGold Ashanti will be refunded this amount. Similarly, it is not certain when or whether AngloGold Ashanti will be refunded all amounts due from any other government.

The countries in which the company operates may also introduce export restrictions, exchange controls, impose restrictions to source materials and services locally, or impose other similar restrictions that hinder foreign companies’ operations within such countries.  For example, in March 2017, the Tanzanian government announced an immediate ban on gold, silver, copper and nickel ore exports, in an attempt to ensure that mineral value-addition activities would be carried out in-country.

Additionally, from 2011 to 2015, the Argentinian government introduced stricter exchange controls and related protracted approval processes which limited the company’s ability to repatriate dividends from its Argentinian subsidiaries. In September 2018, export duties were re-imposed by the Argentinian government set at 12 percent with a cap so that it does not exceed the amount of ARS 4 pesos per U.S. dollar exported. In September 2019, the Argentinian government re-established foreign exchange and export controls. Increased royalties, increased socio-politically tensions and hyper-inflation over the past few years have greatly increased the country risk which in turn has lowered the potential future earnings of the company's investment in Cerro Vanguardia S.A. (CVSA). Political uncertainty following the 2019 presidential elections further exacerbates the risk. The economic contraction for 2019 ended at eight percent and a further recession is expected in 2020.

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


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

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

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

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

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

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

In South Africa, AngloGold Ashanti’s mining rights may be suspended or cancelled by the South African Minister of Mineral Resources and Energy, and the company may be unable to obtain new mining rights if it breaches its obligations under the Mineral and Petroleum Resources Development Act, No. 28 of 2002 (MPRDA). In particular, South Africa’s changing Black Economic Empowerment (BEE) policies may adversely affect both the terms of AngloGold Ashanti’s mining concessions, as well as its ability to conduct operations. Mining rights are linked to compliance with various obligations, including the Broad-Based Socio-Economic Empowerment Charter for the South African Mining and Minerals Industry, 2018 (Mining Charter, 2018). The Mining Charter, 2018 and its implications are discussed in more detail in “Item 4B: Business Overview-The Regulatory Environment Enabling AngloGold Ashanti to Mine-South Africa”.

For example, the Mining Charter, 2018 provides that a new mining right must have a minimum of 30 percent BEE shareholding. It further provides that an existing mining right holder who has achieved a minimum of 26 percent BEE shareholding shall be recognised as compliant for the duration of the mining right. On 25 February 2019, AngloGold Ashanti received a directive from the South African Department of Mineral Resources and Energy (DMRE) stating that the company was not compliant with the amendment process required by the MPRDA in connection with BEE transactions entered into by the company after the conversion of the West Wits mining rights. The DMRE instructed AngloGold Ashanti to submit an application to amend the clauses of two of its West Wits mining rights which record the BEE transactions entered into and implemented by the company to reflect further details of those BEE transactions and provide certain information relating to such transactions. On 7 March 2019, AngloGold Ashanti submitted an application for consent of the Minister of Mineral Resources and Energy to amend those clauses accordingly and provided the requested information. As a general matter, should AngloGold Ashanti be found in breach of its obligations to comply with the MPRDA, the applicable mining charter or any future amendments to the applicable mining charter, it may be subject to adverse consequences and it may be compelled to conclude additional BEE transactions. Furthermore, in the event that AngloGold Ashanti applies for a new mining right, it will have to comply with the Mining Charter, 2018 ownership requirements and it will not be entitled to rely on its current BEE ownership structure. See also “Item 4B: Business Overview-The Regulatory Environment Enabling AngloGold Ashanti to Mine-South Africa”.

AngloGold Ashanti has not yet been assessed for compliance by the DMRE against the Mining Charter, 2018 targets and it may need to make further progress to achieve future targets, including, but no limited to, further participation by historically disadvantaged South Africans, also referred to in the MPRDA as historically disadvantaged persons (HDSAs) in senior and top management levels, the upgrade of housing and accommodation at the company’s mines, further human resource development, mine community development, sustainable development and growth as well as procurement and enterprise development. The company will incur expenses in giving further effect to the Mining Charter, 2018 and may not meet all of the various requirements by the required dates.

In Colombia, a government agency grants exclusive concession contracts for exploration and exploitation which contain specified timelines for the completion of the various phases of a mining project. The company must comply with these timelines unless performance is suspended, for example, due to force majeure or extensions or modifications to the timelines. 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, it may be found in breach of its concession contract or mining license and such breach could constitute grounds for the mining authority to terminate such concession contract or mining license. Force majeure was declared at the La Colosa project, stopping all activities, following the outcome of the popular consultation held on 26 March 2017 in the Colombian municipality of Cajamarca in the Tolima department, which hosts the La Colosa exploration site. The force majeure has been extended multiple times and will now expire in June 2020, after which such declaration will once more need to be extended. While the company has made a timely application for an extension, there can be no guarantee that the declaration will be extended. Loss of the force majeure status could have a material adverse effect on AngloGold Ashanti’s results of operations and financial condition. See also “Item 4B: Business Overview-The Regulatory Environment Enabling AngloGold Ashanti to Mine-Americas-Colombia”.

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

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

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


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

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

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


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

AngloGold Ashanti’s employees in South Africa, Ghana, Guinea, Mali, Tanzania, Brazil and Argentina are highly unionised and unions are active at some of the company's other operations.  Trade unions working with communities and non-governmental organisations (NGOs), therefore, have a significant impact on the general labour relations environment, including labour relations at an operational level and operational stability at times. The extent of the unions’ influence also impacts the socio-economic and socio-political operating environments, most notably in South Africa, Guinea and Mali. Union involvement in wage negotiations and collective bargaining increases the risk of strike action. This situation is exacerbated by the multi-union environment at some of the company’s operations. Unions are characterized by their robust and positional engagement with the company, both in the context of existing collective bargaining structures to improve and advance conditions of employment, and in the context of changing economic conditions, downsizing and downscaling of operations. These factors expose the company’s operations to potential strike action and work stoppages. Unions are also increasingly championing broader political, economic and social issues utilizing their ability to withdraw labour. Any future labour unrest and disruptions could have a material adverse effect on AngloGold Ashanti’s results of operations and financial condition.


Unions are also increasingly affiliated to Global Union Federations leveraging this influence and utilize issues such as carbon emissions, environmental issues, health and safety, human rights, job losses, unemployment and restructuring, gender and inclusion issues, and migrant labour, as rallying points. Rolling mass action, picketing, protests and community involvement may create safety, security and related risks to the company and its assets. Future disruptions, strikes, and protest actions cannot be excluded and may have a material adverse effect on the company’s results of operations and financial condition, especially if these actions have a long duration such as the recent strikes in South Africa. Furthermore, IndustriaALL, representing more than 50 million workersglobally, will continue with its attempts to enter into a Global Framework Agreement with the company. A global framework agreement will expose the company to the risk of standardisation and equalisations of labour terms and conditions across the group, irrespective of the peculiar conditions applicable in the various jurisdictions in which the group operates. Any labour unrest and disruptions caused by such international trade unions could have a material adverse effect on AngloGold Ashanti’s results of operations and financial condition.


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

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

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


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

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

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

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


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

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


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

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


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

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


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

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

AngloGold Ashanti’s operations could be disrupted, resulting in additional costs and liabilities, if the mining contractors at affected mines have financial difficulties, or if a dispute arises in renegotiating a contract, or if there is a delay in replacing an existing contractor and its operating equipment to meet business needs at expected cost levels. Increases in contract mining rates, in the absence of associated productivity increases, may also have an adverse impact on the company’s results of operations and financial condition. In addition, restrictions on travel imposed by governments as a result of the outbreak of infectious diseases, a pandemic or other public health threat, such as the recent outbreak of the SARS-CoV-2 virus responsible for COVID-19, may prevent mining contractors from reaching our mining sites which could have an adverse effect on the operations of the affected mines.

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

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

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

As at 31 December 2019, AngloGold Ashanti had gross borrowings of $2.033 billion (2018: $1.989 billion and 2017: $2.190 billion), excluding all finance leases.

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

depend on its future financial performance, which will be affected by its operating performance as well as by financial and other factors, including in particular the gold price, certain of which are beyond its control.

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

The company’s ability to access the bank, public debt or equity capital markets on an efficient basis may be constrained by dislocation in the credit markets or capital and liquidity constraints in the banking, debt or equity markets at the time of issuance. The recent outbreak of the SARS-CoV-2 virus responsible for COVID-19, which has reached pandemic proportions, led the company to accelerate drawdowns on one of its revolving credit facilities in an aggregate amount of $1.35 billion. Any prolonged dislocation in financial markets due to the spread of the COVID-19 pandemic could impact the company’s ability to refinance its debt on commercially reasonable terms, if at all, and could as a result have a material adverse effect on the company’s funding requirements and overall liquidity.

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

An actual, anticipated or unexpected negative development of AngloGold Ashanti’s results of operations or cash flows, country risk, financial metrics, or an increase in net debt position could result in a deterioration of the company’s credit ratings.  AngloGold Ashanti’s ratings are influenced inter alia, by the location of its domicile and its operations. S&P Global and Fitch have assigned full sub-investment grade credit ratings to the Republic of South Africa and Moody’s has assigned an investment grade rating. See “-Global economic conditions could adversely affect the profitability of operations”. Any downgrade of the company, or South Africa, by any rating agency could increase the company’s cost of capital, reduce its investor base and have a material adverse effect on AngloGold Ashanti’s business, results of operations and financial condition.


AngloGold Ashanti expects to have significant financing requirements.

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

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

As a result, new sources of capital may be needed to help meet the funding requirements of these developments, to fund ongoing business activities and to pay dividends.  AngloGold Ashanti’s ability to further raise and service significant new sources of capital will be a function of macroeconomic conditions, the condition of the financial markets, future gold prices, the company’s operational performance and operating cash flow and debt position, amongst other factors.  The company’s ability to raise further debt, equity or quasi-equity financing in the future and the cost of such financing will depend on, amongst other factors, its prevailing credit rating, which may be affected by the company’s ability to maintain its outstanding debt and financial ratios at levels acceptable to the credit ratings agencies, its business prospects, risks relating to the countries in which it operates or other factors.  As a result, in the event of depressed gold prices, unanticipated operating or financial challenges, any dislocation in financial markets (including due to the recent COVID-19 pandemic) or new funding limitations, AngloGold Ashanti’s ability to pursue new business opportunities on reasonable terms, invest in existing and new projects, fund its ongoing business activities, exit projects and retire or service outstanding debt and pay dividends could be significantly constrained, all of which could adversely impact the company’s results of operations and financial condition.


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

LIBOR, the London interbank offered rate, is the basic rate of interest used in lending between banks on the London interbank market and is widely used as a reference for setting the interest rate on loans globally. Some of our three revolving credit facilities bear interest rates in relation to LIBOR. On 27 July 2017, the UK Financial Conduct Authority (FCA), which regulates LIBOR, has announced that it intends to stop encouraging or requiring banks to submit LIBOR rates after 2021, and it is unclear if LIBOR will cease to exist or if new methods of calculating LIBOR will evolve. If LIBOR ceases to exist or if the methods of calculating LIBOR change from their current form, interest rates on our current or future indebtedness may increase and we may need to renegotiate our revolving credit facilities to replace LIBOR with a new standard, both of which could have a material adverse effect on our liquidity, results of operations or financial condition. In addition, the issues that may lead to the discontinuation or unavailability of LIBOR may make one or more of the alternative methods impossible or impracticable to determine. Further, there can be no

guarantee that a transition from LIBOR to an alternative will not result in financial market disruptions, significant increases in benchmark rates or borrowing costs to borrowers, any of which could have a material adverse effect on our liquidity, results of operations or financial condition.


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

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

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

If any of these uncertainties occur, either alone or in combination, management could be required to recognise an impairment, which could have a material adverse effect on the company’s results of operations and financial condition. For example, in February 2020, the company announced the sale of its remaining South African producing assets, including the Mponeng mine. Following the classification of the South African disposal group as held for sale, an impairment of $549 million and taxation on impairment of $164 million (an impairment charge of $385 million, net of tax) was recognised to reduce the carrying amount of the assets in the South African disposal group to their fair value less costs to sell.



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


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


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


InFor example, in Colombia, the companyAngloGold Ashanti is also involved in class action lawsuits in relation to each of AngloGold Ashanti Colombia S.A.’s (AGAC)its Santa María-Montecristo and La Colosa projects. One ofprojects seeking to stop the company from conducting exploration, development and mining activities in certain areas, in which these class action lawsuits ledexploration projects are located, due to a preliminary injunction suspending AGAC’s mining concession contracts in relation to the Santa María-Montecristo project in September 2011.environmental concerns. See “Item“Item 8A: Legal Proceedings-Colombia”Proceedings—Colombia”. The company’s core mining concession contracts provide that the Colombian mining authority (ANM) has the discretion to declare the underlying concession void if AGAC repeatedly or continually breaches applicable environmental laws or regulations or engages in acts of corruption or other serious misconduct. In that event, AGAC could be required to abandon the relevant project and, depending on the severity of the violations or misconduct, the Colombian mining authority may cancel AGAC’s other existing mining concession contracts. Pending proposals for new mining concession contracts could also be cancelled and AGAC could be banned from doing business with the Colombian government for a period of five years.


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



Compliance with “conflict minerals” and “responsible gold” legislation and standards could result in significant costs.
Any acquisition or acquisitions that AngloGold Ashanti may complete may expose
Stringent standards relating to “conflict minerals” and “responsible” gold including, but not limited to, the company to new geographic, political, legal, social, operating, financialU.S. Dodd-Frank Act, the EU Regulation 2017/821 on supply chain due diligence obligations for EU importers of gold originating from conflict-affected and geological risks.

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

may divert management’s attention from AngloGold Ashanti’s day-to-day business. Furthermore, the company operates and acquires businesses in different countries, with different regulatory and operating cultures, which may exacerbate the risks described above. In addition, the acquired business may have undetected liabilities which may be significant.

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

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


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

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

Asset integrity and reliability issues relating to ageing infrastructure are of concern at many of the company's operations. Ageing infrastructure may have an adverse effect on the company’s results of operations and financial condition in the future.


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

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

The company cannot ensure that these projects are operated in compliance with the standards that AngloGold Ashanti applies to its other operations. If these joint ventures are not operated effectively or efficiently, including asgold. As a result of weaknessesthe uncertainties in the policies, proceduresprocess, the costs of due diligence and controls implementedaudit, or the reputational risks of defining their product or a constituent part as



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containing a “conflict mineral” may be too burdensome for the company’s customers. Accordingly, manufacturers may decide to switch supply sources or to substitute gold with other minerals not covered by the joint venture partners, the company’s investment in the relevant project could be adversely affected. In addition, negative publicity associated with operations that are ineffective or inefficiently operated, particularly relating to any resulting accidents or environmental incidents, could harm the company’s reputation and therefore its prospects and potentially its financial condition. Furthermore, any failure of joint venture partners to meet their obligations to AngloGold Ashanti or to third parties, or any disputes with respect to the parties’ respective rights and obligations,initiatives. This could have a material adversenegative impact on AngloGold Ashanti’s results of operations and financial condition. In particular, the company and Barrick retain equal representation, with neither party holding a deciding vote, on the board of the two companies that have overall management control of the Morila project in Mali and the Kibali project in the DRC, respectively, and all major management decisions for each of these two projects,gold industry, including approval of the budget, require board approval. If a dispute arises between the company and Barrick with respect to the Kibali or Morila project and the parties are unable to amicably resolve such dispute, it may be difficult for the parties to make strategic decisions relating to the project affected by such dispute, the day-to-day operations and the development of such project may be adversely affected and the company may have to participate in proceedings to resolve the dispute, which could adversely affect the company’s results of operations and financial condition.

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


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

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

In South Africa, AngloGold Ashanti has been subject to numerous claims, including class action litigation with respect to alleged OLD with two certified industry-wide classes, i.e. a Silicosis Class and a Tuberculosis Class. The settlement agreement in relation to this silicosis and tuberculosis class action came into effect on 10 December 2019, following the approval of the settlement by the High Court in Johannesburg in July 2019. As a result, a trust (Tshiamiso Trust) has been established for a minimum of 13 years responsible for making payments to eligible beneficiaries. The amount of monetary compensation will vary depending on the nature and seriousness of the disease. As of 31 December 2019, AngloGold Ashanti has recorded a provision of $65 million (2018: $63 million and 2017: $63 million) to cover the estimated settlement costs and related expenditure of the silicosis litigation. Although significant judgement was applied in estimating the costs incurred to settle the silicosis and tuberculosis class action claim, the final costs and related expenditure may differ from current cost estimates. In addition, even though management believes the assumptions are appropriate, changes in the assumptions may materially affect the provision and final costs of settlement. For example, the final settlement costs and related expenditure may be higher than the recorded provision depending on various factors, such as, among other things, potential changes in the settlement terms, differences in the number and profile of eligible claimants actually compensated compared to current estimates and fluctuations in foreign exchange rates. There can be no assurance that ultimately this matter will not result in losses in excess of the recorded provision, which may have a material adverse effect on AngloGold Ashanti’s financial position. For further information, see “Item 8A: Legal Proceedings-South Africa” and “Item 18: Financial Statements-Note 1-Accounting Policies-Provision for silicosis”.

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

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

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

The company may face additional health care challenges as a result of other public health crises, pandemics or epidemics. For example, there is a risk that the recent outbreak of the SARS-CoV-2 virus responsible for COVID-19 may significantly impair the health of our labour force. If spread among our workforce, COVID-19 may lead to a full or partial shutdown of the company’s mines in the affected areas and, as a result, a halt in related mining operations. COVID-19 also poses the risk that business may be curtailed or even suspended for an indefinite period of time due to shutdowns that may be requested or mandated by governmental authorities or otherwise elected by companies as a preventive measure to contain the spread of the virus. A curtailment or suspension at the company’s mining operations in certain or all regions due to COVID-19, either for a definite or indefinite period of time, may have a material adverse impact on our results of operations and financial condition.


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

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


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


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

In addition, deep groundwater contamination is a significant issue in South Africa, where groundwater in some older mining regions has infiltrated mined-out workings. Potential contamination risk to shallow ground and surface water resources can occur when water is exposed to sulphide-bearing rock in such situations. In South Africa, AngloGold Ashanti has identified a flooding and future pollution risk posed by deep groundwater in the Far West Rand goldfields, of which the company’s West Wits operations are part. As a result of the interconnected nature of underground mining operations in South Africa, any proposed solution for deep groundwater contamination needs to be a combined one supported by all the companies owning mines located in these goldfields. The potential costs of remediation and prevention of groundwater contamination at AngloGold Ashanti’s operations are subject to various climate change-related physical risks which may adversely impact its production activities, mine sites and personnel and/or result in resource shortages or environmental damages.

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

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



Compliance with emerging climate change-related requirements, including stricter regulations and the potential imposition of carbon taxes or emissions cap-and-trading schemes or the elimination of related subsidies, that are expected to be part of any transition to a lower-carbon economy, could result in significant additional costs and expose AngloGold Ashanti to additional liabilities.
The occurrence of events for
Greenhouse gases (“GHGs”) are emitted directly by AngloGold Ashanti’s operations as well as by external utilities from which AngloGold Ashanti is not insured orpurchases electricity. As a result of commitments made at the UN Climate Change Conference in Durban, South Africa, in December 2011, certain members of the international community negotiated a treaty at the Conference of the Parties of the UN Framework Convention on Climate Change in Paris in December 2015 (the “Paris Agreement”). The Paris Agreement, which came into force in November 2016, requires developed countries to set targets for which its insurance is inadequate may adversely affect cash flows and overall profitability.

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

GHG emissions reductions. In order to reducemeet national reductions commitments, including a goal of “net zero” carbon or maintaincarbon neutrality by 2050 set by numerous jurisdictions, it is likely that additional measures addressing GHG emissions, including stricter GHG emissions limits and/or some form of carbon pricing, will be implemented in various countries in the future. In 2021, AngloGold Ashanti committed to the International Council on Mining & Metals (“ICMM”) target of achieving net zero Scope 1 and Scope 2 GHG emissions by 2050, and, in partnership with value chain partners, to set Scope 3 GHG reduction targets, if not by the end of 2023, as soon as possible thereafter.

Carbon pricing refers to various initiatives that seek to internalise the social or environmental cost of its insurance program, AngloGold Ashanti may in some instances retain a portioncarbon on industries by imposing taxes, cap-and-trade schemes and/or elimination of free credits for carbon emissions. As governments continue to set aggressive decarbonisation targets to meet the financial loss associated with an insurable event. These financial losses could be significant and could have an adverse effect on its financial condition.

Insurance for certain risks in particular, such as loss of title to mineral property, political risks in certain jurisdictions, environmental pollution, or other hazards resulting from exploration and production, is not generally available to mining companies on acceptable terms. The availability and cost of insurance coverage can vary considerably from year to yearcommitments made as a result of events beyond the company’s controlParis Agreement, carbon pricing systems are likely to be implemented in a number of jurisdictions were AngloGold Ashanti operates. Such measures could require AngloGold Ashanti to reduce its direct GHG emissions or energy use or to incur significant costs for GHG emissions allowances or taxes, including as a result of previous claims. This can result in higher premiums and periodically being unable to maintain the levelscosts or types of insurance the company typically carries.

The failure to obtain adequate insurance could impairtaxes passed on by electricity utilities which supply the company’s operations. AngloGold Ashanti could also incur significant costs associated with capital equipment to reduce GHG emissions, as well as GHG monitoring and reporting and other obligations to comply with applicable requirements. Such measures could drive up the costs of capital goods, energy and other utility costs that are critical inputs to the company’s mining operations. Certain countries, including Australia and Brazil, have passed or are considering GHG trading or tax schemes and/or other regulation of GHG emissions, although the precise impact on AngloGold Ashanti’s operations cannot yet be determined.

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



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



SalesWhile AngloGold Ashanti believes that gold’s well-demonstrated roles as a risk hedge and portfolio diversifier will continue to support investment demand for gold, even in an environment of large quantities of AngloGold Ashanti’s ordinary sharesuncertainty and American Depositary Shares (ADSs),heightened market volatility from climate change and the perception that these sales may occurtransition to a lower-carbon global economy, a sustained economic downturn or other dilution of the company’s equity, could adversely affect the prevailing market price of the company’s securities.

The bulk of AngloGold Ashanti’s shares are held by a relatively small number of investors.  Accordingdisruptions in certain industrial sectors where gold is integral to information available to the company, AngloGold Ashanti’s five largest shareholders beneficially owned 31.47 percentmanufacturing, including electronic devices such as phones, computers and the top 10 largest beneficially owned 46.81 percent of AngloGold Ashanti’s ordinary shares as at 31 December 2019. The market price of the company’s securities could fall if large quantities of ordinary shares or ADSs are sold in the public market, if there is divestment by certain types or groupings of investors, or if there is the perception in the marketplace that such sales could occur.  Subject to applicable securities laws, holders of the company’s ordinary shares or ADSs may decide to sell them at any time.

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


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

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


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


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

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

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


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

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

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

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

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



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


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







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

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

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

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

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

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

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

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

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






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ITEM 4: INFORMATION ON THE COMPANY




4A.HISTORY AND DEVELOPMENT OF THE COMPANY

4A.    HISTORY AND DEVELOPMENT OF THE COMPANY

GROUP INFORMATION


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


CURRENT PROFILE


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


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


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


HISTORY AND SIGNIFICANT DEVELOPMENTS


Below are highlights of key corporate activities from 1998:


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


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


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


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


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


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






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


2013

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


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


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

2018
•Completion of the sales of the Moab Khotsong and Kopanang mines during 2017 with the transactions concluding on 28 February 2018.in South Africa for $300 million and $9 million, respectively.


2019
•Announcement of a review of divestment options for assets in South Africa, Mali and Argentina.
Sale of the Sadiola mine in Mali for $52.5million.


2020 YTD
Announcement of the sale•Sale of the remaining South African producing assets and related liabilities.liabilities to Harmony for $200 million plus deferred consideration based on future production at the Mponeng mine.

•Completion of the sales of the Sadiola and Morila mines in Mali for cash proceeds of $25 million and $1 million, respectively.

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

CAPITAL EXPENDITURE AND DIVESTITURES


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


For information concerning the company’s divestitures, currently in progress, including the sale of the remaining South African producing assets and related liabilities announced on 12 February 2020 and completed on 30 September 2020, refer to “Item 5A:5: Operating Results-Subsequent events”, “Item 18:and Financial Statements-Note 37-Subsequent events”Review and “Item 18: Financial Statements-Note 9-Discontinued operations and assets and liabilities held for sale”Prospects—Overview”.








4B.BUSINESS OVERVIEW




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4B.    BUSINESS OVERVIEW

AngloGold Ashanti Limited (AngloGold Ashanti) is an independent, global gold mining company with a diverse high-quality portfolio of operations, projects and exploration activities across 11nine countries on four continents. While gold is our principal product, we also produce silver (Argentina) and sulphuric acid (Brazil) as by-products. We are developing two projects in Colombia, including the Quebradona mine that is expected to produce both gold and copper, and continuing exploration activities in the United States. The Company is headquartered in Johannesburg, South Africa. Measured by production, AngloGold Ashanti is the third largest gold mining company in the world.

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


PRODUCTS

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


By-products of our gold mining operations, often a function of local geological characteristics, include silver in Argentina and sulphuric acid in Brazil.


OPERATIONS


OurWe have developed a high-quality, well-diversified asset portfolio, of 14including production from ten operations in seven countries (Argentina, Australia, Brazil, Ghana, Guinea, the DRC and threeTanzania) supported by greenfields projects in nine countries, excluding our South African assetsColombia and Sadiola mine which are held for sale,the United States along with a focused global exploration programme. Our portfolio comprises long-life, operating assets with differing ore body types, located in key gold-producing regions around the world.


Our operations and projects are grouped regionally as follows:
South
•Africa (West Wits(DRC, Ghana, Guinea and Surface Operations)Tanzania);
Continental Africa (Democratic Republic of the Congo, Ghana, Guinea, Mali and Tanzania);
•Americas (Argentina and Brazil, and projects in Colombia)Colombia and the United States); and
•Australia (Australia).

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


Our organisationalnew operating model, designed and management structure aligns with global best practiceintroduced to employees towards the end of 2021, aims to improve efficiency and support better operating outcomes by focusing only on work required to deliver the strategy, clarifying the mandates of corporate functions, properly resourcing our revenue-generating assets to deliver on their plans, and removing duplicate structures and activities. The new operating model implementation will be completed in corporate governance. By using our human capital efficiently, group support functions cover planning and technical, strategy, sustainability, finance, human resources, legal and stakeholder relations. The planning and technical functions focus on identifying and managing opportunities, maintaining long-term optionality, and ensuring the optimal use of our intellectual capital through a range of activities that includes brownfields and greenfields exploration as well as innovative research focused on mining excellence.early 2022.


EXPLORATION


Our exploration programme is focused on creating significant value for the company'scompany’s stakeholders by providing long-term optionality and improving the quality of our asset portfolio.


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


GOLD MARKET AND JEWELLERY DEMAND


During 2019,We have seen gold fulfilling its role as a haven in times of uncertainty and inflation. The ongoing conflict in the Ukraine and negative real interest rates are also supportive for the gold market was notably active with retail investors capitalising onmarket.

Gold is a long-term store of value independent of other assets. As its price often moves contra-cyclically, it can protect or enhance the higher prices by selling their existing holdings. In contrast, professional investors increased their holdings on the COMEX gold futures market, which reached all-time highs equivalent to 1,134 tonnes,performance of an investment portfolio and of Exchange Traded Funds (ETFs). Physically-backed ETFs and similar products closed 2019 at 2,885.5 tonnes with annual inflows of 401.1 tonnes, up 426% year-on-year.

In the fourth quarter of 2019, central banks added a net 109.6 tonnes to global official gold reserves bringing full-year net purchases to 650.3 tonnes, 1% lower than the 2018 total of 656.2 tonnes. This marks ten consecutive years of net purchases, with global official reserves now 5,000 tonnes higher than at the end of 2009 at close to 34,700 tonnes, and highlights the importance central banks place on having an allocation of gold in their reserve portfolio.

In 2019, global gold jewellery demand volumes fell 6 percent to 2,107 tonnes. Purely a second half of the year phenomenon, the weakness was primarily due to the big jump in the third quarter in the price of gold (in local currency terms), which impacted affordability. The price was well supported at elevated levels throughout the closing months of 2019, leading to a 10 percent year on year drop in the fourth quarter demand to 584.5 tonnes. In US dollar terms, gold jewellery demand grew by 3 percent to a five-year high of $94.3 billion. Much of this came from a 9 percent year on year increase in the fourth quarter demand, which reached

$27.8 billion, a seven-year high. Technology demandreduce volatility. Demand for gold weakened contributing to a 2 percent fallrose 10% in demand for gold2021, with increases in the sector.

Total supply was slightly higher in 2019, up two percent year on yearmost areas including central bank buying and jewellery sales, as broader economic uncertainty and inflationary fears remained and consumer markets rebounded from 4,673.0 tonnes in 2018 to 4,776.1 tonnes in 2019. This growth was attributable to the price performance of gold over the year, primarily through its impact on recycling, but also on net hedging to a certain extent. While mine production fell by 1 percent year on year, a sharp increase in gold recycling to its highest level since 2012 (up 11 percent year on year) helped boost higher total supply. Modest net producer hedging,poor sales during the first year of net hedging since 2016,the pandemic in 2020.

Central banks are also contributed to overall supply.a strong source of demand, with volumes having increased steadily over the past decade.


Historically, gold jewellery has been the strongest source of demand, accounting for around 50% of total demand. In 2021, jewellery demand rose by 52%, recovering from losses sustained during 2020. The averagelargest gold price for the year was $1,394/oz (2018: US$1,268/oz)jewellery markets are India and
China.

For more information, see “Item 5A: Operating Results—Introduction”. AngloGold Ashanti achieved an average price




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Table of $1,387/oz for gold sold during the year, a 10% increase over 2018 at $1,261/oz.Contents

COMPETITION


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


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


SEASONALITY


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


RAW MATERIALS


AngloGold Ashanti uses chemicals, including cyanide and lime, in the production of gold. These chemicals are available from a large number of suppliers and do not represent a material portion of the company’s costs. We are not currently experiencing any supply shortages on critical consumables utilised in the production of gold across our global operations. In addition, our stocking strategies account for potential lead time variation and supply constraints, thus minimising the risk of changes in the marketplace. While commodity pricing is subject to volatility over time, our contractual terms limit future changes. However the war in Ukraine has caused significant disruption to financial and commodity markets. At 23 March 2022, prices for several hard and soft commodities had reached their highest levels in a decade or more, or in some cases had set records. Brent crude oil touched levels not seen since 2012 and copper advanced to its highest level ever. The higher cost for basic commodities used in our host countries and communities, and as key production inputs, could impact the costs of our raw materials. The impact on global supply chains from the conflict will become clearer over time.


STRATEGY


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

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


Strategic focus areas
AngloGold Ashanti’s five strategic focus areas are set out below:
Focus on people,•People, safety, health and sustainability. PeopleThis strategic focus area seeks to align our strategy with our values and corporate citizenship responsibilities, which includes being accountable for our actions and respecting all stakeholders and the environment. In support of this, ESG principles are the foundationintegrated into all aspects of our business. Our business must operate according to our values if it is to remain sustainable in the long term.
Promote financial•Financial flexibility. We must ensure our balance sheet always remains able to meet our core funding needs.
This requires sufficient liquidity in the form of cash and available credit facilities, staggered tenor of our debt maturities and leverage that is below our lending covenants.
•Optimise overhead costs and capital expenditure. All spending decisions must be thoroughly scrutinised to ensure they are optimally structured and necessary to fulfil our core business objective.
•Improve portfolio quality. We have aOur asset portfolio of assets that must be actively managed to improve the overall mix of our production base as we strive for a competitive valuation as a business.
•Maintain long-term optionality. While we are focused on ensuringOur Mineral Resource and Mineral Reserve portfolio, our primary natural capital input, is essential to the most efficient day-to-day operationsuccessful growth of our business. Improving the quality of this natural capital, enhances our ability to create value. To maintain long-term optionality, we aim to continually replenish and increase the Mineral Resource and Ore Reserve pipeline so as to sustain the business we must keep an eye on creating a competitive pipeline of long-term opportunities.
over time.


INTELLECTUAL PROPERTY


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






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Table of Contents

THE REGULATORY ENVIRONMENT ENABLING ANGLOGOLD ASHANTI TO MINE


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


AngloGold Ashanti is subject to a wide range of laws and regulations governing all aspects of its operations, including such areas as environmental protection, reclamation, exploration, development, production, taxes, immigration, labour standards and employment issues, occupational health, mine safety, toxic substances and wastes, securities and foreign corrupt practices. AngloGold Ashanti has made, and expects to make in the future, significant expenditures to comply with these laws and regulations. Non-compliance can result in violations and legal claims, as well as substantial fines, penalties, reputational damage and delays

in day-to-day operations. Pending or proposed changes to existing laws and regulations, as well as any proposed or contemplated new laws or regulations could also have significant impacts on AngloGold Ashanti’s business and results of operations, the extent of which cannot always be predicted.


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


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




SOUTH AFRICA


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

General laws relating to mining


The Mineral and Petroleum Resources Development ActMPRDA

Mineral and Petroleum Resources Development Act


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

Mineral and Petroleum Resources Development Amendment Act

The Mineral and Petroleum Resources Development Amendment Act, No. 49 of 2008 (MPRDAA) was passed by Parliament in 2008 and(the “MPRDAA”) became effective on 7 June 2013. Its purpose is to amend the MPRDA in order to, amongst other things:
makeOn 23 April 2004, the Minister of Mineral Resources and Energy (MRE Minister) the responsible authority for implementing the requirements of the National Environmental Management Act, No. 107 of 1998 (NEMA) and specific environmental legislation as they relate to prospecting, mining, exploration, production and related activities incidental thereto on the prospecting, mining, exploration or production area;
align the MPRDA with the NEMA in order to provide for one environmental management system;
remove ambiguities in certain definitions;
add functions to the Regional Mining Development and Environmental Committee;
amend transitional arrangements so as to further afford statutory protection to certain existing old order rights; and
provide for matters connected therewith.

When the MPRDAA came into effect on 7 June 2013, only selected provisions became effective immediately. The MPRDAA contains the following provisions, amongst others:
Environmental authorisations: Provides for a prohibition on any prospecting and mining, or conducting technical co-operation operations, reconnaissance operations or any incidental work without an environmental authorisation (since 7 December 2014), permit and at least 21 days’ written notice to the landowner or lawful occupier.
Historic residues: Provides that the definitions of “residue stockpile” and “residue deposit” now include an old order right. This provision is intended to make old order dumps subject to the MPRDA so that old order dumps which are part of a mining area covered by a new order mining right could only be treated by the holder of the new order rights. Old order dumps not covered by a new order mining right would be considered a residue deposit to which the MRE Minister would have discretion to grant rights.
Applications: Provides that applicants for prospecting and mining rights must (since 7 December 2014) lodge an application for an environmental authorisation simultaneously with the application for rights. The Department of Mineral Resources should no longer accept more than one application in respect of the same area and mineral.
Environmental regulation: Provides that the MRE Minister is the responsible authority for implementing environmental provisions under NEMA as it relates to prospecting, mining, exploration, production or activities incidental thereto on a prospecting, mining, exploration or production area. An environmental authorisation issued by the MRE Minister shall be a condition prior to the issuing of a permit or the granting of a right in terms of the MPRDA.
Closure certificates: Provides that previous holders of old order rights or previous owners of works that have ceased to exist remain responsible for any environmental liability until the MRE Minister issues a closure certificate.

Draft Mineral and Petroleum Resources Development Bill & Draft Upstream Petroleum Resources Development Bill

In 2012, the MRE Minister published the Draft Mineral and Petroleum Resources Development Bill, 2012 (2012 MPRDA Bill) and, in 2013, a revised version of the 2012 MPRDA Bill (2013 MPRDA Bill) was submitted to Parliament. Following several amendments, the 2013 MPRDA Bill was eventually withdrawn by the South African government in September 2018.

On 24 December 2019, the MRE Minister published the Draft Upstream Petroleum Resources Development Bill, 2019 for public comment. This new bill provides for the upstream petroleum industry to be governed under a separate piece of legislation which does not come under the umbrella of the MPRDA. At this stage it is unclear whether the MRE Minister will submit a new bill in respect of the mineral resources industry proposing any of the amendments originally contained in the withdrawn 2013 MPRDA Bill.

Mineral and Petroleum Resources Development Regulations

On 23 April 2004, the MRE Minister(the “MRE Minister”) published, under the terms of the MPRDA, the Mineral and Petroleum Resources Development Regulations in Government Gazette No. 26275 under GNR. 527 (MPRDA Regulations). On 28 November 2019,order to implement the MRE Minister published, for public comment, the Draft Amendments to the Mineral and Petroleum Resources Development Regulations, 2019 (Draft MPRDA Regulations). Interested and affected parties were invited to submit written representations to the Draft MPRDA Regulations within 30 days of the publication thereof. The proposed amendments contained in the Draft MPRDA Regulations, include, inter alia, the following:
“Interested and affected parties”: Section 10 of the MPRDA requires consultation of interested and affected parties. The MPRDA Regulations currently define “interested and affected parties” as “a natural or juristic person with a direct interest in the proposed or existing operation or who may be affected by the proposed or existing operation”. The Draft MPRDA Regulations expand on the aforesaid definition by specifying that these include but are not limited to “host communities, landowners (traditional and title deed owners); traditional authority; land claimants; lawful land occupier; holder of informal land rights; the Department of Agriculture, Land Reform and Rural Development; any other person (including on adjacent and non-adjacent properties) whose socio-economic conditions may be directly affected by the proposed prospecting or mining operation; the local municipality and the relevant Government Departments, agencies and institutions responsible for the various aspects of the environment and for infrastructure which may be affected by the proposed project”;
“Meaningful consultation”: Meaningful consultation envisages a consultation process where “the applicant, has in good faith engaged the landowner, lawful occupier or interested and affected party in respect of the land subject to the application about the impact the prospecting or mining activities would have to his right of use of the land by availing all the information pertaining to the proposed activities enabling these parties to make an informed decision regarding the impact of the proposed activities”;
Information requirement: A new requirement is introduced requiring a mining company to provide certified copies of its right or permit in question, environmental authorisation and any relevant authorisations to landowners and lawful occupiers before commencing with operations;
Social and Labour Plans: A new requirement is introduced obliging mining companies to publish Social and Labour Plans (SLP) relating to their operations in English and one other dominant official language commonly used in the mine community on the mining company’s website, in local newspaper(s), as hard copies in local libraries, municipal offices, traditional authority offices and company/mine offices within 30 days of approval. Furthermore, the availability and content of the approved SLP must be announced, where feasible, in local radio stations and in relevant news outlets;
Repeal: Regulations 47-55 and 58-60 of the MPRDA Regulations are repealed as the topics governed by these regulations have since been incorporated into NEMA and the Environmental Impact Assessment Regulations, 2014 (as amended);

Disputes: A process is prescribed according to which the Regional Manager may resolve land access and “resettlement” disputes in terms of section 54 of the MPRDA . A procedure is also created for resolving land disputes which gives the MRE Minister or the Director-General certain powers to deal with complicated land disputes; and
Appeals: New procedures are proposed for lodging internal appeals in terms of section 96 of the MPRDA.

The Mining Charter

Mining Charter, 2004

The Broad-Based Socio-Economic Empowerment Charter for the South African Mining Industry, 2004 (Mining Charter, 2004) was published in August 2004. The Mining Charter, 2004 was developed in terms of section 100(2)(a)provisions of the MPRDA and took effectMPRDAA. These implementation regulations were amended on 1 May 2004. 27 March 2020.

The Mining Charter,mining charter

Since 2004, committed all stakeholdersa series of mining charters have been adopted in South Africa with the mining industry to transfermain purpose of transferring part of the ownership of 26 percent of theirmining assets to black or historically disadvantaged South Africans (HDSAs)(“HDSAs”) within 10 years. The Mining Charter, 2004a certain time period. Such mining charters also set targets for, amongst other things, the advancement of HDSAs into management positions, the employment of women, procurement of goods and services from HDSA-owned companies, training, community development and the upgrading of mine housing. Mining companies are required to formulate plans to achieve the aforementioned targets, identify current levels of beneficiation and indicate opportunities for growth.

The objectives of the Mining Charter,In 2004, were to:
promote equitable access to the nation’s Mineral Resources by all the people of South Africa;
substantially and meaningfully expand opportunities for HDSAs, including women, to enter the mining and minerals industry and to benefit from the exploitation of the nation’s Mineral Resources;
use the industry’s existing skills base for the empowerment of HDSAs;
expand the skills base of HDSAs in order to serve the community;
promote employment and advance the social and economic welfare of mining communities and the major labour-sending areas; and
promote beneficiation of South Africa’s mineral commodities.

The Mining Charter, 2004 envisaged measuring progress on transformation of ownership by:
taking into account, amongst other things, attributable units of production controlled by HDSAs;
allowing flexibility by credits or offsets, so that, for example, where HDSA participation exceeds any set target in a particular operation, the excess may be offset against shortfalls in another operation;
taking into account previous empowerment deals in determining credits and offsets; and
considering special incentives to encourage the retention by HDSAs of newly acquired equity for a reasonable period.

Under the Mining Charter, 2004, the mining industry agreed to assist HDSA companies in securing finance to fund participation in an amount of ZAR 100 billion over the first five years of the Mining Charter, 2004 being in effect. Beyond the ZAR 100 billion commitment, HDSA participation was to be increased on a willing seller, willing buyer basis, at fair market value, where the mining companies are not at risk.

Mining Charter, 2010

Following a reviewof the progress made in the transformation of the mining industry against the Mining Charter, 2004 objectives, the DMRE amended the Mining Charter, 2004. The Amendment of the Broad-Based Socio-Economic Empowerment Charter for the South African Mining and Minerals Industry, 2010 (Mining Charter, 2010)2004 was published on 20 September 2010. The Mining Charter, 2010 retained the requirement to achieve a 26 percent HDSA ownership of mining assets by the year 2014, initially introduced under the Mining Charter, 2004. It also introduced further amendments to the Mining Charter, 2004 which required mining companies to:
facilitate local beneficiation of mineral commodities;
procure a minimum of 40 percent of capital goods, 70 percent of services and, 50 percent of consumer goods from HDSA suppliers (i.e. suppliers in which a minimum of 25 percent + one vote of share capital is owned by HDSAs) by 2014. The aforesaid procurement targets are, however, exclusive of non-discretionary procurement expenditure;
ensure that multinational suppliers of capital goods put a minimum of 0.5 percent of their annual income generated from South African mining companies into a social development fund (effective 2010) to contribute to the socio-economic development of South African communities;
achieve a minimum of 40 percent HDSA demographic representation by 2014 at executive management (board) level, senior management (EXCO) as well as positions requiring core and critical skills, middle management level and junior management level;
invest up to 5 percent of annual payroll in essential skills development activities; and
implement measures to improve the standards of housing and living conditions of mineworkers by converting or upgrading mineworkers’ hostels into family units, attaining an occupancy rate of one person per room and facilitating home ownership options for all mineworkers in consultation with organised labour, by 30 April 2014.

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

The South African government takes a “Scorecard” approach to the different facets of promoting the objectives of the Mining Charter, 2010, e.g. when considering applications for the conversion of existing old order rights into new order rights. The Scorecard sets out the requirements of the Mining Charter, 2010 in tabular form which allows the DMRE to “tick off” areas where a mining company is in compliance, such as: human resource development; employment equity; migrant labour; mine community and rural development; housing and living conditions; ownership and joint ventures; beneficiation; and reporting.

The Scorecard attached to the Mining Charter, 2010 made provision for a phased-in approach for compliance with the view of achieving the abovementioned targets over a 5-year period ended on 30 April 2014. For measurement purposes, the Scorecard allocated various weightings to the different elements of the Mining Charter, 2010.

Failure to comply with the provisions of the Mining Charter, 2010 amounted to a contravention of the MPRDA, which may have resulted in the cancellation or suspension of a mining company’s existing mining rights and prevented its South African operations from obtaining any new mining rights. To date, AngloGold Ashanti has not yet received its “Scorecard” from the South African government in order to assess its compliance with the requirements of the Mining Charter, 2010.

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

Separately, the law firm Malan Scholes launched an application challenging the constitutionality of the Mining Charter, 2004 and the Mining Charter, 2010 requesting that the Charters be set aside. This application was dismissed.

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

Mining Charter, 2017

On 15 June 2017, the MRE Minister gazetted the Broad-Based Black Socio-Economic Empowerment Charter for the South African Mining and Minerals Industry, 2017 (Mining Charter, 2017), which came into effect on the same day. The Mining Charter, 2017 sought to align the Mining Charter, 2010 with the Broad-Based Black Economic Empowerment Act, No. 53 of 2003, in order to ensure meaningful participation of black people in the mining industry and to provide for policy and regulatory certainty to ease the investment in and development of the mining industry. The Minerals Council launched an urgent application to interdict the implementation of the Mining Charter, 2017 and set it aside. The DMRE filed papers in court and the urgent application was due to be heard in court on 14 September 2017. Notwithstanding the aforesaid urgent application in court, the MRE Minister and the Minerals Council reached an agreement on 13 September 2017 wherein the MRE Minister undertook to suspend the Mining Charter, 2017 pending the outcome of the DMRE/Minerals Council application.

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

Once the MRE Minister or his delegate is satisfied in terms of section 23(1)(h) of the MPRDA that the grant of a mining right (applied for in terms of section 22 of the MPRDA) will further the objects referred to in section 2(d) and (f) of the MPRDA (in accordance with the Charter referred to in section 100) and has granted the mining right applied for, the holder thereof is not thereafter legally obliged to restore the percentage ownership (howsoever measured, inter alia, wholly or partially by attributable units of South African production) controlled by HDSAs to the 26 percent target referred to in the Mining Charter, 2004 and the Mining Charter, 2010 , where such percentage falls below 26 percent, unless such obligation is specified in the terms and conditions of the mining right, as referred to in section 23(6) of the MPRDA;
The holder of a mining right’s failure to meet the 26 percent ownership target (either in terms of the Mining Charter, 2004 or the Mining Charter, 2010) does not amount to a material breach of the mining right for the purposes of section 47 of the MPRDA (i.e. failure to meet the 26 percent HDSA ownership target will not be a ground for suspension or cancellation of the mining right) nor does it constitute an offence in terms of section 98 of the MPRDA. This, however, does not apply where the terms and conditions of the right itself have stipulated that the 26 percent HDSA ownership must be retained;
If the 26 percent HDSA ownership participation has, for any reason, been diluted to a lesser percentage, there is no obligation to rectify such lower level once the holder of the mining right has initially achieved the 26 percent HDSA ownership participation requirement. This does not apply where the terms and conditions of the right itself have stipulated that the 26 percent HDSA ownership must be retained;

The Mining Charter, 2010 does not retrospectively deprive holders of mining rights of the benefits of credit offsets; the continuing consequences of empowerment transactions concluded after the MPRDA came into effect; and the right to off-set credits achieved in one operation against any shortfalls encountered in another operation; and
While it did not make any pronouncements on the validity of the Mining Charter, 2010, this should not be taken as a confirmation that the Mining Charter, 2010 was validly issued in terms of section 100(2) of the MPRDA or that “it is the charter contemplated in section 100” of the MPRDA.

On 19 April 2018, the DMRE filed a notice of intention to appeal the High Court judgment. Such notice was granted on 19 September 2019 entitling the DMRE to file an appeal at the Supreme Court of Appeal. Notwithstanding the repeal of the Mining Charter, 2017 by the adoption of the Mining Charter, 2018 (defined below), the findings of the High Court judgment remain relevant to mining right holders and these findings will be the subject of the pending appeal before the Supreme Court of Appeal which has not yet been progressed.

Mining Charter, 2018

On 27 September 2018, the Broad-Based Socio-Economic Empowerment Charter for the Mining and Minerals Industry, 2018 (Mining Charter, 2018)(the “2018 Mining Charter”) was published, and became effective onrepealing all prior mining charters. In September 2021, the same date. TheHigh Court of South Africa (Gauteng Division) held that the 2018 Mining Charter 2018 repeals the Mining Charter, 2004; the Mining Charter, 2010;is a policy document and the Mining Charter, 2017.does not, per se, bind holders of mining titles. The Mining Charter, 2018 stipulates that it is to be read together with implementation guidelines, gazetted on 19 December 2018. On 26 March 2019, the Minerals Council filed an application for judicial review toHigh Court also set aside certainvarious provisions of the 2018 Mining Charter, 2018. It is not clear when the matter will be heard in court.

Some of the key provisions of the Mining Charter, 2018 include:
Existing mining right holders who have achieved the 26 percent HDSA ownership target shall be recognized as compliant for the duration of the mining right. However, the “the once empowered always empowered” principle shall not be applicable on the transfer or renewal of the mining right.;
An application, which was lodged and accepted prior to the commencement of the Mining Charter, 2018 shall be processed in terms of the Mining Charter, 2010 with a minimum of 26 percent HDSA ownership. The right holder must within a period of five years from the effective date of such mining right, increase its HDSA ownership to a minimum of 30 percent;
A new mining right must have a minimum of 30 percent HDSA ownership, which shall include economic interest plus corresponding percentage of voting rights per mining right or in the mining company which holds a mining right. The 30 percent HDSA ownership must be distributed as follows:
a minimum of 5 percent non-transferable carried interest to qualifying employees;
a minimum of 5 percent non-transferable carried interest or “equity equivalent benefit” to host communities; and
a minimum of 20 percent effective ownership in the form of shares to a BEE entrepreneur, 5 percent of which must preferably be for women;
The Mining Charter, 2018 reduced the offset available for beneficiation from 11 percent to 5 percent, but on the basis that existing mining right holders, who qualified for the previous offset, would be allowed to retain it for the duration of the right. Right holders must submit a Beneficiation Equity Equivalent Plan (as outlined in implementation guidelines) to the DMRE for approval. Further, mining right holders must submit an annual progress report to the DMRE, which report must be in line with the approved Beneficiation Equity Equivalent Plan;Charter. In
Mining companies must have Historically Disadvantaged Persons (as defined in the MPRDA) representation at various levels



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Table of the company, i.e. board 50 percent (20 percent women); executive management 50 percent (20 percent women); senior management 60 percent (25 percent women); middle management 60 percent (25 percent women); junior management 70 percent (30 percent women) and a minimum 1.5 percent of all employees must be employees with disabilities. A period of five years is provided for mining companies to align with the employment equity targets and a 5-year plan indicating progressive implementation of the provisions of the employment equity targets must be submitted to the DMRE within 6 months of the publication of the Mining Charter, 2018;Contents
New procurement targets have been introduced. 70 percent of total mining goods procurement spend must be on South African manufactured goods. South African manufactured goods are defined as goods with a minimum of 60 percent local content during the assembly or manufacturing of the product in South Africa. The calculation of local content excludes profit mark-up, intangible value such as brand value and overheads. A minimum of 80 percent of the total spend on services must be sourced from South African companies. The transitional arrangement period for compliance with the procurement targets is five years from the publication of the Mining Charter, 2018; and
The Mining Charter, 2018 provides for the specific application of certain of the elements of the Mining Charter, 2018 to holders of licences under the Precious Metals Act, No. 37 of 2005 and the Diamonds Act, No. 56 of 1986 with variations and exemptions depending on the size of the licence holder. For example, enterprises with a turnover of less than ZAR 1 million are exempt from the Mining Charter, 2018 in its entirety. Enterprises with a turnover of more than ZAR 50 million must comply with the Mining Charter, 2018 in its entirety.

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

submitted an application for consent of the MRE Minister to amend the clauses of the two West Wits mining rights which record the BEE transactions entered into and implemented by the company accordingly and provided the requested information.  The DMRE has not reverted to AngloGold Ashanti on the submitted application which remains pending. Should AngloGold Ashanti be found in breach of its obligations to comply with the MPRDA or the applicable mining charter, it may be compelled to conclude additional BEE transactions. In the event that AngloGold Ashanti applies for a new mining right, it will have to comply with the Mining Charter, 2018 ownership requirements and it will not be entitled to rely on its current BEE ownership structure.

The Code of Good Practice for the Minerals Industry

Section 100(1)(b) of the MPRDA obliged the MRE Minister to develop a code of good practice forNovember 2021, the South African minerals industry (Code) which was publishedDepartment of Mineral Resources and Energy (“DMRE”) informed the parliamentary portfolio committee on 29 April 2009. mineral resources and energy that it does not intend to appeal the outcome of the judgement, but instead will consider steps to achieve the empowerment objectives through legislative amendments to the MPRDA.

The CodeB-BBEE Act

The Broad-Based Black Economic Empowerment Act, No. 53 of 2003 (the “B-BBEE Act”) is a guiding documentlaw of general application in respect of Broad-Based Black Economic Empowerment (“B-BBEE”) and its purpose isenables the Minister of Trade and Industry to set out administrative principles to enhance implementationdrive B-BBEE across all sectors of the Mining Charter, 2004 (including later iterations thereof) and the MPRDA. The Code is to be read in combination with the Mining Charter, 2004 (including later iterations thereof) and other legislation relating to measurement of socio-economic transformation in the South African mining industry. The Code does not replace the Mining Charter, 2004 (including later iterations thereof), nor any key legislation and laws relating to the minerals and the petroleum industry, but serves as a statement of policy and principles that assists in the implementation of both the MPRDA and the Mining Charter, 2004 (including later iterations thereof).

The Housing and Living Conditions Standard

On 20 March 2019, the MRE Minister published the draft Reviewed Housing and Living Conditions Standard for the Minerals Industry, 2019 (Draft Reviewed Housing Standard) in the Government Gazette No. 42326 under GNR. 449 inviting interested and affected parties to submit written representations on the draft within 30 days of the publication of the notice. The Draft Reviewed Housing Standard proposes, among other things, that:
An existing mining right holder must within a period of 6 months from the date of publication of the Draft Reviewed Housing Standard submit a detailed Housing and Living Conditions Plan;
A new mining right holder must within a period of 12 months from the date of publication of the Draft Reviewed Housing Standard consult with organized labour, the relevant municipality and the Department of Human Settlements and enter into a housing and living conditions agreement with organized labour regarding its mine employee housing and living conditions needs;
A mining right holder will be required after consultation with other stakeholders to acquire land within close proximity of the mine operations and plan housing needs in support of compact, integrated and mixed land use environment; and
A mining right holder must offer employees a range of housing options which include, amongst other things, rental accommodation, home ownership, government led social housing and living out allowance.

Draft Mine Community Resettlement Guidelines

On 4 December 2019, the MRE Minister published the Draft Mine Community Resettlement Guidelines, 2019 (Draft Resettlement Guidelines) for public comment in the Government Gazette No. 42884 under GNR. 1566. The closing date for submission of written representations was 31 January 2020. Some of the key provisions of the Draft Guidelines include the following:
The Draft Resettlement Guidelines apply to both applicants (Applicants) and existing holders (Holders) of mining rights, prospecting rights and mining permits in terms of the MPRDA where prospecting or mining activities will have the effect of displacement or resettlement of the interested and affected parties (as defined in the Draft Resettlement Guidelines meaning any person, group of persons, or organization interested in or affected by a resettlement activity and any organ of state that may have jurisdiction over any aspect of the resettlement activity);
Applicants and Holders are required to make provision for development of a Resettlement Plan, Resettlement Action Plan and Resettlement Agreement; and
No mining activity shall commence until a Resettlement Agreement is reached on the appropriate amount of compensation as a result of the resettlement of the affected parties. An Applicant/Holder, where feasible, must provide financial assistance to affected parties. A “Party to Party dispute resolution process” must be invoked prior to embarking on the Regional Manager-led process in section 54 of the MPRDA.

The BBBEE Amendment Act

On 23 Januaryeconomy. In 2014, the President of South Africa assented to the Broad-Based Black Economic Empowerment Amendment Act, No. 46 of 2013 (BBBEE(the “B-BBEE Amendment Act). The BBBEE Amendment ActAct”) came into effect on 24 October 2014 with the object of amending the Broad-Based Black Economic Empowerment, 2003 (BBBEE Act)B-BBEE Act to provide a framework of principles, strategies and guidelines aimed at promoting the broad-based socio-economic empowerment of HDSAs across the South African economy and society in the form of ownership, management, employment equity, skills development, preferential procurement, enterprise development and socio-economic development. The BBBEE Amendment Act includes a number of changes to the framework under the BBBEE Act, including:
amending and clarifying the definition of the intended beneficiaries of such framework;
amending the definition of “Broad-Based Black Economic Empowerment” or “BBBEE”, to introduce the concept of viable BBBEE and providing standards for that preferential procurement;

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

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

On 27 October 2015, the Minister for Trade and Industry published Government Notice 1047 of Government Gazette No. 39350, which declared an exemption in favour of the DMRE from applying the requirements contained in section 10(1) of the BBBEE Act for a period of 12 months. The exemption can be read as confirmation that the DTI sees the BBBEE Codes as “applicable” to the mining industry after the exemption is lifted on 27 October 2016.

Additionally, the revised BBBEE Codes of Good Practice (Revised BEE Codes) became effective on 1 May 2015. Both the BBBEE Amendment Act and the Revised BEE Codes expressly stipulate that where an economic sector in South Africa has a Sector Code in place for BEE purposes, companies in that sector must comply with the Sector Code. For purposes of the BBBEE Act, none of the mining charters referred to above (i.e. Mining Charter, 2004; Mining Charter, 2010; Mining Charter, 2017 or Mining Charter, 2018) are Sector Codes. It is not, at this stage, clear what the interplay between the applicable mining charter and the BBBEE Act and Revised BEE Codes is. The government could designate the applicable mining charter as a Sector Code in the future, in which case it would be under the auspices of the BBBEE Act, but it has not chosen to do so with respect to the Mining Charter, 2010 in its Government Gazette notice of 17 February 2016 which designated, for example, the tourism sector code and property sector code as applicable and valid Sector Codes. Until such determination is made, if at all, the applicable mining charter remains a stand-alone document under the auspices of the MPRDA and may become subject to the trumping provision discussed above. The resulting legal uncertainty could be addressed by a clarification from the government or by the matter receiving judicial attention.

Historically, there has been some debate as to whether the BBBEE Act and the BBBEE Codes apply to the mining industry, taking into account that the BBBEE Act requires every organ of state and public entity to give due consideration to the BBBEE Codes when issuing licenses, concession or other authorisations.

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

Land Expropriation

Constitutional Amendment Bill

On 27 February 2018, the National Assembly resolved to assign the Constitutional Review Committee (CRC) to review section 25 of the Constitution of the Republic of South Africa (Constitution) and other clauses where necessary to allow the state to expropriate land in the public interest without compensation. This resolution follows the African National Congress’s (ANC) resolution at its elective conference in December 2017 to pursue expropriation of land without compensation in a manner that does not destabilise the agricultural sector, endanger food security or undermine economic growth and job creation. In its report dated 15 November 2018, which was adopted by Parliament on 4 December 2018, the CRC recommended that section 25 of the Constitution be amended to make explicit that expropriation of land without compensation is a legitimate option for land reform. As a result, the draft Constitution Eighteenth Amendment Bill, 2019 (Constitutional Amendment Bill) was published for public comment on 6 December 2019. The Constitutional Amendment Bill proposes that where land and any improvements thereon are expropriated for the purposes of land reform, nil compensation may be payable. The Constitutional Amendment Bill does not specify the circumstances in which a court may determine that the amount of compensation is nil, but states that national legislation must set out such circumstances.


Draft Expropriation Bill

Separately, the Draft Expropriation Bill, 2019 (Expropriation Bill) was published for public comment on 21 December 2018. The Expropriation Bill proposed the inclusion of a provision in the Constitution to the effect that it may be just and equitable for nil compensation to be paid where land is expropriated in the public interest. The Expropriation Bill has not been progressed.

MPRDA provisions

Section 5(3) of the MPRDA entrenches a statutory right of access for the mining right holder to the mining area for the purposes of conducting mining operations and does not require the mining right holder to own the land on which it conducts operations. Once a mining right is granted, the landowner has no right to refuse the conducting of mining operations on the property in question and is not entitled to compensation from the mining right holder for the use of the land for mining operations conducted in terms of the MPRDA. The DMRE may, in terms of section 54(3) of the MPRDA, request the parties concerned to endeavour to reach an agreement for the payment of compensation for loss or damage if the DMRE concludes that the landowner has suffered or is likely to suffer loss or damage as a result of the mining operations. Section 55 of the MPRDA further provides the MRE Minister with powers to expropriate the land in question for purposes of mining.

Tax laws relating to mining

The Royalty Act

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

The royalty in respect of refined minerals (which include gold and silver) is calculated by dividing earnings before interest and taxes (EBIT) as determined by the Royalty Act, by the product of 12.5 times gross revenue calculated as a percentage, plus an additional 0.5 percent. EBIT refers to taxable mining income (with certain exceptions such as no deduction for interest payable and foreign exchange losses) before assessed losses but after capital expenditure. A maximum royalty of 5 percent of gross revenue has been introduced for refined minerals.

The royalty in respect of unrefined minerals (which include uranium) is calculated by dividing EBIT by the product of nine times gross revenue calculated as a percentage, plus an additional 0.5 percent. A maximum royalty of 7 percent of gross revenue was introduced for unrefined minerals. Where unrefined minerals (such as uranium) constitute less than 10 percent in value of the total composite minerals, the royalty rate in respect of refined minerals may be used for all gross revenue and a separate calculation of EBIT for each class of minerals is not required. For AngloGold Ashanti, this means that currently the company will pay a royalty based on refined minerals (as the unrefined minerals (such as uranium) for AngloGold Ashanti for 2019 constituted less than 10 percent in value of the total composite minerals). The rate of royalty tax payable for 2019 was 0.5 percent of gross revenue of the company’s South African operations.

In 2013, the President appointed the Davis Tax Committee to review the current mining tax regime.  In the Second and Final Report on Hard Rock Mining released in November 2017, the Davis Tax Committee recommended an update and refinement of the schedules in the Royalty Act, suggesting it should form part of regulations made by the Minister of Finance in the Government Gazette rather than forming part of the legislation itself. The Davis Tax Committee called upon the South African Revenue Service (SARS) to issue a comprehensive interpretation notice on the Royalty Act to dispel industry uncertainty.

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


Environmental laws relating to mining


National Environmental Management Act

The MPRDAA repealed the sections in the MPRDA that dealt with environmental regulation of mining and prospecting operations. This was the first step in migrating environmental regulation provisions from the MPRDA into National Environmental Management Act, No. 107 of 1998, (NEMA). NEMA was thenas amended by the National Environmental Management Amendment Act, No. 62 of2008 and then again by the National Environmental Management Laws Amendment Act, No. 25 of 2014, and now(the “NEMA”) includes provisions to deal with environmental regulation of mining and prospecting, which provisions are administered by the MRE Minister.


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


See also “Item 4B: Business Overview-Mine Site Rehabilitation and Closure” and “Item 4B: Business Overview-Environmental, Health and Safety Matters”.

Financial Provision Regulations

On 20 November 2015,From an environmental perspective, given the Regulations Pertainingwide scope of the statutory duty of care in South African environmental law, erstwhile land owners may be held liable for historic contamination by the regulatory authorities. The “polluter pays” principle in South Africa enables the competent authority to seek recourse against various responsible parties based on their historical or current relationship to the Financial Provision for Prospecting, Exploration, Miningsource and receptor of degradation or Production Operations were published inpollution. The duty of care also applies retrospectively to significant pollution or degradation that occurred before the Government Gazette No. 39425 under GNR. 1147 (Financial Provision Regulations, 2015)entry into force of NEMA (i.e., and now fall under NEMA. The Financial Provision Regulations, 2015 are similar to the previous provisions under the MPRDA. However, the mining industry believes some of the significant changes introduced by the Financial Provision Regulations, 2015 include:
broader definition of “financial provision” requires the holder to make financial provisions for any adverse impacts that might arise from mining operations and is not limited to those identified in the environmental management plan (EMP)29 January 1999), as was previouslywell as significant pollution or degradation that arises or is likely to arise at a different time from the case;
requiringactual activity that caused the holder to annually assess environmental liability estimates and adjust the financial provision to the satisfaction of the MRE Minister;
requiring the holder to submitcontamination (e.g., latent or residual impact) or arises through an audit report from an independent auditor to the MRE Minister on the adequacy of the holder’s financial provision. If the MRE Minister is not satisfied with the assessment, he is entitled to appoint his own auditor;
requiring that a holder maintain and retain a financial provision following the issuanceact or activity of a closure certificate. Furthermore, the MRE Minister may retain such portion of the financial provision as may be required to rehabilitate the closed mining or prospecting operationperson that exacerbates pre-existing contamination. The authorities can also seek compensation in respect of latent, residual or any other environmental impacts, including the pumping of polluted or excess water, for a prescribed period. Thisclean-up measures that it is not only in respect of holders of rights, but also now in respect of holders of old order rights and holders of works;
before the coming into effectrequired to take on behalf of the Financial Provision Regulations, 2015, holdersresponsible parties and apportion liability amongst the responsible parties, which could make financial provision for annual rehabilitation, final rehabilitationtechnically include a historic landowner or mining company that caused the pollution. Although the purchasers of AngloGold Ashanti’s assets in South Africa have contractually assumed all environmental liability associated with its former South African operations and post-closure residual impacts and water pumping by adding up the total amount for these three types of rehabilitation and making financial provisionagreed to indemnify AngloGold Ashanti for the same, using one orthere remains a mixrisk, at least theoretically, of four methods:
depositing cash instatutory liability to the DMRE bank account;state.
keeping the amount in a rehabilitation trust in accordance with the Income Tax Act, No. 58 of 1962 (the amount in the trust can only relate to financial provision for post-closure residual impacts and water pumping and not for annual and final closure);
obtaining a financial guarantee or a bank guarantee in respect of the amount; or
using a method determined by the Director-General (uncommon in practice).
a holder’s financial provision at any given time must be equal to the sum of actual costs of implementing all three broad classes of rehabilitation for at least 10 years from such date of assessment of financial provision; and
the financial provision liability associated with annual rehabilitation, final closure and latent or residual environmental impacts may not be discounted based on value of the assets at mine closure or mine infrastructure salvage value.

Failure to align to the Financial Provision Regulations, 2015 constitutes non-compliance with section 24P of NEMA, which entitles the DMRE to issue a directive to remedy such non-compliance and failure to comply with the directive is an offence under section 49A(g) of NEMA. A person convicted of an offence under section 49A(g) of NEMA is liable to a fine not exceeding ZAR 10 million and/or to imprisonment for a period not exceeding 10 years.

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

On 21 September 2018, the Acting Minister of Environmental Affairs published a series of amendments to the Financial Provision Regulations, 2015 which included, among other things, the repeal of prior amendments and the extension of the deadline for compliance to 19 February 2020.

On 17 January 2020, the Minister of Environment, Forestry and Fisheries published another amendment to the Financial Provision Regulations, 2015. This amendment extended the transitional period for certain existing rights and permit holders until 19 June 2021.

Proposed Financial Provision Regulations

In May 2019, the South African Proposed Regulations Pertaining to the Financial Provision for the Rehabilitation and Remediation of Environmental Damage caused by Reconnaissance, Prospecting, Exploration, Mining or Production Operations, 2019 (Proposed Financial Provision Regulations, 2019) were released for public comment.


The Proposed Financial Provision Regulations, 2019 provide that holders of prospecting rights and mining rights or permits, who applied for the right or permit prior to 20 November 2015, will be required to comply with the new regulations no later than three months following the first financial year end of the relevant holder subsequent to 19 February 2020. Some of the key features of the Proposed Financial Provision Regulations, 2019 and the concerns raised during the commenting process by mining companies are the following:
Regulation 7(3) provides that “funds set aside for financial provision must remain in place until a closure certificate is issued, unless a withdrawal as contemplated in regulation 11 is allowed”. Regulation 11 outlines the procedure for holders to follow when seeking to withdraw financial provision and provides that the MRE Minister must approve withdrawals with the concurrence of the Minister of Human Settlements, Water and Sanitation and the Minister of Finance. The withdrawal of financial provision can only occur after the stringent requirements stipulated in regulation 11 are met and are only allowed for decommissioning and final closure and not for ongoing or concurrent rehabilitation. Since the financial provision is not accessible to the holder for use during the life of the right, the holder has to effectively make double provision (the first being financial provision and the second being actual expenditure incurred for rehabilitation). The implications of regulation 7(3), read with regulation 11, may include a rise in the amount of financial guarantees provided in connection with mining operations;
Regulation 12(2) prescribes that the determination, review and assessment of financial provision must be undertaken by a specialist which must be audited by an independent auditor as provided for in regulation 13(1)(a) and submitted for approval to the MRE Minister. This requirement places a significant administrative and cost burden on the mining industry; and
Value-added tax (VAT) is included in the financial provision calculation. This inclusion is seen as onerous by the mining industry.


AngloGold Ashanti’s rights and permits


Under South African law,Pursuant to the SA Sale Agreement, AngloGold Ashanti and Golden Core executed a mining right will be granted to a successful applicant for a period not exceeding 30 years. Thereafter,notarial deed of cession of the mining rights may be renewed for additional periods not exceeding 30 years at a time. A mining right can be cancelled if the mineralwith DMRE references GP 30/5/1/2/2/01 MR and GP 30/5/1/2/2/248 MR to which such mining right relates is not mined at the production rate undertaken by the mining right holder in the approved mining work programme. A prospecting right will be granted to a successful applicant for a period not exceeding five yearstransfer and may only be renewed once for three years. In addition, a retention period of up to three years after prospecting could be allowed under certain circumstances, which may be renewed once for up to two years, subject to certain conditions. Refining licences are granted by the South African Diamond and Precious Metals Regulator for a period not exceeding 30 years and may be renewed for an unlimited number of further periods.

AngloGold Ashanti currently holds threecede these mining rights in South Africa. These mining rights relate to operations inGolden Core (the “Deed of Cession”). On 14 June 2021, the West Wits area and have been successfully converted, executed andDeed of Cession was registered as new order mining rights at the Mineral and Petroleum Titles Registration Office (MPTRO)(the “MPTRO”). Mining

With respect to the mining right GP 30/5/1/2/2/01 MR (DMRE reference) in respect of gold, silver, nickel and uranium covers an area of approximately 6,477 hectares and expires in 2036. Mining rightheld under DMRE reference GP 30/5/1/2/2/11 MR, (DMRE reference) in respect of gold, silver, nickel and uranium covering an area of approximately 31 hectares expired in 2016 and the company is currently in the process of renewing this mining right following a timely submission of a renewal application. Mining right GP 30/5/1/2/2/248 MR (DMRE reference) in respect of sand covers an area of approximately 196 hectares and expires in 2022. AngloGold Ashanti currently does not hold any prospecting rights in South Africa.

AngloGold Ashanti also held a mining permit for the recovery of sand and clay in the West Wits area. Mining permit GP 30/5/1/2/2/174 MP (DMRE reference) in respect of sand and clay expired in 2017 and the company is currently in the process of renewing this mining permit following a timely submission of a renewal application.

AngloGold Ashanti submittedGolden Core agreed to make an application in terms of section 102 of the MPRDA in March 2017 to consolidateat the company’s three mining rights and its mining permit in South Africa into one singleDMRE after the closing date of the SA Sale Agreement requesting, among other matters, the incorporation of this mining right (GPinto the mining right with DMRE reference GP 30/5/1/2/2/01 MR) (Consolidation Application)MR (the “Harmony Consolidation Application”). TheAngloGold Ashanti also executed a notarial conditional deed of abandonment pursuant to which it conditionally abandons this mining right in terms of section 56(f) of the MPRDA (the “Deed of Abandonment”) on condition that ministerial consent is granted in respect of the Harmony Consolidation Application. On 17 January 2022, the Harmony Consolidation Application requestedwas submitted to the DMRE to suspendDMRE. On the renewal applications for mining right GP 30/5/1/2/2/11 MR and mining permit GP 30/5/1/2/2/174 MP in order to processdate of the Consolidation Application. The DMRE acknowledgedgrant of the Harmony Consolidation Application, in July 2018 and is currently considering the Consolidation Application.

In addition, AngloGold Ashanti holdswill cease to be a refining licence (AP06789)holder of any mining rights in South Africa. Once the transaction has been fully implemented, the general laws relating to mining outlined above will no longer be applicable to the Vaal River area expiringcompany, other than the statutory duty of care in 2039.terms of NEMA as described above.




CONTINENTAL AFRICA REGION


Democratic Republic of the Congo (DRC)


General laws relating to mining


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


As regards




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With respect to the application of the Reformed DRC Mining Code and Reformed DRC Mining Regulations, Kibali Goldmines SA (Kibali)S.A. (“Kibali Goldmines”) has reserved and continues reserving its rights, including, without limitation, its stability rights under, among other legal sources,

the 2002 DRC Code. Discussions with the DRC government on these issues and the possible application of incentives that may be available under the Reformed DRC Mining Code and Reformed DRC Mining Regulations, in particular under article 220 of the Reformed DRC Mining Code which provides that the Prime Minister of the DRC may grant a number of incentives to provinces with infrastructure deficits to encourage economic development from mining resources, are ongoing.


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


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

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

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

Tax laws relating to mining

The Reformed DRC Mining Code sets out an exclusive and exhaustive tax and customs regime applicable to mining activities. Mining title holders are subject, amongst other things, to a corporate income tax of 30 percent, a windfall tax of 50 percent and are required to pay mining royalties to the DRC government. The royalty rate applicable to gold has been set at 3.5 percent. Mining title holders are also required to contribute a minimum of 0.3 percent of total turnover to community development. The standard rate of VAT is 16 percent and is applicable to all mining companies.


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


Regarding exchange control rules, theTax laws relating to mining

The Reformed DRC Mining Code requiressets out an exclusive and comprehensive tax and customs regime that is applicable to mining activities. Mining title holders repatriate onshore 60are subject, amongst other things, to a corporate income tax of 30 percent, a windfall tax of 50 percent (subject to certain prerequisites) and are required to pay mining royalties to the DRC government. The royalty rate applicable to gold has been set at 3.5 percent. Mining title holders are also required to contribute a minimum of 0.3 percent of sale revenues duringtotal turnover to community development.

The standard rate of VAT is 16 percent and is applicable to all mining companies. In the investment amortization periodDRC, Kibali Goldmines is due certain refunds of VAT which, to date, remain outstanding. During 2021, AngloGold Ashanti did not recover any VAT offsets and 100 percent oncerefunds from its operations in the investment amortization is completed.DRC. We believe that our attributable share of the net recoverable VAT balance (including recoverable fuel duty and after discounting provisions) owed to us by the DRC government amounted to $73 million as of 31 December 2021. While an agreement was reached with the DRC government on the reimbursement of the refundable VAT in 2018, uncertainty remains regarding the timing and level of cash receipts and offsets against other taxes for purposes of the recovery of our VAT receivables in the DRC.


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


Article 220 of theForeign exchange control regime

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

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

On 18 July 2012, the Convention between the government of the Republic of South Africa and the government of the DRC for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income (Convention) came into effect. The Convention is applicable to (i) withholding taxes on amounts paid or credited on or after 1 January 2013; and (ii) other income taxes, levied in respect of taxable periods beginning on or after 1 January 2013. The Convention reduces the withholding tax on dividends paid by companies residentits operations in the DRC, in the form of dividends from Kibali (Jersey) Limited. Kibali (Jersey) Limited received such cash from Kibali Goldmines S.A. in the form of loan repayments (AngloGold Ashanti’s attributable share: $150 million) and dividends (net of withholding taxes) (AngloGold Ashanti’s attributable share: $81 million). Our attributable share of the outstanding cash balances awaiting repatriation from the DRC amounted to companies resident in South Africa from 20 percent$499 million as of 31 December 2021. The cash and cash equivalents held at Kibali Goldmines are subject to 5 percentvarious steps before they can be distributed to Kibali (Jersey) Limited and on interest paid by companies residentare held across four banks in the DRC, to companies resident in South Africa from 20 percent to 10 percent. A South African company must own at least 25 percentincluding two domestic banks.






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

AngloGold Ashanti’s rights and permits


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

The Kibali gold mineproject is operated by Barrick.


KibaliBarrick Gold Corporation and comprises 10ten exploitation permits, of which seveneight expire in 2029 and threetwo in 2030. The Kibali gold project coversThose exploitation permits (11447, 11467, 11468, 11469, 11470, 11471, 11472, 5052, 5073, and 5088) cover an area of approximately 1,836 km2 in the Moto goldfields.



Ghana


General laws relating to mining


Control of minerals and mining companies


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

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

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

In 2019, Parliament passed the State Interests and Governance Authority Act, 2019 (Act 990) establishing the State Interests and Governance Authority (SIGA). The functions of SIGA include the oversight and administration of the State’s interests in state-owned enterprises, joint venture companies and other entities in which the State has an interest. This applies to mining companies on account of the Government’s mandatory free-carried equity interest in mining companies as provided for under the GMM Act. However, the Government of Ghana does not have a free-carried interest in any of AngloGold Ashanti’s mines in Ghana.


Stability and development agreements


The GMM Act provides for stability agreements as a mechanism to guarantee certain terms and conditions, mainly fiscal, to which a company’s operations are subject for a period of 15 years. Stability agreements are subject to ratification by Parliament. A development agreement, as provided for by the GMM Act,, may be made available to a mineral right holder with a proposed investment exceeding USD 500$500 million. The GMM Act also provides that the terms of a development agreement may contain stability terms as provided for in stability agreements. AStability and development agreement isagreements are subject to parliamentary ratification.

In January 2020, the Minerals Commission proposed certain amendments to the GMM Act, including, among other measures, the abolishment of development agreements and the shortening of stability agreements from a period not exceeding 15 years to a period of five years (with a possible extension of another five years). The Minerals Commission is currently engaging with stakeholders on these proposed amendments. Following this engagement, the Minerals Commission may present the proposed were proposed. If adopted, however, such amendments to the LNR Minister who can then decide to submit a draft bill to Parliament. If such bill were to be adopted by Parliament, it would not apply retroactively. As a result, the proposed amendments willretroactively and would therefore not have an impact on existing development agreements, including the Obuasi Development Agreement (as described below).


Ghana Stability Agreement


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

UnderIn June 2018, the Ghana Stability Agreement the Government of Ghana agreed:
ceased to extend the term of the mining lease relatingapply to the Obuasi mine until 2054 on terms existing prior to the business combination;
to maintain, foras a period of 15 years, the royalties payable by AngloGold Ashanti with respect to its mining operations in Ghana at a rate of 3 percent per annumresult of the total revenue from minerals obtained by AngloGold Ashanti from such mining operations;
to ensure the income tax rate would be 30 percent for a periodparliamentary ratification of 15 years. The agreement was amended in December 2006 to make the tax rate equal to the prevailing corporate rate for listed companies if the rate was less than 30 percent; and
to permit AngloGold Ashanti and any or all of its subsidiaries in Ghana to retain up to 80 percent of export proceeds in foreign currencies offshore, or if such foreign currency is held in Ghana, to guarantee the availability of such foreign currency.

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


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

In relation to the Obuasi mine, AngloGold Ashanti (Ghana) Limited (AGA Ghana) negotiated a new development agreement and a new tax concession agreement within relation to the Government. These regulatory and fiscal agreements, which govern the redevelopment of the Obuasi mine have received parliamentary approval in June 2018. As a result of the ratification of these agreements,(as described below). However, the Ghana Stability Agreement ceasedcontinued to apply to the Obuasi mine.

Notwithstanding the aforementioned, the Ghana Stability Agreement still applied to the Iduapriem mine until it expired in April 2019. Since this expirationthen, AngloGold Ashanti (Iduapriem) Limited (AGA Iduapriem) does not benefit from any peculiar tax concessions or other protections resulting(“AGA Iduapriem”) no longer benefits from the Ghana Stability Agreement anymore.Agreement. Relevant engagements are currently ongoing between AGA Iduapriem withand the Minerals Commission to obtain a new stability agreement and tax concession agreement for the Iduapriem mine.


Obuasi Development Agreement


On 21 June 2018, Parliament ratified the Development AgreementAngloGold Ashanti (Ghana) Limited (“AGA Ghana”) negotiated a new development agreement in relation to the Obuasi mine (Obuasi DA)(the “Obuasi DA”) with the Government of Ghana. On 21 June 2018, the Ghanaian Parliament ratified the Obuasi DA which contains stability terms as provided for in stability agreements.

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







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Obuasi Tax Concession Agreement


The fiscalFiscal terms, which will ordinarily form part of a single stabilisation document, were separated from the Obuasi DA. Hence a separate tax concession agreement in relation to the Obuasi mine (Obuasi TCA)(the “Obuasi TCA”) was signed with the Government. On 21 June 2018, Parliament ratified the Obuasi TCA.

TCA with a concession period until 31 December 2027. The key terms of the Obuasi TCA are as follows:
Corporate Income Taxcontains a number of tax concessions for AGA Iduapriem with respect to bethe Iduapriem mine, including, among other matters, (i) a corporate income tax rate of 32.5 percent or such lower rates as may be fixed by law (current(instead of the current statutory rate isof 35 percent);
Unutilised capital allowances carried forward by AGA Ghana which relate to the period before the effective date of the Obuasi TCA which have not already been utilized for the purposes of calculating taxable income shall continue to be carried forward until 31 December 2020;
Existing tax losses and new tax losses as well as a special concession to carry forward capital allowances to be converted into tax losses as at the end of 2020, will apply to AGA Ghana (whoever is the owner of AGA Ghana and whether or not AGA Ghana was to enter into a joint venture in respect of the Obuasi mine);
Exemptions (ii) exemption of certain items from Import Duty;
Exemption of the following transactions from Capital Gains Tax:
an issue of shares bycapital gains tax; (iii) a publicly listed company which holds a direct or indirect interest in AGA Ghana in connection with a raising of finance, an acquisition or a reorganization or an issue of shares by a company in connection with a new listing;
transfers of shares in any publicly listed company which holds a direct or indirect interest in AGA Ghana other than a transfer of shares which results in a third party holding more than 35 percent of the shares in the listed company; and
a reorganization of a company which holds a direct or indirect interest in AGA Ghana where following the reorganization the shareholders are substantially similar to those shareholders of the ultimate parent entity immediately prior to the transaction;
Non-application of section 62(1) of the Income Tax Act, 2015 (Act 896) in relation to change in underlying ownership under the following circumstances:
a joint venture in relation to Obuasi gold mine;
an issue of shares by a publicly listed company which holds a direct or indirect interest in AGA Ghana in connection with a raising of finance, an acquisition or a reorganization or an issue of shares by a company in connection with a new listing;

transfers of shares in any publicly listed company which holds a direct or indirect interest in AGA Ghana other than a transfer of shares which results in a third party holding more than 50 percent of the shares in the listed company; and
a reorganization of a company which holds a direct or indirect interest in AGA Ghana where following the reorganization the shareholders are substantially similar to those shareholders of the ultimate parent entity immediately prior to the transaction;
Slidingsliding scale royalty rate ranging from 3 percent to 5 percent for a price ranging from $1,300$1,300 up to $2,000$2,000 and above per ounce instead(instead of the current flat rate of 5 percent;
Exemption from the payment ofpercent); and (iv) certain VAT on items imported under the Import Duty List up to 31 December 2023;exemptions and
Entitlement to a refund of VAT credit at the pre-production stage notwithstanding that AGA Ghana will not meet certain conditions for qualifying for refunds.

Corporate regulation

Parliament passed the new Companies Act, 2019 (Act 992) which repeals the Companies Act, 1963 (Act 179). Act 992 introduced amendments to the regulation of companies in Ghana and establishes the Office of the Registrar of Companies. As a general matter, Act 992 maintained the provisions of Act 179. It, however, introduces stricter requirements for persons who are to be appointed as directors of a company as well as for company secretaries. Companies are also required to appoint new external auditors every six years.

A company is also not required to have bylaws or “regulations” as was the case under Act 179. Instead, a company may opt to have a registered constitution. Nevertheless, it is expected that the current regulations for AGA Ghana and AGA Iduapriem will be redrafted and filed at the Companies Registry. Further, a company is not required to have specific objects as prescribed previously. The implication of this is that a company can carry out any type of business unless otherwise specifically stated in the company’s constitution.


Government’s Golden Share


Section 60(1) of the GMM Act provides that the Government of Ghana can require a mining company to issue for no consideration to the Republic of Ghana a special share (Golden Share) by notice in writing to such mining company. The Government of Ghana exercised this right in respect of AGA Ghana and as a result was issued with a(a “Golden Share”). A Golden Share in AGA Ghana. Under the Ghana Stability Agreement, this Golden Share was issued to apply solely to AGA Ghana’s assets and operations in Ghana. Following the expiration of the Ghana Stability Agreement in April 2019, the Government of Ghana reconfirmed and agreed in the Obuasi DA confirms that the Government’s rights with respect to its Golden Share apply only in respect of AGA Ghana’s assets and operations in Ghana.

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

The following matters require, and will not be effective without, theAGA Ghana. For example, written consent of the holder of the Golden Share:
Share is required for, among other matters, (i) any amendment to or removal of the relevant provisions of the AGA Ghana Regulations setting out the rights and restrictions attaching toin respect of the Golden Share;
(ii) the voluntary winding-up or voluntary liquidation of AGA Ghana;
the redemption of or purchase by AGA Ghana of the Golden Share;
(iii) the disposal of any mining lease held by AGA Ghana or any subsidiary of AGA Ghana; and
any disposal by AGA Ghana (other than any disposal in (iv) the ordinary course of business of AGA Ghana) which, alone or when aggregated with any disposal or disposals forming part of, or connected with, the same or a connected transaction, constitutes a disposal of the wholeall or a material partsubstantially all of the assets of the AGA Ghana group taken as a whole. For this purpose, a part of the AGA Ghana group’s assets will be considered material if either (a) its book value (calculated by reference to the then latest audited consolidated accounts), or the total consideration to be received on its disposal, is not less than 25 percent of the book value of the net assets of the AGA Ghana group or (b) the average profits attributable to it represent at least 25 percent of the average profits of the AGA Ghana group for the last three years for which audited accounts are available (before deducting all charges, except taxation and extraordinary items).

Upon a return of assets in a winding-up or liquidation of AGA Ghana, theGhana. The holder of the Golden Share is entitled togenerally does not have the sum of GHS 0.10 cedis in priority to any payment to other members, but the Golden Share confers no further right to participate in the profits or assets of AGA Ghana. The Golden Share carries no right to anyGhana (by way of dividend or other capital issuances), but is entitled to attend any right to participate in any offergeneral meeting of securities to existing shareholders or in any capitalisation issue.shareholders.

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







Tax laws relating to mining

Fiscal regime


Currently, the main tax laws in Ghana include the following acts and regulations:regulations, which have been frequently amended over the years:
•Income Tax Act, 2015 (Act 896) (as amended) and Income Tax Regulations, 2016 (L.I. 2244);
•Customs Act, 2015 (Act 891) (as amended) and Customs Regulations, 2016 (L.I. 2248);
•Value Added Tax, 2013 (Act 870) (as amended) and Value Added Tax Regulations, 2016 (L.I. 2243); and
•Revenue Administration Act, 2016 (Act 915).

In 2012, the tax laws of Ghana were amended. Changes to the tax laws included:
An increase in the income tax rate applicable to mining businesses from 25 percent to 35 percent. The Obuasi TCA limits the corporate income tax rate for AGA Ghana to 32.5 percent and AGA Iduapriem was protected until April 2019 from any increase exceeding the rate provided for under the Ghana Stability Agreement. Following the expiration of the Ghana Stability Agreement, AGA Iduapriem currently pays an income tax rate of 35 percent;
Introduction of a new capital allowance regime for class 3 assets (which include mineral and petroleum exploration and production rights, buildings, structures and works of a permanent nature used in mineral and petroleum exploration and production and plant and machinery used in mining and petroleum operations) that provides for a 20 percent straight line rate for a period of five years. AGA Ghana is protected under the Obuasi TCA and AGA Iduapriem was protected until April 2019 from such change pursuant to the Ghana Stability Agreement;
Elimination of the 5 percent allowance on prior year additions. Prior to the 2012 amendment, the tax code granted an additional 5 percent of the value of assets acquired and qualified to be classified as class 3 assets for the purpose of granting capital allowances. Capital allowance is now 20 percent each year on the total value of the assets. The Obuasi TCA provides that unutilised capital allowances carried forward by AGA Ghana which relate to the period before the effective date of the Obuasi TCA which have not already been utilized for the purposes of calculating taxable income shall continue to be carried forward until 31 December 2020. From 1 January 2021, any such unutilized capital allowances shall be 20 percent each year on the total value of assets. AGA Iduapriem was protected until April 2019 from such change pursuant to the Ghana Stability Agreement; and
A ring fencing rule to prevent mining businesses from deducting or setting off costs from one mining area with another’s income. This ring fencing rule applies to AGA Ghana under the Obuasi TCA. Pursuant to the Ghana Stability Agreement, this change did not affect AGA Iduapriem until April 2019.

Between 2018 and 2019, the following changes have been made to the fiscal regime of Ghana:
The Minerals Income Investment Fund Bill has been passed by Parliament to establish a Fund to receive mineral royalties and related income as well as establish a special purpose vehicle to vest the Ghanaian Government’s carried interest in mining companies. It will also provide for the disbursement and management of the royalties received from mineral rights holders by Ghana’s Government. This would not impose any additional burden on mining companies such as AngloGold Ashanti but would only change the legal personality holding the Ghanaian Government’s carried interest; and
The Income Tax (Amendment) Act, 2019 (Act 1007) was passed to revise the rates of tax for the chargeable income for resident individuals, and to provide for a tax holiday for automobile manufacturers and assemblers.

VAT

In 2018, the Value Added Tax (Amendment) Act, 2018 (Act 970) revised the VAT rate on taxable supplies to 12.5 percent. The National Health Insurance (Amendment) Act, 2018 (Act 971) decoupled the National Health Insurance Levy of 2.5 percent from the VAT and as a result is no longer included in the VAT. Act 971 converted the NHI Levy into a straight levy which is not subject to the input and output method of accounting for VAT. Same was done for the Ghana Education Trust Fund portion of the VAT under the Ghana Education Trust Fund (Amendment) Act, 2018 (Act 972). The implication is an increase in the total tax liability payable by the consumer. However, by virtue of the Obuasi DA and Obuasi TCA, AGA Ghana will not be affected by these revised rates. Following the expiration of the Ghana Stability Agreement, AGA Iduapriem is subject to these revised rates.

Income taxes

In November 2015, Parliament passed the Income Tax Act, 2015 (Act 896) (ITA) which repealed the Internal Revenue Act, 2000, (Act 592), as amended. The ITA became effective from 1 January 2016 for the 2016 year of assessment. The ITA ring fencesringfences and taxes income derived from mining operations at the rate of 35 percent. For the purpose of ascertaining the income of a person for taxation, each separate mineral operation is treated as independent business and taxed accordingly. The Obuasi TCA for AGA Ghana provides for a stabilised income tax rate of 32.5 percent. Pursuant to the Ghana Stability Agreement, the ITA did not apply to AGA Iduapriem until April 2019. Following its expiration, AGA Iduapriem currently pays income tax at the rate of 35 percent.


The ITA provides for the carrying forward of losses for upFurthermore, mining companies are subject to five years and those losses carried forward can only be used in the order in which they were generated or incurred. The ITA further prohibits the deferment of capital allowances calculated or granted for a particular year.


The ITA imposes a withholding tax on dividends paid by a person conducting mineral operations in Ghana at 8 percent. This is regardless of the amount of shareholding a shareholder or shareholders may have in the entity paying the dividend. However, a person holding or controlling directly or indirectly at least 25 percent of the voting power of the company paying the dividend may be allowed some tax exemptions. The ITA also introduces some variation in the rates of withholding taxes. For example, payments for the supply of services (Payments with a Source in Ghana to Persons Other Than Individuals) has been increased from 5 percent to 15 percent; the withholding tax on resident Directors’ remuneration has been increased from 10 percent to 20 percent; and withholding taxes on natural resource payments and royalties have been increased from 10 percent to 15 percent. This may have an indirect impact on AngloGold Ashanti’s operations as this rate will have a material impact on the margins of suppliers and possibly their working capital. Suppliers may therefore seek to pass this on to AngloGold Ashanti by increasing their fees and charges.

The ITA also abolishes the flat 15 percent rate of tax on capital gains. Capital gains are now included in business or investment income and taxed at the applicable income tax rate which, for persons engaged in mineral operations, is 35 percent.

Various amendments were made to the ITA over the years. For example, the Income Tax (Amendment) Act, 2017 (Act 941) provides for the exemption from tax of the gains from the realisation of securities listed on the Ghana Stock Exchange and the Tax Amnesty Act, 2017 (Act 955) granted amnesty to persons who failed to register with the Commissioner-General or file their tax returns or pay taxes as required by enactments administered by the Commissioner-General.

Ground rent (mineral concession rent)

The Fees and Charges (Amendment) Instrument, 2015 (L.I. 2208) was passed by Parliament on 23 December 2015 and fixed, among other things, the payment of ground rent by mining companies at GHS 15 cedis per acre per annum.

AGA Ghana is paying $670 (GHS 3,705 cedis) per km2 per annum for all the AGA Ghana leases. The Obuasi DA protects AGA Ghana from any increase in ground rent for the duration of that development agreement. AGA Iduapriem is also paying $670 (GHS 3,705 cedis) per km2 per annum for all the AGA Iduapriem leases.

Customs Common External Tariff

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

Royalties

Under the Minerals and Mining (Amendment) Act, 2015 (Act 900), the Minister will prescribe the royalty rate payable and the manner of payment by passing a Legislative Instrument or other subsidiary legislation.royalties. The current royalty rate amounts to 5 percent.

However, a sliding scale royalty rate has been adopted for AGA Ghana as provided by the Obuasi TCA. The provision of goods and services is liable to value added tax (“VAT”) at a revised rate of 12.5 percent. In addition, there are separate levies, including a 2.5 percent National Health Insurance Levy (“NHIL”), a 2.5 percent Ghana Education Trust Fund Levy (“GetFund Levy”) and a 1.0 percent COVID-19 Levy. By virtue of the Obuasi TCA, AGA Ghana is exempt from the payment of the NHIL and GetFund Levy. In addition, while AGA Ghana is technically exempt from the payment of the COVID-19 Levy (as it became operational subsequent to the effective date of the Obuasi DA), the company is requireddecided to pay ground rent to the GovernmentCOVID-19 Levy voluntarily. AGA Iduapriem is not exempt from any of Ghana (as described above) as well as such other fees as are prescribed by legislation, including royalties on timber felled within the lease area.these levies.


Environmental laws relating to mining


In general, environmental laws and regulations in Ghana derive from the Constitution which imposes a duty on both the State and others to take appropriate measures to protect and safeguard the natural environment. Mining companies are required, under the GMM Act, Environmental Assessment Regulations, 1999 (L.I. 1652) and Water Use Regulations, 2001 (L.I. 1692), to obtain all necessary approvals from the Environmental Protection Agency (Ghana EPA), a regulatory body established under the Environmental Protection Agency Act, 1994 (Act 490),(the “Ghana EPA”) and, in appropriate cases, the Water Resources Commission and/or the Ghanaian Minerals Commission before undertaking mining operations. This includes undergoing an environmental impact assessment process and, following the issuance of the environmental permit, periodically preparing environmental management plans, which include details of the likely impacts of mining operations on the environment and local communities, as well as a comprehensive plan and timetable for actions to mitigate and remediate any adverse effects of the mining operations, for submission to the Ghana EPA. The Minerals and Mining (Health, Safety and Technical) Regulations, 2012 (L.I. 2182) also impose further obligations to obtain the necessary permits from the Inspectorate Division of the Ghana Minerals Commission for the operation of mines. The GMM Actenvironmental permits for AGA Ghana (for the Obuasi redevelopment project and for the construction and operation of tailings and water infrastructure projects) are valid until November 2022. The environmental permits for AGA Iduapriem (for the re-mining of Block 5 and for the tertiary crusher installation project) are valid until July 2022. Renewal processes for the environmental permits for both mines are underway. The permit for the tailings infrastructure project of AGA Iduapriem is valid until 2023.

Environmental laws in Ghana also requires thatrequire mining operators to rehabilitate land negatively impacted by mining operations inaccording to an environmental cost reclamation plan agreed with the Ghana comply with all laws forEPA. The environmental cost reclamation plan includes two cost estimates, namely the protectioncost of rehabilitating the mining area at the end of the environment. Compliance with the relevant laws are enforced by a regime of sanctions including imposition of fines and in some cases a term of imprisonment.

As partlife of the Ghanaian environmental laws and regulations, mining operations are required to undergo an environmental impact assessment process that culminates in the issuance of an environmental permit prior to commencing operations. Environmental Management Plans are to be submitted to the Ghana EPA within 18 months after issuance of the environmental permit and then every three years thereafter. The plan must include details of the likely impacts of mining operations on the environment and local communities,mine as well as a comprehensive plan and timetable for actions to mitigate and remediate any adverse effectsthe cost of rehabilitating the mine as at the date of the reclamation plan. These estimates are reviewed annually and updated every two



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years. Each mining operations. Approvalcompany is typically required to secure a percentage (typically between 50 percent and 100 percent) of the management plan results in the issuanceestimated rehabilitation costs by posting reclamation bonds underwritten by banks and restricted cash. The terms of an environmental certificate.

In June 2014,each reclamation bond are determined by a reclamation security agreement between that company and the Ghana EPAEPA. Both AGA Ghana and AGA Iduapriem have bank guarantees in place for environmental reclamation liabilities as well as escrow accounts with joint signatories from the Minerals Commission circulated draft Mining and Environmental Guidelines to all mining companiesGhana EPA. The guarantees for comment. The guidelines concern environmental management, reclamation, closure requirements andAGA Iduapriem will expire in October 2022, whereas the proposedguarantees for AGA Ghana are valid until December 2022.

Mining Community Development Scheme and have not yet become effective. The Mining Community Development Scheme, which directly sponsors socio-economic development in communities in which mining operations take place or which are affected by mining activities, has since been established pursuant to the Minerals Development Fund Act, 2016 (Act 912).

Illegal and unsustainable mining practices

The Multilateral Mining Integrated Project (MMIP) is a 5-year project launched by the Government of Ghana in 2017 to address illegal and unsustainable mining practices in Ghana. The MMIP “combines a Legislation, Enforcement, Civil, Integrated and Technological Approach (LECITA) as a sustainable and structured yet regimented conjoint concept” to combat illegal mining. The MMIP involves (i) reviewing and enforcing the legal and regulatory regime of the small scale mining sector, (ii) reclaiming and rehabilitating degraded lands, (iii) dredging silted estuaries and waterways, (iv) implementing social interventions to facilitate livelihood creation in mining communities, (v) adapting technology to increase mining efficiency, processing, environmental protection and monitoring activities, and (vi) building the capacity of artisanal and small-scale miners and regulatory institutions.

In addition, other initiatives have been undertaken to combat illegal mining. For example, the Minerals and Mining (Amendment) Act, 2015 (Act 900) makes provision for the confiscation of the equipment of illegal miners and, as a result of recent illegal mining activities, the GMM Act was amended to increase penalties for illegal mining and expressly criminalize the aiding and abetting of illegal mining activities. The prescribed minimum sentence for illegal mining is now 15 years and maximum of 25 years for foreigners who engage in illegal mining.


Foreign exchange, export and other rules


Retention of foreign earnings


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

On 4 February 2014, the Bank of Ghana issued new directives as part of measures to streamline the collection and repatriation of export proceeds to Ghana. These directives included an instruction to all banks and authorised dealers to, within 5 working days of receipt of export proceeds, convert the proceeds into Ghana cedis based on the average Interbank Foreign Exchange Rate prevailing on the day of conversion with a spread not exceeding 200 percentage in points (pips). Exporters with retention accounts were to continue to operate these accounts in accordance with their retention agreements. Retention proceeds which were sold to the banks were to be converted into Ghana cedis based on the average Interbank Foreign Exchange Rate prevailing on the day of conversion with a spread not exceeding 200 pips. It further advised that offshore foreign exchange transactions by resident companies, including exporters, were strictly prohibited and exporters were to ensure that all export proceeds are repatriated in full. Failure to comply with the provisions attracts penalties including pecuniary sanctions, jail terms, suspension and revocation of the operating licence as applicable.

Following engagement with relevant stakeholders, the Bank of Ghana issued another notice clarifying that the transfer of foreign exchange to meet external payment obligations remains permissible for transactions such as:
redemptions and coupon payments on bonds held by non-residents;
investment income, technology and management transfer entitlements, expatriate emoluments, and other incentive packages and overseas commitments under provisions in various legislation and legislative instruments such as the GMM Act, and the Technology Transfer Regulations, 1992 (L.I.1547); and
other outward payments for imports of goods and services.

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

The Bank of Ghana on 9 August 2014 further revised the rules on foreign exchange operations, effectively reversing the initial directives controlling transactions in foreign exchange. The key details are as follows:
Exporters shall continue to repatriate in full export proceeds in accordance with the terms agreed between the trading parties. Such proceeds shall be credited to their FEAs and converted on a need basis;
FEAs and FCAs will continue to be opened and operated as they were before the notices of 4 February 2014;
Except for transfers from FEA to FCA which are still prohibited, all other transfers between accounts are permitted;
FCAs shall be fed only with unrequited transfers such as transfers from abroad for investment or embassy transfers;
FEAs shall be fed with foreign exchange generated from activities in Ghana such as proceeds from exports of goods and services; and
The threshold for transfers abroad without initial documentation remains at $50,000.00.


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

Existing measures that were not amended by this notice continue to remain in force. AngloGold Ashanti maintains and operates its FCA, FEA and retention accounts in compliance with the directives.


Rules regarding the export of gold and diamonds


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


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


In November 2016, the Ministry of Lands and Natural Resources issued a ministerial directive appointing the PMMC as designated laboratory for assaying in Ghana. The directive requests all persons holding export licenseslicences for gold to submit all gold to be exported to the PMMC for assay before export. Mining businesses, including AngloGold Ashanti, acting through the Ghana Chamber of Mines were opposed to this directive due to its potential negative impact on mining companies in the region. As a result, the Chamber initiated proceedings to reverse or modify the directive. Following discussions in respect of the mining industry’s concerns, the Chamber and Government agreed on the modalities for implementing the national assaying policy and it was introduced in February 2018 following a one-month pilot among certain mining companies. A final documentSubsequently, in June 2019, the LNR Minister released a statement reiterating the Government of Ghana’s plans to locally refine 30 percent of the gold produced in the country. Discussions between the Ghana Chamber of Mines and the Government of Ghana’s economic management team in 2019 led to the Chamber agreeing to consider the proposal and for the implementation ofparties to discuss detailed modalities to ensure that a move to locally refined gold does not become detrimental to the program will be executed once the Chambermining industry.

Local content and the PMMC address a few outstanding issues regarding assaying methodologies.

Localisationlocal participation policy


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

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

In January On 15 October 2020, the Minerals Commission circulated draft Minerals and Mining (Local Content and Local Participation) Regulations, intended2020 (L.I. 2431) were adopted in order to expand the scope of local content requirements in the mining industry. The draft specifically seeks to expandFor example, there are restrictions on the number of expatriates that can be employed by mineral rights holders and mine support service providers in a bid to enhance the participation of Ghanaians in the mining related businesses required to comply with local content requirements.industry.


AngloGold Ashanti’s rights and permits


Obuasi


The currentObuasi mine originally held four contiguous mining lease forleases, the Obuasi areaMining Lease and the Binsere 1, 2 and 3 Mining Leases. The Obuasi Mining Lease was granted by the Government of Ghana on 5 March 1994. It grants mining concessions to land with1994, covering an area of approximately 338 km2 in the Amansie East and Adansi West districts of the Ashanti region, for a term of 30 years from the date of the agreement. In addition, a mining lease overThe Binsere Mining Leases were granted on 9 April 1998, covering an adjacentarea of 140 km2was also granted, resulting, for a term of 30 years from the date of the agreement. All leases in respect of the total area underObuasi mine had been duly ratified in accordance with Ghanaian law. In March 2007, the mining lease increasing to 474 km2.

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

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




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Minerals Commission approved AGA Ghana is not requiredGhana’s application to pay annual mineral right fees assurrender a further 60.24 km2 of lease area, thereby reducing the AGA Ghana Leases were granted priortotal lease area to 141.22 km2. The current lease areas are covered by three mining leases: the enactment ofObuasi Mining Lease (87.48 km2), the GMM Act which imposes such fees. The GMM Act provides thatBinsere 1 Mining Lease (29.03 km2) and the Binsere 2 Mining Lease (24.71 km2). These mining leases granted under laws subsisting immediately before the coming

into force of the GMM Act shall continue to be governed by such pre-existing laws. As a result, the AGA Ghana Leases are still regulatedcovered by the MineralsObuasi DA and Mining Law, 1986 (PNDCL 153), as amended (notwithstanding the repeal of PNDCL 153 by the GMM Act).Obuasi TCA.


Iduapriem


The Iduapriem mine had been grantedoperates under four different mining leases: the Iduapriem Mining Lease (LVB1539/89) (36.47 km2), the Ajopa Mining Lease (LVB/WR326/09) (46.12 km2), the Teberebie Mining Lease (LVB3722H/92) (28.53 km2) and the Ajopa South West Mining Lease (LR#1109/1999) (28.10 km2). All fourOn 17 February 2020, the mining leases expired between 2018were extended for a further period of 15 years and 2019. All relevant documents were submitted to apply for the renewal of thesuch leases in September 2017. In January 2020, the Minerals Commission issued a Notice of Grant of Mining Lease for all four leases and the LNR Minister approved the grant of the mining leases. All four renewed leases will now expire in February 2025.

AGA Iduapriem is required to pay an annual mineral right fee2035. All leases in respect of $178,000 with respect to the Iduapriem Lease, $136,000mine have been duly ratified in accordance with respect to the Teberebie Lease, $134,000 with respect to the Ajopa South West Lease and $220,000 with respect to the Ajopa lease.Ghanaian law.



Guinea


General laws relating to mining


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


The Guinea Mining Code is accompanied and implemented by various implementation decrees. To date, various decrees have been adopted,and orders, including decreeDecree D/2014/015/PRG/SGG adopting a model of mining convention, dated 17 January 2014, orderOrder A/2016/1584/MMG/SGG related to the administration’s capacities for the management of integrated mining projects (PARCA-GPI) and its steering committee, dated 6 June 2016, decreeand Decree D/2016/163/PRG/SGG on the national agency for the development of mining infrastructures (ANAIM), dated 13 June 2016, and decree D/2016/215/PRG/SRG on the appointment of executives to the Ministry of Mines and Geology, dated 8 July 2016.

In 2017, Decree D/2017/285/PRG/SGG was adopted, which sets forth the modalities regardingconditions for the constitution and management of the Local Development Fund (“Fodel”), as well as Joint Order A/2017/6326/MMG/MATD/SGG, which sets forth the conditions for the use, management and control of the Fodel. Together, these set forth the use of the mining companies’ financial contribution to the development of the local communities and the rules applying to the Local Development Fund (Fodel)Fodel, which was created under the Guinea Mining Code have been enacted through the adoption of decree D/2017/285/PRG/SGG setting the conditions for the constitution and management of the Fodel, dated 31 October 2017 and the joint orderCode. On 13 July 2018, a Joint Order A/2017/6326/2018/5212/MEF/MMG/MB/MATD/SGG setting out the conditions forwas issued, which regulates the use, management and controlmonitoring of the Fodel, dated 22 November 2017. Also, a joint order AC/2017/3228/MATD/MMG/SGG updating the act on the establishment, attribution and functioningresources allocated to local authorities pursuant to article 165 of the coordination committees in mining communities (CCLMS), dated 21 July 2017 has been issued by the Ministry of Territorial Administration and Decentralisation and the Ministry of Mines and Geology. The main purpose of the CCLMs, in which all concerned mining companies are represented, being to prevent and settle disputes that may arise in mining communities.Guinea Mining Code. In 2019, an inter-ministerial committee was created to supervise and control the Fodel through the adoption of the joint orderJoint Order AC/2019/089/MMG/MATD/SGG setting out the conditions for the constitution, powers and management of said inter-ministerial committee. On 6 September 2019, Decree D/2019/263/PRG/SGG was issued, which sets forth local content requirements in the framework of the implementation of public and private projects in Guinea.


On 16 June 2020, a new procedure for the export of gold by mining companies was enacted through the adoption of Decree D/2020/113/PRG/SGG, which sets out, amongst other things: (i) when the industrial production tax referred to in article 161-1 of the Guinea Mining Code shall be paid, and (ii) the process to be followed to export gold bullion.

On 27 April 2021, a Joint Order AC/2021/824/MMG/BCRG/SGG was issued establishing the fees and costs charged by the Guinean mining authorities and the Guinean Central Bank in connection with the administrative procedures for the export of gold by industrial and semi-industrial companies.

AngloGold Ashanti’s rights and permits


The right to undertake mining operations in Guinea can only be acquired by virtue of one of the following mining titles: surveying permit, small-scale mining licence, exploration licence, mining licence or mining concession.

The group’s GuineaGuinean subsidiary, Société AngloGold Ashanti de Guinée SA (SAG)S.A. (“SAG”), has title to the Siguiri mine in the form of a mining concession, granted by virtue of Presidential decreeDecree D/97/171/PRG/SGG, dated 4 August 1997, for a period of 25 years (Mining Concession)(the “Mining Concession”). The Mining Concession covers exploration and mining for gold, silver, diamonds and associated ores, and was originally covered by a mining convention entered into with the Republic of Guinea on 11 Novemberin 1993 (Convention de Base) and amended in 2005. The Convention de Base provided for an initial duration of 25 years and would have expired in 2018.

The Guinea Mining Code, which came into force after the conclusion of the Convention de Base, confirms the validity of mining titles previously issued. The Guinea Mining Code also provides that for holders of validly signed and ratified mining conventions, the application of the Guinea Mining Code will take place by way of amendments to the relevant mining convention (in the case of SAG, the Convention de Base), which amendments are to be negotiated between the mining concession holder and the State.

On 28 June 2016, SAG and the Government of Guinea concluded a revised and consolidated mining convention (convention de base (Revised Convention de Base)révisée et consolidée) (the “Revised Mining Convention”) which encompasses a renewal of the term of the original Convention de Basemining convention and other amendments necessary to support an expansion project proposed to extend the life of the Siguiri mine (the Expansion)“Expansion”).

In compliance with the provisions of the Guinea Mining Code, the Revised Mining Convention de Base was ratified by the Guinean National Assembly (law(Law L/2016/N°067/AN dated 30 December 2016, promulgated by decreeDecree D/2017/015/PRG/SGG dated 24 January 2017),

submitted to the Guinean Supreme Court which rendered a favourable opinion (judgment(Judgement N°AC 005 dated 16 January 2017), and ratified by the President of the Republic of Guinea (decree(Decree D/2017/021/PRG/SGG dated 24 January 2017).

As a consequence, as and from 24 January 2017, the Revised Convention de Base has cancelled and, following which it replaced the original Convention de Basemining convention and governs the operations at the Siguiri mine and under the Mining Concession.became effective on 24 January 2017.









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Key elements of the Revised Mining Convention de Base include the following:

•a duration of 25 years, expiring 23 January 2042, subject to further renewal if mining operations continue at that time; and with continue;
•the term of the Mining Concession beingis aligned with the term of the Revised Mining Convention de Base such thatsince the Republic of Guinea committed to maintain the Mining Concession will be renewed as long asfor the entire duration of the Revised Convention de Base remains in force;Mining Convention;
•SAG’s operations remain governed by the 1995 Guinea Mining Code (the prior mining code) and are only subject to the provisions of the Guinea Mining Code to the extent they are expressly set out in the Revised Convention de Base;Mining Convention;
•the stability of the customs and tax regime is guaranteed for the entire initial term of the Revised Mining Convention, de Base, and subject to certain conditions being met, any renewal period(s);
•the Republic of Guinea holds a 15 percent free-carried/non-contributory interest;
•the Republic of Guinea is entitled to a royalty on gold of 5 percent based on a spot gold price as per LBMA fixing (PM) up until the date of steady state commercial production of the first phase of the Expansion, after which the royalty rate applicable to gold will vary depending on threshold prices as per LBMA fixing (PM), namely: 3 percent if the gold price is USD 1,300$1,300 or less, 5 percent, if above USD 1,300$1,300 and up to USD 2,000$2,000 and 7 percent if above USD 2,000;$2,000;
•SAG will enjoy abenefits from 5-year income tax holiday as and from the beginning of steady state commercial production of the first phase of the Expansion, after which the income tax rate is set at 30 percent;
•a local development tax of 0.4 percent is payable on the sale price for gold and silver received by SAG up until 31 December 2027, after which it will be increased to 0.6 percent;
•salaries of expatriate employees are subject to a 10 percent income tax;
•goods imported into Guinea for purposes related to the construction and commissioning of the first phase of the Expansion are exempt from all customs taxes and duties; and
•SAG is committed to adopting and progressively implementing a plan for the effective rehabilitation of the mining areas disturbed or affected by its operations.


The Mining Concession covers an area divided into four blocks and totallingtotaling approximately 1,495 km2. SAG has the exclusive right to explore and mine in any part of the concession area for the duration of the Revised Convention de Base.Mining Convention. The Revised Mining Convention de Base also grants SAG with the option to secure certain land rights over additional areas currently covered by exploration permits, but to which SAG may need access for purposes of establishing roads or storage of tailings. The Mining Concession is due to expire on 4 August 2022. On 1 February 2022, a renewal request was filed in accordance with the provisions of the Revised Mining Convention. Pursuant to the Revised Mining Convention, the Mining Concession can be renewed for one or more period(s) that cannot exceed 10 years each as long as the Revised Mining Convention is in force.


The Revised Mining Convention de Base is subject to early termination if the parties formally and expressly agree to it, if the last of the mining title held by SAG expires or is relinquished without any renewal application having been filed, if all project activities are voluntarily suspended for a continuous period of 12 months or are permanently abandoned by SAG,, or if SAG goes into voluntary liquidation or is placed into liquidation by a court of competent jurisdiction.



Mali


General laws relating to mining

Mining Reform


The mining industry in Mali is currently undergoing a reform as the mining code enacted on 27 February 2012 (2012 Mali Mining Code), which, until recently, was the primary regulation in the mining sector, was replacedprimarily regulated by ordinance No.2019-022/Ordinance No. 2019-022/P-RM dated 27 September 2019 containing the new mining code of the Republic of Mali (2019(the “Mali Mining Code”) and Decree No. 2020-0177/PT-RM dated 12 November 2020 implementing the Mali Mining Code). The revision process of MalianCode. On 8 December 2020, Decree No. 2020-0288/PM-RM enacted the new model mining legislation is not yet completed as the 2019convention referred to in Decree No. 2020-0177/PT-RM.

The Mali Mining Code isapplies to be supplemented by one or several decree(s) containing the conditions of implementation of the 2019 Mali Mining Code. While the 2019 Mali Mining Code has entered into force, it appears that the Malian authorities are awaiting the finalization of the various implementing decree(s) to actually enforce the 2019 Mali Mining Code.

Pending the effective enforcement of the 2019 Mali Mining Code by the Malian authorities, the mining operations previously carried out by AngloGold Ashanti entities in Mali (as further described below), benefit from the stabilisation clauses in their mining conventions, and thus remain subject to the provisions of the previous mining codes of 1970 and 1991 and are also, for residual matters, expressly subject to the provisions of the 2012 Mali Mining Code. The transitory rules of the 2012 Mali Mining Code specify that provisions in respect of certain matters such as administrative surveillance, mine police, rehabilitation and mine closure apply to mining titles issued prior to its entry into in force.

Once the 2019 Mali Mining Code is enforced by the Malian authorities, AngloGold Ashanti entities in Mali will be subject to all the provisions of the 2019 Mali Mining Code except with respect to the validity, scope and duration of their exploitation permits and the provisions on tax and customs regime contained in their mining conventions (conventions d’établissement) for their remaining duration. In this regard, the transitory

rules of the 2019 Mali Mining Code specify that mining conventions in force remain valid for their remaining term and their holders continue to benefit from the stability of the tax and customs regime set out therein.therein.


Mining regime

The mining regime deriving from the 2019 Mali Mining Code remains incomplete to date, pending the adoption of the implementing decree(s).

Exploration and prospecting activities are carried out under exploration authorizationsauthorisations (autorisation d’exploration) or exploration permits (permis de recherche). Exploration authorizations and exploration permits, which give their holder the exclusive right to carry out exploration activities over a given area. Exploration authorizationsauthorisations are granted by the Mining Administration (Administration chargée des Mines) for a non-renewable period of three years,months, while exploration permits are granted by Ministerial Order for a period of three years renewable twice for additional 3-year periods.

Applications for exploration authorizationsauthorisations and exploration permits must contain various documents attesting to the financial and technical capacity of the applicant as well as a detailed works and costs programme. Exploration authorizations are granted by the Mining Administration (Administration chargée des Mines) while exploration permits are granted by Ministerial Order.


A large scale permit exploitation permit (permis d’exploitation de grande mine) is required to mine a deposit located within the area of an exploration permit. The large scale exploitation permit and grants the holder an exclusive right to exploit the named substances and proceed with the processing and commercializationcommercialisation of the substances extracted within its perimeter. Large scale exploitation permits are granted by decree of the Head of Government for a maximum period of 12 years renewable for 10 year-periods until depletion of the deposits. The large scale exploitation permit is granted only to the holder of an exploration permit and covers only the area governed by the exploration permit. An application must be submitted to the Mining Administration (Administration chargée des Mines). and must contain




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various documents attesting to the financial and technical capacity of the applicant, a feasibility study, a detailed environmental study in respect of the impact of the project on the environment, an environmental permit, a closure and rehabilitation plan as well as a community development plan. As soon as the large scale exploitation permit is granted, the permit holder must incorporate a company under the laws of Mali. The permit holder willMali and assign the large scale exploitation permit for free to this company. The State will have a 10 percent free-carried interest in the company. This interest will be converted into priority shares and the State’s participation will not be diluted in case of an increase in capital. In addition, the company is required to ensure that private Malian investors are offered the possibility to acquire 5 percent of their capital.


Applications for large scale exploitation permits must contain various documents attesting to the financial and technical capacity of the applicant, a feasibility study, a detailed environmental study in respect of the impact of the project on the environment, an environmental permit, a closure and rehabilitation plan as well as a community development plan. The large scale exploitation permit is granted by decree of the Head of Government.

All mining titles mentioned above (save for the exploration authorisation) require an establishmenta mining convention (convention d’établissement) to be signed by the State and the titleholder defining their rights and obligations, the duration of which is 20 years.


AngloGold Ashanti’s rights and permits


Historically, AngloGold Ashanti had interests in the Morila, Sadiola and Yatela gold mines, all of which arewere governed by establishmentmining conventions (conventions d’établissement) covering exploration, mining, treatment and marketing in a comprehensive document. These documents include general provisions regarding exploration (work programme, fiscal and customs framework) and exploitation (formation of a local limited liability mining company, State interest, fiscal and customs framework governing construction and exploitation phases, exchange controls, marketing of the product, accounting regime, training programmes for local labour, protection of the environment, reclamation, safety, hygiene and dispute settlement). AngloGold Ashanti complied with all applicable requirementsThe Morila and Sadiola gold mines were sold in November and December 2020, respectively.

In April 2017, Société d’Exploitation des Mines d’Or de Yatela S.A. (“Yatela”), the relevant permits were issued (subjectcompany operating the Yatela gold mine, began the implementation of a closure plan in order to relinquish the developments regarding the permit for Yatela, as described below).

Morila’s exploitation permit covers approximately 200 km2 and was issued on 4 August 1999. Morila has a 30-year permit which expires in 2029. Mining of ore has ceased at Morila.

On 23 Decemberproperty. In February 2019, AngloGold Ashanti announced that it, together withand its joint venture partner IAMGOLD Corporation has agreedannounced an agreement to sell each of their 40% interests in Société d’Exploitation des Mines d’Or de Sadiola S.A.Yatela to Allied Gold Corp. This salethe Government of Mali, which holds the remaining 20% interest. Completion of the transaction is subject to the fulfilment or waiver of a number of conditions precedent which are expectedand has been delayed several times since 2019 due to be fulfilled or waived by the end of April 2020. Sadiola’s prospectingpolitical instability and exploitation agreement covers approximately 303 km2 and was originally entered into on 5 April 1990. Sadiola has a 30-year permit which expiresrelated events in 2024.

On 14 February 2019, AngloGold Ashanti sold, together with its joint venture partner IAMGOLD Corporation, their holdings in Société d’Exploitation des Mines d’Or de Yatela to the Government of Mali. Certain conditions precedent currently remain outstanding. Prior to the sale, Yatela had begun the implementation of a closure plan in order to relinquish the property. In parallel, discussions had been ongoing for the Government of Mali to take over the residual operations as well as the implementation of the closure plan. In the course of these discussions, an administrative error occurred, leading to the cancellation of Yatela’s permit through decree 2017/0613/PM-RM dated 28 July 2017, notified to Yatela on 5 October 2017. This error has since then been corrected through the issuance of decree 2017-00951/PM-RM dated 28 November 2017 and decree n°2018-0368/PR-RM dated 12 April 2018, the purpose

of which was to reinstate Yatela in all of its rights under its exploitation permit.COVID-19 pandemic. Yatela’s exploitation permit covers approximately 212 km2. Yatela has a 30-year permit which expires in 2030.


Tanzania

Tanzania

General laws relating to mining


Tanzania Mining Act and Tanzania Mining Regulations


Mineral rights in the United Republic of Tanzania are principally governed by the Mining Act, 2010 (No. 14) (Tanzania Mining Act)Chapter 123 (R.E. 2019), as amended in 2017 by the Written Laws (Miscellaneous Amendments) Act, 2017 (No. 7) and which was revised and published by the Attorney General of Tanzania on 30 October 2018 as the(the “Tanzania Mining Act, Chapter 123 (R.E. 2018),Act”) and the Mining Regulations, 2010, (Tanzania Mining Regulations), as amended in 2018, which include:(the “Tanzania Mining (Mineral Beneficiation) Regulations, 2018 as amended in 2019; Mining (Minerals and Mineral Concentrates Trading) Regulations, 2018 as amended in 2019; Mining (Radioactive Minerals) Regulations, 2018; Mining (Local Content) Regulations, 2018 as amended in 2019; Mining (Geological Survey) Regulations, 2018; and the Mining (Audit and Inspection of Records) Regulations, 2018. Other regulations are: Mining (Environmental Protection For Small Scale Mining) Regulations, 2010; Mining (Safety, Occupational Health and Environmental Protection) Regulations, 2010; Mining (Mineral and Gem Houses) Regulations, 2019; Mining (Mining Shareholding and Public Offering) Regulations, 2016 as amended in 2017; Mining (Diamond Trading) Regulation, 2019; Natural Wealth and Resources (Permanent Sovereignty) Code of Conduct for Investors in Natural Resources Regulations, 2020 (Permanent Sovereignty Regulations); and The Natural Wealth Contracts (Review and Re-Negotiation of Unconscionable Terms) Regulations, 2020. The application of the Code of Conduct under the Permanent Sovereignty Regulations extends to employees, agents, suppliers and consultants and requires them to comply with other binding instruments and decisions made based on such instruments, in addition to policies, laws and regulations. The Permanent Sovereignty Regulations make it mandatory to seek the advice of an office bearer or the office of Attorney General, if the requirements of the Code, provisions of the Mining Act or other instruments relating to natural wealth and resources become ambiguous, unclear or in conflict resulting into uncertainty. Further, the Code of Conduct requires investors to conduct periodic reviews in respect of their compliance with such legislation in order to ensure that the investment does not result into unconscionable behaviours prohibited by the laws of Tanzania.

Regulations”). The Tanzania Mining Act and the Tanzania Mining Regulations came into force in November 2010 followed by amendments to the Tanzania Mining Act in 2017 and subsequent amendments to the Tanzania Mining Regulations in 2018 and 2019.

Amendments of the Tanzania Mining Act and the Tanzania Mining Regulations

As mentioned above, the Tanzania Mining Act was amended in 2017 followed by an amendment of the Tanzania Mining Regulations in 2018, Those amendments, together with an Executive Order, introducing the following:
Dissolution of the Tanzania Minerals Audit Agency whose functions and powers have now been transferred to the Geological Survey of Tanzania (GST);
Dissolution of the Mining Advisory Board and introduction ofintroduced, among other matters, (i) the Tanzania Mining Commission. The functions and powers of the Mining Advisory Board have been taken over by the Mining Commission, including the functions of the Commissioner for Minerals. However, the Mining Commission has been made responsible for matters related to auditing and monitoring of mineral production in Tanzania. The Mining Commission has powers to audit quality and quantity of mineral produced and exported by mining entities, financial records of mining entities for the purposes of tax assessments, and environmental management expenditures of the mining entities for the purpose of assessment of compliance to the mine closure plan. Mineral rights holders were required to submit all geological information in their possession to the GST;
ACommission; (ii) local content requirementrequirements for procurement of goods and services: the Tanzania Mining Act requires that mining companies must give: (i) first consideration to good and services provided or manufactured in Tanzania where they meet mining industry specifications (established by the Standards Authority / internationally acceptable standards), (ii) first consideration for employment to qualified Tanzanians,services; and (iii) adequate provision for on-the-job training of Tanzanians. Specific minimum local content thresholds are specified in Schedule 1 to the Tanzania Mining Regulations. These will be determined by the Mining Commission alongside the work programme. The relevant Minister may prescribe additional minimum local content thresholds;
To qualify for holding a Mining Licence in Tanzania,requirements of 5 percent of a licensee’slicencee’s equity mustto be held by Tanzanians, with 80 percent of its managerial positions to be held by Tanzanians and 100 percent of other positions to be held by Tanzanians, in addition to the shareholding of the Government of Tanzania pursuant to Section 10 of the Tanzania Mining Act (i.e. free-carried interest). This amount is determined, and may be varied, by the relevant Minister;
Establishment of the Local Content Committee (LC Committee) which will oversee the implementation of the Tanzania Mining Regulations and which is composed of a member of the Mining Commission, the Director of Labour and Employment, a member of the Tanzania Private Sector Foundation, the CEO of the Geological Survey of Tanzania, the head of legal services at the Ministry for Minerals and the Executive Secretary of the Mining Commission. The LC Committee sets minimum standards for local content plans and reports to the Mining Commission;
Introduction of a statutory procedure for the conduct of Corporate Social Responsibility (CSR), whereby a company is required to prepare annually a credible CSR plan jointly agreed with the local government authorities in consultation with the Minister for Finance and the Minister for Local Government Authorities; and
Cancellation of retention licences; right over such licences revert to the Government of Tanzania.



Minimum shareholding and public offering


TheIn 2016, the Mining (Minimum Shareholding and Public Offering) Regulations, 2016, came into force by Government Notice No. 286 published on 7 October 2016 and revised by amendment on 24 February 2017. On 10 January 2018, the Government of Tanzania published its new Tanzania Mining Regulations, 2018, which contain, amongst others, the implementation provisions of theas amended, Tanzania Mining Act.

was adopted. The regulations set out the requirement to sell shares to Tanzanian nationals, by way of a public offering and listing on the Dar es Salaam Stock Exchange, which will apply to companies that are carrying out large scale mining operations. The regulations also require all existing holders of a special mining licence to list a minimum of 30 percent of their shares on either the Main Investment Market or the Enterprise Growth Market Segment of the Dar es Salaam Stock Exchange within 6 months of the regulations coming into force, which was on 24 February 2017. However, we believethe company believes the listing requirement conflicts with the mining development agreement. In September 2020, the Government of Tanzania published the Mining (Minimum Shareholding and Public Offering) (Amendment) Regulations, 2020, which exempts companies holding special mining licences from local listing requirements if such mining company has entered into an agreement with the Government of Tanzania that provides for a non-dilutable free-carried interest in such mining company and an economic benefits sharing arrangement.


Arbitration


Along with other major mining companies, AngloGold Ashanti’s subsidiaries are seeking a constructive dialogue with the Government of Tanzania to gain assurances that the Geita gold mine will not be affected by therecent legal and fiscal changes mentioned above, givenadopted by the Government in light of their mining development agreements which guarantee (i) fiscal and regulatory stability, as well as



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and (ii) an agreement between all parties before material legal and regulatory changes are made. As a precautionary step to safeguard its interests, AngloGold Ashanti commenced international arbitration proceedings against the Government of Tanzania in connection with the enactment of this legislation in July 2017. These arbitral proceedings are currently stayed until 13 May 2020 in order to afford the parties the opportunity to achieve an amicable resolution of the dispute.

The arbitration action against the Government of Tanzania seeks declaratoryDeclaratory relief is sought in accordance with the terms of the company’s existing mining development agreement to preserve the company’its and its shareholders’ rights and interests in the Geita gold mine, includingmine. AngloGold Ashanti is seeking confirmation from the Government of Tanzania that, the company is exempt from the listing requirement. The arbitration proceedings also seek to confirm that AngloGold Ashanti does not, as a result of its existing mining development agreement, the company does not fall within the scope of the new mining legislation under whichthat includes, among other things, (i) listing requirements; (ii) an increase in the rate of revenue royalties from 4 to 6 percent and a 1 percent clearance fee; and (iii) a right for the Government of Tanzania has the right to (i)(a) renegotiate existing mining agreements at its discretion, (ii)(b) receive a non-dilutable, free-carried interest of no less than 16 percent in all mining projects, and (iii)(c) acquire up to 50 percent of the shares of the mining company commensurate with the total tax expenditure incurred by the Government in favour of the mining company, and which includes an increase in the rate of revenue royalties from 4 to 6 percentand a 1 percent clearance fee.company. AngloGold Ashanti can provide no assurance that the new mining legislation, including the listing requirement,requirements, will not apply to its operations in Tanzania and the outcome of the arbitration action may have a material adverse impact on the company’s results of operations and financial condition. See also “Item“Item 8A: Legal Proceedings-Tanzania”Proceedings—Tanzania”.


MineralCategories of mineral right licences


Ownership of and control over minerals on, in or under the land vest in the President of the United Republic of Tanzania. No person is allowed to prospect for minerals or carry on mining operations except pursuant to the authority of a mineral right licence granted, or deemed to have been granted, under the Tanzania Mining Act or its predecessor acts. To enable a company to prospect or mine, the Tanzania Ministry of Minerals (MEM)(“MEM”) initially grants an exclusive prospecting licence. Upon presentation of a feasibility study, together with certain other environmental, social and financial assurances, the MEM may then grant a form of licence for mining. Licensing decisions take into account the abilitiesThree categories of the company (including its mining, financial and technical capabilities), projected rehabilitation programmes, environmental compliance and the payment of royalties.

The following licences can be applied for under the Tanzania Mining Act:

licences for exploration, licences for mining, and licences for ancillary activities. Licences for Exploration:
exploration include prospecting licence;licences and
gemstone prospecting licence.

licences. Licences for Mining:
mining include special mining licencelicences (if the proposed capital investment is equal to at least USD 100$100 million);
, mining licencelicences (if the proposed capital investment is equal to between USD 100,000$100,000 and USD 100$100 million); and
primary mining licencelicences (reserved for Tanzanian citizens).

Licences for Ancillary Activities:
processing licence;
smelting licence; and
refining licence.



For purposes of AngloGold Ashanti’s Geita gold mine, only prospecting and special mining licences are relevant.


A prospecting licence grants the holder the exclusive right to prospect in the area covered by the licence for all minerals within the class of minerals applied for. The classes that can be applied for include, amongst others, metallic minerals; energy minerals; gemstones other than kimberlitic diamonds; and kimberlitic diamonds.

An application for a prospecting licence is made to the Mining Commission and the licence, once granted, is valid for an initial term of four years. After the initial term, the licence is renewable for a further period of three years, with no option for renewal thereafter. Upon renewal, 50 percent of the area covered by the licence must be relinquished. A company applying for a prospecting licence must, amongst other things, state the financial and technical resources available to it.

Holders of prospecting licences over a tenement will not automatically have first right to any mining licence granted over that tenement. However, in practice, they will be best positioned to meet the requirements to be granted a form of licence for mining.

Holder of prospecting licences have the obligations to: (i) commence prospecting operations within three months or such further period as the Mining Commission may allow from the date of the grant of the licence or the date as stated in the licence as commencement date; (ii) give notice to the Mining Commission on discovery of any mineral deposit of potential commercial value; and (iii) adhere to the prospecting programme which is attached to the licence and expend on prospecting operations not less than the amount prescribed.

A prospecting licence is not freely transferable and requires the Mining Commission to be notified of any transfer of a prospecting licence. The Mining Commission will refuse to register the transfer unless the transferee proves that it meets the financial and technical capability criteria required to apply for such licences.

Mining Licence / Special Mining Licence


Mining is mainly carried out through either a mining licence or a special mining licence, both of which confer on the holder the exclusive right to conduct mining operations in or on the area covered by the licence. A special mining licence is granted for the shorter of either the estimated life of the ore body indicated in the feasibility study report or such period as the applicant may request. It is renewable for a further period not exceeding the estimated life of the remaining ore body.

The holder of a special mining licence may apply for renewal of its licence at any time but no later than one year before the expiry of the licence. Thelicence and such renewal shall not be for a period exceeding the estimate life of the remaining ore body. The Mining Commission may reject an application for renewal if: (i) the applicant is in default; (ii) the applicant was issued with a notice of default and failed to rectify the default or the default is capable of remedial; (iii) the development of the area has not proceeded with reasonable diligence as agreed in the relevant mining development agreement; (iv) minerals are not produced in workable quantities; (v) the program of intended mining operations for the renewal will not ensure proper development of resources; and (vi) the applicant does not have the relevant environmental certificate as required by the Environmental Management Act, 2004 (No. 20).

Except in the case of a special mining licence, a mineral right may be freely transferred by its holder (in whole or in part) to another person or entity without requiring consent from the Mining Commission which is the relevant licensing authority. The grant and assignment of a special mining licence generally requires the approval of the Cabinet after the Mining Commission has forwarded the application to the Minister of Minerals for further approval. There are limited exceptions to the requirement for the licensing authority’s consent (such as transfers to an affiliate company of the licence holder or to a financial institution or bank as security for any loan or guarantee in respect of mining operations).

Special mining licences have certain fiscal and other advantages over mining licences, as the holder of a special mining licence may enter into a mining development agreement with the Government of Tanzania to guarantee the fiscal stability of a long-term mining project and make special provision for the payment of royalties, taxes, fees and other fiscal imposts and aimposts. A special mining licence holder may, in certain circumstances, unilaterally amend the programme of the mining operations agreed with the MEM.


Tax laws relating to mining


Finance Act

TheCurrently, the main tax laws in Tanzania comprise the Finance Act, 2015 (No. 16), which was assented to on 28 June 2015 and came into force on 1 July 2015, contains a provision for a 30 percent capital gains tax onand the sale of shares by an offshore parent company. This provision was introduced by the Finance Act, 2012 (No. 8) and in this legislation, additional changes were also made to the procedure for payment of capital gains tax by the seller of shares. Tax at the rate of 30 percent is payable by way of an initial instalment of 20 percent on the transfer, based on the notional gain that the seller would make after a further instalment of the remaining 10 percent is due.

The Finance Act, 2017 (No. 4), which came into force on 1 July 20172017. Both tax laws impose and imposes and altersrevise certain taxes, duties, levies and fees. It further amends certain written laws relating to the collection and management of public revenue. Among other provisions, it has introduced inspection or clearance fees on the exportation or domestic use of minerals.minerals were introduced. Such exportation or domestic use is restricted unless

such minerals have been inspected or cleared at the mining areas, ports, airports, border or posts and the clearing fee of 1 percent of the gross value of the minerals has been paid by the exporter or any other person in possession thereof. Local government levies and environmental management fees and charges apply as well.


Value Added Tax Act

TheEffective 20 July 2017, the Value Added Tax Act, 2014 (No. 5) (VAT Act), which came into force on 1 July 2015, restricts(the “VAT Act”) was amended in order to restrict VAT relief on purchases madefor VAT input tax paid by mining companies. Thecompanies on goods and services. Prior to the enactment of this amendment to the VAT Act, is specific in that it provides that no purchase by companies is exempt or zero rated, unless specified by the law. Previously mining companies were entitled to 100 percent100% VAT relief.

Local Government Levies

As mentioned below, followingrelief in respect of the signaturegoods and services they purchased. The amendment prohibits refunds for VAT input tax incurred on a series of an addendumraw products, including the exportation of “raw minerals”. Subsequently, the Tanzania Revenue Authority (“TRA”) denied our applications for VAT input credit refunds, which amounted to a total of $142 million (after discounting provisions) as of 31 December 2021, covering the mining development agreement, Geitaperiod from July 2017 onwards, on the basis that all of the gold mine is required to pay local government a service levydoré that we export constitutes “raw minerals” for purposes of 0.3 percentthe VAT Act. In response, the company filed formal notices of its gross annual turnover in lineobjection with the Local Government Finances Act, 1982 (No. 9).

Environmental Management Fees and Charges

The Environmental Management (Fees and Charges) (Amendment) Regulations, 2016 (EM Regulations), which came into effect on 2 May 2016, introduced new feesTRA stating that the exportation of gold doré is, in relation to the review of the Environmental Impact Assessment on projectsits view, not covered by the National Environmental Management Council (NEMC). According torestriction since doré does not fall within the EM Regulations, the fees involved are “0.1 percentcategory of the total project costs”. However, the EM Regulations have not defined the term “project cost” nor have they provided a detailed breakdown on the determination of the project cost.

Labour laws

On 15 September 2015, the Non-Citizens (Employment Regulation) Act, 2015 (No. 1) (Non-Citizens Act) came into force. The Non-Citizens Act vests powers concerning work permits with the Labour Commissioner. Therefore, non-citizens wishing to be employed“raw minerals” as used in the country are requiredVAT Act. On 22 February 2019, the Tanzania Mining Act was amended to apply and be grantedintroduce a work permit before applyingdefinition for a residence permit. Before granting“raw minerals” which supports our interpretation that gold doré is excluded from the work permit,prohibition. On 1 July 2020, the Labour Commissioner must satisfy himself that all efforts have been exploredFinance Act, 2020 (No. 8), amended the VAT Act, without retrospective effect, in order to acquire a local expert. Further,remove the company is required to submit a succession plan which sets out a well-articulated planrestrictions on VAT input tax credits for the transferexportation of the non-citizen’s knowledge and expertise to Tanzanian citizens. Moreover, the Commissioner General of Immigration is required to take into consideration conditions of the work permit issued by the Labour Commissioner when granting a residence permit. Previously, the issuance of a residence permit was inclusive of a work permit. The resident permit covered working and living in Tanzania.

Further, the Non-Citizens Act introduced the Short-Term Permit (STP). The STP is granted to non-citizens who wish to work in the country for a period of not more than six months. Foreigners intending to work in Tanzania for more than three months are required to apply for an STP. The application for an STP is made to the Ministry of Labour and Employment.

Section 46(6) of the Social Security Laws (Amendments) Act, 2012 (No. 5) amended the National Social Security Fund Act, 1997 (No. 28) by providing that “an employer of a non-citizen shall remit contribution for such employee in accordance with the Act”. This means that from 15 June 2012 non-citizens are also required to be insured as any other person and their contributions should be channelled to the Nationals Social Security Fund.

The Workers’ Compensation Act, 2008 (No. 20) requires a company as the employer to contribute 1 percent of the employee’s salary and fixed allowance to the Workers Compensation Fund. Following the adoption of the Workers’ Compensation Regulations 2016, all employers were required to implement the requirements of the Workers’ Compensation Act by 30 June 2016.

Transparency and accountability laws

In 2015, the Tanzania Extractive Industries (Transparency and Accountability) Act, 2015 (No. 23) (TAA) came into force. The TAA establishes the Tanzania Extractive Industries (Transparency and Accountability) Committee (TAA Committee), an independent Government entity which is an oversight body for promoting and enhancing transparency and accountability in the extractive industry.

The TAA Committee has powers under the TAA to impose obligations on specified extractive industries and statutory recipients to receive information on reconciliation on payments made and revenues received by the Government of Tanzania. In addition, an extractive industry is required under the TAA to submit to the TAA Committee annual reports containing information on local content and corporate social responsibility. Further, the TAA demands all concessions, contracts and licences to be made public“raw minerals” as well as all revenue collecteda series of other raw products. This recent amendment confirms the technical basis for VAT input tax recovery for mineral exporters from July 2020 onwards. VAT claims from July 2020 onwards are subject to verification procedures by the extractive industry.TRA before any refunds will be received. In 2021, the




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company was able to offset $54 million of verified VAT claims (from July 2020 onwards) against its corporate tax liability in Tanzania. Discussions with the TRA are ongoing to resolve our historical claims for VAT input credit refunds for the period from July 2017 to June 2020.

Natural resources, export and other rules

Natural resources legislation


The Government ofIn Tanzania, enacted two laws in respect of natural resources that came into force in July 2017: the Natural Wealth and Resources Contracts (Review and Re-negotiation of Unconscionable Terms) Act, 2017 (No. 6) (Unconscionable(the “Unconscionable Terms Act)

Act”) and the Natural Wealth and Resources (Permanent Sovereignty) Act, 2017 (No. 5) (Permanent(the “Permanent Sovereignty ActAct” and together with the Unconscionable Terms Act, the Natural“Natural Resources laws)Laws”).

Implementing regulations were published in January 2020. The Natural Resources lawsLaws provide that Tanzania has sovereignty over its natural resources and require that all arrangements or agreements that relate to “natural wealth and resources” are subject to review by the National Assembly. Such agreements must fully secureAssembly to ensure that they are in the interests of the people of Tanzania. During a review all unconscionable terms as interpreted in accordance with the law are expunged from the agreement. The laws also require that new natural resources agreements are reviewed by the Government. The natural wealth and resources of Tanzania shall be inalienable and remain as the property of the people of Tanzania held in trust by the President.

In addition, under the laws, disputes over natural wealth and resources will not be subject to any proceedings in any foreign court or tribunal. As a result, investors are restricted from accessing international dispute resolution mechanisms. Accordingly, companies are now required to adopt Tanzanian law and local dispute resolution in all mining agreements. As such, all disputes will be handles by Tanzanian judicial bodies or any other Tanzania government body vested with powers to resolve disputes.

Moreover, every undertaking must demonstrate “guaranteed returns into the economy” from all earnings accrued or derived from such extraction, exploitation or acquisition and use. In addition, to ensure that the Government and the people of Tanzania obtain an equitable stake in the exploitation of mining resources, all project earnings must be retained in Tanzanian banks. Investors are also prevented from freely exporting raw minerals and repatriating funds.

In particular, under the Unconscionable Terms Act, a term is considered “unconscionable”, if the requirements or provisions of the agreement:
Aim at restricting the right of the state to exercise full permanent sovereignty over its wealth, natural resources and economic activity;
Are restricting the right of the state to exercise authority over foreign investment within the country and in accordance with the laws of Tanzania;
Are inequitable and onerous to the state;
Restrict periodic review of life-time arrangements or agreements;
Secure preferential treatment designed to create a separate legal regime to be applied discriminatorily for the benefit of a particular investor;
Are restricting the right of the state to regulate activities of transnational corporations within the country and to take measures to ensure that such activities comply with the laws of the land;
Are depriving the people of Tanzania of the economic benefits derived from subjecting natural wealth and resources to beneficiation in the country;
Are by nature empowering transnational corporations to intervene in the internal affairs of Tanzania;
Are subjecting the state to the jurisdiction of foreign laws and foreign courts or tribunals;
Expressly or implicitly undermine the effectiveness of state measures to protect the environment or the use of environmental friendly technology; or
Aim at doing any other act the effect of which undermines or is injurious to the welfare of the people of Tanzania or the economic prosperity of the nation.


Section 6 of the Unconscionable Terms Act specifically provides that where there is an unconscionable term, the National Assembly may pass a resolution for re-negotiation of the agreement whereupon the Government shall serve notice to the investor to re-negotiate the term or agreement. The Government and the particular investor have 90 days from the notice date to re-negotiate the term or agreement. This period can be extended if both parties consent. If both parties fail to revise the unconscionable term, the term will be deemed removed from the agreement. A term is considered “unconscionable” under the Unconscionable Terms Act if, among other grounds, the requirements or provisions of the agreement restrict the right of the state to exercise authority over foreign investment within the country and in accordance with the laws of Tanzania, are inequitable and onerous to the state, secure preferential treatment designed to create a separate legal regime to be applied discriminatorily for the benefit of a particular investor, deprive the people of Tanzania of the economic benefits derived from subjecting natural wealth and resources to beneficiation in the country, or subject the state to the jurisdiction of foreign laws and foreign courts or tribunals.


Local participation policy

On 15 September 2015, the Non-Citizens (Employment Regulation) Act, 2015 (No. 1) (the “Non-Citizens Act”) came into force which vests powers concerning work permits with the Labour Commissioner. Therefore, non-citizens wishing to be employed in the country are required to apply and be granted a work permit before applying for a residence permit. Before granting the work permit, the Labour Commissioner must be satisfied that all efforts have been explored to acquire a local expert. Further, the company is required to submit a succession plan which sets out a well-articulated plan for the transfer of the non-citizen’s knowledge and expertise to Tanzanian citizens. Moreover, the Commissioner General of Immigration is required to take into consideration conditions of the work permit issued by the Labour Commissioner when granting a residence permit.

AngloGold Ashanti’s rights and permits


The Geita gold mine is located in the Lake Victoria goldfields of the Mwanza region of Tanzania. AngloGold Ashanti has concluded a mining development agreement with the Ministry of Minerals on 24 June 1999 and was issued a special mining licence (SML45/99) covering approximately 196 km2 for a period of 25 years, which expires on 26 August 2024.

On 9 October 2014, an addendum to the mining development agreement was entered into ratifying, the following changes:
Anamong other matters, an increase in the royalty rate from 3 percent to 4 percent with effect from 1 May 2012;
With effect from the financial year 2015, the capital allowance applicable to the unredeemed qualifying capital expenditure (15 percent per annum) referred to in section 18(a) of the Income Tax Act, 1973 (No. 33) shall no longer apply; and
With effect from 1 July 2014, Geita Gold Mining Limited is liable to pay the Geita District Council Levy at a rate of 0.3 percent on turnover (no longer capped at USD 200,000 per annum as provided under Article 4 of the company’s mining development agreement).

2012. In March 2020, Geita Gold Mining Limited received the consent of the Minister of Minerals to change the mining method under its special mining licenselicence from open pit to underground method, subject to the requisite terms and conditions. Within the special mining licence area, there are also seven primary mining licences of approximately 0.63 km2 in total which belong to third parties. Furthermore, Geita Gold Mining Limited holds prospecting licences covering (i) an area of 120 km2 in the immediate vicinity of its special mining licence area, and (ii) an area of 690 km2 located in the Dodoma, Singida and Shinyanga regions, but none of these areas contain any Mineral Reserve. All licenses are in good standing.



AUSTRALIA


General laws relating to mining


In Australia, with a few exceptions, all onshore minerals are owned by the Crown. The respective Minister for each state and territory is responsible for administering the relevant mining legislation enacted by the states and territories.




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Native title legislation applies to certain mining tenements within Australia. Australia recognises and protects a form of native title that reflects the entitlement of Aboriginal people to their traditional lands in accordance with their traditional custom and laws. Should native title claims or determinations exist, certain native title processes and procedures will apply under the Native Title Act 1993 (Cth) (Native(the “Native Title Act)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, underin the state of Western Australia, the Mining Act 1978 (WA) liabilityprovides that an applicant for compensation associated with native title can be passed back tothe grant of, or the holder of, a mining tenement at the time of a determination ofis responsible for native title compensation.compensation, if determined to be payable, to native title holders.


StateFederal, state and territory Aboriginal and non-Aboriginal heritage laws operate in parallel to the native title legislation. TheyState and territory heritage laws exist predominantly for the purposes of managing the impact of developments on sites, objects and areas of heritage significance. In Western Australia, impacts to Aboriginal cultural heritage are regulated by the Aboriginal Heritage Act 1972 (WA). However, this legislation will be repealed and replaced by the Aboriginal Cultural Heritage Act 2021 (WA) which was enacted in 2021 and is expected to become effective in early 2023. Where an area of heritage significance is placed on the national or world heritage registers, federal approval processes may also apply. To date, there has not been any significant impact on any of AngloGold Ashanti’s tenure due to native title or heritage legislation.


AngloGold Ashanti’s operating properties are located in the state of Western Australia where tenure is issued under, and mining operations are governed by, the Mining Act 1978 (WA). The most common forms of tenure in Western Australia are exploration and prospecting licences, mining leases, miscellaneous licences and general purpose leases. In most Australian states, if the holder of an exploration licence establishes indications of an economic mineral deposit in the area covered by the exploration licence and complies with the conditions of the grant, the holder of the exploration licence has a priority right against all others to be granted a mining lease which gives the holder exclusive mining rights with respect to minerals on the property. In Western Australia, a general purpose lease may also be granted for one or more of a number of permitted purposes. These purposes include erecting, placing and operating machinery and plants in connection with mining operations, depositing or treating minerals or tailings and using the land for any other specified purpose directly connected with mining operations.


It is possible for an individual or entity to own an area of land (including for infrastructure purposespurposes) and for another individual or entity to be granted the right to explore for or mine any minerals located on or under the surface of the same area. The maximum initial term of a mining lease in Western Australia is 21 years and the holder has the right to renew the lease for an additional 21 years. Subsequent renewals are granted at the discretion of the respective state or territory’s minister responsible for mining rights. In Western Australia, mining leases can only be assigned with the prior written consent of the minister.


Tax laws relating to mining


Government royalties are payable by the holder of mining tenure in respect of minerals obtained from the relevant area of land at the rates specified in the relevant legislation in each state or territory. The royalty on gold production in Western Australia is payable quarterly at a fixed rate of 2.5 percent of the royalty value of gold metal produced. The royalty value is calculated by multiplying the amount of gold produced during a given month by the average gold spot price for that month. In addition, the holder of a mining tenement is required to pay annual rent in respect of the tenement. In Western Australia there is a minimum annual expenditure requirement for prospecting and exploration licences and mining leases. Exemptions from the expenditure requirement can be obtained if certain conditions are satisfied.


Environmental laws relating to mining


Mining tenements will be granted with endorsements and conditions relating to protection of the environment. Exploration and mining operations may also require separate approval from the state, territory or federal environment minister, which may require completion of an environmental impact assessment (including a public consultation period) pursuant to applicable environmental protection legislation prior to commencement. Further, a works 'construction' approval and an operating licence under the relevant environmental protection legislation in the state or territory may also be required for certain mine processing or mining-related operations. Depending on the jurisdiction, a further separate approvaladditional approvals may be required for the removal of native vegetation within the tenement.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 is now situated upon two mining leases covering approximatelyand mine infrastructure (approximately 7,808 hectareshectares) and another mining lease of(M39/1117) covers the water extraction infrastructure used to supply the operation with water (approximately 1,768 hectares contains related infrastructure.hectares). Both leases are currently in good standing, with expiry dates in 2038.





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The Butcher Well joint venture has security of tenure for all current exploration licences and for the contiguous mining leases that covers its Mineral Resource. There are three mining leases: mining lease (M39/165) which covers 602.35 hectares with expiry date in 2030, mining lease (M39/166) which covers 990 hectares with expiry date in 2030 and mining lease (M39/230) which covers 446.4 hectares with expiry date in 2032.

At Tropicana, the deposit is situated upon a single mining lease (M39/1096) covering approximately 27,228 hectares, which is currently in good standing, with an expiry date in 2036.


AngloGold Ashanti Australia Limited is also conducting early stage exploration activities in Queensland under the Mineral Resources Act 1989 (QLD). AngloGold Ashanti holds 1811 exploration permits covering 497,087215,300 hectares. Each permit is granted with an initial term of five years, renewable for two further periods of not more than five years. There is an entitlement to convert exploration permits to mining titles in the form of mining claims, mining leases or mineral development licences.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 andas well as mining concessions.concessions, or exploitation rights. Exploration permits grant their holders exclusivity rights to any mineral discoveries, including those made by a third party within the exploration area covered by the permit. Exploration permits are limited in time and as to the extent of the exploration area, are subject to the payment of a single-time fee, and also require a minimum exploration work programme and schedule to keep the permit in force.

The Argentinean Mining Code also regulates mining concessions, or exploitation rights. Priority for receiving a mining concession is given to the registered discoverer of the mine, which holds the exploration permit. Once the application for a mine has been submitted, the applicant may commence works and must submit a legal survey of the units requested for the new mine. The application and the legal survey may be opposed by third parties following specific proceedings set forth in the 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 (Mining(the “Mining Investment Law)Law”), and related legal provisions being the most important one. Such incentives include, amongst others,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) (Glacier Law)(the “Glacier Law”) was enacted in Argentina, banning new mining exploration and exploitation activities on glaciers and “peri-glacial” areas. The Glacier Law also subjects on-going mining activities in those areas to an environmental audit. If such audit results in material impacts on glaciers and “peri-glacial” areas, the relevant authority is empowered to take action, including suspension or relocation of the activity. The Glacier Law establishes a broad definition of “peri-glacial” areas that, together with glacial areas, must 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. The constitutionality of the Glacier Law has been challenged by some mining companies along with the

Province of San Juan (which hosts large mining projects), but the National Supreme Court of Justice of Argentina rejected these claims on 4 June 2019.


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) (Rural(the “Rural Land Law)Law”) which implemented a set of rules restricting the ownership of rural land by foreigners (including foreign individuals or any kind of legal entity controlled by foreign individuals or legal entities). The main restrictions are as follows: (i) foreigners cannot own in the aggregate more than



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15 percent of the entire rural land of Argentina, the same cap being applicable to each 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)(“FMA”). The purpose of the FMA is, amongst other things, to increase provincial revenues from the mining industry by creating legal entities owned by provincial governments that would work in association with private mining companies. This scheme is not new in Argentina and it has been used by some provincial governments, amongst them the Santa Cruz Province (through Fomicruz), in which the Cerro Vanguardia project is located. The FMA also contemplates other forms of revenues such as the formation of special trusts to be funded by mining companies in order to finance education, health and other programmes. Additionally, the FMA included setting forth mining royalties up to 3three percent of the gross value of commercializedcommercialised 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 1one percent to 3three percent calculated at pit-head value of the mineral extracted thus bringing it to the cap of the Mining Investment Law.


Foreign exchange control regimeand export rules


Foreign exchange controls

On 1 September 2019, by means of Executive Decree No. 609/2019 (Decree)(the “Export Controls Decree”), the Argentinean national government re-establishedreinstated foreign exchange and export controls. The Export Controls Decree imposes,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 libre de cambios) the countervalue (contravalor) from their exports of goods within 15 to 365 calendar days depending on thea specified period. The export of goods exported and the relationship with the importer. Regardlessis regulated by Communication “A” 6882 of the applicable maximum term, upon collection of the export, the proceeds thereof must be sold for Argentinean pesos in the Argentinean foreign exchange market no later than five business days from the date of collection.

The Decree also authorized the Central Bank of Argentina to establish the requirements for compliance with the measures set out therein. On the same date, the Argentinean Central Bank, as the regulatory authority in charge of administering the Argentinean foreign exchange market, issued Communication “A” 6770 establishing (as modified) which establishes the specific regulatory requirements in order to implement the measures adopted by the national government. The Argentinean Central Bank delegated the responsibility to follow up and supervise compliance with the repatriation obligation in this area. Prior approval of exporters to financial institutions. In this respect, it implemented the so-called “Follow-up regime for foreign exchange countervalue from exports of goods” (Seguimiento de las negociaciones de divisas por exportaciones de bienes or SECOEXPO). Upon the expiration of the applicable term to transfer and sell the proceeds of exports, the designated financial institution must inform 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 exporter has complied with its obligations or not.$139 million (equivalent) cash balance, monies equivalent to $131 million are available to be paid to AngloGold Ashanti’s offshore and onshore investment holding companies in the form of declared dividends. Applications have been made to the Argentinean Central Bank to approve the purchase of US dollars in order to distribute an offshore dividend of $114 million to AngloGold Ashanti. While the approval is pending, the cash remains fully available for CVSA’s operational requirements.


Export duties

On 4 September 2018, export duties were imposed by Decree No. 793/2018 (Export Duties Decree) published by the Argentinean government which will be applicable until 31 December 2020. The export duty is set at 12 percent ad valorem. The Export Duties Decree, if not compensated with other tax reductions, affects the tax stability guarantee granted to Cerro Vanguardia S.A. (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 establishing a mechanism to reimburse or compensate federal taxes paid in excess of the total tax burden provided for by applicable tax stability guarantees. The resolution provides for an administrative procedure to be followed to prove that the actual tax burden is higher than the one a company should have based on its tax stability guarantee. Cerro Vanguardia S.A. initiated this procedure in order to claim reimbursement of, or compensation for, export taxes paid during 2018 in excess of the total tax burden provided for by its tax stability guarantee. The

National Mining Secretariat issued a favorable opinion regarding Cerro Vanguardia S.A.’s claim, which is currently under review by the relevant customs authorities (Customs Regional Division - Patagonia).


On 21 December 2019, the National Law on Social Solidarity and Productive Reactivation (Law No. 27, 541) (Solidarity Law)(the “Solidarity Law”) was enacted. The Solidarity Law grantsgranted 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%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 currently unclearuncertain whether this 8% limit applies automaticallythe 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 whether it requirescompensation of federal taxes paid in excess of the issuance of a decreetotal tax burden provided for by the national government.applicable tax stability guarantee. CVSA initiated this new procedure to claim compensation for




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the export duties it paid in 2018 and 2019 as export duties are not contemplated by its tax stability guarantee. Prior to the publication of RC 4428/2019, CVSA had already submitted to the tax authorities claims for reimbursement of the export duties it paid from 2008 to 2015.

Pursuant to the new administrative procedure, the National Mining Secretariat issued favorable opinions regarding CVSA’s claims in respect of fiscal years 2018 and 2019, which amounted to approximately $3.5 million and $10.8 million, respectively, as of 31 December 2021. These claims are currently under review by the relevant customs authorities. On 14 July 2021, CVSA submitted its claim in respect of fiscal year 2020, which amounted to approximately $21.4 million as of 31 December 2021. The National Mining Secretary has not yet issued an opinion regarding this claim. CVSA expects to submit its claim in respect of fiscal year 2021 in due course.

Furthermore, CVSA has requested the tax authorities to apply the procedure provided for in RC 4428/2019 in respect of its historical claims for fiscal years 2008 to 2015 during which the imposition of export duties also exceeded CVSA’s total tax burden under its tax stability guarantee. However, these claims, which amounted to approximately $5.3 million as of 31 December 2021, are still being reviewed under the rules to challenge export duties instead of the new procedure provided for in RC 4428/2019. CVSA has appealed the application of those rules and a decision on this issue is pending.

In total, AngloGold Ashanti’s net export duty receivables (after discounting provisions) in Argentina amounted to $19 million as of 31 December 2021.

Environmental laws relating to mining


Any mining company wishing to commence or modify any mining-related activity, as defined by the Argentinean Mining Code, including prospecting, exploration, exploitation, development, preparation, extraction, and storage of mineral substances, as well as property abandonment or mine closure activity, is required to prepare and submit to the competent provincial environmental authority an Environmental Impact Assessment (EIA)(“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)(“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


In the caseThe mining concession holder of Cerro Vanguardia, AngloGold Ashanti’sthe company’s operation in Argentina, the mining concession holder is AngloGold Ashanti’s partner, Fomento Minero de Santa Cruz S.E. (Fomicruz).(“Fomicruz”), which is wholly owned by the Santa Cruz Province. On 27 December 1996, Fomicruz entered into a usufruct agreement whereby Cerro Vanguardia S.A.CVSA was granted an irrevocable right to exploit the Cerro Vanguardia deposit (encompassing an area of approximately 543 km2) for a 40-year period,period. The mining licence (402642/CV/97), which covers the full Mineral Reserve, expires on 26 December 2036. Cerro Vanguardia S.A.CVSA is a corporation incorporated in Argentina indirectly controlled by AngloGold Ashanti (92.5 percent), with Fomicruz as minority shareholder.shareholder (7.5 percent). On 14 August 1996, Cerro Vanguardia S.A.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)(“ANM”) is the state body within the Mines and Energy Ministry (MME)(“MME”) that is responsible for: (i) the registration of mining titles, (ii) the grant of authorisations and concessions, (iii) the supervision of mining activities and mining titleholders, and (iv) the issuance of supplementary rules in relation to mining activity.


Under the current Brazilian Mining Code, there are two kinds of mines: (i) claimstake mines (minas manifestadas), for which rights were acquired before 1934 and exist independently of any mining licence or authorisation from the Federal Government and for which the Mineral Resources constitute property of the landowner, and (ii) granted mines, which are those that rely on grants from the Federal Government for mineral exploration or exploitation (pursuant to the Brazilian Constitution of 1988). AngloGold Ashanti’s operations in Brazil consist of both claimstake mines and granted mines.


Mining activities in granted mines must be performed in two defined stages: (i) exploration, which entails defining and evaluating the deposit and determining the feasibility of exploitation, and (ii) exploitation, which involves coordinating operations aimed at the industrial exploitation of the mineral deposit, from the extraction of useful minerals to their processing. Exploration



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authorisations issued by ANM are valid for one to three years. Extensions can be obtained if necessary, as long as it is justified. In contrast, exploitation rights, once granted, are valid for the lifetime of the deposit, provided the mining titleholder complies with all legal requirements. Pursuant to these requirements, for example, titleholders must (i) start work on mineral exploitation within six months from the date of publication of the Exploitation Concession, (ii) continue their mining activities until the mineral deposit has been exhausted, in accordance with the Economic Exploitation Plan (Plano de Aproveitamento Econômico) approved by ANM, and (iii) refrain from suspending mining activities without prior notice to ANM.


Tax laws relating to mining


During the exploration period, the mining titleholder has to pay an Annual Rate per Hectare (Taxa Annual por Hectare or TAH)“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)“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 research, extraction and exploration activities as well as on the use of Mineral Resource carried out in those states. This tax could range from BRL3.00 to BRL6.50 per ton of ore extracted. In the statesstate of Minas Gerais, and Goiás, however, gold ore wasand 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) operated(“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, Brazilian 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 adopting,have adopted, stricter laws and regulations applicable to the approval, licensing, construction, management, closure and decommissioning of TSFs in Brazil. For example, some of the new measures under consideration or enacted include (without limitation):
A ban prohibiting construction of new upstream tailings dams;
New requirements mandating reinforcement and earlier-than-planned closure of existing upstream TSFs;
New requirements mandating removal of all tailings material from TSFs (“decharacterization”), regardless of the original design method, upon closure and prior to decommissioning and environmental rehabilitation;
New requirements mandating bi-annual (each year in March and September) TSF Stability Declarations for approved TSFs, signed by an external engineering consultancy and geotechnical senior manager as well as company directors, to be submitted to the ANM and the relevant state environmental agency;
New requirements for companies to place a surety bond in the preliminary permit phase; and
Banning permits for any new dam where there are communities within 10 km downstream or where a dam break could affect communities in less than 30 minutes (within the Self-Rescue Zone).

Furthermore, in addition to the 156 bills that were already being considered by the National Congress, another 51 bills dealing with the mining sector were presented in 2019 that may significantly impact the mining sector and the company. For example, Federal Bill No. 550/2019, if adopted, will require the company to complete the decharacterization (descaracterização) and decommissioning of its TSF at the Serra Grande mine in the state of Goiás, which was built by the upstream method, by 25 February 2022. For the company’s other TSFs in Brazil, all of which are downstream or “centreline” designs, the following options are permitted: either (i) the structure must be decharacterized 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, the company will still be required to decharacterize and decommission the TSF at the end of the life of the mine. This bill also introduces the requirement to present a surety bond at the planning stages for the TSF. The mining sector, including the Minas Gerais Industry Association (FIEMG), the National Industry Association (CNI) and the Brazilian Mining Chamber (IBRAM), is liaising with the legislative authorities and other stakeholders in an effort to introduce amendments to this proposed bill which would mitigate some of the concerns identified by the mining industry, in particular, regarding the requirement to remove tailings material from decommissioned TSFs. As of yet, none of these new bills have been approved by the National Congress.

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 the deactivation ofoperators 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 the decommissioning ofto decommission such TSFs by 15 AugustSeptember 2022 to 15 September 2027 (depending on the capacity volume). To comply with the terms of ANM Resolution No. 13/19, does not require complete removal of tailings material from TSFs. As a result, the Serra Grande minetailings dam in the state of Goiás is inmust be decommissioned by 15 September 2025. The Serra Grande mine completed the process of reinforcing the dam walls of its upstream TSF, in advance of its expected deactivationdeactivating the TSF and migrating to dry-stacking operations, each by the 15 September 2021. In addition,2021 deadline.

Furthermore, Federal Law No. 14.066/20, adopted in October 2020, also imposes requirements on companies to decommission upstream TSFs, including the companySerra 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 begunsubmitted timely requests to obtain an extension of the processcompliance 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 evaluating alternate structuresthose 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 upstream TSF,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 well as any potential increases in regulatory and cost obligations as a result“decharacterisation” or “descaracterização”).






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Table of new requirements applicable to TSFs.Contents

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,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 is covered by three geographically contiguous concessions totallyhas a single mining concession (No. 932.710/2017) covering a total area of 1,622 hectares andhectares. Córrego do Sítíotio 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. All of these are in good standing.

At Serra Grande, the company has interests

in or agreements over 61,50025,719.94 hectares in Crixas Greentonethe 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 OreMineral 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.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 authorizationauthorisation to explore and exploit minerals through a concession contract.


Such concessions allow concessionaires to conduct the studies, works and facilities necessary to establish the existence of minerals and to organise their exploitation. Upon being awarded a mining concession, a company must take out an insurance policy to cover the costs associated with potential environmental damage as well as breaches of its mining obligations. It may



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then proceed with exploration activities. Once the exploration phase is complete, the concessionaire files a new plan regarding proposed works and facilities. With the award of the mining concession or tenement contract, there are specified timelines for the completion of the various phases of a mining project, e.g. exploration, construction, exploitation. The company must comply with these timelines unless performance is suspended, for example, due to force majeure or extensions or modifications to the timelines. A grant of force majeure is for one year and must be renewed on an annual basis. If the company does not comply with the specified timelines for the completion of the various phases of a mining project, the mining authority may revoke the company's concession contracts or mining licenses.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.renewed.


PINES programprogramme


In 2013,, the federalnational government instituted the PINES programprogramme 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 program,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 signed.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 licenselicence is granted the concessionaire must invest 1 percent of the project’s value to benefit the basins covered by the environmental license.licence.



Environmental laws relating to mining


In order to obtain an authorization fromauthorisation 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 to carry out a project, the company must prepare an Environmental Impact Study (E.I.A.(Autoridad Nacional de Licencias Ambientales or “ANLA”) for approval by this authority.

. Global environmental licenseslicences are granted for the entire life of the project and cover all phases: construction, assembly, operation, maintenance, dismantling, final restoration, abandonment and/or termination. Construction and assembly permits (Plan de Trabajos y Obras or “PTO”) are granted by the mining authority with jurisdiction over the project.


AngloGold Ashanti’s core mining concession contracts provide thatIn Colombia, the mining authority has the discretion to declare the underlying concession void if the specific company which holds the concession breaches applicable environmental laws or regulations. If the mining authority were to exercise such discretion, against it, sucha 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 AngloGold Ashanti subsidiaries of the company operating in Colombia, which holdif those concession contracts are held singularly or in concert with joint venture partners the majority of the company’s concession contracts in Colombia.partners.


There are some areas where miningMining activity is prohibited. These areas areprohibited 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.Importance.Some forest reserves are not “protected” but are set aside for active forestry purposes. Such forest reserves must be “extracted” after initial prospection, meaning thatpurposes and the concessionaire must obtain a specific permit to partially and temporarily change the use of the soil before pursuing exploration activities. In addition, Resolution 187/2016, passed by the federalnational 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. (AGA Colombia)S.A.S. (“AGA Colombia”) remains in force majeure due to the delays in the granting of the environmental permits by thenational and local environmental authority,authorities, thereby preventing AGA Colombia from undertaking further exploration activities. The current one-year grant of force majeure, during which time the specified timelines for completing the various phases of the mining project under the concession contract are suspended, will expire on



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22 June 2020 and the request for an extension is pending.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. (MCQ)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 5881No. 14292 is in its third yearthe phase of the exploration phaseconstruction and assembly, pending resettlement of communities and the Quebradona project requestedformal start of construction activities. GCL has received an environmental licence granted by ANLA and permits for the Mining Authority forconstruction and mining operation which were approved by the relevant mining authority (Secretaría de Minas de Antioquia). GCL also holds an extensionexploration concession No. 4894 (which covers a total area of 2 more years.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, and often the state government will have an ownership interest in minerals, regardless of whether the state is the surface owner.government. The right to mine on such federal land in western states is governed by the U.S. General Mining Law of 1872, as amended (General(the “General Mining Law)Law”). The General Mining Law allows mining claims (for mining and mining-related activities) on certain federal lands upon the discovery of a valuable mineral deposit andafter proper compliance with claim location and maintenance requirements.

In Nevada, AngloGold Ashanti (U.S.A.) Exploration Inc. is advancing a joint venture property, the Silicon Project, on federal lands through an Earn-in Option Agreement for 277 mining claims, covering an area of approximately 5,700 acres. Additionally, a further 1,414 mining claims (29,215 acres) in the name of AngloGold Ashanti North America Inc. are also being explored. On these lands, AngloGold Ashanti (U.S.A.) Exploration Inc. is currently engaged in early-stage exploration activities that include, but are not limited to, geological and spectral mapping, surface geochemical sampling, geophysical surveying and RC and/or diamond drilling.


Mineral exploration activities in Nevada are also generally subject to applicable federal, state, and local permitting requirements, but the specific regulatory authorizationsauthorisations required for the company’s activities are based on the nature and location of the exploratory

work. AngloGold Ashanti (U.S.A.) Exploration Inc.’sMany of the company’s Nevada operations are currently conducted under what is generally referred to under federal law as a notice-level operation subject to 43 CFR § 3809.21. The3809.21, while projects that are more advanced require additional permitting, including a Plan of Operations approved by the federal Bureau of Land Management (BLM) issued a Notice(“BLM”). The State of Decision for the Silicon Project approving the proposed exploration operations on 1 November 2017.  The BLM determined that the operations would not cause unnecessary or undue degradation as defined under 43 CFR § 3809.5. Three amendments to the NoticeNevada Division of Decision have been authorized by the BLM in letters dated 31 January 2018, 2 April 2018, and 4 October 2018. The Notice of Decision requires reclamation of the drill pads and roads, including the reseeding of disturbed lands. The Notice of Decision also set the financial guarantee amount for reclamation. The Notice of Decision includes a renewable 2-year term from the date of the last amendment to the Notice.

The BLM issued a Notice of Decision for the Rhyolite North Project approving the proposed exploration operations on 14 January 2020. The Rhyolite North Project, situated within the Nye County of south-western Nevada, is wholly owned by AngloGold Ashanti North America Inc. It is an early-stage exploration project managed by AngloGold Ashanti (U.S.A.) Exploration Inc. and is currently comprised of 237 unpatented mining claims.

Nevada’sEnvironmental Protection’s Bureau of Mining Regulation and Reclamation (BMRR)(“BMRR”) also regulates mining within the state.  Explorationstate of Nevada. However, exploration projects of 5 acres or less, the scope of a notice-level operation under federal law, are exempt from BMRR regulation. AngloGold Ashanti’s currentCertain of the company’s early-stage exploration programsactivities fall within this exemption.


AngloGold Ashanti (U.S.A.) ExplorationIn 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. has initiated a subsequent permitting process for, 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, to increase the exploration activities beyond the 5-acre notice level. This process was initiated in 2019 with the completion and submission of the required environmental baseline studiesNorth Bullfrog Project and the submissionMother Lode Project.

In 2021, the state of Nevada enacted a Plan of Operationnew tax on Nevada gold and Reclamation Plansilver mines (in addition to the BLM and BMRR.existing Nevada net proceeds of minerals tax, which is a 5 percent net tax). The permitting processnew mining tax is expecteda 0.75 to be completed in 2020 and decisions from the BLM and BMRR are expected to be received in the same year.1.1 percent excise tax based on a mine’s annual gross revenue.




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Minnesota


In Minnesota, AngloGold Ashanti Minnesota Inc. completed early-stage reconnaissance exploration activities to determine the potential for gold mineralizationmineralisation in the northern counties of Minnesota. Based on the achieved results, the company has decided to terminateterminated its exploration activities in the state and it is currently instate. In early 2021, the process ofcompany 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. The U.S. Environmental Protection Agency has also proposed potential revisionsIn June 2020, former President Trump signed an executive order directing certain federal agencies to financial assurance requirements relatingstreamline 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 mineral development activities.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 programs.programmes. If any of the above-referenced provisionsrequirements, standards or conditions were adopted in the future that imposed additional or new obligations or costs on AGA in connection with our exploration or extraction activities in the United States, the company’s operations in Nevada could be adversely affected.




MINE SITE REHABILITATION AND CLOSURE


Closure, an integral part of operations


All mining operations eventually cease. An integral aspect of operating AngloGold Ashanti’s mines is ongoing planning for and, where feasible, implementation of concurrent rehabilitation, together with an estimate of associated liability costs and the placement of adequate financial provisions and assurances to cover these costs.


All of AngloGold Ashanti revised its group closure planning management standard in 2013 and all of itsAshanti’s operations are required to comply with theits group closure planning standard, as well as applicable law and regulations, as their closure plans are reviewed and updated.

Closure planning is an activity that starts at the exploration and mine design stage and continues throughout the life of mine:
•New projects include a conceptual closure plan which takes into accountanticipates future closure and associated rehabilitation activities and otherrelated costs.
•The closure plan is reviewed annually and updated every three years (annually in the final three years of a mine’s life) or whenever significant changes are made, taking into account operational conditions, planning and regulatory requirements, international protocols, technological developments and advances in practice.international good practice (e.g., ICMM Mine Closure: Good Practice Guide) and technological developments.



For many of the older mines, closure planning and the evaluation of environmental liabilities is a complex process. This is particularly so in Brazil Ghana and South Africa,Ghana, where many of the mining and other operations have taken place for more than fifty years. A particular challenge is concurrent rehabilitation, which is carried out while a mine is still operational. This practice serves to decrease the ultimate liability and reduces the final rehabilitation and closure work that must be undertaken, but has the potential to sterilise OreMineral Reserve, which the company might wish to exploit should conditions, such as the gold price, change.


The company’s group closure standard stipulates that closure planning must be undertaken in consultation with the community.stakeholders. In the course of these consultations, different issues are raised which require site-specific solutions. Livelihood preservation and infrastructure are often key requirements. Communities also require information on the company’s rehabilitation of the landscape and on any lasting environmental impacts. Long-term remediation obligations, including decommissioning and restoration liabilities relating to past operations, are based on environmental management plans and compliance with current environmental and regulatory requirements.


Provisions for decommissioning and rehabilitation costs are made when there is a present obligation, it is probable that expenditure on decommissioning and rehabilitation work will be required and the cost can be estimated within a reasonable range of possible outcomes. These costs are based on currently available facts, technology expected to be available at the time of the clean-up,rehabilitation, laws and regulations presently or virtually certain to be enacted and previous experience in the rehabilitation of mine sites.


Decommissioning costs and restoration costs are provided at the present value of the expenditures expected to settle the obligation, using estimated cash flows based on current prices. Estimates are discounted at a pre-tax rate that reflects current market assessments of the time value of money.





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Provisions for decommissioning and for restoration (excluding joint ventures)ventures and discontinued operations) increased from $637$674 million in 20182020 to $730$688 million in 2019 (including the rehabilitation obligations transferred to held for sale liabilities and associated with our pending sale of operations in Mali and South Africa).2021. This increase mainly relates to proposed requirements regarding the removal of tailings materials from tailings storage facilities in Brazil upon closure and decommissioning (a process known as “decharacterization”) and 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 flowsflows.


SUSTAINABILITY AND ENVIRONMENTAL, SOCIAL AND GOVERNANCE (“ESG”) MATTERS

AngloGold Ashanti’s sustainability approach is fundamental to how the company operates its business, as well as its ability to create long-term value for its shareholders, employees and changessocial partners through safely and responsibly exploring, mining and marketing its products. Sustainability and safety are integrated into the company’s business and operations at all levels through various frameworks, standards and policies, and the company measures its performance in design of tailings storage facilitiesachieving its goals against its sustainability and in methodology following requests from the environmental regulatory authorities.other ESG metrics, as well as its engagement with stakeholders.


ENVIRONMENTAL, HEALTH AND SAFETY MATTERS


In additionmitigating the risks and impacts that are an inherent part of its business, AngloGold Ashanti is informed by an annual assessment of its key ESG issues. This process is aligned with guidance published by the International Integrated Reporting Council (“IIRC”), the Sustainability Accounting Standards Board (“SASB”), the Global Reporting Initiative (“GRI”) Standards and the Accountability AA1000 Stakeholder Management Standard. This assessment is annually reviewed by AngloGold Ashanti’s senior leadership and approved by the Social, Ethics and Sustainability Committee (the “SES Committee”).

AngloGold Ashanti’s board of directors, assisted by the SES Committee, has ultimate responsibility over environmental, safety, health and ethical matters and for the integration of sustainability objectives into AngloGold Ashanti’s business. This includes oversight of the company’s stakeholder engagement framework and structures, which apply to post-mining land rehabilitationinvestors, employees, governments, suppliers and closurecommunities, at every stage of its business from exploration to mine closure. Group Corporate Affairs and Sustainability is responsible for development of management systems and supports the company’s general managers in the day-to-day implementation of its sustainability strategy.

AngloGold Ashanti maintains a set of policies and procedures to guide the company in acting as a responsible corporate citizen, including the Code of Business Principles and Ethics which sets requirements for the implementation of key corporate policies and guidelines and applies to all management and employees, and to maintain compliance with applicable environmental, health and safety (“EHS”) laws. In 2021, AngloGold Ashanti continued with the implementation of the Integrated Sustainability Information Management System (“iSIMS”), in order to improve internal reporting and better integrate and monitor sustainability activities with respect to its broader business. This common reporting system for all sustainability disciplines, from safety, health and security to community and environmental management, is expected to help provide timely information in each of these areas, and to facilitate transparency and decision-making in its processes and practices.

Significant EHS requirements and ESG risks and trends affecting the company’s mining and processing operations are described below.

EHS Regulatory Compliance

AngloGold Ashanti is subject to extensive environmental, health and safety (EHS)EHS laws and regulations in the various jurisdictions in which the company operates. These requirements govern, among other things, extraction, use, conservation and discharge of water; air emissions (including dust control and greenhouse gases)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 ourthe company’s operations, including the requirements contained in environmental permits, are generally becoming more restrictive. Significant EHS requirements, risks and trends affecting our mining and processing operations are described below.

Regulatory Compliance


Capital and operating costs to comply with EHS laws and regulations have been, and are expected to continue to be, significant to AngloGold Ashanti. In addition, AngloGold Ashanti could incur fines, penalties and other sanctions, environmental clean-up costs, and third-party claims for personal injury or property or natural resources damages; suffer reputational damage; and be required to install costly pollution control equipment or to modify or suspend operations, as a result of actual or alleged violations of, or liabilities under, EHS laws and regulations. Failure to comply with applicable EHS laws and regulations may also result in the suspension or revocation of permits and, in some jurisdictions, ourthe right to mine a given concession. AngloGold Ashanti’s ability to obtain and maintain permits and other approvals and to successfully operate near particular host communities may be adversely impacted by real or perceived effects on the environment or human health and safety associated with AngloGold Ashanti’s or other mining companies’ activities. In addition, unknown environmental hazards may exist at the company’s properties which may have been caused by previous owners or operators.


Water ManagementSOUTH AFRICA


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

General laws relating to mining

The MPRDA

The Mineral and Petroleum Resources Development Act, No. 28 of 2002 (the “MPRDA”) came into effect on 1 May 2004. The objectives of the MPRDA are, amongst other things, to allow for state sovereignty over all mineral and petroleum resources in the country, to promote economic growth and the development of these resources and to expand opportunities for the historically disadvantaged and to ensure security of tenure for the respective operations concerning prospecting, exploration, mining and production. By virtue of the provisions of the MPRDA, the state ensures that holders of mining and prospecting rights contribute to the socioeconomic development of the areas in which they operate. The Mineral and Petroleum Resources Development Amendment Act, No. 49 of 2008 (the “MPRDAA”) became effective on 7 June 2013. On 23 April 2004, the Minister of Mineral Resources and Energy (the “MRE Minister”) published, under the terms of the MPRDA, the Mineral and Petroleum Resources Development Regulations in order to implement the provisions of the MPRDA and MPRDAA. These implementation regulations were amended on 27 March 2020.

The mining charter

Since 2004, a series of mining charters have been adopted in South Africa with the main purpose of transferring part of the ownership of mining assets to black or historically disadvantaged South Africans (“HDSAs”) within a certain time period. Such mining charters also set targets for, amongst other things, the advancement of HDSAs into management positions, the employment of women, procurement of goods and services from HDSA-owned companies, training, community development and the upgrading of mine housing. In 2004, the Broad-Based Socio-Economic Empowerment Charter for the South African Mining Industry, 2004 was published and, in September 2018, the Broad-Based Socio-Economic Empowerment Charter for the Mining and Minerals Industry, 2018 (the “2018 Mining Charter”) was published, repealing all prior mining charters. In September 2021, the High Court of South Africa (Gauteng Division) held that the 2018 Mining Charter is a policy document and does not, per se, bind holders of mining titles. The High Court also set aside various provisions of the 2018 Mining Charter. In



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

The B-BBEE Act

The Broad-Based Black Economic Empowerment Act, No. 53 of 2003 (the “B-BBEE Act”) is a law of general application in respect of Broad-Based Black Economic Empowerment (“B-BBEE”) and enables the Minister of Trade and Industry to drive B-BBEE across all sectors of the economy. In 2014, the Broad-Based Black Economic Empowerment Amendment Act, No. 46 of 2013 (the “B-BBEE Amendment Act”) came into effect amending the B-BBEE Act to provide a framework of principles, strategies and guidelines aimed at promoting the broad-based socio-economic empowerment of HDSAs across the South African economy and society in the form of ownership, management, employment equity, skills development, preferential procurement, enterprise development and socio-economic development.

Environmental laws relating to mining

The National Environmental Management Act, No. 107 of 1998, as amended (the “NEMA”) includes provisions to deal with environmental regulation of mining and prospecting, which provisions are administered by the MRE Minister. Pursuant to section 24N(8) of NEMA, directors of a company are jointly and severally liable for any negative impact on the environment, whether advertently or inadvertently caused by the company they represent, including damage, degradation and pollution.

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

AngloGold Ashanti’s rights and permits

Pursuant to the SA Sale Agreement, AngloGold Ashanti and Golden Core executed a notarial deed of cession of the mining rights with DMRE references GP 30/5/1/2/2/01 MR and processingGP 30/5/1/2/2/248 MR to transfer and cede these mining rights to Golden Core (the “Deed of Cession”). On 14 June 2021, the Deed of Cession was registered at the Mineral and Petroleum Titles Registration Office (the “MPTRO”).

With respect to the mining right held under DMRE reference GP 30/5/1/2/2/11 MR, AngloGold Ashanti and Golden Core agreed to make an application in terms of section 102 of the MPRDA at the DMRE after the closing date of the SA Sale Agreement requesting, among other matters, the incorporation of this mining right into the mining right with DMRE reference GP 30/5/1/2/2/01 MR (the “Harmony Consolidation Application”). AngloGold Ashanti also executed a notarial conditional deed of abandonment pursuant to which it conditionally abandons this mining right in terms of section 56(f) of the MPRDA (the “Deed of Abandonment”) on condition that ministerial consent is granted in respect of the Harmony Consolidation Application. On 17 January 2022, the Harmony Consolidation Application was submitted to the DMRE. On the date of the grant of the Harmony Consolidation Application, AngloGold Ashanti will cease to be a holder of any mining rights in South Africa. Once the transaction has been fully implemented, the general laws relating to mining outlined above will no longer be applicable to the company, other than the statutory duty of care in terms of NEMA as described above.


AFRICA REGION

Democratic Republic of the Congo (DRC)

General laws relating to mining

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






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

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

The Reformed DRC Mining Code grants the DRC Minister of Mines the authority to grant, refuse, suspend or terminate mineral rights, subject to conditions set out in the Reformed DRC Mining Code. Mineral rights may be granted in the form of exploration permits for an initial period of five years or in the form of mining permits which are granted for an initial period of 25 years. Mining permits are granted upon successful completion of exploration and satisfaction of certain requirements, including approval of a feasibility study, an environmental impact study and an environmental management plan. The holder of a mining permit is required to commence development and mine construction within three years of the award of such permit. Failure to do so may lead to forfeiture of the mining permit. To protect and enforce rights acquired under an exploration or mining permit, the Reformed DRC Mining Code provides, depending on the nature of a dispute or threat, administrative, judicial and national or international arbitral recourses.

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

Tax laws relating to mining

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

The standard rate of VAT is 16 percent and is applicable to all mining companies. In the DRC, Kibali Goldmines is due certain refunds of VAT which, to date, remain outstanding. During 2021, AngloGold Ashanti did not recover any VAT offsets and refunds from its operations in the DRC. We believe that our attributable share of the net recoverable VAT balance (including recoverable fuel duty and after discounting provisions) owed to us by the DRC government amounted to $73 million as of 31 December 2021. While an agreement was reached with the DRC government on the reimbursement of the refundable VAT in 2018, uncertainty remains regarding the timing and level of cash receipts and offsets against other taxes for purposes of the recovery of our VAT receivables in the DRC.

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

Foreign exchange control regime

The Reformed DRC Mining Code imposed new exchange control rules requiring that mining title holders repatriate onshore 60 percent of sale revenues received during the investment amortisation period and 100 percent once the investment amortisation is completed. As a result of these new rules, AngloGold Ashanti was not able to fully repatriate dividends from its DRC operations to date.

In 2021, AngloGold Ashanti repatriated $231 million from its operations in the DRC, in the form of dividends from Kibali (Jersey) Limited. Kibali (Jersey) Limited received such cash from Kibali Goldmines S.A. in the form of loan repayments (AngloGold Ashanti’s attributable share: $150 million) and dividends (net of withholding taxes) (AngloGold Ashanti’s attributable share: $81 million). Our attributable share of the outstanding cash balances awaiting repatriation from the DRC amounted to $499 million as of 31 December 2021. The cash and cash equivalents held at Kibali Goldmines are subject to various steps before they can be distributed to Kibali (Jersey) Limited and are held across four banks in the DRC, including two domestic banks.






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AngloGold Ashanti’s rights and permits

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

The Kibali gold project is operated by Barrick Gold Corporation and comprises ten exploitation permits, of which eight expire in 2029 and two in 2030. Those exploitation permits (11447, 11467, 11468, 11469, 11470, 11471, 11472, 5052, 5073, and 5088) cover an area of approximately 1,836 km2 in the Moto goldfields.


Ghana

General laws relating to mining

Control of minerals and mining companies

The Constitution of Ghana as well as the Minerals and Mining Act, 2006 (Act 703) (the “GMM Act”) provide that all minerals in Ghana in their natural state are the property of the State and title to them is vested in the President on behalf of and in trust for the people of Ghana, with rights of reconnaissance, prospecting, recovery and associated land usage being granted under licence or lease. The grant of a mining lease by the Ghana Minister of Lands and Natural Resources (the “LNR Minister”) upon the advice of the Minerals Commission is subject to parliamentary ratification unless the mining lease falls into a class of transactions exempted by the Ghanaian Parliament. The LNR Minister has the power to object to a person becoming or remaining a controller of a company which has been granted a mining lease if the LNR Minister believes, on reasonable grounds, that the public interest would be prejudiced by the person concerned becoming or remaining such a controller.

Stability and development agreements

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

Ghana Stability Agreement

In 2004, AngloGold Limited and the Government of Ghana signed a stability agreement (the “Ghana Stability Agreement”) governing certain aspects of the fiscal and regulatory framework under which the company would operate in Ghana for a period of 15 years following the implementation of the business combination between AngloGold Limited and Ashanti Goldfields Company Limited. In June 2018, the Ghana Stability Agreement ceased to apply to the Obuasi mine as a result of the parliamentary ratification of a new development agreement and a new tax concession agreement in relation to the mine (as described below). However, the Ghana Stability Agreement continued to apply to the Iduapriem mine until it expired in April 2019. Since then, AngloGold Ashanti (Iduapriem) Limited (“AGA Iduapriem”) no longer benefits from the Ghana Stability Agreement. Relevant engagements are currently ongoing between AGA Iduapriem and the Minerals Commission to obtain a new agreement for the Iduapriem mine.

Obuasi Development Agreement

AngloGold Ashanti (Ghana) Limited (“AGA Ghana”) negotiated a new development agreement in relation to the Obuasi mine (the “Obuasi DA”) with the Government of Ghana. On 21 June 2018, the Ghanaian Parliament ratified the Obuasi DA which contains stability terms as provided for in stability agreements. The Obuasi DA confers a number of rights and obligations on AGA Ghana with respect to the Obuasi mine, including, among other matters, (i) the stabilisation of the fiscal and regulatory framework (except for enactments promoting the use of Ghanaian goods and services) for a period of 10 years (with a potential of it being extended for five years); (ii) the right to hold up to 80 percent of proceeds received from exporting minerals in foreign currencies outside of Ghana; (iii) obligation to give preference to materials and goods made in Ghana as well as services provided by Ghanaians; and (iv) the right to peaceful enjoyment and protection against expropriation.






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Obuasi Tax Concession Agreement

Fiscal terms, which will ordinarily form part of a single stabilisation document, were separated from the Obuasi DA. Hence a separate tax concession agreement in relation to the Obuasi mine (the “Obuasi TCA”) was signed with the Government. On 21 June 2018, Parliament ratified the Obuasi TCA with a concession period until 31 December 2027. The Obuasi TCA contains a number of tax concessions for AGA Iduapriem with respect to the Iduapriem mine, including, among other matters, (i) a corporate income tax rate of 32.5 percent or such lower rates as may be fixed by law (instead of the current statutory rate of 35 percent); (ii) exemption of certain transactions from capital gains tax; (iii) a sliding scale royalty rate ranging from 3 percent to 5 percent for a price ranging from $1,300 up to $2,000 and above per ounce (instead of the current flat rate of 5 percent); and (iv) certain VAT exemptions and refunds.

Government’s Golden Share

Section 60(1) of the GMM Act provides that the Government of Ghana can require a mining company to issue for no consideration to the Republic of Ghana a special share (a “Golden Share”). A Golden Share in AGA Ghana was issued to the Government of Ghana and the Obuasi DA confirms that the Government’s rights with respect to its Golden Share apply only in respect of AGA Ghana’s assets and operations in Ghana. The Golden Share confers certain rights on the Government in respect of AGA Ghana. For example, written consent of the holder of the Golden Share is required for, suchamong other matters, (i) any amendment of the rights and restrictions in respect of the Golden Share; (ii) the voluntary winding-up or voluntary liquidation of AGA Ghana; (iii) the disposal of any mining lease held by AGA Ghana; and (iv) the disposal of all or substantially all of the assets of AGA Ghana. The holder of the Golden Share generally does not have the right to participate in the profits or assets of AGA Ghana (by way of dividend or other capital issuances), but is entitled to attend any general meeting of shareholders.

Tax laws relating to mining

Currently, the main tax laws in Ghana include the following acts and regulations, which have been frequently amended over the years:
•Income Tax Act, 2015 (Act 896) (as amended) and Income Tax Regulations, 2016 (L.I. 2244);
•Customs Act, 2015 (Act 891) (as amended) and Customs Regulations, 2016 (L.I. 2248);
•Value Added Tax, 2013 (Act 870) (as amended) and Value Added Tax Regulations, 2016 (L.I. 2243); and
•Revenue Administration Act, 2016 (Act 915).

The Income Tax Act, 2015 (Act 896) ringfences and taxes income derived from mining operations at the rate of 35 percent. The Obuasi TCA for AGA Ghana provides for a stabilised income tax rate of 32.5 percent. AGA Iduapriem currently pays income tax at the rate of 35 percent.

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

Environmental laws relating to mining

Mining companies are required, under the GMM Act, Environmental Assessment Regulations, 1999 (L.I. 1652) and Water Use Regulations, 2001 (L.I. 1692), to obtain all necessary approvals from the Environmental Protection Agency (the “Ghana EPA”) and, in appropriate cases, the Water Resources Commission and/or the Ghanaian Minerals Commission before undertaking mining operations. Typically, water-use permits or water rights in each country impose limitsThis includes undergoing an environmental impact assessment process and, following the issuance of the environmental permit, periodically preparing environmental management plans, which include details of the likely impacts of mining operations on the quantityenvironment and local communities, as well as a comprehensive plan and timetable for actions to mitigate and remediate any adverse effects of the mining operations, for submission to the Ghana EPA. The Minerals and Mining (Health, Safety and Technical) Regulations, 2012 (L.I. 2182) also impose further obligations to obtain the necessary permits from the Inspectorate Division of the Ghana Minerals Commission for the operation of mines. The environmental permits for AGA Ghana (for the Obuasi redevelopment project and for the construction and operation of tailings and water infrastructure projects) are valid until November 2022. The environmental permits for AGA Iduapriem (for the re-mining of Block 5 and for the tertiary crusher installation project) are valid until July 2022. Renewal processes for the environmental permits for both mines are underway. The permit for the tailings infrastructure project of AGA Iduapriem is valid until 2023.

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



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years. Each mining company is typically required to secure a percentage (typically between 50 percent and 100 percent) of the estimated rehabilitation costs by posting reclamation bonds underwritten by banks and restricted cash. The terms of each reclamation bond are determined by a reclamation security agreement between that company and the Ghana EPA. Both AGA Ghana and AGA Iduapriem have bank guarantees in place for environmental reclamation liabilities as well as escrow accounts with joint signatories from the Ghana EPA. The guarantees for AGA Iduapriem will expire in October 2022, whereas the guarantees for AGA Ghana are valid until December 2022.

Foreign exchange, export and other rules

Retention of foreign earnings

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

Rules regarding the export of gold and diamonds

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

Local assaying and refinement policies

In November 2016, the Ministry of Lands and Natural Resources issued a ministerial directive appointing the PMMC as designated laboratory for assaying in Ghana. The directive requests all persons holding export licences for gold to submit all gold to be exported to the PMMC for assay before export. Mining businesses, including AngloGold Ashanti, acting through the Ghana Chamber of Mines were opposed to this directive due to its potential negative impact on mining companies in the region. As a result, the Chamber initiated proceedings to reverse or modify the directive. Following discussions in respect of the mining industry’s concerns, the Chamber and Government agreed on the modalities for implementing the national assaying policy and it was introduced in February 2018 following a one-month pilot among certain mining companies. Subsequently, in June 2019, the LNR Minister released a statement reiterating the Government of Ghana’s plans to locally refine 30 percent of the gold produced in the country. Discussions between the Ghana Chamber of Mines and the Government of Ghana’s economic management team in 2019 led to the Chamber agreeing to consider the proposal and for the parties to discuss detailed modalities to ensure that a move to locally refined gold does not become detrimental to the mining industry.

Local content and local participation policy

Mining companies must submit a detailed programme for the recruitment and training of Ghanaians with a view to achieving “localisation”, which is the replacement of expatriate personnel in a company’s Ghanaian operations by Ghanaian personnel. In addition, mining companies must give preference to Ghanaian products and personnel, to the maximum extent possible, consistent with safety, efficiency and economies. The Minerals and Mining (General) Regulations, 2012 (L.I. 2173) give further details on the localisation policy. On 15 October 2020, the Minerals and Mining (Local Content and Local Participation) Regulations, 2020 (L.I. 2431) were adopted in order to expand the scope of local content requirements in the mining industry. For example, there are restrictions on the number of expatriates that can be extractedemployed by mineral rights holders and mine support service providers in a bid to enhance the participation of Ghanaians in the mining industry.

AngloGold Ashanti’s rights and permits

Obuasi

The Obuasi mine originally held four contiguous mining leases, the Obuasi Mining Lease and the Binsere 1, 2 and 3 Mining Leases. The Obuasi Mining Lease was granted by the Government of Ghana on 5 March 1994, covering an area of approximately 338 km2 in the Amansie East and Adansi West districts of the Ashanti region, for a term of 30 years from certain sourcesthe date of the agreement. The Binsere Mining Leases were granted on 9 April 1998, covering an area of 140 km2, for a term of 30 years from the date of the agreement. All leases in respect of the Obuasi mine had been duly ratified in accordance with Ghanaian law. In March 2007, the Government of Ghana agreed to extend the term of the Obuasi Mining Lease for a further term of 30 years. The amended Obuasi Mining Lease was also ratified by Parliament on 23 October 2008. The Obuasi Mining Lease will expire in March 2054 and require, among other things, that wastewater fromthe Binsere Mining Leases in April 2028. The mining operations meet certain water quality criteria if dischargedleases are renewable. On 3 March 2016, the Minerals Commission approved AGA Ghana’s application to surrender approximately 273.54 km2 of the area to the environment. Water supply, qualityGovernment of Ghana, reducing the lease areas to 201.46 km2. The remaining parcel of land that will be subject to the mining lease is situated within various villages and usagetownships in the region but excludes the municipality of Obuasi. On 15 January 2021, the



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

Iduapriem

The Iduapriem mine operates under four different mining leases: the Iduapriem Mining Lease (LVB1539/89) (36.47 km2), the Ajopa Mining Lease (LVB/WR326/09) (46.12 km2), the Teberebie Mining Lease (LVB3722H/92) (28.53 km2) and the Ajopa South Mining Lease (LR#1109/1999) (28.10 km2). On 17 February 2020, the mining leases were extended for a further period of interest globally, but are particularly significant15 years and such leases will now expire in February 2035. All leases in respect of the Iduapriem mine have been duly ratified in accordance with Ghanaian law.


Guinea

General laws relating to mining

In Guinea, the mining industry is primarily regulated by Law L/2011/006/CNT dated 9 September 2011 as amended by Law L/2013/053/CNT dated 8 April 2013 and promulgated by Decree D/2013/075/PRG/SGG dated 17 April 2013 (together, the “Guinea Mining Code”).

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

In 2017, Decree D/2017/285/PRG/SGG was adopted, which sets forth the conditions for the constitution and management of the Local Development Fund (“Fodel”), as well as Joint Order A/2017/6326/MMG/MATD/SGG, which sets forth the conditions for the use, management and control of the Fodel. Together, these set forth the use of the mining companies’ financial contribution to the development of the local communities and the rules applying to the Fodel, which was created under the Guinea Mining Code. On 13 July 2018, a Joint Order A/2018/5212/MEF/MMG/MB/MATD/SGG was issued, which regulates the use, management and monitoring of the resources allocated to local authorities pursuant to article 165 of the Guinea Mining Code. In 2019, an inter-ministerial committee was created to supervise and control the Fodel through the adoption of Joint Order AC/2019/089/MMG/MATD/SGG setting out the conditions for the constitution, powers and management of said inter-ministerial committee. On 6 September 2019, Decree D/2019/263/PRG/SGG was issued, which sets forth local content requirements in Brazil, Ghanathe framework of the implementation of public and South Africa, and for explorationprivate projects in Colombia, where there is significant potential environmentalGuinea.

On 16 June 2020, a new procedure for the export of gold by mining companies was enacted through the adoption of Decree D/2020/113/PRG/SGG, which sets out, amongst other things: (i) when the industrial production tax referred to in article 161-1 of the Guinea Mining Code shall be paid, and social impact(ii) the process to be followed to export gold bullion.

On 27 April 2021, a Joint Order AC/2021/824/MMG/BCRG/SGG was issued establishing the fees and costs charged by the Guinean mining authorities and the Guinean Central Bank in connection with the administrative procedures for the export of gold by industrial and semi-industrial companies.

AngloGold Ashanti’s rights and permits

The group’s Guinean subsidiary, Société AngloGold Ashanti de Guinée S.A. (“SAG”), has title to the Siguiri mine in the form of a high levelmining concession, granted by virtue of stakeholder scrutiny. Any failurePresidential Decree D/97/171/PRG/SGG, dated 4 August 1997, for a period of 25 years (the “Mining Concession”). The Mining Concession covers exploration and mining for gold, silver, diamonds and associated ores, and was originally covered by a mining convention entered into with the Republic of Guinea in 1993 and amended in 2005. On 28 June 2016, SAG and the Government of Guinea concluded a revised and consolidated mining convention (convention de base révisée et consolidée) (the “Revised Mining Convention”) which encompasses a renewal of the term of the original mining convention and other amendments necessary to secure accesssupport an expansion project to suitable water supplies, or achieve and maintainextend the life of the Siguiri mine (the “Expansion”). In compliance with the requirementsprovisions of our permits or licenses, could result in curtailment or suspensionthe Guinea Mining Code, the Revised Mining Convention was ratified by the Guinean National Assembly (Law L/2016/N°067/AN dated 30 December 2016, promulgated by Decree D/2017/015/PRG/SGG dated 24 January 2017), submitted to the Guinean Supreme Court which rendered a favourable opinion (Judgement N°AC 005 dated 16 January 2017), and ratified by the President of the Republic of Guinea (Decree D/2017/021/PRG/SGG dated 24 January 2017), following which it replaced the original mining convention and became effective on 24 January 2017.


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Key elements of the affected operation. IncidentsRevised Mining Convention include the following:

•a duration of water pollution or shortage can, in extreme cases, lead25 years, expiring 23 January 2042, subject to community protestfurther renewal if mining operations continue;
•the term of the Mining Concession is aligned with the term of the Revised Mining Convention since the Republic of Guinea committed to maintain the Mining Concession for the entire duration of the Revised Mining Convention;
•SAG’s operations remain governed by the 1995 Guinea Mining Code (the prior mining code) and ultimately resultare only subject to the provisions of the Guinea Mining Code to the extent they are expressly set out in the withdrawalRevised Mining Convention;
•the stability of communitythe customs and government supporttax regime is guaranteed for the company’s operations.entire initial term of the Revised Mining Convention, and subject to certain conditions being met, any renewal period(s);

•the Republic of Guinea holds a 15 percent free-carried/non-contributory interest;
Where feasible, •the company operatesRepublic of Guinea is entitled to a “closed loop” systemroyalty on gold of 5 percent based on a spot gold price as per LBMA fixing (PM) up until the date of steady state commercial production of the first phase of the Expansion, after which recycles the water used in its operations without dischargingroyalty rate applicable to gold will vary depending on threshold prices as per LBMA fixing (PM), namely: 3 percent if the gold price is $1,300 or less, 5 percent, if above $1,300 and up to $2,000 and 7 percent if above $2,000;
•SAG benefits from 5-year income tax holiday from the beginning of steady state commercial production of the first phase of the Expansion, after which the income tax rate is set at 30 percent;
•a local development tax of 0.4 percent is payable on the sale price for gold and silver received by SAG up until 31 December 2027, after which it will be increased to 0.6 percent;
•salaries of expatriate employees are subject to a 10 percent income tax;
•goods imported into Guinea for purposes related to the environment. In someconstruction and commissioning of the first phase of the Expansion are exempt from all customs taxes and duties; and
•SAG is committed to adopting and progressively implementing a plan for the effective rehabilitation of the mining areas however, such as Ghanadisturbed or affected by its operations.

The Mining Concession covers an area divided into four blocks totaling approximately 1,495 km2. SAG has the exclusive right to explore and Brazil, high levelsmine in any part of rainfall and surface water runoff mean thatthe concession area for the duration of the Revised Mining Convention. The Revised Mining Convention also grants SAG the option to secure certain land rights over additional areas currently covered by exploration permits, but to which SAG may need access for purposes of establishing roads or storage of tailings. The Mining Concession is due to expire on 4 August 2022. On 1 February 2022, a closed loop system is not feasible and that discharges, after water treatment where necessary, must take place.

Waste Management

Mining and mineral processing operations generate waste rock and tailings.

During open-pit mining, large volumes of soil and/or rock (overburden) are 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 deposited as slurry in large storage facilities specifically designed for this purpose.

The impact of dust generation, breach, leak, or other failure of a waste rock or tailings storage facility (TSF), including any associated dam, can be significant, and the company therefore monitors such facilities closelyrenewal request was filed in accordance with the company’s internal standards, independent review, national regulatory requirementsprovisions of the Revised Mining Convention. Pursuant to the Revised Mining Convention, the Mining Concession can be renewed for one or more period(s) that cannot exceed 10 years each as long as the Revised Mining Convention is in force.

The Revised Mining Convention is subject to early termination if the parties formally and commitments madeexpressly agree to local communities. it, if the last of the mining title held by SAG expires or is relinquished without any renewal application having been filed, if all project activities are voluntarily suspended for a continuous period of 12 months or are permanently abandoned by SAG, or if SAG goes into voluntary liquidation or is placed into liquidation by a court of competent jurisdiction.


Mali

General laws relating to mining

The occasional well-publicised failuremining industry in Mali is primarily regulated by Ordinance No. 2019-022/P-RM dated 27 September 2019 containing the new mining code of the Republic of Mali (the “Mali Mining Code”) and Decree No. 2020-0177/PT-RM dated 12 November 2020 implementing the Mali Mining Code. On 8 December 2020, Decree No. 2020-0288/PM-RM enacted the new model mining convention referred to in Decree No. 2020-0177/PT-RM.

The Mali Mining Code applies to the mining operations previously carried out by AngloGold Ashanti entities in Mali (as further described below) except with respect to the validity, scope and duration of their exploitation permits and the provisions on tax and customs regime contained in their mining conventions (conventions d’établissement) for their remaining duration. In this regard, the transitory rules of the Mali Mining Code specify that mining conventions in force remain valid for their remaining term and their holders continue to benefit from the stability of the tax and customs regime set out therein.

Exploration and prospecting activities are carried out under exploration authorisations (autorisation d’exploration) or exploration permits (permis de recherche), which give their holder the exclusive right to carry out exploration activities over a given area. Exploration authorisations are granted by the Mining Administration (Administration chargée des Mines) for a non-renewable period of three months, while exploration permits are granted by Ministerial Order for a period of three years renewable twice for additional 3-year periods. Applications for exploration authorisations and exploration permits must contain various documents attesting to the financial and technical capacity of the applicant as well as a detailed works and costs programme.

A large scale permit exploitation permit (permis d’exploitation de grande mine) is required to mine a deposit located within the area of an exploration permit and grants the holder an exclusive right to exploit the named substances and proceed with the processing and commercialisation of the substances extracted within its perimeter. Large scale exploitation permits are granted by decree of the Head of Government for a maximum period of 12 years renewable for 10 year-periods until depletion of the deposits. An application must be submitted to the Mining Administration (Administration chargée des Mines) and must contain



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various documents attesting to the financial and technical capacity of the applicant, a feasibility study, a detailed environmental study in respect of the impact of the project on the environment, an environmental permit, a closure and rehabilitation plan as well as a community development plan. As soon as the large scale exploitation permit is granted, the permit holder must incorporate a company under the laws of Mali and assign the permit for free to this company. The State will have a 10 percent free-carried interest in the company. This interest will be converted into priority shares and the State’s participation will not be diluted in case of an increase in capital. In addition, the company is required to ensure that private Malian investors are offered the possibility to acquire 5 percent of their capital.

All mining titles mentioned above (save for the exploration authorisation) require a mining convention (convention d’établissement) to be signed by the State and the titleholder defining their rights and obligations, the duration of which is 20 years.

AngloGold Ashanti’s rights and permits

Historically, AngloGold Ashanti had interests in the Morila, Sadiola and Yatela gold mines, all of which were governed by mining conventions (conventions d’établissement) covering exploration, mining, treatment and marketing in a comprehensive document. These documents include general provisions regarding exploration (work programme, fiscal and customs framework) and exploitation (formation of a third-party tailings facilitylocal limited liability mining company, State interest, fiscal and customs framework governing construction and exploitation phases, exchange controls, marketing of the product, accounting regime, training programmes for local labour, protection of the environment, reclamation, safety, hygiene and dispute settlement). The Morila and Sadiola gold mines were sold in November and December 2020, respectively.

In April 2017, Société d’Exploitation des Mines d’Or de Yatela S.A. (“Yatela”), the company operating the Yatela gold mine, began the implementation of a closure plan in order to relinquish the property. In February 2019, AngloGold Ashanti and its joint venture partner IAMGOLD Corporation announced an agreement to sell each of their 40% interests in Yatela to the Government of Mali, which holds the remaining 20% interest. Completion of the transaction is subject to the fulfilment or waiver of a number of conditions precedent and has been delayed several times since 2019 due to political instability and related events in Mali as well as the COVID-19 pandemic. Yatela’s exploitation permit covers approximately 212 km2. Yatela has a 30-year permit which expires in 2030.


Tanzania

General laws relating to mining

Tanzania Mining Act and Tanzania Mining Regulations

Mineral rights in the United Republic of Tanzania are principally governed by the Mining Act, Chapter 123 (R.E. 2019), as amended (the “Tanzania Mining Act”) and the potential impactMining Regulations, 2010, as amended (the “Tanzania Mining Regulations”). The Tanzania Mining Act and the Tanzania Mining Regulations came into force in November 2010 followed by amendments to the Tanzania Mining Act in 2017 and subsequent amendments to the Tanzania Mining Regulations in 2018 and 2019. Those amendments, together with an Executive Order, introduced, among other matters, (i) the Tanzania Mining Commission; (ii) local content requirements for procurement of goods and services; and (iii) Mining Licence requirements of 5 percent of a licencee’s equity to be held by Tanzanians, with 80 percent of its managerial positions to be held by Tanzanians and 100 percent of other positions to be held by Tanzanians, in addition to the shareholding of the Government of Tanzania pursuant to Section 10 of the Tanzania Mining Act (i.e. free-carried interest).

Minimum shareholding and public offering

In 2016, the Mining (Minimum Shareholding and Public Offering) Regulations, 2016, as amended, was adopted. The regulations set out the requirement to sell shares to Tanzanian nationals, by way of a public offering and listing on the Dar es Salaam Stock Exchange, which will apply to companies that are carrying out large scale mining operations. The regulations also require all existing holders of a special mining licence to list a minimum of 30 percent of their shares on either the Main Investment Market or the Enterprise Growth Market Segment of the Dar es Salaam Stock Exchange within 6 months of the regulations coming into force, which was on 24 February 2017. However, the company believes the listing requirement conflicts with the mining development agreement. In September 2020, the Government of Tanzania published the Mining (Minimum Shareholding and Public Offering) (Amendment) Regulations, 2020, which exempts companies holding special mining licences from local listing requirements if such failure also meanmining company has entered into an agreement with the Government of Tanzania that these facilitiesprovides for a non-dilutable free-carried interest in such mining company and an economic benefits sharing arrangement.

Arbitration

Along with other major mining companies, AngloGold Ashanti’s subsidiaries are generally tightly regulated. An incident atseeking a constructive dialogue with the Government of Tanzania to gain assurances that the Geita gold mine will not be affected by recent legal and fiscal changes adopted by the Government in light of their mining development agreements which guarantee (i) fiscal and regulatory stability,



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and (ii) an agreement between all parties before material legal and regulatory changes are made. As a precautionary step to safeguard its interests, AngloGold Ashanti commenced international arbitration proceedings against the Government of Tanzania in connection with the enactment of this legislation in July 2017. Declaratory relief is sought in accordance with the terms of the company’s operations couldexisting mining development agreement to preserve its and its shareholders’ rights and interests in the Geita gold mine. AngloGold Ashanti is seeking confirmation from the Government of Tanzania that, as a result of its existing mining development agreement, the company does not fall within the scope of the new mining legislation that includes, among other things, (i) listing requirements; (ii) an increase in enforcement, obligationsthe rate of revenue royalties from 4 to remediate6 percent and a 1 percent clearance fee; and (iii) a right for the Government of Tanzania to (a) renegotiate existing mining agreements at its discretion, (b) receive a non-dilutable, free-carried interest of no less than 16 percent in all mining projects, and (c) acquire up to 50 percent of the shares of the mining company commensurate with the total tax expenditure incurred by the Government in favour of the mining company. AngloGold Ashanti can provide no assurance that the new mining legislation, including the listing requirements, will not apply to its operations in Tanzania and the outcome of the arbitration action may have a material adverse impact on the company’s results of operations and financial condition. See also “Item 8A: Legal Proceedings—Tanzania”.

Categories of mineral right licences

Ownership of and control over minerals on, in or under the land vest in the President of the United Republic of Tanzania. No person is allowed to prospect for minerals or carry on mining operations except pursuant to the authority of a mineral right licence granted, or deemed to have been granted, under the Tanzania Mining Act or its predecessor acts. To enable a company to prospect or mine, the Tanzania Ministry of Minerals (“MEM”) initially grants an exclusive prospecting licence. Upon presentation of a feasibility study, together with certain other environmental, contamination, negative press coverage,social and financial assurances, the MEM may then grant a form of licence for mining. Three categories of licences can be applied for under the Tanzania Mining Act: licences for exploration, licences for mining, and licences for ancillary activities. Licences for exploration include prospecting licences and gemstone prospecting licences. Licences for mining include special mining licences (if the proposed capital investment is equal to at least $100 million), mining licences (if the proposed capital investment is equal to between $100,000 and $100 million) and primary mining licences (reserved for Tanzanian citizens).

A prospecting licence grants the holder the exclusive right to prospect in the area covered by the licence for all minerals within the class of minerals applied for. An application for a prospecting licence is made to the Mining Commission and the licence, once granted, is valid for an initial term of four years. After the initial term, the licence is renewable for a further period of three years, with no option for renewal thereafter. Upon renewal, 50 percent of the area covered by the licence must be relinquished.

Mining is mainly carried out through either a mining licence or a special mining licence, both of which confer on the holder the exclusive right to conduct mining operations in or on the area covered by the licence. A special mining licence is granted for the shorter of either the estimated life of the ore body indicated in the feasibility study report or such period as the applicant may request. The holder of a special mining licence may apply for renewal of its licence at any time but no later than one year before the expiry of the licence and such renewal shall not be for a period exceeding the estimate life of the remaining ore body. Special mining licences have certain fiscal and other advantages over mining licences, as the holder of a special mining licence may enter into a mining development agreement with the Government of Tanzania to guarantee the fiscal stability of a long-term mining project and make special provision for the payment of royalties, taxes, fees and other fiscal imposts. A special mining licence holder may, in certain circumstances, unilaterally amend the programme of the mining operations agreed with the MEM.

Tax laws relating to mining

Currently, the main tax laws in Tanzania comprise the Finance Act, 2015 (No. 16), which came into force on 1 July 2015, and the Finance Act, 2017 (No. 4), which came into force on 1 July 2017. Both tax laws impose and revise certain taxes, duties, levies and fees. Among other provisions, inspection or clearance fees on the exportation or domestic use of minerals were introduced. Such exportation or domestic use is restricted unless such minerals have been inspected or cleared at the mining areas, ports, airports, border or posts and the clearing fee of 1 percent of the gross value of the minerals has been paid by the exporter or any other person in possession thereof. Local government levies and environmental management fees and charges apply as well.

Effective 20 July 2017, the Value Added Tax Act, 2014 (No. 5) (the “VAT Act”) was amended in order to restrict VAT relief for VAT input tax paid by mining companies on goods and services. Prior to the enactment of this amendment to the VAT Act, mining companies were entitled to 100% VAT relief in respect of the goods and services they purchased. The amendment prohibits refunds for VAT input tax incurred on a series of raw products, including the exportation of “raw minerals”. Subsequently, the Tanzania Revenue Authority (“TRA”) denied our applications for VAT input credit refunds, which amounted to a total of $142 million (after discounting provisions) as of 31 December 2021, covering the period from July 2017 onwards, on the basis that all of the gold doré that we export constitutes “raw minerals” for purposes of the VAT Act. In response, the company filed formal notices of objection with the TRA stating that the exportation of gold doré is, in its view, not covered by the restriction since doré does not fall within the category of “raw minerals” as used in the VAT Act. On 22 February 2019, the Tanzania Mining Act was amended to introduce a definition for “raw minerals” which supports our interpretation that gold doré is excluded from the prohibition. On 1 July 2020, the Finance Act, 2020 (No. 8), amended the VAT Act, without retrospective effect, in order to remove the restrictions on VAT input tax credits for the exportation of “raw minerals” as well as a series of other raw products. This recent amendment confirms the technical basis for VAT input tax recovery for mineral exporters from July 2020 onwards. VAT claims from July 2020 onwards are subject to verification procedures by the TRA before any refunds will be received. In 2021, the



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company was able to offset $54 million of verified VAT claims (from July 2020 onwards) against its corporate tax liability in Tanzania. Discussions with the TRA are ongoing to resolve our historical claims for property orVAT input credit refunds for the period from July 2017 to June 2020.

Natural resources, export and other rules

Natural resources legislation

In Tanzania, two laws in respect of natural resources damagescame into force in July 2017: the Natural Wealth and personal injuryResources Contracts (Review and Re-negotiation of Unconscionable Terms) Act, 2017 (No. 6) (the “Unconscionable Terms Act”) and the Natural Wealth and Resources (Permanent Sovereignty) Act, 2017 (No. 5) (the “Permanent Sovereignty Act” and together with the Unconscionable Terms Act, the “Natural Resources Laws”). Implementing regulations were published in January 2020. The Natural Resources Laws provide that Tanzania has sovereignty over its natural resources and that all arrangements or agreements that relate to “natural wealth and resources” are subject to review by adjacent communities. Incidents atthe National Assembly to ensure that they are in the interests of the people of Tanzania. During a review all unconscionable terms as interpreted in accordance with the law are expunged from the agreement. In addition, under the laws, disputes over natural wealth and resources will not be subject to any proceedings in any foreign court or tribunal. As a result, investors are restricted from accessing international dispute resolution mechanisms. Accordingly, companies are now required to adopt Tanzanian law and local dispute resolution in all mining agreements. As such, all disputes will be handles by Tanzanian judicial bodies or any other Tanzania government body vested with powers to resolve disputes. In addition, to ensure that the Government and the people of Tanzania obtain an equitable stake in the exploitation of mining companies’ operations could resultresources, all project earnings must be retained in governmental actionTanzanian banks. Investors are also prevented from freely exporting raw minerals and repatriating funds.

Section 6 of the Unconscionable Terms Act specifically provides that where there is an unconscionable term, the National Assembly may pass a resolution for re-negotiation of the agreement whereupon the Government shall serve notice to tighten regulatorythe investor to re-negotiate the term or agreement. The Government and the particular investor have 90 days from the notice date to re-negotiate the term or agreement. If both parties fail to revise the unconscionable term, the term will be deemed removed from the agreement. A term is considered “unconscionable” under the Unconscionable Terms Act if, among other grounds, the requirements or provisions of the agreement restrict the right of the state to exercise authority over foreign investment within the country and restrictin accordance with the laws of Tanzania, are inequitable and onerous to the state, secure preferential treatment designed to create a separate legal regime to be applied discriminatorily for the benefit of a particular investor, deprive the people of Tanzania of the economic benefits derived from subjecting natural wealth and resources to beneficiation in the country, or subject the state to the jurisdiction of foreign laws and foreign courts or tribunals.

Local participation policy

On 15 September 2015, the Non-Citizens (Employment Regulation) Act, 2015 (No. 1) (the “Non-Citizens Act”) came into force which vests powers concerning work permits with the Labour Commissioner. Therefore, non-citizens wishing to be employed in the country are required to apply and be granted a work permit before applying for a residence permit. Before granting the work permit, the Labour Commissioner must be satisfied that all efforts have been explored to acquire a local expert. Further, the company is required to submit a succession plan which sets out a well-articulated plan for the transfer of the non-citizen’s knowledge and expertise to Tanzanian citizens. Moreover, the Commissioner General of Immigration is required to take into consideration conditions of the work permit issued by the Labour Commissioner when granting a residence permit.

AngloGold Ashanti’s rights and permits

The Geita gold mine is located in the Lake Victoria goldfields of the Mwanza region of Tanzania. AngloGold Ashanti has concluded a mining development agreement with the Ministry of Minerals on 24 June 1999 and was issued a special mining licence (SML45/99) covering approximately 196 km2 for a period of 25 years, which expires on 26 August 2024. On 9 October 2014, an addendum to the mining development agreement was entered into ratifying, among other matters, an increase in the royalty rate from 3 percent to 4 percent with effect from 1 May 2012. In March 2020, Geita Gold Mining Limited received the consent of the Minister of Minerals to change the mining method under its special mining licence from open pit to underground method, subject to the requisite terms and conditions. Within the special mining licence area, there are also seven primary mining licences of approximately 0.63 km2 in total which belong to third parties. Furthermore, Geita Gold Mining Limited holds prospecting licences covering (i) an area of 120 km2 in the immediate vicinity of its special mining licence area, and (ii) an area of 690 km2 located in the Dodoma, Singida and Shinyanga regions, but none of these areas contain any Mineral Reserve. All licenses are in good standing.


AUSTRALIA

General laws relating to mining

In Australia, with a few exceptions, all onshore minerals are owned by the Crown. The respective Minister for each state and territory is responsible for administering the relevant mining legislation enacted by the states and territories.



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Native title legislation applies to certain mining activities,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 TSFs, alsominerals on the property.

It is possible for an individual or entity to own an area of land (including for infrastructure purposes) and for another individual or entity to be granted the right to explore for or mine any minerals located on or under the surface of the same area. The maximum initial term of a mining lease in Western Australia is 21 years and the holder has the right to renew the lease for an additional 21 years. Subsequent renewals are granted at the discretion of the respective state or territory’s minister responsible for mining rights. In Western Australia, mining leases can only be assigned with the prior written consent of the minister.

Tax laws relating to mining

Government royalties are payable by the holder of mining tenure in respect of minerals obtained from the relevant area of land at the rates specified in the relevant legislation in each state or territory. The royalty on gold production in Western Australia is payable quarterly at a fixed rate of 2.5 percent of the royalty value of gold metal produced. The royalty value is calculated by multiplying the amount of gold produced during a given month by the average gold spot price for that month. In addition, the holder of a mining tenement is required to pay annual rent in respect of the tenement. In Western Australia there is a minimum annual expenditure requirement for prospecting and exploration licences and mining leases. Exemptions from the expenditure requirement can be obtained if certain conditions are satisfied.

Environmental laws relating to mining

Mining tenements will be granted with endorsements and conditions relating to protection of the environment. Exploration and mining operations may also require separate approval from the state, territory or federal environment minister, which may require completion of an environmental impact assessment (including a public consultation period) pursuant to applicable environmental protection legislation prior to commencement. Further, a works 'construction' approval and an operating licence under the relevant environmental protection legislation in the state or territory may also be required for certain mine processing or mining-related operations. Depending on the jurisdiction, additional approvals may be required for the removal of native vegetation within the tenement, and the taking and use of water for exploration and mining operations.

AngloGold Ashanti’s rights and permits

AngloGold Ashanti has been granted 21-year term mining leases with rights of renewal to all of its mining areas in Australia, including its proportionate share of joint venture operations and accordingly it has, together with its joint venture partners where applicable, the exclusive right to mine in those areas. Both the group and its joint venture partners are fully authorised to conduct operations in accordance with relevant laws and regulations. The mining leases and rights of renewal cover the current life-of-mine at AngloGold Ashanti’s operations in Australia.

At Sunrise Dam, one mining lease (M39/1116) covers the deposit and mine infrastructure (approximately 7,808 hectares) and another mining lease (M39/1117) covers the water extraction infrastructure used to supply the operation with water (approximately 1,768 hectares). Both leases are currently in good standing, with expiry dates in 2038.




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The Butcher Well joint venture has security of tenure for all current exploration licences and for the contiguous mining leases that covers its Mineral Resource. There are three mining leases: mining lease (M39/165) which covers 602.35 hectares with expiry date in 2030, mining lease (M39/166) which covers 990 hectares with expiry date in 2030 and mining lease (M39/230) which covers 446.4 hectares with expiry date in 2032.

At Tropicana, the deposit is situated upon a single mining lease (M39/1096) covering approximately 27,228 hectares, which is currently in good standing, with an expiry date in 2036.

AngloGold Ashanti Australia Limited is also conducting early stage exploration activities in Queensland under the Mineral Resources Act 1989 (QLD). AngloGold Ashanti holds 11 exploration permits covering 215,300 hectares. Each permit is granted with an initial term of five years, renewable for two further periods of not more than five years each.


AMERICAS

Argentina

General laws relating to mining and land ownership

Mining regime

The Argentinean Mining Code governs mining activity in the country. Special regimes exist for hydrocarbons and nuclear minerals. In the case of most minerals, the Argentinean Mining Code establishes that the owner of the land is not the owner of the mineral rights; these are held by the national or provincial governments (depending on the location of the minerals). The national or provincial government, as applicable, is required by the Argentinean Mining Code to grant whomever discovers a new mine title to the mining concession.

The Argentinean Mining Code regulates exploration permits as well as mining concessions, or exploitation rights. Exploration permits grant their holders exclusivity rights to any mineral discoveries, including those made by a third party within the exploration area covered by the permit. Exploration permits are limited in time and as to the extent of the exploration area, are subject to the payment of a single-time fee, and also require a minimum exploration work programme and schedule to keep the permit in force. Priority for receiving a mining concession is given to the registered discoverer of the mine, which holds the exploration permit. Once the application for a mine has been submitted, the applicant may commence works and must submit a legal survey of the units requested for the new mine. The application and the legal survey may be opposed by third parties following specific proceedings set forth in the Argentinean Mining Code. Approval and registration of the legal survey by the provincial mining authority constitutes formal title to the mining concession.

Holders of mining concessions must comply with three main conditions: payment of an annual fee, investment of a minimum amount of capital, and the carrying out of a reasonable level of exploitation. Failure to do so could lead to forfeiture of the mining concession, which would then revert back to the Province.

In addition to the Argentinean Mining Code, between 1993 and 1995, Argentina implemented several federal laws to offer foreign companies attractive incentives for exploration and mining in Argentina, the Mining Investment Law (Law No. 24, 196), as amended (the “Mining Investment Law”), and related legal provisions being the most important one. Such incentives include, among other mine operatorsmatters, 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, region.together with glacial areas, must be surveyed by an existing national government agency specifically appointed to this end every five years. The area where the Cerro Vanguardia project is located does not include any glaciers or peri-glacial areas according to the inventory of glaciers which was published in June 2018.

Rural Land Law

On 27 December 2011, the Argentinean National Congress passed a law on the Regime for Protection of National Domain over Ownership, Possession or Tenure of Rural Land (Law No. 26, 737) (the “Rural Land Law”) which implemented a set of rules restricting the ownership of rural land by foreigners (including foreign individuals or any kind of legal entity controlled by foreign individuals or legal entities). The main restrictions are as follows: (i) foreigners cannot own in the aggregate more than



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15 percent of the entire rural land of Argentina, the same cap being applicable to each Province and Municipality; (ii) foreigners will not be allowed to purchase more than 1,000 hectares in the so-called “zona núcleo”, which comprises the main agricultural areas of central Argentina or an “equivalent” surface depending on the location of the land and its productive potential; and (iii) foreigners will not be allowed to buy land that contains, or is adjacent to, relevant and permanent water bodies (such as rivers and lakes). Although exploration permits and mining concessions are not the subject matter of the restrictions placed by the Rural Land Law, certain rights granted to foreign mining companies under the Argentinean Mining Code may be restricted by this new law. For example, followingthe right that holders of mining concessions currently have to force the surface owner to sell the land to the holder of the mining concession might be restricted if the concession holder is a foreign individual or a legal entity controlled by foreigners.

Federal Mining Agreement

On 13 June 2017, the national government and the provinces in whose territories the main mining projects of Argentina are located, signed the New Federal Mining Agreement (“FMA”). The purpose of the FMA is, amongst other things, to increase provincial revenues from the mining industry by creating legal entities owned by provincial governments that would work in association with private mining companies. This scheme is not new in Argentina and it has been used by some provincial governments, amongst them the Santa Cruz Province (through Fomicruz), in which the Cerro Vanguardia project is located. The FMA also contemplates other forms of revenues such as the formation of special trusts to be funded by mining companies to finance education, health and other programmes. Additionally, the FMA included setting forth mining royalties up to three percent of the gross value of commercialised minerals, without any deductions other than VAT. As the FMA has not yet been converted into law by the National Congress, its provisions are neither binding nor enforceable.

In Argentina, the current regulatory regime of royalty payments is expected to change and several different options and payment thresholds have been discussed. In December 2012, the Santa Cruz Province changed the mining royalty from one percent to three percent calculated at pit-head value of the mineral extracted thus bringing it to the cap of the Mining Investment Law.

Foreign exchange and export rules

Foreign exchange controls

On 1 September 2019, by means of Executive Decree No. 609/2019 (the “Export Controls Decree”), the Argentinean national government reinstated foreign exchange and export controls. The Export Controls Decree and related regulations of the Central Bank of Argentina impose, among other measures, the obligation of Argentinean residents to transfer to Argentina and/or sell for Argentinean pesos in the Argentinean foreign exchange market (mercado de cambios) the countervalue (contravalor) from their exports of goods within a specified period. The export of goods is regulated by Communication “A” 6882 of the Argentinean Central Bank (as modified) which establishes the specific regulatory requirements to implement the measures adopted by the national government in this area. Prior approval of the Argentinean Central Bank is generally required to access the foreign exchange market for transactions relating to the outflow of funds, except in certain circumstances. Until 30 June 2022, prior approval from the Argentinean Central Bank is not required for payments in connection with the import of goods if certain conditions are satisfied.

CVSA had a cash balance equivalent to $139 million at 31 December 2021. During 2021, AngloGold Ashanti received offshore dividends in a total amount of $19 million (net of withholding taxes) paid in US dollars. Out of the $139 million (equivalent) cash balance, monies equivalent to $131 million are available to be paid to AngloGold Ashanti’s offshore and onshore investment holding companies in the form of declared dividends. Applications have been made to the Argentinean Central Bank to approve the purchase of US dollars in order to distribute an offshore dividend of $114 million to AngloGold Ashanti. While the approval is pending, the cash remains fully available for CVSA’s operational requirements.

Export duties

On 21 December 2019, the National Law on Social Solidarity and Productive Reactivation (Law No. 27, 541) (the “Solidarity Law”) was enacted. The Solidarity Law granted the national government power until 31 December 2021 to impose export duties which may not exceed certain caps. For example, the Solidarity Law provides that export duties on mining exports cannot exceed 8 percent of the taxable value or official FOB price. On 2 October 2020, the national government published Decree No. 785/2020 (the “Export Duties Decree”) which sets an export duty rate of 8 percent for certain goods, including doré bars and gold alloys, and revoked the provisions of Decree No. 793/2018 which had previously set the export duty at 12 percent ad valorem. While the Export Duties Decree was set to expire at the end of 2021, on 31 December 2021, the national government published Decree No. 908/2021, extending the deadline of export duties on certain goods, including doré bars and gold alloys, until 31 December 2023. It is uncertain whether the national government is empowered to extend such deadline beyond the date set forth in the Solidarity Law. These export duties, if not compensated with other tax reductions, affect the tax stability guarantee granted to CVSA in 1996 in light of the fact that at the time export duties were zero percent.

On 26 February 2019, the Argentinean tax and mining authorities published a resolution (RC 4428/2019) establishing an administrative procedure to be followed to obtain the reimbursement or compensation of federal taxes paid in excess of the total tax burden provided for by the applicable tax stability guarantee. CVSA initiated this new procedure to claim compensation for



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the export duties it paid in 2018 and 2019 as export duties are not contemplated by its tax stability guarantee. Prior to the publication of RC 4428/2019, CVSA had already submitted to the tax authorities claims for reimbursement of the export duties it paid from 2008 to 2015.

Pursuant to the new administrative procedure, the National Mining Secretariat issued favorable opinions regarding CVSA’s claims in respect of fiscal years 2018 and 2019, which amounted to approximately $3.5 million and $10.8 million, respectively, as of 31 December 2021. These claims are currently under review by the relevant customs authorities. On 14 July 2021, CVSA submitted its claim in respect of fiscal year 2020, which amounted to approximately $21.4 million as of 31 December 2021. The National Mining Secretary has not yet issued an opinion regarding this claim. CVSA expects to submit its claim in respect of fiscal year 2021 in due course.

Furthermore, CVSA has requested the tax authorities to apply the procedure provided for in RC 4428/2019 in respect of its historical claims for fiscal years 2008 to 2015 during which the imposition of export duties also exceeded CVSA’s total tax burden under its tax stability guarantee. However, these claims, which amounted to approximately $5.3 million as of 31 December 2021, are still being reviewed under the rules to challenge export duties instead of the new procedure provided for in RC 4428/2019. CVSA has appealed the application of those rules and a decision on this issue is pending.

In total, AngloGold Ashanti’s net export duty receivables (after discounting provisions) in Argentina amounted to $19 million as of 31 December 2021.

Environmental laws relating to mining

Any mining company wishing to commence or modify any mining-related activity, as defined by the Argentinean Mining Code, including prospecting, exploration, exploitation, development, preparation, extraction, and storage of mineral substances, as well as property abandonment or mine closure activity, is required to prepare and submit to the competent provincial environmental authority an Environmental Impact Assessment (“EIA”) prior to commencing the work. Each EIA is required to describe the nature of the proposed work, its potential risk to the environment, and the measures that will be taken to mitigate that risk. If accepted by the competent authority, the EIA is used as the basis to create a Declaration of Environmental Impact (“DEI”) to which the mining company is required to adhere during the mining-related activity at issue. The DEI is required to be updated at least on a biannual basis. Sanctions and penalties for non-compliance with the DEI are outlined in the Environmental Protection section of the Argentinean Mining Code, and may include warnings, fines, suspension of quality certifications, restoration of the environment, temporary or permanent closure of activities, and withdrawal of authorisation to conduct mining-related activities.

AngloGold Ashanti’s rights and permits

The mining concession holder of Cerro Vanguardia, the company’s operation in Argentina, is AngloGold Ashanti’s partner, Fomento Minero de Santa Cruz S.E. (“Fomicruz”), which is wholly owned by the Santa Cruz Province. On 27 December 1996, Fomicruz entered into a usufruct agreement whereby CVSA was granted an irrevocable right to exploit the Cerro Vanguardia deposit (encompassing an area of approximately 543 km2) for a 40-year period. The mining licence (402642/CV/97), which covers the full Mineral Reserve, expires on 26 December 2036. CVSA is a corporation incorporated in Argentina indirectly controlled by AngloGold Ashanti (92.5 percent), with Fomicruz as minority shareholder (7.5 percent). On 14 August 1996, CVSA obtained its tax, customs and foreign exchange stability certificate, which expires in 2026.

Brazil

General laws relating to mining and land ownership

The Brazilian Constitution of 1934 states that, for purposes of exploration and exploitation, deposits and other Mineral Resources constitute property separate from the soil and belong to the Federal Union. Exploration and exploitation of such Mineral Resources may take place only with the Federal Union’s concession and in such a way as to protect the national interest. Federal law sets out penal and administrative sanctions for conduct and activities deemed harmful to the environment.

In Brazil, the National Mining Agency (“ANM”) is the state body within the Mines and Energy Ministry (“MME”) that is responsible for: (i) the registration of mining titles, (ii) the grant of authorisations and concessions, (iii) the supervision of mining activities and mining titleholders, and (iv) the issuance of supplementary rules in relation to mining activity.

Under the current Brazilian Mining Code, there are two kinds of mines: (i) claimstake mines (minas manifestadas), for which rights were acquired before 1934 and exist independently of any mining licence or authorisation from the Federal Government and for which the Mineral Resources constitute property of the landowner, and (ii) granted mines, which are those that rely on grants from the Federal Government for mineral exploration or exploitation (pursuant to the Brazilian Constitution of 1988). AngloGold Ashanti’s operations in Brazil consist of both claimstake mines and granted mines.

Mining activities in granted mines must be performed in two defined stages: (i) exploration, which entails defining and evaluating the deposit and determining the feasibility of exploitation, and (ii) exploitation, which involves coordinating operations aimed at the industrial exploitation of the mineral deposit, from the extraction of useful minerals to their processing. Exploration



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authorisations issued by ANM are valid for one to three years. Extensions can be obtained if necessary, as long as it is justified. In contrast, exploitation rights, once granted, are valid for the lifetime of the deposit, provided the mining titleholder complies with all legal requirements. Pursuant to these requirements, for example, titleholders must (i) start work on mineral exploitation within six months from the date of publication of the Exploitation Concession, (ii) continue their mining activities until the mineral deposit has been exhausted, in accordance with the Economic Exploitation Plan (Plano de Aproveitamento Econômico) approved by ANM, and (iii) refrain from suspending mining activities without prior notice to ANM.

Tax laws relating to mining

During the exploration period, the mining titleholder has to pay an Annual Rate per Hectare (Taxa Annual por Hectare or “TAH”), subject to a maximum value set by law. In the exploitation period, regardless of the legal regime governing the project (whether claimstake or granted mines), the mining titleholder has to pay the Financial Compensation for Exploiting Mineral Resources (Compensação Financeira pela Exploração Mineral or “CFEM”). The CFEM which is 1.5 percent for gold is currently calculated based on revenues.

At the end of 2011 and the beginning of 2012, the states of Minas Gerais, Pará, Amapá and Mato Grosso do Sul each created a new “inspection and control” tax (duty) on extraction and exploration activities as well as on the use of Mineral Resource carried out in those states. In the state of Minas Gerais, gold ore and silver ore are exempted from the collection of this new duty. At the end of 2020, the state of Goiás created a new “inspection and control” tax (duty) on extraction and exploration activities carried out in this state, which currently still needs to be implemented. The constitutionality of these “inspection and control” taxes has been challenged by the National Industry Confederation and the matter is currently pending before the Supreme Court of Brazil.

Environmental laws relating to mining

Following the catastrophic failure of a TSFtailings storage facility (“TSF”) at anthe 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 intoexecutive, legislative and judiciary bodies, both at the mine’s administrative areafederal and partstate levels, have generally increased scrutiny of the local community, reportedly resulting in deaths and injuries to hundreds of people. As a result of this incident, there has been considerably increased regulatory scrutinymining operations in Brazil, and other areas on mining operations generally,of TSFs in particular, and the requirementshave been considering, and in some cases have adopted, stricter laws and regulations applicable to the approval, licensing, construction, management, closure and decommissioning of TSFs have generally become far more stringent. In particular, in Brazil, newBrazil.

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 design method have been prohibitedor by any method declared as “unknown”. Among other things, ANM Resolution No. 13/19 prohibits the Brazilian National Mining Agency (ANM)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 decommissioningdisposal 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 all existing upstream TSFs has been ordered. As a result, we will be required to reinforce, and decommission by February 2022,ANM Resolution No. 13/19, the TSF at our Serra Grande mine, locatedtailings dam in the state of Goiás.s must be decommissioned by 15 September 2025. The incremental costs forSerra Grande mine completed the process of reinforcing the dam walls of this facility and, ultimately, for decommissioning and closingits 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 new legislation, are likely to be material. We will also be required to reinforce or decommission all TSFs in Brazil constructedthe 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 design method by 2025. Moreover, a bill currently pending(or “centerline”) TSFs, Federal Law No. 14.066/20 requires companies, to the extent that communities are located in the National Congressself-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 would requirehave 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 materials to be removed frommaterial in connection with the TSFdecommissioning of TSFs (a process known as “decharacterization”“decharacterisation” or “descaracterização”) in connection with closure and decommissioning. If passed,.






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At the additional costs associated with decharacterization are likely to be material to AngloGold Ashanti. Finally,state level, the suspension of environmental licensing permit processes for TSFsstate legislator in the state of Minas Gerais has delayed approval processesadopted Law No. 23.291/19 in February 2019 which contained the state’s policy on TSF safety and should be implemented in conjunction with respect to our operating permits,the equivalent federal policy. Among other things, Law No. 23.291/19 determines the criteria for licensing and may compromise our production plans in respectinspecting TSF structures, prohibits TSFs constructed or heightened using the upstream method, establishes bond requirements and holds management liable for non-compliance with its provisions. The government of our Minas Gerais operations. Furtheradopted several decrees in furtherance of this legislation.

On 16 February 2022, the ANM issued Resolution No. 95/22, which was rectified on 18 February 2022 and more substantialbecame effective on 22 February 2022. ANM Resolution No. 95/22 effectively consolidates prior federal resolutions on TSFs, including ANM Resolution No. 13/19 and establishes new criteria for the operational management of TSF structures, changes the criteria related to the risk classification of TSF structures and emergency levels and imposes deadlines for compliance with obligations, in addition to setting new criteria for suspension, embargo and interdiction of TSF activities.

Further amendments to the regulatory requirements in Brazil governing such TSFs and related dams may be adopted in 2022.

AngloGold Ashanti’s rights and permits

At AGA Mineraçao, Cuiabá has a single mining concession (No. 000.323/1973) covering a total area of 3,662 hectares. In February 2022, two additional mining concessions for Cuiabá (Nos. 830.937/1979 and 831.027/1980) were published, which cover an additional area of 816.2 hectares. Lamego has a single mining concession (No. 932.710/2017) covering a total area of 1,622 hectares. Córrego do Sítio is hosted by five geographically contiguous mining concessions (i.e., Nos. 930.556/2000, 930.181/2008, 830.129/1982, 833.472/2003 and 830.943/1979) covering a total area of 6,017 hectares.

At Serra Grande, the company has interests in or agreements over 25,719.94 hectares in the Crixás greenstone belt, representing approximately 87 percent of the relevant tenements that correspond to all current exploration and mining activities. These have been held since 1987. The mining concessions include mining concession No. 002.286/1935 covering an area of 4,206.88 hectares, mining concession No. 960.658/1987 covering an area of 1,946.89 hectares, mining concession No. 860.746/2005 covering an area of 88.28 hectares, mining concession No. 862.103/1994 covering an area of 125.41 hectares and mining concession No. 804.366/1975 covering an area of 196.05 hectares.

All of the company’s mining concessions in Brazil are anticipatedcurrently active, in 2020. See “Item 4B: Business Overview-The Regulatorygood legal and operational standing, and free of liabilities and/or major obligations. Brazilian mining concessions remain valid up to the depletion of the Mineral Reserve and Mineral Resource pursuant to the Economic Exploitation Plan approved by the ANM and in accordance with the required environmental permits, and as a result do not have an explicit expiry date.


Colombia

General laws relating to mining and land ownership

General regime

The Colombian Constitution declares that the sub-soil and the non-renewable natural resources located within the Colombian territory are the property of the Colombian State. The underlying principle of Colombian mining legislation for the granting of mining concession contracts over free areas is first in time, first in law. Mining activities are regulated by the Colombian Mining Code, Act 685, 2001.

The filing of an exploration and exploitation proposal triggers a right of preference to obtain rights over the targeted area, provided it is available. Such area cannot exceed 10,000 hectares. Upon receipt of a proposal, the relevant government agency determines whether another proposal or contract already governs the area. If there are no pre-existing claims, the government agency grants the applicant a “free area”.

With respect to land ownership, a mining concession in Colombia does not grant the rights over the surface required to develop a mining project. Therefore, in order to develop a mining project, it is required to acquire and secure access to the land (soil). This can be achieved in several ways, such as (i) purchase of the land, (ii) a transit easement, (iii) a mining easement, and (iv) the special acquisition process or expropriation.

Concession contract

As the sub-soil and the non-renewable natural resources located within the Colombian territory are property of the Colombian State, the Colombian Mining Authority (Agencia Nacional de Minería) grants the authorisation to explore and exploit minerals through a concession contract.

Such concessions allow concessionaires to conduct the studies, works and facilities necessary to establish the existence of minerals and to organise their exploitation. Upon being awarded a mining concession, a company must take out an insurance policy to cover the costs associated with potential environmental damage as well as breaches of its mining obligations. It may



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then proceed with exploration activities. Once the exploration phase is complete, the concessionaire files a new plan regarding proposed works and facilities. With the award of the mining concession or tenement contract, there are specified timelines for the completion of the various phases of a mining project, e.g. exploration, construction, exploitation. The company must comply with these timelines unless performance is suspended, for example, due to force majeure or extensions or modifications to the timelines. A grant of force majeure is for one year and must be renewed on an annual basis. If the company does not comply with the specified timelines for the completion of the various phases of a mining project, the mining authority may revoke the company's concession contracts or mining licences. As a general matter, any company that wishes to obtain a renewal of its concession contract must be up to date in all its legal and contractual obligations and must present a new plan of works and facilities to be implemented after the contract is renewed.

PINES programme

In 2013, the national government instituted the PINES programme designed to aid promoting certain projects that are deemed to have a national interest. This designation provides for greater oversight from the national government. All of our three advanced exploration projects (La Colosa, Quebradona and Gramalote) were considered of national strategic interest. Currently, Quebradona and Gramalote remain in the PINES programme, but La Colosa was temporarily removed as such (until the force majeure is over).

Tax laws relating to mining

From the moment the concession contract is registered with the Mining Register, the concessionaire has several financial obligations, including the payment of (i) a surface fee during the exploration, construction and assembly stage and (ii) royalties.

Once exploration is complete and the mining infrastructure in place, the concessionaire must begin paying royalties to the Colombian government, consisting of a percentage of the primary product and sub-products being exploited. The percentage of the royalty depends on the regulation in force when the concession contract is registered. In the case of the Quebradona project, the deposit mainly consists of copper followed by gold and silver. There is a 5 percent royalty for copper on the production value at the mine’s or well’s edge (i.e. when extracted from the subsoil). In case of gold and silver, a royalty of 4 percent on the production valued at the mine’s or well’s edge (i.e. when extracted from the subsoil) was established.

Furthermore, Colombian law establishes that once the environmental licence is granted the concessionaire must invest 1 percent of the project’s value to benefit the basins covered by the environmental licence.

Environmental laws relating to mining

In order to obtain an authorisation to carry out a mining project, a company must prepare an Environmental Impact Study (“EIA”) for approval by the National Environmental Licensing Authority of Colombia (Autoridad Nacional de Licencias Ambientales or “ANLA”). Global environmental licences are granted for the entire life of the project and cover all phases: construction, assembly, operation, maintenance, dismantling, final restoration, abandonment and/or termination. Construction and assembly permits (Plan de Trabajos y Obras or “PTO”) are granted by the mining authority with jurisdiction over the project.

In Colombia, the mining authority has the discretion to declare the underlying concession void if the specific company which holds the concession breaches applicable environmental laws or regulations. If the mining authority were to exercise such discretion, a company whose concession was voided would be required to abandon its projects and all of its other existing mining concession contracts. Pending proposals for new mining concession contracts would also be cancelled and the company would be banned from doing business with the Colombian government for a period of five years. As a result, the company would be unable to conduct any mining exploration or development activities during such period. However, this would not affect other subsidiaries of the company operating in Colombia, if those concession contracts are held singularly or in concert with joint venture partners.

Mining activity is prohibited in national parks, regional parks, protected forest reserves, paramos (included in Act 1753, introduced in 2015) and wetlands, pursuant to the Ramsar Convention on Wetlands of International Importance.Some forest reserves are not “protected” but are set aside for active forestry purposes and the concessionaire must obtain a specific permit to partially and temporarily change the use of the soil before pursuing exploration activities. In addition, Resolution 187/2016, passed by the national government in late 2016, identifies areas that the Ministry of the Environment Enablinghas determined to be “paramos” areas, or paramos transition areas. In these areas there are limitations on industrial or commercial work being performed, including mining. The regulation also specifies a process to determine what work, if any, can be performed in a paramos-designated area.

AngloGold Ashanti’s rights and permits

The La Colosa project managed by AngloGold Ashanti Colombia S.A.S. (“AGA Colombia”) remains in force majeure due to Mine”.delays in granting environmental permits by national and local environmental authorities, thereby preventing AGA Colombia from undertaking further exploration activities. The current one-year grant of force majeure, during which time the specified timelines for completing the various phases of the mining project under the concession contract are suspended, will expire on


Groundwater Impacts

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22 June 2022. AGA Colombia applied for a mining area integration (consolidation) of its concession contracts related to La Colosa, in respect of which AGA Colombia was not in compliance with some of the specified timelines. The application for mining area integration (consolidation) was approved in March 2017, which remedied the non-compliance of each consolidated concession and Environmental Remediationreset the specified timelines. La Colosa now has a single integrated mining concession contract (EIG-163) which covers a total area of 9,210 hectares and expires on 28 February 2037.


Minera de Cobre Quebradona S.A.S. B.I.C. (“MCQ”) which manages the Quebradona project, obtained the integration of concession agreement 5881 in October 2016 and registered in December 2016. As a result, MCQ was granted the exclusive right to explore, take ownership and dispose of the mineral reserves (ore) extracted from the concession area. MCQ has the right to request an extension of up to 30 years, at least two years before the expiration of the operating period. This extension is not automatic, and the request must be filed with new technical, economic, environmental and social studies that demonstrate the status of the mineral resources. Concession contract 5881 initially covered a total area of 7,593 hectares, which was reduced to 4,881.89 hectares by the relevant mining authority (Secretaría de Minas de Antioquia) on 4 March 2022. It will expire in May 2037 and is currently in its sixth year of the integrated exploration phase. In September 2021, the permits for the construction and mining operation were approved by the relevant mining authority (Secretaría de Minas de Antioquia). On 4 November 2021, ANLA officially notified AngloGold Ashanti of its decision to ‘archive’ the environmental licence application relating to the Quebradona project. ANLA has identified groundwater contamination plumes atneither denied nor granted the licence, but deemed that the information provided by AngloGold Ashanti is not enough for this authority to take a substantive decision. On 18 November 2021, AngloGold Ashanti appealed the archiving decision in order to secure further details on the specific additional information ANLA requires to make a determination.

The Gramalote project is organised as a joint operation between AngloGold Ashanti (through AGA Colombia Holdings Limited and AngloGold Ashanti Holdings plc) and B2Gold (through B2Gold Corp. and Graminvest Ventures Limited). Gramalote Limited, a company incorporated under the laws of British Virgin Islands which is the legal vehicle operating the joint operation, established a Colombian branch, Gramalote Colombia Limited (“GCL”), to carry out activities in Colombia and obtain the mining concession contracts necessary to develop the Gramalote project. The Gramalote joint operation has been operated by B2Gold since January 2020. Pursuant to an integrated mining concession contract No. 14292, GCL was granted the exclusive right to explore, take ownership and dispose of the mineral reserves (ore) extracted from the concession area (which covers a total area of 8,720.71 hectares and includes the Gramalote and Monjas anomalies) until April 2043. GCL has the right to request an extension of the operating period for up to 20 years, and, if exercised, such request to extend must include new technical, economic, environmental and social studies that demonstrate the status of the mineral resources. Currently, concession contract No. 14292 is in the phase of construction and assembly, pending resettlement of communities and the formal start of construction activities. GCL has received an environmental licence granted by ANLA and permits for the construction and mining operation which were approved by the relevant mining authority (Secretaría de Minas de Antioquia). GCL also holds an exploration concession No. 4894 (which covers a total area of 2,279.32 hectares and includes the Trinidad anomaly) which expires in 2044.

United States of America

Nevada

Mineral and surface rights in the United States are owned by private parties, state governments or the federal government. The majority of land utilised for precious metals exploration, development and mining in the western United States is owned by the federal government. The right to mine on such federal land in western states is governed by the U.S. General Mining Law of 1872, as amended (the “General Mining Law”). The General Mining Law allows mining claims (for mining and mining-related activities) on certain federal lands after proper compliance with claim location and maintenance requirements.

Mineral exploration activities in Nevada are also generally subject to applicable federal, state, and local permitting requirements, but the specific regulatory authorisations required for the company’s activities are based on the nature and location of the exploratory work. Many of the company’s Nevada operations are currently conducted under what is generally referred to under federal law as a notice-level operation subject to 43 CFR § 3809.21, while projects that are more advanced require additional permitting, including a Plan of Operations approved by the federal Bureau of Land Management (“BLM”). The State of Nevada Division of Environmental Protection’s Bureau of Mining Regulation and Reclamation (“BMRR”) also regulates mining within the state of Nevada. However, exploration projects of 5 acres or less, the scope of a notice-level operation under federal law, are exempt from BMRR regulation. Certain of the company’s early-stage exploration activities fall within this exemption.

In Nevada, the company’s wholly-owned subsidiaries hold a significant number of unpatented mining claims on federal lands. This includes approximately 1,600 unpatented claims (covering approximately 32,000 acres) that are now controlled by the company as a result of its acquisition of all of the outstanding stock of Corvus Gold Inc., which closed on 18 January 2022. The company is currently engaged in exploration activities on certain of its operations. Numerous scientific, technicalunpatented claims that include, but are not limited to, geological and legal studies have been undertaken to assist in determining the magnitudespectral mapping, surface geochemical sampling, geophysical surveying and RC and/or diamond drilling. The main projects of the impactcompany in Nevada include the Silicon Project, the North Bullfrog Project and the Mother Lode Project.

In 2021, the state of Nevada enacted a new tax on Nevada gold and silver mines (in addition to find sustainable remediation solutions.the existing Nevada net proceeds of minerals tax, which is a 5 percent net tax). The new mining tax is a 0.75 to 1.1 percent excise tax based on a mine’s annual gross revenue.



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Minnesota

In Minnesota, AngloGold Ashanti Minnesota Inc. completed early-stage reconnaissance exploration activities to determine the potential for gold mineralisation in the northern counties of Minnesota. Based on those studies as well as discussion with regulators,the achieved results, the company terminated its exploration activities in the state. In early 2021, the company completed closing out its activities in Minnesota in accordance with state and company requirements.

Potential regulatory changes

Over the years, the U.S. Congress has taken steps, including monitored natural attenuation and phyto-technologies, to address soil and groundwater contamination. Subjectconsidered a number of proposed amendments to the completionGeneral Mining Law and other federal statutes relating to mining. Among the significant features contained in previously proposed legislation were a production royalty obligation, new and more stringent environmental standards and conditions, additional reclamation requirements, extensive new procedural steps which would likely result in extended permitting timelines and granting counties and other entities the ability to petition the U.S. Secretary of trials and the technology being a proven remediation technique, no reliable estimate can be made at this timeInterior to make certain areas unavailable for the obligation. Should these obligations be significant, this could have a material adverse impact upon AngloGold Ashanti’s results and its financial condition.

As AngloGold Ashanti or its predecessors have a long historylocation of unpatented mining operations inclaims. In June 2020, former President Trump signed an executive order directing certain regions, issues may arise regarding historical environmental impacts on those areas, for which AGA, asfederal agencies to streamline the current owner/operator, may be legally responsible.

In addition, AngloGold Ashanti identified a flooding and future pollution risk to deep groundwater in the Far West Rand goldfields in South Africa, which includes AngloGold Ashanti’s operations. The premature closure of neighbouring mines owned by other mining companies in the area led to increased pumping obligations on AngloGold Ashanti to address water infiltration into AGA’s mines. In addition, in the West Wits district, after Blyvooruitzicht Gold Mining Company was placed in provisional liquidation in August 2013, AngloGold Ashanti purchased from Blyvooruitzicht the rights of access to the 4 and 6 shafts as well as the relevant infrastructure to continue pumping underground water. We subsequently transferred the assets and rights to a newly incorporated subsidiary Covalent Water Company and, in November 2014, obtained a directive from the Department of Water and Sanitation directing AngloGold Ashanti through Covalent to dewater 4 and 6 shafts and discharge the water. AGA continues to comply with the directive.


Climate Change and Greenhouse Gas Regulation

Greenhouse gases (GHGs) are emitted directly by AngloGold Ashanti’s operations, as well as by external utilities from which AngloGold Ashanti purchases electricity.

As a result of commitments made at the UN Climate Change Conference in Durban, South Africa in December 2011, certain members of the international community negotiated a treaty at the Conference of the Parties of the UN Framework Convention on Climate Change in Paris in December 2015 (Paris Agreement). The Paris Agreement, which came into force on 4 November 2016, requires developed countries to set targets for emissions reductions. Additional measures designed to limit or reduce GHG emissions, both mandatory and voluntary, may be implemented at national or international levels in various countries.

For example, in South Africa, the Carbon Tax Act, No. 15 of 2019, imposing a tax on carbon dioxide equivalent of GHG emissions, took effect on 1 June 2019. The tax will be implemented in a phased manner, taking into account South Africa’s Nationally Determined Contributions (NDCs) commitment under the Paris Agreement to reduce greenhouse gas emissions. The first phase, which runs from June 2019 to December 2022, imposed a tax of ZAR120/ton carbon dioxide equivalent (CO2-e) of direct GHG emissions, which will increase by CPI plus two percent up to 2022 and in line with inflation thereafter. As this first phase is designed to be revenue-neutral in terms of its aggregated impact, a system of rebates is in place effectively reducing the actual rate to be in a range of ZAR6/ton to ZAR48/ton.

These, or future, measures could require AngloGold Ashanti to reduce its direct GHG emissions or energy use or to incur significant costs for GHG emissions permits or taxes, including for those costs or taxes passed on by electricity utilities which supply the company’s operations. AngloGold Ashanti could also incur significant costsreview processes associated with capital equipment, GHG monitoringpermitting of infrastructure and reportingnatural 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 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 launchedproject approvals, the National Climate Change Policy, which established a voluntary reduction target of 1.2 billion tonnes of CO2 below the projected emissions in 2020. The policy required the development of sector-specific plans in order to meet the target. Amongst other plans, it is intended to reduce deforestation in the Cerrado biome, where AngloGold Ashanti operates, by 40 percent compared to the average deforestation in 1999-2008 and expand renewable energy production and energy efficiency programmes. The policy also provided for a Brazilian GHG trading scheme, whichimpact is yet to be designed. While Brazildetermined and remains uncertain.

AGA is not yet requiring mandatory GHG emissions reporting atcurrently 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 national level, some state environmental agencies have requested companies to voluntarily submit GHG emissions management plans, however Goiás and Minas Gerais State (in which AngloGold Ashanti operates) do not currently require GHG emissions management plans for mining projects.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.


In Australia, the Commonwealth Government introduced the Safeguard Mechanism (Rule 2015) through the existing National Greenhouse and Energy Reporting (NGER) scheme, to provide a framework for Australia’s largest emitters to measure, report and manage their emissions. It does this by encouraging large facilities, whose net emissions exceed the safeguard threshold, to keep their emissions at or below emissions baselines set by the Clean Energy Regulator. The safeguard mechanism applies to facilities with Scope 1 covered emissions
MINE SITE REHABILITATION AND CLOSURE

Closure, an integral part of more than 100,000 tonnes of CO2-e per fiscal year. The Australianoperations

All mining operations (Sunrise Dameventually cease. An integral aspect of operating AngloGold Ashanti’s mines is ongoing planning for and, Tropicana) had emissions baselines set in 2016 for a 3-year period (expired in 2019) which were reported annually throughwhere feasible, implementation of concurrent rehabilitation, together with an estimate of associated liability costs and the NGER scheme. During the 2018/19 fiscal year, Tropicana’s emissions were within its authorised thresholdplacement of adequate financial provisions and Sunrise Dam was requiredassurances to purchase offsets for emissions that were 0.8% above its safeguard threshold, the costcover these costs.

All of which was immaterial. The Australian mining operations are in the process of re-calculating their respective emissions baselines in 2020 to comply with the changes in Rule 2015 which adopt government-determined prescribed production variables.

In addition to more stringent requirements and commitments, AngloGold Ashanti’s operations are subjectrequired 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 numberconceptual 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 physical risks from climate change,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 changesthe gold price, change.

The company’s group closure standard stipulates that closure planning must be undertaken in rainfall rates or patterns resulting in floods or droughts, rising sea levels, reduced water availability, higher temperaturesconsultation with the stakeholders. In the course of these consultations, different issues are raised which require site-specific solutions. Livelihood preservation and extreme weather events. Such events or conditions, particularlyinfrastructure 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 flooding or inadequate water supplies, could disrupt miningdecommissioning and transportrestoration liabilities relating to past operations, mineral processingare based on environmental management plans and compliance with current environmental and regulatory requirements.

Provisions for decommissioning and rehabilitation efforts, create resource or energy shortages or damage the company’s property or equipment and increase health and safety risks on site.

Occupational and Community Safety and Health and Tropical Diseases

Safetycosts are made when there is a significant sustainable development challenge facing AngloGold Ashanti. AngloGold Ashanti’s operationspresent 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 subjectbased on currently available facts, technology expected to a varietybe available at the time of the rehabilitation, laws and regulations designedpresently or virtually certain to protectbe enacted and improveprevious experience in the safetyrehabilitation of mine sites.

Decommissioning costs and health of employees. In somerestoration costs are provided at the present value of the jurisdictionsexpenditures expected to settle the obligation, using estimated cash flows based on current prices. Estimates are discounted at a pre-tax rate that reflects current market assessments of the time value of money.




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Provisions for decommissioning and for restoration (excluding joint ventures and discontinued operations) increased from $674 million in which 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 AshantiAshanti’s sustainability approach is fundamental to how the company operates the government enforces compulsory shutdowns of operations to enable investigations into the cause of accidents at those operations. 

Throughout the year we have continued to improve our safety performance across our global operations, which remains a top priority for AngloGold Ashanti. We pursue and continually adapt strategies in line with recognised leading practice in global safety standards and systems in working towards our 2030 goal of providing workplaces free of injury and harm for our employees and contractors. Our progress to date is the cumulative result of numerous interventions over several years, including the development of our 2015 strategy, which designed with the input of operating teams across ourits business, as well as representativesits 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 Executive Committee,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. To ensure that our strategy remains relevantemployees, and focused, we reassessto 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 look at riskbroader business. This common reporting system for all sustainability disciplines, from safety, health and security to community and environmental management, technologyis expected to help provide timely information in each of these areas, and innovation, leadership, peopleto facilitate transparency and work processes. We also adhere to global standardsdecision-making in its processes and practices.


Significant EHS requirements and ESG risks and trends affecting the company’s mining and processing operations are rolling out ISO 45001:2018, which has replaced the OHSAS 18001:2007 series. All our sites are currently OHSAS 18001:2007 certified and three operations, Sunrise Dam, Siguiri and Geita, have already converted to the ISO 45001:2018 standard.described below.


In addition, 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 relatingapplicable to occupational disease. The primary areas of focus in respect of occupational health of employees within the company’s operations, including the requirements contained in environmental permits, are noise-induced hearing loss (NIHL)generally becoming more restrictive.

Capital and occupational lung diseases (OLD). OLD includes occupational tuberculosisoperating costs to comply with EHS laws and silicosis in individuals exposedregulations have been, and are expected to silica dust. Silicosis has been particularly prevalent in South Africa and has also arisen at the company’s Continental Africa and Brazilian operations, albeitcontinue to a far lesser extent.be, significant to AngloGold Ashanti provides occupational health services to its employees at its occupational health centres and clinics, and continues to improve preventative occupational hygiene initiatives, such as implementing various control measures to prevent hazardous exposures, and providing employees with Personal Protective Equipment. It is believed that the costs associated with activities to prevent disease would be substantially lower than those associated with managing the consequences of occupational disease. Actual and alleged health and safety incidents or breaches of standards may also adversely impact the company’s reputation.

The South African government, by way of a cabinet resolution in 1999, proposed a possible combination and alignment of benefits of the Occupational Diseases in Mines and Works Act (ODMWA) that provides for compensation to miners who have OLD, and the Compensation for Occupational Injuries and Diseases Act (COIDA), that provides for compensation in respect of job related injuries and compensation of non-miners who have OLD. Work on amending ODMWA is underway, although it remains unclear as to what progress will be made in the short- to medium term. COIDA provides for compensation payments to workers suffering permanent disabilities which are classified as pension liabilities if the permanent disability is above a certain threshold, or a lump sum compensation payment if the permanent disability is below a certain threshold. ODMWA provides for a lump sum compensation payment to workers suffering from OLD as well as the payment of medical expenses over the claimant’s lifetime. If the proposed amendments to ODMWA were to occur, this could further increase the amount of statutory compensation that miners employed byAshanti. In addition, AngloGold Ashanti could claim, which consequently could have an adverse effect on AngloGold Ashanti’s financial condition.

In 2019, the Johannesburg High Court approved the settlement of existing silicosis and tuberculosis class actions against AngloGold Ashantiincur fines, penalties and other gold mining companies in South Africa. Please refersanctions, environmental clean-up costs, and third-party claims for personal injury or property or natural resources damages; suffer reputational damage; and be required to “Item 8A: Consolidated Financial Statements and Other Financial Information-Legal Proceedings-South Africa-Silicosis and tuberculosis litigation”.

In additioninstall costly pollution control equipment or to OLD, AIDS and associated diseases remain major health care challenges faced by AngloGold Ashanti’s South African operations. AngloGold Ashanti continues to implement programmes to help those infected with HIV and prevent new infections from spreading. Since 2001, the company has offered a voluntary counselling and HIV testing programme for employees in South Africa and, since 2003, has offered anti-retroviral therapy to HIV positive employees who meet the current medical criteria and who desire this treatment. Over the past 10 years, the incidence of new infections has declined.

Malaria and other tropical diseases also pose health risks at all of the company’smodify or suspend operations, in Central, West and East Africa where such diseases may assume epidemic proportions because of ineffective national control programmes. Malaria is a major cause of death in young children and pregnant women but also gives rise to deaths and absenteeism in adult men. All affected company operations have malaria control programmes in place.

Other conditions such as heart disease, chronic diseases and obesity are of increasing incidence and concern. Such diseases impair the health of workers and negatively affect productivity and profitability as a result of workers’ diminished focusactual or skill, absenteeism, treatment costsalleged violations of, or liabilities under, EHS laws and allocated resources.

AngloGold Ashanti cannot guarantee that any current or future medical programme will be successful in preventing or reducing the injuryregulations. Failure to comply with applicable EHS laws and illness rates amongst its employees or in affecting consequent morbidity or mortality rates. AngloGold Ashantiregulations may incur significant costs in addressing this issuealso result in the future, which could alsosuspension 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 impactimpacted 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 results of operations and financial condition.


ANGLOGOLD ASHANTI GLOBAL OPERATIONS: 2019


worldmap2.jpg


Operations and projects
AMERICASCONTINENTAL AFRICASOUTH AFRICA
1
Argentina4
Guinea9
South Africa
 
Cerro Vanguardia (92.5%)(1)
 Siguiri (85%) 
Mponeng(6)
2
Brazil5
Mali 
Surface Operations(6)
 Serra Grande 
Morila (40%)(5)
  
 AGA Mineração 
Sadiola (41%)(3)
  
3
Colombia6
Ghana  
 Gramalote (51%) IduapriemAUSTRALIA
 La Colosa 
Obuasi(4)
10
Australia
 
Quebradona(2)
7
DRC Sunrise Dam
   
Kibali (45%)(5)
 Tropicana (70%)
 8
Tanzania  
   Geita  
      

Percentages indicate the ownership interest of AngloGold Ashanti. All operations are 100%-owned unless otherwise indicated.
(1)
Sale process ongoing (at an advanced stage).
(2)
In 2019, the company’s joint venture partner’s, B2Gold Corp, minority shareholding was converted to a share of profits. Likely to be a copper mine producing gold and silver as by-products.
(3)
Agreement and sale announced December 2019.
(4)
Obuasi's redevelopment project began in 2019.
(5)
Kibali and Morila are managed and operated by Barrick Gold Corporation (Barrick).
(6)
Agreement and sale announced post year end in February 2020.


OPERATING PERFORMANCE

Group description

AngloGold Ashanti, an independent, global gold mining company with a globally diverse, high-quality portfolio of operations and projects, is headquartered in Johannesburg, South Africa. Measured by production, AngloGold Ashanti is the third largest gold mining company in the world.

Our portfolio of 14 operations in nine countries excluding our South African assets and Sadiola mineproperties which are held for sale, 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 a tenth country (Colombia) and a focused global exploration programme.

Our operations and projects are grouped into the following regions: Continental Africa, South Africa, Americas and Australia.

The most significant project milestone achieved during the year was the pouring of first gold at the Obuasi Mine in Ghana on 18 December 2019, bringing Phase 1 of the Redevelopment Project to a conclusion on time and within budget.

Processes to sell assets in Mali, South Africa and Argentina progressed during the year. On 23 December 2019, the Company announced that it had reached an agreement to sell its interest in the Sadiola Mine, and on 12 February 2020, the Company announced that it had reach an agreement with Harmony Gold Mining Company Limited to sell all its remaining South African producing assets and related liabilities. In Argentina, the sales process related to Cerro Vanguardia continues.

AngloGold Ashanti’s operations and joint ventures employed, on average, 34,263 people (including contractors) in 2019 (2018: 44,249). The 23% decrease in employees is mostly due to the reduction of employee numbers in the South Africa region as a result of the restructuring of the South African operations in 2019.

Performance (including discontinued operations)

In 2019, AngloGold Ashanti produced attributable 3.3 million ounces (Moz) of gold (2018: 3.4Moz) as well as 3.7Moz of silver and 199 tonnes of sulphuric acid as by-products.

Production of 3.3 Moz of gold was achieved at a cost of sales of $3.1 billion and an all-in sustaining cost of $ 1,034/oz for subsidiaries and $767/oz for equity accounted joint venture operations compared to a production of 3.4Moz in 2018 at a cost of sales of $3.2 billion and all-in sustaining cost of $1,000/oz for subsidiaries and $820/oz for equity accounted joint venture operations.

Gold
The AngloGold Ashanti gold Ore Reserve reduced from 44.1Moz in December 2018 to 43.8Moz in December 2019. This gross annual decrease of 0.3Moz includes depletion of 3.7Moz. The increase after depletions of 3.4Moz, results from additions due to exploration and modelling changes of 3.6Moz, changes in economic assumptions of 0.4Moz and a change in ownership of 0.1Moz. Other factors resulted in a 0.7Moz reduction.

Copper
The AngloGold Ashanti copper Ore Reserve increased from 1.26Mt (2,769Mlbs) in December 2018 to 1.39Mt (3,068Mlbs) in December 2019. This gross annual increase of 0.14Mt includes an increase of 0.07Mt due to methodology and 0.07Mt due to change in ownership from 94.876% to 100% as B2Gold’s shareholding has been converted to a share of profits.

Capital expenditure, including equity accounted joint ventures, in 2019 amounted to $814 million (2018: $721 million).

Safety

There were no fatalities across the group’s operations in 2019. The all injury frequency rate was 3.31 per million hours worked compared to 4.81 in 2018. Regrettably, theremay have been four fatalities across the group’s operations post year-end resulting from a seismic event as well as a tramming accident at the Mponeng mine in South Africa.caused by previous owners or operators.


CONTINENTAL AFRICA


cara03.jpg


AngloGold Ashanti had seven mines in the region during 2019, four of which are currently in operation and two treating tailings. The redevelopment of the Obuasi mine in Ghana began in 2019 and first gold was poured in December 2019. The sale of Sadiola was announced on 23 December 2019.

 
Attributable gold production
(000oz)
 
Average number of  
employees  

Subsidiary operations   
Ghana   
Iduapriem275
 1,801
Obuasi2
 2,924
Guinea   
Attr. Siguiri 85%213
 3,056
Tanzania   
Geita604
 5,066
 
Joint venture operations
Democratic Republic of the Congo   
Attr. Kibali 45%366
 2,239
Mali   
Attr. Morila 40%27
 354
Attr. Sadiola 41%51
 346

Continental Africa - Key Statistics
 Unit 2019
 2018
 2017
Subsidiary operations       
Tonnes treated/milledMt 19.1
 19.5
 20.3
Pay limitoz/t 0.039
 0.040
 0.038
 g/t 1.330
 1.372
 1.130
Recovered gradeoz/t 0.060
 0.049
 0.054
 g/t 1.77
 1.69
 1.84
Gold production (attributable)000oz 1,094
 1,060
 1,093
Cost of sales$m 1,173
 1,127
 1,071
Total cash costs (1)
$/oz 801
 813
 686
All-in sustaining costs (1)
$/oz 947
 941
 909
Capital expenditure$m 359
 246
 290
Safety       
Number of fatalities  0
 0
 0
AIFRPer million hours worked 0.62
 0.51
 0.28
People       
Average no of employees: Total  12,847
 11,490
 10,268
Permanent employees  4,939
 4,625
 4,523
Contractors  7,908
 6,865
 5,745

(1) Includes Obuasi gold production in 2019, capitalised as part of the project development.
 Unit 2019
 2018
 2017
Joint venture operations       
Tonnes treated/milledMt 7.5
 7.8
 7.7
Pay limitoz/t 0.037
 0.041
 0.045
 g/t 1.255
 1.403
 1.528
Recovered gradeoz/t 0.060
 0.053
 0.047
 g/t 1.85
 1.81
 1.10
Gold production (attributable)000oz 445
 452
 360
Cost of sales$m 428
 480
 441
Total cash costs (1)
$/oz 657
 680
 819
All-in sustaining costs (1)
$/oz 767
 820
 1,087
Capital expenditure$m 51
 67
 119
Safety       
Number of fatalities(2)
  0
 0
 0
AIFR (2)
Per million hours worked 0.65
 0.29
 1.25
People       
Average no of employees: Total  2,939
 3,343
 3,325
Permanent employees  1,192
 1,072
 944
Contractors  1,747
 2,271
 2,381

(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 Morila and Kibali which are managed by Barrick and not AngloGold Ashanti.


Production and costs

Production from the Continental Africa region subsidiaries increased to 1.094Moz in 2019 compared to 1.060Moz in 2018. The joint venture operations decreased production to 445Moz compared to 452Moz in 2018. The increase was largely due to record production at Iduapriem, and good performance at Geita.

Gold production at Iduapriem was 8% higher at a record 275,000oz compared to 254,000oz in 2018, primarily a result of a 14% improvement in plant feed. The grade improvement was driven by better grade control and access to Cut 1 area in the Teberebie pit where stripping commenced in 2017. Production was impacted by a 5% year-on-year decline in tonnage throughput due to lower plant availability owing to an unstable power supply from the national grid in the first half of the year and mill downtime in the last quarter of the year to repair a cracked trunnion journal on Sag Mill 2. The power supply challenge has since been resolved by changing over to Volta River Authority (VRA) and Ghana Grid Company.

Geita produced 604,000oz in 2019, the highest level in 13 years, 7% higher compared to 564,000oz in 2018. The operation is transitioning to predominantly underground operations, with a 10% increase in recovered grades achieved on the back of additional flexibility in the blending strategy resulting in improved recovery rates. Record quarterly production of 208,000oz was achieved in the last quarter of the year, largely a result of the higher volumes of tonnes treated and higher-grade material from Star & Comet Cut 3.

Production at Siguiri declined 12% to 213,000oz in 2019. This compares with production of 242,000oz in 2018. The lower production was mainly due to lower plant feed grade and recovery which is related to the ROM 3 crushing plant low performance and material feed blend to the plant. This was a result of a slower ramp-up than anticipated following the completion of the carbon-in-leach (CIL) combination plant integration during the year. By year-end, quarterly production had improved as the processing challenges from the treatment of harder rock material through the plant had been addressed.

At Kibali, production increased 1% to a record of 366,000oz in 2019 (2018: 363,000oz), a result of the ramp up in underground mining, which partially offset the 9% decrease in tonnes treated due to the planned reduction in open pit mining. The mine delivered higher volumes of underground tonnes as the shaft operated in line with design specifications for the full year. Total volume of undergound ore hoisted was 15% higher year-on-year.

Sadiola continued to process the stockpile and optimise costs, producing 51,000oz in 2019. This compares to 59,000oz in 2018, a 13% decrease. The end of mining activities and the depletion of full grade ore stockpiles in 2018 led to a higher proportion of marginal grade ore from the stockpiles being fed to the plant in 2019.

Morila’s production decreased 8%, as planned, to 27,000oz in 2019 compared to 30,000oz in 2018, following the completion of satellite pit mining at the start of the first half of the year. Production was also impacted by a 16% decrease in recovered grade as the mine continued to treat tailings material. This was partially offset by a 9% increase in tonnes treated compared to the previous year. The mine is expected to continue treatment of mineralized waste ore, augmented by higher grade ore from targeted mining areas, for the next year, after which the mine will transition to full closure.

Cost of sales and all-in sustaining costs (AISC) for the subsidiary operations in the region increased to $1,173 million and $947/oz for 2019, respectively, a result of higher operating costs due to lower production at Siguiri, offset by lower costs at Geita following the transition to underground mining, as well as cost savings achieved from reagent optimisation at both Geita and Iduapriem. Cost of sales and AISC for the joint venture operations decreased due to lower operating costs at Sadiola and Morila as they wind down operations.

The drive for continuous cost improvements through the Operational Excellence programme is well entrenched across all sites and disciplines in the region. The focus remains on delivering systemic and sustainable operational improvements in the management of the region’s stay-in-business projects.

Capital expenditure

Total capital expenditure for the region increased in line with planned inward investment in growth projects, particularly at Obuasi where $246 million was spent in the redevelopment of the project. Underground Ore Reserve development projects continued at Geita, for Star & Comet and Nyankanga, and at Obuasi. These projects will provide access to ore bodies identified for future gold extraction. The balance of the capital spend was used for capitalised exploration and stay-in-business projects to improve asset reliability across our mines to ensure safe, risk-free mining and production.

Safety

There were no fatalities in the Continental Africa region in 2019, with the last fatal injury having been recorded in October 2015. The region saw a regression from the previous year, primarily due to an increased number of injuries associated with the redevelopment project currently underway at Obuasi in Ghana.

Ore Reserve

The total attributable Continental Africa Region Ore Reserve was 17.93 million ounces (2018: 16.33 million ounces). This amounts to 41 percent of the group’s Ore Reserve.

Growth and improvement

Commissioning of the Siguiri CIL combination plant was completed in 2019 with the mill achieving design throughput consistently. Optimisation of the circuit is now underway. The pre-feasibility study was completed for Block 2 Project, and it is expected that the feasibility study will be completed by end of the second quarter in 2020. Evaluation of Siguiri Block 2 and the trucking of oxide material to the existing process plant to displace marginal ore was completed. The aim is to improve the mine’s ounce profile and potentially extend its life of mine. Permits for construction of the new haul road have been received and the mining permit application is currently in progress.

At Geita, the development of Nyankanga Block 1 Portal began in December 2019 to accelerate mining in Blocks 1 and 2 following the delay in permitting for Geita Hill.

Development of Geita’s Star & Comet and Nyankanga underground operations continued during the year. Approximately 4,568m of development was completed during the year to access new areas for stope mining and further exploration. Open pit mining at Nyankanga will reach the end of its economic life during 2020. Surface exploration continued at Selous, a satellite pit 2.4km from Star & Comet, to supplement the underground operation in the near term.

At Iduapriem waste stripping for Teberebie Cut 1 was completed and ore was mined from Teberibie Cut 1, Cut 3, Ajopa and Block 3. Stripping in Cut 2 is expected to start during the first half of 2020 to deliver ore in 2021 when Cut 1 ore is depleted. Brownfields drilling continued at the Ajopa pit and open pit mining has been extended to Cut 3 to supplement ore from the larger Teberebie pit. Major brownfield exploration drilling continued at Blocks 7 and 8, Ajopa and Block 1 to improve the mine’s future ounce profile and potentially extend the life of mine.

The pre-feasibility studies for the new tailings storage facility (TSF) and return water dam (RWD) sites were completed. A related feasibility study is planned to be completed in 2020. Construction sites were identified and land access compensation and engagement with the relevant government authorities began for the permitting of the new facilities. In the second half of 2019 the mine undertook a feasibility study to consider treatment options to discharge excess water efficiently on the current greenfield tailings storage facility, the completion of which is expected in 2020.

The Obuasi Redevelopment Project has progressed well. There is a strong focus on safety. The project remains on schedule and within budget. Phase 1 of the project, which set up the plant to achieve a daily processing rate of 2,000t of ore, was completed. Phase 2, which aims to expand plant capacity to 4,000t a day, will continue through 2020. The civil engineering work is progressing well with most orders having already been placed. First blast underground, signalling the start of underground development, took place on 11 February 2019 and the first stope blast was in October 2019. This indicated the start of ore production, albeit on a limited scale, and was followed by the first pour of gold on 18 December 2019, demonstrating the successful implementation of the plan to redevelop Obuasi into a modern, mechanised mining operation, following the suspension of mining activities five years ago.

At Kibali, the Kalimva-Ikamva prefeasibility study was completed, delivering another viable opencast project. This will help balance the mine’s open cast/underground ore ratio and enhance mine plan flexibility. Drilling at Gorumbwa highlighted future underground potential and ongoing conversion drilling at KCD is delivering reserve replenishment. The mine is well placed to meet its 10-year production targets and extend them beyond this horizon.

SOUTH AFRICA



sa.jpg


After extensive restructuringAs part of this region, at 31 December 2019, the region has two operations:

West Wits: Mponeng
Surface operations

Post-year end, on 12 February 2020, it was announced that an agreement had been reached to sell all our remaining South African producing assetsasset sale, AngloGold Ashanti Limited sold its remaining three mining rights in South Africa to Golden Core Trade and related liabilities toInvest (Pty) Ltd (“Golden Core”) and Harmony Gold Mining Company Limited. The transaction, which is subjectLimited pursuant to several conditions precedent, is expected to bea sale agreement concluded on or about 3012 February 2020, as amended and reinstated from time to time (the “SA Sale Agreement”). These mining rights relate to operations in the West Wits area.

General laws relating to mining

The MPRDA

The Mineral and Petroleum Resources Development Act, No. 28 of 2002 (the “MPRDA”) came into effect on 1 May 2004. The objectives of the MPRDA are, amongst other things, to allow for state sovereignty over all mineral and petroleum resources in the country, to promote economic growth and the development of these resources and to expand opportunities for the historically disadvantaged and to ensure security of tenure for the respective operations concerning prospecting, exploration, mining and production. By virtue of the provisions of the MPRDA, the state ensures that holders of mining and prospecting rights contribute to the socioeconomic development of the areas in which they operate. The Mineral and Petroleum Resources Development Amendment Act, No. 49 of 2008 (the “MPRDAA”) became effective on 7 June 2013. On 23 April 2004, the Minister of Mineral Resources and Energy (the “MRE Minister”) published, under the terms of the MPRDA, the Mineral and Petroleum Resources Development Regulations in order to implement the provisions of the MPRDA and MPRDAA. These implementation regulations were amended on 27 March 2020.


The mining charter
 
Gold production
(000oz)

 
Average number of  
employees  

Operations
South Africa   
  1.   West Wits
   
Mponeng244
 4,944
  2.   Surface operations (1)
175
 2,031
(1)
Includes MWS for purposes of this annual report. It is operated and managed as a separate cash-generating unit.


Since 2004, a series of mining charters have been adopted in South Africa Key Statisticswith the main purpose of transferring part of the ownership of mining assets to black or historically disadvantaged South Africans (“HDSAs”) within a certain time period. Such mining charters also set targets for, amongst other things, the advancement of HDSAs into management positions, the employment of women, procurement of goods and services from HDSA-owned companies, training, community development and the upgrading of mine housing. In 2004, the Broad-Based Socio-Economic Empowerment Charter for the South African Mining Industry, 2004 was published and, in September 2018, the Broad-Based Socio-Economic Empowerment Charter for the Mining and Minerals Industry, 2018 (the “2018 Mining Charter”) was published, repealing all prior mining charters. In September 2021, the High Court of South Africa (Gauteng Division) held that the 2018 Mining Charter is a policy document and does not, per se, bind holders of mining titles. The High Court also set aside various provisions of the 2018 Mining Charter. In



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 Unit 2019
 2018
 2017
Operation       
Tonnes treated/milledMt 35.1
 34.9
 38.9
  Pay limit (1) 
oz/t 0.33
 0.44
 0.43
 g/t 11.90
 16.11
 15.97
  Recovered grade (1) 
oz/t 0.183
 0.219
 0.202
 g/t 5.69
 6.82
 6.93
Gold production (2)
000oz 419
 487
 903
Cost of sales$m 479
 590
 1,129
  Total cash costs (3) 
$/oz 981
 1,033
 1,085
  All-in sustaining costs (3) 
$/oz 1,132
 1,178
 1,245
Capital expenditure$m 57
 73
 150
Safety       
Number of fatalities  0
 2
 7
AIFRPer million hours worked 10.00
 10.25
 12.68
People       
Average no of employees: Total  6,975
 17,308
 26,245
Permanent employees  6,202
 15,557
 22,738
Contractors  773
 1,751
 3,507
(1)
Refers to underground operations only.
(2)
Includes production ounces from the technology development programme in 2017.
(3)
Total cash costs and all-in sustaining costs are non-GAAP measures. For further information on these non-GAAP measures, see “Item 5A: Operating Results-Non-GAAP analysis”.

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

Production and costs


The B-BBEE Act

The Broad-Based Black Economic Empowerment Act, No. 53 of 2003 (the “B-BBEE Act”) is a law of general application in respect of Broad-Based Black Economic Empowerment (“B-BBEE”) and enables the Minister of Trade and Industry to drive B-BBEE across all sectors of the economy. In 2014, the Broad-Based Black Economic Empowerment Amendment Act, No. 46 of 2013 (the “B-BBEE Amendment Act”) came into effect amending the B-BBEE Act to provide a framework of principles, strategies and guidelines aimed at promoting the broad-based socio-economic empowerment of HDSAs across the South African economy and society in the form of ownership, management, employment equity, skills development, preferential procurement, enterprise development and socio-economic development.

Environmental laws relating to mining

The National Environmental Management Act, No. 107 of 1998, as amended (the “NEMA”) includes provisions to deal with environmental regulation of mining and prospecting, which provisions are administered by the MRE Minister. Pursuant to section 24N(8) of NEMA, directors of a company are jointly and severally liable for any negative impact on the environment, whether advertently or inadvertently caused by the company they represent, including damage, degradation and pollution.

From an environmental perspective, given the wide scope of the statutory duty of care in South African environmental law, erstwhile land owners may be held liable for historic contamination by the regulatory authorities. The “polluter pays” principle in South Africa region produced 419,000oz, 14% lowerenables the competent authority to seek recourse against various responsible parties based on their historical or current relationship to the source and receptor of degradation or pollution. The duty of care also applies retrospectively to significant pollution or degradation that occurred before the entry into force of NEMA (i.e., 29 January 1999), as well as significant pollution or degradation that arises or is likely to arise at a different time from the actual activity that caused the contamination (e.g., latent or residual impact) or arises through an act or activity of a person that exacerbates pre-existing contamination. The authorities can also seek compensation in respect of clean-up measures that it is required to take on behalf of the responsible parties and apportion liability amongst the responsible parties, which could technically include a historic landowner or mining company that caused the pollution. Although the purchasers of AngloGold Ashanti’s assets in South Africa have contractually assumed all environmental liability associated with its former South African operations and agreed to indemnify AngloGold Ashanti for the same, there remains a risk, at least theoretically, of statutory liability to the state.

AngloGold Ashanti’s rights and permits

Pursuant to the SA Sale Agreement, AngloGold Ashanti and Golden Core executed a notarial deed of cession of the mining rights with DMRE references GP 30/5/1/2/2/01 MR and GP 30/5/1/2/2/248 MR to transfer and cede these mining rights to Golden Core (the “Deed of Cession”). On 14 June 2021, the Deed of Cession was registered at the Mineral and Petroleum Titles Registration Office (the “MPTRO”).

With respect to the mining right held under DMRE reference GP 30/5/1/2/2/11 MR, AngloGold Ashanti and Golden Core agreed to make an application in terms of section 102 of the MPRDA at the DMRE after the closing date of the SA Sale Agreement requesting, among other matters, the incorporation of this mining right into the mining right with DMRE reference GP 30/5/1/2/2/01 MR (the “Harmony Consolidation Application”). AngloGold Ashanti also executed a notarial conditional deed of abandonment pursuant to which it conditionally abandons this mining right in terms of section 56(f) of the MPRDA (the “Deed of Abandonment”) on condition that ministerial consent is granted in respect of the Harmony Consolidation Application. On 17 January 2022, the Harmony Consolidation Application was submitted to the DMRE. On the date of the grant of the Harmony Consolidation Application, AngloGold Ashanti will cease to be a holder of any mining rights in South Africa. Once the transaction has been fully implemented, the general laws relating to mining outlined above will no longer be applicable to the company, other than the previous year, at a coststatutory duty of salescare in terms of $479 million and a total cash costNEMA as described above.


AFRICA REGION

Democratic Republic of $981/oz in 2019, largely duethe Congo (DRC)

General laws relating to limitations in face length availability which impacted grades following high seismicity at Mponeng. Production was also impacted by intermittent electricity due to Eskom load shedding and seismicity related safety stoppages.mining

Mponeng mine produced 244,000oz at a cost of sales of $287 million and a total cash cost of $976/oz in 2019, an 8% decrease in production compared to 265,000oz at a cost of sales of $320 million and a total cash cost of $977/oz in 2018. The 2019 year marked the first full year in which shift arrangements at Mponeng were implemented.


The shift arrangement represents a paradigm shiftmining industry in the evolutionDRC is primarily regulated by Law No. 007/2002 dated 11 July 2002 (the “2002 DRC Code”), as amended by Law No. 18/001 dated 29 January 2018 (the “Reformed DRC Mining Code”) and Decree No. 038/2003 dated 26 March 2003, as amended by Decree No. 18/024 dated 8 June 2018 (the “Reformed DRC Mining Regulations”).






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

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

The Reformed DRC Mining Code grants the DRC Minister of Mines the authority to grant, refuse, suspend or terminate mineral rights, subject to conditions set out in the Reformed DRC Mining Code. Mineral rights may be granted in the form of exploration permits for an initial period of five years or in the form of mining permits which are granted for an initial period of 25 years. Mining permits are granted upon successful completion of exploration and satisfaction of certain requirements, including approval of a 36% year-on-year improved safety performance (AIFR)feasibility study, an environmental impact study and an environmental management plan. The holder of a 15% upliftmining permit is required to commence development and mine construction within three years of the award of such permit. Failure to do so may lead to forfeiture of the mining permit. To protect and enforce rights acquired under an exploration or mining permit, the Reformed DRC Mining Code provides, depending on the nature of a dispute or threat, administrative, judicial and national or international arbitral recourses.

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


ProductionTax laws relating to mining

The Reformed DRC Mining Code sets out an exclusive and comprehensive tax and customs regime that is applicable to mining activities. Mining title holders are subject, amongst other things, to a corporate income tax of 175,000oz30 percent, a windfall tax of 50 percent (subject to certain prerequisites) and are required to pay mining royalties to the DRC government. The royalty rate applicable to gold has been set at Surface Operations improved for3.5 percent. Mining title holders are also required to contribute a minimum of 0.3 percent of total turnover to community development.

The standard rate of VAT is 16 percent and is applicable to all mining companies. In the year drivenDRC, Kibali Goldmines is due certain refunds of VAT which, to date, remain outstanding. During 2021, AngloGold Ashanti did not recover any VAT offsets and refunds from its operations in the DRC. We believe that our attributable share of the net recoverable VAT balance (including recoverable fuel duty and after discounting provisions) owed to us by a 3% increase in production at MWS, driven by improved recoveriesthe DRC government amounted to $73 million as of 31 December 2021. While an agreement was reached with the introductionDRC government on the reimbursement of the Aachen Shear reactorrefundable VAT in 2018, uncertainty remains regarding the timing and level of cash receipts and offsets against other initiatives aimed at enhancing efficiencies.taxes for purposes of the recovery of our VAT receivables in the DRC.


The main driversReformed DRC Mining Code also provides for a level of fiscal stability. A stability clause stipulates that existing tax, customs and exchange control provisions applicable to mining activities are guaranteed to remain unchanged for a period of five years from the improved delivery at the Surface Operations were primarily:
Improved throughput from better operational performance delivery by the contractor; stabilised duty cycleenactment of the communication circuitsReformed DRC Mining Code.
A change in strategy to process Mponeng marginal ore dumps (MOD) through the Savuka gold plant;
General metallurgical process efficiencies; andForeign exchange control regime
Implementation of grid sampling and grade profiling strategy.


The impactReformed DRC Mining Code imposed new exchange control rules requiring that mining title holders repatriate onshore 60 percent of inclement weather remained significantsale revenues received during 2019. A remote reclamation projectthe investment amortisation period and 100 percent once the investment amortisation is currently underway with the aimcompleted. As a result of reducing inclement weather disruptions to production. The current situation at Eskom also remains a concern as MWS isthese new rules, AngloGold Ashanti was not able to fully functionrepatriate dividends from its DRC operations to date.

In 2021, AngloGold Ashanti repatriated $231 million from its operations in the DRC, in the form of dividends from Kibali (Jersey) Limited. Kibali (Jersey) Limited received such cash from Kibali Goldmines S.A. in the form of loan repayments (AngloGold Ashanti’s attributable share: $150 million) and dividends (net of withholding taxes) (AngloGold Ashanti’s attributable share: $81 million). Our attributable share of the outstanding cash balances awaiting repatriation from the DRC amounted to $499 million as of 31 December 2021. The cash and cash equivalents held at Kibali Goldmines are subject to various steps before they can be distributed to Kibali (Jersey) Limited and are held across four banks in the DRC, including two domestic banks.






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AngloGold Ashanti’s rights and permits

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

The Kibali gold project is operated by Barrick Gold Corporation and comprises ten exploitation permits, of which eight expire in 2029 and two in 2030. Those exploitation permits (11447, 11467, 11468, 11469, 11470, 11471, 11472, 5052, 5073, and 5088) cover an area of approximately 1,836 km2 in the Moto goldfields.


Ghana

General laws relating to mining

Control of minerals and mining companies

The Constitution of Ghana as well as the Minerals and Mining Act, 2006 (Act 703) (the “GMM Act”) provide that all minerals in Ghana in their natural state are the property of the State and title to them is vested in the President on emergencybehalf of and in trust for the people of Ghana, with rights of reconnaissance, prospecting, recovery and associated land usage being granted under licence or lease. The grant of a mining lease by the Ghana Minister of Lands and Natural Resources (the “LNR Minister”) upon the advice of the Minerals Commission is subject to parliamentary ratification unless the mining lease falls into a class of transactions exempted by the Ghanaian Parliament. The LNR Minister has the power to object to a person becoming or remaining a controller of a company which has been granted a mining lease if the LNR Minister believes, on reasonable grounds, that the public interest would be prejudiced by the person concerned becoming or remaining such a controller.

Stability and development agreements

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

Ghana Stability Agreement

In 2004, AngloGold Limited and the Government of Ghana signed a stability agreement (the “Ghana Stability Agreement”) governing certain aspects of the fiscal and regulatory framework under which the company would operate in Ghana for a period of 15 years following the implementation of the business combination between AngloGold Limited and Ashanti Goldfields Company Limited. In June 2018, the Ghana Stability Agreement ceased to apply to the Obuasi mine as a result of the parliamentary ratification of a new development agreement and a new tax concession agreement in relation to the mine (as described below). However, the Ghana Stability Agreement continued to apply to the Iduapriem mine until it expired in April 2019. Since then, AngloGold Ashanti (Iduapriem) Limited (“AGA Iduapriem”) no longer benefits from the Ghana Stability Agreement. Relevant engagements are currently ongoing between AGA Iduapriem and the Minerals Commission to obtain a new agreement for the Iduapriem mine.

Obuasi Development Agreement

AngloGold Ashanti (Ghana) Limited (“AGA Ghana”) negotiated a new development agreement in relation to the Obuasi mine (the “Obuasi DA”) with the Government of Ghana. On 21 June 2018, the Ghanaian Parliament ratified the Obuasi DA which contains stability terms as provided for in stability agreements. The Obuasi DA confers a number of rights and obligations on AGA Ghana with respect to the Obuasi mine, including, among other matters, (i) the stabilisation of the fiscal and regulatory framework (except for enactments promoting the use of Ghanaian goods and services) for a period of 10 years (with a potential of it being extended for five years); (ii) the right to hold up to 80 percent of proceeds received from exporting minerals in foreign currencies outside of Ghana; (iii) obligation to give preference to materials and goods made in Ghana as well as services provided by Ghanaians; and (iv) the right to peaceful enjoyment and protection against expropriation.






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Obuasi Tax Concession Agreement

Fiscal terms, which will ordinarily form part of a single stabilisation document, were separated from the Obuasi DA. Hence a separate tax concession agreement in relation to the Obuasi mine (the “Obuasi TCA”) was signed with the Government. On 21 June 2018, Parliament ratified the Obuasi TCA with a concession period until 31 December 2027. The Obuasi TCA contains a number of tax concessions for AGA Iduapriem with respect to the Iduapriem mine, including, among other matters, (i) a corporate income tax rate of 32.5 percent or such lower rates as may be fixed by law (instead of the current statutory rate of 35 percent); (ii) exemption of certain transactions from capital gains tax; (iii) a sliding scale royalty rate ranging from 3 percent to 5 percent for a price ranging from $1,300 up to $2,000 and above per ounce (instead of the current flat rate of 5 percent); and (iv) certain VAT exemptions and refunds.

Government’s Golden Share

Section 60(1) of the GMM Act provides that the Government of Ghana can require a mining company to issue for no consideration to the Republic of Ghana a special share (a “Golden Share”). A Golden Share in AGA Ghana was issued to the Government of Ghana and the Obuasi DA confirms that the Government’s rights with respect to its Golden Share apply only in respect of AGA Ghana’s assets and operations in Ghana. The Golden Share confers certain rights on the Government in respect of AGA Ghana. For example, written consent of the holder of the Golden Share is required for, among other matters, (i) any interruptions causedamendment of the rights and restrictions in respect of the Golden Share; (ii) the voluntary winding-up or voluntary liquidation of AGA Ghana; (iii) the disposal of any mining lease held by Eskom directlyAGA Ghana; and (iv) the disposal of all or substantially all of the assets of AGA Ghana. The holder of the Golden Share generally does not have the right to participate in the profits or assets of AGA Ghana (by way of dividend or other capital issuances), but is entitled to attend any general meeting of shareholders.

Tax laws relating to mining

Currently, the main tax laws in Ghana include the following acts and regulations, which have been frequently amended over the years:
•Income Tax Act, 2015 (Act 896) (as amended) and Income Tax Regulations, 2016 (L.I. 2244);
•Customs Act, 2015 (Act 891) (as amended) and Customs Regulations, 2016 (L.I. 2248);
•Value Added Tax, 2013 (Act 870) (as amended) and Value Added Tax Regulations, 2016 (L.I. 2243); and
•Revenue Administration Act, 2016 (Act 915).

The Income Tax Act, 2015 (Act 896) ringfences and taxes income derived from mining operations at the rate of 35 percent. The Obuasi TCA for AGA Ghana provides for a stabilised income tax rate of 32.5 percent. AGA Iduapriem currently pays income tax at the rate of 35 percent.

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

Environmental laws relating to mining

Mining companies are required, under the GMM Act, Environmental Assessment Regulations, 1999 (L.I. 1652) and Water Use Regulations, 2001 (L.I. 1692), to obtain all necessary approvals from the Environmental Protection Agency (the “Ghana EPA”) and, in appropriate cases, the Water Resources Commission and/or the Ghanaian Minerals Commission before undertaking mining operations. This includes undergoing an environmental impact assessment process and, following the issuance of the environmental permit, periodically preparing environmental management plans, which include details of the likely impacts of mining operations on production activities.

Costs benefitted from operating efficienciesthe environment and local communities, as well as a weaker rand/dollar exchange rate, resultingcomprehensive plan and timetable for actions to mitigate and remediate any adverse effects of the mining operations, for submission to the Ghana EPA. The Minerals and Mining (Health, Safety and Technical) Regulations, 2012 (L.I. 2182) also impose further obligations to obtain the necessary permits from the Inspectorate Division of the Ghana Minerals Commission for the operation of mines. The environmental permits for AGA Ghana (for the Obuasi redevelopment project and for the construction and operation of tailings and water infrastructure projects) are valid until November 2022. The environmental permits for AGA Iduapriem (for the re-mining of Block 5 and for the tertiary crusher installation project) are valid until July 2022. Renewal processes for the environmental permits for both mines are underway. The permit for the tailings infrastructure project of AGA Iduapriem is valid until 2023.

Environmental laws in a 19% year-on-year decrease inGhana also require mining operators to rehabilitate land negatively impacted by mining operations according to an environmental cost reclamation plan agreed with the Ghana EPA. The environmental cost reclamation plan includes two cost estimates, namely the cost of sales and a 5% year-on-year decrease in total cash cost. This was partially offset by lower gold output fromrehabilitating the region.

Cost reduction initiatives aimedmining area at calibrating both on- and off-mine cost structures progressed well through the year in line with our focus on Operational Excellence.

All-in-sustaining costs for the region were $1,132/oz (cost of sales $479 million), down 4% despite the headwinds related to production and inflationary pressures. The region successfully delivered on its targeted cost savings initiatives for 2019.

Through our Operational Excellence initiatives, cost and capital management remained a key priority as we continue to maintain asset integrity and safety performance. Project initiatives include a wide array of activities aimed at improving metallurgical recoveries and throughput and cost saving initiatives. Operational Excellence began at Mponeng in 2019 and included working to increase face length availabilities, improve recovery and mine call factors, reduce power consumption, and optimise capital spend.

Capital expenditure

Total capital expenditure for the region was $57 million, compared to $73 million in 2018. This was mainly spent on the completionend of the Phase 1 project, ore reserve development (ORD) work,life of the mine as well as the Mponeng life-of-mine extension feasibility study. Sustaining capital expenditure was spent oncost of rehabilitating the mine as at the date of the reclamation plan. These estimates are reviewed annually and updated every two



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years. Each mining company is typically required to secure a varietypercentage (typically between 50 percent and 100 percent) of stay-in-business projectsthe estimated rehabilitation costs by posting reclamation bonds underwritten by banks and restricted cash. The terms of each reclamation bond are determined by a reclamation security agreement between that company and the rehabilitation workGhana EPA. Both AGA Ghana and AGA Iduapriem have bank guarantees in place for environmental reclamation liabilities as well as escrow accounts with joint signatories from the Ghana EPA. The guarantees for AGA Iduapriem will expire in October 2022, whereas the guarantees for AGA Ghana are valid until December 2022.

Foreign exchange, export and other rules

Retention of foreign earnings

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

Rules regarding the export of gold and diamonds

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

Local assaying and refinement policies

In November 2016, the Ministry of Lands and Natural Resources issued a ministerial directive appointing the PMMC as designated laboratory for assaying in Ghana. The directive requests all persons holding export licences for gold to submit all gold to be exported to the PMMC for assay before export. Mining businesses, including AngloGold Ashanti, acting through the Ghana Chamber of Mines were opposed to this directive due to its potential negative impact on mining companies in the region. As a result, the Chamber initiated proceedings to reverse or modify the directive. Following discussions in respect of the mining industry’s concerns, the Chamber and Government agreed on the modalities for implementing the national assaying policy and it was introduced in February 2018 following a one-month pilot among certain mining companies. Subsequently, in June 2019, the LNR Minister released a statement reiterating the Government of Ghana’s plans to locally refine 30 percent of the gold produced in the country. Discussions between the Ghana Chamber of Mines and the Government of Ghana’s economic management team in 2019 led to the Chamber agreeing to consider the proposal and for the parties to discuss detailed modalities to ensure that a move to locally refined gold does not become detrimental to the mining industry.

Local content and local participation policy

Mining companies must submit a detailed programme for the recruitment and training of Ghanaians with a view to achieving “localisation”, which is the replacement of expatriate personnel in a company’s Ghanaian operations by Ghanaian personnel. In addition, mining companies must give preference to Ghanaian products and personnel, to the maximum extent possible, consistent with safety, efficiency and economies. The Minerals and Mining (General) Regulations, 2012 (L.I. 2173) give further details on the localisation policy. On 15 October 2020, the Minerals and Mining (Local Content and Local Participation) Regulations, 2020 (L.I. 2431) were adopted in order to expand the scope of local content requirements in the mining industry. For example, there are restrictions on the number of expatriates that can be employed by mineral rights holders and mine support service providers in a bid to enhance the participation of Ghanaians in the mining industry.

AngloGold Ashanti’s rights and permits

Obuasi

The Obuasi mine originally held four contiguous mining leases, the Obuasi Mining Lease and the Binsere 1, 2 and 3 Mining Leases. The Obuasi Mining Lease was granted by the Government of Ghana on 5 March 1994, covering an area of approximately 338 km2 in the Amansie East and Adansi West districts of the Ashanti region, for a term of 30 years from the date of the agreement. The Binsere Mining Leases were granted on 9 April 1998, covering an area of 140 km2, for a term of 30 years from the date of the agreement. All leases in respect of the Obuasi mine had been duly ratified in accordance with Ghanaian law. In March 2007, the Government of Ghana agreed to extend the term of the Obuasi Mining Lease for a further term of 30 years. The amended Obuasi Mining Lease was also ratified by Parliament on 23 October 2008. The Obuasi Mining Lease will expire in March 2054 and the Binsere Mining Leases in April 2028. The mining leases are renewable. On 3 March 2016, the Minerals Commission approved AGA Ghana’s application to surrender approximately 273.54 km2 of the area to the Government of Ghana, reducing the lease areas to 201.46 km2. The remaining parcel of land that will be subject to the mining lease is situated within various villages and townships in the region but excludes the municipality of Obuasi. On 15 January 2021, the



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

Iduapriem

The Iduapriem mine operates under four different mining leases: the Iduapriem Mining Lease (LVB1539/89) (36.47 km2), the Ajopa Mining Lease (LVB/WR326/09) (46.12 km2), the Teberebie Mining Lease (LVB3722H/92) (28.53 km2) and the Ajopa South Mining Lease (LR#1109/1999) (28.10 km2). On 17 February 2020, the mining leases were extended for a further period of 15 years and such leases will now expire in February 2035. All leases in respect of the Iduapriem mine have been duly ratified in accordance with Ghanaian law.


Guinea

General laws relating to mining

In Guinea, the mining industry is primarily regulated by Law L/2011/006/CNT dated 9 September 2011 as amended by Law L/2013/053/CNT dated 8 April 2013 and promulgated by Decree D/2013/075/PRG/SGG dated 17 April 2013 (together, the “Guinea Mining Code”).

The Guinea Mining Code is implemented by various decrees and orders, including Decree D/2014/015/PRG/SGG adopting a model of mining convention, dated 17 January 2014, Order A/2016/1584/MMG/SGG related to the Carbon Leader project.administration’s capacities for the management of integrated mining projects (PARCA-GPI) and its steering committee, dated 6 June 2016, and Decree D/2016/163/PRG/SGG on the national agency for the development of mining infrastructures (ANAIM), dated 13 June 2016.


Safety

There were no fatalitiesIn 2017, Decree D/2017/285/PRG/SGG was adopted, which sets forth the conditions for the constitution and management of the Local Development Fund (“Fodel”), as well as Joint Order A/2017/6326/MMG/MATD/SGG, which sets forth the conditions for the use, management and control of the Fodel. Together, these set forth the use of the mining companies’ financial contribution to the development of the local communities and the rules applying to the Fodel, which was created under the Guinea Mining Code. On 13 July 2018, a Joint Order A/2018/5212/MEF/MMG/MB/MATD/SGG was issued, which regulates the use, management and monitoring of the resources allocated to local authorities pursuant to article 165 of the Guinea Mining Code. In 2019, an inter-ministerial committee was created to supervise and control the Fodel through the adoption of Joint Order AC/2019/089/MMG/MATD/SGG setting out the conditions for the constitution, powers and management of said inter-ministerial committee. On 6 September 2019, Decree D/2019/263/PRG/SGG was issued, which sets forth local content requirements in the South Africa regionframework of the implementation of public and private projects in 2019, the region’s safest year on record. The AIFR was10.00Guinea.

On 16 June 2020, a new procedure for the year, an improvement year-on-year. Safety interventions have included changesexport of gold by mining companies was enacted through the adoption of Decree D/2020/113/PRG/SGG, which sets out, amongst other things: (i) when the industrial production tax referred to in planningarticle 161-1 of the Guinea Mining Code shall be paid, and information systems,(ii) the introductionprocess to be followed to export gold bullion.

On 27 April 2021, a Joint Order AC/2021/824/MMG/BCRG/SGG was issued establishing the fees and costs charged by the Guinean mining authorities and the Guinean Central Bank in connection with the administrative procedures for the export of gold by industrial and semi-industrial companies.

AngloGold Ashanti’s rights and permits

The group’s Guinean subsidiary, Société AngloGold Ashanti de Guinée S.A. (“SAG”), has title to the Siguiri mine in the form of a new waymining concession, granted by virtue of Presidential Decree D/97/171/PRG/SGG, dated 4 August 1997, for a period of 25 years (the “Mining Concession”). The Mining Concession covers exploration and mining for gold, silver, diamonds and associated ores, and was originally covered by a changemining convention entered into with the Republic of Guinea in shift arrangements as1993 and amended in 2005. On 28 June 2016, SAG and the Government of November 2018. Regrettably, there have been four fatalitiesGuinea concluded a revised and consolidated mining convention (convention de base révisée et consolidée) (the “Revised Mining Convention”) which encompasses a renewal of the term of the original mining convention and other amendments necessary to support an expansion project to extend the life of the Siguiri mine (the “Expansion”). In compliance with the provisions of the Guinea Mining Code, the Revised Mining Convention was ratified by the Guinean National Assembly (Law L/2016/N°067/AN dated 30 December 2016, promulgated by Decree D/2017/015/PRG/SGG dated 24 January 2017), submitted to the Guinean Supreme Court which rendered a favourable opinion (Judgement N°AC 005 dated 16 January 2017), and ratified by the President of the Republic of Guinea (Decree D/2017/021/PRG/SGG dated 24 January 2017), following which it replaced the original mining convention and became effective on 24 January 2017.








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Key elements of the Revised Mining Convention include the following:

•a duration of 25 years, expiring 23 January 2042, subject to further renewal if mining operations continue;
•the term of the Mining Concession is aligned with the term of the Revised Mining Convention since the Republic of Guinea committed to maintain the Mining Concession for the entire duration of the Revised Mining Convention;
•SAG’s operations remain governed by the 1995 Guinea Mining Code (the prior mining code) and are only subject to the provisions of the Guinea Mining Code to the extent they are expressly set out in the South Africa region post year-end resultingRevised Mining Convention;
•the stability of the customs and tax regime is guaranteed for the entire initial term of the Revised Mining Convention, and subject to certain conditions being met, any renewal period(s);
•the Republic of Guinea holds a 15 percent free-carried/non-contributory interest;
•the Republic of Guinea is entitled to a royalty on gold of 5 percent based on a spot gold price as per LBMA fixing (PM) up until the date of steady state commercial production of the first phase of the Expansion, after which the royalty rate applicable to gold will vary depending on threshold prices as per LBMA fixing (PM), namely: 3 percent if the gold price is $1,300 or less, 5 percent, if above $1,300 and up to $2,000 and 7 percent if above $2,000;
•SAG benefits from 5-year income tax holiday from the beginning of steady state commercial production of the first phase of the Expansion, after which the income tax rate is set at 30 percent;
•a seismic eventlocal development tax of 0.4 percent is payable on the sale price for gold and silver received by SAG up until 31 December 2027, after which it will be increased to 0.6 percent;
•salaries of expatriate employees are subject to a 10 percent income tax;
•goods imported into Guinea for purposes related to the construction and commissioning of the first phase of the Expansion are exempt from all customs taxes and duties; and
•SAG is committed to adopting and progressively implementing a plan for the effective rehabilitation of the mining areas disturbed or affected by its operations.

The Mining Concession covers an area divided into four blocks totaling approximately 1,495 km2. SAG has the exclusive right to explore and mine in any part of the concession area for the duration of the Revised Mining Convention. The Revised Mining Convention also grants SAG the option to secure certain land rights over additional areas currently covered by exploration permits, but to which SAG may need access for purposes of establishing roads or storage of tailings. The Mining Concession is due to expire on 4 August 2022. On 1 February 2022, a renewal request was filed in accordance with the provisions of the Revised Mining Convention. Pursuant to the Revised Mining Convention, the Mining Concession can be renewed for one or more period(s) that cannot exceed 10 years each as long as the Revised Mining Convention is in force.

The Revised Mining Convention is subject to early termination if the parties formally and expressly agree to it, if the last of the mining title held by SAG expires or is relinquished without any renewal application having been filed, if all project activities are voluntarily suspended for a continuous period of 12 months or are permanently abandoned by SAG, or if SAG goes into voluntary liquidation or is placed into liquidation by a court of competent jurisdiction.


Mali

General laws relating to mining

The mining industry in Mali is primarily regulated by Ordinance No. 2019-022/P-RM dated 27 September 2019 containing the new mining code of the Republic of Mali (the “Mali Mining Code”) and Decree No. 2020-0177/PT-RM dated 12 November 2020 implementing the Mali Mining Code. On 8 December 2020, Decree No. 2020-0288/PM-RM enacted the new model mining convention referred to in Decree No. 2020-0177/PT-RM.

The Mali Mining Code applies to the mining operations previously carried out by AngloGold Ashanti entities in Mali (as further described below) except with respect to the validity, scope and duration of their exploitation permits and the provisions on tax and customs regime contained in their mining conventions (conventions d’établissement) for their remaining duration. In this regard, the transitory rules of the Mali Mining Code specify that mining conventions in force remain valid for their remaining term and their holders continue to benefit from the stability of the tax and customs regime set out therein.

Exploration and prospecting activities are carried out under exploration authorisations (autorisation d’exploration) or exploration permits (permis de recherche), which give their holder the exclusive right to carry out exploration activities over a given area. Exploration authorisations are granted by the Mining Administration (Administration chargée des Mines) for a non-renewable period of three months, while exploration permits are granted by Ministerial Order for a period of three years renewable twice for additional 3-year periods. Applications for exploration authorisations and exploration permits must contain various documents attesting to the financial and technical capacity of the applicant as well as a tramming accidentdetailed works and costs programme.

A large scale permit exploitation permit (permis d’exploitation de grande mine) is required to mine a deposit located within the area of an exploration permit and grants the holder an exclusive right to exploit the named substances and proceed with the processing and commercialisation of the substances extracted within its perimeter. Large scale exploitation permits are granted by decree of the Head of Government for a maximum period of 12 years renewable for 10 year-periods until depletion of the deposits. An application must be submitted to the Mining Administration (Administration chargée des Mines) and must contain



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various documents attesting to the financial and technical capacity of the applicant, a feasibility study, a detailed environmental study in respect of the impact of the project on the environment, an environmental permit, a closure and rehabilitation plan as well as a community development plan. As soon as the large scale exploitation permit is granted, the permit holder must incorporate a company under the laws of Mali and assign the permit for free to this company. The State will have a 10 percent free-carried interest in the company. This interest will be converted into priority shares and the State’s participation will not be diluted in case of an increase in capital. In addition, the company is required to ensure that private Malian investors are offered the possibility to acquire 5 percent of their capital.

All mining titles mentioned above (save for the exploration authorisation) require a mining convention (convention d’établissement) to be signed by the State and the titleholder defining their rights and obligations, the duration of which is 20 years.

AngloGold Ashanti’s rights and permits

Historically, AngloGold Ashanti had interests in the Morila, Sadiola and Yatela gold mines, all of which were governed by mining conventions (conventions d’établissement) covering exploration, mining, treatment and marketing in a comprehensive document. These documents include general provisions regarding exploration (work programme, fiscal and customs framework) and exploitation (formation of a local limited liability mining company, State interest, fiscal and customs framework governing construction and exploitation phases, exchange controls, marketing of the product, accounting regime, training programmes for local labour, protection of the environment, reclamation, safety, hygiene and dispute settlement). The Morila and Sadiola gold mines were sold in November and December 2020, respectively.

In April 2017, Société d’Exploitation des Mines d’Or de Yatela S.A. (“Yatela”), the company operating the Yatela gold mine, began the implementation of a closure plan in order to relinquish the property. In February 2019, AngloGold Ashanti and its joint venture partner IAMGOLD Corporation announced an agreement to sell each of their 40% interests in Yatela to the Government of Mali, which holds the remaining 20% interest. Completion of the transaction is subject to the fulfilment or waiver of a number of conditions precedent and has been delayed several times since 2019 due to political instability and related events in Mali as well as the COVID-19 pandemic. Yatela’s exploitation permit covers approximately 212 km2. Yatela has a 30-year permit which expires in 2030.


Tanzania

General laws relating to mining

Tanzania Mining Act and Tanzania Mining Regulations

Mineral rights in the United Republic of Tanzania are principally governed by the Mining Act, Chapter 123 (R.E. 2019), as amended (the “Tanzania Mining Act”) and the Mining Regulations, 2010, as amended (the “Tanzania Mining Regulations”). The Tanzania Mining Act and the Tanzania Mining Regulations came into force in November 2010 followed by amendments to the Tanzania Mining Act in 2017 and subsequent amendments to the Tanzania Mining Regulations in 2018 and 2019. Those amendments, together with an Executive Order, introduced, among other matters, (i) the Tanzania Mining Commission; (ii) local content requirements for procurement of goods and services; and (iii) Mining Licence requirements of 5 percent of a licencee’s equity to be held by Tanzanians, with 80 percent of its managerial positions to be held by Tanzanians and 100 percent of other positions to be held by Tanzanians, in addition to the shareholding of the Government of Tanzania pursuant to Section 10 of the Tanzania Mining Act (i.e. free-carried interest).

Minimum shareholding and public offering

In 2016, the Mining (Minimum Shareholding and Public Offering) Regulations, 2016, as amended, was adopted. The regulations set out the requirement to sell shares to Tanzanian nationals, by way of a public offering and listing on the Dar es Salaam Stock Exchange, which will apply to companies that are carrying out large scale mining operations. The regulations also require all existing holders of a special mining licence to list a minimum of 30 percent of their shares on either the Main Investment Market or the Enterprise Growth Market Segment of the Dar es Salaam Stock Exchange within 6 months of the regulations coming into force, which was on 24 February 2017. However, the company believes the listing requirement conflicts with the mining development agreement. In September 2020, the Government of Tanzania published the Mining (Minimum Shareholding and Public Offering) (Amendment) Regulations, 2020, which exempts companies holding special mining licences from local listing requirements if such mining company has entered into an agreement with the Government of Tanzania that provides for a non-dilutable free-carried interest in such mining company and an economic benefits sharing arrangement.

Arbitration

Along with other major mining companies, AngloGold Ashanti’s subsidiaries are seeking a constructive dialogue with the Government of Tanzania to gain assurances that the Geita gold mine will not be affected by recent legal and fiscal changes adopted by the Government in light of their mining development agreements which guarantee (i) fiscal and regulatory stability,



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and (ii) an agreement between all parties before material legal and regulatory changes are made. As a precautionary step to safeguard its interests, AngloGold Ashanti commenced international arbitration proceedings against the Government of Tanzania in connection with the enactment of this legislation in July 2017. Declaratory relief is sought in accordance with the terms of the company’s existing mining development agreement to preserve its and its shareholders’ rights and interests in the Geita gold mine. AngloGold Ashanti is seeking confirmation from the Government of Tanzania that, as a result of its existing mining development agreement, the company does not fall within the scope of the new mining legislation that includes, among other things, (i) listing requirements; (ii) an increase in the rate of revenue royalties from 4 to 6 percent and a 1 percent clearance fee; and (iii) a right for the Government of Tanzania to (a) renegotiate existing mining agreements at its discretion, (b) receive a non-dilutable, free-carried interest of no less than 16 percent in all mining projects, and (c) acquire up to 50 percent of the Mponeng mine.

Ore Reserve

As at 31 December 2019,shares of the mining company commensurate with the total Ore Reservetax expenditure incurred by the Government in favour of the mining company. AngloGold Ashanti can provide no assurance that the new mining legislation, including the listing requirements, will not apply to its operations in Tanzania and the outcome of the arbitration action may have a material adverse impact on the company’s results of operations and financial condition. See also “Item 8A: Legal Proceedings—Tanzania”.

Categories of mineral right licences

Ownership of and control over minerals on, in or under the land vest in the President of the United Republic of Tanzania. No person is allowed to prospect for minerals or carry on mining operations except pursuant to the South African region was 15.5Moz (2018: 16.8Moz). Thisauthority of a mineral right licence granted, or deemed to have been granted, under the Tanzania Mining Act or its predecessor acts. To enable a company to prospect or mine, the Tanzania Ministry of Minerals (“MEM”) initially grants an exclusive prospecting licence. Upon presentation of a feasibility study, together with certain other environmental, social and financial assurances, the MEM may then grant a form of licence for mining. Three categories of licences can be applied for under the Tanzania Mining Act: licences for exploration, licences for mining, and licences for ancillary activities. Licences for exploration include prospecting licences and gemstone prospecting licences. Licences for mining include special mining licences (if the proposed capital investment is equal to 35at least $100 million), mining licences (if the proposed capital investment is equal to between $100,000 and $100 million) and primary mining licences (reserved for Tanzanian citizens).

A prospecting licence grants the holder the exclusive right to prospect in the area covered by the licence for all minerals within the class of minerals applied for. An application for a prospecting licence is made to the Mining Commission and the licence, once granted, is valid for an initial term of four years. After the initial term, the licence is renewable for a further period of three years, with no option for renewal thereafter. Upon renewal, 50 percent of the Group’s Ore Reserve.area covered by the licence must be relinquished.



THE AMERICAS

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The Americas region has threeMining is mainly carried out through either a mining licence or a special mining licence, both of which confer on the holder the exclusive right to conduct mining operations featuring both open pitin or on the area covered by the licence. A special mining licence is granted for the shorter of either the estimated life of the ore body indicated in the feasibility study report or such period as the applicant may request. The holder of a special mining licence may apply for renewal of its licence at any time but no later than one year before the expiry of the licence and undergroundsuch renewal shall not be for a period exceeding the estimate life of the remaining ore body. Special mining (onelicences have certain fiscal and other advantages over mining licences, as the holder of a special mining licence may enter into a mining development agreement with the Government of Tanzania to guarantee the fiscal stability of a long-term mining project and make special provision for the payment of royalties, taxes, fees and other fiscal imposts. A special mining licence holder may, in Argentinacertain circumstances, unilaterally amend the programme of the mining operations agreed with the MEM.

Tax laws relating to mining

Currently, the main tax laws in Tanzania comprise the Finance Act, 2015 (No. 16), which came into force on 1 July 2015, and twothe Finance Act, 2017 (No. 4), which came into force on 1 July 2017. Both tax laws impose and revise certain taxes, duties, levies and fees. Among other provisions, inspection or clearance fees on the exportation or domestic use of minerals were introduced. Such exportation or domestic use is restricted unless such minerals have been inspected or cleared at the mining areas, ports, airports, border or posts and the clearing fee of 1 percent of the gross value of the minerals has been paid by the exporter or any other person in Brazil)possession thereof. Local government levies and environmental management fees and charges apply as well.

Effective 20 July 2017, the Value Added Tax Act, 2014 (No. 5) (the “VAT Act”) was amended in order to restrict VAT relief for VAT input tax paid by mining companies on goods and services. Prior to the enactment of this amendment to the VAT Act, mining companies were entitled to 100% VAT relief in respect of the goods and services they purchased. The amendment prohibits refunds for VAT input tax incurred on a series of raw products, including the exportation of “raw minerals”. Subsequently, the Tanzania Revenue Authority (“TRA”) denied our applications for VAT input credit refunds, which amounted to a total of $142 million (after discounting provisions) as of 31 December 2021, covering the period from July 2017 onwards, on the basis that all of the gold doré that we export constitutes “raw minerals” for purposes of the VAT Act. In response, the company filed formal notices of objection with the TRA stating that the exportation of gold doré is, in its view, not covered by the restriction since doré does not fall within the category of “raw minerals” as used in the VAT Act. On 22 February 2019, the Tanzania Mining Act was amended to introduce a definition for “raw minerals” which supports our interpretation that gold doré is excluded from the prohibition. On 1 July 2020, the Finance Act, 2020 (No. 8), amended the VAT Act, without retrospective effect, in order to remove the restrictions on VAT input tax credits for the exportation of “raw minerals” as well as two advanced greenfields projectsa series of other raw products. This recent amendment confirms the technical basis for VAT input tax recovery for mineral exporters from July 2020 onwards. VAT claims from July 2020 onwards are subject to verification procedures by the TRA before any refunds will be received. In 2021, the



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company was able to offset $54 million of verified VAT claims (from July 2020 onwards) against its corporate tax liability in Colombia.
 
Attributable gold production
(000oz)

 
Average number of  
employees  

Operations   
  1.     Argentina
   
Cerro Vanguardia (Attr. 92.5%)225
 1,698
  2.    Brazil
   
AGA Mineração362
 4,885
Serra Grande123
 1,531


Americas - Key Statistics
 Unit 2019
 2018
 2017
Operation       
Tonnes treated/milledMt 7.2
 6.8
 7.5
Pay limitoz/t 0.11
 0.12
 0.10
 g/t 3.79
 4.14
 3.58
Recovered gradeoz/t 0.089
 0.103
 0.102
 g/t 3.04
 3.55
 3.49
Gold production (Attributable)000oz 710
 776
 840
Silver (attributable)Moz 3.4
 5.9
 5.8
Cost of sales$m 822
 838
 987
Total cash costs (1)
$/oz 736
 624
 638
All-in sustaining costs (1)
$/oz 1,032
 855
 943
Capital expenditure (2)
$m 195
 176
 234
Safety       
Number of fatalities  0
 1
 0
AIFRPer million hours worked 3.50
 3.97
 3.29
People       
Average no of employees: Total  8,114
 7,973
 8,511
Permanent employees  5,869
 5,755
 5,888
Contractors  2,245
 2,218
 2,623

(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.

Production and costs

Total productionTanzania. Discussions with the TRA are ongoing to resolve our historical claims for VAT input credit refunds for the Americas regionperiod from July 2017 to June 2020.

Natural resources, export and other rules

Natural resources legislation

In Tanzania, two laws in 2019 declined 8%respect of natural resources came into force in July 2017: the Natural Wealth and Resources Contracts (Review and Re-negotiation of Unconscionable Terms) Act, 2017 (No. 6) (the “Unconscionable Terms Act”) and the Natural Wealth and Resources (Permanent Sovereignty) Act, 2017 (No. 5) (the “Permanent Sovereignty Act” and together with the Unconscionable Terms Act, the “Natural Resources Laws”). Implementing regulations were published in January 2020. The Natural Resources Laws provide that Tanzania has sovereignty over its natural resources and that all arrangements or agreements that relate to 710,000oz compared“natural wealth and resources” are subject to 776,000ozreview by the National Assembly to ensure that they are in 2018,the interests of the people of Tanzania. During a review all unconscionable terms as interpreted in accordance with the law are expunged from the agreement. In addition, under the laws, disputes over natural wealth and resources will not be subject to any proceedings in any foreign court or tribunal. As a result, of production declines atinvestors are restricted from accessing international dispute resolution mechanisms. Accordingly, companies are now required to adopt Tanzanian law and local dispute resolution in all three operations.

At AGA Mineração, performance at Cuiabá was hinderedmining agreements. As such, all disputes will be handles by poor ground conditions where,Tanzanian judicial bodies or any other Tanzania government body vested with powers to resolve disputes. In addition, to ensure safe production,that the rateGovernment and the people of Tanzania obtain an equitable stake in the exploitation of mining was slowed whileresources, all project earnings must be retained in Tanzanian banks. Investors are also prevented from freely exporting raw minerals and repatriating funds.

Section 6 of the Unconscionable Terms Act specifically provides that where there is an unconscionable term, the National Assembly may pass a new surface supportresolution for re-negotiation of the agreement whereupon the Government shall serve notice to the investor to re-negotiate the term or agreement. The Government and the particular investor have 90 days from the notice date to re-negotiate the term or agreement. If both parties fail to revise the unconscionable term, the term will be deemed removed from the agreement. A term is considered “unconscionable” under the Unconscionable Terms Act if, among other grounds, the requirements or provisions of the agreement restrict the right of the state to exercise authority over foreign investment within the country and in accordance with the laws of Tanzania, are inequitable and onerous to the state, secure preferential treatment designed to create a separate legal regime and mining sequencing were explored. Leading internal and external rock engineering experts were engaged to advise and subsequently mesh surface support installed to rehabilitate accessways and new controls and mine sequencing were introduced. Early indicators show these new controls to be successfulapplied discriminatorily for the benefit of a particular investor, deprive the people of Tanzania of the economic benefits derived from subjecting natural wealth and condition monitoring will continue as mining progressesresources to beneficiation in the deeper, higher grade areas.country, or subject the state to the jurisdiction of foreign laws and foreign courts or tribunals.


AtLocal participation policy

On 15 September 2015, the Córrego do Sítio complex, geological model changes,Non-Citizens (Employment Regulation) Act, 2015 (No. 1) (the “Non-Citizens Act”) came into force which vests powers concerning work permits with the Labour Commissioner. Therefore, non-citizens wishing to be employed in the country are required to apply and be granted a work permit before applying for a residence permit. Before granting the work permit, the Labour Commissioner must be satisfied that all efforts have been explored to acquire a local expert. Further, the company is required to submit a succession plan which sets out a well-articulated plan for the transfer of the non-citizen’s knowledge and expertise to Tanzanian citizens. Moreover, the Commissioner General of Immigration is required to take into consideration conditions of the work permit issued by the Labour Commissioner when granting a residence permit.

AngloGold Ashanti’s rights and permits

The Geita gold mine is located in the Lake Victoria goldfields of the Mwanza region of Tanzania. AngloGold Ashanti has concluded a mining development agreement with the Ministry of Minerals on 24 June 1999 and was issued a special mining licence (SML45/99) covering approximately 196 km2 for a period of 25 years, which expires on 26 August 2024. On 9 October 2014, an addendum to the mining development agreement was entered into ratifying, among other matters, an increase in the royalty rate from 3 percent to 4 percent with effect from 1 May 2012. In March 2020, Geita Gold Mining Limited received the consent of the Minister of Minerals to change the mining method under its special mining licence from open pit to underground method, subject to the requisite terms and conditions. Within the special mining licence delays for the Rosalino orebody, geotechnical issues and unexpected heavy rainsarea, there are also seven primary mining licences of approximately 0.63 km2 in total which belong to third parties. Furthermore, Geita Gold Mining Limited holds prospecting licences covering (i) an area of 120 km2 in the last two monthsimmediate vicinity of the year delayed developmentits special mining licence area, and mining(ii) an area of the planned open pit mining areas.

At Serra Grande, the slightly lower production level in 2019 was due to lower feed grades, particularly690 km2 located in the second halfDodoma, Singida and Shinyanga regions, but none of the year, and reduced drilling productivity and fleet availability. This was partially offset by higher tonnage treated following the Mina III pushback.these areas contain any Mineral Reserve. All licenses are in good standing.


Cerro Vanguardia’s production was negatively affected in the second half of the year by the planned lower grades mined and a 42% decline year-on-year in silver production. This was partially compensated for by higher average silver price.

Cost of sales for the region for the year were $822 million in 2019 (2018: $838 million). The total cash cost for the region for the year was $736/oz in 2019 (2018: $624/oz) and AISC were $1,032/oz (2018: $855/oz). The increased costs were largely due to the decline in ounces sold, reduced silver by-product revenue from Cerro Vanguardia and inflation. The inflationary pressures which affected both Argentina and Brazil, included increases in wages, operational materials, this coupled with impact of changes in the estimation of rehabilitation provisions estimation for the Brazilian operations as required by the new legislation. This was slightly offset by weaker currencies (Argentinean peso and Brazilian real).

Capital expenditure

Total capital expenditure for the region was $195 million, compared to $176 million in 2018, with the increase largely driven by higher spend in Colombia on feasibility study work at Quebradona. Sustaining capital expenditure was spent mainly on Ore Reserve development at underground operations in Brazil and Argentina. At Cerro Vanguardia, capital expenditure for the year was spent primarily on development work and larger trucks to increase hauling and loading capacity, and to ultimately improve productivity.

Serra Grande is our only operation in Brazil with an upstream TSF. Following implementation of new legislation in Brazil, the current dam, which has a reinforced wall, will be converted to dry stacking. As this was part of the mine plan, the process will be accelerated and decommissioning is expected to begin in September 2021.

Safety

There were no fatalities in the Americas region in 2019. Safety improved overall with an AIFR of 3.84 recorded for the year.

Ore Reserve

At the end of 2019, the total attributable Ore Reserve for the Americas region was 7.2 million ounces (2018: 7.1 million ounces). This is approximately 17 percent of the group’s total Ore Reserve.

Growth and improvement

In Brazil, the strategy is to enhance mining flexibility and predictability by investing in Ore Reserve development, along with Mineral Resource and Ore Reserve conversions. More brownfields exploration is planned to increase reserves and related confidence levels. This work will be vital in the upcoming year.

During 2019, Serra Grande transitioned to full owner development and development metres achieved increased by 10% compared to 2018 levels. At Cuiabá a new international contractor in the Brazilian market was signed on in March 2019 and has to date delivered a 28% year-on-year increase in metres developed.

Cuiabá is also investigating the potential of new orebodies and a plan for deepening the mine. At Córrego do Sítio (CdS) the focus is to re-open the CdS II underground mine. Along with a focus on resource conversion and stabilising production, Córrego do Sítio will invest in looking at the potential of CdS III and the Rosalino open-pit expansion.

At Serra Grande, Palmeiras South underground mine is expected to commence delivering ounces in the first half in 2020.

In Argentina, Cerro Vanguardia, which has been in operation for over 20 years, is expected to see a reduction in grades from the open pit mines and lower contributions from silver compared to the previous years’ levels. To sustain the production plan, exploration will focus on converting new and already existing blue sky tangible and Inferred Resources into Indicated category around current pits and underground operations in the main production zone. The exploration plan includes 25,000m of diamond drilling hole campaign, channels, trenches and geophysics surveys, among others.



AUSTRALIA


australia.jpgGeneral laws relating to mining

In Australia, with a few exceptions, all onshore minerals are owned by the Crown. The respective Minister for each state and territory is responsible for administering the relevant mining legislation enacted by the states and territories.



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Attributable gold production
(000oz)

 
Average number of  
employees  

Operations   
Australia   
1.   Sunrise Dam254
 570
2.   Tropicana 70%360
 570
AngloGold Ashanti’s Australian assets compriseNative title legislation applies to certain mining tenements within Australia. Australia recognises and protects a form of native title that reflects the wholly owned Sunrise Damentitlement 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 70 percent-owned Tropicana Gold mine locatedNative 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 north-eastern goldfieldsgrant 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.
Australia - Key Statistics
At Sunrise Dam, one mining lease (M39/1116) covers the deposit and mine infrastructure (approximately 7,808 hectares) and another mining lease (M39/1117) covers the water extraction infrastructure used to supply the operation with water (approximately 1,768 hectares). Both leases are currently in good standing, with expiry dates in 2038.




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 Unit 2019
 2018
 2017
Operation       
Tonnes treated/milledMt 10.1
 9.5
 9.4
Pay limitoz/t 0.06
 0.07
 0.06
 g/t 1.95
 2.10
 1.84
Recovered gradeoz/t 0.060
 0.065
 0.061
 g/t 1.87
 2.01
 1.89
Gold production (attributable)000oz 614
 625
 559
Cost of sales$m 632
 622
 551
  Total cash costs (1) 
$/oz 730
 762
 743
  All-in sustaining costs (1)
$/oz 990
 1,038
 1,062
Capital expenditure$m 149
 156
 153
Safety       
Number of fatalities  0
 0
 0
AIFRPer million hours worked 7.33
 9.14
 8.53
People       
Average no of employees: Total  1,140
 1,051
 974
Permanent employees  249
 238
 226
Contractors  891
 813
 748
The Butcher Well joint venture has security of tenure for all current exploration licences and for the contiguous mining leases that covers its Mineral Resource. There are three mining leases: mining lease (M39/165) which covers 602.35 hectares with expiry date in 2030, mining lease (M39/166) which covers 990 hectares with expiry date in 2030 and mining lease (M39/230) which covers 446.4 hectares with expiry date in 2032.


At Tropicana, the deposit is situated upon a single mining lease (M39/1096) covering approximately 27,228 hectares, which is currently in good standing, with an expiry date in 2036.

AngloGold Ashanti Australia Limited is also conducting early stage exploration activities in Queensland under the Mineral Resources Act 1989 (QLD). AngloGold Ashanti holds 11 exploration permits covering 215,300 hectares. Each permit is granted with an initial term of five years, renewable for two further periods of not more than five years each.


AMERICAS

Argentina

General laws relating to mining and land ownership

Mining regime

The Argentinean Mining Code governs mining activity in the country. Special regimes exist for hydrocarbons and nuclear minerals. In the case of most minerals, the Argentinean Mining Code establishes that the owner of the land is not the owner of the mineral rights; these are held by the national or provincial governments (depending on the location of the minerals). The national or provincial government, as applicable, is required by the Argentinean Mining Code to grant whomever discovers a new mine title to the mining concession.

The Argentinean Mining Code regulates exploration permits as well as mining concessions, or exploitation rights. Exploration permits grant their holders exclusivity rights to any mineral discoveries, including those made by a third party within the exploration area covered by the permit. Exploration permits are limited in time and as to the extent of the exploration area, are subject to the payment of a single-time fee, and also require a minimum exploration work programme and schedule to keep the permit in force. Priority for receiving a mining concession is given to the registered discoverer of the mine, which holds the exploration permit. Once the application for a mine has been submitted, the applicant may commence works and must submit a legal survey of the units requested for the new mine. The application and the legal survey may be opposed by third parties following specific proceedings set forth in the Argentinean Mining Code. Approval and registration of the legal survey by the provincial mining authority constitutes formal title to the mining concession.

Holders of mining concessions must comply with three main conditions: payment of an annual fee, investment of a minimum amount of capital, and the carrying out of a reasonable level of exploitation. Failure to do so could lead to forfeiture of the mining concession, which would then revert back to the Province.

In addition to the Argentinean Mining Code, between 1993 and 1995, Argentina implemented several federal laws to offer foreign companies attractive incentives for exploration and mining in Argentina, the Mining Investment Law (Law No. 24, 196), as amended (the “Mining Investment Law”), and related legal provisions being the most important one. Such incentives include, among other matters, import duty exemptions, accelerated depreciation of fixed assets, a 3 percent cap on provincial royalties set at pit-head value on the mineral extracted, value added tax refunds for exploration-related expenses incurred by companies registered under the Mining Investment Law, and, subject to the filing of a feasibility study for the relevant mining project, a 30-year stability as to the tax burden on the project and the customs and foreign exchange regimes and duties. Cerro Vanguardia S.A. (“CVSA”) obtained its tax, customs and foreign exchange stability certificate in 1996.

Glacier Law

On 30 September 2010, the National Law on Minimum Requirements for the Protection of Glaciers (Law No. 26, 639) (the “Glacier Law”) was enacted in Argentina, banning new mining exploration and exploitation activities on glaciers and “peri-glacial” areas. The Glacier Law establishes a broad definition of “peri-glacial” areas that, together with glacial areas, must be surveyed by an existing national government agency specifically appointed to this end every five years. The area where the Cerro Vanguardia project is located does not include any glaciers or peri-glacial areas according to the inventory of glaciers which was published in June 2018.

Rural Land Law

On 27 December 2011, the Argentinean National Congress passed a law on the Regime for Protection of National Domain over Ownership, Possession or Tenure of Rural Land (Law No. 26, 737) (the “Rural Land Law”) which implemented a set of rules restricting the ownership of rural land by foreigners (including foreign individuals or any kind of legal entity controlled by foreign individuals or legal entities). The main restrictions are as follows: (i) foreigners cannot own in the aggregate more than



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15 percent of the entire rural land of Argentina, the same cap being applicable to each Province and Municipality; (ii) foreigners will not be allowed to purchase more than 1,000 hectares in the so-called “zona núcleo”, which comprises the main agricultural areas of central Argentina or an “equivalent” surface depending on the location of the land and its productive potential; and (iii) foreigners will not be allowed to buy land that contains, or is adjacent to, relevant and permanent water bodies (such as rivers and lakes). Although exploration permits and mining concessions are not the subject matter of the restrictions placed by the Rural Land Law, certain rights granted to foreign mining companies under the Argentinean Mining Code may be restricted by this new law. For example, the right that holders of mining concessions currently have to force the surface owner to sell the land to the holder of the mining concession might be restricted if the concession holder is a foreign individual or a legal entity controlled by foreigners.

Federal Mining Agreement

On 13 June 2017, the national government and the provinces in whose territories the main mining projects of Argentina are located, signed the New Federal Mining Agreement (“FMA”). The purpose of the FMA is, amongst other things, to increase provincial revenues from the mining industry by creating legal entities owned by provincial governments that would work in association with private mining companies. This scheme is not new in Argentina and it has been used by some provincial governments, amongst them the Santa Cruz Province (through Fomicruz), in which the Cerro Vanguardia project is located. The FMA also contemplates other forms of revenues such as the formation of special trusts to be funded by mining companies to finance education, health and other programmes. Additionally, the FMA included setting forth mining royalties up to three percent of the gross value of commercialised minerals, without any deductions other than VAT. As the FMA has not yet been converted into law by the National Congress, its provisions are neither binding nor enforceable.

In Argentina, the current regulatory regime of royalty payments is expected to change and several different options and payment thresholds have been discussed. In December 2012, the Santa Cruz Province changed the mining royalty from one percent to three percent calculated at pit-head value of the mineral extracted thus bringing it to the cap of the Mining Investment Law.

Foreign exchange and export rules

Foreign exchange controls

On 1 September 2019, by means of Executive Decree No. 609/2019 (the “Export Controls Decree”), the Argentinean national government reinstated foreign exchange and export controls. The Export Controls Decree and related regulations of the Central Bank of Argentina impose, among other measures, the obligation of Argentinean residents to transfer to Argentina and/or sell for Argentinean pesos in the Argentinean foreign exchange market (mercado de cambios) the countervalue (contravalor) from their exports of goods within a specified period. The export of goods is regulated by Communication “A” 6882 of the Argentinean Central Bank (as modified) which establishes the specific regulatory requirements to implement the measures adopted by the national government in this area. Prior approval of the Argentinean Central Bank is generally required to access the foreign exchange market for transactions relating to the outflow of funds, except in certain circumstances. Until 30 June 2022, prior approval from the Argentinean Central Bank is not required for payments in connection with the import of goods if certain conditions are satisfied.

CVSA had a cash balance equivalent to $139 million at 31 December 2021. During 2021, AngloGold Ashanti received offshore dividends in a total amount of $19 million (net of withholding taxes) paid in US dollars. Out of the $139 million (equivalent) cash balance, monies equivalent to $131 million are available to be paid to AngloGold Ashanti’s offshore and onshore investment holding companies in the form of declared dividends. Applications have been made to the Argentinean Central Bank to approve the purchase of US dollars in order to distribute an offshore dividend of $114 million to AngloGold Ashanti. While the approval is pending, the cash remains fully available for CVSA’s operational requirements.

Export duties

On 21 December 2019, the National Law on Social Solidarity and Productive Reactivation (Law No. 27, 541) (the “Solidarity Law”) was enacted. The Solidarity Law granted the national government power until 31 December 2021 to impose export duties which may not exceed certain caps. For example, the Solidarity Law provides that export duties on mining exports cannot exceed 8 percent of the taxable value or official FOB price. On 2 October 2020, the national government published Decree No. 785/2020 (the “Export Duties Decree”) which sets an export duty rate of 8 percent for certain goods, including doré bars and gold alloys, and revoked the provisions of Decree No. 793/2018 which had previously set the export duty at 12 percent ad valorem. While the Export Duties Decree was set to expire at the end of 2021, on 31 December 2021, the national government published Decree No. 908/2021, extending the deadline of export duties on certain goods, including doré bars and gold alloys, until 31 December 2023. It is uncertain whether the national government is empowered to extend such deadline beyond the date set forth in the Solidarity Law. These export duties, if not compensated with other tax reductions, affect the tax stability guarantee granted to CVSA in 1996 in light of the fact that at the time export duties were zero percent.

On 26 February 2019, the Argentinean tax and mining authorities published a resolution (RC 4428/2019) establishing an administrative procedure to be followed to obtain the reimbursement or compensation of federal taxes paid in excess of the total tax burden provided for by the applicable tax stability guarantee. CVSA initiated this new procedure to claim compensation for



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the export duties it paid in 2018 and 2019 as export duties are not contemplated by its tax stability guarantee. Prior to the publication of RC 4428/2019, CVSA had already submitted to the tax authorities claims for reimbursement of the export duties it paid from 2008 to 2015.

Pursuant to the new administrative procedure, the National Mining Secretariat issued favorable opinions regarding CVSA’s claims in respect of fiscal years 2018 and 2019, which amounted to approximately $3.5 million and $10.8 million, respectively, as of 31 December 2021. These claims are currently under review by the relevant customs authorities. On 14 July 2021, CVSA submitted its claim in respect of fiscal year 2020, which amounted to approximately $21.4 million as of 31 December 2021. The National Mining Secretary has not yet issued an opinion regarding this claim. CVSA expects to submit its claim in respect of fiscal year 2021 in due course.

Furthermore, CVSA has requested the tax authorities to apply the procedure provided for in RC 4428/2019 in respect of its historical claims for fiscal years 2008 to 2015 during which the imposition of export duties also exceeded CVSA’s total tax burden under its tax stability guarantee. However, these claims, which amounted to approximately $5.3 million as of 31 December 2021, are still being reviewed under the rules to challenge export duties instead of the new procedure provided for in RC 4428/2019. CVSA has appealed the application of those rules and a decision on this issue is pending.

In total, AngloGold Ashanti’s net export duty receivables (after discounting provisions) in Argentina amounted to $19 million as of 31 December 2021.

Environmental laws relating to mining

Any mining company wishing to commence or modify any mining-related activity, as defined by the Argentinean Mining Code, including prospecting, exploration, exploitation, development, preparation, extraction, and storage of mineral substances, as well as property abandonment or mine closure activity, is required to prepare and submit to the competent provincial environmental authority an Environmental Impact Assessment (“EIA”) prior to commencing the work. Each EIA is required to describe the nature of the proposed work, its potential risk to the environment, and the measures that will be taken to mitigate that risk. If accepted by the competent authority, the EIA is used as the basis to create a Declaration of Environmental Impact (“DEI”) to which the mining company is required to adhere during the mining-related activity at issue. The DEI is required to be updated at least on a biannual basis. Sanctions and penalties for non-compliance with the DEI are outlined in the Environmental Protection section of the Argentinean Mining Code, and may include warnings, fines, suspension of quality certifications, restoration of the environment, temporary or permanent closure of activities, and withdrawal of authorisation to conduct mining-related activities.

AngloGold Ashanti’s rights and permits

The mining concession holder of Cerro Vanguardia, the company’s operation in Argentina, is AngloGold Ashanti’s partner, Fomento Minero de Santa Cruz S.E. (“Fomicruz”), which is wholly owned by the Santa Cruz Province. On 27 December 1996, Fomicruz entered into a usufruct agreement whereby CVSA was granted an irrevocable right to exploit the Cerro Vanguardia deposit (encompassing an area of approximately 543 km2) for a 40-year period. The mining licence (402642/CV/97), which covers the full Mineral Reserve, expires on 26 December 2036. CVSA is a corporation incorporated in Argentina indirectly controlled by AngloGold Ashanti (92.5 percent), with Fomicruz as minority shareholder (7.5 percent). On 14 August 1996, CVSA obtained its tax, customs and foreign exchange stability certificate, which expires in 2026.

Brazil

General laws relating to mining and land ownership

The Brazilian Constitution of 1934 states that, for purposes of exploration and exploitation, deposits and other Mineral Resources constitute property separate from the soil and belong to the Federal Union. Exploration and exploitation of such Mineral Resources may take place only with the Federal Union’s concession and in such a way as to protect the national interest. Federal law sets out penal and administrative sanctions for conduct and activities deemed harmful to the environment.

In Brazil, the National Mining Agency (“ANM”) is the state body within the Mines and Energy Ministry (“MME”) that is responsible for: (i) the registration of mining titles, (ii) the grant of authorisations and concessions, (iii) the supervision of mining activities and mining titleholders, and (iv) the issuance of supplementary rules in relation to mining activity.

Under the current Brazilian Mining Code, there are two kinds of mines: (i) claimstake mines (minas manifestadas), for which rights were acquired before 1934 and exist independently of any mining licence or authorisation from the Federal Government and for which the Mineral Resources constitute property of the landowner, and (ii) granted mines, which are those that rely on grants from the Federal Government for mineral exploration or exploitation (pursuant to the Brazilian Constitution of 1988). AngloGold Ashanti’s operations in Brazil consist of both claimstake mines and granted mines.

Mining activities in granted mines must be performed in two defined stages: (i) exploration, which entails defining and evaluating the deposit and determining the feasibility of exploitation, and (ii) exploitation, which involves coordinating operations aimed at the industrial exploitation of the mineral deposit, from the extraction of useful minerals to their processing. Exploration



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authorisations issued by ANM are valid for one to three years. Extensions can be obtained if necessary, as long as it is justified. In contrast, exploitation rights, once granted, are valid for the lifetime of the deposit, provided the mining titleholder complies with all legal requirements. Pursuant to these requirements, for example, titleholders must (i) start work on mineral exploitation within six months from the date of publication of the Exploitation Concession, (ii) continue their mining activities until the mineral deposit has been exhausted, in accordance with the Economic Exploitation Plan (Plano de Aproveitamento Econômico) approved by ANM, and (iii) refrain from suspending mining activities without prior notice to ANM.

Tax laws relating to mining

During the exploration period, the mining titleholder has to pay an Annual Rate per Hectare (Taxa Annual por Hectare or “TAH”), subject to a maximum value set by law. In the exploitation period, regardless of the legal regime governing the project (whether claimstake or granted mines), the mining titleholder has to pay the Financial Compensation for Exploiting Mineral Resources (Compensação Financeira pela Exploração Mineral or “CFEM”). The CFEM which is 1.5 percent for gold is currently calculated based on revenues.

At the end of 2011 and the beginning of 2012, the states of Minas Gerais, Pará, Amapá and Mato Grosso do Sul each created a new “inspection and control” tax (duty) on extraction and exploration activities as well as on the use of Mineral Resource carried out in those states. In the state of Minas Gerais, gold ore and silver ore are exempted from the collection of this new duty. At the end of 2020, the state of Goiás created a new “inspection and control” tax (duty) on extraction and exploration activities carried out in this state, which currently still needs to be implemented. The constitutionality of these “inspection and control” taxes has been challenged by the National Industry Confederation and the matter is currently pending before the Supreme Court of Brazil.

Environmental laws relating to mining

Following the catastrophic failure of a tailings storage facility (“TSF”) at the Córrego do Feijão iron ore mine owned by Vale at Brumadinho in the state of Minas Gerais in Brazil in January 2019, executive, legislative and judiciary bodies, both at the federal and state levels, have generally increased scrutiny of mining operations in Brazil, and of TSFs in particular, and have been considering, and in some cases have adopted, stricter laws and regulations applicable to the approval, licensing, construction, management, closure and decommissioning of TSFs in Brazil.

At the federal level, the ANM issued Resolution No. 13/19 in August 2019 (replacing its earlier Resolution No. 4/19) which adopted additional regulatory measures to ensure the stability of TSFs, in particular those built or heightened by the upstream method or by any method declared as “unknown”. Among other things, ANM Resolution No. 13/19 prohibits the upstream method for the construction or heightening of tailings dams throughout the national territory of Brazil. It further requires operators to cease all storage and disposal activities at TSFs (known as “deactivation” or “desativação”) constructed or heightened upstream or by an “unknown” method by 15 September 2021 as well as to decommission such TSFs by 15 September 2022 to 15 September 2027 (depending on the capacity volume). To comply with the terms of ANM Resolution No. 13/19, the Serra Grande tailings dam in the state of Goiás must be decommissioned by 15 September 2025. The Serra Grande mine completed the process of reinforcing the dam walls of its upstream TSF, deactivating the TSF and migrating to dry-stacking operations, each by the 15 September 2021 deadline.

Furthermore, Federal Law No. 14.066/20, adopted in October 2020, also imposes requirements on companies to decommission upstream TSFs, including the Serra Grande tailings dam, by 25 February 2022 (which date is earlier than required by ANM Resolution No. 13/19). However, Federal Law No. 14.066/20 does permit extensions of the compliance deadline, with the consent of the ANM based on the technical plan for decommissioning. Serra Grande has submitted timely requests to obtain an extension of the compliance deadline until 2025 in line with the timeline set forth in ANM Resolution No. 13/19 and presented its technical plan for decommissioning. Feedback from the ANM on these requests is currently awaited. With respect to downstream (or “centerline”) TSFs, Federal Law No. 14.066/20 requires companies, to the extent that communities are located in the self-rescue zone of those TSFs, to implement one of the following measures for such structures: either (i) the structure must be deactivated and decommissioned, (ii) the population must be relocated, with reparations for loss of cultural heritage, or (iii) reinforcement works that guarantee the effective stability of the structure must be carried out, by decision of the public authorities, taking into account the previous nature of the dam in relation to the occupation and technical-financial viability of the alternatives. Even if reinforcement works are completed, deactivation and decommissioning of those TSFs will be required at the end of the life of the mine. All of the TSFs operated by AngloGold Ashanti in Brazil have communities located in self-rescue zones.

AngloGold Ashanti is planning to transition to dry-stacking operations for tailings storage at each location in Brazil in the near term. Capital expenditures required in 2021 to implement this new technology amounted to approximately $140 million. Capital expenditures for this work during the period 2022-2025 are expected to be material but, based on preliminary estimates to date, AngloGold Ashanti anticipates that annual expenditures for each of these years will be significantly less than in 2021 and will decline over time. Neither ANM Resolution No. 13/19 nor Federal Law No. 14.066/20 requires removal of all tailings material in connection with the decommissioning of TSFs (a process known as “decharacterisation” or “descaracterização”).






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At the state level, the state legislator in the state of Minas Gerais adopted Law No. 23.291/19 in February 2019 which contained the state’s policy on TSF safety and should be implemented in conjunction with the equivalent federal policy. Among other things, Law No. 23.291/19 determines the criteria for licensing and inspecting TSF structures, prohibits TSFs constructed or heightened using the upstream method, establishes bond requirements and holds management liable for non-compliance with its provisions. The government of Minas Gerais adopted several decrees in furtherance of this legislation.

On 16 February 2022, the ANM issued Resolution No. 95/22, which was rectified on 18 February 2022 and became effective on 22 February 2022. ANM Resolution No. 95/22 effectively consolidates prior federal resolutions on TSFs, including ANM Resolution No. 13/19 and establishes new criteria for the operational management of TSF structures, changes the criteria related to the risk classification of TSF structures and emergency levels and imposes deadlines for compliance with obligations, in addition to setting new criteria for suspension, embargo and interdiction of TSF activities.

Further amendments to the regulatory requirements in Brazil governing such TSFs and related dams may be adopted in 2022.

AngloGold Ashanti’s rights and permits

At AGA Mineraçao, Cuiabá has a single mining concession (No. 000.323/1973) covering a total area of 3,662 hectares. In February 2022, two additional mining concessions for Cuiabá (Nos. 830.937/1979 and 831.027/1980) were published, which cover an additional area of 816.2 hectares. Lamego has a single mining concession (No. 932.710/2017) covering a total area of 1,622 hectares. Córrego do Sítio is hosted by five geographically contiguous mining concessions (i.e., Nos. 930.556/2000, 930.181/2008, 830.129/1982, 833.472/2003 and 830.943/1979) covering a total area of 6,017 hectares.

At Serra Grande, the company has interests in or agreements over 25,719.94 hectares in the Crixás greenstone belt, representing approximately 87 percent of the relevant tenements that correspond to all current exploration and mining activities. These have been held since 1987. The mining concessions include mining concession No. 002.286/1935 covering an area of 4,206.88 hectares, mining concession No. 960.658/1987 covering an area of 1,946.89 hectares, mining concession No. 860.746/2005 covering an area of 88.28 hectares, mining concession No. 862.103/1994 covering an area of 125.41 hectares and mining concession No. 804.366/1975 covering an area of 196.05 hectares.

All of the company’s mining concessions in Brazil are currently active, in good legal and operational standing, and free of liabilities and/or major obligations. Brazilian mining concessions remain valid up to the depletion of the Mineral Reserve and Mineral Resource pursuant to the Economic Exploitation Plan approved by the ANM and in accordance with the required environmental permits, and as a result do not have an explicit expiry date.


Colombia

General laws relating to mining and land ownership

General regime

The Colombian Constitution declares that the sub-soil and the non-renewable natural resources located within the Colombian territory are the property of the Colombian State. The underlying principle of Colombian mining legislation for the granting of mining concession contracts over free areas is first in time, first in law. Mining activities are regulated by the Colombian Mining Code, Act 685, 2001.

The filing of an exploration and exploitation proposal triggers a right of preference to obtain rights over the targeted area, provided it is available. Such area cannot exceed 10,000 hectares. Upon receipt of a proposal, the relevant government agency determines whether another proposal or contract already governs the area. If there are no pre-existing claims, the government agency grants the applicant a “free area”.

With respect to land ownership, a mining concession in Colombia does not grant the rights over the surface required to develop a mining project. Therefore, in order to develop a mining project, it is required to acquire and secure access to the land (soil). This can be achieved in several ways, such as (i) purchase of the land, (ii) a transit easement, (iii) a mining easement, and (iv) the special acquisition process or expropriation.

Concession contract

As the sub-soil and the non-renewable natural resources located within the Colombian territory are property of the Colombian State, the Colombian Mining Authority (Agencia Nacional de Minería) grants the authorisation to explore and exploit minerals through a concession contract.

Such concessions allow concessionaires to conduct the studies, works and facilities necessary to establish the existence of minerals and to organise their exploitation. Upon being awarded a mining concession, a company must take out an insurance policy to cover the costs associated with potential environmental damage as well as breaches of its mining obligations. It may



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then proceed with exploration activities. Once the exploration phase is complete, the concessionaire files a new plan regarding proposed works and facilities. With the award of the mining concession or tenement contract, there are specified timelines for the completion of the various phases of a mining project, e.g. exploration, construction, exploitation. The company must comply with these timelines unless performance is suspended, for example, due to force majeure or extensions or modifications to the timelines. A grant of force majeure is for one year and must be renewed on an annual basis. If the company does not comply with the specified timelines for the completion of the various phases of a mining project, the mining authority may revoke the company's concession contracts or mining licences. As a general matter, any company that wishes to obtain a renewal of its concession contract must be up to date in all its legal and contractual obligations and must present a new plan of works and facilities to be implemented after the contract is renewed.

PINES programme

In 2013, the national government instituted the PINES programme designed to aid promoting certain projects that are deemed to have a national interest. This designation provides for greater oversight from the national government. All of our three advanced exploration projects (La Colosa, Quebradona and Gramalote) were considered of national strategic interest. Currently, Quebradona and Gramalote remain in the PINES programme, but La Colosa was temporarily removed as such (until the force majeure is over).

Tax laws relating to mining

From the moment the concession contract is registered with the Mining Register, the concessionaire has several financial obligations, including the payment of (i) a surface fee during the exploration, construction and assembly stage and (ii) royalties.

Once exploration is complete and the mining infrastructure in place, the concessionaire must begin paying royalties to the Colombian government, consisting of a percentage of the primary product and sub-products being exploited. The percentage of the royalty depends on the regulation in force when the concession contract is registered. In the case of the Quebradona project, the deposit mainly consists of copper followed by gold and silver. There is a 5 percent royalty for copper on the production value at the mine’s or well’s edge (i.e. when extracted from the subsoil). In case of gold and silver, a royalty of 4 percent on the production valued at the mine’s or well’s edge (i.e. when extracted from the subsoil) was established.

Furthermore, Colombian law establishes that once the environmental licence is granted the concessionaire must invest 1 percent of the project’s value to benefit the basins covered by the environmental licence.

Environmental laws relating to mining

In order to obtain an authorisation to carry out a mining project, a company must prepare an Environmental Impact Study (“EIA”) for approval by the National Environmental Licensing Authority of Colombia (Autoridad Nacional de Licencias Ambientales or “ANLA”). Global environmental licences are granted for the entire life of the project and cover all phases: construction, assembly, operation, maintenance, dismantling, final restoration, abandonment and/or termination. Construction and assembly permits (Plan de Trabajos y Obras or “PTO”) are granted by the mining authority with jurisdiction over the project.

In Colombia, the mining authority has the discretion to declare the underlying concession void if the specific company which holds the concession breaches applicable environmental laws or regulations. If the mining authority were to exercise such discretion, a company whose concession was voided would be required to abandon its projects and all of its other existing mining concession contracts. Pending proposals for new mining concession contracts would also be cancelled and the company would be banned from doing business with the Colombian government for a period of five years. As a result, the company would be unable to conduct any mining exploration or development activities during such period. However, this would not affect other subsidiaries of the company operating in Colombia, if those concession contracts are held singularly or in concert with joint venture partners.

Mining activity is prohibited in national parks, regional parks, protected forest reserves, paramos (included in Act 1753, introduced in 2015) and wetlands, pursuant to the Ramsar Convention on Wetlands of International Importance.Some forest reserves are not “protected” but are set aside for active forestry purposes and the concessionaire must obtain a specific permit to partially and temporarily change the use of the soil before pursuing exploration activities. In addition, Resolution 187/2016, passed by the national government in late 2016, identifies areas that the Ministry of the Environment has determined to be “paramos” areas, or paramos transition areas. In these areas there are limitations on industrial or commercial work being performed, including mining. The regulation also specifies a process to determine what work, if any, can be performed in a paramos-designated area.

AngloGold Ashanti’s rights and permits

The La Colosa project managed by AngloGold Ashanti Colombia S.A.S. (“AGA Colombia”) remains in force majeure due to delays in granting environmental permits by national and local environmental authorities, thereby preventing AGA Colombia from undertaking further exploration activities. The current one-year grant of force majeure, during which time the specified timelines for completing the various phases of the mining project under the concession contract are suspended, will expire on



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22 June 2022. AGA Colombia applied for a mining area integration (consolidation) of its concession contracts related to La Colosa, in respect of which AGA Colombia was not in compliance with some of the specified timelines. The application for mining area integration (consolidation) was approved in March 2017, which remedied the non-compliance of each consolidated concession and reset the specified timelines. La Colosa now has a single integrated mining concession contract (EIG-163) which covers a total area of 9,210 hectares and expires on 28 February 2037.

Minera de Cobre Quebradona S.A.S. B.I.C. (“MCQ”) which manages the Quebradona project, obtained the integration of concession agreement 5881 in October 2016 and registered in December 2016. As a result, MCQ was granted the exclusive right to explore, take ownership and dispose of the mineral reserves (ore) extracted from the concession area. MCQ has the right to request an extension of up to 30 years, at least two years before the expiration of the operating period. This extension is not automatic, and the request must be filed with new technical, economic, environmental and social studies that demonstrate the status of the mineral resources. Concession contract 5881 initially covered a total area of 7,593 hectares, which was reduced to 4,881.89 hectares by the relevant mining authority (Secretaría de Minas de Antioquia) on 4 March 2022. It will expire in May 2037 and is currently in its sixth year of the integrated exploration phase. In September 2021, the permits for the construction and mining operation were approved by the relevant mining authority (Secretaría de Minas de Antioquia). On 4 November 2021, ANLA officially notified AngloGold Ashanti of its decision to ‘archive’ the environmental licence application relating to the Quebradona project. ANLA has neither denied nor granted the licence, but deemed that the information provided by AngloGold Ashanti is not enough for this authority to take a substantive decision. On 18 November 2021, AngloGold Ashanti appealed the archiving decision in order to secure further details on the specific additional information ANLA requires to make a determination.

The Gramalote project is organised as a joint operation between AngloGold Ashanti (through AGA Colombia Holdings Limited and AngloGold Ashanti Holdings plc) and B2Gold (through B2Gold Corp. and Graminvest Ventures Limited). Gramalote Limited, a company incorporated under the laws of British Virgin Islands which is the legal vehicle operating the joint operation, established a Colombian branch, Gramalote Colombia Limited (“GCL”), to carry out activities in Colombia and obtain the mining concession contracts necessary to develop the Gramalote project. The Gramalote joint operation has been operated by B2Gold since January 2020. Pursuant to an integrated mining concession contract No. 14292, GCL was granted the exclusive right to explore, take ownership and dispose of the mineral reserves (ore) extracted from the concession area (which covers a total area of 8,720.71 hectares and includes the Gramalote and Monjas anomalies) until April 2043. GCL has the right to request an extension of the operating period for up to 20 years, and, if exercised, such request to extend must include new technical, economic, environmental and social studies that demonstrate the status of the mineral resources. Currently, concession contract No. 14292 is in the phase of construction and assembly, pending resettlement of communities and the formal start of construction activities. GCL has received an environmental licence granted by ANLA and permits for the construction and mining operation which were approved by the relevant mining authority (Secretaría de Minas de Antioquia). GCL also holds an exploration concession No. 4894 (which covers a total area of 2,279.32 hectares and includes the Trinidad anomaly) which expires in 2044.

United States of America

Nevada

Mineral and surface rights in the United States are owned by private parties, state governments or the federal government. The majority of land utilised for precious metals exploration, development and mining in the western United States is owned by the federal government. The right to mine on such federal land in western states is governed by the U.S. General Mining Law of 1872, as amended (the “General Mining Law”). The General Mining Law allows mining claims (for mining and mining-related activities) on certain federal lands after proper compliance with claim location and maintenance requirements.

Mineral exploration activities in Nevada are also generally subject to applicable federal, state, and local permitting requirements, but the specific regulatory authorisations required for the company’s activities are based on the nature and location of the exploratory work. Many of the company’s Nevada operations are currently conducted under what is generally referred to under federal law as a notice-level operation subject to 43 CFR § 3809.21, while projects that are more advanced require additional permitting, including a Plan of Operations approved by the federal Bureau of Land Management (“BLM”). The State of Nevada Division of Environmental Protection’s Bureau of Mining Regulation and Reclamation (“BMRR”) also regulates mining within the state of Nevada. However, exploration projects of 5 acres or less, the scope of a notice-level operation under federal law, are exempt from BMRR regulation. Certain of the company’s early-stage exploration activities fall within this exemption.

In Nevada, the company’s wholly-owned subsidiaries hold a significant number of unpatented mining claims on federal lands. This includes approximately 1,600 unpatented claims (covering approximately 32,000 acres) that are now controlled by the company as a result of its acquisition of all of the outstanding stock of Corvus Gold Inc., which closed on 18 January 2022. The company is currently engaged in exploration activities on certain of its unpatented claims that include, but are not limited to, geological and spectral mapping, surface geochemical sampling, geophysical surveying and RC and/or diamond drilling. The main projects of the company in Nevada include the Silicon Project, the North Bullfrog Project and the Mother Lode Project.

In 2021, the state of Nevada enacted a new tax on Nevada gold and silver mines (in addition to the existing Nevada net proceeds of minerals tax, which is a 5 percent net tax). The new mining tax is a 0.75 to 1.1 percent excise tax based on a mine’s annual gross revenue.



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Minnesota

In Minnesota, AngloGold Ashanti Minnesota Inc. completed early-stage reconnaissance exploration activities to determine the potential for gold mineralisation in the northern counties of Minnesota. Based on the achieved results, the company terminated its exploration activities in the state. In early 2021, the company completed closing out its activities in Minnesota in accordance with state and company requirements.

Potential regulatory changes

Over the years, the U.S. Congress has considered a number of proposed amendments to the General Mining Law and other federal statutes relating to mining. Among the significant features contained in previously proposed legislation were a production royalty obligation, new and more stringent environmental standards and conditions, additional reclamation requirements, extensive new procedural steps which would likely result in extended permitting timelines and granting counties and other entities the ability to petition the U.S. Secretary of the Interior to make certain areas unavailable for the location of unpatented mining claims. In June 2020, former President Trump signed an executive order directing certain federal agencies to streamline the review processes associated with permitting of infrastructure and natural resources projects. Many of those policies have subsequently been rescinded by the Biden administration. While certain other executive orders may favorably affect the timing of our permit and project approvals, the impact is yet to be determined and remains uncertain.

AGA is currently unaware of any other new federal or state legislative or regulatory changes or rule-making that has been proposed or enacted that would adversely affect its current exploration programmes. If any requirements, standards or conditions were adopted in the future that imposed additional or new obligations or costs on AGA in connection with our exploration or extraction activities in the United States, the company’s operations in Nevada could be adversely affected.


MINE SITE REHABILITATION AND CLOSURE

Closure, an integral part of operations

All mining operations eventually cease. An integral aspect of operating AngloGold Ashanti’s mines is ongoing planning for and, where feasible, implementation of concurrent rehabilitation, together with an estimate of associated liability costs and the placement of adequate financial provisions and assurances to cover these costs.

All of AngloGold Ashanti’s operations are required to comply with its group closure planning standard, as well as applicable law and regulations, as their closure plans are reviewed and updated.
Closure planning is an activity that starts at the exploration and mine design stage and continues throughout the life of mine:
•New projects include a conceptual closure plan which anticipates future closure and associated rehabilitation activities and related costs.
•The closure plan is reviewed annually and updated every three years (annually in the final three years of a mine’s life) or whenever significant changes are made, taking into account operational conditions, planning and regulatory requirements, advances in international good practice (e.g., ICMM Mine Closure: Good Practice Guide) and technological developments.

For many of the older mines, closure planning and the evaluation of environmental liabilities is a complex process. This is particularly so in Brazil and Ghana, where many of the mining and other operations have taken place for more than fifty years. A particular challenge is concurrent rehabilitation, which is carried out while a mine is still operational. This practice serves to decrease the ultimate liability and reduces the final rehabilitation and closure work that must be undertaken, but has the potential to sterilise Mineral Reserve, which the company might wish to exploit should conditions, such as the gold price, change.

The company’s group closure standard stipulates that closure planning must be undertaken in consultation with the stakeholders. In the course of these consultations, different issues are raised which require site-specific solutions. Livelihood preservation and infrastructure are often key requirements. Communities also require information on the company’s rehabilitation of the landscape and on any lasting environmental impacts. Long-term remediation obligations, including decommissioning and restoration liabilities relating to past operations, are based on environmental management plans and compliance with current environmental and regulatory requirements.

Provisions for decommissioning and rehabilitation costs are made when there is a present obligation, it is probable that expenditure on decommissioning and rehabilitation work will be required and the cost can be estimated within a reasonable range of possible outcomes. These costs are based on currently available facts, technology expected to be available at the time of the rehabilitation, laws and regulations presently or virtually certain to be enacted and previous experience in the rehabilitation of mine sites.

Decommissioning costs and restoration costs are provided at the present value of the expenditures expected to settle the obligation, using estimated cash flows based on current prices. Estimates are discounted at a pre-tax rate that reflects current market assessments of the time value of money.




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Provisions for decommissioning and for restoration (excluding joint ventures and discontinued operations) increased from $674 million in 2020 to $688 million in 2021. This increase mainly relates to changes in discount rates based on global economic assumptions. The provisions were also impacted by changes in mine plans, resulting in a change in cash flows.


SUSTAINABILITY AND ENVIRONMENTAL, SOCIAL AND GOVERNANCE (“ESG”) MATTERS

AngloGold Ashanti’s sustainability approach is fundamental to how the company operates its business, as well as its ability to create long-term value for its shareholders, employees and social partners through safely and responsibly exploring, mining and marketing its products. Sustainability and safety are integrated into the company’s business and operations at all levels through various frameworks, standards and policies, and the company measures its performance in achieving its goals against its sustainability and other ESG metrics, as well as its engagement with stakeholders.

In mitigating the risks and impacts that are an inherent part of its business, AngloGold Ashanti is informed by an annual assessment of its key ESG issues. This process is aligned with guidance published by the International Integrated Reporting Council (“IIRC”), the Sustainability Accounting Standards Board (“SASB”), the Global Reporting Initiative (“GRI”) Standards and the Accountability AA1000 Stakeholder Management Standard. This assessment is annually reviewed by AngloGold Ashanti’s senior leadership and approved by the Social, Ethics and Sustainability Committee (the “SES Committee”).

AngloGold Ashanti’s board of directors, assisted by the SES Committee, has ultimate responsibility over environmental, safety, health and ethical matters and for the integration of sustainability objectives into AngloGold Ashanti’s business. This includes oversight of the company’s stakeholder engagement framework and structures, which apply to investors, employees, governments, suppliers and communities, at every stage of its business from exploration to mine closure. Group Corporate Affairs and Sustainability is responsible for development of management systems and supports the company’s general managers in the day-to-day implementation of its sustainability strategy.

AngloGold Ashanti maintains a set of policies and procedures to guide the company in acting as a responsible corporate citizen, including the Code of Business Principles and Ethics which sets requirements for the implementation of key corporate policies and guidelines and applies to all management and employees, and to maintain compliance with applicable environmental, health and safety (“EHS”) laws. In 2021, AngloGold Ashanti continued with the implementation of the Integrated Sustainability Information Management System (“iSIMS”), in order to improve internal reporting and better integrate and monitor sustainability activities with respect to its broader business. This common reporting system for all sustainability disciplines, from safety, health and security to community and environmental management, is expected to help provide timely information in each of these areas, and to facilitate transparency and decision-making in its processes and practices.

Significant EHS requirements and ESG risks and trends affecting the company’s mining and processing operations are described below.

EHS Regulatory Compliance

AngloGold Ashanti is subject to extensive EHS laws and regulations in the various jurisdictions in which the company operates. These requirements govern, among other things, extraction, use, conservation and discharge of water; air emissions (including dust control and greenhouse gases (“GHGs”)); regulatory and community reporting; clean-up of contamination; land use and conservation of protected areas; rehabilitation and closure of mined land; worker health and safety and community health; and the generation, transportation, storage and disposal of solid and hazardous wastes, such as reagents, radioactive materials, and mine tailings. Environmental laws and regulations applicable to the company’s operations, including the requirements contained in environmental permits, are generally becoming more restrictive.

Capital and operating costs to comply with EHS laws and regulations have been, and are expected to continue to be, significant to AngloGold Ashanti. In addition, AngloGold Ashanti could incur fines, penalties and other sanctions, environmental clean-up costs, and third-party claims for personal injury or property or natural resources damages; suffer reputational damage; and be required to install costly pollution control equipment or to modify or suspend operations, as a result of actual or alleged violations of, or liabilities under, EHS laws and regulations. Failure to comply with applicable EHS laws and regulations may also result in the suspension or revocation of permits and, in some jurisdictions, the right to mine a given concession. AngloGold Ashanti’s ability to obtain and maintain permits and other approvals and to successfully operate near host communities may be adversely impacted by real or perceived effects on the environment or human health and safety associated with AngloGold Ashanti’s or other mining companies’ activities. In addition, unknown environmental hazards may exist at the company’s properties which may have been caused by previous owners or operators.

Water Management

AngloGold Ashanti’s operations are heavily dependent upon access to substantial volumes of water for use in the mining and extractive processes and typically are subject to water-use permits or rights to extract water from certain natural sources that govern usage and require, among other things, that mining operations maintain certain water quality upon discharge. Water supply, quality and usage are areas of concern across all of the company’s operations, including with respect to the company’s



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mining operations in Ghana and Brazil, as well as its mine development project at Quebradona in Colombia, where there is significant potential environmental and social impact and a high level of stakeholder scrutiny. Any failure by the company to secure access to suitable water supplies, or achieve and maintain compliance with applicable requirements of the permits or licences, could result in curtailment or halting of production at the affected operations. Incidents of water pollution or shortage can, in certain cases, lead to community protest and ultimately to the withdrawal of community and government support for AngloGold Ashanti’s operations. A failure by the company to comply with water contamination related directives may result in further, more stringent, directives being issued against the company, which may, in some cases, result in a temporary or partial shutdown of some of the company’s operations.

Where feasible, the company operates a “closed loop” system which recycles the water used in its operations without discharging it to the environment. In some areas, however, such as Ghana and Brazil, high levels of rainfall and surface water runoff mean that a closed loop system is not feasible and that discharges, after water treatment where necessary, must take place.

Waste Management

During open-pit mining, large volumes of soil and/or rock (overburden) are mined to expose the ore body. Similarly, waste rock is mined during drilling and developing access to underground ore bodies. Overburden and waste rock typically contain sub-economic levels of gold and are deposited as large waste rock facilities. Mine tailings are the process waste generated once grinding and extraction of gold from the ore is completed in the milling process and are typically deposited as slurry in large tailing storage facilities (“TSFs”) specifically designed for this purpose.

The impact of dust generation, breach, leak, or other failure of a waste rock facility or TSF, including any associated dam, can be significant, and the company therefore monitors such facilities closely in accordance with the company’s internal standards, independent review, national regulatory requirements, industry standards and commitments made to local communities. The occasional well-publicised failure of a third-party TSF and the potential impact of such failure also mean that these facilities are generally tightly regulated. An incident at the company’s operations could result, among other things, in enforcement, obligations to remediate environmental contamination, negative press coverage, and claims for property or natural resources damages and personal injury by adjacent communities. Incidents at other mining companies’ operations could result in governmental action to tighten regulatory requirements and restrict certain mining activities, in particular with respect to TSFs, also in respect of other mine operators in that region.

For example, following the catastrophic failure of a TSF at the Córrego do Feijão iron ore mine owned by Vale at Brumadinho in the state of Minas Gerais in Brazil in January 2019, tailings were discharged into the mine’s administrative area and part of the local community, reportedly resulting in death or injury to hundreds of people. As a result of this incident, there has been considerably increased regulatory scrutiny in Brazil and other areas on mining operations generally, and the requirements applicable to the approval, licensing, construction, management, closure and decommissioning of TSFs have generally become far more stringent. For further information on the regulatory framework governing TSFs in Brazil, see “Item 4B: Business Overview—The Regulatory Environment Enabling AngloGold Ashanti to Mine—Americas—Brazil”.

In addition, a new Global Industry Standard on Tailings Management (“GISTM”) was established in August 2020 by a panel comprised of industry and non-governmental organisation (“NGO”) experts, the compliance costs of which are not expected to be material to AngloGold Ashanti. AngloGold Ashanti has committed to comply with the GISTM at all of its TSFs by August 2025.

Groundwater Impacts and Environmental Remediation

As AngloGold Ashanti or its predecessors have a long history of mining operations in certain regions, issues may arise regarding historical, as well as potential future, environmental or health impacts in those areas, for which AGA, as the current owner/operator, may be legally responsible. For example, AngloGold Ashanti has identified groundwater contamination plumes at certain of its operations. Numerous scientific, technical and legal studies have been undertaken to assist in determining the magnitude of the impact and to find sustainable remediation solutions. Based on those studies as well as discussion with regulators, the company has taken steps, including monitored natural attenuation and phyto-technologies, to address soil and groundwater contamination.

Subject to the completion of site-specific trials and potential technologies being confirmed as viable remediation techniques, no reliable estimate can be made at this time for the obligation. Should these obligations be significant, this could have a material adverse impact upon AngloGold Ashanti’s results and its financial condition.

Climate Change and GHG Regulation

At AngloGold Ashanti, climate change is a board of directors-level governance issue, overseen by the SES Committee and the Audit and Risk Committee. The Climate Change Working Group, established in 2020 and comprised of functional leaders from across the business, reports to the SES Committee. AngloGold Ashanti’s Climate Change Strategy, which was approved by the board of directors in November 2021, seeks to embed the management of physical, regulatory and transition climate change-related risks, as well as climate change-related opportunities, into the company’s strategic and operational planning processes.



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In 2021, AngloGold Ashanti committed to the International Council on Mining & Metals (“ICMM”) target of achieving net zero Scope 1 and Scope 2 GHG emissions by 2050, and, in partnership with value chain partners, to set Scope 3 GHG reduction targets, if not by the end of 2023, as soon as possible thereafter.

In December 2015, certain members of the international community negotiated a treaty at the Conference of the Parties of the UN Framework Convention on Climate Change in Paris (the “Paris Agreement”). The Paris Agreement, which came into force on 4 November 2016, requires developed countries to set targets for emissions reductions. As a result, measures designed to limit or reduce GHG emissions, both mandatory and voluntary, have been, and are expected to be, implemented at national or regional levels in various countries.

New regulatory requirements, or changes required to effectively transition to a low-carbon economy, could require AngloGold Ashanti to reduce its direct GHG emissions or energy use, change its fuel mix or incur significant costs for GHG emissions permits or taxes, including for those costs or taxes passed on by electricity utilities which supply the company’s operations. AngloGold Ashanti could also incur significant costs associated with capital equipment, GHG monitoring and reporting and other obligations to comply with applicable requirements. The most likely source of these obligations is through state-level implementation of new emissions or financial obligations pursuant to evolving climate change regulatory regimes.

For example, in 2010, Brazil launched the National Climate Change Policy, which established a voluntary national GHG reduction target of 36.1 percent to 38.9 percent below the projected emissions in 2020 for “business as usual”. The policy required the development of sector-specific plans in order to meet the target and provided for a Brazilian GHG trading scheme, which is yet to be designed. While Brazil is not yet requiring mandatory GHG emissions reporting at the national level, some state environmental agencies have requested companies to voluntarily submit GHG emissions management plans. However, the states of Goiás and Minas Gerais (in which AngloGold Ashanti operates) do not currently require GHG emissions management plans for mining projects. In 2015, Brazil announced, in connection with its commitments under the Paris Agreement, economy-wide absolute mitigation targets providing for a 37 percent reduction in GHG emissions by 2025, as compared to 2005, and a goal to reduction emissions by 43 percent by 2030 compared to 2005 levels.

In addition, in Australia, the Safeguard Mechanism (Rule 2015), through the National Greenhouse and Energy Reporting (“NGER”) scheme, provides a framework for Australia’s largest emitters to measure, report and manage their emissions. The Safeguard Mechanism applies to facilities with Scope 1 covered emissions of more than 100,000 tonnes of CO2e per fiscal year. During the 2018/19 fiscal year, Tropicana’s emissions were within its authorised threshold and Sunrise Dam was required to purchase offsets for emissions that were 0.8 percent above its safeguard threshold, the cost of which was immaterial. Two amendments to the Safeguard Mechanism (Rule 2015) enacted in March 2019 and May 2020 allowed for the application of transitional calculated baselines using estimated CO2-e emissions intensities. Based on the production and emissions forecasts, the Australian mining operations applied to use transitional calculated baselines in 2020 for Sunrise Dam and Tropicana, which were approved by the Clean Energy Regulator effective 1 July 2019 to 30 June 2022 for both operations. Thereafter, there is a requirement to apply for production-adjusted baselines. Accordingly, assuming the company’s operations (and resultant emissions) are consistent with the forecasts in the current business plan, the Australian mining operations should not be required to purchase emissions offsets for the business to cover the period prior to June 2022. In any event, the cost of such offsets, if ultimately required to be purchased, including due to a change in the operations under the business plan prior to June 2022, are not anticipated to be material to the company’s business.

In addition to more stringent requirements and commitments, AngloGold Ashanti’s operations are subject to a number of physical risks from climate change, such as changes in rainfall rates or patterns resulting in floods or droughts, reduced water availability, higher temperatures and extreme weather events. Such events or conditions, particularly including flooding or inadequate water supplies, could disrupt mining and transport operations, mineral processing and rehabilitation efforts, create resource or energy shortages or damage the company’s property or equipment and increase health and safety risks on site. In consultation with external consultants, physical climate risk assessments were undertaken for all operations using current climate models for the business and various decarbonisation scenarios and climate adaptation plans were outlined. These adaptation plans continued to be further refined in 2021.

Occupational Safety and Health

AngloGold Ashanti is subject to a variety of laws and regulations in each of the jurisdictions where the company operates that are designed to protect and improve the safety and health of employees. In some of the jurisdictions in which AngloGold Ashanti operates, the government enforces compulsory shutdowns of operations to enable investigations into the cause of accidents at those operations.

Safety remains a priority for AngloGold Ashanti and a focus of AngloGold Ashanti’s long-term sustainability approach, as well as the company’s continuing efforts to manage the risks inherent to its operations, to model critical controls and to strengthen safety protocols and preventative measures. Although AngloGold Ashanti has made significant strides in improving safety in recent years, sadly, the company lost two colleagues during 2021, and some of its operations recorded a year-on-year regression in the all injury frequency rate.




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AngloGold Ashanti’s Group Safety Strategy, which was revised in 2021 and is expected to be implemented by 2024, seeks to integrate operational risk management and key performance indicators at all levels of the organisation and maintain alignment with global safety standards. The SES Committee oversees the implementation of the Group Safety Strategy. All operations, other than Obuasi, have been certified to ISO 45001:2018, which has replaced the OHSAS 18001:2007 series. Obuasi is scheduled to be certified in 2022.

Community Health and Tropical Diseases

AngloGold Ashanti is also subject to health and safety regulations relating to occupational disease. The primary areas of focus in respect of occupational health of employees within the company’s operations are noise-induced hearing loss (“NIHL”) and occupational lung diseases (“OLD”). OLD includes occupational tuberculosis and silicosis in individuals exposed to silica dust. Silicosis has been particularly prevalent in South Africa and has also arisen at the company’s Africa and Brazilian operations, albeit to a far lesser extent. AngloGold Ashanti provides occupational health services to its employees at its occupational health centres, clinics, and through outsourced service centres. The company continues to improve preventative occupational hygiene initiatives, such as implementing various control measures to prevent hazardous exposures, and providing employees with Personal Protective Equipment.

In 2019, the Johannesburg High Court approved the settlement of existing silicosis and tuberculosis class actions against AngloGold Ashanti and other gold mining companies in South Africa. The recent sale of the company’s South African operating assets and liabilities did not include the silicosis or tuberculosis settlement obligations relating to South African employees, which were retained by AngloGold Ashanti. For further information, see “Item 18: Financial Statements—Note 1.2—Accounting Policies—Significant Accounting Judgements and Estimates—Provision for silicosis”.

In addition to OLD, HIV and AIDS and associated diseases remain major health care challenges faced by AngloGold Ashanti’s Africa region operations. AngloGold Ashanti continues to implement programmes to help those infected with HIV and prevent new infections from spreading.

Malaria and other tropical diseases also pose health risks at all of the company’s operations in Central, West and East Africa where such diseases may assume epidemic proportions because of ineffective national control programmes. Malaria is a major cause of death in young children and pregnant women and also gives rise to deaths and absenteeism in adults. All affected company operations have malaria control programmes in place. The Ghana Obuasi malaria control programme continues to roll-out indoor residual spraying programme in 16 districts of Ghana in partnership with the Global Fund and the Ghana Department of Health.

In 2021, the COVID-19 pandemic continued to put strain on businesses and socio-economic systems across the globe, including as new variants of concern emerged and drove considerable resurgences in cases throughout the year. AngloGold Ashanti continued to direct significant resources to pandemic controls within the company as it worked to limit the spread of the virus whilst keeping operations running. The pressure on labour supply, travel restrictions limiting employee mobility and the mental health implications of the ongoing pandemic all also have potential implications for safety training and safe operations. This required AngloGold Ashanti, as well as other businesses, to take extraordinary measures to protect the health and well-being of its employees, to maintain its operations and to contribute to global control efforts. The availability of safe and effective vaccines, albeit at varying scales in the company’s operating countries, provided an additional layer of protection, especially against severe forms of disease, hospitalisation and death. The company endeavoured to provide prompt access to approved and available vaccines for all workers, especially employees considered to be at high risk as well as employees with critical skills. Given the interdependence of employee and community health, the company’s focus remained on implementing measures supporting the health of its employees and local communities.

The emergence of COVID-19 however also assisted to better integrate broad health risk management beyond occupational health into the overall business strategy, to contribute to productivity as well as the social licence to operate and to improve various prevention and risk management protocols in place to address the potential risk of an epidemic or pandemic after its experience with Ebola in Guinea in 2014 and 2015.

This pandemic also highlighted other associated risks and emphasised the importance of optimising mental health, minimising non-communicable diseases associated with lifestyle as well as the need for systematic contribution to health system strengthening, local skill development and overall community development in the jurisdictions in which the company operates. Such risks impair the health of workers and negatively affect productivity and profitability as a result of workers’ diminished focus or skill, absenteeism, treatment costs and allocated resources. As part of AngloGold Ashanti’s continuing efforts, the company recently adopted a set of updated health standards based on identified major health hazards or risks which include gender, cultural and other applicable diversity considerations for risk management and controls.

Diversity and Inclusion (“D&I”)

With more than 30,000 employees (including contractor employees) on four continents, AngloGold Ashanti believes that having a diverse and inclusive workforce is important to continuing to attract talent in order to maintain competitiveness and the long-term



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sustainability of its business. In addition, the company strives to have a workforce that represents the societies in which AngloGold Ashanti operates in connection with maintaining its social licence to operate.

AngloGold Ashanti’s D&I approach is aligned to the United Nation Sustainable Development Goals (“UNSDGs”) (SDG 5, 8 and 10) and the United Nations Global Compact (“UNGC”). The company has developed a Diversity & Inclusion Framework, which aims to foster the empowerment of all staff, irrespective of race, gender, ethnicity, religion and sexual orientation and has established specific priorities and actions for the next two to five years to foster the inclusion of D&I objectives in its processes. Leadership teams are responsible for meeting defined diversity targets. In 2021, regional assessments were conducted to better understand the specific issues associated with increased D&I at mine sites.

Human Rights and Indigenous Peoples

In its commitment to respecting and promoting human rights, AngloGold Ashanti supports the United Nations Guiding Principles for Business and Human Rights (“UNGP”) and other international initiatives, including the UNGC and the Voluntary Principles on Security and Human Rights (“VPSHR”). The VPSHR, which seeks to balance safety and security needs against respect for human rights and fundamental freedoms, were developed through multi-stakeholder participation between governments, extractive industry members and NGOs. Community and security related matters, including with respect to illegal and artisanal and small-scale mining and related intrusions into the company’s operational areas, are addressed at board of directors-level by the SES Committee. AngloGold Ashanti’s internal Human Rights Framework includes numerous policies, management standards and guidance documents which apply to all of its employees, contractors and suppliers and require reporting of, and redress for, human rights violations and related allegations.

The company is aligned with the ICMM Position Statement on Indigenous Peoples and the International Finance Corporation’s Performance Standard 7 on Indigenous Peoples and other international standards and treaties in the area of Indigenous Peoples’ rights.







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ANGLOGOLD ASHANTI GLOBAL OPERATIONS: 2021

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Operations, projects and exploration programmes
AMERICASAFRICA REGIONAUSTRALIA
1 Argentina5 Guinea9 Australia
Cerro Vanguardia (92.5%)Siguiri (85%)Sunrise Dam
2 Brazil6 GhanaButcher Well (70%)
Serra GrandeIduapriemTropicana (70%)
AGA Mineração
Obuasi(3)
3 Colombia7 Democratic Republic of the Congo (DRC)
Gramalote (50%)(1)
Kibali (45%)(4)
La Colosa8 Tanzania
QuebradonaGeita
4USA
Silicon(2)

Percentages indicate the ownership interest of AngloGold Ashanti. All operations are 100%-owned unless otherwise indicated.
(1)     Gramalote is managed by B2Gold.
(2)    As at 31 December 2021, a maiden Mineral Resource was declared for Silicon.
(3)    Obuasi's redevelopment project began in 2019.
(4)    Kibali is operated by Barrick Gold Corporation (Barrick).




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OPERATING PERFORMANCE

Group description

AngloGold Ashanti, an independent, global gold mining company with a diverse, high-quality portfolio of operations, projects and exploration activities and is headquartered in Johannesburg, South Africa.

In 2021, our portfolio of ten operations in eight countries, includes long-life operating assets with differing ore body types located in key gold-producing regions around the world. These operating assets were supported by three greenfields projects in Colombia and a focused global exploration programme, including exploration in the United States.

Our operations and projects are grouped into the following regions: Africa, Americas and Australia.

On 12 February 2020, the Company announced that it had reached an agreement with Harmony to sell all its remaining South African producing assets and related liabilities. The sale closed on 30 September 2020. On 10 November 2020, the Company announced that it had completed the sale of its interest in the Morila mine in Mali and on 30 December 2020, the Company announced that it had completed the sale of its interest in the Sadiola Mine in Mali.

AngloGold Ashanti’s operations and joint arrangements employed, on average, 30,561 people (including contractors) in 2021 (2020: 36,952).

Performance

In 2021, AngloGold Ashanti produced attributable 2.472 million ounces (Moz) of gold (2020: 2.806Moz, excluding the 241,000oz produced by former South African operations), as well as 3.5Moz of silver and 173 tonnes of sulphuric acid as by-products.

Production of 2.472Moz of gold was achieved at a cost of sales of $2.9 billion and an all-in sustaining cost of $1,441/oz for subsidiaries and $856/oz for equity accounted joint venture operations compared to a production of 2.806Moz in 2020 at a cost of sales of $2.7 billion and all-in sustaining cost of $1,072/oz for subsidiaries and $810/oz for equity accounted joint venture operations.

Gold
The AngloGold Ashanti Mineral Reserve reduced from 29.5Moz in December 2020 to 28.1Moz in December 2021. This annual net decrease of 1.4Moz (5%) includes depletion of 2.6Moz and reductions due to other factors of 2.9Moz. The Mineral Reserve was estimated using a gold price of $1,200/oz, unless otherwise stated (2020: $1,200/oz). Table 2ato Paragraph (b) prepared in accordance with Regulation S-K 1300 (§ 229.1303 (Item 1303)). See "Item 4D Property, Plants and Equipment - Mineral Resource and Mineral Reserve Summary Disclosure".

Copper
The AngloGold Ashanti Mineral Reserve increased from 1.41Mt (3,105Mlb) in December 2020 to 1.47Mt (3,250Mlb) in December 2021. This gross annual increase of 0.07Mt (145Mlb or 5%) is due to methodology changes. The Mineral Reserve was estimated at a copper price of $2.90/lb (2020: $2.65/lb). Table 2b to Paragraph (b) prepared in accordance with Regulation S-K 1300 (§ 229.1303 (Item 1303)). See "Item 4D Property, Plants and Equipment - Mineral Resource and Mineral Reserve Summary Disclosure".

Capital expenditure, including equity accounted joint ventures, in 2021 amounted to $1,100 million (2020: $757 million).

Safety

There were regrettably two fatalities across the group’s operations in 2021. The all injury frequency rate was 2.13 per million hours worked compared to 1.68 in 2020 (excluding the former South African assets).




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AFRICA REGION
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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”.




Africa is currently home to five of our operations, with one – Kibali – managed by Barrick Gold Corporation. These operations, which contributed 57% or 1.4Moz to total annual group production in 2021, are in Ghana (Iduapriem and Obuasi), Guinea (Siguiri), Tanzania (Geita) and the DRC (Kibali).
Attributable gold production
(000oz)		Average number of  
employees  
Subsidiary operations
Ghana
Iduapriem202 1,639 
Obuasi108 3,914 
Guinea
Attr. Siguiri 85%258 3,369 
Tanzania
Geita486 5,884 
Joint venture operations
Democratic Republic of the Congo
Attr. Kibali 45%365 2,454 



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Africa Region - Key Statistics
Unit202120202019
Subsidiary operations
Tonnes treated/milledMt21.2 20.5 19.1 
Pay limitoz/t0.035 0.034 0.039 
g/t1.193 1.160 1.330 
Recovered gradeoz/t0.045 0.052 0.060 
g/t1.54 1.77 1.77 
Gold production (a) (attributable)
000oz1,054 1,143 1,094 
Cost of sales$m1,300 1,232 1,173 
Total cash costs (1)
$/oz991 797 801 
All-in sustaining costs (1)
$/oz1,264 975 947 
Capital expenditure$m434 345 359 
Safety
Number of fatalities120
AIFRPer million hours worked0.61 0.55 0.62 
People
Average no of employees: Total14,806 14,496 12,847 
Permanent employees5,619 5,433 4,940 
Contractors9,187 9,063 7,907 

(a) Includes Obuasi gold production in 2020, capitalised as part of the project development.

Unit202120202019
Joint venture operations
Tonnes treated/milledMt3.5 3.4 7.5 
Pay limitoz/t0.048 0.048 0.037 
g/t1.652 1.640 1.255 
Recovered gradeoz/t0.095 0.096 0.060 
g/t3.25 3.29 1.85 
Gold production (attributable)000oz365 364 445 
Cost of sales$m350 340 428 
Total cash costs (1)
$/oz647 629 657 
All-in sustaining costs (1)
$/oz856 810 767 
Capital expenditure$m72 52 51 
Safety
Number of fatalities(2)
n/an/a0
AIFR (2)
Per million hours workedn/an/a0.65 
People
Average no of employees: Total2,454 2,333 2,939 
Permanent employees860 824 1,191 
Contractors1,594 1,509 1,748 

(1)Total cash costs and all-in sustaining costs are non-GAAP measures. For further information on these non-GAAP measures, see “Item 5A: Operating Results-Non-GAAP analysis”.
(2)Excludes Kibali which is managed by Barrick and not AngloGold Ashanti. For years prior to 2020, amounts are inclusive of amounts pertaining to Sadiola, which was sold in 2020.




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Performance summary

Production for the year was 1.4Moz (2020: 1.6Moz), as the region executes the reinvestment programme and costsvarious 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 Australia region produced 614,000ozincrease in 2019the 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 625,000oz 2018. 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 2% drop in year-on-year production was largely the result of lower underground mined volumesgrind and gradesrecovery optimisation continued at Sunrise Dam. Sunrise Dam experienced operational challenges in the middle ofSiguiri’s combination plant during the year, with limited stope flexibility and paste fill delays, which resulted in lower underground volumestreatment of carbonaceous material started. The Block 2 project yielded its first ore once the haul road was completed between the remote deposit and grades. However,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 flexibility improvedactivities resumed in the fourth quarter of 2019 as larger stopes came online, resulting2021, after they were voluntary suspended in May 2021 immediately following the failure of a record production from undergroundsill 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 fourth quarter. A substantial exploration programme is underwayend of the first half of 2022. Major infrastructure works are required to increase Mineral Resource confidence, growsupport the undergroundramp-up to 5,000tpd. This will include the upgrade of the KMS shaft and KMV shaft as well as the development of a new ventilation shaft. We will continue the Ore Reserve development to access Block 11. Phase 3 construction is expected to be completed at the end of 2023 when the mining rate is planned to lift to 5,000tpd.



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THE AMERICAS
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The Americas hosts three of our operations – one in Argentina and supporttwo in Brazil – as well as two greenfields projects in Colombia and a significant new greenfields development of additional mining areasin Nevada in the long term. Critical for success at Sunrise Dam is increasing flexibility to ensure consistently high underground tonnagesUnited States.
Attributable gold production
(000oz)		Average number of  
employees  
Operations
  1.     Argentina
Cerro Vanguardia (Attr. 92.5%)145 1,850 
  2.    Brazil
AGA Mineração331 6,142 
Serra Grande83 1,980 




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Americas - Key Statistics
Unit202120202019
Operation
Tonnes treated/milledMt7.8 7.5 7.3 
Pay limitoz/t0.10 0.07 0.11 
g/t3.49 2.46 3.79 
Recovered gradeoz/t0.066 0.081 0.089 
g/t2.27 2.77 3.04 
Gold production (Attributable)000oz559 649 710 
Silver (attributable)Moz3.2 3.3 3.4 
Cost of sales$m822 764 822 
Total cash costs (1)
$/oz921 721 736 
All-in sustaining costs (1)
$/oz1,587 1,003 1,032 
Capital expenditure (2)
$m398 217 195 
Safety
Number of fatalities100
AIFRPer million hours worked3.55 3.68 3.50 
People
Average no of employees: Total9,972 8,789 8,114 
Permanent employees6,452 6,158 5,869 
Contractors3,520 2,631 2,245 

(1)Total cash costs and all-in sustaining costs are available to displace lower-grade surface stockpiles. Strategic drill platforms have been established to facilitate systematic exploration of the down plunge extents of the Vogue mineralised system, while also testing areas to the northnon-GAAP measures. For further information on these non-GAAP measures, see “Item 5A: Operating Results-Non-GAAP analysis”.
(2)100 percent, (not attributable) and south that could generate additional work areas. The objective of the drilling is to provide data to facilitate Ore Reserve conversion and increase confidence and reliability in the two- to five year planning horizon.includes Colombia.


At Tropicana, production at 360,000ozPerformance summary

Production for the year was 7% higher year-on-year. Higher mill throughput,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 set new records in December 2019, offset lower feed gradesfaced 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 contributed tosecond-order consequences of the increase in gold production. Annual tonnes mined also broke site records in 2019. The Tropicana open pit was completedpandemic, with Brazil experiencing significant absenteeism during the first half of the year, and miningArgentina’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 Havana South, HavanaArgentinean peso against the US dollar and Boston Shaker pits.higher volumes of silver produced and sold.

In Colombia, the Quebradona Project remains an attractive long-life, high-grade, low-cost project which will add copper production to our portfolio. At Gramalote, a joint operation with B2Gold, the final feasibility study for the project is expected to be delivered during the course of 2022. Colombia’s environmental agency (ANLA) took the decision to archive our environmental license application relating to the Quebradona project. AngloGold Ashanti has filed an appeal seeking to secure further details on the specific additional information the agency would require in order to be able to prepare a license submission that would meet the agency’s requirements.




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A thorough review and analysis of the items and further information identified as part of ANLA’s archiving decision is being undertaken, with the aim of preparing and submitting a new environmental licence request for Quebradona in due course. This process will result in a delay of the project.

Nevada strategy
AngloGold Ashanti completed its acquisition of Corvus on 18 January 2022, consolidating much of the largest new gold district in Nevada. This provides AngloGold Ashanti the opportunity to establish, in the medium and longer term, a meaningful, low-cost, long-life production base in a premier mining jurisdiction. As the Company has previously indicated, the consolidation of the Beatty District has the potential for significant synergies from economies of scale and integrated infrastructure, including water rights, adjacent concessions and processing facilities. The combined asset base also allows for unified engagement with federal, state and local stakeholders to advance and achieve shared sustainability goals and other district benefits, such as opportunities to design projects incorporating renewable energy, as well as develop conservation and other local projects in conjunction with the Beatty community.

Following the completion of the Corvus transaction, water rights that will form an important part of the district’s development, have transferred to AngloGold Ashanti. The Company’s conceptual development plan for the district envisions the North Bullfrog deposit – previously owned by Corvus – being developed first, with initial production expected in the next three years. This is expected to be followed by AngloGold Ashanti’s Silicon deposit – which has declared a maiden 3.4Moz Mineral Resource – and then potentially the Merlin target near Silicon. The timing for mining activities at the Mother Lode deposit is expected to start only in the long term after the Company completes additional study work. This initial development schedule is expected to be supplemented by various other prospective deposits being explored across the tenement. It is plannedexpected that open pit miningdeposits will be focused ondeveloped in a modular fashion, mined initially as open pits and processed using heap leach and gravity recovery where applicable. This pathway provides the Havana pitopportunity for project capital expenditure intensity to develop in 2020.a staged fashion.


AngloGold Ashanti’s technical team has initiated the process of evaluating the Corvus’ Mineral Resource. For 2022, multiple activities are planned to take place in the district, with requisite drilling underway at North Bullfrog and Silicon, with an aim to convert Mineral Resource to Ore Reserve. We also plan to begin a pre-feasibility study at Silicon and initiate a concept study for the Merlin deposit. The permitting process for North Bullfrog is expected to start in the first half of 2022. Importantly, given the various deposits across the tenement, our approach to mapping these deposits is expected to take place over a number of years in a staged and de-risked manner.








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AUSTRALIA
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Attributable gold production
(000oz)		Average number of  
employees  
Operations
Australia
1.   Sunrise Dam229 679 
2.   Tropicana 70%265 653 
The region’s costtwo AngloGold Ashanti operations in Australia are Sunrise Dam and Tropicana, both of sales and AISC were $632 million and $990/oz in 2019, respectively, compared to $622 million and $1,038/oz for 2018, respectively. Despite the 2% lower production deliveredwhich are in the regionnorth-eastern goldfields in the state of Western Australia. Sunrise Dam is wholly owned, while we have a 70% holding in, and manage, Tropicana, with Regis Resources Ltd, our partner, holding the balance. Regis Resources acquired the stake in Tropicana from IGO Ltd on 31 March 2021. Sunrise Dam includes the Butcher Well project (70%).




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Australia - Key Statistics
Unit202120202019
Operation
Tonnes treated/milledMt10.5 10.2 10.1 
Pay limitoz/t0.06 0.06 0.06 
g/t1.89 1.95 1.95 
Recovered gradeoz/t0.047 0.054 0.060 
g/t1.47 1.68 1.87 
Gold production (attributable)000oz494 554 614 
Cost of sales$m740 705 632 
  Total cash costs (1)
$/oz1,196 968 730 
  All-in sustaining costs (1)
$/oz1,500 1,225 990 
Capital expenditure$m185 143 149 
Safety
Number of fatalities000
AIFRPer million hours worked6.59 3.74 7.33 
People
Average no of employees: Total1,332 1,230 1,140 
Permanent employees288 259 249 
Contractors 1,044 971 891 

(1)Total cash costs and all-in sustaining costs are non-GAAP measures. For further information on these non-GAAP measures, see “Item 5A: Operating Results-Non-GAAP analysis”.

Performance summary

Production for the year was 494,000oz (2020: 554,000oz), achieved at a strong focus on operational excellence coupled with a weaker exchange rate contributed to a 4% drop in total cash costs and a 5% dropcost 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 AISC compared2020, to 2018. Tropicana’s total cash costs declined due6.59. There was no change to higher volumes, and improved efficiencies partially offset by unfavourable grades, royalties and inflation while total cash costs at Sunrise Dam were negatively impacted by lower efficiencies, lower grade and inflation. Operational excellence work included a successful trialthe severity of autonomous open-pit blast hole drilling, which indicated significant productivity gains could be achieved by converting all six drill rigs to autonomous operation. Autonomous operation can improve drill use by enabling their continued operation within the exclusion zone during blasting, so extending drill bit life and reducingincidents, but the number of operators needed.

Capital expenditure

Total capital expenditure for the region was $149 million in 2019 comparedincidents increased, attributed to $156 million in 2018. Capital expenditure at Tropicana increased by $29 million predominately due to the starta range of the Boston Shaker underground growth project ($21 million). AnCOVID-related factors, including high employee turnover coupled with an increase in waste stripping capital expenditure due to the schedulingproportion of open pit cutbacks was partially offset by a reduction in stay-in-business capital. Capital expenditure at Sunrise Dam reduced by $35 million due to lower Ore Reserve development and stay-in-business capital expenditure. Several key infrastructure projects, such as the expansioninexperienced workers.

Community investment of the tailings storage facility and the upgrade to the ventilation system were completed in 2018 resulting in a $25 million year-on-year reduction in stay-in-business capital expenditure when compared to 2019.$1.01m (2020: $0.81m).


Safety

Safety performance improved for the Australia region in 2019, continuing a positive trend since the commissioning of Tropicana in 2013. At Tropicana, the site ended the year with a record safety performanceAll operations certified in terms of the AIFRCyanide Code, ISO 45000 (health and the lost-time injury frequency rate (LTIFR), achieving 14 months without a lost-time injury. At Sunrise Dam, the AIFRsafety) and LTIFR both increased marginally from 2018, although the severity of injuries was minor.ISO 14001.


Ore Reserve

At the end of 2019, the total attributable Ore Reserve forWhile production declined year-on-year, the Australia region was 3.2 million ounces (2018: 3.8 million ounces). This is approximately seven percentassets recorded a stronger second half of the group’s total Ore Reserve.year with output improving by 23%, when compared to the first half of the year.

Growth and improvement


At Sunrise Dam the underground exploration programme initiatednew, 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 2019 is expected to take two years. The programme is designed to increase Mineral Resource confidence, grow the underground Ore Reserve and support development of additional mining areas in the long term. By the end of the year six underground diamond drill rigs were in operation testing various targets including the southern strike extensions of the Midway Shear Steeps (MSS) and Elle and areas to the south of the current Vogue Indicated Resource. Surface diamond drilling will target southern extensions of Vogue.

Drilling results returned in 2019 identified extensions of Vogue mineralisation over an approximate 180m strike length; southern extensions to the Midway Shear (MWS) Steeps ore domains, approximately 190m south of the current Indicated Resource; and potential repetition of the MWS Steeps ore domains, approximately 100m east of the current Indicated Resource. Drillingyear. Recovery rates also intersected mineralisation 500m to the south down plunge of the Mineral Resource, suggesting the continuation of the Vogue orebody.


Development of the Boston Shaker underground mine at Tropicana began in May 2019 and at year-end the project was on track to deliver high-grade ore in mid-2020 as planned. The decision to go ahead with the project was announced in March 2019 following board approval and after a feasibility study confirmed that underground mining was technically and financially viable, demonstrating robust economics with an anticipated internal rate of return of 39% for a capital investment of $79.3 million.

Boston Shaker is expected to contribute higher-grade mill feed, resulting in an improved gold production profile and enhanced cash flow, during 2021-2023 when the mine plan includes periods of higher waste stripping in the Havana open pit.

The feasibility study was based on the mining of 6.58 million tonnes, grading 3.84g/t, assuming the systematic conversion of Mineral Resources to Ore Reserves over the life of the mine. The average underground mining rate will be approximately 1.1Mtpa (including development) over an eight-year mine life to 2026 to produce a total of 732,000oz. Mining methods will comprise conventional mechanised mining and underhand sublevel open stoping.

The two raised bore holes required for ventilation and emergency egress were tracking ahead of schedule by year end, and underground development of 1,640m was ahead of plan. Underground reverse circulation grade control drilling began in October. Recruitment of the underground workforce is progressing as planned and the underground operation remains on track to deliver first gold in the second halfsix months of 2021 versus the first half. Mining at Golden Delicious is progressing well, with this material stockpiled and blended with underground ore to optimise throughput and production.

At Tropicana, open pit material movement was lower than planned in 2021, due primarily to the severe shortage of skilled operators and maintenance personnel. The mine plan was adjusted to mitigate this shortfall and reduce the impact on gold production. Progress in the lower priority (bulk waste) work areas suffered as a consequence, resulting in less waste stripping of cutbacks being carried out.




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SOUTH AFRICA

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The sale of the South African assets to Harmony closed on 30 September 2020. Operational excellence work is focusedAs a result, the figures in this section relate
to the nine months ended on remote bogging,30 September 2020, unless the mechanical operator-controlled diggingcontext indicates otherwise.

South Africa Key Statistics
Unit202120202019
Operation
Tonnes treated/milledMt0.4 35.1 
  Pay limit (1)
oz/t0.40 0.33 
g/t14.60 11.90 
  Recovered grade (1)
oz/t0.120 0.183 
g/t3.75 5.69 
Gold production000oz241 419 
Cost of sales$m287 479 
  Total cash costs (2)
$/oz1,149 981 
  All-in sustaining costs (2)
$/oz1,296 1,132 
Capital expenditure$m35 57 
Safety
Number of fatalities40
AIFRPer million hours worked6.12 10.00 
People
Average no of employees: Total— 8,297 7,870 
Permanent employees— 7,012 6,682 
Contractors — 1,285 1,188 
(1)Refers to underground operations only.
(2)Total cash costs and all-in sustaining costs are non-GAAP measures. For further information on these non-GAAP measures, see “Item 5A: Operating Results-Non-GAAP analysis”.



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EXPLORATION REVIEWSOUTH AFRICA


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

General laws relating to mining

The MPRDA

The Mineral and Petroleum Resources Development Act, No. 28 of our strategic focus areas: creating value by providing long-term optionality2002 (the “MPRDA”) came into effect on 1 May 2004. The objectives of the MPRDA are, amongst other things, to allow for state sovereignty over all mineral and improving portfolio quality. Our exploration programme covers greenfieldspetroleum resources in the country, to promote economic growth and brownfields exploration.

These strategic objectives are met by:

Greenfields exploration which aims to discover large, high-value Mineral Resource, which will eventually lead to the development of new gold mines;these resources and

Brownfields to expand opportunities for the historically disadvantaged and to ensure security of tenure for the respective operations concerning prospecting, exploration, which focuses on delivering value through accretive additions mining and production. By virtue of the provisions of the MPRDA, the state ensures that holders of mining and prospecting rights contribute to the Ore Reservesocioeconomic development of the areas in which they operate. The Mineral and Petroleum Resources Development Amendment Act, No. 49 of 2008 (the “MPRDAA”) became effective on 7 June 2013. On 23 April 2004, the Minister of Mineral Resources and Energy (the “MRE Minister”) published, under the terms of the MPRDA, the Mineral and Petroleum Resources Development Regulations in order to implement the provisions of the MPRDA and MPRDAA. These implementation regulations were amended on 27 March 2020.

The mining charter

Since 2004, a series of mining charters have been adopted in South Africa with the main purpose of transferring part of the ownership of mining assets to black or historically disadvantaged South Africans (“HDSAs”) within a certain time period. Such mining charters also set targets for, amongst other things, the advancement of HDSAs into management positions, the employment of women, procurement of goods and services from HDSA-owned companies, training, community development and the upgrading of mine housing. In 2004, the Broad-Based Socio-Economic Empowerment Charter for the South African Mining Industry, 2004 was published and, in September 2018, the Broad-Based Socio-Economic Empowerment Charter for the Mining and Minerals Industry, 2018 (the “2018 Mining Charter”) was published, repealing all prior mining charters. In September 2021, the High Court of South Africa (Gauteng Division) held that the 2018 Mining Charter is a policy document and does not, per se, bind holders of mining titles. The High Court also set aside various provisions of the 2018 Mining Charter. In



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

The B-BBEE Act

The Broad-Based Black Economic Empowerment Act, No. 53 of 2003 (the “B-BBEE Act”) is a law of general application in respect of Broad-Based Black Economic Empowerment (“B-BBEE”) and enables the Minister of Trade and Industry to drive B-BBEE across all sectors of the economy. In 2014, the Broad-Based Black Economic Empowerment Amendment Act, No. 46 of 2013 (the “B-BBEE Amendment Act”) came into effect amending the B-BBEE Act to provide a framework of principles, strategies and guidelines aimed at existing minespromoting the broad-based socio-economic empowerment of HDSAs across the South African economy and society in the form of ownership, management, employment equity, skills development, preferential procurement, enterprise development and socio-economic development.

Environmental laws relating to mining

The National Environmental Management Act, No. 107 of 1998, as amended (the “NEMA”) includes provisions to deal with environmental regulation of mining and prospecting, which provisions are administered by the MRE Minister. Pursuant to section 24N(8) of NEMA, directors of a company are jointly and severally liable for any negative impact on the environment, whether advertently or inadvertently caused by the company they represent, including damage, degradation and pollution.

From an environmental perspective, given the wide scope of the statutory duty of care in South African environmental law, erstwhile land owners may be held liable for historic contamination by the regulatory authorities. The “polluter pays” principle in South Africa enables the competent authority to seek recourse against various responsible parties based on their historical or current relationship to the source and receptor of degradation or pollution. The duty of care also applies retrospectively to significant pollution or degradation that occurred before the entry into force of NEMA (i.e., 29 January 1999), as well as new discoveriessignificant pollution or degradation that arises or is likely to arise at a different time from the actual activity that caused the contamination (e.g., latent or residual impact) or arises through an act or activity of a person that exacerbates pre-existing contamination. The authorities can also seek compensation in defined areas around operations. Brownfields exploration actively drivesrespect of clean-up measures that it is required to take on behalf of the creationresponsible parties and apportion liability amongst the responsible parties, which could technically include a historic landowner or mining company that caused the pollution. Although the purchasers of value by growing our Mineral ResourceAngloGold Ashanti’s assets in South Africa have contractually assumed all environmental liability associated with its former South African operations and Ore Reserve, our major assets. The brownfields exploration programme is based on innovation in geological modelling and mine planning, and continual optimisation of our asset portfolio.

In 2019, $62 million was spent on greenfields exploration and $95 million on brownfields exploration.

Greenfields exploration

5,500km2 of highly prospective ground was explored in two countries – Australia and the United States – along with licence applications and other ground positions in Argentina,Brazil and Tanzania. In total, more than 71km of diamond, reverse circulation (RC) and aircore (AC) drilling was completed in 2019.

In Australia, in the Laverton district,agreed to indemnify AngloGold Ashanti completedfor the 70% earn-insame, there remains a risk, at least theoretically, of statutory liability to the state.

AngloGold Ashanti’s rights and permits

Pursuant to the SA Sale Agreement, AngloGold Ashanti and Golden Core executed a notarial deed of cession of the mining rights with DMRE references GP 30/5/1/2/2/01 MR and GP 30/5/1/2/2/248 MR to transfer and cede these mining rights to Golden Core (the “Deed of Cession”). On 14 June 2021, the Deed of Cession was registered at the Butcher WellMineral and Lake Carey JV. The Butcher Well scoping study was updated by integratingPetroleum Titles Registration Office (the “MPTRO”).

With respect to the drilling results from the second half of 2018. Elsewhere in Laverton, a total of 49,200m of aircore drilling and 4,486m of diamond drilling was completed on several joint venture and non- joint venture projects.

Diamond drilling programmes were also completed at the Mt Clark prospect in North Queensland (nine holes for 2,748m) and the Glandore prospect, located 60km east of Kalgoorlie in Western Australia (six holes for 1,846m), with no positive results derived.

In the United States, at the Silicon project in Nevada, 8,008m of RC and 3,300m of diamond drilling were completed in 2019. The programme followed up on and further developed understanding of the alteration system intersected in earlier drilling as well as testing other favourable litho-structural targets within the Silicon-Thompson structural corridor. An induced polarization (IP) survey was also completed along with ground magnetic and gravity surveys. The second-year anniversary payment was made to Renaissance Gold during the period to maintain the option earn-in agreement into the third and final year in 2020.

Also in the United States, in Minnesota, roto-sonic drilling was completed over several target areas with 54 holes completed for a total of 1,619m. Since the results from the programme were not encouraging, work has stopped.mining right held under DMRE reference GP 30/5/1/2/2/11 MR, AngloGold Ashanti returned all the mineral leasesand Golden Core agreed to the state of Minnesota.

In Argentina and Tanzania, exploration properties are on care and maintenance. Target generation activities were completed in Brazil and West Africa.

Brownfields exploration

Brownfields exploration was carried out in nine countries in and around AngloGold Ashanti operations. A total of 877,630m of Diamond and RC drilling was completed during the year.

South Africa: Exploration continued with one-hole drilled at Mponeng’s Western Ultra Deep Levels targeting the Ventersdorp Contact Reef. Drilling was stopped due to capital constraints and the final site clearance/closure certificate signed off in June.

Argentina: At Cerro Vanguardia, due to budget constraints, exploration was focused on mapping, surface sampling and ground geophysical surveys.

Brazil:At AGA Mineração, in the Iron Quadrangle, a total of 263,345m was drilled. At Cuiabá, the underground drilling programme focused on Fonte Grande and Serrotinho (upright limb), Balancão and Galinheiro (overturned limb). A long-inclined borehole drilling project was successfully completed. Positive results with significant intercepts were reported for secondary targets including the quartz vein project (VQZ) and Viana.

Regionally, drilling at the Descoberto target is ongoing and has produced encouraging observations. Land access was granted in October 2019 to allow the Matarelli target drill programme to commence. A trial unmanned aerial vehicle (UAV) magnetic survey was successfully completed at Matarelli and a more comprehensive survey covering the Matarelli and Tinguá targets is planned. A detailed geological map and associated cross sections were produced over the Tinguá target area ahead of a geochemical soil
programme planned for early 2020.


At Lamego, drilling focused on confirming the continuity of Carruagem in a south-westerly direction (both limbs) from levels 1 to 5. Drilling also took place at Cabeça de Pedra (hinge zone), which reported high grades and indicated that the orebody remains open.

Drilling at Córrego do Sítio (CdS) tested the Rosalino open pit. At CdS I, underground drilling in Laranjeiras and Carvoaria confirmed the Mineral Resource and indicate good prospectivity for high grades in Carvoaria. In the ‘Gold Quadrangle’ area of Candeias-Cristina, Mutuca, Cachorro Bravo and Pneu, drilling supported Mineral Resource additions in the area.

At CdS II, drilling in the shallow north-east portion of São Bento confirmed the continuity of the mineralised structure in that direction. The Remaining Ounces project identified potential areas for high-grade ore within old mining areas. At CdS III, a sterilization drilling campaign is underway and one positive intercept suggests the extension of the Anomalia and Jambeiro target trends.

A total of 128,888m was drilled at Serra Grande. Exploration drilling at Pitanga, Palmeiras South, Mangaba, Corpo IV, V and Limoeiro resulted in the addition of Mineral Resource. The mine acquired the Palmeiras South area in late 2018 which contains the southern extension of all mineralised trends; subsequent drilling during 2019 returned positive results along Structure 3.5.

The Pitanga orebody was discovered along Structure III close to Mina Nova mine. The reinterpretation of existing orebodies at Corpo IV, Corpo V and Limoeiro supported exploration drilling and led to new ounce generation. Target generation focused on assessing shallow opportunities and using interpreted S2 stacking behaviour to identify new potential areas to test in 2020.

Colombia:Limited exploration activities were completed at Gramalote. RC drilling started at Trinidad in October 2019 and diamond drilling at Gramalote in November with no results reported to date. The La Colosa project continued on care and maintenance following the cessation of all field activities in April 2017.

At Quebradona, a total of 10,494m was drilled, focusing on geotechnical programmes for site infrastructure, the tunnel trace, the mine subsidence area and the crusher chamber. Geological and structural models were updated for infrastructure sites, the tunnel and mine area.

Tanzania: At Geita, a total of 96,407m of drilling was completed in 2019.

The overall results for Star & Comet Cut 2 Mineral Resource drilling were positive. While exploratory drilling results identified no economic intersections, interpretation and review are ongoing. The Star & Comet Cut 3 Mineral Resource drilling results confirmed the down-dip continuity. Extension drilling at Star & Comet Cut 2 and Cut 3 confirmed the presence of open-ended high-grade mineralisation along the hanging wall and footwall sides of the intrusive, suggesting that the Cut 2 and Cut 3 orebodies might join and become one.

Mineral Resource development drilling programmes for Nyankanga underground were carried out at Blocks 3, 4 and 5 as well as in the gap area between Block 2 and 3. All results were positive.

Three of eight holes in the surface drilling programme at the Star & Comet North Extension returned lower grades than previous data. Results from surface drilling completed at Selous confirmed the orebody extensions inside and outside the pit margins. While exploratory surface drilling at Mabe delineated localised orezones of medium to high grade.

At Geita Hill, underground Blocks 1 and 2 drilling results defined low-grade mineralised zones. Drilling initiated at the Roberts deposit confirmed the presence and potential of economic ore zones within and outside the optimised pit.

Guinea: At Siguiri, a total of 74,939m was drilled during the year.

Kami drilling has shown that the mineralisation extends into the fresh rock and into oxide in Kami East saddle. Bidini drilling has shown that the mineralisation extends to the east of the pit in oxide. Silakoro West drilling was completed and confirmed the mineralisation.

Silakoro North drilling intersected mineralisation associated with disseminated sulphides. Foulata East drilling results show unmineralised albitite, while the main Foulata drillholes indicate the potential extension of mineralisation at depth and along the trend. Advanced grade control (AGC) drilling at Foulata confirmed the model.

At Saraya, drilling confirmed the extension of shallow mineralisation to the north and deeper along the plunge. The Saraya AGC drilling confirmed the model despite defining thicker internal waste intervals. At Seguelen PB2 drilling confirmed the extension of the mineralisation in the fresh rock.

The Sanu Tinti infill drilling crossed potentially mineralised breccioconglomerates layers. At Niono, reconnaissance drilling showed weak potential for oxide mineralisation. The Doko, Block 4, reconnaissance drill programme is now 48% complete with some economic intersection.

At Balato North, Saraya West EL and Setiguiya West reconnaissance drilling showed negative results. Field visits and reviews confirmed the potential of the Carbonate Hills (East and Central) targets.


Ghana: At Iduapriem, a total of 21,279m of drilling was completed in 2019. Exploration focused on Mineral Resource conversion drilling at Block 1, Ajopa, Efuanta and Block 4S. Regional mapping of the hydrothermal targets commenced during the year as well as auger drilling at Mile 8 and Mile 5W targets.

At Obuasi, drilling started on 27 May 2019 with capital drilling on 41 level, grade control drilling on 17 and 22 levels, and expensed exploratory drilling in the GCS top area.

The 41-level drill programme completed 7,921m of combined RC and diamond drilling. Two multi-purpose RC/diamond rigs are being used to accelerate data acquisition and reduce costs. The grade control programme drilled 3,480m and showed continuity of the Obuasi fissuremake an application in terms of grade and structure. The 5,475msection 102 of exploratory drilling indicated potentialthe MPRDA at the DMRE after the closing date of the SA Sale Agreement requesting, among other matters, the incorporation of this mining right into the mining right with DMRE reference GP 30/5/1/2/2/01 MR (the “Harmony Consolidation Application”). AngloGold Ashanti also executed a notarial conditional deed of abandonment pursuant to which it conditionally abandons this mining right in terms of section 56(f) of the footwall splays.MPRDA (the “Deed of Abandonment”) on condition that ministerial consent is granted in respect of the Harmony Consolidation Application. On 17 January 2022, the Harmony Consolidation Application was submitted to the DMRE. On the date of the grant of the Harmony Consolidation Application, AngloGold Ashanti will cease to be a holder of any mining rights in South Africa. Once the transaction has been fully implemented, the general laws relating to mining outlined above will no longer be applicable to the company, other than the statutory duty of care in terms of NEMA as described above.



AFRICA REGION

Democratic Republic of the Congo: (DRC)

General laws relating to mining

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






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

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

The Reformed DRC Mining Code grants the DRC Minister of Mines the authority to grant, refuse, suspend or terminate mineral rights, subject to conditions set out in the Reformed DRC Mining Code. Mineral rights may be granted in the form of exploration permits for an initial period of five years or in the form of mining permits which are granted for an initial period of 25 years. Mining permits are granted upon successful completion of exploration and satisfaction of certain requirements, including approval of a feasibility study, an environmental impact study and an environmental management plan. The holder of a mining permit is required to commence development and mine construction within three years of the award of such permit. Failure to do so may lead to forfeiture of the mining permit. To protect and enforce rights acquired under an exploration or mining permit, the Reformed DRC Mining Code provides, depending on the nature of a dispute or threat, administrative, judicial and national or international arbitral recourses.

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

Tax laws relating to mining

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

The standard rate of VAT is 16 percent and is applicable to all mining companies. In the DRC, Kibali Goldmines is due certain refunds of VAT which, to date, remain outstanding. During 2021, AngloGold Ashanti did not recover any VAT offsets and refunds from its operations in the DRC. We believe that our attributable share of the net recoverable VAT balance (including recoverable fuel duty and after discounting provisions) owed to us by the DRC government amounted to $73 million as of 31 December 2021. While an agreement was reached with the DRC government on the reimbursement of the refundable VAT in 2018, uncertainty remains regarding the timing and level of cash receipts and offsets against other taxes for purposes of the recovery of our VAT receivables in the DRC.

The Reformed DRC Mining Code also provides for a level of fiscal stability. A totalstability clause stipulates that existing tax, customs and exchange control provisions applicable to mining activities are guaranteed to remain unchanged for a period of 25,210m was drilled at Kibalifive years from the enactment of the Reformed DRC Mining Code.

Foreign exchange control regime

The Reformed DRC Mining Code imposed new exchange control rules requiring that mining title holders repatriate onshore 60 percent of sale revenues received during the year.investment amortisation period and 100 percent once the investment amortisation is completed. As a result of these new rules, AngloGold Ashanti was not able to fully repatriate dividends from its DRC operations to date.

The drilling results at Gorumbwa-Sessenge gap support the continuity of the mineralisation from Gorumbwa into the gap.

At Ikamva, drilling observations support the model while at Ikamva-East, the drilling programme was completed, and the results returned support the consistency of the two lenses. Two holes were drilled into the Kalimva-Ikamva Hinge zone with results supporting the model of a potential link between the two structures.

Results also suggest the presence of other shoots pertaining to the Kalimva system.

The orientation drilling programme along the Zakitoko-Birindi trend was completed and indicate an extension down dip and along strike. A data review of the Aindi area was conducted leading to identification of four zones of interest.


In the Oere-Kalimva Gap, the drilling programme is complete and indicates no mineralisation within the gap. While in the Mofu-Oere gap, a trenching programme showed weak results from surface that increase down dip and plunge.

Eight trenches were excavated in the Mandungu-Memekazi-Renzi trend with overall results supporting the model and the trenching programme at Memekazi Northeast, returning results that support the potential of the area.

At Sayi, the results support the model and continuity of the interpreted mineralisation. While drilling in the Sayi-Mengu gap returned narrow intercepts. Results from the Renzi trenching programme support the model, though they are relatively low grade, while the Oere drilling results support the presence of highgrade domains within the mineralisation envelope.

A soil sampling programme in the KZ South area returned results supporting potential for a mineralised system. At Pakaka, drilling results from the hole furthest southeast support a consistently thin high-grade mineralisation along the sheared contact observed in the pit.

Mali: No drilling was completed in 2019.

Australia:At Sunrise Dam, six underground rigs were in use during the period, with most drilling taking place at Vogue, Midway Shear (MWS) Steeps and Elle, as well as at Stella (Target 18) and Steeps below Sunrise Shear Zone (Target 01). Commissioning of a seventh underground rig took place during November and an eighth rig was commissioned in December 2019.

One surface rig was in operation, targeting the southern extensions of the deposit from surface, 520m and 360m south of the current Ore Reserve from the Cleo waste dump.

At Tropicana, mine drilling consisted of infill drilling at Havana to upgrade the Mineral Resource confidence and assist in the mining option studies. Significant results were returned from the infill drilling at Havana, as well as encouraging results from drilling at Havana South down-dip.

Regional drilling was concentrated at Iceberg, Tumbleweed, New Zebra, Angel Eyes Voodoo Child, Wild Thing, Electra, Mojito and Monsoon. Regional drilling produced an important result from RC drilling at Voodoo Child that indicates mineralisation is present ca. 500m along strike from the defined prospect.

Projects

Colombia: The greenfields projects in Colombia make a significant contribution to AngloGold Ashanti’s Mineral Resource with La Colosa, Quebradona and Gramalote collectively contributing 38.5Moz. Quebradona and Gramalote contribute 4.3Moz to the gold Ore Reserve. Quebradona also has a copper Ore Reserve of 3,068Mlbs. Both Quebradona and Gramalote are at various stages of feasibility study while the La Colosa project is currently under force majeure, pending the necessary environmental permits.

The Gramalote project, a joint venture between2021, AngloGold Ashanti and B2Gold Corp (B2Gold) in Colombia, lies on the eastern flank of the Cordillera Central, near the towns of Providencia and San Jose del Nus in the municipality of San Roque, in the north-west of the Antioquia Department. It is approximately 230km north-west of Bogota and about 120km north-east of Medellin.


In September 2019, AngloGold Ashanti announced that an agreement had been reached with B2Gold, under which B2Gold would fund an investment and exploration programme in 2020 to the value of $13.9repatriated $231 million in order to earn back to a 50:50 partnership and assume management of the project effective 1 January 2020. Completion of the feasibility study for Gramalote is targeted for the end of 2020. The project has several key infrastructure advantages including reliable water supply,from its close proximity to key infrastructure and a technically capable workforce in country.

As per the agreement, B2Gold assumed management of the Gramalote joint venture on 1 January 2020. On 21 January 2020, B2Gold announced positive results from the updated preliminary economic assessment (PEA) for the Gramalote Ridge deposit, a part of the Gramalote project. The PEA updates and enhances previous studies on the Gramalote project in several areas.

B2Gold is currently completing approximately 42,500m of infill drilling at Gramalote Ridge to convert the existing Inferred Mineral Resource to the Indicated category, and 7,645m geotechnical drilling for site infrastructure.

The Gramalote joint venture will continue to advance community resettlement programmes, establish coexistence programmes for small artisanal miners, to work on health, safety and environmental projects and to continue to work with government and local communities on social programmes.

B2Gold, as manager, plans to continue to complete and submit the feasibility work by 31 December 2020. The main work programme for feasibility is infill drilling to confirm and upgrade the Inferred Mineral Resource to the Indicated category.

The Environmental Impact Study and Project Implementation Plan for the Gramalote project have been fully approved by the National Authority of Environmental Licences of Colombia. Due to necessary modifications to the processing plant and infrastructure locations, a Modified Environment Impact Study and a Modified Project Implementation plan were submitted and are currently in the final stages of approval. If the final economics of the feasibility study are positive and the joint venture makes the decision to develop Gramalote as an open pit gold mine, B2Gold would use its proven internal mine construction team to build the mine and mill facilities, and operate the mine on behalf of the joint venture.

The Quebradona deposit is located approximately 104km south-west from Medellin, Antioquia Department and is a porphyry-related, copper-gold mineralised stock work system, located within the Western Cordillera of Colombia. Until 2019, the project was a joint venture with B2Gold (5.7% and diluting) and AngloGold Ashanti (94.3% and operator). During 2019, the 5% dilution threshold was reached and the parties entered into a royalty agreement in which B2Gold transferred the minority interest in the joint venture to AngloGold Ashanti in exchange for a royalty fee during production.

During the year, AngloGold Ashanti continued with the exploration programme, with the key aim of developing the feasibility study, completing and submitting the environmental and construction licence requests (filled in November 2019), and securing the land required for project implementation. The Quebradona project is an attractive business case of ca. 8.7Moz gold equivalent, with required capital investment estimated at around ca. US$1billion and an internal rate of return at approval stage of 15% (meeting our required hurdle rate). 2020 will be a critical year for the project, with an estimated investment of approximately $64 million, targeted at the following key milestones:
Complete the feasibility study and present it to the board for approval in November 2020;
Obtain the environmental and construction licence by November 2020; and
Complete the process of securing the land for project implementation.

The La Colosa project is located approximately 150km west of Bogota in the Tolima Department. It is a very large porphyrystyle gold deposit discovered by the Colombia greenfields exploration team in 2006. The project is 100% owned by AngloGold Ashanti. The project comprises a singular large deposit likely in excess of 28.45Moz of mineral resources and endowment. The project’s pre-feasibility study began in 2010 and was formally put on care and maintenance in April 2017. A second-time force majeure was granted pending the approval of environmental permits. The force majeure is expected to be renewed in June 2020 if the conditions associated with the environmental licence permits remain.



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, in the form of dividends from Kibali (Jersey) Limited. Kibali (Jersey) Limited received such cash from Kibali Goldmines S.A. in the form of loan repayments (AngloGold Ashanti’s attributable share: $150 million) and Mali;dividends (net of withholding taxes) (AngloGold Ashanti’s attributable share: $81 million). Our attributable share of the outstanding cash balances awaiting repatriation from the DRC amounted to $499 million as of 31 December 2021. The cash and cash equivalents held at Kibali Goldmines are subject to various steps before they can be distributed to Kibali (Jersey) Limited and are held across four banks in the DRC, including two domestic banks.
Australia – operations in Australia; and
Americas – operations in Argentina and Brazil, and exploration projects in Colombia.
The above four regions also correspond to



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AngloGold Ashanti’s four business segments.rights and permits

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 investmentsholds a significant stake in principal subsidiaries and joint venture interests, see “Item 19: Exhibits – Exhibit 19.8 Principal subsidiaries and operating entities at 31 December 2019” for details.

4D.PROPERTY, PLANTS AND EQUIPMENT

For more information about AngloGold Ashanti’s mines, including as to the company’s mining rights and licences refer to “Item 4B: Business Overview—The Regulatory Environment Enabling AngloGold Ashanti to Mine”.

Mine, operation and business unit are used interchangeably. Percentages indicate the ownership interest held by AngloGold Ashanti. All operations are 100 percent owned unless otherwise indicated.

AngloGold Ashanti’s operating mines are all accessible by road.

CONTINENTAL AFRICA

AngloGold Ashanti has seven mining operations within the Continental Africa region. MiningKibali gold mine which is from both open pit and underground, with Obuasi being an underground mine in a redevelopment phase, Iduapriem, Siguiri, Morila and Sadiola being open pit mines, and Kibali and Geita being a combination of open pit and underground mines.

DEMOCRATIC REPUBLIC OF THE CONGO (DRC)
Description
Kibali Gold Mine, located in the north-eastern part of the DRC near the international borders with Uganda and South Sudan,is the sole operation in the DRC.

DRC - Kibali
Description
The Kibali Gold Minegold mine is owned by Kibali Goldmines which is a joint venture (JV) between AngloGold Ashanti (45 percent), Barrick Gold Corporation (45 percent), AngloGold Ashanti (45 percent) and Société MiniereMinière de Kilo-Moto SA UNISARL (SOKIMO),S.A. (“SOKIMO”) (10 percent) which represents the interest of the DRC government. AngloGold Ashanti and Barrick Gold Corporation each have a state-owned50 percent interest in Kibali (Jersey) Limited which holds their respective 45% interest in Kibali Goldmines.

The Kibali gold company owning the balance. Kibaliproject is operated by Barrick Gold Corporation. The mine is located adjacent to the villageCorporation and comprises ten exploitation permits, of Doko, which is locatedeight expire in the west of the project area. Kibali is approximately 210 kilometres by road from Arua, on the Ugandan border2029 and immediately north of the district capital of Watsa.

The operational area falls within the administrative territory of Watsatwo in Haut Uélé province. The operation comprises both open pit and underground mining. First gold was poured in September 2013 from the open pit operations. Development of the underground mine commenced in 2013. The first underground development ore was mined in 2013 and stoping commenced in 2015.Initial production was via a twin decline from surface. From 2018 onwards, the majority of ore was hoisted up the shaft. The decline to surface is used to haul some of the shallower zones and to supplement shaft haulage. The underground mine has both a ramp and shaft system, with the shaft reaching a depth of 740 metres. Kibali has a processing plant capable of producing an average of 600koz of gold per annum by treating 7.2Mtpa. The current processing plant can treat both oxide and fresh sulphide material and is configured for flotation and ultra-fine grind of the flotation concentrate, a treatment that is required for the sulphide ore type before leaching. Power to the mine is self generated by a combination of hydroelectric and diesel generators.

The Mineral Resource and Ore Reserve are covered by2030. Those exploitation permits (11447, 11467, 11468, 11469, 11470, 11471, 11472, 5052, 5073, and 5088) totalling 1,836kmcover an area of approximately 1,836 km2. The Kibali Gold Mine was granted in the 10 exploitation permits under the applicable DRCMoto goldfields.


Ghana

General laws relating to mining code, seven

Control of which are valid until 2029minerals and three of which are valid until 2030.mining companies

Geology
The Kibali Gold Mine is located within the Moto Greenstone Belt, which consistsConstitution of Archean Kibalian volcano-sedimentary rocks and ironstone-chert horizons that have been metamorphosed to greenschist facies.

The combined Karagba, Chauffeur and Durba (KCD) deposit is host to the majority of the currently defined Mineral Resource and Ore Reserve,Ghana as well as the current open pitMinerals and undergroundMining Act, 2006 (Act 703) (the “GMM Act”) provide that all minerals in Ghana in their natural state are the property of the State and title to them is vested in the President on behalf of and in trust for the people of Ghana, with rights of reconnaissance, prospecting, recovery and associated land usage being granted under licence or lease. The grant of a mining operations. KCDlease by the Ghana Minister of Lands and Natural Resources (the “LNR Minister”) upon the advice of the Minerals Commission is hosted withinsubject to parliamentary ratification unless the mining lease falls into a mineralised corridorclass of transactions exempted by the Ghanaian Parliament. The LNR Minister has the power to object to a person becoming or remaining a controller of a company which has been granted a mining lease if the LNR Minister believes, on reasonable grounds, that the public interest would be prejudiced by the person concerned becoming or remaining such a controller.

Stability and development agreements

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

Ghana Stability Agreement

In 2004, AngloGold Limited and the Government of Ghana signed a stability agreement (the “Ghana Stability Agreement”) governing certain aspects of the fiscal and regulatory framework under which the company would operate in Ghana for a period of 15 years following the implementation of the business combination between AngloGold Limited and Ashanti Goldfields Company Limited. In June 2018, the Ghana Stability Agreement ceased to apply to the Obuasi mine as a result of the parliamentary ratification of a new development agreement and a new tax concession agreement in relation to the mine (as described below). However, the Ghana Stability Agreement continued to apply to the Iduapriem mine until it expired in April 2019. Since then, AngloGold Ashanti (Iduapriem) Limited (“AGA Iduapriem”) no longer benefits from the Ghana Stability Agreement. Relevant engagements are currently ongoing between AGA Iduapriem and the Minerals Commission to obtain a new agreement for the Iduapriem mine.

Obuasi Development Agreement

AngloGold Ashanti (Ghana) Limited (“AGA Ghana”) negotiated a new development agreement in relation to the Obuasi mine (the “Obuasi DA”) with the Government of Ghana. On 21 June 2018, the Ghanaian Parliament ratified the Obuasi DA which contains stability terms as provided for in stability agreements. The Obuasi DA confers a number of exploration prospects.

The known depositsrights and obligations on AGA Ghana with respect to the Obuasi mine, including, among other matters, (i) the stabilisation of the Kibali project are hosted alongfiscal and regulatory framework (except for enactments promoting the use of Ghanaian goods and services) for a reactivated thrust planeperiod of 10 years (with a potential of it being extended for five years); (ii) the right to hold up to 80 percent of proceeds received from exporting minerals in foreign currencies outside of Ghana; (iii) obligation to give preference to materials and goods made in Ghana as well as services provided by Ghanaians; and (iv) the right to peaceful enjoyment and protection against expropriation.






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Obuasi Tax Concession Agreement

Fiscal terms, which will ordinarily form part of a single stabilisation document, were separated from the Obuasi DA. Hence a separate tax concession agreement in relation to the Obuasi mine (the “Obuasi TCA”) was signed with the Government. On 21 June 2018, Parliament ratified the Obuasi TCA with a concession period until 31 December 2027. The Obuasi TCA contains a number of tax concessions for AGA Iduapriem with respect to the Iduapriem mine, including, among other matters, (i) a corporate income tax rate of 32.5 percent or such lower rates as may be fixed by law (instead of the current statutory rate of 35 percent); (ii) exemption of certain transactions from capital gains tax; (iii) a sliding scale royalty rate ranging from 3 percent to 5 percent for a price ranging from $1,300 up to $2,000 and above per ounce (instead of the current flat rate of 5 percent); and (iv) certain VAT exemptions and refunds.

Government’s Golden Share

Section 60(1) of the GMM Act provides that creates plunging lodes of mineralisation as exemplified by the KCD deposit. The majority of gold mineralisation identified to date is disseminated style, hosted within a sequence of coarse volcaniclastic and sedimentary rocks. The mineralisation is generally stratigraphically bound and associated with carbonate-silica-albite alteration with minor sulphide.

GHANA
Description
AngloGold Ashanti has two mines in Ghana: Obuasi, currently in a redevelopment phase, is an underground mine and Iduapriem is an open pit mine.


Ghana – Iduapriem

Description
Iduapriem, wholly owned by AngloGold Ashanti since September 2007, is situated in the western regionGovernment of Ghana some 70km northcan require a mining company to issue for no consideration to the Republic of Ghana a special share (a “Golden Share”). A Golden Share in AGA Ghana was issued to the Government of Ghana and the Obuasi DA confirms that the Government’s rights with respect to its Golden Share apply only in respect of AGA Ghana’s assets and operations in Ghana. The Golden Share confers certain rights on the Government in respect of AGA Ghana. For example, written consent of the coastal city of Takoradi and approximately 10km southwestholder of the town of Tarkwa.

Iduapriem is a multiple open pit operation that currently sources ore from the Ajopa and Block 7 and 8 pits. The Iduapriem treatment plant has two semi-autogenous grinding mills and two ball mills which run in two parallel circuits, each with a semi-autogenous grinding mill and a ball mill. The carbon-in-pulp plant has a capacity of 5.1Mtpa. Power is supplied to the mine by the Volta River Authority (VRA) and GridCo.

Iduapriem comprises the Iduapriem, Ajopa North and South and Teberebie mining leases on a 139.77km2 concession. Applications have been submitted to the minerals authority for the renewal of the mining permits which, according to Ghanaian law, allows for the continuation of mining on the expired leases while the renewal process is in progress. The environmental certificate for the project expired in October 2017. However, the 2017- 2020 Environmental Management Plan (EMP), whichGolden Share is required for, among other matters, (i) any amendment of the rights and restrictions in respect of the Golden Share; (ii) the voluntary winding-up or voluntary liquidation of AGA Ghana; (iii) the disposal of any mining lease held by AGA Ghana; and (iv) the disposal of all or substantially all of the assets of AGA Ghana. The holder of the Golden Share generally does not have the right to renewparticipate in the certificate, was submitted on 6 April 2017. Comments were receivedprofits or assets of AGA Ghana (by way of dividend or other capital issuances), but is entitled to attend any general meeting of shareholders.

Tax laws relating to mining

Currently, the main tax laws in Ghana include the following acts and regulations, which have been frequently amended over the years:
•Income Tax Act, 2015 (Act 896) (as amended) and Income Tax Regulations, 2016 (L.I. 2244);
•Customs Act, 2015 (Act 891) (as amended) and Customs Regulations, 2016 (L.I. 2248);
•Value Added Tax, 2013 (Act 870) (as amended) and Value Added Tax Regulations, 2016 (L.I. 2243); and
•Revenue Administration Act, 2016 (Act 915).

The Income Tax Act, 2015 (Act 896) ringfences and taxes income derived from mining operations at the rate of 35 percent. The Obuasi TCA for AGA Ghana provides for a stabilised income tax rate of 32.5 percent. AGA Iduapriem currently pays income tax at the rate of 35 percent.

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

Environmental laws relating to mining

Mining companies are required, under the GMM Act, Environmental Assessment Regulations, 1999 (L.I. 1652) and Water Use Regulations, 2001 (L.I. 1692), to obtain all necessary approvals from the Environmental Protection Agency (EPA)(the “Ghana EPA”) and, in June 2017 together with invoices for paymentappropriate cases, the Water Resources Commission and/or the Ghanaian Minerals Commission before undertaking mining operations. This includes undergoing an environmental impact assessment process and, following the issuance of the environmental permit, feesperiodically preparing environmental management plans, which include details of the likely impacts of mining operations on the environment and local communities, as well as a comprehensive plan and timetable for actions to mitigate and remediate any adverse effects of the mining operations, for submission to the Ghana EPA. The Minerals and Mining (Health, Safety and Technical) Regulations, 2012 (L.I. 2182) also impose further obligations to obtain the necessary permits from the Inspectorate Division of the Ghana Minerals Commission for the certificate. AAIL submittedoperation of mines. The environmental permits for AGA Ghana (for the revised EMP (withObuasi redevelopment project and for the EPA’s comments addressed)construction and operation of tailings and water infrastructure projects) are valid until November 2022. The environmental permits for AGA Iduapriem (for the re-mining of Block 5 and for the tertiary crusher installation project) are valid until July 2022. Renewal processes for the environmental permits for both mines are underway. The permit for the tailings infrastructure project of AGA Iduapriem is valid until 2023.

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



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years. Each mining company is typically required to secure a percentage (typically between 50 percent and 100 percent) of the estimated rehabilitation costs by posting reclamation bonds underwritten by banks and restricted cash. The terms of each reclamation bond are determined by a reclamation security agreement between that company and the Ghana EPA. Both AGA Ghana and AGA Iduapriem have bank guarantees in place for environmental reclamation liabilities as well as escrow accounts with joint signatories from the Ghana EPA. The guarantees for AGA Iduapriem will expire in October 2022, whereas the guarantees for AGA Ghana are valid until December 2022.

Foreign exchange, export and other rules

Retention of foreign earnings

The Obuasi mine is permitted to retain 80 percent of its foreign exchange earnings in an offshore foreign exchange account, whereas the Iduapriem mine is allowed to only retain 45 percent. In addition, the company has permission from the Bank of Ghana to retain and use US dollars, outside of Ghana, to fulfil payment obligations to the EPA on 10 August 2018company’s hedge counterparties which cannot be met from the cash resources of its treasury company.

Rules regarding the export of gold and madediamonds

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

Local assaying and refinement policies

In November 2016, the Ministry of writing this annual report.Lands and Natural Resources issued a ministerial directive appointing the PMMC as designated laboratory for assaying in Ghana. The Ghanaiandirective requests all persons holding export licences for gold to submit all gold to be exported to the PMMC for assay before export. Mining businesses, including AngloGold Ashanti, acting through the Ghana Chamber of Mines is currently engaging withwere opposed to this directive due to its potential negative impact on mining companies in the environmental authorities (EPA) on behalfregion. As a result, the Chamber initiated proceedings to reverse or modify the directive. Following discussions in respect of the companymining industry’s concerns, the Chamber and other sister mines whose certificatesGovernment agreed on the modalities for implementing the national assaying policy and other permits are outstanding. There isit was introduced in February 2018 following a reasonable basisone-month pilot among certain mining companies. Subsequently, in June 2019, the LNR Minister released a statement reiterating the Government of Ghana’s plans to conclude that all permits requiredlocally refine 30 percent of the gold produced in the country. Discussions between the Ghana Chamber of Mines and the Government of Ghana’s economic management team in 2019 led to the Chamber agreeing to consider the proposal and for the project will be obtained.parties to discuss detailed modalities to ensure that a move to locally refined gold does not become detrimental to the mining industry.


GeologyLocal content and local participation policy

Mining companies must submit a detailed programme for the recruitment and training of Ghanaians with a view to achieving “localisation”, which is the replacement of expatriate personnel in a company’s Ghanaian operations by Ghanaian personnel. In addition, mining companies must give preference to Ghanaian products and personnel, to the maximum extent possible, consistent with safety, efficiency and economies. The IduapriemMinerals and Teberebie properties are located alongMining (General) Regulations, 2012 (L.I. 2173) give further details on the southern endlocalisation policy. On 15 October 2020, the Minerals and Mining (Local Content and Local Participation) Regulations, 2020 (L.I. 2431) were adopted in order to expand the scope of the Tarkwa basin. The mineralisation is containedlocal content requirements in the Banket Seriesmining industry. For example, there are restrictions on the number of quartz pebble conglomerates, breccia conglomeratesexpatriates that can be employed by mineral rights holders and metasediments withinmine support service providers in a bid to enhance the Proterozoic Tarkwaian System. The outcropping Banket Seriesparticipation of rocksGhanaians in the mine area form prominent, arcuate ridges extending southwards from Tarkwa, westwards through Iduapriemmining industry.

AngloGold Ashanti’s rights and northwards towards Teberebie. The gold is hosted within the conglomerates.permits


Ghana - Obuasi


Description
The Obuasi wholly owned by AngloGold Ashanti since 2004, is located inmine originally held four contiguous mining leases, the Ashanti Region of Ghana, some 260 kilometres north-west of the capital Accra and approximately 60 kilometres south of Kumasi.

Obuasi Mining operations are primarily underground, to a depth of 1.5 kilometres. Obuasi started production in 1897, was placed on limited operations towards the end of 2014, and on care and maintenance from 2016. Some aspects of the mine continued under limited operational conditions, including the development of the underground decline. A favourable feasibility study was completed in 2017 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 to proceed with the project. The redevelopment project, to establish Obuasi as a modern, efficient, mechanised, underground operation, commenced in late 2018Lease and the first gold was poured late in 2019.

Phase 1 of the project, which set up the plant to achieve a daily processing rate of 2,000t of ore, was completed. Phase 2, which aims to expand plant capacity to 4,000t a day will continue through 2020. Existing infrastructure includes a 2.4Mtpa processing plant with flotation and bacterial oxidation (BIOX), underground development, hoisting shafts and associated infrastructure, power and water reticulation, office complexes, workshops and company housing estates. Power is supplied to the mine by the Volta River Authority (VRA) and GridCo.

The Mineral Resource and Ore Reserve are covered by the Obuasi Concession comprising 152.6km2 and the Binsere Concession parts 1, 2 and 3 comprising 48.86km2.Mining Leases. The mining concessions, which expireObuasi Mining Lease was granted by the Government of Ghana on 5 March 2054, are covered by a Development Agreement1994, covering an area of approximately 338 km2 in the Amansie East and Tax Concession Agreement withAdansi West districts of the government of Ghana.

Geology
The gold deposits at Obuasi are part of a prominent gold belt of Proterozoic (Birimian) volcano-sedimentary and igneous formations which extendAshanti region, for a distanceterm of approximately 300 kilometres in a north-east/south-west trend in south‑western Ghana. Obuasi mineralisation is shear-zone related and there are three main structural trends hosting gold mineralisation: the Obuasi trend, the Gyabunsu trend and the Binsere trend.

Two main ore types are mined:
quartz veins which consist mainly of quartz with free gold in association with lesser amounts of various metal sulphides of 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

sulphide ore which 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. Higher gold grades tend to be associated with finer grained arsenopyrite crystals. Other prominent minerals include quartz, chlorite and sericite. Sulphide ore is generally refractory.


REPUBLIC OF GUINEA (GUINEA)

Description
Siguiri Gold Mine is AngloGold Ashanti’s sole operation in Guinea.

Guinea - Siguiri
Description
Siguiri Gold Mine is 85 percent owned and operated by AngloGold Ashanti and 15 percent by the government of Guinea. Siguiri is located approximately 850 kilometres north-northeast of Conakry, 25 kilometres northwest of the town of Siguiri and 220 kilometres southeast of the Malian capital Bamako, near the Malian border.

Siguiri is currently a multi-pit oxide gold mining operation, operated by a contract miner. Processing of the ore is done by a hybrid carbon-in-leach (CIL) circuit processing plant converted from carbon-in-pulp (CIP) in 2018. The plant is capable of treating 50% hard ore post the commissioning a new ball mill and 3 stage crushing plant in Q1 of 2019. The original processing facility was designed to process soft ore only and was successfully optimised to reach an average throughput of 11.8Mtpa. Power to the mine is self-generated.

Siguiri is mined under licence from the government of Guinea. The Mineral Resource and Ore Reserve are covered by SAG mining concession D/97/171/PRG/SGG, totalling 1,494.5km2. The original SAG concession was granted under the Convention de Base between the République de Guinée and SAG signed on 4 August 1997. The concession is to be explored and mined exclusively for gold, silver and diamonds by SAG for 2530 years from the date of the agreement, untilagreement. The Binsere Mining Leases were granted on 9 April 1998, covering an area of 140 km2, for a term of 30 years from the date of the agreement. All leases in respect of the Obuasi mine had been duly ratified in accordance with Ghanaian law. In March 2007, the Government of Ghana agreed to extend the term of the Obuasi Mining Lease for a further term of 30 years. The amended Obuasi Mining Lease was also ratified by Parliament on 23 October 2008. The Obuasi Mining Lease will expire in March 2054 and the Binsere Mining Leases in April 2028. The mining leases are renewable. On 3 March 2016, the Minerals Commission approved AGA Ghana’s application to surrender approximately 273.54 km2 of the area to the Government of Ghana, reducing the lease areas to 201.46 km2. The remaining parcel of land that will be subject to the mining lease is situated within various villages and townships in the region but excludes the municipality of Obuasi. On 15 January 2021, the



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

Iduapriem

The Iduapriem mine operates under four different mining leases: the Iduapriem Mining Lease (LVB1539/89) (36.47 km2), the Ajopa Mining Lease (LVB/WR326/09) (46.12 km2), the Teberebie Mining Lease (LVB3722H/92) (28.53 km2) and the Ajopa South Mining Lease (LR#1109/1999) (28.10 km2). On 17 February 2020, the mining leases were extended for a further period of 15 years and such leases will now expire in February 2035. All leases in respect of the Iduapriem mine have been duly ratified in accordance with Ghanaian law.


Guinea

General laws relating to mining

In Guinea, the mining industry is primarily regulated by Law L/2011/006/CNT dated 9 September 2011 as amended by Law L/2013/053/CNT dated 8 April 2013 and promulgated by Decree D/2013/075/PRG/SGG dated 17 April 2013 (together, the “Guinea Mining Code”).

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

In 2017, Decree D/2017/285/PRG/SGG was adopted, which sets forth the conditions for the constitution and management of the Local Development Fund (“Fodel”), as well as Joint Order A/2017/6326/MMG/MATD/SGG, which sets forth the conditions for the use, management and control of the Fodel. Together, these set forth the use of the mining companies’ financial contribution to the development of the local communities and the rules applying to the Fodel, which was created under the Guinea Mining Code. On 13 July 2018, a Joint Order A/2018/5212/MEF/MMG/MB/MATD/SGG was issued, which regulates the use, management and monitoring of the resources allocated to local authorities pursuant to article 165 of the Guinea Mining Code. In 2019, an inter-ministerial committee was created to supervise and control the Fodel through the adoption of Joint Order AC/2019/089/MMG/MATD/SGG setting out the conditions for the constitution, powers and management of said inter-ministerial committee. On 6 September 2019, Decree D/2019/263/PRG/SGG was issued, which sets forth local content requirements in the framework of the implementation of public and private projects in Guinea.

On 16 June 2020, a new procedure for the export of gold by mining companies was enacted through the adoption of Decree D/2020/113/PRG/SGG, which sets out, amongst other things: (i) when the industrial production tax referred to in article 161-1 of the Guinea Mining Code shall be paid, and (ii) the process to be followed to export gold bullion.

On 27 April 2021, a Joint Order AC/2021/824/MMG/BCRG/SGG was issued establishing the fees and costs charged by the Guinean mining authorities and the Guinean Central Bank in connection with the administrative procedures for the export of gold by industrial and semi-industrial companies.

AngloGold Ashanti’s rights and permits

The group’s Guinean subsidiary, Société AngloGold Ashanti de Guinée S.A. (“SAG”), has title to the Siguiri mine in the form of a mining concession, granted by virtue of Presidential Decree D/97/171/PRG/SGG, dated 4 August 2022. An updated concession1997, for a period of 25 years (the “Mining Concession”). The Mining Concession covers exploration and mining for gold, silver, diamonds and associated ores, and was negotiatedoriginally covered by a mining convention entered into with the governmentRepublic of Guinea in 2016. The Convention1993 and amended in 2005. On 28 June 2016, SAG and the Government of Guinea concluded a revised and consolidated mining convention (convention de Base will guide thebase révisée et consolidée) (the “Revised Mining Convention”) which encompasses a renewal of the term of the original mining concession in 2022. The SAG concessionconvention and other amendments necessary to support an expansion project to extend the life of the Siguiri mine (the “Expansion”). In compliance with the provisions of the Guinea Mining Code, the Revised Mining Convention was granted underratified by the Guinean National Assembly (Law L/2016/N°067/AN dated 30 December 2016, promulgated by Decree D/2017/015/PRG/SGG dated 24 January 2017), submitted to the Guinean Supreme Court which rendered a new amended Convention de Base between the République de Guinée and SAG signed on 28 June 2016favourable opinion (Judgement N°AC 005 dated 16 January 2017), and ratified by the Guinean parliament on 13 December 2016. The Convention de Base was ratified by the constitutional court and published in the Journal OfficielPresident of the Republic of Guinea (Decree D/2017/021/PRG/SGG dated 24 January 2017), following which it replaced the original mining convention and became effective on 24 January 2017. Dependent on the submission








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Key elements of the necessary renewal documentation on, or before, 4 March 2022,Revised Mining Convention include the concession is to be explored and mined exclusively for gold, silver and diamonds by SAG forfollowing:

•a duration of 25 years, fromexpiring 23 January 2042, subject to further renewal if mining operations continue;
•the term of the Mining Concession is aligned with the term of the Revised Mining Convention since the Republic of Guinea committed to maintain the Mining Concession for the entire duration of the Revised Mining Convention;
•SAG’s operations remain governed by the 1995 Guinea Mining Code (the prior mining code) and are only subject to the provisions of the Guinea Mining Code to the extent they are expressly set out in the Revised Mining Convention;
•the stability of the customs and tax regime is guaranteed for the entire initial term of the Revised Mining Convention, and subject to certain conditions being met, any renewal period(s);
•the Republic of Guinea holds a 15 percent free-carried/non-contributory interest;
•the Republic of Guinea is entitled to a royalty on gold of 5 percent based on a spot gold price as per LBMA fixing (PM) up until the date of agreementsteady state commercial production of the first phase of the Expansion, after which the royalty rate applicable to 13gold will vary depending on threshold prices as per LBMA fixing (PM), namely: 3 percent if the gold price is $1,300 or less, 5 percent, if above $1,300 and up to $2,000 and 7 percent if above $2,000;
•SAG benefits from 5-year income tax holiday from the beginning of steady state commercial production of the first phase of the Expansion, after which the income tax rate is set at 30 percent;
•a local development tax of 0.4 percent is payable on the sale price for gold and silver received by SAG up until 31 December 2041.2027, after which it will be increased to 0.6 percent;

•salaries of expatriate employees are subject to a 10 percent income tax;
Geology•goods imported into Guinea for purposes related to the construction and commissioning of the first phase of the Expansion are exempt from all customs taxes and duties; and
•SAG is committed to adopting and progressively implementing a plan for the effective rehabilitation of the mining areas disturbed or affected by its operations.

The Mining Concession covers an area divided into four blocks totaling approximately 1,495 km2. SAG has the exclusive right to explore and mine in any part of the concession area for the duration of the Revised Mining Convention. The Revised Mining Convention also grants SAG the option to secure certain land rights over additional areas currently covered by exploration permits, but to which SAG may need access for purposes of establishing roads or storage of tailings. The Mining Concession is due to expire on 4 August 2022. On 1 February 2022, a renewal request was filed in accordance with the provisions of the Revised Mining Convention. Pursuant to the Revised Mining Convention, the Mining Concession can be renewed for one or more period(s) that cannot exceed 10 years each as long as the Revised Mining Convention is in force.

The concessionRevised Mining Convention is dominatedsubject to early termination if the parties formally and expressly agree to it, if the last of the mining title held by Proterozoic Birimian rocksSAG expires or is relinquished without any renewal application having been filed, if all project activities are voluntarily suspended for a continuous period of 12 months or are permanently abandoned by SAG, or if SAG goes into voluntary liquidation or is placed into liquidation by a court of competent jurisdiction.


Mali

General laws relating to mining

The mining industry in Mali is primarily regulated by Ordinance No. 2019-022/P-RM dated 27 September 2019 containing the new mining code of the Republic of Mali (the “Mali Mining Code”) and Decree No. 2020-0177/PT-RM dated 12 November 2020 implementing the Mali Mining Code. On 8 December 2020, Decree No. 2020-0288/PM-RM enacted the new model mining convention referred to in Decree No. 2020-0177/PT-RM.

The Mali Mining Code applies to the mining operations previously carried out by AngloGold Ashanti entities in Mali (as further described below) except with respect to the validity, scope and duration of their exploitation permits and the provisions on tax and customs regime contained in their mining conventions (conventions d’établissement) for their remaining duration. In this regard, the transitory rules of the Mali Mining Code specify that mining conventions in force remain valid for their remaining term and their holders continue to benefit from the stability of the tax and customs regime set out therein.

Exploration and prospecting activities are carried out under exploration authorisations (autorisation d’exploration) or exploration permits (permis de recherche), which consistgive their holder the exclusive right to carry out exploration activities over a given area. Exploration authorisations are granted by the Mining Administration (Administration chargée des Mines) for a non-renewable period of turbidite facies sedimentary sequences. The two main typesthree months, while exploration permits are granted by Ministerial Order for a period of gold deposits which occur inthree years renewable twice for additional 3-year periods. Applications for exploration authorisations and exploration permits must contain various documents attesting to the Siguiri basinfinancial and are mined are:technical capacity of the applicant as well as a detailed works and costs programme.
laterite mineralisation (CAP) which occurs as surficial aprons
A large scale permit exploitation permit (permis d’exploitation de grande mine) is required to mine a deposit located within the area of colluvium or as palaeo‑channels of alluvial lateritic gravel adjacentan exploration permit and grants the holder an exclusive right to exploit the named substances and immediately above in-situ deposits; and
in-situ quartz-vein related mineralisation hosted in meta-sedimentsproceed with the better mineralisation associated with vein stockworks that occurs preferentially inprocessing and commercialisation of the coarser, brittle siltstonessubstances extracted within its perimeter. Large scale exploitation permits are granted by decree of the Head of Government for a maximum period of 12 years renewable for 10 year-periods until depletion of the deposits. An application must be submitted to the Mining Administration (Administration chargée des Mines) and sandstones.must contain


The mineralised rocks have been deeply weathered

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various documents attesting to below 100 metres in places to form saprolite mineralisation (oxide). With the percentagefinancial and technical capacity of available oxide ore decreasing,the applicant, a feasibility study, to investigate the exploitation of fresh rock material was completeda detailed environmental study in December 2015. The CIL combination plant conversion project began in 2017. The plant 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 sectionsrespect of the plantimpact of the project on the environment, an environmental permit, a closure and rehabilitation plan as well as a community development plan. As soon as the large scale exploitation permit is underway.granted, the permit holder must incorporate a company under the laws of Mali and assign the permit for free to this company. The State will have a 10 percent free-carried interest in the company. This interest will be converted into priority shares and the State’s participation will not be diluted in case of an increase in capital. In addition, the company is required to ensure that private Malian investors are offered the possibility to acquire 5 percent of their capital.



All mining titles mentioned above (save for the exploration authorisation) require a mining convention (convention d’établissement) to be signed by the State and the titleholder defining their rights and obligations, the duration of which is 20 years.
MALI
Description
AngloGold Ashanti has interests in two operations in Mali, namely, SadiolaAshanti’s rights and Morila. It operates one of these two operations, Sadiola.permits

Historically, AngloGold Ashanti previously had interests in the Morila, Sadiola and Yatela but entered intogold mines, all of which were governed by mining conventions (conventions d’établissement) covering exploration, mining, treatment and marketing in a sales agreementcomprehensive document. These documents include general provisions regarding exploration (work programme, fiscal and customs framework) and exploitation (formation of a local limited liability mining company, State interest, fiscal and customs framework governing construction and exploitation phases, exchange controls, marketing of the product, accounting regime, training programmes for local labour, protection of the environment, reclamation, safety, hygiene and dispute settlement). The Morila and Sadiola gold mines were sold in November and December 2020, respectively.

In April 2017, Société d’Exploitation des Mines d’Or de Yatela S.A. (“Yatela”), the company operating the Yatela gold mine, began the implementation of a closure plan in order to relinquish the property. In February 2019, withAngloGold Ashanti and its joint venture partner IAMGOLD Corporation announced an agreement to sell each of their 40% interests in Yatela to the stateGovernment of Mali, subject to several conditions precedent being fulfilled. Morila is in the final phase of closure and the Mineral Resource and Ore Reserve have been written off.

Mali - Morila
Description
AngloGold Ashanti has an effective 40 percent stake in Morila, as does Barrick Gold Corporation (operator). The state of Mali ownswhich holds the remaining 20 percent.

The Morila mine has operated since 2001 and is situated 280 kilometres southeast20% interest. Completion of Bamako, the capital of Mali. When mining concluded in 2009 with the depletion of the orebody, operations at Morila transitioned to stockpile and tailings retreatment. The plant treats 4.3Mtpa and 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 mine is a joint venture between AngloGold Ashanti (41 percent) and IAMGOLD (41 percent) and the government of Mali (18 percent).and an agreement for the sale of Sadiola was announced in December 2019. The transaction is subject to the fulfilment or waiver of a number of conditions precedent includingand has been delayed several times since 2019 due to political instability and related events in Mali as well as the receiptCOVID-19 pandemic. Yatela’s exploitation permit covers approximately 212 km2. Yatela has a 30-year permit which expires in 2030.


Tanzania

General laws relating to mining

Tanzania Mining Act and Tanzania Mining Regulations

Mineral rights in the United Republic of certain approvalsTanzania are principally governed by the Mining Act, Chapter 123 (R.E. 2019), as amended (the “Tanzania Mining Act”) and releasesthe Mining Regulations, 2010, as amended (the “Tanzania Mining Regulations”). The Tanzania Mining Act and the Tanzania Mining Regulations came into force in November 2010 followed by amendments to the Tanzania Mining Act in 2017 and subsequent amendments to the Tanzania Mining Regulations in 2018 and 2019. Those amendments, together with an Executive Order, introduced, among other matters, (i) the Tanzania Mining Commission; (ii) local content requirements for procurement of goods and services; and (iii) Mining Licence requirements of 5 percent of a licencee’s equity to be held by Tanzanians, with 80 percent of its managerial positions to be held by Tanzanians and 100 percent of other positions to be held by Tanzanians, in addition to the shareholding of the Government of Tanzania pursuant to Section 10 of the Tanzania Mining Act (i.e. free-carried interest).

Minimum shareholding and public offering

In 2016, the Mining (Minimum Shareholding and Public Offering) Regulations, 2016, as amended, was adopted. The regulations set out the requirement to sell shares to Tanzanian nationals, by way of a public offering and listing on the Dar es Salaam Stock Exchange, which will apply to companies that are carrying out large scale mining operations. The regulations also require all existing holders of a special mining licence to list a minimum of 30 percent of their shares on either the Main Investment Market or the Enterprise Growth Market Segment of the Dar es Salaam Stock Exchange within 6 months of the regulations coming into force, which was on 24 February 2017. However, the company believes the listing requirement conflicts with the mining development agreement. In September 2020, the Government of Tanzania published the Mining (Minimum Shareholding and Public Offering) (Amendment) Regulations, 2020, which exempts companies holding special mining licences from local listing requirements if such mining company has entered into an agreement with the Government of Tanzania that provides for a non-dilutable free-carried interest in such mining company and an economic benefits sharing arrangement.

Arbitration

Along with other major mining companies, AngloGold Ashanti’s subsidiaries are seeking a constructive dialogue with the Government of Tanzania to gain assurances that the Geita gold mine will not be affected by recent legal and fiscal changes adopted by the Government in light of their mining development agreements which guarantee (i) fiscal and regulatory stability,



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and (ii) an agreement between all parties before material legal and regulatory changes are made. As a precautionary step to safeguard its interests, AngloGold Ashanti commenced international arbitration proceedings against the Government of Tanzania in connection with the enactment of this legislation in July 2017. Declaratory relief is sought in accordance with the terms of the company’s existing mining development agreement to preserve its and its shareholders’ rights and interests in the Geita gold mine. AngloGold Ashanti is seeking confirmation from the Government of Mali.Tanzania that, as a result of its existing mining development agreement, the company does not fall within the scope of the new mining legislation that includes, among other things, (i) listing requirements; (ii) an increase in the rate of revenue royalties from 4 to 6 percent and a 1 percent clearance fee; and (iii) a right for the Government of Tanzania to (a) renegotiate existing mining agreements at its discretion, (b) receive a non-dilutable, free-carried interest of no less than 16 percent in all mining projects, and (c) acquire up to 50 percent of the shares of the mining company commensurate with the total tax expenditure incurred by the Government in favour of the mining company. AngloGold Ashanti can provide no assurance that the new mining legislation, including the listing requirements, will not apply to its operations in Tanzania and the outcome of the arbitration action may have a material adverse impact on the company’s results of operations and financial condition. See also “Item 8A: Legal Proceedings—Tanzania”.


The Sadiola mineCategories of mineral right licences

Ownership of and control over minerals on, in or under the land vest in the President of the United Republic of Tanzania. No person is situated in western Mali, 77 kilometresallowed to prospect for minerals or carry on mining operations except pursuant to the southauthority of a mineral right licence granted, or deemed to have been granted, under the Tanzania Mining Act or its predecessor acts. To enable a company to prospect or mine, the Tanzania Ministry of Minerals (“MEM”) initially grants an exclusive prospecting licence. Upon presentation of a feasibility study, together with certain other environmental, social and financial assurances, the MEM may then grant a form of licence for mining. Three categories of licences can be applied for under the Tanzania Mining Act: licences for exploration, licences for mining, and licences for ancillary activities. Licences for exploration include prospecting licences and gemstone prospecting licences. Licences for mining include special mining licences (if the proposed capital investment is equal to at least $100 million), mining licences (if the proposed capital investment is equal to between $100,000 and $100 million) and primary mining licences (reserved for Tanzanian citizens).

A prospecting licence grants the holder the exclusive right to prospect in the area covered by the licence for all minerals within the class of minerals applied for. An application for a prospecting licence is made to the Mining Commission and the licence, once granted, is valid for an initial term of four years. After the initial term, the licence is renewable for a further period of three years, with no option for renewal thereafter. Upon renewal, 50 percent of the regional capitalarea covered by the licence must be relinquished.

Mining is mainly carried out through either a mining licence or a special mining licence, both of Kayes and about 440 kilometres north-westwhich confer on the holder the exclusive right to conduct mining operations in or on the area covered by the licence. A special mining licence is granted for the shorter of either the estimated life of the capital cityore body indicated in the feasibility study report or such period as the applicant may request. The holder of Bamako.a special mining licence may apply for renewal of its licence at any time but no later than one year before the expiry of the licence and such renewal shall not be for a period exceeding the estimate life of the remaining ore body. Special mining licences have certain fiscal and other advantages over mining licences, as the holder of a special mining licence may enter into a mining development agreement with the Government of Tanzania to guarantee the fiscal stability of a long-term mining project and make special provision for the payment of royalties, taxes, fees and other fiscal imposts. A special mining licence holder may, in certain circumstances, unilaterally amend the programme of the mining operations agreed with the MEM.

Tax laws relating to mining

Currently, the main tax laws in Tanzania comprise the Finance Act, 2015 (No. 16), which came into force on 1 July 2015, and the Finance Act, 2017 (No. 4), which came into force on 1 July 2017. Both tax laws impose and revise certain taxes, duties, levies and fees. Among other provisions, inspection or clearance fees on the exportation or domestic use of minerals were introduced. Such exportation or domestic use is restricted unless such minerals have been inspected or cleared at the mining areas, ports, airports, border or posts and the clearing fee of 1 percent of the gross value of the minerals has been paid by the exporter or any other person in possession thereof. Local government levies and environmental management fees and charges apply as well.

Effective 20 July 2017, the Value Added Tax Act, 2014 (No. 5) (the “VAT Act”) was amended in order to restrict VAT relief for VAT input tax paid by mining companies on goods and services. Prior to the enactment of this amendment to the VAT Act, mining companies were entitled to 100% VAT relief in respect of the goods and services they purchased. The property liesamendment prohibits refunds for VAT input tax incurred on a series of raw products, including the exportation of “raw minerals”. Subsequently, the Tanzania Revenue Authority (“TRA”) denied our applications for VAT input credit refunds, which amounted to a total of $142 million (after discounting provisions) as of 31 December 2021, covering the period from July 2017 onwards, on the basis that all of the gold doré that we export constitutes “raw minerals” for purposes of the VAT Act. In response, the company filed formal notices of objection with the TRA stating that the exportation of gold doré is, in its view, not covered by the restriction since doré does not fall within the Galam Bamboukcategory of “raw minerals” as used in the VAT Act. On 22 February 2019, the Tanzania Mining Act was amended to introduce a definition for “raw minerals” which supports our interpretation that gold area, which straddlesdoré is excluded from the Mali-Senegal border closeprohibition. On 1 July 2020, the Finance Act, 2020 (No. 8), amended the VAT Act, without retrospective effect, in order to remove the border with Guinea.

The Sadiola gold deposit has been minedrestrictions on VAT input tax credits for the exportation of “raw minerals” as well as a series of other raw products. This recent amendment confirms the technical basis for VAT input tax recovery for mineral exporters from July 2020 onwards. VAT claims from July 2020 onwards are subject to verification procedures by the Société d’Exploitation des Mines d’Or de Sadiola S.A. (SEMOS) since 1996. Mining reduced considerably dueTRA before any refunds will be received. In 2021, the



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company was able to offset $54 million of verified VAT claims (from July 2020 onwards) against its corporate tax liability in Tanzania. Discussions with the 2014 gold price decrease but continued predominantlyTRA are ongoing to resolve our historical claims for VAT input credit refunds for the period from July 2017 to June 2020.

Natural resources, export and other rules

Natural resources legislation

In Tanzania, two laws in various satellite pits. On-site surface infrastructure includesrespect of natural resources came into force in July 2017: the Natural Wealth and Resources Contracts (Review and Re-negotiation of Unconscionable Terms) Act, 2017 (No. 6) (the “Unconscionable Terms Act”) and the Natural Wealth and Resources (Permanent Sovereignty) Act, 2017 (No. 5) (the “Permanent Sovereignty Act” and together with the Unconscionable Terms Act, the “Natural Resources Laws”). Implementing regulations were published in January 2020. The Natural Resources Laws provide that Tanzania has sovereignty over its natural resources and that all arrangements or agreements that relate to “natural wealth and resources” are subject to review by the National Assembly to ensure that they are in the interests of the people of Tanzania. During a 5.0Mta CIP gold plant, wherereview all unconscionable terms as interpreted in accordance with the gold is eluted and smelted. Power to the Sadiola mine is self-generated.

From 1996 until 2010, oxide and transitional orelaw are expunged 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 the satellite pits became the dominant source of oxide and transitional ore. Sadiola ceased mining during 2018 and transitioned to a stockpile treatment plan. A feasibility study for the Sadiola Sulphide Project (SSP), which looked at mining and processing the sulphide ore, was completed in 2016. However, a decision to proceed remains on hold while awaiting the conclusion of negotiations with the government. The oxide mining activities were completed in early 2018. While awaiting the decision, the operation continues to process stockpiled oxide material.

SEMOS is bound by the original prospecting and exploitation agreement (including its subsequent legal modifications) entered into on 5 April 1990 between AGEM Limited (AGEM) and the state of Mali, valid for the original mineral commodities until 5 April 2020. The identity number of the current exploitation area, DECRET No 00-080/PM-RM DU 06 MARS 2000 is a modification of all previous exploitation areas. Sadiola is operatedagreement. In addition, under the license DECRET No 00-080/PM-RM DU 06 MARS 2000 valid from 1 August 1994 to 1 August 2024 covering a total area of 303km2. The SSP projectlaws, disputes over natural wealth and resources will extend operations beyond 2024. Dialogue with the government of Mali has been ongoing throughout the project study phase and, as such, there are no foreseeable reasons why the amended environmental and social impact assessment (ESIA) and associated approvals should not be approved.

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 weatheredsubject to a maximum depth of 200 metres.any proceedings in any foreign court or tribunal. As a result, investors are restricted from accessing international dispute resolution mechanisms. Accordingly, companies are now required to adopt Tanzanian law and local dispute resolution in all mining agreements. As such, all disputes will be handles by Tanzanian judicial bodies or any other Tanzania government body vested with powers to resolve disputes. In addition, to ensure that the Government and the people of Tanzania obtain an east-west regional compression event, deformation occurs alongequitable stake in the exploitation of mining resources, all project earnings must be retained in Tanzanian banks. Investors are also prevented from freely exporting raw minerals and repatriating funds.

Section 6 of the Unconscionable Terms Act specifically provides that where there is an unconscionable term, the National Assembly may pass a north-south striking marble-greywacke contact, increasingresolution for re-negotiation of the porosityagreement whereupon the Government shall serve notice to the investor to re-negotiate the term or agreement. The Government and the particular investor have 90 days from the notice date to re-negotiate the term or agreement. If both parties fail to revise the unconscionable term, the term will be deemed removed from the agreement. A term is considered “unconscionable” under the Unconscionable Terms Act if, among other grounds, the requirements or provisions of this zone. North-east striking structures which intersect the north-south contact have introduced mineralisation, mainlyagreement restrict the right of the state to exercise authority over foreign investment within the country and in accordance with the marble wherelaws of Tanzania, are inequitable and onerous to the porosity was greatest. The Sadiola Hill deposit generally consistsstate, secure preferential treatment designed to create a separate legal regime to be applied discriminatorily for the benefit of two zones, an upper oxidised capa particular investor, deprive the people of Tanzania of the economic benefits derived from subjecting natural wealth and an underlying sulphide zone.resources to beneficiation in the country, or subject the state to the jurisdiction of foreign laws and foreign courts or tribunals.



Local participation policy
TANZANIA
DescriptionOn 15 September 2015, the Non-Citizens (Employment Regulation) Act, 2015 (No. 1) (the “Non-Citizens Act”) came into force which vests powers concerning work permits with the Labour Commissioner. Therefore, non-citizens wishing to be employed in the country are required to apply and be granted a work permit before applying for a residence permit. Before granting the work permit, the Labour Commissioner must be satisfied that all efforts have been explored to acquire a local expert. Further, the company is required to submit a succession plan which sets out a well-articulated plan for the transfer of the non-citizen’s knowledge and expertise to Tanzanian citizens. Moreover, the Commissioner General of Immigration is required to take into consideration conditions of the work permit issued by the Labour Commissioner when granting a residence permit.
Geita Gold Mine is wholly owned by
AngloGold AshantiAshanti’s rights and is AngloGold Ashanti's sole operation in Tanzania.permits


Tanzania - Geita
Description
The Geita Gold Minegold mine is located in the Lake Victoria goldfields of the Mwanza region of Tanzania, about 120 kilometres westTanzania. AngloGold Ashanti has concluded a mining development agreement with the Ministry of Mwanza, four kilometres away from the town of GeitaMinerals on 24 June 1999 and 910km from the Tanzanian capital city of Dar es Salaam. It has been in operation since 1996.

Mining at Geita is by both open pit and underground methods. Historically, other pits such as Star and Comet, Matandani and Kukuluma have contributed to the ore feed. Current sources of ore are from the Nyankanga open pit mine and Star and Comet and Nyankanga underground mines. 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. The Geita Gold Mine is currently serviced byissued a 5.2Mtpa CIL processing plant. The circuit contains a primary gyratory crusher, secondary and tertiary crushers, a semi-autogenous mill, 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 and sulphide content are considered in order to optimise throughput and recovery. Power to the mine is self-generated.

The special mining licence (SML45/99) coverscovering approximately 196.17km2 and196 km2 for a period of 25 years, which expires on 26 August 2024. There are a further 120km2 of prospecting licencesOn 9 October 2014, an addendum to the mining development agreement was entered into ratifying, among other matters, an increase in the immediate vicinityroyalty rate from 3 percent to the special mining licence which do not contain any Ore Reserve.4 percent with effect from 1 May 2012. In March 2020, Geita Gold Mining Limited received the consent of the Minister of Minerals to change the mining method under its special mining licenselicence from open pit to underground method, subject to the requisite terms and conditions. Within the special mining licence area, there are also seven primary mining licences of approximately 0.63 km2 in total which belong to third parties. Furthermore, Geita Gold Mining Limited holds prospecting licences covering (i) an area of 120 km2 in the immediate vicinity of its special mining licence area, and (ii) an area of 690 km2 located in the Dodoma, Singida and Shinyanga regions, but none of these areas contain any Mineral Reserve. All licenses are in good standing.


Geology
AUSTRALIA

General laws relating to mining

In Australia, with a few exceptions, all onshore minerals are owned by the Crown. The respective Minister for each state and territory is responsible for administering the relevant mining legislation enacted by the states and territories.



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Native title legislation applies to certain mining tenements within Australia. Australia recognises and protects a form of native title that reflects the entitlement of Aboriginal people to their traditional lands in accordance with their traditional custom and laws. Should native title claims or determinations exist, certain native title processes and procedures will apply under the Native Title Act 1993 (Cth) (the “Native Title Act”) before the tenure is granted. Tenure may be granted subject to conditions relating to native title rights. In the mining context, native title matters are managed as part of the tenement grant process. If disputes arise in relation to the grant of a particular tenement, they can be referred to the National Native Title Tribunal, established under the Native Title Act, for resolution. Native title legislation also provides a framework for compensation to be paid for acts that affect native title rights and interests. Ordinarily, the relevant Commonwealth or State government is liable to pay compensation for acts attributable to it. However, in the state of Western Australia, the Mining Act 1978 (WA) provides that an applicant for the grant of, or the holder of, a mining tenement is responsible for native title compensation, if determined to be payable, to native title holders.

Federal, state and territory Aboriginal and non-Aboriginal heritage laws operate in parallel to the native title legislation. State and territory heritage laws exist predominantly for the purposes of managing the impact of developments on sites, objects and areas of heritage significance. In Western Australia, impacts to Aboriginal cultural heritage are regulated by the Aboriginal Heritage Act 1972 (WA). However, this legislation will be repealed and replaced by the Aboriginal Cultural Heritage Act 2021 (WA) which was enacted in 2021 and is expected to become effective in early 2023. Where an area of heritage significance is placed on the national or world heritage registers, federal approval processes may also apply. To date, there has not been any significant impact on any of AngloGold Ashanti’s tenure due to native title or heritage legislation.

AngloGold Ashanti’s operating properties are located in the state of Western Australia where tenure is issued under, and mining operations are governed by, the Mining Act 1978 (WA). The most common forms of tenure in Western Australia are exploration and prospecting licences, mining leases, miscellaneous licences and general purpose leases. In most Australian states, if the holder of an exploration licence establishes indications of an economic mineral deposit in the area covered by the exploration licence and complies with the conditions of the grant, the holder of the exploration licence has a priority right against all others to be granted a mining lease which gives the holder exclusive mining rights with respect to minerals on the property.

It is possible for an individual or entity to own an area of land (including for infrastructure purposes) and for another individual or entity to be granted the right to explore for or mine any minerals located on or under the surface of the same area. The maximum initial term of a mining lease in Western Australia is 21 years and the holder has the right to renew the lease for an additional 21 years. Subsequent renewals are granted at the discretion of the respective state or territory’s minister responsible for mining rights. In Western Australia, mining leases can only be assigned with the prior written consent of the minister.

Tax laws relating to mining

Government royalties are payable by the holder of mining tenure in respect of minerals obtained from the relevant area of land at the rates specified in the relevant legislation in each state or territory. The royalty on gold production in Western Australia is payable quarterly at a fixed rate of 2.5 percent of the royalty value of gold metal produced. The royalty value is calculated by multiplying the amount of gold produced during a given month by the average gold spot price for that month. In addition, the holder of a mining tenement is required to pay annual rent in respect of the tenement. In Western Australia there is a minimum annual expenditure requirement for prospecting and exploration licences and mining leases. Exemptions from the expenditure requirement can be obtained if certain conditions are satisfied.

Environmental laws relating to mining

Mining tenements will be granted with endorsements and conditions relating to protection of the environment. Exploration and mining operations may also require separate approval from the state, territory or federal environment minister, which may require completion of an environmental impact assessment (including a public consultation period) pursuant to applicable environmental protection legislation prior to commencement. Further, a works 'construction' approval and an operating licence under the relevant environmental protection legislation in the state or territory may also be required for certain mine processing or mining-related operations. Depending on the jurisdiction, additional approvals may be required for the removal of native vegetation within the tenement, and the taking and use of water for exploration and mining operations.

AngloGold Ashanti’s rights and permits

AngloGold Ashanti has been granted 21-year term mining leases with rights of renewal to all of its mining areas in Australia, including its proportionate share of joint venture operations and accordingly it has, together with its joint venture partners where applicable, the exclusive right to mine in those areas. Both the group and its joint venture partners are fully authorised to conduct operations in accordance with relevant laws and regulations. The mining leases and rights of renewal cover the current life-of-mine at AngloGold Ashanti’s operations in Australia.

At Sunrise Dam, one mining lease (M39/1116) covers the deposit and mine infrastructure (approximately 7,808 hectares) and another mining lease (M39/1117) covers the water extraction infrastructure used to supply the operation with water (approximately 1,768 hectares). Both leases are currently in good standing, with expiry dates in 2038.




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The terrainButcher 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 Archaeansituated upon a single mining lease (M39/1096) covering approximately 27,228 hectares, which is currently in agegood standing, with an expiry date in 2036.

AngloGold Ashanti Australia Limited is also conducting early stage exploration activities in Queensland under the Mineral Resources Act 1989 (QLD). AngloGold Ashanti holds 11 exploration permits covering 215,300 hectares. Each permit is granted with an initial term of five years, renewable for two further periods of not more than five years each.


AMERICAS

Argentina

General laws relating to mining and land ownership

Mining regime

The Argentinean Mining Code governs mining activity in the country. Special regimes exist for hydrocarbons and nuclear minerals. In the case of most minerals, the Argentinean Mining Code establishes that the owner of the land is not the owner of the mineral rights; these are held by the national or provincial governments (depending on the location of the minerals). The national or provincial government, as applicable, is required by the Argentinean Mining Code to grant whomever discovers a new mine title to the mining concession.

The Argentinean Mining Code regulates exploration permits as well as mining concessions, or exploitation rights. Exploration permits grant their holders exclusivity rights to any mineral discoveries, including those made by a third party within the exploration area covered by the permit. Exploration permits are limited in time and as to the extent of the exploration area, are subject to the payment of a single-time fee, and also require a minimum exploration work programme and schedule to keep the permit in force. Priority for receiving a mining concession is given to the registered discoverer of the mine, which holds the exploration permit. Once the application for a mine has been submitted, the applicant may commence works and must submit a legal survey of the units requested for the new mine. The application and the legal survey may be opposed by third parties following specific proceedings set forth in the Argentinean Mining Code. Approval and registration of the legal survey by the provincial mining authority constitutes formal title to the mining concession.

Holders of mining concessions must comply with three main conditions: payment of an annual fee, investment of a minimum amount of capital, and the carrying out of a reasonable level of exploitation. Failure to do so could lead to forfeiture of the mining concession, which would then revert back to the Province.

In addition to the Argentinean Mining Code, between 1993 and 1995, Argentina implemented several federal laws to offer foreign companies attractive incentives for exploration and mining in Argentina, the Mining Investment Law (Law No. 24, 196), as amended (the “Mining Investment Law”), and related legal provisions being the most important one. Such incentives include, among other matters, import duty exemptions, accelerated depreciation of fixed assets, a 3 percent cap on provincial royalties set at pit-head value on the mineral extracted, value added tax refunds for exploration-related expenses incurred by companies registered under the Mining Investment Law, and, subject to the filing of a feasibility study for the relevant mining project, a 30-year stability as to the tax burden on the project and the customs and foreign exchange regimes and duties. Cerro Vanguardia S.A. (“CVSA”) obtained its tax, customs and foreign exchange stability certificate in 1996.

Glacier Law

On 30 September 2010, the National Law on Minimum Requirements for the Protection of Glaciers (Law No. 26, 639) (the “Glacier Law”) was enacted in Argentina, banning new mining exploration and exploitation activities on glaciers and “peri-glacial” areas. The Glacier Law establishes a broad definition of “peri-glacial” areas that, together with glacial areas, must be surveyed by an existing national government agency specifically appointed to this end every five years. The area where the Cerro Vanguardia project is located does not include any glaciers or peri-glacial areas according to the inventory of glaciers which was published in June 2018.

Rural Land Law

On 27 December 2011, the Argentinean National Congress passed a law on the Regime for Protection of National Domain over Ownership, Possession or Tenure of Rural Land (Law No. 26, 737) (the “Rural Land Law”) which implemented a set of rules restricting the ownership of rural land by foreigners (including foreign individuals or any kind of legal entity controlled by foreign individuals or legal entities). The main restrictions are as follows: (i) foreigners cannot own in the aggregate more than



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15 percent of the entire rural land of Argentina, the same cap being applicable to each Province and Municipality; (ii) foreigners will not be allowed to purchase more than 1,000 hectares in the so-called “zona núcleo”, which comprises the main agricultural areas of central Argentina or an “equivalent” surface depending on the location of the land and its productive potential; and (iii) foreigners will not be allowed to buy land that contains, or is adjacent to, relevant and permanent water bodies (such as rivers and lakes). Although exploration permits and mining concessions are not the subject matter of the restrictions placed by the Rural Land Law, certain rights granted to foreign mining companies under the Argentinean Mining Code may be restricted by this new law. For example, the right that holders of mining concessions currently have to force the surface owner to sell the land to the holder of the mining concession might be restricted if the concession holder is a foreign individual or a legal entity controlled by foreigners.

Federal Mining Agreement

On 13 June 2017, the national government and the provinces in whose territories the main mining projects of Argentina are located, signed the New Federal Mining Agreement (“FMA”). The purpose of the FMA is, amongst other things, to increase provincial revenues from the mining industry by creating legal entities owned by provincial governments that would work in association with private mining companies. This scheme is not new in Argentina and it has been used by some provincial governments, amongst them the Santa Cruz Province (through Fomicruz), in which the Cerro Vanguardia project is located. The FMA also contemplates other forms of revenues such as the formation of special trusts to be funded by mining companies to finance education, health and other programmes. Additionally, the FMA included setting forth mining royalties up to three percent of the gross value of commercialised minerals, without any deductions other than VAT. As the FMA has not yet been converted into law by the National Congress, its provisions are neither binding nor enforceable.

In Argentina, the current regulatory regime of royalty payments is expected to change and several different options and payment thresholds have been discussed. In December 2012, the Santa Cruz Province changed the mining royalty from one percent to three percent calculated at pit-head value of the mineral extracted thus bringing it to the cap of the Mining Investment Law.

Foreign exchange and export rules

Foreign exchange controls

On 1 September 2019, by means of Executive Decree No. 609/2019 (the “Export Controls Decree”), the Argentinean national government reinstated foreign exchange and export controls. The Export Controls Decree and related regulations of the Central Bank of Argentina impose, among other measures, the obligation of Argentinean residents to transfer to Argentina and/or sell for Argentinean pesos in the Argentinean foreign exchange market (mercado de cambios) the countervalue (contravalor) from their exports of goods within a specified period. The export of goods is regulated by Communication “A” 6882 of the Argentinean Central Bank (as modified) which establishes the specific regulatory requirements to implement the measures adopted by the national government in this area. Prior approval of the Argentinean Central Bank is generally characterisedrequired 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 greenschist metamorphism, although amphibolitic metamorphism occursthe applicable tax stability guarantee. CVSA initiated this new procedure to claim compensation for



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the export duties it paid in places. Ore zones2018 and 2019 as export duties are usuallynot contemplated by its tax stability guarantee. Prior to the publication of RC 4428/2019, CVSA had already submitted to the tax authorities claims for reimbursement of the export duties it paid from 2008 to 2015.

Pursuant to the new administrative procedure, the National Mining Secretariat issued favorable opinions regarding CVSA’s claims in respect of fiscal years 2018 and 2019, which amounted to approximately $3.5 million and $10.8 million, respectively, as of 31 December 2021. These claims are currently under review by the relevant customs authorities. On 14 July 2021, CVSA submitted its claim in respect of fiscal year 2020, which amounted to approximately $21.4 million as of 31 December 2021. The National Mining Secretary has not yet issued an opinion regarding this claim. CVSA expects to submit its claim in respect of fiscal year 2021 in due course.

Furthermore, CVSA has requested the tax authorities to apply the procedure provided for in RC 4428/2019 in respect of its historical claims for fiscal years 2008 to 2015 during which the imposition of export duties also exceeded CVSA’s total tax burden under its tax stability guarantee. However, these claims, which amounted to approximately $5.3 million as of 31 December 2021, are still being reviewed under the rules to challenge export duties instead of the new procedure provided for in RC 4428/2019. CVSA has appealed the application of those rules and a decision on this issue is pending.

In total, AngloGold Ashanti’s net export duty receivables (after discounting provisions) in Argentina amounted to $19 million as of 31 December 2021.

Environmental laws relating to mining

Any mining company wishing to commence or modify any mining-related activity, as defined by the Argentinean Mining Code, including prospecting, exploration, exploitation, development, preparation, extraction, and storage of mineral substances, as well as property abandonment or mine closure activity, is required to prepare and submit to the competent provincial environmental authority an Environmental Impact Assessment (“EIA”) prior to commencing the work. Each EIA is required to describe the nature of the proposed work, its potential risk to the environment, and the measures that will be taken to mitigate that risk. If accepted by the competent authority, the EIA is used as the basis to create a Declaration of Environmental Impact (“DEI”) to which the mining company is required to adhere during the mining-related activity at issue. The DEI is required to be updated at least on a biannual basis. Sanctions and penalties for non-compliance with the DEI are outlined in the Environmental Protection section of the Argentinean Mining Code, and may include warnings, fines, suspension of quality certifications, restoration of the environment, temporary or permanent closure of activities, and withdrawal of authorisation to conduct mining-related activities.

AngloGold Ashanti’s rights and permits

The mining concession holder of Cerro Vanguardia, the company’s operation in Argentina, is AngloGold Ashanti’s partner, Fomento Minero de Santa Cruz S.E. (“Fomicruz”), which is wholly owned by the Santa Cruz Province. On 27 December 1996, Fomicruz entered into a usufruct agreement whereby CVSA was granted an irrevocable right to exploit the Cerro Vanguardia deposit (encompassing an area of approximately 543 km2) for a 40-year period. The mining licence (402642/CV/97), which covers the full Mineral Reserve, expires on 26 December 2036. CVSA is a corporation incorporated in Argentina indirectly controlled by AngloGold Ashanti (92.5 percent), with Fomicruz as minority shareholder (7.5 percent). On 14 August 1996, CVSA obtained its tax, customs and foreign exchange stability certificate, which expires in 2026.

Brazil

General laws relating to mining and land ownership

The Brazilian Constitution of 1934 states that, for purposes of exploration and exploitation, deposits and other Mineral Resources constitute property separate from the soil and belong to the Federal Union. Exploration and exploitation of such Mineral Resources may take place only with the Federal Union’s concession and in such a way as to protect the national interest. Federal law sets out penal and administrative sanctions for conduct and activities deemed harmful to the environment.

In Brazil, the National Mining Agency (“ANM”) is the state body within the Mines and Energy Ministry (“MME”) that is responsible for: (i) the registration of mining titles, (ii) the grant of authorisations and concessions, (iii) the supervision of mining activities and mining titleholders, and (iv) the issuance of supplementary rules in relation to mining activity.

Under the current Brazilian Mining Code, there are two kinds of mines: (i) claimstake mines (minas manifestadas), for which rights were acquired before 1934 and exist independently of any mining licence or authorisation from the Federal Government and for which the Mineral Resources constitute property of the landowner, and (ii) granted mines, which are those that rely on grants from the Federal Government for mineral exploration or exploitation (pursuant to the Brazilian Constitution of 1988). AngloGold Ashanti’s operations in Brazil consist of both claimstake mines and granted mines.

Mining activities in granted mines must be performed in two defined stages: (i) exploration, which entails defining and evaluating the deposit and determining the feasibility of exploitation, and (ii) exploitation, which involves coordinating operations aimed at the industrial exploitation of the mineral deposit, from the extraction of useful minerals to their processing. Exploration



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authorisations issued by ANM are valid for one to three years. Extensions can be obtained if necessary, as long as it is justified. In contrast, exploitation rights, once granted, are valid for the lifetime of the deposit, provided the mining titleholder complies with all legal requirements. Pursuant to these requirements, for example, titleholders must (i) start work on mineral exploitation within six months from the date of publication of the Exploitation Concession, (ii) continue their mining activities until the mineral deposit has been exhausted, in accordance with the Economic Exploitation Plan (Plano de Aproveitamento Econômico) approved by ANM, and (iii) refrain from suspending mining activities without prior notice to ANM.

Tax laws relating to mining

During the exploration period, the mining titleholder has to pay an Annual Rate per Hectare (Taxa Annual por Hectare or “TAH”), subject to a maximum value set by law. In the exploitation period, regardless of the legal regime governing the project (whether claimstake or granted mines), the mining titleholder has to pay the Financial Compensation for Exploiting Mineral Resources (Compensação Financeira pela Exploração Mineral or “CFEM”). The CFEM which is 1.5 percent for gold is currently calculated based on revenues.

At the end of 2011 and the beginning of 2012, the states of Minas Gerais, Pará, Amapá and Mato Grosso do Sul each created a new “inspection and control” tax (duty) on extraction and exploration activities as well as on the use of Mineral Resource carried out in those states. In the state of Minas Gerais, gold ore and silver ore are exempted from the collection of this new duty. At the end of 2020, the state of Goiás created a new “inspection and control” tax (duty) on extraction and exploration activities carried out in this state, which currently still needs to be implemented. The constitutionality of these “inspection and control” taxes has been challenged by the National Industry Confederation and the matter is currently pending before the Supreme Court of Brazil.

Environmental laws relating to mining

Following the catastrophic failure of a tailings storage facility (“TSF”) at the Córrego do Feijão iron ore mine owned by Vale at Brumadinho in the state of Minas Gerais in Brazil in January 2019, executive, legislative and judiciary bodies, both at the federal and state levels, have generally increased scrutiny of mining operations in Brazil, and of TSFs in particular, and have been considering, and in some cases have adopted, stricter laws and regulations applicable to the approval, licensing, construction, management, closure and decommissioning of TSFs in Brazil.

At the federal level, the ANM issued Resolution No. 13/19 in August 2019 (replacing its earlier Resolution No. 4/19) which adopted additional regulatory measures to ensure the stability of TSFs, in particular those built or heightened by the upstream method or by any method declared as “unknown”. Among other things, ANM Resolution No. 13/19 prohibits the upstream method for the construction or heightening of tailings dams throughout the national territory of Brazil. It further requires operators to cease all storage and disposal activities at TSFs (known as “deactivation” or “desativação”) constructed or heightened upstream or by an “unknown” method by 15 September 2021 as well as to decommission such TSFs by 15 September 2022 to 15 September 2027 (depending on the capacity volume). To comply with the terms of ANM Resolution No. 13/19, the Serra Grande tailings dam in the state of Goiás must be decommissioned by 15 September 2025. The Serra Grande mine completed the process of reinforcing the dam walls of its upstream TSF, deactivating the TSF and migrating to dry-stacking operations, each by the 15 September 2021 deadline.

Furthermore, Federal Law No. 14.066/20, adopted in October 2020, also imposes requirements on companies to decommission upstream TSFs, including the Serra Grande tailings dam, by 25 February 2022 (which date is earlier than required by ANM Resolution No. 13/19). However, Federal Law No. 14.066/20 does permit extensions of the compliance deadline, with the consent of the ANM based on the technical plan for decommissioning. Serra Grande has submitted timely requests to obtain an extension of the compliance deadline until 2025 in line with the timeline set forth in ANM Resolution No. 13/19 and presented its technical plan for decommissioning. Feedback from the ANM on these requests is currently awaited. With respect to downstream (or “centerline”) TSFs, Federal Law No. 14.066/20 requires companies, to the extent that communities are located in the self-rescue zone of those TSFs, to implement one of the following measures for such structures: either (i) the structure must be deactivated and decommissioned, (ii) the population must be relocated, with reparations for loss of cultural heritage, or (iii) reinforcement works that guarantee the effective stability of the structure must be carried out, by decision of the public authorities, taking into account the previous nature of the dam in relation to the occupation and technical-financial viability of the alternatives. Even if reinforcement works are completed, deactivation and decommissioning of those TSFs will be required at the end of the life of the mine. All of the TSFs operated by AngloGold Ashanti in Brazil have communities located in self-rescue zones.

AngloGold Ashanti is planning to transition to dry-stacking operations for tailings storage at each location in Brazil in the near term. Capital expenditures required in 2021 to implement this new technology amounted to approximately $140 million. Capital expenditures for this work during the period 2022-2025 are expected to be material but, based on preliminary estimates to date, AngloGold Ashanti anticipates that annual expenditures for each of these years will be significantly less than in 2021 and will decline over time. Neither ANM Resolution No. 13/19 nor Federal Law No. 14.066/20 requires removal of all tailings material in connection with the decommissioning of TSFs (a process known as “decharacterisation” or “descaracterização”).






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At the state level, the state legislator in the state of Minas Gerais adopted Law No. 23.291/19 in February 2019 which contained the state’s policy on TSF safety and should be implemented in conjunction with the equivalent federal policy. Among other things, Law No. 23.291/19 determines the criteria for licensing and inspecting TSF structures, prohibits TSFs constructed or heightened using the upstream method, establishes bond requirements and holds management liable for non-compliance with its provisions. The government of Minas Gerais adopted several decrees in furtherance of this legislation.

On 16 February 2022, the ANM issued Resolution No. 95/22, which was rectified on 18 February 2022 and became effective on 22 February 2022. ANM Resolution No. 95/22 effectively consolidates prior federal resolutions on TSFs, including ANM Resolution No. 13/19 and establishes new criteria for the operational 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 Banded Iron Formation (BIF)potential environmental damage as well as breaches of its mining obligations. It may



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then proceed with exploration activities. Once the exploration phase is complete, the concessionaire files a new plan regarding proposed works and facilities. With the award of the mining concession or tenement contract, there are specified timelines for the completion of the various phases of a mining project, e.g. exploration, construction, exploitation. The company must comply with these timelines unless performance is suspended, for example, due to force majeure or extensions or modifications to the timelines. A grant of force majeure is for one year and must be renewed on an annual basis. If the company does not comply with the specified timelines for the completion of the various phases of a mining project, the mining authority may revoke the company's concession contracts or mining licences. As a general matter, any company that wishes to obtain a renewal of its concession contract must be up to date in all its legal and contractual obligations and must present a new plan of works and facilities to be implemented after the contract is renewed.

PINES programme

In 2013, the national government instituted the PINES programme designed to aid promoting certain projects that are deemed to have a national interest. This designation provides for greater oversight from the national government. All of our three advanced exploration projects (La Colosa, Quebradona and Gramalote) were considered of national strategic interest. Currently, Quebradona and Gramalote remain in the PINES programme, but La Colosa was temporarily removed as such (until the force majeure is over).

Tax laws relating to mining

From the moment the concession contract is registered with the Mining Register, the concessionaire has several financial obligations, including the payment of (i) a surface fee during the exploration, construction and assembly stage and (ii) royalties.

Once exploration is complete and the mining infrastructure in place, the concessionaire must begin paying royalties to the Colombian government, consisting of a percentage of the primary product and sub-products being exploited. The percentage of the royalty depends on the regulation in force when the concession contract is registered. In the case of the Quebradona project, the deposit mainly consists of copper followed by gold and silver. There is a 5 percent royalty for copper on the production value at the mine’s or well’s edge (i.e. when extracted from the subsoil). In case of gold and silver, a royalty of 4 percent on the production valued at the mine’s or well’s edge (i.e. when extracted from the subsoil) was established.

Furthermore, Colombian law establishes that once the environmental licence is granted the concessionaire must invest 1 percent of the project’s value to benefit the basins covered by the environmental licence.

Environmental laws relating to mining

In order to obtain an authorisation to carry out a mining project, a company must prepare an Environmental Impact Study (“EIA”) for approval by the National Environmental Licensing Authority of Colombia (Autoridad Nacional de Licencias Ambientales or “ANLA”). Global environmental licences are granted for the entire life of the project and cover all phases: construction, assembly, operation, maintenance, dismantling, final restoration, abandonment and/or termination. Construction and assembly permits (Plan de Trabajos y Obras or “PTO”) are granted by the mining authority with jurisdiction over the project.

In Colombia, the mining authority has the discretion to declare the underlying concession void if the specific company which holds the concession breaches applicable environmental laws or regulations. If the mining authority were to exercise such discretion, a company whose concession was voided would be required to abandon its projects and all of its other existing mining concession contracts. Pending proposals for new mining concession contracts would also be cancelled and the company would be banned from doing business with the Colombian government for a period of five years. As a result, the company would be unable to conduct any mining exploration or development activities during such period. However, this would not affect other subsidiaries of the company operating in Colombia, if those concession contracts are held singularly or in concert with joint venture partners.

Mining activity is prohibited in national parks, regional parks, protected forest reserves, paramos (included in Act 1753, introduced in 2015) and wetlands, pursuant to the Ramsar Convention on Wetlands of International Importance.Some forest reserves are not “protected” but are set aside for active forestry purposes and the concessionaire must obtain a specific permit to partially and temporarily change the use of the soil before pursuing exploration activities. In addition, Resolution 187/2016, passed by the national government in late 2016, identifies areas that the Ministry of the Environment has determined to be “paramos” areas, or paramos transition areas. In these areas there are limitations on industrial or commercial work being performed, including mining. The regulation also specifies a process to determine what work, if any, can be performed in a paramos-designated area.

AngloGold Ashanti’s rights and permits

The La Colosa project managed by AngloGold Ashanti Colombia S.A.S. (“AGA Colombia”) remains in force majeure due to delays in granting environmental permits by national and local environmental authorities, thereby preventing AGA Colombia from undertaking further exploration activities. The current one-year grant of force majeure, during which time the specified timelines for completing the various phases of the mining project under the concession contract are suspended, will expire on



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22 June 2022. AGA Colombia applied for a mining area integration (consolidation) of its concession contracts related to La Colosa, in respect of which AGA Colombia was not in compliance with some of the specified timelines. The application for mining area integration (consolidation) was approved in March 2017, which remedied the non-compliance of each consolidated concession and reset the specified timelines. La Colosa now has a single integrated mining concession contract (EIG-163) which covers a total area of 9,210 hectares and expires on 28 February 2037.

Minera de Cobre Quebradona S.A.S. B.I.C. (“MCQ”) which manages the Quebradona project, obtained the integration of concession agreement 5881 in October 2016 and registered in December 2016. As a result, MCQ was granted the exclusive right to explore, take ownership and dispose of the mineral reserves (ore) extracted from the concession area. MCQ has the right to request an extension of up to 30 years, at least two years before the expiration of the operating period. This extension is not automatic, and the request must be filed with new technical, economic, environmental and social studies that demonstrate the status of the mineral resources. Concession contract 5881 initially covered a total area of 7,593 hectares, which was reduced to 4,881.89 hectares by the relevant mining authority (Secretaría de Minas de Antioquia) on 4 March 2022. It will expire in May 2037 and is currently in its sixth year of the integrated exploration phase. In September 2021, the permits for the construction and mining operation were approved by the relevant mining authority (Secretaría de Minas de Antioquia). On 4 November 2021, ANLA officially notified AngloGold Ashanti of its decision to ‘archive’ the environmental licence application relating to the Quebradona project. ANLA has neither denied nor granted the licence, but deemed that the information provided by AngloGold Ashanti is not enough for this authority to take a substantive decision. On 18 November 2021, AngloGold Ashanti appealed the archiving decision in order to secure further details on the specific additional information ANLA requires to make a determination.

The Gramalote project is organised as a joint operation between AngloGold Ashanti (through AGA Colombia Holdings Limited and AngloGold Ashanti Holdings plc) and B2Gold (through B2Gold Corp. and Graminvest Ventures Limited). Gramalote Limited, a company incorporated under the laws of British Virgin Islands which is the legal vehicle operating the joint operation, established a Colombian branch, Gramalote Colombia Limited (“GCL”), to carry out activities in Colombia and obtain the mining concession contracts necessary to develop the Gramalote project. The Gramalote joint operation has been operated by B2Gold since January 2020. Pursuant to an integrated mining concession contract No. 14292, GCL was granted the exclusive right to explore, take ownership and dispose of the mineral reserves (ore) extracted from the concession area (which covers a total area of 8,720.71 hectares and includes the Gramalote and Monjas anomalies) until April 2043. GCL has the right to request an extension of the operating period for up to 20 years, and, if exercised, such request to extend must include new technical, economic, environmental and social studies that demonstrate the status of the mineral resources. Currently, concession contract No. 14292 is in the phase of construction and assembly, pending resettlement of communities and the formal start of construction activities. GCL has received an environmental licence granted by ANLA and permits for the construction and mining operation which were approved by the relevant mining authority (Secretaría de Minas de Antioquia). GCL also holds an exploration concession No. 4894 (which covers a total area of 2,279.32 hectares and includes the Trinidad anomaly) which expires in 2044.

United States of America

Nevada

Mineral and surface rights in the United States are owned by private parties, state governments or the federal government. The majority of land utilised for precious metals exploration, development and mining in the western United States is owned by the federal government. The right to mine on such federal land in western states is governed by the U.S. General Mining Law of 1872, as amended (the “General Mining Law”). The General Mining Law allows mining claims (for mining and mining-related activities) on certain federal lands after proper compliance with claim location and maintenance requirements.

Mineral exploration activities in Nevada are also generally subject to applicable federal, state, and local permitting requirements, but the specific regulatory authorisations required for the company’s activities are based on the nature and location of the exploratory work. Many of the company’s Nevada operations are currently conducted under what is generally referred to under federal law as a notice-level operation subject to 43 CFR § 3809.21, while projects that are more advanced require additional permitting, including a Plan of Operations approved by the federal Bureau of Land Management (“BLM”). The State of Nevada Division of Environmental Protection’s Bureau of Mining Regulation and Reclamation (“BMRR”) also regulates mining within the state of Nevada. However, exploration projects of 5 acres or less, the scope of a notice-level operation under federal law, are exempt from BMRR regulation. Certain of the company’s early-stage exploration activities fall within this exemption.

In Nevada, the company’s wholly-owned subsidiaries hold a significant number of unpatented mining claims on federal lands. This includes approximately 1,600 unpatented claims (covering approximately 32,000 acres) that are now controlled by the company as a result of its acquisition of all of the outstanding stock of Corvus Gold Inc., which closed on 18 January 2022. The company is currently engaged in exploration activities on certain of its unpatented claims that include, but are not limited to, geological and spectral mapping, surface geochemical sampling, geophysical surveying and RC and/or diamond drilling. The main projects of the company in Nevada include the Silicon Project, the North Bullfrog Project and the Mother Lode Project.

In 2021, the state of Nevada enacted a new tax on Nevada gold and silver mines (in addition to the existing Nevada net proceeds of minerals tax, which is a 5 percent net tax). The new mining tax is a 0.75 to 1.1 percent excise tax based on a mine’s annual gross revenue.



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Minnesota

In Minnesota, AngloGold Ashanti Minnesota Inc. completed early-stage reconnaissance exploration activities to determine the potential for gold mineralisation in the northern counties of Minnesota. Based on the achieved results, the company terminated its exploration activities in the state. In early 2021, the company completed closing out its activities in Minnesota in accordance with state and company requirements.

Potential regulatory changes

Over the years, the U.S. Congress has considered a number of proposed amendments to the General Mining Law and other federal statutes relating to mining. Among the significant features contained in previously proposed legislation were a production royalty obligation, new and more stringent environmental standards and conditions, additional reclamation requirements, extensive new procedural steps which would likely result in extended permitting timelines and granting counties and other entities the ability to petition the U.S. Secretary of the Interior to make certain areas unavailable for the location of unpatented mining claims. In June 2020, former President Trump signed an executive order directing certain federal agencies to streamline the review processes associated with permitting of infrastructure and natural resources projects. Many of those policies have subsequently been rescinded by the Biden administration. While certain other executive orders may favorably affect the timing of our permit and project approvals, the impact is yet to be determined and remains uncertain.

AGA is currently unaware of any other new federal or state legislative or regulatory changes or rule-making that has been proposed or enacted that would adversely affect its current exploration programmes. If any requirements, standards or conditions were adopted in the future that imposed additional or new obligations or costs on AGA in connection with our exploration or extraction activities in the United States, the company’s operations in Nevada could be adversely affected.


MINE SITE REHABILITATION AND CLOSURE

Closure, an integral part of operations

All mining operations eventually cease. An integral aspect of operating AngloGold Ashanti’s mines is ongoing planning for and, where feasible, implementation of concurrent rehabilitation, together with an estimate of associated liability costs and the placement of adequate financial provisions and assurances to cover these costs.

All of AngloGold Ashanti’s operations are required to comply with its group closure planning standard, as well as applicable law and regulations, as their closure plans are reviewed and updated.
Closure planning is an activity that starts at the exploration and mine design stage and continues throughout the life of mine:
•New projects include a conceptual closure plan which anticipates future closure and associated rehabilitation activities and related costs.
•The closure plan is reviewed annually and updated every three years (annually in the final three years of a mine’s life) or whenever significant changes are made, taking into account operational conditions, planning and regulatory requirements, advances in international good practice (e.g., ICMM Mine Closure: Good Practice Guide) and technological developments.

For many of the older mines, closure planning and the evaluation of environmental liabilities is a complex process. This is particularly so in Brazil and Ghana, where many of the mining and other operations have taken place for more than fifty years. A particular challenge is concurrent rehabilitation, which is carried out while a mine is still operational. This practice serves to decrease the ultimate liability and reduces the final rehabilitation and closure work that must be undertaken, but has the potential to sterilise Mineral Reserve, which the company might wish to exploit should conditions, such as the gold price, change.

The company’s group closure standard stipulates that closure planning must be undertaken in consultation with the stakeholders. In the course of these consultations, different issues are raised which require site-specific solutions. Livelihood preservation and infrastructure are often key requirements. Communities also require information on the company’s rehabilitation of the landscape and on any lasting environmental impacts. Long-term remediation obligations, including decommissioning and restoration liabilities relating to past operations, are based on environmental management plans and compliance with current environmental and regulatory requirements.

Provisions for decommissioning and rehabilitation costs are made when there is a present obligation, it is probable that expenditure on decommissioning and rehabilitation work will be required and the cost can be estimated within a reasonable range of possible outcomes. These costs are based on currently available facts, technology expected to be available at the time of the rehabilitation, laws and regulations presently or virtually certain to be enacted and previous experience in the rehabilitation of mine sites.

Decommissioning costs and restoration costs are provided at the present value of the expenditures expected to settle the obligation, using estimated cash flows based on current prices. Estimates are discounted at a pre-tax rate that reflects current market assessments of the time value of money.




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Provisions for decommissioning and for restoration (excluding joint ventures and discontinued operations) increased from $674 million in 2020 to $688 million in 2021. This increase mainly relates to changes in discount rates based on global economic assumptions. The provisions were also impacted by changes in mine plans, resulting in a change in cash flows.


SUSTAINABILITY AND ENVIRONMENTAL, SOCIAL AND GOVERNANCE (“ESG”) MATTERS

AngloGold Ashanti’s sustainability approach is fundamental to how the company operates its business, as well as its ability to create long-term value for its shareholders, employees and social partners through safely and responsibly exploring, mining and marketing its products. Sustainability and safety are integrated into the company’s business and operations at all levels through various frameworks, standards and policies, and the company measures its performance in achieving its goals against its sustainability and other ESG metrics, as well as its engagement with stakeholders.

In mitigating the risks and impacts that are an inherent part of its business, AngloGold Ashanti is informed by an annual assessment of its key ESG issues. This process is aligned with guidance published by the International Integrated Reporting Council (“IIRC”), the Sustainability Accounting Standards Board (“SASB”), the Global Reporting Initiative (“GRI”) Standards and the Accountability AA1000 Stakeholder Management Standard. This assessment is annually reviewed by AngloGold Ashanti’s senior leadership and approved by the Social, Ethics and Sustainability Committee (the “SES Committee”).

AngloGold Ashanti’s board of directors, assisted by the SES Committee, has ultimate responsibility over environmental, safety, health and ethical matters and for the integration of sustainability objectives into AngloGold Ashanti’s business. This includes oversight of the company’s stakeholder engagement framework and structures, which apply to investors, employees, governments, suppliers and communities, at every stage of its business from exploration to mine closure. Group Corporate Affairs and Sustainability is responsible for development of management systems and supports the company’s general managers in the day-to-day implementation of its sustainability strategy.

AngloGold Ashanti maintains a set of policies and procedures to guide the company in acting as a responsible corporate citizen, including the Code of Business Principles and Ethics which sets requirements for the implementation of key corporate policies and guidelines and applies to all management and employees, and to maintain compliance with applicable environmental, health and safety (“EHS”) laws. In 2021, AngloGold Ashanti continued with the implementation of the Integrated Sustainability Information Management System (“iSIMS”), in order to improve internal reporting and better integrate and monitor sustainability activities with respect to its broader business. This common reporting system for all sustainability disciplines, from safety, health and security to community and environmental management, is expected to help provide timely information in each of these areas, and to facilitate transparency and decision-making in its processes and practices.

Significant EHS requirements and ESG risks and trends affecting the company’s mining and processing operations are described below.

EHS Regulatory Compliance

AngloGold Ashanti is subject to extensive EHS laws and regulations in the various jurisdictions in which the company operates. These requirements govern, among other things, extraction, use, conservation and discharge of water; air emissions (including dust control and greenhouse gases (“GHGs”)); regulatory and community reporting; clean-up of contamination; land use and conservation of protected areas; rehabilitation and closure of mined land; worker health and safety and community health; and the generation, transportation, storage and disposal of solid and hazardous wastes, such as reagents, radioactive materials, and mine tailings. Environmental laws and regulations applicable to the company’s operations, including the requirements contained in environmental permits, are generally becoming more restrictive.

Capital and operating costs to comply with EHS laws and regulations have been, and are expected to continue to be, significant to AngloGold Ashanti. In addition, AngloGold Ashanti could incur fines, penalties and other sanctions, environmental clean-up costs, and third-party claims for personal injury or property or natural resources damages; suffer reputational damage; and be required to install costly pollution control equipment or to modify or suspend operations, as a result of actual or alleged violations of, or liabilities under, EHS laws and regulations. Failure to comply with applicable EHS laws and regulations may also result in the suspension or revocation of permits and, in some jurisdictions, the right to mine a given concession. AngloGold Ashanti’s ability to obtain and maintain permits and other approvals and to successfully operate near host communities may be adversely impacted by real or perceived effects on the environment or human health and safety associated with AngloGold Ashanti’s or other iron rich rocksmining 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 when theyare subject to water-use permits or rights to extract water from certain natural sources that govern usage and require, among other things, that mining operations maintain certain water quality upon discharge. Water supply, quality and usage are areas of concern across all of the company’s operations, including with respect to the company’s



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mining operations in Ghana and Brazil, as well as its mine development project at Quebradona in Colombia, where there is significant potential environmental and social impact and a high level of stakeholder scrutiny. Any failure by the company to secure access to suitable water supplies, or achieve and maintain compliance with applicable requirements of the permits or licences, could result in curtailment or halting of production at the affected operations. Incidents of water pollution or shortage can, in certain cases, lead to community protest and ultimately to the withdrawal of community and government support for AngloGold Ashanti’s operations. A failure by the company to comply with water contamination related directives may result in further, more stringent, directives being issued against the company, which may, in some cases, result in a temporary or partial shutdown of some of the company’s operations.

Where feasible, the company operates a “closed loop” system which recycles the water used in its operations without discharging it to the environment. In some areas, however, such as Ghana and Brazil, high levels of rainfall and surface water runoff mean that a closed loop system is not feasible and that discharges, after water treatment where necessary, must take place.

Waste Management

During open-pit mining, large volumes of soil and/or rock (overburden) are mined to expose the ore body. Similarly, waste rock is mined during drilling and developing access to underground ore bodies. Overburden and waste rock typically contain sub-economic levels of gold and are deposited as large waste rock facilities. Mine tailings are the process waste generated once grinding and extraction of gold from the ore is completed in the milling process and are typically deposited as slurry in large tailing storage facilities (“TSFs”) specifically designed for this purpose.

The impact of dust generation, breach, leak, or other failure of a waste rock facility or TSF, including any associated dam, can be significant, and the company therefore monitors such facilities closely in accordance with the company’s internal standards, independent review, national regulatory requirements, industry standards and commitments made to local communities. The occasional well-publicised failure of a third-party TSF and the potential impact of such failure also mean that these facilities are generally tightly regulated. An incident at the company’s operations could result, among other things, in enforcement, obligations to remediate environmental contamination, negative press coverage, and claims for property or natural resources damages and personal injury by adjacent communities. Incidents at other mining companies’ operations could result in governmental action to tighten regulatory requirements and restrict certain mining activities, in particular with respect to TSFs, also in respect of other mine operators in that region.

For example, following the catastrophic failure of a TSF at the Córrego do Feijão iron ore mine owned by Vale at Brumadinho in the state of Minas Gerais in Brazil in January 2019, tailings were discharged into the mine’s administrative area and part of the local community, reportedly resulting in death or injury to hundreds of people. As a result of this incident, there has been considerably increased regulatory scrutiny in Brazil and other areas on mining operations generally, and the requirements applicable to the approval, licensing, construction, management, closure and decommissioning of TSFs have generally become far more stringent. For further information on the regulatory framework governing TSFs in Brazil, see “Item 4B: Business Overview—The Regulatory Environment Enabling AngloGold Ashanti to Mine—Americas—Brazil”.

In addition, a new Global Industry Standard on Tailings Management (“GISTM”) was established in August 2020 by a panel comprised of industry and non-governmental organisation (“NGO”) experts, the compliance costs of which are not expected to be material to AngloGold Ashanti. AngloGold Ashanti has committed to comply with the GISTM at all of its TSFs by August 2025.

Groundwater Impacts and Environmental Remediation

As AngloGold Ashanti or its predecessors have a long history of mining operations in certain regions, issues may arise regarding historical, as well as potential future, environmental or health impacts in those areas, for which AGA, as the current owner/operator, may be legally responsible. For example, AngloGold Ashanti has identified groundwater contamination plumes at certain of its operations. Numerous scientific, technical and legal studies have been undertaken to assist in determining the magnitude of the impact and to find sustainable remediation solutions. Based on those studies as well as discussion with regulators, the company has taken steps, including monitored natural attenuation and phyto-technologies, to address soil and groundwater contamination.

Subject to the completion of site-specific trials and potential technologies being confirmed as viable remediation techniques, no reliable estimate can be made at this time for the obligation. Should these obligations be significant, this could have a material adverse impact upon AngloGold Ashanti’s results and its financial condition.

Climate Change and GHG Regulation

At AngloGold Ashanti, climate change is a board of directors-level governance issue, overseen by the SES Committee and the Audit and Risk Committee. The Climate Change Working Group, established in 2020 and comprised of functional leaders from across the business, reports to the SES Committee. AngloGold Ashanti’s Climate Change Strategy, which was approved by the board of directors in November 2021, seeks to embed the management of physical, regulatory and transition climate change-related risks, as well as climate change-related opportunities, into the company’s strategic and operational planning processes.



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In 2021, AngloGold Ashanti committed to the International Council on Mining & Metals (“ICMM”) target of achieving net zero Scope 1 and Scope 2 GHG emissions by 2050, and, in partnership with value chain partners, to set Scope 3 GHG reduction targets, if not by the end of 2023, as soon as possible thereafter.

In December 2015, certain members of the international community negotiated a treaty at the Conference of the Parties of the UN Framework Convention on Climate Change in Paris (the “Paris Agreement”). The Paris Agreement, which came into force on 4 November 2016, requires developed countries to set targets for emissions reductions. As a result, measures designed to limit or reduce GHG emissions, both mandatory and voluntary, have been, and are expected to be, implemented at national or regional levels in various countries.

New regulatory requirements, or changes required to effectively transition to a low-carbon economy, could require AngloGold Ashanti to reduce its direct GHG emissions or energy use, change its fuel mix or incur significant costs for GHG emissions permits or taxes, including for those costs or taxes passed on by electricity utilities which supply the company’s operations. AngloGold Ashanti could also incur significant costs associated with capital equipment, GHG monitoring and reporting and other obligations to comply with applicable requirements. The most likely source of these obligations is through state-level implementation of new emissions or financial obligations pursuant to evolving climate change regulatory regimes.

For example, in 2010, Brazil launched the National Climate Change Policy, which established a voluntary national GHG reduction target of 36.1 percent to 38.9 percent below the projected emissions in 2020 for “business as usual”. The policy required the development of sector-specific plans in order to meet the target and provided for a Brazilian GHG trading scheme, which is yet to be designed. While Brazil is not yet requiring mandatory GHG emissions reporting at the national level, some state environmental agencies have requested companies to voluntarily submit GHG emissions management plans. However, the states of Goiás and Minas Gerais (in which AngloGold Ashanti operates) do not currently require GHG emissions management plans for mining projects. In 2015, Brazil announced, in connection with its commitments under the Paris Agreement, economy-wide absolute mitigation targets providing for a 37 percent reduction in GHG emissions by 2025, as compared to 2005, and a goal to reduction emissions by 43 percent by 2030 compared to 2005 levels.

In addition, in Australia, the Safeguard Mechanism (Rule 2015), through the National Greenhouse and Energy Reporting (“NGER”) scheme, provides a framework for Australia’s largest emitters to measure, report and manage their emissions. The Safeguard Mechanism applies to facilities with Scope 1 covered emissions of more than 100,000 tonnes of CO2e per fiscal year. During the 2018/19 fiscal year, Tropicana’s emissions were within its authorised threshold and Sunrise Dam was required to purchase offsets for emissions that were 0.8 percent above its safeguard threshold, the cost of which was immaterial. Two amendments to the Safeguard Mechanism (Rule 2015) enacted in March 2019 and May 2020 allowed for the application of transitional calculated baselines using estimated CO2-e emissions intensities. Based on the production and emissions forecasts, the Australian mining operations applied to use transitional calculated baselines in 2020 for Sunrise Dam and Tropicana, which were approved by the Clean Energy Regulator effective 1 July 2019 to 30 June 2022 for both operations. Thereafter, there is a requirement to apply for production-adjusted baselines. Accordingly, assuming the company’s operations (and resultant emissions) are consistent with the forecasts in the current business plan, the Australian mining operations should not be required to purchase emissions offsets for the business to cover the period prior to June 2022. In any event, the cost of such offsets, if ultimately required to be purchased, including due to a change in the operations under the business plan prior to June 2022, are not anticipated to be material to the company’s business.

In addition to more stringent requirements and commitments, AngloGold Ashanti’s operations are subject to a number of physical risks from climate change, such as changes in rainfall rates or patterns resulting in floods or droughts, reduced water availability, higher temperatures and extreme weather events. Such events or conditions, particularly including flooding or inadequate water supplies, could disrupt mining and transport operations, mineral processing and rehabilitation efforts, create resource or energy shortages or damage the company’s property or equipment and increase health and safety risks on site. In consultation with external consultants, physical climate risk assessments were undertaken for all operations using current climate models for the business and various decarbonisation scenarios and climate adaptation plans were outlined. These adaptation plans continued to be further refined in 2021.

Occupational Safety and Health

AngloGold Ashanti is subject to a variety of laws and regulations in each of the jurisdictions where the company operates that are designed to protect and improve the safety and health of employees. In some of the jurisdictions in which AngloGold Ashanti operates, the government enforces compulsory shutdowns of operations to enable investigations into the cause of accidents at those operations.

Safety remains a priority for AngloGold Ashanti and a focus of AngloGold Ashanti’s long-term sustainability approach, as well as the company’s continuing efforts to manage the risks inherent to its operations, to model critical controls and to strengthen safety protocols and preventative measures. Although AngloGold Ashanti has made significant strides in improving safety in recent years, sadly, the company lost two colleagues during 2021, and some of its operations recorded a year-on-year regression in the all injury frequency rate.




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AngloGold Ashanti’s Group Safety Strategy, which was revised in 2021 and is expected to be implemented by 2024, seeks to integrate operational risk management and key performance indicators at all levels of the organisation and maintain alignment with global safety standards. The SES Committee oversees the implementation of the Group Safety Strategy. All operations, other than Obuasi, have been certified to ISO 45001:2018, which has replaced the OHSAS 18001:2007 series. Obuasi is scheduled to be certified in 2022.

Community Health and Tropical Diseases

AngloGold Ashanti is also subject to health and safety regulations relating to occupational disease. The primary areas of focus in respect of occupational health of employees within the company’s operations are noise-induced hearing loss (“NIHL”) and occupational lung diseases (“OLD”). OLD includes occupational tuberculosis and silicosis in individuals exposed to silica dust. Silicosis has been particularly prevalent in South Africa and has also arisen at the company’s Africa and Brazilian operations, albeit to a far lesser extent. AngloGold Ashanti provides occupational health services to its employees at its occupational health centres, clinics, and through outsourced service centres. The company continues to improve preventative occupational hygiene initiatives, such as implementing various control measures to prevent hazardous exposures, and providing employees with Personal Protective Equipment.

In 2019, the Johannesburg High Court approved the settlement of existing silicosis and tuberculosis class actions against AngloGold Ashanti and other gold mining companies in South Africa. The recent sale of the company’s South African operating assets and liabilities did not include the silicosis or tuberculosis settlement obligations relating to South African employees, which were retained by AngloGold Ashanti. For further information, see “Item 18: Financial Statements—Note 1.2—Accounting Policies—Significant Accounting Judgements and Estimates—Provision for silicosis”.

In addition to OLD, HIV and AIDS and associated diseases remain major health care challenges faced by AngloGold Ashanti’s Africa region operations. AngloGold Ashanti continues to implement programmes to help those infected with HIV and prevent new infections from spreading.

Malaria and other tropical diseases also pose health risks at all of the company’s operations in Central, West and East Africa where such diseases may assume epidemic proportions because of ineffective national control programmes. Malaria is a major cause of death in young children and pregnant women and also gives rise to deaths and absenteeism in adults. All affected company operations have malaria control programmes in place. The Ghana Obuasi malaria control programme continues to roll-out indoor residual spraying programme in 16 districts of Ghana in partnership with the Global Fund and the Ghana Department of Health.

In 2021, the COVID-19 pandemic continued to put strain on businesses and socio-economic systems across the globe, including as new variants of concern emerged and drove considerable resurgences in cases throughout the year. AngloGold Ashanti continued to direct significant resources to pandemic controls within the company as it worked to limit the spread of the virus whilst keeping operations running. The pressure on labour supply, travel restrictions limiting employee mobility and the mental health implications of the ongoing pandemic all also have potential implications for safety training and safe operations. This required AngloGold Ashanti, as well as other businesses, to take extraordinary measures to protect the health and well-being of its employees, to maintain its operations and to contribute to global control efforts. The availability of safe and effective vaccines, albeit at varying scales in the company’s operating countries, provided an additional layer of protection, especially against severe forms of disease, hospitalisation and death. The company endeavoured to provide prompt access to approved and available vaccines for all workers, especially employees considered to be at high risk as well as employees with critical skills. Given the interdependence of employee and community health, the company’s focus remained on implementing measures supporting the health of its employees and local communities.

The emergence of COVID-19 however also assisted to better integrate broad health risk management beyond occupational health into the overall business strategy, to contribute to productivity as well as the social licence to operate and to improve various prevention and risk management protocols in place to address the potential risk of an epidemic or pandemic after its experience with Ebola in Guinea in 2014 and 2015.

This pandemic also highlighted other associated risks and emphasised the importance of optimising mental health, minimising non-communicable diseases associated with lifestyle as well as the need for systematic contribution to health system strengthening, local skill development and overall community development in the jurisdictions in which the company operates. Such risks impair the health of workers and negatively affect productivity and profitability as a result of workers’ diminished focus or skill, absenteeism, treatment costs and allocated resources. As part of AngloGold Ashanti’s continuing efforts, the company recently adopted a set of updated health standards based on identified major health hazards or risks which include gender, cultural and other applicable diversity considerations for risk management and controls.

Diversity and Inclusion (“D&I”)

With more than 30,000 employees (including contractor employees) on four continents, AngloGold Ashanti believes that having a diverse and inclusive workforce is important to continuing to attract talent in order to maintain competitiveness and the long-term



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sustainability of its business. In addition, the company strives to have a workforce that represents the societies in which AngloGold Ashanti operates in connection with maintaining its social licence to operate.

AngloGold Ashanti’s D&I approach is aligned to the United Nation Sustainable Development Goals (“UNSDGs”) (SDG 5, 8 and 10) and the United Nations Global Compact (“UNGC”). The company has developed a Diversity & Inclusion Framework, which aims to foster the empowerment of all staff, irrespective of race, gender, ethnicity, religion and sexual orientation and has established specific priorities and actions for the next two to five years to foster the inclusion of D&I objectives in its processes. Leadership teams are responsible for meeting defined diversity targets. In 2021, regional assessments were conducted to better understand the specific issues associated with increased D&I at mine sites.

Human Rights and Indigenous Peoples

In its commitment to respecting and promoting human rights, AngloGold Ashanti supports the United Nations Guiding Principles for Business and Human Rights (“UNGP”) and other international initiatives, including the UNGC and the Voluntary Principles on Security and Human Rights (“VPSHR”). The VPSHR, which seeks to balance safety and security needs against respect for human rights and fundamental freedoms, were developed through multi-stakeholder participation between governments, extractive industry members and NGOs. Community and security related matters, including with respect to illegal and artisanal and small-scale mining and related intrusions into the company’s operational areas, are addressed at board of directors-level by the SES Committee. AngloGold Ashanti’s internal Human Rights Framework includes numerous policies, management standards and guidance documents which apply to all of its employees, contractors and suppliers and require reporting of, and redress for, human rights violations and related allegations.

The company is aligned with the ICMM Position Statement on Indigenous Peoples and the International Finance Corporation’s Performance Standard 7 on Indigenous Peoples and other international standards and treaties in the area of Indigenous Peoples’ rights.







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ANGLOGOLD ASHANTI GLOBAL OPERATIONS: 2021

au-20211231_g1.gif


Operations, projects and exploration programmes
AMERICASAFRICA REGIONAUSTRALIA
1 Argentina5 Guinea9 Australia
Cerro Vanguardia (92.5%)Siguiri (85%)Sunrise Dam
2 Brazil6 GhanaButcher Well (70%)
Serra GrandeIduapriemTropicana (70%)
AGA Mineração
Obuasi(3)
3 Colombia7 Democratic Republic of the Congo (DRC)
Gramalote (50%)(1)
Kibali (45%)(4)
La Colosa8 Tanzania
QuebradonaGeita
4USA
Silicon(2)

Percentages indicate the ownership interest of AngloGold Ashanti. All operations are 100%-owned unless otherwise indicated.
(1)     Gramalote is managed by B2Gold.
(2)    As at 31 December 2021, a maiden Mineral Resource was declared for Silicon.
(3)    Obuasi's redevelopment project began in 2019.
(4)    Kibali is operated by Barrick Gold Corporation (Barrick).




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OPERATING PERFORMANCE

Group description

AngloGold Ashanti, an independent, global gold mining company with a diverse, high-quality portfolio of operations, projects and exploration activities and is headquartered in Johannesburg, South Africa.

In 2021, our portfolio of ten operations in eight countries, includes long-life operating assets with differing ore body types located in key gold-producing regions around the world. These operating assets were supported by three greenfields projects in Colombia and a focused global exploration programme, including exploration in the United States.

Our operations and projects are grouped into the following regions: Africa, Americas and Australia.

On 12 February 2020, the Company announced that it had reached an agreement with Harmony to sell all its remaining South African producing assets and related liabilities. The sale closed on 30 September 2020. On 10 November 2020, the Company announced that it had completed the sale of its interest in the Morila mine in Mali and on 30 December 2020, the Company announced that it had completed the sale of its interest in the Sadiola Mine in Mali.

AngloGold Ashanti’s operations and joint arrangements employed, on average, 30,561 people (including contractors) in 2021 (2020: 36,952).

Performance

In 2021, AngloGold Ashanti produced attributable 2.472 million ounces (Moz) of gold (2020: 2.806Moz, excluding the 241,000oz produced by former South African operations), as well as 3.5Moz of silver and 173 tonnes of sulphuric acid as by-products.

Production of 2.472Moz of gold was achieved at a cost of sales of $2.9 billion and an all-in sustaining cost of $1,441/oz for subsidiaries and $856/oz for equity accounted joint venture operations compared to a production of 2.806Moz in 2020 at a cost of sales of $2.7 billion and all-in sustaining cost of $1,072/oz for subsidiaries and $810/oz for equity accounted joint venture operations.

Gold
The AngloGold Ashanti Mineral Reserve reduced from 29.5Moz in December 2020 to 28.1Moz in December 2021. This annual net decrease of 1.4Moz (5%) includes depletion of 2.6Moz and reductions due to other factors of 2.9Moz. The Mineral Reserve was estimated using a gold price of $1,200/oz, unless otherwise stated (2020: $1,200/oz). Table 2ato Paragraph (b) prepared in accordance with Regulation S-K 1300 (§ 229.1303 (Item 1303)). See "Item 4D Property, Plants and Equipment - Mineral Resource and Mineral Reserve Summary Disclosure".

Copper
The AngloGold Ashanti Mineral Reserve increased from 1.41Mt (3,105Mlb) in December 2020 to 1.47Mt (3,250Mlb) in December 2021. This gross annual increase of 0.07Mt (145Mlb or 5%) is due to methodology changes. The Mineral Reserve was estimated at a copper price of $2.90/lb (2020: $2.65/lb). Table 2b to Paragraph (b) prepared in accordance with Regulation S-K 1300 (§ 229.1303 (Item 1303)). See "Item 4D Property, Plants and Equipment - Mineral Resource and Mineral Reserve Summary Disclosure".

Capital expenditure, including equity accounted joint ventures, in 2021 amounted to $1,100 million (2020: $757 million).

Safety

There were regrettably two fatalities across the group’s operations in 2021. The all injury frequency rate was 2.13 per million hours worked compared to 1.68 in 2020 (excluding the former South African assets).




76
AFRICA REGION
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Africa is currently home to five of our operations, with one – Kibali – managed by Barrick Gold Corporation. These operations, which contributed 57% or 1.4Moz to total annual group production in 2021, are in contactGhana (Iduapriem and Obuasi), Guinea (Siguiri), Tanzania (Geita) and the DRC (Kibali).
Attributable gold production
(000oz)		Average number of  
employees  
Subsidiary operations
Ghana
Iduapriem202 1,639 
Obuasi108 3,914 
Guinea
Attr. Siguiri 85%258 3,369 
Tanzania
Geita486 5,884 
Joint venture operations
Democratic Republic of the Congo
Attr. Kibali 45%365 2,454 



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Africa Region - Key Statistics
Unit202120202019
Subsidiary operations
Tonnes treated/milledMt21.2 20.5 19.1 
Pay limitoz/t0.035 0.034 0.039 
g/t1.193 1.160 1.330 
Recovered gradeoz/t0.045 0.052 0.060 
g/t1.54 1.77 1.77 
Gold production (a) (attributable)
000oz1,054 1,143 1,094 
Cost of sales$m1,300 1,232 1,173 
Total cash costs (1)
$/oz991 797 801 
All-in sustaining costs (1)
$/oz1,264 975 947 
Capital expenditure$m434 345 359 
Safety
Number of fatalities120
AIFRPer million hours worked0.61 0.55 0.62 
People
Average no of employees: Total14,806 14,496 12,847 
Permanent employees5,619 5,433 4,940 
Contractors9,187 9,063 7,907 

(a) Includes Obuasi gold production in 2020, capitalised as part of the project development.

Unit202120202019
Joint venture operations
Tonnes treated/milledMt3.5 3.4 7.5 
Pay limitoz/t0.048 0.048 0.037 
g/t1.652 1.640 1.255 
Recovered gradeoz/t0.095 0.096 0.060 
g/t3.25 3.29 1.85 
Gold production (attributable)000oz365 364 445 
Cost of sales$m350 340 428 
Total cash costs (1)
$/oz647 629 657 
All-in sustaining costs (1)
$/oz856 810 767 
Capital expenditure$m72 52 51 
Safety
Number of fatalities(2)
n/an/a0
AIFR (2)
Per million hours workedn/an/a0.65 
People
Average no of employees: Total2,454 2,333 2,939 
Permanent employees860 824 1,191 
Contractors1,594 1,509 1,748 

(1)Total cash costs and all-in sustaining costs are non-GAAP measures. For further information on these non-GAAP measures, see “Item 5A: Operating Results-Non-GAAP analysis”.
(2)Excludes Kibali which is managed by Barrick and not AngloGold Ashanti. For years prior to 2020, amounts are inclusive of amounts pertaining to Sadiola, which was sold in 2020.




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Performance summary

Production for the year was 1.4Moz (2020: 1.6Moz), as the region executes the reinvestment programme and various growth projects.

Higher all-in sustaining cost of was achieved because of lower production.

Capital expenditure for the region was $506m (2020: $397m).

Safety performance deteriorated with intrusive rocksone occupational fatality and an all injury frequency rate of 0.61 per million hours worked versus 0.55 in 2020.

Community investment of $10.5m (2020: $12.9m).(1)
(1) Includes joint ventures

All Africa operations certified in terms of International Cyanide Management Code, ISO 45001 (health and safety) and ISO 14001, with the exception of Obuasi where work for its recertification in terms of the Cyanide Code and ISO 14001 is currently in progress.

Solid performances at Geita, Siguiri and Kibali supported production and helped to offset stalled production at Obuasi where underground operations were suspended following a fatal incident in May 2021.

The increase in the regional all-in sustaining unit cost was a result of higher underground mining costs at Geita, because of the step up in ore and waste volumes and higher sustaining capital spend for waste stripping at Teberebie Cut 2 at Iduapriem. Also, higher royalty costs were seen across the operations due to the increase in the gold price received.

Capital expenditure was largely spent on underground Ore Reserve development projects, which continued at Geita, and pre-stripping at Iduapriem (Teberebie Cut 2) to provide access to orebodies identified for future gold extraction. The balance of sustaining capital investment was used for capitalised exploration and sustaining projects to improve asset integrity and realise business improvements across the operations, to ensure safe and sustainable growth and production.

At Geita, substantial progress was made opening up the Nyamulilima open pit, commencing production and remaining on track to achieve full planned operation by the end of 2022. Another notable achievement was the development of the Geita Hill underground mine for which a maiden Mineral Reserve has been declared and where steady state operations are also expected by the end of 2022.

Kibali’s metallurgical plant performed well overall. The increased tonnages processed during 2021 were driven by the greater volumes of open-pit tonnes mined compared to 2020 and yielded 812,152oz. Kibali’s Mineral Reserve net of depletion is expected to increase for the third successive year in 2022, maintaining its plus 10-year life as a Tier One asset.

The grind and recovery optimisation continued at Siguiri’s combination plant during the year, and treatment of carbonaceous material started. The Block 2 project yielded its first ore once the haul road was completed between the remote deposit and the plant at Block 1.

The implementation of an initial three-year re-investment plan to revise and extend Iduapriem’s mine life is underway. This plan involves accelerated waste stripping from the Block 7 and 8 pit, initially from Teberebie Cut 2. Longer term options are to strip waste from Cuts 5 and 6. The re-investment plan includes increasing TSF capacity to match the revised mine plan.

Obuasi update
Underground mining activities resumed in the fourth quarter of 2021, after they were voluntary suspended in May 2021 immediately following the failure of a sill pillar. Towards the end of the first quarter of 2022, the restart plan was tracking to schedule. Construction of the major infrastructure to support the ramp up to 4,000tpd was complete by year end, with the paste-fill plant and GCVS vent fans commissioned. The KRS hoisting system is in service and the ramp up to 4,000tpd is targeted for the end of the first half of 2022. Major infrastructure works are required to support the ramp-up to 5,000tpd. This will include the upgrade of the KMS shaft and KMV shaft as well as the development of a new ventilation shaft. We will continue the Ore Reserve development to access Block 11. Phase 3 construction is expected to be completed at the end of 2023 when the mining rate is planned to lift to 5,000tpd.



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THE AMERICAS
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The Americas hosts three of our operations – one in Argentina and two in Brazil – as well as two greenfields projects in Colombia and a significant new greenfields development in Nevada in the United States.
Attributable gold production
(000oz)		Average number of  
employees  
Operations
  1.     Argentina
Cerro Vanguardia (Attr. 92.5%)145 1,850 
  2.    Brazil
AGA Mineração331 6,142 
Serra Grande83 1,980 




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Americas - Key Statistics
Unit202120202019
Operation
Tonnes treated/milledMt7.8 7.5 7.3 
Pay limitoz/t0.10 0.07 0.11 
g/t3.49 2.46 3.79 
Recovered gradeoz/t0.066 0.081 0.089 
g/t2.27 2.77 3.04 
Gold production (Attributable)000oz559 649 710 
Silver (attributable)Moz3.2 3.3 3.4 
Cost of sales$m822 764 822 
Total cash costs (1)
$/oz921 721 736 
All-in sustaining costs (1)
$/oz1,587 1,003 1,032 
Capital expenditure (2)
$m398 217 195 
Safety
Number of fatalities100
AIFRPer million hours worked3.55 3.68 3.50 
People
Average no of employees: Total9,972 8,789 8,114 
Permanent employees6,452 6,158 5,869 
Contractors3,520 2,631 2,245 

(1)Total cash costs and all-in sustaining costs are non-GAAP measures. For further information on these non-GAAP measures, see “Item 5A: Operating Results-Non-GAAP analysis”.
(2)100 percent, (not attributable) and includes Colombia.

Performance summary

Production for the year was 559,000oz (2020: 649,000oz), achieved at a total cash cost of $921/oz (2020: $721/oz).

One occupational fatality in Brazil, at Serra Grade, in February 2021. The all injury frequency rate improved to 3.55 (2020: 3.68)
Community investment of $5.8m (2020: $6.2m).

All American operations certified in terms of International Cyanide Management Code, ISO 45000 (health and safety) and ISO 14001.

Capital expenditure of $398m (2020: $217m).

The year in review was a challenging one for the Americas operations, which faced significant headwinds from COVID-19.

There were, however, improvements in the second half of the year with production up 18% versus the first half. Sites faced a range of first- and second-order consequences of the pandemic, with Brazil experiencing significant absenteeism during the first half of the year, and Argentina’s production limited due to a range of travel and shift rotation restrictions in response to various waves of the outbreak.

In Brazil, at both AGA Mineração and Serra Grande, plant throughput was scaled back during the second half to ensure tailings deposition remained within legally mandated limits while the conversion programme for the conversion of TSFs to dry-stacking facilities, was fast tracked. At AGA Mineração, operating challenges at Córrego do Sítio were partly offset by improvement at the larger Cuiabá mine, where tonnes of ore treated increased year-on-year.

At Cerro Vanguardia, where silver revenues are offset against gold cash costs, the negative impact of reduced capacity due to COVID-19 restrictions was partly offset by continued weakness in the Argentinean peso against the US dollar and higher volumes of silver produced and sold.

In Colombia, the Quebradona Project remains an attractive long-life, high-grade, low-cost project which will add copper production to our portfolio. At Gramalote, a joint operation with B2Gold, the final feasibility study for the project is expected to be delivered during the course of 2022. Colombia’s environmental agency (ANLA) took the decision to archive our environmental license application relating to the Quebradona project. AngloGold Ashanti has filed an appeal seeking to secure further details on the specific additional information the agency would require in order to be able to prepare a license submission that would meet the agency’s requirements.




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A thorough review and analysis of the items and further information identified as part of ANLA’s archiving decision is being undertaken, with the aim of preparing and submitting a new environmental licence request for Quebradona in due course. This process will result in a delay of the project.

Nevada strategy
AngloGold Ashanti completed its acquisition of Corvus on 18 January 2022, consolidating much of the largest new gold district in Nevada. This provides AngloGold Ashanti the opportunity to establish, in the medium and longer term, a meaningful, low-cost, long-life production base in a premier mining jurisdiction. As the Company has previously indicated, the consolidation of the Beatty District has the potential for significant synergies from economies of scale and integrated infrastructure, including water rights, adjacent concessions and processing facilities. The combined asset base also allows for unified engagement with federal, state and local stakeholders to advance and achieve shared sustainability goals and other district benefits, such as diorites. These contactsopportunities 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 been deformed and act as fluid pathwaystransferred to AngloGold Ashanti. The Company’s conceptual development plan for the mineralising fluids. Gold mineralisationdistrict envisions the North Bullfrog deposit – previously owned by Corvus – being developed first, with initial production expected in the next three years. This is associatedexpected 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 alteration thatrequisite drilling underway at North Bullfrog and Silicon, with an aim to convert Mineral Resource to Ore Reserve. We also plan to begin a pre-feasibility study at Silicon and initiate a concept study for the Merlin deposit. The permitting process for North Bullfrog is expected to start in the first half of 2022. Importantly, given the various deposits across the tenement, our approach to mapping these deposits is expected to take place over a number of years in a staged and de-risked manner.








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AUSTRALIA
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Attributable gold production
(000oz)		Average number of  
employees  
Operations
Australia
1.   Sunrise Dam229 679 
2.   Tropicana 70%265 653 
The two AngloGold Ashanti operations in Australia are Sunrise Dam and Tropicana, both of which are in the north-eastern goldfields in the state of Western Australia. Sunrise Dam is wholly owned, while we have a 70% holding in, and manage, Tropicana, with Regis Resources Ltd, our partner, holding the balance. Regis Resources acquired the stake in Tropicana from IGO Ltd on 31 March 2021. Sunrise Dam includes sulphides suchthe Butcher Well project (70%).




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Australia - Key Statistics
Unit202120202019
Operation
Tonnes treated/milledMt10.5 10.2 10.1 
Pay limitoz/t0.06 0.06 0.06 
g/t1.89 1.95 1.95 
Recovered gradeoz/t0.047 0.054 0.060 
g/t1.47 1.68 1.87 
Gold production (attributable)000oz494 554 614 
Cost of sales$m740 705 632 
  Total cash costs (1)
$/oz1,196 968 730 
  All-in sustaining costs (1)
$/oz1,500 1,225 990 
Capital expenditure$m185 143 149 
Safety
Number of fatalities000
AIFRPer million hours worked6.59 3.74 7.33 
People
Average no of employees: Total1,332 1,230 1,140 
Permanent employees288 259 249 
Contractors 1,044 971 891 

(1)Total cash costs and all-in sustaining costs are non-GAAP measures. For further information on these non-GAAP measures, see “Item 5A: Operating Results-Non-GAAP analysis”.

Performance summary

Production for the year was 494,000oz (2020: 554,000oz), achieved at a total cash cost of $1,196/oz (2020: $968/oz).

Capital expenditure of $185m (2020: $143m).

Safety performance regressed, from an AIFR of 3.74 per million hours worked in 2020, to 6.59. There was no change to the severity of incidents, but the number of incidents increased, attributed to a range of COVID-related factors, including high employee turnover coupled with an increase in the proportion of inexperienced workers.

Community investment of $1.01m (2020: $0.81m).

All operations certified in terms of the Cyanide Code, ISO 45000 (health and safety) and ISO 14001.

While production declined year-on-year, the Australia assets recorded a stronger second half of the year with output improving by 23%, when compared to the first half of the year.

At Sunrise Dam the new, higher-grade and shallower Frankie orebody was accessed at year-end, and 1.09Mt of ore was mined from the new, relatively short life Golden Delicious open pit, displacing lower grade stockpile material from mill feed in the second half of the year. Recovery rates also improved in the second six months of 2021 versus the first half. Mining at Golden Delicious is progressing well, with this material stockpiled and blended with underground ore to optimise throughput and production.

At Tropicana, open pit material movement was lower than planned in 2021, due primarily to the severe shortage of skilled operators and maintenance personnel. The mine plan was adjusted to mitigate this shortfall and reduce the impact on gold production. Progress in the lower priority (bulk waste) work areas suffered as pyritea consequence, resulting in less waste stripping of cutbacks being carried out.




84

SOUTH AFRICA

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The sale of the South African assets to Harmony closed on 30 September 2020. As a result, the figures in this section relate
to the nine months ended on 30 September 2020, unless the context indicates otherwise.

South Africa Key Statistics
Unit202120202019
Operation
Tonnes treated/milledMt0.4 35.1 
  Pay limit (1)
oz/t0.40 0.33 
g/t14.60 11.90 
  Recovered grade (1)
oz/t0.120 0.183 
g/t3.75 5.69 
Gold production000oz241 419 
Cost of sales$m287 479 
  Total cash costs (2)
$/oz1,149 981 
  All-in sustaining costs (2)
$/oz1,296 1,132 
Capital expenditure$m35 57 
Safety
Number of fatalities40
AIFRPer million hours worked6.12 10.00 
People
Average no of employees: Total— 8,297 7,870 
Permanent employees— 7,012 6,682 
Contractors — 1,285 1,188 
(1)Refers to underground operations only.
(2)Total cash costs and arsenopyrite, whilst other minerals such as hematite, magnetite, quartz, calcite, dolomite, biotite and chlorite also occur.all-in sustaining costs are non-GAAP measures. For further information on these non-GAAP measures, see “Item 5A: Operating Results-Non-GAAP analysis”.





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SOUTH AFRICA
Description
TheAs part of the South African asset sale, AngloGold Ashanti Limited sold its remaining three mining rights in South Africa to Golden Core Trade and Invest (Pty) Ltd (“Golden Core”) and Harmony Gold Mining Company Limited pursuant to a sale agreement concluded on or about 12 February 2020, as amended and reinstated from time to time (the “SA Sale Agreement”). These mining rights relate to operations comprise one deep level underground mine, the Mponeng mine, and three surface processing operations, collectively referred to as Surface Operations. The Surface Operations include the Vaal River Surface, Mine Waste Solutions (MWS) andin the West Wits Surface processing operations. The surface operations rework and retreat the low grade stockpiles and tailings storage facilities (TSFs) which result fromarea.

General laws relating to mining and processing of the primary and secondary reef horizons. Both Mponeng and the Surface Operations are wholly owned by AngloGold Ashanti. An agreement and sale was announced in February 2020 for Mponeng and the Surface Operations in South Africa. Operations in South Africa are powered by electricity from Eskom Holdings SOC Ltd which supplies 95 percent of the electricity used in South Africa.

South Africa - Mponeng
Description
Mponeng is situated to the south of the town of Carletonville and is approximately 65 kilometres west of Johannesburg. Mponeng is a deep level gold mine operating between 3,160 metres and 3,740 metres below mine datum (BMD*) and is currently the deepest mine in the world with development at 3,841 metres BMD. Future mining is planned to deepen the shaft bottom to 4,227 metres BMD. All production is currently from Ventersdorp Contact Reef (VCR) with future expansion on both VCR and the Carbon Leader Reef (CLR) horizons. Mponeng comprises a twin-shaft system housing two surface shafts and two sub-shafts. For the exploitation of the ever-deepening Mineral Resource and the need for flexibility on a mine of this nature, the sequential grid mining method was adopted. This has been proven as the best method suited to safe, deep level gold mining often associated with seismicity. Mponeng has its own processing plant situated adjacent to the mine. Ore is treated and smelted at the mine’s gold plant which also processes low grade ore from the stockpile adjacent to the shaft. The ore is initially ground down by means of semi-autogenous milling, after which a conventional gold leach process incorporating liquid oxygen injection is applied. The gold is then extracted by means of CIP technology. The plant conducts electro-winning and smelting using induction furnaces. The plant has a monthly capacity of 160,000 tonnes and operated at 111,000 tonnes for 2019.

AngloGold Ashanti holds a number of mining rights in the Mponeng area which have been successfully converted, executed and registered as new order mining rights at the Mineral and Petroleum Resources Titles Office (MPRTO). An S102 application was submitted in March 2017 to consolidate the three licences into a single mining right (GP30/5/1/2/2(01)MR).

Geology
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 in its current state. The VCR consists of a quartz pebble conglomerate, which can be up to 3 metres 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 terrace 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. CLR is the other gold bearing reef horizon exploited at Mponeng and lies 800 metres beneath the VCR. The CLR and VCR at Mponeng Mine are separated by shales and quartzites. The CLR has historically been mined extensively at Savuka and TauTona mines and the remaining portions thereof have now been transferred to Mponeng Mine.MPRDA

* 0m BMD is 1,828.8 metres Above Mean Sea Level. Mponeng’s collar elevation (surface) is 275.8m BMD.


South Africa - Surface Operations
Description
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 TSFs.


The Vaal River surface operations are located immediately to the north and south of the Vaal River, close to the town of Orkney in the North West province. These operations extract gold from the low grade stockpile material emanating as a by-product of the reef mining activities within the mines of the Vaal River area. The MWS operations are located approximately 8 kilometres from the town of Klerksdorp near Stilfontein, within 20 kilometres of the Vaal River Surface operations. The MWS feed sources (TSFs) are scattered over an area that stretches approximately 13.5 kilometres north to south and 14 kilometres east to west. The West Wits Surface operations are located on the West Wits Line, near the town of Carletonville, straddling the border between the North West and Gauteng provinces.

MWS’s license to mine is covered by the environmental authorisation under the National Environmental Management Act, No. 107 of 1998. In terms of the current legislation, the Mineral and Petroleum Resources Development Act, No. 28 of 2002 (the MPRDA)“MPRDA”) came into effect on 1 May 2004. The objectives of the MPRDA are, amongst other things, to allow for state sovereignty over all mineral and petroleum resources in the country, to promote economic growth and the development of these resources and to expand opportunities for the historically disadvantaged and to ensure security of tenure for the respective operations concerning prospecting, exploration, mining and production. By virtue of the provisions of the MPRDA, the state ensures that holders of mining and prospecting rights contribute to the socioeconomic development of the areas in which they operate. The Mineral and Petroleum Resources Development Amendment Act, No. 49 of 2008 (the “MPRDAA”) became effective on 7 June 2013. On 23 April 2004, the Minister of Mineral Resources and Energy (the “MRE Minister”) published, under the terms of the MPRDA, the Mineral and Petroleum Resources Development Regulations in order to implement the provisions of the MPRDA and MPRDAA. These implementation regulations were amended on 27 March 2020.

The mining charter

Since 2004, a series of mining charters have been adopted in South Africa with the main purpose of transferring part of the ownership of mining assets to black or historically disadvantaged South Africans (“HDSAs”) within a certain time period. Such mining charters also set targets for, amongst other things, the advancement of HDSAs into management positions, the employment of women, procurement of goods and services from HDSA-owned companies, training, community development and the upgrading of mine housing. In 2004, the Broad-Based Socio-Economic Empowerment Charter for the South African Mining Industry, 2004 was published and, in September 2018, the Broad-Based Socio-Economic Empowerment Charter for the Mining and Minerals Industry, 2018 (the “2018 Mining Charter”) was published, repealing all prior mining charters. In September 2021, the High Court of South Africa (Gauteng Division) held that the 2018 Mining Charter is a policy document and does not, per se, bind holders of mining titles. The High Court also set aside various provisions of the 2018 Mining Charter. In



50
November 2021, the South African Department of Mineral Resources and Energy (“DMRE”) informed the parliamentary portfolio committee on mineral resources and energy that it does not intend to appeal the outcome of the judgement, but instead will consider steps to achieve the empowerment objectives through legislative amendments to the MPRDA.

The B-BBEE Act

The Broad-Based Black Economic Empowerment Act, No. 53 of 2003 (the “B-BBEE Act”) is a law of general application in respect of Broad-Based Black Economic Empowerment (“B-BBEE”) and enables the Minister of Trade and Industry to drive B-BBEE across all sectors of the economy. In 2014, the Broad-Based Black Economic Empowerment Amendment Act, No. 46 of 2013 (the “B-BBEE Amendment Act”) came into effect amending the B-BBEE Act to provide a framework of principles, strategies and guidelines aimed at promoting the broad-based socio-economic empowerment of HDSAs across the South African economy and society in the form of ownership, management, employment equity, skills development, preferential procurement, enterprise development and socio-economic development.

Environmental laws relating to mining

The National Environmental Management Act, No. 107 of 1998, as amended (the “NEMA”) includes provisions to deal with environmental regulation of mining and prospecting, which provisions are administered by the MRE Minister. Pursuant to section 24N(8) of NEMA, directors of a company are jointly and severally liable for any negative impact on the environment, whether advertently or inadvertently caused by the company they represent, including damage, degradation and pollution.

From an environmental perspective, given the wide scope of the statutory duty of care in South African environmental law, erstwhile land owners may be held liable for historic contamination by the regulatory authorities. The “polluter pays” principle in South Africa enables the competent authority to seek recourse against various responsible parties based on their historical or current relationship to the source and receptor of degradation or pollution. The duty of care also applies retrospectively to significant pollution or degradation that occurred before the entry into force of NEMA (i.e., 29 January 1999), as well as significant pollution or degradation that arises or is likely to arise at a mining rightdifferent time from the actual activity that caused the contamination (e.g., latent or residual impact) or arises through an act or activity of a person that exacerbates pre-existing contamination. The authorities can also seek compensation in respect of clean-up measures that it is not required to reclaim TSFs. MWS can prove ownership and tenuretake on behalf of the operations. The currentresponsible parties and apportion liability amongst the responsible parties, which could technically include a historic landowner or mining company that caused the pollution. Although the purchasers of AngloGold Ashanti’s assets in South Africa have contractually assumed all environmental liability associated with its former South African operations and agreed to indemnify AngloGold Ashanti for the same, there remains a risk, at least theoretically, of statutory liability to the state.

AngloGold Ashanti’s rights and permits

Pursuant to the SA Sale Agreement, AngloGold Ashanti and Golden Core executed a notarial deed of cession of the mining rights forwith DMRE references GP 30/5/1/2/2/01 MR and GP 30/5/1/2/2/248 MR to transfer and cede these mining rights to Golden Core (the “Deed of Cession”). On 14 June 2021, the West Wits operations cover both undergroundDeed of Cession was registered at the Mineral and surface horizons. The TSFs falling outsidePetroleum Titles Registration Office (the “MPTRO”).

With respect to the mining right area are accommodatedheld under DMRE reference GP 30/5/1/2/2/11 MR, AngloGold Ashanti and Golden Core agreed to make an application in terms of section 102 of the MPRDA at the DMRE after the closing date of the SA Sale Agreement requesting, among other matters, the incorporation of this mining right into the mining right with DMRE reference GP 30/5/1/2/2/01 MR (the “Harmony Consolidation Application”). AngloGold Ashanti also executed a notarial conditional deed of abandonment pursuant to which it conditionally abandons this mining right in terms of section 56(f) of the MPRDA (the “Deed of Abandonment”) on condition that ministerial consent is granted in respect of the Harmony Consolidation Application. On 17 January 2022, the Harmony Consolidation Application was submitted to the DMRE. On the date of the grant of the Harmony Consolidation Application, AngloGold Ashanti will cease to be a holder of any mining rights in South Africa. Once the transaction has been fully implemented, the general laws relating to mining outlined above will no longer be applicable to the company, other than the statutory duty of care in terms of NEMA as described above.


AFRICA REGION

Democratic Republic of the Congo (DRC)

General laws relating to mining

The mining industry in the approved EMPDRC is primarily regulated by Law No. 007/2002 dated 11 July 2002 (the “2002 DRC Code”), as amended by Law No. 18/001 dated 29 January 2018 (the “Reformed DRC Mining Code”) and financialDecree No. 038/2003 dated 26 March 2003, as amended by Decree No. 18/024 dated 8 June 2018 (the “Reformed DRC Mining Regulations”).






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

Companies holding mining titles issued prior to the entry into force of the Reformed DRC Mining Code and Reformed DRC Mining Regulations have claims to a 10-year stability provision for rehabilitation forin accordance with prior mining legislation. Notwithstanding the West Wits miningadoption of the new regulatory regime, their rights as well as under historic surfacewith respect to such stability provision are reserved.

The Reformed DRC Mining Code grants the DRC Minister of Mines the authority to grant, refuse, suspend or terminate mineral rights, subject to conditions set out in the Reformed DRC Mining Code. Mineral rights may be granted in the form of exploration permits for West Wits,an initial period of five years or in the form of mining permits which are still valid.granted for an initial period of 25 years. Mining permits are granted upon successful completion of exploration and satisfaction of certain requirements, including approval of a feasibility study, an environmental impact study and an environmental management plan. The holder of a mining permit is required to commence development and mine construction within three years of the award of such permit. Failure to do so may lead to forfeiture of the mining permit. To protect and enforce rights acquired under an exploration or mining permit, the Reformed DRC Mining Code provides, depending on the nature of a dispute or threat, administrative, judicial and national or international arbitral recourses.


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

Tax laws relating to mining

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

The standard rate of VAT is 16 percent and is applicable to all mining companies. In the DRC, Kibali Goldmines is due certain refunds of VAT which, to date, remain outstanding. During 2021, AngloGold Ashanti did not recover any VAT offsets and refunds from its operations in the Vaal River areaDRC. We believe that our attributable share of the net recoverable VAT balance (including recoverable fuel duty and after discounting provisions) owed to us by the DRC government amounted to $73 million as of 31 December 2021. While an agreement was reached with the DRC government on the reimbursement of the refundable VAT in 2018, uncertainty remains regarding the timing and level of cash receipts and offsets against other taxes for purposes of the recovery of our VAT receivables in the DRC.

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

Foreign exchange control regime

The Reformed DRC Mining Code imposed new exchange control rules requiring that mining title holders repatriate onshore 60 percent of sale revenues received during the investment amortisation period and 100 percent once the investment amortisation is completed. As a result of these new rules, AngloGold Ashanti was not able to fully repatriate dividends from its DRC operations to date.

In 2021, AngloGold Ashanti repatriated $231 million from its operations in the DRC, in the form of dividends from Kibali (Jersey) Limited. Kibali (Jersey) Limited received such cash from Kibali Goldmines S.A. in the form of loan repayments (AngloGold Ashanti’s attributable share: $150 million) and dividends (net of withholding taxes) (AngloGold Ashanti’s attributable share: $81 million). Our attributable share of the outstanding cash balances awaiting repatriation from the DRC amounted to $499 million as of 31 December 2021. The cash and cash equivalents held at Kibali Goldmines are subject to various steps before they can be distributed to Kibali (Jersey) Limited and are held across four banks in the DRC, including two domestic banks.






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AngloGold Ashanti’s rights and permits

AngloGold Ashanti holds a significant stake in the Kibali gold mine which is located in the north-eastern part of the DRC. The Kibali gold mine is owned by Kibali Goldmines which is a dedicated surface sources metallurgical plant with a capacity of 361,200 tonnes per month, while all AGA owned tailings material injoint venture between Barrick Gold Corporation (45 percent), AngloGold Ashanti (45 percent) and Société Minière de Kilo-Moto S.A. (“SOKIMO”) (10 percent) which represents the 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 Surface Operations, the Savuka Gold Plant is dedicated to processing tailings material, while low grade stockpile material is processed through both the Savuka and Mponeng Gold Plants, with the latter the low grade stockpile material is used to fill the processing gap.

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
The TSFs consist of tailings material which originated from the processing of underground ore from the various AGA operations in the Vaal River area and the Buffelsfontein, Hartebeestfontein and Stilfontein gold mines as well as, various operations in the West Wits area. 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 footprintsinterest of the MWS TSFsDRC government. AngloGold Ashanti and Vaal River Surface operations TSFsBarrick Gold Corporation each have a 50 percent interest in Kibali (Jersey) Limited which holds their respective 45% interest in Kibali Goldmines.

The Kibali gold project is operated by Barrick Gold Corporation and comprises ten exploitation permits, of which eight expire in 2029 and two in 2030. Those exploitation permits (11447, 11467, 11468, 11469, 11470, 11471, 11472, 5052, 5073, and 5088) cover an area of approximately 1,100ha.1,836 km2 in the Moto goldfields.




THE AMERICASGhana


General laws relating to mining

Control of minerals and mining companies

The AmericasConstitution of Ghana as well as the Minerals and Mining Act, 2006 (Act 703) (the “GMM Act”) provide that all minerals in Ghana in their natural state are the property of the State and title to them is vested in the President on behalf of and in trust for the people of Ghana, with rights of reconnaissance, prospecting, recovery and associated land usage being granted under licence or lease. The grant of a mining lease by the Ghana Minister of Lands and Natural Resources (the “LNR Minister”) upon the advice of the Minerals Commission is subject to parliamentary ratification unless the mining lease falls into a class of transactions exempted by the Ghanaian Parliament. The LNR Minister has the power to object to a person becoming or remaining a controller of a company which has been granted a mining lease if the LNR Minister believes, on reasonable grounds, that the public interest would be prejudiced by the person concerned becoming or remaining such a controller.

Stability and development agreements

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

Ghana Stability Agreement

In 2004, AngloGold Limited and the Government of Ghana signed a stability agreement (the “Ghana Stability Agreement”) governing certain aspects of the fiscal and regulatory framework under which the company would operate in Ghana for a period of 15 years following the implementation of the business combination between AngloGold Limited and Ashanti Goldfields Company Limited. In June 2018, the Ghana Stability Agreement ceased to apply to the Obuasi mine as a result of the parliamentary ratification of a new development agreement and a new tax concession agreement in relation to the mine (as described below). However, the Ghana Stability Agreement continued to apply to the Iduapriem mine until it expired in April 2019. Since then, AngloGold Ashanti (Iduapriem) Limited (“AGA Iduapriem”) no longer benefits from the Ghana Stability Agreement. Relevant engagements are currently ongoing between AGA Iduapriem and the Minerals Commission to obtain a new agreement for the Iduapriem mine.

Obuasi Development Agreement

AngloGold Ashanti (Ghana) Limited (“AGA Ghana”) negotiated a new development agreement in relation to the Obuasi mine (the “Obuasi DA”) with the Government of Ghana. On 21 June 2018, the Ghanaian Parliament ratified the Obuasi DA which contains stability terms as provided for in stability agreements. The Obuasi DA confers a number of rights and obligations on AGA Ghana with respect to the Obuasi mine, including, among other matters, (i) the stabilisation of the fiscal and regulatory framework (except for enactments promoting the use of Ghanaian goods and services) for a period of 10 years (with a potential of it being extended for five years); (ii) the right to hold up to 80 percent of proceeds received from exporting minerals in foreign currencies outside of Ghana; (iii) obligation to give preference to materials and goods made in Ghana as well as services provided by Ghanaians; and (iv) the right to peaceful enjoyment and protection against expropriation.






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Obuasi Tax Concession Agreement

Fiscal terms, which will ordinarily form part of a single stabilisation document, were separated from the Obuasi DA. Hence a separate tax concession agreement in relation to the Obuasi mine (the “Obuasi TCA”) was signed with the Government. On 21 June 2018, Parliament ratified the Obuasi TCA with a concession period until 31 December 2027. The Obuasi TCA contains a number of tax concessions for AGA Iduapriem with respect to the Iduapriem mine, including, among other matters, (i) a corporate income tax rate of 32.5 percent or such lower rates as may be fixed by law (instead of the current statutory rate of 35 percent); (ii) exemption of certain transactions from capital gains tax; (iii) a sliding scale royalty rate ranging from 3 percent to 5 percent for a price ranging from $1,300 up to $2,000 and above per ounce (instead of the current flat rate of 5 percent); and (iv) certain VAT exemptions and refunds.

Government’s Golden Share

Section 60(1) of the GMM Act provides that the Government of Ghana can require a mining company to issue for no consideration to the Republic of Ghana a special share (a “Golden Share”). A Golden Share in AGA Ghana was issued to the Government of Ghana and the Obuasi DA confirms that the Government’s rights with respect to its Golden Share apply only in respect of AGA Ghana’s assets and operations in Ghana. The Golden Share confers certain rights on the Government in respect of AGA Ghana. For example, written consent of the holder of the Golden Share is required for, among other matters, (i) any amendment of the rights and restrictions in respect of the Golden Share; (ii) the voluntary winding-up or voluntary liquidation of AGA Ghana; (iii) the disposal of any mining lease held by AGA Ghana; and (iv) the disposal of all or substantially all of the assets of AGA Ghana. The holder of the Golden Share generally does not have the right to participate in the profits or assets of AGA Ghana (by way of dividend or other capital issuances), but is entitled to attend any general meeting of shareholders.

Tax laws relating to mining

Currently, the main tax laws in Ghana include the following acts and regulations, which have been frequently amended over the years:
•Income Tax Act, 2015 (Act 896) (as amended) and Income Tax Regulations, 2016 (L.I. 2244);
•Customs Act, 2015 (Act 891) (as amended) and Customs Regulations, 2016 (L.I. 2248);
•Value Added Tax, 2013 (Act 870) (as amended) and Value Added Tax Regulations, 2016 (L.I. 2243); and
•Revenue Administration Act, 2016 (Act 915).

The Income Tax Act, 2015 (Act 896) ringfences and taxes income derived from mining operations at the rate of 35 percent. The Obuasi TCA for AGA Ghana provides for a stabilised income tax rate of 32.5 percent. AGA Iduapriem currently pays income tax at the rate of 35 percent.

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

Environmental laws relating to mining

Mining companies are required, under the GMM Act, Environmental Assessment Regulations, 1999 (L.I. 1652) and Water Use Regulations, 2001 (L.I. 1692), to obtain all necessary approvals from the Environmental Protection Agency (the “Ghana EPA”) and, in appropriate cases, the Water Resources Commission and/or the Ghanaian Minerals Commission before undertaking mining operations. This includes undergoing an environmental impact assessment process and, following the issuance of the environmental permit, periodically preparing environmental management plans, which include details of the likely impacts of mining operations on the environment and local communities, as well as a comprehensive plan and timetable for actions to mitigate and remediate any adverse effects of the mining operations, for submission to the Ghana EPA. The Minerals and Mining (Health, Safety and Technical) Regulations, 2012 (L.I. 2182) also impose further obligations to obtain the necessary permits from the Inspectorate Division of the Ghana Minerals Commission for the operation of mines. The environmental permits for AGA Ghana (for the Obuasi redevelopment project and for the construction and operation of tailings and water infrastructure projects) are valid until November 2022. The environmental permits for AGA Iduapriem (for the re-mining of Block 5 and for the tertiary crusher installation project) are valid until July 2022. Renewal processes for the environmental permits for both mines are underway. The permit for the tailings infrastructure project of AGA Iduapriem is valid until 2023.

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



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years. Each mining company is typically required to secure a percentage (typically between 50 percent and 100 percent) of the estimated rehabilitation costs by posting reclamation bonds underwritten by banks and restricted cash. The terms of each reclamation bond are determined by a reclamation security agreement between that company and the Ghana EPA. Both AGA Ghana and AGA Iduapriem have bank guarantees in place for environmental reclamation liabilities as well as escrow accounts with joint signatories from the Ghana EPA. The guarantees for AGA Iduapriem will expire in October 2022, whereas the guarantees for AGA Ghana are valid until December 2022.

Foreign exchange, export and other rules

Retention of foreign earnings

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

Rules regarding the export of gold and diamonds

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

Local assaying and refinement policies

In November 2016, the Ministry of Lands and Natural Resources issued a ministerial directive appointing the PMMC as designated laboratory for assaying in Ghana. The directive requests all persons holding export licences for gold to submit all gold to be exported to the PMMC for assay before export. Mining businesses, including AngloGold Ashanti, acting through the Ghana Chamber of Mines were opposed to this directive due to its potential negative impact on mining companies in the region. As a result, the Chamber initiated proceedings to reverse or modify the directive. Following discussions in respect of the mining industry’s concerns, the Chamber and Government agreed on the modalities for implementing the national assaying policy and it was introduced in February 2018 following a one-month pilot among certain mining companies. Subsequently, in June 2019, the LNR Minister released a statement reiterating the Government of Ghana’s plans to locally refine 30 percent of the gold produced in the country. Discussions between the Ghana Chamber of Mines and the Government of Ghana’s economic management team in 2019 led to the Chamber agreeing to consider the proposal and for the parties to discuss detailed modalities to ensure that a move to locally refined gold does not become detrimental to the mining industry.

Local content and local participation policy

Mining companies must submit a detailed programme for the recruitment and training of Ghanaians with a view to achieving “localisation”, which is the replacement of expatriate personnel in a company’s Ghanaian operations by Ghanaian personnel. In addition, mining companies must give preference to Ghanaian products and personnel, to the maximum extent possible, consistent with safety, efficiency and economies. The Minerals and Mining (General) Regulations, 2012 (L.I. 2173) give further details on the localisation policy. On 15 October 2020, the Minerals and Mining (Local Content and Local Participation) Regulations, 2020 (L.I. 2431) were adopted in order to expand the scope of local content requirements in the mining industry. For example, there are restrictions on the number of expatriates that can be employed by mineral rights holders and mine support service providers in a bid to enhance the participation of Ghanaians in the mining industry.

AngloGold Ashanti’s rights and permits

Obuasi

The Obuasi mine originally held four contiguous mining leases, the Obuasi Mining Lease and the Binsere 1, 2 and 3 Mining Leases. The Obuasi Mining Lease was granted by the Government of Ghana on 5 March 1994, covering an area of approximately 338 km2 in the Amansie East and Adansi West districts of the Ashanti region, for a term of 30 years from the date of the agreement. The Binsere Mining Leases were granted on 9 April 1998, covering an area of 140 km2, for a term of 30 years from the date of the agreement. All leases in respect of the Obuasi mine had been duly ratified in accordance with Ghanaian law. In March 2007, the Government of Ghana agreed to extend the term of the Obuasi Mining Lease for a further term of 30 years. The amended Obuasi Mining Lease was also ratified by Parliament on 23 October 2008. The Obuasi Mining Lease will expire in March 2054 and the Binsere Mining Leases in April 2028. The mining leases are renewable. On 3 March 2016, the Minerals Commission approved AGA Ghana’s application to surrender approximately 273.54 km2 of the area to the Government of Ghana, reducing the lease areas to 201.46 km2. The remaining parcel of land that will be subject to the mining lease is situated within various villages and townships in the region but excludes the municipality of Obuasi. On 15 January 2021, the



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

Iduapriem

The Iduapriem mine operates under four different mining leases: the Iduapriem Mining Lease (LVB1539/89) (36.47 km2), the Ajopa Mining Lease (LVB/WR326/09) (46.12 km2), the Teberebie Mining Lease (LVB3722H/92) (28.53 km2) and the Ajopa South Mining Lease (LR#1109/1999) (28.10 km2). On 17 February 2020, the mining leases were extended for a further period of 15 years and such leases will now expire in February 2035. All leases in respect of the Iduapriem mine have been duly ratified in accordance with Ghanaian law.


Guinea

General laws relating to mining

In Guinea, the mining industry is primarily regulated by Law L/2011/006/CNT dated 9 September 2011 as amended by Law L/2013/053/CNT dated 8 April 2013 and promulgated by Decree D/2013/075/PRG/SGG dated 17 April 2013 (together, the “Guinea Mining Code”).

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

In 2017, Decree D/2017/285/PRG/SGG was adopted, which sets forth the conditions for the constitution and management of the Local Development Fund (“Fodel”), as well as Joint Order A/2017/6326/MMG/MATD/SGG, which sets forth the conditions for the use, management and control of the Fodel. Together, these set forth the use of the mining companies’ financial contribution to the development of the local communities and the rules applying to the Fodel, which was created under the Guinea Mining Code. On 13 July 2018, a Joint Order A/2018/5212/MEF/MMG/MB/MATD/SGG was issued, which regulates the use, management and monitoring of the resources allocated to local authorities pursuant to article 165 of the Guinea Mining Code. In 2019, an inter-ministerial committee was created to supervise and control the Fodel through the adoption of Joint Order AC/2019/089/MMG/MATD/SGG setting out the conditions for the constitution, powers and management of said inter-ministerial committee. On 6 September 2019, Decree D/2019/263/PRG/SGG was issued, which sets forth local content requirements in the framework of the implementation of public and private projects in Guinea.

On 16 June 2020, a new procedure for the export of gold by mining companies was enacted through the adoption of Decree D/2020/113/PRG/SGG, which sets out, amongst other things: (i) when the industrial production tax referred to in article 161-1 of the Guinea Mining Code shall be paid, and (ii) the process to be followed to export gold bullion.

On 27 April 2021, a Joint Order AC/2021/824/MMG/BCRG/SGG was issued establishing the fees and costs charged by the Guinean mining authorities and the Guinean Central Bank in connection with the administrative procedures for the export of gold by industrial and semi-industrial companies.

AngloGold Ashanti’s rights and permits

The group’s Guinean subsidiary, Société AngloGold Ashanti de Guinée S.A. (“SAG”), has title to the Siguiri mine in the form of a mining concession, granted by virtue of Presidential Decree D/97/171/PRG/SGG, dated 4 August 1997, for a period of 25 years (the “Mining Concession”). The Mining Concession covers exploration and mining for gold, silver, diamonds and associated ores, and was originally covered by a mining convention entered into with the Republic of Guinea in 1993 and amended in 2005. On 28 June 2016, SAG and the Government of Guinea concluded a revised and consolidated mining convention (convention de base révisée et consolidée) (the “Revised Mining Convention”) which encompasses a renewal of the term of the original mining convention and other amendments necessary to support an expansion project to extend the life of the Siguiri mine (the “Expansion”). In compliance with the provisions of the Guinea Mining Code, the Revised Mining Convention was ratified by the Guinean National Assembly (Law L/2016/N°067/AN dated 30 December 2016, promulgated by Decree D/2017/015/PRG/SGG dated 24 January 2017), submitted to the Guinean Supreme Court which rendered a favourable opinion (Judgement N°AC 005 dated 16 January 2017), and ratified by the President of the Republic of Guinea (Decree D/2017/021/PRG/SGG dated 24 January 2017), following which it replaced the original mining convention and became effective on 24 January 2017.








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Key elements of the Revised Mining Convention include the following:

•a duration of 25 years, expiring 23 January 2042, subject to further renewal if mining operations continue;
•the term of the Mining Concession is aligned with the term of the Revised Mining Convention since the Republic of Guinea committed to maintain the Mining Concession for the entire duration of the Revised Mining Convention;
•SAG’s operations remain governed by the 1995 Guinea Mining Code (the prior mining code) and are only subject to the provisions of the Guinea Mining Code to the extent they are expressly set out in the Revised Mining Convention;
•the stability of the customs and tax regime is guaranteed for the entire initial term of the Revised Mining Convention, and subject to certain conditions being met, any renewal period(s);
•the Republic of Guinea holds a 15 percent free-carried/non-contributory interest;
•the Republic of Guinea is entitled to a royalty on gold of 5 percent based on a spot gold price as per LBMA fixing (PM) up until the date of steady state commercial production of the first phase of the Expansion, after which the royalty rate applicable to gold will vary depending on threshold prices as per LBMA fixing (PM), namely: 3 percent if the gold price is $1,300 or less, 5 percent, if above $1,300 and up to $2,000 and 7 percent if above $2,000;
•SAG benefits from 5-year income tax holiday from the beginning of steady state commercial production of the first phase of the Expansion, after which the income tax rate is set at 30 percent;
•a local development tax of 0.4 percent is payable on the sale price for gold and silver received by SAG up until 31 December 2027, after which it will be increased to 0.6 percent;
•salaries of expatriate employees are subject to a 10 percent income tax;
•goods imported into Guinea for purposes related to the construction and commissioning of the first phase of the Expansion are exempt from all customs taxes and duties; and
•SAG is committed to adopting and progressively implementing a plan for the effective rehabilitation of the mining areas disturbed or affected by its operations.

The Mining Concession covers an area divided into four blocks totaling approximately 1,495 km2. SAG has the exclusive right to explore and mine in any part of the concession area for the duration of the Revised Mining Convention. The Revised Mining Convention also grants SAG the option to secure certain land rights over additional areas currently covered by exploration permits, but to which SAG may need access for purposes of establishing roads or storage of tailings. The Mining Concession is due to expire on 4 August 2022. On 1 February 2022, a renewal request was filed in accordance with the provisions of the Revised Mining Convention. Pursuant to the Revised Mining Convention, the Mining Concession can be renewed for one or more period(s) that cannot exceed 10 years each as long as the Revised Mining Convention is in force.

The Revised Mining Convention is subject to early termination if the parties formally and expressly agree to it, if the last of the mining title held by SAG expires or is relinquished without any renewal application having been filed, if all project activities are voluntarily suspended for a continuous period of 12 months or are permanently abandoned by SAG, or if SAG goes into voluntary liquidation or is placed into liquidation by a court of competent jurisdiction.


Mali

General laws relating to mining

The mining industry in Mali is primarily regulated by Ordinance No. 2019-022/P-RM dated 27 September 2019 containing the new mining code of the Republic of Mali (the “Mali Mining Code”) and Decree No. 2020-0177/PT-RM dated 12 November 2020 implementing the Mali Mining Code. On 8 December 2020, Decree No. 2020-0288/PM-RM enacted the new model mining convention referred to in Decree No. 2020-0177/PT-RM.

The Mali Mining Code applies to the mining operations previously carried out by AngloGold Ashanti entities in Mali (as further described below) except with respect to the validity, scope and duration of their exploitation permits and the provisions on tax and customs regime contained in their mining conventions (conventions d’établissement) for their remaining duration. In this regard, the transitory rules of the Mali Mining Code specify that mining conventions in force remain valid for their remaining term and their holders continue to benefit from the stability of the tax and customs regime set out therein.

Exploration and prospecting activities are carried out under exploration authorisations (autorisation d’exploration) or exploration permits (permis de recherche), which give their holder the exclusive right to carry out exploration activities over a given area. Exploration authorisations are granted by the Mining Administration (Administration chargée des Mines) for a non-renewable period of three months, while exploration permits are granted by Ministerial Order for a period of three years renewable twice for additional 3-year periods. Applications for exploration authorisations and exploration permits must contain various documents attesting to the financial and technical capacity of the applicant as well as a detailed works and costs programme.

A large scale permit exploitation permit (permis d’exploitation de grande mine) is required to mine a deposit located within the area of an exploration permit and grants the holder an exclusive right to exploit the named substances and proceed with the processing and commercialisation of the substances extracted within its perimeter. Large scale exploitation permits are granted by decree of the Head of Government for a maximum period of 12 years renewable for 10 year-periods until depletion of the deposits. An application must be submitted to the Mining Administration (Administration chargée des Mines) and must contain



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various documents attesting to the financial and technical capacity of the applicant, a feasibility study, a detailed environmental study in respect of the impact of the project on the environment, an environmental permit, a closure and rehabilitation plan as well as a community development plan. As soon as the large scale exploitation permit is granted, the permit holder must incorporate a company under the laws of Mali and assign the permit for free to this company. The State will have a 10 percent free-carried interest in the company. This interest will be converted into priority shares and the State’s participation will not be diluted in case of an increase in capital. In addition, the company is required to ensure that private Malian investors are offered the possibility to acquire 5 percent of their capital.

All mining titles mentioned above (save for the exploration authorisation) require a mining convention (convention d’établissement) to be signed by the State and the titleholder defining their rights and obligations, the duration of which is 20 years.

AngloGold Ashanti’s rights and permits

Historically, AngloGold Ashanti had interests in the Morila, Sadiola and Yatela gold mines, all of which were governed by mining conventions (conventions d’établissement) covering exploration, mining, treatment and marketing in a comprehensive document. These documents include general provisions regarding exploration (work programme, fiscal and customs framework) and exploitation (formation of a local limited liability mining company, State interest, fiscal and customs framework governing construction and exploitation phases, exchange controls, marketing of the product, accounting regime, training programmes for local labour, protection of the environment, reclamation, safety, hygiene and dispute settlement). The Morila and Sadiola gold mines were sold in November and December 2020, respectively.

In April 2017, Société d’Exploitation des Mines d’Or de Yatela S.A. (“Yatela”), the company operating the Yatela gold mine, began the implementation of a closure plan in order to relinquish the property. In February 2019, AngloGold Ashanti and its joint venture partner IAMGOLD Corporation announced an agreement to sell each of their 40% interests in Yatela to the Government of Mali, which holds the remaining 20% interest. Completion of the transaction is subject to the fulfilment or waiver of a number of conditions precedent and has been delayed several times since 2019 due to political instability and related events in Mali as well as the COVID-19 pandemic. Yatela’s exploitation permit covers approximately 212 km2. Yatela has a 30-year permit which expires in 2030.


Tanzania

General laws relating to mining

Tanzania Mining Act and Tanzania Mining Regulations

Mineral rights in the United Republic of Tanzania are principally governed by the Mining Act, Chapter 123 (R.E. 2019), as amended (the “Tanzania Mining Act”) and the Mining Regulations, 2010, as amended (the “Tanzania Mining Regulations”). The Tanzania Mining Act and the Tanzania Mining Regulations came into force in November 2010 followed by amendments to the Tanzania Mining Act in 2017 and subsequent amendments to the Tanzania Mining Regulations in 2018 and 2019. Those amendments, together with an Executive Order, introduced, among other matters, (i) the Tanzania Mining Commission; (ii) local content requirements for procurement of goods and services; and (iii) Mining Licence requirements of 5 percent of a licencee’s equity to be held by Tanzanians, with 80 percent of its managerial positions to be held by Tanzanians and 100 percent of other positions to be held by Tanzanians, in addition to the shareholding of the Government of Tanzania pursuant to Section 10 of the Tanzania Mining Act (i.e. free-carried interest).

Minimum shareholding and public offering

In 2016, the Mining (Minimum Shareholding and Public Offering) Regulations, 2016, as amended, was adopted. The regulations set out the requirement to sell shares to Tanzanian nationals, by way of a public offering and listing on the Dar es Salaam Stock Exchange, which will apply to companies that are carrying out large scale mining operations. The regulations also require all existing holders of a special mining licence to list a minimum of 30 percent of their shares on either the Main Investment Market or the Enterprise Growth Market Segment of the Dar es Salaam Stock Exchange within 6 months of the regulations coming into force, which was on 24 February 2017. However, the company believes the listing requirement conflicts with the mining development agreement. In September 2020, the Government of Tanzania published the Mining (Minimum Shareholding and Public Offering) (Amendment) Regulations, 2020, which exempts companies holding special mining licences from local listing requirements if such mining company has entered into an agreement with the Government of Tanzania that provides for a non-dilutable free-carried interest in such mining company and an economic benefits sharing arrangement.

Arbitration

Along with other major mining companies, AngloGold Ashanti’s subsidiaries are seeking a constructive dialogue with the Government of Tanzania to gain assurances that the Geita gold mine will not be affected by recent legal and fiscal changes adopted by the Government in light of their mining development agreements which guarantee (i) fiscal and regulatory stability,



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and (ii) an agreement between all parties before material legal and regulatory changes are made. As a precautionary step to safeguard its interests, AngloGold Ashanti commenced international arbitration proceedings against the Government of Tanzania in connection with the enactment of this legislation in July 2017. Declaratory relief is sought in accordance with the terms of the company’s existing mining development agreement to preserve its and its shareholders’ rights and interests in the Geita gold mine. AngloGold Ashanti is seeking confirmation from the Government of Tanzania that, as a result of its existing mining development agreement, the company does not fall within the scope of the new mining legislation that includes, among other things, (i) listing requirements; (ii) an increase in the rate of revenue royalties from 4 to 6 percent and a 1 percent clearance fee; and (iii) a right for the Government of Tanzania to (a) renegotiate existing mining agreements at its discretion, (b) receive a non-dilutable, free-carried interest of no less than 16 percent in all mining projects, and (c) acquire up to 50 percent of the shares of the mining company commensurate with the total tax expenditure incurred by the Government in favour of the mining company. AngloGold Ashanti can provide no assurance that the new mining legislation, including the listing requirements, will not apply to its operations in Tanzania and the outcome of the arbitration action may have a material adverse impact on the company’s results of operations and financial condition. See also “Item 8A: Legal Proceedings—Tanzania”.

Categories of mineral right licences

Ownership of and control over minerals on, in or under the land vest in the President of the United Republic of Tanzania. No person is allowed to prospect for minerals or carry on mining operations except pursuant to the authority of a mineral right licence granted, or deemed to have been granted, under the Tanzania Mining Act or its predecessor acts. To enable a company to prospect or mine, the Tanzania Ministry of Minerals (“MEM”) initially grants an exclusive prospecting licence. Upon presentation of a feasibility study, together with certain other environmental, social and financial assurances, the MEM may then grant a form of licence for mining. Three categories of licences can be applied for under the Tanzania Mining Act: licences for exploration, licences for mining, and licences for ancillary activities. Licences for exploration include prospecting licences and gemstone prospecting licences. Licences for mining include special mining licences (if the proposed capital investment is equal to at least $100 million), mining licences (if the proposed capital investment is equal to between $100,000 and $100 million) and primary mining licences (reserved for Tanzanian citizens).

A prospecting licence grants the holder the exclusive right to prospect in the area covered by the licence for all minerals within the class of minerals applied for. An application for a prospecting licence is made to the Mining Commission and the licence, once granted, is valid for an initial term of four years. After the initial term, the licence is renewable for a further period of three years, with no option for renewal thereafter. Upon renewal, 50 percent of the area covered by the licence must be relinquished.

Mining is mainly carried out through either a mining licence or a special mining licence, both of which confer on the holder the exclusive right to conduct mining operations in or on the area covered by the licence. A special mining licence is granted for the shorter of either the estimated life of the ore body indicated in the feasibility study report or such period as the applicant may request. The holder of a special mining licence may apply for renewal of its licence at any time but no later than one year before the expiry of the licence and such renewal shall not be for a period exceeding the estimate life of the remaining ore body. Special mining licences have certain fiscal and other advantages over mining licences, as the holder of a special mining licence may enter into a mining development agreement with the Government of Tanzania to guarantee the fiscal stability of a long-term mining project and make special provision for the payment of royalties, taxes, fees and other fiscal imposts. A special mining licence holder may, in certain circumstances, unilaterally amend the programme of the mining operations agreed with the MEM.

Tax laws relating to mining

Currently, the main tax laws in Tanzania comprise the Finance Act, 2015 (No. 16), which came into force on 1 July 2015, and the Finance Act, 2017 (No. 4), which came into force on 1 July 2017. Both tax laws impose and revise certain taxes, duties, levies and fees. Among other provisions, inspection or clearance fees on the exportation or domestic use of minerals were introduced. Such exportation or domestic use is restricted unless such minerals have been inspected or cleared at the mining areas, ports, airports, border or posts and the clearing fee of 1 percent of the gross value of the minerals has been paid by the exporter or any other person in possession thereof. Local government levies and environmental management fees and charges apply as well.

Effective 20 July 2017, the Value Added Tax Act, 2014 (No. 5) (the “VAT Act”) was amended in order to restrict VAT relief for VAT input tax paid by mining companies on goods and services. Prior to the enactment of this amendment to the VAT Act, mining companies were entitled to 100% VAT relief in respect of the goods and services they purchased. The amendment prohibits refunds for VAT input tax incurred on a series of raw products, including the exportation of “raw minerals”. Subsequently, the Tanzania Revenue Authority (“TRA”) denied our applications for VAT input credit refunds, which amounted to a total of $142 million (after discounting provisions) as of 31 December 2021, covering the period from July 2017 onwards, on the basis that all of the gold doré that we export constitutes “raw minerals” for purposes of the VAT Act. In response, the company filed formal notices of objection with the TRA stating that the exportation of gold doré is, in its view, not covered by the restriction since doré does not fall within the category of “raw minerals” as used in the VAT Act. On 22 February 2019, the Tanzania Mining Act was amended to introduce a definition for “raw minerals” which supports our interpretation that gold doré is excluded from the prohibition. On 1 July 2020, the Finance Act, 2020 (No. 8), amended the VAT Act, without retrospective effect, in order to remove the restrictions on VAT input tax credits for the exportation of “raw minerals” as well as a series of other raw products. This recent amendment confirms the technical basis for VAT input tax recovery for mineral exporters from July 2020 onwards. VAT claims from July 2020 onwards are subject to verification procedures by the TRA before any refunds will be received. In 2021, the



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company was able to offset $54 million of verified VAT claims (from July 2020 onwards) against its corporate tax liability in Tanzania. Discussions with the TRA are ongoing to resolve our historical claims for VAT input credit refunds for the period from July 2017 to June 2020.

Natural resources, export and other rules

Natural resources legislation

In Tanzania, two countries,laws in respect of natural resources came into force in July 2017: the Natural Wealth and Resources Contracts (Review and Re-negotiation of Unconscionable Terms) Act, 2017 (No. 6) (the “Unconscionable Terms Act”) and the Natural Wealth and Resources (Permanent Sovereignty) Act, 2017 (No. 5) (the “Permanent Sovereignty Act” and together with the Unconscionable Terms Act, the “Natural Resources Laws”). Implementing regulations were published in January 2020. The Natural Resources Laws provide that Tanzania has sovereignty over its natural resources and that all arrangements or agreements that relate to “natural wealth and resources” are subject to review by the National Assembly to ensure that they are in the interests of the people of Tanzania. During a review all unconscionable terms as interpreted in accordance with the law are expunged from the agreement. In addition, under the laws, disputes over natural wealth and resources will not be subject to any proceedings in any foreign court or tribunal. As a result, investors are restricted from accessing international dispute resolution mechanisms. Accordingly, companies are now required to adopt Tanzanian law and local dispute resolution in all mining agreements. As such, all disputes will be handles by Tanzanian judicial bodies or any other Tanzania government body vested with powers to resolve disputes. In addition, to ensure that the Government and the people of Tanzania obtain an equitable stake in the exploitation of mining resources, all project earnings must be retained in Tanzanian banks. Investors are also prevented from freely exporting raw minerals and repatriating funds.

Section 6 of the Unconscionable Terms Act specifically provides that where there is an unconscionable term, the National Assembly may pass a resolution for re-negotiation of the agreement whereupon the Government shall serve notice to the investor to re-negotiate the term or agreement. The Government and the particular investor have 90 days from the notice date to re-negotiate the term or agreement. If both parties fail to revise the unconscionable term, the term will be deemed removed from the agreement. A term is considered “unconscionable” under the Unconscionable Terms Act if, among other grounds, the requirements or provisions of the agreement restrict the right of the state to exercise authority over foreign investment within the country and in accordance with the laws of Tanzania, are inequitable and onerous to the state, secure preferential treatment designed to create a separate legal regime to be applied discriminatorily for the benefit of a particular investor, deprive the people of Tanzania of the economic benefits derived from subjecting natural wealth and resources to beneficiation in the country, or subject the state to the jurisdiction of foreign laws and foreign courts or tribunals.

Local participation policy

On 15 September 2015, the Non-Citizens (Employment Regulation) Act, 2015 (No. 1) (the “Non-Citizens Act”) came into force which vests powers concerning work permits with the Labour Commissioner. Therefore, non-citizens wishing to be employed in the country are required to apply and be granted a work permit before applying for a residence permit. Before granting the work permit, the Labour Commissioner must be satisfied that all efforts have been explored to acquire a local expert. Further, the company is required to submit a succession plan which sets out a well-articulated plan for the transfer of the non-citizen’s knowledge and expertise to Tanzanian citizens. Moreover, the Commissioner General of Immigration is required to take into consideration conditions of the work permit issued by the Labour Commissioner when granting a residence permit.

AngloGold Ashanti’s rights and permits

The Geita gold mine is located in the Lake Victoria goldfields of the Mwanza region of Tanzania. AngloGold Ashanti has concluded a mining development agreement with the Ministry of Minerals on 24 June 1999 and was issued a special mining licence (SML45/99) covering approximately 196 km2 for a period of 25 years, which expires on 26 August 2024. On 9 October 2014, an addendum to the mining development agreement was entered into ratifying, among other matters, an increase in the royalty rate from 3 percent to 4 percent with effect from 1 May 2012. In March 2020, Geita Gold Mining Limited received the consent of the Minister of Minerals to change the mining method under its special mining licence from open pit to underground method, subject to the requisite terms and conditions. Within the special mining licence area, there are also seven primary mining licences of approximately 0.63 km2 in total which belong to third parties. Furthermore, Geita Gold Mining Limited holds prospecting licences covering (i) an area of 120 km2 in the immediate vicinity of its special mining licence area, and (ii) an area of 690 km2 located in the Dodoma, Singida and Shinyanga regions, but none of these areas contain any Mineral Reserve. All licenses are in good standing.


AUSTRALIA

General laws relating to mining

In Australia, with a few exceptions, all onshore minerals are owned by the Crown. The respective Minister for each state and territory is responsible for administering the relevant mining legislation enacted by the states and territories.



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Native title legislation applies to certain mining tenements within Australia. Australia recognises and protects a form of native title that reflects the entitlement of Aboriginal people to their traditional lands in accordance with their traditional custom and laws. Should native title claims or determinations exist, certain native title processes and procedures will apply under the Native Title Act 1993 (Cth) (the “Native Title Act”) before the tenure is granted. Tenure may be granted subject to conditions relating to native title rights. In the mining context, native title matters are managed as part of the tenement grant process. If disputes arise in relation to the grant of a particular tenement, they can be referred to the National Native Title Tribunal, established under the Native Title Act, for resolution. Native title legislation also provides a framework for compensation to be paid for acts that affect native title rights and interests. Ordinarily, the relevant Commonwealth or State government is liable to pay compensation for acts attributable to it. However, in the state of Western Australia, the Mining Act 1978 (WA) provides that an applicant for the grant of, or the holder of, a mining tenement is responsible for native title compensation, if determined to be payable, to native title holders.

Federal, state and territory Aboriginal and non-Aboriginal heritage laws operate in parallel to the native title legislation. State and territory heritage laws exist predominantly for the purposes of managing the impact of developments on sites, objects and areas of heritage significance. In Western Australia, impacts to Aboriginal cultural heritage are regulated by the Aboriginal Heritage Act 1972 (WA). However, this legislation will be repealed and replaced by the Aboriginal Cultural Heritage Act 2021 (WA) which was enacted in 2021 and is expected to become effective in early 2023. Where an area of heritage significance is placed on the national or world heritage registers, federal approval processes may also apply. To date, there has not been any significant impact on any of AngloGold Ashanti’s tenure due to native title or heritage legislation.

AngloGold Ashanti’s operating properties are located in the state of Western Australia where tenure is issued under, and mining operations are governed by, the Mining Act 1978 (WA). The most common forms of tenure in Western Australia are exploration and prospecting licences, mining leases, miscellaneous licences and general purpose leases. In most Australian states, if the holder of an exploration licence establishes indications of an economic mineral deposit in the area covered by the exploration licence and complies with the conditions of the grant, the holder of the exploration licence has a priority right against all others to be granted a mining lease which gives the holder exclusive mining rights with respect to minerals on the property.

It is possible for an individual or entity to own an area of land (including for infrastructure purposes) and for another individual or entity to be granted the right to explore for or mine any minerals located on or under the surface of the same area. The maximum initial term of a mining lease in Western Australia is 21 years and the holder has the right to renew the lease for an additional 21 years. Subsequent renewals are granted at the discretion of the respective state or territory’s minister responsible for mining rights. In Western Australia, mining leases can only be assigned with the prior written consent of the minister.

Tax laws relating to mining

Government royalties are payable by the holder of mining tenure in respect of minerals obtained from the relevant area of land at the rates specified in the relevant legislation in each state or territory. The royalty on gold production in Western Australia is payable quarterly at a fixed rate of 2.5 percent of the royalty value of gold metal produced. The royalty value is calculated by multiplying the amount of gold produced during a given month by the average gold spot price for that month. In addition, the holder of a mining tenement is required to pay annual rent in respect of the tenement. In Western Australia there is a minimum annual expenditure requirement for prospecting and exploration licences and mining leases. Exemptions from the expenditure requirement can be obtained if certain conditions are satisfied.

Environmental laws relating to mining

Mining tenements will be granted with endorsements and conditions relating to protection of the environment. Exploration and mining operations may also require separate approval from the state, territory or federal environment minister, which may require completion of an environmental impact assessment (including a public consultation period) pursuant to applicable environmental protection legislation prior to commencement. Further, a works 'construction' approval and an operating licence under the relevant environmental protection legislation in the state or territory may also be required for certain mine processing or mining-related operations. Depending on the jurisdiction, additional approvals may be required for the removal of native vegetation within the tenement, and the taking and use of water for exploration and mining operations.

AngloGold Ashanti’s rights and permits

AngloGold Ashanti has been granted 21-year term mining leases with rights of renewal to all of its mining areas in Australia, including its proportionate share of joint venture operations and accordingly it has, together with its joint venture partners where applicable, the exclusive right to mine in those areas. Both the group and its joint venture partners are fully authorised to conduct operations in accordance with relevant laws and regulations. The mining leases and rights of renewal cover the current life-of-mine at AngloGold Ashanti’s operations in Australia.

At Sunrise Dam, one mining lease (M39/1116) covers the deposit and mine infrastructure (approximately 7,808 hectares) and another mining lease (M39/1117) covers the water extraction infrastructure used to supply the operation with water (approximately 1,768 hectares). Both leases are currently in good standing, with expiry dates in 2038.




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The Butcher Well joint venture has security of tenure for all current exploration licences and for the contiguous mining leases that covers its Mineral Resource. There are three mining leases: mining lease (M39/165) which covers 602.35 hectares with expiry date in 2030, mining lease (M39/166) which covers 990 hectares with expiry date in 2030 and mining lease (M39/230) which covers 446.4 hectares with expiry date in 2032.

At Tropicana, the deposit is situated upon a single mining lease (M39/1096) covering approximately 27,228 hectares, which is currently in good standing, with an expiry date in 2036.

AngloGold Ashanti Australia Limited is also conducting early stage exploration activities in Queensland under the Mineral Resources Act 1989 (QLD). AngloGold Ashanti holds 11 exploration permits covering 215,300 hectares. Each permit is granted with an initial term of five years, renewable for two further periods of not more than five years each.


AMERICAS

Argentina

General laws relating to mining and land ownership

Mining regime

The Argentinean Mining Code governs mining activity in the country. Special regimes exist for hydrocarbons and nuclear minerals. In the case of most minerals, the Argentinean Mining Code establishes that the owner of the land is not the owner of the mineral rights; these are held by the national or provincial governments (depending on the location of the minerals). The national or provincial government, as applicable, is required by the Argentinean Mining Code to grant whomever discovers a new mine title to the mining concession.

The Argentinean Mining Code regulates exploration permits as well as mining concessions, or exploitation rights. Exploration permits grant their holders exclusivity rights to any mineral discoveries, including those made by a third party within the exploration area covered by the permit. Exploration permits are limited in time and as to the extent of the exploration area, are subject to the payment of a single-time fee, and also require a minimum exploration work programme and schedule to keep the permit in force. Priority for receiving a mining concession is given to the registered discoverer of the mine, which holds the exploration permit. Once the application for a mine has been submitted, the applicant may commence works and must submit a legal survey of the units requested for the new mine. The application and the legal survey may be opposed by third parties following specific proceedings set forth in the Argentinean Mining Code. Approval and registration of the legal survey by the provincial mining authority constitutes formal title to the mining concession.

Holders of mining concessions must comply with three main conditions: payment of an annual fee, investment of a minimum amount of capital, and the carrying out of a reasonable level of exploitation. Failure to do so could lead to forfeiture of the mining concession, which would then revert back to the Province.

In addition to the Argentinean Mining Code, between 1993 and 1995, Argentina implemented several federal laws to offer foreign companies attractive incentives for exploration and mining in Argentina, the Mining Investment Law (Law No. 24, 196), as amended (the “Mining Investment Law”), and related legal provisions being the most important one. Such incentives include, among other matters, import duty exemptions, accelerated depreciation of fixed assets, a 3 percent cap on provincial royalties set at pit-head value on the mineral extracted, value added tax refunds for exploration-related expenses incurred by companies registered under the Mining Investment Law, and, subject to the filing of a feasibility study for the relevant mining project, a 30-year stability as to the tax burden on the project and the customs and foreign exchange regimes and duties. Cerro Vanguardia S.A. (“CVSA”) obtained its tax, customs and foreign exchange stability certificate in 1996.

Glacier Law

On 30 September 2010, the National Law on Minimum Requirements for the Protection of Glaciers (Law No. 26, 639) (the “Glacier Law”) was enacted in Argentina, banning new mining exploration and exploitation activities on glaciers and “peri-glacial” areas. The Glacier Law establishes a broad definition of “peri-glacial” areas that, together with glacial areas, must be surveyed by an existing national government agency specifically appointed to this end every five years. The area where the Cerro Vanguardia project is located does not include any glaciers or peri-glacial areas according to the inventory of glaciers which was published in June 2018.

Rural Land Law

On 27 December 2011, the Argentinean National Congress passed a law on the Regime for Protection of National Domain over Ownership, Possession or Tenure of Rural Land (Law No. 26, 737) (the “Rural Land Law”) which implemented a set of rules restricting the ownership of rural land by foreigners (including foreign individuals or any kind of legal entity controlled by foreign individuals or legal entities). The main restrictions are as follows: (i) foreigners cannot own in the aggregate more than



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15 percent of the entire rural land of Argentina, the same cap being applicable to each Province and Municipality; (ii) foreigners will not be allowed to purchase more than 1,000 hectares in the so-called “zona núcleo”, which comprises the main agricultural areas of central Argentina or an “equivalent” surface depending on the location of the land and its productive potential; and (iii) foreigners will not be allowed to buy land that contains, or is adjacent to, relevant and permanent water bodies (such as rivers and lakes). Although exploration permits and mining concessions are not the subject matter of the restrictions placed by the Rural Land Law, certain rights granted to foreign mining companies under the Argentinean Mining Code may be restricted by this new law. For example, the right that holders of mining concessions currently have to force the surface owner to sell the land to the holder of the mining concession might be restricted if the concession holder is a foreign individual or a legal entity controlled by foreigners.

Federal Mining Agreement

On 13 June 2017, the national government and the provinces in whose territories the main mining projects of Argentina are located, signed the New Federal Mining Agreement (“FMA”). The purpose of the FMA is, amongst other things, to increase provincial revenues from the mining industry by creating legal entities owned by provincial governments that would work in association with private mining companies. This scheme is not new in Argentina and it has been used by some provincial governments, amongst them the Santa Cruz Province (through Fomicruz), in which the Cerro Vanguardia project is located. The FMA also contemplates other forms of revenues such as the formation of special trusts to be funded by mining companies to finance education, health and other programmes. Additionally, the FMA included setting forth mining royalties up to three percent of the gross value of commercialised minerals, without any deductions other than VAT. As the FMA has not yet been converted into law by the National Congress, its provisions are neither binding nor enforceable.

In Argentina, the current regulatory regime of royalty payments is expected to change and several different options and payment thresholds have been discussed. In December 2012, the Santa Cruz Province changed the mining royalty from one percent to three percent calculated at pit-head value of the mineral extracted thus bringing it to the cap of the Mining Investment Law.

Foreign exchange and export rules

Foreign exchange controls

On 1 September 2019, by means of Executive Decree No. 609/2019 (the “Export Controls Decree”), the Argentinean national government reinstated foreign exchange and export controls. The Export Controls Decree and related regulations of the Central Bank of Argentina impose, among other measures, the obligation of Argentinean residents to transfer to Argentina and/or sell for Argentinean pesos in the Argentinean foreign exchange market (mercado de cambios) the countervalue (contravalor) from their exports of goods within a specified period. The export of goods is regulated by Communication “A” 6882 of the Argentinean Central Bank (as modified) which establishes the specific regulatory requirements to implement the measures adopted by the national government in this area. Prior approval of the Argentinean Central Bank is generally required to access the foreign exchange market for transactions relating to the outflow of funds, except in certain circumstances. Until 30 June 2022, prior approval from the Argentinean Central Bank is not required for payments in connection with the import of goods if certain conditions are satisfied.

CVSA had a cash balance equivalent to $139 million at 31 December 2021. During 2021, AngloGold Ashanti received offshore dividends in a total amount of $19 million (net of withholding taxes) paid in US dollars. Out of the $139 million (equivalent) cash balance, monies equivalent to $131 million are available to be paid to AngloGold Ashanti’s offshore and onshore investment holding companies in the form of declared dividends. Applications have been made to the Argentinean Central Bank to approve the purchase of US dollars in order to distribute an offshore dividend of $114 million to AngloGold Ashanti. While the approval is pending, the cash remains fully available for CVSA’s operational requirements.

Export duties

On 21 December 2019, the National Law on Social Solidarity and Productive Reactivation (Law No. 27, 541) (the “Solidarity Law”) was enacted. The Solidarity Law granted the national government power until 31 December 2021 to impose export duties which may not exceed certain caps. For example, the Solidarity Law provides that export duties on mining exports cannot exceed 8 percent of the taxable value or official FOB price. On 2 October 2020, the national government published Decree No. 785/2020 (the “Export Duties Decree”) which sets an export duty rate of 8 percent for certain goods, including doré bars and gold alloys, and revoked the provisions of Decree No. 793/2018 which had previously set the export duty at 12 percent ad valorem. While the Export Duties Decree was set to expire at the end of 2021, on 31 December 2021, the national government published Decree No. 908/2021, extending the deadline of export duties on certain goods, including doré bars and gold alloys, until 31 December 2023. It is uncertain whether the national government is empowered to extend such deadline beyond the date set forth in the Solidarity Law. These export duties, if not compensated with other tax reductions, affect the tax stability guarantee granted to CVSA in 1996 in light of the fact that at the time export duties were zero percent.

On 26 February 2019, the Argentinean tax and mining authorities published a resolution (RC 4428/2019) establishing an administrative procedure to be followed to obtain the reimbursement or compensation of federal taxes paid in excess of the total tax burden provided for by the applicable tax stability guarantee. CVSA initiated this new procedure to claim compensation for



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the export duties it paid in 2018 and 2019 as export duties are not contemplated by its tax stability guarantee. Prior to the publication of RC 4428/2019, CVSA had already submitted to the tax authorities claims for reimbursement of the export duties it paid from 2008 to 2015.

Pursuant to the new administrative procedure, the National Mining Secretariat issued favorable opinions regarding CVSA’s claims in respect of fiscal years 2018 and 2019, which amounted to approximately $3.5 million and $10.8 million, respectively, as of 31 December 2021. These claims are currently under review by the relevant customs authorities. On 14 July 2021, CVSA submitted its claim in respect of fiscal year 2020, which amounted to approximately $21.4 million as of 31 December 2021. The National Mining Secretary has not yet issued an opinion regarding this claim. CVSA expects to submit its claim in respect of fiscal year 2021 in due course.

Furthermore, CVSA has requested the tax authorities to apply the procedure provided for in RC 4428/2019 in respect of its historical claims for fiscal years 2008 to 2015 during which the imposition of export duties also exceeded CVSA’s total tax burden under its tax stability guarantee. However, these claims, which amounted to approximately $5.3 million as of 31 December 2021, are still being reviewed under the rules to challenge export duties instead of the new procedure provided for in RC 4428/2019. CVSA has appealed the application of those rules and a decision on this issue is pending.

In total, AngloGold Ashanti’s net export duty receivables (after discounting provisions) in Argentina amounted to $19 million as of 31 December 2021.

Environmental laws relating to mining

Any mining company wishing to commence or modify any mining-related activity, as defined by the Argentinean Mining Code, including prospecting, exploration, exploitation, development, preparation, extraction, and storage of mineral substances, as well as property abandonment or mine closure activity, is required to prepare and submit to the competent provincial environmental authority an Environmental Impact Assessment (“EIA”) prior to commencing the work. Each EIA is required to describe the nature of the proposed work, its potential risk to the environment, and the measures that will be taken to mitigate that risk. If accepted by the competent authority, the EIA is used as the basis to create a Declaration of Environmental Impact (“DEI”) to which the mining company is required to adhere during the mining-related activity at issue. The DEI is required to be updated at least on a biannual basis. Sanctions and penalties for non-compliance with the DEI are outlined in the Environmental Protection section of the Argentinean Mining Code, and may include warnings, fines, suspension of quality certifications, restoration of the environment, temporary or permanent closure of activities, and withdrawal of authorisation to conduct mining-related activities.

AngloGold Ashanti’s rights and permits

The mining concession holder of Cerro Vanguardia, the company’s operation in Argentina, is AngloGold Ashanti’s partner, Fomento Minero de Santa Cruz S.E. (“Fomicruz”), which is wholly owned by the Santa Cruz Province. On 27 December 1996, Fomicruz entered into a usufruct agreement whereby CVSA was granted an irrevocable right to exploit the Cerro Vanguardia deposit (encompassing an area of approximately 543 km2) for a 40-year period. The mining licence (402642/CV/97), which covers the full Mineral Reserve, expires on 26 December 2036. CVSA is a corporation incorporated in Argentina indirectly controlled by AngloGold Ashanti (92.5 percent), with Fomicruz as minority shareholder (7.5 percent). On 14 August 1996, CVSA obtained its tax, customs and foreign exchange stability certificate, which expires in 2026.

Brazil

General laws relating to mining and land ownership

The Brazilian Constitution of 1934 states that, for purposes of exploration and exploitation, deposits and other Mineral Resources constitute property separate from the soil and belong to the Federal Union. Exploration and exploitation of such Mineral Resources may take place only with the Federal Union’s concession and in such a way as to protect the national interest. Federal law sets out penal and administrative sanctions for conduct and activities deemed harmful to the environment.

In Brazil, the National Mining Agency (“ANM”) is the state body within the Mines and Energy Ministry (“MME”) that is responsible for: (i) the registration of mining titles, (ii) the grant of authorisations and concessions, (iii) the supervision of mining activities and mining titleholders, and (iv) the issuance of supplementary rules in relation to mining activity.

Under the current Brazilian Mining Code, there are two kinds of mines: (i) claimstake mines (minas manifestadas), for which rights were acquired before 1934 and exist independently of any mining licence or authorisation from the Federal Government and for which the Mineral Resources constitute property of the landowner, and (ii) granted mines, which are those that rely on grants from the Federal Government for mineral exploration or exploitation (pursuant to the Brazilian Constitution of 1988). AngloGold Ashanti’s operations in Brazil consist of both claimstake mines and granted mines.

Mining activities in granted mines must be performed in two defined stages: (i) exploration, which entails defining and evaluating the deposit and determining the feasibility of exploitation, and (ii) exploitation, which involves coordinating operations aimed at the industrial exploitation of the mineral deposit, from the extraction of useful minerals to their processing. Exploration



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authorisations issued by ANM are valid for one to three years. Extensions can be obtained if necessary, as long as it is justified. In contrast, exploitation rights, once granted, are valid for the lifetime of the deposit, provided the mining titleholder complies with all legal requirements. Pursuant to these requirements, for example, titleholders must (i) start work on mineral exploitation within six months from the date of publication of the Exploitation Concession, (ii) continue their mining activities until the mineral deposit has been exhausted, in accordance with the Economic Exploitation Plan (Plano de Aproveitamento Econômico) approved by ANM, and (iii) refrain from suspending mining activities without prior notice to ANM.

Tax laws relating to mining

During the exploration period, the mining titleholder has to pay an Annual Rate per Hectare (Taxa Annual por Hectare or “TAH”), subject to a maximum value set by law. In the exploitation period, regardless of the legal regime governing the project (whether claimstake or granted mines), the mining titleholder has to pay the Financial Compensation for Exploiting Mineral Resources (Compensação Financeira pela Exploração Mineral or “CFEM”). The CFEM which is 1.5 percent for gold is currently calculated based on revenues.

At the end of 2011 and the beginning of 2012, the states of Minas Gerais, Pará, Amapá and Mato Grosso do Sul each created a new “inspection and control” tax (duty) on extraction and exploration activities as well as on the use of Mineral Resource carried out in those states. In the state of Minas Gerais, gold ore and silver ore are exempted from the collection of this new duty. At the end of 2020, the state of Goiás created a new “inspection and control” tax (duty) on extraction and exploration activities carried out in this state, which currently still needs to be implemented. The constitutionality of these “inspection and control” taxes has been challenged by the National Industry Confederation and the matter is currently pending before the Supreme Court of Brazil.

Environmental laws relating to mining

Following the catastrophic failure of a tailings storage facility (“TSF”) at the Córrego do Feijão iron ore mine owned by Vale at Brumadinho in the state of Minas Gerais in Brazil in January 2019, executive, legislative and judiciary bodies, both at the federal and state levels, have generally increased scrutiny of mining operations in Brazil, and Argentinaof TSFs in particular, and have been considering, and in some cases have adopted, stricter laws and regulations applicable to the approval, licensing, construction, management, closure and decommissioning of TSFs in Brazil.

At the federal level, the ANM issued Resolution No. 13/19 in August 2019 (replacing its earlier Resolution No. 4/19) which adopted additional regulatory measures to ensure the stability of TSFs, in particular those built or heightened by the upstream method or by any method declared as “unknown”. Among other things, ANM Resolution No. 13/19 prohibits the upstream method for the construction or heightening of tailings dams throughout the national territory of Brazil. It further requires operators to cease all storage and disposal activities at TSFs (known as “deactivation” or “desativação”) constructed or heightened upstream or by an “unknown” method by 15 September 2021 as well as to decommission such TSFs by 15 September 2022 to 15 September 2027 (depending on the capacity volume). To comply with the terms of ANM Resolution No. 13/19, the Serra Grande tailings dam in the state of Goiás must be decommissioned by 15 September 2025. The Serra Grande mine completed the process of reinforcing the dam walls of its upstream TSF, deactivating the TSF and migrating to dry-stacking operations, each by the 15 September 2021 deadline.

Furthermore, Federal Law No. 14.066/20, adopted in October 2020, also imposes requirements on companies to decommission upstream TSFs, including the Serra Grande tailings dam, by 25 February 2022 (which date is earlier than required by ANM Resolution No. 13/19). However, Federal Law No. 14.066/20 does permit extensions of the compliance deadline, with the consent of the ANM based on the technical plan for decommissioning. Serra Grande has submitted timely requests to obtain an extension of the compliance deadline until 2025 in line with the timeline set forth in ANM Resolution No. 13/19 and presented its technical plan for decommissioning. Feedback from the ANM on these requests is currently awaited. With respect to downstream (or “centerline”) TSFs, Federal Law No. 14.066/20 requires companies, to the extent that communities are located in the self-rescue zone of those TSFs, to implement one of the following measures for such structures: either (i) the structure must be deactivated and decommissioned, (ii) the population must be relocated, with reparations for loss of cultural heritage, or (iii) reinforcement works that guarantee the effective stability of the structure must be carried out, by decision of the public authorities, taking into account the previous nature of the dam in relation to the occupation and technical-financial viability of the alternatives. Even if reinforcement works are completed, deactivation and decommissioning of those TSFs will be required at the end of the life of the mine. All of the TSFs operated by AngloGold Ashanti in Brazil have communities located in self-rescue zones.

AngloGold Ashanti is planning to transition to dry-stacking operations for tailings storage at each location in Brazil in the near term. Capital expenditures required in 2021 to implement this new technology amounted to approximately $140 million. Capital expenditures for this work during the period 2022-2025 are expected to be material but, based on preliminary estimates to date, AngloGold Ashanti anticipates that annual expenditures for each of these years will be significantly less than in 2021 and will decline over time. Neither ANM Resolution No. 13/19 nor Federal Law No. 14.066/20 requires removal of all tailings material in connection with the decommissioning of TSFs (a process known as “decharacterisation” or “descaracterização”).






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At the state level, the state legislator in the state of Minas Gerais adopted Law No. 23.291/19 in February 2019 which contained the state’s policy on TSF safety and should be implemented in conjunction with the equivalent federal policy. Among other things, Law No. 23.291/19 determines the criteria for licensing and inspecting TSF structures, prohibits TSFs constructed or heightened using the upstream method, establishes bond requirements and holds management liable for non-compliance with its provisions. The government of Minas Gerais adopted several decrees in furtherance of this legislation.

On 16 February 2022, the ANM issued Resolution No. 95/22, which was rectified on 18 February 2022 and became effective on 22 February 2022. ANM Resolution No. 95/22 effectively consolidates prior federal resolutions on TSFs, including ANM Resolution No. 13/19 and establishes new criteria for the operational management of TSF structures, changes the criteria related to the risk classification of TSF structures and emergency levels and imposes deadlines for compliance with obligations, in addition to setting new criteria for suspension, embargo and interdiction of TSF activities.

Further amendments to the regulatory requirements in Brazil governing such TSFs and related dams may be adopted in 2022.

AngloGold Ashanti’s rights and permits

At AGA Mineraçao, Cuiabá has a single mining concession (No. 000.323/1973) covering a total area of 3,662 hectares. In February 2022, two additional mining concessions for Cuiabá (Nos. 830.937/1979 and 831.027/1980) were published, which cover an additional area of 816.2 hectares. Lamego has a single mining concession (No. 932.710/2017) covering a total area of 1,622 hectares. Córrego do Sítio is hosted by five geographically contiguous mining concessions (i.e., Nos. 930.556/2000, 930.181/2008, 830.129/1982, 833.472/2003 and 830.943/1979) covering a total area of 6,017 hectares.

At Serra Grande, the company has interests in or agreements over 25,719.94 hectares in the Crixás greenstone belt, representing approximately 87 percent of the relevant tenements that correspond to all current exploration and mining activities. These have been held since 1987. The mining concessions include mining concession No. 002.286/1935 covering an area of 4,206.88 hectares, mining concession No. 960.658/1987 covering an area of 1,946.89 hectares, mining concession No. 860.746/2005 covering an area of 88.28 hectares, mining concession No. 862.103/1994 covering an area of 125.41 hectares and mining concession No. 804.366/1975 covering an area of 196.05 hectares.

All of the company’s mining concessions in Brazil are currently active, in good legal and operational standing, and free of liabilities and/or major obligations. Brazilian mining concessions remain valid up to the depletion of the Mineral Reserve and Mineral Resource pursuant to the Economic Exploitation Plan approved by the ANM and in accordance with the required environmental permits, and as a result do not have an explicit expiry date.


Colombia

General laws relating to mining and land ownership

General regime

The Colombian Constitution declares that the sub-soil and the non-renewable natural resources located within the Colombian territory are the property of the Colombian State. The underlying principle of Colombian mining legislation for the granting of mining concession contracts over free areas is first in time, first in law. Mining activities are regulated by the Colombian Mining Code, Act 685, 2001.

The filing of an exploration and exploitation proposal triggers a right of preference to obtain rights over the targeted area, provided it is available. Such area cannot exceed 10,000 hectares. Upon receipt of a proposal, the relevant government agency determines whether another proposal or contract already governs the area. If there are no pre-existing claims, the government agency grants the applicant a “free area”.

With respect to land ownership, a mining concession in Colombia does not grant the rights over the surface required to develop a mining project. Therefore, in order to develop a mining project, it is required to acquire and secure access to the land (soil). This can be achieved in several ways, such as (i) purchase of the land, (ii) a transit easement, (iii) a mining easement, and (iv) the special acquisition process or expropriation.

Concession contract

As the sub-soil and the non-renewable natural resources located within the Colombian territory are property of the Colombian State, the Colombian Mining Authority (Agencia Nacional de Minería) grants the authorisation to explore and exploit minerals through a concession contract.

Such concessions allow concessionaires to conduct the studies, works and facilities necessary to establish the existence of minerals and to organise their exploitation. Upon being awarded a mining concession, a company must take out an insurance policy to cover the costs associated with potential environmental damage as well as breaches of its mining obligations. It may



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then proceed with exploration activities. Once the exploration phase is complete, the concessionaire files a new plan regarding proposed works and facilities. With the award of the mining concession or tenement contract, there are specified timelines for the completion of the various phases of a mining project, e.g. exploration, construction, exploitation. The company must comply with these timelines unless performance is suspended, for example, due to force majeure or extensions or modifications to the timelines. A grant of force majeure is for one year and must be renewed on an annual basis. If the company does not comply with the specified timelines for the completion of the various phases of a mining project, the mining authority may revoke the company's concession contracts or mining licences. As a general matter, any company that wishes to obtain a renewal of its concession contract must be up to date in all its legal and contractual obligations and must present a new plan of works and facilities to be implemented after the contract is renewed.

PINES programme

In 2013, the national government instituted the PINES programme designed to aid promoting certain projects that are deemed to have a national interest. This designation provides for greater oversight from the national government. All of our three advanced exploration projects (La Colosa, Quebradona and Gramalote) were considered of national strategic interest. Currently, Quebradona and Gramalote remain in the PINES programme, but La Colosa was temporarily removed as such (until the force majeure is over).

Tax laws relating to mining

From the moment the concession contract is registered with the Mining Register, the concessionaire has several financial obligations, including the payment of (i) a surface fee during the exploration, construction and assembly stage and (ii) royalties.

Once exploration is complete and the mining infrastructure in place, the concessionaire must begin paying royalties to the Colombian government, consisting of a percentage of the primary product and sub-products being exploited. The percentage of the royalty depends on the regulation in force when the concession contract is registered. In the case of the Quebradona project, the deposit mainly consists of copper followed by gold and silver. There is a 5 percent royalty for copper on the production value at the mine’s or well’s edge (i.e. when extracted from the subsoil). In case of gold and silver, a royalty of 4 percent on the production valued at the mine’s or well’s edge (i.e. when extracted from the subsoil) was established.

Furthermore, Colombian law establishes that once the environmental licence is granted the concessionaire must invest 1 percent of the project’s value to benefit the basins covered by the environmental licence.

Environmental laws relating to mining

In order to obtain an authorisation to carry out a mining project, a company must prepare an Environmental Impact Study (“EIA”) for approval by the National Environmental Licensing Authority of Colombia (Autoridad Nacional de Licencias Ambientales or “ANLA”). Global environmental licences are granted for the entire life of the project and cover all phases: construction, assembly, operation, maintenance, dismantling, final restoration, abandonment and/or termination. Construction and assembly permits (Plan de Trabajos y Obras or “PTO”) are granted by the mining authority with jurisdiction over the project.

In Colombia, the mining authority has the discretion to declare the underlying concession void if the specific company which holds the concession breaches applicable environmental laws or regulations. If the mining authority were to exercise such discretion, a company whose concession was voided would be required to abandon its projects and all of its other existing mining concession contracts. Pending proposals for new mining concession contracts would also be cancelled and the company would be banned from doing business with the Colombian government for a period of five years. As a result, the company would be unable to conduct any mining exploration or development activities during such period. However, this would not affect other subsidiaries of the company operating in Colombia, if those concession contracts are held singularly or in concert with joint venture partners.

Mining activity is prohibited in national parks, regional parks, protected forest reserves, paramos (included in Act 1753, introduced in 2015) and wetlands, pursuant to the Ramsar Convention on Wetlands of International Importance.Some forest reserves are not “protected” but are set aside for active forestry purposes and the concessionaire must obtain a specific permit to partially and temporarily change the use of the soil before pursuing exploration activities. In addition, Resolution 187/2016, passed by the national government in late 2016, identifies areas that the Ministry of the Environment has determined to be “paramos” areas, or paramos transition areas. In these areas there are limitations on industrial or commercial work being performed, including mining. The regulation also specifies a process to determine what work, if any, can be performed in a paramos-designated area.

AngloGold Ashanti’s rights and permits

The La Colosa project managed by AngloGold Ashanti Colombia S.A.S. (“AGA Colombia”) remains in force majeure due to delays in granting environmental permits by national and local environmental authorities, thereby preventing AGA Colombia from undertaking further exploration activities. The current one-year grant of force majeure, during which time the specified timelines for completing the various phases of the mining project under the concession contract are suspended, will expire on



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22 June 2022. AGA Colombia applied for a mining area integration (consolidation) of its concession contracts related to La Colosa, in respect of which AGA Colombia was not in compliance with some of the specified timelines. The application for mining area integration (consolidation) was approved in March 2017, which remedied the non-compliance of each consolidated concession and reset the specified timelines. La Colosa now has a single integrated mining concession contract (EIG-163) which covers a total area of 9,210 hectares and expires on 28 February 2037.

Minera de Cobre Quebradona S.A.S. B.I.C. (“MCQ”) which manages the Quebradona project, obtained the integration of concession agreement 5881 in October 2016 and registered in December 2016. As a result, MCQ was granted the exclusive right to explore, take ownership and dispose of the mineral reserves (ore) extracted from the concession area. MCQ has the right to request an extension of up to 30 years, at least two years before the expiration of the operating period. This extension is not automatic, and the request must be filed with new technical, economic, environmental and social studies that demonstrate the status of the mineral resources. Concession contract 5881 initially covered a total area of 7,593 hectares, which was reduced to 4,881.89 hectares by the relevant mining authority (Secretaría de Minas de Antioquia) on 4 March 2022. It will expire in May 2037 and is currently in its sixth year of the integrated exploration phase. In September 2021, the permits for the construction and mining operation were approved by the relevant mining authority (Secretaría de Minas de Antioquia). On 4 November 2021, ANLA officially notified AngloGold Ashanti of its decision to ‘archive’ the environmental licence application relating to the Quebradona project. ANLA has neither denied nor granted the licence, but deemed that the information provided by AngloGold Ashanti is not enough for this authority to take a substantive decision. On 18 November 2021, AngloGold Ashanti appealed the archiving decision in order to secure further details on the specific additional information ANLA requires to make a determination.

The Gramalote project is organised as a joint operation between AngloGold Ashanti (through AGA Colombia Holdings Limited and AngloGold Ashanti Holdings plc) and B2Gold (through B2Gold Corp. and Graminvest Ventures Limited). Gramalote Limited, a company incorporated under the laws of British Virgin Islands which is the legal vehicle operating the joint operation, established a Colombian branch, Gramalote Colombia Limited (“GCL”), to carry out activities in Colombia and obtain the mining concession contracts necessary to develop the Gramalote project. The Gramalote joint operation has been operated by B2Gold since January 2020. Pursuant to an integrated mining concession contract No. 14292, GCL was granted the exclusive right to explore, take ownership and dispose of the mineral reserves (ore) extracted from the concession area (which covers a total area of 8,720.71 hectares and includes the Gramalote and Monjas anomalies) until April 2043. GCL has the right to request an extension of the operating period for up to 20 years, and, if exercised, such request to extend must include new technical, economic, environmental and social studies that demonstrate the status of the mineral resources. Currently, concession contract No. 14292 is in the phase of construction and assembly, pending resettlement of communities and the formal start of construction activities. GCL has received an environmental licence granted by ANLA and permits for the construction and mining operation which were approved by the relevant mining authority (Secretaría de Minas de Antioquia). GCL also holds an exploration concession No. 4894 (which covers a total area of 2,279.32 hectares and includes the Trinidad anomaly) which expires in 2044.

United States of America

Nevada

Mineral and surface rights in the United States are owned by private parties, state governments or the federal government. The majority of land utilised for precious metals exploration, development and mining in the western United States is owned by the federal government. The right to mine on such federal land in western states is governed by the U.S. General Mining Law of 1872, as amended (the “General Mining Law”). The General Mining Law allows mining claims (for mining and mining-related activities) on certain federal lands after proper compliance with claim location and maintenance requirements.

Mineral exploration activities in Nevada are also generally subject to applicable federal, state, and local permitting requirements, but the specific regulatory authorisations required for the company’s activities are based on the nature and location of the exploratory work. Many of the company’s Nevada operations are currently conducted under what is generally referred to under federal law as a notice-level operation subject to 43 CFR § 3809.21, while projects that are more advanced require additional permitting, including a Plan of Operations approved by the federal Bureau of Land Management (“BLM”). The State of Nevada Division of Environmental Protection’s Bureau of Mining Regulation and Reclamation (“BMRR”) also regulates mining within the state of Nevada. However, exploration projects of 5 acres or less, the scope of a notice-level operation under federal law, are exempt from BMRR regulation. Certain of the company’s early-stage exploration activities fall within this exemption.

In Nevada, the company’s wholly-owned subsidiaries hold a significant number of unpatented mining claims on federal lands. This includes approximately 1,600 unpatented claims (covering approximately 32,000 acres) that are now controlled by the company as a result of its acquisition of all of the outstanding stock of Corvus Gold Inc., which closed on 18 January 2022. The company is currently engaged in exploration activities on certain of its unpatented claims that include, but are not limited to, geological and spectral mapping, surface geochemical sampling, geophysical surveying and RC and/or diamond drilling. The main projects of the company in Nevada include the Silicon Project, the North Bullfrog Project and the Mother Lode Project.

In 2021, the state of Nevada enacted a new tax on Nevada gold and silver mines (in addition to the existing Nevada net proceeds of minerals tax, which is a 5 percent net tax). The new mining tax is a 0.75 to 1.1 percent excise tax based on a mine’s annual gross revenue.



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Minnesota

In Minnesota, AngloGold Ashanti Minnesota Inc. completed early-stage reconnaissance exploration activities to determine the potential for gold mineralisation in the northern counties of Minnesota. Based on the achieved results, the company terminated its exploration activities in the state. In early 2021, the company completed closing out its activities in Minnesota in accordance with state and company requirements.

Potential regulatory changes

Over the years, the U.S. Congress has considered a number of proposed amendments to the General Mining Law and other federal statutes relating to mining. Among the significant features contained in previously proposed legislation were a production royalty obligation, new and more stringent environmental standards and conditions, additional reclamation requirements, extensive new procedural steps which would likely result in extended permitting timelines and granting counties and other entities the ability to petition the U.S. Secretary of the Interior to make certain areas unavailable for the location of unpatented mining claims. In June 2020, former President Trump signed an executive order directing certain federal agencies to streamline the review processes associated with permitting of infrastructure and natural resources projects. Many of those policies have subsequently been rescinded by the Biden administration. While certain other executive orders may favorably affect the timing of our permit and project approvals, the impact is yet to be determined and remains uncertain.

AGA is currently unaware of any other new federal or state legislative or regulatory changes or rule-making that has been proposed or enacted that would adversely affect its current exploration programmes. If any requirements, standards or conditions were adopted in the future that imposed additional or new obligations or costs on AGA in connection with our exploration or extraction activities in the United States, the company’s operations in Nevada could be adversely affected.


MINE SITE REHABILITATION AND CLOSURE

Closure, an integral part of operations

All mining operations eventually cease. An integral aspect of operating AngloGold Ashanti’s mines is ongoing planning for and, where feasible, implementation of concurrent rehabilitation, together with an estimate of associated liability costs and the placement of adequate financial provisions and assurances to cover these costs.

All of AngloGold Ashanti’s operations are required to comply with its group closure planning standard, as well as applicable law and regulations, as their closure plans are reviewed and updated.
Closure planning is an activity that starts at the exploration and mine design stage and continues throughout the life of mine:
•New projects include a conceptual closure plan which anticipates future closure and associated rehabilitation activities and related costs.
•The closure plan is reviewed annually and updated every three years (annually in the final three years of a mine’s life) or whenever significant changes are made, taking into account operational conditions, planning and regulatory requirements, advances in international good practice (e.g., ICMM Mine Closure: Good Practice Guide) and technological developments.

For many of the older mines, closure planning and the evaluation of environmental liabilities is a complex process. This is particularly so in Brazil and Ghana, where many of the mining and other operations have taken place for more than fifty years. A particular challenge is concurrent rehabilitation, which is carried out while a mine is still operational. This practice serves to decrease the ultimate liability and reduces the final rehabilitation and closure work that must be undertaken, but has the potential to sterilise Mineral Reserve, which the company might wish to exploit should conditions, such as the gold price, change.

The company’s group closure standard stipulates that closure planning must be undertaken in consultation with the stakeholders. In the course of these consultations, different issues are raised which require site-specific solutions. Livelihood preservation and infrastructure are often key requirements. Communities also require information on the company’s rehabilitation of the landscape and on any lasting environmental impacts. Long-term remediation obligations, including decommissioning and restoration liabilities relating to past operations, are based on environmental management plans and compliance with current environmental and regulatory requirements.

Provisions for decommissioning and rehabilitation costs are made when there is a present obligation, it is probable that expenditure on decommissioning and rehabilitation work will be required and the cost can be estimated within a reasonable range of possible outcomes. These costs are based on currently available facts, technology expected to be available at the time of the rehabilitation, laws and regulations presently or virtually certain to be enacted and previous experience in the rehabilitation of mine sites.

Decommissioning costs and restoration costs are provided at the present value of the expenditures expected to settle the obligation, using estimated cash flows based on current prices. Estimates are discounted at a pre-tax rate that reflects current market assessments of the time value of money.




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Provisions for decommissioning and for restoration (excluding joint ventures and discontinued operations) increased from $674 million in 2020 to $688 million in 2021. This increase mainly relates to changes in discount rates based on global economic assumptions. The provisions were also impacted by changes in mine plans, resulting in a change in cash flows.


SUSTAINABILITY AND ENVIRONMENTAL, SOCIAL AND GOVERNANCE (“ESG”) MATTERS

AngloGold Ashanti’s sustainability approach is fundamental to how the company operates its business, as well as its ability to create long-term value for its shareholders, employees and social partners through safely and responsibly exploring, mining and marketing its products. Sustainability and safety are integrated into the company’s business and operations at all levels through various frameworks, standards and policies, and the company measures its performance in achieving its goals against its sustainability and other ESG metrics, as well as its engagement with stakeholders.

In mitigating the risks and impacts that are an inherent part of its business, AngloGold Ashanti is informed by an annual assessment of its key ESG issues. This process is aligned with guidance published by the International Integrated Reporting Council (“IIRC”), the Sustainability Accounting Standards Board (“SASB”), the Global Reporting Initiative (“GRI”) Standards and the Accountability AA1000 Stakeholder Management Standard. This assessment is annually reviewed by AngloGold Ashanti’s senior leadership and approved by the Social, Ethics and Sustainability Committee (the “SES Committee”).

AngloGold Ashanti’s board of directors, assisted by the SES Committee, has ultimate responsibility over environmental, safety, health and ethical matters and for the integration of sustainability objectives into AngloGold Ashanti’s business. This includes oversight of the company’s stakeholder engagement framework and structures, which apply to investors, employees, governments, suppliers and communities, at every stage of its business from exploration to mine closure. Group Corporate Affairs and Sustainability is responsible for development of management systems and supports the company’s general managers in the day-to-day implementation of its sustainability strategy.

AngloGold Ashanti maintains a set of policies and procedures to guide the company in acting as a responsible corporate citizen, including the Code of Business Principles and Ethics which sets requirements for the implementation of key corporate policies and guidelines and applies to all management and employees, and to maintain compliance with applicable environmental, health and safety (“EHS”) laws. In 2021, AngloGold Ashanti continued with the implementation of the Integrated Sustainability Information Management System (“iSIMS”), in order to improve internal reporting and better integrate and monitor sustainability activities with respect to its broader business. This common reporting system for all sustainability disciplines, from safety, health and security to community and environmental management, is expected to help provide timely information in each of these areas, and to facilitate transparency and decision-making in its processes and practices.

Significant EHS requirements and ESG risks and trends affecting the company’s mining and processing operations are described below.

EHS Regulatory Compliance

AngloGold Ashanti is subject to extensive EHS laws and regulations in the various jurisdictions in which the company operates. These requirements govern, among other things, extraction, use, conservation and discharge of water; air emissions (including dust control and greenhouse gases (“GHGs”)); regulatory and community reporting; clean-up of contamination; land use and conservation of protected areas; rehabilitation and closure of mined land; worker health and safety and community health; and the generation, transportation, storage and disposal of solid and hazardous wastes, such as reagents, radioactive materials, and mine tailings. Environmental laws and regulations applicable to the company’s operations, including the requirements contained in environmental permits, are generally becoming more restrictive.

Capital and operating costs to comply with EHS laws and regulations have been, and are expected to continue to be, significant to AngloGold Ashanti. In addition, AngloGold Ashanti could incur fines, penalties and other sanctions, environmental clean-up costs, and third-party claims for personal injury or property or natural resources damages; suffer reputational damage; and be required to install costly pollution control equipment or to modify or suspend operations, as a result of actual or alleged violations of, or liabilities under, EHS laws and regulations. Failure to comply with applicable EHS laws and regulations may also result in the suspension or revocation of permits and, in some jurisdictions, the right to mine a given concession. AngloGold Ashanti’s ability to obtain and maintain permits and other approvals and to successfully operate near host communities may be adversely impacted by real or perceived effects on the environment or human health and safety associated with AngloGold Ashanti’s or other mining companies’ activities. In addition, unknown environmental hazards may exist at the company’s properties which may have been caused by previous owners or operators.

Water Management

AngloGold Ashanti’s operations are heavily dependent upon access to substantial volumes of water for use in the mining and extractive processes and typically are subject to water-use permits or rights to extract water from certain natural sources that govern usage and require, among other things, that mining operations maintain certain water quality upon discharge. Water supply, quality and usage are areas of concern across all of the company’s operations, including with respect to the company’s



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mining operations in Ghana and Brazil, as well as its mine development project at Quebradona in Colombia, where there is significant potential environmental and social impact and a high level of stakeholder scrutiny. Any failure by the company to secure access to suitable water supplies, or achieve and maintain compliance with applicable requirements of the permits or licences, could result in curtailment or halting of production at the affected operations. Incidents of water pollution or shortage can, in certain cases, lead to community protest and ultimately to the withdrawal of community and government support for AngloGold Ashanti’s operations. A failure by the company to comply with water contamination related directives may result in further, more stringent, directives being issued against the company, which may, in some cases, result in a temporary or partial shutdown of some of the company’s operations.

Where feasible, the company operates a “closed loop” system which recycles the water used in its operations without discharging it to the environment. In some areas, however, such as Ghana and Brazil, high levels of rainfall and surface water runoff mean that a closed loop system is not feasible and that discharges, after water treatment where necessary, must take place.

Waste Management

During open-pit mining, large volumes of soil and/or rock (overburden) are mined to expose the ore body. Similarly, waste rock is mined during drilling and developing access to underground ore bodies. Overburden and waste rock typically contain sub-economic levels of gold and are deposited as large waste rock facilities. Mine tailings are the process waste generated once grinding and extraction of gold from the ore is completed in the milling process and are typically deposited as slurry in large tailing storage facilities (“TSFs”) specifically designed for this purpose.

The impact of dust generation, breach, leak, or other failure of a waste rock facility or TSF, including any associated dam, can be significant, and the company therefore monitors such facilities closely in accordance with the company’s internal standards, independent review, national regulatory requirements, industry standards and commitments made to local communities. The occasional well-publicised failure of a third-party TSF and the potential impact of such failure also mean that these facilities are generally tightly regulated. An incident at the company’s operations could result, among other things, in enforcement, obligations to remediate environmental contamination, negative press coverage, and claims for property or natural resources damages and personal injury by adjacent communities. Incidents at other mining companies’ operations could result in governmental action to tighten regulatory requirements and restrict certain mining activities, in particular with respect to TSFs, also in respect of other mine operators in that region.

For example, following the catastrophic failure of a TSF at the Córrego do Feijão iron ore mine owned by Vale at Brumadinho in the state of Minas Gerais in Brazil in January 2019, tailings were discharged into the mine’s administrative area and part of the local community, reportedly resulting in death or injury to hundreds of people. As a result of this incident, there has been considerably increased regulatory scrutiny in Brazil and other areas on mining operations generally, and the requirements applicable to the approval, licensing, construction, management, closure and decommissioning of TSFs have generally become far more stringent. For further information on the regulatory framework governing TSFs in Brazil, see “Item 4B: Business Overview—The Regulatory Environment Enabling AngloGold Ashanti to Mine—Americas—Brazil”.

In addition, a new Global Industry Standard on Tailings Management (“GISTM”) was established in August 2020 by a panel comprised of industry and non-governmental organisation (“NGO”) experts, the compliance costs of which are not expected to be material to AngloGold Ashanti. AngloGold Ashanti has committed to comply with the GISTM at all of its TSFs by August 2025.

Groundwater Impacts and Environmental Remediation

As AngloGold Ashanti or its predecessors have a long history of mining operations in certain regions, issues may arise regarding historical, as well as potential future, environmental or health impacts in those areas, for which AGA, as the current owner/operator, may be legally responsible. For example, AngloGold Ashanti has identified groundwater contamination plumes at certain of its operations. Numerous scientific, technical and legal studies have been undertaken to assist in determining the magnitude of the impact and to find sustainable remediation solutions. Based on those studies as well as discussion with regulators, the company has taken steps, including monitored natural attenuation and phyto-technologies, to address soil and groundwater contamination.

Subject to the completion of site-specific trials and potential technologies being confirmed as viable remediation techniques, no reliable estimate can be made at this time for the obligation. Should these obligations be significant, this could have a material adverse impact upon AngloGold Ashanti’s results and its financial condition.

Climate Change and GHG Regulation

At AngloGold Ashanti, climate change is a board of directors-level governance issue, overseen by the SES Committee and the Audit and Risk Committee. The Climate Change Working Group, established in 2020 and comprised of functional leaders from across the business, reports to the SES Committee. AngloGold Ashanti’s Climate Change Strategy, which was approved by the board of directors in November 2021, seeks to embed the management of physical, regulatory and transition climate change-related risks, as well as climate change-related opportunities, into the company’s strategic and operational planning processes.



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In 2021, AngloGold Ashanti committed to the International Council on Mining & Metals (“ICMM”) target of achieving net zero Scope 1 and Scope 2 GHG emissions by 2050, and, in partnership with value chain partners, to set Scope 3 GHG reduction targets, if not by the end of 2023, as soon as possible thereafter.

In December 2015, certain members of the international community negotiated a treaty at the Conference of the Parties of the UN Framework Convention on Climate Change in Paris (the “Paris Agreement”). The Paris Agreement, which came into force on 4 November 2016, requires developed countries to set targets for emissions reductions. As a result, measures designed to limit or reduce GHG emissions, both mandatory and voluntary, have been, and are expected to be, implemented at national or regional levels in various countries.

New regulatory requirements, or changes required to effectively transition to a low-carbon economy, could require AngloGold Ashanti to reduce its direct GHG emissions or energy use, change its fuel mix or incur significant costs for GHG emissions permits or taxes, including for those costs or taxes passed on by electricity utilities which supply the company’s operations. AngloGold Ashanti could also incur significant costs associated with capital equipment, GHG monitoring and reporting and other obligations to comply with applicable requirements. The most likely source of these obligations is through state-level implementation of new emissions or financial obligations pursuant to evolving climate change regulatory regimes.

For example, in 2010, Brazil launched the National Climate Change Policy, which established a voluntary national GHG reduction target of 36.1 percent to 38.9 percent below the projected emissions in 2020 for “business as usual”. The policy required the development of sector-specific plans in order to meet the target and provided for a Brazilian GHG trading scheme, which is yet to be designed. While Brazil is not yet requiring mandatory GHG emissions reporting at the national level, some state environmental agencies have requested companies to voluntarily submit GHG emissions management plans. However, the states of Goiás and Minas Gerais (in which AngloGold Ashanti operates) do not currently require GHG emissions management plans for mining projects. In 2015, Brazil announced, in connection with its commitments under the Paris Agreement, economy-wide absolute mitigation targets providing for a 37 percent reduction in GHG emissions by 2025, as compared to 2005, and a goal to reduction emissions by 43 percent by 2030 compared to 2005 levels.

In addition, in Australia, the Safeguard Mechanism (Rule 2015), through the National Greenhouse and Energy Reporting (“NGER”) scheme, provides a framework for Australia’s largest emitters to measure, report and manage their emissions. The Safeguard Mechanism applies to facilities with Scope 1 covered emissions of more than 100,000 tonnes of CO2e per fiscal year. During the 2018/19 fiscal year, Tropicana’s emissions were within its authorised threshold and Sunrise Dam was required to purchase offsets for emissions that were 0.8 percent above its safeguard threshold, the cost of which was immaterial. Two amendments to the Safeguard Mechanism (Rule 2015) enacted in March 2019 and May 2020 allowed for the application of transitional calculated baselines using estimated CO2-e emissions intensities. Based on the production and emissions forecasts, the Australian mining operations applied to use transitional calculated baselines in 2020 for Sunrise Dam and Tropicana, which were approved by the Clean Energy Regulator effective 1 July 2019 to 30 June 2022 for both operations. Thereafter, there is a requirement to apply for production-adjusted baselines. Accordingly, assuming the company’s operations (and resultant emissions) are consistent with the forecasts in the current business plan, the Australian mining operations should not be required to purchase emissions offsets for the business to cover the period prior to June 2022. In any event, the cost of such offsets, if ultimately required to be purchased, including due to a change in the operations under the business plan prior to June 2022, are not anticipated to be material to the company’s business.

In addition to more stringent requirements and commitments, AngloGold Ashanti’s operations are subject to a number of physical risks from climate change, such as changes in rainfall rates or patterns resulting in floods or droughts, reduced water availability, higher temperatures and extreme weather events. Such events or conditions, particularly including flooding or inadequate water supplies, could disrupt mining and transport operations, mineral processing and rehabilitation efforts, create resource or energy shortages or damage the company’s property or equipment and increase health and safety risks on site. In consultation with external consultants, physical climate risk assessments were undertaken for all operations using current climate models for the business and various decarbonisation scenarios and climate adaptation plans were outlined. These adaptation plans continued to be further refined in 2021.

Occupational Safety and Health

AngloGold Ashanti is subject to a variety of laws and regulations in each of the jurisdictions where the company operates that are designed to protect and improve the safety and health of employees. In some of the jurisdictions in which AngloGold Ashanti operates, the government enforces compulsory shutdowns of operations to enable investigations into the cause of accidents at those operations.

Safety remains a priority for AngloGold Ashanti and a focus of AngloGold Ashanti’s long-term sustainability approach, as well as the company’s continuing efforts to manage the risks inherent to its operations, to model critical controls and to strengthen safety protocols and preventative measures. Although AngloGold Ashanti has made significant strides in improving safety in recent years, sadly, the company lost two colleagues during 2021, and some of its operations recorded a year-on-year regression in the all injury frequency rate.




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AngloGold Ashanti’s Group Safety Strategy, which was revised in 2021 and is expected to be implemented by 2024, seeks to integrate operational risk management and key performance indicators at all levels of the organisation and maintain alignment with global safety standards. The SES Committee oversees the implementation of the Group Safety Strategy. All operations, other than Obuasi, have been certified to ISO 45001:2018, which has replaced the OHSAS 18001:2007 series. Obuasi is scheduled to be certified in 2022.

Community Health and Tropical Diseases

AngloGold Ashanti is also subject to health and safety regulations relating to occupational disease. The primary areas of focus in respect of occupational health of employees within the company’s operations are noise-induced hearing loss (“NIHL”) and occupational lung diseases (“OLD”). OLD includes occupational tuberculosis and silicosis in individuals exposed to silica dust. Silicosis has been particularly prevalent in South Africa and has also arisen at the company’s Africa and Brazilian operations, albeit to a far lesser extent. AngloGold Ashanti provides occupational health services to its employees at its occupational health centres, clinics, and through outsourced service centres. The company continues to improve preventative occupational hygiene initiatives, such as implementing various control measures to prevent hazardous exposures, and providing employees with Personal Protective Equipment.

In 2019, the Johannesburg High Court approved the settlement of existing silicosis and tuberculosis class actions against AngloGold Ashanti and other gold mining companies in South Africa. The recent sale of the company’s South African operating assets and liabilities did not include the silicosis or tuberculosis settlement obligations relating to South African employees, which were retained by AngloGold Ashanti. For further information, see “Item 18: Financial Statements—Note 1.2—Accounting Policies—Significant Accounting Judgements and Estimates—Provision for silicosis”.

In addition to OLD, HIV and AIDS and associated diseases remain major health care challenges faced by AngloGold Ashanti’s Africa region operations. AngloGold Ashanti continues to implement programmes to help those infected with HIV and prevent new infections from spreading.

Malaria and other tropical diseases also pose health risks at all of the company’s operations in Central, West and East Africa where such diseases may assume epidemic proportions because of ineffective national control programmes. Malaria is a major cause of death in young children and pregnant women and also gives rise to deaths and absenteeism in adults. All affected company operations have malaria control programmes in place. The Ghana Obuasi malaria control programme continues to roll-out indoor residual spraying programme in 16 districts of Ghana in partnership with the Global Fund and the Ghana Department of Health.

In 2021, the COVID-19 pandemic continued to put strain on businesses and socio-economic systems across the globe, including as new variants of concern emerged and drove considerable resurgences in cases throughout the year. AngloGold Ashanti continued to direct significant resources to pandemic controls within the company as it worked to limit the spread of the virus whilst keeping operations running. The pressure on labour supply, travel restrictions limiting employee mobility and the mental health implications of the ongoing pandemic all also have potential implications for safety training and safe operations. This required AngloGold Ashanti, as well as other businesses, to take extraordinary measures to protect the health and well-being of its employees, to maintain its operations and to contribute to global control efforts. The availability of safe and effective vaccines, albeit at varying scales in the company’s operating countries, provided an additional layer of protection, especially against severe forms of disease, hospitalisation and death. The company endeavoured to provide prompt access to approved and available vaccines for all workers, especially employees considered to be at high risk as well as employees with critical skills. Given the interdependence of employee and community health, the company’s focus remained on implementing measures supporting the health of its employees and local communities.

The emergence of COVID-19 however also assisted to better integrate broad health risk management beyond occupational health into the overall business strategy, to contribute to productivity as well as the social licence to operate and to improve various prevention and risk management protocols in place to address the potential risk of an epidemic or pandemic after its experience with Ebola in Guinea in 2014 and 2015.

This pandemic also highlighted other associated risks and emphasised the importance of optimising mental health, minimising non-communicable diseases associated with lifestyle as well as the need for systematic contribution to health system strengthening, local skill development and overall community development in the jurisdictions in which the company operates. Such risks impair the health of workers and negatively affect productivity and profitability as a result of workers’ diminished focus or skill, absenteeism, treatment costs and allocated resources. As part of AngloGold Ashanti’s continuing efforts, the company recently adopted a set of updated health standards based on identified major health hazards or risks which include gender, cultural and other applicable diversity considerations for risk management and controls.

Diversity and Inclusion (“D&I”)

With more than 30,000 employees (including contractor employees) on four continents, AngloGold Ashanti believes that having a diverse and inclusive workforce is important to continuing to attract talent in order to maintain competitiveness and the long-term



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sustainability of its business. In addition, the company strives to have a workforce that represents the societies in which AngloGold Ashanti operates in connection with maintaining its social licence to operate.

AngloGold Ashanti’s D&I approach is aligned to the United Nation Sustainable Development Goals (“UNSDGs”) (SDG 5, 8 and 10) and the United Nations Global Compact (“UNGC”). The company has developed a Diversity & Inclusion Framework, which aims to foster the empowerment of all staff, irrespective of race, gender, ethnicity, religion and sexual orientation and has established specific priorities and actions for the next two to five years to foster the inclusion of D&I objectives in its processes. Leadership teams are responsible for meeting defined diversity targets. In 2021, regional assessments were conducted to better understand the specific issues associated with increased D&I at mine sites.

Human Rights and Indigenous Peoples

In its commitment to respecting and promoting human rights, AngloGold Ashanti supports the United Nations Guiding Principles for Business and Human Rights (“UNGP”) and other international initiatives, including the UNGC and the Voluntary Principles on Security and Human Rights (“VPSHR”). The VPSHR, which seeks to balance safety and security needs against respect for human rights and fundamental freedoms, were developed through multi-stakeholder participation between governments, extractive industry members and NGOs. Community and security related matters, including with respect to illegal and artisanal and small-scale mining and related intrusions into the company’s operational areas, are addressed at board of directors-level by the SES Committee. AngloGold Ashanti’s internal Human Rights Framework includes numerous policies, management standards and guidance documents which apply to all of its employees, contractors and suppliers and require reporting of, and redress for, human rights violations and related allegations.

The company is aligned with the ICMM Position Statement on Indigenous Peoples and the International Finance Corporation’s Performance Standard 7 on Indigenous Peoples and other international standards and treaties in the area of Indigenous Peoples’ rights.







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ANGLOGOLD ASHANTI GLOBAL OPERATIONS: 2021

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Operations, projects and exploration programmes
AMERICASAFRICA REGIONAUSTRALIA
1 Argentina5 Guinea9 Australia
Cerro Vanguardia (92.5%)Siguiri (85%)Sunrise Dam
2 Brazil6 GhanaButcher Well (70%)
Serra GrandeIduapriemTropicana (70%)
AGA Mineração
Obuasi(3)
3 Colombia7 Democratic Republic of the Congo (DRC)
Gramalote (50%)(1)
Kibali (45%)(4)
La Colosa8 Tanzania
QuebradonaGeita
4USA
Silicon(2)

Percentages indicate the ownership interest of AngloGold Ashanti. All operations are 100%-owned unless otherwise indicated.
(1)     Gramalote is managed by B2Gold.
(2)    As at 31 December 2021, a maiden Mineral Resource was declared for Silicon.
(3)    Obuasi's redevelopment project began in 2019.
(4)    Kibali is operated by Barrick Gold Corporation (Barrick).




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OPERATING PERFORMANCE

Group description

AngloGold Ashanti, an independent, global gold mining company with a diverse, high-quality portfolio of operations, projects and exploration activities and is headquartered in Johannesburg, South Africa.

In 2021, our portfolio of ten operations in eight countries, includes long-life operating assets with differing ore body types located in key gold-producing regions around the world. These operating assets were supported by three greenfields projects in Colombia and a focused global exploration programme, including exploration in the United States.

Our operations and projects are grouped into the following regions: Africa, Americas and Australia.

On 12 February 2020, the Company announced that it had reached an agreement with Harmony to sell all its remaining South African producing assets and related liabilities. The sale closed on 30 September 2020. On 10 November 2020, the Company announced that it had completed the sale of its interest in the Morila mine in Mali and on 30 December 2020, the Company announced that it had completed the sale of its interest in the Sadiola Mine in Mali.

AngloGold Ashanti’s operations and joint arrangements employed, on average, 30,561 people (including contractors) in 2021 (2020: 36,952).

Performance

In 2021, AngloGold Ashanti produced attributable 2.472 million ounces (Moz) of gold (2020: 2.806Moz, excluding the 241,000oz produced by former South African operations), as well as 3.5Moz of silver and 173 tonnes of sulphuric acid as by-products.

Production of 2.472Moz of gold was achieved at a cost of sales of $2.9 billion and an all-in sustaining cost of $1,441/oz for subsidiaries and $856/oz for equity accounted joint venture operations compared to a production of 2.806Moz in 2020 at a cost of sales of $2.7 billion and all-in sustaining cost of $1,072/oz for subsidiaries and $810/oz for equity accounted joint venture operations.

Gold
The AngloGold Ashanti Mineral Reserve reduced from 29.5Moz in December 2020 to 28.1Moz in December 2021. This annual net decrease of 1.4Moz (5%) includes depletion of 2.6Moz and reductions due to other factors of 2.9Moz. The Mineral Reserve was estimated using a gold price of $1,200/oz, unless otherwise stated (2020: $1,200/oz). Table 2ato Paragraph (b) prepared in accordance with Regulation S-K 1300 (§ 229.1303 (Item 1303)). See "Item 4D Property, Plants and Equipment - Mineral Resource and Mineral Reserve Summary Disclosure".

Copper
The AngloGold Ashanti Mineral Reserve increased from 1.41Mt (3,105Mlb) in December 2020 to 1.47Mt (3,250Mlb) in December 2021. This gross annual increase of 0.07Mt (145Mlb or 5%) is due to methodology changes. The Mineral Reserve was estimated at a copper price of $2.90/lb (2020: $2.65/lb). Table 2b to Paragraph (b) prepared in accordance with Regulation S-K 1300 (§ 229.1303 (Item 1303)). See "Item 4D Property, Plants and Equipment - Mineral Resource and Mineral Reserve Summary Disclosure".

Capital expenditure, including equity accounted joint ventures, in 2021 amounted to $1,100 million (2020: $757 million).

Safety

There were regrettably two fatalities across the group’s operations in 2021. The all injury frequency rate was 2.13 per million hours worked compared to 1.68 in 2020 (excluding the former South African assets).




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AFRICA REGION
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Africa is currently home to five of our operations, with one – Kibali – managed by Barrick Gold Corporation. These operations, which contributed 57% or 1.4Moz to total annual group production in 2021, are in Ghana (Iduapriem and Obuasi), Guinea (Siguiri), Tanzania (Geita) and the DRC (Kibali).
Attributable gold production
(000oz)		Average number of  
employees  
Subsidiary operations
Ghana
Iduapriem202 1,639 
Obuasi108 3,914 
Guinea
Attr. Siguiri 85%258 3,369 
Tanzania
Geita486 5,884 
Joint venture operations
Democratic Republic of the Congo
Attr. Kibali 45%365 2,454 



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Africa Region - Key Statistics
Unit202120202019
Subsidiary operations
Tonnes treated/milledMt21.2 20.5 19.1 
Pay limitoz/t0.035 0.034 0.039 
g/t1.193 1.160 1.330 
Recovered gradeoz/t0.045 0.052 0.060 
g/t1.54 1.77 1.77 
Gold production (a) (attributable)
000oz1,054 1,143 1,094 
Cost of sales$m1,300 1,232 1,173 
Total cash costs (1)
$/oz991 797 801 
All-in sustaining costs (1)
$/oz1,264 975 947 
Capital expenditure$m434 345 359 
Safety
Number of fatalities120
AIFRPer million hours worked0.61 0.55 0.62 
People
Average no of employees: Total14,806 14,496 12,847 
Permanent employees5,619 5,433 4,940 
Contractors9,187 9,063 7,907 

(a) Includes Obuasi gold production in 2020, capitalised as part of the project development.

Unit202120202019
Joint venture operations
Tonnes treated/milledMt3.5 3.4 7.5 
Pay limitoz/t0.048 0.048 0.037 
g/t1.652 1.640 1.255 
Recovered gradeoz/t0.095 0.096 0.060 
g/t3.25 3.29 1.85 
Gold production (attributable)000oz365 364 445 
Cost of sales$m350 340 428 
Total cash costs (1)
$/oz647 629 657 
All-in sustaining costs (1)
$/oz856 810 767 
Capital expenditure$m72 52 51 
Safety
Number of fatalities(2)
n/an/a0
AIFR (2)
Per million hours workedn/an/a0.65 
People
Average no of employees: Total2,454 2,333 2,939 
Permanent employees860 824 1,191 
Contractors1,594 1,509 1,748 

(1)Total cash costs and all-in sustaining costs are non-GAAP measures. For further information on these non-GAAP measures, see “Item 5A: Operating Results-Non-GAAP analysis”.
(2)Excludes Kibali which is managed by Barrick and not AngloGold Ashanti. For years prior to 2020, amounts are inclusive of amounts pertaining to Sadiola, which was sold in 2020.




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Performance summary

Production for the year was 1.4Moz (2020: 1.6Moz), as the region executes the reinvestment programme and various growth projects.

Higher all-in sustaining cost of was achieved because of lower production.

Capital expenditure for the region was $506m (2020: $397m).

Safety performance deteriorated with one occupational fatality and an all injury frequency rate of 0.61 per million hours worked versus 0.55 in 2020.

Community investment of $10.5m (2020: $12.9m).(1)
(1) Includes joint ventures

All Africa operations certified in terms of International Cyanide Management Code, ISO 45001 (health and safety) and ISO 14001, with the exception of Obuasi where work for its recertification in terms of the Cyanide Code and ISO 14001 is currently in progress.

Solid performances at Geita, Siguiri and Kibali supported production and helped to offset stalled production at Obuasi where underground operations were suspended following a fatal incident in May 2021.

The increase in the regional all-in sustaining unit cost was a result of higher underground mining costs at Geita, because of the step up in ore and waste volumes and higher sustaining capital spend for waste stripping at Teberebie Cut 2 at Iduapriem. Also, higher royalty costs were seen across the operations due to the increase in the gold price received.

Capital expenditure was largely spent on underground Ore Reserve development projects, which continued at Geita, and pre-stripping at Iduapriem (Teberebie Cut 2) to provide access to orebodies identified for future gold extraction. The balance of sustaining capital investment was used for capitalised exploration and sustaining projects to improve asset integrity and realise business improvements across the operations, to ensure safe and sustainable growth and production.

At Geita, substantial progress was made opening up the Nyamulilima open pit, commencing production and remaining on track to achieve full planned operation by the end of 2022. Another notable achievement was the development of the Geita Hill underground mine for which a maiden Mineral Reserve has been declared and where steady state operations are also expected by the end of 2022.

Kibali’s metallurgical plant performed well overall. The increased tonnages processed during 2021 were driven by the greater volumes of open-pit tonnes mined compared to 2020 and yielded 812,152oz. Kibali’s Mineral Reserve net of depletion is expected to increase for the third successive year in 2022, maintaining its plus 10-year life as a Tier One asset.

The grind and recovery optimisation continued at Siguiri’s combination plant during the year, and treatment of carbonaceous material started. The Block 2 project yielded its first ore once the haul road was completed between the remote deposit and the plant at Block 1.

The implementation of an initial three-year re-investment plan to revise and extend Iduapriem’s mine life is underway. This plan involves accelerated waste stripping from the Block 7 and 8 pit, initially from Teberebie Cut 2. Longer term options are to strip waste from Cuts 5 and 6. The re-investment plan includes increasing TSF capacity to match the revised mine plan.

Obuasi update
Underground mining activities resumed in the fourth quarter of 2021, after they were voluntary suspended in May 2021 immediately following the failure of a sill pillar. Towards the end of the first quarter of 2022, the restart plan was tracking to schedule. Construction of the major infrastructure to support the ramp up to 4,000tpd was complete by year end, with the paste-fill plant and GCVS vent fans commissioned. The KRS hoisting system is in service and the ramp up to 4,000tpd is targeted for the end of the first half of 2022. Major infrastructure works are required to support the ramp-up to 5,000tpd. This will include the upgrade of the KMS shaft and KMV shaft as well as the development of a new ventilation shaft. We will continue the Ore Reserve development to access Block 11. Phase 3 construction is expected to be completed at the end of 2023 when the mining rate is planned to lift to 5,000tpd.



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THE AMERICAS
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The Americas hosts three of our operations – one in Argentina and two in Brazil – as well as two greenfields projects in Colombia and a significant new greenfields development in Nevada in the United States.
Attributable gold production
(000oz)		Average number of  
employees  
Operations
  1.     Argentina
Cerro Vanguardia (Attr. 92.5%)145 1,850 
  2.    Brazil
AGA Mineração331 6,142 
Serra Grande83 1,980 




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Americas - Key Statistics
Unit202120202019
Operation
Tonnes treated/milledMt7.8 7.5 7.3 
Pay limitoz/t0.10 0.07 0.11 
g/t3.49 2.46 3.79 
Recovered gradeoz/t0.066 0.081 0.089 
g/t2.27 2.77 3.04 
Gold production (Attributable)000oz559 649 710 
Silver (attributable)Moz3.2 3.3 3.4 
Cost of sales$m822 764 822 
Total cash costs (1)
$/oz921 721 736 
All-in sustaining costs (1)
$/oz1,587 1,003 1,032 
Capital expenditure (2)
$m398 217 195 
Safety
Number of fatalities100
AIFRPer million hours worked3.55 3.68 3.50 
People
Average no of employees: Total9,972 8,789 8,114 
Permanent employees6,452 6,158 5,869 
Contractors3,520 2,631 2,245 

(1)Total cash costs and all-in sustaining costs are non-GAAP measures. For further information on these non-GAAP measures, see “Item 5A: Operating Results-Non-GAAP analysis”.
(2)100 percent, (not attributable) and includes Colombia.

Performance summary

Production for the year was 559,000oz (2020: 649,000oz), achieved at a total cash cost of $921/oz (2020: $721/oz).

One occupational fatality in Brazil, at Serra Grade, in February 2021. The all injury frequency rate improved to 3.55 (2020: 3.68)
Community investment of $5.8m (2020: $6.2m).

All American operations certified in terms of International Cyanide Management Code, ISO 45000 (health and safety) and ISO 14001.

Capital expenditure of $398m (2020: $217m).

The year in review was a challenging one for the Americas operations, which faced significant headwinds from COVID-19.

There were, however, improvements in the second half of the year with production up 18% versus the first half. Sites faced a range of first- and second-order consequences of the pandemic, with Brazil experiencing significant absenteeism during the first half of the year, and Argentina’s production limited due to a range of travel and shift rotation restrictions in response to various waves of the outbreak.

In Brazil, at both AGA Mineração and Serra Grande, plant throughput was scaled back during the second half to ensure tailings deposition remained within legally mandated limits while the conversion programme for the conversion of TSFs to dry-stacking facilities, was fast tracked. At AGA Mineração, operating challenges at Córrego do Sítio were partly offset by improvement at the larger Cuiabá mine, where tonnes of ore treated increased year-on-year.

At Cerro Vanguardia, where silver revenues are offset against gold cash costs, the negative impact of reduced capacity due to COVID-19 restrictions was partly offset by continued weakness in the Argentinean peso against the US dollar and higher volumes of silver produced and sold.

In Colombia, the Quebradona Project remains an attractive long-life, high-grade, low-cost project which will add copper production to our portfolio. At Gramalote, a joint operation with B2Gold, the final feasibility study for the project is expected to be delivered during the course of 2022. Colombia’s environmental agency (ANLA) took the decision to archive our environmental license application relating to the Quebradona project. AngloGold Ashanti has filed an appeal seeking to secure further details on the specific additional information the agency would require in order to be able to prepare a license submission that would meet the agency’s requirements.




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A thorough review and analysis of the items and further information identified as part of ANLA’s archiving decision is being undertaken, with the aim of preparing and submitting a new environmental licence request for Quebradona in due course. This process will result in a delay of the project.

Nevada strategy
AngloGold Ashanti completed its acquisition of Corvus on 18 January 2022, consolidating much of the largest new gold district in Nevada. This provides AngloGold Ashanti the opportunity to establish, in the medium and longer term, a meaningful, low-cost, long-life production base in a premier mining jurisdiction. As the Company has previously indicated, the consolidation of the Beatty District has the potential for significant synergies from economies of scale and integrated infrastructure, including water rights, adjacent concessions and processing facilities. The combined asset base also allows for unified engagement with federal, state and local stakeholders to advance and achieve shared sustainability goals and other district benefits, such as opportunities to design projects incorporating renewable energy, as well as develop conservation and other local projects in conjunction with the Beatty community.

Following the completion of the Corvus transaction, water rights that will form an important part of the district’s development, have transferred to AngloGold Ashanti. The Company’s conceptual development plan for the district envisions the North Bullfrog deposit – previously owned by Corvus – being developed first, with initial production expected in the next three years. This is expected to be followed by AngloGold Ashanti’s Silicon deposit – which has declared a maiden 3.4Moz Mineral Resource – and then potentially the Merlin target near Silicon. The timing for mining activities at the Mother Lode deposit is expected to start only in the long term after the Company completes additional study work. This initial development schedule is expected to be supplemented by various other prospective deposits being explored across the tenement. It is expected that deposits will be developed in a modular fashion, mined initially as open pits and processed using heap leach and gravity recovery where applicable. This pathway provides the opportunity for project capital expenditure intensity to develop in a staged fashion.

AngloGold Ashanti’s technical team has initiated the process of evaluating the Corvus’ Mineral Resource. For 2022, multiple activities are planned to take place in the district, with requisite drilling underway at North Bullfrog and Silicon, with an aim to convert Mineral Resource to Ore Reserve. We also plan to begin a pre-feasibility study at Silicon and initiate a concept study for the Merlin deposit. The permitting process for North Bullfrog is expected to start in the first half of 2022. Importantly, given the various deposits across the tenement, our approach to mapping these deposits is expected to take place over a number of years in a staged and de-risked manner.








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AUSTRALIA
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Attributable gold production
(000oz)		Average number of  
employees  
Operations
Australia
1.   Sunrise Dam229 679 
2.   Tropicana 70%265 653 
The two AngloGold Ashanti operations in Australia are Sunrise Dam and Tropicana, both of which are in the north-eastern goldfields in the state of Western Australia. Sunrise Dam is wholly owned, while we have a 70% holding in, and manage, Tropicana, with Regis Resources Ltd, our partner, holding the balance. Regis Resources acquired the stake in Tropicana from IGO Ltd on 31 March 2021. Sunrise Dam includes the Butcher Well project (70%).




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Australia - Key Statistics
Unit202120202019
Operation
Tonnes treated/milledMt10.5 10.2 10.1 
Pay limitoz/t0.06 0.06 0.06 
g/t1.89 1.95 1.95 
Recovered gradeoz/t0.047 0.054 0.060 
g/t1.47 1.68 1.87 
Gold production (attributable)000oz494 554 614 
Cost of sales$m740 705 632 
  Total cash costs (1)
$/oz1,196 968 730 
  All-in sustaining costs (1)
$/oz1,500 1,225 990 
Capital expenditure$m185 143 149 
Safety
Number of fatalities000
AIFRPer million hours worked6.59 3.74 7.33 
People
Average no of employees: Total1,332 1,230 1,140 
Permanent employees288 259 249 
Contractors 1,044 971 891 

(1)Total cash costs and all-in sustaining costs are non-GAAP measures. For further information on these non-GAAP measures, see “Item 5A: Operating Results-Non-GAAP analysis”.

Performance summary

Production for the year was 494,000oz (2020: 554,000oz), achieved at a total cash cost of $1,196/oz (2020: $968/oz).

Capital expenditure of $185m (2020: $143m).

Safety performance regressed, from an AIFR of 3.74 per million hours worked in 2020, to 6.59. There was no change to the severity of incidents, but the number of incidents increased, attributed to a range of COVID-related factors, including high employee turnover coupled with an increase in the proportion of inexperienced workers.

Community investment of $1.01m (2020: $0.81m).

All operations certified in terms of the Cyanide Code, ISO 45000 (health and safety) and ISO 14001.

While production declined year-on-year, the Australia assets recorded a stronger second half of the year with output improving by 23%, when compared to the first half of the year.

At Sunrise Dam the new, higher-grade and shallower Frankie orebody was accessed at year-end, and 1.09Mt of ore was mined from the new, relatively short life Golden Delicious open pit, displacing lower grade stockpile material from mill feed in the second half of the year. Recovery rates also improved in the second six months of 2021 versus the first half. Mining at Golden Delicious is progressing well, with this material stockpiled and blended with underground ore to optimise throughput and production.

At Tropicana, open pit material movement was lower than planned in 2021, due primarily to the severe shortage of skilled operators and maintenance personnel. The mine plan was adjusted to mitigate this shortfall and reduce the impact on gold production. Progress in the lower priority (bulk waste) work areas suffered as a consequence, resulting in less waste stripping of cutbacks being carried out.




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SOUTH AFRICA

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The sale of the South African assets to Harmony closed on 30 September 2020. As a result, the figures in this section relate
to the nine months ended on 30 September 2020, unless the context indicates otherwise.

South Africa Key Statistics
Unit202120202019
Operation
Tonnes treated/milledMt0.4 35.1 
  Pay limit (1)
oz/t0.40 0.33 
g/t14.60 11.90 
  Recovered grade (1)
oz/t0.120 0.183 
g/t3.75 5.69 
Gold production000oz241 419 
Cost of sales$m287 479 
  Total cash costs (2)
$/oz1,149 981 
  All-in sustaining costs (2)
$/oz1,296 1,132 
Capital expenditure$m35 57 
Safety
Number of fatalities40
AIFRPer million hours worked6.12 10.00 
People
Average no of employees: Total— 8,297 7,870 
Permanent employees— 7,012 6,682 
Contractors — 1,285 1,188 
(1)Refers to underground operations only.
(2)Total cash costs and all-in sustaining costs are non-GAAP measures. For further information on these non-GAAP measures, see “Item 5A: Operating Results-Non-GAAP analysis”.



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EXPLORATION REVIEW

Our exploration programmes enable us to ultimately expand our Mineral Reserve and are based on consistent standards and processes across the AngloGold Ashanti portfolio which are guided by peer reviews. We identify the best group of drill targets, prioritising those that have the highest potential for success.

We have developed a system - Exploring for value (E4V) - to ensure that our exploration activities are focused on maximising value for the business and established a system that goes beyond SAMREC (The South African Code for the Reporting of Exploration Results, Mineral Resources and Mineral Reserves) limitations and allows us to bring into play, at an early stage, very low confidence material. This means we can ensure our exploration pipeline can deliver into our Life of Mine (LOM) plans at the right time. The system allows for the capture of geological understanding from the earliest stage of development. In addition to integrating our E4V process with our LOM planning, we have also integrated with our project process and our accounting standards. Through this integration, as an area is explored and drilled a series of reviews and appropriate economic studies are used to support the next level of exploration.

Targeted investments during the year led to two positive advances, with Pure Gold Mining, in which we have a 16% stake, continuing to ramp up at the Madsen mine redevelopment in Red Lake, Ontario. Further, AngloGold Ashanti made an offer to purchase Corvus Gold and the acquisition was completed in January 2022. The Company also actively monitors for new early-stage opportunities that would be a potential fit for our portfolio.

Greenfields exploration

Our greenfields exploration programmes are designed to discover Mineral Resources that will ultimately lead to the development of new gold mines. In 2021, $31.2m was spent on Greenfields exploration. Exploration tenements cover over 4,400km2 of highly prospective ground in four countries – Australia, Brazil, Argentina and the United States. In total, 114km of diamond, reverse circulation (RC) and aircore drilling was completed in Greenfields exploration programmes in 2021.

In the United States, a total of 25,538m of RC and 14,581m of diamond drilling was completed during the year at the Silicon project near Beatty, Nevada. Work focused on expanding the project along strike and at depth. Infill drilling was completed as part of a successful conceptual study that defined a first Inferred Mineral Resource of 3.37moz of gold at 0.87g/t and 14.17moz silver at 3.66 g/t contained in 120.44m tonnes constrained within a pit optimisation completed at a $1500/oz gold price. Development drilling to expand gold mineralisation and tighten average drill spacing to increase the Mineral Resource classification will continue as part of project studies in 2022.

At the Merlin target, in the Silicon project tenement area, 5,198m of RC and 7,104m of diamond drilling were completed. The drilling tested a target area with favourable volcanic stratigraphy and widely spaced gold-bearing drill intercepts that will be followed with additional drilling in 2022.

In Argentina, field programmes started in Q4 with systematic talus fines (890 samples) and ridge and spur sampling (225 samples) undertaken at the El Cori project.

Brownfields exploration

During 2021, Brownfields exploration activities were undertaken across the globe. We completed 1,059km of drilling with a total expenditure of $84.6m (capital) and $69.2m (expensed) for the year.

Tanzania: Capitalised (underground) and expensed (surface/ underground) drilling programmes completed a total of 167,392m during the year at a cost of $37.0m.

Mineral Resource development drilling was carried out at Star & Comet Cut 2 and Cut 3 and assay results confirmed the continuity of the mineralisation for both Cuts. While exploratory drilling conducted at Star and Comet Cut 3 towards Ridge 8 returned results confirming open-ended mineralisation. Results at Cut 4 confirmed the hanging wall and footwall structures as modelled and exploratory drilling results from Cut 5 confirmed the continuity of the mineralisation.

At Nyankanga Block 1 and Block 2, the drilling results confirmed up-dip continuity of the mineralisation for both targets. The results from a short drilling programme at Block 5 suggest possible down-dip continuity of mineralisation. Drilling results from Geita Hill confirm open-ended down-dip extensions of the ore zones. At Lone Cone, the results confirm the down-dip continuity of mineralisation and increased the Mineral Resource model confidence.

Results from exploration drilling at Nyamulilima Cut 1 and 2 confirmed the model. While the assay results from the sterilisation drilling for a proposed waste dump site returned no significant intersections. While at Xanadu, drilling is in progress and the results, so far, do not show obvious down-dip continuity.

Non-drilling exploration programmes consisted of surface geological mapping and integration of various geological datasets to better understand the sub-surface geology in an effort to identify new exploration targets.

Guinea: Capitalised and expensed drilling programmes completed a total of 34,336m during the year at a total cost of $7.2m. The 2021 drilling was impacted by contractor changes and significant delay in mobilising three of the contractor’s new rigs.




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Ghana: At Iduapriem, drilling totaled 43,293m at a cost of $5.8m.

Exploration activities during 2021, focused on Mineral Resource conversion drilling at Block 1 Central, Block 3, Block 5 and its Extension, Ajopa South, Ajopa Cut 3, Block 7 and 8 and Badukrom. Regional auger drilling, mapping and geochemical sampling were undertaken at Mile 8 and Ajopa Southwest, respectively. Follow-up work, inclusive of air core drilling, has been planned for 2022.

Democratic Republic of the Congo: Capitalised and Expensed drilling programmes, at Kibali, completed a total of 16,035m during the year at a cost of $5.3m.

Tete Bakangwe was delivered as an opportunity, and post Mineral Resource conversion drilling it has been added to the mine plan for next year.

First phase drilling results testing down plunge continuity of high grade at Kalimva support an underground project. While at KCD step out holes have confirmed continuity of 3000, 5000 and 11000 system 500m down plunge, with additional mineralisation below 11000 lode.

In Argentina, a total of 38,895m of drilling was completed at a cost of $6.9m. Exploration was focused on creating new Mineral Resource which could be converted to Mineral Reserve to extend the current life of mine.

In Brazil, at Cuiabá and Lamego a total 151,042m were drilled at a cost of $13.8m.

In Colombia, at Quebradona, work was completed on drillhole relogging, tuff differentiation logging, geometallurgical modelling and geology project support. Preparation and support for the geotechnical campaign including laboratory follow up was started as were routine measurements of groundwater levels, flow stations and rain stations.

PROJECTS

At Obuasi, underground operations were suspended in May 2021 following a geotechnical event and fatality. A detailed review into the incident and its causes was followed by a thorough external review of future mining fronts covering the mine design, schedule and ground management plan. Underground mining activities remained suspended until mid-October 2021 when stoping activities restarted.

Since then, the restart plan, and in particular tonnage delivered to the mill, have tracked to schedule with the processing plant achieving 2,000 tonnes per day in January. The safe ramp-up to the full mining rate of 4,000 tonnes per day is expected by the end of June 2022.

A comprehensive series of protocols have been introduced to supplement existing operating procedures at Obuasi and they are expected to add about $10 to $20 per tonne to the mine’s operating costs, or about $50/oz. External consultants will continue their review of future mining areas. Areas of assessment completed include Sansu, Block 8 lower and the decline.

In terms of infrastructure, the work needed to support the ramp up to 4,000tpd is now complete (Phase 2). Phase 3 – which relates principally to extended capital expenditure to refurbish existing infrastructure around the KMS Shaft and runs to end 2023 – is also proceeding according to schedule. This includes upgrading the KMS shaft and materials handling system, a new ventilation shaft, underground pump stations and refurbishment of the BSVS sub-shaft.

In Colombia, our proposed Quebradona gold and copper project may take longer to develop than previously anticipated following a decision by Colombian environment agency, ANLA, to archive our environmental licence application. There has also been a request for additional water studies. A thorough review and analysis of the items and further information identified as part of ANLA’s archiving decision is underway. The aim is to prepare, submit and process a new environmental licence request for Quebradona. We will provide an update on the timeframe when there is more clarity.

At Gramalote, the feasibility study work completed in early 2021 has illustrated the potential to improve the economics of the project by revisiting and further optimising the original project design included in the existing mining permit. The joint operation partners believe that greater value could be created through additional drilling of the Inferred portions of the Mineral Resource area, both within and adjacent to the designed pit. A Mineral Resource update is expected in early 2022. The final feasibility study results for the project are currently expected by around August 2022.

The reinvestment programmes underway at our bigger assets – Geita, Tropicana and Iduapriem – have progressed well, and remain on schedule.




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4C.    ORGANISATIONAL STRUCTURE

GROUP STRUCTURE

AngloGold Ashanti’s operations are divided into the following regions:

•Africa – operations in Ghana, Guinea and Tanzania and joint venture operations in the DRC;
•Australia – operations in Australia; and
•Americas – operations in Argentina and Brazil, and exploration projects in Colombia and the United States.

The above regions correspond to AngloGold Ashanti’s business segments. The South Africa region is recognised for financial statement purposes as discontinued operations as we sold our remaining South African producing assets and related liabilities in 2020.

Day-to-day management of the group is entrusted to AngloGold Ashanti’s executive management team, chaired by the Chief Executive Officer. See “Item 6: Directors, Senior Management and Employees”.

Support is provided to the executive management team in managing AngloGold Ashanti’s corporate activities at both the central and local levels.

SUBSIDIARIES

AngloGold Ashanti Limited has investments in principal subsidiaries and joint venture interests, see “Item 19: Exhibits to Form 20-F—Exhibit 19.8 List of AngloGold Ashanti Limited subsidiaries” for details.



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4D.    PROPERTY, PLANTS AND EQUIPMENT

MINERAL RESOURCE AND MINERAL RESERVE SUMMARY DISCLOSURE

On 31 October 2018, the United States Securities and Exchange Commission (“SEC”) adopted Subpart 1300 (17 CFR 229.1300) of Regulation S-K (“Regulation S-K 1300”) along with the amendments to related rules and guidance in order to modernise the property disclosure requirements for mining registrants under the Securities Act and the Securities Exchange Act. Registrants engaged in mining operations must comply with the final rule amendments (Regulation S-K 1300) for the first fiscal year beginning on or after 1 January 2021. Accordingly, the Companyis providing disclosure in compliance with Regulation S-K 1300 for its fiscal year ending 31 December 2021, and will continue to do so going forward. As part of its rulemaking to modernise its disclosure requirements, the SEC rescinded Industry Guide 7, which accordingly is not applicable to the Company’s current and future disclosures.

Mineral Resource and Mineral Reserve are estimates that contain inherent risk and depend upon geologic interpretation and statistical inferences drawn from drilling and sampling analysis, which may prove to be unreliable. For additional information on the risks and uncertainties associated with AngloGold Ashanti’s mining properties, see “Item 3D: Risk Factors"

Locations of properties
au-20211231_g6.jpg




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The locations of AngloGold Ashanti’s operations and advanced projects are shown above. Locality maps showing the location of properties as well as infrastructure and licences are also shown per operation or project in the Individual Property Disclosure section in Item 4D. Percentages indicate the ownership interest held by AngloGold Ashanti. All operations are 100 percent owned unless otherwise indicated.

Overview of Mining properties and operations

Refer to “Item 4B: Business Overview—Operating Performance” for the aggregate annual production for the properties during each of the three most recently completed fiscal years preceding the filing.

The following information is detailed for each material property in the Individual Property Disclosure section in Item 4D of this report:
•The location of the properties;
•The type and amount of ownership interests;
•The identity of the operator or operators;
•Titles, mineral rights, leases or options and acreage involved;
•The stages of the properties (exploration, development or production);
•Key permit conditions;
•Mine types and mineralisation styles; and
•Processing plants and other available facilities.

Price assumptions

The Mineral Resource and Mineral Reserve are based on reasonable economic assumptions which provide a reasonable basis for establishing the reasonable prospects of economic extraction for Mineral Resource, and for establishing the expected price for the Mineral Reserve. These economic assumptions include long-range commodity price and exchange rate forecasts and management estimates. These economic assumptions are reviewed annually and are prepared in-house using a range of techniques including historic price averages. AngloGold Ashanti selects a conservative Mineral Reserve price relative to its peers. This is done to fit into the strategy to include a margin in the mine planning process. The resultant plan is then valued at a higher business planning price.

In the case of Sunrise Dam, the 2021 Mineral Reserve estimate reflects that the mine is two years into a three-year “growth through exploration” phase that aims to unlock the value of the asset, with Mineral Reserve growth the initial step in a move towards realising the full asset potential. The Mineral Reserve has been estimated using a mine-constrained break-even cut-off determined at a $1,200/oz gold price under budget cost conditions across the six-year Mineral Reserve life. This has meant that significant marginal material was included in the plan in order to keep the plant operating at full capacity.

The Mineral Reserve has been evaluated economically and shown to be cash flow positive at a $1,500/oz gold price. It is AngloGold Ashanti's opinion that there is sufficient margin between this price and the current spot price of gold for this to define an Mineral Reserve.

Gold price

The following local prices of gold were used as a basis for estimation in the December 2021 declaration, unless otherwise stated:
Local prices of gold(4)
Gold priceAustraliaBrazilArgentinaColombia
$/ozAUD/ozBRL/ozARS/ozCOP/oz
2021 Mineral Reserve(3)
1,2001,6336,182134,4523,849,000
2020 Mineral Reserve(2)
1,2001,6045,510119,6314,096,877
2021 Mineral Resource(1)
1,5002,0727,940173,0655,336,250

(1) Reported for the first time under Regulation S-K 1300.
(2) Reported under Industry Guide 7.
(3) Reported under Regulation S-K 1300.
(4) Considered over the period 2011 to 2021.




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Copper price

The following copper price was used as a basis for estimation in the December 2021 declaration:
Copper price(5)
$/lbCOP/lb
2021 Mineral Reserve(4)
2.909,302
2020 Mineral Reserve(3)
2.659,047
2021 Mineral Resource(1)
3.5012,451

The Mineral Resource, as reported, is exclusive(2) of the Mineral Reserve component. Mineral Resource and Mineral Reserve estimates are reported as at 31 December 2021 and are net of 2021 production depletion.

MINERAL RESOURCE

This is the first time that AngloGold Ashanti has reported Mineral Resource in the Form-20F and as such it cannot be compared to a previous reporting period.

Gold

The AngloGold Ashanti gold Mineral Resource(1) (exclusive of Mineral Reserve(2)), as at 31 December 2021, includes 51.72Moz Measured and Indicated Mineral Resource and 42.34Moz Inferred Mineral Resource. The Mineral Resource was estimated using a gold price of $1,500/oz, unless otherwise stated. Refer to Table 1a to Paragraph (b) prepared in accordance with Regulation S-K 1300 (§ 229.1303 (Item 1303)).

Copper

The AngloGold Ashanti copper Mineral Resource(1) (exclusive of Mineral Reserve(2)), as at 31 December 2021, includes 1.32Mt (2,902Mlb) Measured and Indicated Mineral Resource and 1.47Mt (3,231Mlb) Inferred Mineral Resource. The Mineral Resource was estimated at a copper price of $3.50/lb. Refer to Table 1b to Paragraph (b) prepared in accordance with Regulation S-K 1300 (§ 229.1303 (Item 1303)).

MINERAL RESERVE

Gold

The AngloGold Ashanti Mineral Reserve reduced from 29.5Moz in December 2020(3) to 28.1Moz in December 2021(4). This annual net decrease of 1.4Moz (5%) includes depletion of 2.6Moz and reductions due to other factors of 2.9Moz. This includes the exclusion of the Gramalote Mineral Reserve of 1.7Moz as AngloGold Ashanti are currently incorporating additional drilling into a revised model and have not reached agreement with the joint operation partner and thus no Mineral Reserve will be published). This decrease was partially offset by additions due to exploration and modelling changes of 4.1Moz. The Mineral Reserve was estimated using a gold price of $1,200/oz, unless otherwise stated (2020: $1,200/oz). Table 2ato Paragraph (b) prepared in accordance with Regulation S-K 1300 (§ 229.1303 (Item 1303)).

Copper

The AngloGold Ashanti Mineral Reserve increased from 1.41Mt (3,105Mlb) in December 2020(3) to 1.47Mt (3,250Mlb) in December 2021(4). This gross annual increase of 0.07Mt (145Mlb or 5%) is due to methodology changes. The Mineral Reserve was estimated at a copper price of $2.90/lb (2020: $2.65/lb). Table 2bto Paragraph (b) prepared in accordance with Regulation S-K 1300 (§ 229.1303 (Item 1303)).



(1)     Reported for the first time under Regulation S-K 1300 and thus no net difference can be reported.
(2)     The Mineral Resource exclusive of Mineral Reserve (“Exclusive Mineral Resource”) is defined as the Inclusive Mineral Resource less the Mineral Reserve before dilution and other factors are applied.
(3)     Reported under Industry Guide 7.
(4)     Reported under Regulation S-K 1300.
(5) Considered over the period 2011 to 2021.



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Table 1a to Paragraph (b) prepared in accordance with Regulation S-K 1300 (§ 229.1303 (Item 1303)) - Summary Mineral Resource(1) (exclusive of Mineral Reserve) for gold at the end of the Fiscal Year ended 31 December 2021 based on $1,500/oz, unless otherwise stated.

Mineral Resource (1)
MeasuredIndicatedMeasured and Indicated TotalInferred
Gold
Tonnes (3)
GradeContained Gold
Tonnes (3)
GradeContained Gold
Tonnes (3)
GradeContained Gold
Tonnes (3)
GradeContained Gold
as at 31 December 2021Milliong/tTonnesMozMilliong/tTonnesMozMilliong/tTonnesMozMilliong/tTonnesMoz
Continental Africa Region13.16 3.98 52.32 1.68 179.46 2.36 422.86 13.60 192.61 2.47 475.18 15.28 179.17 3.43 613.98 19.74 
Democratic Republic of Congo7.62 3.19 24.29 0.78 19.82 2.76 54.63 1.76 27.45 2.88 78.92 2.54 10.29 2.70 27.74 0.89 
Kibali (45 percent)(2)(7)(8)(13)
7.62 3.19 24.29 0.78 19.82 2.76 54.63 1.76 27.45 2.88 78.92 2.54 10.29 2.70 27.74 0.89 
Ghana4.09 5.27 21.55 0.69 67.20 3.55 238.27 7.66 71.28 3.64 259.82 8.35 77.50 5.35 414.90 13.34 
Iduapriem(13)
1.52 0.72 1.10 0.04 41.39 1.37 56.69 1.82 42.91 1.35 57.80 1.86 27.34 1.47 40.24 1.29 
Obuasi(12)
2.57 7.97 20.45 0.66 25.81 7.04 181.57 5.84 28.37 7.12 202.02 6.50 50.15 7.47 374.66 12.05 
Guinea— — — — 64.26 1.12 71.81 2.31 64.26 1.12 71.81 2.31 60.91 1.15 70.06 2.25 
Siguiri (85 percent)(2)(13)
— — — — 64.26 1.12 71.81 2.31 64.26 1.12 71.81 2.31 60.91 1.15 70.06 2.25 
Tanzania1.44 4.49 6.47 0.21 28.18 2.06 58.15 1.87 29.62 2.18 64.63 2.08 30.48 3.32 101.29 3.26 
Geita(13)
1.44 4.49 6.47 0.21 28.18 2.06 58.15 1.87 29.62 2.18 64.63 2.08 30.48 3.32 101.29 3.26 
Americas Region64.29 1.50 96.24 3.09 1,106.42 0.86 952.57 30.63 1,170.71 0.90 1,048.82 33.72 767.37 0.75 576.25 18.53 
Argentina4.33 2.66 11.53 0.37 19.73 2.15 42.41 1.36 24.07 2.24 53.93 1.73 4.96 2.35 11.65 0.37 
Cerro Vanguardia (92.5 percent)(2)(4)(13)
4.33 2.66 11.53 0.37 19.73 2.15 42.41 1.36 24.07 2.24 53.93 1.73 4.96 2.35 11.65 0.37 
Brazil14.81 4.58 67.78 2.18 22.99 3.17 72.82 2.34 37.80 3.72 140.61 4.52 55.54 3.63 201.60 6.48 
AGA Mineração - Corrego do Sitio(13)
2.24 3.07 6.88 0.22 6.02 3.09 18.62 0.60 8.26 3.09 25.49 0.82 16.54 3.99 65.95 2.12 
AGA Mineração - Cuiabá(5)(13)
4.70 7.74 36.40 1.17 3.47 5.43 18.83 0.61 8.17 6.76 55.23 1.78 12.87 4.94 63.63 2.05 
AGA Mineração - Lamego(5)(13)
2.12 3.23 6.86 0.22 2.59 2.41 6.24 0.20 4.71 2.78 13.10 0.42 4.92 3.01 14.80 0.48 
Serra Grande(13)
5.74 3.08 17.65 0.57 10.92 2.67 29.14 0.94 16.66 2.81 46.79 1.50 21.22 2.70 57.22 1.84 
Colombia45.15 0.37 16.93 0.54 1,063.69 0.79 837.35 26.92 1,108.84 0.77 854.27 27.47 586.42 0.44 258.05 8.30 
Gramalote (50 percent)(2)(9)(10)(11)
— — — — 81.29 0.75 61.14 1.97 81.29 0.75 61.14 1.97 62.59 0.52 32.55 1.05 
La Colosa(9)(11)
— — — — 833.49 0.87 726.31 23.35 833.49 0.87 726.31 23.35 217.89 0.71 154.86 4.98 
Quebradona(4)(6)(12)
45.15 0.37 16.93 0.54 148.91 0.34 49.89 1.60 194.06 0.34 66.82 2.15 305.94 0.23 70.64 2.27 
United States of America— — — — — — — — — — — — 120.44 0.87 104.96 3.37 
Silicon(4)(11)
— — — — — — — — — — — — 120.44 0.87 104.96 3.37 
Australasia Region29.92 1.25 37.49 1.21 33.13 1.42 47.21 1.52 63.05 1.34 84.69 2.72 50.07 2.53 126.83 4.08 
Sunrise Dam(13)
12.16 1.63 19.82 0.64 16.50 1.60 26.48 0.85 28.66 1.62 46.29 1.49 23.60 2.36 55.67 1.79 
Butcher Well (70 percent)(2)(11)
— — — — — — — — — — — — 2.69 3.77 10.14 0.33 
Tropicana (70 percent)(2)(13)
17.76 0.99 17.67 0.57 16.63 1.25 20.73 0.67 34.39 1.12 38.40 1.23 23.78 2.57 61.02 1.96 
AngloGold Ashanti Total107.37 1.73 186.05 5.98 1,319.01 1.08 1,422.64 45.74 1,426.38 1.13 1,608.69 51.72 996.61 1.32 1,317.06 42.34 




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Rounding off numbers may result in computational discrepancies in the Mineral Resource tabulations. The Mineral Resource estimates with respect to our properties have been prepared by the Qualified Persons (employed by AngloGold Ashanti unless stated otherwise) referred to in the Technical Report Summaries filed as Exhibits to the Form 20-F. The Mineral Resource is reported for the first time under Regulation S-K 1300 and thus no net difference can be reported. (1) All disclosure of Mineral Resource is exclusive of Mineral Reserve. The Mineral Resource exclusive of Mineral Reserve (“Exclusive Mineral Resource”) is defined as the inclusive Mineral Resource less the Mineral Reserve before dilution and other factors are applied. (2) Mineral Resource attributable to AngloGold Ashanti’s percentage interest shown.
(3) Tonnes refers to a metric tonne which is equivalent to 1000 kilograms.
(4) The inclusive Mineral Resource contains 78.5Moz of silver for Cerro Vanguardia; 92.9Moz of silver for Quebradona and 14.2Moz of silver for Silicon as a by-product.
(5) The inclusive Mineral Resource contains 1.71 million tonnes of sulphur as a by-product for AGA Mineração - Cuiabá and Lamego.
(6) The inclusive Mineral Resource contains 89.3 kilotonnes of molybdenum as a potential by-product. (7) AngloGold Ashanti has recognised that in preparing this report, the Qualified Persons have, relied on information provided by Barrick. (8) Operated by Barrick. (9) Based on $1,400/oz. (10) Managed by B2Gold Corp. The Mineral Resource is estimated by AngloGold Ashanti. (11) Property currently in an exploration stage. (12) Property currently in a development stage. (13) Property currently in a production stage.

Table 1b to Paragraph (b) prepared in accordance with Regulation S-K 1300 (§ 229.1303 (Item 1303)) - Summary Mineral Resource(1) (exclusive of Mineral Reserve) for copper at the end of the Fiscal Year ended 31 December 2021 based on $3.50/lb, unless otherwise stated.

Mineral Resource (1)
MeasuredIndicatedMeasured and Indicated TotalInferred
Copper
Tonnes (2)
GradeContained Copper
Tonnes (2)
GradeContained Copper
Tonnes (2)
GradeContained Copper
Tonnes (2)
GradeContained Copper
as at 31 December 2021Million%CuTonnes MillionPounds MillionMillion%CuTonnes MillionPounds MillionMillion%CuTonnes MillionPounds MillionMillion%CuTonnes MillionPounds Million
Americas Region45.15 0.69 0.31 684 148.91 0.68 1.01 2,218 194.06 0.68 1.32 2,902 305.94 0.48 1.47 3,231 
Colombia45.15 0.69 0.31 684 148.91 0.68 1.01 2,218 194.06 0.68 1.32 2,902 305.94 0.48 1.47 3,231 
Quebradona(3)(4)(5)
45.15 0.69 0.31 684 148.91 0.68 1.01 2,218 194.06 0.68 1.32 2,902 305.94 0.48 1.47 3,231 
AngloGold Ashanti Total45.15 0.69 0.31 684 148.91 0.68 1.01 2,218 194.06 0.68 1.32 2,902 305.94 0.48 1.47 3,231 

Rounding off numbers may result in computational discrepancies in the Mineral Resource tabulations. The Mineral Resource estimates with respect to our properties have been prepared by the Qualified Persons (employed by AngloGold Ashanti unless stated otherwise) referred to in the Technical Report Summaries filed as Exhibits to the Form 20-F. The Mineral Resource is reported for the first time under Regulation S-K 1300 and thus no net difference can be reported. (1) All disclosure of Mineral Resource is exclusive of Mineral Reserve. The Mineral Resource exclusive of Mineral Reserve (“Exclusive Mineral Resource”) is defined as the Inclusive Mineral Resource less the Mineral Reserve before dilution and other factors are applied.
(2) Tonnes refers to a metric tonne which is equivalent to 1000 kilograms. (3) The inclusive Mineral Resource contains 92.9Moz of silver as a by-product.
(4) The inclusive Mineral Resource contains 89.3 kilotonnes of molybdenum as a potential by-product. (5) Property currently in a development stage.







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Table 2a to Paragraph (b) prepared in accordance with Regulation S-K 1300 (§ 229.1303 (Item 1303)) - Summary Mineral Reserve for gold at the end of the Fiscal Year ended 31 December 2021 based on $1,200/oz, unless otherwise stated.
Mineral ReserveProvenProbableTotal Mineral Reserve
Gold
Tonnes (2)
GradeContained Gold
Tonnes (2)
GradeContained Gold
Tonnes (2)
GradeContained Gold
as at 31 December 2021Milliong/tTonnesMozMilliong/tTonnesMozMilliong/tTonnesMoz
Continental Africa Region41.33 2.58 106.54 3.43 183.69 2.72 499.29 16.05 225.02 2.69 605.84 19.48 
Democratic Republic of Congo14.35 3.76 54.01 1.74 23.04 3.50 80.71 2.59 37.40 3.60 134.72 4.33 
Kibali (45 percent)(1)(5)(6)(10)
14.35 3.76 54.01 1.74 23.04 3.50 80.71 2.59 37.40 3.60 134.72 4.33 
Ghana6.88 5.57 38.34 1.23 83.32 3.59 299.46 9.63 90.20 3.75 337.80 10.86 
Iduapriem(10)
2.15 0.68 1.46 0.05 57.25 1.39 79.32 2.55 59.40 1.36 80.78 2.60 
Obuasi(9)
4.73 7.79 36.88 1.19 26.07 8.45 220.14 7.08 30.80 8.34 257.02 8.26 
Guinea17.91 0.63 11.36 0.37 49.80 0.80 39.67 1.28 67.72 0.75 51.03 1.64 
Siguiri (85 percent)(1)(10)
17.91 0.63 11.36 0.37 49.80 0.80 39.67 1.28 67.72 0.75 51.03 1.64 
Tanzania2.19 1.30 2.84 0.09 27.52 2.89 79.45 2.55 29.71 2.77 82.29 2.65 
Geita(10)
2.19 1.30 2.84 0.09 27.52 2.89 79.45 2.55 29.71 2.77 82.29 2.65 
Americas Region11.11 2.70 29.99 0.96 141.28 1.03 146.01 4.69 152.40 1.15 176.00 5.66 
Argentina4.19 2.04 8.54 0.27 8.12 2.08 16.88 0.54 12.31 2.07 25.42 0.82 
Cerro Vanguardia (92.5 percent)(1)(3)(10)
4.19 2.04 8.54 0.27 8.12 2.08 16.88 0.54 12.31 2.07 25.42 0.82 
Brazil6.93 3.10 21.45 0.69 13.15 3.67 48.29 1.55 20.07 3.47 69.74 2.24 
AGA Mineração - Corrego do Sitio(10)
1.10 1.99 2.18 0.07 3.36 2.85 9.57 0.31 4.46 2.63 11.75 0.38 
AGA Mineração - Cuiabá(4)(10)
2.08 4.65 9.67 0.31 5.80 4.70 27.29 0.88 7.89 4.69 36.97 1.19 
AGA Mineração - Lamego(4)(10)
0.46 2.55 1.17 0.04 0.90 2.92 2.63 0.08 1.36 2.80 3.79 0.12 
Serra Grande(10)
3.29 2.56 8.44 0.27 3.08 2.85 8.79 0.28 6.37 2.70 17.23 0.55 
Colombia— — — — 120.01 0.67 80.83 2.60 120.01 0.67 80.83 2.60 
Gramalote (50 percent)(1)(7)(8)
— — — — — — — — — — — — 
Quebradona(3)(9)
— — — — 120.01 0.67 80.83 2.60 120.01 0.67 80.83 2.60 
Australasia Region26.41 1.46 38.43 1.24 25.31 2.13 54.04 1.74 51.73 1.79 92.47 2.97 
Sunrise Dam(10)
12.18 1.50 18.30 0.59 9.40 2.38 22.34 0.72 21.58 1.88 40.64 1.31 
Tropicana (70 percent)(1)(10)
14.24 1.41 20.14 0.65 15.91 1.99 31.70 1.02 30.15 1.72 51.84 1.67 
AngloGold Ashanti Total78.86 2.22 174.97 5.63 350.28 2.00 699.34 22.48 429.14 2.04 874.31 28.11 

Rounding off numbers may result in computational discrepancies in the Mineral Reserve tabulations. The Mineral Reserve estimates with respect to our properties have been prepared by the Qualified Persons (employed by AngloGold Ashanti unless stated otherwise) referred to in the Technical Report Summaries filed as Exhibits to the Form 20-F. The net difference between the Mineral Reserves at the end of the last completed fiscal year and the preceding fiscal year will be detailed in the Individual Property Disclosure Section. (1) Mineral Reserve attributable to AngloGold Ashanti’s percentage interest shown.
(2) Tonnes refers to a metric tonne which is equivalent to 1000 kilograms.
(3) The Mineral Reserve contains 20.5Moz of silver for Cerro Vanguardia and 28.1Moz of silver for Quebradona to be recovered as a by-product.
(4) The Mineral Reserve contains 0.43 million tonnes of sulphur to be recovered as a by-product for AGA Mineração - Cuiabá and Lamego.



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(5) AngloGold Ashanti has recognised that in preparing this report, the Qualified Persons have, relied on information provided by Barrick. (6) Operated by Barrick. (7) Managed by B2Gold Corp. (8) At Gramalote, AngloGold Ashanti is currently incorporating additional drilling into a revised model and have not reached agreement with the joint operation partner and thus no Mineral Reserve will be published. Current stage of the property is at exploration stage.(9) Property currently in a development stage. (10) Property currently in a production stage.

Table 2b to Paragraph (b) prepared in accordance with Regulation S-K 1300 (§ 229.1303 (Item 1303)) - Summary Mineral Reserve for copper at the end of the Fiscal Year ended 31 December 2021 based on $2.90/lb, unless otherwise stated.

Mineral ReserveProvenProbableTotal Mineral Reserve
Copper
Tonnes (1)
GradeContained Copper
Tonnes (1)
GradeContained Copper
Tonnes (1)
GradeContained Copper
as at 31 December 2021Million%CuTonnes MillionPounds MillionMillion%CuTonnes MillionPounds MillionMillion%CuTonnes MillionPounds Million
Americas Region— — — — 120.01 1.23 1.47 3,250 120.01 1.23 1.47 3,250 
Colombia— — — — 120.01 1.23 1.47 3,250 120.01 1.23 1.47 3,250 
Quebradona(2)(3)
— — — — 120.01 1.23 1.47 3,250 120.01 1.23 1.47 3,250 
AngloGold Ashanti Total— — — — 120.01 1.23 1.47 3,250 120.01 1.23 1.47 3,250 

Rounding off numbers may result in computational discrepancies in the Mineral Reserve tabulations. The Mineral Reserve estimates with respect to our properties have been prepared by the Qualified Persons (employed by AngloGold Ashanti unless stated otherwise) referred to in the Technical Report Summaries filed as Exhibits to the Form 20-F. The net difference between the Mineral Reserves at the end of the last completed fiscal year and the preceding fiscal year will be detailed in the Individual Property Disclosure Section. (1) Tonnes refers to a metric tonne which is equivalent to 1000 kilograms.
(2) The Mineral Reserve contains 28.1Moz of silver to be recovered as a by-product. (3)Property currently in a development stage.







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BY-PRODUCTS
Several by-products will be recovered as a result of processing of the gold Mineral Reserve and copper Mineral Reserve. These include 0.43Mt of sulphur from Brazil, 20.5Moz of silver from Argentina and 28.1Moz of silver from Colombia. Molybdenum, at present, is not planned for recovery at Quebradona. The Quebradona process plant has been designed to treat underground ore and to produce copper concentrate with provision of space in the plant site for a molybdenum plant in the future.

CORPORATE GOVERNANCE
AngloGold Ashanti has an established Mineral Resource and Mineral Reserve Steering Committee (“RRSC”), which is responsible for setting and overseeing the Company’s Mineral Resource and Mineral Reserve governance framework and for ensuring that it meets the Company’s goals and objectives while complying with all relevant regulatory codes. Its membership and terms of references are mandated under a policy document signed by the Chief Executive Officer.

The Audit and Risk Committee as well as the Investment Committee of the Company’s Board of Directors (“Board”), review the Mineral Resource and Mineral Reserve and make a recommendation to the Board, which provides the final approval for the publication of the Mineral Resource and Mineral Reserve estimates.

The Company has developed and implemented a rigorous system of internal and external reviews aimed at providing assurance in respect of Mineral Reserve and Mineral Resource estimates. In 2021, the following operations were subject to an external review in line with the policy that each operation/project will be reviewed by an independent third party on average once every three years:

•    Mineral Resource and Mineral Reserve at Iduapriem
•    Mineral Resource and Mineral Reserve at Obuasi
•    Mineral Resource and Mineral Reserve at Kibali
•    Mineral Resource and Mineral Reserve at Serra Grande
•    Mineral Resource and Mineral Reserve at Sunrise Dam
•    Mineral Resource and Mineral Reserve at Tropicana

The external reviews of the Mineral Resource and Mineral Reserve were conducted by SRK Consulting for the properties operated by AngloGold Ashanti and no material risks were identified in any of the audit reports. In the case of Kibali an independent technical review of the annual Mineral Resource and Mineral Reserve estimates was undertaken by RSC Mining and Mineral Exploration on behalf of the managing partner Barrick Gold Corporation (“Barrick”) and identified no significant flaws.

In addition, numerous internal Mineral Resource and Mineral Reserve process reviews were completed by suitably Qualified Persons from within AngloGold Ashanti and no significant deficiencies were identified. The Mineral Resource and Mineral Reserve governance framework is underpinned by appropriate Mineral Resource Management processes and protocols that ensure adequate corporate governance. These procedures have been developed to be compliant with the guiding principles of the U.S. Sarbanes-Oxley Act of 2002 (“SOX”).

AngloGold Ashanti makes use of a web-based group reporting database called the Resource and Reserve Reporting System (“RCubed”) for the compilation and authorisation of Mineral Resource and Mineral Reserve reporting. It is a fully integrated system for the reporting and reconciliation of Mineral Resource and Mineral Reserve that supports various regulatory reporting requirements, including the SEC under Regulation S-K 1300 and the JSE under the SAMREC Code. AngloGold Ashanti uses RCubed to ensure a documented chain of responsibility exists from the Qualified Persons at the operations to the Company’s RRSC.

AngloGold Ashanti has also developed an enterprise-wide risk management tool that provides consistent and reliable data that allows for visibility of risks and actions across the group. This tool is used to facilitate, control and monitor material risks to the Mineral Resource and Mineral Reserve, so that the Company can determine whether the appropriate risk management and mitigation plans are in place.

Where technical experts involved in the estimation of Mineral Resource or Mineral Reserve feel that their technical advice has been ignored and may represent a risk to the Mineral Resource or Mineral Reserve to be published, they are obliged to inform the Mineral Resource and Mineral Reserve Steering Committee in writing. AngloGold Ashanti’s Whistle Blowing Policy and links can be found at https://www.anglogoldashanti.com/sustainability/governance/ethics/ and can also be used if the person deems they will be compromised in the process.




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QUALIFIED PERSONS
The information in this report relating to Exploration Results, Mineral Resource and Mineral Reserve is based on information compiled by or under the supervision of the Qualified Persons as defined in the Regulation S-K 1300. All Qualified Persons are employed by AngloGold Ashanti and have sufficient experience relevant to the style of mineralisation and type of deposit under consideration and relevant to the activity which they are undertaking. AngloGold Ashanti has recognised that in preparing this report with respect to Kibali, the Qualified Persons have relied on information provided by Barrick. The legal tenure of each operation and project has been verified to the satisfaction of the accountable Qualified Person and all the Mineral Reserve has been confirmed to be covered by the required mining permits or there exists a realistic expectation that these permits will be issued. The Qualified Persons have provided consent to the inclusion of Exploration Results, Mineral Resource and Mineral Reserve information in this report, in the form and context in which it appears as well as the public filing and use of the Technical Report Summary for each respective mining property filed as exhibits to the Form 20-F.

Accordingly, the Chairman of the Mineral Resource and Mineral Reserve Steering Committee, Mr. VA Chamberlain, MSc (Mining Engineering), BSc (Hons) (Geology), MGSSA, FAusIMM, assumes responsibility for the Mineral Resource and Mineral Reserve processes for AngloGold Ashanti and is satisfied that the Qualified Persons have fulfilled their responsibilities. Mr. VA Chamberlain has 34 years’ experience in exploration and mining and is employed full-time by AngloGold Ashanti and can be contacted at the following address: 112 Oxford Road, Houghton Estate, Johannesburg, 2198, South Africa. Mr. VA Chamberlain consents to the inclusion of Exploration Results, Mineral Resource and Mineral Reserve information in this report, in the form and context in which it appears filed as an Exhibit to the Form 20-F.

For additional information, see the Technical Report Summary on each individual property, filed as an Exhibit to this annual report on Form 20-F.

THE FOLLOWING SHOULD BE NOTED IN RESPECT OF THE ANNUAL REPORT ON FORM 20F:
•All figures are expressed on an attributable basis unless otherwise indicated
•All disclosure of Mineral Resource is exclusive of Mineral Reserve
•Unless otherwise stated, $ or dollar refers to United States dollars
•Group and Company are used interchangeably
•Mine, operation, business unit and property are used interchangeably
•Rounding off numbers may result in computational discrepancies
•To reflect that figures are not precise calculations and that there is uncertainty in their estimation, AngloGold Ashanti reports tonnage, content for gold to two decimals and copper content with no decimals
•Metric tonnes (t) are used throughout this report and all ounces are Troy ounces
•Abbreviations used in this report: gold– Au, copper – Cu, silver – Ag, Sulphur – S, molybdenum – Mo
•Internal controls are discussed in the Mineral Resource and Mineral Reserve Summary Disclosure section under Corporate Governance as well as the Mineral Resource and Mineral Reserve Internal Controls Disclosure section below
•Maps presented in the Individual Property Disclosure section in Item 4D show infrastructure, licences and coordinates of the mine, as represented by the plant (or stated otherwise), depicted on the map. The reference co-ordinate system used for the location of properties as well as infrastructure and licences maps / plans is latitude longitude geographic co-ordinates in various formats, or relevant Universal Transverse Mercator (“UTM”) projection.

Refer to the Mining Terms for terminology and definitions used in Mineral Resource and Mineral Reserve reporting under Regulation S-K 1300. In addition note the following:

Although the term Mineral Reserve is used throughout Regulation S-K 1300 and this document. AngloGold Ashanti uses Ore Reserve in its internal reporting.

The Mineral Resource exclusive of Mineral Reserve (“Exclusive Mineral Resource”) is defined as the Inclusive Mineral Resource less the Mineral Reserve before dilution and other factors are applied. The Exclusive Mineral Resource consists of the following components:
•Inferred Mineral Resource, including that within the Mineral Reserve design or stope shape;
•Mineral Resource that sits above the Mineral Resource cut-off grade but below the Mineral Reserve cut-off grade that resides within the defined Mineral Reserve volume;
•Mineral Resource that lies between the life of mine (“LOM”) pit shell or mine design and the Mineral Resource pit shell/mine design (this material will become economic if the gold price increases);



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•Mineral Resource where the technical studies to engineer a Mineral Reserve have not yet been completed.

All reports of Mineral Resource must satisfy the requirement that there are reasonable prospects for economic extraction, regardless of the classification of the Mineral Resource. Portions of a deposit that do not have reasonable prospects for eventual economic extraction are not included in a Mineral Resource. The Mineral Resource is estimated using all relevant drilling and sampling information along with a detailed geological model.

The geological models are based on combinations of core and/or chip logging, mapping, geophysics, geochemistry and geological understanding and have been developed for each deposit. Most of our deposits have been the subject of research by third party specialists in the relevant class of gold deposit.

The grade estimation for each deposit has been developed over the life of the mine, and is constantly reviewed in terms of grade control information and reconciliation with the metallurgical plant. In general, the open pits and shallow underground mines use kriging with post processing by Uniform Conditioning (“UC”) or Localised Uniform Conditioning (“LUC”) to generate a recoverable Mineral Resource model where appropriate.

In order to comply with the economic requirement of the definition of Mineral Resource, all our Mineral Resource is constrained at an upside gold price, with all other parameters being kept the same as used for estimation of the Mineral Reserve. In the underground gold mines, scoping studies are conducted on all coherent blocks of ground that lie above the calculated Mineral Resource cut-off grade. These studies include all cost and capital requirements to access the block. In the case of open pit operations, pit optimisations are conducted at the Mineral Resource gold price and all material outside these shells is excluded from the Mineral Resource unless it is potentially mineable from underground.

It is the opinion of AngloGold Ashanti that the Mineral Resource represents a realistic view of an upside potential to the Mineral Reserve. In interpreting the Mineral Resource it is critical to factor in the following:
•That there is a reasonable expectation of economic extraction
•The Mineral Resource is quoted in situ and has not been corrected for dilution, mining losses or recovery
•Many of the areas lying in the Exclusive Mineral Resource are currently being actively drilled and are the subject of economic and technical studies. It can, however, not be assumed at this stage that the company has intent to mine these areas

The Inferred Mineral Resource category is intended to cover situations in which a mineral concentration or occurrence has been identified and limited measurements and sampling have been completed but in which the data are insufficient to allow the geological or grade continuity to be interpreted with confidence. While it would be reasonable to expect that the majority of Inferred Mineral Resource would upgrade to Indicated Mineral Resource with continued exploration, due to the uncertainty of Inferred Mineral Resource, it should not be assumed that such upgrading will always occur.

In order to reduce the risk AngloGold Ashanti limits the use of Inferred Mineral Resource in its Mineral Reserve estimation process but the Inferred Mineral Resource is included in the pit shell or underground extraction shape determination. As such the Inferred Mineral Resource may influence the extraction shape. The quoted Mineral Reserve from these volumes includes only the converted Measured and Indicated Mineral Resource and no Inferred Mineral Resource is converted to Mineral Reserve. The cash flow analysis does not include the Inferred Mineral Resource in demonstrating the economic viability of the Mineral Reserve. For more information, see the Technical Report Summary for each Property filed as an Exhibit of this annual report on Form 20-F.

AngloGold Ashanti requires that the Mineral Reserve that is an outcome of this process is generated at a minimum of a Prefeasibility Study (“PFS”) level.

MINERAL RESOURCE AND MINERAL RESERVE INTERNAL CONTROLS DISCLOSURE

AngloGold Ashanti has a tiered internal review process whereby newly issued Mineral Resource and Mineral Reserve are reviewed at a regional level prior to publication. Selected Corporate reviews happen post that process. Each mine has an external Mineral Resource and Mineral Reserve audit on a three-year rolling basis, and issues raised in these audits are addressed by a formal audit reply from each mine on which the progress is tracked.

AngloGold Ashanti’s Mineral Reserve is an outcome of the Company’s Business Planning process which runs annually. This process operates within a comprehensive framework where all inputs, including costs and capital



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requirements, are generated by the operation, and reviewed at a regional and corporate level within the Company, thereby providing confidence in the estimates.

A group wide Mineral Resource to production reconciliation system is also in place whereby the Mineral Resource mined each month is reconciled all the way to the produced gold doré. Oversight for this is handled at the group level. A comprehensive sample and assay QAQC process is in place and our laboratories are inspected frequently by onsite teams and on an on-needs basis by the Group sampling specialist.


MINERAL RESOURCE AND MINERAL RESERVE INDIVIDUAL PROPERTY DISCLOSURE
For more information about AngloGold Ashanti’s mines, including a summary of the company’s mining rights and licences refer to “Item 4B: Business Overview—The Regulatory Environment Enabling AngloGold Ashanti to Mine”. For detailed information about AngloGold Ashanti’s mines, including the mining rights and licences refer to the Technical Report Summary on each individual property, filed as an Exhibit of this annual report on Form 20-F.

AngloGold Ashanti have examined material properties with the following key considerations and have decided to report all of its operations in the Individual Property Disclosure for 2021 based on the following:
•First time reporting;
•The consideration of both quantitative and qualitative factors, assessed in the context of the registrant’s overall business and financial condition; 
•Aggregate mining operations on all of its mining properties (regardless of the stage of the mining property, and size or type of commodity produced); and 
•Include, for each property (as applicable), all related activities from exploration through extraction. 

AngloGold Ashanti’s operating mines are all accessible by road, although for some, personnel access is better achieved by air.

Our exploration programmes are based on consistent standards and processes across the AngloGold Ashanti portfolio and are guided by peer review. Part of AngloGold Ashanti investment strategy is focused on exploration drilling and Mineral Reserve development to grow the Mineral Resource and by converting these, we allow for expansion of the Mineral Reserve. The process involves identifying the best group of drill targets and prioritising those that have the highest potential for success to be advanced first. Greenfields exploration aims to discover large, high-value Mineral Resource, which will eventually lead to the development of new gold mines. Brownfields exploration focuses on delivering value through accretive additions to the Mineral at existing mines as well as new discoveries in defined areas around operations.

This report is not being submitted in support of the disclosure of exploration results and therefore no disclosure of drilling or sample results is provided. AngloGold Ashanti has elected not to provide drilling results for its operating mines as drilling at our Brownfields operations is generally to provide incremental additions, or conversions to already reported Mineral Resource and therefore they are not seen as material. While drilling at our Brownfields operations increases confidence in our Mineral Resource as well as adds LOM extensions, the incremental additions that occur on a yearly basis are not material to that operation or the company as a whole. In cases where the drilling projects are supporting a non-sustaining addition, these projects are commented on. In our major greenfields projects if any single drill result is considered material and may change the reported Mineral Resource significantly then it is reported.


AFRICA
AngloGold Ashanti has five mining operations within the Africa region:
•Kibali in the DRC, a joint venture (“JV”) with Barrick and Société Minère de Kilo-Moto (“SOKIMO”), the state-owned gold mining company
•Iduapriem in Ghana
•Obuasi in Ghana, currently in a redevelopment phase
•Siguiri in Guinea, with AngloGold Ashanti holding 85% ownership, and the remaining 15% owned by the government of Guinea
•Geita in Tanzania

Mining is from both open pit and underground, with AGA Mineração CuiabáObuasi being an underground mine, Iduapriem and LamegoSiguiri being undergroundopen pit mines, and Cerro Vanguardia, Serra GrandeKibali and AGA Mineração Córrego do SítioGeita being a combination of open pit and underground mines.





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DRC
Kibali, one of the largest gold mines in Africa, is situated in the DRC, adjacent to the town of Doko and 210km from Arua on the Ugandan border. Kibali is co-owned by AngloGold Ashanti (45%), Barrick (45%) following its merger with Randgold Resources Limited (“Randgold”), and SOKIMO (10%), a state-owned gold mining company. SOKIMO is wholly owned by the DRC government with the shareholding held by the Minister of Portfolio of the DRC.

The consolidated lease is made up of ten mining concessions. The metallurgical plant comprises a twin-circuit sulphide and oxide plant with conventional carbon-in-leach (“CIL”), including gravity recovery as well as a float and ultra-fine grind circuit. Barrick operates the mine which comprises both open pit and underground operations.

KIBALI

Property description
Kibali is a gold mining, milling and exploration project. Operations currently focus on open pit and underground mining. Development of the underground mine commenced in 2013 and production of the underground ramped up to 3.8Mt in 2021. Initial production was via a twin decline from surface. From 2018 onwards, the majority of ore was hoisted up the shaft. The decline is used to haul some of the shallower zones and to supplement shaft haulage.

Kibali is owned by Kibali Goldmines SA which is a joint venture company between Barrick (45%), AngloGold Ashanti (45%) and SOKIMO (10%).

The mine was originally developed and operated by Randgold. Since Randgold and Barrick merged in 2019, Barrick is now the operator at Kibali for both exploration and mining. Kibali is currently a production stage property.

Location
Kibali is located in the northeastern part of the DRC near the international borders with Uganda and South Sudan. The mine is located adjacent to the village of Doko, which is located to the west of the lease area. Kibali is approximately 210km by road from Arua and immediately north of the district capital of Watsa. The operational area falls within the administrative territory of Watsa in Haut-Uélé province.

Geology
The gold deposits at Kibali are largely hosted in siliciclastic rocks, banded iron formations (“BIFs”), and cherts that were metamorphosed under greenschist facies conditions, situated along a curvilinear zone 20 km long and up to one km in width, known as the KZ Structure. Gold mineralisation is concentrated in gently NE to NNE-plunging fold axes whose orientations are generally parallel with a prominent lineation in the mineralised rocks. The mineralised deposits of the Kibali district are associated with halos of quartz, ankerite, and sericite (ACSA-A) alteration that extend for tens to hundreds of metres into the adjacent rocks. Areas of economic mineralisation are defined where the project scale ACSA-A alteration is locally overprinted by the ankerite-siderite, pyrite alteration assemblage (ACSA-B) that hosts the gold mineralisation. The gold-bearing sulphides consist of disseminated pyrite, minor pyrrhotite, and arsenopyrite. The auriferous pyrite occurs as both salt and pepper disseminated fine grains and bleb-like clusters of disseminated grains.

History
On 15 October 2009, AngloGold Ashanti acquired a 50% indirect interest in Moto Goldmines Limited through a JV with Randgold, with Moto holding a 70% stake in Kibali and the balance (30%) being held by the DRC parastatal, SOKIMO. On 21 December 2009, Randgold and AngloGold Ashanti increased their JV interest in Kibali to 90%, while SOKIMO retained a 10% holding. On 2 January 2019, Randgold merged with Barrick, and the JV is now with the combined company, trading as Barrick.

The first gold was poured in September 2013 from the open pit operations and development of the underground mine commenced in the same year. First underground ore from development was also mined in 2013 and stoping began in 2015. Initial production was truck hauled by a twin decline to surface. In 2017, the haulage shaft (740m deep) and materials handling system were commissioned.

Legal aspects and tenure
Refer to “Item 4B: Business Overview—The Regulatory Environment Enabling AngloGold Ashanti to Mine—Africa Region—Democratic Republic of the Congo (DRC)—AngloGold Ashanti’s rights and permits”.






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Mining method
The operation comprises both open pit and underground mining. The open pit mining is carried out using conventional drill, blast, load and haul surface mining methods. The mining is conducted by a contractor, Kibali Mining Services, a local subsidiary of DTP Terrassement, using either free-dig or drill and blast.

For the underground operation, longitudinal, transverse primary or secondary stoping and advancing face stoping methods with paste backfill are used as the mining methods.

Operational infrastructure
Infrastructure in the DRC is generally poor as a result of limited investment in maintenance, upgrades and extensions of the road networks established during colonial times. The mine site is located within 160km of the border with Uganda and all transport links take place through Uganda to Kenya or Tanzania. Surface infrastructure associated with the overall Kibali operation includes a processing plant, tailings storage facility (TSF), camp, airstrip, workshops and offices. Power to the mine is self-generated by a combination of hydroelectric and diesel generators.

The Property, Plant, and Equipment as of the end of December 2021 including lease assets, buildings & mine infrastructure, mining assets, mineral rights and dumps, decommissioning assets, capitalised exploration costs and deferred stripping had a carrying value of $981m (reported as attributable - 45% owned by AngloGold Ashanti).

Mineral processing
The current processing plant can treat both oxide and fresh sulphide material and uses flotation with ultra-fine grind of the flotation concentrate, a treatment that is required for the sulphide ore type before leaching. Kibali has a processing operation capable of producing an average of 600koz of gold per annum designed to treat 7.2Mtpa but ongoing improvements have achieved performance beyond the design capacity successfully since 2017.

Qualified Persons
KibaliQualified PersonProfessional OrganisationMembership numberRelevant Years ExperienceQualification
Mineral ResourceRichard PeattieAusIMM30102925 yearsMPhil Mineral Resource Evaluation (University of Queensland)
Mineral ReserveRomulo SanhuezaAusIMM21179424 yearsBSc Eng (Mining)

Exploration
Refer to “Item 4B: Business Overview—Exploration review”.

Mineral Resource
Refer to Table 1a to Paragraph (b) prepared in accordance with Regulation S-K 1300 (§ 229.1303 (Item 1303)) that summarises the gold Mineral Resource (exclusive of Mineral Reserve) for Kibali at the end of the Fiscal Year ended 31 December 2021 based on $1,500/oz. The Mineral Resource is reported for the first time under Regulation S-K 1300 and thus no net difference can be reported.

Refer to the Key Parameters under Material Assumptions for additional information on cut-off grades and metallurgical recovery. For additional information, see the Technical Report Summary on each individual property, filed as an Exhibit of this annual report on Form 20-F.

Material Assumptions for the Mineral Resource

Key Parameters
KibaliUnitOpen Pit
Costs
Waste cost$/tonne mined
2.92-3.09(1)
Extra Ore Cost – Grade Control + Ore – Rehandle + Overhaul$/tonne mined1.27 
Grade Control cost$/tonne mined0.75 
Dilution%10
Ore Loss%3
Processing cost$/tonne milled
15.04-17.85(1)
G&A$/tonne milled8.47 
Other Parameters



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Gold Royalties (4.7%)$/oz70.50 
Metallurgical Recovery Factor%MetRF
86.1-90.1(1)
Mineral Resource cut-off gradeg/t
0.6-0.7(1)
Mineral Resource price$/oz1,500 
(1) Vary according to rock type

KibaliUnitUnderground
Costs
Mine Production$/tonne ore mined36.17 
Capital$/tonne ore mined3.97
G&A$/tonne ore milled8.47
Processing cost$/tonne ore milled17.85
Other Parameters
Gold Royalties (4.7%)$/oz70.50
Mining cut-off gradeg/t1.62
Mineral Resource price$/oz1,500 
Metallurgical Recovery Factor%MetRF90

Estimation
Mineral Resource estimation is undertaken by Barrick in-house Qualified Persons or by approved external consultants. The results of both diamond drilling (“DD”) and reverse circulation (“RC”) drilling are used in the estimation process. 3D mineralised envelopes are established using grade and geology, and these are then statistically verified to confirm their validity for use in grade estimation. Appropriate domaining of homogeneous zones is conducted whereby high-grade central core areas are modelled separately from the lower-grade surrounding halos. Volumes are filled with block model cells and interpolated for density, rock type and grade, the latter using ordinary kriging. Grade top cuts and restricted searches are applied to drill hole data to prevent the spread of high-grades during the estimation process. Drill hole spacing is used to guide the Mineral Resource classification. The open pit Mineral Resource is quoted within a limiting shell. The underground Mineral Resource is constrained by the application of optimised mineable Mineral Resource shapes, which applies reasonable mineability constraints including a minimum mining width, a reasonable distance from current or planned development, and a measure of assumed profitability at the related Mineral Resource cut-off grade.

Mineral Reserve
Refer to Table 2ato Paragraph (b) prepared in accordance with Regulation S-K 1300 (§ 229.1303 (Item 1303)) that summarises the gold Mineral Reserve for Kibali at the end of the Fiscal Year ended 31 December 2021 based on $1,200/oz.

Refer to the Modifying Factors and price estimates under Material Assumptions for additional information on cut-off grades and metallurgical recovery. For additional information, see the Technical Report Summary on each individual property, filed as an Exhibit of this annual report on Form 20-F.

Year on year changes in Mineral Reserve - Moz
as at 31 December 2021Kibali
CategoryProvenProbableTotal
Previous Year1.272 2.974 4.247 
Depletion(0.410)— (0.410)
Exploration0.852 (0.485)0.367 
Methodology— — — 
Price0.039 0.105 0.144 
Cost— — — 
Geotechnical0.002 — 0.002 
Metallurgical— — — 
Operational— — — 
Acquisition / Disposal— — — 
Other(0.018)— (0.018)



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Current Year1.737 2.595 4.331 
Net Difference0.464 (0.380)0.085 
% Difference36 (13)2 

The increase in Mineral Reserve was primarily as a result of the conversion of the 3000 and 9000 lode extensions in the KCD underground and the addition of the Oere pit and growth in the Pamao due to exploration successes. The price used for pit optimisation at Pakaka and Gorumbwa also changed from $1,000/oz to $1,200/oz which contributed to the increase seen.

Material Assumptions for the Mineral Reserve

Modifying factors and price estimates
as at 31 December 2021Kibali
Primary Commodity Price$/oz1,200 
Cut-off gradeg/t
1.5(2); 1.76(4); 2.02(3)
Stoping widthcm
2990(3)
Dilution%
4.7(3); 10(2)
Mining Recovery Factor%MRF based on tonnes
91.6(3); 97(2)
Mine Call Factor%MCF97
Metallurgical Recovery Factor%MetRF
89-90(1)
(1) Vary according to rock type (2) Open pit (3) Underground (4) Stockpile

Estimation
The open pit Mineral Reserve shell optimisations were run on the Mineral Resource models. The process incorporated the mining layout, operating factors, stripping ratio, relevant cut-off grades and modifying factors for reporting the Mineral Reserve. An open pit underground interface was set at 5,685 metres relative level (“mRL”) between the KCD open pit and underground mine.

A cut-off grade analysis at $1,200/oz was used to determine a cut-off grade of 2.02g/t for the underground mine. Longitudinal and transverse longhole open stoping methods with paste backfill are the current preferred mining methods. Underground stope designs were updated from the previously reported Mineral Reserve using the latest Mineral Resource models. Modifying factors for planned and unplanned rock dilution, backfill dilution and ore loss were applied to obtain the reported Mineral Reserve.

Metallurgical, environmental, social, legal, marketing and economic factors were adequately considered in the Kibali Feasibility Study (“FS”) and have been updated as the project has developed.

Conclusion
There are no known significant risks or uncertainties that will impact the Mineral Resource and Mineral Reserve estimates.

An independent external review of the Mineral Resource and Mineral Reserve was undertaken in 2021 by RSC Mining and Mineral Exploration on behalf of the managing partner Barrick and found no significant flaws.

Map showing Kibali planned infrastructure and licences
Map showing Kibali infrastructure and licences, with the total mining lease area insert shown in the top right corner. The coordinates of the mine, as represented by the plant, are depicted on the map and are in the UTM coordinate system.





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GHANA
AngloGold Ashanti has two mines in Ghana. Obuasi and Iduapriem are both wholly owned and operated by AngloGold Ashanti.

Obuasi, currently in a redevelopment phase, is an underground mine operating at depths of up to 1,500m with a continuous history of mining dating back to the 1890s and Iduapriem, an open pit mine.

Obuasi is located in the Ashanti region of southern Ghana, approximately 60km south of Kumasi. Mining was temporarily suspended at the end of 2014 while a series of economic studies progressed. Obuasi underground development restarted in the first half of 2019, with the first gold produced in December 2019. The operations' ramp up to 4,000tpd of ore tonnes mined was delayed by the temporary stoppage of underground activities after a fall of ground incident in May 2021. Production remained suspended for several months to allow for reviews and investigations, but slowly resumed in the latter part of 2021.

Iduapriem is located in western Ghana, some 85km from the coast and south of Obuasi, near the town of Tarkwa.

IDUAPRIEM

Property description
Iduapriem is owned and operated by AngloGold Ashanti (Iduapriem) Limited, a company registered in Ghana. This is ultimately held by AngloGold Ashanti (Ghana) Limited (“AAGL”) which also operates the Obuasi Mine, and is also registered in Ghana. AAGL through successive hierarchal holdings is 100% held by the AngloGold Ashanti parent company. It is a multiple open pit operation that currently sources ore from the Block 3W, Ajopa, and Blocks 7 and 8 pits. More recently the Block 5 pit was re-instated in the mining plan. The property is currently in a production stage.

Location
The mine is located in the western region of Ghana, some 70km north of the coastal city of Takoradi and approximately 10km southwest of the town of Tarkwa. Iduapriem Mine is bordered to the north by Gold Fields Ghana Limited (Tarkwa Mine) and to the east by the Ghana Manganese Company Limited (a manganese mine in existence since the 1920s).

Geology
Iduapriem is located within the Tarkwaian Group which forms part of the West African Craton that is covered to a large extent by metavolcanics and metasediments of the Birimian Supergroup. In Ghana, the Birimian terrane consists of northeast-southwest trending volcanic belts separated by basins, and the Tarkwaian Group was deposited in these basins as shallow water deltaic sediments. The Tarkwaian lithologies are considered to represent the erosion products that accumulated following uplift and deformation of the underlying Birimian rocks during the Eburnean orogeny. The basins (grabens) are believed to have formed as a result of rifting, preferentially in the central parts of the Birimian volcanic belts. The Tarkwaian Group consists of a thick sequence of clastic metasedimentary rocks that have undergone low-grade regional metamorphism.

There are four recognised conglomerate reefs namely A, B, C, and D which are equivalent to the Tarkwaian Sub-basal, Basal (or Main), Middle (or West), and Breccia Reefs respectively. The B and C reefs are oligomictic, and consist of well-sorted conglomerates and was mined underground in some areas more than a century ago. The A and D reefs have a lower gold tenor and are polymictic containing both well-rounded and angular fragments. Gold is found within the matrix that binds the pebbles together. The gold content is a function of the size and amount (packing) of quartz pebbles present within a conglomeratic unit - more pebbles present suggests more gold. The gold is fine-grained, particulate, and free-milling (i.e. not locked up with quartz or iron oxides). Mineralogical studies indicate that the grain size of native gold particles ranges between 2 and 500 microns (0.002 to 0.5mm) and averages 130 microns (0.13mm). The thickness of the main mineralised B and C reefs are approximately 15m and 6m respectively. The mineralised sequence dips at angles varying from steep and sub-vertical, at Blocks 1 and 2, to steep (70° to 80° north dipping) towards Block 3 East. The dip continues to be shallower at Block 3 West (50°), through Blocks 4 and 5 (45°) to become 35° at Block 7 South and 30° at Block 8. At Ajopa, the average dip is 50° to 60°. At Block 7 and 8, the western limb of the syncline extends over 4km on the property, with the eastern limb reaching the surface just beyond the eastern boundary of the concession. The western and the eastern limbs outcrop about 4km apart with the mineralised horizons buried some 400m below the surface at the centre of the syncline.

History
A FS was completed in 1990 and in October 1991, the then owners, Golden Shamrock Limited (“Golden Shamrock”) began construction of a 1.36Mtpa semi-autogenous milling circuit and carbon-in-pulp (“CIP”) plant. Mining



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commenced in August 1992 with the first gold pour achieved in September of that year. Golden Shamrock was acquired by Ashanti Goldfields Company Limited (“Ashanti”) in 1996. In 2000, a portion of the non-operational Teberebie Goldfields Limited company (a subsidiary of Pioneer Goldfields Limited) was purchased resulting in an increased Mineral Reserve and LOM. In 2002, Ashanti upgraded the plant capacity to 4Mtpa, and in 2004 AngloGold merged with Ashanti to become AngloGold Ashanti. In 2009 the plant capacity was further extended to the current 5.2Mtpa. The Iduapriem heap leach started in 1996 and continued until 2006 when the low-grade oxide material was depleted. Teberebie Goldfields had started heap leaching from the onset in 1992. After the acquisition, Ashanti continued the Teberebie heap leach, but it was closed down in 2006 when low-grade oxide was depleted.

Legal aspects and tenure
Refer to “Item 4B: Business Overview—The Regulatory Environment Enabling AngloGold Ashanti to Mine—Africa Region—Ghana—AngloGold Ashanti’s rights and permits”.

Mining method
Iduapriem Mine is an open pit mine which makes use of the mining contractor, AMAX Mining Services. It uses conventional drill and blast, with truck and excavator load and haul.

Operational infrastructure
Surface infrastructure associated with Iduapriem’s operation includes a primary crusher, overland conveyor, CIL processing plant next to the main office building, a TSF and 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 Property, Plant, and Equipment as of the end of December 2021 including lease assets, buildings & mine infrastructure, mining assets, capitalised exploration costs, decommissioning assets, assets under construction and deferred stripping had a carrying value of $273m.

Mineral processing
The current processing plant treats free-milling material from open-cast mining, by a conventional crush with a semi-autogenous ball milling circuit and cyanide leach. Iduapriem operates a two-stage crushing circuit consisting of a 54-75 primary gyratory crusher and two GP550 gyratory crushers for secondary crushing. The Iduapriem treatment plant has two semi-autogeneous grinding mills (“SAG mills”) and two ball mills which run in two parallel circuits, each with a SAG mill and a ball mill.

Qualified Persons
IduapriemQualified PersonProfessional OrganisationMembership numberRelevant Years ExperienceQualification
Mineral ResourceCharles Kusi-ManuAusIMM20523831 yearsDip (Geological Engineering), MSc, MBA, Postgraduate Certificate (Geostatistics)
Mineral ReserveMashudu Justice DavhanaECSA2009005021 yearsBSc Hons (Mining Engineering)

Exploration
Refer to “Item 4B: Business Overview—Exploration review”.

Mineral Resource:
Refer to Table 1a to Paragraph (b) prepared in accordance with Regulation S-K 1300 (§ 229.1303 (Item 1303)) that summarises the gold Mineral Resource (exclusive of Mineral Reserve) for Iduapriem at the end of the Fiscal Year ended 31 December 2021 based on $1,500/oz. The Mineral Resource is reported for the first time under Regulation S-K 1300 and thus no net difference can be reported.

Refer to the Key Parameters under Material Assumptions for additional information on cut-off grades and metallurgical recovery. For additional information, see the Technical Report Summary on each individual property, filed as an Exhibit of this annual report on Form 20-F.







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Material Assumptions for the Mineral Resource

Key Parameters
IduapriemUnitOpen Pit
Costs
Ore mining cost$/tonne mined
1.96-2.41(1)
Waste mining cost$/tonne mined
1.96-2.41(1)
Processing cost$/tonne treated15.24
G&A$/tonne treated6.75
Other Parameters
Metallurgical Recovery Factor%MetRF95.85
Slope anglesdegree
38-62.5(1)
Mineral Resource cut-off gradeg/t
0.45-0.50(1)
Mineral Resource price$/oz1,500 
(1) Vary according to area

Estimation
The geological model for each orebody comprises 3D wireframes of the faults and of the various conglomerate reefs that host the gold mineralisation. In some cases, late barren dolerite intrusions are also modeled as 3D wireframes. The interpretations are completed using geological mapping and drill hole grades, lithology logs and structural measurements.

The drill samples are composited to 1m intervals honouring the geological boundaries, as 1m is the prevailing length of sampling. Grade capping is applied to control the influence of extreme values within the reefs. The capping is kept to a minimum, generally not exceeding 0.5% of the samples within each estimation domain. The various sub-units within the conglomerate reefs are treated as separate estimation domains. Semi-variograms are modelled from the composited samples of each estimation domain. The grade estimation is done by ordinary kriging. The estimation panel block sizes for ordinary kriging are between 20 x 20 x 24m to 25 x 25 x 24m to optimally suit the sampling grid used in the delineation of the Indicated Mineral Resource. Sub-celling of 2.5 x 2.5 x 1m to 2.5 x 2.5 x 3m is used to ensure the geological model is captured in the block model with sufficient resolution. Search parameters are optimised for each domain to ensure robust estimates, with particular attention paid to the reduction of negative kriging weights, and improvement in the slope of regression and kriging efficiency. The maximum distance of extrapolation does not exceed half of the variogram range for each estimation domain.

Mineral Reserve
Refer to Table 2ato Paragraph (b) prepared in accordance with Regulation S-K 1300 (§ 229.1303 (Item 1303)) that summarises the gold Mineral Reserve for Iduapriem at the end of the Fiscal Year ended 31 December 2021 based on $1,200/oz.

Refer to the Modifying Factors and price estimates under Material Assumptions for additional information on cut-off grades and metallurgical recovery. For additional information, see the Technical Report Summary on each individual property, filed as an Exhibit of this annual report on Form 20-F.

Year on year changes in Mineral Reserve - Moz
as at 31 December 2021Iduapriem
CategoryProvenProbableTotal
Previous Year0.287 1.620 1.907 
Depletion(0.085)(0.131)(0.216)
Exploration— 0.216 0.216 
Methodology(0.162)— (0.162)
Price— — — 
Cost— 0.708 0.708 
Geotechnical— — — 
Metallurgical— — — 
Operational0.007 0.137 0.144 
Acquisition / Disposal— — — 



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Other— — — 
Current Year0.047 2.550 2.597 
Net Difference(0.240)0.930 0.690 
% Difference(84)57 36 

The net increase is primarily due to the decrease in costs resulting from signing a new mining contract and operational changes.

Material Assumptions for the Mineral Reserve

Modifying factors and price estimates
as at 31 December 2021Iduapriem
Primary Commodity Price$/oz1200
Cut-off gradeg/t
0.6-0.8(3); 0.8-0.85(2)
Resource Modification Factor%RMF based on tonnes100
Resource Modification Factor%RMF based on g/t100
Mining Recovery Factor%MRF based on tonnes
94-100(1)
Mining Recovery Factor%MRF based on g/t
96-100(1)
Mine Call Factor%MCF100
Metallurgical Recovery Factor%MetRF
93(3)-95.85(2)
(1) Vary according to area (2) Open pit (3) Stockpile

Estimation
The 3D Mineral Resource models are used as the basis for the Mineral Reserve. An ore envelope is developed using the Mineral Resource block model, geological information and the relevant cut-off grade, which is then used for mine design. An appropriate mining layout is utilised and incorporates mining extraction losses and dilution factors.

The Mineral Reserve is estimated within mine designs, using modifying factors based on actual mining and detailed analysis of cut-off grade, geotechnical, environmental, productivity considerations and the requirements of the mining fleet. The upper portions of the Ajopa deposit have been discounted for the estimated depletion by artisanal miners. This discount factor has been derived from observation and estimates based on the Mineral Resource model.

Conclusion
Power reliability, slope or high wall stability (rockfall potential), and inrush or inundation (flooding of pits, TSFs, and infrastructure) are considered potential risks or uncertainties in the Mineral Resource and Mineral Reserve estimate. Mitigation plans are in place to manage these risks.

An independent external Mineral Resource and Mineral Reserve audit was undertaken in 2021 by SRK Consulting and found no significant flaws in process or output.

Map showing Iduapriem planned infrastructure and licences: Map showing the location, infrastructure and mining license area for Iduapriem. The coordinates of the mine, as represented by the plant, are depicted on the map and are in the UTM coordinate system.




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109

OBUASI

Property description
Obuasi, currently in a redevelopment phase, is owned and operated by AngloGold Ashanti and is a development stage property. All required mineral rights to the property are held by the company. The mine is an underground operation, and it has been in operation since 1897 (more than 120 years). It has been owned and operated by AngloGold Ashanti since 2004.

Location
Obuasi Gold Mine is located 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 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 significant rationalisation and/or replacement of current infrastructure would be necessary to enable the delivery of better utilisation and productivity metrics.

In 2014, a FS commenced that considered the optimum mining methodology and schedules for the underground mine, based on modern mechanised mining methods and refurbishment of underground, surface and process plant infrastructure. During this time, Obuasi operated in a limited operating phase with underground activities essentially restricted to continued development of the Obuasi deeps decline and underground infill drilling. The limited operating phase was brought to a halt after an incursion by illegal miners on Obuasi's concession in February 2016 at which point the mine was placed under care and maintenance. The study however continued and in 2017, a favorable FS was completed and indicated a strong technical and economical case with an anticipated 20-year mine life. In 2018 approval was received from the AngloGold Ashanti board and the government of Ghana to proceed with the project. The redevelopment project kicked off in 2019.

The operations' ramp up to 4,000tpd of ore tonnes mined was delayed by the temporary stoppage of underground activities after a fall of ground incident in May 2021. Production remained suspended for several months to allow for reviews and investigations, but slowly resumed in the latter part of 2021.

Legal aspects and tenure
Refer to “Item 4B: Business Overview—The Regulatory Environment Enabling AngloGold Ashanti to Mine—Africa Region—Ghana—AngloGold Ashanti’s rights and permits”.

Mining method
Obuasi is an underground operation utilising both vertical shafts and declines as main access routes to the underground workings. The mine has seen extensive historical mining activities with varying applications of different mining methods to date. The current LOM design employs mostly the Long Hole Open Stoping (“LHOS”) mining method for ore extraction. LHOS is a highly selective and productive method of mining that can be employed for



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orebody of varying thicknesses and dips. The three main distinct variations of the LHOS used at Obuasi are Longitudinal Retreat Stoping (“LRS”), Longitudinal Open Stoping (“LOS”) and Transverse Open Stoping (“TOS”). The Blind Upper Stoping (“BUS”) is a form of LRS or TOS used for partial sill pillar recovery.

Operational infrastructure
Existing infrastructure includes a 2.2Mtpa processing plant with flotation and bacterial oxidation (“BIOX”), underground development, hoisting shafts and associated infrastructure, emergency standby power and water reticulation, office complexes, workshops and company housing estates. Power is supplied to the mine by the Volta River Authority and GRIDCo.

The Property, Plant, and Equipment as of the end of December 2021 including buildings & mine infrastructure, mining assets, decommissioning assets and assets under construction had a carrying value of $882m.

Mineral processing
The plant is configured for both conventional and flash flotation and BIOX treatment which is required for the refractory sulphide ore. The gravity gold recovery system is also an integrated system with Knelson concentrators and inline leach reactors.

Qualified Persons
ObuasiQualified PersonProfessional OrganisationMembership numberRelevant Years ExperienceQualification
Mineral ResourceEmmarentia MaritzSACNASP11834518 yearsMSc (Mineral Resource Evaluation)
Mineral ReserveDouglas AtangaAusIMM33439113 yearsBSc (Mining Engineering)

Exploration
Refer to “Item 4B: Business Overview—Exploration review”.

Mineral Resource
Refer to Table 1a to Paragraph (b) prepared in accordance with Regulation S-K 1300 (§ 229.1303 (Item 1303)) that summarises the gold Mineral Resource (exclusive of Mineral Reserve) for Obuasi at the end of the Fiscal Year ended 31 December 2021 based on $1,500/oz. The Mineral Resource is reported for the first time under Regulation S-K 1300 and thus no net difference can be reported.

Refer to the Key Parameters under Material Assumptions for additional information on cut-off grades and metallurgical recovery. For additional information, see the Technical Report Summary on each individual property, filed as an Exhibit of this annual report on Form 20-F.

Material Assumptions for the Mineral Resource

Key Parameters
ObuasiUnitUnderground
Costs
Mining cost$/tonne mined
59.52-98.01(1)
Processing cost$/tonne treated42.06
G&A$/tonne treated22.92
Other Parameters
Royalties%3.0
MSO optimising cut-offg/t
3.15-4.0(1)
Mineral Resource cut-off gradeg/t
3.15-4.0(1)
Mineral Resource price$/oz1,500 
Metallurgical Recovery Factor%MetRF87
(1) Vary according to area

Estimation
The estimation technique is ordinary kriging and the primary estimation unit size is 20m by 5m by 15m. This estimation unit size is representative of the underground mining units and is considered appropriate given the style of mineralisation and mining methods. Compositing by length is employed and the influence of extreme grades are



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restricted by grade capping. Sample spacing is highly variable across the deposit and ranges from 10m by 10m (for grade control areas) up to 200m by 200m (for exploration targets). However, for the Mineral Resource, the maximum extrapolation from data points is 100m. Any areas beyond this, are considered to be upside potential rather than Mineral Resource.

Mineral Reserve
Refer to Table 2ato Paragraph (b) prepared in accordance with Regulation S-K 1300 (§ 229.1303 (Item 1303)) that summarises the gold Mineral Reserve for Obuasi at the end of the Fiscal Year ended 31 December 2021 based on $1,200/oz.

Refer to the Modifying Factors and price estimates under Material Assumptions for additional information on cut-off grades and metallurgical recovery. For additional information, see the Technical Report Summary on each individual property, filed as an Exhibit of this annual report on Form 20-F.

Year on year changes in Mineral Reserve - Moz
as at 31 December 2021Obuasi
CategoryProvenProbableTotal
Previous Year— 8.733 8.733 
Depletion— (0.086)(0.086)
Exploration— — — 
Methodology1.186 0.010 1.196 
Price— — — 
Cost— — — 
Geotechnical— — — 
Metallurgical— — — 
Operational— (1.580)(1.580)
Acquisition / Disposal— — — 
Other— — — 
Current Year1.186 7.078 8.263 
Net Difference1.186 (1.655)(0.470)
% Difference100 (19)(5)

Operational changes were primarily associated with design reviews in historically mined areas to eliminate low confidence stopes resulted in a net decrease. This was offset partially by methodology change due to geological re-interpretation and revision of estimation parameters in Adansi resulting in addition to the Mineral Reserve.

Material Assumptions for the Mineral Reserve

Modifying factors and price estimates
as at 31 December 2021Obuasi
Primary Commodity Price$/oz1200
Cut-off gradeg/t
3.82-5.01(1)
Dilution%
12-17(1)
Mining Recovery Factor%MRF based on tonnes
95-98(1)
Mining Recovery Factor%MRF based on g/t100
Mine Call Factor%MCF100
Metallurgical Recovery Factor%MetRF87
(1) Vary according to area

Estimation
The Mineral Reserve estimation considers mining criteria for the economic cut-off grade and minimum mining width for the anticipated mining method. All design and scheduling work is undertaken to an applicable level of detail by mine planning engineers in consultation with other technical specialists using Datamine Studio UGTM and Enhanced Production SchedulerTM (“EPS”) software.




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The cut-off grade parameters used include projected mining, processing, and general and administrative costs. A Mineral Reserve gold price of $1,200/oz was used. The cut-off grade also considers the metallurgical recovery factor (87% applied for all blocks), mining dilution and recovery, and tonne-kilometer haulage cost from all blocks as well as the fill type.

Stopes are designed using the Datamine Mineable Shape OptimiserTM (“MSO”) Software where the outputs are further optimised by manual edits. The stope shapes are generated at section internals of 15 to 20m based on geotechnical guidance for each block. The MSO allows the class field to be assigned to each stope generated. The mine design is reviewed taking into consideration the updated stope shapes, existing development and future infrastructure need. A LOM plan is generated which considers fleet and infrastructure capacities. All mining blocks are designed for the LHOS mining method. The Obuasi Mineral Reserve is reported from the LOM plan and only includes Measured and Indicated Mineral Resource.

Conclusion
All available, appropriate data has been used for Mineral Resource estimation. This includes historical geological and survey data collected over several decades prior to the merger of AngloGold and Ashanti in 2004. The risk or uncertainty in the estimates associated with the inclusion of the historical geological data has been mitigated by a comprehensive data validation project completed by a team of geologists between 2015 and 2018, which included the re-logging of all available holes below 50 Level. With regards to the historical survey data, given the mine's long history, there is uncertainty in the reliability of some of the previous mining volumes. Certain measures have been taken to lessen this risk including large-scale sterilisations for unreachable or extensively mined areas, or downgrades to the Inferred Mineral Resource category to reflect reduced confidence. However, verification of this historical information is ongoing and there may be additions and subtractions over time as further assessments are made, areas become accessible and more detailed investigations can be undertaken.

An independent external Mineral Resource and Mineral Reserve audit was undertaken in 2021 by SRK Consulting and found no significant flaws in process or output.

Map showing Obuasi planned infrastructure and licences
Map showing the location, infrastructure and mining license area for Obuasi. The coordinates of the mine, as represented by the plant, are depicted on the map and are in the UTM coordinate system.




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au-20211231_g9.jpg



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GUINEA

Siguiri Gold Mine (“Siguiri”) is AngloGold Ashanti’s only operation in the Republic of Guinea. The mine is 85% owned by AngloGold Ashanti and 15% by the government of Guinea. The mine is a conventional open pit operation situated in the Siguiri district in the northeast of Guinea. It lies about 850km north-northeast of the capital city of Conakry and 109km west of the border with Mali by road.

Gold-bearing ore is mined from several pits (generally three pits at any one time). A plant upgrade to process hard rock was completed in 2018 and production ramped up during 2019. In 2020 the mine continued to remove bottlenecks and optimise the plant. The project was closed out early in 2021.

SIGUIRI

Property description
Siguiri, in Guinea, is 85% owned and operated by AngloGold Ashanti and 15% by the government of Guinea. It is an open pit operation with active mining currently occurring largely in Kami, Bidini and Tubani pits in Block 1. In the first quarter of 2021, mining commenced in Block 2, exploiting the newly developed Foulata and Saraya pits. The property is currently in a production stage.

Location
The mine is located approximately 850km north-northeast of Conakry, 25km northwest of the town of Siguiri and 220km southeast of the Malian capital Bamako, near the Malian border.

Geology
Siguiri is situated in the northern part of the Siguiri Basin of Guinea, and is underlain by Lower Proterozoic rocks of the Birimian metasedimentary and volcano-sedimentary formations. Where exposed, the sediments consist of a well-bedded turbiditic sequence of greenschist facies siltstones, sandstones, greywackes and minor conglomerates, with some brecciated and possibly volcanic members. Stratigraphic relationships in the area are however poorly understood due to poor exposure and a thick lateritic duricrust which covers large portions of the lease.

Primary gold mineralisation occurs in all three lithostratigraphic units of the Siguiri region although most of the known mineralisation is found in the central and more competent Fatoya Formation. In some deposits, the mineralisation shows strong lithological control and is preferentially developed in coarser-grained units that have higher fracture or vein densities relative to fine-grained rocks.

The mineralisation dominantly follows sub-vertical north-south thrusts, northeast to southwest dextral shear zones, and west-northwest to east-southeast sinistral faults associated with the main (D2) deformation event. The mineralised veins are remarkable for the relative consistency of their northeast orientation, despite the highly variable orientation of bedding and major structures.

Mineralised veins are more intensely developed along major structural trends with quartz-carbonate-sulphide veining developed along structures. Some of these structures have developed as incipient faults and are represented by discrete stockworks of mineralised quartz-carbonate veins occurring along a trend, instead of being clearly defined continuous structures.

History
First gold mining can be traced back to the first great West African Empire, the Sarakolle Kingdom, but there are no reliable records of pre-western production. The French became involved in the area in the late 19th and early 20th centuries. Between 1931 and 1951, the French reported gold coming out of Siguiri, with figures varying between 1t and 3.8t annually however, little exploration work was completed.

There was a phase of Russian exploration in the area between 1960 and 1963. The Russian work focused on the placer deposits along the major river channels in the area. In 1980, Société Miniere Internationale du Quebéc (“SOMIQ”) gained the exploration rights for Siguiri and Mandiana. SOMIQ focused its work on the Koron and Didi areas. The Chevaning Mining Company Limited was then created to undertake a detailed economic evaluation of the prospect, with more intensive work beginning in the late 1980s.

Société Aurifere de Guinea (“SAG”) took over from its predecessors and continued work on the placer deposits. Production on the Koron placer reached a peak in 1992 with 1.1t gold being produced, although due to a number of difficulties, the mine was shut down later that year.



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In the mid-1990s, Golden Shamrock acquired and operated the project as an open pit and heap leach. In October 1996, Golden Shamrock was acquired by Ashanti Goldfields Corporation which operated Siguiri as a heap leach until 2004. Ashanti merged with AngloGold in 2004 to become AngloGold Ashanti. AngloGold Ashanti completed the design and construction of the 8.5Mtpa saprolite soft rock treatment plant and commissioned it in 2005. The capacity was later increased to 12Mtpa.

A Siguiri combination plant FS based on the requirement to process fresh and transitional material in combination with existing oxide material was completed in 2015. The combination plant conversion project began in 2017. The plant conversion allows the mine to treat 6Mtpa of sulphide ore and 6Mtpa of oxide ore. Construction was completed in 2018 and further optimisation and debottlenecking of the plant continues.

Legal aspects and tenure
Refer to “Item 4B: Business Overview—The Regulatory Environment Enabling AngloGold Ashanti to Mine—Africa Region—Guinea—AngloGold Ashanti’s rights and permits”.

Mining method
Siguiri is currently a multi-pit fresh rock and oxide gold mining operation, mined by a contract miner, Mota-Engil. The mining method is selective conventional mining using excavators and trucks on 3m high flitches. Three Caterpillar 6020B excavators are the main loading equipment matched with Caterpillar 777G dump trucks. In some deposits, a selective mining unit (“SMU”) of 10 x 10 x 3m has been defined based on historical grade control, the deposit type, and the mining equipment used to simulate the expected mining dilution and ore losses.

Operational infrastructure
Siguiri includes a processing plant, a TSF, and other infrastructures such as a mine village, a water supply system, roads, power supply by on-site generators, and communications systems. Additional infrastructure includes on-site offices, accommodation, and workshops to support remote mining. Power to the mine is self-generated using Heavy Fuel Oil.

The town of Siguiri can be accessed via a small airfield and a well-paved road that connects Siguiri to Bamako in the north and Kouroussa in the south. Access to the mine via roads and to Siguiri is easily passable through most of the year, although some secondary roads are seasonal with limited access during the wet season.

The Property, Plant, and Equipment as of the end of December 2021 including lease assets, buildings & mine infrastructure, capitalised exploration costs, mining assets and assets under construction had a carrying value of $216m (reported as 100%, 85% owned by AngloGold Ashanti).

Mineral processing
The current processing plant treats both oxide and fresh sulphide material via a hybrid CIL circuit plant converted from CIP in 2018. The plant is capable of processing blends of hard and soft ore post commissioning a new ball mill and three-stage crushing plant in 2019. Unit operations include comminution, leaching, carbon adsorption and desorption, smelting, and tailings disposal. Further modification of three leach tanks to CIL tanks was done in the fourth quarter of 2020 giving a total of seven tanks in the hybrid circuit.

The processing plant conventional mining was designed to process 12Mtpa but is forecast to treat 11.6Mtpa in the 2022 business plan.

Qualified Persons
SiguiriQualified PersonProfessional OrganisationMembership numberRelevant Years ExperienceQualification
Mineral ResourceAdama SissokoAusIMM22483528 yearsBSc Hons (Geology), GDE (Mining Engineering)
Mineral ReserveDesiderius KamugishaAusIMM22718120 yearsBSc (Mining Engineering)

Exploration
Refer to “Item 4B: Business Overview—Exploration review”.





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Mineral Resource
Refer to Table 1a to Paragraph (b) prepared in accordance with Regulation S-K 1300 (§ 229.1303 (Item 1303)) that summarises the gold Mineral Resource (exclusive of Mineral Reserve) for Siguiri at the end of the Fiscal Year ended 31 December 2021 based on $1,500/oz. The Mineral Resource is reported for the first time under Regulation S-K 1300 and thus no net difference can be reported.

Refer to the Key Parameters under Material Assumptionsfor additional information on cut-off grades and metallurgical recovery. For additional information, see the Technical Report Summary on each individual property, filed as an Exhibit of this annual report on Form 20-F.

Material Assumptions for the Mineral Resource

Key Parameters
SiguiriUnitOpen Pit
Costs
Ore mining cost$/tonne mined
2.39-5.83(1)
Waste mining cost$/tonne mined
1.65-3.74(1)
Processing cost$/tonne treated
10.72-13.17(1)
G&A$/tonne treated7.28
Rehandling Cost$/tonne treated
0.35-11.43(1)
Other Parameters
Metallurgical Recovery Factor%MetRF
80.5-88.0(1)
Slope anglesdegree
25-55(1)
Mineral Resource cut-off gradeg/t
0.4-0.6(1)
Mineral Resource price$/oz1,500 
(1) Vary according to rock type / area

Estimation
Mineral Resource definition drilling is done with aircore drilling (“AC”), RC and DD. All available geological drill hole information is validated for used in the Mineral Resource models and together with the local geology of the deposit, an understanding of grade variability is used to categorise the drill hole information into appropriate estimation domains. Detailed statistical analyses are conducted on each of these domains which allows for the identification of high-grade outlier values which are capped, with some models post processed using LUC.

The Mineral Resource model is estimated using ordinary kriging into a 3D block model. Geological interpretation is based on geological drill hole data. The dimensions of these Mineral Resource blocks range from 10 x 10 x 2.5m to 50 x 25 x 6m block sizes, guided by the shape of the deposit and the drilling density. The Mineral Resource is declared within an optimised Mineral Resource pit shell using a gold price of $1,500/oz.

Mineral Reserve
Refer to Table 2ato Paragraph (b) prepared in accordance with Regulation S-K 1300 (§ 229.1303 (Item 1303)) that summarises the gold Mineral Reserve for Siguiri at the end of the Fiscal Year ended 31 December 2021 based on $1,200/oz.

Refer to the Modifying Factors and price estimates under Material Assumptions for additional information on cut-off grades and metallurgical recovery. For additional information, see the Technical Report Summary on each individual property, filed as an Exhibit of this annual report on Form 20-F.

Year on year changes in Mineral Reserve - Moz
as at 31 December 2021Siguiri
CategoryProvenProbableTotal
Previous Year0.352 1.540 1.892 
Depletion0.013 (0.293)(0.280)
Exploration— 0.085 0.085 
Methodology— 0.276 0.276 



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Price— — — 
Cost— (0.352)(0.352)
Geotechnical— — — 
Metallurgical— (0.196)(0.196)
Operational— (0.002)(0.002)
Acquisition / Disposal— — — 
Other— 0.218 0.218 
Current Year0.365 1.276 1.641 
Net Difference0.013 (0.264)(0.251)
% Difference4 (17)(13)

The decrease was primarily due to an increase in cost, and a decrease in fresh and transitional metallurgical recoveries. This was partially offset by revised modelling at Kami Mineral Resource and a maiden Kami extension Mineral Reserve.

Material Assumptions for the Mineral Reserve

Modifying factors and price estimates
as at 31 December 2021SiguiriOxideTransitionalSulphideStockpile
Primary Commodity Price$/oz1200120012001200
Cut-off gradeg/t0.65-1.00.8-1.20.8-1.2-
Dilution%16.7-81.521.2-50.933.7-37.3-
Dilutiong/t0.15-0.300.23-0.440.23-0.46-
Resource Modification Factor%RMF based on tonnes100100100100
Resource Modification Factor%RMF based on g/t909090100
Mining Recovery Factor%MRF based on tonnes78.1-89.570.3-88.496.1-98.0100
Mining Recovery Factor%MRF based on g/t98.0-104.6101.5-103.8100.7-101.7100
Mine Call Factor%MCF100100100100
Metallurgical Recovery Factor%MetRF88808085-88

Estimation
The Mineral Resource models for each pit are depleted with surveys of actual mining to the end of September 2021 and forecast depletions to the end of 2021. Costs are assigned on a pit-by-pit basis, reflecting the existing cost structure of the operation. The relevant dilution and ore-loss factors are applied and pit optimisation is then performed.

Conclusion
The favourable conclusion of the Convention de Base negotiation during 2016 and its ratification in 2017 by parliament has significantly reduced the risk or uncertainty of the remaining estimated Mineral Resource and Mineral Reserve not being covered by a valid mining concession. The current mining concession is now confirmed to be valid until 4 August 2022, with a high likelihood of renewal until 2041.

Some significant risks had been identified at combination plant FS stage and continue to be risks that could prevent reasonable prospects for economic extraction of the estimated Mineral Resource and Mineral Reserve. However, mitigation plans are in place to reduce the impact of those risks.

Performance of the combination plant to achieve the required mill throughput and recovery are seen as a risk to the economic extraction of the estimated Mineral Resource and Mineral Reserve until the plant stabilises. There are several action plans in progress to address this.

The reviewing of the modelling methodology for improved consistency within the Mineral Resource models is also in progress.






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Map showing Siguiri planned infrastructure and licences
Map showing the location, infrastructure and mining license area for Siguiri. The coordinates of the mine, as represented by the plant, are depicted on the map and are in the UTM coordinate system.
au-20211231_g10.jpg

TANZANIA

Geita, one of AngloGold Ashanti’s flagship mines, is located in northwestern Tanzania, in the Lake Victoria goldfields of the Mwanza region, about 120km from Mwanza and 4km west of the town of Geita. The Geita gold deposits are mined as a multiple open pit and underground operation, with ore production from Star and Comet, Nyankanga and Geita Hill underground mines, and from Nyamulilima open pit. The mine is currently serviced by a CIL processing plant with an annual capacity of 5.2Mt.

Geita has been an open pit mining operation from 1999, with underground operations commencing at Star and Comet in 2016, at Nyankanga in 2017 and at Geita Hill in 2020. Underground ore is now a significant part of the feed to the plant. The Nyankanga open pit was completed in late 2020, with the new Nyamulilima open pit commencing in April 2021, providing four sources of ore to the Geita processing plant.

GEITA

Property description
Geita Gold Mine (“GGM”) is wholly owned and operated by Geita Gold Mining Limited (“GGML”), a subsidiary of AngloGold Ashanti Limited. GGM currently has three underground mines (Star and Comet, Nyankanga and Geita Hill) and one open pit (Nyamulilima Cuts 1 and 2) in production in 2021. The property is currently in a production stage.

Location
GGM is located approximately 1,200km from the main Tanzanian business centre of Dar es Salaam. It falls within the Lake Zone of northwestern Tanzania, approximately 120km west of Mwanza and 4km west of the town of Geita. The mining lease area falls within the Archaean Sukumaland Greenstone Belt of the Lake Victoria goldfields.



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Geology
GGM is hosted in the Geita Greenstone Belt (“GGB”), which is a northern segment of the Sukumaland Greenstone Belt, located in the northwestern part of the Tanzania Craton and south of Lake Victoria. This Archaean sequence strikes almost east west, extending for about 80km and is up to 20km wide. The GGB sits dominantly within the Nyanzian Supergroup stratigraphy that is sub-divided into the Lower Nyanzian and the Upper Nyanzian groups.

The Lower Nyanzian Group is composed of mafic volcanic units (basalts, pillow basalt, minor gabbro and dolerites). This group of rocks within the GGB is collectively termed the Kiziba Formation. The Upper Nyanzian Group consists of black shales, banded iron formation, clastic sedimentary rock, tuffs, agglomerates and felsic volcaniclastics. The entire package (Nyanzian stratigraphy) is intruded by a variety of mafic to felsic rocks. The supra-crustal package shows variable thickness and is estimated to be more than 500m thick in places, mostly underlain by intrusive complexes.

Deformation in the GGB comprises of early stages of ductile shearing and folding (D1 to D5), with periodic emplacement of large diorite intrusive complexes, sills, and dykes. Later stages of deformation (D6 to D8) involved development of brittle-ductile shear zones, with faults developed in the later stages of deformation, with late emplacement felsic porphyry dykes within the greenstone belt, and granitic intrusions located on the margins of the greenstone belt.

Gold mineralisation occurred 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 successfully transitioned to owner mining and the mining contractor African Underground Mining Services is used at Nyankanga and Geita Hill for underground development and stoping. The underground mining method is a combination of LOS and TOS. Cemented aggregate fill backfill is used at Nyankanga to fill the primary stopes. Ore is



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hauled from the Nyamulilima open pit (22km) and from Star and Comet (17km), Nyankanga (4km) and Geita Hill (2km) underground operations to the central run of mine (“ROM”) pad by the Geita surface mining fleet.

Operational infrastructure
Surface infrastructure associated with the overall Geita operation includes a 5.2Mtpa CIL processing plant, TSF, camp, airstrip, 40MW power plant, open pit and underground workshops and offices, contractor yards, backfill plants and explosives suppliers.

The Property, Plant, and Equipment as of the end of December 2021 including lease assets, buildings & mine infrastructure, mining assets, capitalised exploration costs, decommissioning assets, assets under construction and deferred stripping had a carrying value of $348m.

Mineral processing
Geita’s ore processing method is via conventional CIL process with a throughput capacity of 5.2Mtpa. The circuit contains a primary gyratory crusher, secondary and tertiary crushers, a semi-autogenous mill, a ball mill and 12 leach tanks. This is coupled with a gravity circuit using two Knelson concentrators. In planning, the plant feed blend material, hardness grade, oxide and sulphide content are considered in order to optimise throughput and recovery. Power to the mine is self-generated at Geita’s 40MW power plant using diesel generators.

Qualified Persons
GeitaQualified PersonProfessional OrganisationMembership numberRelevant Years ExperienceQualification
Mineral ResourceDamon ElderAusIMM20824025 yearsBSc Hons (Geology)
Mineral ReserveDuan CampbellECSA20210195319 yearsBEng (Mining)

Exploration
Refer to “Item 4B: Business Overview—Exploration review”.

Mineral Resource
Refer to Table 1a to Paragraph (b) prepared in accordance with Regulation S-K 1300 (§ 229.1303 (Item 1303)) that summarises the gold Mineral Resource (exclusive of Mineral Reserve) for Geita at the end of the Fiscal Year ended 31 December 2021 based on $1,500/oz. The Mineral Resource is reported for the first time under Regulation S-K 1300 and thus no net difference can be reported.

Refer to the Key Parameters under Material Assumptions for additional information on cut-off grade and metallurgical recovery. For additional information, see the Technical Report Summary on each individual property, filed as an Exhibit of this annual report on Form 20-F.

Material Assumptions for the Mineral Resource

Key Parameters
GeitaUnitOpen Pit
Costs
Ore mining cost$/tonne mined2.96
Waste mining cost$/tonne mined2.89
Material handling$/tonne mined3.18
Processing cost$/tonne treated16.9
G&A$/tonne treated9.92
Other Parameters
Metallurgical Recovery Factor%MetRF92
Slope anglesdegree55
Mineral Resource cut-off gradeg/t0.8
Mineral Resource price$/oz1,500 
Royalties%7.3 




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GeitaUnitUnderground
Costs
Production (Mining cost)$/tonne ore mined
28.50-80.93(1)
Mine Services$/tonne ore mined19.51 
Processing cost$/tonne treated
17.81-18.74(2)
Other Parameters
Mineral Resource cut-off gradeg/t
1.69-2.94(2)
Mineral Resource price$/oz1,500 
Metallurgical Recovery Factor%MetRF
78-91(1)
Royalties%7.3 
(1) Mining cost includes backfilling at Nyankanga, and material handling costs (2) Variable according to area
(3) %MetRF - Star and Comet Cut 3, 77.8%, Star and Comet Cut 2, 88.3%, Nyankanga 90.7%, Geita Hill 87.2%

Estimation
For the open pits, mineralisation boundaries for the individual deposits are defined from detailed logging of all geological drill holes. This information is validated and then geological wireframes are interpreted to create a 3D geological model. The geological model is subsequently used in conjunction with an appropriately dimensioned block model. Ordinary kriging is used to interpolate values into block models, and UC and LUC methods are used to generate a recoverable Mineral Resource block model which estimates the proportion of ore that occurs above the Mineral Resource cut-off grade assuming a specified SMU. The open pit Mineral Resource is reported within a $1,500/oz optimised pit shell and above the calculated mineralised waste cut-off grade per pit. Stockpiled material above mineralised waste cut-off grade is included in the Mineral Resource.

For the underground Mineral Resource, the geological model is generated in the same way as for the open pits. However, a high-grade wireframe is delineated within the broader, lower-grade mineralised envelope. In this instance, all geological controls are adhered to when determining this domain. Ordinary kriging models are then constructed within the low- and high-grade domains, and numerous validation exercises are completed to ensure robust estimates are achieved. The underground Mineral Resource is reported inside a MSO volume generated using a unique underground cut-off grade for each deposit. The ultimate open pit designs are used as the limiting boundaries between the open pits and underground during model compilation. The underground stopes and development are evaluated using the ordinary kriging block models and the open pit designs are evaluated using the LUC block models.

Stockpiled material above mineralised waste cut-off grade is included in the Mineral Resource.

Mineral Reserve
Refer to Table 2ato Paragraph (b) prepared in accordance with Regulation S-K 1300 (§ 229.1303 (Item 1303)) that summarises the gold Mineral Reserve for Geita at the end of the Fiscal Year ended 31 December 2021 based on $1,200/oz.

Refer to the Modifying Factors and price estimates under Material Assumptions for additional information on cut-off grades and metallurgical recovery. For additional information, see the Technical Report Summary on each individual property, filed as an Exhibit of this annual report on Form 20-F.

Year on year changes in Mineral Reserve - Moz
as at 31 December 2021Geita
CategoryProvenProbableTotal
Previous Year— 2.337 2.337 
Depletion— (0.508)(0.508)
Exploration— 0.640 0.640 
Methodology— — — 
Price— — — 
Cost— 0.021 0.021 
Geotechnical— — — 
Metallurgical— 0.003 0.003 



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Operational— 0.245 0.245 
Acquisition / Disposal— — — 
Other0.091 (0.184)(0.093)
Current Year0.091 2.554 2.646 
Net Difference0.091 0.218 0.309 
% Difference100 9 13 

The significant increase is mainly due to ongoing exploration drilling success resulting in larger pit designs. The open pit shell and underground stope design changes contributed to an increase of 27% and 3% to the Mineral Reserve respectively.

Material Assumptions for the Mineral Reserve

Modifying factors and price estimates
as at 31 December 2021Geita
Primary Commodity Price$/oz1200
Cut-off gradeg/t
1.20(2)-3.48(3)
Stoping widthcm
450-2500(3)
Dilution%
7.4(2);10-22(3)
Resource Modification Factor%RMF based on tonnes
90(2)-100(3)
Resource Modification Factor%RMF based on g/t
90(2)-100(3)
Mining Recovery Factor%MRF based on tonnes
92-95(1)
Mining Recovery Factor%MRF based on g/t
92-95(1)
Mine Call Factor%MCF99
Metallurgical Recovery Factor%MetRF
77.8-92(1)
(1) Vary according to rock type / area (2) Open pit (3) Underground

Estimation
The Mineral Resource models are used as the basis for Mineral Reserve estimation. Input parameters for estimating the Mineral Reserve include gold price, mining dilution and recovery, geotechnical information, stay in business capital, operating costs, metallurgical recovery, processing capacity and mining equipment capacities.

Appropriate Mineral Reserve cut-off grades are applied and optimised pit shells are generated for the open pit sources. Pit designs are then done on selected shells and signed off by all relevant parties to ensure compliance to specifications. Underground designs are completed and evaluated. These designs are incorporated into the production and treatment scheduling stages to yield ore tonnes and grades. Financial evaluations are completed for production and treatment schedules to check cash flow analysis from the estimated Mineral Reserve.

The Mineral Reserve for Geita operating prospective pits and underground mine areas was estimated using updated economic factors, latest Mineral Resource models, geological, geotechnical, mining engineering and metallurgical parameters. Environmental, sociopolitical, legal and regulatory factors are also considered.

Conclusion
No significant risks or uncertainties were identified that would prevent reasonable prospects of economic extraction of the 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.





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Map showing Geita planned infrastructure and licences
Map showing the location, infrastructure and mining license area for Geita Gold Mine. The coordinates of the mine, as represented by the plant, are depicted on the map and are in the UTM coordinate system.
au-20211231_g11.jpg

AMERICAS

The Americas region incorporates two mining jurisdictions: Brazil and Argentina, and greenfields projects in Colombia and the USA. AngloGold Ashanti has three operations in the Americas, the Cerro Vanguardia Mine in Argentina (AngloGold Ashanti 92.5% and Fomento Minero de Santa Cruz Sociedad del Estado (“Fomicruz SE”) 7.5%), AngloGold Ashanti Córrego do Sítio Mineração operations (referred to as “AGA Mineração”) which includes the Cuiabá, Lamego and Córrego do Sítio (“CdS”) Mines, and Mineração Serra Grande (referred to as “Serra Grande”), both in Brazil.

The projects in Colombia form a significant contribution to AngloGold Ashanti’s Mineral Resource with the three projects: La Colosa, Quebradona and Gramalote (AngloGold Ashanti 50% and B2Gold 50%) contributing 38.4Moz.

Gramalote declared a maiden Mineral Reserve in 2017 and Quebradona declared a maiden Mineral Reserve in 2018. Quebradona contributes 2.6Moz to AngloGold Ashanti’s gold Mineral Reserve and Quebradona has a copper Mineral Reserve of 3,250Mlb. Both Quebradona and Gramalote are at various stages of FS. Quebradona is planned as a copper mine with gold and silver as by-products.

A maiden Mineral Resource at Silicon in the USA totalling 3.4Moz was declared in 2021.

ARGENTINA
Description
Cerro Vanguardia, in which AngloGold Ashanti has a 92.5 percent92.5% stake, is ourits sole operation in Argentina. Fomicruz SE, a state company, owns the remaining 7.5 percent. The operation is operated by AngloGold Ashanti.

Argentina - Cerro Vanguardia
Description
Cerro Vanguardia is located approximately 110 kilometres north-northwest of7.5%. Located to the coastal townnorthwest of Puerto San JulianJulián, in the province of Santa Cruz.



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Cruz, Cerro Vanguardia is a gold-silver mine withoperates 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 at different parts ofwithin the property butand 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 mine has beenclimate 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 since 1998.Ashanti.



Location

Cerro Vanguardia is located in the Santa Cruz province, southern Patagonia, Argentina, approximately 110km north-northwest of the coastal 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 to access high-grade material. To complement the already existing gold plant, a heap leachleaching operation was started in 2012. TheAngloGold purchased Minera Mincorp’s share in Cerro Vanguardia in 1999, and the mine has been operated by AngloGold Ashanti since, 1998. with the remaining portion acquired from Perez Companc in 2002.

Legal aspects and tenure
Refer to“Item 4B: Business Overview—The orebodies compriseRegulatory 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 seriesdouble bench height of epithermal vein deposits containing gold20m and large quantitiescontributes 60% of silver, whichthe ore. Open pit mining is mined asdistributed between multiple operating pits, typically five to ten at any one time, depending on the plant feed requirements.

As for the underground, longhole stoping is the mining method and currently, there are four underground mines that are operated at the same time, located on the Osvaldo 8, Cuncuna, Serena and Zorro veins. Three more are in development (Liliana, Osvaldo 7 and Loma del Muerto CB6). Underground mining represents around 40% of total



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production, a by-product. The metallurgical plant has a capacity of 1.3Mtpapercentage that will increase in the coming years. Lower-grade material is stockpiled and processed on the heap leach.

Operational infrastructure
Infrastructure for Cerro Vanguardia is mostly 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 1.6Mtpa 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 40 kilometre40km 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 infrastructure, mining lease encompasses an areaassets, decommissioning assets, assets under construction and deferred stripping had a carrying value of approximately 543km2$217m (reported as 100%, 92.5% owned by AngloGold Ashanti).

Mineral processing
The metallurgical 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 licence 402642/CV/97 coverstails go directly to a conventional TSF, where there is also a reclaim water system for the full Ore Reserve, was issuedplant.

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 process goes directly to the CCD circuit in the process plant and to the Merrill Crowe process for gold and silver recovery.

Qualified Persons
Cerro VanguardiaQualified PersonProfessional OrganisationMembership numberRelevant Years ExperienceQualification
Mineral ResourceJuan ParedesAusIMM22773825 yearsPhD (Geology)
Mineral ReserveMartin CescaAusIMM3338648 yearsBEng (Mining Engineering)

Exploration
Refer to “Item 4B: Business Overview—Exploration review”.

Mineral Resource
Refer to Table 1a to Paragraph (b) prepared in accordance with Regulation S-K 1300 (§ 229.1303 (Item 1303)) that summarises the gold Mineral Resource (exclusive of Mineral Reserve) for Cerro Vanguardia at the end of the Fiscal Year ended 31 December 2021 based on 27 December 1996$1,500/oz. The Mineral Resource is reported for the first time under Regulation S-K 1300 and expiresthus no net difference can be reported.

Refer to the Key Parameters under Material Assumptions for additional information on 26 December 2036.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.


GeologyMaterial Assumptions for the Mineral Resource

Key Parameters
Cerro VanguardiaUnitOpen Pit
Costs
Ore mining cost$/tonne mined13.08
Waste mining cost$/tonne mined3.31
Processing cost$/tonne treated42.34
G&A$/tonne treated11.79
Other Parameters



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Metallurgical Recovery Factor Au%MetRF94.1
Metallurgical Recovery Factor Ag%MetRF79.8
Slope anglesdegree57
Mineral Resource cut-off gradeg/t0.96
Mineral Resource price$/oz1,500 

Cerro VanguardiaUnitUnderground
Costs
Lateral development (average)$/m8,096 
Mine Services$/tonne ore mined8.50 
Processing cost$/tonne treated42.34 
Other Parameters
MSO optimising cut-offg/t5.08 
Mineral Resource cut-off gradeg/t5.08 
Mineral Resource price$/oz1,500 
Metallurgical Recovery Factor%MetRF94.0

Estimation
The oldest rocks in this partmineralisation boundaries for each geological entity (veins, stockwork and wall rock) are defined from detailed logging of Patagonia are metamorphicsall 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 Precambrian-Cambrian age. Thesedeposit are overlainthen determined using relevant block dimensions. Ordinary kriging is used to perform grade interpolation and field tests are conducted to determine appropriate in situ densities.

Conditional simulations are performed in the main deposits for uncertainty assessment and the Mineral Resource is then classified into Measured, Indicated and Inferred Mineral Resource categories according to the internal AngloGold Ashanti guidelines. For the veins where simulations are not done, drill density is used to classify the Mineral Resource.

Ordinary kriging is carried out for the three defined ore zones. Extreme values are normally capped for less than 1% of the sample distribution. LeapfrogTM is used to do the geological modelling, and DatamineTM software is used for estimation. The variography is done by Permianvein and Triassic continental clastic rocks whichfor each ore zone (vein, stockwork and ignimbrite).

High-grade material is capped using probability plots from GSLIBTM for veins, stockworks and ignimbrites. Only gold and silver is included in the estimation process. In most of the veins, gold and silver have been faulted into a seriesdirect relationship around a ratio of horsts1:8.

Mineral Reserve
Refer to Table 2ato Paragraph (b) prepared in accordance with Regulation S-K 1300 (§ 229.1303 (Item 1303)) that summarises the gold Mineral Reserve for Cerro Vanguardia at the end of the Fiscal Year ended 31 December 2021 based on $1,200/oz.

Refer to the Modifying Factors and grabensprice estimates under Material Assumptions for additional information on cut-off grades and metallurgical recovery. For additional information, see the Technical Report Summary on each individual property, filed as an Exhibit of this annual report on Form 20-F.

Year on year changes in Mineral Reserve - Moz
as at 31 December 2021Cerro Vanguardia
CategoryProvenProbableTotal
Previous Year0.229 0.525 0.755 
Depletion(0.055)(0.111)(0.166)
Exploration0.008 — 0.008 
Methodology0.059 0.034 0.093 
Price0.060 0.138 0.199 
Cost(0.016)(0.021)(0.037)
Geotechnical(0.008)(0.018)(0.026)



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Metallurgical(0.003)(0.005)(0.008)
Operational— — — 
Acquisition / Disposal— — — 
Other— — — 
Current Year0.274 0.543 0.817 
Net Difference0.045 0.017 0.063 
% Difference20 3 8 
The net decrease was mainly due to depletion and minor cost changes, offset partially by revisions to methodology.

Material Assumptions for the Mineral Reserve

Modifying factors and price estimates
as at 31 December 2021Cerro Vanguardia
Primary Commodity Price$/oz1200
Exchange Rate$/ARS112.04
Cut-off gradeg/t
 0.32-0.43(3); 3.25(1); 6.37(2)
Dilution%
35(1)(3); 54(2)
Mining Recovery Factor%MRF based on tonnes97
Mining Recovery Factor%MRF based on g/t
96(2); 96.5(1)(3)
Mine Call Factor%MCF94
Metallurgical Recovery Factor%MetRF
66.1(3); 94.1(1)(2)
(1) Open pit (2) Underground (3) Stockpile (including Heap leach)

Estimation
The appropriate Mineral Resource models are associated with both limited basaltic sillsused as the basis for estimating the Mineral Reserve. All relevant modifying factors such as mining dilution and dykescosts are used in the Mineral Reserve conversion process. This is based on the original block grades and with calc-alkaline granitetonnage, and granodiorite intrusions. Thick andesite flowsincludes waste material (both internal and external). Appropriate Mineral Reserve cut-off grades are applied and all blocks above this cut-off are reported.

It is important to emphasise the importance of Lower Jurassic age occur above these sedimentary units. A large volume of rhyolitic ignimbrites was emplacedsilver during the Middle and Upper Jurassic age over an areaoptimisation of approximately 100,000 square kilometres. These volcanic rocks include the Chon Aike formation ignimbrite units that host the gold bearing veinspits, since silver is a significant by-product at Cerro Vanguardia. Post-mineral units include Cretaceous and Tertiary rocksThe ratio of both marine and continental origin, the Quaternary La Avenida formation, the Patagonia gravel and the overlying La Angelita basalt flows. These flows do not cover the areasilver to gold commonly ranges from 20g/t to 30g/t of silver per 1g/t of gold. Mineral Reserve depletion includes material that comes from operational dilution, which constitutes an additional low-grade tonnage that is mined as part of the ongoing operation. Mineral Resource is estimated in situ and thus does not include this dilution.

Conclusion
The Mineral Resource and Mineral Reserve estimates are sensitive to gold and silver prices as well as to local exchange rate fluctuations. The low-grades from the open pits, and difficult hydrogeological and geotechnical conditions for underground are ongoing risks or uncertainties in the Mineral Resource and Mineral Reserve estimates that are managed on a day-to-day basis.

Map showing Cerro Vanguardia veins.planned infrastructure and licences

GoldMap showing the location, infrastructure and silver mineralisation atmining license area for Cerro Vanguardia, occurs within a vertical rangewith the total mining lease area insert shown at the bottom left corner. The coordinates of about 150 metres to 200 metres in a series of narrow, banded quartz veins that occupy structures within the Chon Aike ignimbrites. These veins form a typical structural pattern related to major north-south (Concepcion)mine, as represented by the plant, are depicted on the map and east-west (Vanguardia) shears. Two sets of veins have formed in response to this shearing.

The veins are typical of epithermal, low-temperature, adularia-sericite character and consist primarily of quartz in several forms: massive quartz, banded chalcedonic quartz, and quartz-cemented breccias. Dark bands in the quartz are due to finely disseminated pyrite, now oxidised to limonite. The veins show sharp contacts with the surrounding ignimbrite which hosts narrow stockwork zones that are weakly mineralised and appear to have been cut by a sequence of north-east-trending faults that have southerly movement with no appreciable lateral displacement.UTM coordinate system.






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au-20211231_g12.jpg



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BRAZIL
Description
AngloGold Ashanti’s operations in Brazil comprise AngloGold Ashanti Córrego do Sítio Mineração (AGA(“AGA Mineração)o”) in the Quadrilátero Ferrífero, Minas Gerais state and Mineração Serra Grande (MSG) in Goiás state. All operations are wholly owned by AngloGold Ashanti. Anglogold Ashanti generates part of the power for its operations in Brazil at the Rio de Peixe hydroelectric plants and through its stake in the Igarapava consortium. The balance is purchased on the open market in long term contracts to secure supply.

Brazil - AngloGold Ashanti Córrego do SítioAGA Mineração S.A.
Description
AngloGold Ashanti Córrego do Sítio Mineração S.A. (AGA Mineração), consists of several mining operations, namely Cuiabá, Lamego, and Córrego do Sítio.CdS.


The Cuiabá complex includesOre from the Cuiabá and Lamego mines and the Cuiabá and Queiroz plants. The Cuiabá and Lamego mines are 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 Cuiabá mine is a mix of cut-and-fill and long hole stopes accessed by ramps and a shaft. Lamego is a nearby mine developed to mine underground sulphide ore. The first stage of the processing of the ore from Cuiabá and Lamego mines is in the gold plantprocessed at the Cuiabá complex, whereGold plant. The concentrate produced is produced. The material is then transported 15 kilometres by aerial ropeway to the Queiroz plant wherefor 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 concentratemain underground mine to the metallurgical plant is roasted,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 calcine proceeds to a carbon circuit for further refining. Sulphur gas is captured for processing through the acid plant. Approximately 230ktpa of sulphuric acid is produced as a by-product. Capacity of the complete circuit is 2.1Mtpa. Mineral Resource has subsequently been written off.

The Cuiabá mine became operational in 1988 and the Lamego mine in 2009.

Córrego do Sítio (CdS)AGA Mineração mining complex is located in southeastern Brazil in the municipalitesstate of Minas Gerais. Operations are 30km from the capital of the state (Belo Horizonte) in the case of Cuiabá and Lamego, and approximately 100km in the case of CdS, in the municipalities of Nova Lima, Sabará and Santa Bárbara respectively.

Map showing AGA Mineração location
au-20211231_g13.jpg

AGA MINERAÇÃO - CÓRREGO DO SÍTIO

Property description (type and Barão de Cocais, 90 kilometres eastamount of ownership interests, identity of the cityoperator, stages of Belo Horizonte in the Minas Gerais state, in the southeast of Brazil. The properties)
CdS gold complexis wholly owned and operated by AGA Mineração. It has been in operation since 1989 and consists of two operations: an oxide open pit mine and two sulphide underground mines knownmines. The property is currently in a production stage.

Location
The CdS complex is located in the municipalities of Santa Barbara and Barão de Cocais that are located 90km east of the city of Belo Horizonte in Minas Gerais State, in the southeast of Brazil. These operations are included in an



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important mining district referred to as the Quadrilatero Ferrifero (Iron Quadrangle), the second biggest Brazilian area for the production of iron, gold and manganese.

Geology
The CdS gold deposit is located in the eastern part of the Lower to Middle greenschist facies of the Rio das Velhas Archaean, in the Iron Quadrangle region, on the southern margin of the São Francisco Craton in Brazil.

CdS is an orogenic gold deposit hosted in intensely deformed clastic, volcanoclastic, carbonaceous schists and metagraywackes in an approximately 30km northeast/southwest striking shear zone. Hydrothermal alteration phases associated with the mineralisation are dominated by sericite and carbonate.

The CdS I, II and III gold deposits and associated targets are located in a gold trend that extends for approximately 14km in a northeasterly direction, from Grota Funda (CdS I) in the south to Jambeiro (CdS III) in the north and which developed in a compressional tectonic regime. Gold is associated with quartz and fine-grained acicular arsenopyrite. The main gold targets and deposits are distributed over three trends, namely the CdS Trend (metasedimentary hosted), the Donana Trend and the Cristina Trend (BIF hosted).

At CdS I, the main orebodies are Rosalino, Cachorro Bravo, Laranjeiras and Carvoaria, which constitute the current production sources and most of the Mineral Resource. At CdS II, the main orebodies are São Bento, Pinta Bem (both BIF hosted) and Sangue de Boi (metasedimentary hosted). At CdS III where exploration has been limited, the Anomalia I orebodies are the best understood and have the highest potential, hosted in the metasedimentary and BIF sequences as well as in Jambeiro and Mina de Pedra targets.

History
Gold has been intermittently mined in the Santa Barbara and Barão de Cocais region since the 19th Century. Modern exploration was undertaken across the CdS area in the 1980s by Morro Velho and São Bento Mineracão. An AngloGold Ashanti FS for the oxide Mineral Reserve, to be mined by open pit and treated in a heap leach plant, was approved in 1987. The CdS open pit operations started in the 1990s, with the first phase of production between 1990 and 1998.

In 2002 development of underground exploration drifts began at CdS I and CdSII. in 2007 the São Bento Mine was acquired from Eldorado Gold Corporation. A FS for the sulphide Mineral Reserve, to be mined underground and treated in a sulphide plant, was concluded in 2010. Implementation followed and the ramp-up was concluded in 2012. In 2011, there were major renovations to the structure of the São Bento metallurgical plant that were completed in 2012. In 2013, the crushing circuit was improved to optimise the throughput.

Legal aspects and tenure
Refer to “Item 4B: Business Overview—The Regulatory Environment Enabling AngloGold Ashanti to Mine—Americas—Brazil—AngloGold Ashanti’s rights and permits”.

Mining method
The underground mining method for CdS is sub-level stoping. Each panel consists of three levels with secondary development drives varying from 100m to 600m along strike. The stopes are around 15m high and the mining sequence method varies between top-down and bottom-up, which is only used in specific areas. Geotechnical parameters require that sill pillars are 4m to 7m high, and rib pillars 5m wide. The access into CdS I underground is by decline and into CdS II underground is by shaft.

The open pit operation uses conventional bench mining, with 8m individual benches and 3.2m berms. The material transport (ore and waste) is done by trucks and the excavation by a backhole. The rock breaking method varies according to the rock strength, using either explosives or mechanical excavation.

Operational infrastructure
CdS infrastructure consists of two treatment plants, namely, the sulphide plant at CdS II (used to process refractory sulphide material), and the heap leach plant at CdS I (for oxide ore mined by open pit). The site also has an ore sorting plant, a TSF for the sulphide plant, a neutralised tailings deposit for the oxide material and numerous waste dumps for the open pit mines at CdS I.

Ancillary facilities comprise a water treatment facility, effluent treatment facilities, equipment workshops, laboratory, warehouses, explosives and accessories magazines, fuel stations, electric substations as well as offices, medical



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clinic, mess rooms, dressing rooms, bathrooms, storerooms, garage, fuel stations, a centre of environmental studies, nursery and other facilities required to operate the mine.

Water is primarily sourced from recycling the underground mine water and supplementary water catchment wells. The power for the operations is supplied and purchased on the open market.

Good communication infrastructure is available in the area.

The Property, Plant, and Equipment as of the end of December 2021 including lease assets, land, buildings & mine infrastructure, mining assets, mineral rights and dumps, decommissioning assets, capitalised exploration costs, assets under construction and deferred stripping had a carrying value of $175m.

Mineral processing
There are two metallurgical plants inat CdS: the heap leach plant for oxide ore and the sulphide plant.

The sulphide process consists of crushing, grinding and gravity concentration, flotation, thickening, acidulation, pressure oxidation (POX autoclave)(“POX autoclave”), CIL extraction, elution, neutralisation, electro-winningelectrowinning and tailings disposal. The sulphide plant and POX circuit have a capacity of 600ktpa. 900ktpa.

The heap-leachingheap leaching process consists of crushing, agglomeration, stacking, leaching, adsorption, elution and electro-winningelectrowinning, with a total capacity of 650ktpa. Total capacity900ktpa.

Qualified Persons
Córrego do SítioQualified PersonProfessional OrganisationMembership numberRelevant Years ExperienceQualification
Mineral ResourceMarcelo Martins de Souza VieiraAusIMM33797410 yearsBSc (Geological Engineering), MSc (Mining Engineering), MBA
Mineral ReserveSergio Alfonso Navarrete LetelierAusIMM33455638 yearsBSc (Mining Engineering), Postgraduate Certificate (Management)

Exploration
Refer to “Item 4B: Business Overview—Exploration review”.

Mineral Resource
Refer to Table 1a to Paragraph (b) prepared in accordance with Regulation S-K 1300 (§ 229.1303 (Item 1303)) that summarises the gold Mineral Resource (exclusive of Mineral Reserve) for Córrego do Sítio at the end of the complete circuitFiscal Year ended 31 December 2021 based on $1,500/oz (BRL7,940/oz). The Mineral Resource is 1.5Mtpa.reported for the first time under Regulation S-K 1300 and thus no net difference can be reported.



Refer to the Key Parameters under Material Assumptions for additional information on cut-off grades and metallurgical recovery. For additional information, see the Technical Report Summary on each individual property, filed as an Exhibit of this annual report on Form 20-F.

Material Assumptions for the Mineral Resource

Key Parameters
Córrego do SítioUnitUnderground
Costs
Lateral development (average)$/m2,464 
Vertical development (average)$/m1,896 
Production$/tonne ore mined65.72 
Mine Services$/tonne ore mined6.22 
Processing cost$/tonne treated38.27 
Other Parameters
MSO optimising cut-offg/t1.58
Mineral Resource cut-off gradeg/t1.58



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Mineral Resource priceBRL/oz7,940 
Metallurgical Recovery Factor%MetRF90.7

Córrego do SítioUnitOpen Pit
Costs
Ore mining cost$/tonne mined
2.62-3.79(1)
Waste mining cost$/tonne mined2.34
Processing cost$/tonne treated8.59
G&A$/tonne treated2.25
Other Parameters
Metallurgical Recovery Factor%MetRF
70.16-90.7(1)
Slope anglesdegree
47-64(1)
Mineral Resource cut-off gradeg/t
0.33-1.06(1)
Mineral Resource priceBRL/oz7,940 
(1) Vary according to rock / ore type and area

Estimation
Gold grades are estimated by ordinary kriging while density and sulphur may also be kriged if there is enough data. The data set consists of DD samples, RC drilling samples and channel samples where all information is used for both geological modelling and estimation. The estimation parameters are defined for each target and are based on variography as the main driver for the definition of the maximum estimation distances. Domaining is determined differently for each orebody and it is mainly based on structural features, dyke positioning, grade distribution and oxidation features.

Classification is based on a combination of conditional simulation and sample spacing.

Mineral Reserve
Refer to Table 2ato Paragraph (b) prepared in accordance with Regulation S-K 1300 (§ 229.1303 (Item 1303)) that summarises the gold Mineral Reserve for Córrego do Sítio at the end of the Fiscal Year ended 31 December 2021 based on $1,200/oz (BRL6,182/oz).

Refer to the Modifying Factors and price estimates under Material Assumptions for additional information on cut-off grades and metallurgical recovery. For additional information, see the Technical Report Summary on each individual property, filed as an Exhibit of this annual report on Form 20-F.

Year on year changes in Mineral Reserve - Moz
as at 31 December 2021AGA Mineração - Córrego do Sítio
CategoryProvenProbableTotal
Previous Year0.070 0.327 0.397 
Depletion(0.046)(0.045)(0.090)
Exploration0.064 0.113 0.178 
Methodology— — — 
Price— — — 
Cost(0.036)(0.086)(0.121)
Geotechnical0.001 (0.016)(0.016)
Metallurgical(0.003)(0.006)(0.010)
Operational— (0.001)(0.001)
Acquisition / Disposal— — — 
Other0.019 0.021 0.040 
Current Year0.070 0.308 0.378 
Net Difference(0.001)(0.019)(0.020)
% Difference(1)(6)(5)




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In 2021, there was an overall decrease in the Mineral Reserve due to depletion as well as an increase in costs, offset by successful exploration drilling campaigns at CdS I on the Carvoaria and Rosalino orebodies.    

Material Assumptions for the Mineral Reserve

Modifying factors and price estimates
as at 31 December 2021Córrego do SítioOpen pit and StockpilesUnderground
Primary Commodity PriceBRL/oz6,182 6,182 
Cut-off gradeg/t
0.43-1.36(1)
3.29
Stoping widthcm-
229.8-380.3(1)
Dilution%0
19.9-28.3(1)
Resource Modification Factor%RMF based on tonnes100100
Resource Modification Factor%RMF based on g/t100100
Mining Recovery Factor%MRF based on tonnes10090
Mining Recovery Factor%MRF based on g/t100100
Mine Call Factor%MCF100
90.9-92.4(1)
Metallurgical Recovery Factor%MetRF
37.7-90.7(1)
90.7
(1) Vary according to rock type / area

The main modifying factors were reviewed based on historical performance and projected scenarios. Stope dilution is calculated with an equation considering stope thickness (among other aspects) and varies from 19 to 25%, the MCF is based on an average for the past 12 months and it includes the introduction into planning of grades associated with planned dilution. Metallurgical recovery was reviewed based on geometallurgy studies. For the open pit, a regularised model is used for Mineral Reserve estimation, with sizes of 2.5 x 2.5 x 4m, compatible with mining equipment. It is therefore not necessary to consider additional dilution or mining recovery as these have already been included in the regularised block model.

Estimation
The estimation process considers price and exchange rate inputs from the internal AngloGold Ashanti's guidelines as well as cost studies based on current and future scenarios. Underground estimation uses MSO and open pit uses a scheduling tool to perform optimisation, applying modifying factors that were validated by peer review.

Conclusion
The Inferred Mineral Resource and conceptual material projections within the mine plan are seen as a risk or uncertainty in the Mineral Reserve estimate but there are drilling programs in place to mitigate this.

The most significant risk to the operation is the lack of Mineral Reserve flexibility in the form of alternate mining areas to deliver the production plan. This risk is controlled and mitigated with integrated planning process, together with internal stakeholders and daily monitoring of the execution of the plan.

Map showing Córrego do Sítio planned infrastructure and licences
Map showing the location, infrastructure and mining license area for Mineração Córrego do Sítio, with the total mining lease area insert displayed at the top left. The coordinates of the mine, as represented by the CdS I plant, are depicted on the map and are in the UTM coordinate system.




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AGA MINERAÇÃO - CUIABÁ

Property description
Cuiabá is coveredan underground operation, wholly owned and operated by a single concession granted byAngloGold Ashanti, within one of the Brazilian National Mining Agency (ANM), namely 000.323/1973 held by AGA Mineração, covering a total area of 3,662ha. Lamego is covered by three geographically contiguous ANM concessions granted to AGA Mineração, namely concession 830.720/1981, 831.554/1983 and 832.238/2003 covering a total area of 1,622.68ha. CdS is covered by four ANM concessions, namely 930.556/2000; 930.181/2008; 830.129/1982 and 833.472/2003 covering a total of 5,461.07ha. According to Brazilian mining laws, expiry of claims, licenses, and other tenure rights coincide with the depletion of Ore Reserves, cessation of mining operations and legally required post-operations activities (e.g. mine closure), provided all annual reports have been approved by the ANM.

Geology
The areamost important metallogenetic provinces in which AGA Mineração is located isBrazil known as the Iron Quadrangle andQuadrangle. This region is host to historic and current gold mining operations, as well as a numberan important producer of open-pit limestone and iron ore operations.and gold in Brazil. The geologyproperty is currently in a production stage.

Location
The Cuiabá Mine is located near Sabará, southeast of the city of Belo Horizonte, the capital of Minas Gerais State, in the southeast of Brazil.

Geology
Cuiabá Mine is located in the Iron Quadrangle, which is a geotectonic unit at the southern edge of the São Francisco Craton, comprising Archaean and Proterozoic terrains, and bordered by Neoproterozoic mobile belts. From a regional viewpoint, Cuiabá Mine is located in the eastern extension of the 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 are the most important factors for gold mineralisation with a common association withbetween large-scale shear zones and their associated structures. Where BIF is mineralised, the ore appears strongly stratiform due to the selective sulphidation of the iron richiron-rich layers. Steeply plunging shear zones tend to control the ore shoots, which commonly plunge parallel to intersections between the shears and other structures.


History
In 1740, artisanal miners carried out the first mining in the area. The Saint John Del Rey Mining Company Limited. acquired the mine in 1834. Exploration and development resumed in 1977, culminating with the reopening of the mine in 1985. In 1996, the company became a wholly owned subsidiary of the Anglo American Group, and in 1999, ownership was transferred to the holding company AngloGold (now AngloGold Ashanti), where it remains.

Legal aspects and tenure
Refer to “Item 4B: Business Overview—The Regulatory Environment Enabling AngloGold Ashanti to Mine—Americas—Brazil—AngloGold Ashanti’s rights and permits”.

Mining method
Cuiabá Mine is an underground mine that currently operates using two main mining methods: sub-level longhole open stoping, and triple stoping. A variant of sub-level longhole stoping with a free face horizontal tunnel is also applied over low inclination high-grade areas. The cut and fill mining method was reintroduced to increase ore recovery. It is applied in the narrow veins below Level 14.1 (Balancão, Galinheiro and Canta Galo orebodies) where the dip is lower. In the Galinheiro Footwall, the mining method remains sub-level stoping as the orebody shows a reasonable steep dip and thickness.

Operational infrastructure
The metallurgical plants are connected by an aerial ropeway (Cuiabá Gold plant and Queiroz plant) and power is provided by a set of small hydropower plants (Rio de Peixe). Cuiabá Mine has a shaft system (846m deep) for production and personnel transport, the current nominal airflow capacity is 1,035m3/s, of which 320m3/s are refrigerated. Tailings deposition is at one of four sites located at Cuiabá, Calcinado, Rapaunha and Cocuruto. The Rio de Peixe hydroelectric complex is a set of seven small hydropower plants that generate energy from three dams (Ingleses, Miguelo and Codorna), and are connected directly to the Queiroz plant.

The controllingProperty, Plant, and Equipment as of the end of December 2021 including lease assets, land, buildings & mine infrastructure, mining assets, mineral rights and dumps, decommissioning assets, capitalised exploration costs and assets under construction had a carrying value of $381m.




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Mineral processing
Cuiabá and Lamego Mines feed the Cuiabá Gold (flotation) and Queiroz (roaster, carbon circuit and refinery) plants, currently at 2.0Mtpa for a metallurgical recovery of 93.3% for the total combined feed. At the Cuiabá Gold plant, ore is crushed and ground followed by flotation and filtration in order to produce a concentrate, which is transported by an aerial ropeway to Queiroz for further treatment. Approximately 30% of gold is recovered through a gravity circuit at the Cuiabá plant. The concentrate transported by aerial ropeway is received at Queiroz plant which is located in Nova Lima and comprises a refractory ore circuit (from Cuiabá or Lamego) with facilities for pyrometallurgy and hydrometallurgy. The concentrate is roasted and the calcine proceeds to a CIP or Merril Crowe circuit for further refining. The sulphide gas is captured for processing through the acid plant. Approximately 230ktpa of sulphuric acid is produced as a by-product.

Qualified Persons
CuiabáQualified PersonProfessional OrganisationMembership numberRelevant Years ExperienceQualification
Mineral ResourceHenrique VigarioAusIMM32931015 yearsBSc (Geology), Postgraduate Certificate (Geostatistics)
Mineral ReserveFelipe LimaAusIMM33617616 yearsBSc (Mining Engineering)

Exploration
Refer to “Item 4B: Business Overview—Exploration review”.

Mineral Resource
Refer to Table 1a to Paragraph (b) prepared in accordance with Regulation S-K 1300 (§ 229.1303 (Item 1303)) that summarises the gold Mineral Resource (exclusive of Mineral Reserve) for Cuiabá at the end of the Fiscal Year ended 31 December 2021 based on $1,500/oz (BRL7,940/oz). The Mineral Resource is reported for the first time under Regulation S-K 1300 and thus no net difference can be reported.

Refer to the Key Parameters under Material Assumptions for additional information on cut-off grades and metallurgical recovery. For additional information, see the Technical Report Summary on each individual property, filed as an Exhibit of this annual report on Form 20-F.

Material Assumptions for the Mineral Resource

Key Parameters
CuiabáUnitSublevelCut and fill
Costs
Lateral development (average)$/m5,194 5,194 
Vertical development (average)$/m3,471 3,471 
Production$/tonne ore mined27.31 38.03 
Material handling$/tonne ore mined76.09 41.96 
Mine Services$/tonne ore mined26.84 38.76 
Processing cost$/tonne treated19.60 20.13 
Other Parameters
MSO optimising cut-offg/t1.68 2.57 
Mineral Resource cut-off gradeg/t1.68 2.57 
Mineral Resource priceBRL/oz7,940 7,940 
Metallurgical Recovery Factor%MetRF93.593.5

CuiabáUnitOpen Pit
Costs
Ore mining cost$/tonne mined1.28
Waste mining cost$/tonne mined1.28
Processing cost$/tonne treated17.68
G&A$/tonne treated1.07
Other Parameters



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Metallurgical Recovery Factor%MetRF93.5
Slope anglesdegree20
Mineral Resource cut-off gradeg/t0.66
Mineral Resource priceBRL/oz7,940 

Estimation
The Cuiabá dataset consists of both channel and drill hole samples. 3D modelling and estimation is performed within two main estimation domains, namely the thick mineralisation, structurescomprised of Fonte Grande Sul and Serrotinho, and the narrow-vein domain comprising Balancão, Galinheiro and Canta Galo. A third domain, related to the mineralisation hosted predominantly in zones of intense hydrothermal alteration in schists, is also considered and includes the Quartz vein satellite, Galinheiro footwall orebody (“GFW”), Viana and Descoberto orebodies. All channel and drill hole samples are used to generate 3D geological models and to assign lithological proportions into the apparent intersectiongrade estimates. Conditional simulation is used to estimate the uncertainty in the block models and to classify the Mineral Resource into Measured, Indicated and Inferred Mineral Resource, following the standard internal AngloGold Ashanti methodology.

Mineral Reserve
Refer to Table 2ato Paragraph (b) prepared in accordance with Regulation S-K 1300 (229.1303 (Item 1303)) that summarises the gold Mineral Reserve for Cuiabá at the end of thrust faultsthe Fiscal Year ended 31 December 2021 based on $1,200/oz (BRL6,182/oz).

Refer to the Modifying Factors and price estimates under Material Assumptions for additional information on cut-off grade and metallurgical recovery. For additional information, see the Technical Report Summary on each individual property, filed as an Exhibit of this annual report on Form 20-F.

Year on year changes in Mineral Reserve - Moz
as at 31 December 2021AGA Mineração - Cuiabá
CategoryProvenProbableTotal
Previous Year0.273 0.944 1.216 
Depletion(0.084)(0.101)(0.184)
Exploration0.005 0.101 0.106 
Methodology0.038 (0.032)0.006 
Price— — — 
Cost(0.003)(0.018)(0.020)
Geotechnical— — — 
Metallurgical— — — 
Operational0.082 (0.015)0.067 
Acquisition / Disposal— — — 
Other(0.001)(0.001)(0.002)
Current Year0.311 0.878 1.189 
Net Difference0.038 (0.066)(0.028)
% Difference14 (7)(2)

The Mineral Reserve year-on-year decrease is mainly due to depletion and cost increases which resulted in changes in design, offset partially by exploration additions as well as changes in methodology and operational factors with tight isoclinal foldsremnant areas being added.

Material Assumptions for the Mineral Reserve

Modifying factors and price estimates
as at 31 December 2021Cuiabá
Primary Commodity PriceBRL/oz6,182 
Cut-off gradeg/t4.73
Stoping widthcm400
Dilution%
24.1-34(1)



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Mining Recovery Factor%MRF based on tonnes
83.5-92.1(1)
Mine Call Factor%MCF95.3
Metallurgical Recovery Factor%MetRF93.5
(1) Vary according to rock type / area
Cuiabá is fully designed and sequenced using mine planning software. All mapped modifying factors are currently being applied to define the viability of the potential Mineral Reserve. Such factors include planned and unplanned dilution, ore recovery, mine call factor, geotechnical and hydrogeological recommendations concerning sill pillars, rib pillars and stope dimensions, the ore transport system, plant capacity, production capacities, production schedule, mining efficiency, closure plans and personnel requirements. Also, the full infrastructure is designed and accounted for. The Mineral Reserve is related to an economic production plan that accounts for all these requirements.

Mining recovery is defined at 83.5% for regular stopes, 75% for partial pillar recovery, 92.5% for cut and fill areas, and 95% for development. Dilution is considered to be 20% for production development, 34% for narrow veins sub-level, 24% for main orebody sub-level and 26% for cut and fill areas as per geotechnical recommendations. MCF is defined at 95.3% based on a five year average from the historical database. The Mineral Reserve estimate is highly sensitive to recovery and MCF.

Estimation
Gold price, projected operational performance and costs as well as metallurgical recoveries are taken into consideration in the Mineral Reserve. Mining parameters such as the mining method, minimum mining width, MCF, dilution and recovery are all applied in the process.

Conclusion
Management plans are in place to address the risks or uncertainties associated with the low level of estimated Mineral Reserve, the reliance on Inferred Mineral Resource in the production plan, and rock engineering constraints at depth.

Map showing Cuiabá planned infrastructure and licences
Map showing the location, infrastructure and mining license area for AGA Mineracão Cuiabá and Lamego Mines, with the total mining lease area insert at the top left corner. The coordinates of the mine, as represented by the Cuiabá plant, are depicted on the map and are in the UTM coordinate system.




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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 Cuiabá 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 arsenopyrite 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. Wall rock 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 14 kilometres in a north-easterly direction, from Grota Funda (CdS I)while in the south to Jambeiro (CdS III) in the north. CdSII is the north portion of the Corrego do Sítio gold trend. 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 producing and are the most relevant deposits 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 best informed orebodies with the highest potential (for formal declaration purposes, CdSIII deposits are incorporated as CdSII). CdS mineralisation occurs in a greenstone belt geological environment, where goldmetachert it is associated with quartz veins. The gold occurs either as native gold or in sulphides. Lamego has a similar rock assemblage to Cuiabá, but with higher structural complexity. The mineralised BIF is more structurally deformed and sulphides (mainly very fine arsenopyrite acicular crystals)contains more silica when compared to Cuiabá, which reacted less with the hydrothermal fluid.

History
Exploration began in the area in 1985 with a structurally controlled corridordrilling campaign along a 5.7km strike length of approximately 16iron 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 Cuiabá plant facilities to be treated. Waste mined is disposed at waste dumps and is also used to backfill stopes.

Operational infrastructure
Lamego operates as a satellite mine to Cuiabá Mine. Ore is transported to surface via ramps where it is crushed, stockpiled and transported daily to Cuiabá Plant, where it is blended with Cuiabá ore on the ROM pad.

The two plants (Cuiabá Gold plant and Queiroz plant) are connected by an aerial ropeway. Power for the mine is both self-generated (Rio de Peixe hydroelectric complex) and supplied by Cemig, a state-owned company. The Rio de Peixe hydroelectric complex, which is a set of seven small hydropower plants that generate energy from three dams (Ingleses, Miguelo and Codorna), and connects directly to the Queiroz plant.

Lamego has a natural water supply system and a plant for water and sewage treatment.



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The Property, Plant, and Equipment as of the end 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 is recovered through a gravity circuit at the Cuiabá plant. The Queiroz plant is located in Nova Lima and comprises a circuit for refractory ore (from Cuiabá or Lamego) with facilities for pyrometallurgy and hydrometallurgy. The concentrate is roasted and the calcine proceeds to a CIP or Merril Crowe circuits for further refining. The sulphide gas is captured for processing through the acid plant. Approximately 180ktpa of sulphuric acid is produced as a by-product.

Qualified Persons
LamegoQualified PersonProfessional OrganisationMembership numberRelevant Years ExperienceQualification
Mineral ResourceHenrique VigarioAusIMM32931015 yearsBSc (Geology), Postgraduate Certificate (Geostatistics)
Mineral ReserveRodolfo ReisAusIMM32340210 yearsMEng (Mining Engineering)

Exploration
Refer to “Item 4B: Business Overview—Exploration review”.

Mineral Resource
Refer to Table 1a to Paragraph (b) prepared in accordance with Regulation S-K 1300 (229.1303 (Item 1303)) that summarises the gold Mineral Resource (exclusive of Mineral Reserve) for Lamego at the end of the Fiscal Year ended 31 December 2021 based on $1,500/oz (BRL7,940/oz). The Mineral Resource is reported for the first time under Regulation S-K 1300 and thus no net difference can be reported.

Refer to the Key Parameters under Material Assumptions additional information on cut-off grades and metallurgical recovery. For additional information, see the Technical Report Summary on each individual property, filed a an Exhibit of this annual report on Form 20-F.

Material Assumptions for the Mineral Resource

Key Parameters
LamegoUnitSublevelCut and fill
Costs
Lateral development (average)$/m3,175 3,264 
Production$/tonne ore mined12.94 15.86 
Material handling$/tonne ore mined13.58 64.43 
Processing cost$/tonne treated20.09 19.75 
Exploration capitalised$/tonne ore mined6.67 6.49 
Other Parameters
MSO optimising cut-offg/t1.06 1.66 
Mineral Resource cut-off gradeg/t1.06 1.66 
Mineral Resource priceBRL/oz7,940 7,940 
Metallurgical Recovery Factor%MetRF93.593.5

LamegoUnitOpen Pit
Costs
Ore mining cost$/tonne mined1.19



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Waste mining cost$/tonne mined1.05
Processing cost$/tonne treated10.84
G&A$/tonne treated2.00 
Other Parameters
Metallurgical Recovery Factor%MetRF93.5
Slope anglesdegree
40-50(1)
Mineral Resource cut-off gradeg/t0.39
Mineral Resource priceBRL/oz7,940 
(1) Vary according to rock type / area
Estimation
The geological model is used to subdivide sampling information into domains for estimation which uses ordinary kriging. Classification of the Mineral Resource is based on conditional simulation.

Mineral Reserve
Refer to Table 2ato Paragraph (b) prepared in accordance with Regulation S-K 1300 (229.1303 (Item 1303)) that summarises the gold Mineral Reserve for Lamego at the end of the Fiscal Year ended 31 December 2021 based on $1,200/oz (BRL6,182/oz).

Refer to the Modifying Factors and price estimates under Material Assumptions for additional information on cut-off grade and metallurgical recovery. For additional information, see the Technical Report Summary on each individual property, filed as an Exhibit of this annual report on Form 20-F.

Year on year changes in Mineral Reserve - 20 kilometresMoz
as at 31 December 2021AGA Mineração - Lamego
CategoryProvenProbableTotal
Previous Year0.029 0.091 0.120 
Depletion(0.010)(0.025)(0.035)
Exploration— 0.038 0.038 
Methodology0.018 (0.014)0.004 
Price— — — 
Cost(0.002)(0.003)(0.004)
Geotechnical(0.001)(0.001)(0.002)
Metallurgical— — — 
Operational0.004 (0.003)0.001 
Acquisition / Disposal— — — 
Other— 0.001 — 
Current Year0.037 0.084 0.122 
Net Difference0.008 (0.007)0.002 
% Difference28 (7)1 

After depletion, offset by exploration additions, the Mineral Reserve for Lamego remained the same year-on-year.

Material Assumptions for the Mineral Reserve

Modifying factors and price estimates
as at 31 December 2021Lamego
Primary Commodity PriceBRL/oz6,182 
Cut-off gradeg/t2.97
Stoping widthcm500
Dilution%15
Mining Recovery Factor%MRF based on tonnes90
Mine Call Factor%MCF94.5
Metallurgical Recovery Factor%MetRF93.5



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Estimation
The projected gold price, operational performance and costs, as well as metallurgical recoveries are taken into consideration when estimating the Mineral Reserve. Mining parameters such as the mining method, minimum mining width, MCF, dilution and recovery are all applied in the process.

Conclusion
As a low-grade operation, the accurate prediction of grade and the management of 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 strikeInferred Mineral Resource in the production plan, and about 500 metres vertical extent, developedrock 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 a compressional tectonic setting.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.


Brazil -



144

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SERRA GRANDE

Property description (type and amount of ownership interests, identity of the operator, stages of the properties)
Mineração Serra Grande (S.A.)
Description
Mineração Serra Grande (MSG(“MSG” or Serra Grande)“Serra Grande”) is wholly owned and operated by AngloGold Ashanti and is located in central Brazil, in the statenorthwest of Goiás about five kilometres from the city of Crixás and 420km from the Brazilian capital, Brasilia.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 used underground are:underground: sub-level stoping (bottom-up and top-down), cut and fill, and room and pillar. The 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 processing comes from the underground mines. The state road GO-337 passes close to the operation providing access for logistics. The power for the mine is supplied and purchased in the open 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 infrastructure, 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, and combinescombining CIL and gravimetric circuits. The ore is blended to feed the crushing circuit withwhich has a capacity of 3,800tpd.4,100tpd. There are two mills in operation, and 20 leaching tanks



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with a capacity of 4,800m3 divided between preliming and cyanidation stages. AboutApproximately 58% freeof gold is captured in the parallel gravity circuit. The rest of the gold is recovered by the CIL process to form the bulliondoré that is sent to the Nova Lima refinery.refining process.

Qualified Persons
Serra GrandeQualified PersonProfessional OrganisationMembership numberRelevant Years ExperienceQualification
Mineral ResourceMarcelo CamposAusIMM32866716 yearsMSc, MBA, BA (Geology)
Mineral ReserveThiago TeixeiraAusIMM33609312 yearsBEng, MBA

Exploration
Refer to “Item 4B: Business Overview—Exploration review”.

Mineral Resource
Refer to Table 1a to Paragraph (b) prepared in accordance with Regulation S-K 1300 (229.1303 (Item 1303)) that summarises the gold Mineral Resource (exclusive of Mineral Reserve) for Serra Grande at the end of the Fiscal Year ended 31 December 2021 based on $1,500/oz (BRL7,935/oz). The Mineral Resource is reported for the first time under Regulation S-K 1300 and thus no net difference can be reported.

Refer to the Key Parameters under Material Assumptions for additional information on cut-off grades and metallurgical recovery. For additional information, see the Technical Report Summary on each individual property, filed as an Exhibit of this annual report on Form 20-F.

Material Assumptions for the Mineral Resource

Key Parameters
Serra GrandeUnitUnderground Mineral Resource (excluding Mina Nova)Underground Mineral Resource Mina Nova
Costs
Lateral development (average)$/m17.47 17.47 
Vertical development (average)$/m26.97 26.97 
Production$/tonne ore mined41.28 41.28 
Mine Services$/tonne ore mined16.54 16.54 
Processing cost$/tonne treated8.96 8.96 
Other Parameters
MSO optimising cut-offg/t1.08 1.08 
Mineral Resource cut-off gradeg/t1.08 1.08 
Mineral Resource priceBRL/oz7,935 7,935 
Metallurgical Recovery Factor%MetRF9393

Serra GrandeUnitOpen Pit
Costs
Ore mining cost$/tonne mined3.15 
Waste mining cost$/tonne mined2.38 
Processing cost$/tonne treated10.71 
Other Parameters
Metallurgical Recovery Factor%MetRF92
Slope anglesdegree
45-59(1)
Mineral Resource cut-off gradeg/t0.4
Mineral Resource priceBRL/oz7,935 
(1) Vary according to rock type / area



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Estimation
Grade estimation is performed by ordinary kriging using DD, RC drilling and channel samples from the Serra Grande database. All search distances are based on variographic studies for each orebody or structure. Classification is done through a combination of conditional simulation and sample spacing studies.
Mineral Reserve
Refer to Table 2ato Paragraph (b) prepared in accordance with Regulation S-K 1300 (229.1303 (Item 1303)) that summarises the gold Mineral Reserve for Serra Grande at the end of the Fiscal Year ended 31 December 2021 based on $1,200/oz.

Refer to the Modifying Factors and price estimates under Material Assumptions for additional information on cut-off grades and metallurgical recovery. For additional information, see the Technical Report Summary on each individual property, filed as an Exhibit of this annual report on Form 20-F.

Year on year changes in Mineral Reserve - Moz
as at 31 December 2021Serra Grande
CategoryProvenProbableTotal
Previous Year0.240 0.387 0.627 
Depletion(0.027)(0.052)(0.079)
Exploration0.004 0.020 0.024 
Methodology0.027 (0.047)(0.020)
Price— — — 
Cost0.012 (0.036)(0.024)
Geotechnical0.001 (0.001)— 
Metallurgical— — — 
Operational0.015 0.012 0.027 
Acquisition / Disposal— — — 
Other— — — 
Current Year0.271 0.283 0.554 
Net Difference0.032 (0.104)(0.072)
% Difference13 (27)(12)

The net decrease was due to depletion, cost changes and some revisions to methodology.

Material Assumptions for the Mineral Reserve

Modifying factors and price estimates
as at 31 December 2021Serra Grande
Primary Commodity Price$/oz1200
Exchange Rate$/BRL5.15
Cut-off gradeg/t
0.41(1); 2.0(2)
Stoping widthcm
180-400(2)
Dilution%
17.5(1); 12.5-21(2)
Resource Modification Factor%RMF based on tonnes100
Resource Modification Factor%RMF based on g/t100
Mining Recovery Factor%MRF based on tonnes
86-95(2); 100(1)
Mining Recovery Factor%MRF based on g/t100
Mine Call Factor%MCF95
Metallurgical Recovery Factor%MetRF93
(1) Open pit (2) Underground
Estimation
Serra Grande Mineral Reserve is estimated using the Mineral Resource and by applying modifying factors based on historic performance. The gold price, projected operational performance and costs, as well as metallurgical recoveries, are taken into consideration in determining the Mineral Reserve.




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The open pit Mineral Reserve shell optimisations were run on the Mineral Resource models. The process incorporated the mining layout, minimum width, MCF, operating factors (dilution, recovery), stripping ratio, relevant cut-off grades and modifying factors for reporting the Mineral Reserve.

A cut-off grade analysis at $1,200/oz was used to determine a full grade ore stope grade of 2.00g/t for the underground mine.

Underground stope designs were updated from the previously reported Mineral Reserve using the latest Mineral Resource models. Modifying factors for planned and unplanned rock dilution and ore loss were applied to obtain the reported Mineral Reserve.

Metallurgical, environmental, social, legal, marketing and economic factors were adequately considered at the Serra Grande mines, and have been updated as the project has developed.

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, becameas represented by the plant, are depicted on the map and are in the UTM coordinate system.




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au-20211231_g17.jpg



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USA

AngloGold Ashanti North America Inc manages the Silicon greenfields project, which is located in an emerging district in southern Nevada with significant potential.

The Silicon project is an exploration stage property 100% owned by AngloGold Ashanti. The Silicon project is located approximately 12km east of the town of Beatty in Nye County, Nevada, United States of America. The Silicon project is the most advanced of AngloGold Ashanti’s exploration properties within the Beatty District, an area with a long history of gold mining. A maiden Mineral Resource at Silicon totaling 3.4Moz is declared in 2021. A recently completed conceptual study supports potential for Silicon as an open pit operation amenable to heap leach processing. Planning is underway for PFS studies at Silicon in 2022.

As at 31 December 2021, AngloGold Ashanti had entered into a definitive arrangement agreement (dated as of September 13, 2021) to acquire all the issued and outstanding common shares of Corvus Gold. The acquisition was completed on 18 January 2022. This will add the development stage North Bullfrog project and exploration stage Mother Lode project into the AngloGold Ashanti North America portfolio, which in combination with Silicon and other exploration targets, provides the opportunity to develop a world-class operational cluster within the Beatty district.

SILICON

Property description
The Silicon project is an exploration stage property 100%, with no Mineral Reserve declared, owned and managed by AngloGold Ashanti. A conceptual study was completed in 1989September 2021 and has been operatedsupports 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.

Serra Grande is covered by five ANM concessions, namely 002.286/1935, 960.658/1987, 860.746/2005, 862.103/1994 and 804.366/1975 covering a total area of 6,563.51ha. According to Brazilian mining law expiry of claims, licenses, and other tenure rights coincide with the depletion of Ore Reserves, cessation of mining operations and legally required post-operations activities (eg mine closure), provided all annual reports have been approved by the ANM.


Geology
The depositsSilicon 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 deposition appears to have occurred under less acidic and low to intermediate sulphidation conditions.

Mineralisation at Silicon exhibits a strong vertical control and is strongly associated with the emplacement of hydrothermal breccias whose matrix is composed of black quartz-pyrite or in quartz +/- pyrite veinlets zones. Pre-existing subvertical faults, particularly centres on the Silicon-Tramway fault system, strongly controlled the emplacement of the hydrothermal breccias and quartz +/pyrite veinlet zones. A stratigraphic control on mineralisation is at best a second order feature; the overwhelming control to mineralisation appears to be structure.

History
Silicon was first presented to AngloGold Ashanti in early-2016 with the earn-in Option Agreement with then-owners Renaissance Gold Inc. (“RenGold”) signed 21 June 2017. The agreement gave AngloGold Ashanti an option to acquire a 100% interest in the project through total payments of $3m to RenGold over three years. This option was fully exercised on 3 June 2020, with RenGold maintaining a 1% NSR on a defined area of interest on the Silicon project. On 18 August, RenGold announced that, subsequent to their merger with Evrim Resources Corp., the newly combined company would be re-named as Orogen Royalties Inc.




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The Silicon project area is currently comprised of a block of 949 unpatented mining claims on federally owned public lands, administered by the Bureau of Land Management (“BLM”). The initial land holding comprised 277 unpatented mining claims under Renaissance Exploration Inc., a subsidiary of Renaissance Gold Inc. Subsequently, AngloGold Ashanti has completed three phases of claim staking, contiguous to the original claim package, for an additional 672 unpatented mining claims.

Legal aspects and tenure
Refer to “Item 4B: Business Overview—The Regulatory Environment Enabling AngloGold Ashanti to Mine—Americas—United States of America—AngloGold Ashanti’s rights and permits”.

Mining method
The Silicon deposit is generally a large low-grade deposit, with a smaller high-grade core (expanding at depth). The nature of the Silicon orebody lends itself to conventional large scale open pit mining, which was the mining method chosen for the conceptual study. Conventional drill and blast would be followed by conventional load and haul, using a combination of large-scale hydraulic shovel or excavator and rigid body dump trucks. The material mined would be transported to the ROM stockpile, where it would be either tipped directly into the crusher or stockpiled to be fed at a later time.

Operational infrastructure
The Silicon project area currently has minimal infrastructure on site, as it is an exploration area. Current access roads are unsealed, and will require upgrading prior to commencing the project. The Silicon project is located in Nevada, which has several large mining operations currently in production, and as such provides access to all required major mining and processing equipment. The transport infrastructure in Nevada is very well established and maintained.

The town of Beatty and urban centres in the Rio Vermelhoregion such as Pahrump and Ribeirão das Antas FormationsLas Vegas offer infrastructure and services that can support the operation.

The Property, Plant, and Equipment as of the Archaean Pilar de Goia’s Group which account togetherend of December 2021 had a carrying value of less than $1m.

Mineral processing
Nevada has a strong presence of heap leach operations, while some ores are refractory and require more complex process flowsheets. Three broad flowsheets were evaluated in the conceptual study to cover the extremes of capital, operating costs and level of complexity. These included heap leaching (ROM and crushed leach); conventional milling and leaching, and finally; milling with a float-fine-grind leach circuit. Both milling options included gravity recovery.

An extensive metallurgical program tested the recovery response of ores from four main alteration or weathering ore types. A few P100 44mm crushed leach column tests were conducted on PQ core to inform on the potential recovery for a large proportionROM heap leach. The estimated gold recovery displayed lower recoveries, albeit at the lowest cost. A crushed leach with a P100 of 12.5mm achieved the best economic result, where recovery was improved for a moderate increase in costs. The conventional leaching and float-fine-grind options had further improved recoveries, but these were over-shadowed by larger increases in cost. The 12.5mm crushed leach option provided the best outcome at the conceptual study level and was selected as the preferred case for the study.

Qualified Persons
SiliconQualified PersonProfessional OrganisationMembership numberRelevant Years ExperienceQualification
Mineral ResourceDerek NicholsonAusIMM30618519 yearsBSc (Geology), Postgraduate Certificate (Geostatistics)

Exploration
Refer to “Item 4B: Business Overview—Exploration review”.

Mineral Resource
Refer to Table 1a to Paragraph (b) prepared in accordance with Regulation S-K 1300 (229.1303 (Item 1303)) that summarises the gold Mineral Resource (exclusive of Mineral Reserve) for Silicon at the end of the Crixás Greenstone Belt in central Brazil.Fiscal Year ended 31 December 2021 based on $1,500/oz. The Mineral Resource is reported for the first time under Regulation S-K 1300 and thus no net difference can be reported. There is no Mineral Reserve for Silicon at the end of the Fiscal Year ended 31 December 2021.





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Refer to the Key Parameters under Material Assumptions for additional information on cut-off grades and metallurgical recovery. For additional information, see the Technical Report Summary on each individual property, filed as an Exhibit of this annual report on Form 20-F.

Material Assumptions for the Mineral Resource

Key Parameters
SiliconUnitOpen Pit
Costs
Ore mining cost$/tonne mined2.03 
Waste mining cost$/tonne mined2.03 
Processing cost$/tonne treated3.82 
Closure cost$/tonne treated0.12 
Rehandling cost$/tonne treated0.80 
Fixed cost$/tonne treated0.38 
G&A$/tonne treated0.50 
Other Parameters
Metallurgical Recovery Factor%MetRF
56-82(1)
Slope anglesdegree
43-54(1)
Mineral Resource cut-off gradeg/t
0.14-0.21(1)
Mineral Resource price$/oz1,500 
(1) Vary according to rock / ore type

Estimation
The stratigraphyestimation of the beltMineral Resource considers a geological mineralisation model consisting of three zones based on geological alteration and gold grades, these are: a high-grade zone of over 1.0g/t of gold, a low-grade zone of between 0.35g/t and 1.0g/t of gold, and an outside zone of less than 0.35g/t that is dominated by basics and ultrabasicsmodelled to estimate metal to define dilution or waste zones. The composites are created at the average of the lower sequencessampling 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 volcano sedimentary units forminga 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 upper successions.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 depositsmaximum estimated distances respect the search volume distances for the three geological zones and there are hostedno zones where attributed grades are out of an estimated value. An insignificant number of negative grades estimated were replaced by average grades.

Conclusion
Identified significant risks or uncertainties in the Mineral Resource estimate can all be mitigated with further work if properly managed. Given the exploration stage of the project, a sequencenumber of schists, meta volcanicsrisks, uncertainties and dolomites occurringopportunities, are evident in a typical greenstone belt structural setting. Gold mineralisation is associated with massive sulphidesthe confidence of the known orebody and vein quartz material associated with carbonaceouspotential for upside at Silicon and sericitic schists and dolomites.  The oreshoots plunge to the north-west with dipping between 6 and 35 degrees. The stratigraphy

is overturned and thrusted towards the east, with recognised shear and thrust structures that are stacked. These control the mineralisation and behave as frontal and lateral ramps and horses.

The greenstone belt lithologies are surrounded by the TTG suite of Archaean tonalitic gneisses and granodiorites. The metamorphic sediments are primarily composed of quartz, chlorite, sericite, carbonaceous material and garnet bearing schists. The carbonates have been metamorphosed to ferroan dolomite marble with development of siderite and ankerite veining in the surrounding wallrock, usuallyarea. Similarly, metallurgical characteristics and variability require further investigation. Mining rate is an area of notable opportunity, as are selectivity studies. Environmental and permitting risks are mainly associated with quartz veins.potential delays to project progression and as such permitting remains on the critical path.




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Map showing Silicon planned infrastructure and licences
Map showing the location, infrastructure and mining license area for Silicon. The basaltscoordinates of the mine, as represented by the Silicon pit, are relatively unaltered but do show pronounced stretching with elongation of pillow structures being evident.

The Crixás greenstone belt comprises a series of Archaean to Palaeoproterozoic metavolcanics, 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 developed 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 juxtaposed to the main fault ramp/corner and become dispersed to the east and north in zones of foreland thrust flats. Alteration diminishes 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 decreases and disperses to the north and east along the formal thrust flat zone. Concentrations of gold within the quartz vein may be due to the damming of fluids migrating upward along layering.UTM coordinate system.



au-20211231_g18.jpg

COLOMBIA
Description
AngloGold Ashanti Colombia has three advanced greenfields projects,projects: La Colosa, Quebradona and Gramalote of which Quebradona and Gramalote have an Ore Reserve.Gramalote.

Colombia - Gramalote
Description
The Gramalote joint 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 (50%) and B2Gold Corp (B2Gold). Since(50%), with B2Gold being the beginning of 2020, B2Goldmanager, 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 responsible for the management of the Gramalote JV and AngloGold Ashanti and B2Gold now each hold 50 percent of the attributable shares in the Gramalote JV.currently an exploration stage project with no Mineral Reserve declared.







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Location
The Gramalote property is located near the towntowns of Providencia and San Jose del Nus within the municipality of San Roque in the, northwest Department of Antioquia, Colombia. It is approximately 230 kilometres230km northwest of the Colombian capital of Bogota and 124 kilometres124km northeast of Medellin, which is the regional capital of the Antioquia Department.

Geology
The region encompassing Gramalote has a long history of artisanal gold mining. Gramalote itself has had small scale artisanal mining for several decades priordeposit is an intrusive hosted, structurally controlled, quartz stockwork system. Mineralisation is controlled by northeast to exploration worksouthwest trending strike-slip shear zones, north-northwest to south-southeast trending extensional shear zones and mineral discovery by AngloGold Ashanti.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.


DevelopmentAlteration occurs as both broad zones and narrow selvedges around veins. The intensity of the Gramalote project commencedalteration 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 scoping study in 2009. A numberselvedge of studies followed, leadingK-feldspar with disseminated pyrite. The white-mica event is characterised by a less pervasive distribution than the potassic event and it is restricted to submissionselvedges of a prefeasibility studyfew 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 late 2013, which didsheeted 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 meet investment hurdles. From 2014contain 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 2017 intensive work was undertaken by all technical disciplines to identify ways to improve the project economics. The main changes were an improved orebody model, grade streaming to increase the feed grade in the early years and early treatment of the oxide ore that overlies the main sulphide resource. An enhanced prefeasibility study was completed in September 2017, which supported the reporting of a maiden Ore Reserve. In 2019, further geological refinement improved the project economics. The project has progressed to a feasibility study. Power is expected to be supplied to the Gramalote project from the national power grid.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 deposits.anomalies. The second is the 4894 concession which coversis 2,292.81ha and hosts the Trinidad deposit.anomaly. This concession expires inwas granted on 12 June 2021 but can be extended by 11 years if required. 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 federal royalty of 4 percent4% on 80 percent80% of the value of gold and silver production. Thus the GramaloteGramalote’s net royalty is 3.2 percent3.2% 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 is a surficial low-grade gold deposit suitable to be operated as a conventional open pit truck and shovel operation. Standard open pit mining equipment has been selected, with conventional drilling, blasting, loading and hauling using a combination of large-scale hydraulic shovel or excavator and rigid body dump trucks. The material mined would be transported to be either tipped directly into the crusher or stockpiled at the ROM stockpile to be fed or treated later. A PFS concluded that the project is suitable to be mined as a conventional open pit, with a strip ratio of approximately 2.5:1, and an average mining rate of 47Mtpa (max 60Mtpa). The LOM is estimated at 14 years (plus one year of pre-stripping).



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Operational infrastructure
Key infrastructure planned includes: a TSF, waste rock facility, site water management, a creek diversion, roads and bridges, central workshop, offices and camp, and a process plant. Power is expected to be supplied from the national power grid. Access is through a national road.

The Property, Plant, and Equipment as of the end of December 2021 including land, buildings & mine infrastructure, greenfields capitalised exploration and assets under construction had a carrying value of $55m (reported as attributable, 50% owned by AngloGold Ashanti).

Mineral processing
A range of treatment options for sulphide ore were investigated in previous studies, including whole ore leaching, heap leaching and a float leach process. The float leach process was selected as offering much better economics.
While the metallurgical design may change in the enhanced FS, the PFS design is as follows:
•Processing by two parallel semi-autogenous grinding streams, one treating 11.3Mtpa of sulphide ore and the other 4.1Mtpa of oxide ore, switching to sulphide once the oxide is exhausted
•Gold recovery post milling by flotation and concentrate leach in two separate circuits for sulphides and oxides
•Conventional tailings deposition

Qualified Persons
GramaloteQualified PersonProfessional OrganisationMembership numberRelevant Years ExperienceQualification
Mineral ResourceTom GellAusIMM21179530 yearsBSc (Geology), BSc Hons (Geology)
Mineral ReserveRomulo SanhuezaAusIMM21179424 yearsBSc Eng (Mining)

Exploration
Refer to “Item 4B: Business Overview—Exploration review”.

Mineral Resource
Refer to Table 1a to Paragraph (b) prepared in accordance with Regulation S-K 1300 (229.1303 (Item 1303)) that summarises the gold Mineral Resource (exclusive of Mineral Reserve) for Gramalote at the end of the Fiscal Year ended 31 December 2021 based on $1,400/oz. The Mineral Resource is reported for the first time under Regulation S-K 1300 and thus no net difference can be reported. There is no Mineral Reserve for Gramalote at the end of the Fiscal Year ended 31 December 2021.

Refer to the Key Parameters under Material Assumptions for additional information on cut-off grades and metallurgical recovery. For additional information, see the Technical Report Summary on each individual property, filed as an Exhibit of this annual report on Form 20-F.

Material Assumptions for the Mineral Resource

Key Parameters
GramaloteUnitOpen Pit
Costs
Ore mining cost$/tonne mined2.55
Waste mining cost$/tonne mined1.79
Processing cost$/tonne treated5.85
G&A$/tonne treated2.58
Other Parameters
Metallurgical Recovery Factor%MetRF
82-95(1)
Slope anglesdegree
27.4-57.6(1)
Mineral Resource cut-off gradeg/t
0.13-0.17(1)
Mineral Resource price$/oz1,400 
(1) Vary according to rock/ ore type and area Note: A royalty is also considered estimated at 3.2% of the selling price (80% of 4% of the selling price).



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Estimation
For the 2017 PFS, results from approximately 145,000m of drilling (87,900m at Gramalote Central, 11,250m at the Trinidad area and 17,850m at Monjas West area) were used to support the estimation of the Mineral Resource. Mineral Resource modelling was performed using a geological model based on alteration, vein abundance and gold grade. Assay gold grades were composited to 2m down-hole intervals and outliers were capped based on the distribution observations using probability plots for each estimation domain. LUC was used to estimate block grades and quantify the effect of selective mining.

As drill assays are still pending for some of the drilling completed in 2021, the updated Mineral Resource model update is not yet complete and hence it has not yet been incorporated into the Mineral Resource statement which continues to use the 2017 AngloGold Ashanti PFS model.

Mineral Reserve
Year on year changes in Mineral Reserve - Moz
as at 31 December 2021Gramalote
CategoryProvenProbableTotal
Previous Year— 1.723 1.723 
Depletion— — — 
Exploration— — — 
Methodology— — — 
Price— — — 
Cost— — — 
Geotechnical— — — 
Metallurgical— — — 
Operational— — — 
Acquisition / Disposal— — — 
Other— (1.723)(1.723)
Current Year— — — 
Net Difference— (1.723)(1.723)
% Difference— (100)(100)
The Mineral Reserve has not been quoted on the New York Stock Exchange (“NYSE”) due to the uncertainty of using Inferred Mineral Resource in generating the Mineral Reserve and due to differences in the Mineral Resource estimate between the joint operation partners. AngloGold Ashanti are currently incorporating additional drilling into a revised model and have not reached agreement with the joint operation partner and thus no Mineral Reserve will be published.

Conclusion
The low-grade Inferred Mineral Resource estimate has low confidence and therefore represents a high-risk part of the Mineral Resource estimate due to the broad drill spacing. As a risk mitigation action, grade control test blocks were drilled to confirm short-scale continuity, mineralisation geometry and geological contacts. In November 2019 a 40,000m drilling program commenced across the anomalies to reduce risk and verify projected upside. The results of this became available during 2021, and as a result additional specific areas were targeted for supplementary drilling. The results to this latest drilling is expected in quarter one of 2022 which will be used to update the Mineral Resource model and the economic studies for the project.

Poor digitising practices by the Colombian authorities of the 11 original licences that make up the main mining licence concession (14292), have created slithers of open ground that cross the Gramalote deposit. These have been claimed by a third party (Zonte Metals). While AngloGold Ashanti believes that Zonte does not have a valid claim, Zonte is proceeding with legal action against the Secretaria de Minas (Secretary of Mines) for the Department of Antioquia, for not titling an exploration application for the open ground.

A number of Mineral Reserve estimate risks or uncertainties have been recognised, all of which have detailed risk mitigation strategies in place, including:
•Artisanal miners within the project footprint area that are being formalised at arm's length using Government agencies that guide, fund and regulate their activities
•The 2018 baseline study identified 271 social economic units that may have to be relocated and resettled



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The land acquisition process has been successful. A total of ~3,132ha has been acquired (63.6%), 567ha in promise of sale, and 635ha under special acquisition process. The total land pending to be acquired amounts ~590ha (12%).

Map showing Gramalote planned infrastructure and licences
Map showing Gramalote project planned infrastructure and licenses, with the total mining lease area insert shown in the top right corner. The coordinates of the mine, as represented by the planned pit, are depicted on the map and are in the UTM coordinate system.

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LA COLOSA

Property description
La Colosa is an exploration project that is wholly owned and managed by AngloGold Ashanti. It 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 Colombian 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 Gramaloteporphyry gold deposit deposit forms part of what is locatedgenerally known as the Middle Cauca Metallogenic Belt. The best known porphyry (Cu-Au, Au-Cu, Au) and intermediate sulphidation Au-Ag deposits in the northern portionMiddle Cauca Metallogenic Belt are the Marmato and the Buritica mining operations. Advanced exploration studies exist for the Quebradona, the Titiribi, and the La Mina deposits.

The La Colosa porphyry complex consists of three intrusive stages: the early, the intermineral, and the late-stage magmatic event. The complex exceeds 3km2 in areal extent. The U-Pb ages obtained range between 7.4Ma and 8.5Ma indicating the emplacement of the early, intermineral and late intrusive porphyry stocks occurred during a very



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short time span of about 1.1Ma. The emplacement of the La Colosa and San Antonio porphyry stocks caused contact metamorphism that transformed the proximal country rocks into hornfels. Recent volcanism in the Central Cordillera of Colombia.accounts for an ash cover varying between 0.5m and 15m thick. The terrainsource is mainly composed of a metamorphic basement complex and the Antioquia Batholith. The terraneCerro Machin stratovolcano, located about 17 km to the east of the Cajamarca-Valdivia basement consistsLa Colosa project site.

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 metamorphic rocks, volcanic rocks, oceanic ophiolitesporphyry 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 intrusive rocks.D-type veinlets The Antioquia Batholith, whichveinlets occur in the early, intermineral and late porphyries, as well as in the schistose 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 2008.

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 Upper Cretaceous age, coversoptions 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 area of 7221 km2initial 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 constitutes the coreoffice and surface infrastructure for pre-logging and organisation of the Central Cordillera. About 92 percentdrilling core. There is a core shed facility in the city of Ibague where geological and geotechnical logging are performed. However, all work has stopped.

The Property, Plant and Equipment as of the end of December 2021 including land, buildings and mine infrastructure and greenfields capitalised exploration costs had a carrying amount of $17m for La Colosa and $1m for Kedahda consolidated.

Mineral processing
The project is currently at an early stage however flotation of sulphide ore is being considered as a treatment option.

Qualified Persons
La ColosaQualified PersonProfessional OrganisationMembership numberRelevant Years ExperienceQualification
Mineral ResourceRudolf JahodaAusIMM99054428 yearsMSc (Mining Geology), PhD (Geology)

Exploration
No exploration occurred at La Colosa.

Mineral Resource
Refer to Table 1a to Paragraph (b) prepared in accordance with Regulation S-K 1300 (229.1303 (Item 1303)) that summarises the gold Mineral Resource (exclusive of Mineral Reserve) for La Colosa at the end of the Fiscal Year ended 31 December 2021 based on $1,400/oz. The Mineral Resource is reported for the first time under Regulation S-K 1300 and thus no net difference can be reported. There is no Mineral Reserve for La Colosa at the end of the Fiscal Year ended 31 December 2021.




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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 intrusive correspondsannual report on Form 20-F.

Material Assumptions for the Mineral Resource

Key Parameters
La ColosaUnitOpen Pit
Costs
Ore mining cost$/tonne mined2.1
Waste mining cost$/tonne mined2.3
Processing cost$/tonne treated8.98
G&A$/tonne treated1.74
Other Parameters
Metallurgical Recovery Factor%MetRF
82.2-87.3(1)
Slope angles - Hangingwalldegree
34-50(1)
Mineral Resource cut-off gradeg/t0.35
Mineral Resource price$/oz1,400 
(1) Vary according to rock / ore type

Estimation
At La Colosa, approximately 148,062m of drilling supports the estimation of an Indicated Mineral Resource. Gold grades were estimated using ordinary kriging, which was performed into a block size of 50 x 50 x 10m using wireframed lithological domains in a grade-based mineralisation envelope. Estimates were also undertaken for the waste surrounding the mineralisation.

All available geological drill holes, surface sampling and mapping information was validated and used in the modelling process.

The La Colosa Mineral Resource is reported at a cut-off grade of 0.35g/t and it has been classified on the basis of kriging variance related to tonalitedrill hole spacing.

Conclusion
The La Colosa project is currently at an early project stage and granodiorite and eight percent to two subordinate typeshas identified a number of rocks - granodiorite to quartz-monzonite and gabbro. From a structural pointpossible technical options all of view,which are capital intensive. The political risks associated with the Antioquia Batholith has a history of uplift. Major lineaments affectmining industry in Colombia, specifically in the batholith,

especiallyTolima Department, must also be considered in its eastern sector where they trend west northwest varying to northwest, where they show rotation and sinistral shear 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/ south-southeast trending shear extensional zones affecting the tonalites and granodioritesestimation of the Antioquia Batholith. Gold mineralisationMineral Resource. The delineation of the Los Nevados Páramo by Resolution 1987 in November 2016 is associated with three overprintingconsidered a risk or uncertainty in the Mineral Resource estimate and texture destructive alteration assemblages namely: potassic, quartz-sericiteit 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 and sericite carbonate. Within these alteration zones, anomalous gold mineralisationit is associated with three typesthe reason 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 quartz vein stockworks. These include quartz veinlets with fine-grained pyrite, quartz-carbonate veinletsthe mine, as represented by the pit, are depicted on the map and quartz veinlets with granular pyrite.are in the UTM coordinate system.


Colombia - Quebradona
Description



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QUEBRADONA

Property description
The Quebradona project iswas previously a JV between AngloGold Ashanti and B2Gold, and has completed a conceptual study (2016) as well as a prefeasibility studyPFS (2018), which supported the reporting of a maiden OreMineral Reserve.

The project has progressedNuevo 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 a feasibility study.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 percent5% which resulted intriggered AngloGold Ashanti becoming the 100 percent owner. The Quebradona project is situated in100% 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 Middle Cauca regionNet Profit generated from the sale of Colombia, in the Department of Antioquia, 60 kilometres south-west of Medellin.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.targets and the sole mineral deposit considered in the FS and licensing process. Nuevo Chaquiro, a significant copper-gold porphyry,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 75 kilometres75km of drilling completed. Nuevo Chaquiro was the sole deposit considered in the feasibility study.

Quebradona comprises one tenement (5881) which is the result of the integration of the five original tenements (5869, 6318, 6359, 7579 and 5881). Integrated tenement 5881 was issued on the 9 December 2016 and totals 7,593ha.

drilling. Quebradona will be a copper mine with gold and silver as by-products and is at a development stage.

Location
The Quebradona project is situated in the Middle Cauca region of Colombia, in the Department of Antioquia, 60km southwest of Medellin and is a 104km commute using the national highway.




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Geology
Nuevo Chaquiro is a typical porphyry copper deposit with large tonnes and low-grade, with gold, molybdenum and silver by-products. The structural setting facilitated the rise of intrusive bodies through the volcaniclastic sequence of the Combia formation.

The Nuevo Chaquiro deposit consists of Miocene-aged diorite, quartz diorite dykes and thin vertical stocks intruding a thick succession of andesitic tuffs and volcaniclastic rocks of the Miocene-age (6 to 10Ma) belonging to Combia formation. The Combia formation fills a large pull-apart basin within the prospective middle Cauca belt of central Colombia. Depth to mineralisation from the surface is around 150 to 400m from northeast to southwest. Typical copper porphyry alteration zonation is evident with a high temperature, potassium silicate central zone (biotite, magnetite, chalcopyrite, and molybdenite), which trends into an overlying sericitic alteration zone (muscovite, chlorite, quartz, pyrite, tourmaline) surrounded by more distal propylitic alteration (chlorite, epidote, illite, carbonate). There is an inner core of calcic-potassic alteration featuring biotite, actinolite, epidote, and anhydrite with lesser copper, gold and molybdenum values.

History
Exploration was carried out from 2004 by AngloGold Ashanti and then from 2006 to 2009 by B2Gold. In 2010 AngloGold Ashanti took management control and focused its exploration effort on Nuevo Chaquiro. In 2014 a conceptual study was initiated which resulted in a declaration of a maiden Mineral Resource in that year. A PFS was completed in January 2019 and a FS completed in 2021. The FS review raised several points which will be addressed during the pause period caused by the delay in the environmental permitting.

Legal aspects and tenure
Refer to “Item 4B: Business Overview—The Regulatory Environment Enabling AngloGold Ashanti to Mine—Americas—Colombia—AngloGold Ashanti’s rights and permits”.

Mining method
The Quebradona project is a greenfields site having completed an initial FS in 2021 which is expected to be formally approved following the granting of the environmental and mining licenses that supports the preferred mining method of sub-level caving to extract the ore deposit from underground. The optimised mine design consisting of a revised mining layout and mine schedule is based on the 2021 Mineral Resource model. With the application of operating factors, the relevant cut-off grades, and modifying factors the December 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 HV/MVhigh voltage or medium voltage power infrastructure. The planned mining method is sub level caving. The planned underground infrastructure consists of an adita 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 6 kilometre6km conveyor, in a dedicated adit to a single coarse ore stockpile.

Geology
The hostProperty, Plant, and Equipment as of the 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 extracted from the sub-level cave is crushed underground where waste debris and tramp metal is removed before loading onto the 6km underground conveyor system for delivery to the surface processing coarse ore stockpile with a 24-hour live capacity (approximately 21,300t).




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The processing circuit includes underground primary crushing, secondary crushing, high pressure grinding rolls, ball milling, rougher-scavenger flotation for all elements (copper, gold, silver as well as pyrite), followed by regrinding of the concentrate and cleaning using a combination of column and mechanically agitated cells. The majority of the pyrite in the ore reports to the cleaner circuit tails and will be stored in a lined and eventually sealed impoundment within the TSF to avoid any potential acid rock geologydrainage from the bulk high volume rougher tails.

The Quebradona process plant is designed to treat approximately 6.2Mt of material annually to produce copper concentrate over a 23-year operating period. Molybdenum is present in the ore and is not planned for recovery in the initial stages of production.

Qualified Persons
QuebradonaQualified PersonProfessional OrganisationMembership numberRelevant Years ExperienceQualification
Mineral ResourcePablo Luis NoriegaAusIMM31568823 yearsBSc Hons (Geology)
Mineral ReserveAndrew McCauleyAusIMM22369217 yearsGraduate Dip (Mining)

Exploration
Refer to “Item 4B: Business Overview—Exploration review”.

Mineral Resource
Refer to Table 1a to Paragraph (b) prepared in accordance with Regulation S-K 1300 (229.1303 (Item 1303)) that summarises the gold Mineral Resource (exclusive of Mineral Reserve) for Quebradona at the end of the Fiscal 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 Fiscal Year ended 31 December 2021 based on $3.50/lb. 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 on costs 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
Mineral Resource parameter summary - Quebradona
Parameter
Commodity prices - unitCu $/lbAu $/ozAg $/0zMo $/lb
Commodity prices - value3.50$1,500 25.1512
Metallurgical Recoveries - unitCu %Au %Ag %Mo %
Metallurgical Recoveries - value93.658.683.6534.1
Parameter
Costs - unitCosts - value
Mining cost $/t8.32
Processing cost $/t11.98
G&A (owner cost) $/t3.03
TSF $/t2.27
Closure $/t0.3
Environmental compensation $/t0.11
Environmental compensation general $/t0.06
Exploration cost $/t0.11
Social payment $/t0.46
Severance payment $/t0.26
Total for break even cut-off $/t26.9





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Estimation
Estimation uses industry standard ordinary kriging to determine grades. The estimate validation is done graphically on a section by section basis comparing the block model to drill hole geological data, swath plots and statistical comparisons using average samples and average grade block comparisons are also used. New models are compared to old models to check changes. Gaussian anamorphosis with a change of support is used to check global grade-tonnage curves

The parent block size for estimation used is 40 x 40 x 20m with the overall drill spacing being approximately 80 x 80m. Typical searches are from 135m to 286m (typical for copper in high and low-grade respectively).

Estimation is done into different domains which are joined post estimation. Two domains for copper, one for molybdenum, two for sulphur and one for high-grade gold to the west are estimated.

Mineral Reserve
Refer to Table 2ato Paragraph (b) prepared in accordance with Regulation S-K 1300 (229.1303 (Item 1303)) that summarises the gold Mineral Reserve for Quebradona at the end of the Fiscal Year ended 31 December 2021 based on $1,200/oz. Refer to Table 2b to Paragraph (b) prepared in accordance with Regulation S-K 1300 (229.1303 (Item 1303)) that summarises the copper Mineral Reserve for Quebradona at the end of the Fiscal Year ended 31 December 2021 based on $2.90/lb.

Refer to the Modifying Factors and price estimates under Material Assumptions for additional information on cut-off grade and metallurgical recovery. For additional information, see the Technical Report Summary on each individual property, filed as an Exhibit of this annual report on Form 20-F.

Year on year changes in Mineral Reserve - copper (Mlb) and gold (Moz)
as at 31 December 2021Quebradona - copper (Mlb)Quebradona - gold (Moz)
CategoryProvenProbableTotalProvenProbableTotal
Previous Year— 3,105 3,105 — 2.486 2.486 
Depletion— — — — — — 
Exploration— — — — — — 
Methodology— 145 145 — 0.113 0.113 
Price— — — — — — 
Cost— — — — — — 
Geotechnical— — — — — — 
Metallurgical— — — — — — 
Operational— — — — 
Other— — — — — — 
Acquisition / Disposal— — — — — — 
Current Year— 3,250 3,250 — 2.599 2.599 
Net Difference— 145 145 — 0.113 0.113 
% Difference— 5 5 — 5 5 

Result of an update in the Mineral Resource model due to three new drill holes, in addition to revised Mineral Reserve classification based on conditional simulation.

Material Assumptions for the Mineral Reserve

Modifying factors and price estimates
as at 31 December 2021Quebradona
Primary Commodity Price(1)
$/lb2.90
Exchange Rate$/COP3,208 
Cut-off grade
NSR$/t(2)
30
Percentage Tonnes Dilution%4.14
Cu dilution%0.34
Au dilution(g/t)0.23
Ag dilution(g/t)2.13



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Cu Mine Call Factor% MCF100
Cu Metallurgical Recovery Factor(%MetRF)93.6
Au Metallurgical Recovery Factor(%MetRF)58.6
Ag Metallurgical Recovery Factor(%MetRF)83.6
(1) Primary commodity is copper. Gold price used is $1,200/oz. By-products prices include $18.67/oz for silver. (2) Net Smelter Return $ per tonne

Estimation
The underground Mineral Reserve is based on the most economic portions of the Mineral Resource model contained within a predetermine minable boundary based on a $30/t NSR cut-off grade that takes into account mining factors and mill recovery assumptions. The mining shapes are based on Measured and Indicated Mineral Resource with a portion of external material to provide an in situ $48/t NSR for project capital payback and $26/t NSR breakeven grade for processing of development waste.

Conclusion
Several risks or uncertainties have been identified in the estimation of the Mineral Resource and Mineral Reserve, which if properly managed can be mitigated. Lateral contacts of the high-grade mineralisation could vary as new information is obtained and supports a progressive drilling campaign to obtain new information well in advance of approving the final development design. Security risk to the Mineral Resource and Mineral Reserve estimate is considered low, while Nuevo Chaquiro compriseshas a volcaniclastic sequencemoderate seismic risk to the Mineral Resource and Mineral Reserve.

Approximately 97% of Miocene age (ash, tuffs, agglomerates and andesites) intruded by small dykesthe 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 diorite and quartz diorite, alsothe Minera de Cobre Quebradona Project. All efforts arecurrently being made to address the identified shortcomings of Miocene age. The intrusions are by various pulses of dioritesthe EIA submission, with the primary intrusive being a fineintent to medium grained quartz diorite. Mostresubmit 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 intrusives do not outcrop. These intrusivesmine, as represented by the helipad, are categorised into pre-mineral, early, intra-mineraldepicted on the map and late, according to cross cutting relations, locality and copper-gold values.are in the UTM coordinate system. The developed alteration follows a well zoned porphyry type alteration system ranging from a high temperature, potassium silicate centralcopper ore zone (biotite, magnetite, chalcopyrite, and molybdenite), which trends into an overlying sericitic alterationenvelope of 0.45% is shown at the intersection of the ore zone (muscovite, chlorite, quartz, pyrite,+-tourmaline) surrounded by more distal propylitic alteration (chlorite, epidote, illite, carbonate). There is also an inner core of calcic-potassic alteration featuring biotite, actinolite, epidote, and anhydrite with lower copper, gold and molybdenum values. The mineralised zone is characterised by fine stock works, disseminations and veinlets of quartz, magnetite, pyrite, chalcopyrite and molybdenite.at 1700 metres AMSL.







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AUSTRALIA


DescriptionAngloGold Ashanti operates two mines and has one new project in Western Australia.
Australia comprises two operational mines.
Sunrise Dam, whichwholly owned by AngloGold Ashanti, is located 205km northeast of Kalgoorlie and 55km south of Laverton. Gold production started at Sunrise Dam in 1997. Underground mining, carried out by a contract mining company, is now the primary source of ore for the operation, following the cessation of mining in the main Cleo open pit in 2014. Open pit mining, also carried out by a contract mining company, is currently underway at Golden Delicious, a satellite pit located 8km north of the Sunrise Dam plant. The owner-operated processing plant comprises conventional gravity and CIL circuits, with a flotation and fine grind circuit commissioned in mid-2018 to improve metallurgical recovery.

Tropicana, a joint operation between AngloGold Ashanti (70% and operator), and AFB Resources Pty Limited a subsidiary of Regis Resources Limited. (30%), is located 200km east of Sunrise Dam and 330km east-northeast of Kalgoorlie. The operation poured first gold in September 2013. Tropicana is a large open pit and underground operation with mining carried out by a contract mining company. The processing plant is owner-operated comprising conventional CIL technology and high-pressure grinding rolls for energy-efficient comminution. A second ball mill was added to the grinding circuit in 2018 to optimise the circuit, improve metallurgical recovery and match mine output.

Butcher Well, a JV between AngloGold Ashanti (70%) and Northern Star Resources Limited (“Northern Star Resources”) (30%), is located 20km west of the Sunrise Dam Mine and is considered as a potential satellite operation.






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SUNRISE DAM

Property description
Sunrise Dam is an active underground and open pit mine that is wholly owned and Tropicana Gold Mine,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 JV with IGO Limited, which holds a 30 percent stake, are both located in Western Australia. Mining is from both open pit and underground, with Sunrise Dam currently being an underground mine and Tropicana an open pit with underground in development.production stage.


Australia - Sunrise Dam
DescriptionLocation
Sunrise Dam which is wholly owned, is located 220 kilometres northeastapproximately 205km north-northeast of Kalgoorlie and 55 kilometres55km south of Laverton in Western Australia. Underground mining,

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 ductile 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 conductedhosted. 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 contract mining company, is the primary sourcesuite of ore, with supplementary mill feed providedgranitoids, which intrude intermediate to mafic volcanic and volcaniclastic greenschist host rocks. The area has been deeply weathered, partly eroded, and blanketed by stockpiles.transported lateritic gravels.


History
Open pit production began in 1997 wasand the main pit (Cleo) completed at a final depth of 500 metres500m below surface.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. By 2014,In 2021, mining commenced at the mine was wholly anGolden 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 mining operation supplemented with stockpile feed. operations.

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.


Sunrise Dam operates within two mining leases covering over 7,800ha, which are in good standing with the expiry dates in 2038. All Mineral Resource, Ore Reserves and mine infrastructure are hosted within lease M39/1116 while lease M39/1117 hosts water extraction infrastructure used to supply the operation with water.

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 productivity improvements overconsists of conventional drill and blast and load and haul activities, with ore stockpiled on the past few years has seen totalsurface 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 tonnages mined reach a steady state of around 2.8Mtpa. This has been possible by the use of bulk mechanised sub-level open stoping using stabilising pillarsinfrastructure caters for all ventilation and waste backfill where possible. Paste fill has been introduced in selected areas from 2019 to improve ore recoverydewatering needs with provisions made in the higher grade partsbudget for extensions and upgrades.




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The Property, Plant, and Equipment as of the Vogue ore zone. Ore is treated inend of December 2021 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 conventional gravity and CIL process plant. Installationcarrying value of a new fine grind and flotation circuit was completed the second half of 2018. The plant throughput rate for Sunrise dam is 4.1Mtpa. Power$213m.

Mineral processing
Processing at Sunrise Dam is self-generated,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 mine uses natural gas supplied via an APA Operations (Pty) Limited pipeline.

Geology
Gold oregold, with the CIL circuit and Anglo American Research Laboratories (“AARL”) elution used to recover the remainder. Electrowinning recovers gold from the Acacia™ reactor and eluted to produce gold doré. The plant throughput at Sunrise Dam is structurally4.1Mtpa.

Qualified Persons
Sunrise DamQualified PersonProfessional OrganisationMembership numberRelevant Years ExperienceQualification
Mineral ResourceDavid PerkinAusIMM32623913 yearsBSc Hons (Geology), MSc (Geology), Postgraduate Certificate (Geostatistics)
Mineral Reserve (underground)Cailli KnievelAusIMM20538825 yearsBEng (Mining Engineering)
Mineral Reserve (surface)Joanne EndersbeeAusIMM33453712 years—

Exploration
Refer to “Item 4B: Business Overview—Exploration review”.

Mineral Resource
Refer to Table 1a to Paragraph (b) prepared in accordance with Regulation S-K 1300 (§ 229.1303 (Item 1303)) that summarises the gold Mineral Resource (exclusive of Mineral 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 lithologically controlledthus no net difference can be reported.

Refer to the Key Parameters under Material Assumptions for additional information on cut-off grades and metallurgical recovery. For additional information, see the Technical Report Summary on each individual property, filed as an Exhibit of this annual report on Form 20-F.

Material Assumptions for the Mineral Resource

Key Parameters
Sunrise DamUnitOpen Pit
Costs
Ore mining cost$/tonne mined3.25 
Waste mining cost$/tonne mined1.04 
Processing cost$/tonne treated19.23 
G&A$/tonne treated3.84 
Other Parameters
Metallurgical Recovery Factor%MetRF92
Slope anglesdegree
28-59(1)
Mineral Resource cut-off gradeg/t0.5
Mineral Resource priceAUD/oz2,072 
(1) Vary according to rock type

Sunrise DamUnitUnderground
Costs
Lateral development (average)$/tonne ore mined10.97 
Vertical development (average)$/tonne ore mined2.40 
Production$/tonne ore mined18.39 
Material handling$/tonne ore mined9.36 



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Mine Services$/tonne ore mined3.79 
Processing cost$/tonne treated19.23 
Other Parameters
MSO optimising cut-offg/t1.65 
Mineral Resource cut-off gradeg/t1.10 
Mineral Resource priceAUD/oz2,072 
Metallurgical Recovery Factor%MetRF83.4

Estimation
Estimation of the underground Mineral Resource uses the geological model boundaries to subdivide all drill hole data into appropriate domains. The geostatistical method of ordinary block kriging is used to estimate the Mineral Resource. High-grade restraining is used to limit the effects of outlier grade values. Dense patterns of underground RC drilling are completed prior to the final mine design, upon which, grade control models are created using conditional simulation. This allows for the probabilistic determination of the optimal mining stope configuration. Mining of the open pit Mineral Resource was completed in early 2014. Remaining stockpiled material is estimated based on detailed grade control drilling completed prior to mining. Grades were estimated by means of the conditional simulation geostatistical method.

The Golden Delicious deposit has been estimated using LUC. All available geological drill hole information is validated for use in the models and the local geology of the deposit is used to classify the drill hole information into appropriate estimation domains. Detailed statistical analyses are conducted on each of these domains and this allows for the identification of high-grade outliers. If these values are anomalous to the characteristics of the general population they are then cutback to an appropriate upper limit for the population.

Mineral Reserve
Refer to Table 2ato Paragraph (b) prepared in accordance with Regulation S-K 1300 (§ 229.1303 (Item 1303)) that summarises the gold Mineral Reserve for Sunrise Dam at the end of the Fiscal Year ended 31 December 2021 based on $1,200/oz (AUD 1,633/oz).

Refer to the Modifying Factors and price estimates under Material Assumptions for additional information on cut-off grades and metallurgical recovery. For additional information, see the Technical Report Summary on each individual property, filed as an Exhibit of this annual report on Form 20-F.

Year on year changes in Mineral Reserve - Moz
as at 31 December 2021Sunrise Dam
CategoryProvenProbableTotal
Previous Year0.543 0.607 1.150 
Depletion(0.139)(0.104)(0.243)
Exploration0.166 0.257 0.423 
Methodology0.236 0.213 0.449 
Price— 0.002 0.002 
Cost(0.167)(0.170)(0.337)
Geotechnical(0.056)(0.101)(0.157)
Metallurgical(0.001)(0.004)(0.005)
Operational0.006 0.019 0.025 
Acquisition / Disposal— — — 
Other— — — 
Current Year0.588 0.718 1.307 
Net Difference0.046 0.111 0.156 
% Difference8 18 14 

The increase in the reported Mineral Reserve is due to exploration success and a revised methodology for underground stope optimisation offset by more conservative extraction ratios and increased unit costs.






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Material Assumptions for the Mineral Reserve

Modifying factors and price estimates
as at 31 December 2021Sunrise Dam
Primary Commodity Price(1)
$/oz1200
Exchange RateAUD/$0.74
Cut-off gradeg/t
0.75(2); 1.65(3)(4)
Stoping widthcm
1080(3)
Dilution%
5.6(3)
Dilutiong/t
0.7(3)
Resource Modification Factor%RMF based on tonnes100
Resource Modification Factor%RMF based on g/t100
Mining Recovery Factor%MRF based on tonnes100
Mining Recovery Factor%MRF based on g/t100
Mine Call Factor%MCF100
Metallurgical Recovery Factor%MetRF
83.4(3)(4); 92(2)
(1) The 2021 Mineral Reserve estimate reflects that the mine is two years into a three-year "growth through exploration" phase that aims to unlock the value of the asset, with Mineral Reserve growth the initial step in a move towards realising the full asset potential. The Mineral Reserve has been evaluated economically and shown to be cashflow positive at a $1,500/oz gold price, however, the inventory used to develop the Mineral Reserve has been estimated using a mine-constrained break-even cut-off determined at a $1,200/oz gold price under budget cost conditions across the six-year Mineral Reserve life. (2) Open pit (3) Underground (4) Stockpile Underground
The modifying factors applied to the Sunrise Dam Mineral Reserve have been based on historic reconciliation results, where a long-term positive reconciliation trend has been identified. As a result, the applied factors can be considered aggressive when compared to the industry norms. Steps have been taken throughout 2021 to review the reconciliation data in support of maintaining 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 such 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 move toward optimisation through 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.

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.




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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.




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172

BUTCHER WELL

Property description
Butcher Well is a JV with Northern Star Resources Limited, (AngloGold Ashanti 70%, and Northern Star Resources Limited 30%). The JV encompasses two tenement packages, Butcher Well and Lake Carey, covering approximately 339.56km2. AngloGold Ashanti also holds a significant tenement package adjacent to the Northern Star JV properties. The project is in the exploration stage, with no Mineral Reserve declared. An Inferred Mineral Resource is stated, which has been the subject of a conceptual study. The Butcher Well project is managed by AngloGold Ashanti.

Location
The Butcher Well Project is located in the Laverton district of Western Australia, 20km southwest of AngloGold Ashanti’s Sunrise Dam Gold Mine and 180km northeast of Kalgoorlie. The Sunrise Dam airstrip is approximately 70km by road from the project, with a travel time of approximately 90 minutes, on the current road going around the southern part of Lake Carey. Lake Carey is a large salt lake that covers a part of the western project area, Sunrise Dam lies to the east of the lake and the Butcher Well project lies on the western shore.

Geology
The Butcher Well Mineral Resource is an orogenic-style gold system hosted within gently dipping high strain shear zonesthe 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 brittle-ductilenorth-south trending panels. Supergene gold dispersion and enrichment broadens the mineralised envelope within the near-surface saprolitic material. Much of this material has been previously exploited in shallow open pits.

History
The Butcher Well deposits were discovered in the late 1980s by Billiton Australia Gold Limited, with the original mining leases pegged in 1988. Exploration over the deposits and surrounding area continued into the early 1990s. A mining proposal was submitted in 1993 and a Mineral Resource of 255koz gold at 2.9g/t declared across the Butcher Well, Crimson Belle and Thin Lizzy deposits. In 1994, with the project under a JV between Sons of Gwalia Limited and Mount Burgess Gold Mining Company N.L., a study was undertaken by Sons of Gwalia to examine the feasibility of mining and 43koz gold was produced from the Butcher Well, Enigmatic and Hronsky pits.

Following the collapse of Sons of Gwalia in 2004, St Barbara Mines acquired all their holdings and sold on the South Laverton assets, including Butcher Well, to Saracen Mineral Holdings in 2006. Saracen continued exploration at Butcher Well, leading to several Mineral Resource and Mineral Reserve updates. In 2012 limited open pit mining was completed at Butcher Well with approximately 12koz gold produced from the Sizzler and Old Camp pits. In 2021, Saracen Mineral Holdings and Northern Star Resources merged, to form the merged entity known as Northern Star Resources Limited.

Legal aspects and tenure
Refer to “Item 4B: Business Overview—The Regulatory Environment Enabling AngloGold Ashanti to Mine—Australia—AngloGold Ashanti’s rights and permits”.

Mining method
As the project is still in a conceptual study phase, no mining has yet taken place as part of the current JV. Open pit mining is expected to be conventional open cut, drill and blast, followed by truck and excavator operation to develop the deposits. Underground mining is likely to be Transverse Longhole Open Stoping.

Operational infrastructure
Power is likely to be generated on-site via diesel generators. Water can be sourced from the existing flooded pits or bores. Ore material will be trucked to Sunrise Dam via existing secondary roads.

The Property, Plant and Equipment as of the end of December, 2021 had a carrying value of less than $1m due to the early stage of the project and the limited infrastructure onsite.

Mineral processing
Ore from Butcher Well will be processed at the Sunrise Dam processing plant. Processing at Sunrise Dam is via a conventional three-stage crushing, two-stage milling CIL circuit, with a pyrite flotation and ultrafine grinding circuit commissioned in 2018. The gravity circuit recovers approximately 30% of the gold, with the CIL circuit and AARL elution used to recover the remainder. Electrowinning recovers gold from the Acacia™ reactor and eluate to produce



173

gold doré. Plant throughput at Sunrise Dam is 4.1Mtpa, and Butcher Well ore will supplement ore production from the Sunrise Dam underground mine to maintain the mill throughput.

Qualified Persons
Butcher WellQualified PersonProfessional OrganisationMembership numberRelevant Years ExperienceQualification
Mineral ResourceMark KentAusIMM20363124 yearsBSc Hons (Geology), MSc (Mineral Resource Evaluation)

Exploration
Exploration is ongoing, with a drilling campaign completed in 2021 and additional drilling likely to occur over the next few years. Exploration during 2021 targeted infill and extensions to the underground mineralisation in the Camp Zone. The project area contains a mix of recent and historical drilling. AngloGold Ashanti has completed DD and RC drilling over the areas reported as a Mineral Resource. The project is at conceptual study phase, with a move to PFS possible in 2022 or 2023.

Mineral Resource
Refer to Table 1a to Paragraph (b) prepared in accordance with Regulation S-K 1300 (§ 229.1303 (Item 1303)) that summarises the gold Mineral Resource (exclusive of Mineral Reserve) for Butcher Well at the end of the Fiscal Year ended 31 December 2021 based on $1,500/oz (AUD 2,072/oz). The Mineral Resource is reported for the first time under Regulation SK-1300 and thus no net difference can be reported. There is no Mineral Reserve for Butcher Well at the end of the Fiscal Year ended 31 December 2021.

Refer to the Key Parameters under Material Assumptions for additional information on cut-off grades and metallurgical recovery. For additional information, see the Technical Report Summary on each individual property, filed as an Exhibit of this annual report on Form 20-F.

Material Assumptions for the Mineral Resource

Key Parameters
Butcher WellUnitOpen Pit
Costs
Ore mining costAUD/tonne mined16.54
Waste mining costAUD/tonne mined3.13
Processing costAUD/tonne treated26.85
G&AAUD/tonne treated6.16
Other Parameters
Metallurgical Recovery Factor%MetRF79.0
Slope anglesdegree
35 - 53(1)
Mineral Resource cut-off gradeg/t0.7
Mineral Resource priceAUD/oz2,072 
(1) Vary according to rock type

Butcher WellUnitUnderground
Costs
Lateral development (average)AUD/tonne ore mined35.46
Vertical development (average)AUD/tonne ore mined35.46
ProductionAUD/tonne ore mined58.03
Material handlingAUD/tonne ore mined19.4
Backfill / OthersAUD/tonne ore mined2.4
Processing costAUD/tonne treated8.5
Other Parameters
MSO optimising cut-offg/t2.1
Mineral Resource cut-off gradeg/t2.1



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Mineral Resource priceAUD/oz2,072 
Metallurgical Recovery Factor%MetRF79.0

Estimation
Mineral Resource models for the Butcher Well project have been generated using the geostatistical technique of LUC. The SMU modelled was 5 x 10 x 5m with information effect applied. The data was composited to 2m down-hole lengths, with top-cuts (capping) applied to the data after examining cumulative histograms of each domain. Search distances reflected the variable data spacing in the deposit with 120 x 120 x 30m used for panel kriging. A minimum of 8 and a maximum of 32 samples was used in the estimate.

Conclusion
Butcher Well has been the focus of a conceptual study. Further exploration was completed in 2021 to further define the mineralisation. The project contains a mix of historical and new drilling. Only areas that have had follow-up drilling by AngloGold Ashanti have been reported in the current Mineral Resource estimate. Further drilling in and around the old open pits is required to confirm the mineralisation, which may represent some upside to the Mineral Resource. The fresh rock in the north of the project area is highly refractory, with low strain shear zones. Host rocks include andesitic volcanic rocks, volcanogenic sedimentsmetallurgical 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 magnetic shales.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.
Australia - Tropicana
Description



175

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176

TROPICANA

Property description
Tropicana is comprised of a number of open pits and underground mines that are operated as a joint ventureoperation between AngloGold Ashanti (70 percent(70% and operator), and IGOAFB Resources Pty Limited (30 percent),a subsidiary of Regis Resources Limited (30%). The property is currently in a production stage.

Location
Tropicana is located 200 kilometres330km northeast of Kalgoorlie and 200km east of Sunrise Dam and 330 kilometres east-northeast of Kalgoorlie Boulder,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 operation featuresunderground mine is expected to be a large scale, modern processing plant which uses conventional CIL technologysignificant contributor to the production profile going forward.

Legal aspects and includes high-pressure grinding rolls for energy-efficient comminution.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 activities are carried outis undertaken using conventional open cut, drill and blast, followed by a contracttruck and excavator operation to develop the deposits (Havana and Boston Shaker). The total annual movement of ore and waste is approximately 91Mtpa. Underground mining companyuses mechanised jumbo development and the plantopen stoping methods. At peak, annual production from underground is owner-operated.planned to reach 1.4Mt of ore.


Tropicana has security of tenure for all current exploration licences and the mining lease that covers its future Ore Reserve. This lease is M39/1096 and is valid from 11 March 2015 to 10 March 2036 covering a total area of 27,228ha. The previous 31 mining leases comprising 27,228ha (including M39/980, M39/981, M39/982 and M39/1052), were conditionally surrendered in favour of the grant of a single mining lease, M39/1096, on 11 March 2015 for 21 years with all existing rights and obligations preserved. This process was completed with the co-operation of the Department of Mines and Petroleum.

The Tropicana joint venture has active exploration programmes seeking both satellite extensions to the Tropicana Gold Mine and discoveries with standalone potential. The Boston Shaker underground was approved through a feasibility study in February 2019, and has been in development since May 2019, with first ore stopes scheduled for July 2020. A prefeasibility study is examining the options around mining the depths of the Havana pits. The study will trade-off open pit vs. underground options for material below the current pit.

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 a dedicated gas and diesel power station, water supply, processing plant, mine, dewatering infrastructure, tailing dump facility,TSF, workshops, camp facilities and airstrips. The processing plant comprises crushing, high pressure grinding rolls, one stage grinding and CIL recovery with a capacity of between 8 and 9Mtpa. The 2019 achieved annual throughput rate was 8.65Mtpa. Power is supplied to the mine by on siteon-site gas and diesel power stations, and natural gas is supplied via an APA Operations (Pty) Limited pipeline. Underground development and production is ongoing.


Geology
Gold mineralisation at Tropicana occurs in high metamorphic grade gneissic rocks, which dip gently to the south east. Mineralisation is structurally controlledThe Property, Plant and occurs within a preferred host unit within the gneissic package.  Post mineralisation faulting has separated the once continuous ore zone, with open pits developed on eachEquipment as of the fault bounded blocks.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).



ORE RESERVE

Mineral processing
The combined Provenprocessing 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 Probabletertiary rolls crushers. A 14MW and 6MW ball mill in parallel completes the grinding circuit. A CIL circuit is used to extract the gold Ore Reservefrom 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 the group amounteda combination of diesel and gas powered generators with a capacity of 48.5MW.






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Qualified Persons
TropicanaQualified PersonProfessional OrganisationMembership numberRelevant Years ExperienceQualification
Mineral ResourceFraser ClarkAusIMM22639020 yearsBSc Hons (Geology), Postgraduate Certificate (Geostatistics)
Mineral Reserve (surface)Joanne EndersbeeAusIMM33453712 years—
Mineral Reserve (underground)Glen ReitsemaAusIMM2283918 yearsBCom, BEng (Mining Engineering)

Exploration
Refer to 43.8 million ounces (Moz) as at 31 December 2019. The Probable copper Ore Reserve of the group amounted“Item 4B: Business Overview—Exploration review”.

Mineral Resource
Refer to 3,068 million pounds (Mlbs) as at 31 December 2019.

Ore Reserve estimates are reportedTable 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 Tropicana at the end of the SEC’s Industry Guide 7. Accordingly, as of the date of reporting, all Ore ReserveFiscal Year ended 31 December 2021 based on $1,500/oz (AUD 2,072/oz). 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 theKey Parameters under Material Assumptions for additional information on cut-off grade and Ore Reserve tonnage for the operation. A full mine design is carried out 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 costsgrades 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 2019 and 2018 Ore Reserve are outlined in the following table:
 2019
 2019
 2018
 

Units
(3 year
average)

 
(Ore
Reserve)

 
(3 year
average)

 
Ore Reserve Gold Price1,307
 1,100
 1,258
 $ per ounce  

The copper price used for determining the 2019 and 2018 Ore Reserve are outlined in the following table:
 2019
 2019
 2018
 

Units
(3 year
average)

 
(Ore
Reserve)

 
(3 year
average)

 
Ore Reserve Copper Price2.83
 2.65
 2.66
 $ per pound  

The SEC test indicates all of the SAMREC Ore Reserve, apart from CVSA, is economic and meets the requirements of the SEC. The CVSA SEC Reserve will be 0.077Moz less than the SAMREC Ore Reserve due to the hyperinflation of the US$/ARS exchange rate where the three-year average SEC exchange rate of 32.21 is much lower compared to the AGA exchange rate (based on the last year rates only) of 51.89. AngloGold Ashanti selects a conservative Ore Reserve price relative to its peers, in line with AngloGold Ashanti’s strategy of including a margin in the mine planning process. The resultant plan is then valued at a higher business planning price.

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



Gold:
The AngloGold Ashanti Ore Reserve reduced from 44.1Moz in December 2018 to 43.8Moz in December 2019. This gross annual decrease of 0.3Moz includes depletion of 3.7Moz. The increase before depletion of 3.4Moz, resulted from additions due to exploration and modelling changes of 3.6Moz, changes in economic assumptions of 0.4Moz and a change in ownership of 0.1Moz. Other factors resulted in a 0.7Moz reduction. The Ore Reserve was estimated using a gold price of US$1,100/oz (2018: US$1,100/oz). The principal changes in AngloGold Ashanti’s Ore Reserve as at 31 December 2019, compared with those published as at 31 December 2018, are as follows:
Key Parameters
ORE RESERVE - GOLDTropicanaMozUnit
Open Pit
Costs
Ore mining costAUD/tonne mined4.96
Waste mining costAUD/tonne mined3.73
Processing costAUD/tonne treated20.42
G&AAUD/tonne treated3.11
Other Parameters
Metallurgical Recovery Factor%MetRF89.5
Slope angles - Hangingwalldegree60
Slope angles - Footwalldegree45
Mineral Resource cut-off gradeg/t0.4
Mineral Resource priceAUD/oz2,072 
The open pit ore mining cost includes the over-haul from the plant. The processing cost includes an allowance for stay in business capital.

TropicanaUnitUnderground
Costs
Lateral development (average)AUD/tonne ore mined12.84
Vertical development (average)AUD/tonne ore mined0.27
ProductionAUD/tonne ore mined14.35
Material handlingAUD/tonne ore mined12.02
Backfill / OthersAUD/tonne ore mined37.65
Mine ServicesAUD/tonne ore mined1.99
Processing costAUD/tonne treated20.42
Other Parameters
MSO optimising cut-offg/t1.7
Mineral Resource cut-off gradeg/t1.7
Mineral Resource priceAUD/oz2,072 
Metallurgical Recovery Factor%MetRF89.1




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Estimation
The Mineral Resource has been estimated using the geostatistical technique of LUC using average drill hole intercepts, composited to 2m lengths, and breaking at the domain boundaries.

Mineral Reserve
Refer to Table 2ato Paragraph (b) prepared in accordance with Regulation S-K 1300 (§ 229.1303 (Item 1303)) that summarises the gold Mineral Reserve for Tropicana at the end of the Fiscal Year ended 31 December 2021 based on $1,200/oz (AUD 1,633/oz).

Refer to the Modifying Factors and price estimates under Material Assumptions for additional information on cut-off grades and metallurgical recovery. For additional information, see the Technical Report Summary on each individual property, filed as an Exhibit of this annual report on Form 20-F.

Year on year changes in Mineral Reserve - Moz
as at 31 December 2021Tropicana
CategoryProvenProbableTotal
Previous Year0.552 1.334 1.886 
Depletion(0.190)(0.091)(0.281)
Exploration0.141 (0.042)0.098 
Methodology0.158 (0.166)(0.008)
Price0.001 0.110 0.111 
Cost0.003 (0.092)(0.089)
Geotechnical— (0.005)(0.005)
Metallurgical— 0.005 0.005 
Operational(0.016)(0.034)(0.050)
Acquisition / Disposal— — — 
Other— — — 
Current Year0.647 1.019 1.667 
Net Difference0.096 (0.315)(0.219)
% Difference17 (24)(12)

Increases due to exploration and local changes in the gold price are 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 2018202144.1
Tropicana
DepletionsPrimary Commodity PriceAUD/oz(3.7)1633
Sub Total40.4
AdditionsDue To
Obuasi
Model updates which resulted in new designs for Sansu, Blocks 8 and 11.
1.3
KibaliExploration which upgraded Inferred Mineral Resource which was partially offset by higher open pit costs which resulted from the changes in the DRC mining code. Fresh rock processing costs also increased.0.8
GeitaExploration additions at Nyankanga and Star and Comet and the steepening of the planned eastern pit wall at Nyankanga Cut 8.0.8
AGA Mineração
Additions to the Cuiabá model, mainly at Serrotinho, which were countered by increased costs used in the feasibility study for mining of the secondary orebodies as well as a review of mining methods. At Lamego, additions resulted from exploration at Carruagem.
0.5
IduapriemInclusion of Block 5 in the Ore Reserve given reduced mining costs.0.5
QuebradonaRemodelling and change in ownership.0.3
OtherAdditions less than 0.3Moz.0.3
Sub Total44.9
Reductions
OtherReductions less than 0.3Moz.(1.1)
Ore Reserve as at 31 December 201943.8

Copper:
The AngloGold Ashanti Ore Reserve increased from 1.26Mt (2,769Mlbs) in December 2018 to 1.39Mt (3,068Mlbs) in December 2019. This gross annual increase of 0.14Mt includes an increase of 0.07Mt due to methodology and 0.07Mt due to change in ownership from 94.876% to 100% as B2Gold’s shareholding was converted to a share of profits. The Ore Reserve was estimated at a copper price of US$2.65/lb (2018: US$2.65/lb).
ORE RESERVE - COPPERMt
Mlb
Ore Reserve as at 31 December 20181.26
2,769
AdditionsDue To  
QuebradonaRemodelling and change in ownership.0.14
300
Ore Reserve as at 31 December 20191.39
3,068

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.

By-products

Several by-products will be recovered as a result of processing of the gold Ore Reserve and copper Ore Reserve. These include 0.39Mt of sulphur from Brazil, 18.76Moz of silver from Argentina and 25.95Moz of silver from Colombia.

External reviews of Mineral Resource and Ore Reserve Statement

During the course of 2019, the following operations were subject to an external review in line with the policy that each operation/ project will be reviewed by an independent third party on average once every three years:
Mineral Resource and Ore Reserve at Siguiri
Mineral Resource and Ore Reserve at Geita

Mineral Resource and Ore Reserve at AGA Mineração Cuiabá and Lamego
Mineral Resource and Ore Reserve at AGA Mineração Córrego do Sítio

The external reviews were conducted by Golder Associates Pty Ltd and certificates of sign-off have been received to state that the Mineral Resource and/or Ore Reserve comply with the SAMREC Code.

Competent Persons

The information in this report relating to Exploration Results, Mineral Resources and Ore Reserves is based on information compiled by or under the supervision of the Competent Persons as defined in the SAMREC Code. All Competent Persons are employed by AngloGold Ashanti, except for Kibali and Morila, 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 legal tenure of each operation and project has been verified to the satisfaction of the accountable Competent Person and all Ore Reserves have been confirmed to be covered by the required mining permits or there exists a realistic expectation that these permits will be issued. The Competent Persons consent to the inclusion of Exploration Results, Mineral Resource and Ore Reserve information in this report, in the form and context in which it appears.

Accordingly, the Chairman of the Mineral Resource and Ore Reserve Steering Committee, VA Chamberlain, MSc (Mining Engineering), BSc (Hons) (Geology), MGSSA, FAusIMM, assumes responsibility for the Mineral Resource and Ore Reserve processes for AngloGold Ashanti and is satisfied that the Competent Persons have fulfilled their responsibilities. VA Chamberlain has 32 years’ experience in exploration and mining and is employed full-time by AngloGold Ashanti and can be contacted at the following address: 76 Rahima Moosa Street, Newtown, 2001, South Africa.

A detailed breakdown of Mineral Resource and Ore Reserve and backup detail will be provided on the AngloGold Ashanti website (www.anglogoldashanti.com) and www.aga-reports.com.


Gold
Ore Reserve: ImperialAt 31 December 2019  
 
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)
Continental Africa               
Democratic Republic of the Congo               
Kibali (45 percent) (3) (10)
10.25  0.120  1.23  23.72
 0.123
 2.93
 84.5-89.8
(4) 
 0.044-0.070
(4) 
Ghana               
Iduapriem3.74  0.024  0.09  42.86
 0.040
 1.71
 93.0-95.85
(4) 
 0.025-0.028
(4) 
Obuasi (2)
—
  —
 ��—
  26.74
 0.266
 7.12
 87.0  0.120-0.152
(4) 
Guinea               
Siguiri (85 percent) (3)
20.07  0.019  0.37  59.66
 0.023
 1.39
 88.0-93.0
(4) 
 0.015-0.022
(4) 
Mali               
Morila (40 percent) (3) (10)(11)
—  —  —
  —
 —
 —
      
Sadiola (41 percent) (3)
—  —  —
  27.00
 0.059
 1.58
 75.0-94.0
(4) 
 0.015-0.023
(4) 
Tanzania               
Geita—  —  —
  14.81
 0.102
 1.51
 77.8-92.7
(4) 
 0.036-0.115
(4) 
South Africa               
West Wits               
Mponeng (2)
1.14  0.235  0.27  38.75
 0.280
 10.83
 97.1-97.9
(4) 
 0.167-0.239
(4) 
Surface                 
Surface Operations (8)
70.51  0.007  0.49
  504.74
 0.008
 3.88
 44.0-90.9
(4) 
 0.006-0.010
(4) 
Australia               
Sunrise Dam (2)
12.29  0.040  0.49  7.32
 0.083
 0.61
 84.5-85.0
(4) 
 0.020-0.046
(4) 
Tropicana (70 percent) (2)(3)
18.16  0.030  0.54  25.35
 0.062
 1.58
 89.9-90.0
(4) 
 0.020-0.078
(4) 
Americas               
Argentina               
  Cerro Vanguardia (92.5 percent)(3)(6)
4.52  0.037  0.17  6.50
 0.081
 0.52
 65.8-95.8
(4) 
 0.010-0.159
(4) 
Brazil               
AGA Mineraçáo (2) (7)
2.48  0.123  0.31  10.68
 0.136
 1.46
 53.0-94.3
(4) 
 0.010-0.155
(4) 
Serra Grande (2)
1.71  0.083  0.14  2.81
 0.095
 0.27
 92.4-95.7
(4) 
 0.027-0.052
(4) 
Colombia                
Gramalote (51 percent) (3)
—
  —
  —
  70.23
 0.025
 1.76
 83.9-95.0
(4) 
 0.005-0.006
(4) 
   Quebradona (2)(6)
—
  —
  —
  122.62
 0.021
 2.53
 60.0    
Total144.87  0.028  4.10  983.80
 0.040
 39.68
    


Copper
Ore Reserve: ImperialAt 31 December 2019  
 
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 (2)(6)
—
  —
  —
  122.62 1.25 3,068  95.80 25-45
(12) 
Total—
  —
  —
  122.62 1.25 3,068      

(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 Ore Reserve contains 18.76 million ounces of silver for Cerro Vanguardia and 25.95 million ounces for Quebradona to be recovered as a by-product.
(7)
The Ore Reserve contains 0.43 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, Morila is only treating tailings and the Ore Reserve has been written off.
(12)
Copper ore cut-off Net Smelter Return (NSR).

Rounding may result in computational differences.

The 2019 Proven and Probable Ore Reserve includes Ore Reserve below infrastructure in the case of the following underground mines currently in production:

Gold
MineTons (millions) Grade (ounces/ton) 
Gold Content
(million ounces)
Mponeng30.67  0.27  8.17 
Obuasi3.08  0.56  1.72 
Sunrise Dam1.11  0.14  0.16 
Tropicana2.09  0.11  0.22 
AGA Mineração6.34  0.14  0.92 
Serra Grande2.18  0.10  0.22 
Quebradona122.62  0.02  2.53 
Total168.10  0.08  13.93 

Copper
MineTons (millions) Grade (%) 
Copper Content
(million pounds)
Quebradona122.62  1.25  3,068 
Total122.62  1.25  3,068 

The Ore Reserve has been determined based on completed economic studies.


Gold
Ore Reserve: ImperialAt 31 December 2018  
 
Proven Ore Reserve (1) (2)
 
Probable Ore Reserve (1) (2)
 Metallurgical Cut-off
 
Tons(5)
 Grade 
Gold
Content
 
Tons (5)
 Grade 
Gold
Content
 
Recovery
Factor
 Grade
(9) 
 (million) (oz/ton) (Moz) (million) (oz/ton) (Moz) percent (oz/ton)
Continental Africa               
Democratic Republic of the Congo               
Kibali (45 percent) (3) (10)
10.07 0.121 1.22 21.04 0.120 2.53 84.5-88.9
(4) 
 0.045-0.070
(4) 
Ghana               
Iduapriem3.02 0.026 0.08 40.11 0.039 1.56 93.0-95.9
(4) 
 0.016-0.026
(4) 
Obuasi (2)
—
  —
  —
  22.35 0.262 5.86 87.0  0.120-0.152
(4) 
Guinea               
Siguiri (85 percent) (3)
23.74 0.019 0.46 65.48 0.024 1.60 88.0-93.0
(4) 
 0.016-0.020
(4) 
Mali               
Morila (40 percent) (3) (10)
2.71 0.018 0.05 0.18 0.038 0.01 57.0-91.0
(4) 
 0.014-0.023
(4) 
Sadiola (41 percent) (3)
0.05 0.048 —
  28.78 0.057 1.63 75.0-94.0
(4) 
 0.015-0.023
(4) 
Tanzania               
Geita—
  —
  —
  10.44 0.128 1.33 77.8-92.7
(4) 
 0.042-0.100
(4) 
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) 
                 
Australia               
Sunrise Dam (2)
13.89 0.041 0.57 6.05 0.105 0.64 86.0-87.0
(4) 
 0.020-0.079
(4) 
Tropicana (70 percent) (2)(3)
15.24 0.034 0.51 35.43 0.059 2.11 89.9-90.0
(4) 
 0.020-0.092
(4) 
Americas               
Argentina               
  Cerro Vanguardia (92.5 percent)(3)(6)
8.51 0.068 0.57 8.98 0.055 0.50 66.3-96.3
(4) 
 0.013-0.161
(4) 
Brazil               
AGA Mineraçáo (2) (7)
2.14 0.127 0.27 9.69 0.148 1.43 50.0-94.3
(4) 
 0.018-0.161
(4) 
Serra Grande (2)
1.74 0.085 0.15 2.48 0.097 0.24 92.1-98.8
(4) 
 0.018-0.055
(4) 
Colombia                
Gramalote (51 percent) (3)
—
  —
  —
  70.23 0.025 1.76 83.9-95.0
(4) 
 0.005-0.006
(4) 
   Quebradona (94.876 percent) (2)(3)(6)
—
  —
  —
  114.69 0.019 2.22 60.0    
Total199.80 0.025 4.97 1057.65 0.037 39.12    

Copper
Ore Reserve: ImperialAt 31 December 2018  
 
Proven Ore Reserve (1) (2)
 
Probable Ore Reserve (1) (2)
 Metallurgical Cut-off
 
Tons(5)
 Grade 
Copper
Content
 
Tons (5)
 Grade 
Copper
Content
 
Recovery
Factor
 Grade
(9) 
 (million) percent (Mlbs) (million) percent (Mlbs) percent  ($/t)
Colombia                
Quebradona (94.876 percent) (2)(3)(6)
—
  —
  —
  114.69 1.21 2,769  95.80 25-45
(12) 
Total—
  —
  —
  114.69 1.21 2,769     

(1)
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 Ore Reserve contains 32.68 million ounces of silver for Cerro Vanguardia and 23.58 million ounces for Quebradona to be recovered as a by-product.
(7)
The Ore Reserve contains 0.38 million tons of sulphur to be recovered as a by-product.
(8)
Includes Mine Waste Solutions (MWS).
(9)
In-situ cut-off grade.
(10)
Ore Reserve is estimated by Competent Persons employed by Barrick Gold (Holdings) Limited.
(11)
No Ore Reserve is declared for 2018 - sale of Kopanang and Moab Khotsong.
(12)
Copper ore cut-off Net Smelter Return (NSR).

Rounding may result in computational differences.


The 2018 Proven and Probable Ore Reserve includes Ore Reserve below infrastructure in the case of the following underground mines currently in production:

Gold
MineTons (millions) Grade (ounces/ton) 
Gold Content
(million ounces)
Mponeng30.27  0.28  8.53 
Obuasi1.87  0.60  1.13 
Sunrise Dam1.42  0.11  0.16 
Tropicana2.08  0.11  0.22 
AGA Mineração7.42  0.16  1.18 
Serra Grande1.75  0.11  0.20 
Quebradona114.69  0.02  2.22 
Total159.50  0.09  13.64 

Copper
MineTons (millions) Grade (%) 
Copper Content
(million pounds)
Quebradona114.69  1.21  2,769 
Total114.69  1.21  2,769 

The Ore Reserve has been determined based on completed economic studies.


Gold
Ore Reserve: MetricAt 31 December 2019  
 
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)
Continental Africa               
Democratic Republic of the Congo               
Kibali (45 percent) (3) (10)
9.29
  4.13
  38.36
  21.52
  4.23
  90.99
  84.5-89.8
(4) 
 1.50-2.40
(4) 
Ghana               
Iduapriem3.40
  0.84
  2.85
  38.88
  1.36
  53.05
  93.0-95.9
(4) 
 0.85-0.95
(4) 
Obuasi (2)
—
  —
  —
  24.26
  9.13
  221.47
  87.0   4.10-5.20
(4) 
Guinea               
Siguiri (85 percent) (3)
18.20
  0.63
  11.55
  54.12
  0.80
  43.27
  88.0-93.0
(4) 
 0.50-0.75
(4) 
Mali               
Morila (40 percent) (3) (10)(11)
—
  —
  —
  —
  —
  —
       
Sadiola (41 percent) (3)
—
  —
  —
  24.50
  2.01
  49.23
  75.0-94.0
(4) 
 0.51-0.78
(4) 
Tanzania               
Geita—
  —
  —
  13.44
  3.50
  47.03
  77.8-92.7
(4) 
 1.25-3.95
(4) 
South Africa               
West Wits               
Mponeng (2)
1.03
  8.05
  8.31
  35.16
  9.59
  337.0
  97.1-97.9
(4) 
 5.72-8.18
(4) 
Surface               
Surface sources (8)63.97
  0.24
  15.18
  457.89
  0.26
  120.83
  44.0-90.9
(4) 
 0.20-0.34
(4) 
Australia               
Sunrise Dam (2)
11.15
  1.38
  15.39
  6.64
  2.84
  18.88
  84.5-85.0
(4) 
 0.70-1.56
(4) 
Tropicana (70 percent) (2) (3)
16.48
  1.02
  16.89
  22.99
  2.13
  49.07
  89.9-90.0
(4) 
 0.70-2.69
(4) 
Americas               
Argentina               
Cerro Vanguardia (92.5 percent) (3) (6)
4.10
  1.26
  5.17
  5.90
  2.77
  16.33
  65.8-95.8
(4) 
 0.33-5.46
(4) 
Brazil               
AGA Mineraçáo (2) (7)
2.25
  4.23
  9.50
  9.69
  4.68
  45.33
  53.0-94.3
(4) 
 0.33-5.31
(4) 
Serra Grande (2)
1.55
  2.83
  4.40
  2.55
  3.27
  8.32
  92.4-95.7
(4) 
 0.92-1.77
(4) 
Colombia                
Gramalote (51 percent) (3)
—
  —
  —
  63.71
  0.86
  54.67
  83.9-95.0
(4) 
 0.16-0.22
(4) 
Quebradona (2) (6)
—
  —
  —
  111.24
  0.71
  78.60
  60.0           
Total131.42
  0.97
  127.60
  892.49
  1.38
  1,234.08
     


Copper
Ore Reserve: MetricAt 31 December 2019  
 
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 (2)(6)
—
  —
  —
  111.24
 1.25
 1.39  95.80 25-45
(12) 
Total—
  —
  —
  111.24
 1.25
 1.39      

(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 583 tonnes of silver for Cerro Vanguardia and 807 tonnes for Quebradona to be recovered as a by-product.
(7)
The Ore Reserve contains 0.39 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 as the Ore Reserve has been written off.
(12)
Copper ore cut-off Net Smelter Return (NSR)

Rounding may result in computational differences.


The 2019 Proven and Probable Ore Reserve includes Ore Reserve below infrastructure in the case of the following underground mines currently in production:

Gold
MineTons (millions) Grade (grams/tonne) 
Gold Content
(tonnes)
Mponeng27.83   9.13   254.02  
Obuasi2.80   19.14   53.54  
Sunrise Dam1.01   4.92   4.97  
Tropicana1.89   3.60   6.82  
AGA Mineração5.75   4.96   28.49  
Serra Grande1.98   3.40   6.73  
Quebradona111.24   0.71   78.60  
Total152.50   2.84   433.17  


Copper
MineTons (millions) Grade (%)
Copper Content
(million tonnes)
Quebradona111.24   1.25  1.39  
Total111.24   1.25  1.39  

The Ore Reserve has been determined based on completed economic studies.


Gold
Ore Reserve: MetricAt 31 December 2018  
 
Proven Ore Reserve (1) (2)
 
Probable Ore Reserve (1) (2)
 Metallurgical Cut-off
 
Tonnes(5)
 Grade 
Gold
Content
 
Tonnes (5)
 Grade 
Gold
Content
 
Recovery
Factor
 Grade
(9) 
 (million) (g/t) (tonnes) (million) (g/t) tonnes percent (g/t)
Continental Africa               
Democratic Republic of the Congo               
Kibali (45 percent) (3) (10)
9.14
  4.15
  37.87
  19.08
  4.12
  78.70
  84.5-88.9
(4) 
 1.53-2.41
(4) 
Ghana               
Iduapriem2.74
  0.88
  2.41
  36.39
  1.33
  48.42
  93.0-95.9
(4) 
 0.55-0.90
(4) 
Obuasi (2)
—
  —
  —
  20.28
  9.00
  182.40
  87.0   4.10-5.20
(4) 
Guinea               
Siguiri (85 percent) (3)
21.54
  0.67
  14.40
  59.40
  0.84
  49.82
  88.0-93.0
(4) 
 0.55-0.70
(4) 
Mali               
Morila (40 percent) (3) (10)
2.46
  0.63
  1.54
  0.17
  1.31
  0.22
  57.0-91.0
(4) 
 0.49-0.79
(4) 
Sadiola (41 percent) (3)
0.05
  1.66
  0.08
  26.11
  1.94
  50.64
  75.0-94.0
(4) 
 0.51-0.78
(4) 
Tanzania               
Geita—
  —
  —
  9.47
  4.38
  41.49
  77.8-92.7
(4) 
 1.45-3.43
(4) 
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) 
                 
Australia               
Sunrise Dam (2)
12.60
  1.40
  17.59
  5.49
  3.60
  19.76
  86.0-87.0
(4) 
 0.68-2.71
(4) 
Tropicana (70 percent) (2) (3)
13.83
  1.15
  15.91
  32.14
  2.04
  65.50
  89.9-90.0
(4) 
 0.70-3.17
(4) 
Americas               
Argentina               
Cerro Vanguardia (92.5 percent) (3) (6)
7.72
  2.32
  17.88
  8.14
  1.89
  15.41
  66.3-96.3
(4) 
 0.45-5.51
(4) 
Brazil               
AGA Mineraçáo (2) (7)
1.94
  4.35
  8.43
  8.79
  5.06
  44.47
  50.0-94.3
(4) 
 0.61-5.53
(4) 
Serra Grande (2)
1.58
  2.90
  4.59
  2.25
  3.32
  7.48
  92.1-98.8
(4) 
 0.60-1.87
(4) 
Colombia                
Gramalote (51 percent) (3)
—
  —
  —
  63.71
  0.86
  54.67
  83.9-95.0
(4) 
 0.16-0.22
(4) 
Quebradona (94.876 percent) (2) (3) (6)
—
  —
  —
  104.05
  0.66
  69.12
  60.0    
Total181.26
  0.85
  154.60
  959.49
  1.27
  1,216.69
     

Copper
Ore Reserve: MetricAt 31 December 2018  
 
Proven Ore Reserve (1) (2)
 
Probable Ore Reserve (1) (2)
 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)
—  —  —  104.051.211.26  95.80  25-45
(12) 
Total—  —  ��  104.051.21 1.26
     

(1)
Ore Reserve includes marginally economic and diluting materials delivered for treatment and allow for losses that may occur during mining.
(2)
Proven and/or Probable Ore Reserve includes Ore Reserve below infrastructure. See table that follows.
(3)
Ore Reserve attributable to AngloGold Ashanti’s percentage interest shown.
(4)
Recovery factor and cut-off grade vary according to ore type.
(5)
Tonnes refers to a metric tonne which is equivalent to 1000 kilograms.
(6)
The Ore Reserve contains 1,016 tonnes of silver for Cerro Vanguardia and 733 tonnes for Quebradona to be recovered as a by-product.
(7)
The Ore Reserve contains 0.37 million tonnes of sulphur to be recovered as a by-product.
(8)
Includes Mine Waste Solutions (MWS).
(9)
In-situ cut-off grade.
(10)
Ore Reserve is estimated by Competent Persons employed by Barrick Gold (Holdings) Limited.
(11)
No Ore Reserve is declared for 2018 - sale of Kopanang and Moab Khotsong.
(12)
Copper ore cut-off Net Smelter Return (NSR).

Rounding may result in computational differences


The 2018 Proven and Probable Ore Reserve includes Ore Reserve below infrastructure in the case of the following underground mines currently in production:

Gold
MineTons (millions) Grade (grams/tonne) 
Gold Content
(tonnes)
Mponeng27.46   9.66   265.29 
Obuasi1.70   20.68   35.15 
Sunrise Dam1.29   3.85   4.95 
Tropicana1.89   3.65   6.89 
AGA Mineração6.73   5.45   36.64 
Serra Grande1.59   3.94   6.28 
Quebradona104.05   0.66   69.12 
Total144.70   2.93   424.32 

Copper
MineTons (millions) Grade (%)
Copper Content
(million tonnes)
Quebradona104.05   1.21  1.26 
Total104.05   1.21  1.26 

The Ore Reserve has been determined based on completed economic studies.










Stockpiles: Imperial
Stockpiles are previously mined ore scheduled for future process plant feed. The Proven and Probable Ore Reserve includes the following stockpile material:
StockpilesAt 31 December 2019
 Tons (million) Grade (ounces/ton) 
Gold content
(million ounces)
Continental Africa     
Democratic Republic of the Congo     
Kibali (45 percent) (1)
1.09  0.050  0.05
 
Ghana     
Iduapriem16.41  0.021  0.35
 
Guinea     
Siguiri (85 percent) (1) (3)
55.29  0.017  0.93
 
Mali     
Sadiola (41 percent) (1)
1.46  0.068  0.10
 
Tanzania     
Geita4.50  0.046  0.20
 
South Africa     
Surface sources (2)
575.26  0.008  4.37
 
Australia     
Sunrise Dam9.40  0.028  0.26
 
Tropicana (70 percent) (1)
16.97  0.028  0.47
 
Americas     
Argentina     
Cerro Vanguardia (92.5 percent) (1)
6.58  0.013  0.08
 
Brazil     
Serra Grande0.01  0.058  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: Imperial
Stockpiles are previously mined ore scheduled for future process plant feed. The Proven and Probable Ore Reserve includes the following stockpile material:
StockpilesAt 31 December 2018
 Tons (million) Grade (ounces/ ton) 
Gold content
(million ounces)
Continental Africa     
Ghana     
Iduapriem16.42  0.021  0.35 
Guinea     
Siguiri (85 percent) (1) (3)
57.67  0.017  0.97 
Mali     
Morila (40 percent) (1)
2.71  0.018  0.05 
Sadiola (41 percent) (1)
3.29  0.045  0.15 
Tanzania     
Geita3.00  0.038  0.11 
South Africa     
Surface sources (2)
700.22  0.007  5.15 
      
Australia     
Sunrise Dam10.66  0.028  0.30 
Tropicana (70 percent) (1)
11.98  0.029  0.35 
Americas     
Argentina     
Cerro Vanguardia (92.5 percent) (1)
10.91  0.014  0.15 

(1)
Ore Reserve attributable to AngloGold Ashanti’s percentage interest shown.
(2)
Centralised operations treating material on surface that was previously generated by several underground operations, includes tailings material.
(3)
Spent heap included in Ore Reserve.

Rounding may result in computational differences.

Stockpiles: Metric
Stockpiles are previously mined ore scheduled for future process plant feed. The Proven and Probable Ore Reserve includes the following stockpile material:
StockpilesAt 31 December 2019
 Tonnes (million) Grade (grams/ tonne) 
Gold content
(tonnes)
Continental Africa     
Democratic Republic of the Congo     
Kibali (45 percent) (1)
0.99  1.72
  1.70 
Ghana     
Iduapriem14.89  0.73
  10.90 
Guinea     
Siguiri (85 percent) (1) (3)
50.16  0.58
  28.84 
Mali     
Sadiola (41 percent) (1)
1.32  2.31
  3.07 
Tanzania     
Geita4.08  1.56
  6.37 
South Africa     
Surface sources (2)
521.86  0.26
  136.01 
Australia     
Sunrise Dam8.53  0.94
  8.05 
Tropicana (70 percent) (1)
15.40  0.94
  14.52 
Americas     
Argentina     
Cerro Vanguardia (92.5 percent) (1)
5.97  0.44
  2.64 
Brazil     
Serra Grande0.01  2.00
  0.02 

(1)
Ore Reserve attributable to AngloGold Ashanti’s percentage interest shown.
(2)
Centralised operations treating material on surface that was previously generated by several underground operations, includes tailings material.
(3)
Spent heap included in Ore Reserve.

Rounding may result in computational differences.



Stockpiles: Metric
Stockpiles are previously mined ore scheduled for future process plant feed. The Proven and Probable Ore Reserve includes the following stockpile material:
StockpilesAt 31 December 2018
 Tonnes (million) Grade (grams /tonne) 
Gold content
(tonnes)
Continental Africa     
Ghana     
Iduapriem14.89  0.73  10.91 
Guinea     
Siguiri (85 percent) (1) (3)
52.31  0.58  30.18 
Mali     
Morila (40 percent) (1)
2.46  0.63  1.54 
Sadiola (41 percent) (1)
2.98  1.53  4.56 
Tanzania     
Geita2.72  1.29  3.51 
South Africa     
Surface sources (2)
635.23  0.25  160.23 
      
Australia     
Sunrise Dam9.67  0.97  9.35 
Tropicana (70 percent) (1)
10.87  1.01  10.95 
Americas     
Argentina     
Cerro Vanguardia (92.5 percent) (1)
9.89  0.47  4.68 

(1)
Ore Reserve attributable to AngloGold Ashanti’s percentage interest shown.
(2)
Centralised operations treating material on surface that was previously generated by several underground operations, includes tailings material.
(3)
Spent heap included in Ore Reserve.

Rounding may result in computational differences.

Drill hole spacing: Imperial
In determining the Proven and Probable Ore Reserve, AngloGold Ashanti applied the following drill hole spacing:
Drill Hole Spacing
Cut-off gradeProven Ore ReserveProbable Ore Reserve
Continental Africa
Democratic Republic of the Congo
Kibali16 x 33 feet, 33 x 82 feet98 x 131 feet, 131 x 131 feet
Ghana
Iduapriem66 x 49 feet164 x 246 feet
Obuasi66 x 66 feet197 x 197 feet
Guinea
Siguiri33 x 16 feetg/t
66 x 131 feet, 82 x 82 feet,0.70(1); 2.1-2.7(2)
164 x 82 feet
Mali
Sadiola21 x 41 feet, 82 x 82 feet82 x 82 feet, 164 x 82 feet
Tanzania
GeitaNone
33 x 33 feet, 66 x 66 feet, 82 x 49 feet,
82 x 82 feet, 131 x 66 feet, 131 x 131 feet
South Africa
Underground sourcesOre body opened up, developed and sampled on a 7 to 10 foot spacing on raise lines and on a 16 x 16 foot grid thereafter
From a 328 x 328 foot spacing up to
3281 x 3281 foot spacing
Surface sources164 x 164 feet to 1050 x 820 feet auger drilling, variable sampling strategies: belt samplers, cross stream residue samplers and bulk sampling campaigns328 x 328 feet to 984 x 1230 feet auger drilling, variable sampling strategies: belt samplers, cross stream residue samplers
Australia
Sunrise Dam33 x 33 feet, 82 x 82 feet131 x 66 feet, 131 x 131 feet
Tropicana39 x 39 feet, 82 x 82 feet164 x 82 feet, 164 x 164 feet
Americas
Argentina
Cerro Vanguardia20 x 66 feet, 39 x 16 feet131 x 131 feet
Brazil
AGA Mineração
33 x 66 feet, 66 x 33 feet,
66 x 98 feet, 82 x 82 feet,
98 x 98 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, 197 x 197 feet
Serra Grande33 x 33 feet, 33 x 66 feet
82 x 82 feet, 131 x 66 feet,
131 x 131 feet, 164 x 66 feet
Colombia
GramaloteNone164 x 164 feet
Quebradona98 x 98 feet197 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:
Stoping widthDrill Hole Spacing
Proven Ore ReserveProbable Ore Reserve
Continental Africa
Democratic Republic of the Congo
Kibali5 x 10 metre, 10 x 25 metre30 x 40 metre, 40 x 40 metre
Ghana
Iduapriem20 x 15 metre50 x 75 metre
Obuasi20 x 20 metre60 x 60 metre
Guinea
Siguiri5 x 10 metrecm
20 x 40 metre, 25 x 25 metre,
50 x 25 metre2000(2)
MaliDilution
Sadiola6.25 x 12.5 metre, 25 x 25 metre25 x 25 metre, 50 x 25 metre
Tanzania
GeitaNone%
10 x 10 metre, 20 x 20 metre,
25 x 15 metre, 25 x 25 metre,
40 x 20 metre, 40 x 40 metre(2)
South Africa
Underground sourcesOre body opened up, developed and sampled on a 2 to 3 metre spacing on raise lines and on a 5 x 5 metre grid thereafter
From a 100 x 100 metre spacing up to
1000 x 1000 metre spacing
Surface sources50 x 50 metre to 320 x 250 metre auger drilling, variable sampling strategies: belt samplers, cross stream residue samplers and bulk sampling campaigns100 x 100 metre to 300 x 375 metre auger drilling, variable sampling strategies: belt samplers, cross stream residue samplers
Australia
Sunrise Dam10 x 10 metre, 25 x 25 metre40 x 20 metre, 40 x 40 metre
Tropicana12 x 12 metre, 25 x 25 metre50 x 25 metre, 50 x 50 metre
Americas
Argentina
Cerro Vanguardia6 x 20 metre, 12 x 5 metre40 x 40 metre
Brazil
AGA Mineração
10 x 20 metre, 20 x 10 metre,
25 x 25 metre, 20 x 30 metre,
30 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, 60 x 60 metre
Serra Grande10 x 10 metre, 10 x 20 metre
25 x 25 metre, 40 x 20 metre,
40 x 40 metre, 50 x 20 metre
Colombia
GramaloteNone50 x 50 metre
Quebradona30 x 30 metre60 x 60 metre



ITEM 4A:Resource Modification FactorUNRESOLVED STAFF COMMENTS%RMF based on tonnes100
Resource Modification Factor%RMF based on g/t100
Mining Recovery Factor%MRF based on tonnes
90(2); 100(1)
Mining Recovery Factor%MRF based on g/t100
Mine Call Factor%MCF100
Metallurgical Recovery Factor%MetRF
87.4-89.4(1); 89.0-89.1(2)
(1) Open pit (2) Underground

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.




179

For the underground LOM plan, the Boston Shaker FS study was completed in 2019 which determined the viability of the Boston Shaker underground project. All Mineral Reserve is estimated by reporting physicals (volumes, tonnes, grades, material types, etc.) against the Mineral Resource model within detailed designs. Mineral Reserve physicals are then scheduled and put through a financial model for economic evaluation.

Conclusion
There are no known significant risks or uncertainties which currently affect the Mineral Resource and Mineral Reserve estimate. A significant change in the gold price or operating costs could potentially impact the economic viability of the Mineral Resource and extraction of the Mineral Reserve. The reasonable prospects for economic extraction at some time in the future relies on the gold price increasing or staying at similar levels to that of today.

An independent external Mineral Resource and Mineral Reserve audit was undertaken in 2021 by SRK Consulting and found no significant flaws in process or output.

Map showing Tropicana planned infrastructure and licences
Map showing the location, infrastructure and mining license area for Tropicana, with the total mining lease area insert shown in the top right corner. The coordinates of the mine, as represented by the plant, are depicted on the map and are in the UTM coordinate system.




180

au-20211231_g24.jpg



181

ITEM 4A:    UNRESOLVED STAFF COMMENTS
Not applicable.




182

ITEM 5: OPERATING AND FINANCIAL REVIEW AND PROSPECTS


The following discussion provides information that management believes is relevant to an assessment and understanding of the consolidated financial condition and results of operations of AngloGold Ashanti Limited under IFRS for the three years ended and as at 31 December 2019, 20182021, 2020 and 2017.

The company announced the sale of its remaining South African producing assets and related liabilities (SA disposal group) on 12 February 2020. As a result of the contemplated sale of the SA disposal group, the SA disposal group was classified as an asset held for sale and recognised as a discontinued operation in the company’s consolidated financial statements for the year ended and as at 31 December 2019. See “Item 18: Financial Statements-Note 9-Discontinued operations and assets and liabilities held for sale” for further details. The company’s operating and financial results and the related comparative statements have been restated in accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations to recognise the SA disposal group as a discontinued operation for the years ended 31 December 2018 and 2017. The discussion of operating and financial results in this “Item 5: Operating and Financial Review and Prospects” relates to the company'scompany’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 a by-product following the sale of its Vaal River operations, effective 28 February 2018. By-product revenue from continuing operations amounted to $86$126 million in 2019 (2018: $1332021 (2020: $105 million; 2017: $1392019: $86 million) out of total revenue from product sales from continuing operations of $3,525$4,029 million in 2019 (2018: $3,3362021 (2020: $4,427 million; 2017: $3,3942019: $3,525 million). See “Item 18: Financial Statements-Note 3-RevenueStatements—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:


Continental •Africa (comprising the DRC, Ghana, Guinea, Mali, the DRC and Tanzania);
South Africa (recorded as a discontinued operation);
Australia; and
•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 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 12ten continuing mining operations in Continental Africa, Australia and the Americas comprising open-pit and underground mines, 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 2019,2021, the company reported, on an attributable basis.basis, Proven and Probable OreMineral Reserve for gold of approximately 20.823.78 million ounces in subsidiaries 7.5and 4.33 million ounces in equity accountedequity-accounted joint ventures and 15.5 million ounces from discontinued operations.ventures. For the year ended 31 December 2019,2021, AngloGold Ashanti reported an attributable gold production of approximately 2.52.11 million ounces from subsidiaries 0.4and 0.37 million ounces from equity accountedequity-accounted joint ventures and 0.4 million ounces from discontinued operations.ventures. As at 31 December 2019,2021, the company reported an attributable Proven and Probable OreMineral Reserve for copper of 3,068Mlbs.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, timber, reagents, logistics, fuel, power, water and contractors’ costs), royalties and other 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.






5A:OPERATING RESULTS

183

5A:    OPERATING RESULTS

Introduction


2019Global stocks ended 2021 near their all-time highs, as the month of December reversed losses made in November due to the spread of the Omicron variant of the coronavirus. Early data suggested that the Omicron variant was markednot as harmful as originally suspected and economic data had also pointed to a slight return to normality. As such, stocks advanced in December 2021, with the 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 increase in February 2022, with the Consumer Prices Index (CPI) coming in at 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 highest reading since January 1982. The rise was due to the 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 low25 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 ongoing US-China trade conflictprice 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.

2021 was a redemption story for global manufacturing growth slowdown, alljewellery 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 which led to recession fears. Central banks also played their part2021 with the US Federal Reserve cutting rates three timesrelease 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 heavily front-loaded with 324 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 gold reserves rose to just shy of 35,600 tonnes during 2021, the highest level since 1992.

Mine production in the fourth quarter of 2021 fell one percent year-on-year to 915 tonnes. This represents the lowest level of fourth quarter mine output since 2015. Annual production totalled 3,561 tonnes in 2021, two percent higher than 2020 but still lower than 2019 and three percent lower than 2018 which stands as the year pumping more than $400 billion worthduring which most gold was mined.

Full-year gold demand in the technology sector in 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 liquidity into the US Repo market. Inpandemic, growing nine percent to 272 tonnes.

For the absence2021 year, the average market spot price of inflation coupled with low yielding assets, gold gained favour from investors as both a store of valuewas $1,798 per ounce and a safe haven asset class.the average gold price received was $1,796 per ounce. The price of gold soareddeclined by tenfour percent yearover 2021, starting on year. US Treasury bonds also benefitted from the flight to safety and consequently yields came tumbling down across the curve.

As is often the case during periods of high and rising gold prices, retail and professional investment behaviour diverge. Bar and coin investors are more inclined to capitalise on a price rise by selling existing holdings. In contrast, tactical positioning in long (purchases) by professional investors on the Comex reached all-time highs equivalent to 1,134 tonnes in September 2019. This bullish sentiment among professional investors contributed to the price rise, which in turn attracted further momentum-driven investment inflows, notably into Exchange Traded Funds (ETFs). Physically-backed ETFs and similar products closed 20191 January 2021 at 2,885.5 tonnes with annual inflows of 401.1 tonnes, up 426 percent year on year. Total investment growth netted out at nine percent year on year as retail investors selling off-set professional investors purchases.

In the fourth quarter of 2019, central banks added a net 109.6 tonnes to global official gold reserves bringing full-year net purchases to 650.3 tonnes, just one percent short of the 2018 total of 656.2 tonnes. This marks ten consecutive years of net purchases, with global official reserves now 5,000 tonnes higher than at the end of 2009 at circa 34,700 tonnes and highlights the importance central banks place on having an allocation of gold in their reserve portfolio.

In 2019, global gold jewellery demand volumes fell six percent to 2,107 tonnes. Purely a second half of the year phenomenon, the weakness was primarily due to the big jump in the third quarter in the price of gold (in local currency terms), which impacted affordability. The price was well supported at elevated levels throughout the closing months of 2019, leading to a ten percent year on year drop in the fourth quarter demand to 584.5 tonnes. In US dollar terms, gold jewellery demand grew by three percent to a five-year high of $94.3 billion. Much of this came from a nine percent year on year increase in the fourth quarter demand, which reached $27.8 billion, a seven-year high.

Technology demand for gold weakened contributing to a two percent fall in demand for gold in the sector.

Total supply was slightly higher in 2019, up two percent year on year from 4,673.0 tonnes in 2018 to 4,776.1 tonnes in 2019. This growth was attributable to the price performance of gold over the year, primarily through its impact on recycling, but also on net hedging to a certain extent. While mine production fell by one percent year on year, a sharp increase in gold recycling to its highest level since 2012 (up 11 percent year on year) helped boost higher total supply. Modest net producer hedging, the first year of net hedging since 2016, also contributed to overall supply.

The market spot gold price closed the fourth quarter of 2019 at $1,517 per ounce which was also the highest price in the fourth quarter. The lowest market spot gold price recorded in the fourth quarter was $1,454 per ounce. The average market spot gold price was recorded at $1,483 per ounce for the fourth quarter. The average market spot gold price was recorded at $1,394 per ounce for the full year 2019. The highest market spot gold price recorded in 2019 was $1,552approximately $1,898 per ounce and the lowest market spot gold price for the same period was $1,270ending on 31 December 2021 at approximately $1,828 per ounce. Management uses the market spot gold price to monitor the performance of the gold price and its effect on the company’s results. It gives an investor insight into the performance of the gold price and its impact on company results.




Restatement as a result of discontinued operations


On 12 February 2020, the company announced an agreement to sell its remaining South African producing assets and related liabilities (SA disposal group) to Harmony Gold Mining Company Limited. Consideration for the transaction is in cash and deferred payments with expected proceeds of around $300 million, subject to subsequent performance, and with additional proceeds if the West Wits assets are developed below current infrastructure. The consideration is comprised of $200 million in cash payable at the closing of the transaction and two components of deferred consideration, payable as follows:184


1.$260 per ounce payable on all underground production sourced within the West Wits mineral rights (comprising the Mponeng, Savuka and Tau Tona mines) in excess of 250,000 ounces per annum for 6 years commencing 1 January 2021; and
2.$20 per ounce payable on underground production sourced within the West Wits mineral rights (comprising the Mponeng, Savuka and Tau Tona mines) below the datum of current infrastructure.

The transaction principally comprises the following assets and liabilities:

The Mponeng mine and its associated assets and liabilities;
The Tau Tona and Savuka mines and associated rock-dump and tailings storage facility reclamation sites, mine rehabilitation and closure activities located in the West Wits region and their associated assets and liabilities;
First Uranium (Pty) Limited, which owns Mine Waste Solutions (Pty) Limited and Chemwes (Pty) Limited, as well as associated tailings assets and liabilities;
Covalent Water Company (Pty) Limited, AngloGold Security Services (Pty) Limited and Masakhisane Investments (Pty) Limited; and
Certain rock-dump reclamation, mine rehabilitation and closure activities located in the Vaal River region and their associated assets and liabilities.

Pursuant to the agreement, the silicosis obligation of $65 million and the post-retirement medical obligation of $93 million relating to South African employees will be retained by the group.

The agreement provides for terms customary in agreements of this nature and is subject to customary conditions precedent, including the obtaining of all necessary consents from the South African DMRE (including section 11 and section 102 approvals under the MPRDA) for the transfer of the mining rights related to the sale of the mining assets and securing the approval of the South African Competition Authorities in terms of the South African Competition Act, No. 89 of 1998. The company and Harmony Gold Mining Company Limited have committed to engage with the relevant authorities and other stakeholders in order to ensure the conditions precedent are fulfilled as soon as possible with the earliest closing anticipated on or about 30 June 2020.

As a result of the contemplated sale of the SA disposal group, the SA disposal group was classified as an asset held for sale and recognised as a discontinued operation in the company’s consolidated financial statements for the year ended and as at 31 December 2019. See “Item 18: Financial Statements-Note 9-Discontinued operations and assets and liabilities held for sale” for further details.

The company’s operating and financial results and the related comparative statements have been restated in accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations to recognise the SA disposal group as a discontinued operation for the years ended 31 December 2018 and 2017. 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).

Change in presentation of “Special items” disclosure

Effective 1 January 2019, the group changed the disclosure of “Special items” in the income statement. In prior periods, the group disclosed items that, due to their size and/or nature, required separate disclosure on the face of the income statement as “Special items”. In addition, a disclosure category “Other operating expenses” was reported to disclose expenses which were not included in gross profit. Going forward these two categories of expenses and income will be disclosed as “Impairment, derecognition of assets and profit (loss) on disposal” and “Other expenses (income)” depending on materiality. This new presentation provides more useful information by reporting material items separately. The change in presentation has no impact on the reported totals, or on amounts presented in the statement of financial position. For further details, refer to “Item 18: Financial Statements-Note 1-Accounting Policies”.

Key factors affecting results


Gold prices


AngloGold Ashanti’s operating results are directly related to the market spot gold price, 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:
2017 - $1,251 per ounce
2018 - $1,261 per ounce
•2019 - $1,387$1,394 per ounce

•2020 - $1,778 per ounce
•2021 - $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 2021 at $1,942 per ounce, the market spot gold price fromprogressively retracted to a year low of $1,684 per ounce on 8 March 2021, 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 $1,828 per ounce compared to $1,896 per ounce the prior year. Between 1 January 2020 to 192022 and 23 March 2020 was $1,580.882022, 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 2020,2022, the afternoon price for gold on the London Bullion Market was $1,474.25$1,943 per ounce. After an initial increase in the beginning of the year, the market spot gold price decreased from a high of $1,687.00 per ounce on 6 March 2020 to a low of $1,469.80 per ounce on 19 March 2020 in the midst of a wider market dislocation related to the COVID-19 pandemic and despite the alleged investor perception of gold as a relatively safe haven in periods of market volatility.


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.


On 22 and 28 January 2020, the company entered into Asian style zero-cost collars in respect of its Argentinean operations (CVSA) for a total of 130,900 ounces (70 percent of CVSA’s annual gold production) for the period February 2020 to December 2020. The strike prices are as follows: $1,500 per ounce on the floor and an average price of $1,701.34 per ounce on the cap.




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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) remained fairly consistent between 20172019 - 20192021 from 2.85 million ounces in 2017, 2.91 million ounces in 2018 to 2.86 million ounces in 2019.2019, 2.81 million ounces in 2020 to 2.47 million ounces in 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“—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 partthe result of government-mandated containment measures or additional safety measures that the company may also consider). The company operates minesconsider in countries that have confirmed cases of COVID-19 and resulting death.the future). A full or partial shutdown of the company’s mines in the affected areas and, as a result,and/or a halt in related mining operations could occur if COVID-19 spread among our workforce, in caseif 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 recently 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 temporarily suspendoperate with limited mining activities. Similarly,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



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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 State2 GHG emissions compared to 2007 since our initial commitment in 2008. We are also tracking the carbon intensity of Goiás governments imposed similar restrictions resultingour energy mix by measuring GHG emissions per Gigajoule (“GJ”) of energy used. This measure improved by 31% year-on-year in the temporary suspension2021 to approximately 63 kilograms of mining activitiesCO2e emitted per GJ of the company’s South Africanenergy compared to 2020 as a lower proportion of our operations and Serra Grande operations in Brazil, respectively.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 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 2019,2021, the ArgentinianArgentinean peso and Brazilian real weakened and the Australian dollar weakened,strengthened, which collectively had a favourable impact on AngloGold Ashanti’s US dollar denominated total cash costs.



Average annual exchange rates to the US dollar202120202019
Brazilian real5.40 5.15 3.94 
Australian dollar1.33 1.45 1.44 
Argentinean peso95.21 70.71 48.29 
Average annual exchange rates to the US dollar2019
 2018
 2017
Brazilian real3.94
 3.66
 3.19
Australian dollar1.44
 1.34
 1.30
Argentinian peso48.29
 28.14
 16.57


In 2019,2021, the company derived 5551 percent (47(43 percent including joint ventures) of its revenues from continuing operations from Brazil, Australia and Argentina, and incurred 5453 percent (47(48 percent including joint ventures) of its total cash costs from continuing operations in 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 $13$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 in Argentina. In the case of Argentina, although the exchange rate of the ArgentinianArgentinean 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. It is not possible to predict whether or when this will occur or the future value of the ArgentinianArgentinean peso.
Total cash costs and effects of inflation


Total cash costs include cash operating costs (which include salaries and wages, stores, explosives, timber, reagents, logistics, fuel, power, water and contractors’ costs), royalties and other 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 Brazil, Argentina or Australia, without a concurrent devaluation of the local currency or an increase in the price of gold, there could be a material adverse effect upon the company’s results and financial condition. See “Item 3D: Risk Factors—Inflation may have a material adverse effect on results of operations”.





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At 31 December 2021, AngloGold Ashanti employs globally over 26,000 people (34,00030,000 people, including the SA disposal group) globally,contractors, most of whom are members of trade unions, particularly in 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. COVID-19 presented challenges with travel restrictions and shortages of critical skills resulting in higher labour and contractors’ costs at 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 $54 per barrel in 2017, $71 per barrel in 2018 to $65 per barrel in 2019, $42 per barrel in 2020 to $71 per barrel in 2021, a 20$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 $0.9$0.8 per ounce, with the total cash costs of certain of the company’s mines, particularly Siguiri (Guinea), Iduapriem (Ghana), Geita (Tanzania), Kibali (DRC), Morila and Sadiola (Mali),Tropicana (Australia) which are more dependent on fuel, being more sensitive to changes in the price of oil.

On 10 AngloGold Ashanti is monitoring the developments in the 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 2020,and March 2022, pushing oil prices higher to levels last seen during the company entered into Asian style zero-cost collars for2008 global financial crisis. In recent weeks, the oil price has increased precipitously as a totalresult of approximately 342,000 barrelsthe conflict and, as of 23 March 2022, the price of oil was at $133per barrel of Brent crude oil forCrude. See “Item 3D: Risk Factors—The profitability of mining companies’ operations and the period February 2020 to December 2020. The average strikecash flows generated by these operations are significantly affected by fluctuations in input production prices, are $45 per barrel on the floor and an average pricemany of $65 per barrel on the cap. On 26 February 2020, the company entered into an additional set of Asian style zero-cost collars for a total of approximately 622,000 barrels of Brent crude oil for the period March 2020 to December 2020. The average strike prices are $44.50 per barrel on the floor and an average price of $65 per barrel on the cap.

Energy costs, even in business segments which are supported by grid power have increased considerably overlinked to the three-year period. 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 $111 million incurred in 2017 to $133 million incurred in 2018 and $137 million in 2019 a 23to $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 and excluding liabilities related to assets held for sale)discontinued operations) totalled $637 million in 2018 and $634 million in 2019, (including liabilities related to assets held for sale: $637$674 million in 20182020 and $730$688 million in 2019).2021. During 2019, $96 million was transferred to liabilities related to assets held for sale which

amount was partially offsetsale. During 2020, the provisions for decommissioning and restoration increased by a change$40 million due to several changes in estimate. The change incalculating estimates isthat are attributable to changes in discount rates, due to changes in global economic assumptions, 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 20172019 - 20192021 period from $685by $127 million, toor 24 percent, from $538 million in 2019 to $411 million in 2021, largely due to open pit ore being depletedlower deferred stripping at Tropicana, Geita and lower productionIduapriem.

Amortisation of right of use assets increased during the 2019 - 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 intangible assets remained mainly unchanged at Cerro Vanguardia and Siguiri.$3 million during the 2019 - 2021 period.


Exploration and evaluation costs


The company has expensed exploration expenditure during the years ended 31 December 2017, 20182019, 2020 and 20192021 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 $105 million in 2017, $98 million in 2018 and $112 million in 2019.2019, $124 million in 2020 and $164 million in 2021. Exploration expenditure increased during 20192021 mainly due to an increase in Brownfieldsgreenfields exploration and global specialist and management cost.in Nevada, United States.


Corporate administration, marketing and otherrelated expenses





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The corporate administration, marketing and otherrelated expenses incurred amounted to $64 million in 2017, $76 million in 2018 and $82 million in 2019.2019, $68 million in 2020 and $73 million in 2021. The increase isin 2021 of $5 million, or seven percent, was mainly due to higherthe exchange rate impact of a 10 percent stronger local currency partly offset by lower labour costs (cash shares costs and equity share costs), higher technical security costs and consultancy costs.


Impairment, derecognition of assets and profit (loss) on disposal


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 $1,599 per ounce in 2021, $1,450 per ounce in 2020 and $1,300 per ounce in 2019, and $1,239 per ounce in 2018, 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 $1,394$1,798 per ounce in 20192021 and $1,268$1,772 per ounce in 2018.2020. The market spot gold price in 20202021 has been subject to volatile short-term swings Theswings. Between 8 March 2021 and 6 May 2021, the market spot gold price has averaged $1,580.88traded between a low of $1,684 per ounce from 1 January 2020 to 19and a high of $1,949 per ounce. On 23 March 2020 and closed at $1,474.252022, the afternoon price for gold on the London Bullion Market was $1,943 per ounce on 19 March 2020.ounce.


Other expenses


Other expenses decreased duringincurred over the 2017 - 2019 period, from $150 millionlast 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 a decrease in legal settlement fees. In 2017, an initial provision forcare 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 silicosis class actionObuasi 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 $63underground mining activities, care and maintenance costs of $45 million was madewere incurred at Obuasi during 2021. Retrenchment and related costs of $18 million were incurred during 2021 as part of the transition to the new Operating Model. Bond settlement costs during 2021 related to costs associated with athe tender offer for, and subsequent adjustmentredemption of, $2the $750 million in 2019.aggregate principal amount of 5.125% notes due 2022 and amounted to $24 million. These increases were partly offset by the lower cost of old tailings operations, mainly at Obuasi, due to fewer activities at such old tailings operations, and lower value added tax (“VAT”) and other duties expensed.


Taxation


Taxation increased over the period 20172019 - 20192021 from an expense of $163 million in 2017 to an expense of $250 million in 2019.2019 to an expense of $312 million in 2021. Increase in taxation over the period 20172019 - 2019 is2021 was largely due to increased deferred tax charges in Ghana and Tanzania due to higher earningscapital expenditure resulting in Australia, Tanzania, Brazil and Ghana.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 20192021


For the year ended 31 December 2019,In 2021, AngloGold Ashanti’s total attributable gold production of 2.86was 2.472 million ounces, a decrease of 334,000 ounces, or 12 percent, compared with its total attributable gold production of 2.806 million ounces in 2020. Production was 50,000lower 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



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on the mobility of labour, across the full year. The direct impact on production from COVID-19 was estimated at 47,000 ounces for the full year in 2021, compared to 59,000 ounces in 2020.

Production decreased by 11 percent, or 184,000 ounces in 2021, as compared to 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 drawdown 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 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. 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 2021. 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 mine’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 56,000 ounces, or two percent, lower than the 2018compared with its total attributable gold production of 2.912.862 million ounces.

ounces in 2019. Production increased by twofour percent, or 26,00065,000 ounces in 20192020, as compared to 2018,2019, in the Continental Africa region. The increase was mainly due to the transition to predominantly underground operations which resulted in higher grade material and increased tonnes treated at Geita and improvedthe 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 IduapriemSiguiri was due to the Operational Excellence programme which focused on improved grade control practices.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 and Iduapriem. The increase in production was partially offset by a decreasethe cessation of mining activities at Siguiri due to the integration of the Carbon-in-Leach (CIL) combination plant that was completed during the year with a slower ramp-up than anticipated and lower production from both Sadiola and Morila as these two operations nearin Mali, and the endimpact of their mining activities.the COVID-19 pandemic.


Production decreased by twoten percent, or 11,00060,000 ounces in 20192020, as compared to 2018,2019, in the Australia region. The decrease resulted from lower mill feed gradeswas mainly due to planned lower underground mined volume combined with lower minedore sourced from open pit and completion of grade streaming activities while moving into a waste stripping phase at Tropicana during 2020. Steady performance was achieved by Sunrise Dam. The decrease in production was partially offset by an increase at Tropicana as a result of higher mill throughput and tonnes mined.


In the Americas region, production decreased by eightnine percent, or 66,00061,000 ounces in 20192020, as compared to 2018. The decrease was mainly2019. Lower production at Cerro Vanguardia was due to the effect of lower planned grades aligned to the current life-of-mine plan and due to lower production andtonnes treated as a result of the miningimpact of lower grades.the COVID-19 pandemic. Production was also lower at Serra Grande due to lower feedgrades as a result of geological model changes, grade lower drilling productivitycontrol changes and fewer trucks available.operational delays at high grade stope areas, further impacted by absenteeism due to the COVID-19 pandemic. Production was lowermaintained at AGA Mineração despite the impact of stoppages and absenteeism due to poor ground conditions at the Cuiabá complex and at Córrego do Sítio due to geological model changes, open pit license delays at Rosalino orebody, geotechnical issues and excessive rainfall.

Production in 2018

For the year ended 31 December 2018, AngloGold Ashanti’s total attributable gold production of 2.91 million ounces was 60,000 ounces, or two percent, higher than the 2017 production of 2.85 million ounces.

Production increased by four percent, or 59,000 ounces, in 2018 as compared to 2017, in the Continental Africa region. The increase was mainly due to higher recovered grades and increased tonnage treated due to improved plant performance 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. The increase in production was partially offset by a decrease at Siguiri due to a decrease in recovered grade from treating lower grade oxide material and a decrease in tonnes due to delays in the commissioning of the CIL combination plant.

Production increased by 12 percent, or 66,000 ounces, in 2018 as compared to 2017, in the Australia region. Gold production increased at Sunrise Dam due to higher mill feed gradesCOVID-19, unexpected heavier-than-normal rains in the first andhalf of the last quarters of 2018. Improved mill feed grades and mill throughput resulted in higher production at Tropicana.

In the Americas region, production decreased by eight percent, or 64,000 ounces, in 2018year, as compared to 2017. The decrease was in Brazil mainly at AGA Mineração due to development and infrastructure constraints at the Cuiabá complex and at Córrego do Sítio due to lower grades in the sulphide operation, excessive rainfall and open-pit licensing delays. Production was also impacted by lower tonnes placedwell as geotechnical issues on the heap leach, model changes, and production stoppages due to strikes. Production was also lower at Serra Grande due to less ore mined following geological model changes and excessive rainfall.high-grade areas.






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Comparison of financial performance in 2019, 20182021, 2020 and 20172019
Financial performance of AngloGold AshantiYear ended 31 December
(in $ millions)202120202019
Continuing operations
Revenue from product sales4,029 4,427 3,525 
Cost of sales(2,857)(2,699)(2,626)
Total of all other (expenses) income(463)(417)(448)
Share of associates and joint ventures’ profit (loss)249 278 168 
Taxation(312)(625)(250)
Discontinued operations
Profit (loss) from discontinued operations— 7 (376)
Profit for the period646971(7)
Net profit (loss) attributable to equity shareholders
 - Continuing operations622 946 364 
 - Discontinued operations— 7 (376)
Net profit (loss) attributable to non-controlling interests
 - Continuing operations24 18 5 
Financial performance of AngloGold AshantiYear ended 31 December
(in $ millions)2019
 2018
 2017
Continuing operations     
Revenue from product sales3,525
 3,336
 3,394
Cost of sales(2,626) (2,584) (2,607)
Total of all other (expenses) income(448) (429) (481)
Share of associates and joint ventures’ profit (loss)168
 122
 22
Taxation(250) (212) (163)
Discontinued operations     
Profit (loss) from discontinued operations(376) (83) (336)
      
Net profit (loss) attributable to equity shareholders     
 - Continuing operations364
 216
 145
 - Discontinued operations(376) (83) (336)
Net profit (loss) attributable to non-controlling interests     
 - Continuing operations

5
 17
 20

Comparison of total cost of sales in 2019, 20182021, 2020 and 20172019

The following table presents cost of sales from continuing operations for the AngloGold Ashanti group for the three-year period ended 31 December 2019:2021:
Cost of sales for AngloGold AshantiYear ended 31 December
(in $ millions)202120202019
Total cost of sales2,857 2,699 2,626 
Inventory change(6)(21)(5)
Amortisation of tangible assets(411)(521)(538)
Amortisation of intangible assets(3)(2)(3)
Amortisation of right of use assets(63)(47)(42)
Retrenchment costs(2)(2)(4)
Rehabilitation and other non-cash costs(38)(32)(53)
Total cash costs2,334 2,074 1,981 
Cost of sales for AngloGold AshantiYear ended 31 December
(in $ millions)2019
 2018
 2017
Total cost of sales2,626
 2,584
 2,607
Inventory change(5) (9) (14)
Amortisation of tangible assets(538) (553) (685)
Amortisation of intangible assets(3) (5) (5)
Amortisation of right of use assets(42) —
 —
Retrenchment costs(4) (4) (6)
Rehabilitation and other non-cash costs(53) (17) (16)
Total cash costs1,981
 1,996
 1,881


Comparison of financial performance in 20192021 with 2018

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 increaseddecreased by $189$398 million, or sixnine percent, from $3,336$4,427 million in 20182020 to $3,525$4,029 million in 2019,2021, mainly as a result of thea decrease in gold income, partly offset by an increase in by-product revenue. Gold income decreased by $419 million, or 10 percent, from $4,322 million in 2020 to $3,903 million in 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 $128$18 per ounce. Gold income increased by $236 million, or seven percent, from $3,203 million in 2018 to $3,439 million in 2019, due to the increase in the gold price received partially offset by the decrease in gold sold. Gold sold decreased by 50,000260,000 ounces, or two11 percent, from 2.462.376 million ounces in 20182020 to 2.412.116 million ounces in 2019.2021, which resulted in a decrease in gold income of $451 million, partly offset by an increase in average gold price received. The average gold price received increased by $128$18 per ounce, or tenone percent, from $1,266$1,778 per ounce during 20182020 to $1,394$1,796 per ounce in 2019,2021, which resulted in an increase in gold income of $316$32 million. By-product revenue decreasedincreased by $47$21 million, or 3520 percent, to $86 million from $133$126 million in 2018,2021 from $105 million in 2020, mainly due to a decreasean increase in revenue from silver.





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Revenue from product sales from the Continental Africa operations increased(excluding equity-accounted joint ventures) decreased by $185$137 million, or 13six percent, to $1,590$1,988 million in 20192021 from $1,405$2,125 million in 2018,2020, mainly as a result of thea decrease in gold income. Gold income (excluding equity-accounted joint ventures) decreased by $137 million, or six percent, from $2,122 million in 2020 to $1,985 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,received. Gold sold decreased by 95,000 ounces, or eight percent, from 1.155 million ounces in 2020 to 1.060 million ounces in 2021, which resulted in an increase of gold

income of $140 million. The increase in gold ounces sold resulted in an increasea decrease in gold income of $47 million.$149 million, partly offset by an increase in average gold price received. The increasedecrease was mainly due to the transition to predominantly underground operations which resulted inlower production from Iduapriem, Obuasi and Geita, partly offset by higher grade material and increased tonnes treated at Geita and improved production at Iduapriem due toSiguiri. For a discussion of the Operational Excellence programme which focused on improved grade control practices.decrease in production at the Africa operations during 2021, see “Item 5A: Operating Results—Key factors affecting results—Production in 2021”. The increase in production was partially offset by a decrease at Siguiri due to the integration of the CIL combination plant that was completed during the year and a slower ramp-up than anticipated.

Revenue from product sales from Australia increased by $72 million, or nine percent, from $782 million in 2018 to $854 million in 2019. The increase in theaverage gold price received resulted in an increase in gold income of $78$12 million. Gold productionBy-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 lower mill feed grades due to lower underground mined volume combined with lower mined grade at Sunrise Dam. Thea decrease in production was partiallygold income, partly offset by an increase at Tropicana as a resultin 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 higher mill throughput and tonnes mined. The decreasegold sold, partly offset by an increase in the average gold price received. Gold sold decreased by 62,000 ounces, soldor 11 percent, from 557,000 million ounces in 2020 to 495,000 ounces in 2021, which resulted in a decrease in gold income of $8$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 $68$163 million, or six12 percent, from $1,149$1,310 million in 20182020 to $1,081$1,147 million in 2019.2021, mainly as a result of a decrease in gold income, partly offset by an increase in by-product revenue. Gold income decreased by $21$183 million, or two15 percent, from $1,021$1,211 million in 20182020 to $1,000$1,028 million in 2019.The2021. This decrease was mainly due to a decreaselower ounces of 78,000gold 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 2019,2021, which resulted in a decrease in gold income of $113$194 million. GoldFor a discussion of the decrease in production primarily decreased at Cerro Vanguardia mainly due to development and infrastructure constraints, coupled with lower grades.the Americas operations during 2021, see “Item 5A: Operating Results—Key factors affecting results—Production in 2021”. The decrease was partially offset by an increase in theaverage gold price received which resulted in an increase inof gold income of $92$11 million. By-product revenue decreasedincreased by $47$20 million, or 3720 percent, to $81 million from $128$119 million in 2018,2021 from $99 million in 2020, mainly due to a decreasean increase in revenue from silver.


Cost of sales


Cost of sales increased from $2,584$2,699 million in 20182020 to $2,626$2,857 million in 2019,2021, which represents a $42$158 million, or twosix percent, increase. The increase was primarily due to a $36an 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 from $17by $6 million, or 19 percent, to $38 million in 2018 to $532021 from $32 million in 2019.2020, 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 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 mainly 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 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. 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 environmental rehabilitation and other non-cash costs primarily 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 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 methodology used to calculate such estimates in response to comments from environmental regulatory authorities. The increase in amortisation of right of use assets was mainly due to an increase in number of right of use assets in 2021 as compared to 2018.2020 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 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.


In Continental Africa, cost of sales increased from $1,127$1,232 million in 20182020 to $1,173$1,300 million in 2019,2021, which represents a $46$68 million, or foursix percent, increase. The increase was mainly due to an increase in royalties,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 change.prices. The higher fuel




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and power costs were mainly due to the increase in the price of Brent Crude oil, which increased from $42 per barrel in 2020 to $71 per barrel in 2021, a $29 per barrel, or a 69 percent increase. The increase in cost of sales was partly offset by lower amortisation of waste stripping and lower royalties paid due to a decrease in ounces of gold sold in 2021 as compared to 2020.

In Australia, cost of sales increased from $622$705 million in 20182020 to $632$740 million in 2019,2021, which represents a $10$35 million, or twofive percent, increase. 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 inventory change. The increase was partially offset by a decrease in service-relatedother charges, power and fuel costs, ore stockpile adjustments and the weakeningstrengthening of the Australian dollar against the US dollar.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. 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 lower royalties paid due to a decrease in ounces of gold sold in 2021 as compared to 2020.


In the Americas, cost of sales decreasedincreased from $838$764 million in 20182020 to $822 million in 2019,2021, which represents a $16$58 million, or twoeight percent, decrease.increase. The decreaseincrease 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 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 due to a decrease in ounces of gold produced in 2021 as compared to 2020 and the weakening of the local currencies, the Argentinian peso by 72 percent and the Brazilian real by eight percent, against the US dollar.

Total cash costs

Total cash costs decreased from $1,996 million in 2018 to $1,981 million in 2019, which represents a $15 million, or one percent, decrease. The decrease was primarily due to the weakening of local currencies against the US dollar. The decreaseArgentinean peso weakened by 35 percent and the Brazilian real by five percent, against the US dollar.

Total cash costs

Total cash costs increased from $2,074 million in 2020 to $2,334 million in 2021, which represents a $260 million, or 13 percent, increase. The increase was partially offset byprimarily due to an increase in royalties.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, timber, reagents, logistics, fuel, power, water and contractors’ costs), royalties and other cash costs.

Cash operating The strengthening of the Australian dollar against the US dollar contributed to the increase in total cash costs, decreased from $1,850 million in 2018 to $1,831 million in 2019, which represents a $19 million, or one percent, decrease, primarily due towas partially offset by the weakening of local currencies against the US dollar.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 to the increase in total cash costs, which was partially offset by the weakening of local currencies against the US dollar in Brazil and Argentina. Cash operating costs includes salaries and wages, stores, explosives, timber, reagents, logistics, fuel, power, water and contractors’ costs.


Royalties, which are generally calculated as a percentage of revenue, increaseddecreased from $133$181 million in 20182020 to $137$162 million in 2019,2021, which represents a $4$19 million, or three10 percent, increase,decrease. The decrease was primarily due to an increasea decrease in gold sales across all mining operations with the spot gold prices and an increase in production at Geita and Iduapriemexception of Siguiri. The decrease was partially offset by a decrease in production in Argentina.an increased average gold price received per ounce.


Retrenchment costs


Retrenchment costs included in cost of sales remained unchanged at $2 million in 2019 at $4 million2021 as in 2018.compared to 2020.


Rehabilitation and other non-cash costs


RehabilitationEnvironmental rehabilitation and other non-cash costs increased from $17$32 million in 20182020 to $53$38 million in 2019,2021, which represents a $36$6 million, or a 19 percent, increase. ThisThe increase was primarily due to a change in discount ratesmainly due to changes in global economic assumptions anddesign 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 design facilities andthe methodology following requestsused to calculate such estimates in response to comments from environmental regulatory authorities compared to 2018.and changes in global economic assumptions.







193

Amortisation of tangible, intangible and right of use assets


Amortisation of tangible, intangible and right of use assets expense increaseddecreased from $558$570 million in 20182020 to $583$477 million in 2019,2021, which represents a $25$93 million, or four16 percent, increase. decrease.

Amortisation of tangible assets decreased by $15$110 million, or three21 percent, from $553$521 million in 20182020 to $538$411 million in 2019, largely2021. The decrease was mainly due to lower amortisation at Geita due to lower production at Cerro Vanguardia, lower depreciation onand the waste stripping asset asclosure of the Nyankanga Cut 8 open pit ore is being depleted,in 2021, the reset of useful life in February 2021 for the heavy moving equipment fleet resulting in lower depreciation onamortisation compared to 2020, and the mining fleetreset 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 a change in fleet management strategy at Geitalower production and lower deferred stripping amortisation in 2021 at Teberebie Cut 1 and Cut 3, at AGA Mineração, amortisation was lower mainly due to lower production, and at Serra Grande. TheTropicana, amortisation was lower mainly due to lower production and lower deferred stripping amortisation, partly offset by higher Mineral Reserve development amortisation. This decrease was partiallypartly offset by an increase inhigher amortisation at IduapriemObuasi mainly due to completionthe amortisation for the nine months of the stripping activitiesJanuary 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 the 2019.2020 to $3 million in 2021 mainly due to software and licence expenditure at Obuasi.


Amortisation relating to right of use assets as recognised in accordance with IFRS 16 Leases (effectiveincreased by $16 million, or 34 percent, from 1 January 2019) was $42$47 million in 2019. Amortisation relating2020 to right of use assets was $18$63 million in 2021 largely at AGA Mineração, Serra Grande and Geita $16 millionmainly due to a change in business strategy whereby certain heavy mobile equipment is leased at the Australian operations and $6 million at Córrego do Sítio.these operations.


Inventory change


Inventory change decreased from $9$21 million in 20182020 to $5$6 million in 2019,2021, 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 cost at Geita of $11 million with less ounces produced and sold, partly offset by an inventory valuation upward adjustment at Obuasi of $20 million as a result of timing of shipment.

Impairment, derecognition of assets and profit (loss) on disposal

Impairment, derecognition of assets and profit (loss) on disposal increased by $12 million to a profit of $11 million in 2021, from a loss of $1 million in 2020. During 2021, profit on disposal of assets was $17 million mainly due to the disposal of properties held in Brazil, partly offset by derecognition of assets at Obuasi of $4 million, or 44 percent decrease.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(expenses) income


Other expenses(expenses) income increased fromby $79 million, in 2018or 139 percent, to $83an expense of $136 million in 2019, which represents a $42021, compared to an expense of $57 million or five percent, increase.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 increaseinsurance claim in government fiscal claims, cost2020 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 tailing operations and other expenses,underground mining activities, care and maintenance costs of $45 million were incurred at Obuasi during 2021. Retrenchment and related costs of $18 million were incurred during 2021 as part of the public infrastructure contributiontransition to the new Operating Model. Bond settlement costs during 2021 related to costs associated with the tender offer for, and subsequent redemption of, the $750 million aggregate principal amount of 5.125% notes due 2022 and amounted to $24 million. These increases in Guinea. The increase was partiallyexpenses were partly offset by a decrease in corporate retrenchmentsthe lower cost of old tailings operations, mainly at Obuasi, due to fewer activities at such old tailings operations, lower VAT and power grid refunds in Brazil.other duties expensed.


Finance costs and unwinding of obligations


Finance costs increaseddecreased by $3$28 million, or two20 percent, to $143$110 million in 2019,2021, compared to $140$138 million in 20182020, mainly due to an increase in capitalisation of interest against the effect of IFRS 16 Leases (effective from1 January 2019) on finance costs partially offset byObuasi redevelopment project, lower finance costs from borrowings.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 $29decreased by $33 million, was recordedor 85 percent, to $6 million in 20192021, compared with $28$39 million in 2018.2020, mainly due to a decrease in unwinding of other indirect taxes at Geita.


Share of associates and joint ventures'ventures’ profit





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Share of associates and joint ventures'ventures’ profit increaseddecreased by $46$29 million, or 3810 percent, to a profit of $168$249 million in 2019,2021, compared to a profit of $122$278 million in 2018,2020, mainly as a result of an increasea decrease in equity earnings of $39$7 million at Kibali.Kibali and $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 Mali 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 $1,651 million in 2020 to $1,647 million in 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 $250$312 million was recorded in 2019,2021, compared to ana taxation expense of $212$625 million in 2018,2020, which represents a $38$313 million, or 1850 percent, increase.decrease. Charges for current tax in 20192021 amounted to $298$248 million, compared to $242$562 million in 2018,2020, which represents a $56$314 million, or 2356 percent, increase.decrease. The increasedecrease in current tax iswas mainly due to higher earningslower pre-tax profit in Ghana, Australia, TanzaniaBrazil, Argentina and Ghana.Tanzania. Charges for deferred tax in 20192021 amounted to a net deferred tax benefitexpense of $48$64 million, compared to a net deferred tax benefit of $30$63 million in 2018,2020, which represents a $18$1 million, or 60two percent, increase. The increase in the deferred taxation benefit mainly relates to higher capital expenditure in Tanzania and higher estimated deferred tax resets in Guinea (related to a tax holiday agreement from 2020).


Discontinued operations


A lossprofit from discontinued operations of $376$7 million was recorded in 2019, compared to a loss2020, which was not repeated in 2021. The profit of $83 million in 2018, which represents a $293 million increase. The loss of $376$7 million consists of an operating profitloss after tax of $9 million and an impairment lossreversal of $385$16 million. TheAs a result of the sale of the company’s remaining South African producing assets and related liabilities in September 2020, the South African operations have beenwere accounted for as discontinued operations. Refer to “Item 18: Financial Statements-Note 9-Discontinued operations for the years ended and assetsas at 31 December 2020 and liabilities held for sale” for further details.31 December 2019.


Comparison of financial performance in 20182020 with 20172019


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 decreasedincreased by $58$902 million, or two26 percent, from $3,394$3,525 million in 20172019 to $3,336$4,427 million in 2018,2020, 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 decreased by 34,000 ounces, or one percent, from 2.410 million ounces in 2019 to 2.376 million ounces in 2020, which resulted in a decrease in gold soldincome of 42,000 ounces partially offset by an increase in the gold price received. Gold income decreased by $52 million, or two percent, from $3,255 million in 2017 to $3,203 million in 2018, mainly due to the decrease

in gold sold.$49 million. The average gold price received increased by $10$384 per ounce, or one28 percent, from $1,251$1,394 per ounce during 2019 to $1,778 per ounce in 2017 to $1,261 per ounce in 2018,2020, which resulted in an increase in gold income of $38$932 million. By-product revenue decreasedincreased by $6$19 million, or four22 percent, to $133$105 million in 20182020 from $139$86 million in 2017,2019, mainly due to lessan increase in revenue from silver.


Revenue from product sales from the Continental Africa operations decreased(excluding equity-accounted joint ventures) increased by $39$535 million, or three34 percent, to $1,405$2,125 million in 20182020 from $1,444$1,590 million in 2017,2019, mainly as a result of the decreaseincrease in average gold sold of 24,000 ounces,price received, which resulted in a decreasean increase of gold income of $49$443 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 partially offset by an increase in the gold price received resulting inounces of 59,000 ounces sold contributed to an increase in gold income of $10$91 million. The increase was mainly due to the transition to predominantly underground operations which resulted in increased tonnes treated at Geita and the commissioning of the Obuasi redevelopment project. Once commissioned, Obuasi sold 27,000 ounces despite delays in the pre-production phase receiving equipment and in the arrival of skilled personnel, critical to the project, as a result of the lockdowns in various jurisdictions




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during 2020. A marginal increase in production at Siguiri was due to the increase in hard rock processing capability resulting in a higher plant 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. 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 $71$138 million, or ten16 percent, from $711$854 million in 20172019 to $782$992 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 gold income of $65 million. Gold production increased at Sunrise Dam due to increased mill feed grades and improved mill throughput resulted in higher production at Tropicana.2020. The increase in the average gold price received resulted in an increase in gold income of $6$213 million. Gold production decreased mainly due to planned lower ore sourced from open pit and completion of grade streaming activities while moving into a waste stripping phase at Tropicana during 2020. Steady production performance was achieved by Sunrise Dam. The decrease in gold ounces sold resulted in a decrease in gold income of $75 million. By-product revenue of $3 million in 2020 remained unchanged from $3 million in 2019.


Revenue from product sales from the Americas operations decreasedincreased by $90$229 million, or seven21 percent, from $1,239$1,081 million in 20172019 to $1,149$1,310 million in 2018.2020 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 $211 million, or 21 percent, from $1,000 million in 2019 to $1,211 million in 2020. The decreaseincrease was due topartly offset by a decrease of 72,00036,000 ounces in gold sold in 2018,2020, which resulted in a decrease in gold income of $91$50 million. Gold production primarily decreased 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 the 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 development and infrastructure constraints, coupled with lower grades. The increase in the gold price received resulted in an increase in gold income of $8 million.revenue from silver.


Cost of sales


Cost of sales decreasedincreased from $2,607$2,626 million in 20172019 to $2,584$2,699 million in 2018,2020, which represents a $23$73 million, or onethree percent, decrease.increase. The decreaseincrease was primarily due to a $132an increase in cash operating costs by $50 million, or 19three 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 total amortisation from $690environmental rehabilitation and other non-cash costs by $21 million, or 40 percent, to $32 million in 2017 to $5582020 from $53 million in 2018.2019. The increase in cash operating costs was mainly 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.


In Continental Africa, cost of sales increased from $1,072$1,173 million in 20172019 to $1,127$1,232 million in 2018,2020, which represents a $55$59 million, or five percent, increase. The increase was mainly due to an increase in contractorlabour and contractors’ costs, labour costs, fuel and power costs, service related costs,consumable stores, royalties rehabilitationpaid, amortisation, services and other non-cashcharges, partly offset by lower fuel costs and inventory change. The increase was partially offset by a decrease in amortisation of tangible assets.ore stockpile adjustments.


In Australia, cost of sales increased from $551$632 million in 20172019 to $622$705 million in 2018,2020, which represents a $71$73 million, or 1312 percent, increase. The increase was mainly due to an increase in contractorlabour and contractors’ costs, service relatedconsumable stores, royalties paid, services and other charges, and ore stockpile adjustments, partly offset by lower fuel costs, and amortisation of tangible assets. The increase was partially offset byand the weakening of the Australian dollar against the US dollar.


In the Americas, cost of sales decreased from $987$822 million in 20172019 to $838$764 million in 2018,2020, which represents a $149$58 million, or 15seven percent, decrease. The decrease was mainly due to the weakening of the local currencies against the ArgentinianUS dollar, decrease in environmental rehabilitation and other non-cash costs and lower fuel costs. The Argentinean peso weakened by 7046 percent and the Brazilian real by 1531 percent, against the US dollar. The decrease in cost of sales was partly offset by an increase in contractors’ costs.


Total cash costs


Total cash costs increased from $1,881$1,981 million in 20172019 to $1,996$2,074 million in 2018,2020, which represents a $115$93 million, or sixfive percent, increase. The increase was primarily due to an increase in cash operating costs and an increase in royalties partially offset by weaker local currencies against the US dollar.paid. Total cash costs include cash operating costs (which include salaries and wages, stores, explosives, timber, reagents, logistics, fuel, power, water and contractors’ costs), royalties and other cash costs. The increase in total cash costs was partially offset by the weakening of local currencies against the US dollar and lower fuel and power costs.


Cash operating costs increased from $1,756by $50 million, or three percent, to $1,881 million in 2017 to $1,8502020 from $1,831 million in 2018, which represents a $94 million, or five percent, increase. The increase was2019, primarily due to inflationary increases, partiallythe higher labour and contractors’ costs, consumable stores, services and other charges, partly offset by weakerthe weakening of local currencies against the US dollar.dollar and lower fuel and power costs. Cash operating costs includes salaries and wages, stores, explosives, timber, reagents, logistics, fuel, power, water and contractors’ costs.





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Royalties, which are generally calculated as a percentage of revenue, increased from $111$137 million in 20172019 to $133$181 million in 2018,2020, which represents a $22$44 million, or 2032 percent, increase. The increase was primarily due to an increase in the spot gold prices and an increase in production at Geita.Geita, Siguiri and Obuasi (which are generally subject to higher royalty rates), partially offset by a decrease in production at Tropicana and Serra Grande (which are generally subject to lower royalty rates).


Retrenchment costs


Retrenchment costs included in cost of sales decreased from $6by $2 million, in 2017 toor 50 percent, from $4 million in 2018, which represents a2019 to $2 million or 33 percent, decrease. The decrease was mainly due to lower retrenchment costs in Brazil.2020.


Rehabilitation and other non-cash costs


RehabilitationEnvironmental rehabilitation and other non-cash costs increaseddecreased from $16$53 million in 20172019 to $17$32 million in 2018,2020, which represents a $1$21 million, increase.or a 40 percent, decrease. This increasedecrease as compared to 2019 was primarily due to the weakening of local currencies against the US dollar, a change in discount rates due to changes in global economic assumptions, and

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 design facilities andthe methodology following requestsused to calculate such estimates in response to comments from environmental regulatory authorities compared to 2017.authorities.


Amortisation of tangible, intangible and intangibleright of use assets


Amortisation of tangible, intangible and intangibleright of use assets expense decreased from $690$583 million in 20172019 to $558$570 million in 2018,2020, which represents a $132$13 million, or 19two percent, decrease.

Amortisation of tangible assets decreased by $132$17 million, or 19three percent, from $685$538 million in 20172019 to $553$521 million in 2018,2020, largely due to the depletion of open pit ore at Geita, lower production at Siguiri, 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 productionamortisation at Serra Grande and capital spend at Córrego do Sítio and Serra Grande.Geita. The decrease was partially offset by an increase in amortisation at Sunrise Dam and Tropicana in AustraliaIduapriem due to higher production.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 $3 million in 2019 to $2 million in 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 decreasedchange increased from $14$5 million in 20172019 to $9$21 million in 2018,2020, which represents a $16 million, or 320 percent increase, largely due to inventory movements at Cerro Vanguardia which drew down on stockpiles.

Impairment, derecognition of assets and profit (loss) on disposal

Impairment, derecognition of assets and profit (loss) on disposal decreased by $5 million or 36 percent, decrease.to a loss of $1 million in 2020, from a loss of $6 million in 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(expenses) income


Other expenses(expenses) income decreased from $150an expense of $83 million in 20172019 to $79an expense of $57 million in 2018,2020, which represents a $71$26 million, or 4731 percent, decrease. The decrease in expenses was mainlylargely due to the provision for the settlementcommissioning of the silicosis class action of $63 millionObuasi redevelopment project with no care and maintenance costs incurred during 2020, a public infrastructure contribution in Guinea during 2019 which was not repeated in 2018.2020 and the refund of an insurance claim in 2020, partly offset by power grid refunds in Brazil during 2019 which were not repeated in 2020 and increased export-duty receivables at Cerro Vanguardia.


Finance costs and unwinding of obligations


Finance costs decreased by $1$5 million, or onethree percent, to $140$138 million in 2018,2020, compared to $141$143 million in 2017.2019, mainly due to lower finance costs from borrowings. Unwinding of obligations of $28increased by $10 million, was recordedor 34 percent, to $39 million in 20182020 compared with $16$29 million in 2017.2019, 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 $100$110 million, or 65 percent, to a profit of $122$278 million in 2018,2020, compared to a profit of $22$168 million in 2017,2019, mainly as a result of an increase in equity earnings after taxation of $86$95 million (mainly at Kibali)Kibali and an increase



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$7 million at Rand Refinery (Pty) Limited. On 10 November 2020, AngloGold Ashanti together with its joint venture partner Barrick completed the sale of the Morila gold mine in net impairment reversalsMali 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 $15$1,581 million in 20172019 to $29$1,651 million in 2018.2020, 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 $212$625 million was recorded in 2018,2020, compared to ana taxation expense of $163$250 million in 2017,2019, which represents a $49$375 million, or 30150 percent, increase. Charges for current tax in 20182020 amounted to $242$562 million, compared to $176$298 million in 2017,2019, which represents a $66$264 million, or 3889 percent, increase. The increase in current tax iswas mainly due to higher earnings in Australia, Ghana, Tanzania and Argentina in 2018 compared to credits received for changes to tax legislation enacted in North America during December 2017.Argentina. Charges for deferred tax in 20182020 amounted to a net deferred tax benefitexpense of $30$63 million, compared to a net deferred tax benefit of $13$48 million in 2017 ,2019, which represents a $17$111 million, or 131231 percent, increase. The increase in the deferred taxation benefitexpense mainly relates to lower withholdingthe derecognition of deferred tax assets in Tanzania and a taxation holiday agreement from 2018 in Guinea.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 $83 million was recorded in 2018, compared to a loss of $336$376 million in 2017,2019, which represents a $253$383 million decrease.increase. 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 have beenwere accounted for as discontinued operations. Refer to “Item 18: Financial Statements-Note 9-Discontinued operations for the years ended and assetsas at 31 December 2020 and liabilities held for sale” for further details.31 December 2019.


Comparison of capital expenditure in 2019, 20182021, 2020 and 20172019


The following table presents capital expenditure data from continuing operations for the AngloGold Ashanti group for the three-year period ended 31 December 2019:2021:
Capital expenditure data for AngloGold AshantiYear ended 31 December
(in $ millions)202120202019
Capital expenditure1,100 757 754 
- Consolidated entities1,028 701 703 
- Equity-accounted joint ventures72 56 51 
Capital expenditure data for AngloGold Ashanti Year ended 31 December
(in $ millions) 2019
 2018
 2017
Capital expenditure 754
 645
 798
- Consolidated entities 703
 576
 675
- Equity accounted joint ventures 51
 69
 123


Total capital expenditure was $1,100 million in 2021, compared to $757 million in 2020. This represents a $343 million increase from 2020. This increase was due to increased expenditure on sustaining capital ($281 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 increased 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 $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 stay-in-business capital mainly related to Mineral Reserve development expenditure. At Sunrise Dam in Australia, capital 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 Golden Delicious open pit growth



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project. Capital expenditure at Tropicana in Australia, 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 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 at AGA Mineração in Brazil increased by $92 million from $103 million in 2020 to $195 million in 2021, mainly due to higher mine development costs and higher expenditure on TSFs. Capital expenditure at Serra Grande in Brazil increased by $49 million from $33 million in 2020 to $82 million in 2021, mainly due to higher mine development and TSF 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 higher capitalisation of land for the growth 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 higher feasibility study costs of the growth project. At the Corporate Office in Johannesburg, capital expenditure increased by $9 million from $2 million in 2020 to $11 million in 2021, mainly due to expenditure on new furniture and computer equipment in connection with the relocation of the Corporate Office to a new building. During 2021, there was no capital expenditure at La Colosa in Colombia or in Nevada, USA. At the Kibali gold mine in the DRC, capital expenditure increased by $20 million from $52 million in 2020 to $72 million in 2021, mainly due to higher deferred stripping and non-sustaining project capital expenditure.

Total capital expenditure was $757 million in 2020, compared to $754 million in 2019, compared to $645 million in 2018.2019. This represents a $109$3 million or 17 percent, increase from 2018.2019. This increase iswas due to increased expenditure on sustaining capital ($9 million), which was partly offset by reduced non-sustaining project capital expenditure on growth related projects ($166 million) partially offset by decreased expenditure on existing operations ($386 million). Capital expenditure increased at Iduapriem in Ghana by $198$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 significantthe commissioning of Phase 1 of the redevelopment project ramp up in 2019 compared to 2018 inon 1 October 2020, capitalisation of pre-production gold revenue against the areasproject and delays as a result of mining fleet acquisition and underground mining development related costs, processing plant refurbishment and upgrade, surface and underground infrastructure, project team

and owner cost and pre-production capital.COVID-19. Capital expenditure increased by $30 million at Tropicana, in Australia, due to pre-stripping expenditure at Tropicana's Boston Shaker 4 due to a shift in mining activity. Capital expenditure increased by $29 million at Quebradona, in Colombia, due to feasibility study costs of the project. Capital expenditure increased by $16 million at Geita, in Tanzania, due to an increase in ore reserve development capital, underground infrastructure development, and higher other sustaining capital as underground activities ramp up. The increase in capital expenditure was partially offset by decreased expenditure at Siguiri in Guinea by $74$9 million from $21 million in 2019 to $30 million in 2020 to resolve the recovery and throughput challenges of the newly commissioned plant. Capital expenditure increased at Geita in Tanzania by $12 million from $75 million in 2019 to $87 million in 2020, mainly due to the completionincreased Mineral Reserve development expenditure due to more underground activities and commissioning of the CIL combination plantmore exploration work done in early 2019.2020. Capital expenditure decreasedincreased at Sunrise Dam in Australia by $36$10 million from $43 million in 2019 to $53 million in 2020, mainly due to decreased ore reserveincreased Mineral Reserve development expenditure in new mining areas, asset integrity and sustaining capital due tostart of the completion of large projects.Golden Delicious open pit growth project. Capital expenditure decreased by $17 million at Iduapriem,Tropicana in Ghana, by $27Australia from $106 million in 2019 to $89 million in 2020, mainly due to lower pre-stripping costs partiallydeferred stripping, partly offset by stay in business capital. Capital expenditure decreased at Kibali, in the DRC, by $13 million due to the completion ofhigher pre-stripping capital projects in 2018.

Total capital expenditure was $645 million in 2018, compared to $798 million in 2017. This represents a $153 million, or 19 percent, decrease from 2017. This decrease is due to decreased capital expenditure on existing operations ($138 million) partially offset by increased expenditure on growth related projects ($38 million). Capital expenditure decreased at Geita, in Tanzania, by $96 million due to lower ore reserve development capital, lessand higher expenditure on the new power plant in 2018 and less deferred stripping expenditure in 2018.Boston Shaker growth project. 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 decreasedincreased at AGA Mineração in Brazil by $12 million from $91 million in 2019 to $103 million in 2020, mainly due to the impact of the weaker exchange rate of the Brazilian real against the US dollar, review of theincreased 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 strategy with reduction in investments, optimising cash flow, less spend on assets to maintain operations, less mine development and stripping.capital. Capital expenditure decreased at Cerro Vanguardia in Argentina by $20$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 impact of a 70 percent weaker exchange rategrowth 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 Argentinian peso againstgrowth project. Capital expenditure increased by $2 million at the US dollar and lower development costsCorporate Office in Johannesburg from nil in 2019 to $2 million in 2020 mainly due to reduction of workforce. Capital expenditure decreased at Tropicana, in Australia, by $15 million due to decreased deferred wasteon furniture and pre-stripping 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, due to lack of spending in 2017 asfittings. During 2020, there was no budget.capital expenditure at La Colosa in Colombia or in Nevada, USA. Capital expenditure increased at Siguiri,the Kibali gold mine in Guinea,the DRC by $14$1 million from $51 million to $52 million in 2019 to $52 million in 2020, mainly due to additional expenditure on the CIL combination plant project.increased Mineral Reserve development.




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Comparison of operating performance on a segment basis for 2019, 20182021, 2020 and 20172019


The company produces gold as its primary product and does not have distinct divisional segments in terms of principal business activity, but manages its business on the basis of different geographic segments. Therefore, information regarding separate geographic segments is provided.


Gold income
(in millions)Year ended 31 December
202120202019
$percent$percent$percent
Geographical analysis of gold income by origin is as follows:
Africa2,644 68 2,769 58 2,203 55 
Australia890 23 989 21 851 21 
Americas1,028 26 1,211 26 1,000 25 
4,562 4,969 4,054 
Less : Associates and equity-accounted joint ventures included above(659)(17)(647)(14)(615)(15)
Continuing operations3,903 4,322 3,439 
Discontinued operations— — 408 9 554 14 
3,903 100 4,730 100 3,993 100 

(in millions)Year ended 31 December
 2019 2018 2017
 $
 percent
 $
 percent
 $
 percent
Geographical analysis of gold income by origin is as follows:           
Continental Africa2,203
 55
 1,983
 52
 1,895
 44
Australia851
 21
 780
 20
 709
 16
Americas1,000
 25
 1,021
 27
 1,104
 25
 4,054
   3,784
   3,708
  
Less : Associates and equity accounted joint ventures included above(615) (15) (581) (15) (453) (10)
Continuing operations3,439
   3,203
   3,255
  
Discontinued operations554
 14
 602
 16
 1,101
 25
 3,993
 100
 3,805
 100
 4,356
 100
Assets
(in millions)Year ended 31 December
202120202019
$percent$percent$percent
Geographical analysis of assets by origin is as follows:
South Africa— — — — 697 10 
Africa4,193 53 3,956 51 3,514 51 
Australia1,034 13 1,044 14 972 14 
Americas1,886 24 1,626 21 1,427 21 
Other, including non-gold producing subsidiaries854 10 1,046 14 253 4 
Total assets7,967 100 7,672 100 6,863 100 

Assets

(in millions)Year ended 31 December
 2019 2018 2017
 $
 percent $
 percent $
 percent
Geographical analysis of assets by origin is as follows:           
South Africa697
 10 1,106
 17 1,734
 24
Continental Africa3,514
 51 3,135
 47 3,153
 44
Australia972
 14 888
 13 929
 13
Americas1,427
 21 1,286
 19 1,258
 17
Other, including non-gold producing subsidiaries253
 4 228
 4 145
 2
Total assets6,863
 100 6,643
 100 7,219
 100


At 31 December 2019, ten percent2021 and 31 December 2020, none of AngloGold Ashanti’s totalproducing assets were located in South Africa, compared with 17ten percent at the end of 2018.2019, 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 90100 percent of AngloGold Ashanti’s total assets at 31 December 20192021 compared to 8390 percent at the end of the same period in 2017.2019.

At 31 December 2018, 17 percent of AngloGold Ashanti’s total assets were located in South Africa compared with 24 percent at the end of 2017. The remaining operations collectively accounted for approximately 83 percent of AngloGold Ashanti’s total assets at 31 December 2018 compared to 76 percent at the end of the same period in 2017.


Non-GAAP analysis


All-in sustaining costs and all-in costs


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 costs net of by-product revenue” metric and incorporates all costs related to sustaining production and in particular, recognises 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 this cost metric by the ounces of gold sold. “All-in costs” 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



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existing operations, which are expected to increase production. “All-in costs per ounce” is arrived at by dividing the dollar value of this cost metric by the ounces of gold sold.


Total cash costs net 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 is a non-GAAP 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"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 right of use assets, rehabilitation costs and other non-cash costs, retrenchment costs, corporate administration, marketing and otherrelated costs, capital costs and exploration costs. “Total cash costs per ounce” 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-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” 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 sustaining costs” and “all-in costs” and the Gold Institute has provided definitions for the calculation of “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 sustaining costs”, “all-in costs” and “total cash costs net of by-product revenue” in total by mine and per ounce by mine as well as “average gold price received per ounce”, are useful indicators to investors and management as they provide:


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


Reconciliations


A reconciliation of gold income as included in the company’s audited financial statements to “average gold price received per ounce” for each of the three years in the period ended 31 December 2021 is presented on a total basis in the table below.
Average gold price received per ounce for AngloGold AshantiYear ended 31 December
202120202019
Gold income (million US dollars)3,903 4,322 3,439 
Adjusted for non-controlling interests (million US dollars)(103)(95)(77)
3,800 4,227 3,362 
Associates and joint ventures’ share of gold income including realised non-hedge derivatives (million US dollars)659 647 615 
Attributable gold income (million US dollars)4,459 4,874 3,977 
Attributable gold sold excluding pre-production ounces - oz (000)2,483 2,741 2,852 
Average gold price received per ounce ($/oz)1,796 1,778 1,394 

A reconciliation of both cost of sales and total cash costs as included in the company’s audited financial statements to “all-in sustaining costs”, “all-in sustaining costs per ounce”, "all-in costs"“all-in costs”, "all-in“all-in costs per ounce"ounce”, “total cash costs net of by-product revenue” and "total“total cash costs per ounce"ounce” for each of the three years in the period ended 31 December 20192021 is presented on a



201

total and segment basis in the tables below. In addition, the company has provided detail of the attributable ounces of gold produced and sold by mine for each of those 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 2019:2021:


Operating data for AngloGold Ashanti operations - TotalYear ended 31 December
(continuing operations)
202120202019
Cost of sales (million US dollars) - Subsidiaries2,857 2,699 2,626 
Cost of sales (million US dollars) - Joint Ventures350 340 428 
All-in sustaining costs per ounce ($/oz) - Subsidiaries(1)
1,441 1,072 1,017 
All-in sustaining costs per ounce ($/oz) - Joint Ventures(1)
856 810 767 
All-in costs per ounce ($/oz) - Subsidiaries(1)
1,695 1,240 1,218 
All-in costs per ounce ($/oz) - Joint Ventures(1)
900 824 785 
Total cash costs per ounce ($/oz) - Subsidiaries(1)
1,017 815 763 
Total cash costs per ounce ($/oz) - Joint Ventures(1)
647 629 657 
Operating data for AngloGold Ashanti operations - TotalYear ended 31 December
(continuing operations)

2019
 2018
 2017
  Cost of sales (million US dollars) - Subsidiaries2,626
 2,584
 2,607
  Cost of sales (million US dollars) - Joint Ventures428
 480
 441
All-in sustaining costs per ounce ($/oz) - Subsidiaries(1)
1,017
 970
 975
All-in sustaining costs per ounce ($/oz) - Joint Ventures(1)
767
 820
 1,087
All-in costs per ounce ($/oz) - Subsidiaries(1)
1,218
 1,075
 1,062
All-in costs per ounce ($/oz) - Joint Ventures(1)
785
 846
 1,186
Total cash costs per ounce ($/oz) - Subsidiaries(1)
763
 743
 683
Total cash costs per ounce ($/oz) - Joint Ventures(1)
657
 680
 819

(1)
“All-in sustaining costs per ounce $/oz”, "all-in costs per ounce $/oz” and “total cash costs per ounce $/oz" are non-GAAP measures. For a detailed reconciliation of "all-in sustaining costs per ounce", "all-in costs per ounce" and "total cash costs per ounce" for the company’s total operations for each of the three years in the period ended 31 December 2019, refer to the relevant “AngloGold Ashanti operations - Total” tables below.

(1)“All-in sustaining costs per ounce”, “all-in costs per ounce” and “total cash costs per ounce” are non-GAAP measures. For a detailed reconciliation of “all-in sustaining costs per ounce”, “all-in costs per ounce” and “total cash costs 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 operating performance on a segment basis in 20192021 with 20182020


Cost of sales


In Continental Africa - Subsidiaries, cost of sales increased by $46$68 million, or foursix percent, to $1,173$1,300 million in 20192021 from $1,127$1,232 million in 2018.2020. The increase was mainly due to increasesan increase in total amortisation, inventory change,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 transportation, warehousing and inventory prices. 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. Higher cost of sales was also due to additional volumes of ore mined at Siguiri resulting in higher operating costs. The increase was partly offset by lower amortisation of waste stripping and lower royalties paid due to lower ounces of gold sold in 2021 as compared to 2020. The increase was mainly due to an increase in cost of sales at Obuasi and Siguiri, partly offset by a decrease in cost of sales at Iduapriem and Geita. In Guinea, at Siguiri, cost of sales increased by $33 million, or nine percent, to $410 million in 2021 from $377 million in 2020. 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 sill 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. Since the voluntary suspension of underground mining activities, care and maintenance costs of $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 $41$54 million, or seven10 percent, to $571$488 million in 20192021 from $612$542 million in 2018.2020. 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 $55$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



202

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 five 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 cost of sales was partly offset by higher year-on-year salary increases, additional costs relating to COVID-19 tests and other related medical costs in line with protocols 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

In Africa - Subsidiaries, all-in sustaining costs increased by $289 per ounce, or 30 percent, to $1,264 per ounce in 2021 from $975 per ounce in 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 stay-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



203

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 Africa - Joint Ventures, all-in sustaining costs increased by $46 per ounce, or six percent, to $856 per ounce in 2021 from $810 per ounce in 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 mainly due to higher expenditure on 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 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 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 Australia, all-in sustaining costs increased by $275 per ounce, or 22 percent, to $1,500 per ounce in 2021 from $1,225 per ounce in 2020. This increase was mainly due to an increase in cost 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 adverse impact on open pit and underground material movement.

All-in costs per ounce

In Africa - Subsidiaries, all-in costs increased by $367 per ounce, or 32 percent, to $1,516 per ounce in 2021 from $1,149 per ounce in 2020. This increase 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 underground 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 of gold sold in Africa - Subsidiaries during 2021, see “Item 5A:



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Operating Results—Comparison of operating performance on a segment basis in 2021 with 2020—All-in sustaining costs per ounce”.

In Africa - Joint Ventures, all-in costs increased by $76 per ounce, or nine percent, to $900 per ounce in 2021 from $824 per ounce in 2020. This increase was mainly due to an increase in all-in sustaining costs and higher non-sustaining project capital expenditure at Kibali. For a discussion of the increase in ounces of gold 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 the Americas, all-in costs increased by $679 per ounce, or 58 percent, to $1,858 per ounce in 2021 from $1,179 per ounce in 2020. This increase was mainly due to an increase in all-in sustaining costs and an increase in non-sustaining exploration and study cost expenditure at the Colombian and Nevada 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 increased by $369 per ounce, or 27 percent, to $1,725 per ounce in 2021 from $1,356 per ounce in 2020. This increase was mainly due to an increase in all-in sustaining costs, higher 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 discussion of the decrease in ounces of gold sold in Australia 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”.

Total cash costs per ounce

The currencies of Argentina 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 2021 as compared to 2020.

In Africa - Subsidiaries, total cash costs per ounce increased by $194 per ounce, or 24 percent, to $288$991 per ounce in 2021 from $797 per ounce in 2020. The increase was mainly due to a 89,000 ounce decrease in production (excluding pre-production ounces) and an increase in total cash costs.

In Tanzania, at Geita, total cash costs per ounce increased by $181 per ounce, or 28 percent, to $822 per ounce in 2021 from $641 per ounce in 2020. Total cash costs per ounce increased year-on-year mainly due to lower grades, together with the depletion of ore stockpiles in 2021 compared to an increase in ore stockpiles during 2020. This increase was partly offset by lower royalties paid and improved efficiencies in that more open pit tonnes were mined in 2021 at a lower rate per tonne than in 2020.

In Ghana, at Iduapriem, total cash costs per ounce increased by $350 per ounce, or 48 percent, to $1,081 per ounce in 2021 from $731 per ounce in 2020. Total cash costs per ounce increased year-on-year mainly due to lower production and ore stockpile movements. This increase was partly offset by a significant amount of waste stripping capitalised at Teberebie Cut 2 in 2021 compared to 2020, together with a decrease in royalties paid due to lower volumes sold.

At Obuasi, total cash costs per ounce decreased by $33 per ounce, or three percent, to $1,112 per ounce in 2021 from $1,145 per ounce in 2020. Total cash costs per ounce decreased mainly due to an increase in ounces gold produced.

In Guinea, at Siguiri, total cash costs per ounce decreased by $93 per ounce, or seven percent, to $1,200 per ounce in 2021 from $1,293 per ounce in 2020. Total cash costs per ounce decreased year-on-year mainly as a result of higher production, partially offset by higher operating costs, increases on fuel and reagent costs, and higher royalties paid from additional volumes sold in 2021.

In Africa - Joint Ventures, total cash costs per ounce increased by $18 per ounce, or three percent, to $647 per ounce in 2021 from $629 per ounce in 2020. The increase was mainly due to an increase in total cash costs, partly offset by a 1,000 ounce increase in production.Total cash costs per ounce increased year-on-year mainly as a result of lower open-pit recovered grades, unfavourable movements in stockpiles, higher royalties paid due to an increase in the average gold price received, and additional reagent consumption, as compared to 2020. The Kibali mine in the DRC was the only operating asset in Africa - Joint Ventures in 2021.

In the Americas, total cash costs per ounce increased by $200 per ounce, or 28 percent, to $921 per ounce in 2021 from $721 per ounce in 2020. The increase was mainly due to a 90,000 ounce decrease in production and an increase in total cash costs.

In Brazil, at AGA Mineração, total cash costs per ounce increased by $111 per ounce, or 15 percent, to $858 per ounce in 2021 from $747 per ounce in 2020. Total cash costs per ounce increased year-on-year mainly due to lower production and



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higher commodity prices (oil, iron ore and construction materials) and higher costs of services and labour. This increase was partially offset by higher sulphuric acid by-product revenue and lower royalties paid due to lower volumes sold.

At Serra Grande, total cash costs per ounce increased by $527 per ounce, or 79 percent, to $1,192 per ounce in 2021 from $665 per ounce in 2020. Total cash costs per ounce increased year-on-year mainly due to lower production, higher commodity prices (oil, iron ore and construction materials) and higher cost of services and labour as well as inefficiencies primarily caused by higher absenteeism due to COVID-19 and various production challenges encountered during 2021.

In Argentina, at Cerro Vanguardia, total cash costs per ounce increased by $195 per ounce, or 28 percent, to $894 per ounce in 2021 from $699 per ounce in 2020. Total cash costs per ounce increased year-on-year mainly due to salary increases, additional costs relating to COVID-19 tests and other related medical costs in line with protocols, higher commodity prices and higher materials consumption (such as fuel, explosives and spare parts) as a result of higher tonnes mined. The increase was partially offset by the weakening of the Argentinean peso against the US dollar and higher by-product revenue derived from higher ounces of silver sold.

In Australia, total cash costs per ounce increased by $228 per ounce, or 24 percent, to $1,196 per ounce in 2021 from $968 per ounce in 2020, primarily due to a 60,000 ounce decrease in production and an increase in total cash costs.

At Sunrise Dam, total cash costs per ounce increased by $252 per ounce, or 24 percent, to $1,321 per ounce in 2021 from $1,069 per ounce in 2020. Total cash costs per ounce increased year-on-year primarily due to lower production and higher mining costs (mainly higher cost of labour due to critical skill shortages), partially offset by lower royalties paid.

At Tropicana, total cash costs per ounce increased by $180 per ounce, or 22 percent, to $987 per ounce in 2021 compared to $807 per ounce in 2020. Total cash costs per ounce increased year-on-year mainly due to lower grades, inventory movements and the impact of higher underground and open pit mining costs.

Overall the subsidiaries’ total cash costs per ounce increased by $202, or 25 percent, to $1,017 per ounce in 2021 compared to $815 per ounce in 2020. The increase was mainly due to an increase in total cash costs and a 238,000-ounce decrease in production.

Comparison of operating performance on a segment basis in 2020 with 2019

Cost of sales

In Africa - Subsidiaries, cost of sales increased by $59 million, or five percent, to $1,232 million in 20192020 from $233$1,173 million in 2018.2019. 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 tenfive percent, to $315$542 million in 2019 from $286$571 million in 2018.2019. 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 Continental Africa - Joint Ventures, cost of sales decreased by $52$88 million, or 1121 percent, to $340 million in 2020 from $428 million in 2019 from $480 million in 2018.2019. The decrease was mainly due to favourable inventory movements, lower amortisationthe Sadiola and lower fuel expense. In Mali, at Morila operations reaching the end of their operating lives and the incurrence of $90 million cost of sales decreased by $6 million, or 14 percent,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 $36 millionFirefinch Limited. On 30 December 2020, AngloGold Ashanti together with its joint venture partner IAMGOLD completed the sale of the Sadiola gold mine in 2019 from $42 million in 2018. At Sadiola, cost of sales decreased by $11 million, or 17 percent,Mali to $54 million in 2019 from $65 million in 2018.Allied Gold. In the DRC, at Kibali, cost of sales decreasedincreased by $35$2 million, or nine0.5 percent, to $340 million in 2020 from $338 million in 2019 from $373 million in 2018.2019.


In the Americas, cost of sales decreased by $16$58 million, or twoseven percent, to $764 million in 2020 from $822 million in 2019 from $838 million in 2018.2019. The decrease was mainly due to the weakening of the local currencies against the ArgentinianUS 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 7246 percent and the Brazilian real weakened by eight31 percent, against the US dollar. In Brazil, at AngloGold Ashanti Córrego do SítioAGA Mineração, cost of sales increaseddecreased by $35$26 million, or ninesix percent, to $391 million in 2020 from $417 million in 2019 from $382 million in 2018.2019. At Serra Grande, cost of sales increaseddecreased by $1$28 million, or one22 percent, to $102 million in 2020 from $130 million in 2019 from $129 million in 2018.2019. In Argentina, at Cerro Vanguardia, cost of sales decreased by $51$5 million, or 16two percent, to $269 million in 2020 from $274 million in 2019 from $3252019. In the Americas other segment, cost of sales increased by $1 million, or 100 percent, to $2 million in 2018.2020 from $1 million in 2019.


In Australia, cost of sales increased by $10$73 million, or two12 percent, to $705 million in 2020 from $632 million in 2019 from $622 million in 2018.2019. The increase was mainly due to an increase in amortisationlabour and inventory change. The increase was partiallycontractors’ costs, consumable stores, royalties paid, COVID-19 pandemic related expenditure, services and other charges, and ore stockpile adjustments, partly offset by a decrease in service-relatedlower fuel costs, amortisation and the weakening of the Australian dollar against the US dollar. At Sunrise Dam, cost of sales increased by $8



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$24 million, or threeeight percent, to $342 million in 2020 from $318 million in 2019 from $310 million in 2018.2019. At Tropicana, cost of sales increased by $4$41 million, or one14 percent, to $338 million in 2020 from $297 million in 2019 from $293 million in 2018.2019.


Overall the subsidiaries’ cost of sales increased from $2,584 million in 2018 to $2,626 million in 2019 to $2,699 million in 2020, which represents a $42$73 million, or twothree percent increase. The increase was primarily due to a $36 millionan 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 as a result ofby $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 inflation rates and discount rates.rates compared to 2019.


All-in sustaining costs per ounce


In Continental Africa - Subsidiaries, all-in sustaining costs increased by $6$28 per ounce, or onethree percent, to $975 per ounce in 2020 from $947 per ounce in 2019 from $941 per ounce in 2018.2019. This increase was mainly due to an increase in cost of sales at Geita.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 partiallypartly offset by lower cost of sales at Geita driven by a build-up of ore stockpiles and lower mining costs, boosted by the decreased spendingmove 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 sustaining2020. The higher cost of sales and capital expenditure at Iduapriem andwas partly offset by an increase of 30,000 ounces 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 Continental Africa - Joint Ventures, all-in sustaining costs decreasedincreased by $53$43 per ounce, or six percent, to $810 per ounce in 2020 from $767 per ounce in 2019 from $820 per ounce in 2018.2019. This decreaseincrease was mainly due to a decreasean increase in cost of sales, lower amortisation and a decreasean increase in sustaining capital expenditure at Kibali. This decrease was partially offset byKibali as well as a decrease in total amortisation and a decrease of 17,000gold 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 sold.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 increaseddecreased by $177$29 per ounce, or 21three percent, to $1,003 per ounce in 2020 from $1,032 per ounce in 2019 from $855 per ounce in 2018.2019. This increasedecrease was mainly due to athe weakening of the local currencies against the US dollar, decrease of 83,000in 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 (excluding pre-production ounces) and a decrease of total amortisation at Cerro Vanguardia and Serra Grande. The increase was partially offset by a decrease in cost of sales and an overall decrease of spending in sustaining capital expenditure.


In Australia, all-in sustaining costs decreasedincreased by $48$235 per ounce, or five24 percent, to $1,225 per ounce in 2020 from $990 per ounce in 2019 from $1,038 per ounce in 2018.2019. This decreaseincrease was mainly due to an increase in total amortisationcost of sales at Sunrise Dam and Tropicana, and a decrease in spending inpartly offset by lower sustaining capital expenditure at Sunrise Dam and Tropicana. TheGold 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 partiallymainly 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 costall-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 sales.the redevelopment project at Obuasi.

All-in costs per ounce


In Continental Africa - Subsidiaries,Joint Ventures, all-in costs increased by $138$39 per ounce, or 13five percent, to $1,237$824 per ounce in 20192020 from $1,099$785 per ounce in 2018.2019. This increase was mainly due to an increase in all-in sustaining costs and an increase in non-sustaining project capital expenditure at Obuasi partially offset by the 30,000-ounce increasea decrease in gold sold (excluding pre-production ounces).of 77,000 ounces, or 17 percent, from 442,000 ounces in 2019 to 365,000 ounces in 2020.


In Continental Africa - Joint Ventures,the Americas, all-in costs decreased by $61$4 per ounce or seven percent, to $785$1,179 per ounce in 20192020 from $846$1,183 per ounce in 2018.2019. This decrease was mainly due to a decrease in all-in sustaining costs a 17,000-ounce increase in gold sold and a decrease in major project spendingcorporate and social responsibility costs



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not related to current operations, partly offset by an increase in non-sustaining capital expenditure at Kibali.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 the Americas,Australia, all-in costs increased by $251$284 per ounce, or 2726 percent, to $1,183$1,356 per ounce in 20192020 from $932$1,072 per ounce in 2018.2019. This increase was mainly due to an increase in all-in sustaining costs an increase inand non-sustaining exploration and study costs and the 83,000-ounce decreaserelating to growth deposits at Sunrise Dam. Gold sold decreased by 57,000 ounces, in gold sold (excluding pre-production ounces).

In Australia, all-in costs increased by $2 per ounce2020, as compared to $1,072 per ounce in 2019, from $1,070 per ounce in 2018 mainly due to an increase in major project spendinglower gold sales at Tropicana, an increase in non-sustaining exploration and study costs at Sunrise Dam and Tropicana and a 1,000-ounce decrease in gold sold. The increase was partially offset by a decrease in all-in sustaining costs.Tropicana.


Total cash costs per ounce


The currencies of Argentina, Australia and Brazil were, on average, weaker against the US dollar during 20192020 as compared to 20182019, which positively impacted total cash costs per ounce for 2019.2020.


In Continental Africa - Subsidiaries, total cash costs per ounce decreased by $12,$4, or one0.5 percent, to $797 per ounce in 2020 from $801 per ounce in 2019 from $813 per ounce in 2018.2019. The decrease was mainly due to a 31,000-ounce52,000-ounce increase in production (excluding pre-production ounces). The decrease was partially offset by an increase in total cash costs.


In Tanzania, at Geita, total cash costs per ounce decreased by $109,$54, or 14eight percent, to $641 per ounce in 2020 from $695 per ounce in 2019 from $804 per ounce in 2018.2019. The decrease was mainly due to thea decrease in total cash costs and a 40,000-ounce19,000 ounce increase in production (excluding pre-production ounces).production.


In Ghana, at Iduapriem, total cash costs per ounce increaseddecreased by $11,$84, or oneten percent, to $731 per ounce in 2020, compared to $815 per ounce in 2019 compared to $804 per ounce in 2018 mainly due to an increasea decrease in total cash costs. The increasecosts, while production during 2020 remained consistent with the prior year’s production at 275,000 ounces. At Obuasi, the Obuasi redevelopment project was partially offset by a 21,000-ounce increase incommissioned 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 $247,$202, or 2919 percent, to $1,293 per ounce in 2020 from $1,091 per ounce in 2019 from $844 per ounce in 2018 mainly due to a 29,000-ounce decrease in production and an increase in total cash costs.costs, partly offset by a 2,000-ounce increase in production.


In Continental Africa - Joint Ventures, total cash costs per ounce decreased by $23,$28, or threefour percent, to $629 per ounce in 2020 from $657 per ounce in 2019 from $680 per ounce in 2018.2019. The decrease was mainly due to a decrease in total cash costs. The decrease was partially offset by a 7,000-ounce81,000-ounce decrease in production.


In Mali, atduring 2020, the Sadiola and Morila total cash costs per ounce increased by $60, or five percent,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 Mali to $1,205 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 2019 from $1,145 per ounce in 2018. The increase was mainly dueMali to a 3,000-ounce decrease in production. The increase was partially offset by a decrease in total cash costs. At Sadiola, total cash costs per ounce increased by $28, or three percent, from $938 per ounce in 2018 to $966 per ounce in 2019. The increase was mainly due to an 8,000-ounce decrease in production partially offset by a decrease in total cash costs.Allied Gold.


In the DRC, at Kibali, total cash costs per ounce decreasedincreased by $28,$57, or fiveten percent, to $629 per ounce in 2020 from $572 per ounce in 2019 from $600 per ounce in 2018. The decrease was mainly due to a 3,000-ounce increase in production and a decrease in total cash costs.

In the Americas, total cash costs per ounce increased by $112, or 18 percent, to $736 per ounce in 2019 from $624 per ounce in 2018. The increase was mainly due to a 66,000-ounce decrease in production and a decrease in by-product revenue. The increase was partially offset by a decrease in total cash costs.

In Brazil, at AngloGold Ashanti Córrego do Sítio Mineração, total cash costs per ounce increased by $59, or eight percent, to $782 per ounce in 2019 from $723 per ounce in 2018 primarily due to an increase in total cash costs and a 2,000-ounce decrease in production (excluding pre-production ounces). At Serra Grande, total cash costs per ounce increased by $47, or seven percent, to $707 per ounce in 2019 from $660 per ounce in 2018 primarily due to an increase in total cash costs and 7,000-ounce decrease in production (excluding pre-production ounces).

In Argentina, at Cerro Vanguardia, total cash costs per ounce increased by $197, or 41 percent, to $673 per ounce in 2019 from $476 per ounce in 2018 primarily due to a 57,000-ounce decrease in production and a decrease in by-product revenue. The increase was partially offset by a decrease in total cash costs.

In Australia, total cash costs per ounce decreased by $32, or four percent, to $730 per ounce in 2019 from $762 per ounce in 2018 primarily due to a 11,000-ounce decrease in production and an increase in total cash costs.

At Sunrise Dam, total cash costs per ounce increased by $94, or ten percent, to $1,014 per ounce in 2019 compared to $920 per ounce in 2018 mainly due to a 35,000 ounce decrease in production and an increase in total cash costs.

At Tropicana, total cash costs per ounce decreased by $90, or 15 percent, to $504 per ounce in 2019 compared to $594 per ounce in 2018 mainly due to a 24,000-ounce increase in production. The decrease was partially offset by an increase in total cash costs.

Overall the subsidiaries’ total cash costs per ounce increased by $20, or three percent, to $763 per ounce in 2019 compared to $743 per ounce in 2018.2019. The increase was mainly due to an increase in total cash costs and a 45,000-ounce2,000-ounce decrease in production.

Comparison of operating performance on a segment basis in 2018 with 2017

Cost of sales

In Continental Africa - Subsidiaries, cost of sales increased by $56 million, or five percent, to $1,127 million in 2018 from $1,071 million in 2017. The increase was mainly due to inflation increases on cash operating costs and higher royalty expense, partially offset by a decrease in amortisation costs. In Tanzania, at Geita, cost of sales increased by $92 million, or 18 percent, to $612 million in 2018 from $520 million in 2017. In Ghana, at Iduapriem, cost of sales increased by $23 million, or 11 percent, to $233 million in 2018 from $210 million in 2017. In Guinea, at Siguiri, cost of sales decreased by $58 million, or 17 percent, to $286 million in 2018 from $344 million in 2017.

In Continental Africa - Joint Ventures, cost of sales increased by $39 million, or nine percent, to $480 million in 2018 from $441 million in 2017. The increase was mainly due to higher levels of production and inflation increases on cash operating costs and higher royalty expense. In Mali, at Morila, cost of sales increased by $8 million, or 24 percent, to $42 million in 2018 from $34 million in 2017. At Sadiola, cost of sales decreased by $2 million, or three percent, to $65 million in 2018 from $67 million in 2017. In the DRC, at Kibali, cost of sales increased by $33 million, or ten percent, to $373 million in 2018 from $340 million in 2017.

In the Americas, cost of sales decreased by $149 million, or 15 percent, to $838 million in 2018 from $987 million in 2017. The decrease was mainly due to the weakening of the local currencies, the Argentinian peso by 70 percent and the Brazilian real by 15 percent, against the US dollar. In Brazil, at AngloGold Ashanti Córrego do Sítio Mineração, cost of sales decreased by $65 million, or 15 percent, to $382 million in 2018 from $447 million in 2017. At Serra Grande, cost of sales decreased by $24 million, or 16 percent, to $129 million in 2018 from $153 million in 2017. In Argentina, at Cerro Vanguardia, cost of sales decreased by $60 million, or 16 percent, to $325 million in 2018 from $385 million in 2017.

In Australia, cost of sales increased by $71 million, or 13 percent, to $622 million in 2018 from $551 million in 2017. The increase was mainly due to an increase in contractor costs, service related costs and amortisation of tangible assets. The increase was partially offset by the weakening of the Australian dollar against the US dollar. At Sunrise Dam, cost of sales increased by $50 million, or 19 percent, to $310 million in 2018 from $260 million in 2017. At Tropicana, cost of sales increased by $17 million, or six percent, to $293 million in 2018 from $276 million in 2017.

Overall the subsidiaries’ cost of sales decreased by $23 million, or one percent, to $2,584 million in 2018 from $2,607 million in 2017. The decrease was mainly due to lower amortisation expense partially offset by inflation increases on cash operating costs and higher royalty expense.

All-in sustaining costs per ounce

In Continental Africa - Subsidiaries, all-in sustaining costs increased by $32 per ounce, or four percent, to $941 per ounce in 2018 from $909 per ounce in 2017. This increase was mainly due to an increase in cost of sales, a decrease in amortisation of tangible and intangible assets at Geita and Siguiri and a 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 sustaining costs 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 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 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.

All-in costs per ounce

In Continental Africa - Subsidiaries, all-in costs 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 a 24,000-ounce increase in gold sold (excluding pre-production ounces).

In Continental Africa - Joint Ventures, all-in costs 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 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 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.

Total cash costs per ounce

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 per ounce for 2018.

In Continental Africa - Subsidiaries, total cash costs per ounce increased by $125, or 18 percent, to $813 per ounce in 2018 from $688 per ounce in 2017. The increase was mainly due to an increase in cost of sales and a 34,000-ounce decrease in production (excluding pre-production ounces).

In Tanzania, at Geita, total cash costs per ounce increased by $196, or 32 percent, to $804 per ounce in 2018 from $608 per ounce in 2017. The increase was mainly due an increase in cost of sales partially offset by a 25,000-ounce increase in production (excluding pre-production ounces).

In Ghana, at Iduapriem, total cash costs per ounce decreased by $19, or two percent, to $804 per ounce in 2018 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.

In Guinea, at Siguiri, total cash costs per ounce increased by $119, 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 per ounce decreased by $139, 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 per ounce increased by $171, or 18 percent, to $1,145 per ounce in 2018 from $974 per ounce in 2017. 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 per ounce increased by $38, 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 per ounce decreased by $184, 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 per ounce decreased by $14,$15, or two percent, to $624$721 per ounce in 20182020 from $638$736 per ounce in 2017.2019. The decrease was mainly due to a decrease in cost of sales. The decrease wassales and an increase in by-product revenue, partially offset by a 64,000-ounce61,000 ounce decrease in production (excluding pre-production ounces) and a decrease in amortisation of tangible assets.production.


In Brazil, at AngloGold Ashanti Córrego do SítioAGA Mineração, total cash costs per ounce increaseddecreased by $52,$35, or eightfour percent, to $723$747 per ounce in 20182020 from $671$782 per ounce in 20172019, primarily due to a decrease in amortisation of tangible assets. The increase was partially offset by a decrease in cost of sales and a 60,000-ounce increase intotal cash costs, while 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 per ounce decreased by $104,$42, or 14six percent, to $660$665 per ounce in 20182020 from $764$707 per ounce in 20172019, primarily due to a decrease in cost of sales. The decrease was partiallytotal cash costs, partly offset by a 3,000-ounce9,000-ounce decrease in production (excluding pre-production ounces).production.


In Argentina, at Cerro Vanguardia, total cash costs per ounce decreasedincreased by $46,$26, or ninefour percent, to $476$699 per ounce in 20182020 from $522$673 per ounce in 20172019, primarily due to a decrease in cost of sales. The decrease was partially offset by a 1,000-ounce52,000-ounce decrease in production, and a decreasepartly offset by an increase in amortisation of tangible assets.by-product revenue.


In Australia, total cash costs per ounce increased by $19,$238, or three33 percent, to $762$968 per ounce in 20182020 from $743$730 per ounce in 20172019, primarily due to an increase in cost of sales. The increase was partially offset bytotal cash costs and a 66,000-ounce increase60,000-ounce decrease in production.


At Sunrise Dam, total cash costs per ounce increased by $1,$55, or 0.1five percent, to $920$1,069 per ounce in 20182020 compared to $919$1,014 per ounce in 20172019, mainly due to an increase in cost of sales. The increase was partiallytotal cash costs, partly offset by a 51,000-ounce2,000 ounce increase in production.


At Tropicana, total cash costs per ounce increased by $30,$303, or five60 percent, to $594$807 per ounce in 20182020 compared to $564$504 per ounce in 20172019, mainly due to an increase in cost of sales. The increase was partially offset bytotal cash costs and a 14,000-ounce increase62,000 ounce decrease in production.





208

Overall the subsidiaries’ total cash costs per ounce increased by $60,$52, or nineseven percent, to $743$815 per ounce in 20182020 compared to $683$763 per ounce in 2017.2019. The increase was mainly due to an increase in total cash costs and a 32,000-ounce70,000-ounce decrease in production andproduction.

Reconciliations

The following tables present a decrease in total amortisation partially offset by a decrease inreconciliation of both cost of sales.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.






209

For the year ended 31 December 2021
Corporate and other
(in $ millions, except as otherwise noted)
Corporate (4)
All-in sustaining costs
Cost of sales per segmental information(5)
(5)
By-product revenue—
Realised other commodity contracts—
Amortisation of tangible, intangible and right of use assets(3)
Adjusted for decommissioning and inventory amortisation—
Corporate administration and marketing expenditure73
Lease payment sustaining3
Sustaining exploration and study costs—
Total sustaining capital expenditure11
All-in sustaining costs79
Adjusted for non-controlling interests and non-gold producing companies(1)
—
All-in sustaining costs adjusted for non-controlling interests and non-gold producing companies79
All-in sustaining costs79
Non-sustaining project capital expenditure—
Non-sustaining lease payments—
Non-sustaining exploration and study costs—
Care and maintenance—
Closure and social responsibility costs not related to current operations4
Other provisions1
All-in costs84
Adjusted for non-controlling interests and non-gold producing companies(1)
—
All-in costs adjusted for non-controlling interests and non-gold producing companies84
Gold sold - oz (000)(2)
—
All-in sustaining cost per unit - $/oz(3)
—
All-in cost per unit - $/oz(3)
—
(1)Adjusting for non-controlling interest of items included in calculation, to disclose the attributable portions only.
(2)Attributable portion (excluding pre-production ounces).
(3)In addition to the operational performances of the mines, “all-in sustaining cost per ounce”, “all-in cost per ounce” and “total cash costs per ounce” are affected by fluctuations in the currency exchange rate. AngloGold Ashanti reports “all-in sustaining cost per ounce” and “all-in cost per ounce” calculated to the nearest US dollar amount and gold sold in ounces. AngloGold Ashanti reports “total cash costs per ounce” calculated to the nearest US dollar amount and gold produced in ounces.
(4)Corporate includes non-gold producing subsidiaries.
(5)Refer to “Item 18: Financial Statements—Note 2—Segmental Information”.

Rounding of figures may result in computational discrepancies.




210

For the year ended 31 December 2021
Corporate and other
(in $ millions, except as otherwise noted)
Corporate(4)
Total cash costs
Cost of sales per segmental information(5)
(5)
By-product revenue—
Inventory change—
Amortisation of tangible assets(1)
Amortisation of right of use assets(1)
Amortisation of intangible assets(1)
Rehabilitation and other non-cash costs—
Retrenchment costs—
Total cash costs(8)
Adjusted for non-controlling interests(1)
—
Total cash costs adjusted for non-controlling interests(8)
Gold produced – oz (000)(2)
—
Total cash costs per unit – $/oz(3)
—
(1)Adjusting for non-controlling interest of items included in calculation, to disclose the attributable portions only.
(2)Attributable portion (excluding pre-production ounces).
(3)In addition to the operational performances of the mines, “all-in sustaining cost per ounce”, “all-in cost per ounce” and “total cash costs per ounce” are affected by fluctuations in the currency exchange rate. AngloGold Ashanti reports “all-in sustaining cost per ounce” and “all-in cost per ounce” calculated to the nearest US dollar amount and gold sold in ounces. AngloGold Ashanti reports “total cash costs per ounce” calculated to the nearest US dollar amount and gold produced in ounces.
(4)Corporate includes non-gold producing subsidiaries.
(5)Refer to “Item 18: Financial Statements—Note 2—Segmental Information”.

Rounding of figures may result in computational discrepancies.



211

For the year ended 31 December 2021
Operations in DRC, Ghana, Guinea, Mali and Tanzania
(in $ millions, except as otherwise noted)
DRCMaliJointGhanaGuineaTanzaniaAfrica otherSubsidiaries
KibaliMorilaSadiolaVenturesIduapriemObuasiSiguiriGeita
All-in sustaining costs
Cost of sales per segmental information(5)
350 — — 350 238 164 410 488 — 1,300 
By-product revenue(2)— — (2)(1)— (1)(1)— (3)
Realised other commodity contracts— — — — — — — — — — 
Amortisation of tangible, intangible and right of use assets(105)— — (105)(19)(22)(47)(75)— (163)
Adjusted for decommissioning and inventory amortisation1 — — 1 1 — — 1 — 2 
Corporate administration and marketing expenditure— — — — — — — — — — 
Lease payment sustaining9 — — 9 2 — 1 19 — 22 
Sustaining exploration and study costs— — — — 1 — 3 4 — 8 
Total sustaining capital expenditure61 — — 61 103 46 18 65 — 232 
All-in sustaining costs314 — — 314 325 188 384 501 — 1,398 
Adjusted for non-controlling interests and non -gold producing companies(1)
— — — — — — (58)— — (58)
All-in sustaining costs adjusted for non-controlling interests and non-gold producing companies314 — — 314 325 188 326 501 — 1,340 
All-in sustaining costs314 — — 314 325 188 384 501 — 1,398 
Non-sustaining project capital expenditure11 — — 11 2 122 20 58 — 202 
Non-sustaining lease payments— — — — — — — 2 — 2 
Non-sustaining exploration and study costs2 — — 2 3 2 2 1 — 8 
Care and maintenance— — — — — 45 — — — 45 
Closure and social responsibility costs not related to current operations3 — — 3 — 10 — — — 10 
Other provisions— — — — — — — 3 — 3 
All-in costs330 — — 330 330 367 406 565 — 1,668 
Adjusted for non-controlling interests and non-gold producing companies(1)
— — — — — — (61)— — (61)
All-in costs adjusted for non-controlling interests and non-gold producing companies330 — — 330 330 367 345 565 — 1,607 
Gold sold – oz (000)(2)
367 — — 367 201 114 258 487 — 1,060 
All-in sustaining cost per unit – $/oz(3)
856 — — 856 1,619 1,653 1,267 1,029 — 1,264 
All-in cost per unit – $/oz(3)
898 — — 900 1,642 3,229 1,340 1,161 — 1,516 




212

For the year ended 31 December 2021
Operations in DRC, Ghana, Guinea, Mali and Tanzania
(in $ millions, except as otherwise noted)
DRCMaliJointGhanaGuineaTanzaniaAfrica otherSubsidiaries
KibaliMorilaSadiolaVenturesIduapriemObuasiSiguiriGeita
Total cash costs
Cost of sales per segmental information(5)
350 — — 350 238 164 410 488 — 1,300 
By-product revenue(2)— — (2)(1)— (1)(1)— (3)
Inventory change(1)— — (1)1 (10)(1)(1)— (11)
Amortisation of tangible assets(100)— — (100)(17)(21)(46)(55)— (139)
Amortisation of right of use assets(5)— — (5)(2)— (1)(20)— (23)
Amortisation of intangible assets— — — — — (1)— — — (1)
Rehabilitation and other non-cash costs(5)— — (5)(1)(12)2 (12)— (23)
Retrenchment costs— — — — — — — — — — 
Total cash costs237 — — 237 218 120 363 399 — 1,100 
Adjusted for non-controlling interests(1)
— — — — — — (55)— — (55)
Total cash costs adjusted for non-controlling interests237 — — 237 218 120 308 399 — 1,045 
Gold produced - oz (000)(2)
365 — — 365 202 108 — 258 — 486 — — 1,054 
Total cash costs per unit - $/oz(3)
647 — — 647 1,081 1,112 1,200 822 — 991 




213

For the year ended 31 December 2021
Operations in Australia, Argentina and Brazil
(in $ millions, except as otherwise noted)
AustraliaTotal
Australia		ArgentinaBrazilAmericas otherTotal Americas
Sunrise DamTropicanaAustralia otherCerro VanguardiaAngloGold Ashanti
Mineração		Serra Grande
All-in sustaining costs
Cost of sales per segmental information(5)
364 346 30 740 261 435 123 3 822 
By-product revenue(1)(3)— (4)(93)(26)— — (119)
Realised other commodity contracts— — — — — — — — — 
Amortisation of tangible, intangible and right of use assets(60)(88)(2)(150)(27)(108)(25)(1)(161)
Adjusted for decommissioning and inventory amortisation1 1 — 2 — (4)— — (4)
Corporate administration and marketing expenditure— — — — — — — — — 
Lease payment sustaining13 12 — 25 — 15 4 1 20 
Sustaining exploration and study costs— — — — 1 1 — — 2 
Total sustaining capital expenditure47 82 1 130 69 193 82 — 344 
All-in sustaining costs364 350 29 743 211 506 184 3 904 
Adjusted for non-controlling interests and non -gold producing companies(1)
— — — — (16)— — — (16)
All-in sustaining costs adjusted for non-controlling interests and non-gold producing companies364 350 29 743 195 506 184 3 888 
All-in sustaining costs364 350 29 743 211 506 184 3 904 
Non-sustaining project capital expenditure15 40 — 55 — 2 — 52 54 
Non-sustaining lease payments— — — — — — — — — 
Non-sustaining exploration and study costs27 8 21 56 1 11 4 73 89 
Care and maintenance— — — — — — — — — 
Closure and social responsibility costs not related to current operations— — — — — 7 2 1 10 
Other provisions— — — — — — — — — 
All-in costs406 398 50 854 212 526 190 129 1,057 
Adjusted for non-controlling interests and non -gold producing companies(1)
— — — — (16)— — — (16)
All-in costs adjusted for non-controlling interests and non-gold producing companies406 398 50 854 196 526 190 129 1,041 
Gold sold – oz (000)(2)
231 264 — 495 144 334 83 — 561 
All-in sustaining cost per unit – $/oz(3)
1,573 1,326 — 1,500 1,353 1,519 2,220 — 1,587 
All-in cost per unit – $/oz(3)
1,757 1,506 — 1,725 1,362 1,582 2,283 — 1,858 




214

For the year ended 31 December 2021
Operations in Australia, Argentina and Brazil
(in $ millions, except as otherwise noted)
AustraliaTotal
Australia		ArgentinaBrazilAmericas otherTotal Americas
Sunrise DamTropicanaAustralia otherCerro VanguardiaAngloGold Ashanti
Mineração		Serra Grande
Total cash costs
Cost of sales per segmental information(5)
364 346 30 740 261 435 123 3 822 
By-product revenue(1)(3)— (4)(93)(26)— — (119)
Inventory change(3)3 — — 7 (3)1 — 5 
Amortisation of tangible assets(49)(80)— (129)(27)(94)(21)— (142)
Amortisation of right of use assets(11)(8)(1)(20)— (14)(4)(1)(19)
Amortisation of intangible assets— — (1)(1)— — — — — 
Rehabilitation and other non-cash costs3 3 (1)5 (8)(12)— — (20)
Retrenchment costs— — — — (1)(1)— — (2)
Total cash costs303 261 27 591 139 285 99 2 525 
Adjusted for non-controlling interests(1)
— — — — (10)— — — (10)
Total cash costs adjusted for non-controlling interests303 261 27 591 129 285 99 2 515 
Gold produced – oz (000)(2)
229 265 — 494 145 331 83 — 559 
Total cash costs per unit – $/oz(3)
1,321 987 — 1,196 894 858 1,192 — 921 





215

For the year ended 31 December 2021
AngloGold Ashanti operations – Total
(in $ millions, except as otherwise noted)
JOINT VENTURESSUBSIDIARIES EXCLUDING DISCONTINUED OPERATIONS
All-in sustaining costs
Cost of sales per segmental information(5)
350 2,857 
By-product revenue(2)(126)
Realised other commodity contracts— — 
Amortisation of tangible, intangible and right of use assets(105)(477)
Adjusted for decommissioning and inventory amortisation1 — 
Corporate administration and marketing expenditure— 73 
Lease payment sustaining9 70 
Sustaining exploration and study costs— 10 
Total sustaining capital expenditure61 717 
All-in sustaining costs314 3,124 
Adjusted for non-controlling interests and non-gold producing companies(1)
— (74)
All-in sustaining costs adjusted for non-controlling interests and non-gold producing companies314 3,050 
All-in sustaining costs314 3,124 
Non-sustaining project capital expenditure11 311 
Non-sustaining lease payments— 2 
Non-sustaining exploration and study costs2 153 
Care and maintenance— 45 
Closure and social responsibility costs not related to current operations3 24 
Other provisions— 4 
All-in costs330 3,663 
Adjusted for non-controlling interests and non-gold producing companies(1)
— (77)
All-in costs adjusted for non-controlling interests and non-gold producing companies330 3,586 
Gold sold – oz (000)(2)
367 2,116 
All-in sustaining cost per unit – $/oz(3)
856 1,441 
All-in cost per unit – $/oz(3)
900 1,695 




216

For the year ended 31 December 2021
AngloGold Ashanti operations – Total
(in $ millions, except as otherwise noted)
JOINT VENTURESSUBSIDIARIES EXCLUDING DISCONTINUED OPERATIONS
Total cash costs
Cost of sales per segmental information(5)
350 2,857 
By-product revenue(2)(126)
Inventory change(1)(6)
Amortisation of tangible assets(100)(411)
Amortisation of right of use assets(5)(63)
Amortisation of intangible assets— (3)
Rehabilitation and other non-cash costs(5)(38)
Retrenchment costs— (2)
Total cash costs237 2,208 
Adjusted for non-controlling interests(1)
— (65)
Total cash costs adjusted for non-controlling interests237 2,143 
Gold produced – oz (000)(2)
365 2,107 
Total cash costs (adjusted) per unit – $/oz(3)
647 1,017 





217

For the year ended 31 December 2020
Corporate and other
(in $ millions, except as otherwise noted)
Corporate (4)
All-in sustaining costs
Cost of sales per segmental information(5)
(2)
By-product revenue— 
Realised other commodity contracts5 
Amortisation of tangible, intangible and right of use assets(2)
Adjusted for decommissioning and inventory amortisation(1)
Corporate administration and marketing expenditure67 
Lease payment sustaining3 
Sustaining exploration and study costs1 
Total sustaining capital expenditure2 
All-in sustaining costs73 
Adjusted for non-controlling interests and non -gold producing companies(1)
— 
All-in sustaining costs adjusted for non-controlling interests and non-gold producing companies73 
All-in sustaining costs73 
Non-sustaining project capital expenditure— 
Non-sustaining lease payments— 
Non-sustaining exploration and study costs— 
Care and maintenance— 
Closure and social responsibility costs not related to current operations9 
Other provisions— 
All-in costs82 
Adjusted for non-controlling interests and non -gold producing companies(1)
— 
All-in costs adjusted for non-controlling interests and non-gold producing companies82 
Gold sold - oz (000)(2)
— 
All-in sustaining cost per unit - $/oz(3)
— 
All-in cost per unit - $/oz(3)
— 
(1)Adjusting for non-controlling interest of items included in calculation, to disclose the attributable portions only.
(2)Attributable portion (excluding pre-production ounces).
(3)In addition to the operational performances of the mines, “all-in sustaining cost per ounce”, “all-in cost per ounce” and “total cash costs per ounce” are affected by fluctuations in the currency exchange rate. AngloGold Ashanti reports “all-in sustaining cost per ounce” and “all-in cost per ounce” calculated to the nearest US dollar amount and gold sold in ounces. AngloGold Ashanti reports “total cash costs per ounce” calculated to the nearest US dollar amount and gold produced in ounces.
(4)Corporate includes non-gold producing subsidiaries.
(5)Refer to “Item 18: Financial Statements—Note 2—Segmental Information”.

Rounding of figures may result in computational discrepancies.





218

For the year ended 31 December 2020
Corporate and other
(in $ millions, except as otherwise noted)
Corporate (4)
Total cash costs
Cost of sales per segmental information(5)
(2)
By-product revenue—
Inventory change—
Amortisation of tangible assets—
Amortisation of right of use assets—
Amortisation of intangible assets(2)
Rehabilitation and other non-cash costs—
Retrenchment costs—
Total cash costs net of by-product revenue(4)
Adjusted for non-controlling interests,(1)
—
Total cash costs for non-controlling interests(4)
Gold produced – oz (000)(2)
—
Total cash costs per unit – $/oz(3)
—
(1)Adjusting for non-controlling interest of items included in calculation, to disclose the attributable portions only.
(2)Attributable portion (excluding pre-production ounces).
(3)In addition to the operational performances of the mines, “all-in sustaining cost per ounce”, “all-in cost per ounce” and “total cash costs per ounce” are affected by fluctuations in the currency exchange rate. AngloGold Ashanti reports “all-in sustaining cost per ounce” and “all-in cost per ounce” calculated to the nearest US dollar amount and gold sold in ounces. AngloGold Ashanti reports “total cash costs per ounce” calculated to the nearest US dollar amount and gold produced in ounces.
(4)Corporate includes non-gold producing subsidiaries.
(5)Refer to “Item 18: Financial Statements—Note 2—Segmental Information”.

Rounding of figures may result in computational discrepancies.




219

For the year ended 31 December 2020
Operations in South Africa (Discontinued operations)
(in $ millions, except as otherwise noted)
MponengWest Wits OperationsSurface OperationsSouth Africa otherTotal South Africa (Operations)
All-in sustaining costs
Cost of sales per segmental information(5)
158 158 124 4 287 
By-product revenue(1)— — — (1)
Realised other commodity contracts— — — — — 
Amortisation of tangible, intangible and right of use assets— — — — — 
Adjusted for decommissioning and inventory amortisation— — — — — 
Corporate administration and marketing expenditure— — — — — 
Sustaining exploration and study costs— — — — — 
Total sustaining capital expenditure27 27 7 1 35 
All-in sustaining costs184 185 131 5 321 
All-in sustaining costs adjusted for non-controlling interest and non-gold producing companies184 185 131 5 321 
Non-sustaining project capital expenditure— — — — — 
Non-sustaining lease payments— — — — — 
Non-sustaining exploration and study costs— — — — — 
Care and maintenance— — — 17 17 
Closure and social responsibility costs not related to current operations— — — — — 
Other provisions— — — — — 
All-in costs184 185 131 22 338 
Gold sold - oz (000)(2)
135 135 109 — 247 
All-in sustaining cost per unit - $/oz(3)
1,365 1,365 1,201 — 1,296 
All-in cost per unit - $/oz(3)
1,366 1,366 1,201 — 1,367 





220

For the year ended 31 December 2020
Operations in South Africa (Discontinued operations)
(in $ millions, except as otherwise noted)
MponengWest Wits OperationsSurface OperationsSouth Africa otherTotal South Africa (Operations)
Total cash costs
Cost of sales per segmental information(5)
158 158 124 4 287 
By-product revenue(1)(1)— — (1)
Inventory change(1)(1)(2)(4)(7)
Amortisation of tangible assets— — — — —
Amortisation of right of use assets— — — — —
Amortisation of intangible assets— — — — —
Rehabilitation and other non-cash costs— — — — —
Retrenchment costs(1)(1)— — (2)
Total cash costs155 155 122 — 277 
Gold produced - oz (000)(2)
134 134 107 — 241 
Total cash costs per unit -$/oz(3)
1,164 1,164 1,131 — 1,149 




221

For the year ended 31 December 2020
Operations in DRC, Ghana, Guinea, Mali and Tanzania
(in $ millions, except as otherwise noted)
DRCMaliJointGhanaGuineaTanzaniaAfrica otherSubsidiaries
KibaliMorilaSadiolaVenturesIduapriemObuasiSiguiriGeita
All-in sustaining costs
Cost of sales per segmental information(5)
340 — — 340 280 34 377 542 (1)1,232 
By-product revenue(1)— — (1)(1)— — (2)— (3)
Realised other commodity contracts— — — — — — — — — — 
Amortisation of tangible, intangible and right of use assets(104)— — (104)(74)(6)(41)(124)— (245)
Adjusted for decommissioning and inventory amortisation1 — — 1 1 — — 4 — 5 
Corporate administration and marketing expenditure— — — — — — — — — — 
Lease payment sustaining9 — — 9 — — — 17 — 17 
Sustaining exploration and study costs— — — — 3 — 2 5 — 10 
Total sustaining capital expenditure52 — — 52 60 7 15 80 1 163 
All-in sustaining costs296 — — 297 269 35 353 522 — 1,179 
Adjusted for non-controlling interests and non -gold producing companies(1)
— — — — — — (53)— — (53)
All-in sustaining costs adjusted for non-controlling interests and non-gold producing companies296 — — 297 269 35 300 522 — 1,126 
All-in sustaining costs296 — — 297 269 35 353 522 — 1,179 
Non-sustaining project capital expenditure— — — — — 161 15 7 — 183 
Non-sustaining lease payments— — — — — — — 2 — 2 
Non-sustaining exploration and study costs— — — — 2 2 5 2 — 11 
Care and maintenance— — — — — — — — — — 
Closure and social responsibility costs not related to current operations2 6 (3)4 — 10 — — — 10 
Other provisions— — — — — — — — — — 
All-in costs298 6 (3)301 271 208 373 533 — 1,385 
Adjusted for non-controlling interests and non -gold producing companies(1)
— — — — — — (56)— — (56)
All-in costs adjusted for non-controlling interests and non-gold producing companies298 6 (3)301 271 208 317 533 — 1,329 
Gold sold – oz (000)(2)
365 — — 365 274 27 215 639 — 1,155 
All-in sustaining cost per unit – $/oz(3)
809 — — 810 985 1,316 1,397 814 — 975 
All-in cost per unit – $/oz(3)
817 — — 824 992 7,731 1,476 831 — 1,149 




222

For the year ended 31 December 2020
Operations in DRC, Ghana, Guinea, Mali and Tanzania
(in $ millions, except as otherwise noted)
DRCMaliJointGhanaGuineaTanzania Africa otherSubsidiaries
KibaliMorilaSadiolaVenturesIduapriemObuasiSiguiriGeita
Total cash costs
Cost of sales per segmental information(5)
340 — — 340 280 34 377 542 (1)1,232 
By-product revenue(1)— — (1)(1)— — (2)— (3)
Inventory change(1)— — (1)1 9 (1)(12)— (3)
Amortisation of tangible assets(101)— — (101)(74)(6)(40)(108)— (228)
Amortisation of right of use assets(3)— — (3)— — (1)(16)— (17)
Amortisation of intangible assets— — — — — — — — — — 
Rehabilitation and other non-cash costs(4)— — (4)(6)(2)(9)(5)— (22)
Retrenchment costs— — — — — — — — — — 
Total cash costs230 — — 230 200 35 326 399 (1)959 
Adjusted for non-controlling interests(1)
— — — — — — (49)— — (49)
Total cash costs adjusted for non-controlling interests230 — — 230 200 35 277 399 (1)910 
Gold produced - oz (000) (2)
364 — — 364 275 30 215 623 — 1,143 
Total cash costs per unit - $/oz(3)
629 — — 629 731 1,145 1,293 641 — 797 




223

For the year ended 31 December 2020
Operations in Australia, Argentina and Brazil
(in $ millions, except as otherwise noted)
AustraliaTotal
Australia		ArgentinaBrazilAmericas otherTotal Americas
Sunrise DamTropicanaAustralia otherCerro VanguardiaAngloGold Ashanti
Mineração		Serra Grande
All-in sustaining costs
Cost of sales per segmental information(5)
342 338 25 705 269 391 102 2 764 
By-product revenue(1)(2)— (3)(82)(17)— — (99)
Realised other commodity contracts— — — — — — — — — 
Amortisation of tangible, intangible and right of use assets(64)(94)(2)(160)(26)(109)(27)(1)(163)
Adjusted for decommissioning and inventory amortisation2 1 — 3 (7)3 — — (4)
Corporate administration and marketing expenditure— — — — — — — — — 
Lease payment sustaining11 10 1 22 — 8 2 — 10 
Sustaining exploration and study costs— 1 — 1 2 2 — — 4 
Total sustaining capital expenditure50 64 — 114 31 103 33 — 167 
All-in sustaining costs340 318 24 682 187 381 110 1 679 
Adjusted for non-controlling interests and non -gold producing companies(1)
— — — — (14)— — — (14)
All-in sustaining costs adjusted for non-controlling interests and non-gold producing companies340 318 24 682 173 381 110 1 665 
All-in sustaining costs340 318 24 682 187 381 110 1 679 
Non-sustaining project capital expenditure3 25 — 28 — — — 49 49 
Non-sustaining lease payments— — — — — — — — — 
Non-sustaining exploration and study costs22 5 17 44 1 6 3 47 57 
Care and maintenance— — — — — — — — — 
Closure and social responsibility costs not related to current operations— — — — — 8 2 — 10 
Other provisions— — — — — — — — — 
All-in costs365 348 41 754 188 395 115 97 795 
Adjusted for non-controlling interests and non -gold producing companies(1)
— — — — (14)— — — (14)
All-in costs adjusted for non-controlling interests and non-gold producing companies365 348 41 754 174 395 115 97 781 
Gold sold – oz (000)(2)
258 299 — 557 186 364 114 — 664 
All-in sustaining cost per unit – $/oz(3)
1,320 1,061 — 1,225 931 1,050 953 — 1,003 
All-in cost per unit – $/oz(3)
1,417 1,164 — 1,356 934 1,091 997 — 1,179 




224

For the year ended 31 December 2020
Operations in Australia, Argentina and Brazil
(in $ millions, except as otherwise noted)
AustraliaTotal
Australia		ArgentinaBrazilAmericas otherTotal Americas
Sunrise DamTropicanaAustralia otherCerro VanguardiaAngloGold Ashanti
Mineração		Serra Grande
Total cash costs
Cost of sales per segmental information(5)
342 338 25 705 269 391 102 2 764 
By-product revenue(1)(2)— (3)(82)(17)— — (99)
Inventory change(1)(1)— (2)(16)1 — — (16)
Amortisation of tangible assets(54)(86)— (141)(26)(100)(25)— (151)
Amortisation of right of use assets(10)(8)(1)(18)— (8)(2)(1)(11)
Amortisation of intangible assets— — (1)(1)— (1)— — (1)
Rehabilitation and other non-cash costs(2)(1)(1)(4)(13)4 3 (1)(6)
Retrenchment costs— — — — — (1)— — (2)
Total cash costs274 240 22 536 132 269 77 — 478 
Adjusted for non-controlling interests— — — — (10)— — — (10)
Total cash costs adjusted for non-controlling interests274 240 22 536 122 269 77 — 468 
Gold produced – oz (000) (2)
256 298 — 554 173 362 114 — 649 
Total cash costs per unit – $/oz(3)
1,069 807 — 968 699 747 665 — 721 




225

For the year ended 31 December 2020
AngloGold Ashanti operations – Total
(in $ millions, except as otherwise noted)
JOINT VENTURESSUBSIDIARIES EXCLUDING DISCONTINUED OPERATIONS
All-in sustaining costs
Cost of sales per segmental information(5)
340 2,699 
By-product revenue(1)(105)
Realised other commodity contracts— 5 
Amortisation of tangible, intangible and right of use assets(104)(570)
Adjusted for decommissioning and inventory amortisation1 4 
Corporate administration and marketing expenditure— 67 
Lease payment sustaining9 52 
Sustaining exploration and study costs— 15 
Total sustaining capital expenditure52 445 
All-in sustaining costs297 2,612 
Adjusted for non-controlling interests and non-gold producing companies(1)
— (67)
All-in sustaining costs adjusted for non-controlling interests and non-gold producing companies297 2,545 
All-in sustaining costs297 2,612 
Non-sustaining project capital expenditure— 260 
Non-sustaining lease payments— 2 
Non-sustaining exploration and study costs— 112 
Care and maintenance— — 
Closure and social responsibility costs not related to current operations4 29 
Other provisions— — 
All-in costs301 3,015 
Adjusted for non-controlling interests and non-gold producing companies(1)
— (70)
All-in costs adjusted for non-controlling interests and non-gold producing companies301 2,945 
Gold sold – oz (000)(2)
365 2,376 
All-in sustaining cost per unit – $/oz(3)
810 1,072 
All-in cost per unit – $/oz(3)
824 1,240 




226

For the year ended 31 December 2020
AngloGold Ashanti operations – Total
(in $ millions, except as otherwise noted)
JOINT VENTURESSUBSIDIARIES EXCLUDING DISCONTINUED OPERATIONS
Total cash costs
Cost of sales per segmental information(5)
340 2,699 
By-product revenue(1)(105)
Inventory change(1)(21)
Amortisation of tangible assets(101)(520)
Amortisation of right of use assets(3)(47)
Amortisation of intangible assets— (3)
Rehabilitation and other non-cash costs(4)(32)
Retrenchment costs— (2)
Total cash costs230 1,969 
Adjusted for non-controlling interests(1)
— (59)
Total cash costs adjusted for non-controlling interests230 1,910 
Gold produced – oz (000)(2)
364 2,345 
Total cash costs (adjusted) per unit – $/oz(3)
629 815 




227

For the year ended 31 December 2019
Corporate and other
(in $ millions, except as otherwise noted)
Corporate (4)

All-in sustaining costs
Cost of sales per segmental information(5)
(1)(1)
By-product revenue—
—
Realised other commodity contracts—
Amortisation of tangible, intangible and intangibleright of use assets(3)(3)
Adjusted for decommissioning and inventory amortisation(1)(1)
Lease payment sustaining5
Corporate administration and marketing related to current operationsexpenditure82
82
Inventory writedown to net realisable value and other stockpile adjustmentsLease payment sustaining—
5
Sustaining exploration and study costs1
1
Total sustaining capital expenditure—
—
Amortisation relating to inventory—
Realised other commodity contracts—
All-in sustaining costs83
83
Adjusted for non-controlling interests and non-goldnon -gold producing companies(1)
—
—
All-in sustaining costs adjusted for non-controlling interests and non-gold producing companies82
82
All-in sustaining costs83
83
Non-sustaining project capital expenditure—
—
Lease payment non sustainingNon-sustaining lease payments—
—
Technology improvements—
Non-sustaining exploration and study costs(1)(1)
Care and maintenance—
—
CorporateClosure and social responsibility costs not related to current operations7
7
Other provisions2
2
All-in costs91
91
Adjusted for non-controlling interests and non-goldnon -gold producing companies(1)
—
—
All-in costs adjusted for non-controlling interests and non-gold producing companies90
90
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. 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”.

(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 differences.discrepancies.






228

For the year ended 31 December 2019
Corporate and other
(in $ millions, except as otherwise noted)
Corporate(4)

Total cash costs
Cost of sales per segmental information(5)information(5)
(1)(1)
By-product revenue—
—
Inventory change4
4
Amortisation of intangible assets—
—
Amortisation of right of use assets(3)
Amortisation of tangible and intangible assets(3)—
Rehabilitation and other non-cash costs—
—
Retrenchment costs—
—
Total cash costs net of by-product revenue1
1
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 companies1
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.































156



229

For the year ended 31 December 2019
Operations in ContinentalSouth Africa (DRC, Ghana, Guinea, Mali and Tanzania)(Discontinued operations)
(in $ millions, except as otherwise noted)
MponengWest Wits OperationsSurface OperationsSouth Africa otherTotal South Africa (Operations)
All-in sustaining costs
Cost of sales per segmental information(5)
287 287 189 3 479 
By-product revenue— — ——(1)
Realised other commodity contracts— — ——— 
Amortisation of tangible and intangible assets and right of use assets(47)(47)(13)(1)(61)
Adjusted for decommissioning and inventory amortisation— — ——1 
Inventory writedown to net realisable value and other stockpile adjustments— — (3)(3)(6)
Total sustaining capital expenditure47 47 73 57 
All-in sustaining costs287 287 180 2 469 
All-in sustaining costs287 289 180 2 469 
Non-sustaining project capital expenditure2 — ——2 
Care and maintenance— — —4242 
All-in costs289 289 18044 513 
Gold sold - oz (000)(2)
242 242 172 — 414 
All-in sustaining cost per unit - $/oz(3)
1,186 1,187 1,043 — 1,132 
All-in cost per unit - $/oz(3)
1,197 1,198 1,043 — 1,240 




230
 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)
338
 36
 54
 428
 288
 —
 315
 571
 (1) 1,173
By-product revenue(1) —
 —
 (1) (1) —
 —
 (1) —
 (2)
Amortisation of tangible and intangible assets(130) (3) (4) (137) (58) —
 (38) (133) (1) (230)
Adjusted for decommissioning and inventory amortisation1
 1
 —
 2
 1
 —
 —
 3
 1
 4
Lease payment sustaining—
 —
 —
 —
 —
 —
 —
 19
 —
 19
Corporate administration and marketing related to current operations—
 —
 —
 —
 —
 —
 —
 —
 —
 —
Inventory writedown to net realisable value and other stockpile adjustments—
 —
 —
 —
 —
 —
 —
 —
 —
 —
Sustaining exploration and study costs—
 —
 —
 —
 3
 —
 3
 6
 (1) 12
Total sustaining capital expenditure46
 —
 —
 46
 16
 —
 15
 75
 —
 107
Amortisation relating to inventory—
 —
 —
 —
 —
 —
 —
 —
 —
 —
Realised other commodity contracts—
 —
 —
 —
 —
 —
 —
 —
 —
 —
All-in sustaining costs254
 34
 50
 338
 249
 —
 295
 540
 (1) 1,083
Adjusted for non-controlling interests and non -gold producing companies(1)
—
 —
 —
 —
 —
 —
 (44) —
 —
 (44)
All-in sustaining costs adjusted for non-controlling interests and non-gold producing companies254
 34
 50
 338
 249
 —
 251
 540
 (1) 1,039
All-in sustaining costs254
 34
 50
 338
 249
 —
 295
 540
 (1) 1,083
Non-sustaining project capital expenditure5
 —
 —
 5
 —
 246
 6
 —
 —
 252
Lease payment non sustaining—
 —
 —
 —
 —
 —
 —
 1
 —
 1
Technology improvements—
 —
 —
 —
 —
 —
 —
 —
 —
 —
Non-sustaining exploration and study costs5
 —
 —
 4
 1
 —
 4
 4
 1
 10
Care and maintenance costs—
 —
 —
 —
 —
 48
 —
 —
 (1) 47
Corporate and social responsibility costs not related to current operations1
 —
 —
 —
 2
 —
 9
 —
 —
 11
Other provisions—
 —
 —
 —
 —
 —
 —
 —
 —
 —
All-in costs265
 34
 49
 347
 252
 294
 314
 545
 (1) 1,404
Adjusted for non-controlling interests and non-gold producing companies(1)
—
 —
 —
 —
 —
 —
 (47) —
 —
 (47)
All-in costs adjusted for non-controlling interests and non-gold producing companies265
 34
 49
 347
 252
 294
 267
 545
 (1) 1,357
Gold sold – oz (000)(2)
362
 28
 52
 442
 280
 —
 213
 604
 —
 1,096
All-in sustaining cost per unit – $/oz(3)
704
 1,237
 956
 767
 890
 —
 1,176
 894
 —
 947
All-in cost per unit – $/oz(3)
734
 1,237
 930
 785
 900
 —
 1,252
 903
 —
 1,237


For the year ended 31 December 2019
Operations in ContinentalSouth Africa (DRC, Ghana, Guinea, Mali and Tanzania)(Discontinued operations)
(in $ millions, except as otherwise noted)
MponengWest Wits OperationsSurface OperationsSouth Africa otherTotal South Africa (Operations)
Total cash costs
Cost of sales per segmental information(5)
287 287 189 3 479 
By-product revenue— —— — (1)
Inventory change3 3(1)— 2 
Amortisation of tangible assets(47)(47)(13)(1)(61)
Amortisation of right of use assets— —— — — 
Amortisation of intangible assets— —— — — 
Rehabilitation and other non-cash costs(2)(2)(2)(2)(6)
Retrenchment costs(2)(2)— — (2)
Total cash costs239 239 173 — 411 
Gold produced - oz (000)(2)
244 244 175 — 419 
Total cash costs per unit - $/oz(3)
976 976 987 — 981 




231

 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)338
 36
 54
 428
 288
 —
 315
 571
 (1) 1,173
By-product revenue(1) —
 —
 (1) (1) —
 —
 (1) —
 (2)
Inventory change4
 (1) —
 3
 (5) —
 1
 (9) 1
 (12)
Amortisation of intangible assets—
 —
 —
 —
 —
 —
 —
 —
 —
 —
Amortisation of tangible and intangible assets(130) (3) (4) (137) (58) —
 (38) (133) (1) (230)
Rehabilitation and other non-cash costs(1) 1
 —
 (1) —
 —
 (5) (8) (2) (14)
Retrenchment costs—
 —
 —
 —
 —
 —
 —
 —
 —
 —
Total cash costs net of by-product revenue210
 33
 50
 292
 224
 —
 273
 420
 (2) 915
Adjusted for non-controlling interests, non-gold producing companies and other(1)
—
 —
 —
 —
 —
 —
 (41) —
 —
 (41)
Total cash costs net of by-product revenue adjusted for non-controlling interests and non-gold producing companies210
 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
For the year ended 31 December 2019

Operations in DRC, Ghana, Guinea, Mali and Tanzania
(in $ millions, except as otherwise noted)
DRCMaliJointGhanaGuineaTanzaniaAfrica otherSubsidiaries
KibaliMorilaSadiolaVenturesIduapriemObuasiSiguiriGeita
All-in sustaining costs
Cost of sales per segmental information(5)
338 36 54 428 288 — 315 571 (1)1,173 
By-product revenue(1)— — (1)(1)— — (1)— (2)
Realised other commodity contracts— — — — — — — — — — 
Amortisation of tangible, intangible and right of use assets(130)(3)(4)(137)(58)— (38)(133)(1)(230)
Adjusted for decommissioning and inventory amortisation1 1 — 2 1 — — 3 1 4 
Corporate administration and marketing expenditure— — — — — — — — — — 
Lease payment sustaining— — — — — — — 19 — 19 
Sustaining exploration and study costs— — — — 3 — 3 6 (1)12 
Total sustaining capital expenditure46 — — 46 16 — 15 75 — 107 
All-in sustaining costs254 34 50 338 249 — 295 540 (1)1,083 
Adjusted for non-controlling interests and non -gold producing companies(1)
— — — — — — (44)— — (44)
All-in sustaining costs adjusted for non-controlling interests and non-gold producing companies254 34 50 338 249 — 251 540 (1)1,039 
All-in sustaining costs254 34 50 338 249 — 295 540 (1)1,083 
Non-sustaining project capital expenditure5 — — 5 — 246 6 — — 252 
Non-sustaining lease payments— — — — — — — 1 — 1 
Non-sustaining exploration and study costs5 — — 4 1 — 4 4 1 10 
Care and maintenance— — — — — 48 — — (1)47 
Closure and social responsibility costs not related to current operations1 — — — 2 — 9 — — 11 
Other provisions— — — — — — — — — — 
All-in costs265 34 49 347 252 294 314 545 (1)1,404 
Adjusted for non-controlling interests and non -gold producing companies(1)
— — — — — — (47)— — (47)
All-in costs adjusted for non-controlling interests and non-gold producing companies265 34 49 347 252 294 267 545 (1)1,357 
Gold sold - oz (000)(2)
362 28 52 442 280 — 213 604 — 1,096 
All-in sustaining cost per unit – $/oz(3)
704 1,237 956 767 890 — 1,176 894 — 947 
All-in cost per unit – $/oz(3)
734 1,237 930 785 900 — 1,252 903 — 1,237 




232

For the year ended 31 December 2019
Operations in DRC, Ghana, Guinea, Mali and Tanzania
(in $ millions, except as otherwise noted)
DRCMaliJointGhanaGuineaTanzaniaAfrica otherSubsidiaries
KibaliMorilaSadiolaVenturesIduapriemObuasiSiguiriGeita
Total cash costs
Cost of sales per segmental information(5)
338 36 54 428 288 — 315 571 (1)1,173 
By-product revenue(1)— — (1)(1)— — (1)— (2)
Inventory change4 (1)— 3 (5)— 1 (9)1 (12)
Amortisation of intangible assets(129)(2)(4)(135)(57)— (38)(114)— (209)
Amortisation of right of use assets(1)(1)— (2)— — — (18)(1)(19)
Amortisation of tangible assets— — — — (1)— — (1)— (2)
Rehabilitation and other non-cash costs(1)1 — (1)— — (5)(8)(2)(14)
Retrenchment costs— — — — — — — — — — 
Total cash costs210 33 50 292 224 — 273 420 (2)915 
Adjusted for non-controlling interests(1)
— — — — — — (41)— — (41)
Total cash costs adjusted for non-controlling interests210 33 50 292 224 — 232 420 (2)874 
Gold produced - oz (000) (2)
366 27 51 445 275 — 213 604 — 1,091 
Total cash costs per unit - $/oz(3)
572 1,205 966 657 815 — 1,091 695 — 801 




233

For the year ended 31 December 2019
Operations in Australia, Argentina and the Americas (Argentina and Brazil)Brazil
(in $ millions, except as otherwise noted)
AustraliaTOTAL AUSTRALIAArgentinaBrazilAmericas otherTotal Americas
Sunrise DamTropicanaAustralia otherCerro VanguardiaAngloGold Ashanti
Mineração		Serra Grande
All-in sustaining costs
Cost of sales per segmental information(5)
318 297 17 632 274 417 130 1 822 
By-product revenue— (2)— (3)(61)(20)— (1)(81)
Realised other commodity contracts— — — — — — — — — 
Amortisation of tangible, intangible and right of use assets(56)(111)(7)(173)(40)(103)(34)— (177)
Adjusted for decommissioning and inventory amortisation2 — — 2 (3)(3)— 2 (5)
Corporate administration and marketing expenditure— — — — — — — — — 
Lease payment sustaining8 4 8 20 — 7 — — 7 
Sustaining exploration and study costs4 — — 4 1 8 5 — 14 
Total sustaining capital expenditure43 83 — 126 33 91 34 — 157 
All-in sustaining costs319 271 18 609 204 397 136 2 737 
Adjusted for non-controlling interests and non -gold producing companies(1)
— — — — (15)— — — (15)
All-in sustaining costs adjusted for non-controlling interests and non-gold producing companies319 271 18 609 189 397 136 2 722 
All-in sustaining costs319 271 18 609 204 397 136 2 737 
Non-sustaining project capital expenditure— 23 — 23 — — — 38 38 
Non-sustaining lease payments— — — — — — — — — 
Non-sustaining exploration and study costs5 4 18 27 1 3 1 44 49 
Care and maintenance— — — — — — — — — 
Closure and social responsibility costs not related to current operations— — — — — 17 3 — 20 
Other provisions— — — — — — — — — 
All-in costs324 298 36 659 205 418 140 83 844 
Adjusted for non-controlling interests and non -gold producing companies(1)
— — — — (15)— — — (15)
All-in costs adjusted for non-controlling interests and non-gold producing companies324 298 36 659 190 418 140 83 829 
Gold sold - oz (000)(2)
256 358 — 614 219 358 122 — 700 
All-in sustaining cost per unit - $/oz(3)
1,246 757 — 990 859 1,107 1,105 — 1,032 
All-in cost per unit - $/oz(3)
1,266 830 — 1,072 863 1,164 1,141 — 1,183 




234
 Australia 
Total
Australia

 Argentina Brazil Americas other
 Total Americas
Sunrise Dam
 Tropicana
 Australia other
  Cerro Vanguardia
 
AngloGold Ashanti
Mineração

 Serra Grande
  
All-in sustaining costs                 
Cost of sales per segmental information(5)
318
 297
 17
 632
 274
 417
 130
 1
 822
By-product revenue—
 (2) —
 (3) (61) (20) —
 (1) (81)
Amortisation of tangible and intangible assets(56) (111) (7) (173) (40) (103) (34) —
 (177)
Adjusted for decommissioning and inventory amortisation2
 —
 —
 2
 (3) (3) —
 2
 (5)
Lease payment sustaining8
 4
 8
 20
 —
 7
 —
 —
 7
Corporate administration and marketing related to current operations—
 —
 —
 —
 —
 —
 —
 —
 —
Inventory writedown to net realisable value and other stockpile adjustments—
 —
 —
 —
 —
 —
 —
 —
 —
Sustaining exploration and study costs4
 —
 —
 4
 1
 8
 5
 —
 14
Total sustaining capital expenditure43
 83
 —
 126
 33
 91
 34
 —
 157
Amortisation relating to inventory—
 —
 —
 —
 —
 —
 —
 —
 —
Realised other commodity contracts—
 —
 —
 —
 —
 —
 —
 —
 —
All-in sustaining costs319
 271
 18
 609
 204
 397
 136
 2
 737
Adjusted for non-controlling interests and non -gold producing companies(1)
—
 —
 —
 —
 (15) —
 —
 —
 (15)
All-in sustaining costs adjusted for non-controlling interests and non-gold producing companies319
 271
 18
 609
 189
 397
 136
 2
 722
All-in sustaining costs319
 271
 18
 609
 204
 397
 136
 2
 737
Non-sustaining project capital expenditure—
 23
 —
 23
 —
 —
 —
 38
 38
Lease payment non sustaining—
 —
 —
 —
 —
 —
 —
 —
 —
Technology improvements—
 —
 —
 —
 —
 —
 —
 —
 —
Non-sustaining exploration and study costs5
 4
 18
 27
 1
 3
 1
 44
 49
Care and maintenance—
 —
 —
 —
 —
 —
 —
 —
 —
Corporate and social responsibility costs not related to current operations—
 —
 —
 —
 —
 17
 3
 —
 20
Other provisions—
 —
 —
 —
 —
 —
 —
 —
 —
All-in costs324
 298
 36
 659
 205
 418
 140
 83
 844
Adjusted for non-controlling interests and non -gold producing companies(1)
—
 —
 —
 —
 (15) —
 —
 —
 (15)
All-in costs adjusted for non-controlling interests and non-gold producing companies324
 298
 36
 659
 190
 418
 140
 83
 829
Gold sold – oz (000)(2)
256
 358
 —
 614
 219
 358
 122
 —
 700
All-in sustaining cost per unit – $/oz(3)
1,246
 757
 —
 990
 859
 1,107
 1,105
 —
 1,032
All-in cost per unit – $/oz(3)
1,266
 830
 —
 1,072
 863
 1,164
 1,141
 —
 1,183


For the year ended 31 December 2019
Operations in Australia, Argentina and the Americas (Argentina and Brazil)Brazil
(in $ millions, except as otherwise noted)
AustraliaTOTAL AUSTRALIAArgentinaBrazilAmericas otherTotal America
Sunrise DamTropicanaAustralia otherCerro VanguardiaAngloGold Ashanti
Mineração		Serra Grande
Total cash costs
Cost of sales per segmental information(5)
318 297 17 632 274 417 131 1 822 
By-product revenue— (3)— (3)(61)(20)— (1)(81)
Inventory change(1)(1)— (2)3 (1)— — 2 
Amortisation of tangible assets(49)(107)(1)(156)(40)(97)(34)— (170)
Amortisation of right of use assets(7)(4)(6)(16)— (6)— — (6)
Amortisation of intangible assets— — — (1)— — — — (1)
Rehabilitation and other non-cash costs(3)(1)(1)(5)(11)(12)(10)— (33)
Retrenchment costs— — — (1)(1)(2)— (1)(3)
Total cash costs258 181 9 448 164 279 87 (2)530 
Adjusted for non-controlling interests(1)
— — — — (12)— — — (12)
Total cash costs adjusted for non-controlling interests258 181 9 448 152 279 87 (2)518 
Gold produced - oz (000) (2)
254 360 — 614 225 362 123 — 710 
Total cash costs per unit - $/oz(3)
1,014 504 — 730 673 782 707 — 736 




235
 Australia 
Total
Australia

 Argentina Brazil Americas other
 Total Americas
 Sunrise Dam
 Tropicana
 Australia other
  Cerro Vanguardia
 
AngloGold Ashanti
Mineração

 Serra Grande
  
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 intangible assets—
 —
 —
 —
 —
 —
 —
 —
 —
Amortisation of tangible and intangible assets(56) (111) (7) (173) (40) (103) (34) —
 (177)
Rehabilitation and other non-cash costs(3) (1) (1) (5) (11) (12) (10) —
 (33)
Retrenchment costs—
 —
 —
 (1) (1) (2) —
 (1) (3)
Total cash costs net of by-product revenue258
 181
 9
 448
 164
 279
 87
 (2) 530
Adjusted for non-controlling interests, non-gold producing companies and other(1)
—
 —
 —
 —
 (12) —
 —
 —
 (12)
Total cash costs net of by-product revenue adjusted for non-controlling interests and non-gold producing companies258
 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


For the year ended 31 December 2019
AngloGold Ashanti operations – Total
(from continuing operations - in $ millions, except as otherwise noted)
JOINT VENTURESSUBSIDIARIES EXCLUDING DISCONTINUED OPERATIONS
All-in sustaining costs
Cost of sales per segmental information(5)
428 2,626 
By-product revenue(1)(86)
Realised other commodity contracts— — 
Amortisation of tangible, intangible and right of use assets(137)(583)
Adjusted for decommissioning and inventory amortisation2 1 
Corporate administration and marketing expenditure— 82 
Lease payment sustaining— 51 
Sustaining exploration and study costs— 31 
Total sustaining capital expenditure46 390 
All-in sustaining costs338 2,512 
Adjusted for non-controlling interests and non-gold producing companies(1)
— (60)
All-in sustaining costs adjusted for non-controlling interests and non-gold producing companies338 2,452 
All-in sustaining costs338 2,512 
Non-sustaining project capital expenditure5 313 
Non-sustaining lease payments— 1 
Non-sustaining exploration and study costs4 85 
Care and maintenance— 47 
Closure and social responsibility costs not related to current operations— 38 
Other provisions— 2 
All-in costs347 2,998 
Adjusted for non-controlling interests and non-gold producing companies(1)
— (62)
All-in costs adjusted for non-controlling interests and non-gold producing companies347 2,936 
Gold sold - oz (000)(2)
442 2,410 
All-in sustaining cost per unit - $/oz(3)
767 1,017 
All-in cost per unit - $/oz(3)
785 1,218 




236

 JOINT VENTURES
SUBSIDIARIES
All-in sustaining costs  
Cost of sales per segmental information(5)
428
2,626
By-product revenue(1)(86)
Amortisation of tangible and intangible assets(137)(583)
Adjusted for decommissioning and inventory amortisation2
1
Lease payment sustaining—
51
Corporate administration and marketing related to current operations—
82
Inventory write-down to net realisable value and other stockpile adjustments—
—
Sustaining exploration and study costs—
31
Total sustaining capital expenditure46
390
Amortisation relating to inventory—
—
Realised other commodity contracts—
—
All-in sustaining costs338
2,512
Adjusted for non-controlling interests and non-gold producing companies(1)
—
(60)
All-in sustaining costs adjusted for non-controlling interests and non-gold producing companies338
2,452
All-in sustaining costs338
2,512
Non-sustaining project capital expenditure5
313
Lease payment non sustaining—
1
Technology improvements—
—
Non-sustaining exploration and study costs4
85
Care and maintenance costs—
47
Corporate and social responsibility costs not related to current operations—
38
Other provisions—
2
All-in costs347
2,998
Adjusted for non-controlling interests and non-gold producing companies(1)
—
(62)
All-in costs adjusted for non-controlling interests and non-gold producing companies347
2,936
Gold sold – oz (000)(2)
442
2,410
All-in sustaining cost per unit – $/oz(3)
767
1,017
All-in cost per unit – $/oz(3)
785
1,218


For the year ended 31 December 2019
AngloGold Ashanti operations – Total
(from continuing operations - in $ millions, except as otherwise noted)
JOINT VENTURESSUBSIDIARIES EXCLUDING DISCONTINUED OPERATIONS
Total cash costs
Cost of sales per segmental information(5)
428 2,626 
By-product revenue(1)(86)
Inventory change3 (5)
Amortisation of tangible assets(135)(540)
Amortisation of right of use assets(2)(43)
Amortisation of intangible assets— — 
Rehabilitation and other non-cash costs(1)(53)
Retrenchment costs— (4)
Total cash costs292 1,895 
Adjusted for non-controlling interests(1)
— (53)
Total cash costs adjusted for non-controlling interests292 1,841 
Gold produced - oz (000)(2)
445 2,415 
Total cash costs (adjusted) per unit - $/oz(3)
657 763 




237
 JOINT VENTURES
SUBSIDIARIES
Total cash costs  
Cost of sales per segmental information(5)
428
2,626
By-product revenue(1)(86)
Inventory change3
(5)
Amortisation of intangible assets—
—
Amortisation of tangible and intangible assets(137)(583)
Rehabilitation and other non-cash costs(1)(53)
Retrenchment costs—
(4)
Total cash costs net of by-product revenue292
1,895
Adjusted for non-controlling interests, non-gold producing companies and other(1)
—
(53)
Total cash costs net of by-product revenue adjusted for non-controlling interests and non-gold producing companies292
1,841
Gold produced – oz (000)(2)
445
2,415
Total cash costs (adjusted) per unit – $/oz(3)
657
763


For the year ended 31 December 2018
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(1)
Amortisation of tangible and intangible assets(3)
Adjusted for decommissioning and inventory amortisation—
Lease payment sustaining—
Corporate administration and marketing related to current operations76
Inventory writedown to net realisable value and other stockpile adjustments—
Sustaining exploration and study costs1
Total sustaining capital expenditure3
Amortisation relating to inventory—
Realised other commodity contracts—
All-in sustaining costs72
Adjusted for non-controlling interests and non -gold producing companies(1)
—
All-in sustaining costs adjusted for non-controlling interests and non-gold producing companies73
All-in sustaining costs72
Non-sustaining project capital expenditure(1)
Lease payment non sustaining—
Technology improvements—
Non-sustaining exploration and study costs1
Care and maintenance—
Corporate and social responsibility costs not related to current operations6
Other provisions(1)
All-in costs79
Adjusted for non-controlling interests and non -gold producing companies(1)
—
All-in costs adjusted for non-controlling interests and non-gold producing companies79
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. Other consists of heap leach inventory.
(2)
Attributable portion.
(3)
In addition to the operational performances of the mines, all-in sustaining cost per ounce, all-in cost per ounce 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”.

5B.    LIQUIDITY AND CAPITAL RESOURCES
Rounding of figures may result in computational discrepancies.


For the year ended 31 December 2018
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(1)
Inventory change(1)
Amortisation of intangible assets(6)
Amortisation of tangible assets3
Rehabilitation and other non-cash costs—
Retrenchment costs(1)
Total cash costs net of by-product revenue(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(7)
Gold produced – oz (000)(2)
—
Total cash costs per unit – $/oz(3)
—

For the year ended 31 December 2018
Operations in Continental Africa (DRC, Ghana, Guinea, Mali and Tanzania)
(in $ millions, except as otherwise noted)
 DRC MaliJoint Ghana GuineaTanzania Continental Africa other
 Subsidiaries
 Kibali
 Morila
 Sadiola
Ventures Iduapriem
 Obuasi
 Siguiri
Geita
  
All-in sustaining costs                 
Cost of sales per segmental information(5)
373
 42
 65
480
 233
 (6) 286
612
 2
 1,127
By-product revenue(1) —
 —
(1) —
 —
 —
(2) —
 (2)
Amortisation of tangible and intangible assets(149) (7) (9)(165) (29) —
 (38)(144) (3) (214)
Adjusted for decommissioning and inventory amortisation1
 3
 —
4
 —
 —
 2
2
 —
 4
Lease payment sustaining—
 —
 —
—
 —
 —
 —
—
 —
 —
Corporate administration and marketing related to current operations—
 —
 —
—
 —
 —
 —
—
 —
 —
Inventory writedown to net realisable value and other stockpile adjustments—
 —
 —
—
 —
 —
 —
—
 —
 —
Sustaining exploration and study costs—
 —
 —
—
 1
 —
 7
8
 —
 16
Total sustaining capital expenditure54
 2
 —
56
 43
 —
 11
59
 —
 113
Amortisation relating to inventory—
 —
 —
—
 —
 —
 —
—
 —
 —
Realised other commodity contracts—
 —
 —
—
 —
 —
 —
—
 —
 —
All-in sustaining costs278
 40
 56
374
 248
 (6) 267
535
 —
 1,044
Adjusted for non-controlling interests and non -gold producing companies(1)
—
 —
 —
—
 —
 —
 (40)—
 —
 (40)
All-in sustaining costs adjusted for non-controlling interests and non-gold producing companies278
 40
 56
374
 248
 (6) 227
535
 —
 1,004
All-in sustaining costs278
 40
 56
374
 248
 (6) 267
535
 —
 1,044
Non-sustaining project capital expenditure10
 —
 1
11
 —
 48
 85
—
 —
 133
Lease payment non sustaining—
 —
 —
—
 —
 —
 —
—
 —
 —
Technology improvements—
 —
 —
—
 —
 —
 —
—
 —
 —
Non-sustaining exploration and study costs1
 —
 —
1
 —
 1
 10
—
 —
 11
Care and maintenance costs—
 —
 —
—
 —
 39
 —
—
 —
 39
Corporate and social responsibility costs not related to current operations—
 —
 —
—
 —
 —
 —
—
 —
 —
Other provisions—
 —
 —
—
 —
 —
 —
—
 —
 —
All-in costs289
 40
 57
386
 248
 82
 362
535
 —
 1,227
Adjusted for non-controlling interests and non -gold producing companies(1)
—
 —
 —
—
 —
 —
 (54)—
 —
 (54)
All-in costs adjusted for non-controlling interests and non-gold producing companies289
 40
 57
386
 248
 82
 308
535
 —
 1,173
Gold sold – oz (000)(2)
370
 30
 58
459
 254
 —
 244
568
 —
 1,066
All-in sustaining cost per unit – $/oz(3)
752
 1,321
 990
820
 977
 —
 930
940
 —
 941
All-in cost per unit – $/oz(3)
782
 1,321
 1,005
846
 977
 —
 1,261
940
 —
 1,099

For the year ended 31 December 2018
Operations in Continental Africa (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
  
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 intangible assets—
 —
 —
 —
 —
 —
 —
 —
 —
 —
Amortisation of tangible assets(149) (7) (9) (165) (29) —
 (38) (144) (3) (214)
Rehabilitation and other non-cash costs(1) (1) —
 (2) —
 6
 (5) (10) —
 (8)
Retrenchment costs—
 —
 (2) (2) —
 —
 —
 —
 —
 —
Total cash costs net of by-product revenue219
 34
 55
 308
 204
 —
 240
 454
 —
 898
Adjusted for non-controlling interests, non-gold producing companies and other(1)
—
 —
 —
 —
 —
 —
 (36) —
 —
 (36)
Total cash costs net of by-product revenue adjusted for non-controlling interests and non-gold producing companies219
 34
 55
 308
 204
 —
 204
 454
 —
 862
Gold produced - oz (000) (2)
363
 30
 59
 452
 254
 —
 242
 564
 —
 1,060
Total cash costs per unit - $/oz(3)
600
 1,145
 938
 680
 804
 —
 844
 804
 —
 813

For the year ended 31 December 2018
Operations in Australia and the Americas (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)
310
 293
 18
 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) —
 (192)
Adjusted for decommissioning and inventory amortisation1
 1
 —
 2
 (3) (6) (2) (1) (11)
Lease payment sustaining—
 —
 —
 —
 —
 —
 —
 —
 —
Corporate administration and marketing related to current operations—
 —
 —
 —
 —
 —
 —
 —
 —
Inventory writedown to net realisable value and other stockpile adjustments—
 —
 —
 —
 —
 —
 —
 —
 —
Sustaining exploration and study costs7
 5
 —
 12
 2
 4
 4
 —
 10
Total sustaining capital expenditure79
 74
 2
 154
 36
 96
 35
 9
 176
Amortisation relating to inventory—
 —
 —
 —
 —
 —
 —
 —
 —
Realised other commodity contracts—
 —
 —
 —
 —
 —
 —
 (5) (5)
All-in sustaining costs346
 279
 15
 639
 199
 360
 124
 5
 688
Adjusted for non-controlling interests and non -gold producing companies(1)
—
 —
 —
 —
 (15) —
 —
 (9) (24)
All-in sustaining costs adjusted for non-controlling interests and non-gold producing companies346
 279
 15
 639
 184
 360
 124
 (4) 664
All-in sustaining costs346
 279
 15
 639
 199
 360
 124
 5
 688
Non-sustaining project capital expenditure—
 2
 —
 2
 —
 —
 —
 —
 —
Lease payment non sustaining—
 —
 —
 —
 —
 —
 —
 —
 —
Technology improvements—
 —
 —
 —
 —
 —
 —
 —
 —
Non-sustaining exploration and study costs—
 —
 18
 18
 —
 2
 —
 34
 36
Care and maintenance—
 —
 —
 —
 —
 —
 —
 —
 —
Corporate and social responsibility costs not related to current operations—
 —
 —
 —
 2
 12
 3
 (1) 16
Other provisions—
 —
 —
 —
 —
 —
 —
 —
 —
All-in costs346
 281
 32
 659
 201
 374
 127
 38
 740
Adjusted for non-controlling interests and non -gold producing companies(1)
—
 —
 —
 —
 (15) —
 —
 —
 (15)
All-in costs adjusted for non-controlling interests and non-gold producing companies346
 281
 33
 659
 186
 374
 127
 38
 725
Gold sold – oz (000)(2)
283
 332
 —
 615
 282
 370
 131
 —
 783
All-in sustaining cost per unit – $/oz(3)
1,223
 843
 —
 1,038
 652
 973
 945
 —
 855
All-in cost per unit – $/oz(3)
1,223
 848
 —
 1,070
 656
 1,015
 965
 —
 932

For the year ended 31 December 2018
Operations in Australia and the Americas (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)
310
 293
 19
 622
 325
 382
 129
 2
 838
By-product revenue—
 (2) —
 (2) (111) (17) —
 —
 (128)
Inventory change7
 5
 —
 12
 (7) (6) (3) —
 (16)
Amortisation of intangible assets—
 —
 —
 —
 —
 —
 —
 —
 —
Amortisation of tangible assets(51) (92) (6) (149) (50) (99) (42) (1) (192)
Rehabilitation and other non-cash costs—
 (5) (1) (6) (10) 4
 2
 —
 (4)
Retrenchment costs—
 —
 —
 —
 (2) (1) —
 —
 (3)
Total cash costs net of by-product revenue266
 199
 12
 477
 145
 263
 86
 1
 495
Adjusted for non-controlling interests, non-gold producing companies and other(1)
—
 —
 —
 —
 (11) —
 —
 —
 (11)
Total cash costs net of by-product revenue adjusted for non-controlling interests and non-gold producing companies266
 199
 12
 477
 134
 263
 86
 1
 484
Gold produced – oz (000) (2)
289
 336
 —
 625
 282
 364
 130
 —
 776
Total cash costs per unit – $/oz(3)
920
 594
 —
 762
 476
 723
 660
 —
 624

For the year ended 31 December 2018
AngloGold Ashanti operations – Total
(from continuing operations - in $ millions, except as otherwise noted)
 JOINT VENTURES
SUBSIDIARIES
All-in sustaining costs  
Cost of sales per segmental information(5)
480
2,584
By-product revenue(1)(133)
Amortisation of tangible and intangible assets(165)(558)
Adjusted for decommissioning and inventory amortisation4
(5)
Lease payment sustaining—
—
Corporate administration and marketing related to current operations—
76
Inventory writedown to net realisable value and other stockpile adjustments—
—
Sustaining exploration and study costs—
38
Total sustaining capital expenditure56
445
Amortisation relating to inventory—
—
Realised other commodity contracts—
(5)
All-in sustaining costs374
2,443
Adjusted for non-controlling interests and non-gold producing companies(1)
—
(64)
All-in sustaining costs adjusted for non-controlling interests and non-gold producing companies374
2,379
All-in sustaining costs374
2,443
Non-sustaining project capital expenditure11
133
Lease payment non sustaining—
—
Technology improvements—
—
Non-sustaining exploration and study costs1
65
Care and maintenance costs—
39
Corporate and social responsibility costs not related to current operations—
22
Other provisions—
(1)
All-in costs386
2,702
Adjusted for non-controlling interests and non-gold producing companies(1)
—
(69)
All-in costs adjusted for non-controlling interests and non-gold producing companies386
2,634
Gold sold – oz (000)(2)
459
2,463
All-in sustaining cost per unit – $/oz(3)
820
970
All-in cost per unit – $/oz(3)
846
1,075

For the year ended 31 December 2018
AngloGold Ashanti operations – Total
(from continuing operations - in $ millions, except as otherwise noted)
 JOINT VENTURES
SUBSIDIARIES
Total cash costs  
Cost of sales per segmental information(5)
480
2,584
By-product revenue(1)(133)
Inventory change(2)(9)
Amortisation of intangible assets—
(5)
Amortisation of tangible assets(165)(553)
Rehabilitation and other non-cash costs(2)(17)
Retrenchment costs(2)(4)
Total cash costs net of by-product revenue308
1,863
Adjusted for non-controlling interests, non-gold producing companies and other(1)
—
(47)
Total cash costs net of by product revenue adjusted for non-controlling interests and non-gold producing companies308
1,816
Gold produced – oz (000)(2)
452
2,460
Total cash costs (adjusted) per unit – $/oz(3)
680
743

For the year ended 31 December 2017
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—
Amortisation of tangible and intangible assets(3)
Adjusted for decommissioning and inventory amortisation(2)
Lease payment sustaining—
Corporate administration and marketing related to current operations64
Inventory writedown to net realisable value and other stockpile adjustments1
Sustaining exploration and study costs(12)
Total sustaining capital expenditure2
Amortisation relating to inventory—
Realised other commodity contracts—
All-in sustaining costs46
Adjusted for non-controlling interests and non -gold producing companies(1)
4
All-in sustaining costs adjusted for non-controlling interests and non-gold producing companies53
All-in sustaining costs46
Non-sustaining project capital expenditure—
Lease payment non sustaining—
Technology improvements—
Non-sustaining exploration and study costs14
Care and maintenance—
Corporate and social responsibility costs not related to current operations8
Other provisions3
All-in costs68
Adjusted for non-controlling interests and non -gold producing companies(1)
4
All-in costs adjusted for non-controlling interests and non-gold producing companies73
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. Other consists of heap leach inventory.
(2)
Attributable portion.
(3)
In addition to the operational performances of the mines, all-in sustaining cost per ounce, all-in cost per ounce, total cash costs per ounce per ounce are affected by fluctuations in the currency exchange rate. AngloGold Ashanti reports all-in sustaining cost per ounce and all-in cost per ounce calculated to the nearest US dollar amount and gold sold in ounces. AngloGold Ashanti reports total cash costs per ounce calculated to the nearest US dollar amount and gold produced in ounces.
(4)
Corporate includes non-gold producing subsidiaries.
(5)
Refer to “Item 18: Financial Statements - Note 2 - Segmental Information”.

Rounding of figures may result in computational discrepancies.



For the year ended 31 December 2017
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 change1
Amortisation of intangible assets(1)
Amortisation of tangible assets(3)
Rehabilitation and other non-cash costs1
Retrenchment costs—
Total cash costs net of by-product revenue(6)
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(1)
Gold produced - oz (000) (2)
—
Total cash costs (adjusted) per unit – $/oz(3)
—

For the year ended 31 December 2017
Operations in Continental Africa (DRC, Ghana, Guinea, Mali and Tanzania)
(in $ millions, except as otherwise noted)
 DRC MaliJoint Ghana Guinea Tanzania Continental Africa other
 Subsidiaries
 Kibali
 Morila
 Sadiola
Ventures Iduapriem
 Obuasi
 Siguiri
 Geita
  
All-in sustaining costs                  
Cost of sales per segmental information(5)
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
Lease payment sustaining—
 —
 —
—
 —
 —
 —
 —
 —
 —
Corporate administration and marketing related to current operations—
 —
 —
—
 —
 —
 —
 —
 —
 —
Inventory writedown to net realisable value and other stockpile adjustments—
 —
 —
—
 —
 —
 —
 —
 —
 —
Sustaining exploration and study costs—
 —
 1
1
 —
 —
 8
 17
 —
 25
Total sustaining capital expenditure77
 2
 6
85
 51
 —
 15
 156
 1
 223
Amortisation relating to inventory—
 —
 —
—
 —
 —
 —
 —
 —
 —
Realised other commodity contracts—
 —
 —
—
 —
 —
 —
 —
 —
 —
All-in sustaining costs296
 33
 64
393
 234
 (6) 311
 497
 2
 1,037
Adjusted for non-controlling interests and non -gold producing companies(1)
—
 —
 —
—
 —
 —
 (47) —
 —
 (47)
All-in sustaining costs adjusted for non-controlling interests and non-gold producing companies296
 33
 64
393
 234
 (6) 264
 497
 2
 990
All-in sustaining costs296
 33
 64
393
 234
 (6) 311
 497
 2
 1,037
Non-sustaining project capital expenditure34
 —
 1
35
 —
 —
 67
 —
 —
 67
Lease payment non sustaining—
 —
 —
—
 —
 —
 —
 —
 —
 —
Technology improvements—
 —
 —
—
 —
 —
 —
 —
 —
 —
Non-sustaining exploration and study costs1
 —
 —
1
 —
 1
 —
 —
 —
 1
Care and maintenance costs—
 —
 —
—
 —
 62
 —
 —
 —
 62
Corporate and social responsibility costs not related to current operations—
 —
 —
—
 —
 —
 —
 —
 —
 —
Other provisions—
 —
 —
—
 —
 —
 —
 —
 —
 —
All-in costs331
 33
 65
429
 234
 57
 378
 497
 2
 1,167
Adjusted for non-controlling interests and non -gold producing companies(1)
—
 —
 —
—
 —
 —
 (57) —
 —
 (57)
All-in costs adjusted for non-controlling interests and non-gold producing companies331
 33
 65
429
 234
 57
 321
 497
 2
 1,110
Gold sold - oz (000)(2)
272
 27
 63
362
 227
 3
 332
 528
 —
 1,090
All-in sustaining cost per unit – $/oz(3)
1,090
 1,218
 1,019
1,087
 1,033
 —
 796
 941
 —
 909
All-in cost per unit – $/oz(3)
1,216
 1,218
 1,044
1,186
 1,033
 —
 967
 941
 —
 1,019




For the year ended 31 December 2017
Operations in Continental Africa (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
  
Total 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) 6
 7
 (5) (7) 2
 2
Retrenchment costs—
 —
 —
 —
 —
 —
 —
 —
 —
 —
Total cash costs net of by-product revenue210
 27
 58
 295
 187
 —
 275
 328
 4
 793
Adjusted for non-controlling interests, non-gold producing companies and other(1)
—
 —
 —
 —
 —
 —
 (41) —
 —
 (41)
Total cash costs net of by-product revenue adjusted for non-controlling interests and non-gold producing companies210
 27
 58
 295
 187
 —
 234
 328
 4
 752
Gold produced - oz (000) (2)
268
 28
 63
 360
 228
 3
 323
 539
 —
 1,093
Total cash costs per unit - $/oz(3)
784
 974
 900
 819
 823
 —
 725
 608
 —
 688

For the year ended 31 December 2017
Operations in Australia and the Americas (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)
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) —
 —
 —
Lease payment sustaining—
 —
 —
 —
 —
 —
 —
 —
 —
Corporate administration and marketing related to current operations—
 —
 —
 —
 —
 1
 —
 —
 1
Inventory writedown to net realisable value and other stockpile adjustments—
 —
 1
 1
 —
 —
 —
 —
 —
Sustaining exploration and study costs2
 7
 5
 14
 3
 8
 6
 7
 24
Total sustaining capital expenditure62
 91
 —
 153
 56
 134
 38
 4
 232
Amortisation relating to inventory—
 —
 —
 —
 —
 —
 —
 —
 —
Realised other commodity contracts—
 —
 —
 —
 —
 —
 —
 —
 —
All-in sustaining costs290
 284
 14
 588
 245
 431
 147
 14
 836
Adjusted for non-controlling interests and non -gold producing companies(1)
—
 —
 8
 8
 (18) —
 —
 (11) (29)
All-in sustaining costs adjusted for non-controlling interests and non-gold producing companies290
 284
 22
 596
 227
 431
 147
 3
 807
All-in sustaining costs290
 284
 14
 588
 245
 431
 147
 14
 836
Non-sustaining project capital expenditure—
 —
 —
 —
 —
 2
 —
 —
 2
Lease payment non sustaining—
 —
 —
 —
 —
 —
 —
 —
 —
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
Other provisions—
 —
 —
 —
 —
 —
 —
 —
 —
All-in costs290
 284
 24
 598
 247
 452
 149
 42
 890
Adjusted for non-controlling interests and non -gold producing companies(1)
—
 —
 8
 8
 (19) —
 —
 (1) (19)
All-in costs adjusted for non-controlling interests and non-gold producing companies290
 284
 32
 606
 228
 452
 149
 42
 871
Gold sold - oz (000)(2)
241
 321
 —
 562
 293
 428
 133
 —
 854
All-in sustaining cost per unit - $/oz(3)
1,203
 885
 —
 1,062
 772
 1,006
 1,103
 —
 943
All-in cost per unit - $/oz(3)
1,203
 885
 —
 1,080
 780
 1,055
 1,119
 —
 1,018

For the year ended 31 December 2017
Operations in Australia and the Americas (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)
260
 276
 15
 551
 385
 447
 153
 3
 987
By-product revenue—
 (2) —
 (2) (117) (18) —
 —
 (135)
Inventory change(2) (2) —
 (4) (12) (3) —
 —
 (15)
Amortisation of intangible assets—
 —
 —
 —
 —
 (1) —
 —
 (1)
Amortisation of tangible assets(34) (89) (7) (130) (83) (139) (50) —
 (272)
Rehabilitation and other non-cash costs(5) (2) (2) (9) (11) —
 —
 —
 (11)
Retrenchment costs—
 —
 —
 —
 (2) (3) (1) —
 (5)
Total cash costs net of by-product revenue219
 181
 6
 406
 160
 284
 101
 3
 548
Adjusted for non-controlling interests, non-gold producing companies and other(1)
—
 —
 8
 8
 (12) —
 —
 —
 (12)
Total cash costs net of by-product revenue adjusted for non-controlling interests and non-gold producing companies219
 181
 14
 414
 148
 284
 101
 3
 536
Gold produced - oz (000) (2)
238
 322
 —
 559
 283
 424
 133
 —
 840
Total cash costs per unit - $/oz(3)
919
 564
 —
 743
 522
 671
 764
 —
 638

For the year ended 31 December 2017
AngloGold Ashanti operations – Total
(from continuing operations - in $ millions, except as otherwise noted)
 JOINT VENTURES
SUBSIDIARIES
All-in sustaining costs  
Cost of sales per segmental information(5)
441
2,607
By-product revenue(1)(139)
Amortisation of tangible and intangible assets(136)(691)
Adjusted for decommissioning and inventory amortisation3
4
Lease payment sustaining—
—
Corporate administration and marketing related to current operations—
64
Inventory writedown to net realisable value and other stockpile adjustments—
2
Sustaining exploration and study costs1
51
Total sustaining capital expenditure85
610
Amortisation relating to inventory—
—
Realised other commodity contracts—
—
All-in sustaining costs393
2,508
Adjusted for non-controlling interests and non-gold producing companies(1)
—
(63)
All-in sustaining costs adjusted for non-controlling interests and non-gold producing companies393
2,445
All-in sustaining costs393
2,508
Non-sustaining project capital expenditure35
69
Lease payment non sustaining—
—
Technology improvements—
—
Non-sustaining exploration and study costs1
62
Care and maintenance costs—
62
Care and maintenance costs, Corporate and social responsibility costs not related to current operations—
23
Other provisions—
3
All-in costs429
2,724
Adjusted for non-controlling interests and non-gold producing companies(1)
—
(63)
All-in costs adjusted for non-controlling interests and non-gold producing companies429
2,660
Gold sold - oz (000)(2)
362
2,506
All-in sustaining cost per unit - $/oz(3)
1,087
975
All-in cost per unit - $/oz(3)
1,186
1,062

















For the year ended 31 December 2017
AngloGold Ashanti operations - Total
(from continuing operations - in $ millions, except as otherwise noted)
 JOINT VENTURES
SUBSIDIARIES
Total cash costs  
Cost of sales per segmental information(5)
441
2,607
By-product revenue(1)(139)
Inventory change(3)(13)
Amortisation of intangible assets—
(5)
Amortisation of tangible assets(136)(686)
Rehabilitation and other non-cash costs(6)(16)
Retrenchment costs—
(6)
Total cash costs net of by-product revenue295
1,742
Adjusted for non-controlling interests, non-gold producing companies and other(1)
—
(41)
Total cash costs net of by-product revenue adjusted for non-controlling interests and non-gold producing companies295
1,701
Gold produced - oz (000)(2)
360
2,492
Total cash costs (adjusted) per unit - $/oz(3)
819
683

Tables provided for information purposes for reconciliation of Non-GAAP to GAAP metrics (South African operations)
For the year ended 31 December 2019
Operations in South Africa
(in $ millions, except as otherwise noted)
 Kopanang
 Moab Khotsong 
Vaal River
Operations

 Mponeng
 West Wits Operations
 Surface Operations
 South Africa other
 Total South Africa (Operations)
Total cash costs               
Cost of sales per segmental information(3)
—
 —
 —
 287
 287
 189
 3
 479
By-product revenue—
 —
 —
 —
 —
 —
 —
 (1)
Inventory change—
 —
 —
 3
 3
 (1) —
 2
Amortisation of intangible assets—
 —
 —
 —
 —
 —
 —
 —
Amortisation of tangible and intangible assets—
 —
 —
 (47) (47) (13) (1) (61)
Rehabilitation and other non-cash costs—
 —
 —
 (2) (2) (2) (2) (6)
Retrenchment costs—
 —
 —
 (2) (2) —
 —
 (2)
Total cash costs net of by-product revenue—
 —
 —
 239
 239
 173
 —
 411
Gold produced - oz (000)(1)
—
 —
 —
 244
 244
 175
 —
 419
Total cash costs per unit -
$/oz(2)
—
 —
 —
 976
 976
 987
 —
 981
(1)
Attributable portion (excluding pre-production ounces).
(2)
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.
(3)
Refer Item 18: Note 2 - Segmental Information.


Rounding of figures may result in computational differences.



For the year ended 31 December 2019
Operations in South Africa
(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(3)
 287
  287
 189
 3
 479
By-product revenue —
  —
 —
 —
 (1)
Amortisation of tangible and intangible assets (47)  (47) (13) (1) (61)
Adjusted for decommissioning and inventory amortisation —
  —
 —
 —
 1
Corporate administration and marketing related to current operations —
  —
 —
 —
 —
Inventory writedown to net realisable value and other stockpile adjustments —
  —
 (3) (3) (6)
Sustaining exploration and study costs —
  —
 —
 —
 —
Total sustaining capital expenditure 47
  47
 7
 3
 57
Realised other commodity contracts —
  —
 —
 —
 —
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
Lease Payment non-sustaining    —
 —
 —
  
Technology improvements —
  —
 —
 —
 —
Non-sustaining exploration and study costs —
  —
 —
 —
 —
Care and maintenance —
  —
 —
 42
 42
Corporate and social responsibility costs not related to current operations —
  —
 —
 —
 —
Other provisions —
  —
 —
 —
 —
All-in costs 289

 289

180

44

513
Gold sold - oz (000)(1)
 242
  242
 172
 —
 414
All-in sustaining cost (excluding stockpile write-offs) per unit - $/oz(2)
 1,186
  1,187
 1,043
 —
 1,132
All-in cost per unit (excluding stockpile write-offs) - $/oz(2)
 1,197
  1,198
 1,043
 —
 1,240
(1)
Attributable portion (excluding pre-production ounces).
(2)
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.
(3)
Refer Item 18: Note 2 - Segmental Information.


Rounding of figures may result in computational differences.


For the year ended 31 December 2018
Operations in South Africa
(in $ millions, except as otherwise noted)
 Kopanang
 Moab Khotsong
 
Vaal River
Operations

 Mponeng
 West Wits Operations
 Surface Operations South Africa other Total South Africa (Operations)
All-in sustaining costs               
Cost of sales per segmental information(3)
29
 48
 77
 320
 320
 193
 —
 590
By-product revenue(2) (4) (6) —
 —
 —
 —
 (6)
Amortisation of tangible and intangible assets—
 —
 —
 (57) (57) (15) —
 (72)
Adjusted for decommissioning and inventory amortisation—
 —
 —
 —
 —
 (3) —
 (3)
Inventory writedown to net realisable value and other stockpile adjustments—
 —
 —
 —
 —
 —
 1
 1
Total sustaining capital expenditure—
 7
 7
 49
 49
 12
 —
 68
Realised other commodity contracts—
 —
 —
 —
 —
 —
 —
 —
All-in sustaining costs27
 51
 78
 312
 312
 187
 1
 578
All-in sustaining costs27
 51
 78
 312
 312
 187
 1
 578
Non-sustaining project capital expenditure—
 —
 —
 5
 5
 —
 —
 5
Technology improvements—
 —
 —
 —
 —
 —
 4
 4
Care and maintenance—
 —
 —
 —
 —
 —
 35
 35
All-in costs27
 51
 78
 317
 317
 187
 40
 622
Gold sold - oz (000)(1)
13
 41
 53
 265
 265
 171
 —
 490
All-in sustaining cost (excluding stockpile write-offs) per unit - $/oz(2)
2,115
 1,247
 1,452
 1,177
 1,177
 1,094
 —
 1,178
All-in cost per unit (excluding stockpile write-offs) - $/oz(2)
2,115
 1,247
 1,452
 1,196
 1,196
 1,094
 —
 1,268
(1)
Attributable portion (excluding pre-production ounces).
(2)
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.
(3)
Refer Item 18: Note 2 - Segmental Information.


Rounding of figures may result in computational differences.

For the year ended 31 December 2018
Operations in South Africa
(in $ millions, except as otherwise noted)
 Kopanang
 Moab Khotsong
 
Vaal River
Operations

 Mponeng
 West Wits Operations Surface Operations
 South Africa other
 Total South Africa (Operations)
Total cash costs               
Cost of sales per segmental information(3)
29
 48
 77
 320
 320
 193
 —
 590
By-product revenue(2) (4) (6) —
 —
 —
 —
 (6)
Inventory change—
 (1) (1) —
 —
 (4) —
 (5)
Amortisation of intangible assets—
 —
 —
 —
 —
 —
 —
 —
Amortisation of tangible and intangible assets—
 —
 —
 (57))(57) (15) —
 (72)
Rehabilitation and other non-cash costs(2) (1) (3) (4))(4) 2
 2
 (3)
Retrenchment costs—
 —
 —
 —
 —
 —
 —
 —
Total cash costs net of by-product revenue25
 42
 67
 259
 259
 176
 2
 504
Gold produced - oz (000)(1)
12
 39
 51
 265
 265
 171
 —
 487
Total cash costs per unit -
$/oz(2)
2,002
 1,083
 1,304
 977
 983
 1,030
 —
 1,033
(1)
Attributable portion (excluding pre-production ounces).
(2)
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.
(3)
Refer Item 18: Note 2 - Segmental Information.

Rounding of figures may result in computational differences.



For the year ended 31 December 2017
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)
All-in sustaining costs                 
Cost of sales per segmental information(3)
152
 284
 435
 284
 207
 491
 204
 (1) 1,129
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)
Adjusted for decommissioning and inventory amortisation—
 —
 —
 —
 —
 —
 (2) 2
 —
Corporate administration and marketing related to current operations—
 —
 —
 —
 —
 —
 —
 —
 —
Inventory writedown to net realisable value and other stockpile adjustments—
 —
 —
 —
 —
 —
 —
 2
 2
Sustaining exploration and study costs—
 —
 —
 —
 —
 —
 —
 —
 —
Total sustaining capital expenditure8
 42
 50
 52
 12
 64
 13
 3
 130
All-in sustaining costs146
 276
 421
 282
 205
 487
 200
 5
 1,113
All-in sustaining costs146
 276
 421
 282
 205
 487
 200
 5
 1,113
Non-sustaining project capital expenditure—
 —
 —
 20
 —
 20
 —
 —
 20
Technology improvements—
 —
 —
 —
 —
 —
 —
 9
 9
Non-sustaining exploration and study costs—
 —
 —
 —
 —
 —
 —
 —
 —
Care and maintenance—
 —
 —
 —
 —
 —
 —
 —
 —
Corporate and social responsibility costs not related to current operations—
 —
 —
 —
 —
 —
 —
 —
 —
All-in costs146
 276
 421
 302
 205
 507
 200
 14
 1,142
Gold sold - oz (000)(1)
91
 294
 385
 224
 91
 316
 192
 —
 892
All-in sustaining cost (excluding stockpile write-offs) per unit - $/oz(2)
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(2)
1,593
 939
 1,094
 1,349
 2,242
 1,607
 1,045
 —
 1,278
(1)
Attributable portion (excluding pre-production ounces).
(2)
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.
(3)
Refer Item 18: Note 2 - Segmental Information.


Rounding of figures may result in computational discrepancies.




For the year ended 31 December 2017
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)
Total cash costs                 
Cost of sales per segmental information(3)
152
 284
 435
 284
 207
 491
 204
 (1) 1,129
By-product revenue(5) (9) (14) (1) —
 (1) (1) —
 (15)
Inventory change—
 —
 1
 —
 —
 —
 (2) —
 (2)
Amortisation of intangible assets—
 (1) (1) (1) —
 (1) —
 —
 (2)
Amortisation of tangible assets(9) (40) (49) (52) (14) (67) (14) (1) (131)
Rehabilitation and other non-cash costs3
 (5) (3) (3) (6) (9) (1) —
 (12)
Retrenchment costs—
 —
 —
 —
 —
 —
 —
 —
 —
Total cash costs net of by-product revenue140
 229
 369
 227
 186
 413
 186
 (2) 967
Gold produced - oz (000) (1)
91
 294
 386
 224
 91
 315
 192
 —
 892
Total cash costs per unit -
$/oz(2)
1,534
 779
 958
 1,014
 2,044
 1,311
 969
 —
 1,085
(1)
Attributable portion (excluding pre-production ounces).
(2)
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.
(3)
Refer Item 18: Note 2 - Segmental Information.


Rounding of figures may result in computational differences.


5B.LIQUIDITY AND CAPITAL RESOURCES


In the board’s opinion, AngloGold Ashanti’s working capital is sufficient to meet the company’s present requirements.


Comparison of cash flows in 2021 with 2020

Cash flows from operating activities


Comparison ofCash flows from operating activities from continuing operations were $1,268 million in 20192021, $277 million, or 18 percent, lower than the 2020 amount of $1,545 million. The decrease in cash flows from 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 2018an 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 $958also 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 2019, $1022020 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 1217 percent, from $23 million at 31 December 2020 to $19 million at 31 December 2021. In addition, Cerro Vanguardia’s cash balance increased by $2 million (equivalent), or one percent, from $137 million (equivalent) at 31 December 2020 to $139 million (equivalent) at 31 December 2021. While the approval of the Argentinean Central Bank to purchase US dollars to distribute an offshore dividend to AngloGold Ashanti is pending, the cash remains fully available for Cerro Vanguardia’s operational requirements. See “Item 4B: Business Overview—The Regulatory Environment Enabling AngloGold Ashanti to Mine—Americas—Argentina”.

Dividends received from joint ventures increased by $83 million, or 56 percent, from $148 million in 2020 to $231 million in 2021. In this connection, cash flows from operating activities were impacted by the level of cash repatriation from, and movements in the VAT lock-up at, the Kibali joint venture in the DRC. In 2021, AngloGold Ashanti’s cumulative cash receipts from the Kibali joint venture, in the form of dividends from Kibali (Jersey) Limited, amounted to $231 million. Kibali (Jersey) Limited received such cash from Kibali Goldmines S.A. in the form of loan repayments (AngloGold Ashanti’s attributable share: $150 million) and dividends (net of withholding taxes) (AngloGold Ashanti’s attributable share: $81 million). AngloGold Ashanti’s attributable share of the outstanding cash balances awaiting repatriation from the DRC increased by $75 million, or 18 percent, from $424 million at 31 December 2020 to $499 million at 31 December 2021. The cash is fully available for the operational requirements of Kibali Goldmines S.A. In addition, Kibali Goldmines S.A. is due certain refunds of VAT which, to date, remain outstanding. During 2021, AngloGold Ashanti did not recover any VAT offsets and refunds from its operations in the DRC. AngloGold Ashanti’s attributable share of the net recoverable VAT balance (including recoverable fuel duty and after discounting provisions) owed to AngloGold Ashanti by the DRC government increased by $4 million, or six percent, from $69 million at 31 December 2020 to $73 million at 31 December 2021. See “Item 4B: Business Overview—The Regulatory Environment Enabling AngloGold Ashanti to Mine—Africa—Democratic Republic of the Congo (DRC)”.

Net taxation paid decreased by $115 million, or 36 percent, from $431 million in 2020 to $316 million in 2021. The decrease in net taxation paid was mainly due to lower profit before taxation in Ghana, Australia, Brazil, Argentina and Tanzania.

Cash flows from operating activities from discontinued operations were nil in 2021, compared to a net cash inflow of $109 million in 2020.

Cash flows from investing activities

Cash flows from investing activities from continuing operations amounted to a net outflow of $940 million in 2021, $492 million or 110 percent, higher than 2020 outflow of $448 million. The increase in outflow from continuing operations was largely due to higher capital expenditure of $326 million, or 47 percent, from $701 million in 2020 to $1,027 million in 2021 mainly due to increased conversion of Mineral Reserve, waste stripping at open pit mines and improved rates of underground development, and the transition of our TSFs in Brazil to dry-stacked structures to comply with new legal requirements, as well as proceeds from the disposals in 2020 of the South African assets of $200 million and certain joint ventures (Sadiola and Morila) of $26 million not being repeated in 2021. The increase in outflows was partly offset by the disposal of certain assets in Brazil and higher interest receipts in Argentina due to higher cash and cash equivalent balances in 2021.




238

Cash flows from investing activities from discontinued operations were nil in 2021, compared to a net cash outflow of $31 million in 2020.

Cash flows from financing activities

Cash flows from financing activities from continuing operations in 2021 amounted to a net outflow of $456 million, which is a change of $127 million from an outflow of $329 million in 2020. The increase in outflow was mainly due to an increase in dividends paid, partly offset by lower net repayment of borrowings.

Cash inflows from proceeds from borrowings decreased by $1,404 million from $2,226 million in 2020 to $822 million in 2021. In 2020, AngloGold Ashanti fully drew on the $1.4 billion multi-currency revolving credit facility in March 2020 and AngloGold Ashanti Holdings plc issued, at the start of October 2020, $700 million aggregate principal amount of 3.750% notes due 2030, which are fully and unconditionally guaranteed by AngloGold Ashanti Limited. In 2021, AngloGold Ashanti Holdings plc issued, at the end of October 2021, $750 million aggregate principal amount of 3.375% notes due 2028, which are fully and unconditionally guaranteed by AngloGold Ashanti Limited.

Cash outflows from repayment of borrowings decreased by $1,490 million from $2,310 million in 2020 to $820 million in 2021. In 2020, AngloGold Ashanti Holdings plc repaid, at maturity in April 2020, its $700 million aggregate principal amount of 5.375% notes due 2020 and AngloGold Ashanti repaid the fully drawn $1.4 billion multi-currency revolving credit facility in October 2020. In 2021, AngloGold Ashanti Holdings plc repurchased its $750 million aggregate principal amount of 5.125% notes due 2022 by way of a tender offer in October 2021 followed by a redemption in November 2021.

Finance costs paid increased by $2 million from $118 million in 2020 to $120 million in 2021. The increase was mainly due to lower interest capitalised against the Obuasi redevelopment project and higher lease liabilities.

Other borrowing costs increased by $2 million from $33 million in 2020 to $35 million in 2021. The other borrowing costs paid in 2021 were for the underwriting fees of AngloGold Ashanti Holdings plc’s new $750 million aggregate principal amount of 3.375% notes due 2028 as well as the tender offer premium and redemption premium costs of AngloGold Ashanti Holdings plc’s previous $750 million aggregate principal amount of 5.125% notes due 2022. The other borrowing costs paid in 2020 included the costs of AngloGold Ashanti’s $1.0 standby credit facility and the underwriting fees of AngloGold Ashanti Holdings plc’s $700 million aggregate principal amount of 3.750% notes due 2030.

Dividends paid increased by $193 million from $47 million in 2020 to $240 million in 2021. Dividends paid to non-controlling interests increased by $7 million from $9 million in 2020 to $16 million in 2021. These dividends were paid by our non-wholly owned subsidiaries CVSA and Siguiri to their respective non-AGA related shareholders. During 2021, the company declared and paid a dividend of $224 million to its shareholders, compared to $38 million in 2020.

Cash flows from financing activities from discontinued operations were nil in 2020 and 2021.

Comparison of cash flows in 2020 with 2019

Cash flows from operating activities

Cash flows from operating activities from continuing operations were $1,545 million in 2020, $587 million, or 61 percent, higher than the 20182019 amount of $856$958 million. The increase in cash flows generated byfrom continuing operations was mainly due to an increase in revenue from gold sales due to an increase in the gold price and an increase in dividends received from joint ventures, partially offset by an increase in production costs which was impacted by unfavourable working capital movements and a decrease in dividends received from joint ventures.higher taxation paid due to higher profit before taxation.


Net cash outflow from operating working capital items amounted to $165$238 million in 2019,2020, compared with an outflow of $122$165 million in 2018.2019. The outflow from operating working capital mainly related to inventories, the VAT lock-up at Geita and increased export duty receivables at Cerro Vanguardia.

Comparison of operating activities in 2018 with 2017


Cash flows from operating activities were $856also 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 2018, $572019 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 sixeight percent, lower than the 2017 amount of $913 million. 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 decreaseRegulatory Environment Enabling AngloGold Ashanti to Mine—Americas—Argentina”.




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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 generatedfrom 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 decreasenet cash inflow of $89 million in revenue from gold sales due2019 to a decrease in gold sold partially offset by an increase in the gold price received.

Netnet cash outflow from operating working capital items amounted to $122inflow of $109 million in 2018, compared with an outflow of $137 million in 2017.2020.


Cash flows from investing activities

Comparison of investing activities in 2019 with 2018


Cash flows from investing activities from continuing operations amounted to a net outflow of $683$448 million in 2019, $1222020, $235 million or 2234 percent, higherlower than 20182019 outflow of $561$683 million. The increasedecrease in cash outflow was largely due to an increase in capital expenditure by $128$200 million or 22 percent,proceeds on disposal of discontinued assets and subsidiaries (South Africa asset disposal group) and $26 million proceeds from $575 million in 2018 to $703 million in 2019. The capital expenditure increase was largely due to increased expendituredisposal of $198 million on the Obuasi redevelopment project partly offset by lower project capital expenditure at Siquiri of $78 million with commissioning of the CIL combination plant during 2019.joint ventures (Sadiola and Morila).


Comparison of investing activities in 2018 with 2017

Cashflows outflow from investing activities amounted to a netfrom discontinued operations decreased by $23 million, or 43 percent, from an outflow of $561$54 million in 2018, $150 million or 21 percent, lower than 20172019 to an outflow of $711 million.  The decrease included $98$31 million decrease stay-in-business capital at Geita with higher underground ore reserve development taking place during 2017 and the production stage entered during 2018, a decrease in investments in associates and joint ventures of $21 million and loans repaid by associates and joint ventures of $22 million.2020.


Cash flows from financing activities

Comparison of financing activities in 2019 with 2018


Cash flows from financing activities from continuing operations in the year ended 31 December 20192020 amounted to a net outflow of $177$329 million, which is a change of $216$152 million from an outflow of $393 million in the year ended 31 December 2018. Proceeds from borrowings in 2019 decreased by $585 million from $753 million in 2018 to $168 million in 2019. This decrease included a $21 million drawdown on the $1.4 billion syndicated revolving credit facility, $130 million in proceeds from the local borrowings facilities in South Africa and proceeds from other small loans amounting to $17 million.

Cash outflows from repayment of borrowings decreased by $844 million from $967 during the year ended 31 December 2018 to $123 million during the year ended 31 December 2019. This decrease included the repayment of $122 million of the local borrowing facilities in South Africa and $1 million relating to other loans.

Finance costs paid increased by $7 million from $130 million in 2018 to $137$177 million in 2019. The increase in outflow was mainly due to a combinationan increase in net repayment of increased borrowings, higher other borrowing costs and lease liabilities and fluctuating interest rates for Geita of $10 million, Siguiri of $6 million and Argentina of $2 million partially offset by decreased borrowings and fluctuating interest rates for Australia of $9 million, AngloGold Ashanti Holdings plc of $5 million, Corporate (non-gold producing subsidiaries) of $2 million and finance costs paid on leases for Australia of $6 million, Geita of $1 million, Brazil of $1 million and Corporate of $1 million.higher dividends paid.


Bond settlement premium, RCF and bond transaction costs decreased by $10 million to nil in 2019 from $10 million in 2018. The decrease was due to the absence of new transaction costs in 2019.


Dividends paid to non-controlling interests increased by $4 million from $39 million in 2018 to $43 million in 2019 and were all paid by non-wholly owned subsidiaries. During 2019, the company declared and paid a dividend of $27 million to shareholders, compared to $24 million in 2018.

Comparison of financing activities in 2018 with 2017

Cash flows from financing activities in the year ended 31 December 2018 amounted to a net outflow of $393 million, which is a change of $245 million from an outflow of $148 million in the year ended 31 December 2017. Cash inflows from proceeds from borrowings 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 $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.


Cash flows from financing activities from discontinued operations were nil in 2019 and 2020.



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Liquidity


Sources of liquidity


To service the capital 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 2021 compared with $1.330 billion at 31 December 2020. At 31 December 2021, 50 percent of the company’s cash and cash equivalents were held in US dollars, 24 percent in Canadian dollars, 5 percent in Australian dollars, 7 percent in South African rands, 10 percent in Argentinean pesos and 4 percent in other currencies. Amounts are converted to US dollars at exchange rates as of 31 December 2021.

Cash generated from operations

Cash generated from operations is subject to operational, market and other risks. Distributions from operations may be subject to foreign investment, exchange control laws and regulations and the quantity of foreign exchange available in offshore countries. For example, in accordance with the rules and regulations of the Central Bank of Argentina, cash generated by our Argentinean operations is held in Argentinean peso and is subject to monetary and exchange policy controls. In addition, distributions from joint ventures are subject to 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 $456 million at 31 December 2019 compared with $329 million at 31 December 2018. 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 2019, 80 percentmeet the above commitments. To the extent that any of the company’s cash and cash equivalents were heldfinancing facilities mature in US dollars, six 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 11 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 $100 million3.750% 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 was cancelled in February 2020.





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During August 2016, Geita Gold Mining Limited and Société AngloGold Ashanti de Guinée S.A., as borrowers, entered into a three-year unsecured revolving credit facilities of $100 million with Nedbank Limited, as lender. Interest is currently charged at a margin of between 6.2% and 8% above LIBOR. In January 2019, $35 million of this facility was combined with the Geita RCF (see below). The remaining portion of $65 million was renewed for a further three years in February 2019 and matures in February 2022. As of 19 March 2020, this facility is fully drawn.


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 $71 million)$65 million with The Standard Bank of South AfricaNedbank Limited, as facility agent and lender which(the “Siguiri RCF”). In February 2019, the Siguiri RCF was subsequently extended by tworenewed for a further three years. Amounts may be repaid and re-borrowed under the facility during its term and the facility bearsThe current interest at JIBAR plus 1.3% per annum.rate charged is LIBOR +8.50%. The facility matures in NovemberSiguiri RCF will mature on 3 May 2022. As of 19 March 2020, this facility is fully drawn.

During31 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 $179 million) with Nedbank Limited and ABSA Bank Limited, as lenders, which2021, $30 million was subsequently extended by two years. Amounts may be repaid and re-borrowedundrawn under the facility during its term and the facility bears interest at JIBAR plus 1.8% per annum. The facility matures in December 2022.As of 19 March 2020, ZAR 450$65 million was drawn under this revolving facility.Siguiri RCF.


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 facility maturesmaturity 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 April 2021.As of 19 March 2020, the equivalent of $110 million was drawn under this revolving facility.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 RCF)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 revolving credit facility matures inwill mature on 23 October 2023 and replaced the $1 billion RCF and A$500 million RCF, which were available until July 2019 and were cancelled during October 2018.As2023. As of 19 March 2020,31 December 2021, the equivalent of $945 million$1.367 billion was drawn under this Revolving Credit Facility.

A full analysis of the borrowings as presented on the statement of financial position is included in “Item 18: Financial Statements-Note 26-Borrowings”.

Amounts are converted to US dollars at exchange rates as of 31 December 2019.

AngloGold Ashanti intends to finance its capital expenditure and debt repayment requirements in 2020 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. On 18 March 2020, the company drew $900 millionundrawn under the $1.4 billion RCF to fundmulti-currency RCF. See also “Item 10C: Material Contracts—Multi-currency Revolving Credit Facility”.

Following the repaymentcompletion of the 5.375% notes maturingSouth 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 of $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 equivalent of $87 million bearing interest at 12.5% and a US dollar component bearing interest at LIBOR plus 6.7%. The New Geita RCF will mature during August 2024 or December 2024 depending on 15 April 2020 ($700 million) and to support short-term liquiditythe fulfillment of certain conditions in the eventfacility agreement. As of continuing disruptions31 December 2021, the equivalent of $40 million was undrawn under the $150 million New Geita RCF.

AngloGold Ashanti Limited, 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 ZAR 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 globalcountries 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 markets asguarantees 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 resultportion of the recent outbreakestimated environmental rehabilitation obligations.

In most cases, the environmental obligations will expire on completion of COVID-19. On 27 March 2020, the company drew downrehabilitation 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 $450bond guarantee amounting to $39 million onissued by ABSA Bank Ghana Limited and Standard Chartered Bank Ghana Ltd for a current carrying value of the remainderliability of its $1.4billion RCF.$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 due course which will have a consequential income statement charge for the fees charged by the providers of the reclamation bonds.






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Current borrowings


AngloGold Ashanti’s current borrowings increaseddecreased by $595$91 million to $734$51 million at 31 December 20192021 from $139$142 million at 31 December 2018. The increase in current borrowings is largely due to the allocation to current borrowings of the 5.375% notes maturing on 15 April 2020. See “Item 18: Financial Statements-Note 26-Borrowings”Statements—Note 24—Borrowings”.


Non-current borrowings


AngloGold Ashanti’s non-current borrowings decreasedincreased by $612$69 million to $1,299$1,858 million at 31 December 20192021 compared to $1,911$1,789 million at 31 December 2018.2020. See “Item 18: Financial Statements-Note 26-Borrowings”Statements—Note 24—Borrowings”.


As at 31 December 2019,2021, AngloGold Ashanti’s total non-current borrowings, including the short-term portion maturing within 2019,2021, was made up as follows:
$ (million)
Unsecured borrowings2,0331,909 
Total borrowings2,033
Total borrowings1,909 
Less: Short-term maturities (current borrowings)73451 
Total non-current borrowings1,2991,858

Amounts falling due are scheduled as follows:
$ (million) 
Within one year73451 
Between one and two years11031 
Between two and five years898110 
After five years2911,717 
Total2,0331,909


At 31 December 2019,2021, the currencies in which the borrowings were denominated were as follows:
$ (million)
United States dollarsdollar1,8931,829 
Australian dollarsdollar2133 
South African rand72— 
Tanzanian shillingsshilling47
Brazilian real—
Total2,0331,909
At 31 December 2019,2021, AngloGold Ashanti had the following undrawn amounts available under its borrowing facilities:
$ (million)
Syndicated revolving credit facility (R2.5 billion) - SA rand179
Syndicated revolving credit facility (R1.4 billion) - SA rand100
FirstRand Bank Limited (R750corporate overnight facility (R150 million) -– SA rand5410 
Revolving credit facility (R1billion) - SA rand—
Multi-currency syndicated revolving credit facility ($1.4 billion) -– US dollar / Australian dollar1,3791,367 
RevolvingGeita revolving credit facility ($115150 million) -– US dollar / Tanzanian shilling40
Siguiri revolving credit facility ($65 million) – US dollar30 
Total undrawn facilities1,7521,447


AngloGold Ashanti had no other committed lines of credit as of 31 December 2019.2021.


As of 31 December 2019,2021, the company was in compliance with all debt covenants and provisions related to potential defaults.


See “Item 18: Financial Statements-Note 36-CapitalStatements—Note 34—Capital Management” and “Item 10C: Material Contracts”.





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At 31 December 2019,2021, lease liabilities were as follows:
$ (million)
Non-current126124 
Current4561 
Total171185


AngloGold Ashanti, through its executive committee, reviews its short-, medium- and long-term funding, treasury and liquidity requirements and positions monthly. The Audit and Risk Committee also reviews these on a quarterly basis at its meetings.


Supplemental parent guarantor and subsidiary issuer financial information

AngloGold Ashanti Holdings plc (the “Issuer”), a direct wholly-owned subsidiary of AngloGold Ashanti Limited (the “Guarantor”), has issued three series of outstanding debt securities which are each fully and unconditionally guaranteed by the Guarantor (the “guaranteed debt securities”). The Issuer is a company incorporated under the laws of the Isle of Man that holds certain of AngloGold Ashanti’s operations and assets located outside of South Africa. The guaranteed debt securities outstanding as of 31 December 2021 consisted of:

•a $300 million 30-year bond, with a maturity date of 15 April 2040 and a fixed coupon of 6.500% payable semi-annually;
•a $750 million 7-year bond, with a maturity date of 1 November 2028 and a fixed coupon of 3.375% payable semi-annually; and
•a $700 million 10-year bond, with a maturity date of 1 October 2030 and a fixed coupon of 3.750% payable semi-annually.

The Guarantor fully and unconditionally guarantees the payment of the principal of, premium, if any, and interest on each of the guaranteed debt securities, including any additional amounts, when and as any such payments become due, whether at maturity, upon redemption or declaration of acceleration, or otherwise. The Guarantor has obtained the approval of the South African Reserve Bank to provide each of the guarantees. Each guarantee constitutes unsecured and unsubordinated debt of the Guarantor and ranks equally with all of its other unsecured and unsubordinated debt from time to time outstanding. Each guarantee is or will be effectively subordinated to any of the Guarantor’s existing and future secured debt, to the extent of the value of the assets securing such debt, and structurally subordinated to all of the existing and future liabilities (including trade payables) of each of the Guarantor’s subsidiaries. As at 31 December 2021, all of the debt of the Guarantor was unsecured. Under the terms of each full and unconditional guarantee, holders of the guaranteed debt securities will not be required to exercise their remedies against the Issuer before they proceed directly against the Guarantor.

The following summarised financial information reflects, on a combined basis, the assets, liabilities, and results of operations of the Issuer and the Guarantor (collectively, the “Obligor Group”). Intercompany balances and transactions within the Obligor Group have been eliminated. Amounts attributable to the Obligor Group’s investment in consolidated subsidiaries that have not issued or guaranteed the guaranteed debt securities (the “Non-Obligor Subsidiaries”) have been excluded. The Obligor Group’s amounts due from, amounts due to and transactions with Non-Obligor Subsidiaries have been separately disclosed, if considered to be material. The summarised financial information below should be read in conjunction with AngloGold Ashanti’s consolidated financial statements for the year ended and as at 31 December 2021, see “Item 18: Financial Statements”.

Income statement information
Obligor Group(1)
$ (million)Year ended 31 December 2021
Revenues from Non-Obligor Subsidiaries5 
Revenues from Investments22 
Net intergroup dividends, interest, royalties and fees with Non-Obligor Subsidiaries— 
Loss for the period from continuing operations(154)
Loss for the period(154)

(1)    Gross profit is not disclosed for the Obligor Group. The Guarantor changed the nature of its main operating activities from mining operations to investment holding in 2021 and has no costs and expenses applicable to revenue. As a result cost of sales and gross profit are no longer presented. The principal activity of the Issuer is to act as a holding company for certain of AngloGold Ashanti’s operations and assets located outside of South Africa.





244

Statement of financial position information
Obligor Group
$ (million)Year ended 31 December 2021
ASSETS
Receivables due from Non-Obligor Subsidiaries969 
Other current assets661 
Total current assets1,630 
Non-current assets42 
LIABILITIES
Payables due to Non-Obligor Subsidiaries270 
Other current liabilities245 
Total current liabilities515 
Non-current liabilities1,826 

Contractual commitments and contingencies


For a detailed discussion of commitments and contingencies, see “Item 18: Financial Statements-Note 34-ContractualStatements—Note 32—Contractual Commitments and Contingencies”.


As at 31 December 2019,2021, capital commitments can be summarised over the periods shown below as follows:
Expiration per period
CommitmentTotal
amount		Less than
1 year		1 – 3
years		4 – 5
years		Over 5
years
(in millions)$$$$$
Capital expenditure (contracted and not yet contracted)(1)
693 629 64 — — 
Other commercial commitments(2)
1,047 423 468 129 27 
Total1,740 1,052 532 129 27 

(1)    Including commitments through contractual arrangements with equity-accounted joint ventures of $4 million.
(2)    Excludes commitments through contractual arrangements with equity-accounted joint ventures.

To service the above capital commitments and other operational requirements, the group is dependent on existing cash resources, cash generated from operations and borrowings (in the form of bonds and credit facilities).



245

 Expiration per period
Commitment
Total
amount

 
Less than
1 year

 
1 – 3
years

 
4 – 5
years

 
Over 5
years

(in millions)$
 $
 $
 $
 $
Capital expenditure (contracted and not yet contracted)(1)
587
 405
 182
 —
 —
Other commercial commitments(2)
1,085
 506
535
535
 28
 16
Total1,672
 911
 717
 28
 16
(1)
Including commitments through contractual arrangements with equity accounted joint ventures of $2 million.
(2)
Excludes commitments through contractual arrangements with equity accounted joint ventures.

Contractual obligations


As at 31 December 2021, AngloGold Ashanti had the following known contractual obligations:

TotalLess than
1 year		1 – 3
years		4 – 5
years		More than
5 years
(in millions)$$$$$
Long-term debt obligations including interest(1)
2,734 119 304 142 2,169 
Capital lease obligations204 69 86 38 11 
Purchase obligations
- Contracted capital expenditure(2)
146 146 
- Other purchase obligations(3)
1,047 423 468 129 27 
Environmental rehabilitation costs(4)
685 59 87 79 460 
Provision for silicosis(5)
59 16 25 11 7 
Pensions and other post-retirement medical obligations(6)
77 8 16 18 35 
Total4,952 840 986 417 2,709 

(1)    Interest calculations are at the rate existing at the year end. Actual rates are set at floating rates for some of the borrowings (Refer to “Item 18: Financial Statements—Note 24—Borrowings”).
(2)    Represents contracted capital expenditure for which contractual obligations exist. Amounts stated include commitments of equity-accounted joint ventures.
(3)    Other purchase obligations represent contractual obligations for mining contract services, purchase of power, supplies, consumables, inventories, explosives and activated carbon.
(4)    Pursuant to environmental requirements, AngloGold Ashanti is obligated to close its operations and reclaim and rehabilitate the lands upon which it conducted its mining and gold recovery operations. The present value of estimated closure costs at existing operating mines as well as mines in various stages of closure are reflected in this table. Costs are calculated using undiscounted real cash flows, not nominal cash flows. The amount will change from year to year depending on rehabilitation work undertaken, changes in design and methodology, and new occurrences. For more information on AngloGold Ashanti’s environmental rehabilitation obligations, see “Item 4B: Business Overview—Mine Site Rehabilitation and Closure” and “Item 4B: Business Overview—Sustainability and Environmental, Social and Governance (“ESG”) Matters”. Amounts stated include a total estimated liability of $24 million in respect of equity-accounted joint ventures.
(5)     In South Africa, AngloGold Ashanti has been subject to numerous claims, including class action litigation with respect to alleged occupational lung diseases. The settlement agreement in relation to the silicosis and tuberculosis class action came into effect in December 2019, following the approval of the settlement by the High Court in Johannesburg in July 2019. As a result, a trust (Tshiamiso Trust) was established for a minimum of 13 years responsible for making payments to eligible beneficiaries. The amount of monetary compensation will vary depending on the nature and seriousness of the disease. See “Item 3D: Risk Factors—The prevalence of occupational health diseases and other diseases and the potential costs and liabilities related thereto may have an adverse effect on the business and results of operations of AngloGold Ashanti”, “Item 4B: Business Overview—Sustainability and Environmental, Social and Governance (“ESG”) Matters” and “Item 18: Financial Statements—Note 1.2—Accounting Policies—Significant Accounting Judgements and Estimates—Provision for silicosis”.
(6)    Represents payments for unfunded plans or plans with insufficient funding.

Off-balance sheet arrangements

AngloGold Ashanti does not engage in off-balance sheet financing activities, and does not have any off-balance sheet debt obligations, special purpose entities or unconsolidated associates. The most significant off-balance sheet item are the unaccrued future rehabilitation obligations.

Recent developments


Recent developments disclosed in “Item 18: Financial Statements-Note 37-Subsequent events”Statements—Note 35—Subsequent Events” include the following details:


SaleAngloGold Ashanti Announces Completion of South African assets:Acquisition of Corvus - On 12 February 2020,18 January 2022, AngloGold Ashanti announced that it has reached an agreementthe successful completion of the previously announced plan of arrangement with Corvus Gold Inc. (“Corvus”) pursuant to sellwhich AngloGold Ashanti agreed to acquire the remaining 80.5% of common shares of Corvus not already owned by AngloGold Ashanti. Under the terms of the arrangement, the shareholders of Corvus (other than the AngloGold Ashanti and its remaining South African producing assets and related liabilities to Harmony Gold Mining Company Limited. Consideration for the transaction issubsidiaries) received C$4.10 in cash and deferred payments with expected proceeds of around $300m, subject to subsequent performance, and with additional proceeds if the West Wits assets are developed below current infrastructure.per Corvus share.


Dividend declaration:declaration - On 2122 February 2020,2022, the directors of AngloGold Ashanti declared a gross cash dividend per ordinary share of 165217 South African cents (assuming an exchange rate of ZAR15/ZAR 15.50/$, the gross dividend payable per ADS is equivalent to 1114 US cents).

COVID-19 pandemic: At the date of approval of these consolidated annual financial statements, the SARS-CoV-2 virus responsible for COVID-19 continues to spread across the globe, contributing to a sharp decline in global financial markets and a significant decrease in global economic activity. On 11 March 2020, the COVID-19 outbreak was declared a global pandemic by the World Health Organization and has since then resulted in numerous governments and companies, including AngloGold Ashanti, introducing a variety of measures to contain the spread of the virus.  To date, we have taken a number of proactive steps to protect our employees, our host communities and business, in line with the company’s values, guidelines and advice provided by the WHO and with the requirements of the countries in which we operate. Cases of the outbreak have been reported in all of the jurisdictions in which we operate, and it may lead to a prolonged restriction on the movement of people and continued requirement for people to self-isolate or be quarantined.

Any self-imposed or government-mandated temporary lockdowns may disrupt the company’s activities and operations and even lead to a full or partial temporary suspension of the company’s mining operations in those jurisdictions. On 21 March 2020, following the Argentinian government’s decision to impose a nationwide lockdown (quarantine) until 31 March 2020, including temporary travel restrictions, border closings and suspension of most industries, Cerro Vanguardia S.A. (CVSA) was required to temporarily suspend mining activities.

On 23 March 2020, the South African government announced a 21-day nationwide lockdown, effective from midnight on 26 March 2020, resulting in the temporary suspension of mining activities of the company’s South African operations particularly Mponeng, and the partial suspension of mining activities at Mine Waste Solutions (MWS) and Surface Operations.

On 26 March 2020, the State of Goiás, in Brazil, extended a set of restrictions on the operation of non-essential business, to include mining. These restrictions are set to run through 4 April 2020. Mineração Serra Grande (MSG) S.A. will temporarily suspend its operations.

The current impact of all of the suspended operations is expected to be about 30,000oz to 40,000oz, or less than 2% of annual production. In these countries, the suspension of mining activities will continue for the period during which the respective restrictions remain in force.

While minimal operational disruptions have occurred at the company’s other operations to date, the company may experience temporary disruptions in supply chain and logistics across its operations in the coming months should the pandemic be prolonged. Such disruptions, which include restrictions in travel and border access, may impact the company’s ability to source and transport goods and services required to operate mines and to transport gold doré to refineries. Furthermore, should COVID-19 spread among the company’s workforce, it may lead to a full or partial temporary suspension of the company’s operating mines in those affected areas.

Given the uncertainties with respect to future developments, including duration, severity and scope of the COVID-19 pandemic and the necessary government responses to limiting its spread, the board has decided to withdraw its market guidance for 2020 published as part of its preliminary condensed consolidated financial results on 21 February 2020, at this time.

In anticipation of a prolonged negative impact from the COVID-19 pandemic, on 18 March 2020, the company accelerated a drawdown of $900million on its $1.4billion Multi-currency RCF  to redeem the $700million 5.375% bonds maturing on 15 April 2020 and to have sufficient cash available to manage ongoing working capital requirements.  The company drew down a further $450million on the remainder of its $1.4billion Multi-currency RCF which was received on 27th March 2020. After the drawdowns, the company’s cash on hand exceeds $1.8billion (excluding cash lock-up positions at Kibali and Sadiola, where AngloGold Ashanti’s combined share totals $300million).

Management will continue to take a prudent and proactive approach to managing the group’s liquidity, which may include procuring additional credit facilities or debt over and above its current facilities.

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





246

AngloGold Ashanti’s accounting policies are described in “Item 18: Financial Statements-Note 1-Accounting Policies”Statements—Note 1—Accounting Policies—New Standards and Interpretations Issued”.


Critical accounting policies


AngloGold Ashanti’s accounting policies are described in “Item 18: Financial Statements-Note 1-Accounting Policies”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”.


Identification and classification of discontinued operations

When the company considers selling part of its operations, management judgement is applied regarding the classification of the assets or operations (disposal group) as held for sale and the classification of the disposal group as a discontinued operation. A discontinued operation is a component of an entity that either has been disposed of or is classified as held for sale, and represents5C.    RESEARCH AND DEVELOPMENT, PATENTS AND LICENSES, ETC.

either a separate major line of business or a geographical area of operations and is part of a single coordinated plan to dispose of a separate major line of business or geographical area of operations. At 31 December 2019, the company assessed the IFRS 5 held for sale criteria and management concluded that the criteria to recognise the South African assets as held for sale were met. Accordingly, the South African assets and liabilities were transferred to held for sale, and the South African disposal group was recognised as a discontinued operation.


5C.RESEARCH AND DEVELOPMENT, PATENTS AND LICENSES, ETC.


Research and development expenditure included in the income statement amounted to nil, $1 million and $11during 2021, $1 million during 2019, 20182020 and 2017, respectively.nil during 2019.





5D.TREND INFORMATION

5D.    TREND INFORMATION

For a discussion of trends affecting AngloGold Ashanti’s business and operations, see “Item 5A: Operating Results Results—Key factors affecting results”.




5E.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.5E.    CRITICAL ACCOUNTING ESTIMATES


See “Item 5F: Tabular Disclosure of Contractual Obligations”.Not applicable.






5F.TABULAR DISCLOSURE OF CONTRACTUAL OBLIGATIONS

As at 31 December 2019 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)
2,601
 802
 1,136
 61
 602
Capital lease obligations198
 52
 63
 26
 57
Purchase obligations         
- Contracted capital expenditure(2)
161
 161
      
- Other purchase obligations(3)
1,085
 506
 535
 28
 16
Environmental rehabilitation costs(4)
835
 77
 80
 77
 601
Pensions and other post-retirement medical obligations(5)
100
 10
 20
 20
 50
Total4,980
 1,608
 1,834
 212
 1,326
(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 26-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)
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 $54 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 2020,2022, AngloGold Ashanti has a unitary board comprising 1211 directors - 10nine independent non-executive directors and two executive directors. Certain information with respect to AngloGold Ashanti’s directors is set forth below:

NameAgePosition
Year first
appointed(1)
Alberto Calderon62Executive director and Chief Executive Officer2021
Christine Ramon54Executive director and Chief Financial Officer2014
Maria Ramos63Independent non-executive director and chairperson2019
Rhidwaan Gasant62Lead independent non-executive director2010
Kojo Busia59Independent non-executive director2020
Alan Ferguson64Independent non-executive director2018
Albert Garner66Independent non-executive director2015
Scott Lawson60Independent non-executive director2021
Nelisiwe Magubane56Independent non-executive director2020
Maria Richter67Independent non-executive director2015
Jochen Tilk58Independent non-executive director2019
(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”).
Name Age Position 
Year first
appointed(1)
Kelvin Dushnisky 56 Executive director and chief executive officer 2018
Christine Ramon 52 Executive director and chief financial officer 2014
Sipho Pityana(2)
 60 Independent non-executive director and chairman 2007
Alan Ferguson 62 Independent non-executive director 2018
Albert Garner 64 Independent non-executive director 2015
Rhidwaan Gasant 60 Lead independent non-executive director 2010
Nozipho January-Bardill 69 Independent non-executive director 2011
Nelisiwe Magubane 54 Independent non-executive director 2020
Maria Ramos 61 Independent non-executive director 2019
Maria Richter 65 Independent non-executive director 2015
Rodney J. Ruston 69 Independent non-executive director 2012
Jochen Tilk 56 Independent non-executive director 2019


(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 (60)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)
•    Remuneration and Human Resources Committee
•    Social, Ethics and Sustainability Committee


Sipho M Pityana has extensive business experience having served in bothMaria Ramos is an executive and non-executive capacity on several locally and internationally listed boards of companies as well as running his own companies, Izingwe Capital and Izingwe Holdings, which he chairs. He is currently the independent non-executive chairmandirector of AngloGold AshantiStandard Chartered Plc and serves on the JSE-listed Redefine Properties. He also servesboard of Compagnie Financière Richemont SA. She recently served as aindependent non-executive director on the boardboards of bankingthe 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 Absa. Sipho is alsochief executive, Ms. Ramos served as the Presidentchief executive of Business UnityTransnet Limited. This followed an eight-year tenure as director general of South AfricaAfrica’s National Treasury.

Ms. Ramos has in the past served as a non-executive and independent director on the co-chairboards of Sanlam Ltd, Remgro Ltd and SABMiller Plc. She was a member of the World Economic Forum Africa Stewardship board.Forum’s International Business Council and member of its executive Committee and its chairman for two years.


SiphoShe is currently chairpersona member of the CouncilGroup of Thirty and serves on the International Advisory Board of the UniversityBlavatnik School of Cape Town. He also serves on President Ramaphosa’s Presidential Working Committee on Employment. He was one of the founding members of the governing body of the Commission for Conciliation, Mediation and Arbitration. He is the Leader of the Business delegation to the National Economic Development and Labour Council.Government, Oxford University.


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 and Commonwealth.

He was the founding Chairperson of the Council for the Advancement of the South African Constitution and former convener and founder of Save South Africa.











248

Rhidwaan Gasant (60)(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 (Chairman)

Investment Committee

Nominations and Governance Committee

Remuneration and Human Resources Committee


Rhidwaan Gasant is the Lead Independent Non-Executive Director. He was previously the Chief Executive Officer of Energy Africa Limited. He serves as a directoris currently the Independent Non-Executive Chairman of Growthpoint Properties Limited and chairs the Board Audit and Risk CommitteesCommittee of international companies in the MTN Group. His other directorships include those in the Rapid African Energy Holdings Group, a start up oil and gas exploration business focused on Africa, and Edcon Limited.Nigeria Communications Plc.


Alan Ferguson (62)Kojo Busia (59)
BSc (Accountancy and Business Economics);PhD, MA, BA
CA (Institute of Chartered Accountants of Scotland)
Independent Non-Executive Director
Appointed: 1 August 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).

He previously served as coordinator 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 Public 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 Global Mining Sustainability, and Mining Indaba’s Sustainability Advisory Committee. He is a founding director of the Africa Resource Management, Environment and Climate Change Institute, a think-do-tank recently established in Accra, Ghana.

Alan Ferguson (64)
BSc; CA (Scotland)
Independent Non-Executive Director
Appointed: 1 October 2018
Board committee memberships:
Audit and Risk Committee
(Chairperson)
Remuneration and Human Resources Committee

Nominations and Governance Committee


Alan Ferguson is an Independent Non-Executive Director. As a chartered accountant, Mr. Ferguson is highly experienced in a range of finance roles. He was a former chief financial officer of a number of FTSE-listed entities, including Lonmin Plc. Since 2011 he has held non-executive directorships on a number of FTSE boards including current positions with Johnson Matthey, Croda International and the Weir Group where he chaired their audit committees. He currently serves on the boards of Harbour Energy and Marshall Motors Holdings all basedwhere he chairs the audit committees. At Marshall Motors he is also Interim Chair and Senior Independent Director. These companies are listed on the FTSE in the United Kingdom. He chairsIn addition, Mr. Ferguson serves as a member of the Business Policy Panel of the Institute of Chartered Accountants of Scotland and is a member of the leadership team of the UK Audit Committee’s on all these boards.Committee Chair’s Independent Forum.


Albert Garner (64)(66)
BSE Aerospace and Mechanical Sciences
Independent Non-Executive Director
Appointed: 1 January 2015
Board committee memberships:
•    Investment Committee
•    Nominations
Remuneration and Human Resources Committee





249

Albert Garner is an Independent Non-Executive Director. He has extensive experience in capital markets, corporate finance and mergers and acquisitions having worked with Lazard Frères & Co., LLC for over 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.



Nozipho January-Bardill (69)Nelisiwe Magubane (56)
BA (English and Philosophy), MA (Applied Linguistics), Diploma Human Resources Management, Certificate in Education; Honoris Causa (Glasgow Caledonian)Pr.Eng, BSc, MBA
Independent Non-Executive Director
Appointed:1 October 2011January 2020
Board committee memberships:Audit and Risk Committee
Social, Ethics and Sustainability Committee (Chairman)
Remuneration and Human Resources Committee


Ambassador Nozipho January-Bardill has extensive experience in both the local and international public and private sectors. Besides AngloGold Ashanti, she also serves as an Independent Non-Executive Director on the boards of, Mercedes Benz South Africa and the MTN Foundation. Previously she served on the boards of Southern Life, Momentum Ltd, UCT and Credit Suisse Securities.

She is chairperson of the Council of the Nelson Mandela University and the UN Global Compact Local Network in South Africa. Prior to her appointment to the AGA board, Nozipho was the Executive Director of Corporate Services and Spokesperson of MTN Group and served on the boards of 5 MTN local operations in the MTN footprint including Côte d’Ivoire, Cameroon, Guinea (Conakry),

Guinea -Bissau and Congo - Brazzaville. Before then she was the South African Ambassador to Switzerland, Lichtenstein and the Holy See (Vatican) and the Deputy Director General of Human Capital Management and Head of the Foreign Service Institute in the South African Department of Foreign Affairs (now DIRCO). She has worked in leadership positions in the Parliament of South Africa and in a number of NGOs; and served 12 years as an expert on the United Nations Committee on the Elimination of Racial Discrimination. She was also an interim Chief of Staff and Senior Strategic Adviser of UN Women. Sustainable development, ethical governance, human and women’s rights in business and social justice are of central interest to her work and life.

Nelisiwe Magubane (54)
Pr.Eng, BSc, MBA
Independent Non-Executive Director
Appointed: 1 January 2020
Board committee memberships:Investment Committee
Social, Ethics and Sustainability Committee

Neli 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 responsible for the restructuring of the electricity sector, planning and implementation of the electrification programme. She was later appointed as the Deputy Director General responsible forGeneral. Ms. Magubane was the development of the policies that govern electricity, nuclear and clean energy in South Africa.

In 2009, Neli was appointed as Director General of Energy responsible for, amongst other things,and a non-executive director on the development of the integrated resource plan and improved access to electricity for over a million households in four years. She was responsible for the regulatory framework and policies that govern the liquid fuels and gas sectors. She was also responsible for oversight of the State-Owned Companies (SOC) that operate in the energy sector, namely CEF SOC LTD, NECSA SOC LTD, and the Regulatory Authorities that govern the energy sector. She established the Renewable Energy Independent Power Producer Program.

More recently, she has been appointed to the current board of Eskom Holdings SOC LimitedLimited. More recently, she was appointed as a non-executive director. Neli has been named onethe chairperson of the top 50 most influential figures inStrategic Fuel Fund, a subsidiary of the Southern African Power sector by the ESI Africa Magazine. In 2019 she was awarded a Big 5Central Energy Award by Africa Oil and Power Conference for outstanding contribution in shaping energy policy in Sub Saharan Africa. Fund.

As an entrepreneur, she has established Matleng Energy Solutions, a 70% women-owned company that provides energy solutions.


Maria Ramos (61)Richter (67)
MSc (Economics); BCom (Economics); Banker Diploma, Certified Associate of the Institute of Bankers (South Africa)BA, Juris Doctor
Independent Non-Executive Director
Appointed: 1 June 2019January 2015
Board committee memberships:Investment Committee
Social, Ethics and Sustainability Committee

Ms Ramos serves as a non- executive director on the boards of AngloGold Ashanti Ltd, Compagnie Financière Richemont SA, the Public Investment Corporation (PIC) and Saudi British Bank (SABB). She also Co-chairs the United Nations Secretary General’s Task Force on Digital Financing of the Sustainable Development Goals.

Between March 2009 and February 2019, Maria served as Chief Executive Officer of Absa Group leading the Group through a number of significant milestones including the acquisition of the Barclays Africa subsidiary banks; the sell-down by Barclays PLC and the setting a new strategy and refreshed brand for the bank. Before joining Absa (previously Barclays Africa Group Limited) as Group Chief Executive in March 2009, Ms Ramos served as the Chief Executive of Transnet Limited for five years. This followed an eight-year tenure as director general of South Africa’s National Treasury (formerly the Department of Finance) during which time she played a crucial role in transforming the Treasury into one of the most effective and efficient state departments in the post-apartheid administration.

An accomplished academic, who has taught at various institutions, Ms Ramos obtained an Institute of Bankers’ Diploma (CAIB) in 1983. She followed this with a Bachelor of Commerce from the University of the Witwatersrand (Wits) in 1986, a Bachelor of Commerce Honours in Economics (Wits) in 1987 and a Master of Science (Economics) from the University of London (SOAS) in 1992. She is also a recipient of honorary doctorates from the Stellenbosch and Free State universities.

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 WEF’s International Business Council and member of its executive Committee for 12 years and its chairman between 2017 and 2019.


She is a member of the Group of Thirty and serves on the International Advisory Board of the Blavatnik School of Government, Oxford University.

Her contribution has been recognized through numerous awards including ranking in Fortune Magazine’s 50 most powerful women in business a number of years running; CNBC Africa Woman Leader of the Year (2011); Wits Business School’s Management Excellence Award (2010). She was named the Sunday Times Business Times Business Leader of the Year in 2005 and Businesswoman of the Year by the SA Businesswomen’s Association in 2001.

Maria Richter (65)
BA, Juris Doctor
Independent Non-Executive Director
Appointed: 1 January 2015
Board committee memberships:•    Audit and Risk Committee
•    Remuneration and Human Resources Committee (Chairman)
•    (Chairperson)
Audit and Risk Committee
Nominations and Governance Committee

Maria Richter is an experienced non-executive director who has served on a diverse range of US and International boards. She previously served on the board of Barclays International, and Barclays Bank plc (2017-2919) and National Grid plc ( 2003 -2014) where she was the chairperson of the finance committee and 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, a US wealth management company, and is a member of the audit and compensationnominations committees of Rexel and the remuneration committee of Bessemer Trust.


Maria’sDuring Ms. Richter’s professional career spanned 1980 to 2002 during which time she served in various positions at the former Dewey Ballantine, Prudential, Salomon Brothers Inc. and Morgan Stanley & Co.


Rodney Ruston (69)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 International 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 (56)(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
•     (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 funds to support the Princess Margaret Cancer Centre.organization.


Kelvin Dushnisky (56)Alberto Calderon (62)
BSc (Hons), MSc andPhD, MPhil, MA, Juris Doctor, BA
Chief Executive Officer and Executive Director
Appointed: 1 September 20182021
Board committee memberships:None


Kelvin DushniskyAlberto Calderon’s executive experience includes leadership roles across the mining, petroleum, and energy sectors. He was appointed as Chief Executive OfficerCEO 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 Executive Director of AngloGold Ashanti on 1 September 2018.
Mr Dushnisky was previously Presidentintegrated thermal coal mine in Colombia, and a Director of Barrick Gold Corporation, a post held since 2015. He had direct responsibility for Barrick’s overall business, execution of its operating plans and strategic priorities, and oversight of Barrick’s activities across Australia, Africa, the Middle East, North America and South America. He also held responsibility for Barrick’s relationships with host governments, local communities and other external stakeholders.

Mr Dushnisky holds a B.Sc. (Hon.) degree from the University of Manitoba and M.Sc. and Juris Doctor degrees from the University of British Columbia. He is ChairCEO of the World Gold CouncilColombian oil company, Ecopetrol. Prior to this, Mr. Calderon held senior leadership positions in the International Monetary Fund and the Colombian government and has been a board member of the International Advisory Boarda range of the Shanghai Gold Exchange, the Accenture Global Mining Executive Council, memberprivate, public and principal business advisor to the Institute of Business Advisers Southern Africa and the Institute of Directors Southern Africa. He is a member of the Law Society of British Columbia and the Canadian Bar Association. Mr. Dushnisky represents AngloGold Ashanti at the International Council on Mining and Metals (ICMM). He is on the Senate and is a past member of the Board of Trustees of the University Health Network.non-government organisations.


Christine Ramon (52)(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, in particularcompanies. She previously served as chief financial officerChief Financial Officer and executive directorExecutive Director of Sasol Limited from 2006 to 2013.Sasol. Prior to this, she was chief executive officerCEO of Johnnic Holdings, Limited, having previously served as its financial director. ChristineFinancial Director.

Ms. Ramon has served on the boards of Transnet SOC Limited,MTN Group, International Federation of Accountants, the International Council of Mining and Metals, Rand Refinery, Lafarge SA Limited,(France), Transnet and Johnnic Communications Limited. She is currently a non-executive director onCommunications. In addition, she has served as the boardChairperson of MTN Group Limited.

Christine served previouslythe listed companies CFO Forum in South Africa, 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. Christine

She is also the chairperson of the CFO Forum of South Africa and serves as a non-executivean alternate director of the International FederationWorld 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 Accountants.June 2022.



Board movements during 20192021 and subsequent to year end

year-end
The following changes to the board of directors took place during the period from 1 January 20192021 to 31 December 20192021 and subsequent to year-end:

•On 18 February 2021, Ms. Maria Ramos stepped down as a member of the Remuneration and Human Resources Committee and Mr. Rhidwaan Gasant was appointed as a member of the Remuneration and Human Resource Committee.

•Effective 1 September 2021, Mr. Calderon joined the Company’s Board of Directors as an Executive Director.
Maria Richter, Michael Kirkwood•Effective 1 December 2021, Mr. Scott Lawson was appointed as an independent non-executive director to the Board and David Hodgson retiredas a member of the Investment Committee and the Social, Ethics and Sustainability Committee.



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•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 Company at the Annual General Meeting (AGM) on 9 May 2019. Maria Richter being eligible for re-election was re-elected by the shareholders and Michael Kirkwood and David Hodgson elected notend of June 2022. A process to stand for re-election, in accordance with board policies and guidelines.identify a new CFO has commenced.
Maria Ramos and Nelisiwe Magubane were appointed as Independent Non-Executive Directors with effect from 1 June 2019 and 1 January 2020, respectively.


In terms of the company’s Memorandum of Incorporation (MoI), one third of the directors are required to retire at each 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 are Sipho Pityana, Albert Garner, Nozipho January-BardillMses. Ramos, Richter and Rodney Ruston. Messrs Pityana and GarnerMagubane, who are eligible and have offered themselves for re-election. Mrs January-Bardill and Mr Ruston 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:


Stewart Bailey (45)(48)
Executive Vice President -Chief Sustainability and Corporate Affairs and Sustainability

Officer
Stewart Bailey was formerly Senior Vice President of Investor Relations & Group Communications, has been appointed as Executive Vice President: Corporate Affairs in 2019. HisBailey’s portfolio includes stakeholder relations and the broader ambit of sustainability policy and oversight. He leads a strong team of specialists covering each ofinvestor relations and communications, alongside the core sustainability disciplines. Hisdisciplines, 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 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.

stakeholders. Mr. Bailey previouslywas 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 is also a key member of AngloGold Ashanti’s capital markets team, which has successfully completed debt issues of more than $3 billion 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.


Pierre Chenard (59)Italia Boninelli (65)
BCL, LLB - McGill University; admitted attorney
MA, PGDip in Labour Relations, Executive Development Programme
Executive Vice President - Corporate Development and StrategyConsultant – Group Human Resources

PierreItalia Boninelli is responsible for Corporate Developmentgroup human resources, which entails attracting, retaining and Strategy. Pierre previously served as Senior Vice President, Business Developmentdeveloping a highly engaged, diverse and productive workforce. She has more than 30 years’ executive experience in the field of Rio Tinto Aluminiumhuman resources both locally and was its General Counsel from 2007 to 2019. Heinternationally, having been the group executive for human resources at Gold Fields Limited, Network Healthcare Holdings Ltd and the Retail Banking division of Standard Bank.

Ms. Boninelli is a seasoned corporate development and legal professional who has worked withindirector on the board of London-listed Polymetal International in the mining sector and metals industries since 1988. Pierre has conductedbeen on the advisory board of two universities. She continues to lecture and teach at business in over 40 countries globally, with involvement in or leadershipschools, and she is the author of acquisitions, divestments, capital markets transactions, project finance, joint venture agreements, and strategy formulation.

Graham Ehm (63)
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 governance of projects, studies and mineralnumerous publications including three books on human resources and ore reserves reportingleadership. She is passionate in her support for women’s leadership development programs and exploration. He is also accountable for non-managed joint ventures, sucha 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 Kibali. In 2014, he was also assigned accountability forChief People Officer of the closureCompany and redevelopment planning fora member of the Obuasi Gold Mine. He now leads the Obuasi Redevelopment Project.Executive Committee.


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 for the International Region.operations.



Marcelo Godoy (50)


Sicelo Ntuli (42)PhD, Masters in Geostatistics
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 Geita from open pit to underground operations, amongst other achievements. He was subsequently promoted to rolenumerous innovation programs, including a world-class orebody risk management system that delivered a step change in the reliability of Chief Operating Officer Africa, including South African operations in 2019.production forecasts. Mr. NtuliGodoy is also a Harvard Business School alumnus.

Maria Sanz Perez (54)
BCom LLB, HDip Tax, Advanced Management Programme (Harvard), Admitted Attorney
Executive Vice President - General Counsel, Compliance 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.

Ms. Sanz Perez has given 6 months notice of the intention to resign, effective 26 March 2020, to pursue other business interests. The exact departure date is still to be agreed.

Tirelo Sibisi (50)
BSSc, Advanced HR Executive Development Programme, Post Graduate Diploma in Business Management and an MBA
Executive Vice President - Group Human Resources

In her role as Executive Vice President - Group Human Resources, Tirelo Sibisi is responsible for Group Human Resources, which entails attracting, retaining and developing a highly engaged, diverse and productive workforce. She has more than 20 years’ experiencerecognised leader in the field of human resources both localmine planning under geological uncertainty and Internationally, having beena champion of diversity and inclusion. Prior to joining Newmont Corporation, he was Mining Sector Leader for Golder Associates in South America and a Director at Golder’s Global Board of



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Directors. During his tenure at Golder Associates, Marcelo managed major mining feasibility studies and reserve compliance audits for Codelco, Vale S.A., BHP Group Plc, Anglo American Plc and Antofagasta Minerals Plc.

He brings to AngloGold Ashanti experience in resource modeling, mine planning and project development, as well as a track record in leading technical teams and introducing technology to drive sustainable competitive advantage.

Lizelle Marwick (44)

B.Proc; LLB; LLM

Chief Legal Officer
Lizelle Marwick was appointed as Executive Vice President: General Counsel and Compliance on 1 July 2020, after previously serving as Senior Vice President: Deputy General Counsel. She joined the Group executivecompany in 2011 establishing and heading up the legal function for human resourcesthe 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 social investmenttransactions and government negotiations. Prior to joining AngloGold Ashanti, Ms. Marwick practiced law at PPC Cement.

Ms. Sibisi's experience includes 10 yearsBowman Gilfillan in South Africa and Herbert Smith in the information technology sector at IBM (SouthUnited Kingdom. She is admitted as an attorney in South Africa and Europe)a solicitor in England and 7 years at Telkom, making her a well-rounded human resources generalist with strengthsWales.

Terry Briggs (49)
BSc (Hons) in talent management, succession planning, organisational transformation and diversity management, union negotiations and executive compensation. She served on the BoardGeology; MEng

Chief Development Officer (effective 1 April 2022)
Mr. Terry Briggs was appointed as Chief Development Officer of the Institute of People Management in SA as a Non- Executive DirectorCompany and was a member of the RemunerationExecutive 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 closure, 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 appointed 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. She currently sits
•Mr. Marcelo Godoy was appointed as Chief Technology Officer of the Company and a member of the Executive Committee with effect from 15 October 2021. Mr. Godoy replaces Mr. Graham Ehm, Executive Vice President: Group Planning & Technical and a member of the Executive Committee, who retired on 31 December 2021.



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•Mr. Ludwig Eybers became the Boardsole Chief Operating Officer (COO) of AngloGold Ashanti in Ghana.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 and a member of the Executive Committee, resigned effective 31 December 2021.
COMPETENT•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. Terry Briggs was appointed as Chief Development Officer of the Company and a 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.


QUALIFIED 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 (57)(58)
MSc (Mining Engineering), BSc (Hons) (Geology), FAusIMM

Vaughan Chamberlain holds a BSc (Hons) degree in Geology from the University of Natal and a MSc in Mining Engineering from the University of the Witwatersrand. He started his career with Anglo American Corporation in 1987 as a geologist at Western Deep Levels East Mine (now TauTona mine). He joined AngloGold in 1998 and currently holds the position of Senior Vice President: Strategic Technical Group and is Chairman of the AngloGold Ashanti Mineral Resource and Ore Reserve Steering Committee.


6B.COMPENSATION





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6B.    COMPENSATION

REMUNERATION AND HUMAN RESOURCES COMMITTEE


Remuneration and Human Resources Committee (Remco)


The Remco comprisesis composed of four non-executive 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 Remco 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 2019,2021, the committee was composed of the following members:


Members
Michael J. Kirkwood (former Chairperson, resigned effective 9 May 2019);
Maria Richter (appointed Chairperson effective 9 May 2019);(Chairperson)
Sipho Pityana;
Nozipho January-Bardill;
Alan Ferguson

Albert Garner
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


Our 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 its 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-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”.


Our executive directors do not receive payment of directors’ fees or committee fees.


Benchmarking


Our executive employees and non-executive directorsdirector’s remuneration is evaluated against a global group of comparator companies. AngloGold Ashanti’s size and complexity as well as each individual executive’s role is reviewed against our peer group and benchmarked based on guaranteed and variable pay. Performance (Company and individual) is a key factor influencing the remuneration of the executive employees.

Our 2018 bespoke benchmark survey was completed by Mercer and market data was aged to be time relevant as the survey is conducted biennially.



Our salary benchmarks are targeted at the market median of a global market in our industry. Where there is a shortage of specialist and/or key technically skilled employees, we may offer a salary that may beis higher than the benchmark salary.





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Each executive’s role is individually sized to ensure the best match possible. The comparison is done for the same or similar roles irrespective of location 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 our 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. Our new incentive scheme, the Deferred Share Plan (DSP), was 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, including executives, receive retirement benefits under defined contribution plans. Contributions vary based on the employee’s retirement plan. See “Item 18: Financial Statements-Note 10-EmployeeStatements—Note 8—Employee Benefits” and “Item 18: Financial Statements-Note 28-ProvisionStatements—Note 26—Provision for Pension and Post-Retirement Benefits”.


EXECUTIVE DIRECTORS'DIRECTORS’ AND EXECUTIVE MANAGEMENT REMUNERATION


See "Item“Item 18: Financial Statements-Note 33-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 33-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





256

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 11eleven directors, nine independent non-executive directors and two executive directors. On 1 January 2020, an additional non-executive director joined the board increasing the number of directors to 12, 10 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 are Sipho PityanaMses. Maria Ramos, Maria Richter and Albert Garner who areNelisiwe Magubane, and being eligible, andsuch directors have offered themselves for re-election, and Nozipho January-Bardill and Rodney Ruston who have elected not to stand for re-election, in accordance with board policies and guidelines.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 20192021 were as follows:





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Executive Committee member
Executive committee memberNotice periodChange of control
Chief Executive Officer12 months12 months
Chief Financial Officer6 months6 months
Other Executive Management team members6 months6 months


As at 23 March 2022, VA Chamberlain, the Interim Chief Development Officer, remains on a three-month notice period and a three-month change of control period.

Key activities of the board and committees during 20192021


The activities of the board and committees during 20192021 were aimed at promoting the economic stability of the business. This entailed ensuring that its operations were conducted with due regard to the expectations and needs of stakeholders, the safety and health of employees and communities, and the development of systems to ensure proper access to and dissemination of credible information.


Board and committee meeting attendance


The compositionDirectors’ attendance at board and committee meetings during 2021 was as follows:


Board (7)
Audit and RiskInvestmentRemuneration and Human ResourcesSocial, Ethics and Sustainability
Nominations and Governance (8)
Special Committee (9)
Number of meetings in 20211466116202
MDC Ramos (1)
14n/an/a26202
KOF Busia13n/a6n/a619n/a
A Calderon (2)
5n/an/an/an/an/an/a
AM Ferguson146n/a11n/a19n/a
AH Garner14n/a611n/an/a2
R Gasant (3)
13558n/a202
SP Lawson (4)
0n/a1n/a0n/an/a
NVB Magubane (5)
143n/an/a6n/an/a
KC Ramon (6)
13n/a6n/an/an/an/a
MC Richter146n/a11n/a19n/a
JE Tilk1466n/a6202

(1)    MDC Ramos stepped down from the Remuneration and Human Resources Committee on 18 February 2021.
(2)    A Calderon was appointed to the Board on 1 September 2021.
(3)    R Gasant was appointed to the Remuneration and Human Resources Committee on 18 February 2021.
(4)    SP Lawson was appointed to the Board with effect from 1 December 2021.
(5)    NVB Magubane was appointed to the Audit and Risk Committee with effect from 4 May 2021.
(6)    KC Ramon had a conflict of interest in respect of the matter being discussed and therefore recused herself from the board meeting held on 14 April 2021.
(7)    During 2021, the Board held 5 scheduled Board meetings and committees at9 special Board meetings.
(8)    During 2021, the dateNominations and Governance Committee held 4 scheduled meetings and 16 special meetings in respect of this reportthe recruitment of a CEO and attendance at meetings during 2019 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.







































258

 Board
 Audit and Risk Investment 
Remuneration
and Human
Resources
 
Social,
Ethics and
Sustainability
 Nomination 
Special Committee(5)
 
NED search(5)
Number of meetings in 20197
 5 4 4 5 2 2 2
SM Pityana7
 n/a n/a 4 5 2 2 2
KPM Dushnisky7
 n/a n/a n/a n/a n/a 2 n/a
AM Ferguson7
 5 n/a 4 n/a n/a 2 n/a
AH Garner7
 n/a 4 n/a n/a 2 2 n/a
R Gasant (1)
7
 5 4 n/a n/a 1 n/a n/a
DL Hodgson(2)
2
 n/a 1 n/a 2 n/a n/a n/a
NP January-Bardill7
 n/a n/a 4 5 n/a n/a n/a
MJ Kirkwood(3)
2
 2 n/a 1 n/a 1 n/a n/a
KC Ramon7
 n/a 4 n/a n/a n/a n/a n/a
MDC Ramos (4)
4
 n/a 2 n/a 2 n/a 2 1
MC Richter7
 5 n/a 4 n/a 2 n/a 2
RJ Ruston7
 5 4 n/a n/a n/a n/a n/a
JE Tilk6
 n/a 4 n/a 5 n/a n/a 1

(1)
R Gasant was appointed to the Nominations Committee with effect from 9 August 2019.
(2)
DL Hodgson retired at the AGM held on 9 May 2019.
(3)
MJ Kirkwood retired at the AGM held on 9 May 2019.
(4)
MDC Ramos was appointed with effect from 1 June 2019
(5)
Two special purpose committees were established by the board during 2019, the Special Board Committee and the NED Search Committee.



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 2019.2021.


The current members of the Audit and Risk Committee are:
Audit and Risk Committee MembersR GasantAM Ferguson (Chairman and independent NED)
RJ RustonR Gasant (Independent NED)
MDCMC Richter (Independent NED)
AM FergusonNVB Magubane (Independent NED)
JE Tilk (Independent NED)
Number of meetings held from
January to December 2019
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 by the board in February 2020)2022). The purpose of the CommitteeRemco is to assist the Board in discharging its oversight responsibilities relating to all compensation, including annual base salary, annual incentive compensation, employment, severance pay and ongoing



259

perquisites or special benefit items and equity compensation of the Company’s executives, including the Chief Executive Officer as well as retention strategies, design and application of material compensation programmes and share ownership guidelines.


With respect to its mandate on human resources, the CommitteeRemco has strategic oversight of matters relating to the development of the Company’s human resources with the main objective of creating a competitive human resource for the Group.


The CommitteeRemco operates in an independent role, operating as an overseer with accountability to the Board. This is accomplished by:


•Determining specific remuneration packages for the Executive Committee (ExCom) members, and reviewing these annually. The broad framework and cost of executive remuneration shall be a matter for the Board on the recommendation and advice of the Remco;
•Reviewing and approving corporate goals and objectives relevant to the compensation of the Chief Executive Officer;ExCom members;
•Evaluating the performance of the Chief Executive OfficerExCom (excluding executive directors) in light of these goals and objectives annually and setting compensation based on such evaluation;evaluations;
•Ensuring that the mix of fixed and variable pay, in base pay, shares and other elements of compensation for each ExCom member meets the company’sCompany’s requirements and strategic objectives;
Linking individual pay with operational•Determining any long-term incentive component of each ExCom member’s compensation based on awards given to such member in past years and companythe Company’s performance against set targets;
•Considering other matters relating to the remuneration of or terms of employment applicable to ExCom members that may be referred to the Remco by the Board;
•On an annual basis, or at intervals that the Remco may deem necessary, considering the results of independent research into executive remuneration trends, to assist the Remco in relation to strategic objectives;its decision-making regarding executive remuneration;
•Ensuring that all benefits, including retirement benefits and other financial arrangements are justified and correctly valued and reviewed annually;
•Considering the sentimentspayment of performance linked non-pensionable bonuses to ExCom members, and viewssetting the criteria for, and relative value of such payments;
•Satisfying itself as to the accuracy of recorded performance measures that govern the vesting of share awards and incentives;
•On an annual basis, approving the granting of share options or performance shares to qualifying employees of the company’s investors;Company;
•Regularly reviewing incentive schemes to ensure continued contribution to shareholder value and ensureensuring that these are administered in terms of the rules;rules of the relevant incentive scheme;
Regularly reviewing human resources strategy aimed at•As and when required, considering proposed amendments to the rules of the incentive schemes and making recommendations for their approval by shareholders;
•Reviewing the executive director’s termination payments and ensuring the supply and retention of sufficient skilled resources to achieve the company’s objectives;
Ensure that they are included in the remuneration policy together with any obligations arising from such contracts which would give rise to termination payments; and
•Appointing an independent remuneration advisor to provide consultation to the executive directors, who make recommendations to the Board and implementation report is put to a non-binding advisory vote atshareholders on the general meetingremuneration of non-executive directors, taking into consideration market trends on non-executive directors’ remuneration, the views and sentiments of shareholders once every year; and
Review the outcomefinancial position of the implementation of the remuneration policy to ensure that the set objectives are being achieved and fairness is addressed.Company.


The current members of the CommitteeRemco are:


Remuneration and Human
Resource Committee Members
MDCMC Richter (Chairperson and independent NED)
NP January-BardillR Gasant (Independent NED)
SM Pityana (Board Chairman)
AM Ferguson (Independent NED)
A Garner (Independent NED)
Number of meetings held from
January to December 2019
2021		FourEleven
Other individuals who regularly
attended meetings
(attended by invitation or if needed to contribute pertinent insights and information)		KPM DushniskyA Calderon (CEO)
KC Ramon (Interim CEO and CFO)
TR Sibisi (EVP: Group Human Resources)
I Boninelli (Executive Human Resources Consultant)
P Wolstenholme representing PwC (Independent Advisor to the Committee)Remco)
SD Van Rensburg (VP: Group Remuneration and Benefits and Secretary to the Committee)Remco)
EM Mabuza (VP: Group Remuneration and Benefits and Secretary to the Remco)
CM van Dyk (Remuneration and Benefits Consultant)

NED – Non-Executive Director








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Remuneration Consultants


WhereWhen appropriate, the CommitteeRemco obtains advice from independent remuneration consultants. TheThese consultants are employed directly by the CommitteeRemco and engage directly with them to ensure independence.


The CommitteeRemco has appointed PwC to provide specialist, independent remuneration advice on all forms of executive and non-executive pay.


Mercer performs an independent bespoke executive survey and its advice is primarily around salary benchmarking for both executive and non-executive pay.












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6D.    EMPLOYEES


The average number of attributable employees (including contractors) in the AngloGold Ashanti group over the last three financial years was:
202120202019
Africa17,260 16,829 15,786 
Australia1,332 1,230 1,140 
Americas9,972 8,789 8,114 
Other, including corporate and non-gold producing subsidiaries1,997 1,807 1,353 
South Africa - discontinued operations (1)
— 8,297 7,870 
Total*30,561 36,952 34,263 
*    The number of contractors employed on average during 2021 was 16,384.
 2019
 2018
 2017
Continental Africa15,786
 14,833
 13,593
South Africa7,870
 18,803
 26,245
Australia1,140
 1,051
 974
Americas8,114
 7,973
 8,511
Other, including corporate and non-gold producing subsidiaries1,353
 1,589
 2,157
Total*34,263
 44,249
 51,480
*The number of contractors employed on average during 2019 was 14,389.

(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 lawslabour legislation across our global footprint.

Except for those in Australia and regulationsthe United States, most employees in each ofour operating jurisdictions are union members. No strikes were reported for the jurisdictions in which we operate. Only our Australian operations do not have collective bargaining, as this is not recognised in Australia.reporting period.


In the South African region, in 2018 we concluded wage negotiations and signed a three-year wage agreement with all employee representatives (unions). The region has reduced its footprint, now with fewer employees compared to the previous year, as an ongoing restructuring and divestment process has resulted in a reduction in the number of mines in the portfolio.

The focus in 2019 was on stabilising and consolidating the remaining business units in South Africa. This necessitated extensive consultation with our stakeholders, especially unions and regulators, and we were able to minimise job losses and maintain strong engagement with employees as confirmed in the results of the 2019 Employee Engagement Survey.

In Continental Africa - labour relations remained stable across the region.


In Guinea, at Siguiri, 2019 started93.8% of the mine 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 obligatory biennial requirement to organizeUnion Delegation continues through regular meetings, communications and conduct employee representatives’ elections (union elections). The workforce had then been informedtimeous implementation of the renewal of the union delegation 45 days before the expiry of their term in accordance with the applicable legislation. The elections were successfully conducted on 8 February 2019. The elections were free and fair leading to the results being accepted by all contestants. Management and the union successfully concluded 2019 wage negotiations, reaching an unprecedented agreement for no salary increases for 2019 and 2020. However, management agreed to a one-off cash payment equivalent of 5% of the annual basic salary.collective agreements.

In Mali, the Sadiola labour relations climate continued to be troubled by the ongoing uncertainty relating to the decision to place the mine in restricted exploitation, and to then suspend exploitation activities. Employee morale was low and a number of industrial actions were experienced during the year.


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 for 2022 were successfully concluded in Q1 2022.

At Iduapriem, salaryfour unions represent bargaining unit employees who constitutes 95.2% of the entire workforce. To improve the collaboration between management and site unions’ leadership, a capacity building workshop on workplace labour relations practices was organised in 2021. Collective bargaining on wage adjustment framework agreed with the Ghana Mineworkers Union (GMWU) in mid-2018,for 2021 was successfully applied for 2019 wage/salary adjustment for bargaining unit employees.concluded and implemented.


In Tanzania 53% of the third collective bargaining agreement 2019 between Geita and the union (TAMICO) was signed on 19 November 2019. It marked another milestone towards building a long-term relationship based on cooperation between employer and employees.
Geita operates with two trade unions, TAMICO and NUMET. Memberships status for TAMICO stands at 56%, while the minority trade union NUMET commands a 3% membershipemployees are unionised in the bargaining unit (Paterson grades A-C4).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 remaining 41% are non-members but still enjoy servicesFourth CBA lasts for two years except for wage, education allowance and end of the two trade unions mentioned above.year package which are negotiated on an annual basis.


In the Americas region, Brazil, signed all 3three collective agreements (Nova Lima,Lima/Sabará, Santa Bárbara and Crixás). However it faced some challenges in relation to the Santa Bárbara collective agreement, specifically were signed with the union representatives,unions and ended up executingimplemented effective September 2021. The Brazilian context of higher inflation, gold price and exchange rates have made the agreement directlyprocess 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' council. employees and their representatives was key to that achievement.

CVSA, in Argentina, completed the 2019 salaries2021 salary negotiation in January 2020 (whenNovember 2021, aligned with country inflation, was known andwith a final % increase of 50.04% for 2019 was agreed) and after three prior adjustments made in2021 effective until April July and October 2019 (% increases).2022.








6E.SHARE OWNERSHIP



262

6E.    SHARE OWNERSHIP

DIRECTORS’ AND PRESCRIBED OFFICERS’ INTERESTS IN ORDINARY SHARES


The interests of directors and prescribed officers in the ordinary shares of the company at 31 December 2019,2021, 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 33-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 20192021


Refer "Itemto “Item 18: Note 33 - 31—Related Parties - Parties—Directors’ and Prescribed Officers’ interests in AngloGold Ashanti shares"shares”




SHARE OWNERSHIP OF EXECUTIVE OFFICERS/EXECUTIVE MANAGEMENT


To the best of its knowledge, AngloGold Ashanti believes that AngloGold Ashantiits ordinary shares held by executive officers, in aggregate, do not exceed one percent of the company'scompany’s issued ordinary share capital.




MINIMUM SHAREHOLDING REQUIREMENT FOR EXECUTIVESEXECUTIVE MANAGEMENT


With effect from March 2013, a minimum shareholding requirement (MSR) was introduced for the executive management team (including executive directors). All executive management team members (including executive directors) are required to have a minimum shareholding in the Company as per the table below.

The MSR was extended to include a 12- month post termination holding, effective 1 January 2022:

RoleWithin three years of appointment/from introduction of MSR (1 January 2020)Within six years of appointment/from introduction of MSR (1 January 2020)Holding requirement12 - month Post Termination Holding
(1 January 2022)
CEO150% of net annual base salary300% of net annual base salaryThroughout employment as a director or prescribed officerThe post-termination MSR will be the requirement based on the MSR policy at the time of termination. Should the executive depart (or no longer serve as director or prescribed officer) before they have achieved the MSR, all shares allocated effective 1 January 2022 form the company’s share incentive will be held for one year post-termination period. The holding will be up to their required MSR.
CFO125% of net annual base salary250% of net annual base salary
Executive Management Team100% of net annual base salary200% of net base salary
The following count towards an individual MSR:
•Shares purchased on the market, either directly or indirectly
•Vested shares from AngloGold Ashanti’s share incentive schemes
Accumulation of the post termination holding commences on 1 January 2022, Executives have 5 years from introduction or appointment to accumulate holding





263


The table below summarises each executive director and executive committee member’s accomplishment of the MSR:

ExecutiveSix-year target achievement date
MSR holding as at 31 December 2021 as a percentage
of net base pay
Three-year MSR target achievement percentageSix-year MSR target achievement percentage
Executive directors
A Calderon (1)
September 20277%150%300%
KC RamonMarch 2021899%125%250%
Prescribed officers
SD BaileyJanuary 2025199%100%200%
I Boninelli (2)
April 20270 %100%200%
VA Chamberlain (3)
October 202757%100%200%
GJ Ehm (4)
March 2019243%100%200%
L EybersMarch 2023370%100%200%
MC Godoy (5)
October 20270 %100%200%
L MarwickJuly 2026108%100%200%
S Ntuli (6)
January 2025181%100%200%

(1) Appointed executive director with effect from 1 September 2021 and the three-year MSR achievement is due in September 2024.
(2) Appointed prescribed officer with effect from 1 April 2021 and the three-year MSR achievement is due in April 2024.
(3) Appointed prescribed officer with effect from 1 October 2021 and the three-year MSR achievement is due in October 2024.
(4) Retired prescribed officer with effect from 31 December 2021. MSR holding not required.
(5) Appointed prescribed officer with effect from 15 October 2021 and the three-year MSR achievement is due in October 2024.
(6) Prescribed officer separated from the Company due to the reconfigured Operating Model with effect from 31 December 2021. MSR holding not required.

MINIMUM SHAREHOLDING REQUIREMENT FOR NON-EXECUTIVE DIRECTORS (“NEDs”)

During February 2022, the board approved an MSR for NEDs. In terms of the policy, NEDs are required to acquire and hold an MSR in AngloGold Ashanti shares, equivalent to 150% of their annual base fee within four years of the effective date of the policy for existing NEDs and from the effective date of appointment for new NEDs.

ANGLOGOLD DEFERRED SHARE PLAN (DSP)

On 16 May 2017, the shareholders approved the introduction of the Deferred Share Plan (DSP). The DSP became effective 1 January 2018 and was designed to better align the interests of company management with those of shareholders by rewarding decision-making that promotes the long term health of the business by increasing the maximum vesting period of shares from two to five years, and introducing a claw-back provision, reducing the impact of uncontrollable factors, like gold price and currency fluctuations, in determining remuneration, providing better incentive for prudent, value-adding capital allocation, capping the number of shares that can be issued under the DSP in any given year to 1% of total shares in issue, and providing greater incentives for excellence in the broad area of sustainability, which covers the safety, environmental, health, governance, community relations and human capital disciplines.

The scope of participation in the DSP include Executive Directors, members of the Executive Committee and senior management employees of the company and its subsidiaries. These participants are allocated units with the opportunity to acquire shares in the company. The intention of the incentive scheme is to ensure that the medium- to long-term interests of the executives and senior management employees are aligned with the shareholders’ interests, providing rewards to the executives and senior management employees and wealth creation opportunities to the shareholders when the strategic performance drivers are achieved. All share awards which remain unexercised by the tenth-year anniversary from the date of grant, automatically lapse for no value.

Non-Executive Directors are not eligible to participate in the DSP.

Each metric is weighted and has a threshold, target and stretch definition related to the company budget and the desired stretch targets for the year. Below threshold achievement results in no payment. At the end of each financial year, the Company’s and the CEO, CFO and EVP/COO’s performance is assessed by the Remco and the Board against the defined metrics to determine



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the quantum of the cash portion and the quantum of the deferred portion as a percentage of base salary based on on-target achievement:
CashSharesTotal Incentive
LevelOn Target Achievement
CEO100.00%200.00%300.00%
%
%
CFO85.00%
%		185.00%
%		270.00%
%
%
EVP/COO75.00%
%		174.00%
%		249.00%
%
%

CEO means Chief Executive Officer.
CFO means Chief Financial Officer.
EVP/COO means Executive Vice President/Chief Operating Officer.

One set of performance metrics is used to determine the cash portion and deferred portion. Future vesting of the deferred portion is subject to continued employment with the exception of the Executive Committee members who have post termination vesting for good-leavers. Effective 1 January 2021, all Executive Committee members (including the CEO and CFO) streamlined strategic objectives (KPIs), between 3 to 4 at a maximum, as compared to the previous 10 KPIs as held by the CEO. Individual KPIs account for 20% of the performance scorecard in the DSP incentive scheme and 80% towards the company scorecard.

Company and individual performance measures are assessed over each financial year, with the exception of certain company measures that are measured over a trailing three-year basis. The first allocation under the DSP was made in February 2019 in respect of the 2018 performance year. For further information about the DSP, see Exhibit 19.4.1.3.

PARTICIPATION BY EXECUTIVE DIRECTORS, EXECUTIVE MANAGEMENT TEAM MEMBERS AND OTHER MANAGERS IN THE ANGLOGOLD SHARE INCENTIVE SCHEME

For details of the share-based awards and rights to subscribe for ordinary shares in the company granted to, and exercised by, executive directors, executive management team members and other managers on an aggregate basis during the year to 31 December 2021 and subsequent to year end up to 23 March 2022, see “Item 18: Financial Statements-Note 31-Related Parties-Directors and other key management personnel”.

PARTICIPATION BY EMPLOYEES IN THE ANGLOGOLD SHARE INCENTIVE SCHEME

For details of the share-based awards and rights to subscribe for ordinary shares in the company granted to, and exercised by, employees on an aggregate basis during the year to 31 December 2021, see “Item 18: Financial Statements—Note 9—Share Based Payments”.





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ITEM 7: MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS

Overview

Description of AngloGold Ashanti’s share capital

AngloGold Ashanti’s share capital consists of four classes of stock:

•Ordinary shares, par value 25 South African cents each (the “ordinary shares”);
•A redeemable preference shares, par value 50 South African cents each (the “A redeemable preference shares”);
•B redeemable preference shares, par value 1 South African cent each (the “B redeemable preference shares”); and
•C redeemable preference shares of no par value (the “C redeemable preference shares”).

The authorised and issued share capital of AngloGold at 31 December 2021 is set out below:
Title of classAuthorisedIssued
Ordinary shares600,000,000 417,501,452 
A redeemable preference shares2,000,000 — 
B redeemable preference shares5,000,000 — 
C redeemable preference shares30,000,000 — 

All the issued ordinary shares are fully paid and are not subject to further calls or assessment by AngloGold Ashanti. The A and B redeemable preference shares were redeemed in December 2021. No C redeemable preference shares have been issued as of 23 March 2022. Accordingly, there are no A, B or C redeemable preference shares outstanding as of 23 March 2022. For a discussion of rights attaching to the ordinary shares, the A redeemable preference shares, the B redeemable preference shares and the C redeemable preference shares, see “Item 10B: Memorandum of Incorporation”.

The following are the movements in the ordinary issued share capital at 31 December:

Ordinary shares
Number of
Shares		RandNumber of
Shares		RandNumber of
Shares		Rand
202120202019
At 1 January416,890,087 104,222,525 415,301,215 103,825,307 412,769,980 103,192,498 
Issued during the year:
Exercise of options by participants in the AngloGold Share Incentive Scheme611,365 152,841 1,588,872 397,218 2,531,235 632,809 
31 December 2021417,501,452 104,375,366 416,890,087 104,222,525 415,301,215 103,825,307 

During the period 1 January 2022 to and including 23 March 2022, 727,597 ordinary shares were issued at an average issue price of R246.32 per share, resulting in 418,229,049 ordinary shares being in issue at 23 March 2022.

Redeemable preference shares

A and B redeemable preference shares, all of which were held by Eastvaal Gold Holdings Limited, a wholly owned subsidiary of AngloGold Ashanti, were redeemed in December 2021. As of 23 March 2022, the Company has not issued any C redeemable preference shares. The C redeemable preference shares have no par value but have the same rights as the B redeemable preference shares save that the C redeemable preference shares rank after the B redeemable preference shares (but prior to the A redeemable preference shares) as regards the payment of dividends, redemption proceeds and payment on winding up of the company. Accordingly, there are no A, B or C redeemable preference shares outstanding as of 23 March 2022. The process to cancel all the authorised A, B and C redeemable preference shares is in process.








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7A.    MAJOR SHAREHOLDERS

According to information available to the directors, the following are the only shareholders or their associates holding, directly or indirectly, in excess of five percent of the ordinary issued share capital of the company:
Ordinary shares held at31 December 202131 December 202031 December 2019
Shareholder*Number of
Shares		Percent
Voting
Rights		Number of
Shares		Percent
Voting
Rights		Number of
Shares		Percent
Voting
Rights
Public Investment Corp. of South Africa44,332,506 10.62 39,846,637 9.56 30,439,075 7.33 
Coronation Holdings37,322,250 8.94 n/an/an/an/a
BlackRock Inc.27,155,066 6.50 27,956,084 6.71 41,236,154 9.93 
Van Eck Globaln/an/a26,488,311 6.35 27,375,511 6.59 

* Shares may not necessarily reflect the beneficial shareholder.

At 31 December 2021, a total of 135,501,107 shares (or 32.5 percent of issued ordinary share capital) were held by The Bank of New York Mellon, as Depositary for the company’s American Depositary Receipt programme. Each American Depositary Share (ADS) is equivalent to one ordinary share. At 31 December 2021, the number of persons who were registered holders of ADSs was reported at 2,012. AngloGold Ashanti is aware that many ADSs are held of record by brokers and other nominees, and accordingly the above numbers are not necessarily representative of the actual number of persons who are beneficial holders of ADSs or the number of ADSs beneficially held by these persons.

All ordinary shareholders have the same voting rights.

As at 31 December 2021, there were 24,731 holders on record of AngloGold Ashanti ordinary shares. Of these holders 486 had registered addresses in the United States and held a total of 63,440,198 ordinary shares, or 15.20 percent of the total outstanding ordinary shares. In addition, certain accounts on record with registered addresses outside the United States, including The Bank of New York Mellon, hold AngloGold Ashanti ordinary shares, in whole or in part, beneficially for United States persons.

At 23 March 2022, a total of 127,824,510 ADSs or 30.6 percent of total issued ordinary share capital were issued and outstanding and held on record by 1,994 registered holders.

Insofar as is known to AngloGold Ashanti, there was no person who, directly or indirectly, jointly or severally, exercised or could exercise control over AngloGold Ashanti, nor is AngloGold Ashanti aware of any arrangements which might result in a change in control of AngloGold Ashanti.



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7B.    RELATED PARTY TRANSACTIONS

The Company had the following transactions with related parties during the year ended 31 December:
2021
Purchases from related party
(in million)$
Purchases of goods and services from related parties
Rand Refinery (Pty) Limited14 

2021
Sales and
services
rendered to
related parties
(in million)$
Sales and services rendered to related parties
Rand Refinery (Pty) Limited7 

Amounts due by joint ventures and associates arising from purchases of goods and services are unsecured and non-interest bearing.

As at 31 December 2021 the outstanding balances arising from the sale of goods and services due by associates and joint ventures is $7 million.

As at 31 December 2021 there are no outstanding balances arising from loans owed to or by related parties.






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7C.    INTERESTS OF EXPERTS AND COUNSEL

Not applicable.



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ITEM 8: FINANCIAL INFORMATION




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8A.    CONSOLIDATED FINANCIAL STATEMENTS AND OTHER FINANCIAL INFORMATION

See “Item 18: Financial Statements”.





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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.







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•Ghanaian tax authorities v. AngloGold Ashanti (Ghana) Limited (AGAG): In Ghana, AGAG received tax assessments of $9 million as of 31 December 2021 in respect of the 2004-2014 tax years, following an audit by the Ghanaian tax authorities related to withholding taxes on payments to non-resident persons. AGAG raised objections with the Ghanaian tax authorities and believes that the withholding taxes were not properly assessed. On several occasions, most recently in 2017, AGAG met with the Commissioner-General of the Ghana Revenue Authority and provided its position in writing together with the relevant supporting documentation. AGAG has yet to receive a response from the Commissioner-General.

COLOMBIA

•Santa María-Montecristo and La Colosa class action lawsuits: Class action lawsuits have been filed in relation to each of AngloGold Ashanti Colombia S.A.S.’s (AGAC) Santa María-Montecristo and La Colosa projects. Each of the two lawsuits aims to stop exploration and mining in certain restricted areas affected by the projects due to environmental concerns.

In respect of the Santa María-Montecristo class action lawsuit, in September 2011, the Administrative Court of Tolima granted one of the plaintiffs a preliminary injunction suspending AGAC’s mining concession contracts in relation to this project. AGAC has challenged this injunction, nevertheless, it remains in place during the course of the court proceedings. In May 2019, the Administrative Court of Tolima ruled that a technical study be prepared to define the places in which mining activities could be performed in the Combeima canyon without posing any threat to the water reservoirs of Ibagué, the capital of the Tolima department. In September 2020, the Council of State of Colombia (the highest court for administrative matters) on appeal overruled the decision of the Administrative Court of Tolima. The Council of State’s decision, which is final and not subject to further appeal, determined that AGAC, as concessionaire, has a right to develop the project if it can demonstrate to the mining and environmental authorities on the basis of technical studies that its mining exploration and, eventually, exploitation activities, will not impact the water resources of the Coello River basin and its tributaries. Until such time, the injunction remains in place.

The consolidated La Colosa class action lawsuit originally consisted of four separate class actions. In relation to this project, in October 2016, Tolima’s Administrative Court ordered that a technical study be prepared by a panel of seven experts (selected by the plaintiff, AGAC, universities, the Colombian government and an NGO) to determine whether the La Colosa project presents a “threat” to the environment during its exploration phase. In December 2017, Ibagué’s Third Administrative Court ordered that another technical study, similar to the one described in the October 2016 order, be prepared for the La Colosa project. AGAC appealed both orders. In September 2018, Tolima’s Administrative Court consolidated all class actions in relation to the La Colosa project into one single class action lawsuit which is currently pending before the Council of State. The orders to prepare the technical studies have been temporarily suspended pending resolution by the Council of State. If AGAC’s appeal before the Council of State is not successful, the company may have to perform one or more technical studies in relation to the La Colosa project. If the studies were to conclude that a “threat” exists, certain development activities at the La Colosa project may be suspended.

Further, while the plaintiffs in the La Colosa class action have petitioned the courts to cancel the mining concession contracts, the company believes that the judiciary system in Colombia does not have the authority to order such cancellation. Such power, by law, vests solely in the Colombian government which, through the relevant Colombian mining authorities, has the discretion to declare concessions void if a concession holder breaches applicable environmental laws or regulations. The Colombian government, as the authority granting the mining concession contracts, is also a defendant in this class action lawsuit together with AGAC. AGAC continues to oppose, through a variety of integrated legal and political strategies, the class action lawsuit that was filed against it. However, if the plaintiffs prevail and AGAC is unable to perform its core concession contracts as a result of the judicial decision, the company would be required to abandon the project.

•Cortolima’s injunction against AngloGold Ashanti Colombia S.A.S. (AGAC): In March 2013, Cortolima, a regional environmental authority in the Tolima department, issued a regulatory injunction against AGAC alleging, among other things, that in relation to certain of AGAC’s La Colosa mine design-related activities in the municipality of Piedras, AGAC engaged in drilling and other activities that could have negative effects on the environment. The injunction did not include any allegation that AGAC’s actions actually caused any environmental damages in Piedras. AGAC’s challenge of the injunction was unsuccessful before Cortolima. In August 2013, AGAC initiated legal proceedings before the Council of State of Colombia (the highest court for administrative matters) seeking annulment of the injunction as well as restoration of its rights to continue its activities in the area. In November 2019, the Council of State ruled that the competent judicial authority to decide on this matter is the Administrative Court of Tolima and referred the case to that court. In July 2020, the Twelfth Administrative Court of Tolima ruled that since the injunction is a preliminary and temporary measure imposed as part of the administrative approval process within Cortolima and not a final decision, it is not yet amenable to administrative judicial review. On 29 July 2021, this decision was reversed on appeal by the Administrative Superior Court of Tolima in a ruling that such injunctions are amenable to administrative judicial review. The appellate court ordered the Twelfth Administrative Court of Tolima to review the matter and issue a decision thereon. Consequently, the Twelfth Administrative Court of Tolima admitted the case and a first hearing is scheduled to be held on 21 April 2022. The company expects that a final resolution of this matter will include payment of a penalty by AGAC in an amount that is not expected to be material. While the injunction remains in place, AGAC is not able to engage in certain of its activities related to the La Colosa project.




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•Piedras and Cajamarca popular consultations: In 2013, the local council of the city of Piedras, near the La Colosa project, organised a popular consultation to ban all mining activities in Piedras (Piedras popular consultation), the result of which was validated by the Administrative Court of Tolima as part of an administrative procedure. Although the Piedras popular consultation did not have an immediate impact on the La Colosa project (due to its distant location from the project), AGAC believes the Piedras popular consultation was in violation of national law in Colombia. In 2013, AGAC filed a ‘tutela’ action (a legal action alleging a violation of constitutional rights) with the Council of State of Colombia (the highest court for administrative issues). In 2014, AGAC’s ‘tutela’ action was dismissed by the Council of State for lack of standing on the grounds that AGAC did not have mining tenements in Piedras. In addition, in 2015, AGAC filed a request for annulment of the administrative acts adopted by the local authorities in furtherance of the results of the Piedras popular consultation, which was rejected by the Second Administrative Court of Ibagué. AGAC subsequently appealed this ruling. On 22 July 2021, AGAC was notified that the Administrative Superior Court of Tolima ruled on appeal that, in light of the 2018 decision of the Constitutional Court of Colombia (the highest court for constitutional issues) holding that local municipalities or regions are not entitled to veto mining activities through popular consultations (as further described below), the results of the Piedras popular consultation, and the administrative acts adopted in furtherance thereof, were not enforceable. On 13 September 2021, a third party filed a ‘tutela’ action with the Council of State arguing that the Administrative Superior Court of Tolima did not have the authority to determine that the results of the Piedras popular consultation, and the administrative acts adopted in furtherance thereof, were not enforceable. On 15 December 2021, the Council of State dismissed this ‘tutela’ action for lack of standing.

In March 2017, the residents of the municipality of Cajamarca also voted in a popular consultation to disapprove mining projects in the municipality, including the La Colosa project (Cajamarca popular consultation). However, the Mining Minister of Colombia subsequently publicly confirmed that Cajamarca’s vote does not apply retroactively implying the Cajamarca popular consultation did not have an immediate impact on AGAC’s rights with respect to the La Colosa project. In April 2017, AGAC nevertheless suspended all exploration activities at the La Colosa project until there is more certainty about mining activity in Colombia. On 11 October 2018, the Colombian Constitutional Court issued ruling SU-095-2018 stating that local municipalities or regions were not entitled to veto mining activities through popular consultations. The Constitutional Court also ordered the national legislative body, the Congress of Colombia, to enact a law within two years to ensure that local communities and groups are adequately consulted in the approval of mining activities in accordance with specific criteria set out in its ruling. Subsequently, a group of citizens submitted an annulment claim before the Administrative Court of Cundinamarca to cancel AGAC’s mining contract in Cajamarca on the grounds of the results of the Cajamarca popular consultation. After having admitted the annulment claim in December 2019, the Administrative Court of Cundinamarca dismissed the plaintiffs’ claim on 26 May 2021 on procedural grounds. The plaintiffs subsequently appealed this decision and the appeal is currently pending before the Council of State.

•La Colosa Human Rights Litigation: In November 2014, the Personero (Ombudsman) of Ibagué, the capital of the Tolima department, filed a petition against the Colombian government before the Inter-American Commission on Human Rights (Commission), based in Washington, D.C., for alleged human rights violations protected by the American Convention on Human Rights (Convention) which has been ratified by Colombia along with many other Central and South American countries. The Commission has the power to refer a case to the Inter-American Court of Human Rights (Court) which is an autonomous judicial institution based in San José, Costa Rica whose purpose is the application and interpretation of the Convention. The petition alleges that the Colombian government denied justice to the Personero as a result of the failure of the Colombian judiciary to resolve the issues raised in two class actions filed by him before the local Colombian administrative courts within a reasonable period of time. Although AGAC is not a party to the suit, its outcome is nevertheless important to the development of the La Colosa project. The Commission currently has not accepted nor referred the case to the Court. If the case would be accepted or referred in the future, the Colombian government will have to defend itself against the lawsuit and will be bound by the findings of the Court. AGAC continues to regularly follow up with the Colombian government for updates.

•Paramo Delimitation: In November 2016, the Colombian government issued Resolution 1987 delineating certain wetlands or moorlands as environmentally important protected areas, which designation includes certain areas in and around the La Colosa project. In these areas there are limitations, or in some instances outright bans, on mining and mining-related activities. These limitations and bans could potentially adversely impact the design, operations and production of the mining project at the La Colosa project. In June 2017, AGAC filed suit against the Colombian Ministry of the Environment in the Administrative Court of Cundinamarca to annul Resolution 1987 on technical and other grounds. The lawsuit was admitted in April 2019. The Ministry of the Environment, as defendant in this action, is expected to file its response to the annulment claim.

•Zonte Metals: A Canadian junior mining company, Zonte Metals, filed applications for title to certain corridors, or small slivers of land, overlaying sections of the Gramalote project. The Secretary of Mines of Antioquia, the department in which the Gramalote project is located, denied the applications filed by Zonte Metals. However, Zonte Metals then filed a claim against the Colombian National Mining Agency (ANM) and the Antioquia Secretary of Mines before the Council of State of Colombia, by which it seeks to (i) revoke the resolution that denied its application and (ii) obtain the rights over the corridors requested in its application. The Council of State subsequently enjoined the Antioquia Secretary of Mines and Gramalote Colombia Limited (Gramalote) from progressing a pending application to integrate the disputed corridors with Gramalote’s tenement. The Antioquia Secretary of Mines has filed its response to the Zonte Metals claim, which includes arguments



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aligned with the interests and position of Gramalote. In September 2017, the Council of State approved Gramalote’s request to be made an interested party to the lawsuit, but it rejected Gramalote’s request to join the Antioquia Secretary of Mines as a co-defendant in August 2019. In January 2019, the Council of State also re-affirmed that the Council of State is the competent judicial authority to hear the matter. The date for the first hearing is currently pending.

GHANA

•Pompora Treatment Plant Litigation: In April 2013, AngloGold Ashanti (Ghana) Limited (AGAG) received a summons from Abdul Waliyu and 152 others in which the plaintiffs allege that they were or are residents of the Obuasi municipality or its suburbs and that their health has been adversely affected by emissions and/or other environmental impacts arising in connection with the current and/or historical operations of the Pompora Treatment Plant (PTP), which was decommissioned in 2000. The plaintiffs’ alleged injuries include respiratory infections, skin diseases and certain cancers. The plaintiffs subsequently did not timely file their application for directions but AGAG intends to allow some time to pass prior to applying to have the matter dismissed for want of prosecution. In February 2014, executive members of the PTP (AGAG) Smoke Effect Association (PASEA), sued AGAG by themselves and on behalf of their members (undisclosed number) on grounds similar to those discussed above, as well as economic hardships resulting from the failure of their crops. This matter has been adjourned indefinitely.

•Mining and Building Contractors Limited: In October 2011, AGAG terminated Mining and Building Contractors Limited’s (MBC) underground development agreement, construction on bulkheads agreement and diamond drilling agreement at Obuasi mine. The parties reached agreement on the terms of the separation and concluded a separation agreement in November 2012. In February 2014, AGAG was served with a demand issued by MBC claiming a total of $97 million. In December 2015, the proceedings were stayed in the Ghanaian High Court pending arbitration. In February 2016, MBC submitted the matter to arbitration. The arbitration panel has been constituted and held an arbitration management meeting to address initial procedural matters in July 2019. In May 2020, the Ghana Arbitration Centre granted MBC’s request to stay the arbitral proceedings indefinitely to enable it and AGAG to explore possible settlement. On 12 April 2021, the parties executed a settlement agreement to resolve the matter at no cost to either of the parties.

•Ghana Mining Licenses Litigation: In January 2019, AGAG and AngloGold Ashanti (Iduapriem) Limited (AAIL), along with other Ghanaian mining companies, were served with writs by two members of the Ghanaian Parliament seeking to invoke the jurisdiction of the Ghanaian Supreme Court (highest court in Ghana) for a declaration that the mining companies were not entitled to carry out any exploitation of minerals otherwise allowed under their relevant mining leases unless the leases had been timely ratified by the Parliament of Ghana. In January 2019, the Ghanaian Attorney General filed its statement of case, agreeing with the position of the plaintiffs (that the mining leases required parliamentary ratification) and requesting that the Supreme Court order the mining companies to pay the Ghanaian government all revenue related to mining activities accrued during the time such mining leases were unratified. In April 2019, AGAG and AAIL, in coordination with the other mining companies, filed their statement of case. The Supreme Court has not yet set a date for the first hearing to commence the case.

GUINEA

•Government of Guinea (National Claim Commission) v. Société AngloGold Ashanti Goldfields de Guinée SA (SAG): A national claim recovery commission established by the government of Guinea has demanded that SAG pay $43 million in dividends and penalties that would allegedly have been owed to the government of Guinea for the accounting years 2004 - 2007. SAG opposes the claim. Even though both parties had originally decided to submit their dispute to an independent audit firm to be appointed by a common accord, the independent audit firm was never appointed. In December 2010, the national claim recovery commission was disbanded and the matter was turned over to the Inspector General of the Ministry of Finance of Guinea. This matter has been dormant since it was handed over to the Inspector General.

TANZANIA

•Geita Gold Mining Limited (GGM): In January 2007, Jackson Manyelo and other plaintiffs filed a suit against GGM in the Mwanza High Court alleging that they were affected by blasting activities in the Katoma area carried out by GGM and had suffered damages in the amount of TZS9.6 billion (approximately $6 million). In April 2015, the High Court issued a judgement in favour of GGM. In 2016, plaintiffs appealed to the Court of Appeal, where the matter is pending.

•Geita Gold Mining Limited (GGM) and Samax Resources Limited (Samax) v. Government of Tanzania: In July 2017, GGM and Samax filed a notice of arbitration against the government of Tanzania arising from the enactment by the government of certain legislation that purports to make a number of changes to the operating environment of Tanzania’s extractive industries, including mining. The notice of arbitration was submitted in accordance with Article 12 of the Agreement for the Development of a Gold Mine at Geita, Mwanza between the government of Tanzania and each of GGM and Samax (the MDA), and under the 1976 Arbitration Rules of the United Nations Commission on International Trade Law (UNCITRAL). The Arbitral Tribunal has been duly constituted. Since January 2019, at the request of the parties, the arbitral proceedings have been stayed several times in order to afford the parties the opportunity to achieve an amicable resolution



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of the dispute and as a result of the impact of the COVID-19 pandemic. On 7 May 2021, the parties agreed to stay the arbitration proceedings for a further period of 18 months (until 7 November 2022).

•Arbitration under the United Kingdom-Tanzania Bilateral Investment Treaty (UK-Tanzania BIT):Unrelated to the arbitration proceedings under the MDA described above, in September 2017, GGM and Samax, together with Cluff Oil Limited and Cluff Mineral Exploration Limited, notified the government of Tanzania in writing that the Tanzanian government’s conduct amounted to a breach of its commitments under the UK-Tanzania BIT. This notice triggered a ‘cooling-off’ period under the UK-Tanzania BIT, pursuant to which the parties had six months to achieve an amicable resolution to their dispute. Following the expiry of the ‘cooling off’ period in March 2018, GGM, Samax, Cluff Oil Limited and Cluff Mineral Exploration Limited are now entitled to submit their dispute with the government of Tanzania to ICSID arbitration in accordance with the terms of the UK-Tanzania BIT to the extent that they may deem this necessary.

BRAZIL

•Public Civil Action between Mineração Serra Grande S.A. (MSG) and the Goiás State Public Prosecutor's Office (Prosecutor): In August 2019, the Prosecutor filed a public civil action against MSG in the local court of Crixás (Court) arguing that the Serra Grande tailings dam should be deactivated and decommissioned due to its size and upstream construction method. The Prosecutor requested the Court to grant an injunction ordering MSG to, inter alia, completely deactivate the tailings dam by 15 September 2021 and decommission the tailings dam, including complete removal of tailings material, by 15 September 2022. Further, the Prosecutor requested that a daily penalty of approximately $245,000 be imposed for MSG’s failure to comply with such injunction. MSG submitted its defence in September 2019 and contends that it has not violated any Brazilian laws or regulations applicable to operations of the Serra Grande tailings dam. In February 2020, the Court granted an injunction in respect of a number of the requests made by the Prosecutor. In line with the legal requirements of ANM Resolution No. 13/19, the injunction ordered the deactivation of the Serra Grande tailings dam by 15 September 2021, but did not include requirements to decommission the tailings dam, or to conduct complete removal of tailings material, by 15 September 2022. MSG filed a motion for clarification in relation to certain items of the Court’s decision. In May 2020, the Court clarified that its injunction should be interpreted in line with the legal requirements of ANM Resolution No. 13/19. In June 2020, the Prosecutor presented further technical arguments in court, reiterating its request for an injunction ordering MSG to, inter alia, deactivate the tailings dam by September 2021 and to decommission the tailings dam, including complete removal of tailings material. Afterwards, MSG filed an interlocutory appeal against the preliminary injunction granted in February 2020 and a motion for further clarification. In August 2020, both MSG and the Prosecutor filed petitions informing the Court that the parties did not wish to produce oral evidence at a hearing. On 29 May 2021, the Court upheld the preliminary injunction ordering the deactivation of the Serra Grande tailings dam by 15 September 2021 and its decommissioning by 15 September 2025, both of which are consistent with the deadlines established by existing legal and regulatory requirements. On 28 June 2021, the Prosecutor appealed this decision. This appeal is currently pending before the Court of Appeals of Goiás.

•Public Civil Action between AngloGold Ashanti Córrego do Sítio Mineração SA (AGA Mineração) and the Minas Gerais State Public Prosecutor's Office (Prosecutor): In March 2020, the Prosecutor filed a public civil action against AGA Mineração in the local court of Sabará (Court) alleging a violation of Minas Gerais Law No. 23.291/19, which was adopted in February 2019. Article 12 of this law prohibits the grant of an environmental license for construction, installation, expansion or raising of a tailings dam if the “dam break” studies identify communities that are located in the self-rescue zone. In February 2020, the state of Minas Gerais approved AGA Mineração’s permit to operate the Cuiabá tailings dam following the determination by the Minas Gerais’ Attorney’s Office that Law No. 23.291/19 does not apply to tailings dams already in operation. In its lawsuit, the Prosecutor requested the Court to grant an injunction ordering the suspension of AGA Mineração’s operational permit for the Cuiabá tailings dam on the grounds that it was issued in violation of this law. During the months of March through May 2020, all parties presented their arguments in court. In June 2020, the Court rejected the Prosecutor’s request to grant an injunction. In July 2020, the Court’s decision not to grant an injunction was upheld on appeal by the Court of Appeals of Minas Gerais. Subsequently, the Court issued an order proposing a conciliation hearing between the parties, to which none of the parties objected. On 28 January 2022, the parties filed a joint petition requesting the cancellation of the conciliation hearing and the suspension of the legal proceedings in view of negotiations between the parties to explore a possible settlement.






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DIVIDENDS

General

Dividends are proposed by and approved by the board of directors of AngloGold Ashanti (the “board”), based on the company’s financial performance and compliance with applicable laws, including in respect of the solvency and liquidity test contemplated in the SA Companies Act. Dividends are recognised when declared by the Board. AngloGold Ashanti’s dividend policy allows the Board to declare a semi-annual dividend to be based on 20 percent of the free cash flow generated by the business for that financial year, before taking into account growth capital expenditure, subject to applicable laws required to be complied with before a dividend may be declared by the Board. The Board may exercise its discretion on an annual basis, taking into consideration the prevailing market conditions, balance sheet flexibility and future capital commitments of the group.

As a company incorporated in accordance with and bound by the company laws of the Republic of South Africa with its primary listing on the Johannesburg Stock Exchange, AngloGold Ashanti is required to declare dividends in South African rands. Therefore, dividends are declared in South African rands and paid in Australian dollars, South African rands, British pounds and Ghanaian cedis. Dividends paid to registered holders of AngloGold Ashanti ADSs are paid in US dollars converted from South African rands by The Bank of New York Mellon, as Depositary, in accordance with the deposit agreement. Exchange rate fluctuations may therefore affect the value of the dividends received by registered shareholders and distributions paid by the relevant Depositary to investors holding AngloGold Ashanti securities. Moreover, fluctuations in the exchange rates of the US dollar may affect the US dollar price of the ADSs on the NYSE. For details on taxation and exchange controls applicable to holders of ordinary shares or ADSs, see “Item 10D: Exchange Controls”, “Item 10E: Taxation—South African Taxation — Taxation of dividends” and “Item 10E: Taxation—United States Taxation — Taxation of dividends”.

Dividends declared (in the ordinary course from trading and non-trading profits) to foreign shareholders are not subject to the approval by the South African Reserve Bank (SARB) in terms of South African foreign exchange control regulations. Dividends are freely transferable to foreign shareholders from both trading and non-trading profits earned in South Africa by publicly listed companies. Dividends in specie or special dividends may require SARB approval prior to declaration and payment to foreign shareholders.

Under South African law, the company may declare and pay dividends from any reserves included in total shareholder’s equity (including share capital and share premium) calculated in accordance with International Financial Reporting Standards (IFRS), subject to the solvency and liquidity test.

Withholding tax

South Africa currently imposes a Dividend Withholding Tax on Companies (dividends tax) at a rate of 20 percent on the net amount of the dividend declared and paid by a resident company, other than a Headquarter Company.

The dividends tax is generally imposed on the beneficial owner of the dividends. The dividends paid to South African shareholders may be exempt from dividend withholding tax in terms of certain domestic exemptions, or may be reduced to a lower rate under an applicable double tax treaty, if the required declarations and undertakings are provided by the beneficial owner of the dividend. In the case of dividends paid to a US holder with respect to shares, the Convention Between the Government of the United States of America and the Republic of South Africa for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income and Capital Gains, signed 17 February 1997 (the “US/SA Double Taxation Treaty”) would generally limit the dividends tax rate to five percent of the gross amount of the dividends if a corporate US holder holds directly at least 10 percent of the voting stock of AngloGold Ashanti. In all other cases, the maximum tax rate under the US/SA Double Taxation Treaty is 15 percent of the gross amount of the dividend. Different rules may apply if the beneficial owner of the dividends is a US resident who carries on business in South Africa through a permanent establishment situated in South Africa, or performs in South Africa independent personal services from a permanent establishment situated in South Africa, and the dividends are attributable to such permanent establishment.













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8B.    SIGNIFICANT CHANGES

Refer to “Item 18: Financial Statements—Note 35—Subsequent Events”.





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ITEM 9: THE OFFER AND LISTING


9A.    OFFER AND LISTING DETAILS

The principal trading markets for AngloGold Ashanti’s ordinary shares are the New York Stock Exchange (NYSE), in the form of ADSs, under the symbol “AU” and the JSE Limited, in the form of ordinary shares, under the symbol “ANG”. Each ADS represents one ordinary share.






9B.    PLAN OF DISTRIBUTION

Not applicable.






9C.    MARKETS

NATURE OF TRADING MARKET

The principal trading markets for AngloGold Ashanti’s ordinary shares are the NYSE, in the form of ADSs, under the symbol “AU” (each representing one ordinary share) and the JSE Limited, in the form of ordinary shares, under the symbol “ANG”.

AngloGold Ashanti’s ordinary shares are also listed on the Ghana Stock Exchange, as ordinary shares under the symbol “AGA” and in the form of Ghanaian Depositary Shares or GhDSs (each representing one one-hundredth of an ordinary share) under the symbol “AAD”, and the Australian Securities Exchange, in the form of CHESS Depositary Interests (each representing one-fifth of an ordinary share) under the symbol “AGG”.






9D.    SELLING SHAREHOLDERS

Not applicable.






9E.    DILUTION

Not applicable.






9F.    EXPENSES OF THE ISSUE

Not applicable.



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ITEM 10:    ADDITIONAL INFORMATION


10A.SHARE CAPITAL

Not applicable.






10B.MEMORANDUM OF INCORPORATION

At the last AGM held on 4 May 2021, AngloGold Ashanti did not need to seek approval from shareholders for any amendments to its Memorandum of Incorporation (MoI).

At the annual general meeting to be held on 16 May 2022, AngloGold Ashanti will seek approval from shareholders (by way of
a special resolution) to amend the MoI as follows:

1.by the deletion of the phrase “Subject to 9.4.3, this” at the beginning of clause 1.3 and the replacement thereof with the word “This”;
2.by the deletion of clause 9 (Rights Attaching to Preference Shares) in its entirety; and
3.by the amendment of Schedule 1 (Authorised Shares) as follows:

3.1    by the deletion of paragraphs 2, 3 and 4 of Schedule 1 in their entirety; and
3.2    by the deletion of the table at the end of Schedule 1 in its entirety and the replacement thereof with the following new table:

Share capitalSouth African Rands
600,000,000 ordinary shares of R0.25 each150,000,000

The reason for these amendments is to comply with the provisions of the SA Companies Act and the JSE Listings Requirements and, following the recent redemption of all of the A redeemable preference shares and B redeemable preference shares of the Company, to remove all references in the MoI to the A redeemable preference shares, the B redeemable preference shares and the C redeemable preference shares, as well as all of the provisions relating to all such redeemable preference shares, and thereby to remove all such redeemable preference shares from the authorised share capital of the Company. Prior to the above special resolution to amend the MoI being put to the shareholders for approval at the AGM to be held on 16 May 2022, AngloGold Ashanti will first seek approval from shareholders (by way of a separate special resolution) to cancel all such classes of redeemable preference shares.

Registration

AngloGold Ashanti is incorporated under the company laws of the Republic of South Africa and is registered with the Companies and Intellectual Property Commission under registration number 1944/017354/06. The SA Companies Act has abolished the requirement for specific “object and purpose” provisions to be included in a memorandum of incorporation and although the MoI is silent on the matter, the company continues to carry on as its main business, gold exploration, the mining and production of gold, the manufacturing, marketing and selling of gold products and the development of markets for gold.
AngloGold Ashanti’s MoI is available for inspection as set out in “Item 10H: Documents on Display” and a summary of the pertinent provisions, including the rights of the holders of shares in AngloGold Ashanti, are set out below.

This summary does not contain all the information pertaining to the rights of holders of AngloGold Ashanti’s ordinary shares and is qualified in its entirety by reference to the laws of South Africa and AngloGold Ashanti’s governing corporate documents. As well as being governed by the provisions of the MoI, the rights of holders of AngloGold Ashanti’s ordinary shares are governed by the JSE Listings Requirements, the SA Companies Act and the Companies Regulations, 2011, promulgated under the SA Companies Act (the “Regulations”), which include the Takeover Regulations. Further, the rights of holders of AngloGold Ashanti ADSs are governed by the Deposit Agreement between AngloGold Ashanti and The Bank of New York Mellon.See “Item 10C: Material Contracts—The Deposit Agreement”.

The SA Companies Act provides that shares will no longer have a par or nominal value and hence no new shares having a nominal or par value may be authorised. However, any shares which have a nominal or par value authorised prior to 1 May 2011 (the effective date of the SA Companies Act) continue to have that nominal or par value and can be issued as such for so long as



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there are par value shares in the company’s authorised share capital. Should the company wish, it may also elect to convert its authorised par value shares to shares of no par value, subject to the relevant process and approvals contemplated in the SA Companies Act.

Directors

The management and control of any business of AngloGold Ashanti is vested in its board of directors (board). The authority of the board to manage and direct the business and affairs of the company is not limited, restricted or qualified by the MoI.

Appointment and Retirement of Directors

The shareholders of the company have the power to elect the directors, and shareholders are also entitled to elect one or more alternate directors, in accordance with the provisions of the MoI and the SA Companies Act.

The board may appoint any person who satisfies the requirements for election as a director to fill any vacancy and serve as a director on a temporary basis until the vacancy is filled by election by shareholders entitled to exercise voting rights in such an election.

The MoI authorises the chairman of the board, subject to the written approval of the majority of the directors, to appoint any person as a director provided that such appointment is approved by shareholders at the next shareholders’ meeting or annual general meeting.

At every annual general meeting one-third of the directors will retire by rotation, or if their number is not a multiple of three, then the number nearest to but not less than one third. The directors to retire at every annual general meeting will be those who have been the longest in office since their last election. Directors retiring by rotation are eligible for re-election. Directors who voluntarily decide not to make themselves available for re-election may be counted towards the one-third of directors required to retire at the relevant annual general meeting.

The MoI contains no provision for directors to hold qualification shares. The MoI does not impose an age limit for the retirement of directors.

Remuneration

In accordance with the SA Companies Act, the MoI provides that the directors are entitled to such remuneration for their services as directors as AngloGold Ashanti’s shareholders may approve by special resolution in a general meeting or annual general meeting within the previous two years of the date of payment of such remuneration. If a director is employed in any other capacity, or holds an executive office or performs services that, in the opinion of the board, are outside the scope of the ordinary duties of a director, he or she may be paid such additional remuneration as a disinterested quorum of directors may reasonably determine.

Interests of Directors and Restriction on Voting

Although the interests of directors are not dealt with in the MoI, the provisions of the SA Companies Act in this regard are unalterable and will automatically apply, together with the applicable common law rules. Under the SA Companies Act, the procedures to deal with the personal financial interests of directors also apply to prescribed officers (i.e., persons who exercise general executive control over and management of the whole, or a significant portion, of the business and activities of the company or regularly participate to a material degree in the exercise of general executive control over and management of the whole, or a significant portion, of the business and activities of the company, irrespective of the office held or function performed by such persons) and any person who is a member of a committee of the board of the company, whether or not that person is also a member of the company’s board. The SA Companies Act provides that a director or such other person with a personal financial interest must disclose this to the board and cannot vote on or, after having made the disclosures to the meeting as prescribed by the SA Companies Act, remain present during the meeting when the matter in which he has interest is being discussed but will be counted as present for the purposes of a quorum (but is not to be regarded as being present at the meeting for the purposes of determining whether a resolution has sufficient support to be adopted).

Share Rights, Preferences and Restrictions

Allotment and Issue of Ordinary Shares

Subject to the JSE Listings Requirements, the SA Companies Act and/or with approval of shareholders in a general meeting, unissued ordinary shares must be offered to existing ordinary shareholders, pro rata to their ordinary shareholdings, unless they are issued for the acquisition of assets. The shareholders in a general meeting may authorise the board to issue any unissued ordinary shares.





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Dividends, Rights and Distributions

The ordinary shares participate fully in all dividends, other distributions and entitlements as and when declared by AngloGold Ashanti in respect of fully paid ordinary shares. Under South African law, AngloGold Ashanti may declare and pay distributions (as defined in the SA Companies Act, which includes dividends), subject to the company satisfying the solvency and liquidity test as set out in section 4 of the SA Companies Act and the board passing a resolution acknowledging that such test has been applied and has reasonably concluded that the company would satisfy such test immediately after completing the distribution. Dividends are payable to shareholders registered at a record date after the date of declaration of the dividend.

As a company incorporated and registered in the Republic of South Africa with its primary listing on the Johannesburg Stock Exchange, AngloGold Ashanti is required to declare dividends in South African rands. Dividends are paid in South African rands, Australian dollars, Ghanaian cedis and British pounds. Registered holders of AngloGold Ashanti ADSs are paid dividends in US dollars by The Bank of New York Mellon as Depositary, in accordance with the Deposit Agreement. See “Item 10C: Material Contracts—The Deposit Agreement”.

A holder of the B redeemable preference shares is entitled to the right to an annual dividend amounting to the lesser of 5 percent of the issue price of the B redeemable preference shares or an amount equivalent to the balance of the after tax profits arising from income derived from mining the Moab Lease Area as determined by the directors in each financial year. The annual dividend shall be a first charge on any profit available for distribution from the Moab Lease Area but shall not be payable from any other profits of the Company.

A holder of the C redeemable preference shares is entitled to the right to an annual dividend amounting to the lesser of 5 percent of the issue price of the C redeemable preference shares or an amount equivalent to the balance of the after tax profits arising from income derived from mining the Moab Lease Area as determined by the directors in each financial year. The annual dividend shall be a first charge on any profit available for distribution from the Moab Lease Area ranking after and following payment of any annual dividend payable to a holder of the B redeemable preference shares, but shall not be payable from any other profits of the Company.

A holder of the A redeemable preference shares is entitled to an annual dividend equivalent to the balance of the after-tax profits from income derived from mining the Moab Lease Area as determined by AngloGold Ashanti’s directors in each financial year, only once the annual dividend on the B redeemable preference shares and the C redeemable preference shares have been paid in full.

Although not stated in the MoI, but subject to the JSE Listings Requirements and the SA Companies Act, any dividend may be paid and satisfied, either wholly or in part, by the distribution of specific assets, or in paid-up securities of AngloGold Ashanti or of any other company, or in cash, or in any one or more of such ways as the directors may at the time of declaring the dividend determine and direct.

All dividends remaining unclaimed for a period of not less than three years from the date on which they became payable, may, by a resolution of the directors, become forfeited for the benefit of the company.

Voting Rights

Each ordinary share confers the right to vote at all general meetings. Each holder present in person or by proxy or, in the case of a corporate entity, represented, has one vote on a show of hands. If a poll is held, holders present or any duly appointed proxy will have one vote for each ordinary share held. A holder of ordinary shares is entitled to appoint a proxy to attend, speak and vote at any meeting on his or her behalf and the proxy need not be a shareholder. Holders of ADSs are not entitled to vote in person at meetings, but may vote by way of proxy through The Bank of New York Mellon as the ADS issuer. Holders of Australian Chess Depositary Interests (CDIs) and Ghanaian Depositary Shares (GhDSs) are not entitled to vote in person or by proxy at meetings, but may vote by instructing Chess Depository Nominees and NTHC Limited as Depositary, respectively, how to vote their shares.

There are no limitations on the right of non-South African registered shareholders to hold or exercise voting rights attaching to any of the ordinary shares.

The A redeemable preference shares have similar voting rights to those of ordinary shares. The B and C redeemable preference shares have voting rights only in the event that a dividend on this class of share has not been paid and remains unpaid for six months or more, or in connection with resolutions directly affecting these redeemable preference shares or in limited circumstances affecting AngloGold Ashanti as a whole, such as disposal of substantially all of the company’s assets, winding up AngloGold Ashanti or reducing the company’s share capital.

At any meeting of AngloGold Ashanti at which the holders of the ordinary shares, A redeemable preference shares, B redeemable preference shares and C redeemable preference shares are present and entitled to vote on a poll, each holder of the A redeemable preference shares shall be entitled to 50 votes for every A redeemable preference share held, each holder of the ordinary shares is entitled to 50 votes for every ordinary share held and each holder of the B redeemable preference shares



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and the C redeemable preference shares is entitled to one vote for every B redeemable preference share and C redeemable preference share held respectively.

The MoI specifies that the rights relating to any class of shares may be modified or abrogated with the sanction of a resolution passed as if it were a special resolution of the holders of shares in that class at a separate general meeting. The MoI also specifies that any holders of the A, B and C redeemable preference shares may provide written consents to the modification of their rights.

Increase and Reduction of Capital

The company is authorised to issue the shares specified in the MoI and all such shares are required to be issued as fully paid up in accordance with the applicable approval and/or other requirements of the SA Companies Act and the JSE Listings Requirements.

The directors are authorised, subject to any requirements of the JSE Listings Requirements, the SA Companies Act, the Regulations and the MoI, to increase or decrease the number of authorised shares of any class of shares, reclassify any shares that have been authorised but not issued, classify any unclassified shares that have been authorised but not issued, and determine the preferences, rights, limitations or other terms of any class of authorised shares or amend any preferences, rights, limitations or other terms as determined. However, such capital amendments require an amendment to be made to the MoI. The SA Companies Act and the JSE Listings Requirements currently do not allow the MoI to be amended to give effect to such capital amendments without the approval of ordinary shareholders by special resolution.

Rights Upon Liquidation

In the event of the winding up of AngloGold Ashanti:
•The A redeemable preference shares shall confer the right, on a winding-up of the company, in priority to any payment in respect of the ordinary shares in the capital of the company then issued, but after any payment in respect of the B redeemable preference shares and the C redeemable preference shares in the capital of the company then issued, to receive only so much of the net proceeds from the disposal of the assets relating to the Moab Lease Area as is then available for distribution;
•The B redeemable preference shares shall confer the right, on a winding-up of the company in priority to any payment in respect of the ordinary shares, the A redeemable preference shares and the C redeemable preference shares then in issue, to receive only so much of the net proceeds from the disposal of the assets relating to the Moab Lease Area as is available for distribution but not exceeding a return per B preference share of the capital paid-up thereon and any share premium paid on the issue of the B redeemable preference shares outstanding at that time;
•The C redeemable preference shares shall confer the right, on a winding-up of the company, ranking after and following payment of the holders of the B redeemable preference shares, but in priority to any payment in respect of the ordinary shares and the A redeemable preference shares in the capital of the company then issued, to receive only so much of the net proceeds from the disposal of the assets relating to the Moab Lease Area as is available for distribution but not exceeding a return per C preference share of the capital paid-up on the issue of the C redeemable preference shares outstanding at that time;
•The A, B and C redeemable preference shares shall not be entitled to any participation, on a winding-up, in any of the surplus funds of the company in any other manner arising; and
•The ordinary shares confer the right to participate equally in any surplus arising from the liquidation of all other assets of AngloGold Ashanti.

Redemption Provisions

The A redeemable preference shares may be redeemed for their nominal value, plus a premium per share of an amount equal to the net proceeds available from the disposal of the assets relating to the Moab Lease Area, after redemption in full of the B redeemable preference shares and the C redeemable preference shares, and payment of the nominal value of the A redeemable preference shares, divided by 2,000,000.

The B redeemable preference shares may be redeemed for their nominal value, plus a premium of an amount equal to 175,096,390 divided by that number of B redeemable preference shares in issue, but limited to an amount equal to the net proceeds available from the disposal of the assets relating to the Moab Lease Area after payment of the nominal value of the B redeemable preference shares.

The C redeemable preference shares may be redeemed for their aggregate issue price of the said C redeemable preference shares, but shall be limited to an amount equal to the net proceeds available from the disposal of the assets relating to the Moab Lease Area and only after redemption in full of the B redeemable preference shares.





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Shareholders’ Meetings

The directors may convene meetings of AngloGold Ashanti shareholders. Subject to the provisions of the SA Companies Act, the shareholders may requisition for the convening of a meeting.

Notice of each AngloGold Ashanti annual general meeting and general meeting of AngloGold Ashanti shareholders must be delivered at least 15 business days before that shareholders’ meeting is to begin. In accordance with the SA Companies Act, business days are calculated by excluding the first day, including the last day and excluding Saturdays, Sundays and any public holiday in the Republic of South Africa. In terms of the MoI, all shareholders are entitled to attend shareholders’ meetings at which they are entitled to vote.

In the case of a class meeting of the A, B or C redeemable preference shares, the sole holder of such shares shall constitute a quorum. Save as aforesaid, the quorum of a shareholders’ meeting is sufficient persons present, in person or by proxy, at the meeting to exercise, in aggregate, at least 25 percent of all of the voting rights that are entitled to be exercised in respect of at least one matter to be decided at the meeting and a quorum must remain present for the continuation of that shareholders meeting, provided that at least three shareholders must be present and remain at the meeting. Such quorum requirement also applies for the consideration of any matter to be decided at the meeting. If the meeting is not quorate within 30 minutes after the appointed time for the meeting to begin (or such longer or shorter period as the chairperson may determine), it will be postponed, without motion, vote or further notice, for 1 week and the shareholders present, in person or by proxy, at the postponed meeting will constitute a quorum. For an ordinary resolution to be approved by shareholders, it must be supported by more than 50 percent of the voting rights exercised on the resolution. For a special resolution to be approved by shareholders, it must be supported by at least 75 percent of the voting rights exercised on the resolution.

Disclosure of Interest in Shares

Under South African law, a person must notify AngloGold Ashanti within three business days after that person (i) acquires a beneficial interest in sufficient securities of a class of securities issued by AngloGold Ashanti such that, as a result of the acquisition, the person holds a beneficial interest in securities amounting to five percent, ten percent, fifteen percent or any further whole multiple of five percent of the issued securities of that class or (ii) disposes of any beneficial interest in sufficient securities of a class of securities issued by AngloGold Ashanti such that, as a result of the disposition, the person no longer holds a beneficial interest in securities amounting to a particular multiple of five percent of issued securities of that class. When AngloGold Ashanti has received the notice referred to above it must file a copy with the Takeover Regulation Panel and report the information to holders of the relevant class of securities unless the notice concerned is a disposition of less than one percent of the class of securities.

If the securities of AngloGold Ashanti are registered in the name of a person who is not the holder of the beneficial interest in all of the securities in AngloGold Ashanti held by that person, that registered holder of the securities must disclose the identity of the person on whose behalf that security is held and the identity of each person with a beneficial interest in securities so held, the number and the class of securities held for each such person with a beneficial interest and the extent of each such beneficial interest. This information must be disclosed in writing to the company within five business days after the end of every month during which a change has occurred in the information or more promptly or frequently to the extent so provided by the requirements of a Central Securities Depository. A company that knows or has reasonable cause to believe that any of its securities are held by one person for the beneficial interest of another may by notice in writing require either of those persons to confirm or deny that fact, provide particulars of the extent of the beneficial interest held during the three years preceding the date of the notice and disclose the identity of each person with a beneficial interest in the securities held by that person, which information must be provided within 10 business days of the receipt of the notice.

AngloGold Ashanti is obligated to establish and maintain a register of the disclosures described above and to publish in its annual financial statements a list of the persons who hold beneficial interests equal to or in excess of five percent of the total number of ordinary shares issued by AngloGold Ashanti together with the extent of those beneficial interests.

Rights of Minority Shareholders

Majority shareholders of South African companies have no fiduciary obligations under South African common law to minority shareholders. However, under the SA Companies Act, a shareholder or director may, under certain circumstances, seek relief from a court if he has been unfairly prejudiced by any act or omission of the company or a related person, by the conduct of the business of the company or a related person in a particular manner, the exercise of the powers of the directors of the company or a related person in a particular manner. There may also be personal and derivative actions available to a shareholder of a company.

Pursuant to the SA Companies Act, a shareholder may petition a South African court for relief from the actions or omissions or, business conduct of the company or the actions of the company’s directors or officers that is oppressive or unfairly prejudicial to, or unfairly disregards the interest of the shareholder. In addition, a shareholder who voted against a resolution to amend the company’s MoI, or to approve a fundamental transaction, (and complied with other requirements set out in the SA Companies



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Act) may exercise its appraisal right to demand that the company pay to it the fair value for all the shares of the company held by that shareholder.

Description of ADSs

The Bank of New York Mellon issues AngloGold Ashanti’s American Depositary Shares, or ADSs. Please see “Item 10C: Material Contracts—Description of AngloGold Ashanti ADSs”.



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10C.MATERIAL CONTRACTS

Multi-currency Revolving Credit Facility

General

On 23 October 2018, AngloGold Ashanti Holdings plc (AGAH) and AngloGold Ashanti Australia Limited, as borrowers, entered into a five-year unsecured multi-currency syndicated revolving credit facility of $1.4 billion (the $1.4 billion multi-currency RCF) with The Bank of Nova Scotia, as facility agent, and certain financial institutions party thereto, as lenders. The loan consists of (i) a US dollar based facility (base currency) and (ii) an Australian dollar based facility capped at A$500 million which will be used to fund the working capital and development costs associated with the group’s mining operations within Australia (without eroding the group’s headroom under its other facilities and exposing the group to foreign exchange gains/losses each quarter). As of 23 March 2022, the equivalent of $34 million was drawn under the AUD portion of the $1.4billion multi-currency RCF.

Guarantees

The $1.4 billion multi-currency RCF is guaranteed by AGAH and AngloGold Ashanti Australia Limited. The guarantees constitute unconditional obligations of the guarantors and rank at least pari passu with all other future unsecured obligations of the guarantors, except for obligations mandatorily preferred by law.

Security

Save as set out under the heading “—Guarantees” above, the obligations under the $1.4 billion multi-currency RCF are unsecured.

Amount and repayment of borrowings

Loans under the $1.4 billion multi-currency RCF must be for a minimum of $10 million, if the currency selected is the base currency (US dollar), or a minimum of A$10 million (or for the balance of the undrawn total commitments at the time of the drawing), if the currency selected is Australian dollars. No more than 14 loans may be outstanding at any time. Each loan must be repaid on the maturity date in the same currency as the maturing loan. All loans must be repaid in full on the final maturity date. The $1.4 billion multi-currency RCF matures in October 2023.

Interest rates and fees

The annual interest rate on loans drawn under the $1.4 billion multi-currency RCF is calculated based on LIBOR, plus an initial margin of 1.45 percent per annum that varies between 0.95 percent and 2.15 percent per annum depending on the long-term debt rating of AGAH, and in relation to any Loan in Australian dollars, BBSY, and certain mandatory costs. The applicable margin is subject to a ratings grid. In this regard, the interest margin will reduce should the group’s credit rating improve from its current BB+/Baa3 status and should increase if its credit rating worsens. Interest on loans is payable on the last day of the loan’s interest period and, if the interest period exceeds six months, on the dates falling at six-monthly intervals after the day the loan was made.

The borrowers under the $1.4 billion multi-currency RCF are required to pay a commitment fee in the base currency equal to 35 percent of the then applicable margin per annum on the undrawn and uncancelled amount of each lender’s commitment during the commitment period. The borrowers are also required to pay a utilisation fee of 0.10 percent per annum (if the aggregate outstanding loans are less than one third of the total commitments then in effect), 0.20 percent per annum (if the aggregate outstanding loans are equal to or greater than one third but less than two-thirds of the total commitments then in effect) or 0.40 percent per annum (if the aggregate outstanding loans are equal to or greater than two-thirds of the total commitments then in effect).

Financial covenant

The $1.4 billion multi-currency RCF includes a financial maintenance covenant which requires that the ratio of Total Net Financial Indebtedness to EBITDA (as such terms are defined in the revolving credit agreement) does not at any time exceed 3.50 to 1.00, with the proviso that this ratio may exceed 3.50 to 1.00 once during the life of the revolving credit agreement, for one six-month period subject to certain criteria. Refer to “Item 18: Financial Statements—Note 34—Capital Management” for the formulae used in the revolving credit agreement to test compliance with the covenants.

Change of control

If a lender so requires, the commitment of such lender under the $1.4 billion multi-currency RCF will be cancelled and the participation of such lender in all outstanding loans, together with accrued interest and all other amounts accrued, will become immediately due and payable in case any person or group of persons acting in concert becomes (directly or indirectly) the beneficial owner of more than 50 percent of the issued share capital of AngloGold Ashanti Limited.




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Undertakings

The $1.4 billion multi-currency RCF contains a negative pledge covenant, including restrictions on the granting of security, a change of business of AngloGold Ashanti Limited and its subsidiaries, acquisitions or participations in joint ventures and mergers and disposals.

The $1.4 billion multi-currency RCF also contains, among other things, the following affirmative covenants: mandatory periodic reporting of financial and other information, notice upon the occurrence of events of default and certain other events, compliance with environmental laws and other obligations requiring each of AGAH and its subsidiaries to maintain its corporate existence and qualifications to conduct its business as currently conducted in all applicable jurisdictions and to maintain insurance coverage. The covenants are subject to exceptions and materiality thresholds.

Events of default

The $1.4 billion multi-currency RCF contains events of default including failure to make payment of amounts due, breach of obligations under the loan documents, defaults under other agreements evidencing indebtedness, certain bankruptcy events and a cessation of business, failure of any of the borrowers to be a wholly owned subsidiary of AGAH and the occurrence of a material adverse change in the business and financial condition of the borrowers and guarantors under the revolving credit agreement, or AngloGold Ashanti and its subsidiaries as a whole, or in the ability of the borrowers and guarantors to perform their payment obligations under the loan documents. The occurrence of an event of default could result in the immediate and automatic cancellation of all commitments and the acceleration of all payment obligations under the revolving credit agreement and the other loan documents.

The above description is only a summary of certain provisions of the revolving credit agreement and is qualified in its entirety by reference to the provisions of the revolving credit agreement, a copy of which is attached hereto as Exhibit 19.4.4.1 and is incorporated herein by reference.

Bridge Facility

On 28 April 2020, AngloGold Ashanti Holdings plc (AGAH), as borrower, entered into a US$1.0 billion unsecured bridge facility agreement with a syndicate of lenders, guaranteed by AngloGold Ashanti Australia Limited. The bridge facility was for a term of 364 days which could be extended for a further six months with consent of the lenders. Amounts outstanding under the bridge facility bore interest at LIBOR plus a margin that increased over time. The bridge facility contained certain restrictive and affirmative covenants, events of default as well as a financial maintenance covenant. The lenders under the bridge facility were required to fund only if our $1.4 billion multi-currency RCF was drawn by at least $1.39 billion. The bridge facility agreement also contained a mandatory prepayment and cancellation clause. In particular, commitments under the bridge facility were automatically cancelled upon, among other matters, the incurrence of certain indebtedness (including the offering of the 2020 Notes as described below) and the consummation of certain disposals (including, for example, the disposal of our South African operations). The bridge facility, which remained undrawn, was cancelled on 1 October 2020.

The above description is only a summary of certain provisions of the bridge facility agreement and is qualified in its entirety by reference to the provisions of the cancelled bridge facility agreement.

Notes

Each of the series of notes described below were issued under the indenture, dated as of 28 April 2010, among AngloGold Ashanti Holdings plc (AGAH), as issuer, AngloGold Ashanti Limited, as guarantor, and The Bank of New York Mellon, as trustee (the Indenture). The below descriptions are only a summary of certain provisions of those series of notes and are qualified in their entirety by reference to the provisions of the Indenture and such relevant series of notes, a copy of each is attached hereto as Exhibits 19.2.1, 19.2.2, 19.2.3, 19.2.4 and 19.2.5 and is incorporated herein by reference.

2021 Notes

On 22 October 2021, AGAH issued $750 million 3.375 percent Notes due 2028 (the “2021 Notes”). The interest on the 2021 Notes is payable semi-annually on 1 May and 1 November of each year, commencing on 1 May 2022. AGAH may on any one or more occasions redeem all or part of the 2021 Notes, at a redemption price equal to the greater of (1) 100 percent of the principal amount of the 2021 Notes to be redeemed and (2) the sum of the present values of the remaining scheduled payments of principal and interest on the 2021 Notes (excluding any portion of such payments of interest accrued or unpaid as of the date of redemption) discounted to the redemption date on a semiannual basis (assuming a 360-day year consisting of twelve 30-day months) at the treasury rate, plus 30 basis points, plus accrued and unpaid interest, if any, to the date of redemption. AGAH has agreed to pay certain additional amounts in respect of any withholdings or deductions for certain types of taxes in certain jurisdictions on payments to holders of the 2021 Notes. The 2021 Notes are unsecured and unsubordinated and are fully and unconditionally guaranteed by AngloGold Ashanti Limited.




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AGAH has agreed to observe certain covenants with respect to the 2021 Notes restricting, subject to certain limitations, the ability of AngloGold Ashanti Limited and AGAH to amalgamate, reconstruct, consolidate or merge with another company or other legal entity, and the ability of AngloGold Ashanti Limited and its restricted subsidiaries to pledge their assets to secure certain borrowings, create or incur liens on certain of their property or to engage in sale and leaseback transactions. In case of a change of control of the guarantor and a downgrade, within a specified period, of the 2021 Notes by three rating agencies, holders of the 2021 Notes have the right to require the issuer to repurchase all or any part of their 2021 Notes in cash for a value equal to 101 percent of the aggregate principal amount of 2021 Notes repurchased, plus accrued and unpaid interest, if any, on the 2021 Notes repurchased to the date of repurchase.

The offering of the 2021 Notes was registered under the Securities Act. The 2021 Notes were listed on the New York Stock Exchange.

2020 Notes

On 1 October 2020, AGAH issued $700 million 3.750 percent Notes due 2030 (the 2020 Notes). The interest on the 2020 Notes is payable semi-annually on 1 April and 1 October of each year, commencing on 1 April 2021. AGAH may on any one or more occasions redeem all or part of the 2020 Notes, at a redemption price equal to the greater of (1) 100 percent of the principal amount of the 2020 Notes to be redeemed and (2) the sum of the present values of the remaining scheduled payments of principal and interest on the 2020 Notes (excluding any portion of such payments of interest accrued or unpaid as of the date of redemption) discounted to the redemption date on a semiannual basis (assuming a 360-day year consisting of twelve 30-day months) at the treasury rate, plus 50 basis points, plus accrued and unpaid interest, if any, to the date of redemption. AGAH has agreed to pay certain additional amounts in respect of any withholdings or deductions for certain types of taxes in certain jurisdictions on payments to holders of the 2020 Notes. The 2020 Notes are unsecured and unsubordinated and are fully and unconditionally guaranteed by AngloGold Ashanti Limited.

AGAH has agreed to observe certain covenants with respect to the 2020 Notes restricting, subject to certain limitations, the ability of AngloGold Ashanti Limited and AGAH to amalgamate, reconstruct, consolidate or merge with another company or other legal entity, and the ability of AngloGold Ashanti Limited and its restricted subsidiaries to pledge their assets to secure certain borrowings, create or incur liens on certain of their property or to engage in sale and leaseback transactions. In case of a change of control of the guarantor and a downgrade, within a specified period, of the 2020 Notes by three rating agencies, holders of the 2020 Notes have the right to require the issuer to repurchase all or any part of their 2020 Notes in cash for a value equal to 101 percent of the aggregate principal amount of 2020 Notes repurchased, plus accrued and unpaid interest, if any, on the 2020 Notes repurchased to the date of repurchase.

The offering of the 2020 Notes was registered under the Securities Act. The 2020 Notes were listed on the New York Stock Exchange.

2012 Notes

On 30 July 2012, AGAH issued $750 million 5.125 percent Notes due 2022 (the 2012 Notes). The interest on the 2012 Notes was payable semi-annually on 1 February and 1 August of each year, commencing on 1 February, 2013. AGAH was permitted on any one or more occasions to redeem all or part of the 2012 Notes, at a redemption price equal to the greater of (1) 100 percent of the principal amount of the 2012 Notes to be redeemed and (2) the sum of the present values of the remaining scheduled payments of principal and interest on the 2012 Notes (excluding any portion of such payments of interest accrued or unpaid as of the date of redemption) discounted to the redemption date on a semiannual basis (assuming a 360-day year consisting of twelve 30-day months) at the treasury rate, plus 50 basis points, plus accrued and unpaid interest, if any, to the date of redemption. AGAH had agreed to pay certain additional amounts in respect of any withholdings or deductions for certain types of taxes in certain jurisdictions on payments to holders of the 2012 Notes. The 2012 Notes were unsecured and unsubordinated and were fully and unconditionally guaranteed by AngloGold Ashanti Limited.

AGAH had agreed to observe certain covenants with respect to the 2012 Notes restricting, subject to certain limitations, the ability of AngloGold Ashanti Limited and AGAH to amalgamate, reconstruct, consolidate or merge with another company or other legal entity, and the ability of AngloGold Ashanti Limited and its restricted subsidiaries to pledge their assets to secure certain borrowings, create or incur liens on certain of their property or to engage in sale and leaseback transactions. In case of a change of control of the guarantor and a downgrade, within a specified period, of the 2012 Notes below an investment grade rating by two rating agencies, holders of the 2012 Notes had the right to require the issuer to repurchase all or any part of their 2012 Notes in cash for a value equal to 101 percent of the aggregate principal amount of 2012 Notes repurchased, plus accrued and unpaid interest, if any, on the 2012 Notes repurchased to the date of purchase.

The offering of the 2012 Notes was registered under the Securities Act. The 2012 Notes were listed on the New York Stock Exchange.

The 2012 notes were redeemed in October and November 2021 and are no longer outstanding.





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2010 Notes

On 28 April 2010, AGAH issued $700 million 5.375 percent Notes due 2020 and $300 million 6.500 percent Notes due 2040 (together, the 2010 Notes). The interest on the 2010 Notes is payable semi-annually on 15 April and 15 October of each year, commencing on 15 October 2010. AGAH may on any one or more occasions redeem all or part of the 2010 Notes, at a redemption price equal to the greater of (1) 100 percent of the principal amount of the 2010 Notes to be redeemed and (2) the sum of the present values of the remaining scheduled payments of principal and interest on the 2010 Notes (excluding any portion of such payments of interest accrued or unpaid as of the date of redemption) discounted to the redemption date on a semiannual basis (assuming a 360-day year consisting of twelve 30-day months) at the treasury rate, plus 25 basis points with respect to the 2010 Notes maturing in 2020 and 30 basis points with respect to the 2010 Notes maturing in 2040, plus accrued and unpaid interest, if any, to the date of redemption. AGAH has agreed to pay certain additional amounts in respect of any withholdings or deductions for certain types of taxes in certain jurisdictions on payments to holders of the 2010 Notes. The 2010 Notes are unsecured and unsubordinated and are fully and unconditionally guaranteed by AngloGold Ashanti Limited.

AGAH has agreed to observe certain covenants with respect to the 2010 Notes restricting, subject to certain limitations, the ability of AngloGold Ashanti Limited and AGAH to amalgamate, reconstruct, consolidate or merge with another company or other legal entity, and the ability of AngloGold Ashanti Limited and its restricted subsidiaries to pledge their assets to secure certain borrowings, create or incur liens on certain of their property or to engage in sale and leaseback transactions. In case of a change of control of the guarantor and a downgrade, within a specified period, of a series of 2010 Notes below an investment grade rating by two rating agencies, holders of the 2010 Notes have the right to require the issuer to repurchase all or any part of their 2010 Notes in cash for a value equal to 101 percent of the aggregate principal amount of 2010 Notes repurchased, plus accrued and unpaid interest, if any, on the 2010 Notes repurchased to the date of purchase.

The offering of the 2010 Notes was registered under the Securities Act. The 2010 Notes were listed on the New York Stock Exchange.

The $700 million 5.375 percent Notes due 2020 were repaid at maturity on 15 April 2020 and are no longer outstanding.

For further information, see Item 18: Financial Statements—Note 24—Borrowings”,“Item 5B: Liquidity and Capital Resources” and “Item 19: Exhibits to Form 20-F”.

Description of AngloGold Ashanti ADSs

The Bank of New York Mellon issues AngloGold Ashanti’s American Depositary Shares, or ADSs. Each ADS represents the ownership interest of one ordinary share of AngloGold Ashanti.

The Deposit Agreement

This section provides a summary description of AngloGold Ashanti’s ADSs.

AngloGold Ashanti has entered into an Amended and Restated Deposit Agreement dated 3 June 2008 with The Bank of New York Mellon as Depositary and the owners and beneficial owners of American Depositary Receipts (Deposit Agreement).

The following is a summary of the material provisions of the Deposit Agreement. For more complete information, read the entire Deposit Agreement and the Form of American Depositary Receipt, which AngloGold Ashanti has filed with the SEC as an exhibit to AngloGold Ashanti’s registration statements on Form F-6 (Registration Nos. 333-133049 and 333-159248) on 27 May 2008 and 14 May 2009, respectively. A copy thereof is also attached hereto as Exhibit 19.2.6 and is incorporated herein by reference. See “Item 10H: Documents on Display”. Copies of the Deposit Agreement are also available for inspection at the Corporate Trust Office of The Bank of New York Mellon currently located at 240 Greenwich Street, New York, New York 10286.

Description of the ADSs

The Bank of New York Mellon, as Depositary, registers and delivers ADSs. Each ADS represents one ordinary share (or a right to receive one share) deposited with Standard Bank of South Africa Limited, FirstRand Bank Limited or HSBC Bank Australia Limited, each as a custodian for The Bank of New York Mellon, and all of which are referred to collectively as the “Custodian”. Each ADS also represents any other securities, cash or other property which may be held by The Bank of New York Mellon. The Bank of New York Mellon’s Corporate Trust Office at which the ADSs are administered is located at 240 Greenwich Street, New York, New York 10286. The Bank of New York Mellon’s principal executive office is also located at 240 Greenwich Street, New York, New York 10286.

ADSs may be held either (A) directly (i) by having an American Depositary Receipt, also referred to as an ADR, which is a certificate evidencing a specific number of ADSs, registered in the holder’s name, or (ii) by having ADSs registered in a holder’s name in the Direct Registration System, or (B) indirectly by holding a security entitlement in ADSs through a broker or other financial institution. If ADSs are held directly, such holders are ADS holders. This description applies to AngloGold Ashanti’s ADS holders. If ADSs are held indirectly, such holders must rely on the procedures of their broker or other financial institution to assert



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the rights of ADS registered holders described in this section. Such holders should consult with their broker or financial institution to find out what those procedures are.

The Direct Registration System, or DRS, is a system administered by DTC pursuant to which the Depositary may register the ownership of uncertificated ADSs, which ownership will be evidenced by periodic statements sent by the Depositary to the registered holders of uncertificated ADSs.

AngloGold Ashanti does not treat ADS holders as its shareholders and ADS holders do not have shareholder rights. South African law governs shareholder rights. The Bank of New York Mellon is the holder of the shares underlying the ADSs. Registered holders of ADSs have ADS holder rights. The Deposit Agreement sets out ADS holder rights as well as the rights and obligations of The Bank of New York Mellon. New York law governs the Deposit Agreement and the ADSs.

Dividends and Other Distributions

The Bank of New York Mellon has agreed to pay to holders of ADSs the cash dividends or other distributions it or a Custodian receives on AngloGold Ashanti ordinary shares or other deposited securities after deducting any fees and expenses and any applicable withholding taxes. Holders of ADSs will receive these distributions in proportion to the number of AngloGold Ashanti’s ordinary shares that their ADSs represent.

Cash

The Bank of New York Mellon will convert any cash dividend or other cash distribution (in South African rands) that AngloGold Ashanti pays on ordinary shares into US dollars (unless AngloGold Ashanti pays such dividend or cash distribution in US dollars) and distribute to registered holders of ADSs. If that is no longer possible or if any approval from any government is needed and cannot be obtained, The Bank of New York Mellon may distribute non-US currency only to those ADS holders to whom it is possible to make this type of distribution.

The Bank of New York Mellon may hold the non-US currency it cannot convert for the account of holders of ADSs who for one reason or the other have not been paid. It will not invest the non-US currency, and it will not be liable for interest on such amounts. Before making a distribution, any withholding taxes that must be paid will be deducted. See “Payment of Taxes” below. The Bank of New York Mellon will distribute only whole US dollars and cents and will round fractional cents to the nearest whole cent. If the exchange rates fluctuate during a time when The Bank of New York Mellon cannot convert the non-US currency, holders of ADSs may lose some or all of the value of the distribution.

Ordinary Shares

The Bank of New York Mellon may distribute to holders of ADSs additional ADSs representing ordinary shares that AngloGold Ashanti distributes as a dividend or free distribution, if AngloGold Ashanti provides it promptly with satisfactory evidence that it is legal to do so. If The Bank of New York Mellon does not distribute additional ADSs, the outstanding ADSs will also represent the newly distributed AngloGold Ashanti ordinary shares. The Bank of New York Mellon will only distribute whole ADSs. It will sell AngloGold Ashanti ordinary shares that would require it to deliver a fraction of an ADS and distribute the net proceeds in the same way as it distributes cash. The Bank of New York Mellon may sell a portion of the distributed shares sufficient to pay its fees and expenses in connection with that distribution.

Rights to Subscribe for Additional Ordinary Shares

If AngloGold Ashanti offers holders of its ordinary shares any rights to subscribe for additional AngloGold Ashanti ordinary shares or any other rights, The Bank of New York Mellon, after consultation with AngloGold Ashanti, may make these rights available to holders of ADSs or sell the rights and distribute the proceeds in the same way as it distributes cash. If The Bank of New York Mellon cannot do either of these things for any reason, it may allow these rights to lapse. In that case, holders of ADSs will receive no value for them.

If The Bank of New York Mellon makes these types of subscription rights available to holders of ADS, upon instruction from holders of ADSs, it will exercise the rights and purchase AngloGold Ashanti’s ordinary shares on their behalf. The Bank of New York Mellon will then deposit the AngloGold Ashanti ordinary shares and deliver ADSs to the holders of ADSs. It will only exercise these rights if holders of ADSs pay it the exercise price and any other charges the rights require them to pay.

US securities laws may restrict the sale, deposit, cancellation and transfer of the ADSs issued after exercise of rights. For example, holders of ADSs may not be able to trade the ADSs freely in the United States. In this case, The Bank of New York Mellon may deliver ADSs which are “restricted securities” within the meaning of Rule 144 which will have the same provisions as the ADSs described here, except for the changes needed to put the restrictions in place.

Other Distributions

The Bank of New York Mellon will send to holders of ADSs any other distributions that AngloGold Ashanti makes on deposited securities by any means it thinks is legal, fair and practical. If it cannot make the distribution in that way, The Bank of New York



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Mellon may decide to sell what AngloGold Ashanti distributes, and then distribute the net proceeds in the same way as it distributes cash, or it may decide to hold what AngloGold Ashanti distributes, in which case the outstanding ADSs will also represent the newly distributed property. However, The Bank of New York Mellon is not required to distribute any securities (other than ADSs) to ADS holders unless it receives satisfactory evidence from AngloGold Ashanti that it is legal to make that distribution. The Bank of New York Mellon may sell a portion of the distributed securities or property sufficient to pay its fees and expenses in connection with that distribution.

The Bank of New York Mellon is not responsible if, based on available information, it decides that it is unlawful or impractical to make a distribution available to any ADS holders. AngloGold Ashanti has no obligation to register ADSs, AngloGold Ashanti ordinary shares, rights or other securities under the Securities Act. AngloGold Ashanti also has no obligation to take any other action to permit the distribution of ADSs, AngloGold Ashanti ordinary shares, or any other rights to ADS holders. This means that the holders of ADSs may not receive the distribution AngloGold Ashanti makes on its ordinary shares or any value for them if it is illegal or impracticable for AngloGold Ashanti to make them available to the holders of ADSs.

Deposit, Withdrawal and Cancellation

The Bank of New York Mellon will deliver ADSs if a holder of AngloGold Ashanti’s ordinary shares or its broker deposits AngloGold Ashanti’s ordinary shares or evidence of rights to receive ordinary shares with the Custodian. Upon payment of its fees and expenses and of any taxes or charges, such as stamp taxes or stock transfer taxes or fees, The Bank of New York Mellon will register the appropriate number of ADSs in the names such holder of AngloGold Ashanti ordinary shares requests and will deliver the ADSs at its Corporate Trust Office to the persons such holders request.

Holders of ADSs may turn in their ADSs at The Bank of New York Mellon’s Corporate Trust Office. Upon payment of its fees and expenses and of any taxes or charges, such as stamp taxes or stock transfer taxes or fees, The Bank of New York Mellon will deliver (1) the underlying ordinary shares to an account designated by the relevant holder of ADSs and (2) any other deposited securities underlying the ADSs at the office of the Custodian, or, at the request, risk and expense of ADS holders, The Bank of New York Mellon will deliver the deposited securities at its Corporate Trust Office.

Interchange Between Certificated ADSs and Uncertificated ADSs

ADS registered holders may surrender their ADS to The Bank of New York Mellon for the purpose of exchanging such ADS for uncertificated ADSs. The Bank of New York Mellon will cancel that ADS and will send to the ADS registered holder a statement confirming that the ADS registered holder is the registered holder of uncertificated ADSs. Alternatively, upon receipt by The Bank of New York Mellon of a proper instruction from a registered holder of uncertificated ADSs requesting the exchange of uncertificated ADSs for certificated ADSs, The Bank of New York Mellon will execute and deliver to the ADS registered holder an ADS evidencing those ADSs.

Voting Rights

ADS registered holders may instruct The Bank of New York Mellon to vote the number of deposited shares their ADSs represent. The Bank of New York Mellon will notify ADS registered holders of shareholders’ meetings and arrange to deliver AngloGold Ashanti’s voting materials to them if AngloGold Ashanti asks it to. Those materials will describe the matters to be voted on and explain how ADS registered holders may instruct The Bank of New York Mellon how to vote. For instructions to be valid, they must reach The Bank of New York Mellon by a date set by The Bank of New York Mellon.

Otherwise, ADS registered holders will not be able to exercise their right to vote unless they withdraw the shares. However, ADS registered holders may not know about the meeting sufficiently in advance to withdraw the shares.

The Bank of New York Mellon will try, as far as practicable, to vote or to have its agents vote the ordinary shares or other deposited securities as holders of ADSs instruct, but this is subject to South African law, the provisions of AngloGold Ashanti’s MoI and of the deposited securities and any applicable rule of the JSE. The Bank of New York Mellon will only vote or attempt to vote as such holders of ADSs instruct.

AngloGold Ashanti cannot assure the holders of ADSs that they will receive the voting materials in time for them to instruct The Bank of New York Mellon to vote their ordinary shares. In addition, The Bank of New York Mellon and its agents are not responsible for failing to carry out voting instructions or for the manner of carrying out voting instructions. This means that holders of ADSs may not be able to exercise their right to vote and there may be nothing they can do if their ordinary shares are not voted as they requested.





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Fees and Expenses
ADS holders must pay:For:
$5.00 (or less) per 100 ADSsEach issuance of an ADS, including as a result of a distribution of AngloGold Ashanti ordinary shares or rights or other property

Each cancellation of an ADS, including if the Deposit Agreement terminates
$0.02 (or less) per ADSAny cash payment
Registration or transfer feesTransfer and registration of AngloGold Ashanti ordinary shares on the AngloGold Ashanti share register to or from the name of The Bank of New York Mellon or its agent when AngloGold Ashanti ordinary shares are deposited or withdrawn
$0.02 (or less) per ADS per yearDepositary services
Expenses of The Bank of New York MellonConversion of non-US currency to US dollars

Cable, telex and facsimile transmission expenses

Servicing the deposited securities
Taxes and other governmental charges that The Bank of New York Mellon or any Custodian has to pay on any ADS or AngloGold Ashanti ordinary share underlying an ADS, for example, stock transfer taxes, stamp duty or withholding taxesAs necessary
A fee equivalent to the fee that would have been payable if the securities distributed had been ordinary shares deposited for issuance of ADSsDistribution of securities distributed to holders of deposited securities that are distributed by The Bank of New York Mellon to ADS holders





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Payment of Taxes

Holders of ADSs will be responsible for any taxes or other governmental charges payable on their ADSs or on the deposited securities underlying their ADSs. The Bank of New York Mellon may refuse to transfer their ADSs or allow them to withdraw the deposited securities underlying their ADSs until such taxes or other charges are paid. It may apply payments owed to holders of ADSs or sell deposited securities underlying their ADSs to pay any taxes they owe, and they will remain liable for any deficiency. If The Bank of New York Mellon sells deposited securities, it will, if appropriate, reduce the number of ADSs to reflect the sale and pay to holders of ADSs any proceeds, or send to them any property remaining after it has paid the taxes.

Reclassifications
If AngloGold Ashanti:Then:
Reclassifies, splits up or consolidates any of the deposited securities;

The cash, ordinary shares or other securities received by The Bank of New York Mellon will become deposited securities. Each ADS will automatically represent its equal share of the new deposited securities.
Distributes securities on the ordinary shares that are not distributed to holders of ADSs; or

Recapitalises, reorganises, merges, liquidates, sells all or substantially all of AngloGold Ashanti’s assets, or takes any similar action.		The Bank of New York Mellon may, and will if AngloGold Ashanti asks it to, distribute some or all of the cash, AngloGold Ashanti ordinary shares or other securities it receives. It may also issue new ADSs or ask holders of ADSs to surrender their outstanding ADSs in exchange for new ADSs identifying the new deposited securities.

Amendment and Termination

AngloGold Ashanti may, for any reason, agree with The Bank of New York Mellon to amend the Deposit Agreement and the ADSs without the consent of holders. If the amendment increases fees or charges (except for taxes and other governmental charges or registration fees, cable, telex or facsimile transmission costs, delivery costs or other such expenses) or if the amendment prejudices an important right of ADS holders, it will only become effective 30 days after The Bank of New York Mellon notifies holders of ADSs of the amendment. At the time an amendment becomes effective, holders of ADSs are considered, by continuing to hold their ADSs, to agree to the amendment and to be bound by the ADSs and the agreement as amended.

The Bank of New York Mellon may terminate the Deposit Agreement by mailing notice of termination to ADS holders at least 30 days prior to the date fixed in the notice if AngloGold Ashanti asks it to do so. The Bank of New York Mellon may also terminate the Deposit Agreement if The Bank of New York Mellon has told AngloGold Ashanti that it would like to resign and AngloGold Ashanti has not appointed a new Depositary bank within 90 days. In both cases, The Bank of New York Mellon must notify holders of AngloGold Ashanti ADSs at least 30 days before termination.

After termination, The Bank of New York Mellon and its agents will be required to do only the following under the Deposit Agreement: collect distributions on the deposited securities, sell rights, and, upon surrender of ADSs, deliver AngloGold Ashanti ordinary shares and other deposited securities. Four months after the date of termination or later, The Bank of New York Mellon may sell any remaining deposited securities by public or private sale and will hold the proceeds of the sale, as well as any other cash it is holding under the Deposit Agreement, for the pro rata benefit of the ADS holders who have not surrendered their ADSs. It will not invest the money and will have no liability for interest. The Bank of New York Mellon’s only obligations will be to account for the proceeds of the sale and other cash. After termination, AngloGold Ashanti’s only obligations will be with respect to indemnification of, and payment of certain amounts to, The Bank of New York Mellon.

Limitations on Obligations and Liability to ADS Holders

The Deposit Agreement expressly limits AngloGold Ashanti’s obligations and the obligations of The Bank of New York Mellon, and limits AngloGold Ashanti’s liability and the liability of The Bank of New York Mellon. AngloGold Ashanti and The Bank of New York Mellon:
•are only obligated to take the actions specifically set forth in the Deposit Agreement without negligence or bad faith;
•are not liable if either of AngloGold Ashanti or The Bank of New York Mellon is prevented or delayed by law or circumstances beyond their control from performing their obligations under the Deposit Agreement;
•are not liable if either of AngloGold Ashanti or The Bank of New York Mellon exercises discretion permitted under the Deposit Agreement;
•are not liable for the inability of any holder of ADSs to benefit from any distribution on deposited securities that is not made available to holders of ADSs under the terms of the Deposit Agreement, or for any special, consequential or punitive damages for any breach of the terms of the Deposit Agreement;
•have no obligation to become involved in a lawsuit or other proceeding related to the ADSs or the Deposit Agreement on behalf of the holders of ADSs or on behalf of any other party;
•may rely on advice of or information from legal counsel, accountants, and any persons presenting AngloGold Ashanti’s ordinary shares for deposit, any registered holder or any other person believed by AngloGold Ashanti in good faith to be competent to give such advice or information; and



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•pursuant to the Deposit Agreement agree to indemnify each other under certain circumstances.

Requirements for Depositary Action

Before The Bank of New York Mellon will issue, transfer or register the transfer of an ADS, make a distribution on an ADS, or allow withdrawal of AngloGold Ashanti ordinary shares, The Bank of New York Mellon may require:
•payment of stock transfer or other taxes or other governmental charges and transfer or registration fees charged by third parties for the transfer of any ordinary shares or other deposited securities;
•production of satisfactory proof of the identity and genuineness of any signature or other information it deems necessary; and
•compliance with regulations it may establish, from time to time, consistent with the Deposit Agreement, including presentation of transfer documents.

The Bank of New York Mellon may refuse to deliver, transfer or register transfers of ADSs generally when the books of The Bank of New York Mellon or AngloGold Ashanti are closed, or at any time if either AngloGold Ashanti or The Bank of New York Mellon thinks it advisable to do so.

Holders of ADSs have the right to cancel their ADSs and withdraw the underlying ordinary shares at any time except:
•when temporary delays arise because: (1) either AngloGold Ashanti or The Bank of New York Mellon have closed AngloGold Ashanti’s transfer books; (2) the transfer of the ordinary shares is blocked in connection with voting at a general meeting of shareholders; or (3) AngloGold Ashanti is paying a dividend on the ordinary shares;
•when ADS holders seeking to withdraw the ordinary shares are liable for unpaid fees, taxes and similar charges; or
•when it is necessary to prohibit withdrawals in order to comply with any laws or governmental regulations that apply to ADSs or to the withdrawal of the ordinary shares or other deposited securities.

This right of withdrawal may not be limited by any other provision of the Deposit Agreement.

Pre-release of ADSs

In certain circumstances, subject to the provisions of the Deposit Agreement, The Bank of New York Mellon may deliver ADSs before deposit of the underlying ordinary shares. This is called a pre-release of the ADS.

The Bank of New York Mellon may also deliver AngloGold Ashanti ordinary shares upon cancellation of pre-released ADSs (even if the ADSs are cancelled before the pre-release transaction has been closed out). A pre-release is closed out as soon as the underlying AngloGold Ashanti ordinary shares are delivered to The Bank of New York Mellon. The Bank of New York Mellon may receive ADSs instead of ordinary shares to close out a pre-release.

The Bank of New York Mellon may pre-release ADSs only under the following conditions:
•before or at the time of the pre-release, the person to whom the pre-release is being made must represent to The Bank of New York Mellon in writing that it or its customer: (a) owns the ordinary shares or ADSs to be remitted, (b) assigns all beneficial rights, title and interest in such ADSs or ordinary shares, as the case may be, to The Bank of New York Mellon in its capacity as the Depositary and for the benefit of the ADS holders, and (c) will not take any action with respect to such ADSs or ordinary shares, as the case may be, that is consistent with the transfer of beneficial ownership (including, without the consent of The Bank of New York Mellon, disposing of such ADSs or ordinary shares, as the case may be) other than satisfaction of such pre-release;
•the pre-release must be fully collateralised with cash, US government securities, or other collateral that The Bank of New York Mellon considers appropriate; and
•The Bank of New York Mellon must be able to close out the pre-release on not more than five business days’ notice. Each pre-release will be subject to any further indemnities and credit regulations that The Bank of New York Mellon deems appropriate. The Bank of New York Mellon will normally limit the number of AngloGold Ashanti ordinary shares not deposited but represented by ADSs outstanding at any time as a result of pre-release so that they do not exceed 30 percent of the ordinary shares deposited, although The Bank of New York Mellon may disregard this limit from time to time, if it thinks it is appropriate to do so.

Direct Registration System

In the Deposit Agreement, all parties to the Deposit Agreement acknowledge that the DRS and Profile Modification System, or Profile, will apply to uncertificated ADSs upon acceptance thereof to DRS by The Depository Trust Company, also referred to as DTC. DRS is the system administered by DTC pursuant to which the Depositary may register the ownership of uncertificated ADSs, which ownership will be evidenced by periodic statements sent by the Depositary to the registered holders of uncertificated ADSs. Profile is a required feature of DRS which allows a DTC participant, claiming to act on behalf of a registered holder of ADSs, to direct the Depositary to register a transfer of those ADSs to DTC or its nominee and to deliver those ADSs to the DTC account of that DTC participant without receipt by the Depositary of prior authorisation from the ADS registered holder to register that transfer.




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In connection with and in accordance with the arrangements and procedures relating to DRS/Profile, the parties to the Deposit Agreement understand that The Bank of New York Mellon will not verify, determine or otherwise ascertain that the DTC participant which is claiming to be acting on behalf of an ADS holder in requesting registration of transfer and delivery described in the paragraph above has the actual authority to act on behalf of the ADS holder (notwithstanding any requirements under the Uniform Commercial Code). In the Deposit Agreement, the parties agree that The Bank of New York Mellon’s reliance on and compliance with instructions received by The Bank of New York Mellon through the DRS/Profile System and in accordance with the Deposit Agreement will not constitute negligence or bad faith on the part of The Bank of New York Mellon.

Shareholder Communications: Inspection of Register of Holders of ADSs

The Bank of New York Mellon will make available for inspection at its office all communications that it receives from AngloGold Ashanti as a holder of deposited securities that AngloGold Ashanti makes generally available to holders of deposited securities. The Bank of New York Mellon sends copies of those communications if requested by AngloGold Ashanti. ADS holders have a right to inspect the register of holders of ADSs, but not for the purpose of contacting those holders about a matter unrelated to AngloGold Ashanti’s business or the ADSs.




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10D.Exchange controls

Exchange controls and other limitations affecting security holders

The following is a general outline of South African exchange controls and such outline may not apply to former residents of South Africa. Investors should consult a professional advisor as to the exchange control implications of their particular investments.

South African law provides for exchange control regulations, which restrict the export of capital from South Africa. Exchange controls are administered by the Financial Surveillance Department of the South African Reserve Bank (SARB), in terms of the Exchange Control Regulations, and regulate transactions involving South African residents and non-residents, with the exception of transactions between South African residents and residents of the Common Monetary Area, which comprises the Kingdoms of Lesotho and Eswatini (formerly Swaziland) and the Republic of Namibia. The purpose of exchange controls is to mitigate the decline of foreign capital reserves in South Africa.

The Government of South Africa has, however, committed itself to relaxing exchange controls gradually and significant relaxation has occurred in recent years.

The comments below relate, in general, to exchange controls in place at the date of this annual report.

Investments in South African companies

Acquisitions of shares or assets of South African companies by non-South African purchasers are generally subject to review and approval by the SARB, particularly where the consideration is payable in a form other than cash. In this regard, the SARB will give approval where it is persuaded, inter alia, that the consideration payable for the acquisition of the shares or assets is an arm’s-length consideration and that such acquisition offers benefits to South Africa. In addition, where shares in a South African company are acquired by a non-resident, the share certificates issued to the non-resident shareholder must be endorsed “non-resident” by the SARB (or an Authorised Dealer).

Dividends

Dividends declared to foreign stockholders in public companies listed on the Johannesburg Stock Exchange (JSE) are not subject to the approval of the SARB, provided that the shares in respect of which the dividends are declared have been endorsed “non-resident” by the SARB or an Authorised Dealer at the time of acquisition. Dividends are freely transferable to foreign stockholders from both trading and non-trading profits earned in South Africa by public listed companies.

Voting rights

There are no limitations imposed by South African law, including South African exchange controls, or by the Memorandum of Incorporation of AngloGold Ashanti on the rights of non-South African shareholders to vote their ordinary shares.

Overseas financing, interest and investments

Interest on foreign loans, if paid from cash generated from operations in South Africa, may be remittable abroad, provided that the loans and the payment of the relevant interest in respect of such loans have received prior SARB approval.

AngloGold Ashanti and its South African subsidiaries require SARB approval to raise debt from and repay debt to non-residents of the Common Monetary Area, mainly in respect of the terms of repayment applicable to such loans, as well as any guarantees that may be provided in respect of such loans, by AngloGold Ashanti or its South African subsidiaries.

Debt raised outside the Common Monetary Area by AngloGold Ashanti’s non-South African subsidiaries is not restricted under South African exchange control regulations and can be used for investment outside the Common Monetary Area, subject to the relevant conditions imposed by the SARB in connection with such investment, the establishing of such a non-South African subsidiary or in raising the debt by such subsidiary. For example, AngloGold Ashanti and its South African subsidiaries would require SARB approval in order for AngloGold Ashanti and/or its South African subsidiaries to provide guarantees for the obligations of any of its non-South African subsidiaries. In addition, funds obtained from non-residents of the Common Monetary Area and debt raised outside the Common Monetary Area by AngloGold Ashanti’s non-South African subsidiaries must be repaid or serviced by AngloGold Ashanti’s foreign subsidiaries unless otherwise approved by the SARB.

A listing by a South African company on any stock exchange other than the JSE in connection with raising capital requires permission from the SARB.

Under current exchange control regulations, offshore investments by AngloGold Ashanti and its subsidiaries require the approval of the SARB. Subject to such prior approval of the SARB, there is no limit on the amount of capital that may be invested offshore.



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10E.Taxation

South African taxation

General
The following summary summarises the South African tax consequences of the ownership and disposition of shares by South African residents or ADSs by a US holder (as defined below) and is not intended to constitute tax advice. This summary is based upon current South African tax law and South African Revenue Service (SARS) practice, the US/SA Double Taxation Treaty, and in part upon representations of the Depositary, and assumes that each obligation provided for in, or otherwise contemplated by, a Deposit Agreement and any related agreement will be performed in accordance with its respective terms.

The following summary of the South African tax considerations does not address the tax consequences to a US holder that is resident in South Africa for South African tax purposes, whose holding of shares or ADSs is effectively connected with a permanent establishment in South Africa through which such US holder carries on business activities or, in the case of an individual, with a fixed base situated therein, or who is otherwise not entitled to the full benefits under the US/SA Double Taxation Treaty.

The statements of law set forth below are subject to any changes (which may be applied retroactively) in South African law or in the interpretation thereof by SARS, or in the US/SA Double Taxation Treaty, occurring after the date hereof. It should be expressly noted that South African tax law does not specifically address the treatment of ADSs. However, it is reasonable to assume (although no assurance can be made) that the tax treatment of US holders of shares is also applicable to US holders of ADSs.

Holders are strongly urged to consult their own tax advisors as to the consequences under South African, US federal, state and local, and other applicable laws, of the ownership and disposition of shares or ADSs.

Taxation of dividends

South Africa currently imposes a Dividend Withholding Tax on Companies (dividends tax) at a rate of 20 percent on the net amount of the dividend declared and paid by a resident company, other than a Headquarter Company.

The dividends tax is generally imposed on the beneficial owner of the dividends. The dividends tax is subject to domestic exemptions or relief in terms of an applicable double taxation treaty. The application of such domestic exemptions or relief in terms of an applicable double taxation treaty is subject to the making of certain declarations and undertakings by the beneficial owner of the dividends to the regulated intermediary making payment of the dividend. In terms of the latest amendments to the tax provisions, the declaration and undertaking entitling the beneficial owner to a reduced dividend withholding tax rate must be renewed every five years, subject to certain exemptions.

The dividends tax could be reduced to a lower rate under an applicable double tax treaty, if all requirements are met. In the case of dividends paid to a US holder with respect to shares, the US/SA Double Taxation Treaty would generally limit the dividends tax rate to five percent of the gross amount of the dividends if a corporate US holder holds directly at least 10 percent of the voting stock of the Company, provided that the applicable declaration and undertaking are given by the beneficial owner that the reduced rate applies. In all other cases, the maximum tax rate under the US/SA Double Taxation Treaty is 15 percent of the gross amount of the dividend. Different rules may apply if the beneficial owner of the dividends is a US resident who carries on business in South Africa through a permanent establishment situated in South Africa, or performs in South Africa services from a permanent establishment situated in South Africa, and the dividends are attributable to such permanent establishment or fixed base. Moreover, if the dividends tax rate is reduced under the auspices of an applicable double tax treaty, certain South African compliance requirements must be met in order to obtain the double tax treaty relief, amongst others the completion of a declaration and undertaking by the beneficial owners in favour of the Company and/or the relevant regulated intermediary. In terms of the latest tax provisions the declaration and undertaking need to be renewed at least every five years unless the regulated intermediary is subject to the provisions of inter alia the US Foreign Account Tax Compliance legislation.

A dividend is currently defined as any amount transferred or applied by a company that is a resident (including the Company) for the benefit or on behalf of any person in respect of any share in that company, whether that amount is transferred or applied by way of a distribution made by the company, or as consideration for the acquisition of any share in that company. The definition of a dividend specifically excludes any amount transferred or applied by the company that results in a reduction of so-called contributed tax capital (CTC) of the relevant class of shares, or constitutes shares in the company or constitutes an acquisition by the company of its own securities by way of a general repurchase of securities in terms of the JSE Listings Requirements. A distinction is thus made between a general repurchase of securities and a specific repurchase of securities. If the company embarks upon a general repurchase of securities, the proceeds of such repurchase would not constitute a dividend whereas, in the case of a specific repurchase of securities where the purchase price is not funded out of CTC of that class of shares, the proceeds would likely constitute a dividend.

The concept of CTC effectively means the sum of the stated capital or share capital and share premium of a company that existed on 1 January 2011, excluding any transfers from reserves to the share premium account or stated capital account, plus



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proceeds from the issue of any new shares by a company, less the amount of CTC that has been returned to shareholders. Any application of CTC is limited to the holders of a class of shares. In addition, a distribution of CTC attributable to a specific class must be made proportionately to the number of shares held by a shareholder in a specific class. The definition of CTC is subject to various provisos.

For dividends tax purposes a dividend is defined as any dividend as indicated above that is paid by a company that is a resident or paid by a foreign company if the share in respect of which that foreign dividend is paid is a listed share and to the extent that the foreign dividend does not constitute a distribution of an asset in kind.

Dividends are generally exempt from the payment of income tax, subject to various exclusions.


Taxation of capital gains on sale or other disposition

South African residents are taxed on their worldwide income, while non-residents are only taxed on South African sourced income (subject to the provisions of any relevant double taxation agreement).

Capital gains tax is not a separate tax to income tax; instead, a percentile of the taxpayer’s net capital gain (that is the taxable capital gain) is included in its taxable income on which it is taxed at the income tax rate.

Non-residents are only subject to the South African capital gains tax provisions in respect of the disposal of any immovable property (such as land and buildings or mining rights) or any interest or right of whatever nature to or in immovable property situated in South Africa, or any asset of a permanent establishment through which that non-resident is carrying on a trade in South Africa. In the instance of a shareholder holding shares in a South African company, the ‘interest in immovable property’ requirements are met if 80 percent or more of the market value of the shares is directly or indirectly attributable to South African immovable property held on capital account, and that shareholder (whether alone or together with any connected person in relation to that person), directly or indirectly, holds at least 20 percent of the equity shares of that South African company.

Gains realised on the sale of ordinary shares are deemed to be of a capital nature and subject to capital gains tax provided the ordinary shares have been held for a continuous period of at least three years. This deeming provision is applicable to all executives“equity shares” as defined in section 1 of the South African Income Tax Act, No. 58 of 1962 (the “SA Income Tax Act”), and may not extend to preference shares or ADSs where the preference shares or ADSs do not constitute “equity shares” as so defined.

The meaning of the word “resident” is different for individuals and corporations and is governed by the Act and by the Treaty. In the event of conflict, the Treaty, which contains a tie breaker clause or mechanism to determine residency if a holder is resident in both countries, will prevail. In terms of the Act and Treaty, a US resident holder of shares or ADSs will not be subject to capital gains tax on the disposal of securities held as capital assets unless the securities are linked to a permanent establishment conducted in South Africa or constitute an interest in immovable property as indicated below:above. In contrast, gains on the disposal of securities which are not capital in nature are usually subject to income tax. Any asset held as a long-term investment will be considered a capital asset and subject to capital gains tax on the disposal of such an asset. Any asset acquired for purposes of resale as part of a profit-making scheme will not be considered a capital asset and will be subject to income tax on the disposal of such an asset. However, even in the latter case, a US resident holder will not be subject to income tax, unless the US resident holder carries on business in South Africa through a permanent establishment situated therein.
Executive directors
Securities transfer tax (STT)

No securities transfer tax, or STT, is payable in South Africa with respect to the issue of a security, but STT is payable upon transfer, redemption or cancellation thereof.

STT on transfers of securities is charged at a rate of 0.25 percent on the ‘taxable amount’ in respect of the ‘transfer’ of every security issued by a company incorporated in South Africa, or a company incorporated outside South Africa, but listed on an exchange in South Africa, subject to certain exemptions.

The word ‘transfer’ is broadly defined and includes the transfer, sale, assignment or cession or disposal in any other manner of a security which results in a change in beneficial ownership. The cancellation or redemption of a security is also regarded as a ‘transfer’ unless the company is being liquidated. However, the transfer of a security that does not result in a change in beneficial ownership is not regarded as a ‘transfer’ for STT purposes. A security is also defined as a depositary receipt in a company. Accordingly, STT is payable on the transfer of a depositary receipt issued by a company, including specifically the ADSs issued by the Company. Generally, the central securities Depositary that has been accepted as a participant in terms of the Financial Markets Act, is liable for the payment of the STT, on the basis that it is recoverable from the person to whom it is transferred.

STT is levied on the ‘taxable amount’ of a security. The taxable amount of a listed security is the greater of the consideration for the security declared by the transferee or the closing price of that security as traded on the stock exchange concerned. The person to whom the listed security is transferred is liable for payment of the STT, and such tax must be paid through the member or the participant holding the security in custody, or where the listed security is not held in custody, the company that issued the



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listed security. The tax so payable may be recovered from the person to whom the security is transferred. The tax must be paid by the fourteenth day of the month following the month during which the transfer occurred.

Withholding tax on interest

Generally, a 15 percent withholding tax may apply to the payments of interest. Under the US/SA Double Taxation Treaty, interest derived and beneficially owned by a resident of the United States will be taxable only in the United States (and therefore not subject to interest withholding tax in South Africa), subject to certain exclusions.

Value-Added Tax

The issue or transfer of shares is not a taxable supply for value-added tax (“VAT”) purposes. However, fees charged by independent service providers would be subject to VAT at the standard rate of 15%.

United States Taxation

General
The following is a general summary of certain material US federal income tax consequences of the ownership and disposition of shares or ADSs to a US holder (as defined below) that holds its shares or ADSs as a capital asset. With respect to the following, references to shares includes references to ADSs unless the context indicates otherwise. This summary does not address any aspect of US federal gift or estate tax, or the state, local or non-US tax consequences to a US holder of shares. This summary is based on US tax laws including the Internal Revenue Code of 1986, as amended (the Code), Treasury regulations promulgated thereunder, rulings, judicial decisions, administrative pronouncements, and the US/SA Double Taxation Treaty, all as currently in effect as of the date of this annual report, and all of which are subject to change or changes in interpretation, possibly with retroactive effect. In addition, this summary is based in part upon the representations of the Depositary and the assumption that each obligation in the Deposit Agreement relating to the ADSs and any related agreement will be performed in accordance with its terms.

This summary does not address all aspects of US federal income taxation that may apply to holders that are subject to special tax rules, including US expatriates, non-resident aliens present in the United States for at least 183 days during the calendar year, insurance companies, tax-exempt entities, banks, certain financial institutions, persons subject to the alternative minimum tax, regulated investment companies, securities broker-dealers, traders in securities who elect to apply a mark-to-market method of accounting, investors that own (directly, indirectly or by attribution) 10 percent or more of the outstanding share capital or voting stock of AngloGold Ashanti, 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



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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



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currency gain or loss (taxable as ordinary income or loss) equal to the difference (if any) between the US dollar value of the amount received based on the exchange rates in effect on the date of sale or other disposition and the settlement date. If an accrual basis US holder makes either of the elections described above, it must be applied consistently from year to year and cannot be revoked without the consent of the Internal Revenue Services (IRS).

Foreign currency received on the sale or other disposition of a share will have a tax basis equal to its US dollar value on the settlement date. Any gain or loss recognised on a sale or other disposition of foreign currency (including its use to purchase shares or upon exchange for US dollars) will be US source ordinary income or loss.

▪Passive foreign investment company considerations
A foreign corporation will be classified a passive foreign investment company (PFIC) for any taxable year if at least 75 percent of its gross income consists of passive income (such as dividends, interest, rents or royalties (other than rents or royalties derived in the active conduct of a trade or business and received from an unrelated person), or gains on the disposition of certain minority interests), or at least 50 percent of the average value of its assets consists of assets that produce, or are held for the production of, passive income. AngloGold Ashanti believes that it was not treated as a PFIC for the taxable year ended 31 December 2021 or any prior taxable years and does not expect to become a PFIC in the foreseeable future. If AngloGold Ashanti were characterised as a PFIC for any taxable year, a US holder would suffer adverse tax consequences with respect to that taxable year and all future years during which it holds AngloGold Ashanti ordinary shares.

These consequences may include having gain realised on the disposition of shares treated as ordinary income rather than capital gain and being subject to punitive interest charges on the receipt of certain dividends and on the proceeds of the sale or other disposition of the shares. Furthermore, dividends paid by AngloGold Ashanti would not be “qualified dividend income” and would be taxed at the higher rates applicable to other items of ordinary income. US holders should consult their own tax advisors regarding the potential application of the PFIC rules to their ownership of the shares.

▪US information reporting and backup withholding
In general, dividend payments made to a US holder and proceeds paid from the sale, exchange, or other disposition of shares may be subject to information reporting to the IRS and possible backup withholding. US federal backup withholding generally is imposed at a current rate of 24 percent on specified payments including dividends and gross sale proceeds to persons who fail to furnish required information. Backup withholding will not apply to a US holder who furnishes a correct taxpayer identification number and makes any other required certification or who is otherwise exempt from backup withholding. US persons who are required to establish their exempt status generally must provide IRS Form W-9 (Request for Taxpayer Identification Number and Certification). Backup withholding is not an additional tax. Amounts withheld as backup withholding may be credited against a holder’s US federal income tax liability. A holder may obtain a refund of any excess amounts withheld under the backup withholding rules by filing the appropriate claim for refund with the IRS and furnishing any required information.

▪Information with respect to foreign financial assets
Individuals that own “specified foreign financial assets” with an aggregate value in excess of $50,000 are generally required to file information reports with respect to such assets with their U.S. federal income tax returns. Depending on the individual’s circumstances, higher threshold amounts may apply. “Specified foreign financial assets” include any financial accounts maintained by foreign financial institutions, as well as any of the following, but only if they are not held in accounts maintained by financial institutions: (i) stocks and securities issued by foreign persons, (ii) financial instruments and contracts held for investment that have foreign issuers or counterparties and (iii) interests in foreign entities. Therefore, the shares may be treated as specified foreign financial assets. In such cases, certain US holders may be subject to this information reporting regime and be required to file IRS Form 8938 listing these assets with their U.S. federal income tax returns. Failure to file information reports may subject a US holder to penalties. US holders are urged to consult their own tax advisors regarding their obligations to file information reports with respect to the shares.







301

10F.    DIVIDENDS AND PAYING AGENTS

Not applicable.






10G.    STATEMENT BY EXPERTS

Not applicable.






10H.Documents on Display

AngloGold Ashanti files annual reports on Form 20-F and reports on Form 6-K with the SEC. You may access this information at the SEC’s home page (http://www.sec.gov). Copies of the documents referred to herein may be inspected at AngloGold Ashanti’s offices by contacting AngloGold Ashanti at 112 Oxford Road, Houghton Estate, Johannesburg, 2198 (Private Bag X 20, Rosebank, 2196) South Africa, Attention: Company Secretary, telephone number: +27 11 637 6000.

No material on the AngloGold Ashanti website forms any part of, or is incorporated by reference into, this annual report on Form 20-F. References herein to the company’s website shall not be deemed to cause such incorporation.







10I.    SUBSIDIARY INFORMATION

Not applicable.



302

ITEM 11: QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

TREASURY POLICY

Risk management activities within the group are the ultimate responsibility of the board. The Chief Financial Officer is responsible to the board for the design, implementation and monitoring of the risk management plan. The Audit and Risk Committee is responsible for overseeing risk management plans and systems, as well as financial risks which include a review of treasury activities and exposure to the group’s counterparties.

Under the financial and risk management policy, hedges may be put in place once approved by the Board, using approved instruments over the group’s planned gold production and resultant gold sales and currency exposures. The financial and risk management policy sets trading limits for the various levels of treasury management from dealer, through treasurer, executive management team and board members.

The financial risk management activities objectives of the group are as follows:
•Safeguarding the group’s core earnings stream from its major assets through the effective control and management of gold and other commodity price risk, foreign exchange risk and interest rate risk;
•Effective and efficient usage of credit facilities in both the short- and long-term through the adoption of reliable liquidity management planning and procedures;
•Ensuring that investment and hedging transactions are undertaken with creditworthy counterparts; and
•Ensuring that all contracts and agreements related to financial risk management activities are co-ordinated and consistent throughout the group and comply where necessary with all relevant regulatory and statutory requirements.

Under the financial and risk management policy, treasury reports are produced at the following minimum intervals for review by management and the board of directors:
•DailyTreasury Manager
•WeeklyTreasurer
•MonthlyTreasurer
•QuarterlyAudit and Risk Committee and Board of Directors

The Treasury Risk Analyst is responsible for monitoring all reports for completeness and accuracy which are reviewed by the Treasurer.

At AngloGold Ashanti, all front office (dealing), middle office (risk reporting), back office (deal confirmations) and payment (treasury settlements) activities are segregated. All treasury transactions are captured on a third party developed treasury and risk management system that is widely used in corporate treasuries. The group internal audit function conducts regular and ad-hoc reviews of the activities of treasury and the group’s treasury system.

Gold price risk management activities

In the normal course of its operations, the group is exposed to gold and other commodity price, currency, interest rate, equity price, liquidity and non-performance risk, which includes credit risk. The group is also exposed to certain by-product commodity price risk. In order to manage these risks, the group may enter into transactions which make use of derivatives. The group has developed a risk management process to facilitate, control and monitor these risks.

Gold price risk arises from the risk of an adverse effect of current or future earnings resulting from fluctuations in the price of gold. The group eliminated its hedge book during 2010 and has since had full exposure to the spot price of gold.

As at 31 December 2021, the group had no commitments against future production potentially settled in cash.

Foreign exchange price risk protection agreements

The group, from time to time, may enter into currency forward exchange and currency option contracts to hedge certain anticipated transactions denominated in foreign currencies. The objective of the group’s foreign currency hedging activities is to protect the group from the risk that the eventual cash flows resulting from transactions denominated in US dollars will be adversely affected by changes in exchange rates.

As at 31 December 2021 and 2020, the group had no open forward exchange or currency option contracts in its currency hedge position.







303

IFRS guidance on derivatives and hedging requires that derivative instruments be accounted for as follows:
•Contracts that meet the criteria for hedge accounting are designated as hedging instruments, hedging the variability of forecasted cash flows from the sale of production into the spot market and from capital expenditure denominated in a foreign currency and are classified as cash flow hedges. Cash flow hedge losses pertaining to capital expenditure of $1 million as at 31 December 2021 (2020: $1 million) are expected to be reclassified from accumulated other comprehensive income and recognised as an adjustment to depreciation expense over the life of the Serra Grande mine.
•All other derivatives are measured at their estimated fair value, with the changes in estimated fair value at each reporting date reported as gains or losses on derivatives in earnings in the period in which they occur.

Cash flows related to these instruments designated as qualifying hedges are reflected in the consolidated statement of cash flows in the same category as the cash flow from the items being hedged. Accordingly, cash flows relating to the settlement of forward sale commodity derivatives contracts hedging the forecasted sale of production into the spot market will be reflected upon settlement as a component of operating cash flows.

Interest rate and liquidity risk

Fluctuations in interest rates impact interest paid and received on the short-term cash investments and financing activities, giving rise to interest rate risk.

In the ordinary course of business, the group receives cash from the proceeds of its gold sales and is required to fund its working capital requirements. This cash is managed to ensure that surplus funds are invested in a manner to achieve market related returns while minimising risks.

The group is able to actively source financing at competitive rates. The counterparts are financial and banking institutions and their credit ratings are regularly monitored by the group.

Cash and loans advanced maturity profile
20212020
Maturity dateCurrencyFixed rate
investment
amount
(million)		Effective
rate %		Floating rate
investment
amount
(million)		Effective
rate %		Fixed rate
investment
amount
(million)		Effective
rate %		Floating rate
investment
amount
(million)		Effective
rate %
All less than one year$1 — 301 0.10 — 572 0.15 
ZAR1,337 3.54 — — 2,611 3.30 29 2.00 
AUD— 72 — — 50 — 
BRL— 106 4.27 — 32 1.90 
ARS13,256 34.00 — 6,679 34.00 4,820 30.00 
CAD— 353 0.19 

Borrowings maturity profile
Within one yearBetween
One and two years		Between Two
and five years		After five yearsTotal
CurrencyBorrowings
amount
(million)		Effective
rate
%		Borrowings
amount
(million)		Effective
rate
%		Borrowings
amount
(million)		Effective
rate
%		Borrowings
amount
(million)		Effective
rate
%		Borrowings amount (million)
$51 7.4 — — 63 7.0 1,717 4.1 1,831 
AUD— — 43 1.5 — — — — 43 
BRL1 5.7 — — — — — — 1 
TZS516 12.5 — — 107,163 12.5 — — 107,679 

The table above is based on the borrowings as at 31 December 2021 including borrowing cost and accrued interest but excludes any fair value adjustments.




304

Interest rate risk
Fixed for less than one yearFixed for between one and three yearsFixed for greater than three years
CurrencyBorrowings
amount
(million)		Effective
rate
%		Borrowings
amount
(million)		Effective
rate
%		Borrowings
amount
(million)		Effective
rate
%		Total
Borrowings
amount
(million)
$51 7.4 63 7.0 1,717 4.1 1,831 
AUD— — 43 1.5 — — 43 
BRL1 5.7 — — — — 1 
TZS516 12.5 107,163 12.5— — 107,679 

The table above is based on the borrowings as at 31 December 2021 including borrowing cost and accrued interest but excludes any fair value adjustments.

Non-performance risk

Realisation of contracts is dependent upon counterparts’ performance. The group has not obtained collateral or other security to support the financial instruments subject to non-performance risk, but the credit standing of counterparts was monitored on a regular basis throughout the year. The group spreads its business over a number of financial and banking institutions to minimise the risk of potential non-performance. Furthermore, the approval process of counterparts and the limits applied to each counterpart were monitored by the board of directors. Where possible, ISDA netting agreements were put in place.

The combined maximum credit risk exposure at balance sheet date amounts to $1,300 million in 2021 for financial assets (2020: $1,500 million) and nil million for financial guarantees (2020: nil). Credit risk exposure netted by open derivative positions with counterparts was nil (2020: nil). No set-off is applied to balance sheet amounts due to the different maturity profiles of assets and liabilities.

Fair value of financial instruments

The estimated fair values of financial instruments are determined at discrete points in time based on relevant market information. The estimated fair values of the group’s financial instruments, as measured at 31 December, are as follows (assets (liabilities)):
20212020
Carrying
Amount		Fair
value		Carrying
Amount		Fair
value
(millions)$$$$
Cash and cash equivalents1,154 1,154 1,330 1,330 
Restricted cash58 58 73 73 
Deferred compensation asset25 25 28 28 
Short-term borrowings(51)(51)(142)(142)
Long-term borrowings(1,858)(1,960)(1,789)(1,989)
Listed investments - FVTOCI116 116 186 186 
Listed and unlisted investments1 1 2 2 

The following methods and assumptions were used to estimate the fair value of each class of financial instrument:

Cash restricted for use, cash and cash equivalents

The carrying amounts approximate fair value.

Trade and other receivables and trade and other payables

The carrying amounts approximate fair value because of the short-term duration of these instruments, except for the deferred compensation asset which is carried at fair value in level 3 of the fair value hierarchy.

Other investments

Listed equity investments classified as FVTOCI and FVTPL are carried at fair value in level 1 of the fair value hierarchy.






305

Borrowings

The interest rate on borrowings is reset on a short-term floating rate basis, and accordingly the carrying amount is considered to approximate fair value.

Derivatives

The fair values of volatility-based instruments (i.e. options) are estimated based on market prices, volatilities, credit risk and interest rates for the periods under review.

Gain (loss) on non-hedge derivatives and other commodity contracts recognised
Year ended 31 December
20212020
(millions)$$
Other commodity contracts(1)
— (19)

(1)    Excluding the commodity contracts transferred to held for sale liabilities in 2020.

Foreign exchange risk

Foreign exchange risk arises on financial instruments that are denominated in a foreign currency.

The following table discloses the approximate foreign exchange risk sensitivities of borrowings at 31 December 2021 (actual changes in the timing and amount of the following variables may differ from the assumed changes below).
2021
Change in
exchange rate
Change in
borrowings
Total
$M
Debt
TZS denominated (TZS/$)Spot (+TZS250)(5)
AUD denominated (AUD/$)Spot (+AUD0.1)(2)
2021
Change in
exchange rate		Change in
borrowings
Total
$M
Debt
TZS denominated (TZS/$)Spot (-TZS250)6 
AUD denominated (AUD/$)Spot (-AUD0.1)2 




306

ITEM 12:    DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES


12A.    DEBT SECURITIES

Not applicable


12B.    WARRANTS AND RIGHTS

Not applicable


12C.    OTHER SECURITIES

Not applicable


12D.    AMERICAN DEPOSITARY SHARES


12D.3.    DEPOSITARY FEES AND CHARGES


AngloGold Ashanti’s American Depositary Shares, or ADSs, each representing one of AngloGold Ashanti’s ordinary shares, are traded on the New York Stock Exchange under the symbol “AU.” The ADSs are evidenced by American Depositary Receipts, or ADRs, issued by The Bank of New York Mellon, as Depositary under the Amended and Restated Deposit Agreement dated as of 3 June 2008, among AngloGold Ashanti Limited, The Bank of New York Mellon and owners and beneficial owners of from time to time of ADRs. ADS holders may have to pay the following service fees to the Depositary:

ServiceFees (USD)
Issuance of ADSsUp to 5 cents per ADS(1)
Cancellation of ADSsUp to 5 cents per ADS(1)
Distribution of cash dividends or other cash distributionsUp to 2 cents per ADS(2)
Distribution of securities pursuant to
(i) stock dividends, free stock distributions or
(ii) exercises of rights to purchase additional ADSsUp to 5 cents per ADS(2)
ADR Depositary Services feeUp to 2 cents per year(2)
(1)These fees are typically paid to the Depositary by the brokers on behalf of their clients receiving the newly-issued ADSs from the Depositary and by the brokers on behalf of their clients delivering the ADSs to the Depositary for cancellation. The brokers in turn charge these transaction fees to their clients.
(2)In practice, the Depositary has not collected these fees. If collected, such fees are offset against the related distribution made to the ADR holder.

In addition, ADS holders are responsible for certain fees and expenses incurred by the Depositary on their behalf including (1) taxes and other governmental charges, (2) such registration fees as may from time to time be in effect for the registration of transfers of ordinary shares generally on the share register and applicable to transfers of ordinary shares to the name of the Depositary or its nominee or the Custodian or its nominee on the making of deposits or withdrawals, and (3) such cable, telex and facsimile transmission expenses as are expressly incurred by the Depositary in the conversion of foreign currency.

Fees and other charges payable by the Depositary, any of the Depositary’s agents, including the Custodian, or the agents of the Depositary’s agents in connection with the servicing of Shares or other Deposited Securities, shall be collected at the sole discretion of the Depositary by billing such owners for such charge or by deducting such charge from one or more cash dividends or other cash distributions.

For further information, refer to “Item 10C: Material Contracts—The Deposit Agreement”.

12D.4.    DEPOSITARY PAYMENTS FOR 2021

For the year ended 31 December 2021, The Bank of New York Mellon, as Depositary, reimbursed AngloGold Ashanti an amount of $1,083,405 (2020: $1,057,722) mainly for investor relations related expenses.





307

PART II
ITEM 13:    DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES

None.



308

ITEM 14:    MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS

None.




309

ITEM 15: CONTROLS AND PROCEDURES


(a)    Disclosure Controls and Procedures: As of 31 December 2021, (the “Evaluation Date”), the company, under the supervision and with the participation of its management, including the chief executive officer and chief financial officer has evaluated the effectiveness of the company’s disclosure controls and procedures (as defined in Rules 13a - 15(e) and 15d - 15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)). Based on such evaluation, the chief executive officer and chief financial officer have concluded that, as of the Evaluation Date, the company’s disclosure controls and procedures are effective, and are reasonably designed to ensure that information required to be disclosed by the company in reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the Securities and Exchange Commission. These disclosure controls and procedures include without limitation, controls and procedures designed to ensure that information required to be disclosed by the company in reports that it files or submits under the Exchange Act is accumulated and communicated to the company’s management, including its chief executive officer and chief financial officer, as appropriate to allow timely decisions regarding disclosure.

(b)    Management’s Annual Report on Internal Control over Financial Reporting: Management is responsible for establishing and maintaining adequate internal control over financial reporting for the company, as defined in the Exchange Act Rule 13a - 15(f) and 15d -15(f). The company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of the company’s financial statements for external purposes in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board.

The company’s internal control over financial reporting includes those policies and procedures that:
•Pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect transactions and dispositions of the assets of the company;
•Provide reasonable assurance that the transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of management and the Directors of the company; and
•Provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Projections of any evaluation of effectiveness to future periods is subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with policies and procedures may deteriorate.

The company’s management assessed the effectiveness of the company’s internal control over financial reporting as of the Evaluation Date. In making this assessment, management used the criteria set forth by the Committee of Sponsoring Organisations of the Treadway Commission (COSO) in Internal Control - Integrated Framework and related illustrative documents released on 14 May 2013. Based on this assessment, and using those criteria, management concluded that the company’s internal control over financial reporting was effective as of the Evaluation Date.

(c)    Changes in Internal Control over Financial Reporting: The Company maintains a system of internal control over financial reporting that is designed to provide reasonable assurance that its books and records accurately reflect transactions and that established policies and procedures are followed.

There have been no changes in the company’s internal control over financial reporting identified in connection with the evaluation required by paragraph (d) of Exchange Act Rule 13(a) - 15 during the year ended 31 December 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 netMinas 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 base salary;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.
At
•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 endDIAN that it disagreed with the company’s tax treatment of sixcertain 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, executive directorand the Argentinian tax authorities continue to assert their position regarding the use of the financial derivatives. CVSA filed an appeal with the Tax Court in June 2015, and the parties submitted their final reports in July 2017. The matter is pending with the Tax Court.







272

•Ghanaian tax authorities v. AngloGold Ashanti (Ghana) Limited (AGAG): In Ghana, AGAG received tax assessments of $9 million as of 31 December 2021 in respect of the 2004-2014 tax years, following an audit by the Ghanaian tax authorities related to accumulatewithholding 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 MSRresponse 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 sharesColombia 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 valuewater reservoirs of 200 percentIbagué, the capital of net annual base salary (additional 100 percent MSR)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 theyis 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 holdabandon 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 on-going basis.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.
Chief Financial Officer
Within three years



273

•Piedras and Cajamarca popular consultations: In 2013, the local council of appointment (or for existing executive director,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 introductionproject), 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 rule)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), executive directorthe 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 accumulateveto mining activities through popular consultations. The Constitutional Court also ordered the national legislative body, the Congress of Colombia, to enact a MSRlaw within two years to ensure that local communities and groups are adequately consulted in the approval of mining activities in accordance with specific criteria set out in its ruling. Subsequently, a group of citizens submitted an annulment claim before the Administrative Court of Cundinamarca to cancel AGAC’s mining contract in Cajamarca on the grounds of the results of the Cajamarca popular consultation. After having admitted the annulment claim in December 2019, the Administrative Court of Cundinamarca dismissed the plaintiffs’ claim on 26 May 2021 on procedural grounds. The plaintiffs subsequently appealed this decision and the appeal is currently pending before the Council of State.

•La Colosa Human Rights Litigation: In November 2014, the Personero (Ombudsman) of Ibagué, the capital of the Tolima department, filed a petition against the Colombian government before the Inter-American Commission on Human Rights (Commission), based in Washington, D.C., for alleged human rights violations protected by the American Convention on Human Rights (Convention) which has been ratified by Colombia along with many other Central and South American countries. The Commission has the power to refer a case to the Inter-American Court of Human Rights (Court) which is an autonomous judicial institution based in San José, Costa Rica whose purpose is the application and interpretation of the Convention. The petition alleges that the Colombian government denied justice to the Personero as a result of the failure of the Colombian judiciary to resolve the issues raised in two class actions filed by him before the local Colombian administrative courts within a reasonable period of time. Although AGAC is not a party to the suit, its outcome is nevertheless important to the development of the La Colosa project. The Commission currently has not accepted nor referred the case to the Court. If the case would be accepted or referred in the future, the Colombian government will have to defend itself against the lawsuit and will be bound by the findings of the Court. AGAC continues to regularly follow up with the Colombian government for updates.

•Paramo Delimitation: In November 2016, the Colombian government issued Resolution 1987 delineating certain wetlands or moorlands as environmentally important protected areas, which designation includes certain areas in and around the La Colosa project. In these areas there are limitations, or in some instances outright bans, on mining and mining-related activities. These limitations and bans could potentially adversely impact the design, operations and production of the mining project at the La Colosa project. In June 2017, AGAC filed suit against the Colombian Ministry of the Environment in the Administrative Court of Cundinamarca to annul Resolution 1987 on technical and other grounds. The lawsuit was admitted in April 2019. The Ministry of the Environment, as defendant in this action, is expected to file its response to the annulment claim.

•Zonte Metals: A Canadian junior mining company, Zonte Metals, filed applications for title to certain corridors, or small slivers of land, overlaying sections of the Gramalote project. The Secretary of Mines of Antioquia, the department in which the Gramalote project is located, denied the applications filed by Zonte Metals. However, Zonte Metals then filed a claim against the Colombian National Mining Agency (ANM) and the Antioquia Secretary of Mines before the Council of State of Colombia, by which it seeks to (i) revoke the resolution that denied its application and (ii) obtain the rights over the corridors requested in its application. The Council of State subsequently enjoined the Antioquia Secretary of Mines and Gramalote Colombia Limited (Gramalote) from progressing a pending application to integrate the disputed corridors with Gramalote’s tenement. The Antioquia Secretary of Mines has filed its response to the Zonte Metals claim, which includes arguments



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aligned with the interests and position of Gramalote. In September 2017, the Council of State approved Gramalote’s request to be made an interested party to the lawsuit, but it rejected Gramalote’s request to join the Antioquia Secretary of Mines as a co-defendant in August 2019. In January 2019, the Council of State also re-affirmed that the Council of State is the competent judicial authority to hear the matter. The date for the first hearing is currently pending.

GHANA

•Pompora Treatment Plant Litigation: In April 2013, AngloGold Ashanti shares to(Ghana) Limited (AGAG) received a summons from Abdul Waliyu and 152 others in which the value of 75 percent 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) whichplaintiffs allege that 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 memberswere or 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 executive director and executive committee member’s accomplishmentresidents of the MSR:
Executive 
Six-year target
Achievement
Date
 MSR holding as at 31 December 2019 as percentage of net base pay Three-year MSR Target Achievement Percentage 
Six-year
MSR Target
Achievement Percentage
Executive Directors        
KPM Dushnisky March 2024 279% 100% 200%
KC Ramon March 2021 507% 75% 150%
Prescribed Officers        
SD Bailey(1)
 March 2025 81% 75% 150%
PD Chenard(2)
 March 2026 0%
 75% 150%
GJ Ehm March 2019 321% 75% 150%
LEybers March 2023 169% 75% 150%
S Ntuli(1)
 March 2025 34% 75% 150%
ME Sanz Perez March 2019 532% 75% 150%
TR Sibisi March 2022 155% 75% 150%

(1)
Appointed prescribed officerObuasi municipality or its suburbs and that their health has been adversely affected by emissions and/or other environmental impacts arising in connection with effect from 1 January 2019 and the three year MSR achievement is due in March 2022.
(2)
Appointed prescribed officer with effect from 1 April 2019 and the three year MSR achievement is due in March 2023.


ANGLOGOLD ASHANTI SHARE INCENTIVE SCHEME

AngloGold Ashanti operated several share incentive schemes, the BSP, LTIP, CIP,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 DSP through which participating Executive Directors,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



275

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 any 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 Remco 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)

Prior to the implementation of the DSP in January 2018, AngloGold Ashanti granted awards under the BSP, which 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.






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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 employ ofSA Companies Act. Dividends are recognised when declared by the company atBoard. AngloGold Ashanti’s dividend policy allows the date of vesting unless an event, such as death, retirement or redundancy occurs, which may result inBoard to declare a pro-rata allocation of awards and an earlier vesting date.

Under the scheme, the Executive Committee members received an annual matching allocation of 150 percent of their cash bonus while all other participating employees received an annual matching allocation of 120 percent of their cash bonus. The vesting period runs over a two year period 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, which became fully vested in February 2020, was made in February 2018 in respect of the 2017 performance year duesemi-annual dividend to the implementation of the new incentive scheme, the DSP, in January 2018.

Long Term Incentive Plan (LTIP)

Prior to the implementation of the DSP in January 2018, AngloGold Ashanti granted awards under the LTIP, which was approved by shareholders at the Annual General Meeting heldbe based on 29 April 2005. Executive directors and selected senior management were eligible for participation. Each award made in respect of the LTIP entitled the holder to acquire one ordinary share 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 and or share settled awards. There has not been any allocation under the LTIP scheme since 2017 due to the implementation of the new incentive scheme, the DSP, in January 2018. On 18 February 2020, the Remco approved that the awards granted in 2017 be settled as 50% cash settled and 50% share settled through an AngloGold Ashanti on market share purchase.

Co-investment plan

Prior to the implementation of the Deferred Share Plan (DSP) in January 2018, with effect from February 2013, AngloGold Ashanti operated a co-investment in order to assist our executives in meeting the MSR. Our executives were given the opportunity, on a voluntary basis, to participate in the Co-Investment Plan (CIP), on the conditions below:

Executives were allowed to take up to 50 percent of their after-tax cash bonus and participate in a further matching scheme by purchasing shares in AngloGold Ashanti and the company offered an equity matched their initial investment into the scheme at 15020 percent of the equity originally invested,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 vesting overbefore a two-year perioddividend 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 two equal tranches providedaccordance with and bound by the executives remainedcompany laws of the Republic of South Africa with its primary listing on the Johannesburg Stock Exchange, AngloGold Ashanti is required to declare dividends in employmentSouth African rands. Therefore, dividends are declared in South African rands and retainedpaid 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 original investment. Duedeposit 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 implementationapproval 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 new incentive schemedividend 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 January 2018,terms of certain domestic exemptions, or may be reduced to a lower rate under an applicable double tax treaty, if the DSP,required declarations and undertakings are provided by the beneficial owner of the dividend. In the case of dividends paid to a US holder with respect to shares, the Convention Between the Government of the United States of America and the Republic of South Africa for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income and Capital Gains, signed 17 February 1997 (the “US/SA Double Taxation Treaty”) would generally limit the dividends tax rate to five percent of the gross amount of the dividends if a corporate US holder holds directly at least 10 percent of the voting stock of AngloGold Ashanti. In all other cases, the maximum tax rate under the US/SA Double Taxation Treaty is 15 percent of the gross amount of the dividend. Different rules may apply if the beneficial owner of the dividends is a US resident who carries on business in South Africa through a permanent establishment situated in South Africa, or performs in South Africa independent personal services from a permanent establishment situated in South Africa, and the dividends are attributable to such permanent establishment.













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8B.    SIGNIFICANT CHANGES

Refer to “Item 18: Financial Statements—Note 35—Subsequent Events”.





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ITEM 9: THE OFFER AND LISTING


9A.    OFFER AND LISTING DETAILS

The principal trading markets for AngloGold Ashanti’s ordinary shares are the New York Stock Exchange (NYSE), in the form of ADSs, under the symbol “AU” and the JSE Limited, in the form of ordinary shares, under the symbol “ANG”. Each ADS represents one ordinary share.






9B.    PLAN OF DISTRIBUTION

Not applicable.






9C.    MARKETS

NATURE OF TRADING MARKET

The principal trading markets for AngloGold Ashanti’s ordinary shares are the NYSE, in the form of ADSs, under the symbol “AU” (each representing one ordinary share) and the JSE Limited, in the form of ordinary shares, under the symbol “ANG”.

AngloGold Ashanti’s ordinary shares are also listed on the Ghana Stock Exchange, as ordinary shares under the symbol “AGA” and in the form of Ghanaian Depositary Shares or GhDSs (each representing one one-hundredth of an ordinary share) under the symbol “AAD”, and the Australian Securities Exchange, in the form of CHESS Depositary Interests (each representing one-fifth of an ordinary share) under the symbol “AGG”.






9D.    SELLING SHAREHOLDERS

Not applicable.






9E.    DILUTION

Not applicable.






9F.    EXPENSES OF THE ISSUE

Not applicable.



279

ITEM 10:    ADDITIONAL INFORMATION


10A.SHARE CAPITAL

Not applicable.






10B.MEMORANDUM OF INCORPORATION

At the last CIP participation took place in 2018 in respectAGM 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 cash bonus forphrase “Subject to 9.4.3, this” at the 2017 performance year. The final company matching investment will be madebeginning 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 2020 forits entirety; and
3.by the executives who participatedamendment of Schedule 1 (Authorised Shares) as follows:

3.1    by the deletion of paragraphs 2, 3 and 4 of Schedule 1 in 2018.their entirety; and

Deferred Share Plan (DSP)

On 16 May 2017,3.2    by the shareholders approved the introductiondeletion of the DSP to replace the BSP, the LTIP and the CIP 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 each 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, three or five years, depending on the level of the participant. The deferred shares are awarded as conditional rights to shares with dividend equivalents. The total incentive is determined based on a combination of company and individual performance measures, defined annually, and weightings are applied to each measure. The metrics are defined against the objectives that most strongly drive company performance and are weighted to financial outcomes, production, cost and sustainability. Each metric is weighted and has a threshold, target and stretch definition related to the company budget and the desired stretch targets for the year. Below threshold achievement results in no payment. Attable at the end of each financial year, the CompanySchedule 1 in its entirety and the CEO, CFO and EVP/COO’s performancereplacement thereof with the following new table:

Share capitalSouth African Rands
600,000,000 ordinary shares of R0.25 each150,000,000

The reason for these amendments is assessed byto comply with the Remcoprovisions of the SA Companies Act and the Board againstJSE Listings Requirements and, following the defined metrics to determine the quantumrecent redemption of all of the cash portion and the quantum of the deferred portion as a percentage of base salary as follows:

 Cash
Shares
Total Incentive
Cash
Shares
Total Incentive
Cash
Shares
Total Incentive
LevelThreshold AchievementOn Target AchievementMaximum Achievement
CEO50.00%
100.00%
150.00%
100.00%
200.00%
300.00%150.00%
300.00%
450.00%
CFO42.50%92.50%135.00%85.00%185.00%270.00%127.50%277.50%405.00%
EVP/COO37.50%87.00%124.50%75.00%174.00%249.00%112.50%261.00%373.50%

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. Performance measures are weighted between company and individual key performance indicators (KPIs), as follows:
LevelCompany performance weightingIndividual performance weighting
CEO70.00%30.00%
CFO60.00%40.00%
EVP/COO60.00%40.00%


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 AND OTHER MANAGERS IN THE ANGLOGOLD SHARE INCENTIVE SCHEME

For details of the share-based awards and rights to subscribe for ordinary shares in each company granted to, and exercised by, executive directors, executive management and other managers on an aggregate basis during the year to 31 December 2019 and subsequent to year end up to 19 March 2020, see "Item 18: Financial Statements-Note 33-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 2019, see "Item 18: Financial Statements-Note 11-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 2019 is set out below:
Title of class Authorised
 Issued
Ordinary shares 600,000,000
 415,301,215
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
  2019 2018 2017
At 1 January 412,769,980
 103,192,498
 410,054,615
 102,513,654
 408,223,760
 102,055,940
Issued during the year:            
Exercise of options by participants in the AngloGold Share Incentive Scheme 2,531,235
 632,809
 2,715,365
 678,844
 1,830,855
 457,714
31 December 2019 415,301,215
 103,825,307
 412,769,980
 103,192,498
 410,054,615
 102,513,654

During the period 1 January 2020provisions relating to and including 19 March 2020, 740,448 ordinary shares were issued at an average issue price of R152.70 per share, resulting in 416,005,663 ordinary shares being in issue at 19 March 2020.

Redeemable preference shares

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 process to cancel all the A, B and C redeemable preference shares is ongoing.






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 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



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Ordinary shares held at 31 December 2019 31 December 2018 31 December 2017
Shareholder* 
Number of
Shares

 
Percent
Voting
Rights
 
Number of
Shares

 
Percent
Voting
Rights
 
Number of
Shares

 
Percent
Voting
Rights
BlackRock Inc. 41,236,154
 9.93 32,926,713
 7.98 38,926,159
 9.49
Public Investment Corp. of South Africa 30,439,075
 7.33 25,395,823
 6.15 25,808,607
 6.29
Van Eck Global 27,375,511
 6.59 52,402,004
 12.70    
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 2019,every annual general meeting one-third of the directors will retire by rotation, or if their number is not a totalmultiple of 159,694,660three, 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 38 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.





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Dividends, Rights and Distributions

The ordinary shares participate fully in all dividends, other distributions and entitlements as and when declared by AngloGold Ashanti in respect of fully paid ordinary shares. Under South African law, AngloGold Ashanti may declare and pay distributions (as defined in the SA Companies Act, which includes dividends), subject to the company satisfying the solvency and liquidity test as set out in section 4 of the SA Companies Act and the board passing a resolution acknowledging that such test has been applied and has reasonably concluded that the company would satisfy such test immediately after completing the distribution. Dividends are payable to shareholders registered at a record date after the date of declaration of the dividend.

As a company incorporated and registered in the Republic of South Africa with its primary listing on the Johannesburg Stock Exchange, AngloGold Ashanti is required to declare dividends in South African rands. Dividends are paid in South African rands, Australian dollars, Ghanaian cedis and British pounds. Registered holders of AngloGold Ashanti ADSs are paid dividends in US dollars by The Bank of New York Mellon as Depositary, 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 2019, the number of persons who were registered holders of ADSs was reported at 2,197. 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 2019, there were 11,837 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 492 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 80,410,115 ordinary shares 19.36 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



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and the C redeemable preference shares is entitled to one vote for every B redeemable preference share and C redeemable preference share held respectively.

The MoI specifies that the rights relating to any class of shares may be modified or abrogated with the sanction of a resolution passed as if it were a special resolution of the holders of shares in that class at a separate general meeting. The MoI also specifies that any holders of the A, B and C redeemable preference shares may provide written consents to the modification of their rights.

Increase and Reduction of Capital

The company is authorised to issue the shares specified in the MoI and all such shares are required to be issued as fully paid up in accordance with the applicable approval and/or other requirements of the SA Companies Act and the JSE Listings Requirements.

The directors are authorised, subject to any requirements of the JSE Listings Requirements, the SA Companies Act, the Regulations and the MoI, to increase or decrease the number of authorised shares of any class of shares, reclassify any shares that have been authorised but not issued, classify any unclassified shares that have been authorised but not issued, and determine the preferences, rights, limitations or other terms of any class of authorised shares or amend any preferences, rights, limitations or other terms as determined. However, such capital amendments require an amendment to be made to the MoI. The SA Companies Act and the JSE Listings Requirements currently do not allow the MoI to be amended to give effect to such capital amendments without the approval of ordinary shareholders by special resolution.

Rights Upon Liquidation

In the event of the winding up of AngloGold Ashanti:
•The A redeemable preference shares shall confer the right, on a winding-up of the company, in priority to any payment in respect of the ordinary shares in the capital of the company then issued, but after any payment in respect of the B redeemable preference shares and the C redeemable preference shares in the capital of the company then issued, to receive only so much of the net proceeds from the disposal of the assets relating to the Moab Lease Area as is then available for distribution;
•The B redeemable preference shares shall confer the right, on a winding-up of the company in priority to any payment in respect of the ordinary shares, the A redeemable preference shares and the C redeemable preference shares then in issue, to receive only so much of the net proceeds from the disposal of the assets relating to the Moab Lease Area as is available for distribution but not exceeding a return per B preference share of the capital paid-up thereon and any share premium paid on the issue of the B redeemable preference shares outstanding at that time;
•The C redeemable preference shares shall confer the right, on a winding-up of the company, ranking after and following payment of the holders of the B redeemable preference shares, but in priority to any payment in respect of the ordinary shares and the A redeemable preference shares in the capital of the company then issued, to receive only so much of the net proceeds from the disposal of the assets relating to the Moab Lease Area as is available for distribution but not exceeding a return per C preference share of the capital paid-up on the issue of the C redeemable preference shares outstanding at that time;
•The A, B and C redeemable preference shares shall not be entitled to any participation, on a winding-up, in any of the surplus funds of the company in any other manner arising; and
•The ordinary shares confer the right to participate equally in any surplus arising from the liquidation of all other assets of AngloGold Ashanti.

Redemption Provisions

The A redeemable preference shares may be redeemed for their nominal value, plus a premium per share of an amount equal to the net proceeds available from the disposal of the assets relating to the Moab Lease Area, after redemption in full of the B redeemable preference shares and the C redeemable preference shares, and payment of the nominal value of the A redeemable preference shares, divided by 2,000,000.

The B redeemable preference shares may be redeemed for their nominal value, plus a premium of an amount equal to 175,096,390 divided by that number of B redeemable preference shares in issue, but limited to an amount equal to the net proceeds available from the disposal of the assets relating to the Moab Lease Area after payment of the nominal value of the B redeemable preference shares.

The C redeemable preference shares may be redeemed for their aggregate issue price of the said C redeemable preference shares, but shall be limited to an amount equal to the net proceeds available from the disposal of the assets relating to the Moab Lease Area and only after redemption in full of the B redeemable preference shares.





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Shareholders’ Meetings

The directors may convene meetings of AngloGold Ashanti shareholders. Subject to the provisions of the SA Companies Act, the shareholders may requisition for the convening of a meeting.

Notice of each AngloGold Ashanti annual general meeting and general meeting of AngloGold Ashanti shareholders must be delivered at least 15 business days before that shareholders’ meeting is to begin. In accordance with the SA Companies Act, business days are calculated by excluding the first day, including the last day and excluding Saturdays, Sundays and any public holiday in the Republic of South Africa. In terms of the MoI, all shareholders are entitled to attend shareholders’ meetings at which they are entitled to vote.

In the case of a class meeting of the A, B or C redeemable preference shares, the sole holder of such shares shall constitute a quorum. Save as aforesaid, the quorum of a shareholders’ meeting is sufficient persons present, in person or by proxy, at the meeting to exercise, in aggregate, at least 25 percent of all of the voting rights that are entitled to be exercised in respect of at least one matter to be decided at the meeting and a quorum must remain present for the continuation of that shareholders meeting, provided that at least three shareholders must be present and remain at the meeting. Such quorum requirement also applies for the consideration of any matter to be decided at the meeting. If the meeting is not quorate within 30 minutes after the appointed time for the meeting to begin (or such longer or shorter period as the chairperson may determine), it will be postponed, without motion, vote or further notice, for 1 week and the shareholders present, in person or by proxy, at the postponed meeting will constitute a quorum. For an ordinary resolution to be approved by shareholders, it must be supported by more than 50 percent of the voting rights exercised on the resolution. For a special resolution to be approved by shareholders, it must be supported by at least 75 percent of the voting rights exercised on the resolution.

Disclosure of Interest in Shares

Under South African law, a person must notify AngloGold Ashanti within three business days after that person (i) acquires a beneficial interest in sufficient securities of a class of securities issued by AngloGold Ashanti such that, as a result of the acquisition, the person holds a beneficial interest in securities amounting to five percent, ten percent, fifteen percent or any further whole multiple of five percent of the issued securities of that class or (ii) disposes of any beneficial interest in sufficient securities of a class of securities issued by AngloGold Ashanti such that, as a result of the disposition, the person no longer holds a beneficial interest in securities amounting to a particular multiple of five percent of issued securities of that class. When AngloGold Ashanti has received the notice referred to above it must file a copy with the Takeover Regulation Panel and report the information to holders of the relevant class of securities unless the notice concerned is a disposition of less than one percent of the class of securities.

If the securities of AngloGold Ashanti are registered in the name of a person who is not the holder of the beneficial interest in all of the securities in AngloGold Ashanti held by that person, that registered holder of the securities must disclose the identity of the person on whose behalf that security is held and the identity of each person with a beneficial interest in securities so held, the number and the class of securities held for each such person with a beneficial interest and the extent of each such beneficial interest. This information must be disclosed in writing to the company within five business days after the end of every month during which a change has occurred in the information or more promptly or frequently to the extent so provided by the requirements of a Central Securities Depository. A company that knows or has reasonable cause to believe that any of its securities are held by one person for the beneficial interest of another may by notice in writing require either of those persons to confirm or deny that fact, provide particulars of the extent of the beneficial interest held during the three years preceding the date of the notice and disclose the identity of each person with a beneficial interest in the securities held by that person, which information must be provided within 10 business days of the receipt of the notice.

AngloGold Ashanti is obligated to establish and maintain a register of the disclosures described above and to publish in its annual financial statements a list of the persons who hold beneficial interests equal to or in excess of five percent of the total number of ordinary shares issued by AngloGold Ashanti together with the extent of those beneficial interests.

Rights of Minority Shareholders

Majority shareholders of South African companies have no fiduciary obligations under South African common law to minority shareholders. However, under the SA Companies Act, a shareholder or director may, under certain circumstances, seek relief from a court if he has been unfairly prejudiced by any act or omission of the company or a related person, by the conduct of the business of the company or a related person in a particular manner, the exercise of the powers of the directors of the company or a related person in a particular manner. There may also be personal and derivative actions available to a shareholder of a company.

Pursuant to the SA Companies Act, a shareholder may petition a South African court for relief from the actions or omissions or, business conduct of the company or the actions of the company’s directors or officers that is oppressive or unfairly prejudicial to, or unfairly disregards the interest of the shareholder. In addition, a shareholder who voted against a resolution to amend the company’s MoI, or to approve a fundamental transaction, (and complied with other requirements set out in the SA Companies



284

Act) may exercise its appraisal right to demand that the company pay to it the fair value for all the shares of the company held by that shareholder.

Description of ADSs

The Bank of New York Mellon issues AngloGold Ashanti’s American Depositary Shares, or ADSs. Please see “Item 10C: Material Contracts—Description of AngloGold Ashanti ADSs”.



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10C.MATERIAL CONTRACTS

Multi-currency Revolving Credit Facility

General

On 23 October 2018, AngloGold Ashanti Holdings plc (AGAH) and AngloGold Ashanti Australia Limited, as borrowers, entered into a five-year unsecured multi-currency syndicated revolving credit facility of $1.4 billion (the $1.4 billion multi-currency RCF) with The Bank of Nova Scotia, as facility agent, and certain financial institutions party thereto, as lenders. The loan consists of (i) a US dollar based facility (base currency) and (ii) an Australian dollar based facility capped at A$500 million which will be used to fund the working capital and development costs associated with the group’s mining operations within Australia (without eroding the group’s headroom under its other facilities and exposing the group to foreign exchange gains/losses each quarter). As of 23 March 2022, the equivalent of $34 million was drawn under the AUD portion of the $1.4billion multi-currency RCF.

Guarantees

The $1.4 billion multi-currency RCF is guaranteed by AGAH and AngloGold Ashanti Australia Limited. The guarantees constitute unconditional obligations of the guarantors and rank at least pari passu with all other future unsecured obligations of the guarantors, except for obligations mandatorily preferred by law.

Security

Save as set out under the heading “—Guarantees” above, the obligations under the $1.4 billion multi-currency RCF are unsecured.

Amount and repayment of borrowings

Loans under the $1.4 billion multi-currency RCF must be for a minimum of $10 million, if the currency selected is the base currency (US dollar), or a minimum of A$10 million (or for the balance of the undrawn total commitments at the time of the drawing), if the currency selected is Australian dollars. No more than 14 loans may be outstanding at any time. Each loan must be repaid on the maturity date in the same currency as the maturing loan. All loans must be repaid in full on the final maturity date. The $1.4 billion multi-currency RCF matures in October 2023.

Interest rates and fees

The annual interest rate on loans drawn under the $1.4 billion multi-currency RCF is calculated based on LIBOR, plus an initial margin of 1.45 percent per annum that varies between 0.95 percent and 2.15 percent per annum depending on the long-term debt rating of AGAH, and in relation to any Loan in Australian dollars, BBSY, and certain mandatory costs. The applicable margin is subject to a ratings grid. In this regard, the interest margin will reduce should the group’s credit rating improve from its current BB+/Baa3 status and should increase if its credit rating worsens. Interest on loans is payable on the last day of the loan’s interest period and, if the interest period exceeds six months, on the dates falling at six-monthly intervals after the day the loan was made.

The borrowers under the $1.4 billion multi-currency RCF are required to pay a commitment fee in the base currency equal to 35 percent of the then applicable margin per annum on the undrawn and uncancelled amount of each lender’s commitment during the commitment period. The borrowers are also required to pay a utilisation fee of 0.10 percent per annum (if the aggregate outstanding loans are less than one third of the total commitments then in effect), 0.20 percent per annum (if the aggregate outstanding loans are equal to or greater than one third but less than two-thirds of the total commitments then in effect) or 0.40 percent per annum (if the aggregate outstanding loans are equal to or greater than two-thirds of the total commitments then in effect).

Financial covenant

The $1.4 billion multi-currency RCF includes a financial maintenance covenant which requires that the ratio of Total Net Financial Indebtedness to EBITDA (as such terms are defined in the revolving credit agreement) does not at any time exceed 3.50 to 1.00, with the proviso that this ratio may exceed 3.50 to 1.00 once during the life of the revolving credit agreement, for one six-month period subject to certain criteria. Refer to “Item 18: Financial Statements—Note 34—Capital Management” for the formulae used in the revolving credit agreement to test compliance with the covenants.

Change of control

If a lender so requires, the commitment of such lender under the $1.4 billion multi-currency RCF will be cancelled and the participation of such lender in all outstanding loans, together with accrued interest and all other amounts accrued, will become immediately due and payable in case any person or group of persons acting in concert becomes (directly or indirectly) the beneficial owner of more than 50 percent of the issued share capital of AngloGold Ashanti Limited.




286

Undertakings

The $1.4 billion multi-currency RCF contains a negative pledge covenant, including restrictions on the granting of security, a change of business of AngloGold Ashanti Limited and its subsidiaries, acquisitions or participations in joint ventures and mergers and disposals.

The $1.4 billion multi-currency RCF also contains, among other things, the following affirmative covenants: mandatory periodic reporting of financial and other information, notice upon the occurrence of events of default and certain other events, compliance with environmental laws and other obligations requiring each of AGAH and its subsidiaries to maintain its corporate existence and qualifications to conduct its business as currently conducted in all applicable jurisdictions and to maintain insurance coverage. The covenants are subject to exceptions and materiality thresholds.

Events of default

The $1.4 billion multi-currency RCF contains events of default including failure to make payment of amounts due, breach of obligations under the loan documents, defaults under other agreements evidencing indebtedness, certain bankruptcy events and a cessation of business, failure of any of the borrowers to be a wholly owned subsidiary of AGAH and the occurrence of a material adverse change in the business and financial condition of the borrowers and guarantors under the revolving credit agreement, or AngloGold Ashanti and its subsidiaries as a whole, or in the ability of the borrowers and guarantors to perform their payment obligations under the loan documents. The occurrence of an event of default could result in the immediate and automatic cancellation of all commitments and the acceleration of all payment obligations under the revolving credit agreement and the other loan documents.

The above description is only a summary of certain provisions of the revolving credit agreement and is qualified in its entirety by reference to the provisions of the revolving credit agreement, a copy of which is attached hereto as Exhibit 19.4.4.1 and is incorporated herein by reference.

Bridge Facility

On 28 April 2020, AngloGold Ashanti Holdings plc (AGAH), as borrower, entered into a US$1.0 billion unsecured bridge facility agreement with a syndicate of lenders, guaranteed by AngloGold Ashanti Australia Limited. The bridge facility was for a term of 364 days which could be extended for a further six months with consent of the lenders. Amounts outstanding under the bridge facility bore interest at LIBOR plus a margin that increased over time. The bridge facility contained certain restrictive and affirmative covenants, events of default as well as a financial maintenance covenant. The lenders under the bridge facility were required to fund only if our $1.4 billion multi-currency RCF was drawn by at least $1.39 billion. The bridge facility agreement also contained a mandatory prepayment and cancellation clause. In particular, commitments under the bridge facility were automatically cancelled upon, among other matters, the incurrence of certain indebtedness (including the offering of the 2020 Notes as described below) and the consummation of certain disposals (including, for example, the disposal of our South African operations). The bridge facility, which remained undrawn, was cancelled on 1 October 2020.

The above description is only a summary of certain provisions of the bridge facility agreement and is qualified in its entirety by reference to the provisions of the cancelled bridge facility agreement.

Notes

Each of the series of notes described below were issued under the indenture, dated as of 28 April 2010, among AngloGold Ashanti Holdings plc (AGAH), as issuer, AngloGold Ashanti Limited, as guarantor, and The Bank of New York Mellon, as trustee (the Indenture). The below descriptions are only a summary of certain provisions of those series of notes and are qualified in their entirety by reference to the provisions of the Indenture and such relevant series of notes, a copy of each is attached hereto as Exhibits 19.2.1, 19.2.2, 19.2.3, 19.2.4 and 19.2.5 and is incorporated herein by reference.

2021 Notes

On 22 October 2021, AGAH issued $750 million 3.375 percent Notes due 2028 (the “2021 Notes”). The interest on the 2021 Notes is payable semi-annually on 1 May and 1 November of each year, commencing on 1 May 2022. AGAH may on any one or more occasions redeem all or part of the 2021 Notes, at a redemption price equal to the greater of (1) 100 percent of the principal amount of the 2021 Notes to be redeemed and (2) the sum of the present values of the remaining scheduled payments of principal and interest on the 2021 Notes (excluding any portion of such payments of interest accrued or unpaid as of the date of redemption) discounted to the redemption date on a semiannual basis (assuming a 360-day year consisting of twelve 30-day months) at the treasury rate, plus 30 basis points, plus accrued and unpaid interest, if any, to the date of redemption. AGAH has agreed to pay certain additional amounts in respect of any withholdings or deductions for certain types of taxes in certain jurisdictions on payments to holders of the 2021 Notes. The 2021 Notes are unsecured and unsubordinated and are fully and unconditionally guaranteed by AngloGold Ashanti Limited.




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AGAH has agreed to observe certain covenants with respect to the 2021 Notes restricting, subject to certain limitations, the ability of AngloGold Ashanti Limited and AGAH to amalgamate, reconstruct, consolidate or merge with another company or other legal entity, and the ability of AngloGold Ashanti Limited and its restricted subsidiaries to pledge their assets to secure certain borrowings, create or incur liens on certain of their property or to engage in sale and leaseback transactions. In case of a change of control of the guarantor and a downgrade, within a specified period, of the 2021 Notes by three rating agencies, holders of the 2021 Notes have the right to require the issuer to repurchase all or any part of their 2021 Notes in cash for a value equal to 101 percent of the aggregate principal amount of 2021 Notes repurchased, plus accrued and unpaid interest, if any, on the 2021 Notes repurchased to the date of repurchase.

The offering of the 2021 Notes was registered under the Securities Act. The 2021 Notes were listed on the New York Stock Exchange.

2020 Notes

On 1 October 2020, AGAH issued $700 million 3.750 percent Notes due 2030 (the 2020 Notes). The interest on the 2020 Notes is payable semi-annually on 1 April and 1 October of each year, commencing on 1 April 2021. AGAH may on any one or more occasions redeem all or part of the 2020 Notes, at a redemption price equal to the greater of (1) 100 percent of the principal amount of the 2020 Notes to be redeemed and (2) the sum of the present values of the remaining scheduled payments of principal and interest on the 2020 Notes (excluding any portion of such payments of interest accrued or unpaid as of the date of redemption) discounted to the redemption date on a semiannual basis (assuming a 360-day year consisting of twelve 30-day months) at the treasury rate, plus 50 basis points, plus accrued and unpaid interest, if any, to the date of redemption. AGAH has agreed to pay certain additional amounts in respect of any withholdings or deductions for certain types of taxes in certain jurisdictions on payments to holders of the 2020 Notes. The 2020 Notes are unsecured and unsubordinated and are fully and unconditionally guaranteed by AngloGold Ashanti Limited.

AGAH has agreed to observe certain covenants with respect to the 2020 Notes restricting, subject to certain limitations, the ability of AngloGold Ashanti Limited and AGAH to amalgamate, reconstruct, consolidate or merge with another company or other legal entity, and the ability of AngloGold Ashanti Limited and its restricted subsidiaries to pledge their assets to secure certain borrowings, create or incur liens on certain of their property or to engage in sale and leaseback transactions. In case of a change of control of the guarantor and a downgrade, within a specified period, of the 2020 Notes by three rating agencies, holders of the 2020 Notes have the right to require the issuer to repurchase all or any part of their 2020 Notes in cash for a value equal to 101 percent of the aggregate principal amount of 2020 Notes repurchased, plus accrued and unpaid interest, if any, on the 2020 Notes repurchased to the date of repurchase.

The offering of the 2020 Notes was registered under the Securities Act. The 2020 Notes were listed on the New York Stock Exchange.

2012 Notes

On 30 July 2012, AGAH issued $750 million 5.125 percent Notes due 2022 (the 2012 Notes). The interest on the 2012 Notes was payable semi-annually on 1 February and 1 August of each year, commencing on 1 February, 2013. AGAH was permitted on any one or more occasions to redeem all or part of the 2012 Notes, at a redemption price equal to the greater of (1) 100 percent of the principal amount of the 2012 Notes to be redeemed and (2) the sum of the present values of the remaining scheduled payments of principal and interest on the 2012 Notes (excluding any portion of such payments of interest accrued or unpaid as of the date of redemption) discounted to the redemption date on a semiannual basis (assuming a 360-day year consisting of twelve 30-day months) at the treasury rate, plus 50 basis points, plus accrued and unpaid interest, if any, to the date of redemption. AGAH had agreed to pay certain additional amounts in respect of any withholdings or deductions for certain types of taxes in certain jurisdictions on payments to holders of the 2012 Notes. The 2012 Notes were unsecured and unsubordinated and were fully and unconditionally guaranteed by AngloGold Ashanti Limited.

AGAH had agreed to observe certain covenants with respect to the 2012 Notes restricting, subject to certain limitations, the ability of AngloGold Ashanti Limited and AGAH to amalgamate, reconstruct, consolidate or merge with another company or other legal entity, and the ability of AngloGold Ashanti Limited and its restricted subsidiaries to pledge their assets to secure certain borrowings, create or incur liens on certain of their property or to engage in sale and leaseback transactions. In case of a change of control of the guarantor and a downgrade, within a specified period, of the 2012 Notes below an investment grade rating by two rating agencies, holders of the 2012 Notes had the right to require the issuer to repurchase all or any part of their 2012 Notes in cash for a value equal to 101 percent of the aggregate principal amount of 2012 Notes repurchased, plus accrued and unpaid interest, if any, on the 2012 Notes repurchased to the date of purchase.

The offering of the 2012 Notes was registered under the Securities Act. The 2012 Notes were listed on the New York Stock Exchange.

The 2012 notes were redeemed in October and November 2021 and are no longer outstanding.





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2010 Notes

On 28 April 2010, AGAH issued $700 million 5.375 percent Notes due 2020 and $300 million 6.500 percent Notes due 2040 (together, the 2010 Notes). The interest on the 2010 Notes is payable semi-annually on 15 April and 15 October of each year, commencing on 15 October 2010. AGAH may on any one or more occasions redeem all or part of the 2010 Notes, at a redemption price equal to the greater of (1) 100 percent of the principal amount of the 2010 Notes to be redeemed and (2) the sum of the present values of the remaining scheduled payments of principal and interest on the 2010 Notes (excluding any portion of such payments of interest accrued or unpaid as of the date of redemption) discounted to the redemption date on a semiannual basis (assuming a 360-day year consisting of twelve 30-day months) at the treasury rate, plus 25 basis points with respect to the 2010 Notes maturing in 2020 and 30 basis points with respect to the 2010 Notes maturing in 2040, plus accrued and unpaid interest, if any, to the date of redemption. AGAH has agreed to pay certain additional amounts in respect of any withholdings or deductions for certain types of taxes in certain jurisdictions on payments to holders of the 2010 Notes. The 2010 Notes are unsecured and unsubordinated and are fully and unconditionally guaranteed by AngloGold Ashanti Limited.

AGAH has agreed to observe certain covenants with respect to the 2010 Notes restricting, subject to certain limitations, the ability of AngloGold Ashanti Limited and AGAH to amalgamate, reconstruct, consolidate or merge with another company or other legal entity, and the ability of AngloGold Ashanti Limited and its restricted subsidiaries to pledge their assets to secure certain borrowings, create or incur liens on certain of their property or to engage in sale and leaseback transactions. In case of a change of control of the guarantor and a downgrade, within a specified period, of a series of 2010 Notes below an investment grade rating by two rating agencies, holders of the 2010 Notes have the right to require the issuer to repurchase all or any part of their 2010 Notes in cash for a value equal to 101 percent of the aggregate principal amount of 2010 Notes repurchased, plus accrued and unpaid interest, if any, on the 2010 Notes repurchased to the date of purchase.

The offering of the 2010 Notes was registered under the Securities Act. The 2010 Notes were listed on the New York Stock Exchange.

The $700 million 5.375 percent Notes due 2020 were repaid at maturity on 15 April 2020 and are no longer outstanding.

For further information, see Item 18: Financial Statements—Note 24—Borrowings”,“Item 5B: Liquidity and Capital Resources” and “Item 19: Exhibits to Form 20-F”.

Description of AngloGold Ashanti ADSs

The Bank of New York Mellon issues AngloGold Ashanti’s American Depositary Shares, or ADSs. Each ADS represents the ownership interest of one ordinary share of AngloGold Ashanti.

The Deposit Agreement

This section provides a summary description of AngloGold Ashanti’s ADSs.

AngloGold Ashanti has entered into an Amended and Restated Deposit Agreement dated 3 June 2008 with The Bank of New York Mellon as Depositary and the owners and beneficial owners of American Depositary Receipts (Deposit Agreement).

The following is a summary of the material provisions of the Deposit Agreement. For more complete information, read the entire Deposit Agreement and the Form of American Depositary Receipt, which AngloGold Ashanti has filed with the SEC as an exhibit to AngloGold Ashanti’s registration statements on Form F-6 (Registration Nos. 333-133049 and 333-159248) on 27 May 2008 and 14 May 2009, respectively. A copy thereof is also attached hereto as Exhibit 19.2.6 and is incorporated herein by reference. See “Item 10H: Documents on Display”. Copies of the Deposit Agreement are also available for inspection at the Corporate Trust Office of The Bank of New York Mellon currently located at 240 Greenwich Street, New York, New York 10286.

Description of the ADSs

The Bank of New York Mellon, as Depositary, registers and delivers ADSs. Each ADS represents one ordinary share (or a right to receive one share) deposited with Standard Bank of South Africa Limited, FirstRand Bank Limited or HSBC Bank Australia Limited, each as a custodian for The Bank of New York Mellon, and all of which are referred to collectively as the “Custodian”. Each ADS also represents any other securities, cash or other property which may be held by The Bank of New York Mellon. The Bank of New York Mellon’s Corporate Trust Office at which the ADSs are administered is located at 240 Greenwich Street, New York, New York 10286. The Bank of New York Mellon’s principal executive office is also located at 240 Greenwich Street, New York, New York 10286.

ADSs may be held either (A) directly (i) by having an American Depositary Receipt, also referred to as an ADR, which is a certificate evidencing a specific number of ADSs, registered in the holder’s name, or (ii) by having ADSs registered in a holder’s name in the Direct Registration System, or (B) indirectly by holding a security entitlement in ADSs through a broker or other financial institution. If ADSs are held directly, such holders are ADS holders. This description applies to AngloGold Ashanti’s ADS holders. If ADSs are held indirectly, such holders must rely on the procedures of their broker or other financial institution to assert



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the rights of ADS registered holders described in this section. Such holders should consult with their broker or financial institution to find out what those procedures are.

The Direct Registration System, or DRS, is a system administered by DTC pursuant to which the Depositary may register the ownership of uncertificated ADSs, which ownership will be evidenced by periodic statements sent by the Depositary to the registered holders of uncertificated ADSs.

AngloGold Ashanti does not treat ADS holders as its shareholders and ADS holders do not have shareholder rights. South African law governs shareholder rights. The Bank of New York Mellon is the holder of the shares underlying the ADSs. Registered holders of ADSs have ADS holder rights. The Deposit Agreement sets out ADS holder rights as well as the rights and obligations of The Bank of New York Mellon. New York law governs the Deposit Agreement and the ADSs.

Dividends and Other Distributions

The Bank of New York Mellon has agreed to pay to holders of ADSs the cash dividends or other distributions it or a Custodian receives on AngloGold Ashanti ordinary shares or other deposited securities after deducting any fees and expenses and any applicable withholding taxes. Holders of ADSs will receive these distributions in proportion to the number of AngloGold Ashanti’s ordinary shares that their ADSs represent.

Cash

The Bank of New York Mellon will convert any cash dividend or other cash distribution (in South African rands) that AngloGold Ashanti pays on ordinary shares into US dollars (unless AngloGold Ashanti pays such dividend or cash distribution in US dollars) and distribute to registered holders of ADSs. If that is no longer possible or if any approval from any government is needed and cannot be obtained, The Bank of New York Mellon may distribute non-US currency only to those ADS holders to whom it is possible to make this type of distribution.

The Bank of New York Mellon may hold the non-US currency it cannot convert for the account of holders of ADSs who for one reason or the other have not been paid. It will not invest the non-US currency, and it will not be liable for interest on such amounts. Before making a distribution, any withholding taxes that must be paid will be deducted. See “Payment of Taxes” below. The Bank of New York Mellon will distribute only whole US dollars and cents and will round fractional cents to the nearest whole cent. If the exchange rates fluctuate during a time when The Bank of New York Mellon cannot convert the non-US currency, holders of ADSs may lose some or all of the value of the distribution.

Ordinary Shares

The Bank of New York Mellon may distribute to holders of ADSs additional ADSs representing ordinary shares that AngloGold Ashanti distributes as a dividend or free distribution, if AngloGold Ashanti provides it promptly with satisfactory evidence that it is legal to do so. If The Bank of New York Mellon does not distribute additional ADSs, the outstanding ADSs will also represent the newly distributed AngloGold Ashanti ordinary shares. The Bank of New York Mellon will only distribute whole ADSs. It will sell AngloGold Ashanti ordinary shares that would require it to deliver a fraction of an ADS and distribute the net proceeds in the same way as it distributes cash. The Bank of New York Mellon may sell a portion of the distributed shares sufficient to pay its fees and expenses in connection with that distribution.

Rights to Subscribe for Additional Ordinary Shares

If AngloGold Ashanti offers holders of its ordinary shares any rights to subscribe for additional AngloGold Ashanti ordinary shares or any other rights, The Bank of New York Mellon, after consultation with AngloGold Ashanti, may make these rights available to holders of ADSs or sell the rights and distribute the proceeds in the same way as it distributes cash. If The Bank of New York Mellon cannot do either of these things for any reason, it may allow these rights to lapse. In that case, holders of ADSs will receive no value for them.

If The Bank of New York Mellon makes these types of subscription rights available to holders of ADS, upon instruction from holders of ADSs, it will exercise the rights and purchase AngloGold Ashanti’s ordinary shares on their behalf. The Bank of New York Mellon will then deposit the AngloGold Ashanti ordinary shares and deliver ADSs to the holders of ADSs. It will only exercise these rights if holders of ADSs pay it the exercise price and any other charges the rights require them to pay.

US securities laws may restrict the sale, deposit, cancellation and transfer of the ADSs issued after exercise of rights. For example, holders of ADSs may not be able to trade the ADSs freely in the United States. In this case, The Bank of New York Mellon may deliver ADSs which are “restricted securities” within the meaning of Rule 144 which will have the same provisions as the ADSs described here, except for the changes needed to put the restrictions in place.

Other Distributions

The Bank of New York Mellon will send to holders of ADSs any other distributions that AngloGold Ashanti makes on deposited securities by any means it thinks is legal, fair and practical. If it cannot make the distribution in that way, The Bank of New York



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Mellon may decide to sell what AngloGold Ashanti distributes, and then distribute the net proceeds in the same way as it distributes cash, or it may decide to hold what AngloGold Ashanti distributes, in which case the outstanding ADSs will also represent the newly distributed property. However, The Bank of New York Mellon is not required to distribute any securities (other than ADSs) to ADS holders unless it receives satisfactory evidence from AngloGold Ashanti that it is legal to make that distribution. The Bank of New York Mellon may sell a portion of the distributed securities or property sufficient to pay its fees and expenses in connection with that distribution.

The Bank of New York Mellon is not responsible if, based on available information, it decides that it is unlawful or impractical to make a distribution available to any ADS holders. AngloGold Ashanti has no obligation to register ADSs, AngloGold Ashanti ordinary shares, rights or other securities under the Securities Act. AngloGold Ashanti also has no obligation to take any other action to permit the distribution of ADSs, AngloGold Ashanti ordinary shares, or any other rights to ADS holders. This means that the holders of ADSs may not receive the distribution AngloGold Ashanti makes on its ordinary shares or any value for them if it is illegal or impracticable for AngloGold Ashanti to make them available to the holders of ADSs.

Deposit, Withdrawal and Cancellation

The Bank of New York Mellon will deliver ADSs if a holder of AngloGold Ashanti’s ordinary shares or its broker deposits AngloGold Ashanti’s ordinary shares or evidence of rights to receive ordinary shares with the Custodian. Upon payment of its fees and expenses and of any taxes or charges, such as stamp taxes or stock transfer taxes or fees, The Bank of New York Mellon will register the appropriate number of ADSs in the names such holder of AngloGold Ashanti ordinary shares requests and will deliver the ADSs at its Corporate Trust Office to the persons such holders request.

Holders of ADSs may turn in their ADSs at The Bank of New York Mellon’s Corporate Trust Office. Upon payment of its fees and expenses and of any taxes or charges, such as stamp taxes or stock transfer taxes or fees, The Bank of New York Mellon will deliver (1) the underlying ordinary shares to an account designated by the relevant holder of ADSs and (2) any other deposited securities underlying the ADSs at the office of the Custodian, or, at the request, risk and expense of ADS holders, The Bank of New York Mellon will deliver the deposited securities at its Corporate Trust Office.

Interchange Between Certificated ADSs and Uncertificated ADSs

ADS registered holders may surrender their ADS to The Bank of New York Mellon for the purpose of exchanging such ADS for uncertificated ADSs. The Bank of New York Mellon will cancel that ADS and will send to the ADS registered holder a statement confirming that the ADS registered holder is the registered holder of uncertificated ADSs. Alternatively, upon receipt by The Bank of New York Mellon of a proper instruction from a registered holder of uncertificated ADSs requesting the exchange of uncertificated ADSs for certificated ADSs, The Bank of New York Mellon will execute and deliver to the ADS registered holder an ADS evidencing those ADSs.

Voting Rights

ADS registered holders may instruct The Bank of New York Mellon to vote the number of deposited shares their ADSs represent. The Bank of New York Mellon will notify ADS registered holders of shareholders’ meetings and arrange to deliver AngloGold Ashanti’s voting materials to them if AngloGold Ashanti asks it to. Those materials will describe the matters to be voted on and explain how ADS registered holders may instruct The Bank of New York Mellon how to vote. For instructions to be valid, they must reach The Bank of New York Mellon by a date set by The Bank of New York Mellon.

Otherwise, ADS registered holders will not be able to exercise their right to vote unless they withdraw the shares. However, ADS registered holders may not know about the meeting sufficiently in advance to withdraw the shares.

The Bank of New York Mellon will try, as far as practicable, to vote or to have its agents vote the ordinary shares or other deposited securities as holders of ADSs instruct, but this is subject to South African law, the provisions of AngloGold Ashanti’s MoI and of the deposited securities and any applicable rule of the JSE. The Bank of New York Mellon will only vote or attempt to vote as such holders of ADSs instruct.

AngloGold Ashanti cannot assure the holders of ADSs that they will receive the voting materials in time for them to instruct The Bank of New York Mellon to vote their ordinary shares. In addition, The Bank of New York Mellon and its agents are not responsible for failing to carry out voting instructions or for the manner of carrying out voting instructions. This means that holders of ADSs may not be able to exercise their right to vote and there may be nothing they can do if their ordinary shares are not voted as they requested.





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Fees and Expenses
ADS holders must pay:For:
$5.00 (or less) per 100 ADSsEach issuance of an ADS, including as a result of a distribution of AngloGold Ashanti ordinary shares or rights or other property

Each cancellation of an ADS, including if the Deposit Agreement terminates
$0.02 (or less) per ADSAny cash payment
Registration or transfer feesTransfer and registration of AngloGold Ashanti ordinary shares on the AngloGold Ashanti share register to or from the name of The Bank of New York Mellon or its agent when AngloGold Ashanti ordinary shares are deposited or withdrawn
$0.02 (or less) per ADS per yearDepositary services
Expenses of The Bank of New York MellonConversion of non-US currency to US dollars

Cable, telex and facsimile transmission expenses

Servicing the deposited securities
Taxes and other governmental charges that The Bank of New York Mellon or any Custodian has to pay on any ADS or AngloGold Ashanti ordinary share underlying an ADS, for example, stock transfer taxes, stamp duty or withholding taxesAs necessary
A fee equivalent to the fee that would have been payable if the securities distributed had been ordinary shares deposited for issuance of ADSsDistribution of securities distributed to holders of deposited securities that are distributed by The Bank of New York Mellon to ADS holders





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Payment of Taxes

Holders of ADSs will be responsible for any taxes or other governmental charges payable on their ADSs or on the deposited securities underlying their ADSs. The Bank of New York Mellon may refuse to transfer their ADSs or allow them to withdraw the deposited securities underlying their ADSs until such taxes or other charges are paid. It may apply payments owed to holders of ADSs or sell deposited securities underlying their ADSs to pay any taxes they owe, and they will remain liable for any deficiency. If The Bank of New York Mellon sells deposited securities, it will, if appropriate, reduce the number of ADSs to reflect the sale and pay to holders of ADSs any proceeds, or send to them any property remaining after it has paid the taxes.

Reclassifications
If AngloGold Ashanti:Then:
Reclassifies, splits up or consolidates any of the deposited securities;

The cash, ordinary shares or other securities received by The Bank of New York Mellon will become deposited securities. Each ADS will automatically represent its equal share of the new deposited securities.
Distributes securities on the ordinary shares that are not distributed to holders of ADSs; or

Recapitalises, reorganises, merges, liquidates, sells all or substantially all of AngloGold Ashanti’s assets, or takes any similar action.		The Bank of New York Mellon may, and will if AngloGold Ashanti asks it to, distribute some or all of the cash, AngloGold Ashanti ordinary shares or other securities it receives. It may also issue new ADSs or ask holders of ADSs to surrender their outstanding ADSs in exchange for new ADSs identifying the new deposited securities.

Amendment and Termination

AngloGold Ashanti may, for any reason, agree with The Bank of New York Mellon to amend the Deposit Agreement and the ADSs without the consent of holders. If the amendment increases fees or charges (except for taxes and other governmental charges or registration fees, cable, telex or facsimile transmission costs, delivery costs or other such expenses) or if the amendment prejudices an important right of ADS holders, it will only become effective 30 days after The Bank of New York Mellon notifies holders of ADSs of the amendment. At the time an amendment becomes effective, holders of ADSs are considered, by continuing to hold their ADSs, to agree to the amendment and to be bound by the ADSs and the agreement as amended.

The Bank of New York Mellon may terminate the Deposit Agreement by mailing notice of termination to ADS holders at least 30 days prior to the date fixed in the notice if AngloGold Ashanti asks it to do so. The Bank of New York Mellon may also terminate the Deposit Agreement if The Bank of New York Mellon has told AngloGold Ashanti that it would like to resign and AngloGold Ashanti has not appointed a new Depositary bank within 90 days. In both cases, The Bank of New York Mellon must notify holders of AngloGold Ashanti ADSs at least 30 days before termination.

After termination, The Bank of New York Mellon and its agents will be required to do only the following under the Deposit Agreement: collect distributions on the deposited securities, sell rights, and, upon surrender of ADSs, deliver AngloGold Ashanti ordinary shares and other deposited securities. Four months after the date of termination or later, The Bank of New York Mellon may sell any remaining deposited securities by public or private sale and will hold the proceeds of the sale, as well as any other cash it is holding under the Deposit Agreement, for the pro rata benefit of the ADS holders who have not surrendered their ADSs. It will not invest the money and will have no liability for interest. The Bank of New York Mellon’s only obligations will be to account for the proceeds of the sale and other cash. After termination, AngloGold Ashanti’s only obligations will be with respect to indemnification of, and payment of certain amounts to, The Bank of New York Mellon.

Limitations on Obligations and Liability to ADS Holders

The Deposit Agreement expressly limits AngloGold Ashanti’s obligations and the obligations of The Bank of New York Mellon, and limits AngloGold Ashanti’s liability and the liability of The Bank of New York Mellon. AngloGold Ashanti and The Bank of New York Mellon:
•are only obligated to take the actions specifically set forth in the Deposit Agreement without negligence or bad faith;
•are not liable if either of AngloGold Ashanti or The Bank of New York Mellon is prevented or delayed by law or circumstances beyond their control from performing their obligations under the Deposit Agreement;
•are not liable if either of AngloGold Ashanti or The Bank of New York Mellon exercises discretion permitted under the Deposit Agreement;
•are not liable for the inability of any holder of ADSs to benefit from any distribution on deposited securities that is not made available to holders of ADSs under the terms of the Deposit Agreement, or for any special, consequential or punitive damages for any breach of the terms of the Deposit Agreement;
•have no obligation to become involved in a lawsuit or other proceeding related to the ADSs or the Deposit Agreement on behalf of the holders of ADSs or on behalf of any other party;
•may rely on advice of or information from legal counsel, accountants, and any persons presenting AngloGold Ashanti’s ordinary shares for deposit, any registered holder or any other person believed by AngloGold Ashanti in good faith to be competent to give such advice or information; and



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•pursuant to the Deposit Agreement agree to indemnify each other under certain circumstances.

Requirements for Depositary Action

Before The Bank of New York Mellon will issue, transfer or register the transfer of an ADS, make a distribution on an ADS, or allow withdrawal of AngloGold Ashanti ordinary shares, The Bank of New York Mellon may require:
•payment of stock transfer or other taxes or other governmental charges and transfer or registration fees charged by third parties for the transfer of any ordinary shares or other deposited securities;
•production of satisfactory proof of the identity and genuineness of any signature or other information it deems necessary; and
•compliance with regulations it may establish, from time to time, consistent with the Deposit Agreement, including presentation of transfer documents.

The Bank of New York Mellon may refuse to deliver, transfer or register transfers of ADSs generally when the books of The Bank of New York Mellon or AngloGold Ashanti are closed, or at any time if either AngloGold Ashanti or The Bank of New York Mellon thinks it advisable to do so.

Holders of ADSs have the right to cancel their ADSs and withdraw the underlying ordinary shares at any time except:
•when temporary delays arise because: (1) either AngloGold Ashanti or The Bank of New York Mellon have closed AngloGold Ashanti’s transfer books; (2) the transfer of the ordinary shares is blocked in connection with voting at a general meeting of shareholders; or (3) AngloGold Ashanti is paying a dividend on the ordinary shares;
•when ADS holders seeking to withdraw the ordinary shares are liable for unpaid fees, taxes and similar charges; or
•when it is necessary to prohibit withdrawals in order to comply with any laws or governmental regulations that apply to ADSs or to the withdrawal of the ordinary shares or other deposited securities.

This right of withdrawal may not be limited by any other provision of the Deposit Agreement.

Pre-release of ADSs

In certain circumstances, subject to the provisions of the Deposit Agreement, The Bank of New York Mellon may deliver ADSs before deposit of the underlying ordinary shares. This is called a pre-release of the ADS.

The Bank of New York Mellon may also deliver AngloGold Ashanti ordinary shares upon cancellation of pre-released ADSs (even if the ADSs are cancelled before the pre-release transaction has been closed out). A pre-release is closed out as soon as the underlying AngloGold Ashanti ordinary shares are delivered to The Bank of New York Mellon. The Bank of New York Mellon may receive ADSs instead of ordinary shares to close out a pre-release.

The Bank of New York Mellon may pre-release ADSs only under the following conditions:
•before or at the time of the pre-release, the person to whom the pre-release is being made must represent to The Bank of New York Mellon in writing that it or its customer: (a) owns the ordinary shares or ADSs to be remitted, (b) assigns all beneficial rights, title and interest in such ADSs or ordinary shares, as the case may be, to The Bank of New York Mellon in its capacity as the Depositary and for the benefit of the ADS holders, and (c) will not take any action with respect to such ADSs or ordinary shares, as the case may be, that is consistent with the transfer of beneficial ownership (including, without the consent of The Bank of New York Mellon, disposing of such ADSs or ordinary shares, as the case may be) other than satisfaction of such pre-release;
•the pre-release must be fully collateralised with cash, US government securities, or other collateral that The Bank of New York Mellon considers appropriate; and
•The Bank of New York Mellon must be able to close out the pre-release on not more than five business days’ notice. Each pre-release will be subject to any further indemnities and credit regulations that The Bank of New York Mellon deems appropriate. The Bank of New York Mellon will normally limit the number of AngloGold Ashanti ordinary shares not deposited but represented by ADSs outstanding at any time as a result of pre-release so that they do not exceed 30 percent of the ordinary shares deposited, although The Bank of New York Mellon may disregard this limit from time to time, if it thinks it is appropriate to do so.

Direct Registration System

In the Deposit Agreement, all parties to the Deposit Agreement acknowledge that the DRS and Profile Modification System, or Profile, will apply to uncertificated ADSs upon acceptance thereof to DRS by The Depository Trust Company, also referred to as DTC. DRS is the system administered by DTC pursuant to which the Depositary may register the ownership of uncertificated ADSs, which ownership will be evidenced by periodic statements sent by the Depositary to the registered holders of uncertificated ADSs. Profile is a required feature of DRS which allows a DTC participant, claiming to act on behalf of a registered holder of ADSs, to direct the Depositary to register a transfer of those ADSs to DTC or its nominee and to deliver those ADSs to the DTC account of that DTC participant without receipt by the Depositary of prior authorisation from the ADS registered holder to register that transfer.




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In connection with and in accordance with the arrangements and procedures relating to DRS/Profile, the parties to the Deposit Agreement understand that The Bank of New York Mellon will not verify, determine or otherwise ascertain that the DTC participant which is claiming to be acting on behalf of an ADS holder in requesting registration of transfer and delivery described in the paragraph above has the actual authority to act on behalf of the ADS holder (notwithstanding any requirements under the Uniform Commercial Code). In the Deposit Agreement, the parties agree that The Bank of New York Mellon’s reliance on and compliance with instructions received by The Bank of New York Mellon through the DRS/Profile System and in accordance with the Deposit Agreement will not constitute negligence or bad faith on the part of The Bank of New York Mellon.

Shareholder Communications: Inspection of Register of Holders of ADSs

The Bank of New York Mellon will make available for inspection at its office all communications that it receives from AngloGold Ashanti as a holder of deposited securities that AngloGold Ashanti makes generally available to holders of deposited securities. The Bank of New York Mellon sends copies of those communications if requested by AngloGold Ashanti. ADS holders have a right to inspect the register of holders of ADSs, but not for the purpose of contacting those holders about a matter unrelated to AngloGold Ashanti’s business or the ADSs.




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10D.Exchange controls

Exchange controls and other limitations affecting security holders

The following is a general outline of South African exchange controls and such outline may not apply to former residents of South Africa. Investors should consult a professional advisor as to the exchange control implications of their particular investments.

South African law provides for exchange control regulations, which restrict the export of capital from South Africa. Exchange controls are administered by the Financial Surveillance Department of the South African Reserve Bank (SARB), in terms of the Exchange Control Regulations, and regulate transactions involving South African residents and non-residents, with the exception of transactions between South African residents and residents of the Common Monetary Area, which comprises the Kingdoms of Lesotho and Eswatini (formerly Swaziland) and the Republic of Namibia. The purpose of exchange controls is to mitigate the decline of foreign capital reserves in South Africa.

The Government of South Africa has, however, committed itself to relaxing exchange controls gradually and significant relaxation has occurred in recent years.

The comments below relate, in general, to exchange controls in place at the date of this annual report.

Investments in South African companies

Acquisitions of shares or assets of South African companies by non-South African purchasers are generally subject to review and approval by the SARB, particularly where the consideration is payable in a form other than cash. In this regard, the SARB will give approval where it is persuaded, inter alia, that the consideration payable for the acquisition of the shares or assets is an arm’s-length consideration and that such acquisition offers benefits to South Africa. In addition, where shares in a South African company are acquired by a non-resident, the share certificates issued to the non-resident shareholder must be endorsed “non-resident” by the SARB (or an Authorised Dealer).

Dividends

Dividends declared to foreign stockholders in public companies listed on the Johannesburg Stock Exchange (JSE) are not subject to the approval of the SARB, provided that the shares in respect of which the dividends are declared have been endorsed “non-resident” by the SARB or an Authorised Dealer at the time of acquisition. Dividends are freely transferable to foreign stockholders from both trading and non-trading profits earned in South Africa by public listed companies.

Voting rights

There are no limitations imposed by South African law, including South African exchange controls, or by the Memorandum of Incorporation of AngloGold Ashanti on the rights of non-South African shareholders to vote their ordinary shares.

Overseas financing, interest and investments

Interest on foreign loans, if paid from cash generated from operations in South Africa, may be remittable abroad, provided that the loans and the payment of the relevant interest in respect of such loans have received prior SARB approval.

AngloGold Ashanti and its South African subsidiaries require SARB approval to raise debt from and repay debt to non-residents of the Common Monetary Area, mainly in respect of the terms of repayment applicable to such loans, as well as any guarantees that may be provided in respect of such loans, by AngloGold Ashanti or its South African subsidiaries.

Debt raised outside the Common Monetary Area by AngloGold Ashanti’s non-South African subsidiaries is not restricted under South African exchange control regulations and can be used for investment outside the Common Monetary Area, subject to the relevant conditions imposed by the SARB in connection with such investment, the establishing of such a non-South African subsidiary or in raising the debt by such subsidiary. For example, AngloGold Ashanti and its South African subsidiaries would require SARB approval in order for AngloGold Ashanti and/or its South African subsidiaries to provide guarantees for the obligations of any of its non-South African subsidiaries. In addition, funds obtained from non-residents of the Common Monetary Area and debt raised outside the Common Monetary Area by AngloGold Ashanti’s non-South African subsidiaries must be repaid or serviced by AngloGold Ashanti’s foreign subsidiaries unless otherwise approved by the SARB.

A listing by a South African company on any stock exchange other than the JSE in connection with raising capital requires permission from the SARB.

Under current exchange control regulations, offshore investments by AngloGold Ashanti and its subsidiaries require the approval of the SARB. Subject to such prior approval of the SARB, there is no limit on the amount of capital that may be invested offshore.



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10E.Taxation

South African taxation

General
The following summary summarises the South African tax consequences of the ownership and disposition of shares by South African residents or ADSs by a US holder (as defined below) and is not intended to constitute tax advice. This summary is based upon current South African tax law and South African Revenue Service (SARS) practice, the US/SA Double Taxation Treaty, and in part beneficiallyupon representations of the Depositary, and assumes that each obligation provided for United States persons.in, or otherwise contemplated by, a Deposit Agreement and any related agreement will be performed in accordance with its respective terms.


At 19 March 2020,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 152,540,560shares or ADSs is effectively connected with a permanent establishment in South Africa through which such US holder carries on business activities or, 37in the case of an individual, with a fixed base situated therein, or who is otherwise not entitled to the full benefits under the US/SA Double Taxation Treaty.

The statements of law set forth below are subject to any changes (which may be applied retroactively) in South African law or in the interpretation thereof by SARS, or in the US/SA Double Taxation Treaty, occurring after the date hereof. It should be expressly noted that South African tax law does not specifically address the treatment of ADSs. However, it is reasonable to assume (although no assurance can be made) that the tax treatment of US holders of shares is also applicable to US holders of ADSs.

Holders are strongly urged to consult their own tax advisors as to the consequences under South African, US federal, state and local, and other applicable laws, of the ownership and disposition of shares or ADSs.

Taxation of dividends

South Africa currently imposes a Dividend Withholding Tax on Companies (dividends tax) at a rate of 20 percent on the net amount of the dividend declared and paid by a resident company, other than a Headquarter Company.

The dividends tax is generally imposed on the beneficial owner of the dividends. The dividends tax is subject to domestic exemptions or relief in terms of an applicable double taxation treaty. The application of such domestic exemptions or relief in terms of an applicable double taxation treaty is subject to the making of certain declarations and undertakings by the beneficial owner of the dividends to the regulated intermediary making payment of the dividend. In terms of the latest amendments to the tax provisions, the declaration and undertaking entitling the beneficial owner to a reduced dividend withholding tax rate must be renewed every five years, subject to certain exemptions.

The dividends tax could be reduced to a lower rate under an applicable double tax treaty, if all requirements are met. In the case of dividends paid to a US holder with respect to shares, the US/SA Double Taxation Treaty would generally limit the dividends tax rate to five percent of total issued ordinarythe gross amount of the dividends if a corporate US holder holds directly at least 10 percent of the voting stock of the Company, provided that the applicable declaration and undertaking are given by the beneficial owner that the reduced rate applies. In all other cases, the maximum tax rate under the US/SA Double Taxation Treaty is 15 percent of the gross amount of the dividend. Different rules may apply if the beneficial owner of the dividends is a US resident who carries on business in South Africa through a permanent establishment situated in South Africa, or performs in South Africa services from a permanent establishment situated in South Africa, and the dividends are attributable to such permanent establishment or fixed base. Moreover, if the dividends tax rate is reduced under the auspices of an applicable double tax treaty, certain South African compliance requirements must be met in order to obtain the double tax treaty relief, amongst others the completion of a declaration and undertaking by the beneficial owners in favour of the Company and/or the relevant regulated intermediary. In terms of the latest tax provisions the declaration and undertaking need to be renewed at least every five years unless the regulated intermediary is subject to the provisions of inter alia the US Foreign Account Tax Compliance legislation.

A dividend is currently defined as any amount transferred or applied by a company that is a resident (including the Company) for the benefit or on behalf of any person in respect of any share in that company, whether that amount is transferred or applied by way of a distribution made by the company, or as consideration for the acquisition of any share in that company. The definition of a dividend specifically excludes any amount transferred or applied by the company that results in a reduction of so-called contributed tax capital (CTC) of the relevant class of shares, or constitutes shares in the company or constitutes an acquisition by the company of its own securities by way of a general repurchase of securities in terms of the JSE Listings Requirements. A distinction is thus made between a general repurchase of securities and a specific repurchase of securities. If the company embarks upon a general repurchase of securities, the proceeds of such repurchase would not constitute a dividend whereas, in the case of a specific repurchase of securities where the purchase price is not funded out of CTC of that class of shares, the proceeds would likely constitute a dividend.

The concept of CTC effectively means the sum of the stated capital or share capital were issued and outstandingshare premium of a company that existed on 1 January 2011, excluding any transfers from reserves to the share premium account or stated capital account, plus



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proceeds from the issue of any new shares by a company, less the amount of CTC that has been returned to shareholders. Any application of CTC is limited to the holders of a class of shares. In addition, a distribution of CTC attributable to a specific class must be made proportionately to the number of shares held by a shareholder in a specific class. The definition of CTC is subject to various provisos.

For dividends tax purposes a dividend is defined as any dividend as indicated above that is paid by a company that is a resident or paid by a foreign company if the share in respect of which that foreign dividend is paid is a listed share and heldto the extent that the foreign dividend does not constitute a distribution of an asset in kind.

Dividends are generally exempt from the payment of income tax, subject to various exclusions.


Taxation of capital gains on record by 2,174 registered holders.sale or other disposition


InsofarSouth African residents are taxed on their worldwide income, while non-residents are only taxed on South African sourced income (subject to the provisions of any relevant double taxation agreement).

Capital gains tax is not a separate tax to income tax; instead, a percentile of the taxpayer’s net capital gain (that is the taxable capital gain) is included in its taxable income on which it is taxed at the income tax rate.

Non-residents are only subject to the South African capital gains tax provisions in respect of the disposal of any immovable property (such as land and buildings or mining rights) or any interest or right of whatever nature to or in immovable property situated in South Africa, or any asset of a permanent establishment through which that non-resident is known to AngloGold Ashanti, there was no person who,carrying on a trade in South Africa. In the instance of a shareholder holding shares in a South African company, the ‘interest in immovable property’ requirements are met if 80 percent or more of the market value of the shares is directly or indirectly jointlyattributable to South African immovable property held on capital account, and that shareholder (whether alone or severally, exercisedtogether with any connected person in relation to that person), directly or could exercise control over AngloGold Ashanti, norindirectly, holds at least 20 percent of the equity shares of that South African company.

Gains realised on the sale of ordinary shares are deemed to be of a capital nature and subject to capital gains tax provided the ordinary shares have been held for a continuous period of at least three years. This deeming provision is AngloGold Ashanti awareapplicable to “equity shares” as defined in section 1 of the South African Income Tax Act, No. 58 of 1962 (the “SA Income Tax Act”), and may not extend to preference shares or ADSs where the preference shares or ADSs do not constitute “equity shares” as so defined.

The meaning of the word “resident” is different for individuals and corporations and is governed by the Act and by the Treaty. In the event of conflict, the Treaty, which contains a tie breaker clause or mechanism to determine residency if a holder is resident in both countries, will prevail. In terms of the Act and Treaty, a US resident holder of shares or ADSs will not be subject to capital gains tax on the disposal of securities held as capital assets unless the securities are linked to a permanent establishment conducted in South Africa or constitute an interest in immovable property as indicated above. In contrast, gains on the disposal of securities which are not capital in nature are usually subject to income tax. Any asset held as a long-term investment will be considered a capital asset and subject to capital gains tax on the disposal of such an asset. Any asset acquired for purposes of resale as part of a profit-making scheme will not be considered a capital asset and will be subject to income tax on the disposal of such an asset. However, even in the latter case, a US resident holder will not be subject to income tax, unless the US resident holder carries on business in South Africa through a permanent establishment situated therein.

Securities transfer tax (STT)

No securities transfer tax, or STT, is payable in South Africa with respect to the issue of a security, but STT is payable upon transfer, redemption or cancellation thereof.

STT on transfers of securities is charged at a rate of 0.25 percent on the ‘taxable amount’ in respect of the ‘transfer’ of every security issued by a company incorporated in South Africa, or a company incorporated outside South Africa, but listed on an exchange in South Africa, subject to certain exemptions.

The word ‘transfer’ is broadly defined and includes the transfer, sale, assignment or cession or disposal in any arrangementsother manner of a security which mightresults in a change in beneficial ownership. The cancellation or redemption of a security is also regarded as a ‘transfer’ unless the company is being liquidated. However, the transfer of a security that does not result in a change in controlbeneficial ownership is not regarded as a ‘transfer’ for STT purposes. A security is also defined as a depositary receipt in a company. Accordingly, STT is payable on the transfer of a depositary receipt issued by a company, including specifically the ADSs issued by the Company. Generally, the central securities Depositary that has been accepted as a participant in terms of the Financial Markets Act, is liable for the payment of the STT, on the basis that it is recoverable from the person to whom it is transferred.

STT is levied on the ‘taxable amount’ of a security. The taxable amount of a listed security is the greater of the consideration for the security declared by the transferee or the closing price of that security as traded on the stock exchange concerned. The person to whom the listed security is transferred is liable for payment of the STT, and such tax must be paid through the member or the participant holding the security in custody, or where the listed security is not held in custody, the company that issued the



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listed security. The tax so payable may be recovered from the person to whom the security is transferred. The tax must be paid by the fourteenth day of the month following the month during which the transfer occurred.

Withholding tax on interest

Generally, a 15 percent withholding tax may apply to the payments of interest. Under the US/SA Double Taxation Treaty, interest derived and beneficially owned by a resident of the United States will be taxable only in the United States (and therefore not subject to interest withholding tax in South Africa), subject to certain exclusions.

Value-Added Tax

The issue or transfer of shares is not a taxable supply for value-added tax (“VAT”) purposes. However, fees charged by independent service providers would be subject to VAT at the standard rate of 15%.

United States Taxation

General
The following is a general summary of certain material US federal income tax consequences of the ownership and disposition of shares or ADSs to a US holder (as defined below) that holds its shares or ADSs as a capital asset. With respect to the following, references to shares includes references to ADSs unless the context indicates otherwise. This summary does not address any aspect of US federal gift or estate tax, or the state, local or non-US tax consequences to a US holder of shares. This summary is based on US tax laws including the Internal Revenue Code of 1986, as amended (the Code), Treasury regulations promulgated thereunder, rulings, judicial decisions, administrative pronouncements, and the US/SA Double Taxation Treaty, all as currently in effect as of the date of this annual report, and all of which are subject to change or changes in interpretation, possibly with retroactive effect. In addition, this summary is based in part upon the representations of the Depositary and the assumption that each obligation in the Deposit Agreement relating to the ADSs and any related agreement will be performed in accordance with its terms.

This summary does not address all aspects of US federal income taxation that may apply to holders that are subject to special tax rules, including US expatriates, non-resident aliens present in the United States for at least 183 days during the calendar year, insurance companies, tax-exempt entities, banks, certain financial institutions, persons subject to the alternative minimum tax, regulated investment companies, securities broker-dealers, traders in securities who elect to apply a mark-to-market method of accounting, investors that own (directly, indirectly or by attribution) 10 percent or more of the outstanding share capital or voting stock of AngloGold Ashanti.Ashanti, partnerships or other entities treated as partnerships for US federal income tax purposes or persons holding shares through such entities, persons holding their shares as part of a straddle, hedging or conversion transaction, persons who acquired their shares pursuant to the exercise of employee stock options or otherwise as compensation, or persons whose functional currency is not the US dollar. Such holders may be subject to US federal income tax consequences different from those set forth below.


7B.    RELATED PARTY TRANSACTIONSAs used herein, the term “US holder” means a beneficial owner of shares that is: (a) a citizen or individual resident of the United States for US federal income tax purposes; (b) a corporation (or other entity taxable as a corporation for US federal income tax purposes) created or organised in or under the laws of the United States, any state thereof or the District of Columbia; (c) an estate the income of which is subject to US federal income taxation regardless of its source; or (d) a trust if (i) a court within the United States can exercise primary supervision over the administration of the trust and one or more US persons are authorised to control all substantial decisions of the trust or (ii) it has a valid election in effect under applicable Treasury regulations to be treated as a United States person.


If a partnership (including for this purpose any entity treated as a partnership for US federal income tax purposes) holds shares, the tax treatment of a partner generally will depend upon the status of the partner and the activities of the partnership. If a US holder is a partner in a partnership that holds shares, the holder is urged to consult its own tax advisor regarding the specific tax consequences of the ownership and disposition of the shares.

US holders should consult their own tax advisors regarding the specific South African and US federal, state and local tax consequences of owning and disposing of shares in light of their particular circumstances as well as any consequences arising under the laws of any other taxing jurisdiction. In particular, US holders are urged to consult their own tax advisors regarding whether they are eligible for benefits under the US/SA Double Taxation Treaty.

For US federal income tax purposes, a US holder of ADSs should generally be treated as owning the underlying shares represented by those ADSs. Therefore, deposits or withdrawals by a US holder of shares for ADSs or of ADSs for shares will not be subject to US federal income tax. The following discussion (except where otherwise expressly noted) applies equally to US holders of shares and US holders of ADSs.

▪Taxation of dividends
The Company hadgross amount of any distribution (including the amount of any South African withholding tax thereon) paid to a US holder by AngloGold Ashanti generally will be taxable as dividend income to the US holder for US federal income tax purposes on the date



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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



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currency gain or loss (taxable as ordinary income or loss) equal to the difference (if any) between the US dollar value of the amount received based on the exchange rates in effect on the date of sale or other disposition and the settlement date. If an accrual basis US holder makes either of the elections described above, it must be applied consistently from year to year and cannot be revoked without the consent of the Internal Revenue Services (IRS).

Foreign currency received on the sale or other disposition of a share will have a tax basis equal to its US dollar value on the settlement date. Any gain or loss recognised on a sale or other disposition of foreign currency (including its use to purchase shares or upon exchange for US dollars) will be US source ordinary income or loss.

▪Passive foreign investment company considerations
A foreign corporation will be classified a passive foreign investment company (PFIC) for any taxable year if at least 75 percent of its gross income consists of passive income (such as dividends, interest, rents or royalties (other than rents or royalties derived in the active conduct of a trade or business and received from an unrelated person), or gains on the disposition of certain minority interests), or at least 50 percent of the average value of its assets consists of assets that produce, or are held for the production of, passive income. AngloGold Ashanti believes that it was not treated as a PFIC for the taxable year ended 31 December 2021 or any prior taxable years and does not expect to become a PFIC in the foreseeable future. If AngloGold Ashanti were characterised as a PFIC for any taxable year, a US holder would suffer adverse tax consequences with respect to that taxable year and all future years during which it holds AngloGold Ashanti ordinary shares.

These consequences may include having gain realised on the disposition of shares treated as ordinary income rather than capital gain and being subject to punitive interest charges on the receipt of certain dividends and on the proceeds of the sale or other disposition of the shares. Furthermore, dividends paid by AngloGold Ashanti would not be “qualified dividend income” and would be taxed at the higher rates applicable to other items of ordinary income. US holders should consult their own tax advisors regarding the potential application of the PFIC rules to their ownership of the shares.

▪US information reporting and backup withholding
In general, dividend payments made to a US holder and proceeds paid from the sale, exchange, or other disposition of shares may be subject to information reporting to the IRS and possible backup withholding. US federal backup withholding generally is imposed at a current rate of 24 percent on specified payments including dividends and gross sale proceeds to persons who fail to furnish required information. Backup withholding will not apply to a US holder who furnishes a correct taxpayer identification number and makes any other required certification or who is otherwise exempt from backup withholding. US persons who are required to establish their exempt status generally must provide IRS Form W-9 (Request for Taxpayer Identification Number and Certification). Backup withholding is not an additional tax. Amounts withheld as backup withholding may be credited against a holder’s US federal income tax liability. A holder may obtain a refund of any excess amounts withheld under the backup withholding rules by filing the appropriate claim for refund with the IRS and furnishing any required information.

▪Information with respect to foreign financial assets
Individuals that own “specified foreign financial assets” with an aggregate value in excess of $50,000 are generally required to file information reports with respect to such assets with their U.S. federal income tax returns. Depending on the individual’s circumstances, higher threshold amounts may apply. “Specified foreign financial assets” include any financial accounts maintained by foreign financial institutions, as well as any of the following, but only if they are not held in accounts maintained by financial institutions: (i) stocks and securities issued by foreign persons, (ii) financial instruments and contracts held for investment that have foreign issuers or counterparties and (iii) interests in foreign entities. Therefore, the shares may be treated as specified foreign financial assets. In such cases, certain US holders may be subject to this information reporting regime and be required to file IRS Form 8938 listing these assets with their U.S. federal income tax returns. Failure to file information reports may subject a US holder to penalties. US holders are urged to consult their own tax advisors regarding their obligations to file information reports with respect to the shares.







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10F.    DIVIDENDS AND PAYING AGENTS

Not applicable.






10G.    STATEMENT BY EXPERTS

Not applicable.






10H.Documents on Display

AngloGold Ashanti files annual reports on Form 20-F and reports on Form 6-K with the SEC. You may access this information at the SEC’s home page (http://www.sec.gov). Copies of the documents referred to herein may be inspected at AngloGold Ashanti’s offices by contacting AngloGold Ashanti at 112 Oxford Road, Houghton Estate, Johannesburg, 2198 (Private Bag X 20, Rosebank, 2196) South Africa, Attention: Company Secretary, telephone number: +27 11 637 6000.

No material on the AngloGold Ashanti website forms any part of, or is incorporated by reference into, this annual report on Form 20-F. References herein to the company’s website shall not be deemed to cause such incorporation.







10I.    SUBSIDIARY INFORMATION

Not applicable.



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ITEM 11: QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

TREASURY POLICY

Risk management activities within the group are the ultimate responsibility of the board. The Chief Financial Officer is responsible to the board for the design, implementation and monitoring of the risk management plan. The Audit and Risk Committee is responsible for overseeing risk management plans and systems, as well as financial risks which include a review of treasury activities and exposure to the group’s counterparties.

Under the financial and risk management policy, hedges may be put in place once approved by the Board, using approved instruments over the group’s planned gold production and resultant gold sales and currency exposures. The financial and risk management policy sets trading limits for the various levels of treasury management from dealer, through treasurer, executive management team and board members.

The financial risk management activities objectives of the group are as follows:
•Safeguarding the group’s core earnings stream from its major assets through the effective control and management of gold and other commodity price risk, foreign exchange risk and interest rate risk;
•Effective and efficient usage of credit facilities in both the short- and long-term through the adoption of reliable liquidity management planning and procedures;
•Ensuring that investment and hedging transactions are undertaken with creditworthy counterparts; and
•Ensuring that all contracts and agreements related partiesto financial risk management activities are co-ordinated and consistent throughout the group and comply where necessary with all relevant regulatory and statutory requirements.

Under the financial and risk management policy, treasury reports are produced at the following minimum intervals for review by management and the board of directors:
•DailyTreasury Manager
•WeeklyTreasurer
•MonthlyTreasurer
•QuarterlyAudit and Risk Committee and Board of Directors

The Treasury Risk Analyst is responsible for monitoring all reports for completeness and accuracy which are reviewed by the Treasurer.

At AngloGold Ashanti, all front office (dealing), middle office (risk reporting), back office (deal confirmations) and payment (treasury settlements) activities are segregated. All treasury transactions are captured on a third party developed treasury and risk management system that is widely used in corporate treasuries. The group internal audit function conducts regular and ad-hoc reviews of the activities of treasury and the group’s treasury system.

Gold price risk management activities

In the normal course of its operations, the group is exposed to gold and other commodity price, currency, interest rate, equity price, liquidity and non-performance risk, which includes credit risk. The group is also exposed to certain by-product commodity price risk. In order to manage these risks, the group may enter into transactions which make use of derivatives. The group has developed a risk management process to facilitate, control and monitor these risks.

Gold price risk arises from the risk of an adverse effect of current or future earnings resulting from fluctuations in the price of gold. The group eliminated its hedge book during 2010 and has since had full exposure to the spot price of gold.

As at 31 December 2021, the group had no commitments against future production potentially settled in cash.

Foreign exchange price risk protection agreements

The group, from time to time, may enter into currency forward exchange and currency option contracts to hedge certain anticipated transactions denominated in foreign currencies. The objective of the group’s foreign currency hedging activities is to protect the group from the risk that the eventual cash flows resulting from transactions denominated in US dollars will be adversely affected by changes in exchange rates.

As at 31 December 2021 and 2020, the group had no open forward exchange or currency option contracts in its currency hedge position.







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IFRS guidance on derivatives and hedging requires that derivative instruments be accounted for as follows:
•Contracts that meet the criteria for hedge accounting are designated as hedging instruments, hedging the variability of forecasted cash flows from the sale of production into the spot market and from capital expenditure denominated in a foreign currency and are classified as cash flow hedges. Cash flow hedge losses pertaining to capital expenditure of $1 million as at 31 December 2021 (2020: $1 million) are expected to be reclassified from accumulated other comprehensive income and recognised as an adjustment to depreciation expense over the life of the Serra Grande mine.
•All other derivatives are measured at their estimated fair value, with the changes in estimated fair value at each reporting date reported as gains or losses on derivatives in earnings in the period in which they occur.

Cash flows related to these instruments designated as qualifying hedges are reflected in the consolidated statement of cash flows in the same category as the cash flow from the items being hedged. Accordingly, cash flows relating to the settlement of forward sale commodity derivatives contracts hedging the forecasted sale of production into the spot market will be reflected upon settlement as a component of operating cash flows.

Interest rate and liquidity risk

Fluctuations in interest rates impact interest paid and received on the short-term cash investments and financing activities, giving rise to interest rate risk.

In the ordinary course of business, the group receives cash from the proceeds of its gold sales and is required to fund its working capital requirements. This cash is managed to ensure that surplus funds are invested in a manner to achieve market related returns while minimising risks.

The group is able to actively source financing at competitive rates. The counterparts are financial and banking institutions and their credit ratings are regularly monitored by the group.

Cash and loans advanced maturity profile
20212020
Maturity dateCurrencyFixed rate
investment
amount
(million)		Effective
rate %		Floating rate
investment
amount
(million)		Effective
rate %		Fixed rate
investment
amount
(million)		Effective
rate %		Floating rate
investment
amount
(million)		Effective
rate %
All less than one year$1 — 301 0.10 — 572 0.15 
ZAR1,337 3.54 — — 2,611 3.30 29 2.00 
AUD— 72 — — 50 — 
BRL— 106 4.27 — 32 1.90 
ARS13,256 34.00 — 6,679 34.00 4,820 30.00 
CAD— 353 0.19 

Borrowings maturity profile
Within one yearBetween
One and two years		Between Two
and five years		After five yearsTotal
CurrencyBorrowings
amount
(million)		Effective
rate
%		Borrowings
amount
(million)		Effective
rate
%		Borrowings
amount
(million)		Effective
rate
%		Borrowings
amount
(million)		Effective
rate
%		Borrowings amount (million)
$51 7.4 — — 63 7.0 1,717 4.1 1,831 
AUD— — 43 1.5 — — — — 43 
BRL1 5.7 — — — — — — 1 
TZS516 12.5 — — 107,163 12.5 — — 107,679 

The table above is based on the borrowings as at 31 December 2021 including borrowing cost and accrued interest but excludes any fair value adjustments.




304

Interest rate risk
Fixed for less than one yearFixed for between one and three yearsFixed for greater than three years
CurrencyBorrowings
amount
(million)		Effective
rate
%		Borrowings
amount
(million)		Effective
rate
%		Borrowings
amount
(million)		Effective
rate
%		Total
Borrowings
amount
(million)
$51 7.4 63 7.0 1,717 4.1 1,831 
AUD— — 43 1.5 — — 43 
BRL1 5.7 — — — — 1 
TZS516 12.5 107,163 12.5— — 107,679 

The table above is based on the borrowings as at 31 December 2021 including borrowing cost and accrued interest but excludes any fair value adjustments.

Non-performance risk

Realisation of contracts is dependent upon counterparts’ performance. The group has not obtained collateral or other security to support the financial instruments subject to non-performance risk, but the credit standing of counterparts was monitored on a regular basis throughout the year. The group spreads its business over a number of financial and banking institutions to minimise the risk of potential non-performance. Furthermore, the approval process of counterparts and the limits applied to each counterpart were monitored by the board of directors. Where possible, ISDA netting agreements were put in place.

The combined maximum credit risk exposure at balance sheet date amounts to $1,300 million in 2021 for financial assets (2020: $1,500 million) and nil million for financial guarantees (2020: nil). Credit risk exposure netted by open derivative positions with counterparts was nil (2020: nil). No set-off is applied to balance sheet amounts due to the different maturity profiles of assets and liabilities.

Fair value of financial instruments

The estimated fair values of financial instruments are determined at discrete points in time based on relevant market information. The estimated fair values of the group’s financial instruments, as measured at 31 December, are as follows (assets (liabilities)):
20212020
Carrying
Amount		Fair
value		Carrying
Amount		Fair
value
(millions)$$$$
Cash and cash equivalents1,154 1,154 1,330 1,330 
Restricted cash58 58 73 73 
Deferred compensation asset25 25 28 28 
Short-term borrowings(51)(51)(142)(142)
Long-term borrowings(1,858)(1,960)(1,789)(1,989)
Listed investments - FVTOCI116 116 186 186 
Listed and unlisted investments1 1 2 2 

The following methods and assumptions were used to estimate the fair value of each class of financial instrument:

Cash restricted for use, cash and cash equivalents

The carrying amounts approximate fair value.

Trade and other receivables and trade and other payables

The carrying amounts approximate fair value because of the short-term duration of these instruments, except for the deferred compensation asset which is carried at fair value in level 3 of the fair value hierarchy.

Other investments

Listed equity investments classified as FVTOCI and FVTPL are carried at fair value in level 1 of the fair value hierarchy.






305

Borrowings

The interest rate on borrowings is reset on a short-term floating rate basis, and accordingly the carrying amount is considered to approximate fair value.

Derivatives

The fair values of volatility-based instruments (i.e. options) are estimated based on market prices, volatilities, credit risk and interest rates for the periods under review.

Gain (loss) on non-hedge derivatives and other commodity contracts recognised
Year ended 31 December
20212020
(millions)$$
Other commodity contracts(1)
— (19)

(1)    Excluding the commodity contracts transferred to held for sale liabilities in 2020.

Foreign exchange risk

Foreign exchange risk arises on financial instruments that are denominated in a foreign currency.

The following table discloses the approximate foreign exchange risk sensitivities of borrowings at 31 December 2021 (actual changes in the timing and amount of the following variables may differ from the assumed changes below).
2021
Change in
exchange rate
Change in
borrowings
Total
$M
Debt
TZS denominated (TZS/$)Spot (+TZS250)(5)
AUD denominated (AUD/$)Spot (+AUD0.1)(2)
2021
Change in
exchange rate		Change in
borrowings
Total
$M
Debt
TZS denominated (TZS/$)Spot (-TZS250)6 
AUD denominated (AUD/$)Spot (-AUD0.1)2 




306

ITEM 12:    DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES


12A.    DEBT SECURITIES

Not applicable


12B.    WARRANTS AND RIGHTS

Not applicable


12C.    OTHER SECURITIES

Not applicable


12D.    AMERICAN DEPOSITARY SHARES


12D.3.    DEPOSITARY FEES AND CHARGES


AngloGold Ashanti’s American Depositary Shares, or ADSs, each representing one of AngloGold Ashanti’s ordinary shares, are traded on the New York Stock Exchange under the symbol “AU.” The ADSs are evidenced by American Depositary Receipts, or ADRs, issued by The Bank of New York Mellon, as Depositary under the Amended and Restated Deposit Agreement dated as of 3 June 2008, among AngloGold Ashanti Limited, The Bank of New York Mellon and owners and beneficial owners of from time to time of ADRs. ADS holders may have to pay the following service fees to the Depositary:

ServiceFees (USD)
Issuance of ADSsUp to 5 cents per ADS(1)
Cancellation of ADSsUp to 5 cents per ADS(1)
Distribution of cash dividends or other cash distributionsUp to 2 cents per ADS(2)
Distribution of securities pursuant to
(i) stock dividends, free stock distributions or
(ii) exercises of rights to purchase additional ADSsUp to 5 cents per ADS(2)
ADR Depositary Services feeUp to 2 cents per year(2)
(1)These fees are typically paid to the Depositary by the brokers on behalf of their clients receiving the newly-issued ADSs from the Depositary and by the brokers on behalf of their clients delivering the ADSs to the Depositary for cancellation. The brokers in turn charge these transaction fees to their clients.
(2)In practice, the Depositary has not collected these fees. If collected, such fees are offset against the related distribution made to the ADR holder.

In addition, ADS holders are responsible for certain fees and expenses incurred by the Depositary on their behalf including (1) taxes and other governmental charges, (2) such registration fees as may from time to time be in effect for the registration of transfers of ordinary shares generally on the share register and applicable to transfers of ordinary shares to the name of the Depositary or its nominee or the Custodian or its nominee on the making of deposits or withdrawals, and (3) such cable, telex and facsimile transmission expenses as are expressly incurred by the Depositary in the conversion of foreign currency.

Fees and other charges payable by the Depositary, any of the Depositary’s agents, including the Custodian, or the agents of the Depositary’s agents in connection with the servicing of Shares or other Deposited Securities, shall be collected at the sole discretion of the Depositary by billing such owners for such charge or by deducting such charge from one or more cash dividends or other cash distributions.

For further information, refer to “Item 10C: Material Contracts—The Deposit Agreement”.

12D.4.    DEPOSITARY PAYMENTS FOR 2021

For the year ended 31 December 2021, The Bank of New York Mellon, as Depositary, reimbursed AngloGold Ashanti an amount of $1,083,405 (2020: $1,057,722) mainly for investor relations related expenses.





307

PART II
ITEM 13:    DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES

None.



308

ITEM 14:    MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS

None.




309

ITEM 15: CONTROLS AND PROCEDURES


(a)    Disclosure Controls and Procedures: As of 31 December 2021, (the “Evaluation Date”), the company, under the supervision and with the participation of its management, including the chief executive officer and chief financial officer has evaluated the effectiveness of the company’s disclosure controls and procedures (as defined in Rules 13a - 15(e) and 15d - 15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)). Based on such evaluation, the chief executive officer and chief financial officer have concluded that, as of the Evaluation Date, the company’s disclosure controls and procedures are effective, and are reasonably designed to ensure that information required to be disclosed by the company in reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the Securities and Exchange Commission. These disclosure controls and procedures include without limitation, controls and procedures designed to ensure that information required to be disclosed by the company in reports that it files or submits under the Exchange Act is accumulated and communicated to the company’s management, including its chief executive officer and chief financial officer, as appropriate to allow timely decisions regarding disclosure.

(b)    Management’s Annual Report on Internal Control over Financial Reporting: Management is responsible for establishing and maintaining adequate internal control over financial reporting for the company, as defined in the Exchange Act Rule 13a - 15(f) and 15d -15(f). The company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of the company’s financial statements for external purposes in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board.

The company’s internal control over financial reporting includes those policies and procedures that:
•Pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect transactions and dispositions of the assets of the company;
•Provide reasonable assurance that the transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of management and the Directors of the company; and
•Provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Projections of any evaluation of effectiveness to future periods is subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with policies and procedures may deteriorate.

The company’s management assessed the effectiveness of the company’s internal control over financial reporting as of the Evaluation Date. In making this assessment, management used the criteria set forth by the Committee of Sponsoring Organisations of the Treadway Commission (COSO) in Internal Control - Integrated Framework and related illustrative documents released on 14 May 2013. Based on this assessment, and using those criteria, management concluded that the company’s internal control over financial reporting was effective as of the Evaluation Date.

(c)    Changes in Internal Control over Financial Reporting: The Company maintains a system of internal control over financial reporting that is designed to provide reasonable assurance that its books and records accurately reflect transactions and that established policies and procedures are followed.

There have been no changes in the company’s internal control over financial reporting identified in connection with the evaluation required by paragraph (d) of Exchange Act Rule 13(a) - 15 during the year ended 31 December 2019:2021 that have materially affected, or are reasonably likely to materially affect, the company’s internal control over financial reporting.

At 31 December2019
(in million)Purchases from related party
$
Purchases of goods and services from related parties
Rand Refinery (Pty) Limited8
Margaret Water Company4
Société d’Exploitation des Mines d’Or de Sadiola S.A.1
13
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 December2019
(in million)
Sales and
services
rendered to
related parties


$
Sales and services rendered to related parties
Rand Refinery (Pty) Limited19
Mali joint ventures5
Gramalote2
26


/s/ KC Ramon
As at 31 December 2019 the outstanding balances arising from the sale of goods and services due by associates and joint ventures is $20 million.Kandimathie Christine Ramon

Chief Financial Officer
As at 31 December 2019 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 Córrego do Sítio Mineração SA: SA and Mineração Serra Grande S.A. (MSG): AngloGold Ashanti’s subsidiaries in Brazil, including AngloGold Ashanti Córrego do SítioAGA Mineração SA (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 $25$45 million.


•Colombian Tax Office (DIAN) v. 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 $125 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 by the Administrative CourtThe company’s other lawsuits with respect to theits 2010, income tax litigation is still pending.

In January 2018, AGAC received notice from the DIAN that it also disagreed with AGAC’s 2013 income and equity tax returns on the same basis as the 2010 and 2011 returns, calculating additional tax, along with penalties and interest, of $9 million. On 13 March 2020, AGAC filed a lawsuit before the Administrative Court of Cundinamarca challenging the DIAN’s 2013 assessment. The matter is currently pending. In May 2019, AGAC received notice from the DIAN that it also disagreed with AGAC’s 2014 income and equity tax returns onare still pending before the same basis as the 2010, 2011 and 2013 returns, calculating additional tax, along with penalties and interest,Administrative Court of $7 million.Cundinamarca.


In FebruarySince 2019, Gramalote also received noticevarious 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, calculating additional tax, along with penalties and interest, of $9 million which was confirmed in itsreturns. The official assessment issued on 24 January 2020. Gramalote has until 10 June 2020 to file a lawsuit to challenge this official assessment before the administrative courts. In addition, in March 2019, Gramalote received noticeassessments 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 it disagreedthe 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 on the same basis as its 2013 returns, calculating additional tax, along with penalties, of approximately $3 million. In October 2019, the DIAN issued the official assessment for 2014 confirming this amount. On 23 December 2019, Gramalote filed a motion for reconsiderationare still pending before the DIAN.Administrative Court of Cundinamarca.


The total amount claimed by the DIAN, related to the above tax matters, amountsamounted to $164$122 million of which $144$105 million relatesrelated to penalties and interest.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): 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 $1.8$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 $8.2$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.









272

•Ghanaian tax authorities v. AngloGold Ashanti (Ghana) Limited (AGAG): In Ghana, AGAG received 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 and tuberculosis litigation: In August 2013, AngloGold Ashanti, along with several other mining companies, was served with a consolidated class action application. In May 2016, the High Court in Johannesburg 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. In May 2018, settlement of the consolidated class action litigation was reached. The settlement agreement in relation to this silicosis and tuberculosis class action came into effect on 10 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. As of 31 December 2019, AngloGold Ashanti has recorded a provision of $65 million to cover the estimated settlement costs and related expenditure of the silicosis litigation.


COLOMBIA


•Santa María-Montecristo and La Colosa class action lawsuits: Class action lawsuits are pendinghave been filed in relation to each of AngloGold Ashanti Colombia S.A.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. On 30In 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. AGAC’s appeal of this ruling was admitted and is currently pending beforeIn 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 order to prepare the technical study has been temporarily suspended pending resolution by the Council of State. If AGAC’sState’s decision, which is final and not subject to further appeal, beforedetermined that AGAC, as concessionaire, has a right to develop the Councilproject if it can demonstrate to the mining and environmental authorities on the basis of State istechnical studies that its mining exploration and, eventually, exploitation activities, will not successful,impact the company may have to perform a technical study in respectwater resources of the Combeima canyon. IfCoello River basin and its tributaries. Until such time, the results of the study are unfavourable, certain development activities at the Santa María-Montecristo project may be suspended.injunction remains in place.


The consolidated La Colosa class action lawsuit originally consisted of four separate class actions. In relation to this project, on 10in 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. On 4In 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. On 6In 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.


WhileFurther, while the plaintiffs in thesethe La Colosa class actionsaction have petitioned the courts to cancel the La Colosa and/or Santa María-Montecristo mining concession contracts, the company believes that the judiciary system in Colombia does 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 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 thesethis class action lawsuitslawsuit 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. 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 La Colosa project and/or Santa María-Montecristo project.


•Cortolima’s injunction against AngloGold Ashanti Colombia S.A.S.A.S. (AGAC): On 11 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 proceedingproceedings 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. ThisIn 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 currently pending.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.





273

•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 AGAC’s 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’s appeal ofAGAC subsequently appealed this ruling is currently pending beforeruling. On 22 July 2021, AGAC was notified that the Administrative Superior Court of Tolima which will have to decideruled on this matterappeal that, in light of the recent ruling2018 decision of the Constitutional Court onof 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.
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 AGA’sAGAC’s mining contract in Cajamarca on the grounds of the results of the Cajamarca popular consultation. TheAfter having admitted the annulment claim was admitted on 11in 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 Cundinamarca’s Administrative Court which will have to decide on this matter in lightthe Council of the abovementioned ruling of the Constitutional Court.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. On 12In 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 on 30in April 2019. The Ministry of the Environment, as defendant in this action, is expected to file its response to the annulment claim.


•Zonte Metals: A Canadian junior mining company, Zonte Metals, filed applications for title to certain corridors, or small slivers of land, overlaying sections of the Gramalote project. The Secretary of Mines of Antioquia, the department in which the Gramalote project is located, denied the applications filed by Zonte Metals. However, Zonte Metals then filed a claim against the Colombian National Mining Agency (ANM) and the Antioquia Secretary of Mines before the Council of State of Colombia, by which it seeks to (i) revoke the resolution that denied its application and (ii) obtain the rights over the corridors requested in its application. The Council of State subsequently enjoined the Antioquia Secretary of Mines and Gramalote Colombia Limited (Gramalote) from progressing a pending application to integrate the disputed corridors with Gramalote’s tenement. The Antioquia Secretary of Mines has filed its response to the Zonte Metals claim, which includes arguments



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aligned with the interests and position of Gramalote. On 4In 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 on 28in August 2019. On 24In 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: On 2In 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. 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 struck out for wantto 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 prosecution.
the parties.

•
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. The arbitration panel has been constituted and held an arbitration management meeting to address initial procedural matters on 26 July 2019. The arbitration is currently pending.



•Ghana Mining Licenses Litigation: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. On 19In 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. On 18In 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.

On 13 December 2019, AGAG, together with six other mining companies, were served with writs by a private individual seeking similar relief in the High Court of Ghana (instead of the Ghanaian Supreme Court). On 30 January 2020, during the first hearing, the High Court noted that AGAG and the other defendants had filed motions to have the writ struck out and ordered the parties to file their written submissions. The case has been adjourned to the beginning of April 2020 for a ruling on the interlocutory matter.


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 Corp.: On 19 October 2017, Newmont Corp. (formerly Newmont Mining Corp.) filed a lawsuit in the United States District Court for the Southern District of New York against AngloGold Ashanti and certain related parties, alleging that AngloGold Ashanti and such parties did not provide Newmont Corp. with certain information material to its purchase of the Cripple Creek & Victor Gold Mining Company (CC&V) in 2015 during the negotiation and sale process. On 18 March 2020, AngloGold Ashanti’s motions for summary judgment were granted and the case was dismissed.


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.


•Geita Gold Mining Limited (GGM) and Samax Resources Limited (Samax) v. Government of Tanzania: On 13 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. On 15Since January 2019, at the request of the parties, requested that the arbitral proceedings behave been stayed until 12 July 2019several times in order to afford the parties the opportunity to achieve an amicable resolution



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of the dispute. A further extensiondispute and as a result of the stay until 13 January 2020 was subsequently granted.impact of the COVID-19 pandemic. On 29 January 2020,7 May 2021, the Arbitral Tribunal granted another extensionparties agreed to stay the arbitralarbitration proceedings until 13 May 2020 on the basis that this stay is final, unless there are principled grounds for a further stay.
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 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): On 28In 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 on 27in September 2019 and contends that it has not violated any Brazilian laws or regulations applicable to operations of the Serra Grande tailings dam. On 10In February 2020, the Court granted an injunction in respect of a number of the requests made by the Prosecutors.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. On 20 February 2020, 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 matterappeal is ongoing.
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): On 6In 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 storage facilitydam if the “dam break” studies identify communities that are located in the self-rescue zone. On 21In 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 storage facilitiesdams 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. On 12During the months of March through May 2020, AGA Mineraçãoall parties presented itstheir arguments in court challengingcourt. In June 2020, the requestedCourt rejected the Prosecutor’s request to grant an injunction. This matter is ongoing.In July 2020, the Court’s decision not to grant an injunction was upheld on appeal by the Court of Appeals of Minas Gerais. Subsequently, the Court issued an order proposing a conciliation hearing between the parties, to which none of the parties objected. On 28 January 2022, the parties filed a joint petition requesting the cancellation of the conciliation hearing and the suspension of the legal proceedings in view of negotiations between the parties to explore a possible settlement.






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DIVIDENDS


General


Dividends are proposed by and approved by the board of directors of AngloGold Ashanti (the “board”), based on the company’s financial performance.performance and compliance with applicable laws, including in respect of the solvency and liquidity test contemplated in the SA Companies Act. Dividends are recognised when declared by the Board of Directors of AngloGold Ashanti (Board).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 Board orRepublic of South Africa with its primary listing on the Johannesburg Stock Exchange, 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 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 (Treaty)(the “US/SA Double Taxation Treaty”) would generally limit the dividends tax rate to five percent of the gross amount of the dividends if a corporate US holder holds directly at least 10 percent of the voting stock of AngloGold Ashanti, provided that the applicable declaration and undertaking are given by the beneficial owner that the reduced rate applies.Ashanti. In all other cases, the maximum tax rate under the US/SA Double Taxation Treaty is 15 percent of the gross amount of the dividend. Different rules may apply if the beneficial owner of the dividends is a US resident who carries on business in South Africa through a permanent establishment situated in South Africa, or performs in South Africa independent personal services from a fixed basepermanent establishment situated in South Africa, and the dividends are attributable to such permanent establishment or fixed base. Moreover, if the dividends tax rate is reduced under the auspices of an applicable double tax treaty, certain South African compliance requirements must be met in order to obtain the double tax treaty relief.establishment.
















8B.SIGNIFICANT CHANGES






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8B.    SIGNIFICANT CHANGES

Refer to “Item 18: Financial Statements-Note 37-Subsequent events”Statements—Note 35—Subsequent Events”.








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ITEM 9: THE OFFER AND LISTING




9A.OFFER AND LISTING DETAILS

9A.    OFFER AND LISTING DETAILS

The principal trading markets for AngloGold Ashanti’s ordinary shares are the New York Stock Exchange (NYSE), in the form of ADSs, under the symbol “AU” and the JSE Limited, in the form of ordinary shares, under the symbol “ANG”. Each ADS represents one ordinary share.














9B.    PLAN OF DISTRIBUTION
9B.PLAN OF DISTRIBUTION


Not applicable.





9C.MARKETS




9C.    MARKETS

NATURE OF TRADING MARKET


The principal trading markets for AngloGold Ashanti’s ordinary shares are the New York Stock Exchange,NYSE, in the form of ADSs, under the symbol “AU” (each representing one ordinary share) and the JSE Limited, in the form of ordinary shares, under the symbol “ANG”.


AngloGold Ashanti’s ordinary shares are also listed on the Ghana Stock Exchange, as ordinary shares under the symbol “AGA” and in the form of Ghanaian Depositary Shares or GhDSs (each representing one one-hundredth of an ordinary share) under the symbol “AADs”“AAD”, and the Australian Securities Exchange, in the form of ChessCHESS Depositary Interests (each representing one-fifth of an ordinary share) under the symbol “AGG”.











9D.SELLING SHAREHOLDERS

9D.    SELLING SHAREHOLDERS

Not applicable.













9E.    DILUTION
9E.DILUTION


Not applicable.












9F.EXPENSES OF THE ISSUE

9F.    EXPENSES OF THE ISSUE

Not applicable.




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ITEM 10:    ADDITIONAL INFORMATION




10A.SHARE CAPITAL


Not applicable.









10B.MEMORANDUM OF INCORPORATION


At the last annual general meetingAGM held on 94 May 2019,2021, AngloGold Ashanti did not need to seek approval from shareholders to makefor any changesamendments to its Memorandum of Incorporation (MoI).


Considering the South African nationwide lockdown enforced to combat the Covid-19 pandemic, the board has decided to postponeAt the annual general meeting (AGM) which was scheduled to take placebe held on 616 May 2020. We will inform shareholders of the new AGM date .2022, AngloGold Ashanti will seek approval from shareholders (by way of
a special resolution) to substitute clauses 9.1.1.3.2amend 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 9.2.1.3.2the 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 clauses to enable the Companytable:

Share capitalSouth African Rands
600,000,000 ordinary shares of R0.25 each150,000,000

The reason for these amendments is to comply with the provisions of the SA Companies Act 71 of 2008 (as amended) (the 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 orderthe 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 A preference share terms andMoI being put to the B preference share termsshareholders for approval at the next AGM.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 (Regulations)(the “Regulations”), which include the Takeover Regulations. Further, the rights of holders of AngloGold Ashanti ADSs are governed by the Deposit Agreement between AngloGold Ashanti and The Bank of New York Mellon.See “Item 10C: Material Contracts-TheContracts—The Deposit Agreement”.


The SA Companies Act provides that shares will no longer have a par or nominal value and hence no new shares having a nominal or par value may be authorised. However, any shares which have a nominal or par value authorised prior to the1 May 2011 (the effective date of the SA Companies ActAct) continue to have that nominal or par value and can be issued as such for so long as



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there are par value shares in the company’s authorised share capital. Should the company wish, it may also elect to convert its authorised par value shares to shares of no par value, subject to the relevant process and approvals contemplated in the SA Companies Act.


Directors


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 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.






281

Dividends, Rights and Distributions


The ordinary shares participate fully in all dividends, other distributions and entitlements as and when declared by AngloGold Ashanti in respect of fully paid ordinary shares. Under South African law, AngloGold Ashanti may declare and pay 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 and 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-TheContracts—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 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,Depositary, respectively, how to vote their shares.


There are no limitations on the right of non-South African registered shareholders to hold or exercise voting rights attaching to any of the ordinary shares.


The A redeemable preference shares have similar voting rights to those of ordinary shares.The B and C redeemable preference shares have voting rights only in the event that a dividend on this class of share has not been paid and remains unpaid for six months or more, or in connection with resolutions directly affecting these redeemable preference shares or in limited circumstances affecting AngloGold Ashanti as a whole, such as disposal of substantially all of the company’s assets, winding up AngloGold Ashanti or reducing the company’s share capital.


At any meeting of AngloGold Ashanti at which the holders of the ordinary shares, A redeemable preference shares, B redeemable preference shares and C redeemable preference shares are present and entitled to vote on a poll, each holder of the A redeemable preference shares shall be entitled to 50 votes for every A redeemable preference share held, each holder of the ordinary shares is entitled to 50 votes for every ordinary share held and each holder of the B redeemable preference shares



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and the C redeemable preference shares is entitled to one vote for every B redeemable preference share and C redeemable preference share held respectively.


The MoI specifies that the rights relating to any class of shares may be modified or abrogated with the sanction of a resolution passed as if it were a special resolution of the holders of shares in that class at a separate general meeting. The MoI also specifies that theany holders of the A, B and C redeemable preference shares may provide written consents to the modification of their rights.


Increase and Reduction of Capital


The company is authorised to issue the shares specified in the MoI and all such shares are required to be issued as fully paid up in accordance with the applicable approval and/or other requirements of the SA Companies Act and the JSE Listings Requirements.


The directors are authorised, subject to any requirements of the JSE Listings Requirements, the SA Companies Act, the Regulations and the MoI, to increase or decrease the number of authorised shares of any class of shares, reclassify any shares that have been authorised but not issued, classify any unclassified shares that have been authorised but not issued, and determine the preferences, rights, limitations or other terms of any class of authorised shares or amend any preferences, rights, limitations or other terms as determined. However, such capital amendments require an amendment to be made to the MoIMoI. The SA Companies Act and the JSE Listings Requirements currently doesdo not allow the MoI to be amended to give effect to such capital amendments without the approval of ordinary shareholders by special resolution.


Rights Upon Liquidation


In the event of the winding up of AngloGold Ashanti:
•The A redeemable preference shares shall confer the right, on a winding-up of the company, in priority to any payment in respect of the ordinary 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•The ordinary shares confer the right to participate equally in any surplus arising from the liquidation of all other assets of AngloGold Ashanti.


Redemption Provisions


The A redeemable preference shares may be redeemed for their nominal value, plus a premium per share of an amount equal to the net proceeds available from the disposal of the assets relating to the Moab Lease Area, after redemption in full of the B redeemable preference shares and the C redeemable preference shares, and payment of the nominal value of the A redeemable preference shares, divided by 2,000,000.


The B redeemable preference shares may be redeemed for their nominal value, plus a premium of upan amount equal to R249.99 per share,175,096,390 divided by that number of B redeemable preference shares in issue, but limited to an amount equal to the net proceeds available from the disposal of the assets relating to the Moab Lease Area after payment of the nominal value of the B redeemable preference shares.


The C redeemable preference shares may be redeemed for their aggregate issue price of the said C redeemable preference shares, but shall be limited to an amount equal to the net proceeds available from the disposal of the assets relating to the Moab Lease Area and only after redemption in full of the B redeemable preference shares.





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Shareholders’ meetingsMeetings


The directors may convene meetings of AngloGold Ashanti shareholders. Subject to the provisions of the SA Companies Act, the shareholders may requisition for the convening of a meeting.


Notice of each AngloGold Ashanti annual general meeting and general meeting of AngloGold Ashanti shareholders must be delivered at least 15 business days before that shareholders’ meeting is to begin. In accordance with the SA Companies Act, business days are calculated by excluding the first day, including the last day and excluding Saturdays, Sundays and any public holiday in the Republic of South Africa. In terms of the MoI, all shareholders are entitled to attend shareholders’ meetings.meetings at which they are entitled to vote.


In the case of a class meeting of the A, B or BC redeemable preference shares, the sole holder of such shares shall constitute a quorum. Save as aforesaid, the quorum of a shareholders’ meeting 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



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Act) may exercise its appraisal right to demand that the company pay to it the fair value for all the shares of the company held by that shareholder.


Description of ADSs


The Bank of New York Mellon issues AngloGold Ashanti’s American Depositary Shares, or ADSs. Please see “Item 10C: Material Contracts-DescriptionContracts—Description of AngloGold Ashanti ADSs”.






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10C.MATERIAL CONTRACTS


Multi-currency Revolving Credit FacilitiesFacility


General

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. This facility was cancelled on 19 February 2020.

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 2020, 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 $71 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 two years. The option was exercised. The facility bears interest at JIBAR plus 1.3% per annum. As of 19 March 2020, this facility is fully drawn.

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 $179 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 two years. The option was exercised. The facility bears interest at JIBAR plus 1.8% per annum. As of 19 March 2020, ZAR 450 million was drawn under this revolving facility.

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 2020, the equivalent of $110 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 2020,2022, the equivalent of $945$34 million was drawn under this Revolving Credit Facility.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 36-CapitalStatements—Note 34—Capital Management” for the formulae used in the revolving credit agreementsagreement to test compliance with the covenants.


Change of control


If a lender so requires, the commitment of such lender under the Multi-Currency Revolving Credit Facility or the ZAR Revolving Credit Facility$1.4 billion multi-currency RCF will be cancelled and the participation of such lender in all outstanding loans, together with accrued interest and all other amounts accrued, will become immediately due and payable in case any person or group of persons acting in concert becomes (directly or indirectly) the beneficial owner of more than 50 percent of the issued share capital of AngloGold Ashanti Limited.





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Undertakings


The revolving credit agreements contain$1.4 billion multi-currency RCF contains a negative pledge covenants,covenant, including restrictions on the granting of security, a change of business of AngloGold Ashanti Limited and its subsidiaries, acquisitions or participations in joint ventures and mergers and disposals.


The revolving credit agreements$1.4 billion multi-currency RCF also contain,contains, among others,other things, the following affirmative covenants: mandatory periodic reporting of financial and other information, notice upon the occurrence of events of default and certain other events, compliance with environmental laws and other obligations requiring each of AngloGold Ashanti Holdings plcAGAH and its subsidiaries to maintain its corporate existence and qualifications to conduct its business as currently conducted in all applicable jurisdictions and to maintain insurance coverage. The covenants are subject to exceptions and materiality thresholds.




Events of default


The revolving credits agreements contain$1.4 billion multi-currency RCF contains events of default including failure to make payment of amounts due, breach of obligations under the loan documents, defaults under other agreements evidencing indebtedness, certain bankruptcy events and a cessation of business, failure of any of the borrowers to be a wholly-ownedwholly owned subsidiary of AngloGold Ashanti Holdings plcAGAH and the occurrence of a material adverse change in the business and financial condition of the borrowers and guarantors under the revolving credit agreements,agreement, or AngloGold Ashanti and its subsidiaries as a whole, or in the ability of the borrowers and guarantors to perform their payment obligations under the loan documents. The occurrence of an event of default could result in the immediate and automatic cancellation of all commitments and the acceleration of all payment obligations under the revolving credit agreementsagreement and the other loan documents.


The above description is only a summary of certain provisions of the revolving credit agreementsagreement and is qualified in its entirety by reference to the provisions of the revolving credit agreements,agreement, a copy of which is attached hereto as Exhibit 19.4.4.1 and is incorporated herein by reference.

Bridge Facility

On 28 April 2020, AngloGold Ashanti Holdings plc (AGAH), as borrower, entered into a US$1.0 billion unsecured bridge facility agreement with a syndicate of lenders, guaranteed by AngloGold Ashanti Australia Limited. The bridge facility was for a term of 364 days which could be extended for a further six months with consent of the lenders. Amounts outstanding under the bridge facility bore interest at LIBOR plus a margin that increased over time. The bridge facility contained certain restrictive and affirmative covenants, events of default as well as a financial maintenance covenant. The lenders under the bridge facility were required to fund only if our $1.4 billion multi-currency RCF was drawn by at least $1.39 billion. The bridge facility agreement also contained a mandatory prepayment and cancellation clause. In particular, commitments under the bridge facility were automatically cancelled upon, among other matters, the incurrence of certain indebtedness (including the offering of the 2020 Notes as described below) and the consummation of certain disposals (including, for example, the disposal of our South African operations). The bridge facility, which remained undrawn, was cancelled on 1 October 2020.

The above description is only a summary of certain provisions of the bridge facility agreement and is qualified in its entirety by reference to the provisions of the cancelled bridge facility agreement.

Notes

Each of the series of notes described below were issued under the indenture, dated as of 28 April 2010, among AngloGold Ashanti Holdings plc (AGAH), as issuer, AngloGold Ashanti Limited, as guarantor, and The Bank of New York Mellon, as trustee (the Indenture). The below descriptions are only a summary of certain provisions of those series of notes and are qualified in their entirety by reference to the provisions of the Indenture and such relevant series of notes, a copy of each is attached hereto as Exhibit 19.4.4Exhibits 19.2.1, 19.2.2, 19.2.3, 19.2.4 and 19.2.5 and is incorporated herein by reference.


2021 Notes


On 22 October 2021, AGAH issued $750 million 3.375 percent Notes due 2028 (the “2021 Notes”). The interest on the 2021 Notes is payable semi-annually on 1 May and 1 November of each year, commencing on 1 May 2022. AGAH may on any one or more occasions redeem all or part of the 2021 Notes, at a redemption price equal to the greater of (1) 100 percent of the principal amount of the 2021 Notes to be redeemed and (2) the sum of the present values of the remaining scheduled payments of principal and interest on the 2021 Notes (excluding any portion of such payments of interest accrued or unpaid as of the date of redemption) discounted to the redemption date on a semiannual basis (assuming a 360-day year consisting of twelve 30-day months) at the treasury rate, plus 30 basis points, plus accrued and unpaid interest, if any, to the date of redemption. AGAH has agreed to pay certain additional amounts in respect of any withholdings or deductions for certain types of taxes in certain jurisdictions on payments to holders of the 2021 Notes. The 2021 Notes are unsecured and unsubordinated and are fully and unconditionally guaranteed by AngloGold Ashanti Limited.




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AGAH has agreed to observe certain covenants with respect to the 2021 Notes restricting, subject to certain limitations, the ability of AngloGold Ashanti Limited and AGAH to amalgamate, reconstruct, consolidate or merge with another company or other legal entity, and the ability of AngloGold Ashanti Limited and its restricted subsidiaries to pledge their assets to secure certain borrowings, create or incur liens on certain of their property or to engage in sale and leaseback transactions. In case of a change of control of the guarantor and a downgrade, within a specified period, of the 2021 Notes by three rating agencies, holders of the 2021 Notes have the right to require the issuer to repurchase all or any part of their 2021 Notes in cash for a value equal to 101 percent of the aggregate principal amount of 2021 Notes repurchased, plus accrued and unpaid interest, if any, on the 2021 Notes repurchased to the date of repurchase.

The offering of the 2021 Notes was registered under the Securities Act. The 2021 Notes were listed on the New York Stock Exchange.

2020 Notes

On 1 October 2020, AGAH issued $700 million 3.750 percent Notes due 2030 (the 2020 Notes). The interest on the 2020 Notes is payable semi-annually on 1 April and 1 October of each year, commencing on 1 April 2021. AGAH may on any one or more occasions redeem all or part of the 2020 Notes, at a redemption price equal to the greater of (1) 100 percent of the principal amount of the 2020 Notes to be redeemed and (2) the sum of the present values of the remaining scheduled payments of principal and interest on the 2020 Notes (excluding any portion of such payments of interest accrued or unpaid as of the date of redemption) discounted to the redemption date on a semiannual basis (assuming a 360-day year consisting of twelve 30-day months) at the treasury rate, plus 50 basis points, plus accrued and unpaid interest, if any, to the date of redemption. AGAH has agreed to pay certain additional amounts in respect of any withholdings or deductions for certain types of taxes in certain jurisdictions on payments to holders of the 2020 Notes. The 2020 Notes are unsecured and unsubordinated and are fully and unconditionally guaranteed by AngloGold Ashanti Limited.

AGAH has agreed to observe certain covenants with respect to the 2020 Notes restricting, subject to certain limitations, the ability of AngloGold Ashanti Limited and AGAH to amalgamate, reconstruct, consolidate or merge with another company or other legal entity, and the ability of AngloGold Ashanti Limited and its restricted subsidiaries to pledge their assets to secure certain borrowings, create or incur liens on certain of their property or to engage in sale and leaseback transactions. In case of a change of control of the guarantor and a downgrade, within a specified period, of the 2020 Notes by three rating agencies, holders of the 2020 Notes have the right to require the issuer to repurchase all or any part of their 2020 Notes in cash for a value equal to 101 percent of the aggregate principal amount of 2020 Notes repurchased, plus accrued and unpaid interest, if any, on the 2020 Notes repurchased to the date of repurchase.

The offering of the 2020 Notes was registered under the Securities Act. The 2020 Notes were listed on the New York Stock Exchange.

2012 Notes


On 30 July 2012, AngloGold Ashanti Holdings plc (AGAH),AGAH issued $750 million 5.125 percent Notes due 2022 (the 2012 Notes). The interest on the 2012 Notes iswas payable semi-annually on 1 February and 1 August of each year, commencing on 1 February, 2013. AGAH maywas permitted on any one or more occasions to redeem all or part of the 2012 Notes, at a redemption price equal to the greater of (1) 100 percent of the principal amount of the 2012 Notes to be redeemed and (2) the sum of the present values of the remaining scheduled payments of principal and interest on the 2012 Notes (excluding any portion of such payments of interest accrued or unpaid as of the date of redemption) discounted to the redemption date on a semiannual basis (assuming a 360-day year consisting of twelve 30-day months) at the treasury rate, plus 50 basis points, plus accrued and unpaid interest, if any, to the date of redemption. AGAH hashad agreed to pay certain additional amounts in respect of any withholdings or deductions for certain types of taxes in certain jurisdictions on payments to holders of the 2012 Notes. The 2012 Notes arewere unsecured and unsubordinated and arewere fully and unconditionally guaranteed by AngloGold Ashanti Limited.


AGAH hashad agreed to observe certain covenants with respect to the 2012 Notes restricting, subject to certain limitations, the ability of AngloGold Ashanti Limited and AGAH to amalgamate, reconstruct, consolidate or merge with another company or other legal entity, and the ability of AngloGold Ashanti Limited and its restricted subsidiaries to pledge their assets to secure certain borrowings, create or incur liens on certain of their property or to engage in sale and leaseback transactions. In case of a change of control of the guarantor and a downgrade, within a specified period, of the 2012 Notes below an investment grade rating by two rating agencies, holders of the 2012 Notes havehad the right to require the issuer to repurchase all or any part of their 2012 Notes in cash for a value equal to 101 percent of the aggregate principal amount of 2012 Notes repurchased, plus accrued and unpaid interest, if any, on the 2012 Notes repurchased to the date of purchase.


The offering of the 2012 Notes was registered under the Securities Act. The 2012 Notes were listed on the New York Stock Exchange.


The 2012 notes were redeemed in October and November 2021 and are no longer outstanding.





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2010 Notes


On 28 April 2010, AGAH issued $700 million 5.375 percent Notes due 2020 and $300 million 6.500 percent Notes due 2040 (together, the 2010 Notes). The interest on the 2010 Notes is payable semi-annually on 15 April and 15 October of each year, commencing on 15 October 2010. AGAH may on any one or more occasions redeem all or part of the 2010 Notes, at a redemption price equal to the greater of (1) 100 percent of the principal amount of the 2010 Notes to be redeemed and (2) the sum of the present values of the remaining scheduled payments of principal and interest on the 2010 Notes (excluding any portion of such payments of interest accrued or unpaid as of the date of redemption) discounted to the redemption date on a semiannual basis (assuming a 360-day year consisting of twelve 30-day months) at the treasury rate, plus 25 basis points with respect to the 2010 Notes maturing in 2020 and 30 basis points with respect to the 2010 Notes maturing in 2040, plus accrued and unpaid interest, if any, to the date of redemption. AGAH has agreed to pay certain additional amounts in respect of any withholdings or deductions for certain types of taxes in certain jurisdictions on payments to holders of the 2010 Notes. The 2010 Notes are unsecured and unsubordinated and are fully and unconditionally guaranteed by AngloGold Ashanti Limited.


AGAH has agreed to observe certain covenants with respect to the 2010 Notes restricting, subject to certain limitations, the ability of AngloGold Ashanti Limited and AGAH to amalgamate, reconstruct, consolidate or merge with another company or other legal entity, and the ability of AngloGold Ashanti Limited and its restricted subsidiaries to pledge their assets to secure certain borrowings, create or incur liens on certain of their property or to engage in sale and leaseback transactions. In case of a change of control of the guarantor and a downgrade, within a specified period, of a series of 2010 Notes below an investment grade rating by two rating agencies, holders of the 2010 Notes have the right to require the issuer to repurchase all or any part of their 2010 Notes in cash for a value equal to 101 percent of the aggregate principal amount of 2010 Notes repurchased, plus accrued and unpaid interest, if any, on the 2010 Notes repurchased to the date of purchase.


The offering of the 2010 Notes was registered under the Securities Act. The 2010 Notes were listed on the New York Stock Exchange.



The $700 million 5.375 percent Notes due 2020 were repaid at maturity on 15 April 2020 and are no longer outstanding.

For further information, see “Note 26: 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. 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 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,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”the “Custodian”. Each ADS also represents any other securities, cash or other property which may be held by The Bank of New York Mellon. The Bank of New York Mellon’s Corporate Trust Office at which the ADSs are administered is located at 240 Greenwich Street, New York, New York 10286. The Bank of New York Mellon’s principal executive office is also located at 240 Greenwich Street, New York, New York 10286.


ADSs may be held either (A) directly (i) by having an American Depositary Receipt, also referred to as an ADR, which is a certificate evidencing a specific number of ADSs, registered in the holder’s name, or (ii) by having ADSs registered in a holder’s name in the Direct Registration System, or (B) indirectly by holding a security entitlement in ADSs through a broker or other financial institution. If ADSs are held directly, such holders are ADS holders. This description applies to AngloGold Ashanti’s ADS holders. If ADSs are held indirectly, such holders must rely on the procedures of their broker or other financial institution to assert



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the rights of ADS registered holders described in this section. Such holders should consult with their broker or financial institution to find out what those procedures are.


The Direct Registration System, or DRS, is a system administered by DTC pursuant to which the 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 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"“restricted securities” within the meaning of Rule 144 which will have the same provisions as the ADSs described here, except for the changes needed to put the restrictions in place.


Other Distributions


The Bank of New York Mellon will send to holders of ADSs any other distributions that AngloGold Ashanti makes on deposited securities by any means it thinks is legal, fair and practical. If it cannot make the distribution in that way, The Bank of New York



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Mellon may decide to sell what AngloGold Ashanti distributes, and then distribute the net proceeds in the same way as it distributes cash, or it may decide to hold what AngloGold Ashanti distributes, in which case the outstanding ADSs will also represent the newly distributed property. However, The Bank of New York Mellon is not required to distribute any securities (other than ADSs) to ADS holders unless it receives satisfactory evidence from AngloGold Ashanti that it is legal to make that distribution. The Bank of New York Mellon may sell a portion of the distributed securities or property sufficient to pay its fees and expenses in connection with that distribution.


The Bank of New York Mellon is not responsible if, based on available information, it decides that it is unlawful or impractical to make a distribution available to any ADS holders. AngloGold Ashanti has no obligation to register ADSs, AngloGold Ashanti ordinary shares, rights or other securities under the US Securities Act of 1933.Act. AngloGold Ashanti also has no obligation to take any other action to permit the distribution of ADSs, AngloGold Ashanti ordinary shares, or any other rights to ADS holders. This means that the holders of ADSs may not receive the distribution AngloGold Ashanti makes on its ordinary shares or any value for them if it is illegal or impracticable for AngloGold Ashanti to make them available to the holders of ADSs.


Deposit, Withdrawal and Cancellation


The Bank of New York Mellon will deliver ADSs if a holder of AngloGold Ashanti’s ordinary shares or its broker deposits AngloGold Ashanti’s ordinary shares or evidence of rights to receive ordinary shares with the Custodian. Upon payment of its fees and expenses and of any taxes or charges, such as stamp taxes or stock transfer taxes or fees, The Bank of New York Mellon will register the appropriate number of ADSs in the names such holder of AngloGold Ashanti ordinary shares requests and will deliver the ADSs at its Corporate Trust Office to the persons such holders request.


Holders of ADSs may turn in their ADSs at The Bank of New York Mellon’s Corporate Trust Office. Upon payment of its fees and expenses and of any taxes or charges, such as stamp taxes or stock transfer taxes or fees, The Bank of New York Mellon will deliver (1) the underlying ordinary shares to an account designated by the relevant holder of ADSs and (2) any other deposited

securities underlying the ADSs at the office of the Custodian, or, at the request, risk and expense of ADS holders, The Bank of New York Mellon will deliver the deposited securities at its Corporate Trust Office.


Interchange Between Certificated ADSs and Uncertificated ADSs


ADS registered holders may surrender their ADS to The Bank of New York Mellon for the purpose of exchanging such ADS for uncertificated ADSs. The Bank of New York Mellon will cancel that ADS and will send to the ADS registered holder a statement confirming that the ADS registered holder is the registered holder of uncertificated ADSs. Alternatively, upon receipt by The Bank of New York Mellon of a proper instruction from a registered holder of uncertificated ADSs requesting the exchange of uncertificated ADSs for certificated ADSs, The Bank of New York Mellon will execute and deliver to the ADS registered holder an ADS evidencing those ADSs.


Voting Rights


ADS registered holders may instruct The Bank of New York Mellon to vote the number of deposited shares their ADSs represent. The Bank of New York Mellon will notify ADS registered holders of shareholders’ meetings and arrange to deliver AngloGold Ashanti’s voting materials to them if AngloGold Ashanti asks it to. Those materials will describe the matters to be voted on and explain how ADS registered holders may instruct The Bank of New York Mellon how to vote. For instructions to be valid, they must reach The Bank of New York Mellon by a date set by The Bank of New York Mellon.


Otherwise, ADS registered holders will not be able to exercise their right to vote unless they withdraw the shares. However, ADS registered holders may not know about the meeting sufficiently in advance to withdraw the shares.


The Bank of New York Mellon will try, as far as practicable, to vote or to have its agents vote the ordinary shares or other deposited securities as holders of ADSs instruct, but this is subject to South African law, the provisions of AngloGold Ashanti’s MoI and of the deposited securities and any applicable rule of the JSE. The Bank of New York Mellon will only vote or attempt to vote as such holders of ADSs instruct.


AngloGold Ashanti cannot assure the holders of ADSs that they will receive the voting materials in time for them to instruct The Bank of New York Mellon to vote their ordinary shares. In addition, The Bank of New York Mellon and its agents are not responsible for failing to carry out voting instructions or for the manner of carrying out voting instructions. This means that holders of ADSs may not be able to exercise their right to vote and there may be nothing they can do if their ordinary shares are not voted as they requested.






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Fees and Expenses
ADS holders must pay:For:
$5.00 (or less) per 100 ADSs
Each issuance of an ADS, including as a result of a distribution of AngloGold Ashanti ordinary shares or rights or other property



Each cancellation of an ADS, including if the Deposit Agreement terminates
$0.02 (or less) per ADSAny cash payment
Registration or transfer feesTransfer and registration of AngloGold Ashanti ordinary shares on the AngloGold Ashanti share register to or from the name of The Bank of New York Mellon or its agent when AngloGold Ashanti ordinary shares are deposited or withdrawn
$0.02 (or less) per ADS per yearDepositary services
Expenses of The Bank of New York Mellon
Conversion of non-US currency to US dollars



Cable, telex and facsimile transmission expenses



Servicing the deposited securities
Taxes and other governmental charges that The Bank of New York Mellon or any 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 ADSsDistribution of securities distributed to holders of deposited securities that are distributed by The Bank of New York Mellon to ADS holders






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Payment of Taxes


Holders of ADSs will be responsible for any taxes or other governmental charges payable on their ADSs or on the deposited securities underlying their ADSs. The Bank of New York Mellon may refuse to transfer their ADSs or allow them to withdraw the deposited securities underlying their ADSs until such taxes or other charges are paid. It may apply payments owed to holders of ADSs or sell deposited securities underlying their ADSs to pay any taxes they owe, and they will remain liable for any deficiency. If The Bank of New York Mellon sells deposited securities, it will, if appropriate, reduce the number of ADSs to reflect the sale and pay to holders of ADSs any proceeds, or send to them any property remaining after it has paid the taxes.


Reclassifications
If AngloGold Ashanti:Then:
Reclassifies, splits up or consolidates any of the deposited securities;


The cash, ordinary shares or other securities received by The Bank of New York Mellon will become deposited securities. Each ADS will automatically represent its equal share of the new deposited securities.
Distributes securities on the ordinary shares that are not distributed to holders of ADSs; or



Recapitalises, reorganises, merges, liquidates, sells all or substantially all of AngloGold Ashanti’s assets, or takes any similar action.
The Bank of New York Mellon may, and will if AngloGold Ashanti asks it to, distribute some or all of the cash, AngloGold Ashanti ordinary shares or other securities it receives. It may also issue new ADSs or ask holders of ADSs to surrender their outstanding ADSs in exchange for new ADSs identifying the new deposited securities.


Amendment and Termination


AngloGold Ashanti may, for any reason, agree with The Bank of New York Mellon to amend the Deposit Agreement and the ADSs without the consent of holders. If the amendment increases fees or charges (except for taxes and other governmental charges or registration fees, cable, telex or facsimile transmission costs, delivery costs or other such expenses) or if the amendment prejudices an important right of ADS holders, it will only become effective 30 days after The Bank of New York Mellon notifies holders of ADSs of the amendment. At the time an amendment becomes effective, holders of ADSs are considered, by continuing to hold their ADSs, to agree to the amendment and to be bound by the ADSs and the agreement as amended.


The Bank of New York Mellon may terminate the Deposit Agreement by mailing notice of termination to ADS holders at least 30 days prior to the date fixed in the notice if AngloGold Ashanti asks it to do so. The Bank of New York Mellon may also terminate the Deposit Agreement if The Bank of New York Mellon has told AngloGold Ashanti that it would like to resign and AngloGold Ashanti has not appointed a new depositaryDepositary bank within 90 days. In both cases, The Bank of New York Mellon must notify holders of AngloGold Ashanti ADSs at least 30 days before termination.


After termination, The Bank of New York Mellon and its agents will be required to do only the following under the Deposit Agreement: collect distributions on the deposited securities, sell rights, and, upon surrender of ADSs, deliver AngloGold Ashanti ordinary shares and other deposited securities. Four months after the date of termination or later, The Bank of New York Mellon may sell any remaining deposited securities by public or private sale and will hold the proceeds of the sale, as well as any other cash it is holding under the Deposit Agreement, for the pro rata benefit of the ADS holders who have not surrendered their ADSs. It will not invest the money and will have no liability for interest. The Bank of New York Mellon’s only obligations will be to account for the proceeds of the sale and other cash. After termination, AngloGold Ashanti’s only obligations will be with respect to indemnification of, and payment of certain amounts to, The Bank of New York Mellon.


Limitations on Obligations and Liability to ADS Holders


The Deposit Agreement expressly limits AngloGold Ashanti’s obligations and the obligations of The Bank of New York Mellon, and limits AngloGold Ashanti’s liability and the liability of The Bank of New York Mellon. AngloGold Ashanti and The Bank of New York Mellon:
•are only obligated to take the actions specifically set forth in the Deposit Agreement without negligence or bad faith;
•are not liable if either of AngloGold Ashanti or The Bank of New York Mellon is prevented or delayed by law or circumstances beyond their control from performing their obligations under the Deposit Agreement;
•are not liable if either of AngloGold Ashanti or The Bank of New York Mellon exercises discretion permitted under the Deposit Agreement;
•are not liable for the inability of any holder of ADSs to benefit from any distribution on deposited securities that is not made available to holders of ADSs under the terms of the Deposit Agreement, or for any special, consequential or punitive damages for any breach of the terms of the Deposit Agreement;
•have no obligation to become involved in a lawsuit or other proceeding related to the ADSs or the Deposit Agreement on behalf of the holders of ADSs or on behalf of any other party;

•may rely on advice of or information from legal counsel, accountants, and any persons presenting AngloGold Ashanti’s ordinary shares for deposit, any registered holder or any other person believed by AngloGold Ashanti in good faith to be competent to give such advice or information; and



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•pursuant to the Deposit Agreement 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 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 Bank of New York Mellon must be able to close out the pre-release on not more than five business days’ notice. Each pre-release will be subject to any further indemnities and credit regulations that The Bank of New York Mellon deems appropriate. The Bank of New York Mellon will normally limit the number of AngloGold Ashanti ordinary shares not deposited but represented by ADSs outstanding at any time as a result of pre-release so that they do not exceed 30 percent of the ordinary shares deposited, although The Bank of New York Mellon may disregard this limit from time to time, if it thinks it is appropriate to do so.


Direct Registration System


In the Deposit Agreement, all parties to the Deposit Agreement acknowledge that the DRS and Profile Modification System, or Profile, will apply to uncertificated ADSs upon acceptance thereof to DRS by The Depository Trust Company, also referred to as DTC. DRS is the system administered by DTC pursuant to which the depositaryDepositary may register the ownership of uncertificated ADSs, which ownership will be evidenced by periodic statements sent by the depositaryDepositary to the registered holders of uncertificated ADSs. Profile is a required feature of DRS which allows a DTC participant, claiming to act on behalf of a registered holder of ADSs, to direct the depositaryDepositary to register a transfer of those ADSs to DTC or its nominee and to deliver those ADSs to the DTC account of that DTC participant without receipt by the depositaryDepositary of prior authorizationauthorisation from the ADS registered holder to register that transfer.






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In connection with and in accordance with the arrangements and procedures relating to DRS/Profile, the parties to the Deposit Agreement understand that The Bank of New York Mellon will not verify, determine or otherwise ascertain that the DTC participant which is claiming to be acting on behalf of an ADS holder in requesting registration of transfer and delivery described in the paragraph above has the actual authority to act on behalf of the ADS holder (notwithstanding any requirements under the Uniform Commercial Code). In the Deposit Agreement, the parties agree that The Bank of New York Mellon’s reliance on and compliance with instructions received by The Bank of New York Mellon through the DRS/Profile System and in accordance with the Deposit Agreement will not constitute negligence or bad faith on the part of The Bank of New York Mellon.


Shareholder Communications: Inspection of Register of Holders of ADSs


The Bank of New York Mellon will make available for inspection at its office all communications that it receives from AngloGold Ashanti as a holder of deposited securities that AngloGold Ashanti makes generally available to holders of deposited securities. The Bank of New York Mellon sends copies of those communications if requested by AngloGold Ashanti. ADS holders have a right to inspect the register of holders of ADSs, but not for the purpose of contacting those holders about a matter unrelated to AngloGold Ashanti’s business or the ADSs.






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10D.Exchange controls


Exchange controls and other limitations affecting security holders


The following is a general outline of South African exchange controls and such outline may not apply to former residents of South Africa. Investors should consult a professional advisor as to the exchange control implications of their particular investments.


South African law provides for exchange control regulations, which restrict the export of capital from 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 South Africa, the Kingdoms of Lesotho and Eswatini (formerly Swaziland) and the Republic of Namibia. The exchange control regulations, which are administered by the Financial Surveillance Department of the South African Reserve Bank (SARB), are applied throughout the Common Monetary Area and regulate transactions (including capital flows into and out 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 aspectspurpose of exchange control forcontrols is to mitigate the decline of foreign capital reserves in South African companies and financial institutions as well as forAfrica.

The Government of South African individuals. However, it is impossibleAfrica has, however, committed itself to predict with any certainty if and when the government will removerelaxing exchange controls gradually and significant relaxation has occurred in their entirety or how the controls may continue to change over time.recent years.


The comments below relate, in general, to exchange controls in place at the date of this annual report.


Investments in South African companies


A foreign investor may invest freely in ordinary shares in a South African company. Any foreign investor may also sell shares in a South African company and transfer the proceeds out of South Africa without restriction. Acquisitions of shares or assets of South African companies by non-South African purchasers are not generally subject to review and approval by the SARB, whenparticularly where the consideration is payable in cash, but may requirea form other than cash. In this regard, the SARB review andwill give approval in certain circumstances, including whenwhere it is persuaded, inter alia, that the consideration is equity in a non-South African company or whenpayable for the acquisition of the shares or assets is financed by a loan froman arm’s-length consideration and that such acquisition offers benefits to South Africa. In addition, where shares in a South African lender.company are acquired by a non-resident, the share certificates issued to the non-resident shareholder must be endorsed “non-resident” by the SARB (or an Authorised Dealer).


Dividends


Dividends declared to foreign stockholders in public companies listed on the Johannesburg Stock Exchange (JSE) are not subject to the approval of the SARB.SARB, provided that the shares in respect of which the dividends are declared have been endorsed “non-resident” by the SARB or an Authorised Dealer at the time of acquisition. Dividends are freely transferable to foreign stockholders from both trading and non-trading profits earned in South Africa by public listed companies.


Voting rights


There are no limitations imposed by South African law, including South African exchange controls, or by the Memorandum of Incorporation of AngloGold Ashanti on the rights of non-South African shareholders to vote their ordinary shares.


Overseas financing, interest and investments


Interest on foreign loans, if paid from cash generated from operations in South Africa, may be remittable abroad, provided that the loans and the payment of the relevant interest in respect of such loans have received prior SARB approval.


AngloGold Ashanti and its South African subsidiaries require SARB approval to raise debt from and repay debt to non-residents of the Common Monetary Area, mainly in respect of the terms of repayment applicable to such loans, as well as any guarantees that may be provided in respect of such loans, by AngloGold Ashanti or its South African subsidiaries.


Debt raised outside the Common Monetary Area by AngloGold Ashanti’s non-South African subsidiaries is not restricted under South African exchange control regulations and can be used for investment outside the Common Monetary Area, subject to the relevant conditions imposed by the SARB in connection with such investment, the establishing of such a non-South African subsidiary or in raising the debt by such subsidiary. For example, AngloGold Ashanti and its South African subsidiaries would require SARB approval in order for AngloGold Ashanti and/or its South African subsidiaries to provide guarantees for the obligations of any of its non-South African subsidiaries. In addition, funds obtained from non-residents of the Common Monetary Area and debt raised outside the Common Monetary Area by AngloGold Ashanti’s non-South African subsidiaries must be repaid or serviced by AngloGold Ashanti’s foreign subsidiaries unless otherwise approved by the SARB.


A listing by a South African company on any stock exchange other than the JSE in connection with raising capital requires permission from the SARB.


Under current exchange control regulations, offshore investments by AngloGold Ashanti and its subsidiaries require the approval of the SARB. Subject to such prior approval of the SARB, there is no limit on the amount of capital that may be invested offshore.


10E.Taxation


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10E.Taxation

South African taxation


General
The following discussionsummary summarises the South African tax consequences of the ownership and disposition of shares by South African residents or ADSs by a US holder (as defined below) and is not intended to constitute tax advice. This summary is based upon current South African tax law and South African Revenue Service (SARS) practice, the Convention Between the Government of the United States of America and the Republic of South Africa for the Avoidance ofUS/SA Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income and Capital Gains, signed 17 February 1997 (Treaty),Treaty, and in part upon representations of the depositary,Depositary, and assumes that each obligation provided for in, or otherwise contemplated by, a Deposit Agreement and any related agreement will be performed in accordance with its respective terms.


The following summary of the South African tax considerations does not address the tax consequences to a US holder that is resident in South Africa for South African tax purposes, whose holding of shares or ADSs is effectively connected with a permanent establishment in South Africa through which such US holder carries on business activities or, in the case of an individual, 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 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 proposalsprovisions the declaration and undertaking need to be renewed at least every five years unless the regulated intermediary is subject to the provisions of inter alia the US Foreign Account Tax Compliance legislation.


A dividend is currently defined as any amount transferred or applied by a company that is a resident (including AngloGold Ashanti)the Company) for the benefit or on behalf of any person in respect of any share in that company, whether that amount is transferred or applied by way of a distribution made by the company, or as consideration for the acquisition of any share in that company. The definition of a dividend specifically excludes any amount transferred or applied by the company that results in a reduction of so-called contributed tax capital (CTC) of the relevant class of shares, or constitutes shares in the company or constitutes an acquisition by the company of its own securities by way of a general repurchase of securities in terms of the JSE Listings Requirements. A distinction is thus made between a general repurchase of securities and a specific repurchase of securities. If the company embarks upon a general repurchase of securities, the proceeds areof such repurchase would not deemed to beconstitute a dividend whereas, in the case of a specific repurchase of securities where the purchase price is not funded out of CTC of that class of shares, the proceeds arewould likely to constitute a dividend.


The concept of CTC effectively means the sum of the stated capital or share capital and share premium of a company that existed on 1 January 2011, excluding any transfers from reserves to the share premium account or stated capital account, plus



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proceeds from the issue of any new shares by a company.company, less the amount of CTC that has been returned to shareholders. Any application of CTC is limited to the holders of a class of shares and specifically thatshares. In addition, a distribution of CTC attributable to a specific class must be made proportionately to the number of shares held by a shareholder in a specific class. The definition of CTC is subject to various provisos.


For dividends tax purposes a dividend is defined as any dividend as indicated above that is paid by a company that is a resident or paid by a foreign company if the share in respect of which that foreign dividend is paid is a listed share and to the extent that the foreign dividend does not constitute a distribution of an asset in kind.


Dividends are generally exempt from the payment of income tax, subject to various exclusions.


Taxation of capital gains on sale or other disposition


South African residents are (subject to certain exemptions) taxed on their worldwide income, while non-residents are only taxed on South African sourced income (subject to the provisions of any relevant double taxation agreement).


Capital gains tax is not a separate tax to income tax; instead, a percentile of the taxpayer’s net capital gain (that is the taxable capital gain) is included in its taxable income on which it is taxed at the income tax rate.


Non-residents are only subject to the South African capital gains tax provisions in respect of the disposal of any immovable property (such as land and buildings or mining rights) or any interest or right of whatever nature to or in immovable property situated in South Africa, or any asset of a permanent establishment through which that non-resident is carrying on a trade in South Africa. In the instance of a shareholder holding shares in a South African company, the ‘interest in immovable property’ requirements are met if 80 percent or more of the market value of the shares is directly or indirectly attributable to South African immovable property held on capital account, and that shareholder (whether alone or together with any connected person in relation to that person), directly or indirectly, holds at least 20 percent of the equity shares of that South African company.


Gains realised on the sale of ordinary shares are automatically deemed to be onof a capital accountnature and therefore, subject to capital gains tax provided the ordinary shares have been held for a continuous period of at least three years. This deeming provision is limitedapplicable to ordinary shares“equity shares” as defined in section 1 of the South African Income Tax Act, No. 58 of 1962 (the “SA Income Tax Act”), and doesmay not extend to preference shares or ADSs. ADSs where the preference shares or ADSs do not constitute “equity shares” as so defined.

The meaning of the word “resident” is different for individuals and corporations and is governed by the South African Income Tax Act 1962 ( the Act) and by the Treaty. In the event of conflict, the Treaty, which contains a tie breaker clause or mechanism to determine residency if a holder is resident in both countries, will prevail. In terms of the Act and Treaty, a US resident holder of shares or ADSs will not be subject to capital gains tax on the disposal of securities held as capital assets unless the securities are linked to a permanent establishment conducted in South Africa.Africa or constitute an interest in immovable property as indicated above. In contrast, gains on the disposal of securities which are not capital in nature are usually subject to income tax. Any asset held as a long-term investment will be considered a capital asset and subject to capital gains tax on the disposal of such an asset. Any asset acquired for purposes of resale as part of a profit-making scheme will not be considered a capital asset and will be subject to income tax on the disposal of such an asset. However, even in the latter case, a US resident holder will not be subject to income tax, unless the US resident holder carries on business in South Africa through a permanent establishment situated therein.

The effective marginal rate for South African residents is 36 percent for trusts, 18 percent for individuals and 22,4 percent for companies. The income tax rate applicable in each instance is 45 percent for trusts, 45 percent for individuals and 28 percent for companies.


Securities transfer tax (STT)


No securities transfer tax, or STT, is payable in South Africa with respect to the issue of a security, but STT is payable upon transfer, redemption or redemptioncancellation thereof.


STT on transfers of securities is charged at a rate of 0,250.25 percent on the 'taxable amount'‘taxable amount’ in respect of the 'transfer'‘transfer’ of every security issued by a company incorporated in South Africa, or a company incorporated outside South Africa, but listed on an exchange in South Africa, subject to certain exemptions.


The word 'transfer'‘transfer’ is broadly defined and includes the transfer, sale, assignment or cession or disposal in any other manner of a security which results in a change in beneficial ownership. The cancellation or redemption of a security is also regarded as a 'transfer'‘transfer’ unless the company is being liquidated. However, the transfer of a security that does not result in a change in beneficial ownership is not regarded as a 'transfer'‘transfer’ for STT purposes. A security is also defined as a depositary receipt in a company. Accordingly, STT is payable on the transfer of a depositary receipt issued by a company, including specifically the ADSs issued by AngloGold Ashanti.the Company. Generally, the central securities depositaryDepositary that has been accepted as a participant in terms of the Financial Markets Act, is liable for the payment of the STT, on the basis that it is recoverable from the person to whom it is transferred.


STT is levied on the 'taxable amount'‘taxable amount’ of a security. The taxable amount of a listed security is the greater of the consideration for the security declared by the transferee or the closing price of that security as traded on the stock exchange concerned. InThe person to whom the case of a transfer of a listed security eitheris transferred is liable for payment of the STT, and such tax must be paid through the member or the participant holding the security in custody, or where the listed security is not held in custody, the company that issued the



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listed security. The tax so payable may be recovered from the person to whom the security is liable for the tax.transferred. The tax must be paid by the fourteenth day of the month following the month during which the transfer occurred.


Withholding tax on interest


Generally, a 15 percent withholding tax may apply to the payments of interest. Under the US/SA Double Taxation Treaty, withholding is reduced to zero percent provided the interest is derived and beneficially owned by a resident of the United States.States will be taxable only in the United States (and therefore not subject to interest withholding tax in South Africa), subject to certain exclusions.


Value-Added Tax


The issue or transfer of shares is not a taxable supply for value-added tax (“VAT”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
▪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



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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
▪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 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



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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
▪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 20192021 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
▪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
▪Information with respect to foreign financial assets
Individuals that own “specified foreign financial assets” with an aggregate value in excess of $50,000 are generally required to file information reports with respect to such assets with their U.S. federal income tax returns. Depending on the individual’s circumstances, higher threshold amounts may apply. “Specified foreign financial assets” include any financial accounts maintained by foreign financial institutions, as well as any of the following, but only if they are not held in accounts maintained by financial institutions: (i) stocks and securities issued by foreign persons, (ii) financial instruments and contracts held for investment that have foreign issuers or counterparties and (iii) interests in foreign entities. Therefore, the shares may be treated as specified foreign financial assets. In such cases, certain US holders may be subject to this information reporting regime and be required to file IRS formForm 8938 listing these assets with their U.S. federal income tax returns. Failure to file information reports may subject a US holder to penalties. US holders are urged to consult their own tax advisors regarding their obligations to file information reports with respect to the shares.










10F.DIVIDENDS AND PAYING AGENTS



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10F.    DIVIDENDS AND PAYING AGENTS

Not applicable.












10G.STATEMENT BY EXPERTS

10G.    STATEMENT BY EXPERTS

Not applicable.












10H.Documents on Display


AngloGold Ashanti files annual reports on Form 20-F and reports on Form 6-K with the SEC. You may access this information at the SEC’s home page (http://www.sec.gov). Copies of the documents referred to herein may be inspected at AngloGold Ashanti’s offices by contacting AngloGold Ashanti at 76 Rahima Moosa Street, Newtown,112 Oxford Road, Houghton Estate, Johannesburg, 2001 (P.O. Box 62117, Marshalltown, 2107)2198 (Private Bag X 20, Rosebank, 2196) South Africa, Attention: Company Secretary, telephone number: +27 11 637 6000.


No material on the AngloGold Ashanti website forms any part of, or is incorporated by reference into, this annual report on Form 20-F. References herein to the company’s website shall not be deemed to cause such incorporation.





10I.SUBSIDIARY INFORMATION





10I.    SUBSIDIARY INFORMATION

Not applicable.




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ITEM 11: QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK


TREASURY POLICY


Risk management activities within the group are the ultimate responsibility of the board of directors.board. The Chief Financial Officer is responsible to the board of directors for the design, implementation and monitoring of the risk management plan. The Audit and Risk Committee is responsible for overseeing risk management plans and systems, as well as financial risks which include a review of treasury activities and exposure to the group’s counterparties.


Under the treasuryfinancial and risk management policy, hedges may be put in place once approved by the Board, using approved instruments over the group’s planned gold production and resultant gold sales and currency exposures. The tenor of the hedges may extend out to 10 years. The treasuryfinancial and risk management policy sets trading limits on the extent to which the hedge position may change for the various levels of treasury management from dealer, through treasurer, executive management team and board.board members.


The financial risk management activities objectives of the group are as follows:
•Safeguarding the group’s core earnings stream from its major assets through the effective control and management of gold and other commodity price risk, foreign exchange risk and interest rate risk;
•Effective and efficient usage of credit facilities in both the short- and long-term through the adoption of reliable liquidity management planning and procedures;
•Ensuring that investment and hedging transactions are undertaken with creditworthy counterparts; and
•Ensuring that all contracts and agreements related to financial risk management activities are co-ordinated and consistent throughout the group and comply where necessary with all relevant regulatory and statutory requirements.


Under the treasuryfinancial and risk management policy, treasury reports are produced at the following minimum intervals for review by management and the board of directors.

directors:
•DailyTreasurerTreasury Manager
•MonthlyWeeklyExecutive CommitteeTreasurer
•QuarterlyMonthlyTreasurer
•QuarterlyAudit and Risk Committee and Board of Directors
•Half-yearlyAudit and Risk Committee, 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.


As at 31 December 2019,2021, the group had no commitments against future production potentially settled in cash.

In January 2020, AGA entered into Asian style zero-cost collars for a total of 130,900 ounces ( i.e. 70% of Argentina’s annual gold production) for the period February 2020 to December 2020. The strike prices are $1,500 per ounce on the floor and an average price of $1,701.34 per ounce on the cap.


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 20192021 and 2018,2020, the group had no open forward exchange or currency option contracts in its currency hedge position.









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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 2019 (2018:2021 (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
2019201820212020
Maturity dateCurrency
Fixed rate
investment
amount
(million)

 
Effective
rate %
 
Floating rate
investment
amount
(million)

 
Effective
rate %
Fixed rate
investment
amount
(million)

 
Effective
rate %
 
Floating rate
investment
amount
(million)

 
Effective
rate %
Maturity dateCurrencyFixed rate
investment
amount
(million)		Effective
rate %		Floating rate
investment
amount
(million)		Effective
rate %		Fixed rate
investment
amount
(million)		Effective
rate %		Floating rate
investment
amount
(million)		Effective
rate %
All less than one year$21
 0.58 103
 1.09—
 — 131
 1.99All less than one year$1 — 301 0.10 — 572 0.15 
ZAR166
 6.56 25
 5.00121
 6.44 21
 5.25ZAR1,337 3.54 — — 2,611 3.30 29 2.00 
AUD—
 — 41
 0.23—
 — 52
 0.20AUD— 72 — — 50 — 
BRL—
 — 33
 5.94—
 — 64
 6.13BRL— 106 4.27 — 32 1.90 
ARS1,831
 35.00 81
 28.00—
 — —
 —ARS13,256 34.00 — 6,679 34.00 4,820 30.00 
CAD— 353 0.19 


Borrowings maturity profile
Within one yearBetween
One and two years		Between Two
and five years		After five yearsTotal
CurrencyBorrowings
amount
(million)		Effective
rate
%		Borrowings
amount
(million)		Effective
rate
%		Borrowings
amount
(million)		Effective
rate
%		Borrowings
amount
(million)		Effective
rate
%		Borrowings amount (million)
$51 7.4 — — 63 7.0 1,717 4.1 1,831 
AUD— — 43 1.5 — — — — 43 
BRL1 5.7 — — — — — — 1 
TZS516 12.5 — — 107,163 12.5 — — 107,679 
 Within one year 
Between
One and two years
Between Two
and five years
After five yearsTotal
Currency
Borrowings
amount
(million)

 
Effective
rate
%

 
Borrowings
amount
(million)

 
Effective
rate
%

Borrowings
amount
(million)

 
Effective
rate
%

Borrowings
amount
(million)

 
Effective
rate
%

Borrowings amount (million)
$731
 5.4
 65
 9.3
811
 5.5
291
 6.5
1,898
ZAR9
 8.2
 —
 —
999
 8.5
—
 —
1,008
BRL1
 3.2
 —
 —
1
 3.2
—
 —
2
AUD—
 —
 —
 —
22
 2.3
—
 —
2
TZS4,955
 12.5
 103,185
 12.5
—
 —
—
 —
108,140


The table above is based on the borrowings as at 31 December 20192021 including borrowing cost and accrued interest but excludes any fair value adjustments.






304

Interest rate risk
Fixed for less than one yearFixed for between one and three yearsFixed for greater than three years
CurrencyBorrowings
amount
(million)		Effective
rate
%		Borrowings
amount
(million)		Effective
rate
%		Borrowings
amount
(million)		Effective
rate
%		Total
Borrowings
amount
(million)
$51 7.4 63 7.0 1,717 4.1 1,831 
AUD— — 43 1.5 — — 43 
BRL1 5.7 — — — — 1 
TZS516 12.5 107,163 12.5— — 107,679 
  Fixed for less than one year Fixed for between one and three years Fixed for greater than three years  
Currency 
Borrowings
amount
(million)

 
Effective
rate
%

 
Borrowings
amount
(million)

 
Effective
rate
%
 
Borrowings
amount
(million)

 
Effective
rate
%

 
Total
Borrowings
amount
(million)

$ 731
 5.4
 811
 5.5 356
 5.3
 1,898
ZAR 9
 8.2
 999
 8.5 —
 —
 1,008
BRL 1
 3.2
 1
 3.2 —
 —
 2
AUD —
 —
 —
 — 22
 2.3
 22
TZS 4,955
 12.5
 103,185
 12.5 —
 —
 108,140


The table above is based on the borrowings as at 31 December 20192021 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 $644$1,300 million in 20192021 for financial assets (2018: $495(2020: $1,500 million) and nil million for financial guarantees (2018:(2020: nil). Credit risk exposure netted by open derivative positions with counterparts was nil (2018:(2020: nil). No set-off is applied to balance sheet amounts due to the different maturity profiles of assets and liabilities.


Fair value of financial instruments


The estimated fair values of financial instruments are determined at discrete points in time based on relevant market information. The estimated fair values of the group’s financial instruments, as measured at 31 December, are as follows (assets (liabilities)):

20212020
Carrying
Amount		Fair
value		Carrying
Amount		Fair
value
(millions)$$$$
Cash and cash equivalents1,154 1,154 1,330 1,330 
Restricted cash58 58 73 73 
Deferred compensation asset25 25 28 28 
Short-term borrowings(51)(51)(142)(142)
Long-term borrowings(1,858)(1,960)(1,789)(1,989)
Listed investments - FVTOCI116 116 186 186 
Listed and unlisted investments1 1 2 2 
  2019 2018
  
Carrying
Amount

 
Fair
value

 
Carrying
Amount

 
Fair
value

(millions) $
 $
 $
 $
Cash and cash equivalents 456
 456
 329
 329
Restricted cash 64
 64
 66
 66
Short-term borrowings (734) (741) (139) (139)
Long-term borrowings (1,299) (1,394) (1,911) (1,945)
Listed investments - FVTPL 21
 21
 19
 19
Listed investments - FVTOCI 82
 82
 69
 69
Listed and unlisted investments - held to maturity 67
 67
 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.


Investments and other non-current assetsOther investments


Listed equity investments classified as FVTOCI and FVTPL are carried at fair value while fixed income investments and other non-current assets are carried at amortised cost. Thein level 1 of the fair value of fixed income investments and other non-current assets has been calculated using market interest rates. The unlisted equity investments are carried at cost.hierarchy.







305

Borrowings


The interest rate on borrowings is reset on a short-term floating rate basis, and accordingly the carrying amount is considered to approximate fair value.


Derivatives


The fair values of volatility-based instruments (i.e. options) are estimated based on market prices, volatilities, credit risk and interest rates for the periods under review.



Gain (loss) on non-hedge derivatives and other commodity contracts recognised
Year ended 31 December
20212020
(millions)$$
Other commodity contracts(1)
— (19)
 Year ended 31 December
 2019
 2018
(millions)$ $
Unrealised   
Other commodity contracts(1)
8
 2


(1)    Excluding the commodity contracts transferred to held for sale liabilities in 2020.
(1)
Included in other commodity contracts are amounts transferred to held for sale liabilities.


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 20192021 (actual changes in the timing and amount of the following variables may differ from the assumed changes below).
20192021
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)(5(5))
AUD denominated (AUD/$)Spot (+AUD0.1)(1(2))
20192021
Change in

exchange rate
Change in

borrowings

Total

$M
Debt
ZAR denominated (R/$)Spot (-R1.50)9
TZS denominated (TZS/$)Spot (-TZS250)6
AUD denominated (AUD/$)Spot (-AUD0.1)12 





306

ITEM 12:    DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES




12A.DEBT SECURITIES

12A.    DEBT SECURITIES

Not applicable





12B.    WARRANTS AND RIGHTS
12B.WARRANTS AND RIGHTS


Not applicable




12C.OTHER SECURITIES

12C.    OTHER SECURITIES

Not applicable




12D.AMERICAN DEPOSITARY SHARES

12D.3.DEPOSITARY FEES AND CHARGES

12D.    AMERICAN DEPOSITARY SHARES



12D.3.    DEPOSITARY FEES AND CHARGES


AngloGold Ashanti’s American Depositary Shares, or ADSs, each representing one of AngloGold Ashanti’s ordinary shares, are traded on the New York Stock Exchange under the symbol “AU.” The ADSs are evidenced by American Depositary Receipts, or ADRs, issued by The Bank of New York Mellon, as Depositary under the Amended and Restated Deposit Agreement dated as of 3 June 2008, among AngloGold Ashanti Limited, The Bank of New York Mellon and owners and beneficial owners of from time to time of ADRs. ADS holders may have to pay the following service fees to the Depositary:

ServiceFees (USD)
Issuance of ADSsUp to 5 cents per ADS
(1)
Cancellation of ADSsUp to 5 cents per ADS
(1)
Distribution of cash dividends or other cash distributionsUp to 2 cents per ADS
(2)
Distribution of securities pursuant to
(i) stock dividends, free stock distributions or
(ii) exercises of rights to purchase additional ADSsUp to 5 cents per ADS
(2)
ADR Depositary Services feeUp to 2 cents per year
(2)
(1)
These fees are typically paid to the Depositary by the brokers on behalf of their clients receiving the newly-issued ADSs from the Depositary and by the brokers on behalf of their clients delivering the ADSs to the Depositary for cancellation. The brokers in turn charge these transaction fees to their clients.
(2)
In practice, the Depositary has not collected these fees. If collected, such fees are offset against the related distribution made to the ADR holder.

(1)These fees are typically paid to the Depositary by the brokers on behalf of their clients receiving the newly-issued ADSs from the Depositary and by the brokers on behalf of their clients delivering the ADSs to the Depositary for cancellation. The brokers in turn charge these transaction fees to their clients.
(2)In practice, the Depositary has not collected these fees. If collected, such fees are offset against the related distribution made to the ADR holder.

In addition, ADS holders are responsible for certain fees and expenses incurred by the Depositary on their behalf including (1) taxes and other governmental charges, (2) such registration fees as may from time to time be in effect for the registration of transfers of ordinary shares generally on the share register and applicable to transfers of ordinary shares to the name of the Depositary or its nominee or the Custodian or its nominee on the making of deposits or withdrawals, and (3) such cable, telex and facsimile transmission expenses as are expressly incurred by the Depositary in the conversion of foreign currency.


Fees and other charges payable by the Depositary, any of the Depositary’s agents, including the Custodian, or the agents of the Depositary’s agents in connection with the servicing of Shares or other Deposited Securities, shall be collected at the sole discretion of the Depositary by billing such owners for such charge or by deducting such charge from one or more cash dividends or other cash distributions.


For further information, refer to “Item 10C: Material Contracts - Contracts—The Deposit Agreement”.



12D.4.    DEPOSITARY PAYMENTS FOR 2021
12D.4.DEPOSITARY PAYMENTS FOR 2019


For the year ended 31 December 2019,2021, The Bank of New York Mellon, as Depositary, reimbursed AngloGold Ashanti an amount of $1,097,316.10 (2018: $557,454)$1,083,405 (2020: $1,057,722) mainly for investor relations related expenses.








307

PART II
ITEM 13:DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES

ITEM 13:    DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES

None.




308

ITEM 14:    MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS


None.






309

ITEM 15: CONTROLS AND PROCEDURES


(a)
Disclosure Controls and Procedures: As of 31 December 2019, (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: 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.

(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 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 20192021 that have materially affected, or are reasonably likely to materially affect, the company’s internal control over financial reporting.


See Item 3D,also “Item 3D: Risk Factors, of this annual report on Form 20F for risk factors relatedFactors—AngloGold Ashanti’s inability to maintainingmaintain an effective system of internal control over financial reporting.reporting may have an adverse effect on investors’ confidence in the reliability of its financial statements.”

(d)
Attestation Report of the Registered Public Accounting Firm: The Company’s independent registered accounting firm, Ernst & Young Inc., has issued an attestation report on the effectiveness of the company’s internal control over financial reporting. This report appears below.



(d)    Attestation Report of the Registered Public Accounting Firm: The Company’s independent registered accounting firm, Ernst & Young Inc., has issued an attestation report on the effectiveness of the company’s internal control over financial reporting. This report appears below.



/s/ KC Ramon
Kandimathie Christine Ramon
Chief Financial Officer




/s/ KPM DushniskyA Calderon
Kelvin Paul Michael DushniskyAlberto Calderon
Chief Executive Officer









310






REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM


TheTo the Shareholders and the Board of Directors and Shareholders of AngloGold Ashanti Limited


Opinion on Internal Control over Financial Reporting


We have audited AngloGold Ashanti Limited’s (the “Company”) internal control over financial reporting as of 31 December 2019,2021, 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 2019,2021, 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 2019, 20182021, 2020 and 2017,2019, 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 2019,2021, and the related notes and our report dated 2729 March 20202022 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
2729 March 20202022






ITEM 16A:AUDIT COMMITTEE FINANCIAL EXPERT



311

ITEM 16A:    AUDIT COMMITTEE FINANCIAL EXPERT

Membership of the Audit and Risk Committee, including its chairman, comprises only independent non-executive directors, in compliance with the Sarbanes-Oxley Act. This also fulfils the guidelines of King IV, which became effective 1 November 2016, and the requirements of the SA Companies Act, of 2008, which became effective on 1 May 2011. The Sarbanes-Oxley Act requires the board to identify a financial expert from within its ranks. The board has resolved that Mr Rhidwaan GasantMr. Alan Ferguson is the Audit and Risk Committee'sCommittee’s financial expert. Individually, the remaining members of the committeeAudit and Risk Committee have considerable knowledge and experience in associated areas such as audit, risk and corporate governance to help oversee and guide the board and the company.






ITEM 16B:CODE OF ETHICS AND WHISTLE-BLOWING POLICIES




312

ITEM 16B:    CODE OF ETHICS AND WHISTLE-BLOWING POLICIES

In order to comply with the company'scompany’s obligation in terms of the Sarbanes-Oxley Act and King IV, and in the interests of good governance, the company has systems and procedures to introduce, monitor and enforce its ethical codes and has adopted a code of business principles and ethics for employees and directors, a code of ethics for the Chief Executive Officer, Chief Financial Officer and Senior Financial Officers, and a whistle-blowing policy that encourages employees to report anonymously if they wish and without fear of retaliation acts of an unethical or illegal nature that affect the company'scompany’s interests. The code of business principles and ethics expresses the company’s commitment to the conduct of its business in line with ethical standards and is designed to enable employees and directors to perform their roles and duties with integrity and responsibility.


The whistle-blowing policy provides channels for employees to report acts and practices that are in conflict with the company’s code of business principles and ethics or are unlawful, including financial malpractice or dangers to the public or the environment. Reports may be made to management or through several mediums including the intranet, internet, telephone, short messaging system (sms), fax and post. All reports not made to management are administered by a third party, Tip-Offs Anonymous, to ensure independence of the process. Reported cases are relayed to management through group compliance and group internal audit.compliance. A report is provided by group compliance and group internal audit to the Serious Concerns Committee, a management committee, on a quarterly basis as well as the Social, Ethics and Sustainability Committee and the Audit and Risk Committee on a quarterly basis. Reporters have the option to request feedback on reported cases. The whistle-blowing policy encourages reports to be made in good faith in a responsible and ethical manner. Employees are encouraged to first seek resolution of alleged malpractices through discussion with their direct managers, if appropriate, or other management including legal, compliance, human resources or internal audit.


The code of business principles and ethics for employees and directors and the code of ethics for the Chief Executive Officer, Chief Financial Officer and Senior Financial Officers are available on the company’s website at https://www.anglogoldashanti.com/company/governance/.








ITEM 16C:PRINCIPAL ACCOUNTANT FEES AND SERVICES



313

ITEM 16C:    PRINCIPAL ACCOUNTANT FEES AND SERVICES

Ernst & Young Inc. has served as AngloGold Ashanti’s independent publicprincipal accountants for each of the financial years in the three-year period ended 31 December 2019,2021, 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 20192021 and 2018.2020.
2019
 2018
20212020
(in millions)$
 $
(in millions)$$
Audit fees(1)
5.77
 5.96
Audit fees(1)
5.87 6.02 
Audit-related fees(2)
1.14
 0.76
Audit-related fees(2)
2.10 1.80 
Tax fees(3)
0.07
 0.18
Tax fees(3)
0.03 0.32 
All other fees(4)
0.09
 0.02
All other fees(4)
0.01 0.01 
Total7.07
 6.92
Total8.01 8.15 
Rounding may result in computational differences.
(1)
The Audit fees consist of fees billed for the annual audit services engagement and other audit services, which are those services that only the external auditor reasonably can provide, and include the Company audit; statutory audits; attest services; and assistance with and review of documents filed with the SEC.
(2)
Audit-related fees consist of fees billed for assurance and related services.
(3)
Tax fees include fees billed for tax advice and tax compliance services.
(4)
All other fees include non-audit services.

(1)    The Audit fees consist of fees billed for the annual audit services engagement and other audit services, which are those services that only the external auditor reasonably can provide, and include the Company audit; statutory audits; attest services; and assistance with and review of documents filed with the SEC.
(2)    Audit-related fees consist of fees billed for assurance and related services.
(3)    Tax fees include fees billed for tax advice and tax compliance services.
(4)    All other fees include non-audit services.

Audit and Risk Committee Pre-approval Policies and Procedures


It is the policy of AngloGold Ashanti to maintain compliance with the requirements of the various applicable legislation and good governance practices when appointing or assigning work to the Company’s external auditor. Non-audit services may not be undertaken without an employee of AngloGold Ashanti obtaining the pre-approval of the Audit and Risk Committee as is laid out in the procedures relating to the pre-approval process.


The Audit and Risk Committee has delegated the approval authority to the chairman of the committee, Mr. Rhidwaan GasantAlan Ferguson or his designated official. The approval may take the form of a written or oral instruction, and in the case of an oral instruction this would be ratified at the next Audit and Risk Committee meeting. On a half 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 20192021 were reviewed and approved according to the procedures above. None of the services provided during 20192021 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 2019.2021.

ITEM 16F:    CHANGE IN REGISTRANT’S CERTIFYING ACCOUNTANT


Not applicable.On 19 November 2021, PwC was appointed by the AngloGold Ashanti Limited’s Board of Directors as the Company’s independent principal accountants for the financial year ending 31 December 2023 (subject to shareholder approval), after a formal tender process to appoint a new independent registered public accounting firm. Ernst & Young Inc. (EY) will resign as independent principal accountants of the group on conclusion of its responsibilities relating to the 31 December 2022 financial year audit, which is expected to conclude during April 2023.

ITEM 16G:CORPORATE GOVERNANCE

The reports of EY on the Company’s consolidated financial statements for the past two fiscal years did not contain an adverse opinion or a disclaimer of opinion, and were not qualified or modified as to uncertainty, audit scope, or accounting principles. In connection with the audits of the Company’s financial statements for each of the two fiscal years ended 31 December 2021, there were (i) no disagreements with EY, as that term is used in Item 16F(a)(1)(iv) of Form 20-F over any matters of accounting principles or practices, financial statement disclosure, or auditing scope or procedures, which, if not resolved to the satisfaction of EY, would have caused EY to make reference to the matter in their report and (ii) there were no “reportable events” as defined in Item 16F(a)(1)(v) of Form 20-F.

AngloGold Ashanti has provided EY with a copy of the foregoing disclosure and has requested EY to provide it with a letter addressed to the SEC stating whether or not EY agrees with the above statements. A copy of such letter, dated 29 March 2022, in which EY state they agree with such disclosure, is filed as an exhibit to this annual report on Form 20-F, see “Item 19: Exhibits



314

—Exhibit 19.15.21 "Letter from Ernst & Young Inc. to the Securities and Exchange Commission regarding a change in registrant's certifying accountant”.


ITEM 16G:    CORPORATE GOVERNANCE

AngloGold Ashanti’s corporate governance practices do notare regulated by the JSE Listings Requirements. The following is a summary of the significant ways in which South Africa’s corporate governance standards which are followed by AngloGold Ashanti differ in any significant way from those followed by US domestic companies under the New York Stock Exchange’s NYSE Listing Standards. At this time, as described further below, AngloGold Ashanti complies with all of the NYSE Listing Standards as well as the JSE Listings Requirements.

The NYSE Listing Standards require that non-management directors of US-listed companies meet at regularly scheduled executive sessions without management. The JSE Listings Requirements do not require such meetings of listed company non-executive directors. However, management is invited to attend the executive section of board meetings.

The NYSE Listing Standards require US-listed companies to have a nominating/corporate governance listing standards.committee composed entirely of independent directors. The JSE Listings Requirements do not require such a committee but AngloGold Ashanti currently has a Nominations and Governance Committee composed of six non-executive directors, all of whom are independent under the JSE Listings Requirements and NYSE Listing Standards. The Nominations and Governance Committee is chaired by the Chairman of the AngloGold Ashanti Board.


The NYSE Listing Standards also require US-listed companies to have a compensation committee composed entirely of independent directors. The JSE Listings Requirements merely require that boards have such a committee but not that its members be independent. AngloGold Ashanti has appointed a Remuneration and Human Resources Committee, currently comprised of four non-executive directors, all of whom are independent under the JSE Listings Requirements and NYSE Listing Standards.
ITEM 16H:MINE SAFETY DISCLOSURE


The NYSE Listings Standards require US-listed companies to have an audit committee composed entirely of independent directors. The SA Companies Act requires that the members of the Audit Committee be approved by shareholders on an annual basis at a company’s annual general meeting. Both the SA Companies Act and the JSE Listings Requirements require that the audit committee be composed entirely of independent directors. AngloGold Ashanti has appointed an Audit and Risk Committee, currently comprising five non-executive directors, all of whom are independent, as defined under the SA Companies Act, the JSE Listings Requirements and the NYSE Listing Standards.

The SA Companies Act and the JSE Listings Requirements require the appointment of a Social and Ethics Committee, and AngloGold Ashanti has appointed a Social, Ethics and Sustainability Committee, comprising independent non-executive directors.






ITEM 16H:    MINE SAFETY DISCLOSURE

Not applicable.


ITEM 16I:        DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT
INSPECTIONS

Not applicable.



315

PART III
ITEM 17:FINANCIAL STATEMENTS

ITEM 17:    FINANCIAL STATEMENTS

Not applicable.


ITEM 18:FINANCIAL STATEMENTS



316

ITEM 18:    FINANCIAL STATEMENTS

The consolidated financial statements for the year ended 31 December 20192021 were authorised for issue by the Board of Directors on 2729 March 20202022 and were signed on its behalf by Kelvin Paul Michael Dushnisky, Chief Executive Officer, Kandimathie Christine Ramon, Chief Financial Officer, Sipho M. Pityana, ChairmanMaria DC Ramos, Chairperson of the Board of Directors, and Rhidwaan Gasant, ChairmanAlan Ferguson, Chairperson of the Audit and Risk Committee.



The report of independent registered public accounting firm Ernst & Young Inc. Johannesburg, Republic of South Africa (PCAOB ID # 1698) is included in Item 18.

F - 1

Report of independent registered public accounting firm


To the shareholders and the board of directors of AngloGold Ashanti Limited


Opinion on the Financial Statements


We have audited the accompanying consolidated statement of financial position of AngloGold Ashanti Limited (“the Company”) as of 31 December 2019, 20182021, 2020 and 2017,2019, 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 2019,2021, 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 2019, 2018,2021, 2020 and 2017,2019, and the results of its operations and its cash flows for each of the three years in the period ended 31 December 2019,2021, 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 $1,506$1,604 million, $1,439$1,604 million and $1,423$1,506 million as of 31 December 2021, 2020 and 2019, 2018respectively, and 2017, respectively, the Company’s equity in the net income of Kibali was stated at $231 million in 2021, $238 million in 2020 and, $143 million in 2019, $104 million in 2018 and, $9 million in 2017.2019. 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 2019,2021, 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 2729 March 20202022 expressed an unqualified opinion thereon.
Basis for Opinion


These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the U.S. Securities and Exchange Commission and the PCAOB.


We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits and the report of other auditors provide a reasonable basis for our opinion.


Critical Audit Matters


The critical audit matters communicated below are matters arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.



F - 2


Description of the
Matter		Geita VAT recoverability
AtAs disclosed in Note 1.2 and Note 20 to the consolidated financial statements, at 31 December 2019,2021, the Company’s Geita mine has recorded $119$187 million of VAT receivables due from the Tanzanian Revenue Authority (TRA). $35 million has been classified as current assets, and the remaining $84 million is classified as non-current assets based on management’s estimate of when the Geita mine will be able to offset the VAT receivables with future taxes.
As disclosed in note 22 to the consolidated financial statements, an

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 Tanzania Revenue Authorities.TRA. In the current year,2019, an amendment issued by the Tanzanian Ministry of Minerals, effective 22 February 2019, provided clarity on the definition of raw minerals. This amendment hasThe Finance Amendment act became effective from 1 July 2020 which deleted the disqualification of Input VAT claims. The change is not yet been accepted by the Tanzanian Revenue Authorities, resulting inretrospective and therefore VAT input claims and offsets from 2017 still not being allowed. The total of VAT input claims submitted since July 2017 is $134 million.
Auditingto June 2020 remain disallowed. Further correspondence was received from the recoverabilityTRA 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 these receivables involved significant judgementour tax specialists, was required in assessing whether the TRA will acceptapply 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 assessingrequired significant auditor judgement. This is because the timing and likelihood of whenVAT offsetting needs to consider factors such as the VAT receivable balance will be recovered. As a result, we required the involvement of our tax specialist,ongoing correspondence and a significant amount of time was spent in assessing the position put forward by management and their external legal counsel whilst considering correspondencemeetings with the TRA receivedTanzanian authorities and the experience to date.
date of offsetting VAT against income taxes. In addition, the ability to offset VAT depends on forecasts of Geita’s available taxable income, which includes judgments around Geita’s business plan.
How We Addressed the Matter in Our AuditOur procedures to address this matter included, amongstamong others, obtaining an understanding, evaluating the design and testing the operating effectiveness of certain internal 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 the TRA and the Mining Commission,Tanzanian authorities, including correspondence related to the tax returns and assessments received during the year. We readperiod 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 set-offs in this manner. 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 with specialised skills and knowledge 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 priorin the period July 2017 to July 2017. 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 classificationreasonableness of management’s assumptions by performing a sensitivity analysis using alternative probability weighted discounting scenarios.

F - 3


Description of the
Matter		Environmental rehabilitation obligations
At 31 December 2021 the VAT receivables as current or non-current, based on management’s estimated scheduling of setting offprovision for decommissioning and the VAT receivables. This scheduling is based on management’s forecasts of available taxable income against which set offs can be made. We evaluated the VAT receivable disclosureprovision for restoration in aggregate amounted to $673 million in the consolidated financial statements.
Description of the MatterRehabilitation and decommissioning provision
At 31 December 2019 the rehabilitation and decommissioning provision amounted to $730 million ($619 million classified as non-current liabilities, $15 million classified as current liabilities and $96 million transferred to assets and liabilities held for sale).
The Company incurs obligations to close, restore and rehabilitate its mine sites. Auditing the Company’s rehabilitation and decommissioning provision iswas 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. For instance, incertainty and thus requires specific focus each year and the current year the Brazilian Mining Agency issued Resolution 13, which states that tailings storage facilities (TSF) that were built basedinvolvement of specialists on the upstream method should be decommissioned by 15 September 2022. The Serra Grande mine in Brazil has one upstream TSF that was impacted by this change in legislation, resulting in an increase in the provision.our team.

The consolidated disclosures are included in Note 27 Environmental rehabilitation and other provisions,1.2 and Note 30 Trade, other payables and provisions25 to the consolidated financial statements.
How We Addressed the Matter in Our Audit
Our procedures to address this matter included, amongstamong 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 disturbancedamage 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’s external and internal experts. management.

We, together with our environmental specialists, evaluated the reports prepared by management’s internal experts and external experts, where these had been engaged by management to assist in the calculation of the provision. We, together with our specialists, evaluated the scope, competency and objectivity of the external experts engaged by management, including their professional qualifications, experience, and use of industry accepted methodology. We evaluated the related disclosures in the consolidated financial statements.



Description of the MatterPlanned disposal of the South African Assets
On 9 May 2019, management announced that it had commenced a process to review divestment options for its remaining South African assets.
Management performed an assessment of whether the planned disposal of the remaining South African assets met the requirements of IFRS 5 Non-current Assets Held for Sale and Discontinued Operations. The application of IFRS 5 is subjective, particularly in determining whether the completion of the sale is highly probable within 12 months. Management has concluded that this threshold was met at 31 December 2019. On 12 February 2020, prior to the release of the annual financial statements, management announced that a sale and purchase agreement for disposal of the South African assets was signed. Disclosure of this post balance sheet event is included in Note 37 to the consolidated financial statements.
The planned disposal of the remaining South African assets represents a significant change to the composition of the Company’s South African operations, resulting in these assets being reflected as discontinued operations. The results of these businesses and operations, including the adjustment of the carrying value to fair value less cost to sell have been separately presented from continuing operations in the income statement with comparative numbers restated accordingly.
Auditing management’s assessment of IFRS 5 is subjective. In addition, the accounting for discontinued operations is complex in terms of the identification and separation of the financial effects (related income and expenditure) between continuing and discontinued operations, as well as identifying the specific assets and liabilities, including the tax effects, included within the scope of the divestiture.
The disclosures of this matter are included in Note 9 to the consolidated financial statements.
How We Addressed the Matter in Our Audit
Our procedures to address this matter included, amongst others, obtaining an understanding, evaluating the design and testing the operating effectiveness of controls over the Company’s processes to approve and account for the transaction including separation of financial items between discontinued and continued operations.
Through discussions with management and inspection of minutes of meetings, we assessed management’s plans to dispose of the remaining South African assets. We inquired into the status of the transaction at year-end, read the offer agreements from potential buyers and considered whether the then conditions, including ongoing sales negotiations, met the ‘highly probable’ threshold of IFRS 5 Non-Current Assets Held for Sale and Discontinued Operations at year-end.
We considered management’s estimate of fair value less costs to sell, including the determination of the deferred consideration component, which included assessing the key assumptions applied and evaluating the explanations provided by management through comparing the key assumptions to market data, where available. For example, we compared the future production volumes to the mine plans and involved our specialists to assist with assessing the discount rate applied by management.
We assessed management’s accounting policies and procedures for accounting for discontinued operations under IFRS 5. We considered management’s determination of the operations that should be separated and presented as discontinued operations and compared the assets and liabilities that were reclassified as held for sale to those listed in the sales and purchase agreement. We considered the impact of current and deferred taxes as it relates to the planned disposal and reclassification of the assets and liabilities.
We evaluated the adequacy of the disclosures in the consolidated financial statements, including the disclosure of the post-balance sheet events.





/s/Ernst & Young Inc.

We have served as the Company’s auditor since 1944
Johannesburg, Republic of South Africa
2729 March 20202022







F - 4


PAGE LEFT BLANK INTENTIONALLY



F - 5

ANGLOGOLD ASHANTI LIMITED
Group – income statement
FOR THE YEARS ENDED December 31, DECEMBER2021, 2020 and 20192018 and 2017
202120202019
Figures in millionsNotes
US Dollars
Continuing operations
Revenue from product sales34,029 4,427 3,525 
Cost of sales4(2,857)(2,699)(2,626)
(Loss) gain on non-hedge derivatives and other commodity contracts— (19)5 
Gross profit21,172 1,709 904 
Corporate administration, marketing and related expenses(73)(68)(82)
Exploration and evaluation costs(164)(124)(112)
Impairment, derecognition of assets and profit (loss) on disposal11 (1)(6)
Other (expenses) income5(136)(57)(83)
Operating profit810 1,459 621 
Interest income58 27 14 
Dividend received— 2 — 
Foreign exchange and fair value adjustments(43)— (12)
Finance costs and unwinding of obligations6(116)(177)(172)
Share of associates and joint ventures’ profit7249 278 168 
Profit before taxation958 1,589 619 
Taxation10(312)(625)(250)
Profit after taxation from continuing operations646 964 369 
Discontinued operations
Profit (loss) from discontinued operations— 7 (376)
Profit (loss) for the year646 971 (7)
Allocated as follows:
Equity shareholders
- Continuing operations622 946 364 
- Discontinued operations— 7 (376)
Non-controlling interests
- Continuing operations24 18 5 
646 971 (7)
Basic earnings (loss) per ordinary share (cents)11148 227 (3)
Earnings per ordinary share from continuing operations148 225 87 
Earnings (loss) per ordinary share from discontinued operations— 2 (90)
Diluted earnings (loss) per ordinary share (cents)11148 227 (3)
Earnings per ordinary share from continuing operations148 225 87 
Earnings (loss) per ordinary share from discontinued operations— 2 (90)

F - 6
  2019
 2018
 2017
Figures in millionsNotes  Restated
 Restated
  US Dollars
Continuing operations      
Revenue from product sales33,525

3,336

3,394
Cost of sales4(2,626)
(2,584)
(2,607)
Gain (loss) on non-hedge derivatives and other commodity contracts 5

(2)
—
Gross profit (loss)2904
 750
 787
Corporate administration, marketing and other expenses5(82) (76) (64)
Exploration and evaluation costs (112) (98) (105)
Impairment, derecognition of assets and profit (loss) on disposal (6) (7) (2)
Other expenses (income)6(83) (79) (150)
Operating profit (loss) 621
 490
 466
Interest income 14
 8
 8
Dividend received —
 2
 —
Foreign exchange losses (12) (9) (11)
Finance costs and unwinding of obligations7(172) (168) (157)
Share of associates and joint ventures’ profit (loss)8168
 122
 22
Profit (loss) before taxation 619
 445
 328
Taxation12(250) (212) (163)
Profit (loss) after taxation from continuing operations 369
 233
 165
Discontinued operations      
Profit (loss) from discontinued operations9(376) (83) (336)
Profit (loss) for the year (7) 150
 (171)
       
Allocated as follows:      
Equity shareholders      
- Continuing operations 364
 216
 145
- Discontinued operations (376) (83) (336)
Non-controlling interests      
- Continuing operations 5
 17
 20
  (7) 150
 (171)
       
Basic earnings (loss) per ordinary share (cents)13(3) 32
 (46)
Earnings (loss) per ordinary share from continuing operations 87
 52
 35
(Loss) earnings per ordinary share from discontinued operations (90) (20) (81)
       
Diluted earnings (loss) per ordinary share (cents)13(3) 32
 (46)
Earnings (loss) per ordinary share from continuing operations 87
 52
 35
(Loss) earnings per ordinary share from discontinued operations (90) (20) (81)
       



ANGLOGOLD ASHANTI LIMITED
Group – statement of comprehensive income
FOR THE YEARS ENDED December 31, DECEMBER2021, 2020 and 2019 2018 and 2017
Figures in millions202120202019
US Dollars
Profit (loss) for the year646 971 (7)
Items that will be reclassified subsequently to profit or loss:(22)38 — 
Exchange differences on translation of foreign operations(22)38 — 
Items that will not be reclassified subsequently to profit or loss:(83)86 14 
Exchange differences on translation of non-foreign operations(3)(16)4 
Net (loss) gain on equity investments(73)98 6 
Actuarial (loss) gain recognised(1)10 2 
Deferred taxation thereon(6)(6)2 
Other comprehensive (loss) income for the year, net of tax(105)124 14 
Total comprehensive income for the year, net of tax541 1,095 7 
Allocated as follows:
Equity shareholders
- Continuing operations517 1,121 378 
 - Discontinued operations— (44)(376)
Non-controlling interests
- Continuing operations24 18 5 
541 1,095 7 

F - 7
Figures in millions 2019
 2018
 2017
 
    Restated
 Restated
 
  US Dollars 
Profit (loss) for the year (7) 150
 (171) 
        
Items that will be reclassified subsequently to profit or loss: 4
 (150) 148
 
Exchange differences on translation of foreign operations 4
 (150) 123
 
Available-for-sale financial assets     25
 
Net gain (loss) on available-for-sale financial assets 

   20
 
Release on impairment of available-for-sale financial assets     3
 
Release on disposal of available-for-sale financial assets     (6) 
Deferred taxation thereon     8
 
        
Items that will not be reclassified subsequently to profit or loss: 10
 9
 6
 
Net gain (loss) on equity investments 6
 9
 

 
Actuarial gain (loss) recognised 2
 5
 8
 
Deferred taxation thereon 2
 (5) (2) 
        
Other comprehensive income (loss) for the year, net of tax 14
 (141) 154
 
        
Total comprehensive income (loss) for the year, net of tax 7
 9
 (17) 
        
Allocated as follows:       
Equity shareholders       
- Continuing operations 378
 75
 299
 
- Discontinued operations (376) (83) (336) 
Non-controlling interests       
- Continuing operations 5
 17
 20
 
  7
 9
 (17) 



ANGLOGOLD ASHANTI LIMITED
Group – statement of financial position
AS AT December 31, DECEMBER2021, 2020 and 2019 2018 and 2017
Figures in millionsNotes202120202019
US Dollars
ASSETS
Non-current assets
Tangible assets133,460 2,884 2,592 
Right of use assets14175 142 158 
Intangible assets15122 131 123 
Investments in associates and joint ventures171,647 1,651 1,581 
Other investments18117 188 76 
Inventories1927 69 93 
Trade, other receivables and other assets20237 235 122 
Deferred taxation277 7 105 
Cash restricted for use2132 31 31 
5,824 5,338 4,881 
Current assets
Other investments18— — 10 
Inventories19703 733 632 
Trade, other receivables and other assets20260 229 250 
Cash restricted for use2126 42 33 
Cash and cash equivalents221,154 1,330 456 
2,143 2,334 1,381 
Assets held for sale— — 601 
2,143 2,334 1,982 
Total assets7,967 7,672 6,863 
EQUITY AND LIABILITIES
Share capital and premium237,223 7,214 7,199 
Accumulated losses and other reserves(3,214)(3,519)(4,559)
Shareholders’ equity4,009 3,695 2,640 
Non-controlling interests52 45 36 
Total equity4,061 3,740 2,676 
Non-current liabilities
Borrowings241,858 1,789 1,299 
Lease liabilities14124 116 126 
Environmental rehabilitation and other provisions25729 731 697 
Provision for pension and post-retirement benefits2677 83 100 
Trade, other payables and provisions287 8 15 
Deferred taxation27313 246 241 
3,108 2,973 2,478 
Current liabilities
Borrowings2451 142 734 
Lease liabilities1461 37 45 
Trade, other payables and provisions28647 627 586 
Taxation2939 153 72 
798 959 1,437 
Liabilities held for sale— — 272 
798 959 1,709 
Total liabilities3,906 3,932 4,187 
Total equity and liabilities7,967 7,672 6,863 

F - 8
Figures in millionsNotes2019
 2018
 2017
  US Dollars
ASSETS      
Non-current assets      
Tangible assets152,592
 3,381
 3,742
Right of use assets16158
    
Intangible assets17123
 123
 138
Investments in associates and joint ventures191,581
 1,528
 1,507
Other investments2076
 141
 131
Inventories2193
 106
 100
Trade, other receivables and other assets22122
 102
 67
Deferred taxation29105
 —
 4
Cash restricted for use2331
 35
 37
  4,881
 5,416
 5,726
Current assets      
Other investments2010
 6
 7
Inventories21632
 652
 683
Trade, other receivables and other assets22250
 209
 222
Cash restricted for use2333
 31
 28
Cash and cash equivalents24456
 329
 205
  1,381
 1,227
 1,145
Assets held for sale9601
 —
 348
  1,982

1,227

1,493
       
Total assets 6,863

6,643

7,219
EQUITY AND LIABILITIES      
Share capital and premium257,199
 7,171
 7,134
Accumulated losses and other reserves (4,559) (4,519) (4,471)
Shareholders’ equity 2,640
 2,652
 2,663
Non-controlling interests 36
 42
 41
Total equity 2,676
 2,694
 2,704
       
Non-current liabilities      
Borrowings261,299
 1,911
 2,230
Lease liabilities16126
    
Environmental rehabilitation and other provisions27697
 827
 942
Provision for pension and post-retirement benefits28100
 100
 122
Trade, other payables and provisions3015
 3
 3
Deferred taxation29241
 315
 363
  2,478
 3,156
 3,660
Current liabilities      
Borrowings26734
 139
 38
Lease liabilities1645
    
Trade, other payables and provisions30586
 594
 638
Taxation3172
 60
 53
  1,437
 793
 729
Liabilities held for sale9272
 —
 126
  1,709

793

855
       
Total liabilities 4,187
 3,949
 4,515
       
Total equity and liabilities 6,863
 6,643
 7,219



ANGLOGOLD ASHANTI LIMITED
Group – statement of cash flows
FOR THE YEARS ENDED December 31, DECEMBER2021, 2020 and 2019 2018 and 2017
Figures in millionsNotes202120202019
US Dollars
Cash flows from operating activities
Receipts from customers4,054 4,411 3,535 
Payments to suppliers and employees(2,701)(2,583)(2,433)
Cash generated from operations301,353 1,828 1,102 
Dividends received from joint ventures231 148 77 
Taxation refund2920 — 7 
Taxation paid29(336)(431)(228)
Net cash inflow (outflow) from operating activities from continuing operations1,268 1,545 958 
Net cash inflow (outflow) from operating activities from discontinued operations— 109 89 
Net cash inflow (outflow) from operating activities1,268 1,654 1,047 
Cash flows from investing activities
Capital expenditure
- project capital(392)(331)(336)
- stay-in-business capital(635)(370)(367)
Interest capitalised and paid(14)(17)(6)
Acquisition of intangible assets(1)(1)— 
Dividends from other investments22 9 — 
Proceeds from disposal of tangible assets25 3 3 
Other investments and assets acquired(4)(8)(9)
Proceeds from disposal of other investments— 9 3 
Investments in associates and joint ventures— — (5)
Proceeds from disposal of joint ventures2 26 — 
Loans advanced(15)— — 
Loans advanced to associates and joint ventures— — (3)
Loans repaid by associates and joint ventures— 12 23 
Recognition of joint operation - cash— 2 — 
Proceeds from disposal of discontinued assets and subsidiaries— 200 — 
Decrease (increase) in cash restricted for use14 (9)— 
Interest received58 27 14 
Net cash inflow (outflow) from investing activities from continuing operations(940)(448)(683)
Net cash outflow from investing activities from discontinued operations— (31)(54)
Cash in subsidiaries sold and transferred to held for sale— 3 (6)
Net cash inflow (outflow) from investing activities(940)(476)(743)
Cash flows from financing activities
Proceeds from borrowings822 2,226 168 
Repayment of borrowings(820)(2,310)(123)
Repayment of lease liabilities(63)(47)(42)
Finance costs - borrowings24(111)(110)(128)
Finance costs - leases(9)(8)(9)
Other borrowing costs(35)(33)— 
Dividends paid(240)(47)(43)
Net cash outflow from financing activities from continuing operations(456)(329)(177)
Net (decrease) increase in cash and cash equivalents(128)849 127 
Translation(48)25 — 
Cash and cash equivalents at beginning of year1,330 456 329 
Cash and cash equivalents at end of year221,154 1,330 456 

F - 9
Figures in millionsNotes2019
 2018
 2017
    Restated
 Restated
  US Dollars
Cash flows from operating activities      
Receipts from customers 3,535
 3,339
 3,418
Payments to suppliers and employees (2,433) (2,408) (2,351)
Cash generated from operations321,102
 931
 1,067
Dividends received from joint ventures 77
 91
 6
Taxation refund317
 5
 14
Taxation paid31(228) (171) (174)
Net cash inflow (outflow) from operating activities from continuing operations 958
 856
 913
Net cash inflow (outflow) from operating activities from discontinued operations 89
 1
 84
Net cash inflow (outflow) from operating activities 1,047
 857
 997
       
Cash flows from investing activities      
Capital expenditure      
- project capital (336) (170) (132)
- stay-in-business capital (367) (405) (543)
Interest capitalised and paid (6) —
 —
Dividends from other investments —
 2
 —
Proceeds from disposal of tangible assets 3
 10
 3
Other investments acquired (9) (13) (8)
Proceeds from disposal of other investments 3
 7
 3
Investments in associates and joint ventures (5) (8) (27)
Loans advanced to associates and joint ventures (3) (5) (6)
Loans repaid by associates and joint ventures 23
 22
 —
Decrease (increase) in cash restricted for use —
 (6) (8)
Interest received 14
 5
 7
Net cash inflow (outflow) from investing activities from continuing operations (683) (561) (711)
Net cash inflow (outflow) from investing activities from discontinued operations (54) 226
 (151)
Cash in subsidiaries sold and transferred to held for sale (6) —
 —
Net cash inflow (outflow) from investing activities (743) (335) (862)
       
Cash flows from financing activities      
Proceeds from borrowings 168
 753
 815
Repayment of borrowings (123) (967) (767)
Repayment of lease liabilities (42) 

 

Finance costs - borrowings26(128) (130) (138)
Finance costs - leases (9)    
Bond settlement premium, RCF and bond transaction costs —
 (10) —
Dividends paid (43) (39) (58)
Net cash inflow (outflow) from financing activities from continuing operations (177) (393) (148)
Net cash inflow (outflow) from financing activities from discontinued operations —
 —
 —
Net cash inflow (outflow) from financing activities (177) (393) (148)
       
Net increase (decrease) in cash and cash equivalents 127
 129
 (13)
Translation —
 (5) 3
Cash and cash equivalents at beginning of year 329
 205
 215
Cash and cash equivalents at end of year24456
 329
 205


ANGLOGOLD ASHANTI LIMITED
Group – statement of changes in equity
FOR THE YEARS ENDED December 31, DECEMBER2021, 2020 and 2019 2018
Equity holders of the parent
Figures in millionsShare capital
and premium
Other capital reserves(1)
Retained earnings (Accumulated
losses)(2)
Fair value through OCIActuarial
gains
(losses)
Foreign
currency
translation
reserve (3)
TotalNon-
controlling
interests		Total
equity
US Dollars
Balance at 31 December 20187,171 96 (3,227)37 (12)(1,413)2,652 42 2,694 
Profit (loss) for the year— — (12)— — — (12)5 (7)
Other comprehensive income (loss)— — — 82 4 14 — 14 
Total comprehensive income (loss)— — (12)82 4 2 5 7 
Shares issued28 — — — — — 28 — 28 
Share-based payment for share awards net of exercised— (10)— — — — (10)— (10)
Dividends paid (note 12)— — (27)— — — (27)— (27)
Dividends of subsidiaries— — — — — — — (16)(16)
Transactions with non-controlling interests— (4)— — — (4)4 — 
Translation— 1 (2)— — — (1)1 — 
Balance at 31 December 20197,199 83 (3,268)45 (10)(1,409)2,640 36 2,676 
Profit (loss) for the year— — 953 — — — 953 18 971 
Other comprehensive income (loss)— — — 92 10 22 124 — 124 
Total comprehensive income (loss)— — 953 92 10 22 1,077 18 1,095 
Shares issued15 — — — — — 15 — 15 
Share-based payment for share awards net of exercised— (3)— — — — (3)— (3)
Dividends paid (note 12)— — (38)— — — (38)— (38)
Dividends of subsidiaries— — — — — — — (9)(9)
Recognition of joint operation444 
Transfer on disposal and derecognition of equity investments— — 6 (6)— — — — — 
Translation— (3)2 — 1 — — — — 
Balance at 31 December 20207,214 77 (2,341)131 1 (1,387)3,695 45 3,740 
Profit (loss) for the year— — 622 — — — 622 24 646 
Other comprehensive income (loss)— — — (78)(2)(25)(105)— (105)
Total comprehensive income (loss)— — 622 (78)(2)(25)517 24 541 
Shares issued9 — — — — — 9 — 9 
Share-based payment for share awards net of exercised— 11 — — — — 11 — 11 
Dividends paid (note 12)— — (224)— — — (224)— (224)
Dividends of subsidiaries— — — — — — — (16)(16)
Translation— (4)6 — (1)— 1 (1)— 
Balance at 31 December 20217,223 84 (1,937)53 (2)(1,412)4,009 52 4,061 
(1)Other capital reserves include a surplus on disposal of Company shares held by companies prior to the formation of AngloGold Ashanti Limited of $9m (2020: $10m; 2019: $10m), surplus on equity transaction of joint venture of $36m (2020: $36m; 2019: $36m), equity items for share-based payments of $41m (2020: $33m; 2019:$39m) and 2017other 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 20167,108
116
(3,119)

17
(21)(1,386)2,715
39
2,754
Profit (loss) for the year—
—
(191)
—
—
—
(191)20
(171)
Other comprehensive income (loss)—
—
—

25
6
123
154
—
154
Total comprehensive income (loss)—
—
(191) 25
6
123
(37)20
(17)
Shares issued26
—
—

—
—
—
26
—
26
Share-based payment for share awards net of exercised—
(1)—

—
—
—
(1)—
(1)
Dividends paid (note 14)—
—
(39)
—
—
—
(39)—
(39)
Dividends of subsidiaries—
—
—

—
—
—
—
(19)(19)
Translation—
9
(10)
1
(1)—
(1)1
—
Balance at 31 December 20177,134
124
(3,359)

43
(16)(1,263)2,663
41
2,704
Impact of adopting IFRS 9—
—
10
33
(43)—
—
—
—
—
Opening balance under IFRS 97,134
124
(3,349)33
—
(16)(1,263)2,663
41
2,704
Profit (loss) for the year—
—
133
—

—
—
133
17
150
Other comprehensive income (loss)—
—
—
5


4
(150)(141)—
(141)
Total comprehensive income (loss)—
—
133
5


4
(150)(8)17
9
Shares issued37
—
—
—

—
—
37
—
37
Share-based payment for share awards net of exercised—
(17)—
—

—
—
(17)—
(17)
Dividends paid (note 14)—
—
(24)—
 —
—
(24)—
(24)
Dividends of subsidiaries—
—
—
—

—
—
—
(15)(15)
Transfer of gain on disposal of equity investments—
—
1
(1)

—
—
—
—
—
Translation—
(11)12
—


—
—
1
(1)—
Balance at 31 December 20187,171
96
(3,227)37


(12)(1,413)2,652
42
2,694
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 issued28
—
—
—

—
—
28
—
28
Share-based payment for share awards net of exercised—
(10)—
—

—
—
(10)—
(10)
Dividends paid (note 14)—
—
(27)—


—
—
(27)—
(27)
Dividends of subsidiaries—
—
—
—

—
—
—
(16)(16)
Transactions with non-controlling interests—
(4)—
—
 —
—
(4)4
—
Translation—
1
(2)—
 —
—
(1)1
—
Balance at 31 December 20197,199
83
(3,268)45


(10)(1,409)2,640
36
2,676
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 (2018: $10m; 2017: $11m), surplus on equity transaction of joint venture of $36m (2018: $36m; 2017: $36m), equity items for share-based payments of $39m (2018: $48m; 2017: $75m) and other reserves.
(2)
Included in accumulated losses are retained earnings totalling $378m (2018: $283m; 2017: $287m) 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, 2019, 20182021, 2020 and 20172019


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 2019.2021. The adoption of the new standards, interpretations and amendments effective from 1 January 20192021 had the followingno material impact on the group:group.


IFRS 16 LeasesAngloGold 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.


The group electedfollowing amendments issued by the IASB are not yet effective:

IAS 16 amendment "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 2022 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 apply IFRS 16 utilising the modifiedlocation 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.

Management has completed its preliminary assessment of the accounting impact on adoption of the amendment on 1 January 2022. The adoption is expected to result in a retrospective approach, no cumulative effectincrease in property, plant and equipment and gross profit of initially applying IFRS 16 was identified and recognised as an adjustment to$38m in 2020 (2019: decrease of $6m). No impact is expected on the 2021 results. The effects of the 2019 restatement will be included in the accumulated losses opening balance of retained earnings.the 2020 financial reporting period. The cumulativeestimated impact onarises from the adoptionreclassification of IFRS 16 resulted in the recognitionrevenue, cost of right of usesales, and tangible assets lease liabilities and the resultant deferred tax. Referresulting amortisation recalculation.

Disclosure of accounting policies — Amendment to Note 16 for the detail on the rightIAS 1 "Presentation of use assetsFinancial Statements" and lease liabilities. Comparative information has not been restated.IFRS Practice Statement 2 "Making Materiality Judgements"

For contracts previously classified as leases under IAS 17 Leases, the group has reassessed whether the contract is or contains a lease upon initial transition to the new standard and has also performed an assessment to identify significant contracts which have not previously classified as leases, but which may be a lease under the new standard.


The groupamendments 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 following practical expedients upon transitionentity applies the amendments to IAS 1, it is also permitted to apply the amendments to IFRS 16:

Transition options:
Leases with a remaining contract periodPractice Statement 2. Management is assessing the impact of less than 12 monthsthe amendments to determine the impact they will not be recordedhave on the statement of financial position and the lease payments will be expensed in the income statement on a straight-line basis.
The right-of-use asset is based on the lease liability recognised.

Practical expedients:
The short-term lease exemption - leases with a duration of one year or less will be expensed in the income statement on a straight-line basis.
The low value lease exemption - the group has elected to take the low value exemption with a value of $10k for the individual leased asset value. Further, the group has added an exception within its accounting policy disclosures.

IFRS 17 "Insurance Contracts"

IFRS 17 requires insurance liabilities to not capitalise leases withbe measured at a net presentcurrent fulfilment value of $250k based on an IAS 1 materiality assessment.
Exclusion of initial direct costsand provides a more uniform measurement and presentation approach for the measurement of the right of use asset at the date of initial application.
Use of hindsight in determining the lease term where the contract contains options to extend or terminate the lease.

The leases accounting policy applicableall insurance contracts. IFRS 17 supersedes IFRS 4 "Insurance Contracts" and is effective from 1 January 20192023. IFRS 17 will be applied retrospectively, management is included under “Leases” in Annexure A.

CHANGE IN DISCLOSURE

Effective 1 January 2019,assessing the group changed the disclosure of “Special Items” in the income statement. In prior years, the group disclosed items that due to their size and/or nature, required separate disclosureimpact IFRS 17 adoption will have on the face of the income statement as Special Items. In addition, a disclosure category, “Other operating expenses”, was reportedgroup.


Amendments to disclose expenses which were not included in gross profit. Going forward these two categories of expenses and income will be disclosed as:

Other expenses (income); and
Separate line item(s) on the face of the income statement depending on materiality.

The re-presentation provides more useful information by reporting material items separately. The change in presentation has no impact on the reported totals, headline earnings per share or on amounts presented in the StatementIAS 1 "Presentation of Financial Position.Statements — Classification of Liabilities as Current or Non-current"

F - 11


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS


As a resultThe 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 end of the change, reclassifications inreporting period which enable the income statementreporting 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 amendments, which are as follows:effective from 1 January 2023, will be applied retrospectively and are not expected to impact the group significantly.
 
Income statement extract (1)
 
  2018201820172017
  Previously reportedReclassifiedPreviously reportedReclassified
 US dollar million    
      
 Gross profit (loss)772
772
784
784
 Corporate administration, marketing and other expenses(76)(76)(64)(64)
 Exploration and evaluation costs(102)(102)(114)(114)
 Impairment, derecognition of assets and profit (loss) on disposaln/a
(124)n/a
(293)
 Other expenses (income)(97)(143)(88)(233)
 Special items(170)n/a
(438)n/a
 Operating profit (loss)327
327
80
80

(1) Represents reclassification prior to the disclosure of Discontinued operations.


The significant accounting principlesjudgements and estimates applied in the presentation of the group annual financial statements are set out in 1.2 below. The accounting policies adopted are detailed in 1.3 “Summary of significant accounting policies”.

F - 12

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 16 as described in “New Standards and Interpretations Issued” above.year.

The comparative periods have been restated to separate continuing operations from discontinued operations in accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations, as a consequence of the classification of the sale of the South African producing assets and related liabilities as a discontinued operation. The sale agreement was announced on 12 February 2020.


The group financial statements are presented in US dollars.


Based on materiality, certain comparatives in the notes have been aggregated and comparatives have been restated to accord with current year disclosures. All notes 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 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 associate, 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.


Intra-group transactions, balances and unrealised gains and losses on transactions between group companies, including any resulting tax effects are eliminated.




NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

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 which isthat are the basis of future cash flow estimates and unit-of-production depreciation, depletion and amortisation calculations; environmental, reclamation and closure obligations; asset impairments/reversals (including impairments of goodwill); production start date; recoverability of indirect taxes; recoverability of deferred tax assets; and write-downs of inventory to net realisable value. Other estimates include employee benefit liabilities, and unrecognised tax positions.positions and deferred compensation assets.


Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.


The uncertainty of the impact of the COVID-19 pandemic on the global economy and on the group has been considered in judgements made and in the key assumptions used in management's estimates. Key assumptions include items such as commodity prices, exchange rates and changes in interest rates.

The judgements thatapplied by management has applied in the application of accounting policies, and the estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are discussed below.


Carrying value of tangible assets


Amortisation
The majority of mining assets are amortised using the units-of-production method where the mine operating plan calls for production from a well-defined provedProven and probable OreProbable Mineral Reserve.


F - 13

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For other tangible assets, the straight-line method is applied over the estimated useful life of the asset which does not exceed the estimated mine life based on provedProven and probable OreProbable Mineral Reserve as the useful lives of these assets are considered to be limited to the life of the relevant mine.


The calculation of the units-of-production rate of amortisation could be impacted to the extent that actual production in the future is different from current forecast production based on provedProven and probable OreProbable Mineral Reserve. This would generally arise from the following factors:
•changes in provedProven and probable OreProbable Mineral Reserve;
•variations in the grade of OreMineral Reserve which may be significantvary 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.


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

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

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.
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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 Impairment of Assets.


The carrying value of tangible assets at 31 December 20192021 was $2,592m (2018: $3,381m; 2017: $3,742m)$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 2019 (including2021 was $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 $505m (2018: $104m; 2017: $288m).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).


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 20192021 was $116m (2018: $116m; 2017: $127m)$119m (2020: $126m; 2019: $116m). TheNo impairment of goodwill was recognised in the consolidated financial statements for the yearyears ended 31 December 2019 was nil (2018: nil; 2017: $9m).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

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

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.


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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, applies the South African corporate tax rate of 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 2019:2021:
•deferred tax asset: $7m (2020: $7m; 2019: $105m (2018: nil; 2017: $4m);
);
•deferred tax liability: $241m (2018: $315m; 2017: $363m)$313m (2020: $246m; 2019: $241m);
•taxation liability: $72m (2018: $60m; 2017: $53m)$39m (2020: $153m; 2019: $72m); and
•taxation asset: $10m (2018: $6m; 2017: $3m)$49m (2020: $14m; 2019: $10m), included in trade, other receivables and other assets.


UnrecognisedThe unrecognised value of deferred tax assets: $389m (2018: $501m; 2017: $470m)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 (including held for sale rehabilitation obligations) for the group at 31 December 20192021 was $688m (2020: $674m; 2019: $730m (2017: $637m; 2016: $724m)- 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.


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 20192021 was $377m (2018: $404m; 2017: $424m)$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

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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 Africa and inTanzania, Brazil and 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.



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

The net carrying value of recoverable tax, rebates, levies and duties for the group at 31 December 20192021 was $227m (2018: $194m; 2017: $174m).$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’s obligationsthe 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 20192021 was $100m (2018: $100m; 2017: $122m)$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, 2016 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 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. The final costs may differ from current cost estimates. The provision is based on actuarial assumptions including:
•silicosis prevalence rates;
•estimated settlement per claimant;
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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. A sensitivity assessment is included in note 25.


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS


The carrying value of the silicosis provision at 31 December 20192021 was $65m (2018: $63m; 2017: $63m)$50m (2020: $61m; 2019: $65m).


Identification and classificationDeferred compensation asset

As a consequence of discontinued operations

During 2019, the decision to sellsale of the remaining South African operations in 2020, a deferred compensation asset was made. Judgement was applied regarding classificationrecognised. The deferred compensation asset is included at fair value in level 3 of the disposal group as held for salefair 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 year end, and whether the disposal group should be classified as a discontinued operation. The South African asset sale31 December 2021 was assessed as a major geographical area of operations and part of a single co-ordinated plan to dispose of a major geographical area of operations and accordingly, it was classified as a discontinued operation. The sale was announced on 12 February 2020.$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, amateriality thresholdan amount of $18m$33m has been applied.considered.


As a global company, the group is exposed to numerous legal risks. The outcome of currently pending and future proceedings cannot be predicted with certainty. Litigation and other judicial proceedings as a rule raise difficult and complex legal issues and are subject to uncertainties and complexities including, but not limited to, the facts and circumstances of each particular case, issues regarding the jurisdiction in which each suit is brought and differences in applicable law. Upon resolution of any pending legal matter, the group may be forced to incur charges in excess of the presently established provisions and related insurance coverage. It is possible that the financial position, results of operations or cash flows of the group could be materially affected by the unfavourable outcome of litigation.

COVID-19 pandemic



AngloGold Ashanti continues to respond to the COVID-19 pandemic, including the multiple waves of the outbreak in different countries and the surge of new variants of the virus, while contributing to the global effort to stop the spread of the virus and provide public health and economic relief to local communities. Operations continue to implement and strengthen controls on-site and in communities, including facilitating access to vaccines. We continue to monitor the pandemic and update guidelines and response plans to ensure preparedness while maintaining programmes for awareness, prevention, surveillance, early detection and control at group and site level.

While infection rates have largely declined, the emergence of the Omicron variant at the end of 2021 presented challenges with increasing absenteeism due to isolation and quarantine requirements as well as some travel restrictions and shortages of critical skills that continue to challenge operations in Argentina, Australia, Brazil and Ghana, albeit at varying levels.

During 2021, Cerro Vanguardia operated with limited mining capacity largely due to the impact of COVID-19 and resulting restrictions related to moving personnel to and from the site. However, during the second half of 2021 we saw an improvement in
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

the operation, which was largely due to the utilisation of the newly expanded on-site accommodation, as the camp can now safely host an increased number of employees on site for longer periods of time.


The impact on production from COVID-19 was estimated at 47,000oz for 2021.


Climate change considerations

As a member of the International Council on Mining and Metals (ICMM), AngloGold Ashanti has committed to the ICMM’s target of net zero Scope 1 and 2 greenhouse gas (GHG) emissions by 2050 or sooner in line with the ambitions of the Paris Agreement. Unlike other major resources companies, AngloGold Ashanti does not mine or extract hydrocarbons such as coal, natural gas or oil. AngloGold Ashanti does, however, emit greenhouse gases directly from energy and fuel used in its gold mining operations, the processing of ore, and the transportation of its products.

In 2021, AngloGold Ashanti published its first TCFD-aligned Climate Change Report which frames a refreshed Climate Change Strategy. The Climate Change Strategy, which was approved by the board in November 2021, seeks to embed the management of physical risks, transition climate risks, and climate change-related opportunities into our strategic and operational planning processes. The group has committed to the ICMM’s target of net zero Scope 1 and 2 emissions by 2050, and to accelerate action on Scope 3 emissions, including setting credible targets in partnership with suppliers by the end of 2023.

Whilst the group has set targets to be carbon neutral by 2050, the consequences, in terms of investment, its cost base and impact on cash flows are still being assessed as the group considers how it will work towards meeting these targets. This could have an impact on the future carrying amounts of assets or liabilities as the group responds to its climate change targets.

Assessing the risks of aggressive decarbonisation scenarios and other market transition risks, as well as physical and regulatory risks to our operations, on our business strategy and planning assumptions is an area that will be addressed through the implementation of our Climate Change strategy. This could have a knock-on effect on a number of areas, such as driving up the costs of capital goods, and key mining inputs, such as energy, potentially impacting impairments of asset carrying amounts.



1.3    SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES


Equity-accounted investments


Joint ventures


A joint venture is an entity in which the group holds a long-termlong term interest and which the group and one or more other ventures jointly control under a contractual arrangement, that provides for strategic, financial and operating policy decisions relating to the activities requiring unanimous consent of the parties sharing control. The group’s interests in joint arrangements classified as joint ventures are accounted for using the equity method.


Profits and losses realised in connection with transactions between the group and joint ventures are eliminated in proportion to share ownership. Such profits and losses are deducted from the group’s equity and related statement of financial position amount and released in the group accounts when the assets are effectively realised outside the group. Dividends received from joint ventures are included in operating activities in the cash flow statement.


Associates


The equity method of accounting is used for investments over which the group exercises significant influence and normally owns between 20% and 50% of the voting equity. Associates are equity-accounted from the effective date of acquisition to the effective date of disposal.


Profits and losses realised in connection with transactions between the group and associated companies are eliminated in proportion to share ownership. Such profits and losses are deducted from the group’s equity and related statement of financial position amount and released in the group accounts when the assets are effectively realised outside the group. Dividends received from associates are included in investing activities in the cash flow statement.


Joint ventures and associates


If necessary, impairment lossesand impairment reversals on loans and equity are reported under share of joint ventures and associates profit and loss.


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Any losses of equity-accounted investments are accounted 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


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS


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
•all resulting exchange differences are recognised in other comprehensive income and presented as a separate component of equity (foreign currency translation reserve, or FCTR).


Exchange differences arising from the translation of the net investment in foreign operations and of borrowings and other currency instruments designated as hedges of such investments, are accounted for as 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.



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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.


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS


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.


Capitalised mine development costs also include stripping activity assets relating to production stripping activities incurred in the production phase of open-pit operations of the group. Once determined that any portion of the production stripping costs should be capitalised, the group determines the average mine costs per tonne of the component and the waste tonnes to which the production stripping costs relate to determine the amount of the production stripping costs that should be capitalised. Stripping activity assets are amortised on a units-of-production method based on the OreMineral Reserve of the component of the orebody to which these assets relate.


The average mine cost per tonne of the component is calculated as the total expected costs to be incurred to mine the relevant component of the orebody, divided by the number of tonnes expected to be mined from the component. The average mine cost per tonne of the component to which the stripping activity asset relates are recalculated annually in the light of additional knowledge and changes in estimates.


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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 Reserve,Mineral 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.


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 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.

Goodwill

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 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

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS



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)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 the lease payments that are not paid at the commencement date, discounted by using the rate implicit in the lease. If this rate cannot be readily determined, the group uses its incremental borrowing rate. The group has appliedapplies the IFRS 16 portfolio approach in determining the discount rate for leases. As
F - 22
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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.


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.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 comprise 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 described below. They are subsequently measured at cost less accumulated depreciation and impairment losses.


The lease term is determined as the non-cancellable period of a lease, together with:
Periods•periods covered by an option to extend the lease if AngloGold Ashantithe group is reasonably certain to make use of that option; and / or
Periods•periods covered by an option to terminate the lease, if AngloGold Ashantithe group is reasonably certain not to make use of that option.


Whenever the group incurs an obligation for costs to 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.

Non-current assets held for sale and discontinued operations


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

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.

Non-current assets (and disposal groups) classified as held for sale are measured at the lower of their previous carrying amount and fair value less costs to sell.

Tangible assets, right of use assets and intangible assets are not depreciated once classified as held for sale.

A disposal group qualifies as a discontinued operation if it is a component of an entity that either has been disposed of, or is classified as held for sale, and:
•Represents a separate major line of business or geographical area of operations;
•Is part of a single co-ordinated plan to dispose of a separate major line of business or geographical area of operations; or
•Is a subsidiary acquired exclusively with a view to resale.

Discontinued operations are excluded from the results of continuing operations and are presented as a single amount as profit or loss after tax from discontinued operations in the statement of profit or loss.


Inventories


Inventories are valued at the lower of cost and net realisable value after appropriate allowances for redundant and obsolete items. Cost is determined on the following bases:
•metals in process are valued at the average total production cost at the relevant stage of production;
•gold doré/bullion is valued on an average total production cost method;
•ore stockpiles are valued at the average moving cost of mining and stockpiling the ore. Stockpiles are classified as a non-current asset where the stockpile exceeds current processing capacity;
•by-products, which include uranium oxide, silver and sulphuric acid, are valued using an average total production cost method;
•mine operating supplies are valued at average cost; and
•heap leach pad materials are measured on an average total production cost basis.

F - 23
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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 other expenses, 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.


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


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS


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, Contingent Liabilities and Contingent 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.


The fair value of the equity instruments granted is calculated at grant date. For transactions with employees, fair value is based on market prices of the equity instruments granted, if available, taking into account the terms and conditions upon which those equity instruments were granted. If market prices of the equity instruments granted are not available, the fair value of the equity instruments granted is estimated using an appropriate valuation model. Vesting conditions, other than market conditions, are not taken into account when estimating the fair value of shares or share options at measurement date.


Over the vesting period, the fair value at measurement date is recognised as an employee benefit expense with a corresponding increase in other capital reserves based on the group’s estimate of the number of instruments that will eventually vest. The income statement charge or credit for a period represents the movement in cumulative expense recognised as at the beginning and end of that period. Vesting assumptions for non-market conditions are reviewed at each reporting date to ensure they reflect current expectations.


F - 24
Table of Contents

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.


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

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS



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.


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 and sulphuric acid; and
•doré bars.


Revenue from product sales is recognised at a point in time.


Taxation


Deferred taxation is recognised on all qualifying temporary differences at the reporting date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes.


Deferred tax assets are only recognised to the extent that it is probable that the deductible temporary differences will reverse in the foreseeable future and future taxable profit will be available against which the temporary difference can be utilised.

F - 25
Table of Contents

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.


Other expenses and income


Items of income and expense, not included in gross profit, that are:
•material either quantitatively or qualitatively, or both;
non-recurring;
•not directly related to current operating or financing activities ; and
•not disclosed separately on the face of the income statement,
are classified as Other expenses and(expenses) income on the face of the income statement.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.


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS


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.


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 in the statement of profit or loss. A gain or loss on a debt investment that is subsequently measured at FVTPL is recognised in profit or loss and presented net within other gains or lossesforeign exchange and fair value adjustments in the period in which it arises. On derecognition of a financial asset, the difference between the proceeds received or receivable and the carrying amount of the asset is included in profit or loss.





F - 26
Table of Contents

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 FVTPL are recognised in other gains or losses in the statement of profit or loss as applicable.


Trade receivables
Trade receivables mainly comprise receivables owing from banking institutions purchasing gold bullion. Normal market settlement terms are two working days. Trade receivables are recognised on settlement date.


Deferred compensation asset
Deferred consideration is treated as a financial instrument to the extent that it constitutes a right to receive cash from a third party and measured at FVTPL. The fair value change in the deferred compensation asset is recognised in foreign exchange and fair value adjustments in the income statement.

Impairment of financial assets

Financial assets at amortised cost consist of trade receivables, loans, cash and cash equivalents and debt instruments. Impairment losses are assessed using the forward-looking expected credit loss (ECL) approach. An allowance is recorded for all loans and other debt financial assets not held at FVTPL. The impairment methodology applied depends on whether there has been a significant increase in credit risk. Trade receivable loss allowances are measured at an amount equal to lifetime ECL’s. Loss allowances are deducted from the gross carrying amount of the assets. Debt securities that are determined to have a low credit risk at the reporting date and bank balances, for which credit risk has not increased significantly since initial recognition, are measured at an amount equal to 12-month ECL.


Financial guarantees in the parent company
Financial guarantee contracts are recognised as a financial liability at the time the guarantee is issued. The liability is initially measured at fair value. The fair value of a financial guarantee contract is the present value of the difference between the net contractual cash flows required under a debt instrument, and the net contractual cash flows that would have been required without the guarantee. The liability is amortised in a straight line over the period the guarantee remains in place.

Fair value measurements


The group measures financial instruments at fair value at each reporting date where relevant. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest.


For the purpose of fair value disclosures, the group has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy. The group uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.



F - 27
Table of Contents


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)







2    SEGMENTAL INFORMATION


AngloGold Ashanti Limited’sAshanti’s operating segments are being reported based on the financial information provided to the Chief Executive Officer and the Executive Committee, collectively identified as the Chief Operating Decision Maker (CODM). The group produces gold as its primary product and does not have distinct divisional segments in terms of principal business activity, but manages its business on the basis of different geographic segments (including equity accounted joint venture investments). Individual members of the Executive Committee are responsible for geographic regions of the business.


Group analysis by origin is as follows:
Figures in millionsGold income
US Dollars202120202019
Geographical analysis of gold income by origin is as follows:
Africa(1)
2,644 2,769 2,203 
Australia890 989 851 
Americas1,028 1,211 1,000 
4,562 4,969 4,054 
Equity-accounted joint ventures included above(659)(647)(615)
Continuing operations3,903 4,322 3,439 
Discontinued operations - South Africa— 408 554 
3,903 4,730 3,993 
Foreign countries included in the above and considered material are:
Australia890 989 851 
Brazil749 853 679 
Ghana565 536 
Guinea5450
Tanzania875 1,133 849 
DRC659 647 504 
Geographical analysis of gold income by destination is as follows:
South Africa1,214 943 981 
North America699 580 486 
South America34 1 — 
Australia890 989 851 
Europe279 358 329 
United Kingdom1,446 2,098 1,407 
4,562 4,969 4,054 
Equity-accounted joint ventures included above(659)(647)(615)
Continuing operations3,903 4,322 3,439 
Discontinued operations - South Africa— 408 554 
Continuing and discontinued operations3,903 4,730 3,993 


F - 28
Table of Contents

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)

2    SEGMENTAL INFORMATION (continued)
Figures in millionsGold income
US Dollars2019 2018 2017
Geographical analysis of gold income by origin is as follows:     
Continental Africa(1)
2,203
 1,983
 1,895
Australia851
 780
 709
Americas1,000
 1,021
 1,104
 4,054
 3,784
 3,708
Equity-accounted investments included above(615) (581) (453)
Continuing operations3,439
 3,203
 3,255
Discontinued operations - South Africa554
 602
 1,101
 3,993
 3,805
 4,356
      
Foreign countries included in the above and considered material are:     
Australia851
 780
 709
Argentina  387
 399
Brazil679
 634
 705
Guinea    489
Tanzania849
 715
 664
DRC504
 468
  
      
Geographical analysis of gold income by destination is as follows:     
South Africa981
 946
 946
North America486
 450
 456
Australia851
 780
 709
Europe329
 387
 399
United Kingdom1,407
 1,221
 1,198
 4,054
 3,784
 3,708
Equity-accounted investments included above(615) (581) (453)
 3,439
 3,203
 3,255
Discontinued operations - South Africa554
 602
 1,101
Continuing and discontinued operations3,993
 3,805
 4,356
      
Figures in millionsBy product revenue
US Dollars202120202019
Africa(1)
5 4 3 
Australia4 3 3 
Americas119 99 81 
128 106 87 
Equity-accounted joint ventures included above(2)(1)(1)
Continuing operations126 105 86 
Discontinued operations - South Africa— 1 1 
126 106 87 
Figures in millionsBy product revenue
US Dollars2019
 2018
 2017
Continental Africa(1)
3
 4
 3
Australia3
 2
 2
Americas81
 128
 135
 87
 134
 140
Equity-accounted investments included above(1) (1) (1)
Continuing operations86
 133
 139
Discontinued operations - South Africa1
 6
 15
 87
 139
 154
      


The Group'sgroup's revenue is mainly derived from gold income. Approximately 34%59% of the group's total gold produced is sold to twothree customers of the group.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 possess significant pricing power.


Figures in millionsCost of sales
US Dollars202120202019
Africa(1)
1,650 1,572 1,601 
Australia740 705 632 
Americas822 764 822 
Corporate and other(5)(2)(1)
3,207 3,039 3,054 
Equity-accounted joint ventures included above(350)(340)(428)
Continuing operations2,857 2,699 2,626 
Discontinued operations - South Africa— 287 479 
2,857 2,986 3,105 

Figures in millions
Gross profit (loss) (2)
US Dollars202120202019
Africa(1)
999 1,201 605 
Australia153 286 221 
Americas325 532 265 
Corporate and other6 (2)1 
1,483 2,017 1,092 
Equity-accounted joint ventures included above(311)(308)(188)
Continuing operations1,172 1,709 904 
Discontinued operations - South Africa— 83 79 
1,172 1,792 983 


F - 29
Table of Contents

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)


2    SEGMENTAL INFORMATION (continued)

Figures in millionsAmortisation
US Dollars202120202019
Africa(1)
268 349 367 
Australia150 160 173 
Americas161 163 177 
Corporate and other3 2 3 
582 674 720 
Equity-accounted joint ventures included above(105)(104)(137)
Continuing operations477 570 583 
Discontinued operations - South Africa— — 61 
477 570 644 


Figures in millions
Total assets (1)(3)(4)
US Dollars202120202019
South Africa— — 697 
Africa4,193 3,956 3,514 
Australia1,034 1,044 972 
Americas1,886 1,626 1,427 
Corporate and other854 1,046 253 
7,967 7,672 6,863 

Figures in millions
Non-current assets (5)
US Dollars202120202019
Non-current assets considered material, by country are:
South Africa61 59 25 
Foreign entities5,607 5,053 4,644 
DRC1,604 1,604 1,506 
Ghana1,158 915 758 
Tanzania510 425 379 
Australia806 849 817 
Brazil797 627 625 
F - 30
Figures in millions
Gross profit (loss) (2)
US Dollars2019
 2018
 2017
Continental Africa(1)
605
 380
 386
Australia221
 160
 159
Americas(1)
265
 310
 253
Corporate and other1
 2
 2
 1,092
 852
 800
Equity-accounted investments included above(188) (102) (13)
Continuing operations904
 750
 787
Discontinued operations - South Africa79
 22
 (3)
 983
 772
 784
      
Table of Contents



Figures in millionsCost of sales
      
US Dollars2019
 2018
 2017
Continental Africa(1)
1,601
 1,607
 1,513
Australia632
 622
 551
Americas (1)
822
 838
 987
Corporate and other(1) (3) (3)
 3,054
 3,064
 3,048
Equity-accounted investments included above(428) (480) (441)
Continuing operations2,626
 2,584
 2,607
Discontinued operations - South Africa479
 589
 1,129
 3,105
 3,173
 3,736
      


Figures in millionsAmortisation
US Dollars2019
 2018
 2017
Continental Africa(1)
367
 379
 421
Australia173
 149
 130
Americas(1)
177
 192
 273
Corporate and other3
 3
 2
 720
 723
 826
Equity-accounted investments included above(137) (165) (136)
Continuing operations583
 558
 690
Discontinued operations - South Africa61
 72
 133
 644
 630
 823
      



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)


2    SEGMENTAL INFORMATION (continued)

Figures in millionsCapital expenditure
US Dollars202120202019
Africa(1)
506 397 410 
Australia185 143 149 
Americas398 217 195 
Corporate and other11 — — 
Continuing operations1,100 757 754 
Discontinued operations - South Africa— 35 60 
1,100 792 814 
Equity-accounted joint ventures included above(72)(56)(51)
1,028 736 763 

(1)Includes equity-accounted investments.
(2)The group's segmental profit measure is gross profit (loss), which excludes the results of associates and joint ventures. For the reconciliation of gross profit (loss) to profit before taxation and discontinued operations, refer to the group income statement.
(3)Total assets include allocated goodwill of $111m (2020: $118m; 2019: $108m) for Australia and $8m (2020: $8m; 2019: $8m) for Americas (note 15). In 2019, the South African segment included assets held for sale of $581m and the Africa Region segment included assets held for sale of $20m.
(4)In 2021, pre-tax impairments and derecognition of assets of $1m were accounted for in Corporate and other (2020: nil; 2019: nil), nil in South Africa (2020: $17m impairment reversal; 2019: $556m), Africa Region of $4m (2020: nil; 2019: $2m) and the Americas of $1m (2020: nil; 2019: $1m).
(5)Non-current assets exclude financial instruments and deferred tax assets.


F - 31
Figures in millions
Total assets (1)(3)(4)
US Dollars2019
 2018
 2017
South Africa697
 1,106
 1,734
Continental Africa3,514
 3,135
 3,153
Australia972
 888
 929
Americas1,427
 1,286
 1,258
Corporate and other253
 228
 145
 6,863
 6,643
 7,219
Table of Contents


Figures in millions
Non-current assets (5)
US Dollars2019
 2018
 2017
      
Non-current assets considered material, by country are:     
South Africa25
 1,005
 1,295
Foreign entities4,644
 4,234
 4,259
      
DRC1,506
 1,439
 1,423
Ghana758
 550
 533
Tanzania379
 369
 422
Australia817
 718
 764
Brazil625
 615
 632


Figures in millionsCapital expenditure
US Dollars2019
 2018
 2017
Continental Africa(1)
410
 313
 409
Australia149
 156
 153
Americas (1)
195
 176
 234
Corporate and other—
 —
 2
Continuing operations754
 645
 798
Discontinued operations - South Africa60
 76
 155
 814
 721
 953
Equity-accounted investments(51) (69) (123)
 763
 652
 830

(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 include allocated goodwill of $108m (2018: $108m; 2017: $119m) for Australia and $8m (2018: $8m; 2017: $8m) for Americas (note 17). The South African segment includes assets held for sale of $581m (2018: nil; 2017: $348m) and the Continental Africa segment includes assets held for sale of $20m (2018: nil; 2017: nil).
(4)
In 2019, pre-tax impairments and derecognition of assets of $556m were accounted for in South Africa (2018: $98m; 2017: $294m), Continental Africa $2m (2018: $5m; 2017: nil) and the Americas $1m (2018: $1m; 2017: nil).
(5)
Non-current assets exclude financial instruments and deferred tax assets.



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)














3    REVENUE FROM PRODUCT SALES
US Dollars
Figures in millions202120202019
Revenue consists of the following principal categories:
Gold income (note 2)3,903 4,322 3,439 
By-products (note 2)126 105 86 
4,029 4,427 3,525 

 US Dollars
Figures in millions2019
 2018
 2017
Revenue consists of the following principal categories:     
Gold income (note 2)3,439
 3,203
 3,255
By-products (note 2)86

133

139
Revenue from product sales3,525
 3,336
 3,394
4    COST OF SALES
US Dollars
Figures in millions202120202019
Cash operating costs2,160 1,881 1,831 
Royalties162 181 137 
Other cash costs12 12 13 
Total cash costs2,334 2,074 1,981 
Retrenchment costs2 2 4 
Rehabilitation and other non-cash costs38 32 53 
Amortisation of tangible assets (notes 30 and 34)411 521 538 
Amortisation of right of use assets (notes 14, 30 and 34)63 47 42 
Amortisation of intangible assets (notes 15, 30 and 34)3 2 3 
Inventory change6 21 5 
2,857 2,699 2,626 

 US Dollars
Figures in millions2019
 2018
 2017
Cash operating costs1,831
 1,850
 1,756
Royalties137
 133
 111
Other cash costs13
 13
 14
Total cash costs1,981
 1,996
 1,881
Retrenchment costs4
 4
 6
Rehabilitation and other non-cash costs53
 17
 16
Amortisation of tangible assets (notes 32 and 36)538
 553
 685
Amortisation of right of use assets(1) (notes 32 and 36)
42
 —
 —
Amortisation of intangible assets (notes 32 and 36)3
 5
 5
Inventory change5
 9
 14
 2,626
 2,584
 2,607

(1) Amortisation relating to right of use assets as recognised in accordance with IFRS 16 Leases.


5    CORPORATE ADMINISTRATION, MARKETING AND OTHER COSTS
 US Dollars
Figures in millions2019
 2018
 2017
Corporate administration expenses63
 60
 52
Share scheme and related costs19
 16
 12
 82
 76
 64
6    OTHER EXPENSE (INCOME)
US Dollars
Figures in millions202120202019
Care and maintenance (1)
45 — 47 
Governmental fiscal claims7 6 12 
 Cost of old tailings operations9 14 9 
Guinea public infrastructure contribution— — 8 
Pension and medical defined benefit provisions7 8 9 
Royalty receivable impaired— 4 — 
Royalties received(2)(2)(3)
Brazilian power utility legal settlement— — (16)
Retrenchment and related costs (2)
18 — 3 
Legal fees and project costs10 9 11 
Refund from insurance claim— (5)— 
Other indirect taxes18 23 3 
Premium on settlement of bonds (3)    
24 — — 
136 57 83 

(1)Following a sill pillar incident at Obuasi on 18 May 2021, the Company voluntarily suspended all underground activities until mid-October 2021 when underground ore mining resumed to replenish the run-of-mine stockpile without corresponding gold production.
(2)    Retrenchment costs incurred in 2021 as part of the transition to the new Operating Model.
(3)    Bond settlement costs following the early redemption of the $750m, 5.125% notes due 2022.

F - 32

US Dollars
Figures in millions2019

2018

2017
Care and maintenance (note 36)
47
 39
 62
Governmental fiscal claims, cost of old tailings operations and other expenses21
 14
 15
Guinea public infrastructure contribution8
 —
 —
Pension and medical defined benefit provisions9
 10
 9
Royalties received(3) (10) (18)
Brazilian power utility legal settlement(16) —
 —
Retrenchment and related costs3
 6
 6
Legal fees and project costs11
 16
 74
Other indirect taxes

3
 4
 2
 83
 79
 150
Table of Contents

(1) Change in disclosure from prior years. Refer note 1 for details.


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)













76    FINANCE COSTS AND UNWINDING OF OBLIGATIONS
US Dollars
Figures in millions202120202019
Finance costs
Finance costs on bonds, bank loans and other109 124 135 
Amortisation of fees6 23 4 
Lease finance charges9 8 10 
Less: interest captalised(14)(17)(6)
110 138 143 
Unwinding of obligations6 39 29 
Total finance costs and unwinding of obligations (notes 30 and 34)116 177 172 
The interest included within finance costs is calculated at effective interest rates.
 US Dollars
Figures in millions2019
 2018
 2017
Finance costs     
Finance costs on bonds, corporate notes, bank loans and other135
 128
 131
Amortisation of fees4
 7
 4
Lease finance charges10
 5
 6
Less: interest captalised(6) —
 —
 143
 140
 141
Unwinding of obligations29
 28
 16
Total finance costs and unwinding of obligations (note 32 and 36)172
 168
 157
87    SHARE OF ASSOCIATES AND JOINT VENTURES' PROFIT (LOSS)
US Dollars
Figures in millions202120202019
Revenue697 677 616 
Operating costs and other expenses(370)(353)(452)
Profit on sale of joint ventures— 19 — 
Net interest received7 5 10 
Profit (loss) before taxation334 348 174 
Taxation(85)(70)(35)
Profit (loss) after taxation249 278 139 
Impairment reversal of investments in associates— — 23 
Impairment reversal of investments in joint ventures (note 17)— — 6 
Share of associates and joint ventures’ profit (loss) (note 30)249 278 168 


8    EMPLOYEE BENEFITS
US Dollars
Figures in millions202120202019
Employee benefits including Executive Directors’ and Prescribed Officers’ salaries and other benefits593 644 697 
- current medical expenses25 23 29 
- defined benefit post-retirement medical expenses6 7 8 
- defined contribution20 25 29 
Retrenchment costs16 2 7 
Share-based payment expense (note 9)22 16 42 
Included in cost of sales, other expenses and corporate administration, marketing and related expenses of continuing and discontinued operations682 717 812 



F - 33
 US Dollars
Figures in millions2019
 2018
 2017
      
Revenue616
 582
 454
Operating costs and other expenses(452) (472) (471)
Net interest received (paid)10
 (8) 1
Profit (loss) before taxation174

102

(16)
Taxation(35) (9) 23
Profit (loss) after taxation139

93

7
Impairment reversal of investments in associates (1)
23
 15
 13
Impairment reversal of investments in joint ventures (note 19)6
 14
 2
Share of associates and joint ventures’ profit (loss) (note 32)168

122

22
Table of Contents
(1) Based on the results and financial position of Rand Refinery (Pty) Limited, an impairment reversal was recognised.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)





9     DISCONTINUED OPERATIONS AND ASSETS AND LIABILITIES HELD FOR SALE
South African asset sale

On 12 February 2020, AngloGold Ashanti announced that it has reached an agreement to sell its remaining South African producing assets and related liabilities to Harmony Gold Mining Company Limited. Consideration for the transaction is in cash and deferred payments with expected proceeds of around $300m subject to subsequent performance, and with additional proceeds if the West Wits assets are developed below current infrastructure.

The transaction includes the following assets and liabilities:
The Mponeng mine and its associated assets and liabilities;
The Tau Tona and Savuka mines and associated rock-dump and tailings storage facility reclamation sites, mine rehabilitation and closure activities located in the West Wits region and their associated assets and liabilities;
First Uranium (Pty) Limited which owns Mine Waste Solutions (Pty) Limited and Chemwes (Pty) Limited as well as associated tailings assets and liabilities;
Covalent Water Company (Pty) Limited, AngloGold Security Services (Pty) Limited and Masakhisane Investments (Pty) Limited; and
Certain rock-dump reclamation, mine rehabilitation and closure activities located in the Vaal River region and their associated assets and liabilities.

The consideration comprises three elements:
US$200m in cash payable at closing; and
Two components of deferred consideration, payable as follows:

1.US$260 per ounce payable on all underground production sourced within the West Wits mineral rights (comprising the Mponeng, Savuka and Tau Tona mines) in excess of 250,000 ounces per annum for 6 years commencing 1 January 2021; and
2.US$20 per ounce payable on underground production sourced within the West Wits mineral rights (comprising the Mponeng, Savuka and Tau Tona mines) below the datum of current infrastructure.

The agreement provides for terms customary in agreements of this nature and is subject to customary conditions precedent. Key conditions precedent include:
Approval from the South African Competition Authorities pursuant to the South African Competition Act No 89 of 1998; and
Section 11 approval from the Minister of Mineral Resources and Energy pursuant to the MPRDA in relation to West Wits Mineral Right.

AngloGold Ashanti and Harmony have committed to engage with the relevant authorities and other stakeholders in order to ensure the conditions precedent are fulfilled as soon as possible with earliest closing anticipated on or about 30 June 2020.

As at 31 December 2019, AngloGold Ashanti had received offers from potential buyers regarding the sale of the South African assets. The announced transaction on 12 February 2020 resulted in an expected consideration of around $300m which forms the basis for the fair value less costs to sell value of the South Africa disposal group. The non-recurring fair value measurement for the South Africa disposal group is included in level 3 of the fair value hierarchy. The fair value is based on unobservable market offers from potential buyers for the South Africa disposal group.

The held for sale assets and liabilities related to the transaction are reported in the South Africa segment. The South African asset sale is treated as a discontinued operation.

In terms of the transaction the silicosis obligation of $65m and the post-retirement medical obligation of $93m relating to South African employees are retained by AngloGold Ashanti.

Sale interest in the Sadiola Mine

On 23 December 2019, AngloGold Ashanti announced that it together with its joint venture partner, IAMGOLD Corporation (IAMGOLD), had agreed to sell their interests in Société d’Exploitation des Mines d’Or de Sadiola S.A. (Sadiola) to Allied Gold Corp (Allied Gold). Sadiola's principal asset is the Sadiola Mine located in the Kayes region of Western Mali. AngloGold Ashanti and IAMGOLD each hold a 41% interest in Sadiola with the remaining 18% interest held by the Government of Mali.


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)




9     DISCONTINUED OPERATIONS AND ASSETS AND LIABILITIES HELD FOR SALE(continued)

In terms of the agreement, AngloGold Ashanti and IAMGOLD will sell their collective interests in Sadiola to Allied Gold for a cash consideration of US$105m, payable as follows:
US$50m (US$25m each to AngloGold Ashanti and IAMGOLD) upon the fulfillment or waiver of all conditions precedent and closing of the transaction;
Up to a further US$5m (US$2.5m each to AngloGold Ashanti and IAMGOLD), payable 8 days after closing, to the extent that the cash balance of Sadiola at closing is greater than an agreed amount;
US$25m (US$12.5m each to AngloGold Ashanti and IAMGOLD) upon the production of the first 250,000 ounces from the Sadiola Sulphides Project (SSP); and
US$25m (US$12.5m each to AngloGold Ashanti and IAMGOLD) upon the production of a further 250,000 ounces from the SSP.

The transaction is subject to the fulfillment, or waiver, of a number of conditions precedent, including the receipt of certain approvals and releases from the Government of Mali. AngloGold Ashanti received approval from the South African Reserve Bank in early 2020. It is anticipated that all conditions precedent will be fulfilled or waived by the end of April 2020.

This transaction offer represents the most significant unobservable input in determining the non-recurring fair value measurement of the Sadiola investment; accordingly, the fair value is included in level 3 of the fair value hierarchy.

The carrying value of the Sadiola held for sale asset of $20m (which is lower than fair value less costs to sell) is included in the Continental Africa segment; it was previously disclosed as an investment in joint venture on the Statement of Financial Position.

Discontinued operations
The results of the South Africa disposal group for the year ended 31 December 2019 are presented below:
 US Dollars
Figures in millions2019
 2018
 2017
Revenue from product sales555
 608
 1,116
Cost of sales(479) (589) (1,129)
Gain (loss) on non-hedge derivatives and other commodity contracts

3
 3
 10
Gross profit (loss)79
 22
 (3)
Other expenses(44) (72) (97)
Derecognition of assets, impairments and profit on disposal of assets(3) (118) (256)
Impairment loss recognised on remeasurement to fair value less costs to sell(549) —
 (35)
Profit (loss) before taxation(517) (168) (391)
Normal taxation(23) 38
 (14)
Deferred tax on impairment loss, derecognition and profit on disposal of assets164
 47
 69
Profit (loss) from discontinued operations(376) (83) (336)


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)




9     DISCONTINUED OPERATIONS AND ASSETS AND LIABILITIES HELD FOR SALE(continued)

The major classes of assets and liabilities of the South African disposal group as at 31 December 2019, are as follows:
US Dollars
Figures in millions2019
Tangible assets and right of use assets429
Other investments84
Inventories37
Trade, other receivables and other assets4
Deferred taxation15
Cash and cash restricted for use12
Assets held for sale581
Lease liabilities3
Environmental rehabilitation and other provisions211
Trade and other payables58
Liabilities held for sale272
Net assets held for sale309
Total assets held for sale include:
Sadiola20
South Africa581
601

The discontinued operations' net cash flows are reflected in the Statement of Cash Flows.

Impairment of South African assets

Following the classification of the South African disposal group as held for sale, an impairment of $549m (tangible assets of $495m and non-current inventories of $54m) and taxation on impairment of $164m (i.e. $385m, net of tax) was recognised to reduce the carrying amount of the assets in the disposal group to their fair value less costs to sell.


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)





10    EMPLOYEE BENEFITS
 US Dollars
Figures in millions2019
 2018
 2017
Employee benefits including Executive Directors’ and Prescribed Officers’ salaries and other benefits680
 797
 1,024
Health care and medical scheme costs
    
- current medical expenses29
 39
 58
- defined benefit post-retirement medical expenses8
 9
 10
Pension and provident plan costs
    
- defined contribution29
 37
 53
Retrenchment costs7
 30
 92
Share-based payment expense (note 11)42
 35
 33
Included in cost of sales, other expenses (income) and corporate administration, marketing and other expenses of continuing and discontinued operations795

947

1,270



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)

11    SHARE-BASED PAYMENTS
US Dollars
Figures in millions202120202019
Equity-settled share incentive schemes
Bonus Share Plan (BSP)— 1 6 
Deferred Share Plan (DSP)22 14 13 
Other— 1 2 
22 16 21 
Cash-settled share incentive scheme— — 21 
Total share-based payment expense (note 8)22 16 42 

 US Dollars
Figures in millions2019
 2018
 2017
Equity-settled share incentive schemes     
Bonus Share Plan (BSP)6
 20
 26
Deferred Share Plan (DSP)13
 —
 —
Other2
 2
 —
 21

22

26
Cash-settled share incentive scheme     
Cash-settled Long Term Incentive Plan (CSLTIP)21
 13
 7
Total share-based payment expense (note 10)42

35

33

Equity-settled incentive schemes


EquityPrevious equity schemes with outstanding awards exercisable include the Bonus Share Plan (BSP), Deferred Share Plan (DSP), and Long Term Incentive Plan (LTIP). The Deferred Share Plan (DSP) replaced all previous AngloGold Ashanti incentive schemes. The last allocations granted in the BSP and LTIP schemes vested during 2020; there are no further allocations and vesting as the Co-Investment Plan (CIP).schemes have been closed.


Bonus Share Plan (BSP)
Award date (unvested awards and awards vested during the year)2018
Calculated fair valueR119.14 
Vesting date 50%22 Feb 2019
Vesting date 50%22 Feb 2020
Expiry date22 Feb 2028
Number of shares
202120202019
Awards outstanding at beginning of year1,005,977 2,141,415 4,557,919 
Awards granted during the year— — — 
Awards lapsed during the year— — (109,065)
Awards exercised during the year(156,294)(1,135,438)(2,307,439)
Awards outstanding at end of year849,683 1,005,977 2,141,415 
Awards exercisable at end of year849,683 1,005,977 1,207,936 
Award date (unvested awards and awards vested during the year)2019 2018
 2017
Calculated fair value
 R119.14
 R152.87
Vesting date 50%
 22 Feb 2019
 1 Mar 2018
Vesting date 50%
 22 Feb 2020
 1 Mar 2019
Expiry date
 22 Feb 2028
 1 Mar 2027

 Number of shares
 2019
 2018
 2017
Awards outstanding at beginning of year4,557,919
 4,479,679
 4,198,285
Awards granted during the year—
 2,492,584
 1,926,549
Awards lapsed during the year(109,065) (359,343) (218,601)
Awards exercised during the year(2,307,439) (2,055,001) (1,426,554)
Awards outstanding at end of year2,141,415
 4,557,919
 4,479,679
Awards exercisable at end of year1,207,936
 1,588,512
 1,904,021

CashNo cash awards were granted under the bonus share plan outstanding at year end 31 December 2019 amount to 12,295 (2018: 33,046; 2017: 23,666)2021 (2020: nil; 2019: 12,295) and an amount of 20,751no cash awards vested and areor were deemed settled for the year ended 31 December 2019 (2018: 15,209, 2017: 6,754)2021 (2020: 12,295; 2019: 20,751).
Deferred Share Plan (DSP)
The Deferred Share Plan (DSP)DSP was implemented with effect from 1 January 2018, with the first awards for the scheme allocated in March 2019. This represents a single scheme under which share awards will be allocated to certain employees from 2019 onwards, vesting equally over a period of 2, 3 and 5 years depending on the level of seniority of the participant.



F - 34
Table of Contents






NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)

11    SHARE-BASED PAYMENTS (continued)




Equity-settled incentive schemes (continued)
Award date (unvested awards and awards vested during the year)202120202019
Calculated fair valueR308.97 R325.97 R204.42 
DSP 2 year
Vesting date 50%24 Feb 202225 Feb 202121 Feb 2020
Vesting date 50%24 Feb 202325 Feb 202221 Feb 2021
DSP 3 year
Vesting date 33%24 Feb 202225 Feb 202121 Feb 2020
Vesting date 33%24 Feb 202325 Feb 202221 Feb 2021
Vesting date 34%24 Feb 202425 Feb 202321 Feb 2022
DSP 5 year
Vesting date 20%24 Feb 202225 Feb 202121 Feb 2020
Vesting date 20%24 Feb 202325 Feb 202221 Feb 2021
Vesting date 20%24 Feb 202425 Feb 202321 Feb 2022
Vesting date 20%24 Feb 202525 Feb 202421 Feb 2023
Vesting date 20%24 Feb 202625 Feb 202521 Feb 2024
Expiry date24 Feb 203125 Feb 203021 Feb 2029
Number of shares
202120202019
Awards outstanding at beginning of year2,289,762 1,599,360 — 
Awards granted during the year1,185,348 1,176,532 1,669,191 
Awards lapsed during the year(322,814)(155,575)(55,208)
Awards exercised during the year(459,913)(330,555)(14,623)
Awards outstanding at end of year2,692,383 2,289,762 1,599,360 
Awards exercisable at end of year588,694 183,439 — 

Long Term Incentive Plan (LTIP)
Award date (unvested awards and awards vested during the year)2019
Calculated fair valueR204.42
DSP 2 year
Vesting date 50%21 Feb 2020
Vesting date 50%21 Feb 2021
DSP 3 year
Vesting date 33%21 Feb 2020
Vesting date 33%21 Feb 2021
Vesting date 34%21 Feb 2022
DSP 5 year
Vesting date 20%21 Feb 2020
Vesting date 20%21 Feb 2021
Vesting date 20%21 Feb 2022
Vesting date 20%21 Feb 2023
Vesting date 20%21 Feb 2024
Expiry date21 Feb 2029
2015
Number of shares
2019
Awards outstanding at beginning of year

Awards granted during the year

1,669,191
Awards lapsed during the year(55,208)
Awards exercised during the year(14,623)
Awards outstanding at end of year1,599,360

Long Term Incentive Plan (LTIP)
Calculated fair valueR129.94 
Award date (unvested awards and awards vested during the year)2015
Calculated fair value

R129.94
Vesting date3 Mar 2018
Expiry date3 Mar 2025
Number of shares
202120202019
Awards outstanding at beginning of year111,562 229,639 447,842 
Awards lapsed during the year— — — 
Awards exercised during the year(2,333)(118,077)(218,203)
Awards outstanding at end of year109,229 111,562 229,639 
Awards exercisable at end of year109,229 111,562 229,639 
F - 35
 Number of shares
 2019
 2018
 2017
Awards outstanding at beginning of year447,842
 2,466,357
 4,363,330
Awards lapsed during the year—
 (1,186,330) (1,512,857)
Awards exercised during the year(218,203) (832,185) (384,116)
Awards outstanding at end of year229,639
 447,842
 2,466,357
Awards exercisable at end of year229,639
 447,842
 455,914
Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)


11    SHARE-BASED PAYMENTS (continued)


10    TAXATION
Figures in millionsUS Dollars
202120202019
South African taxation
Normal taxation— 1 — 
Prior year over provision(1)— — 
Deferred taxation
Other temporary differences— 74 (18)
Change in estimated deferred tax rate— — (14)
(1)75 (32)
Foreign taxation
Normal taxation252 553 299 
Prior year (over) under provision(3)8 (1)
Deferred taxation
Temporary differences52 9 (28)
Prior year under (over) provision4 (6)1 
Change in estimate6 (14)9 
Change in statutory tax rate2 — 2 
313 550 282 
312 625 250 


Equity-settled incentive schemes (continued)


Co-Investment Plan (CIP)
 Number of shares
 2019
 2018
 2017
Awards outstanding at beginning of year112,578
 95,378
 97,651
Awards granted during the year—
 80,809
 112,105
Awards lapsed during the year(16,500) (11,633) (62,775)
Awards matched during the year(72,151) (51,976) (51,603)
Awards outstanding at end of year23,927
 112,578
 95,378

Cash-Settled Long Term Incentive Plan (CSLTIP)

There were no changes to rules or practices within the CSLTIP scheme, and no awards during 2018 and 2019.
Award date (unvested awards and awards vested during the year)    
  2017 2016
Vesting date
1 March 2020 1 March 2019
 Number of units
 2019
2018
2017
Share units outstanding at beginning of year3,815,761
4,469,618
2,464,630
Share units granted during the year—
—
2,572,437
Share units lapsed during the year(1,305,761)(611,265)(507,597)
Share units exercised during the year(1,029,438)(42,592)(59,852)
Share units outstanding at end of year1,480,562
3,815,761
4,469,618

The closing share price at 31 December 2019 is R316.50 (2018: R181.75; 2017: R128.62).


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)




12    TAXATION
Figures in millionsUS Dollars
 2019
 2018
 2017
South African taxation     
Normal taxation—
 —
 1
Prior year (over) under provision—
 (2) —
Deferred taxation     
Other temporary differences(18) (27) (42)
Change in estimated deferred tax rate(14) 7
 10
 (32)
(22)
(31)
Foreign taxation     
Normal taxation299
 243
 201
Prior year (over) under provision(1) 1
 (26)
Deferred taxation     
Temporary differences(28) (6) 19
Prior year (over) under provision1
 4
 2
Change in estimate9
 (7) —
Change in statutory tax rate2
 (1) (2)
 282
 234
 194
 250
 212
 163
      

Reconciliation to South African statutory rate
Figures in millionsUS Dollars
Reconciliation to South African statutory rate202120202019
Implied tax charge at 28%268 445 173 
Increase (decrease) due to:
Expenses not tax deductible(1)
22 29 28 
Share of associates and joint ventures' profit(70)(78)(47)
Tax rate differentials(2) and withholding taxes(3)
54 96 39 
Exchange variations and translation adjustments6 28 11 
Current year tax losses (expense) not recognised:
Obuasi6 (6)14 
AngloGold Ashanti Holdings plc25 31 29 
   North America13 4 6 
   Siguiri (4)
(37)(8)— 
   SA Corporate18 — — 
Change in planned utilisation of deferred tax assets and impact of estimated deferred tax rate change6 (14)(5)
Tax effect of retained SA items— 16 3 
Tax allowances— (1)(1)
Derecognition of deferred tax assets— 78 — 
Impact of statutory tax rate change2 — 2 
Adjustment in respect of prior years— 2 — 
Other(1)3 (2)
Income tax expense312 625 250 
Figures in millionsUS Dollars
Reconciliation to South African statutory rate2019
 2018
 2017
      
Implied tax charge at 28%173

125

92
Increase (decrease) due to: 
   
Expenses not tax deductible(1)
28
 28
 25
Share of associates and joint ventures' (profit) loss(47) (34) (6)
Tax rate differentials(2)
39
 25
 29
Exchange variations, translation and accounting adjustments11
 24
 6
Current year tax losses not recognised (recognised) in deferred tax assets:     
Obuasi mine14
 13
 18
AngloGold Ashanti Holdings plc(3)
29
 36
 —
   North America6
 6
 —
Tax exempt entities:
 
 
AngloGold Ashanti Holdings plc(3)
—
 —
 31
Other(2) (1) —
Change in planned utilisation of deferred tax assets and impact of estimated deferred tax rate change(5) —
 10
Tax effect of retained SA items

3
 (10) (13)
Tax allowances(1) (2) (3)
Impact of statutory tax rate change2
 (1) (2)
Adjustment in respect of prior years—
 3
 (24)
Income tax expense250
 212
 163
(1) Includes corporate, exploration and othernon-tax deductible rehabilitation costs transfer pricing and British Virgin Isle group losses.
(2) Due to different tax rates in various jurisdictions.jurisdictions, primarily Tanzania, Ghana, Guinea, Australia, Brazil and Argentina.
(3) During 2018, AngloGold Ashanti Holdings plc changed its Withholding taxes on dividends paid.
(4) Siguiri current tax jurisdiction from the Isleexpense not recognised due to tax holiday.
F - 36
Table of Man (taxed at 0% in 2017) to the United Kingdom (taxed at 19% in 2018 and 19% in 2019).Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)

10    TAXATION (continued)

12    TAXATION (continued)

Figures in millionsUS DollarsFigures in millionsUS Dollars

2019

2018

2017
202120202019
Analysis of unrecognised deferred tax assets




Analysis of unrecognised deferred tax assets
Tax losses available to be utilised against future profits




Available to be utilised against future profitsAvailable to be utilised against future profits
- utilisation required within one year—
 48
 —
- utilisation required within one year54 62 — 
- utilisation required between one and two years85
 187
 48
- utilisation required between one and two years177 54 85 
- utilisation required between two and five years356
 300
 333
- utilisation required between two and five years1,339 352 356 
- utilisation required between five and twenty years973
 1,229
 1,210
- utilisation required between five and twenty years989 1,002 973 
- utilisation in excess of twenty years73
 26
 1
- utilisation in excess of twenty years449 421 73 

1,487
 1,790
 1,592
3,008 1,891 1,487 
At the statutory tax rates the unrecognised value of deferred tax assets are: $389m (2018: $501m; 2017: $470m)is: $834m (2020: $487m; 2019: $389m), mainly relating to tax losses incurred in the United Kingdom, North America, Ghana, Colombia and Colombia.South Africa. Unutilised capital allowances in Ghana of $1bn were converted into tax losses in 2021. The losses are forfeited if not utilised within five years.


Income tax uncertainties


AngloGold Ashanti operates in numerous countries around the world and accordingly is subject to, and pays annual income taxes under, the various income tax regimes in the countries in which it operates. Some of these tax regimes are defined by contractual agreements with local government, and others are defined by the general corporate income tax laws of the country. The group has historically filed, and continues to file, all required income tax returns and to pay the taxes reasonably determined to be due. In some jurisdictions, tax authorities are yet to complete their assessments for previous years. The tax rules and regulations in many countries are highly complex and subject to interpretation. From time to time, the group is subject to a review of its historic income tax filings and in connection with such reviews, disputes can arise with the tax authorities over the interpretation or application of certain rules in respect of the group’s business conducted within the country involved. Significant judgement is required in determining the worldwide provisions for income taxes due to the complexity of legislation.Therelegislation. There are many transactions and calculations for which the ultimate tax determination is uncertain during the ordinary course of business.

The IFRS Interpretations Committee issued IFRIC23, which clarifies how the recognition and measurement requirements of income taxes are applied where there is uncertainty over income tax treatments. IFRIC 23 was adopted by the group on 1 January 2019.


Irrespective of whether potential economic outflows of matters have been assessed as probable or possible, individually significant matters are included below, to the extent that disclosure does not prejudice the group.


Argentina - Cerro Vanguardia SA
The Argentina Tax Authority has challenged the deduction of certain hedge losses, with tax and penalties amounting to $10m (2018: $14m; 2017: $27m)$7m (2020: $8m; 2019: $10m). Management has appealed this matter which has been heard by the Tax Court, with final evidence submitted in 2017. The matter is pending and judgement is expected in the next 24 months.months as at 31 December 2021. Management is of the opinion that the hedge losses were claimed correctly and no provision has therefore been made.


Brazil - AGA Mineração and Serra Grande
The Brazil Tax Authority has challenged various aspects of the Companies’companies’ tax returns for periods from 20032005 to 2016 which individually and in aggregate are not considered to be material. Based on the engagement with the Brazil Tax Authority, certain amounts have been allowed and assessments reduced, whilst objections have been lodged against the remainder of the findings. In December 2019, Serra Grande received a tax assessment of approximately $25m$19m (2020: $20m; 2019: $25m) relating to the amortisation of goodwill on the acquisition of mining interests, which is permitted as a tax deduction when the acquirer is a domiciled entity. Management is of the opinion that the Brazil Tax Authority is unlikely to succeed in this matter. This is supported by external legal advice and therefore no provision has been made.


Colombia - La Colosa and Gramalote
The tax treatment of exploration expenditure has been investigated by the Colombian Tax Authority which resulted in claims for taxes and penalties of $88m$74m(1) (2018: $144m; 2017: $150m) (2020: $86m; 2019: $88m) pertaining to the 2010 to 2014 tax years.


These assessments were appealed in 2016 (in the case of La Colosa) and resulted in an adverse judgement on 22 October 2018, in the Administrative Court of Cundinamarca. An appeal was lodged and all arguments submitted to the Council of State on 21 August 2018, with an expected judgement in the next 12 to 18 months.months as at 31 December 2021. The deduction of exploration costs is prohibited from 2017 onwards following a change in legislation. Subsequent to this date, exploration costs have been treated in accordance with the amended legislation. In July 2019, the Supreme Administrative Court issued a ruling that duplicate penalties may not be charged. The impact of the ruling is that certain penalties will be waived, which reduces the overall exposure by $76m.$48m (2020: $76m; 2019: $76m). The matter is pending and may take two to four years to be resolved. Management is of the opinion that the Colombian Tax Authority is unlikely to succeed in this matter and therefore no provision ishas been made.


(1) Includes After reduction of overall exposure by $48m (2020: $76m; 2019: $76m ) as described above.


GuineaGhana - SiguiriIduapriem
The Guinea TaxGhana Revenue Authority has challenged various aspectscompleted a tax audit during the third quarter of 2020 for the Companies’2018 year of assessment claiming a tax returnsliability of $14m (2020: $15m). The claim relates to corporate income taxes, where certain business expenses have been disallowed as a deduction for periodstax purposes. Management filed an objection to the assessment in September 2020 and a tax appeal with the High Court during the fourth quarter of 2010, and 2014 to 2016 totalling $12m (attr.) (2018: $8m (attr.);2017: $8m (attr.)).2021. Management has objected to these assessments but has provided for a portion of the total claims amounting to $2m (attr.) (2018: $2m (attr.); 2017: $2m(attr.)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)

12    TAXATION (continued)

Mali - Sadiola, Yatela, Morila
The Mali Tax Authority has challenged various aspects of the Companies’ tax returns for periods of 2012 to 2018 totalling $26m (attr.) (2018: $16m (attr.); 2017: $16m(attr.)). This includes an assessment of $10m (attr.) received in late December 2019. Management has objected to these assessments and is of the opinion that the TaxGhana Revenue Authority is unlikely to succeed in this matter and therefore no provision has been made.



F - 37
Table of Contents

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)

10    TAXATION (continued)

Guinea - Siguiri
The Guinea Tax Authority has challenged certain aspects of Société AngloGold Ashanti de Guinée S.A.'s tax return for the 2010 year of assessment totaling $8m (attributable) (2020: $8m (attributable); 2019: $12m (attributable)). Management has objected to the assessment. However, provision has been made for a portion of the total claims amounting to $2m (attributable) (2020: $2m (attributable); 2019: $2m (attributable)).

Mali – Yatela and AGA Mali Services
The Mali Tax Authority has challenged various aspects of Société des Mines de Yatela S.A. and Société AngloGold Ashanti Mali S.A.'s tax returns for periods of 2012 to 2019 totaling $4m (attributable) (2020: $1m (attributable); 2019: $1m (attributable)). Management is of the opinion that the Mali Tax Authority is unlikely to succeed in the tax matters and therefore no provision has been made.

Tanzania - Geita Gold Mine
The Tanzania Revenue Authority has raised audit findings on various tax matters for years from 2009 to 20182020 amounting to $164m (2018: $163m; 2017: $113m).$291m (2020: $254m; 2019: $164m) including adjusted tax assessments relating to the years from 2015 to 2020 totaling $36m received during 2021. In addition, the Tanzania Revenue Authority has issued Agency Notices on various local bank accounts of the Company in Tanzania, enforcing payments from those bank accounts, despite the matters being on appeal. In order to continue operating its bank accounts and to not impact operations, Geita paid $25m under protest. Management has objected and appealed through various levels of the legislative processes and has provided for a portion of the total claims amounting to $2m (2018: $2m; 2017: $2m).administrative processes. Management is of the opinion that for the remainderclaims of the claims the TaxTanzania Revenue Authority isare unlikely to succeed and therefore no provision has been made.succeed.


In addition, to the above, it should be noted that amendments passed to Tanzanian legislation in 2017 amended the 2010 Mining Act and new Finance Act. Effective from 1 July 2017, the gold mining royalty rate increased to 6% (from 4%) and further a 1% clearing fee on the value of all minerals exported was imposed. The group has been paying the higher royalty and clearing fees since this date, under protest, and is of the view that this is in contravention of its Mining Development Agreement.



Tax impacts of COVID-19

As a result of the COVID-19 pandemic, governments have responded with various stimulus packages, to provide relief to companies and individuals, to ensure business and employment continuity. This has been achieved through various tax and employment concessions, over varying periods, mostly commencing in April 2020. In North America, the US Government passed the Coronavirus Aid, Relief and Economic Security (CARES) Act on 27 March 2020. The bill provides various tax relief and incentives such as accelerated access to tax attributes created under the Tax Cuts and Jobs Act of 2017 (TCJA) and resulted in an alternative minimum tax refund of $7m received during 2021. Other tax jurisdictions have provided tax relief in various forms to companies which will impact on tax planning and tax payments in the light of the uncertainty created by the pandemic. Management continues to evaluate these tax measures and applies them when appropriate.


F - 38
Table of Contents

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

1311    EARNINGS (LOSS) PER ORDINARY SHARE
202120202019
US cents per share
Basic earnings (loss) per ordinary share148 227 (3)
- Continuing operations148 225 87 
The calculation of basic earnings (loss) per ordinary share is based on profits (losses) attributable to equity shareholders of $622m (2020: $946m; 2019: $364m) and 419,755,627 (2020: 419,033,516; 2019: 418,349,777) shares being the weighted average number of ordinary shares in issue during the financial year.
- Discontinued operations— 2 (90)
The calculation of basic earnings (loss) per ordinary share is based on profits (losses) attributable to equity shareholders of nil (2020: $7m; 2019: $(376)m) and 419,755,627 (2020: 419,033,516; 2019: 418,349,777) shares being the weighted average number of ordinary shares in issue during the financial year.
Diluted earnings (loss) per ordinary share148 227 (3)
- Continuing operations148 225 87 
The calculation of diluted earnings (loss) per ordinary share is based on profits (losses) attributable to equity shareholders of $622m (2020: $946m; 2019: $364m) and 420,056,703 (2020: 419,481,450; 2019: 418,349,777) shares being the diluted number of ordinary shares.
- Discontinued operations— 2 (90)
The calculation of diluted earnings (loss) per ordinary share is based on profits (losses) attributable to equity shareholders of nil (2020: $7m; 2019: $(376)m) and 420,056,703 (2020: 419,481,450; 2019: 418,349,777) shares being the weighted average number of ordinary shares in issue during the financial year.

 2019
 2018
 2017
 US cents per share
Basic earnings (loss) per ordinary share(3) 32
 (46)
- Continuing operations87
 52
 35
The calculation of basic earnings (loss) per ordinary share is based on profits (losses) attributable to equity shareholders of $364m (2018: $216m; 2017: $145m) and 418,349,777 (2018: 417,122,155; 2017: 415,440,077) shares being the weighted average number of ordinary shares in issue during the financial year.     
- Discontinued operations(90) (20) (81)
The calculation of basic earnings (loss) per ordinary share is based on profits (losses) attributable to equity shareholders of ($376m) (2018: ($83m); 2017: ($336m)) and 418,349,777 (2018: 417,122,155; 2017: 415,440,077) shares being the weighted average number of ordinary shares in issue during the financial year.     
      
Diluted earnings (loss) per ordinary share(3) 32
 (46)
- Continuing operations87
 52
 35
The calculation of diluted earnings (loss) per ordinary share is based on profits (losses) attributable to equity shareholders of $364m (2018: $216m; 2017: $145m)and 418,349,777 (2018: 417,379,405; 2017: 415,440,077) shares being the diluted number of ordinary shares.     
- Discontinued operations(90) (20) (81)
The calculation of diluted earnings (loss) per ordinary share is based on profits (losses) attributable to equity shareholders of ($376m) (2018: ($83m); 2017: ($336m)) and 418,349,777 (2018: 417,379,405; 2017: 415,440,077) shares being the diluted number of ordinary shares.     

In calculating the basic and diluted number of ordinary shares outstanding for the year, the following were taken into consideration:
Number of shares
202120202019
Ordinary shares417,272,178 416,399,307 414,407,622 
Fully vested options and currently exercisable(1)
2,483,449 2,634,209 3,942,155 
Weighted average number of shares419,755,627 419,033,516 418,349,777 
Dilutive potential of share options(2)
301,076 447,934 — 
Fully diluted number of ordinary shares420,056,703 419,481,450 418,349,777 
(1)Employee compensation awards are included in basic earnings per share from the date that all necessary conditions have been satisfied and it is virtually certain that shares will be issued as a result of employees exercising their options.
(2)The number of share options that could potentially dilute basic earnings in the future were not included. The anti-dilutive effect was nil (2020: nil; 2019: 517,186).

F - 39
 Number of shares
 2019
 2018
 2017
Ordinary shares414,407,622
 411,412,947
 409,265,471
Fully vested options and currently exercisable(1)
3,942,155
 5,709,208
 6,174,606
Weighted average number of shares418,349,777
 417,122,155
 415,440,077
Dilutive potential of share options(2)
—
 257,250
 —
Fully diluted number of ordinary shares418,349,777
 417,379,405
 415,440,077
(1)
Employee compensation awards are included in basic earnings per share from the date that all necessary conditions have been satisfied and it is virtually certain that shares will be issued as a result of employees exercising their options.
(2)
The number of share options that could potentially dilute basic earnings in the future but were not included as the effect was anti-dilutive were 517,186 (2018: nil; 2017:576,426)
Table of Contents
 US Dollars
Figures in millions2019
 2018
 2017
Headline earnings (loss)     
The profit (loss) attributable to equity shareholders was adjusted by the following to arrive at headline earnings (loss):     
Profit (loss) attributable to equity shareholders From continuing and discontinued operations(12) 133
 (191)
Net impairment (impairment reversal) and derecognition of assets559
 102
 298
Net (profit) loss on disposal of assets(3) 32
 (8)
Taxation thereon(165) (47) (72)
 379
 220
 27




NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)



1311    EARNINGS (LOSS) PER ORDINARY SHARE (continued)
US Dollars
Figures in millions202120202019
Headline earnings (loss)(2)
The profit (loss) attributable to equity shareholders was adjusted by the following to arrive at headline earnings (loss):
Profit (loss) attributable to equity shareholders from continuing and discontinued operations622 953 (12)
Net (impairment reversal) impairment on held for sale assets— (17)549 
Taxation on net impairment on held for sale assets— — (165)
Net impairment on property, plant and equipment and right of use asset (1)
2 — — 
Derecognition of assets (1)
4 — 10 
Loss on disposal of discontinued operations— 80 — 
Taxation on loss on disposal of discontinued operations— 1 — 
Profit on sale of joint ventures (1)
— (19)— 
Net loss (profit) on disposal of tangible assets(17)2 (3)
Taxation on net (profit) loss on disposal of assets1 — — 
612 1,000 379 
(1) Tax effect has not been disclosed as the tax is less than $1m.
(2) Headline earnings and headline earnings per share disclosure has been included due to Johannesburg Stock Exchange requirements.

US Cents
Basic headline earnings (loss) per share
The calculation of basic headline earnings (loss) per ordinary share is based on basic headline earnings (losses) of $612m (2020: $1,000m; 2019: $379m) and 419,755,627 (2020: 419,033,516; 2019: 418,349,777) shares being the weighted average number of ordinary shares in issue during the year.146 238 91 
Diluted headline earnings (loss) per share
The calculation of diluted headline earnings (loss) per ordinary share is based on diluted headline earnings (losses) of $612m (2020: $1,000m; 2019: $379m) and 420,056,703 (2020: 419,481,450; 2019: 418,349,777) shares being the weighted average number of ordinary shares in issue during the year.146 238 91 


12    DIVIDENDS
US Dollars
Figures in millions202120202019
Ordinary shares
Dividend number 120 of 95 SA cents per share was declared on 19 February 2019 and paid on 8 April 2019 (7 US cents per share).27 
Dividend number 121 of 165 SA cents per share was declared on 21 February 2020 and paid on 27 March 2020 (9 US cents per share).38 
Dividend number 122 of 705 SA cents per share was declared on 22 February 2021 and paid on 26 March 2021 (48 US cents per share)199 
Dividend number 123 of 87 SA cents per share was declared on 6 August 2021 and paid on 10 September 2021 (6 US cents per share)25 
224 38 27 

F - 40
 US Cents
Basic headline earnings (loss) per share     
The calculation of basic headline earnings (loss) per ordinary share is based on basic headline earnings (losses) of $379m (2018: $220m; 2017: $27m) and 418,349,777 (2018: 417,122,155; 2017: 415,440,077) shares being the weighted average number of ordinary shares in issue during the year.91
 53
 6
Diluted headline earnings (loss) per share     
The calculation of diluted headline earnings (loss) per ordinary share is based on diluted headline earnings (losses) of $379m (2018: $220m; 2017: $27m) and 418,349,777 (2018: 417,379,405; 2017: 415,440,077) shares being the weighted average number of ordinary shares in issue during the year.91
 53
 6
Table of Contents

14    DIVIDENDS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
  US Dollars
Figures in million 2019
 2018
 2017
Ordinary shares      
Dividend number 118 of 130 SA cents per share was declared on 21 February 2017 and paid on 7 April 2017 (10 US cents per share)     39
Dividend number 119 of 70 SA cents per share was declared on 20 February 2018 and paid on 6 April 2018 (6 US cents per share).   24
  
Dividend number 120 of 95 SA cents per share was declared on 19 February 2019 and paid on 8 April 2019 (7 US cents per share). 27
    
  27
 24
 39

1513    TANGIBLE ASSETS
Figures in millionsMine
development
costs		Mine
infra-
structure		Mineral
rights
and
dumps		Exploration
and
evaluation
assets		Assets
under
construction
Land and
buildings(2)
Total
US Dollars
Cost
Balance at 1 January 20195,674 4,212 888 4 512 77 11,367 
Additions
- project capital43 — — 1 281 14 339 
- stay-in-business capital208 25 1 2 188 — 424 
Finance costs capitalised(3)
— — — — 6 — 6 
Disposals(1)(16)— — — — (17)
Transfers and other movements(1)
(259)219 1 — (489)(16)(544)
Transfer to assets and liabilities held for sale(660)(663)(9)— (90)(9)(1,431)
Translation(4)(1)— — (3)— (8)
Balance at 31 December 20195,001 3,776 881 7 405 66 10,136 
Accumulated amortisation and impairments
Balance at 1 January 20194,184 2,911 849 3 27 12 7,986 
Amortisation for the year392 215 1 1 — — 609 
Impairment and derecognition of
assets (4)
243 172 — — 90 — 505 
Disposals(1)(15)— — — — (16)
Transfers and other movements(1)
(455)(53)1 — (3)(12)(522)
Transfer to assets and liabilities held for sale(488)(422)(5)— (88)— (1,003)
Translation(9)(5)— — (1)— (15)
Balance at 31 December 20193,866 2,803 846 4 25 — 7,544 
Net book value at 31 December 20191,135 973 35 3 380 66 2,592 
Cost
Balance at 1 January 20205,001 3,776 881 7 405 66 10,136 
Additions
- project capital64 — — 1 246 20 331 
- stay-in-business capital180 8 1 — 179 2 370 
Finance costs capitalised(3)
— — — — 17 — 17 
Disposals(1)(26)— — — — (27)
Transfers and other movements(1)
(1,076)186 (699)2 (320)24 (1,883)
Translation157 9 5 (1)6 — 176 
Balance at 31 December 20204,325 3,953 188 9 533 112 9,120 
Accumulated amortisation and impairments
Balance at 1 January 20203,866 2,803 846 4 25 — 7,544 
Amortisation for the year345 179 5 1 — — 530 
Disposals(1)(25)— — — — (26)
Transfers and other movements(1)
(1,208)(33)(699)— — — (1,940)
Translation117 6 4 — 1 — 128 
Balance at 31 December 20203,119 2,930 156 5 26 — 6,236 
Net book value at 31 December 20201,206 1,023 32 4 507 112 2,884 
F - 41
Figures in millions
Mine
development
costs

 
Mine
infra-
structure(2)

 
Mineral
rights
and
dumps

 
Exploration
and
evaluation
assets

 
Assets
under
construction

 
Land and
buildings(3)(4)

 Total
US Dollars             
              
Cost             
Balance at 1 January 20175,943
 4,576
 919
 5
 450
 82
 11,975
Additions            
- project capital28
 3
 —
 —
 125
 —
 156
- stay-in-business capital371
 37
 —
 —
 257
 —
 665
Disposals(1) (20) —
 —
 —
 —
 (21)
Transfers and other movements(1)
(168) (21) (27) —
 (291) 1
 (506)
Transfer to assets and liabilities held for sale(785) (281) (7) —
 (72) (3) (1,148)
Translation174
 88
 7
 —
 21
 3
 293
Balance at 31 December 20175,562

4,382

892

5

490

83

11,414
              
Accumulated amortisation and impairments             
Balance at 1 January 20174,163
 2,792
 868
 3
 26
 12
 7,864
Amortisation for the year553
 272
 3
 —
 —
 1
 829
Impairment and derecognition of
assets (5)
182
 62
 8
 —
 1
 —
 253
Disposals(1) (20) —
 —
 —
 —
 (21)
Transfers and other movements(1)
(326) (163) (27) —
 —
 —
 (516)
Transfer to assets and liabilities held for sale(685) (169) (4) —
 (1) —
 (859)
Translation93
 22
 5
 —
 —
 2
 122
Table of Contents


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)


1513    TANGIBLE ASSETS (continued)





Figures in millionsMine
development
costs		Mine
infra-
structure		Mineral
rights
and
dumps		Exploration
and
evaluation
assets		Assets
under
construction
Land and
buildings(2)
Total
US Dollars
Cost
Balance at 1 January 20214,325 3,953 188 9 533 112 9,120 
Additions
- project capital68 — — 5 300 19 392 
- stay-in-business capital274 17 — — 344 — 635 
Finance costs capitalised (3)
— — — — 14 — 14 
Disposals(2)(23)— — — (5)(30)
Transfers and other movements(1)
140 (207)— (2)(320)— (389)
Translation(107)(6)(3)— (5)— (121)
Balance at 31 December 20214,698 3,734 185 12 866 126 9,621 
Accumulated amortisation and impairments
Balance at 1 January 20203,119 2,930 156 5 26 — 6,236 
Amortisation for the year243 166 6 2 — — 417 
Impairment and derecognition of assets(4)
— 6 — — — — 6 
Disposals(1)(22)— — — — (23)
Transfers and other movements(1)
(79)(311)— — — — (390)
Translation(78)(4)(3)— — — (85)
Balance at 31 December 20213,204 2,765 159 7 26 — 6,161 
Net book value at 31 December 20211,494 969 26 5 840 126 3,460 
(1)Transfers and other movements include amounts from deferred stripping, changes in estimates of decommissioning assets, asset reclassifications, derecognition of assets and initial recognition of joint operation share of property, plant and equipment.
Figures in millions
Mine
development
costs

 
Mine
infra-
structure(2)

 
Mineral
rights
and
dumps

 
Exploration
and
evaluation
assets

 
Assets
under
construction

 
Land and
buildings(3)(4)

 Total
Balance at 31 December 20173,979

2,796

853

3

26

15

7,672
Net book value at 31 December 20171,583

1,586

39

2

464

68

3,742
              
Cost             
Balance at 1 January 20185,562
 4,382
 892
 5
 490
 83
 11,414
Additions            
- project capital2
 —
 —
 —
 175
 —
 177
- stay-in-business capital294
 20
 3
 —
 149
 1
 467
Disposals(5) (30) —
 (1) —
 (3) (39)
Transfers and other movements(1)
60
 (41) —
 —
 (270) 1
 (250)
Translation(239) (119) (7) —
 (32) (5) (402)
Balance at 31 December 20185,674

4,212

888

4

512

77

11,367
              
Accumulated amortisation and impairments             
Balance at 1 January 20183,979
 2,796
 853
 3
 26
 15
 7,672
Amortisation for the year397
 233
 2
 1
 —
 1
 634
Impairment and derecognition of assets(5)
—
 104
 —
 —
 —
 —
 104
Disposals(5) (27) —
 (1) —
 (2) (35)
Transfers and other movements(1)
(52) (153) —
 —
 —
 —
 (205)
Translation(135) (42) (6) —
 1
 (2) (184)
Balance at 31 December 20184,184

2,911

849

3

27

12

7,986
Net book value at 31 December 20181,490

1,301

39

1

485

65

3,381
              
              
Cost             
Balance at 1 January 20195,674
 4,212
 888
 4
 512
 77
 11,367
Additions            
- project capital43
 —
 —
 1
 281
 14
 339
- stay-in-business capital208
 25
 1
 2
 188
 —
 424
Finance costs capitalised—
 —
 —
 —
 6
 —
 6
Disposals(1) (16) —
 —
 —
 —
 (17)
Transfers and other movements(1)
(259) 219
 1
 —
 (489) (16) (544)
Transfer to assets and liabilities held for sale(660) (663) (9) —
 (90) (9) (1,431)
Translation(4) (1) —
 —
 (3) —
 (8)
Balance at 31 December 20195,001
 3,776
 881
 7
 405
 66
 10,136
              
Accumulated amortisation and impairments             
Balance at 1 January 20194,184
 2,911
 849
 3
 27
 12
 7,986
Amortisation for the year392
 215
 1
 1
 —
 —
 609
Impairment and derecognition of assets(5)
243
 172
 —
 —
 90
 —
 505
Disposals(1) (15) —
 —
 —
 —
 (16)
Transfers and other movements(1)
(455) (53) 1
 —
 (3) (12) (522)
Transfer to assets and liabilities held for sale(488) (422) (5) —
 (88) —
 (1,003)
Translation(9) (5) —
 —
 (1) —
 (15)
Balance at 31 December 20193,866
 2,803
 846
 4
 25
 —
 7,544
Net book value at 31 December 20191,135
 973
 35
 3
 380
 66
 2,592
(2)Assets of $6m (2020: $7m; 2019: $9m) have been pledged as security.

(3)The weighted average capitalisation rate used to determine the amount of borrowing costs eligible for capitalisation was 4.96% (2020: 4.52%; 2019: 5.60%)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)(4)Impairment of assets is assessed as follows:

15    TANGIBLE ASSETS (continued)



(1)
Transfers and other movements include amounts from deferred stripping, change in estimates of decommissioning assets, asset reclassifications and derecognition of assets.
(2)
Included in the amounts for mine infrastructure are assets held under finance leases with a net book value of nil (2018: $45m; 2017: $56m).
(3)
Included in the amounts for land and buildings are assets held under finance leases with a net book value of nil (2018: $3m; 2017: $6m).
(4)
Assets of $9m (2018: $10m; 2017: $11m) have been pledged as security.
(5)
Impairment and derecognition of assets is assessed as follows:


Impairment calculation assumptions as at 31 December 20192021 - goodwill, tangible and intangible assets
Management assumptions for the value in use of tangible assets and goodwill include:
•the gold price assumption represents management’s best estimate of the future price of gold. A long-term real gold price of $1,300/$1,599/oz (2018: $1,239/(2020: $1,450/oz; 2019:$1,300/oz) is based on a range of economic and market conditions that will exist over the remaining useful life of the assets.
Annual life of mine plans take into account the following:
proved•Proven and probable Ore Reserve;Probable Mineral Reserve
•value beyond provedProven and probable reservesProbable Mineral Reserve (including exploration potential) determined using the gold price assumption referred to above;
•In determining the impairment for each cash generating unit, the real pre-tax rate was derived from the weighted average cost of capital (WACC) using the Capital Asset Pricing Model (CAPM) to determine the required return on equity with risk factors consistent with the basis used in 2018.2020. At 31 December 2019,2021, the derived group WACC was 8.1%8.6% (real post-tax) which is 2050 basis points lower than in 20182020 of 8.3%9.1%, and is based on the industry average capital structure of the major gold companies considered to be appropriate peers. In determining the WACC for each cash generating unit, sovereign and mining risk factors are considered to determine country specific risks. In certain instances, a specific risk premium was added to large projects being undertaken or the turnaround nature of a specific mine to address uncertainties in the forecast of the cash flows;
•foreign currency cash flows translated at estimated forward exchange rates and then discounted using appropriate discount rates for that currency;
•cash flows used in impairment calculations are based on life of mine plans which range from 1 year6 years to 3929 years; and
•variable operating cash flows are increased at local Consumer Price Index rates.



F - 42
Table of Contents

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)

13    TANGIBLE ASSETS (continued)


Impairments and derecognitions of tangible assets


For theyear ended 31 December, the following impairments and derecognitions of tangible assets were recognised:recognised for the following cash generating units (CGUs):
Figures in millions - US Dollars2021
Obuasi4
Gramalote1
Corporate1
6
Figures in millions - US Dollars
2019 (1)

2018
2017
First Uranium - Mine Waste Solutions89
93
13
TauTona—
—
79
Kopanang—
—
35
Surface Operations18
1
9
Moab Khotsong—
—
112
Mponeng384
4
2
Covalent11
—
—
Obuasi—
5
—
Siguiri2
—
—
AGA Mineração

1
—
—
Other—
1
3
 505
104
253

(1) Includes impairment of the South African asset disposal group, measured at fair value less costs to sell and disclosed in Discontinued operations. Refer to note 9.


Impairment of cash generating units


The group reviews and tests the carrying value of its mining assets when events or changes in circumstances suggest that the carrying amount may not be recoverable.

On 12 February 2020, AngloGold Ashanti announced the sale of its remaining South African producing assets and related liabilities to Harmony Gold Mining Company Limited for cash and deferred payments with expected proceeds of around $300m, subject to

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)

15    TANGIBLE ASSETS (continued)



conditions. The South African assets were accordingly transferred to held for sale and written down to fair value less cost to sell. Refer to note 9.


Cash generating unitsunit with marginalthe least headroom


Based on an analysis carried out by the group in 2019,2021, the carrying value and value in use of the most sensitive cash generating unit (CGU)CGU are:
Figures in millions - US DollarsCarrying valueValue in use
AngloGold Ashanti Mineração (1)
349 418 
Figures in millions - US DollarsCarrying value
Value in use
Kibali (1)(2)
1,506
1,628
 



    


(1) It is estimated that a decrease of the long-term real gold price of $1,300/$1,599/oz by 4.2%3%, would cause the receivablerecoverable amount of KibaliAngloGold Ashanti Mineração to equal its carrying amount.amount using a real pre-tax weighted average cost of capital (WACC) discounted rate of 9.0% (2020: 11.0%). The sensitivity analysis has been provided on the basis that the key assumption changes without a change in the other assumptions. However, for a change in each of the assumptions used, it is impracticable to disclose the consequential effect of changes on the other variables used to measure the recoverable amount because these assumptions and others used in impairment testing are inextricably linked.


(2) Equity accounted investment included in investments in associates and joint ventures in the Statement


F - 43
Table of Financial Position.Contents

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)



16


14 RIGHT OF USE ASSETS AND LEASE LIABILITIES


The group leases various assets including buildings, plant and equipment and vehicles. Some of theThe group’s lease obligations are secured by the lessors’ title to the leased assets for such leases.


RIGHT OF USE ASSETS
Figures in millions - US DollarsMine Infra-
structure		Land and
buildings		Total
Cost
Impact of adopting IFRS 16 - 1 January 2019119 9 128 
Additions
- stay-in-business capital32 — 32 
Transfers and other movements(1)
58 15 73 
Transfer to assets and liabilities held for sale— (1)(1)
Translation— 1 1 
Balance at 31 December 2019209 24 233 
Accumulated amortisation and impairments
Balance at 1 January 2019— — — 
Amortisation for the year40 2 42 
Transfers and other movements(1)
21 12 33 
Balance at 31 December 201961 14 75 
Net book value at 31 December 2019148 10 158 
Cost
Balance at 1 January 2020209 24 233 
Additions
- stay-in-business capital23 — 23 
Derecognition and other movements(2)
(13)1 (12)
Translation14 (1)13 
Balance at 31 December 2020233 24 257 
Accumulated amortisation and impairments
Balance at 1 January 202061 14 75 
Amortisation for the year45 2 47 
Derecognition and other movements(2)
(11)— (11)
Translation5 (1)4 
Balance at 31 December 2020100 15 115 
Net book value at 31 December 2020133 9 142 
Cost
Balance at 1 January 2021233 24 257 
Additions
- project capital— 1 1 
- stay-in-business capital95 6 101 
Derecognition and other movements(2)
(22)(15)(37)
Translation(9)— (9)
Balance at 31 December 2021297 16 313 
F - 44
Table of Contents
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)





US dollar millions 
Mine Infra-
structure

 
Land and
buildings

 Total
       
Cost      
Impact of adopting IFRS 16 - 1 January 2019

 119
 9
 128
Additions      
- stay-in-business capital 32
 —
 32
Transfers and other movements(1)
 58
 15
 73
Transfer to non-current assets and liabilities held for sale —
 (1) (1)
Translation —
 1
 1
Balance at 31 December 2019 209
 24
 233
       
Accumulated amortisation and impairments      
Balance at 1 January 2019 —
 —
 —
Amortisation for the year 40
 2
 42
Transfers and other movements(1)
 21
 12
 33
Balance at 31 December 2019 61
 14
 75
Net book value at 31 December 2019 148
 10
 158
Accumulated amortisation and impairments
Balance at 1 January 2021100 15 115 
Amortisation for the year61 2 63 
Derecognition and other movements(2)
(22)(15)(37)
Impairment— 1 1 
Translation(4)— (4)
Balance at 31 December 2021135 3 138 
Net book value at 31 December 2021162 13 175 

(1)Relates to contracts previously classified as leases under IAS 17, which the group has reassessed upon initial transition as leases under IFRS 16 as of 1 January 2019.


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)




16.    RIGHT OF USE ASSETS AND LEASE LIABILITIES (continued)

LEASE EXPENSES
US dollar millions

2019
Amounts recognised in the income statement
Amortisation expense on right of use assets42
Interest expense on lease liabilities10
Expenses on short term leases83
Expenses on variable lease payments not included in the lease liabilities220
Expenses on leases of low value assets2

These expenses are allocated to cost of sales and corporate, administration(2)    Derecognition and other costs.movements include amounts relating to the derecognition and write-off of assets.


LEASE EXPENSES
Figures in millions - US Dollars202120202019
Amounts recognised in the income statement
Amortisation expense on right of use assets (note 4)63 47 42 
Interest expense on lease liabilities (note 6)9 8 10 
Expenses on short term leases48 107 83 
Expenses on variable lease payments not included in the lease liabilities(1)
302 234 220 
Expenses on leases of low value assets(1)
33 24 2 
(1) Includes expenses at Obuasi that have been capitalised as part of the re-development project

Total cash outflow for leases during the period amounted to $51m,$72m (2020: $55m; 2019: $51m), consisting of repayments of liabilities of $42m$63m (2020: $47m; 2019: $42m) and finance costs paid of $9m.$9m (2020: $8m;2019: $9m).




LEASE LIABILITIES
Figures in millions - US Dollars202120202019
Reconciliation of lease liabilities
A reconciliation of the lease liabilities included in the statement of financial position is set out in the following table:
Opening balance153 171 — 
Lease liabilities recognised103 23 160 
Repayment of lease liabilities(63)(47)(42)
Finance costs paid on lease liabilities(9)(8)(9)
Interest charged to the income statement9 8 10 
Reclassification of finance leases from borrowings— — 60 
Change in estimate— (1)(5)
Translation(8)7 (3)
Closing balance185 153 171 
Lease finance costs paid included in the statement of cash flows9 8 9 
Figures in millions - US Dollars202120202019
Maturity analysis of lease liabilities
Undiscounted cash flows
Less than and including 1 year69 43 52 
Between 1 and 5 years114 83 89 
Five years and more21 36 57 
Total204 162 198 
F - 45
US Dollar million2019
Lease liabilities
Non-current126
Current45
Total171
Table of Contents

US Dollar million2019
Reconciliation of lease liabilities
A reconciliation of the lease liabilities included in the statement of financial position is set out in the following table:
Opening balance
Lease liabilities recognised160
Repayment of lease liabilities(42)
Finance costs paid on lease liabilities(9)
Interest charged to the income statement10
Reclassification of finance leases from borrowings60
Change in estimate(5)
Translation(3)
Closing balance171
Lease finance costs paid included in the statement of cash flows9

US Dollar million2019
Maturity analysis of lease liabilities

Undiscounted cash flows
Less than and including 1 year52
Between 1 and 5 years89
Five years and more57
Total198







NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)










16.14.    RIGHT OF USE ASSETS AND LEASE LIABILITIES (continued)

US Dollar million2019
Reconciliation between IFRS 16 lease liabilities and lease commitments as at 31 December 2018

Lease liabilities at 1 January 2019128
Discounting of lease liabilities16
Non-qualifying leases (1)
121
Lease commitments at 31 December 2018265

Figures in millions - US Dollars202120202019
Lease liabilities
Non-current (note 34)124 116 126 
Current (note 34)61 37 45 
Total185 153 171 
(1) Non-qualifying leases include leases that are short term in nature, low value items, or where the contractual repayment structures are variable in nature only, as well as the service components of qualifying contracts, not capitalised as part of the initial cost of the right of use assets.


The companygroup does not face a significant liquidity risk with regard to its lease liabilities. Lease liabilities are monitored within the company’sgroup’s treasury function.
All lease contracts contain market review clauses in the event that AngloGold Ashantithe group exercises its option to renew.


Certain of the group’s contracts have a payment structure that is variable in nature and hence do not qualify for IFRS 16 lease accounting. These contracts consist of mostly mining and drilling contracts.services. The variable nature of these contracts is to allow equal sharing of pain and gain between the group and its contractors. The cash flows are not disclosed as their variability does not permit reliable forecasts. Short-term, low value and variable contracts continue to be recognised within cost of sales.sales and corporate administration, marketing and related expenses, except for certain expenses at Obuasi which have been capitalised as part of the re-development project.


The weighted average incremental borrowing rate at the dateend of initial application is31 December 2021 4.56% (2020: 5.38%; 2019: 4.72%).



F - 46
Table of Contents


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)







1715    INTANGIBLE ASSETS
Figures in millionsGoodwillOtherTotal
US Dollars
Cost
Balance at 1 January 2019116 167 283 
Transfer to assets and liabilities held for sale— (26)(26)
Transfers and other movements(1)
— 3 3 
Balance at 31 December 2019116 144 260 
Accumulated amortisation and impairments
Balance at 1 January 2019— 160 160 
Amortisation for the year— 3 3 
Transfer to assets and liabilities held for sale— (26)(26)
Balance at 31 December 2019— 137 137 
Net book value at 31 December 2019116 7 123 
Cost
Balance at 1 January 2020116 144 260 
Additions— 1 1 
Transfers and other movements(1)
— (49)(49)
Translation10 — 10 
Balance at 31 December 2020126 96 222 
Accumulated amortisation and impairments
Balance at 1 January 2020— 137 137 
Amortisation for the year— 2 2 
Transfers and other movements(1)
— (49)(49)
Translation— 1 1 
Balance at 31 December 2020— 91 91 
Net book value at 31 December 2020126 5 131 
Cost
Balance at 1 January 2021126 96 222 
Additions— 1 1 
Transfers and other movements(1)
— (1)(1)
Translation(7)(1)(8)
Balance at 31 December 2021119 95 214 
Accumulated amortisation and impairments
Balance at 1 January 2021— 91 91 
Amortisation for the year— 3 3 
Transfers and other movements (1)
— (1)(1)
Translation— (1)(1)
Balance at 31 December 2021— 92 92 
Net book value at 31 December 2021119 3 122 
Figures in millionsGoodwill
 Other
 Total
US Dollars     
Cost     
Balance at 1 January 2017379
 185
 564
Additions—
 1
 1
Transfer to assets and liabilities held for sale—
 (17) (17)
Transfers and other movements(1)
(263) (1) (264)
Translation11
 4
 15
Balance at 31 December 2017127

172

299
Accumulated amortisation and impairments     
Balance at 1 January 2017253
 166
 419
Amortisation for the year  6
 6
Impairment9
 —
 9
Transfer to assets and liabilities held for sale—
 (15) (15)
Transfers and other movements(1)
(263) (1) (264)
Translation1
 5
 6
Balance at 31 December 2017—

161

161
Net book value at 31 December 2017127

11

138
Cost     
Balance at 1 January 2018127

172

299
Additions—
 1
 1
Disposals—
 (3) (3)
Transfers and other movements(1)
—
 4
 4
Translation(11) (7) (18)
Balance at 31 December 2018116

167

283
Accumulated amortisation and impairments     
Balance at 1 January 2018—
 161
 161
Amortisation for the year  5
 5
Disposals—
 (3) (3)
Transfers and other movements(1)
—
 4
 4
Translation—
 (7) (7)
Balance at 31 December 2018—

160

160
Net book value at 31 December 2018116

7

123
Cost     
Balance at 1 January 2019116
 167
 283
Transfer to assets and liabilities held for sale—
 (26) (26)
Transfers and other movements(1)
—
 3
 3
Balance at 31 December 2019116

144

260
Accumulated amortisation and impairments     
Balance at 1 January 2019—
 160
 160
Amortisation for the year  3
 3
Transfer to assets and liabilities held for sale—
 (26) (26)
Balance at 31 December 2019—

137

137
Net book value at 31 December 2019116

7

123
(1)
Transfers and other movements include amounts from asset reclassifications and amounts written off.

F - 48
Table of Contents
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)

17    INTANGIBLE ASSETS(continued)(1)Transfers and other movements include amounts from asset reclassifications and amounts written off.
Impairment calculation assumptions for goodwill
Based on an analysis carried out by the group in 2019,2021, the carrying value and value in use of cash generating units (CGUs)the most sensitive CGU with goodwill that were most sensitive is:
2021
US Dollars
Figures in millionsCarrying
Value		Value in
use
Sunrise Dam183 389 

F - 47
 2019
 US Dollars
Figures in millions
Carrying
Value
 
Value in
use
Sunrise Dam220
 363
Table of Contents

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)

15    INTANGIBLE ASSETS(continued)
As at 31 December 2019,2021, the recoverable amount of Sunrise Dam exceeded its carrying amount by $143m. The$206m. Sunrise Dam CGU had $108m$111m goodwill at that date.


It is estimated that a decrease of the long-term real gold price of $1,300/$1,599/oz by 5%10%, would cause the recoverable amount of this CGU to equal its carrying amount. The sensitivity analysis has been provided on the basis that the key assumption changes without a change in the other assumptions. However, for a change in each of the assumptions used, it is impracticable to disclose the consequential effect of changes on the other variables used to measure the recoverable amount because these assumptions and others used in impairment testing of goodwill are inextricably linked.


Therefore, it is possible that outcomes within the next financial year that are different from the assumptions used in the impairment testing process for goodwill could require a material adjustment to the carrying amounts in future periods.


Net book value of goodwill allocated to each of the CGUs:
US Dollars
Figures in millions202120202019
- Sunrise Dam111 118 108 
- Serra Grande8 8 8 
119 126 116 
Real pre-tax discount rates applied in impairment calculations on the CGU for which the carrying amount of goodwill is significant is as follows:
- Sunrise Dam (1)
5.5 %8.7 %10.8 %
 US Dollars
Figures in millions2019
 2018
 2017
- Sunrise Dam108
 108
 119
- Serra Grande8
 8
 8
 116
 116
 127
Real pre-tax discount rates applied in impairment calculations on CGUs for which the carrying amount of goodwill is significant are as follows:     
- Sunrise Dam (1)
10.8% 8.3% 8.3%


Goodwill has been allocated to its respective CGUs where it is tested for impairment as part of the CGU . The group reviews and tests the carrying value of goodwill on an annual basis for impairment. The discount rates for 20192021 were determined on a basis consistent with the 20182020 discount rates.


(1)The value in use of the CGU is $389m (2020: $538m; 2019: $363m).
(1)
The value in use of the CGU is $363m in 2019 (2018: $750m; 2017: $402m).

F - 4948
Table of Contents
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)

1816    MATERIAL PARTLY-OWNED SUBSIDIARIES
NameNon-controlling interest holdingCountry of incorporation and operation
202120202019
Cerro Vanguardia S.A. (CVSA)7.5 %7.5 %7.5 %Argentina
Société AngloGold Ashanti de Guinée S.A. (Siguiri)15 %15 %15 %Republic of Guinea
NameNon-controlling interest holding Country of incorporation and operation
 2019
 2018
 2017
  
Cerro Vanguardia S.A. (CVSA)7.5% 7.5% 7.5% Argentina
Société AngloGold Ashanti de Guinée S.A. (Siguiri)15% 15% 15% Republic of Guinea


Financial information of subsidiaries that have material non-controlling interests are provided below:
US Dollars
Figures in millions202120202019
Profit (loss) allocated to material non-controlling interests
CVSA5 8 5 
Siguiri19 10 — 
Accumulated balances of material non-controlling interests
CVSA11 14 13 
Siguiri41 31 23 

 US Dollars
Figures in millions2019
 2018
 2017
Profit (loss) allocated to material non-controlling interests     
CVSA5
 9
 7
Siguiri—
 8
 13
Accumulated balances of material non-controlling interests     
CVSA13
 14
 13
Siguiri23
 32
 32

Summarised financial information of subsidiaries is as follows. The information is based on amounts including inter-company balances.
US Dollars
Figures in millionsCVSASiguiri
Statement of profit or loss for 2021
Revenue371 546 
Profit (loss) for the year75 124 
Total comprehensive income (loss) for the year, net of tax75 124 
Attributable to non-controlling interests5 19 
Dividends paid to non-controlling interests(8)(8)
Statement of profit or loss for 2020
Revenue440 453 
Profit (loss) for the year84 68 
Total comprehensive income (loss) for the year, net of tax84 68 
Attributable to non-controlling interests8 10 
Dividends paid to non-controlling interests(6)(3)
Statement of profit or loss for 2019
Revenue390 349 
Profit (loss) for the year68 1 
Total comprehensive income (loss) for the year, net of tax68 1 
Attributable to non-controlling interests5 — 
Dividends paid to non-controlling interests(7)(9)

F - 49
 US Dollars
Figures in millionsCVSA
 Siguiri
    
Statement of profit or loss for 2019   
Revenue390
 349
Profit (loss) for the year68
 1
Total comprehensive income (loss) for the year, net of tax68
 1
Attributable to non-controlling interests5
 —
Dividends paid to non-controlling interests(7) (9)
    
Statement of profit or loss for 2018   
Revenue498
 365
Profit (loss) for the year119
 56
Total comprehensive income (loss) for the year, net of tax119
 56
Attributable to non-controlling interests9
 8
Dividends paid to non-controlling interests(7) (8)
    
Statement of profit or loss for 2017   
Revenue517
 489
Profit (loss) for the year96
 88
Total comprehensive income (loss) for the year, net of tax96
 88
Attributable to non-controlling interests7
 13
Dividends paid to non-controlling interests(9) (10)
Table of Contents








NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)


1816MATERIAL PARTLY-OWNED SUBSIDIARIES (continued)



Summarised financial information of subsidiaries is as follows. The information is based on amounts before inter-company eliminations.
US Dollars
Figures in millionsCVSASiguiri
Statement of financial position as at 31 December 2021
Non-current assets240 229 
Current assets (1)
252 234 
Non-current liabilities(132)(68)
Current liabilities(218)(122)
Total equity142 273 
Statement of financial position as at 31 December 2020
Non-current assets202 233 
Current assets254 224 
Non-current liabilities(123)(138)
Current liabilities(150)(117)
Total equity183 202 
Statement of financial position as at 31 December 2019
Non-current assets177 245 
Current assets202 170 
Non-current liabilities(120)(141)
Current liabilities(82)(121)
Total equity177 153 
Statement of cash flows for the year ended 31 December 2021
Cash inflow (outflow) from operating activities165 197 
Cash inflow (outflow) from investing activities(23)(38)
Cash inflow (outflow) from financing activities(112)(143)
Net increase (decrease) in cash and cash equivalents30 16 
Statement of cash flows for the year ended 31 December 2020
Cash inflow (outflow) from operating activities169 63 
Cash inflow (outflow) from investing activities(16)(30)
Cash inflow (outflow) from financing activities(59)(11)
Net increase (decrease) in cash and cash equivalents94 22 
Statement of cash flows for the year ended 31 December 2019
Cash inflow (outflow) from operating activities107 46 
Cash inflow (outflow) from investing activities(30)(22)
Cash inflow (outflow) from financing activities(47)(30)
Net increase (decrease) in cash and cash equivalents30 (6)
(1) CVSA had a cash balance equivalent to $139m (2020: $137m), following the payment to AngloGold Ashanti of $19m (2020: nil) offshore dividend during the fourth quarter of 2021. The remaining declared attributable dividend of $131m (2020: $50m) is available for payment to AngloGold Ashanti's offshore and onshore investment holding companies. Applications have been made to the Argentinean Central Bank to approve the payment of $114m (2020: $11m) of the offshore declared dividends. While the approval is pending, the cash remains fully available for CVSA’s operational requirements.

F - 50
 US Dollars
Figures in millionsCVSA Siguiri
    
Statement of financial position as at 31 December 2019   
Non-current assets177
 245
Current assets202
 170
Non-current liabilities(120) (141)
Current liabilities(82) (121)
Total equity177

153
    
Statement of financial position as at 31 December 2018   
Non-current assets176
 257
Current assets215
 157
Non-current liabilities(112) (64)
Current liabilities(78) (137)
Total equity201
 213
    
Statement of financial position as at 31 December 2017   
Non-current assets193
 206
Current assets171
 189
Non-current liabilities(103) (101)
Current liabilities(84) (82)
Total equity177
 212
    
Statement of cash flows for the year ended 31 December 2019   
Cash inflow (outflow) from operating activities107
 46
Cash inflow (outflow) from investing activities(30) (22)
Cash inflow (outflow) from financing activities(47) (30)
Net increase (decrease) in cash and cash equivalents30
 (6)
    
Statement of cash flows for the year ended 31 December 2018   
Cash inflow (outflow) from operating activities179
 84
Cash inflow (outflow) from investing activities(36) (96)
Cash inflow (outflow) from financing activities(140) (6)
Net increase (decrease) in cash and cash equivalents3
 (18)
    
Statement of cash flows for the year ended 31 December 2017   
Cash inflow (outflow) from operating activities189
 152
Cash inflow (outflow) from investing activities(55) (82)
Cash inflow (outflow) from financing activities(118) (58)
Net increase (decrease) in cash and cash equivalents16
 12
Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)







1917    INVESTMENTS IN ASSOCIATES AND JOINT VENTURES
US DollarsUS Dollars
Figures in millions2019
 2018
 2017
Figures in millions202120202019
Carrying value     Carrying value
Investments in associates40
 36
 36
Investments in associates43 47 40 
Investments in joint ventures1,541
 1,492
 1,471
Investments in joint ventures1,604 1,604 1,541 
1,581

1,528

1,507
Total comprehensive profit (loss) for the year, net of taxTotal comprehensive profit (loss) for the year, net of tax1,647 1,651 1,581 
Detailed disclosures are provided for the years in which investments in associates and joint ventures are considered to be material.

Summarised financial information of immaterial associates is as follows:
US Dollars
Figures in millions202120202019
Aggregate statement of profit or loss for associates (attributable)
Revenue36 29 20 
Operating (expenses) income (1)
(16)(6)3 
Taxation(2)— — 
Profit (loss) for the year18 23 23 
Total comprehensive profit (loss) for the year, net of tax18 23 23 
 US Dollars
Figures in millions2019
 2018
 2017
Aggregate statement of profit or loss for associates (attributable)     
Revenue20
 19
 21
Operating (expenses) income (1)
3
 (4) (11)
Taxation—
 (1) 2
Profit (loss) for the year23

14

12
Total comprehensive profit (loss) for the year, net of tax23

14

12
(1) Includes share of associate profitprofit.
Investments in material joint ventures comprise:
NameEffective %DescriptionCountry of incorporation and operation
202120202019
Kibali Goldmines S.A.(1)
45.0 45.0 45.0 Exploration and mine
development		The Democratic Republic of the Congo
(1)AngloGold Ashanti Limited has a 50% interest in Kibali (Jersey) Limited (Kibali) which holds our effective 45% interest in Kibali Goldmines S.A.
US Dollars
Figures in millions202120202019
Carrying value of joint ventures
Kibali1,604 1,604 1,506 
Immaterial joint ventures— — 35 
1,604 1,604 1,541 
Reversal (impairment) of investments in joint ventures
Sadiola (note 7) (1)
— — 6 
The cumulative unrecognised share of losses of the joint ventures:
Morila (2)
— — 8 
Yatela2 1 2 
(1) Sold effective 30 December 2020.
(2) Sold effective 10 November 2020.
F - 51
NameEffective % Description Country of incorporation and operation
 2019 2018 2017    
Kibali Goldmines S.A.(1)
45.0 45.0 45.0 
Exploration and mine
development
 The Democratic Republic of the Congo
(1)
AngloGold Ashanti Limited has a 50% interest in Kibali (Jersey) Limited (Kibali) which holds our effective 45% interest in Kibali Goldmines S.A.
Table of Contents
 US Dollars
Figures in millions2019
 2018
 2017
      
Carrying value of joint ventures     
Kibali1,506
 1,439
 1,423
Immaterial joint ventures35
 53
 48
 1,541
 1,492
 1,471
Reversal (impairment) of investments in joint ventures     
Sadiola (note 8)6
 14
 2
 US Dollars
Figures in millions2019
 2018
 2017
      
The cumulative unrecognised share of losses of the joint ventures:     
Morila8
 8
 7
Yatela2
 3
 2

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)




1917    INVESTMENTS IN ASSOCIATES AND JOINT VENTURES (continued)

Summarised financial information of the Kibali joint venturesventure is as follows (not attributable)(1):
US Dollars
Figures in millions202120202019
Statement of profit or loss
Revenue1,470 1,443 1,123 
Other operating costs and expenses(551)(541)(479)
Amortisation of tangible and intangible assets(244)(241)(282)
Finance costs and unwinding of obligations(6)(6)(4)
Interest received6 7 4 
Taxation(181)(157)(62)
Profit for the year494 505 300 
Total comprehensive income for the year, net of tax494 505 300 
Dividends received from joint venture (attributable)231 140 75 
US Dollars
Figures in millions202120202019
Statement of financial position
Non-current assets2,361 2,459 2,522 
Current assets162 120 183 
Cash and cash equivalents (2)
1,115 944 453 
Total assets3,638 3,523 3,158 
Non-current financial liabilities44 50 45 
Other non-current liabilities226 118 26 
Current financial liabilities14 15 11 
Other current liabilities107 106 66 
Total liabilities391 289 148 
Net assets3,247 3,234 3,010 
Group’s share of net assets1,624 1,617 1,505 
Other (3)
(20)(13)1 
Carrying amount of interest in joint venture1,604 1,604 1,506 
(1)    Subsequent event - At the end of January and in early February 2022, Kibali Goldmines S.A., which owns and operates the Kibali gold mine in the Democratic Republic of the Congo, received 15 claims from the Direction Générale des Douanes et Accises (Customs Authority) concerning customs duties. The Customs Authority claims that incorrect import duty tariffs have been applied to the importation of certain consumables and equipment for the Kibali gold mine. In addition, they claim that the exemption available to Kibali Goldmines SA, which was granted in relation to the original mining lease, no longer applies. Finally, the Customs Authority claims that a service fee paid on the exportation of gold was paid to the wrong government body. The claims, including substantial penalties and interest, total $339m (AngloGold Ashanti attributable share: $153m). Kibali Goldmines S.A. has examined the Customs Authority claims and concluded that they are without merit, as they seek to challenge established customs practices which have been accepted by the Customs Authority for many years and, where relevant, are in line with ministerial instruction letters. Kibali Goldmines S.A. will vigorously defend its position that the Customs Authority claims are unfounded.
(2)    Kibali cash and equivalents are subject to various steps before they can be distributed to the joint venture shareholders and are held across 4 banks in the Democratic Republic of Congo, including 2 domestic banks.
(3)    Includes amounts relating to additional costs and contributions at acquisition as well as minority interests.


F - 52
 US Dollars
 Kibali
Figures in millions2019
 2018
 2017
      
Statement of profit or loss     
Revenue1,123
 1,098
 755
Other operating costs and expenses(479) (539) (530)
Amortisation of tangible and intangible assets(282) (330) (264)
Finance costs and unwinding of obligations(4) (4) (5)
Interest received4
 3
 4
Taxation(62) (16) 54
Profit for the year300
 212
 14
Total comprehensive income for the year, net of tax300
 212
 14
Dividends received from joint venture (attributable)75
 89
 —
Table of Contents

 US Dollars
 Kibali
Figures in millions2019
 2018
 2017
      
Statement of financial position     
Non-current assets2,522
 2,659
 2,834
Current assets183
 205
 166
Cash and cash equivalents453
 124
 3
Total assets3,158
 2,988
 3,003
      
Non-current financial liabilities45
 29
 41
Other non-current liabilities26
 24
 23
Current financial liabilities11
 11
 7
Other current liabilities66
 64
 107
Total liabilities148

128

178
      
Net assets3,010

2,860

2,825
Group’s share of net assets1,505
 1,430
 1,413
Other1
 9
 10
Carrying amount of interest in joint venture1,506

1,439

1,423
 US Dollars
Figures in millions2019
 2018
 2017
      
Aggregate statement of profit (loss) for immaterial joint ventures (attributable)     
Revenue111
 112
 113
Other operating costs and expenses(94) (92) (94)
Amortisation of tangible and intangible assets(7) (15) (16)
Taxation(7) (2) (2)
Profit (loss) for the year3
 3
 1
Total comprehensive income (loss) for the year, net of tax3
 3
 1

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)






2018    OTHER INVESTMENTS
US Dollars
Figures in millions202120202019
Listed investments (1)
Non-current investments
Equity investments at fair value though OCI (FVTOCI)
Balance at beginning of year186 72 63 
Additions3 9 9 
Fair value adjustments (2)
(73)98 — 
Transfer from unlisted non-current investments— 7 — 
Balance at end of year116 186 72 
The non-current equity investments consist of ordinary shares and collective investment schemes and primarily comprise:
Corvus Gold Inc.80 59 41 
Pure Gold Mining35 126 31 
Other1 1 — 
116 186 72 
Listed investments (continued)
Current investments
Listed investments - FVTOCI— — 10 
Book value of listed investments116 186 82 
Unlisted investments
Non-current investments
Balance at beginning of year2 4 47 
Additions— — 45 
Maturities— — (44)
Transfer to non-current assets and liabilities held for sale— — (48)
Transfer to listed non-current investments— (7)— 
Fair value adjustment - FVTOCI— — 2 
Fair value adjustments - FVTPL(1)5 — 
Translation— — 2 
Balance at end of year1 2 4 
The unlisted investments include:
Book value of unlisted investments1 2 4 
Non-current other investments117 188 76 
Total book value of other investments117 188 86 
 US Dollars
Figures in millions2019
 2018
 2017
      
Listed investments (1)
     
      
Non-current investments     
      
Equity investments at fair value through profit and loss (FVTPL)     
Balance at beginning of year19
 26
  
Additions1
 2
  
Disposals(1) (2)  
Fair value adjustments1
 (3)  
Transfer to non-current assets and liabilities held for sale(21) —
  
Translation1
 (4)  
Balance at end of year—
 19
  
      
Equity investments at fair value though OCI (FVTOCI)     
Balance at beginning of year63
 47
  
Additions9
 13
  
Disposals—
 (7)  
Fair value adjustments—
 10
  
Balance at end of year72
 63
  
      
The group reclassified its listed investments as FVTPL and FVTOCI on adoption of IFRS 9 on 1 January 2018.     
      
The non-current equity investments consist of ordinary shares and collective investment schemes and primarily comprise:     
International Tower Hill Mines Limited (ITH)—
 —
 7
Corvus Gold Corporation41
 43
 25
Various listed investments held by Environmental Rehabilitation Trust Fund—
 16
 22
Pure Gold Mining31
 18
 11
Other—
 5
 8
 72

82

73
(1)The group’s listed equity investments are susceptible to market price risk arising from uncertainties about the future values of the investments.
At the reporting date, the FVTOCI equity investments were listed on the Toronto Stock Exchange.



(2)    Includes net fair value gain of $21m (2020: $18m) for Corvus Gold Inc. and a fair value loss of $94m (2020: $81m net gain) for Pure Gold Mining.

F - 53

Table of Contents







NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)




19    INVENTORIES
US Dollars
Figures in millions202120202019
Non-current
Raw materials - ore stockpiles27 69 93 
Current
Raw materials
- ore stockpiles217 262 229 
- heap-leach inventory6 5 4 
Work in progress
- metals in process49 46 51 
Finished goods
- gold doré/bullion29 42 42 
- by-products1 — 1 
Total metal inventories302 355 327 
Mine operating supplies401 378 305 
703 733 632 
Total inventories(1)
730 802 725 
20    OTHER INVESTMENTS (continued)
 US Dollars
Figures in millions2019
 2018
 2017
      
Listed investments (continued)     
      
Non-current investments (continued)     
      
Investments at amortised cost     
Balance at beginning of year12
 4
 6
Additions11
 15
 —
Disposals(9) (6) (2)
Transfer to non-current assets and liabilities held for sale(15) —
 —
Translation1
 (1) —
 —
 12
 4
      
The amortised cost investment consists of government bonds held by the Environmental Rehabilitation Trust Fund administered by Ashburton Investments.

     
      
Current investments     
Listed investments - FVTOCI (1) (2)
10
 6
 7
      
Book value of listed investments82
 100
 84
      
Unlisted investments     
Non-current investments     
      
Balance at beginning of year47
 54
 73
Additions45
 48
 81
Maturities(44) (45) (73)
Transfer to non-current assets and liabilities held for sale(48) —
 (32)
Fair value adjustment- FVTOCI2
 —
 —
Other—
 (2) —
Translation2
 (8) 5
Balance at end of year4
 47
 54
The unlisted investments include:     
Negotiable Certificates of Deposit - Environmental Rehabilitation Trust Fund administered by Ashburton Investments—
 46
 53
Other4
 1
 1
 4
 47
 54
      
Book value of unlisted investments4
 47
 54
      
Non-current other investments76
 141
 131
Total book value of other investments86

147

138
      

(1)The group’s listed equity investments are susceptible to market price risk arising from uncertainties about the future valuesamount of the investments.write-down of ore stockpiles, heap-leach inventory, metals in process, finished goods and mine operating supplies to net realisable value, and recognised as an expense in cost of sales is $13m (2020: $7m; 2019: $4m).
At the reporting date, the FVTOCI equity investments were listed on the Toronto Stock Exchange.
(2)During 2019 a fair value adjustment20    TRADE, OTHER RECEIVABLES AND OTHER ASSETS
US Dollars
Figures in millions202120202019
Non-current
Deferred compensation asset25 28 — 
Prepayments14 12 15 
Recoverable tax, rebates, levies and duties198 195 107 
237 235 122 
Current
Trade and loan receivables50 56 47 
Prepayments41 56 61 
Recoverable tax, rebates, levies and duties (1)
155 100 130 
Other receivables14 17 12 
260 229 250 
Total trade, other receivables and other assets497 464 372 
There is a concentration of risk in respect of amounts due from Revenue Authorities for recoverable tax, rebates, levies and duties from subsidiaries in the Africa Region segment. These values are summarised as follows:
Recoverable value added tax212 215 167 
Recoverable fuel duties— — 43 
Appeal deposits43 34 10 

(1) Includes taxation asset, refer note 29.




F - 54
Table of $4m to the Sandstorm investment was recognised.Contents




NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)





21    INVENTORIES
 US Dollars
Figures in millions2019
 2018
 2017
Non-current     
Raw materials - ore stockpiles93
 106
 100
 

 

 

Current     
Raw materials     
- ore stockpiles229
 251
 261
- heap-leach inventory4
 3
 5
Work in progress     
- metals in process51
 44
 58
Finished goods     
- gold doré/bullion42
 57
 59
- by-products1
 —
 5
Total metal inventories327

355

388
Mine operating supplies305
 297
 295
 632

652

683
Total inventories(1)
725

758

783

(1)
The amount of the write-down of ore stockpiles, metals in process, by-products and mine operating supplies to net realisable value, and recognised as an expense during the year in other expenses and cost of sales is $4m (2018: $19m; 2017: $17m).
2220    TRADE, OTHER RECEIVABLES AND OTHER ASSETS(continued)
 US Dollars
Figures in millions2019
 2018
 2017
      
Non-current     
Prepayments15
 18
 17
Recoverable tax, rebates, levies and duties107
 84
 50
 122
 102
 67
      
Current     
Trade and loan receivables47
 33
 27
Prepayments61
 42
 62
Recoverable tax, rebates, levies and duties130
 116
 127
Other receivables12
 18
 6
 250
 209
 222
      
Total trade, other receivables and other assets372

311

289
      
      
There is a concentration of risk in respect of amounts due from Revenue Authorities for recoverable tax, rebates, levies and duties from subsidiaries in the Continental Africa segment. These values are summarised as follows:     
      
Recoverable value added tax167
 126
 106
Recoverable fuel duties43
 41
 38
Appeal deposits10
 10
 10


Geita Gold Mine


Geita Gold Mine (GGM) in Tanzania net indirect tax receivables balance increased by $35m$3m to $119m (2018: $84m; 2017: $67m)$142m (2020: $139m; 2019: $119m).


Claims relating to periods from July 2020 totalling $54m were offset against provisional corporate tax payments in 2021. No refunds were received in cash or offset against provisional corporate tax payments were made in the current year, however claims2020. Claims relating to periods pre-July 2017 totalling $9m have beenwere offset against provisional corporate tax payments in 2019 in accordance with legislation. These amounts were set off2019. Amounts offset against VAT claims that have been certified

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)




by an external advisor and verified by the Tanzania Revenue Authority (“TRA”)(TRA). The TRA acknowledged the majority of the offsets during December 2019. The remaining disputed balance relating to the period July 2017 to June 2020 was objected to as GGM believe that the claims have been correctly set offlodged pursuant to Tanzanian law.


An amendment, effective 20 July 2017, to Tanzania's mining legislation included an amendment to the Value Added Tax Act, 2014 (No. 5) (2015 VAT Act) to the effect that no input tax credit can be claimed for the exportation of “raw minerals”. The Written Laws (Miscellaneous Amendments) (No. 2) Act, 2019, issued during 2019, provides a definition for "raw minerals". However, GGM has received notices from the TRA that it isthey are not eligible for VAT relief from July 2017 onwards on the basis that all production constitutes “raw minerals” for this purpose.


The basis for dispute of the disqualifications is on the interpretation of the legislation. Management's view is that the definition of "raw minerals" provided in the Written Laws (Miscellaneous Amendments) (No. 2) Act.Act, 2019 excludes gold doré. Gold bearing ore is mined from the open pit and underground mining operations, where it is further crushed and milled to maximise the gold recovery process, producing gold doré exceeding 80% purity as well as beneficiated products (concentrate). On this basis the mined doré and concentrate do not constitute “raw minerals” and accordingly the VAT claims are valid. WeManagement have obtained a legal opinionopinions that supports oursupport management's view that doré does not constitute a “raw mineral”.


The Finance Act 2020 became effective on 1 July 2020. The Finance Act amended the VAT Act by deleting the disqualification of VAT refunds due to the exportation of “raw minerals”. The deletion is intended to ensure the recovery of VAT refunds from July 2020, although the amendment cannot be applied retrospectively, the change in the VAT Act, together with the Written Laws (Miscellaneous Amendments) (No.2) Act 2019, confirms that doré bars are not “raw minerals” and that VAT refunds from July 2017 onwards are due to GGM. On 30 January 2021, management received a proposal from the TRA to settle VAT objections filed between 2017 and 2020, confirming the TRA's position to disqualify all VAT refunds requested by GGM for the period from July 2017 to June 2020. Management is not in agreement with the proposal and are pursuing legal remedies provided to taxpayers by Tanzanian law.

The total VAT claims submitted sincefrom July 2017 to June 2020 amount to $134m (of the total, $56m$164m and claims of claims$27m were submitted in 2019).between July 2020 and December 2020. All disqualifications received from the TRA have been objected to by GGM in accordance with the provisions and time frames set out in the Tax Administration Act, 2015 (No.10). Claims of $50m were submitted in 2021 taking the total claims to $187m (net of $54m offsets in 2021). The net indirect tax receivable at 31 December 2021 of $142m, reflects the discounting effects applied to the timing of when GGM expects to offset its indirect tax claims against future income taxes of GGM.


CVSA

Cerro Vanguardia (CVSA)
On 4 September 4, 2018, a decree was published by the Argentinian Government, which reintroduced export duties for products exported from Argentina and which will be in force until 31 December 2020.Argentina. The export duty rate iswas 12% on the freight on board (FOB) value of goods exported, including gold, paid in country. The duty iswas limited so as not to exceed ARS $4 per USDfor each US dollar exported. On 14 December 2019, the Government of Argentina announced that the cap of ARS $4 for each US dollar exported, would be replaced by a flat rate of 12% for 2020. Pursuant toOn 2 October 2020, the Government of Argentina extended the export duties until 31 December 2021, at a rate of 8% for gold bullion. On 31 December 2021, the Government of Argentina extended the export duties until 31 December 2023, at a rate of 8% for gold bullion. In terms of the Stability Agreement between CVSA and the Government of Argentina, CVSA has a right of refund or offset of these amounts paid as established by its Stability Agreement, which provides for a 30% taxation cap on annual taxes and duties paid by CVSA. Export duty refunds for the years 2018 to 2021 are outstanding as at 31 December 2021 and their fair value has been estimated using on a probability weighted scenario model considering various recovery time frames, estimated Argentina Peso to USD exchange rates and discounting using a country risk adjusted rate. As a result of the taxation cap, net export duty receivables amount to $25m (2018: $14m).$19m (2020: $23m; 2019 $25m), and reflects the discounting effects applied to when CVSA expects refund of these receivables.


2321    CASH RESTRICTED FOR USE
US Dollars
Figures in millions202120202019
Non-current
Cash restricted for environmental and rehabilitation obligations32 31 31 
Current
Cash restricted by prudential solvency requirements18 24 27 
Cash balances held by - joint operations8 18 6 
26 42 33 
Total cash restricted for use (note 33 and 34)58 73 64 

F - 55
 US Dollars
Figures in millions2019
 2018
 2017
      
Non-current31
 35
 37
 

 

 

Current     
Cash restricted by prudential solvency requirements and other27
 24
 18
Cash balances held by the Tropicana - joint venture6
 7
 10
 33
 31
 28
Total cash restricted for use (note 35 and 36)64
 66
 65
Table of Contents

24    CASH AND CASH EQUIVALENTS
 US Dollars
Figures in millions2019
 2018
 2017
      
Cash and deposits on call417
 312
 170
Money market instruments39
 17
 35
Total cash and cash equivalents (note 35 and note 36)456
 329
 205

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)




22    CASH AND CASH EQUIVALENTS
US Dollars
Figures in millions202120202019
Cash and deposits on call712 1,081 417 
Money market instruments442 249 39 
Total cash and cash equivalents (note 33 and note 34)1,154 1,330 456 
25

23    SHARE CAPITAL AND PREMIUM
US Dollars
Figures in millions202120202019
Share capital
Authorised
600,000,000 ordinary shares of 25 SA cents each23 23 23 
2,000,000 A redeemable preference shares of 50 SA cents each— — — 
5,000,000 B redeemable preference shares of 1 SA cent each— — — 
30,000,000 C redeemable preference shares of no par value— — — 
23 23 23 
Issued and fully paid
417,501,452 (2020: 416,890,087; 2019: 415,301,215) ordinary shares of 25 SA cents each17 17 17 
nil (2020 and 2019: 2,000,000) A redeemable preference shares of 50 SA cents each(1)
0— — 
nil (2020 and 2019: 778,896) B redeemable preference shares of 1 SA cent each(1)
0— — 
17 17 17 
Treasury shares held within the group:
nil (2020: 2,778,896; 2019: 2,778,896) A and B redeemable preference shares0— — 
17 17 17 
Share premium
Balance at beginning of year7,250 7,235 7,208 
Ordinary shares issued - share premium9 15 27 
Preference shares redeemed(1)
(53)00
7,206 7,250 7,235 
Less: held within the group
Redeemable preference shares(1)
0(53)(53)
Balance at end of year7,206 7,197 7,182 
Share capital and premium7,223 7,214 7,199 

 US Dollars
Figures in millions2019
 2018
 2017
      
Share capital     
Authorised     
600,000,000 ordinary shares of 25 SA cents each23
 23
 23
2,000,000 A redeemable preference shares of 50 SA cents each—
 —
 —
5,000,000 B redeemable preference shares of 1 SA cent each—
 —
 —
30,000,000 C redeemable preference shares of no par value—
 —
 —
 23
 23
 23
Issued and fully paid     
415,301,215 (2018: 412,769,980; 2017: 410,054,615) ordinary shares of 25 SA cents each17
 16
 16
2,000,000 A redeemable preference shares of 50 SA cents each—
 —
 —
778,896 B redeemable preference shares of 1 SA cent each—
 —
 —
 17
 16
 16
Treasury shares held within the group:     
2,778,896 A and B redeemable preference shares—
 —
 —
 17
 16
 16
Share premium     
Balance at beginning of year7,208
 7,171
 7,145
Ordinary shares issued - share premium27
 37
 26
 7,235
 7,208
 7,171
Less: held within the group     
Redeemable preference shares(53) (53) (53)
Balance at end of year7,182
 7,155
 7,118
Share capital and premium7,199
 7,171
 7,134

The rights and restrictions applicable to(1)     During December 2021 the A B and CB redeemable preference shares were unchanged during 2019. The cancellationredeemed and the preference share certificates cancelled.

F - 56
Table of all redeemable preference shares is in process.Contents


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)




24    BORROWINGS
US Dollars
Figures in millions202120202019
Non-current
Unsecured
Debt carried at amortised cost
Rated bonds - issued October 2021744— — 
Semi-annual coupons are paid at 3.375% per annum on the $750m 7-year bonds. The bonds were issued on 22 October 2021, are repayable on 1 November 2028 and are US dollar-based.
Rated bonds - issued October 2020693 692 — 
Semi-annual coupons are paid at 3.75% per annum on $700m 10-year bonds. The bonds were issued on 1 October 2020, are repayable on 1 October 2030 and are US dollar-based.
Rated bonds - issued April 2010296 295 1,003 
Semi-annual coupons are paid at 6.5% per annum on $300m 30-year bonds. The $300m bonds are repayable in April 2040. The bonds are US dollar-based.
Rated bonds - issued July 2012— 764 762 
Semi-annual coupons were paid at 5.125% per annum on the $750m 10-year bonds. The bonds were issued on 30 July 2012 and were repaid during October 2021 and November 2021. The bonds were US dollar-based.
Multi-currency syndicated revolving credit facility ($1.4bn multi-currency RCF)31 — 15 
The Facility consists of a US dollar based facility with interest charged at a margin of 1.45% above LIBOR and an Australian dollar based facility capped at $500m with a margin of 1.45% above BBSY. The applicable margin is subject to a ratings grid. The facility was issued on 23 October 2018 and is available until 23 October 2023.
Syndicated loan facility (R1bn)0072 
During 2020 the facility was cancelled.
Siguiri revolving credit facilities ($65m)35 67 67 
Interest paid at 8.5% above LIBOR. The facility was issued on 23 August 2016, and is available until 3 May 2022 and is US dollar-based.
Geita revolving credit facility ($150m)0113 114 
Multi-currency RCF consisting of a Tanzanian shilling component which was capped at the equivalent of US$45m. Interest on this component was paid at 12.5%. Interest on the remaining USD component was paid at LIBOR plus 6.7%. The facility was cancelled during December 2021.
Geita revolving credit facility ($150m) - 2021110 00
A multi-currency RCF was entered into during December 2021, consisting of a Tanzanian shilling component which is capped at the equivalent of US$87m. This component bears interest at 12.5%. The remaining USD component of the facility bears interest at LIBOR plus 6.7%. The facility matures either in August 2024 or December 2024 depending on the fulfilment of certain conditions in the facility agreement.
Total borrowings (note 33)1,909 1,931 2,033 
Current portion of borrowings (note 34)(51)(142)(734)
Total non-current borrowings (note 34)1,858 1,789 1,299 
Amounts falling due
Within one year51 142 734 
Between one and two years31 812 110 
Between two and five years110 — 898 
After five years1,717 977 291 
(note 33)1,909 1,931 2,033 
26    BORROWINGS


F - 57
 US Dollars
Figures in millions2019
 2018
 2017
      
Non-current     
      
Unsecured     
Debt carried at amortised cost     
Rated bonds - issued July 2012762
 761
 759
Semi-annual coupons are paid at 5.125% per annum. The bonds were issued on 30 July 2012, are repayable on 1 August 2022 and are US dollar-based.     
Rated bonds - issued April 20101,003
 1,002
 1,001
Semi-annual coupons are paid at 5.375% per annum on $700m 10-year bonds and at 6.5% per annum on $300m 30-year bonds. The $700m bonds are repayable in April 2020 and the $300m bonds are repayable in April 2040. The bonds are US dollar-based.     
Syndicated revolving credit facility ($1bn)—
 —
 32
The facility was issued on 17 July 2014 and cancelled during October 2018. Replaced with a $1.4bn multi-currency facility.     
Syndicated revolving credit facility (A$500m)—
 —
 163
The loan was cancelled in October 2018 and replaced by a $1.4bn multi-currency facility which is capped at A$500m.     
Syndicated revolving credit facility (R2.5bn)—
 —
 56
Quarterly interest paid at JIBAR plus 1.8% per annum. The facility was issued on 12 December 2017 and is available until 12 December 2022. The loan is SA rand-based.     
Syndicated loan facility (R1.4bn)—
 28
 81
Quarterly interest paid at JIBAR plus 1.65% per annum. The facility was issued on 7 July 2015 and is available until 7 July 2020. The loan is SA rand-based. The facility was cancelled on 19 February 2020.     
Syndicated loan facility (R1bn)72
 35
 81
Quarterly interest paid at JIBAR plus 1.3% per annum. The facility was issued on 3 November 2017 and is available until 3 November 2022. The loan is SA rand-based.     
Siguiri revolving credit facilities ($65m)67
 —
 —
Interest paid at 8% above LIBOR. The facility was issued on 23 August 2016, is available until 27 February 2022 and is US dollar-based.     
Geita revolving credit facility ($150m)114
 60
 —
Multi-currency RCF consisting of Tanzanian shilling component which is capped at the equivalent of US$45m. This component bears interest at 12.5%. The remaining USD component of the facility bears interest at LIBOR plus 6.7%. The facility matures on 6 April 2021.     
Other—
 —
 1
Interest charged at various rates from 2.5% plus delta exchange rate on individual instalments per annum to 4.5% per annum. Repayments terminate in June 2023. All loans are Brazilian real-based.     
 The loans are subject to debt covenant arrangements for which no default event occurred.     
      
Multi-currency syndicated revolving credit facility ($1.4bn multi-currency RCF)15
 —
 —
The facility consists of a US dollar based facility with interest charged at a margin of 1.45% above LIBOR and an Australian dollar based facility capped at A$500m with a margin of 1.45% above BBSY. The applicable margin is subject to a ratings grid. The facility was issued on 23 October 2018 and is available until 23 October 2023.     
      
Revolving credit facilities ($100m)—
 103
 16
Table of Contents


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)

26    BORROWINGS (continued)

IBOR linked borrowings

 US Dollars
Figures in millions2019
 2018
 2017
During 2019 the loans outstanding under these facilities were refinanced and included in the Geita and Siguiri revolving credit facilities.     
      
      
Non-current (continued)     
Secured     
Finance leases (1)
     
Turbine Square Two (Pty) Limited—

9

15
The lease is capitalised at an implied interest rate of 9.8% per annum. Lease payments are due in monthly instalments terminating in March 2022 and are SA rand-based. The building financed is used as security for these loans.     
Australian Gas Pipeline—
 48
 58
The contract with the supplier of gas contains embedded leases which have been determined to bear interest at an average of 6.75% per annum. The embedded leases commenced in November and December 2015 and are for a 10 and 12 year duration, respectively. The leases are repayable in monthly instalments and are Australian dollar-based. The equipment related to the embedded leases is used as security for these loans.     
Other—
 4
 5
Various loans with interest rates ranging from 2.5% to 14.7% per annum. These loans are repayable from 2016 to 2041. Some of these loans are secured by the financed assets.     
Total borrowings (note 35)2,033

2,050

2,268
Current portion of borrowings (note 36)(734) (139) (38)
Total non-current borrowings (note 36)1,299

1,911

2,230
      
      
Amounts falling due     
Within one year734
 139
 38
Between one and two years110
 734
 219
Between two and five years898
 860
 1,687
After five years291
 317
 324
(note 35)2,033

2,050

2,268

(1)The Finance leases have been includedIBOR Phase 2 amendments became effective on 1 January 2021. The amendments had no material impact on the group financial statements as management is in the lease liabilities from 1 January 2019 (referprocess of negotiating new reference rates on the IBOR linked borrowings, with bank syndicates.

The table below provides further detail on revolving credit facilities (RCFs) which reference LIBOR. These facilities have yet to note 16).transfer to an alternative benchmark interest rate:


Figures in millions - US DollarCarrying value at 31 December 2021Repayable within one yearRepayable within one to two years
Siguiri revolving credit facility ($65m) (1)
3535— 
Geita revolving credit facility ($150m) (2)
63— — 
Multi-currency syndicated revolving credit facility ($1.4bn multi-currency RCF) (3)
— — — 

(1) The Siguiri RCF currently bears interest at LIBOR plus 8.5%. At 31 December 2021, $30m of the facility was undrawn. The Siguiri RCF matures in May 2022.

(2) The Geita RCF consists of a Tanzanian shilling component which is capped at the equivalent of US$87m and this component bears interest at 12.5%. The remaining component bears interest at LIBOR plus 6.7%. The equivalent of $40m was undrawn under the Geita RCF at 31 December 2021. The Geita RCF facility matures either in August 2024 or December 2024 depending on the fulfilment of certain conditions in the facility agreement.

(3) At 31 December 2021, an equivalent of $33m was drawn under the AUD portion of the $1.4bn multi-currency RCF, which bears interest at BBSY plus 1.45%. At 31December 2021, the USD portion of the $1.4bn multi-currency RCF, bearing interest at LIBOR plus 1.45%, was undrawn. The $1.4bn RCF is available until October 2023.

F - 58
Table of Contents

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)

26    BORROWINGS (continued)

US Dollars
Figures in millions202120202019
Currency
The currencies in which the borrowings are denominated are as follows:
US dollar1,829 1,884 1,893 
Australian dollar33 — 21 
SA rand— — 72 
Tanzanian shillings47 47 47 
(notes 33)1,909 1,931 2,033 
Undrawn facilities
Undrawn borrowing facilities as at 31 December are as follows:
Syndicated revolving credit facility (R2.5bn) - SA rand (1)
00179 
Syndicated revolving credit facility (R1.4bn) - SA rand (2)
00100 
FirstRand Bank Limited (R150m; 2020: R500m; 2019: R750m) - SA rand10 34 54 
Multi currency syndicated revolving credit facility ($1.4bn) - US Dollar1,367 1,400 1,379 
Revolving credit facility - $150m40 41 40 
Revolving credit facility - $65m30 — — 
1,447 1,475 1,752 
Change in liabilities arising from financing activities:
Reconciliation of borrowings (excluding lease liabilities) (3):
A reconciliation of the total borrowings included in the statement of financial position is set out in the following table:
Opening balance1,931 2,033 2,050 
Proceeds from borrowings822 2,226 168 
Repayment of borrowings(820)(2,310)(123)
Finance costs paid on borrowings(115)(114)(122)
Deferred loan fees(4)4 (7)
Other borrowing fees(11)(15)0
Interest charged to the income statement106 115 127 
Reclassification of finance leases to lease liabilities— — (60)
Translation— (8)— 
Closing balance1,909 1,931 2,033 
Reconciliation of finance costs paid:
A reconciliation of the finance cost paid included in the statement of cash flows is set out in the following table:
Finance costs paid on borrowings115 114 122 
Capitalised finance cost(14)(17)(6)
Commitment fees, utilisation fees and other borrowing costs10 13 12 
Total finance costs paid111 110 128 


(1) R2.5bn Syndicated loan facility issued December 2017 was cancelled on 23 October 2020.

(2) R1.4bn Syndicated loan facility issued July 2015 was cancelled on 19 February 2020.

(3) Refer note 14 for changes in lease liabilities arising from financing activities.


F - 59
 US Dollars
Figures in millions2019
 2018
 2017
      
Currency     
The currencies in which the borrowings are denominated are as follows:     
US dollar1,893
 1,896
 1,807
Australian dollar21
 48
 221
SA rand72
 75
 237
Tanzanian shilling47
 29
 —
Brazilian real—
 2
 3
(notes 35)2,033

2,050

2,268
      
Undrawn facilities     
Undrawn borrowing facilities as at 31 December are as follows:     
Syndicated revolving credit facility ($1bn) - US dollar—
 —
 965
Syndicated revolving credit facility (A$500m) - Australian dollar—
 —
 226
Syndicated revolving credit facility (R2.5bn) - SA rand179
 174
 146
Syndicated revolving credit facility (R1.4bn) - SA rand100
 70
 32
FirstRand Bank Limited (R750m) - SA rand54
 52
 61
Revolving credit facilities ($100m) - US dollar—
 —
 85
Revolving credit facility (R1bn) - SA rand—
 35
 —
Multi currency syndicated revolving credit facility ($1.4bn) - US Dollar1,379
 1,400
 —
Revolving credit facility - $150m40
 57
 —
 1,752

1,788

1,515
      
Changes in liabilities arising from financing activities:     
Reconciliation of total borrowings:     
A reconciliation of total borrowings included in the statement of financial position is set out below:     
Opening balance2,050
 2,268
 2,178
Proceeds from borrowings168
 753
 815
Repayment of borrowings(123) (967) (767)
Finance costs paid on borrowings(122) (117) (125)
Deferred loan fees(7) —
 —
Interest charged to the income statement127
 127
 130
Reclassification of finance leases to lease liabilities

(60) —
 —
Translation—
 (14) 37
Closing balance2,033
 2,050
 2,268
      
Reconciliation of finance costs paid:     
A reconciliation of finance costs paid included in the statement of cash flows is set out below:     
Finance costs paid on borrowings122
 117
 125
Capitalised finance cost(6) —
 —
Commitment fees, utilisation fees and other borrowing costs12
 13
 13
Total finance costs paid128
 130
 138
Table of Content



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)









2725    ENVIRONMENTAL REHABILITATION AND OTHER PROVISIONS
US Dollars
Figures in millions202120202019
Environmental rehabilitation obligations
Provision for decommissioning
Balance at beginning of year219 196 237 
Charge to income statement3 — — 
Change in estimates(1)
(8)17 29 
Unwinding of decommissioning obligation3 2 10 
Transfer to assets and liabilities held for sale— — (81)
Utilised during the year— — (1)
Translation(2)4 2 
Balance at end of year215 219 196 
Provision for restoration
Balance at beginning of year440 423 385 
Charge to income statement(3)2 (1)
Change in estimates(1)
29 15 50 
Unwinding of restoration obligation6 4 9 
Transfer to assets and liabilities held for sale— — (15)
Utilised during the year(10)(11)(5)
Translation(4)7 — 
Balance at end of year458 440 423 
Provision for silicosis
Balance at beginning of year49 5447
Change in estimates1 4(1)
Transfer (to) from short term provisions included in trade, other payables and provisions(5)(1)6
Unwinding of silicosis provision3 45
Utilised during the year(10)(9)(5)
Translation(4)(3)2
Balance at end of year34 4954
Other provisions(2)
Balance at beginning of year23 24 158 
Charge to income statement14 12 39 
Change in estimates— 1 28 
Transfer to assets and liabilities held for sale— — (115)
Transfer (to) from short term provisions included in trade, other payables and provisions(7)3 (79)
Unwinding of other provisions— — 1 
Utilised during the year(6)(13)(11)
Translation(2)(4)3 
Balance at end of year22 23 24 
Total environmental rehabilitation and other provisions729 731 697 
Sensitivity analysis - Provision for decommissioning (3)
Assumed discount rates and cash flows have a significant impact on the amounts recognised in the statement of financial position. A 10% change in the discount rate and cash flows would have the following impact:
Effect of increase in assumptions:
10% change in discount rate(5)(3)(4)
10% change in cash flows21 22 20 
Effect of decrease in assumptions:
10% change in discount rate5 3 4 
10% change in cash flows(21)(22)(20)
F - 60
 US Dollars
Figures in millions2019
 2018
 2017
      
Environmental rehabilitation obligations     
      
Provision for decommissioning     
Balance at beginning of year237
 286
 279
Charge to income statement—
 1
 2
Change in estimates(1)
29
 (47) 4
Unwinding of decommissioning obligation10
 12
 12
Transfer to assets and liabilities held for sale(81) —
 (20)
Utilised during the year(1) (1) (2)
Translation2
 (14) 11
Balance at end of year196
 237
 286
      
Provision for restoration     
Balance at beginning of year385
 409
 426
Charge to income statement(1) 2
 8
Change in estimates(1)
50
 (28) (17)
Unwinding of restoration obligation9
 12
 10
Transfer to assets and liabilities held for sale(15) —
 (3)
Transfer to current portion—
 —
 (17)
Utilised during the year(5) (3) (4)
Translation—
 (7) 6
Balance at end of year423
 385
 409
      
Other provisions(2)
     
Balance at beginning of year205
 247
 172
Charge to income statement39
 24
 17
Change in estimates27
 18
 15
Additions—
 —
 64
Transfer to assets and liabilities held for sale(115) —
 —
Transfer to trade and other payables(73) (26) (6)
Unwinding of other provisions6
 7
 1
Utilised during the year(16) (35) (35)
Translation5
 (30) 19
Balance at end of year78
 205
 247
      
Total environmental rehabilitation and other provisions697

827

942
Table of Content

(1)
The change in estimates is attributable to changes in discount rates due to changes in global economic assumptions and changes in mine plans resulting in a change in cash flows and changes in design of tailings storage facilities and in methodology following requests from the environmental regulatory authorities. These provisions are expected to unwind beyond the end of the life of mine.

(2)
Other provisions include the long-term provision for the silicosis class action litigation of $54m (2018: $47m; 2017: $63m), the short-term portion of $11m (2018; $16m; 2017: nil) has been included in trade and other payables.



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)






Sensitivity analysis - Provision for restoration (3)
Assumed discount rates and cash flows have a significant impact on the amounts recognised in the income statement. A 10% change in the discount rate and cash flows would have the following impact:
Effect of increase in assumptions:
10% change in discount rate(5)(3)(6)
10% change in cash flows46 44 42 
Effect of decrease in assumptions:
10% change in discount rate5 3 6 
10% change in cash flows(46)(44)(42)
Sensitivity analysis - Provision for silicosis (3)
Significant judgements are applied in estimating the costs required to settle any qualifying silicosis claims, the provision included in the Statement of financial position are based on certain assumptions which includes the number of claimants, take-up rates and disease progression rates. Considering actuarial guidance received, a 10% change in these assumptions would have the following impact:
Effect of increase in assumptions:
10% change in take-up rates6 6 6 
10% change in number of cases6 6 6 
10% change in disease progression rate3 3 3 
Effect of decrease in assumptions:
10% change in take-up rates(6)(6)(6)
10% change in number of cases(6)(6)(6)
10% change in disease progression rate(3)(3)(3)
28
(1)The change in estimates is attributable to changes in discount rates due to changes in global economic assumptions and changes in mine plans resulting in a change in cash flows and changes in design of tailings storage facilities and in methodology following requests from the environmental regulatory authorities. These provisions are expected to unwind beyond the end of the life of mine.

(2)Other provisions comprises claims filed by former employees in respect of loss of employment, work-related accident injuries and diseases, governmental fiscal claims relating to levies, surcharges and environmental legal disputes and a shareholder claim related to stamp duties. These liabilities are expected to be settled over the next two-to five-year period.

(3)The sensitivity analysis is based on the change of a single assumption, keeping all other assumptions constant. This may not be the case in practice where changes in assumptions may result in correlated changes in other assumptions, and a change in the provision amount..


26    PROVISION FOR PENSION AND POST-RETIREMENT BENEFITS
US Dollars
Figures in millions202120202019
Defined benefit plans
The retirement schemes consist of the following:
Post-retirement medical scheme for AngloGold Ashanti's South African employees71 77 93 
Other defined benefit plans6 6 7 
77 83 100 
F - 61
 US Dollars
Figures in millions2019
 2018
 2017
      
Defined benefit plans     
The retirement schemes consist of the following:     
Post-retirement medical scheme for AngloGold Ashanti's South African employees93
 93
 114
Other defined benefit plans7
 7
 8
Sub-total100
 100
 122
 







Table of Contents

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)




2826    PROVISION FOR PENSION AND POST-RETIREMENT BENEFITS (continued)

Figures in millions202120202019
US Dollars
Post-retirement medical scheme for AngloGold Ashanti's South African employees
The provision for post-retirement medical funding represents the provision for health care benefits for employees and retired employees and their registered dependants.
The post-retirement benefit costs are assessed in accordance with the advice of independent professionally qualified actuaries. The actuarial method used is the projected unit credit funding method. This scheme is unfunded. The last valuation was performed as at 31 December 2021.
Information with respect to the defined benefit liability is as follows:
Benefit obligation
Balance at beginning of year77 93 93 
Interest cost6 7 8 
Benefits paid(8)(7)(8)
Actuarial loss (gain)1 (9)(2)
Translation(5)(5)2 
Balance at end of year71 79 93 
Settlement gain— (2)— 
Net amount recognised71 77 93 
Components of net periodic benefit cost
Interest cost6 7 8 
Net periodic benefit cost6 7 8 
Assumptions
Assumptions used to determine benefit obligations at the end of the year are as follows:
Discount rate9.79 %9.14 %9.15 %
Expected increase in health care costs7.23 %6.06 %7.25 %
Assumed health care cost trend rates at 31 December:
Health care cost trend assumed for next year7.23 %6.06 %7.25 %
Rate to which the cost trend is assumed to decline (the ultimate trend rate)7.23 %6.06 %7.25 %
Assumed health care cost trend rates have a significant effect on the amounts reported for health care plans. A 1% point change in assumed health care cost trend rates would have the following effect:
Effect on total service and interest cost – 1% point increase1 — 1 
Effect on post-retirement benefit obligation – 1% point increase5 4 7 
Effect on total service and interest cost – 1% point decrease— — (1)
Effect on post-retirement benefit obligation – 1% point decrease(4)(4)(6)
Cash flows
Contributions
AngloGold Ashanti Limited expects to contribute $8m to the post-retirement medical plan in 2022.
Estimated future benefit payments
The following medical benefit payments, which reflect the expected future service, as appropriate, are expected to be paid:
20228 
20238 
20248 
20259 
20269 
Thereafter35 

F - 62
Figures in millions2019
 2018
 2017
 US Dollars
Post-retirement medical scheme for AngloGold Ashanti's South African employees     
The provision for post-retirement medical funding represents the provision for health care benefits for employees and retired employees and their registered dependants.
The post-retirement benefit costs are assessed in accordance with the advice of independent professionally qualified actuaries. The actuarial method used is the projected unit credit funding method. This scheme is unfunded. The last valuation was performed as at 31 December 2019.
Information with respect to the defined benefit liability is as follows:     
Benefit obligation     
Balance at beginning of year93
 115
 109
Interest cost8
 9
 10
Benefits paid(8) (10) (9)
Actuarial (gain) loss(2) (5) (8)
Translation2
 (16) 13
Balance at end of year93

93

115
Less: transfer to non-current assets and liabilities held for sale—
 —
 (1)
Net amount recognised93

93

114
      
Components of net periodic benefit cost     
Interest cost8
 9
 10
Net periodic benefit cost8

9

10
Assumptions     
Assumptions used to determine benefit obligations at the end of the year are as follows:     
Discount rate9.15% 9.57% 9.29%
Expected increase in health care costs7.25% 7.35% 7.75%
      
Assumed health care cost trend rates at 31 December:     
Health care cost trend assumed for next year7.25% 7.35% 7.75%
Rate to which the cost trend is assumed to decline (the ultimate trend rate)7.25% 7.35% 7.75%
      
Assumed health care cost trend rates have a significant effect on the amounts reported for health care plans. A 1% point change in assumed health care cost trend rates would have the following effect:
Effect on total service and interest cost – 1% point increase1
 1
 1
Effect on post-retirement benefit obligation – 1% point increase7
 7
 10
Effect on total service and interest cost – 1% point decrease(1) (1) (1)
Effect on post-retirement benefit obligation – 1% point decrease(6) (7) (8)
      
      
      
Cash flows     
Contributions     
AngloGold Ashanti Limited expects to contribute $9m to the post-retirement medical plan in 2020.
      
Estimated future benefit payments     
The following medical benefit payments, which reflect the expected future service, as appropriate, are expected to be paid:
20209
    
20219
    
20229
    
20239
    
202410
    
Thereafter47
    
Table of Contents




NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)








2927    DEFERRED TAXATION
US Dollars
Figures in millions202120202019
Deferred taxation relating to temporary differences is made up as follows:
Liabilities
Tangible assets (owned)442 373 370 
Right-of-use assets53 40 48
Inventories13 20 24 
Other22 13 9 
530 446 451 
Assets
Provisions141 122 209 
Lease liabilities56 42 52 
Tax losses16 15 45 
Other11 28 9 
224 207 315 
Net deferred taxation liability306 239 136 
Included in the statement of financial position as follows:
Deferred tax assets (1)
7 7 105 
Deferred tax liabilities313 246 241 
Net deferred taxation liability306 239 136 
The movement on the net deferred tax balance is as follows:
Balance at beginning of year239 136 315 
Taxation of items included in income statement from continuing and discontinued operations64 53 (189)
Taxation of non-current assets and liabilities included in discontinued operations— 28 — 
Taxation on items included in other comprehensive income6 6 (2)
Transfer to non-current assets and liabilities held for sale— — 15 
Translation(3)16 (3)
Balance at end of year306 239 136 
(1)    Deferred tax assets of $7m (2020: $7m; 2019: nil) were recognised for Obuasi, resulting from generated tax losses to be utilised against future taxable income. Deferred tax assets recorded in 2019 for South Africa, were fully derecognised during the fourth quarter of 2020 as part of the disposal of the South African assets and on consideration of future recovery.
 US Dollars
Figures in millions2019
 2018
 2017
      
Deferred taxation relating to temporary differences is made up as follows:




Liabilities




Tangible assets (owned)370
 521
 604
Right-of-use assets48
    
Inventories24
 37
 33
Other9
 5
 15

451
 563
 652
Assets




Provisions209
 218
 229
Lease liabilities52
 

 

Tax losses45
 24
 60
Other9
 6
 4

315
 248
 293
Net deferred taxation liability136
 315
 359
Included in the statement of financial position as follows:




Deferred tax assets105
 —
 4
Deferred tax liabilities241
 315
 363
Net deferred taxation liability136
 315
 359
The movement on the deferred tax balance is as follows:




Balance at beginning of year315
 359
 492
Taxation of items included in income statement from continuing and discontinued operations(189) (30) (68)
Taxation on items included in other comprehensive income(2) 5
 (6)
Transfer to non-current assets and liabilities held for sale15

—

(73)
Translation(3) (19) 14
Balance at end of year136
 315
 359
Provision has been made for South African income tax or foreign taxes that may result from future remittances of undistributed earnings of foreign subsidiaries or foreign corporate joint ventures, where the group is able to assert that the undistributed earnings are not permanently reinvested. In all other cases, the foreign subsidiaries reinvest the undistributed earnings into future capital expansion projects, maintenance capital and ongoing working capital funding requirements. Unrecognised taxable temporary differences pertaining to undistributed earnings totalled $444m (2018: $413m; 2017: $384m)$1,800m (2020: $1,806m; 2019: $1,787m). If remitted, the undistributed earnings may be subject to withholding taxes between 0% - 10%.

30    TRADE, OTHER PAYABLES AND PROVISIONS







 US Dollars
Figures in millions2019
 2018
 2017
      
Non-current     
Other payables15
 3
 3
      
Current     
Trade payables363
 350
 358
Accruals(1)
167
 186
 228
Short-term provisions53
 20
 22
Derivatives—
 9
 —
Other payables3
 29
 30
 586
 594
 638
Total trade, other payables and provisions601
 597
 641
Current trade and other payables are non-interest bearing and are normally settled within 60 days.     
F - 63
(1) Includes accrual for silicosis
Table of $11m in 2019 (2018: $16m; 2017:nil).Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)







28    TRADE, OTHER PAYABLES AND PROVISIONS
US Dollars
Figures in millions202120202019
Non-current
Other payables7 8 15 
Current
Trade payables406 403 365 
Accruals(1)
205 191 167 
Short-term provisions31 30 53 
Other payables5 3 1 
647 627 586 
Total trade, other payables and provisions654 635 601 
Current trade and other payables are non-interest bearing and are normally settled within 60 days.
31    TAXATION(1)    Includes accrual for silicosis of $16m (2020: $12m; 2019: $11m) and retrenchments of $7m (2020: nil; 2019: nil).
F - 64
 US Dollars
Figures in millions2019
 2018
 2017
      
Balance at beginning of year54
 50
 97
Refunds during the year7
 5
 14
Payments during the year(228) (171) (174)
Taxation of items included in the income statement298
 242
 190
Offset of VAT and other taxes(50) (63) (78)
Transfer from tax receivable relating to North America(10) —
 —
Translation(9) (9) 1
Balance at end of year62
 54
 50
Included in the statement of financial position as follows:     
Taxation asset included in trade and other receivables(10) (6) (3)
Taxation liability72
 60
 53
 62

54

50
Table of Contents

32
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)



29    TAXATION
US Dollars
Figures in millions202120202019
Balance at beginning of year139 62 54 
Refunds during the year20 — 7 
Payments during the year(336)(431)(228)
Taxation of items included in the income statement248 562 298 
Offset of VAT and other taxes(87)(41)(50)
Withholding tax transferred from (to) trade, other payables and provisions7 (7)— 
Discounting of tax receivable1 — — 
Transfer from tax receivable relating to North America— (4)(10)
Translation(2)(2)(9)
Balance at end of year(10)139 62 
Included in the statement of financial position as follows:
Taxation asset included in trade, other receivables and other assets(49)(14)(10)
Taxation liability39 153 72 
(10)139 62 

30    CASH GENERATED FROM OPERATIONS
US Dollars
Figures in millions202120202019
Profit (loss) before taxation958 1,589 619 
Adjusted for:
Movement on non-hedge derivatives and other commodity contracts— — (6)
Amortisation of tangible and right of use assets (note 4)474 568 580 
Amortisation of intangible assets (note 4)3 2 3 
Finance costs and unwinding of obligations (note 6)116 177 172 
Environmental, rehabilitation, silicosis and other provisions(20)(50)(6)
Impairment and derecognition of assets7 1 3 
Profit on sale of assets(22)(2)— 
Other expenses (income)61 51 41 
Interest income(58)(27)(14)
Share of associates and joint ventures’ (profit) loss (note 7)(249)(278)(168)
Other non-cash movements30 35 43 
Movements in working capital53 (238)(165)
1,353 1,828 1,102 
Movements in working capital:
Decrease (increase) in inventories58 (83)(67)
Increase in trade, other receivables and other assets(49)(163)(138)
Increase in trade, other payables and provisions44 8 40 
53 (238)(165)

F - 65
 US Dollars
Figures in millions2019
 2018
 2017
      
Profit (loss) before taxation619
 445
 328
Adjusted for:     
Movement on non-hedge derivatives and other commodity contracts(6) 6
 1
Amortisation of tangible assets and right of use assets (note 4)580
 553
 685
Finance costs and unwinding of obligations (note 7)172
 168
 157
Environmental, rehabilitation and other expenditure(6) (23) (26)
Impairment, derecognition of assets and profit (loss) on disposal3
 5
 (1)
Other expenses (income)41
 28
 89
Amortisation of intangible assets (notes 4)3
 5
 5
Interest income(14) (8) (8)
Share of associates and joint ventures’ (profit) loss (note 8)(168) (122) (22)
Other non-cash movements43
 (4) (4)
Movements in working capital(165) (122) (137)
 1,102
 931
 1,067
Movements in working capital:     
(Increase) decrease in inventories(67) (2) (67)
(Increase) decrease in trade, other receivables and other assets(138) (74) (86)
Increase (decrease) in trade, other payables and deferred income40
 (46) 16
 (165) (122) (137)
Table of Contents


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

3331    RELATED PARTIES
US Dollars
Figures in millions202120202019
Material related party transactions were as follows (not attributable):
Sales and services rendered to related parties
Associates7 11 19 
Joint ventures— 8 7 
Purchases and services acquired from related parties
Associates14 20 12 
Joint ventures— 1 1 
Outstanding balances arising from sale of goods and services due by related parties
Associates7 11 19 
Joint ventures— — 1 
Amounts owed to/due by related parties above are unsecured and non-interest bearing.
Loans advanced to joint ventures and associates
Loans advanced to associates and joint ventures are included in the carrying value of investments in associates and joint ventures (note 17)
 US Dollars
Figures in millions2019
 2018
 2017
      
Material related party transactions were as follows (not attributable):     
      
Sales and services rendered to related parties     
Associates19
 —
 —
Joint ventures7
 10
 12
      
Purchases and services acquired from related parties     
Associates12
 19
 16
Joint ventures1
 —
 3
      
Outstanding balances arising from sale of goods and services due by related parties     
Associates19
 19
 7
Joint ventures1
 —
 2
Amounts owed to/due by related parties above are unsecured and non-interest bearing.     
Loans advanced to joint ventures and associates     
      
Loans advanced to associates and joint ventures are included in the carrying value of investments in associates and joint ventures (note 19)     


Executive contracts
All members of the Executive Management team have permanent employment contracts which entitle them to standard group benefits as defined by their specific region and participation in the company’sCompany’s Deferred Share Plan (DSP).


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 currently continue to include a change in control provision. The change in 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’sCompany’s issued share capital consorting to gain a majority of the board and make management decisions; and
•The contracts of Executive Committee members are either terminated or their role and employment conditions are curtailed.


In the event of a change in control becoming effective, the executive management team will in certain circumstances be subject to both the notice period and the change in control contract terms. The notice period applied per category of executive and the change in control periods as at 31 December 20192021 were as follows:

Executive Committee memberNotice PeriodChange of control
CEOChief Executive Officer12 months12 months
CFOChief Financial Officer6 months6 months
EXCOOther Executive Management team members6 months6 months





F - 66
Table of Contents


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)







33RELATED PARTIES (continued)
Directors and other key management personnel

Executive Directors’directors’ and Prescribed Officers’prescribed officers’ remuneration

Key management remuneration includes directors and prescribed officers that held office in the current year. For disclosure of the remuneration of key management in the prior year, refer to the disclosure provided in the prior year annual financial statements.
The tables below illustrate the single total figure of remuneration and the total cash equivalent received reconciliation of Executive Directors and Prescribed Officers as prescribed by King IV. It comprises an overview of all the pay elements available to the executive management team for the year ended 31 December 2019.2021.


The following are definitions of terminology used in the adoption of the reporting requirements under King IV.


Reflected
In respect of the DSP and LTIP plans,awards, remuneration is reflected when performance conditions have been met during the reporting period.


Settled
This refers to remuneration that has been included in prior reporting periods and has now become payable (but may not yet have been paid) to the executive in the current period.

Single total figure of
remuneration
Base SalaryPension scheme benefitsCash in lieu of dividends
Other benefits(2)
Awards earned during the period reflected but not yet settledOther PaymentsSingle total figure of remuneration
ZAR denominated portion
USD/AUD denominated portion(1)
DSP awards(3)
Sign-on
awards
granted		202120202019
ZAR '000ZAR '000ZAR '000ZAR '000ZAR '000ZAR '000ZAR '000ZAR '000
USD '000(15)
USD '000(15)
USD '000(15)
Executive directors
A Calderon(4)
— 7,821 2,066 — 156 20,481 10,289 — 40,813 2,761 — — 
KC Ramon(5)
6,104 4,324 864 67 525 7,652 — 22,974 42,510 2,875 3,138 5,097 
Total executive directors6,104 12,145 2,930 67 681 28,133 10,289 22,974 83,323 5,636 3,138 5,097 
Prescribed officers
SD Bailey4,648 3,062 — 30 1,246 15,752 — — 24,738 1,673 2,019 2,190 
I Boninelli(6)
4,725 — — — 131 4,091 — — 8,947 605 — — 
VA Chamberlain (7)
1,047 252 137 — 29 7,228 — 264 8,957 606 — — 
PD Chenard(8)
440 335 — — 1,489 — — — 2,264 153 1,250 3,292 
GJ Ehm(9)
— 10,392 291 54 1,548 6,359 — — 18,644 1,261 2,673 4,742 
L Eybers— 10,760 291 52 1,578 21,189 — — 33,870 2,291 2,686 4,659 
MC Godoy(10)
— 1,882 141 — 358 4,782 35,072 — 42,235 2,857 — — 
I Kramer(11)
2,408 — 301 15 48 5,459 — 602 8,833 598 468 — 
L Marwick(12)
4,706 1,828 629 13 271 13,735 — — 21,182 1,433 1,241 — 
S Ntuli(13)
5,415 3,567 756 36 2,239 5,358 — 17,599 34,970 2,365 2,322 2,565 
TR Sibisi(14)
1,144 758 242 47 14 — — 4,406 6,611 447 1,831 3,514 
Total prescribed officers24,533 32,836 2,788 247 8,951 83,953 35,072 22,871 211,251 14,289 14,490 20,962 
(1)Salary denominated in USD/AUD for global roles and responsibilities converted to ZAR on payment date.
Single total figure
remuneration
Base salaryPension scheme benefits
Once-off relocation costs
Cash in lieu of dividends
Other benefits(2)

Awards earned during the period reflected but not yet settledSingle total figure of remuneration
ZAR denominated portion
USD/AUD denominated portion(1)

DSP 2019 awards(3)

CSLTIP 2017 awards(4)

Sign-on awards granted (5)

201920182017
ZAR '000
ZAR '000
ZAR '000
ZAR '000
ZAR '000
ZAR '000
ZAR '000
ZAR '000
ZAR '000
ZAR '000
USD '000 (8)

USD '000 (8)

USD '000 (8)

Executive directors             
KPM Dushnisky—
18,608
4,648
2,726
142
2,578
61,842
—
—
90,544
6,268
7,570
—
KC Ramon5,585
3,981
779
—
194
893
29,135
33,064
—
73,631
5,097
3,547
2,190
Total executive directors5,585
22,589
5,427
2,726
336
3,471
90,977
33,064
—
164,175
11,365
11,117
2,190
              
Prescribed officers             
SD Bailey3,879
2,560
—
—
37
1,160
18,087
5,917
—
31,640
2,190
—
—
CE Carter(6)
—
2,791
5,524
—
—
2,277
—
—
—
10,592
733
3,719
2,322
PD Chenard(7)
2,933
3,900
—
1,270
—
1,729
18,362
—
19,356
47,550
3,292
—
—
GJ Ehm—
9,074
251
—
163
611
25,329
33,064
—
68,492
4,742
3,286
2,096
L Eybers1,377
7,945
251
1,135
64
2,310
25,054
29,160
—
67,296
4,659
2,511
1,680
DC Noko(6)
869
396
117
—
17
1,110
—
—
—
2,509
174
2,846
1,642
S Ntuli4,607
2,871
631
—
36
343
21,041
7,526
—
37,055
2,565
—
—
ME Sanz Perez4,481
3,184
958
—
169
68
20,567
26,447
—
55,874
3,868
2,833
1,637
CB Sheppard(6)
1,159
528
160
—
169
830
—
—
—
2,846
197
2,961
1,413
TR Sibisi4,944
2,337
910
—
158
61
19,638
22,713
—
50,761
3,514
2,699
1,126
Total prescribed officers24,249
35,586
8,802
2,405
813
10,499
148,078
124,827
19,356
374,615
25,934
20,855
11,916
(2)Other benefits include health care, group personal accident cover, group life cover, funeral cover, accommodation allowance, pension allowance, airfare and surplus leave encashed. Surplus leave days accrued are automatically encashed unless work requirements allow for carry over.

(3)The fair value of the DSP comprises a cash bonus and share awards for the year ended 31 December 2021. The cash bonus is payable in February 2022 and the share awards are allocated in February 2022. Shares vest over a 3 to 5-year period in equal tranches.
Notes:
(1)
Salary denominated in USD/AUD for global roles and responsibilities converted to ZAR on payment date.
(2)
Other benefits include health care, group personal accident, disability, funeral cover, accommodation allowance, airfare and surplus leave encashed. Surplus leave days accrued are automatically encashed unless work requirements allow for carry over.
(3)
The fair value of the(4)A Calderon was appointed as executive director and CEO with effect from 1 September 2021. All payments including salary, DSP comprises of a cash bonus and share awards, for the year ended 31 December 2019 with the cash bonus payable in February 2020 and the share awards allocated in February 2020, vesting over a 5-year period in equal tranches.
(4)
The fair value of the CSLTIP granted in 2017 with a 3-year performance period ended 31 December 2019. The awards vested on 1 March 2020.
(5)
PD Chenard was awarded a sign-on award of ZAR19.36m at start date,1 April 2019, of which ZAR6.33m will be settled in cash with 50% payable upfront, the balance on 1 April 2020 and ZAR13.03m will be settled in shares to vest over a 2 year period in equal tranches in accordance with the JSE Listing requirements.
(6)
All salary payments (including salary, performance related payments, pension, and other benefits) for CE Carter (retired 28 March 2019), DC Noko (retired 28 February 2019) and CB Sheppard (retired 15 March 2019) are pro-rated in accordance with their retirement dates.
(7)
All salary payments (including salary, performance related payments, pension and other benefits) for PD Chenard are pro-rated in accordance with his start date, 1 April 2019.
(8)
Convenience conversion to USD at the year-to-date average exchange rate of $1:R14.445 (2018: $1:R13.247; 2017 $1:R13.301).











NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)


Directors and other key management personnel (continued)benefits were pro-rated and aligned to the appointment period.
(5)KC Ramon was appointed as Interim CEO from 1 September 2020 to 31 August 2021. Included in the DSP awards is the DSP cash bonus and share award for 2021 calculated on the CFO role for 4 months. Other payments reflect the acting allowance paid and the DSP cash bonus and share award for the acting period of 8 months calculated on the CEO percentage bonus opportunity.
(6)I Boninelli was appointed as Executive Group Human Resources Consultant and prescribed officer effective 1 April 2021. All payments, including salary, DSP awards (cash bonus only) and other benefits, were pro-rated and aligned to the appointment period.
(7)VA Chamberlain was appointed as Interim Chief Development Officer and prescribed officer effective 1 October 2021. All payments, including salary, pension and other benefits, were pro-rated and aligned to the appointment period. Included in the DSP awards is the DSP cash bonus and share award for the full year of 2021 (DSP awards were not pro-rated but were calculated based on his Senior Vice President (SVP) salary including 3 months acting allowance). Other payments reflect the acting allowance for the acting period from 1 October to 31 December 2021.
(8)    PD Chenard retired as EVP: Strategy and Corporate Development and prescribed officer with effect from 31 January 2021. All payments, including salary and other benefits, were pro-rated and aligned to retirement date.
(9)    GJ Ehm retired as EVP: Group Planning and Technical and prescribed officer with effect from 31 December 2021. All payments, including salary, pension, DSP awards (cash bonus only) and other benefits, were aligned to retirement date.
(10)    MC Godoy was appointed as Chief Technology Officer and prescribed officer effective 15 October 2021. All payments, including salary, DSP awards, pension, and other benefits, were pro-rated and aligned to the appointment period.
(11)    I Kramer was appointed as Interim CFO and prescribed officer from 1 September 2020 to 31 August 2021. All payments, including pension and other benefits, were pro-rated aligned to the acting period for 2021. Included in the DSP awards is the DSP cash bonus and share award for the full year of 2021 (DSP awards were not pro-rated but were calculated based on his normal SVP salary plus 8 months acting allowance on the SVP target bonus opportunity). Other payments reflect the acting allowance for the acting period from 1 January to 31 August 2021.
(12)    L Marwick’s 2021 earnings are for a full financial year as compared to 2020 earnings which were prorated as she was promoted and appointed as a prescribed officer effective 1 July 2020.
(13)    S Ntuli separated due to operational requirements effective 31 December 2021. All payments, including salary, pension, DSP awards (cash bonus only) and other benefits, were aligned to separation date. Other payments include separation payments.
(14)    TR Sibisi resigned as EVP: Group Human Resources and prescribed officer effective 1 April 2021. All payments, including salary, pension and other benefits, were pro-rated and aligned to 1 April 2021. Included in other payments is payment in lieu of unworked notice period from 1 April 2021 to 30 September 2021.
(15)Convenience conversion to USD at the year-to-date average exchange rate of $1: R14.7842 (2020: $1:R16.4506; 2019: $1:R14.445).
F - 67


33RELATED PARTIES (continued)
Directors and other key management personnel (continued)CONTINUED
Total cash equivalent received reconciliationSingle total figure of remunera-
tion		Awards earned during the period reflected but not yet settledDSP 2020 cash portion settledBSP, CIP, DSP and LTIP share awards settledSign-on cash settledSign-on shares settledTotal cash equivalent received reconciliation
DSP awards(1)
Sign-on
awards
granted
Grant fair value(2)
Market movement since grant date(2)
Vesting fair value(2)
Grant fair value(2)
Currency move-
ment since grant date(2)
Settlement fair value(2)
Grant fair value(2)
Market move-
ment since grant date(2)
Vesting fair value(2)
202120202019
ZAR '000ZAR '000ZAR '000ZAR '000ZAR '000ZAR '000ZAR '000ZAR '000ZAR '000ZAR '000ZAR '000ZAR '000ZAR '000ZAR '000
USD '000(3)
USD '000(3)
USD '000(3)
Executive directors
A Calderon40,813 (20,481)(10,289)— — — — 10,289 — 10,289 — — — 20,332 1,375 — — 
KC Ramon42,510 (28,907)— 11,479 7,751 1,596 9,347 — — — — — — 34,429 2,329 4,278 3,057 
Total executive directors83,323 (49,388)(10,289)11,479 7,751 1,596 9,347 10,289 — 10,289 — — — 54,761 3,704 4,278 3,057 
Prescribed officers
SD Bailey24,738 (15,752)— 6,793 3,892 504 4,396 — — — — — — 20,175 1,365 1,508 1,041 
I Boninelli8,947 (4,091)— — — — — — — — — — — 4,856 328 — — 
VA Chamberlain8,957 (7,228)— — 2,099 425 2,524 — — — — — — 4,253 288 — — 
PD Chenard2,264 — — 7,977 2,624 (151)2,473 — — — 6,513 3,644 10,157 22,871 1,547 2,204 900 
GJ Ehm18,644 (6,359)— 9,465 6,912 1,468 8,380 — — — — — — 30,130 2,038 3,843 2,536 
L Eybers33,870 (21,189)— 9,402 6,683 1,376 8,059 — — — — — — 30,142 2,039 3,756 2,082 
MC Godoy42,235 (4,782)(35,072)— — — — 4,583 — 4,583 — — — 6,964 471 — — 
I Kramer8,833 (5,459)— 2,434 1,772 340 2,112 — — — — — — 7,920 536 98 — 
L Marwick21,182 (13,735)— 4,760 1,543 262 1,805 — — — — — — 14,012 948 231 — 
S Ntuli34,970 (5,358)— 7,593 6,278 1,637 7,915 — — — — — — 45,120 3,052 1,862 1,160 
TR Sibisi6,611 — — 5,849 5,399 1,132 6,531 — — — — — — 18,991 1,285 2,835 2,249 
Total prescribed officers211,251 (83,953)(35,072)54,273 37,202 6,993 44,195 4,583 — 4,583 6,513 3,644 10,157 205,434 13,897 16,337 9,968 

Notes

(1)The fair value of the DSP comprises of a cash bonus and share awards for the year ended 31 December 2021. The cash bonus is payable in February 2022 and the share awards are allocated in February 2022. Shares vest over a 3 to 5 year period in equal tranches.
(2)Reflects the sum of all the grant fair value, the sum of all the share price movements since grant to vesting date and the sum of all the vesting fair value for the vested DSP 2019, DSP 2020 and vested sign-on share awards and difference in the currency movements for the vested sign-on cash settled award.
Total cash equivalent received reconciliationSingle total figure remunerationAwards earned during the period reflected but not yet settledDSP 2018 cash portion settled
BSP, CIP and LTIP share awards settledSign-on cash settledSign-on shares settledTotal cash equivalent received
DSP 2019 awards(1)

CSLTIP 2017 awards(2)

Sign-on awards granted(3)

Grant fair value(4)

Market movement since grant date(4)

Vesting fair value(4)

Grant fair value(4)

Currency movement since grant date(4)

Settlement fair value(4)

Grant fair value(4)

Market movement since grant date(4)

Vesting fair value(4)

20192018
2017
ZAR '000
ZAR '000
ZAR '000
ZAR '000
ZAR '000
ZAR '000
ZAR '000
ZAR '000
ZAR '000
ZAR '000
ZAR '000
ZAR '000
ZAR '000
ZAR '000
ZAR '000
USD '000(5)

USD '000(5)

USD '000(5)

Executive directors                  
KPM Dushnisky90,544
(61,842)—
—
7,119
—
—
—
17,616
(1,010)16,606
20,188
18,357
38,545
90,972
6,298
550
—
KC Ramon73,631
(29,135)(33,064)—
8,378
21,504
2,849
24,353
—
—
—
—
—
—
44,163
3,057
1,936
1,515
Total executive directors164,175
(90,977)(33,064)—
15,497
21,504
2,849
24,353
17,616
(1,010)16,606
20,188
18,357
38,545
135,135
9,355
2,486
1,515
                 —
—
Prescribed officers                  
SD Bailey31,640
(18,087)(5,917)—
2,613
4,066
724
4,789
—
—
—
—
—
—
15,038
1,041
—
—
CE Carter10,592
—
—
—
8,778
26,276
3,913
30,188
—
—
—
—
—
—
49,558
3,431
1,967
1,907
PD Chenard47,550
(18,362)—
(16,191)—
—
—
—
—
—
—
—
—
—
12,997
900
—
—
GJ Ehm68,492
(25,329)(33,064)—
7,113
19,622
(198)19,424
—
—
—
—
—
—
36,636
2,536
1,751
1,758
L Eybers67,296
(25,054)(29,160)—
6,701
7,463
2,825
10,289
—
—
—
—
—
—
30,072
2,082
1,233
1,101
DC Noko2,509
—
—
—
5,851
24,906
4,316
29,222
—
—
—
—
—
—
37,582
2,602
1,436
1,381
S Ntuli37,055
(21,041)(7,526)—
3,269
3,956
1,046
5,002
—
—
—
—
—
—
16,759
1,160
—
—
ME Sanz Perez55,874
(20,567)(26,447)—
5,864
18,839
1,460
20,299
—
—
—
—
—
—
35,023
2,425
1,399
1,350
CB Sheppard2,846
—
—
—
6,186
25,446
4,338
29,783
—
—
—
—
—
—
38,815
2,687
1,146
887
TR Sibisi50,761
(19,638)(22,713)—
5,495
17,709
876
18,585
—
—
—
—
—
—
32,490
2,249
886
674
Total prescribed officers374,615
(148,078)(124,827)(16,191)51,870
148,283
19,300
167,581
—
—
—
—
—
—
304,970
21,113
9,818
9,058
(3)Convenience conversion to USD at the year-to-date average exchange rate of $1:R14.7842 (2020: $1:R16.4506; 2019: $1:R14.445).


Notes:
(1)
The fair value of the DSP comprises of a cash bonus and share awards for the year ended 31 December 2019 with the cash bonus payable in February 2020 and the share awards allocated in February 2020, vesting over a 5-year period in equal tranches.
(2)
The fair value of the CSLTIP granted in 2017 with a 3-year performance period ended 31 December 2019. The awards vested on 1 March 2020.
(3)
PD Chenard was awarded a sign-on award of ZAR19.36m at start date,1 April 2019, of which ZAR6.33m will be settled in cash with 50% payable upfront, the balance on 1 April 2020 and ZAR13.03m will be settled in shares to vest over a 2 year period in equal tranches in accordance with the JSE Listing requirements.
(4)
Reflects the sum of all the grant fair value, the sum of all the share price movements since grant to vesting date and the sum of all the vesting fair value for the vested CSLTIP 2016, vested BSP 2017 and 2018, vested CIP 2017 and 2018 vested sign-on share awards and difference in the currency movements for the vested sign-on cash settled award. These values include awards vested early for CE Carter, DC Noko and CB Sheppard in accordance with their retirement dates as per as per scheme rules.
(5)
Convenience conversion to USD at the year-to-date average exchange rate of $1:R14.445 (2018: $1:R13.247; 2017: $1:R13.301).

KPM Dushnisky resigned effective 1 September 2020 and on 28 February 2021 was paid the balance of his 12-month notice period of $2.8m which included his DSP FY 2020 cash bonus (Single total figure of remuneration – 2020: $3.3m; 2019: $6.3m). Payment made in the current year is aligned to the standard terms and conditions of termination.











NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)


Directors and other key management personnel (continued)

33    RELATED PARTIES (continued)
Directors and other key management personnel (continued)



Details of the share incentive scheme awards are included below.
BSP

0Sign-on share awards
Balance at
1 January 2021		GrantedVested deemed settledForfeited/ Lapsed
Balance at
31 December 2021
 Fair value of granted awards(1)
 Fair value of vested awards(2)
Fair value of unvested awards at
31 December 2021(3)
ZAR '000ZAR '000ZAR '000
Prescribed officers
PD Chenard32,476 — 32,476 — — — 10,157 — 
M Godoy— 107,353 — — 107,353 30,489 — 35,287 
Total prescribed officers32,476 107,353 32,476 — 107,353 30,489 10,157 35,287 
Other management(4)
87,939 5,449 87,939 896 4,553 1,415 27,277 1,497 
Total sign-on share awards120,415 112,802 120,415 896 111,906 31,904 37,434 36,784 
(1)The fair value of granted awards represents the value of awards, calculated using a five business day volume weighted average share price prior to grant date. The share awards were granted on start date and will vest over a 2 to 3-year period in equal tranches in accordance with the JSE Listings Requirements.
(2)    Vested awards represents the value received on settlement date.
(3)The fair value of unvested awards is calculated using the closing share price as at 31 December.
(4)    The awards for other management include awards for Mr KPM Dushnisky who stepped down as executive director in 2020.

F - 68

 
Balance at
1 January 2019

Granted
Vested, deemed settled
Forfeited/ Lapsed
Balance at
31 December 2019

 Fair value of granted awards(1)

 Fair value of vested awards(2)

Fair value of unvested awards at 31 December 2019(3)

      ZAR'000
ZAR'000
ZAR'000
         
Executive Directors        
KPM Dushnisky—
—
—
—
—
—
—
—
KC Ramon77,073
—
49,256
—
27,817
—
10,034
8,804
Total executive directors77,073
—
49,256
—
27,817
—
10,034
8,804
Prescribed officers        
SD Bailey22,549
—
14,243
—
8,306
—
2,903
2,629
CE Carter(4)
67,173
—
58,055
9,118
—
—
11,664
—
PD Chenard—
—
—
—
—
—
—
—
GJ Ehm62,783
—
39,786
—
22,997
—
8,109
7,279
L Eybers53,626
—
31,338
—
22,288
—
6,419
7,054
DC Noko(4)
52,531
—
44,415
8,116
—
—
9,070
—
S Ntuli28,221
—
17,584
—
10,637
—
3,587
3,367
ME Sanz Perez52,842
—
33,770
—
19,072
—
6,879
6,036
CB Sheppard(4)
55,534
—
47,374
8,160
—
—
9,584
—
TR Sibisi47,221
—
29,516
—
17,705
—
6,021
5,604
Total prescribed officers442,480
—
316,081
25,394
101,005
—
64,236
31,969
Other Management2,482,900
—
1,595,362
70,586
816,952
—
321,706
258,565
Total BSP awards3,002,453
—
1,960,699
95,980
945,774
—
395,976
299,338

Notes
(1)
The fair value of granted awards represents the value of awards, calculated using a five-business day volume weighted average share price prior to grant date. Closed scheme, no awards granted in 2019.
(2)
The fair value of vested awards represents the value deemed received on settlement date.
(3)
The fair value of unvested awards is calculated using the closing share price as at 31 December.
(4)
Includes awards vested early and lapsed for CE Carter, DC Noko and CB Sheppard in accordance with their retirement dates as per scheme rules.


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)


Directors and other key management personnel (continued)

33    RELATED PARTIES (continued)

Details of the share incentive scheme awards are included below.
LTIP awards
 
Balance at
1 January 2019

Granted
Vested, deemed settled
Forfeited/ Lapsed
Balance at
31 December 2019

 Fair value of granted awards(1)

 Fair value of vested awards(2)

Fair value of unvested awards at 31 December 2019(3)

      ZAR '000
ZAR '000
ZAR '000
         
Executive directors        
KPM Dushnisky—
—
—
—
—
—
—
—
KC Ramon230,595
—
56,760
63,240
110,595
—
11,315
35,003
Total executive directors230,595
—
56,760
63,240
110,595
—
11,315
35,003
         
Prescribed officers        
SD Bailey39,793
—
9,460
10,540
19,793
—
1,886
6,264
CE Carter(4)
230,595
—
93,205
137,390
—
—
18,349
—
PD Chenard—
—
—
 —
—
—
—
GJ Ehm230,595
—
56,760
63,240
110,595
—
11,315
35,003
L Eybers117,535
—
9,460
10,540
97,535
—
1,886
30,870
DC Noko(4)
208,850
—
85,036
123,814
—
—
17,178
—
S Ntuli40,173
—
7,095
7,905
25,173
—
1,414
7,967
ME Sanz Perez208,463
—
56,760
63,240
88,463
—
11,315
27,999
CB Sheppard(4)
213,928
—
87,220
126,708
—
—
17,344
—
TR Sibisi195,971
—
56,760
63,240
75,971
—
11,315
24,045
Total prescribed officers1,485,903
—
461,756
606,617
417,530
—
92,002
132,148
Other Management2,099,263
—
510,922
635,904
952,437
—
101,852
301,446
Total LTIP awards3,815,761
—
1,029,438
1,305,761
1,480,562
—
205,169
468,597

Notes
(1)
The fair value of granted awards represents the value of awards, calculated using a five-business day volume weighted average share price prior to grant date. Closed scheme, no awards granted in 2019.
(2)
The fair value of vested awards represents the value deemed received on settlement date.
(3)
The fair value of unvested awards is calculated using the closing share price as at 31 December.
(4)
Includes awards vested early and lapsed for CE Carter, DC Noko and CB Sheppard in accordance with their retirement dates as per scheme rules.



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)


Directors and other key management personnel (continued)

33    RELATED PARTIES (continued)

CIP matched awards
 
Balance at
1 January 2019

Granted
Matched
Forfeited/ Lapsed
Balance at
31 December 2019

 Fair value of granted awards(1)

 Fair value of matched awards(2)

Fair value of unvested matched at
31 December 2019(3)

      ZAR '000
ZAR '000
ZAR '000
         
Executive directors        
KPM Dushnisky—
—
—
—
—
—
—
—
KC Ramon23,270
—
14,795
—
8,475
—
3,004
2,682
Total executive directors23,270
—
14,795
—
8,475
—
3,004
2,682
         
Prescribed officers        
SD Bailey—
—
—
—
—
—
—
—
CE Carter949
—
949
—
—
—
175
—
PD Chenard—
—
—
 —
—
—
—
GJ Ehm(4)
16,500
—
—
16,500
—
—
—
—
L Eybers16,788
—
10,198
—
6,590
—
1,983
2,086
DC Noko(5)
15,370
—
15,370
—
—
—
2,974
—
S Ntuli—
—
—
—
—
—
—
—
ME Sanz Perez16,039
—
10,297
—
5,742
—
2,104
1,817
CB Sheppard(5)
14,358
—
14,358
—
—
—
2,855
—
TR Sibisi9,304
—
6,184
—
3,120
—
1,249
987
Total prescribed officers89,308
—
57,356
16,500
15,452
—
11,340
4,890
Other Management—
—
—
—
—
—
—
—
Total CIP awards112,578
—
72,151
16,500
23,927
—
14,344
7,572

Notes
(1)
The fair value of granted awards represents the value of awards, calculated using the original investment share price on purchase date. Closed scheme, no awards granted in 2019.
(2)
The fair value of matched awards represents the value received on settlement dates.
(3)
The fair value of unvested awards is calculated using the closing share price as at 31 December.
(4)
These awards lapsed for GJ Ehm in line with the scheme rules.
(5)
Includes awards vested early for DC Noko and CB Sheppard in accordance with their retirement dates as per scheme rules.

Sign-on share awards
 
Balance at
1 January 2019

Granted
Vested deemed settled
Forfeited/ Lapsed
Balance at
31 December 2019

 Fair value of granted awards(1)

 Fair value of vested awards(2)

Fair value of unvested awards at
31 December 2019(3)

      ZAR '000
ZAR '000
ZAR '000
         
Executive directors        
KPM Dushnisky351,755
—
175,877
—
175,878
—
38,545
55,665
Total executive directors351,755
—
175,877
—
175,878
—
38,545
55,665
Prescribed officers        
PD Chenard—
64,951
—
—
64,951
13,026
—
20,557
Total prescribed officers—
64,951
—
—
64,951
13,026
—
20,557
Total Sign-on share awards351,755
64,951
175,877
—
240,829
13,026
38,545
76,222

Notes
(1)
The fair value of granted awards represents the value of awards, calculated using a five-business day volume weighted average share price prior to grant date. The share awards were granted on start date and will vest over a 2-year period in equal tranches in accordance with the JSE Listing requirements.
(2)
The fair value of KPM Dushnisky's vested awards represents the value received on settlement dates,20 and 21 February 2019.
(3)
The fair value of unvested awards is calculated using the closing share price as at 31 December.


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)


Directors and other key management personnel (continued)

33    RELATED PARTIES (continued)

CONTINUED
DSP awards

Balance at
1 January 2021		GrantedVested, deemed settledForfeited/ Lapsed
Balance at
31 December 2021
 Fair value of granted awards(1)
 Fair value of vested awards(2)
Fair value of unvested awards at
31 December 2021(3)
ZAR '000ZAR '000ZAR '000
Executive directors
KC Ramon134,421 79,541 30,475 — 183,487 24,576 9,347 60,312 
Total executive directors134,421 79,541 30,475 — 183,487 24,576 9,347 60,312 
Prescribed officers
SD Bailey52,433 51,929 14,325 — 90,037 16,045 4,396 29,595 
VA Chamberlain(4)
19,889 15,498 8,228 — 27,159 4,788 2,524 8,927 
PD Chenard40,251 — 8,050 — 32,201 — 2,473 10,584 
GJ Ehm120,204 73,218 27,321 — 166,101 22,622 8,380 54,597 
L Eybers115,886 72,734 26,272 — 162,348 22,473 8,058 53,364 
I Kramer12,892 11,816 6,884 — 17,824 3,651 2,112 5,859 
L Marwick11,482 36,223 5,884 — 41,821 11,192 1,805 13,747 
S Ntuli62,114 58,047 25,226 — 94,935 17,935 7,915 31,205 
TR Sibisi(5)
93,775 — 21,291 72,484 — — 6,531 — 
Total prescribed officers528,926 319,465 143,481 72,484 632,426 98,706 44,194 207,878 
Other management(6)
1,442,976 786,342 691,212 250,330 1,287,776 242,956 212,629 423,292 
Total DSP awards2,106,323 1,185,348 865,168 322,814 2,103,689 366,238 266,170 691,482 
Subsequent(1)The fair value of granted awards represents the value of awards, calculated using a five-business day volume weighted average share price prior to year endgrant date, 24 February 2021.
(2)The fair value of vested awards represents the value deemed received on settlement date.
(3)The fair value of unvested awards is calculated using the closing share price as at 31 December.
(4)    Opening balances were included as part of Other Management.
(5)    Share awards lapsed due to resignation.
(6)    The awards for other management include awards for Ms ME Sanz for 2020 and up to the date of this report, the following DSP awards were granted toMr KPM Dushnisky who stepped down as executive directors and prescribed officers:director in 2020.
 
Balance at
1 January 2019

Granted
Vested, deemed settled
Forfeited/ Lapsed
Balance at
31 December 2019

 Fair value of granted awards(1)

 Fair value of vested awards(2)

Fair value of unvested awards at
31 December 2019(3)

      ZAR '000
ZAR '000
ZAR '000
         
Executive directors        
KPM Dushnisky—
67,742
—
—
67,742
13,848
—
21,440
KC Ramon—
89,782
—
—
89,782
18,353
—
28,416
Total executive directors—
157,524
—
—
157,524
32,201
—
49,856
         
Prescribed officers        
SD Bailey—
19,196
—
—
19,196
3,924
—
6,076
CE Carter—
98,451
—
—
98,451
20,125
—
31,160
PD Chenard—
—
—
—
—
—
—
—
GJ Ehm—
82,037
—
—
82,037
16,770
—
25,965
L Eybers—
77,380
—
—
77,380
15,818
—
24,491
DC Noko—
67,548
—
—
67,548
13,808
—
21,379
S Ntuli—
24,006
—
—
24,006
4,907
—
7,598
ME Sanz Perez—
67,712
—
—
67,712
13,842
—
21,431
CB Sheppard—
71,409
—
—
71,409
14,597
—
22,601
TR Sibisi—
63,424
—
—
63,424
12,965
—
20,074
Total prescribed officers—
571,163
—
—
571,163
116,756
—
180,775
Other Management—
940,504
14,623
55,208
870,673
192,258
4,269
275,568
Total DSP awards—
1,669,191
14,623
55,208
1,599,360
341,215
4,269
506,199

Notes
(1)
The fair value of granted awards represents the value of awards, calculated using a five-business day volume weighted average share price prior to grant date, 21 February 2019.
(2)
The fair value of vested awards represents the value deemed received on settlement date.
(3)
The fair value of unvested awards is calculated using the closing share price as at 31 December.


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)


Directors and other key management personnel (continued)

33    RELATED PARTIES (continued)


Non-Executive Director remunerationDirectors’ fees and allowances

The board received a 2% inflationary increase for 2021. This increase was based on the US inflation rate in 2021, in line with market practice. This is the first increase Non-Executive Directors have received since 2014.

The table below details the fees andpayable to Non-Executive Directors in accordance with the Company’s shareholder approved policy together with allowances paid in the year:

Figures in thousandsFigures in thousands
Director fees(1)
Committee feesTravel allowanceTotalTotalTotal
US Dollars202120202019
M Ramos (Chairperson)359,350 92,000 — 451,350 202 107 
R Gasant (Lead independent director)179,900 116,500 — 296,400 223 193 
KOF Busia139,300 93,500 7,500 240,300 103 — 
AM Ferguson139,300 103,000 12,500 254,800 197 217 
AH Garner139,300 53,500 8,750 201,550 174 196 
N Magubane139,300 38,500 — 177,800 171 — 
MDC Richter139,300 103,000 7,500 249,800 209 230 
JE Tilk139,300 130,500 8,750 278,550 206 231 
Total fees for 20211,375,050 730,500 45,000 2,150,550 1,485 1,174 
(1)    Includes the annual base fee paid to Non-Executive Directors:NEDs as well as fees paid for special board meetings.

Non-Executive Directors’ fees and allowances
     
Figures in thousands(1)

Figures in thousands(1)

 Director fees
Committee fees
Travel allowance
Total
Total
Total
US Dollars(1)
2019  2019
2018
2017
SM Pityana (Chairman)303,000
73,750
10,000
386,750
441
372
AH Garner123,500
37,000
35,000
195,500
200
201
AM Ferguson(2)
123,500
50,500
42,500
216,500
52
—
DL Hodgson(3)
33,500
13,500
—
47,000
190
167
JE Tilk(2)
123,500
47,000
60,000
230,500
—
—
M Ramos(4)
70,000
30,500
6,250
106,750
—
—
MDC Richter123,500
71,750
35,000
230,250
235
203
MJ Kirkwood(3)
33,500
22,250
6,250
62,000
247
231
NP January-Bardill123,500
56,000
6,250
185,750
198
180
R Gasant123,500
63,500
6,250
193,250
229
182
RJ Ruston123,500
56,000
38,750
218,250
261
212
Total Fees For 20191,304,500
521,750
246,250
2,072,500
2,053
1,748

(1)
Directors' compensation is disclosed in US dollars.
(2)
Director's travel allowance includes travel for site induction.
(3)
Directors resigned effective 9 May 2019.
(4)
Director joined on 1 June 2019.


Non-Executive Directors do not hold service contracts with the company.Company. Executive Directors do not receive payment of directors’ fees or committee fees.

F - 69



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)







33     RELATED PARTIES (continued)

Directors’ and Prescribed Officers’ interests in AngloGold Ashanti shares (continued)
The interests of directors, prescribed officers and their associates in the ordinary shares of the companyCompany at 31 December, which individually did not exceed 1% of the company’sCompany’s issued ordinary share capital, were:
31 December 2021
Beneficial holding
31 December 2020
Beneficial holding
31 December 2019
Beneficial holding
US DollarsDirectIndirectDirectIndirectDirectIndirect
Non-Executive directors
KOF Busia(1)
2,000 
AM Ferguson(1)
5,000 
MDC Richter(1)
10,300 9,300 — 9,300 — 
AH Garner(1)
17,500 17,500 — 17,500 — 
Total34,800 — 26,800 — 26,800 — 
Executive directors
A Calderon (1)(2)
4,690 — — — — — 
KC Ramon91,949 — 91,949 — 59,124 — 
Total96,639 — 91,949 — 59,124 — 
Prescribed officers
SD Bailey(1)
12,867 — 8,609 — 1,190 — 
GJ Ehm(2)
26,125 12,213 50,443 12,213 35,058 16,213 
L Eybers(2)
28,466 — 28,466 — 18,164 — 
S Ntuli6,421 — 6,421 — — — 
Total73,879 12,213 93,939 12,213 54,412 16,213 
Grand total205,318 12,213 212,688 12,213 140,336 16,213 
(1)Held on the New York stock exchange as American Depositary Shares (ADSs) (1 ADS is equivalent to 1 ordinary share)
 
31 December 2019
Beneficial holding
 
31 December 2018
Beneficial holding
 
31 December 2017
Beneficial holding
 
 Direct
Indirect
Direct
Indirect
Direct
Indirect
Non-Executive directors      
SM Pityana2,990
—
2,990
—
2,990
—
MDC Richter(1)
9,300
—
9,300
—
7,300
—
AH Garner(1)
17,500
—
17,500
—
7,500
—
RJ Ruston(2)
—
1,000
—
1,000
—
1,000
Total29,790
1,000
29,790
1,000
17,790
1,000
Executive directors      
KPM Dushnisky (1)
131,730
—
50,000
—
—
—
KC Ramon59,124
—
51,062
—
28,265
—
Total190,854
—
101,062
—
28,265
—
Company Secretary      
ME Sanz Perez31,815
16,368
26,204
16,368
13,994
16,368
Total31,815
16,368
26,204
16,368
13,994
16,368
Prescribed officers      
SD Bailey(1)
1,190
—
—
—
—
—
GJ Ehm(2)
35,058
16,213
35,058
16,213
30,319
16,213
L Eybers18,164
—
17,207
—
4,812
—
TR Sibisi13,283
—
9,914
—
4,085
—
Total67,695
16,213
62,179
16,213
39,216
16,213
Grand total320,154
33,581
219,235
33,581
99,265
33,581
(2)Held on the Australian securities exchange as CHESS Depositary Receipts (5 CDIs are equivalent to 1 ordinary share)

(1)
Held on the New York stock exchange as American Depositary Shares (ADSs) (1 ADS is equivalent to 1 ordinary share)
(2)
Held on the Australian stock exchange as CHESS Depositary Receipts (5 CDIs are equivalent to 1 ordinary share)


A register detailing Directors and Prescribed Officers’ interests in contracts is available for inspection at the company’sCompany’s registered and corporate office.



Subsequent to 31 December 2021






NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)






33     RELATED PARTIES (continued)

Directors’ and Prescribed Officers’ interests in AngloGold Ashanti shares (continued)


Changes in Directors' and Prescribed Officers' interests in AngloGold Ashanti shares, excluding options and awards granted in terms of the group’s BSP and LTIP schemes,group's DSP scheme, after 31 December 20192021 include:



Date of
transaction
Type of transactionNumber of sharesDirect/Indirect beneficial holding
Executive Directors
KPM DushniskyKC Ramon26 February 20207 March 2022Off market exercise of vested share awards to retain 26,751 shares50,000Direct
7 March 2022On-market purchasesale of shares to fund tax liability in respectrelation to costs incurred in exercise of vested share awards23,249Direct
Prescribed officers
M Godoy1 March 2022Off market award of the first tranche of the sign-on awardbonus to retain 32,643 shares87,93948,309Direct
26 February 20202 March 2022On-market sale of ordinary shares to settlefund tax liability in relation to costs incurred with the sign-on awards47,48815,666Direct
KC Ramon27 February 2020On-market purchase of ordinary shares pursuant to the AngloGold Ashanti Co-Investment Plan8,475Direct
28 February 2020On-market sale of ordinary shares to settle tax costs3,857Direct
2 March 2020On-market purchase of ordinary shares pursuant to the AngloGold Ashanti Long-Term Incentive Plan52,234Direct
On-market sale of ordinary shares to settle tax costs24,027Direct
Company Secretary
ME Sanz Perez27 February 2020On-market purchase of ordinary shares pursuant to the AngloGold Ashanti Co-Investment Plan5,742Direct
28 February 2020On-market sale of ordinary shares to settle tax costs2,613Direct
2 March 2020On-market purchase of ordinary shares pursuant to the AngloGold Ashanti Long-Term Incentive Plan41,781Direct
On-market sale of ordinary shares to settle tax costs19,219Direct
Prescribed officers
SD Bailey2 March 2020On-market purchase of ordinary shares pursuant to the AngloGold Ashanti Long-Term Incentive Plan9,348Direct
On-market sale of ordinary shares to settle tax costs4,300Direct
GJ Ehm2 March 2020On-market purchase of ordinary shares pursuant to the AngloGold Ashanti Long-Term Incentive Plan52,234Direct
On-market sale of ordinary shares to settle tax costs24,027Direct
L Eybers2 March 2020On-market purchase of ordinary shares pursuant to the AngloGold Ashanti Long-Term Incentive Plan46,065Direct
3 March 2020On-market sale of ordinary shares to settle tax costs21,190Direct
9 March 2020On-market purchase of ordinary shares pursuant to the AngloGold Ashanti Co-Investment Plan6,590Direct
On-market sale of ordinary shares to settle tax costs2,999Direct
S Ntuli2 March 2020On-market purchase of ordinary shares pursuant to the AngloGold Ashanti Long-Term Incentive Plan11,889Direct
On-market sale of ordinary shares to settle tax costs5,468Direct
TR Sibisi2 March 2020On-market purchase of ordinary shares pursuant to the AngloGold Ashanti Long-Term Incentive Plan35,881Direct
On-market sale of ordinary shares to settle tax costs16,505Direct
On-market purchase of ordinary shares pursuant to the AngloGold Ashanti Co-Investment Plan3,120Direct
On-market sale of ordinary shares to settle tax costs1,420Direct





F - 70
Table of Contents


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)









3432    CONTRACTUAL COMMITMENTS AND CONTINGENCIES

US Dollars
Figures in millions202120202019
Capital commitments
Acquisition of tangible assets
Contracted for146 120 161 
Not contracted for547 367 426 
Authorised by the directors693 487 587 
Allocated to:
Project capital
- within one year337 216 288 
- thereafter64 71 162 
401 287 450 
Stay-in-business capital
- within one year292 200 117 
- thereafter— — 20 
292 200 137 
Share of underlying capital commitments of joint ventures included above4 12 2 
Purchase obligations
Contracted for
- within one year423 391 506 
- thereafter624 882 579 
1,047 1,273 1,085 
  US Dollars
Figures in millions 2019
 2018
 2017
       
Capital commitments      
Acquisition of tangible assets      
Contracted for 161
 99
 87
Not contracted for 426
 792
 113
Authorised by the directors (1)
 587
 891
 200
Allocated to:      
Project capital      
- within one year 288
 446
 104
- thereafter 162
 308
 —
  450
 754
 104
Stay-in-business capital      
- within one year 117
 125
 84
- thereafter 20
 12
 12
  137
 137
 96
Share of underlying capital commitments of joint ventures included above 2
 91
 21
Purchase obligations (2)
      
Contracted for      
- within one year 506
 305
 274
- thereafter 579
 658
 424
  1,085
 963
 698

(1) Includes $59m (2018: $90m; 2017: $54m) relating to discontinued operations.

(2) Includes $8m (2018: $25m; 2017: $54m) relating to discontinued operations.



Purchase obligations


Purchase obligations represent contractual obligations for the purchase of mining contract services, power, supplies, consumables, inventories, explosives and activated carbon.


To service these capital commitments, purchase obligations and other operational requirements, the group is dependent on existing cash resources, cash generated from operations and borrowing facilities.


Cash generated from operations is subject to operational, market and other risks. Distributions from operations may be subject to foreign investment, exchange control laws and regulations, and the quantity of foreign exchange available in offshore countries. In addition, distributions from joint ventures are subject to the relevant board approval.


The credit facilities and other finance arrangements contain financial covenants and other similar undertakings. To the extent that external borrowings are required, the group’sgroup's covenant performance indicates that existing financing facilities will be available to meet the commitments detailed above. To the extent that any of the financing facilities mature in the near future, the group believes that sufficient measures are in place to ensure that these facilities can be refinanced.


Contingencies
US Dollars
Figures in millions202120202019
Contingent liabilities
Litigation - Ghana(1)(2)
— 97 97 
— 97 97 



F - 71
 US Dollars
Figures in millions2019
 2018
 2017
Contingent liabilities     
Litigation - Ghana(1)(2)
97
 97
 97
Litigation - North America (3)
—
 —
 —
Groundwater pollution(4)
—
 —
 —
Deep groundwater pollution - Africa(5)
—
 —
 —
 97
 97
 97
Table of Contents





NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)


32    Contractual commitments and contingencies (continued)

Litigation claims


(1)
Litigation - On 11 October 2011, AngloGold Ashanti (Ghana) Limited (AGAG) terminated Mining and Building Contractors Limited’s (MBC) underground development agreement, construction on bulkheads agreement and diamond drilling agreement at Obuasi mine. The parties reached agreement on the terms of the separation and concluded a separation agreement on 8 November 2012. On 20 February 2014, AGAG was served with a demand issued by MBC claiming a total of $97m. In December 2015, the proceedings were stayed in the High Court pending arbitration. In February 2016, MBC submitted the matter to arbitration. The arbitration panel has been constituted and on 26 July 2019 held an arbitration management meeting to address initial procedural matters.

(1)Litigation - On 11 October 2011, AngloGold Ashanti (Ghana) Limited (AGAG) terminated Mining and Building Contractors Limited’s (MBC) underground development agreement, construction on bulkheads agreement and diamond drilling agreement at Obuasi mine. The parties reached agreement on the terms of the separation and concluded a separation agreement in November 2012. In February 2014, AGAG was served with a demand issued by MBC claiming a total of $97m. In December 2015, the proceedings were stayed in the High Court pending arbitration. In February 2016, MBC submitted the matter to arbitration. The arbitration panel was constituted and held an arbitration management meeting to address initial procedural matters in July 2019. In May 2020, the Ghana Arbitration Centre granted MBC’s request to stay the arbitral proceedings indefinitely to enable it and AGAG to explore a possible settlement. On 12 April 2021, the parties executed a settlement agreement to resolve the matter at no cost to either of the parties.
(2)
Litigation - AGAG received a summons on 2 April 2013 from Abdul Waliyu and 152 others in which the plaintiffs allege that they were or are residents of the Obuasi municipality or its suburbs and that their health has been adversely affected by emission and/or other environmental impacts arising in connection with the current and/or historical operations of the Pompora Treatment Plant (PTP), which was decommissioned in 2000. The plaintiffs’ alleged injuries include respiratory infections, skin diseases and certain cancers. The plaintiffs subsequently did not timely file their application for directions. On 24 February 2014, executive members of the PTP (AGAG) Smoke Effect Association (PASEA), sued AGAG by themselves and on behalf of their members (undisclosed number) on grounds similar to those discussed above, as well as economic hardships as a result of constant failure of their crops. This matter has been adjourned indefinitely. In view of the limitation of current information for the accurate estimation of a liability, no reliable estimate can be made for AGAG’s obligation in either matter.


(3)
Litigation - On 19 October 2017, Newmont Mining Co. filed a lawsuit in the United States District Court for the Southern District of New York against AngloGold Ashanti and certain related parties, alleging that AngloGold Ashanti and such parties did not provide Newmont with certain information material to its purchase of the Cripple Creek & Victor Gold Mining Company in 2015 during the negotiation- and-sale process. During November 2019, the AngloGold Ashanti defendants filed two motions for summary judgement with the Court, requesting the dismissal of all causes of actions against all defendants.  On 18 March 2020, the Court granted the motions, dismissed all causes of actions and ordered the case to be closed. Newmont Mining Co. has 30 days from the date of the order to file an appeal to the Court's decision.

(2)Litigation - AGAG received a summons on 2 April 2013 from Abdul Waliyu and 152 others in which the plaintiffs allege that they were or are residents of the Obuasi municipality or its suburbs and that their health has been adversely affected by emission and/or other environmental impacts arising in connection with the current and/or historical operations of the Pompora Treatment Plant (PTP), which was decommissioned in 2000. The plaintiffs’ alleged injuries include respiratory infections, skin diseases and certain cancers. The plaintiffs subsequently did not timely file their application for directions. On 24 February 2014, executive members of the PTP (AGAG) Smoke Effect Association (PASEA), sued AGAG by themselves and on behalf of their members (undisclosed number) on grounds similar to those discussed above, as well as economic hardships as a result of constant failure of their crops. This matter has been adjourned indefinitely. In view of the limitation of current information for the accurate estimation of a liability, no reliable estimate can be made for AGAG’s obligation in either matter.

Tax claims


For a discussion on tax claims and tax uncertainties refer to note 12.10.


Other

(4)
Groundwater pollution - AngloGold Ashanti has identified groundwater contamination plumes at certain of its operations, which have occurred primarily as a result of seepage from mine residue stockpiles. Numerous scientific, technical and legal studies have been undertaken to assist in determining the magnitude of the contamination and to find sustainable remediation solutions. The group has instituted processes to reduce future potential seepage and it has been demonstrated that Monitored Natural Attenuation (MNA) by the existing environment will contribute to improvements in some instances. Furthermore, literature reviews, field trials and base line modelling techniques suggest, but have not yet proven, that the use of phyto-technologies can address the soil and groundwater contamination. Subject to the completion of trials and the technology being a proven remediation technique, no reliable estimate can be made for the obligation.

(5)
Deep groundwater pollution - The group has identified potential water ingress and future pollution risk posed by deep groundwater in certain underground mines in Africa. Various studies have been undertaken by AngloGold Ashanti since 1999 to understand this potential risk.  In South Africa, due to the interconnected nature of mining operations, any proposed solution needs to be a combined one supported by all the mines located in these gold fields. As a result, the Mineral and Petroleum Resources Development Act (MPRDA) requires that the affected mining companies develop a Regional Mine Closure Strategy to be approved by the Department of Mineral Resources. In view of the limitation of current information for the accurate estimation of a liability, no reliable estimate can be made for the obligation.








F - 72
Table of Contents

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS



3533FINANCIAL RISK MANAGEMENT ACTIVITIES


In the normal course of its operations, the group is exposed to gold price, other commodity price, foreign exchange, interest rate, liquidity, equity price (deemed to be immaterial) and credit risks. In order to manage these risks, the group may enter into transactions which make use of both on- and off-balance sheet derivatives. The group does not acquire, hold or issue derivatives for speculative purposes. The group has developed a comprehensive risk management process to facilitate, control and monitor these risks. The board has approved and monitors this risk management process, inclusive of documented treasury policies, counterparty limits and controlling and reporting structures.


Managing risk in the group


Risk management activities within the group are the ultimate responsibility of the board of directors. The Chief Financial Officer is responsible to the board of directors for the design, implementation and monitoring of the risk management plan. The Audit and Risk Committee is responsible for overseeing risk management plans and systems, as well as financial risks which include a review of treasury activities and the group’s counterparties.


The financial risk management objectives of the group are defined as follows:
•safeguarding the group’s core earnings stream from its major assets through the effective control and management of gold price risk, other commodity risk, foreign exchange risk and interest rate risk;
•effective and efficient usage of credit facilities in both the short and long-term through the adoption of reliable liquidity management planning and procedures;
•ensuring that investment and hedging transactions are undertaken with creditworthy counterparties; and
•ensuring that all contracts and agreements related to risk management activities are co-ordinated, consistent throughout the group and that they comply where necessary with all relevant regulatory and statutory requirements.


Gold price and foreign exchange risk


Gold price risk arises from the risk of an adverse effect on current or future earnings resulting from fluctuations in the price of gold. The group has transactional foreign exchange exposures, which arise from sales or purchases by an operating unit in currencies other than the unit’sunit's functional currency. The gold market is predominantlypredominately priced in US dollars which exposes the group to the risk thatof fluctuations in the SA rand/US dollar, Brazilian real/US dollar, Argentinean peso/US dollar and Australian dollar/US dollar exchange rates may also have an adverse effect on current or future earnings. The group is also exposed to certain by-product commodity price risk.rates.



Net open hedge position as at 31 December 20192021


The group had no outstanding commitments against future production potentially settled in cash.




Interest rate and liquidity risk


The group manages liquidity risk by ensuring that there isit has sufficient committed borrowing and banking facilities after taking into consideration the actual and forecast cash flows, in order to meet the group's short, medium and long term funding and liquidity management requirements.


In the ordinary course of business, the group receives cash from the proceeds of its gold sales and is required to fund its working capital and capital expenditure requirements. This cash is managed to ensure surplus funds are invested in a manner to achieve market-related returns whilst minimising risks. The group is able to actively source financing at competitive rates. The counterpartiescounter parties are financial and banking institutions and their credit ratings are regularly monitored.


The group has sufficient undrawn borrowing facilities available to fund its working capital and capital requirements (notes 2624 and 36)34).

F - 73
Table of Contents
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)


33    Financial risk management activities (continued)

35FINANCIAL RISK MANAGEMENT ACTIVITIES (continued)

The following are the contractual maturities of financial liabilities, including interest payments:payments, are as follows:


Financial liabilities
Within one yearBetween
one and two
years		Between
two and five years		After five yearsTotal
2021$ millionsEffective
rate %		$ millionsEffective
rate %		$ millionsEffective
rate %		$ millionsEffective
rate %		$ millions
Trade and other payables647 7 — — 654 
Borrowings119 115 332 2,169 2,735 
- In USD113 4.3 76 4.2 280 4.1 2,169 4.1 2,638 
- In AUD— 1.5 33 1.5 — — — — 33 
- TZS in USD equivalent6 12.5 6 12.5 52 12.5 — — 64 
2020
Trade and other payables627 8 — — 635 
Borrowings205 901 137 1,414 2,657 
- In USD158 5.0 901 5.0 137 4.6 1,414 4.6 2,610 
- TZS in USD equivalent47 12.5 — — — — — — 47 
2019
Trade and other payables586 15 — — 601 
Borrowings802 185 1,012 602 2,601 
- In USD790 5.8 132 6.0 913 6.1 602 6.5 2,437 
- AUD in USD equivalent— 2.3 — 2.3 22 2.3 — — 22 
- TZS in USD equivalent6 12.5 47 12.5 — — — — 53 
- ZAR in USD equivalent6 8.1 6 8.1 77 8.1 — — 89 

  Within one year 
Between
one and two
years
 
Between
two and five years
 After five years Total
2019 $ millions
 
Effective
rate %
 $ millions
 
Effective
rate %
 $ millions
 
Effective
rate %
 $ millions
 
Effective
rate %
 $ millions
Trade and other payables 586
   15
   —
   —
   601
Borrowings 802
   185
   1,012
   602
   2,601
- In USD 790
 5.8 132
 6.0 913
 6.1 602
 6.5 2,437
- AUD in USD equivalent —
 2.3 —
 2.3 22
 2.3 —
 — 22
- TZS in USD equivalent 6
 12.5 47
 12.5 —
 — —
 — 53
- ZAR in USD equivalent 6
 8.1 6
 8.1 77
 8.1 —
 — 89
2018                 
Trade and other payables 562
   —
   —
   —
   562
Gold and oil derivative contracts 9
   —
   —
   —
   9
Borrowings 133
   836
   1,120
   663
   2,752
- In USD 112
 5.8 790
 5.8 1,025
 6.0 622
 6.5 2,549
- AUD in USD equivalent 7
 6.8 7
 6.8 23
 6.8 26
 6.8 63
- TZS in USD equivalent 5
 12.5 3
 12.5 29
 12.5 —
 — 37
- ZAR in USD equivalent 9
 9.0 36
 9.0 43
 9.7 15
 14.7 103
2017                 
Trade and other payables 615
   —
   —
   —
   615
Borrowings 137
   343
   1,912
   695
   3,087
- In USD 98
 5.4 145
 5.4 1,643
 5.5 641
 6.5 2,527
- AUD in USD equivalent 16
 5.1 174
 5.1 25
 6.8 38
 6.8 253
- ZAR in USD equivalent 23
 8.9 24
 8.9 244
 9.1 16
 15.5 307

With the implementation of IFRS 16 effective 1 January 2019 the finance lease liabilities historically included in borrowings have been reallocated to lease liabilities. The table below provides a breakdown of the contractual maturities including interest payments of the lease liabilities.
Within one yearBetween one and two yearsBetween two and five yearsAfter five yearsTotal
2021$ millionsEffective rate %$ millionsEffective rate %$ millionsEffective rate %$ millionsEffective rate %$ millions
Lease liabilities68 50 74 10 202 
  - In USD32 2.3 19 2.3 13 2.3 — — 64 
  - AUD in USD equivalent24 4.6 23 4.6 51 4.6 10 4.6 108 
  - BRL in USD equivalent10 11.0 7 11.0 6 11.0 — — 23 
  - ZAR in USD equivalent2 5.9 1 5.9 4 5.9 — — 7 
2020
Lease liabilities42 31 68 19 160 
  - In USD10 6.1 4 6.1 6 6.1 — — 20 
  - AUD in USD equivalent22 4.7 21 4.7 58 4.7 19 4.7 120 
  - BRL in USD equivalent7 8.4 5 8.4 4 8.4 — — 16 
  - ZAR in USD equivalent3 9.8 1 9.8 — — — — 4 
2019
Lease liabilities51 33 54 56 194 
- In USD22 7.0 4 7.0 8 7.0 1 7.0 35 
- AUD in USD equivalent22 3.5 22 3.5 42 3.5 55 3.5 141 
- BRL in USD equivalent3 6.8 3 6.8 3 6.8 — — 9 
- ZAR in USD equivalent4 9.8 4 9.8 1 9.8 — — 9 
  Within one year Between one and two years Between two and five years After five years Total
2019 $ millions
 Effective rate % $ millions
 Effective rate % $ millions
 Effective rate % $ millions
 Effective rate % $ millions
Lease liabilities 51
   33
   54
   56
   194
  - In USD 22
 7.0 4
 7.0 8
 7.0 1
 7.0 35
  - AUD in USD equivalent 22
 3.5 22
 3.5 42
 3.5 55
 3.5 141
  - BRL in USD equivalent 3
 6.8 3
 6.8 3
 6.8 —
 — 9
  - ZAR in USD equivalent 4
 9.8 4
 9.8 1
 9.8 —
 — 9


Credit risk


Credit risk arises from the risk that a counterparty may default or not meet its obligations timeously. The group minimises credit risk by ensuring that credit risk is spread over a number of counterparties. These counterparties are financial and banking institutions. Counterparty credit limits and exposures are reviewed by the Audit and Risk Committee. Where possible, management ensures that netting agreements are in place. No set-off is applied to the statement of financial position due to the different maturity profiles of assets and liabilities.



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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)


33    Financial risk management activities (continued)

35FINANCIAL RISK MANAGEMENT ACTIVITIES (continued)


The combined maximum credit risk exposure of the group is as follows:
US Dollars
Figures in millions202120202019
Other investments (1)
1 2 67 
Trade and other receivables87 95 57 
Cash restricted for use (note 21)58 73 64 
Cash and cash equivalents (note 22)1,154 1,330 456 
Total financial assets1,300 1,500 644 
  US Dollars
Figures in millions 2019
 2018
 2017
       
Other investments (1)
 67
 59
 58
Trade and other receivables 57
 41
 33
Cash restricted for use (note 23) 64
 66
 65
Cash and cash equivalents (note 24) 456
 329
 205
Total financial assets 644
 495
 361
(1) Included in other investments are amounts transferred to held for sale.sale nil (2020 : nil; 2019: $63m).


Trade and other receivables, that are past due but not impaired totalled $15m (2018: $6m; 2017: $10m). Other investments that are impaired totalled $1m (2018: nil; 2017: $3m)$18m (2020: $12m; 2019: $15m).


Trade receivables mainly comprise banking institutions purchasing gold bullion. Normalbullion and normal market settlement terms are two working days.days, therefore expected credit losses are not expected to be material.


The group does not generally obtain collateral or other security to support financial instruments subject to credit risk, but monitors the credit standing of counterparties.


The maximum exposure to credit risk for all other financial instruments are approximated by their carrying values.

Fair value of financial instruments


The estimated fair values of financial instruments are determined at discrete points in time based on relevant market information.


The estimated fair value of the group’s other investments and borrowings as at 31 December are as follows:


Type of instrument
Carrying
amount		Fair
value		Carrying
amount		Fair
value		Carrying
amount		Fair
value
Figures in millions - US Dollars202120202019
Financial assets
Other investments (1)
117 117 188 188 170 170 
Financial liabilities
Borrowings (note 24)1,909 2,011 1,931 2,131 2,033 2,135 
  
Carrying
amount

 
Fair
value

 
Carrying
amount

 
Fair
value

 
Carrying
amount

 
Fair
value

US Dollar millions 2019 2018 2017
Financial assets            
Other investments (1) 
 170
 170
 147
 147
 138
 140
Financial liabilities            
Borrowings (note 26) 2,033
 2,135
 2,050
 2,084
 2,268
 2,377
(1) Included in other investments are amounts transferred to held for sale.sale nil (2020: nil; 2019: $84m)


The following methods and assumptions were used to estimate the fair value of each class of financial instrument:


Cash restricted for use, cash and cash equivalents, trade, other receivables and other receivablesassets and trade and other payables
The carrying amounts approximate fair value due to their short term nature.


Other Investments and other non-current assets
Listed equity investments classified as FVTOCI and FVTPL are carried at fair value in level 1 of the fair value hierarchy while fixed income investments and other non-current assets are carried at amortised cost.hierarchy.


Borrowings
The rated bonds are carried at amortised cost and their fair values are their closing market values at the reporting date (fair value hierarchy - level 1). The interest rate on the remaining borrowings is resetset on a short-term floating rate basis, and accordingly the carrying amount is considered to approximate fair value.


Fair value hierarchy
The group uses the following hierarchy for determining and disclosing the fair value of financial instruments:
Level 1:
Level 1:    quoted prices (unadjusted) in active markets for identical assets or liabilities;
Level 2:inputs other than quoted prices included in level 1 that are observable for the asset or liability, either directly (as prices) or indirectly (derived from prices); and
Level 3:inputs for the asset or liability that are not based on observable market data (unobservable inputs).


Level 2:    inputs other than quoted prices included in level 1 that are observable for the asset or liability, either directly (as prices) or indirectly (derived from prices); and
Level 3:    inputs for the asset or liability that are not based on observable market data (unobservable inputs).

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)


33    Financial risk management activities (continued)

35FINANCIAL RISK MANAGEMENT ACTIVITIES (continued)


The following table sets out the group’s financial assets measured at fair value by level within the fair value hierarchy as at 31 December:


Type of instrument
Assets measured at fair value on a recurring basis
Figures in millions - US DollarsLevel 1Level 2Level 3Total
2021
Equity securities - FVTOCI116 — — 116 
Deferred compensation asset— — 25 25 
2020
Deferred compensation asset— — 28 28 
Equity securities - FVTOCI186 — — 186 
2019
Equity securities - FVTOCI82— — 82
Equity securities - FVTPL21 — — 21 

Level 3 financial assets
On 12 February 2020, AngloGold Ashanti announced that it had reached an agreement to sell its remaining South African producing assets and related liabilities to Harmony Gold Mining Company Limited ("Harmony"). The transaction closed on 30 September 2020, with Harmony taking effective control of these producing assets and related liabilities on 1 October 2020. Consideration for the transaction is in cash and deferred payments, subject to subsequent performance, and with additional proceeds if the West Wits assets are developed below current infrastructure.

The two components of the deferred compensation assets are calculated as follows:
a.$260 per ounce payable on all underground production sourced within the West Wits mineral rights (comprising the Mponeng, Savuka and TauTona mines) in excess of 250,000 ounces per annum for 6 years commencing 1 January 2021. Using a probability weighted calculation of unobservable market data and estimated with reference to expected underlying discounted cash flows a deferred compensation asset of $25m is recognised in the statement of financial position as at 31 December 2021.

b. $20 per ounce payable on underground production sourced within the West Wits mineral rights (comprising the Mponeng, Savuka and TauTona mines) below the datum of current infrastructure. At transaction date this constituted 8.53 million ounces of Mineral Reserve. The consideration is dependent on Harmony developing below infrastructure. The performance of this obligation is outside the influence of AngloGold Ashanti as it depends on Harmony’s future investment decisions. Under the conditions prevailing as at 31 December 2021, no portion of deferred compensation below infrastructure has been included in the deferred compensation asset.
F - 76
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)

33FINANCIAL RISK MANAGEMENT ACTIVITIES (continued)
US Dollar millions Level 1 Level 2 Level 3 Total
  2019
         
Equity securities - FVTPL (1)
 21
 —
 —
 21
Equity securities - FVTOCI 82
 —
 —
 82
     
  2018
Equity securities - FVTPL 19
 —
 —
 19
Equity securities - FVTOCI 69
 —
 —
 69
  2017
         
Equity securities - available-for-sale
 80
 —
 —
 80
Reconciliation of deferred compensation asset
(1) Included
A reconciliation of the deferred compensation asset included in equity securities - FVTPL are amounts transferred to held for sale.the statement of financial position is set out in the following table:

Figures in millions - US Dollars2021
Opening balance28 
Unwinding of the deferred compensation asset2 
Changes in estimates - fair value adjustments (1)
(3)
Translation(2)
Closing balance (2)
25 
(1) Included in the Income statement in foreign exchange and fair value adjustments
(2) Included in the Statement of financial position in non-current trade, other receivables and other assets    
Sensitivity analysis
The table below illustrates the impact on the fair value of the deferred compensation asset resulting from an increase / decrease in production estimates over the remaining period used in the weighted probability calculation.
Percentage
change in
number of
ounces		Change in
deferred
compensation
asset
$m
Effect of changes in assumptions
Increase in number of ounces+10%3 
Decrease in number of ounces-10%(3)
The sensitivity on the weighted number of ounces included within the weighted probability calculation has been based on the range of possible outcomes expected from Harmony’s mining plans, which could differ from the actual mining plans followed by Harmony.


Environmental obligations


Pursuant to environmental regulations in the countries in which we operate, in connection with planning for end-of-life of our mines, we are obligated to close our operations and rehabilitate the lands which we mine in accordance with these regulations. As a consequence,where such mines are located. In most cases, AngloGold Ashanti is required in some circumstances to provide either reclamationsfinancial guarantees for such work, including reclamation bonds or letters of credit issued by third party entities, establish independent trust funds or provide guarantees issuedcash reserves maintained by the operation, to the respective environmental protection agency, or such other government department with responsibility for environmental oversight in the respective country, to cover the potentialestimated environmental rehabilitation obligation in specified amounts.obligations.


In most cases, the environmental obligations will expire on completion of the rehabilitation although, in some cases, we aremay be required to potentially post bonds for potential events unknownor conditions that maycould arise after the rehabilitation has been completed.


In Australia, since 2014, the group haswe have paid into a Mine Rehabilitation Fund an amount of AUD $6.8m into a Mine Rehabilitation Fund$10m for a current carrying value of the liability of AUD $137.9m.$138m. At Iduapriem, the group haswe have provided a bond comprisedcomprising of a cash component of $9.99m$11m with a further bond guarantee amounting to $36.6m$39m issued by EcobankABSA Bank Ghana Limited Unitedand Standard Chartered Bank for Africa (Ghana) Limited and Barclays Ghana LimitedLtd for a current carrying value of the liability of $46.3m.$54m. At Obuasi, the group haswe have provided a bond comprisedcomprising of a cash component of $20.6m$21m with a further bank guarantee amounting to $30m issued by Nedbankamongst Stanbic Bank Ghana Limited for $13m and Standard Chartered Bank Ghana PLC (SCB) for $17m for a current carrying value of the liability of $186.3m.$217m. In some circumstances the groupwe may be required to post further bonds in future years,due course which will result inhave a consequential income statement charge for the fees charged by the providers of the reclamation bonds.

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Table of Contents
In South Africa, AngloGold Ashanti has established a trust fund which has assets of ZAR 1.156bn and guarantees of ZAR 0.549bn issued by various banks, for a current carrying value of the liability of ZAR 0.897bn. The fund, guarantees and liability form part of the South African disposal group and have been transferred to held for sale. Refer to note 9.


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)


33    Financial risk management activities (continued)

35FINANCIAL RISK MANAGEMENT ACTIVITIES (continued)


Sensitivity analysis
Interest rate risk on other financial assets and liabilities (excluding derivatives)
The group also monitors interest rate risk on other financial assets and liabilities.
The following table shows the approximate interest rate sensitivities of other financial assets and liabilities at 31 December (actual changes in the timing and amount of the following variables may differ from the assumed changes below). As the sensitivity is the same (linear) for both increases and decreases in interest rates only absolute numbers are presented. The expected impact on the Group's profit or loss and equity is fairly reflected within the "Change in interest" amount.
Change in interest
rate
basis points		Change in interest
amount
in currency
millions		Change in interest
amount
US dollar
millions
2021
Financial assets
USD denominated1003 3 
AUD denominated1501 1 
CAD denominated1004 5 
Financial liabilities
TZS denominated2502,692 1 
AUD denominated1501 1 
USD denominated1001 1 
 
Change in interest
rate
basis points

 
Change in interest
amount
in currency
millions

 
Change in interest
amount
US dollar
millions

Change in interest
rate
basis points		Change in interest
amount
in currency
millions		Change in interest
amount
US dollar
millions
 20192020
Financial assets      Financial assets
USD denominated 100
 1
 1
USD denominated1006 6 
AUD denominated 150
 1
 1
AUD denominated1501 1 
ARS denominatedARS denominated250121 1 
Financial liabilities      Financial liabilities
TZS denominated 250
 2,704
 1
TZS denominated2502,730 1 
ZAR denominated(2)
 150
 15
 1
USD denominated 100
 1
 1
USD denominated1001 1 
      

Change in interest
rate
basis points		Change in interest
amount
in currency
millions		Change in interest
amount
US dollar
millions
2019
Financial assets
USD denominated1001 1 
ZAR denominated1501 1 
Financial liabilities
TZS denominated2502,704 1 
ZAR denominated(1)
15015 1 
AUD denominated1001 1 

  
Change in interest
rate
basis points

 
Change in interest
amount
in currency
millions

 
Change in interest
amount
US dollar
millions

  2018
Financial assets      
USD denominated 100
 1
 1
AUD denominated 150
 1
 1
BRL denominated 250
 2
 1
Financial liabilities      
TZS denominated 250
 1,680
 1
ZAR denominated(2)
 150
 14
 1
USD denominated 100
 1
 1

  
Change in interest
rate
basis points

 
Change in interest
amount
in currency
millions

 
Change in interest
amount
US dollar
millions

  2017
Financial assets      
USD denominated 100
 1
 1
ZAR denominated(1)(2)
 150
 2
 —
Financial liabilities      
ZAR denominated(2)
 150
 41
 3
AUD denominated 100
 3
 2

(1) A change of 100 basis points in financial assets results in less than a $1m change in the interest amount.
(2) This is the only interest rate risk for the company.Company






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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)


33    Financial risk management activities (continued)

35FINANCIAL RISK MANAGEMENT ACTIVITIES (continued)


Foreign exchange risk


Foreign exchange risk arises on financial instruments that are denominated in a foreign currency.


The following table discloses the approximate foreign exchange risk sensitivities of borrowings at 31 December (actual changes in the timing and amount of the following variables may differ from the assumed changes below).
Change in
exchange rate		Change in
borrowings
total		Change in
exchange rate		Change in
borrowings
total		Change in
exchange rate		Change in
borrowings
total
US$ MillionUS$ MillionUS$ Million
202120202019
Borrowings
ZAR denominated (R/$)Spot (+R1.50)— Spot (+R1.50)— Spot (+R1.50)(7)
TZS denominated (TZS/$)Spot (+TZS250)(5)Spot (+TZS250)(5)Spot (+TZS250)(5)
AUD denominated (AUD/$)Spot (+AUD0.1)(2)Spot (+AUD0.1)— Spot (+AUD0.1)(1)
ZAR denominated (R/$)Spot (-R(1.5))— Spot (-R(1.5))— Spot (-R(1.50))9 
TZS denominated (TZS/$)Spot (-TZS(250))6 Spot (-TZS(250))6 Spot (-TZS(250))6
AUD denominated (AUD/$)Spot (-AUD(0.1))2 Spot (-AUD(0.1))— Spot (-AUD(0.1))1 
  Change in
exchange rate		 Change in
borrowings
total
 Change in
exchange rate		 Change in
borrowings
total
 Change in
exchange rate		 Change in
borrowings
total
   US$ Million
  US$ Million
  US$ Million
  2019 2018 2017
Borrowings            
ZAR denominated (R/$) Spot (+R1.50) (7) Spot (+R1.50) (7) Spot (+R1.50) (26)
TZS denominated (TZS/$) Spot (+TZS250) (5) Spot (+TZS250) (3)    
AUD denominated (AUD/$) Spot (+AUD0.1) (1) Spot (+AUD0.1) (3) Spot (+AUD0.1) (16)
ZAR denominated (R/$) Spot (-R1.50) 9
 Spot (-R1.50) 9
 Spot (-R1.50) 33
TZS denominated (TZS/$) Spot (-TZS250) 6
 Spot (-TZS250) 4
    
AUD denominated (AUD/$) Spot (-AUD0.1) 1
 Spot (-AUD0.1) 4
 Spot (-AUD0.1) 19


The borrowings total in the denominated currency will not be influenced by a movement in its exchange rate.

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)







3634    CAPITAL MANAGEMENT


The primary objective of managing the group's capital is to ensure that there is sufficient capital available to support the funding requirements of the group, including capital expenditure, in a way that optimises the cost of capital, maximises shareholders' returns and ensures that the group remains in a sound financial position.


The capital structure of the group consists of net debt (borrowings as detailed in note 26,24, offset by cash and bank balances detailed in note 24)22) and equity of the group (comprising share capital and premium and accumulated reserves and non-controlling interests).


The group manages and makes adjustments to the capital structure as opportunities arise in the market place, as and when borrowings mature, or as and when funding is required. This may take the form of raising equity, market or bank debt or hybrids thereof.


The group manages capital using various financial metrics including the ratio of Adjusted net debt to Adjusted EBITDA (gearing). Both the calculation of Adjusted net debt and Adjusted EBITDA are based on the formula included in the Revolving Credit Agreements. The loan covenant ratio of Adjusted net debt to Adjusted EBITDA should not exceed 3.5 times. The facility also makes provision for the ability of the group to have a leverage ratio of greater than 3.5 times but less than 4.5 times, subject to certain conditions, for one measurement period not exceeding six months, during the tenor of the facility.


The group had no major issuance of equity during the year.


A full analysis of the borrowings as presented on the statement of financial position is included in note 24. During October and November 2021 the $750m rated bonds due 2022 issued during July 2012, were redeemed. During October 2021 the Company concluded a 7-year $750m bond offering, priced at 3.375% per annum due 2028. The bonds were issued on 22 October 2021 with interest accruing from that date. Coupons are payable on a semi-annual basis payable in May and November each year and the bonds are repayable on 1 November 2028.

The $300m, $700m and the new $750m rated bonds are fully and unconditionally guaranteed by AngloGold Ashanti Limited.

During January 2019December 2021, the $35m Geitagroup entered into a new syndicated three-year unsecured multi-currency revolving credit facility entered into in August 2016 was combined with the existing $115m Geita revolving credit facility. The combined $150m revolving credit facility with Nedbank Ltd consists of a US dollar and Tanzanian Shilling facility.$150m. Facility A is a US dollar-baseddollar- based facility with interest charged at a margin of 6.7% above LIBOR and facility B is a Tanzanian Shilling facility capped at the approximate equivalent of $45m$87m with interest charged at a margin of 5% plus a reference rate as determined by the lending agent.
During February 2019 the $65m Siguiri revolving credit facility entered into in August 2016 was renewed for a further 3 years and matures on 27 February 2022. The facility bears interestis repayable at 8% above LIBOR, subject to a ratings grid and is US dollar-based.
A full analysis of the borrowings as presentedeither 26 August 2024 or 17 December 2024 depending on the statementfulfilment of financial positioncertain conditions in included in note 26. In addition, the following details are also relevant to the borrowings at 31 December 2019:borrowing agreement.

The $750m, $700m and $300m rated bonds are fully and unconditionally guaranteed by the group.


The interest margin on the five-year unsecured multi-currency syndicated revolving credit facility of $1.4bn with a group of banks will reduce should the group’s credit rating improve from its current BB+/Baa3 status and should increase if its credit rating worsens. The A$500m portion of this facility will be used to fund the working capital and development costs associated with the group's mining operations within Australia without eroding the group's headroom under its other facilities and exposing the group to foreign exchange gains/losses each quarter.losses.


The R1bn, R1.4bn and R2.5bn unsecured syndicated revolving credit facilities will be used to fund the working capital and development costs associated with the group's operations within South Africa without eroding the group's headroom under its other facilities and exposing the group to foreign exchange gains/losses each quarter.


Amounts are converted to US dollarsdollar at year end exchange rates.

F - 80
Table of Contents

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)


3634    Capital Management (continued)


Gearing ratio (Adjusted Net debt to Adjusted EBITDA)
US Dollars
Figures in millions202120202019
Adjusted net debt from continuing operations
Borrowings - non-current portion (note 24)1,858 1,789 1,299 
Lease liabilities - non-current portion (note 14)124 116 126 
Borrowings - current portion (note 24)51 142 734 
Lease liabilities - current portion (note 14)61 37 45 
Total borrowings2,094 2,084 2,204 
Less: cash and cash equivalents (note 22)(1,154)(1,330)(456)
Net debt940 754 1,748 
Adjustments:
IFRS16 lease adjustments(149)(106)(119)
Unamortised portion of borrowing costs32 22 16 
Cash restricted for use (note 21)(58)(73)(64)
Adjusted net debt765 597 1,581 
The Adjusted EBITDA calculation included in this note is based on the formula included in the Revolving Credit Agreements for compliance with the debt covenant formula.
Adjusted EBITDA from continuing operations
Profit (loss) before taxation958 1,589 619 
Add back:
Finance costs and unwinding of obligations (note 6)116 177 172 
Interest income(58)(27)(14)
Amortisation of tangible, intangible and right of use assets (note 4)477 570 583 
Other amortisation4 6 6 
Associates and joint ventures’ adjustments for amortisation, interest and taxation183 168 149 
EBITDA1,680 2,483 1,515 
Adjustments:
Foreign exchange and fair value adjustments43 — 12 
Dividend income— (2)— 
Retrenchment and related costs20 2 7 
Care and maintenance costs (note 5)45 — 47 
Impairment, derecognition of assets and (profit) loss on disposal(11)1 6 
Profit on disposal of joint ventures— (19)— 
Premium on settlement of bonds24 — — 
Loss (gain) on non-hedge derivatives and other commodity contracts— 5 (5)
Associates and joint ventures’ share of costs— — (2)
Adjusted EBITDA (as defined in the Revolving Credit Agreements)1,801 2,470 1,580 
Gearing ratio (Adjusted net debt to Adjusted EBITDA)0.42:10.24:11.00:1
Maximum debt covenant ratio allowed per agreement3.5:13.5:13.5:1

F - 81
 US Dollars
Figures in millions2019
 2018
 2017
      
Adjusted net debt from continuing operations     
Borrowings - non-current portion (note 26)1,299
 1,911
 2,230
Lease liabilities - non-current portion (note 16)126
    
Borrowings - current portion (note 26)734
 139
 38
Lease liabilities - current portion (note 16)45
 —
 —
Total borrowings2,204
 2,050
 2,268
Less cash and cash equivalents (note 24)(456) (329) (205)
Net debt1,748
 1,721
 2,063
      
Adjustments:     
IFRS16 lease adjustments(119)    
Corporate office lease  (9) (15)
Unamortised portion of borrowing costs

16
 13
 18
Cash restricted for use (note 23)(64) (66) (65)
Adjusted net debt1,581
 1,659
 2,001
      
The Adjusted EBITDA calculation included in this note is based on the formula included in the Revolving Credit Facility Agreements for compliance with the debt covenant formula.
Adjusted EBITDA from continuing operations     
Profit (loss) before taxation619
 445
 328
Add back:
 
 
Finance costs and unwinding of obligations (note 7)172
 168
 157
Interest income(14) (8) (8)
Amortisation of tangible, intangible and right of use assets (note 4)583
 558
 690
Other amortisation6
 11
 3
Associates and joint ventures’ adjustments for amortisation, interest, taxation and other149
 158
 117
EBITDA1,515
 1,332
 1,287
      
Adjustments:
 
 
Foreign exchange losses12
 9
 11
Dividend income—
 (2) —
Retrenchment and related costs7
 4
 9
Care and maintenance costs (note 6)47
 39
 62
Impairment, derecognition of assets and (profit) loss on disposal6
 7
 2
(Gain) loss on non-hedge derivatives and other commodity contracts(5) 2
 —
Associates and joint ventures’ special items(2) (3) (2)
Adjusted EBITDA (as defined in the Revolving Credit Agreements)1,580
 1,388
 1,369
Gearing ratio (Adjusted Net debt to Adjusted EBITDA)1.00:1
 1.20:1
 1.46:1
Maximum debt covenant ratio allowed per agreement3.5:1
 3.5:1
 3.5:1
Table of Contents

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
37    
35    SUBSEQUENT EVENTS


Sale
AngloGold Ashanti Announces Completion of South African assets:Acquisition of Corvus
On 12 February 2020,18 January 2022, AngloGold Ashanti announced that it has reachedthe successful completion of the previously announced plan of arrangement with Corvus Gold Inc. (“Corvus”), pursuant to which AngloGold Ashanti agreed to acquire the remaining 80.5% of common shares of Corvus, not already owned by AngloGold Ashanti. On acquisition, AngloGold Ashanti obtained control over Corvus. Under the terms of the arrangement, the shareholders of Corvus (other than the AGA group) received C$4.10 in cash per Corvus share.

The acquisition, deemed to be an agreementasset acquisition under IFRS, resulted in a total consideration of $445m, including a non-cash consideration of $80m. The non-cash consideration represents the fair value of the 19.5% Corvus investment held by the group, prior to sell its remaining South African producingthe acquisition of the 80.5%, and previously accounted for as an equity investment at fair value through OCI. The cash consideration paid, including transaction costs, at an exchange rate of C$1.26/$, amounted to $365m.

The total consideration will be allocated to the acquired assets and relatedassumed liabilities to Harmony Gold Mining Company Limited. Consideration forbased on their estimated relative fair values on the transactionacquisition date, which primarily consist of leased mineral properties and exploration results. Management is in cashfinalising the assessment of certain inputs and deferred payments with expected proceedsassumptions and gathering information that may impact the identification and fair value of around $300m, subject to subsequent performance and with additional proceeds if the West Wits assets are developed below current infrastructure. Refer to note 9.net assets.


Dividend declaration:declaration - On 2122 February 2020,2022, the directors of AngloGold Ashanti declared a gross cash dividend per ordinary share of 165217 South African cents (assuming an exchange rate of ZAR 15/15.50/$, the gross dividend payable per ADS is equivalent to ~1114 US cents).


COVID-19 pandemic: At the date of approval of these consolidated annual financial statements, the SARS-CoV-2 virus responsible for COVID-19 continues to spread across the globe, contributing to a sharp decline in global financial markets and a significant decrease in global economic activity. On 11 March 2020, the COVID-19 outbreak was declared a global pandemic by the World Health Organization and has since then resulted in numerous governments and companies, including AngloGold Ashanti, introducing a variety of measures to contain the spread of the virus.  To date, we have taken a number of proactive steps to protect our employees, our host communities and business, in line with the company’s values, guidelines and advice provided by the WHO and with the requirements of the countries in which we operate. Cases of the outbreak have been reported in all of the jurisdictions in which we operate, and it may lead to a prolonged restriction on the movement of people and continued requirement for people to self-isolate or be quarantined.

Any self-imposed or government-mandated temporary lockdowns may disrupt the company’s activities and operations and even lead to a full or partial temporary suspension of the company’s mining operations in those jurisdictions. On 21 March 2020, following the Argentinian government’s decision to impose a nationwide lockdown (quarantine) until 31 March 2020, including temporary travel restrictions, border closings and suspension of most industries, Cerro Vanguardia S.A. (CVSA) was required to temporarily suspend mining activities.


On 23 March 2020, the South African government announced a 21-day nationwide lockdown, effective from midnight on 26 March 2020, resulting in the temporary suspension of mining activities of the company’s South African operations particularly Mponeng, and the partial suspension of mining activities at Mine Waste Solutions (MWS) and Surface Operations.

On 26 March 2020, the State of Goiás, in Brazil, extended a set of restrictions on the operation of non-essential business, to include mining. These restrictions are set to run through 4 April 2020. Mineração Serra Grande (MSG) S.A. will temporarily suspend its operations.


The current impact of all of the suspended operations is expected to be about 30,000oz to 40,000oz, or less than 2% of annual production. In these countries, the suspension of mining activities will continue for the period during which the respective restrictions remain in force.

While minimal operational disruptions have occurred at the company’s other operations to date, the company may experience temporary disruptions in supply chain and logistics across its operations in the coming months should the pandemic be prolonged. Such disruptions, which include restrictions in travel and border access, may impact the company’s ability to source and transport goods and services required to operate mines and to transport gold doré to refineries. Furthermore, should COVID-19 spread among the company’s workforce, it may lead to a full or partial temporary suspension of the company’s operating mines in those affected areas.

Given the uncertainties with respect to future developments, including duration, severity and scope of the COVID-19 pandemic and the necessary government responses to limiting its spread, the board has decided to withdraw its market guidance for 2020 published as part of its preliminary condensed consolidated financial results on 21 February 2020, at this time.

In anticipation of a prolonged negative impact from the COVID-19 pandemic, on 18 March 2020, the company accelerated a drawdown of $900m on its $1.4bn Multi-currency RCF  to redeem the $700m 5.375% bonds maturing on 15 April 2020 and to have sufficient cash available to manage ongoing working capital requirements.  The company drew down a further $450m, on the remainder of its $1.4bn Multi-currency RCF which was received on 27th March 2020. After the drawdowns, the company's cash on hand exceeds $1.8bn (excluding cash lock-up positions at Kibali and Sadiola, where AnglGold Ashanti's combined share totals $300m).

Management will continue to take a prudent and proactive approach to managing the group’s liquidity, which may include procuring additional credit facilities or debt over and above its current facilities.





NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)




38    SUPPLEMENTAL CONDENSED CONSOLIDATING FINANCIAL INFORMATION

AngloGold Ashanti Holdings plc (“IOMco”), a 100 percent wholly-owned subsidiary of AngloGold Ashanti Limited, has issued debt securities which are fully and unconditionally guaranteed by AngloGold Ashanti Limited (being the “Guarantor”). See Note 26 and Note 34. IOMco is an Isle of Man registered company that holds certain of AngloGold Ashanti’s operations and assets located outside South Africa (excluding certain operations and assets in the United States of America). The following is condensed consolidating financial information for the Company as of 31 December 2019, 2018 and 2017 and for the years ended 31 December 2019, 2018 and 2017, with a separate column for each of AngloGold Ashanti Limited as Guarantor, IOMco as Issuer and the other subsidiaries of the Company combined (the “Non-Guarantor Subsidiaries”). For the purposes of the condensed consolidating financial information, the Company carries its investments under the equity method. The following supplemental condensed consolidating financial information should be read in conjunction with the Company’s condensed consolidated financial statements.
Figures in millions (US dollars)2019
 2019
 2019
 2019
 2019
Condensed consolidating income statement
AngloGold Ashanti
(the “Guarantor”)

 
IOMco
(the “Issuer”)

 
Other subsidiaries
(the “Non-Guarantor
Subsidiaries”)

 
Consolidation
adjustments

 Total
Revenue from product sales—
 —
 3,525
 —
 3,525
Cost of sales(1) —
 (2,625) —
 (2,626)
Gain (loss) on non-hedge derivatives and other commodity contracts—
 —
 5
 —
 5
Gross profit (loss)(1) —
 905
 —
 904
Corporate administration, marketing and other income (expenses)(41) (6) (17) (18) (82)
Exploration and evaluation costs—
 —
 (112) —
 (112)
Impairment, derecognition of assets and profit (loss) on disposal—
 (3) (6) 3
 (6)
Other income (expenses)(10) 3
 135
 (211) (83)
Operating profit (loss)(52) (6) 905
 (226) 621
Interest income3
 6
 5
 —
 14
Foreign exchange losses

—
 (4) (8) —
 (12)
Finance costs and unwinding of obligations(16) (106) (56) 6
 (172)
Share of associates and joint ventures’ profit (loss)—
 —
 154
 14
 168
Equity gain (loss) in subsidiaries302
 815
 —
 (1,117) —
Profit (loss) before taxation237
 705
 1,000
 (1,323) 619
Taxation32
 —
 (282) —
 (250)
Profit (loss) after taxation from continuing operations

269
 705
 718
 (1,323) 369
Discontinued operations         
Profit (loss) from discontinued operations(281) —
 (95) —
 (376)
Profit (loss) for the period(12) 705
 623
 (1,323) (7)
Allocated as follows:         
Equity shareholders         
- Continuing operations269
 705
 713
 (1,323) 364
- Discontinued operations(281) —
 (95) —
 (376)
Non-controlling interests         
- Continuing operations

—
 —
 5
 —
 5
 (12) 705
 623
 (1,323) (7)
Comprehensive income (loss)2
 717
 618
 (1,330) 7
Comprehensive (income) loss attributable to non-controlling interests—
 —
 (5) —
 (5)
Comprehensive income (loss) attributable to AngloGold Ashanti2
 717
 613
 (1,330) 2


Figures in millions (US dollars)2018
 2018
 2018
 2018
 2018
Condensed consolidating income statement (restated)
AngloGold Ashanti
(the “Guarantor”)

 
IOMco
(the “Issuer”)

 
Other subsidiaries
(the “Non-Guarantor
Subsidiaries”)

 
Consolidation
adjustments

 Total
Revenue from product sales—
 —
 3,336
 —
 3,336
Cost of sales(2) —
 (2,582) —
 (2,584)
Gain (loss) on non-hedge derivatives and other commodity contracts—
 —
 (2) —
 (2)
Gross profit (loss)(2) —
 752
 —
 750
Corporate administration, marketing and other income (expenses)(12) (20) (13) (31) (76)
Exploration and evaluation costs—
 —
 (98) —
 (98)
Impairment, derecognition of assets and profit (loss) on disposal—
 1
 (9) 1
 (7)
Other income (expenses)(10) 10
 (70) (9) (79)
Operating profit (loss)(24) (9) 562
 (39) 490
Interest income—
 4
 4
 —
 8
Dividend received2
 —
 —
 —
 2
Foreign exchange losses

—
 (6) (3) —
 (9)
Finance costs and unwinding of obligations(16) (107) (45) —
 (168)
Share of associates and joint ventures’ profit (loss)5
 —
 108
 9
 122
Equity gain (loss) in subsidiaries142
 490
 —
 (632) —
Profit (loss) before taxation109
 372
 626
 (662) 445
Taxation23
 —
 (235) —
 (212)
Profit (loss) after taxation from continuing operations

132
 372
 391
 (662) 233
Discontinued operations

         
Profit (loss) from discontinued operations

1
 —
 (84) —
 (83)
Profit (loss) for the period133
 372
 307
 (662) 150
          
Allocated as follows:         
Equity shareholders         
- Continuing operations

132
 372
 374
 (662) 216
- Discontinued operations

1
 —
 (84) —
 (83)
Non-controlling interests         
- Continuing operations

—
 —
 17
 —
 17
 133
 372
 307
 (662) 150
Comprehensive income (loss)(8) 320
 301
 (604) 9
Comprehensive (income) loss attributable to non-controlling interests—
 —
 (17) —
 (17)
Comprehensive income (loss) attributable to AngloGold Ashanti(8) 320
 284
 (604) (8)


Figures in millions (US dollars)2017
 2017
 2017
 2017
 2017
Condensed consolidating income statement (restated)
AngloGold Ashanti
(the “Guarantor”)

 
IOMco
(the “Issuer”)

 
Other subsidiaries
(the “Non-Guarantor
Subsidiaries”)

 
Consolidation
adjustments

 Total
Revenue from product sales—
 —
 3,424
 (30) 3,394
Cost of sales(2) —
 (2,606) 1
 (2,607)
Gain (loss) on non-hedge derivatives and other commodity contracts—
 —
 —
 —
 —
Gross profit (loss)(2) —
 818
 (29) 787
Corporate administration, marketing and other income (expenses)(7) (7) (2) (48) (64)
Exploration and evaluation costs(1) —
 (104) —
 (105)
Impairment, derecognition of assets and profit (loss) on disposal—
 2
 (4) —
 (2)
Other income (expenses)(71) (8) (79) 8
 (150)
Operating profit (loss)(81) (13) 629
 (69) 466
Interest income1
 3
 4
 —
 8
Foreign exchange losses

—
 1
 (12) —
 (11)
Finance costs and unwinding of obligations(14) (107) (36) —
 (157)
Share of associates and joint ventures’ profit (loss)13
 —
 9
 —
 22
Equity gain (loss) in subsidiaries212
 447
 —
 (659) —
Profit (loss) before taxation131
 331
 594
 (728) 328
Taxation32
 —
 (195) —
 (163)
Profit (loss) after taxation from continuing operations

163
 331
 399
 (728) 165
Discontinued operations

         
Profit (loss) from discontinued operations

(324) —
 (12) —
 (336)
Profit (loss) after discontinued operations(161) 331
 387
 (728) (171)
Preferred stock dividends(30) —
 —
 30
 —
Profit (loss) for the period(191) 331
 387
 (698) (171)
          
Allocated as follows:         
Equity shareholders         
- Continuing operations

133
 331
 379
 (698) 145
- Discontinued operations

(324) —
 (12) —
 (336)
Non-controlling interests         
- Continuing operations

—
 —
 20
 —
 20
 (191) 331
 387
 (698) (171)
Comprehensive income (loss)(37) 365
 422
 (767) (17)
Comprehensive (income) loss attributable to non-controlling interests—
 —
 (20) —
 (20)
Comprehensive income (loss) attributable to AngloGold Ashanti(37) 365
 402
 (767) (37)


Figures in millions (US dollars)2019
 2019
 2019
 2019
 2019
Condensed consolidating statement of financial position
AngloGold Ashanti
(the “Guarantor”)

 
IOMco
(the “Issuer”)

 
Other subsidiaries
(the 
“Non-Guarantor
Subsidiaries”)

 
Consolidation
adjustments

 Total
ASSETS         
Non-current assets         
Tangible and right of use assets4
 —
 2,740
 6
 2,750
Intangible assets1
 —
 123
 (1) 123
Investments in subsidiaries, associates and joint ventures2,646
 4,612
 1,459
 (7,136) 1,581
Other investments2
 2
 74
 (2) 76
Inventories—
 —
 93
 —
 93
Trade and other receivables—
 29
 122
 (29) 122
Deferred taxation105
 —
 —
 —
 105
Cash restricted for use—
 —
 31
 —
 31
 2,758
 4,643
 4,642
 (7,162) 4,881
Current assets         
Other investments—
 10
 —
 —
 10
Inventories, trade and other receivables, intergroup balances and other current assets333
 619
 1,247
 (1,317) 882
Cash restricted for use—
 —
 33
 —
 33
Cash and cash equivalents12
 102
 342
 —
 456
 345
 731
 1,622
 (1,317) 1,381
Assets held for sale253
 —
 348
 —
 601
 598
 731
 1,970
 (1,317) 1,982
          
Total assets3,356
 5,374
 6,612
 (8,479) 6,863
          
EQUITY AND LIABILITIES         
Share capital and premium7,199
 6,096
 837
 (6,933) 7,199
Retained earnings (accumulated losses) and other reserves(4,559) (2,715) 1,668
 1,047
 (4,559)
Shareholders’ equity2,640
 3,381
 2,505
 (5,886) 2,640
Non-controlling interests—
 —
 36
 —
 36
Total equity2,640
 3,381
 2,541
 (5,886) 2,676
          
Non-current liabilities225
 1,031
 1,222
 —
 2,478
Current liabilities including intergroup balances401
 962
 2,667
 (2,593) 1,437
Liabilities held for sale90
 —
 182
 —
 272
Total liabilities716
 1,993
 4,071
 (2,593) 4,187
Total equity and liabilities3,356
 5,374
 6,612
 (8,479) 6,863


Figures in millions (US dollars)2018
 2018
 2018
 2018
 2018
Condensed consolidating statement of financial position
AngloGold Ashanti
(the “Guarantor”)

 
IOMco
(the “Issuer”)

 
Other subsidiaries
(the 
“Non-Guarantor
Subsidiaries”)

 
Consolidation
adjustments

 Total
ASSETS         
Non-current assets         
Tangible assets625
 —
 2,756
 —
 3,381
Intangible assets1
 —
 123
 (1) 123
Investments in subsidiaries, associates and joint ventures2,383
 4,255
 1,398
 (6,508) 1,528
Other investments2
 3
 138
 (2) 141
Inventories1
 —
 105
 —
 106
Trade and other receivables—
 29
 102
 (29) 102
Cash restricted for use—
 —
 35
 —
 35
 3,012
 4,287
 4,657
 (6,540) 5,416
Current assets         
Other investments—
 6
 —
 —
 6
Inventories, trade and other receivables, intergroup balances and other current assets390
 416
 1,166
 (1,111) 861
Cash restricted for use—
 —
 31
 —
 31
Cash and cash equivalents7
 97
 225
 —
 329
 397
 519
 1,422
 (1,111) 1,227
          
Total assets3,409
 4,806
 6,079
 (7,651) 6,643
EQUITY AND LIABILITIES         
Share capital and premium7,171
 6,096
 821
 (6,917) 7,171
Retained earnings (accumulated losses) and other reserves(4,519) (3,310) 1,406
 1,904
 (4,519)
Shareholders’ equity2,652
 2,786
 2,227
 (5,013) 2,652
Non-controlling interests—
 —
 42
 —
 42
Total equity2,652
 2,786
 2,269
 (5,013) 2,694
          
Non-current liabilities319
 1,734
 1,103
 —
 3,156
Current liabilities including intergroup balances438
 286
 2,707
 (2,638) 793
Total liabilities757
 2,020
 3,810
 (2,638) 3,949
Total equity and liabilities3,409
 4,806
 6,079
 (7,651) 6,643


Figures in millions (US dollars)2017
 2017
 2017
 2017
 2017
Condensed consolidating statement of financial position
AngloGold Ashanti
(the “Guarantor”)

 
IOMco
(the “Issuer”)

 
Other subsidiaries
(the 
“Non-Guarantor
Subsidiaries”)

 
Consolidation
adjustments

 Total
ASSETS         
Non-current assets         
Tangible assets739
 —
 3,003
 —
 3,742
Intangible assets1
 —
 139
 (2) 138
Investments in subsidiaries, associates and joint ventures2,371
 4,376
 1,371
 (6,611) 1,507
Other investments2
 6
 125
 (2) 131
Inventories—
 —
 100
 —
 100
Trade and other receivables—
 29
 67
 (29) 67
Deferred taxation—
 —
 4
 —
 4
Cash restricted for use—
 —
 37
 —
 37
 3,113
 4,411
 4,846
 (6,644) 5,726
Current assets         
Other investments—
 6
 1
 —
 7
Inventories, trade and other receivables, intergroup balances and other current assets471
 145
 1,166
 (877) 905
Cash restricted for use—
 1
 27
 —
 28
Cash and cash equivalents11
 21
 173
 —
 205
 482
 173
 1,367
 (877) 1,145
Assets held for sale

310
 —
 38
 —
 348
 792
 173
 1,405
 (877) 1,493
          
Total assets3,905
 4,584
 6,251
 (7,521) 7,219
EQUITY AND LIABILITIES         
Share capital and premium7,134
 6,096
 824
 (6,920) 7,134
Retained earnings (accumulated losses) and other reserves(4,471) (3,491) 1,619
 1,872
 (4,471)
Shareholders’ equity2,663
 2,605
 2,443
 (5,048) 2,663
Non-controlling interests—
 —
 41
 —
 41
Total equity2,663
 2,605
 2,484
 (5,048) 2,704
          
Non-current liabilities527
 1,764
 1,369
 —
 3,660
Current liabilities including intergroup balances591
 215
 2,396
 (2,473) 729
Liabilities held for sale

124
 —
 2
 —
 126
Total liabilities1,242
 1,979
 3,767
 (2,473) 4,515
Total equity and liabilities3,905
 4,584
 6,251
 (7,521) 7,219












Figures in millions (US dollars)2019
 2019
 2019
 2019
 2019
Condensed consolidating statement of cash flow
AngloGold Ashanti

(the “Guarantor”)

 
IOMco

(the “Issuer”)

 
Other subsidiaries
(the 
“Non-Guarantor
Subsidiaries”)

 
Consolidation
adjustments

 Total
Cash flows from operating activities         
Cash generated from (used by) operations(59) (8) 1,165
 4
 1,102
Net movement in intergroup receivables and payables35
 (205) 177
 (7) —
Dividends received from joint ventures—
 77
 —
 —
 77
Taxation refund—
 —
 7
 —
 7
Taxation paid—
 —
 (228) —
 (228)
Net cash inflow (outflow) from operating activities from continuing operations

(24) (136) 1,121
 (3) 958
Net cash inflow (outflow) from operating activities from discontinued operations

58
 —
 31
 —
 89
Net cash inflow (outflow) from operating activities34
 (136) 1,152
 (3) 1,047
Cash flows from investing activities         
Capital expenditure—
 —
 (703) —
 (703)
Interest capitalised and paid—
 —
 —
 (6) (6)
Proceeds from disposal of tangible assets—
 —
 3
 —
 3
Other investments acquired—
 —
 (9) —
 (9)
Proceeds from disposal of other investments—
 —
 3
 —
 3
Investments in associates and joint ventures—
 —
 (5) —
 (5)
Net loans repaid by (advanced to) associates and joint ventures17
 4
 (1) —
 20
Disposal (acquisition) of subsidiaries—
 (8) 8
 —
 —
Increase in investment in subsidiary(16) —
 —
 16
 —
Interest received3
 5
 6
 —
 14
Net cash inflow (outflow) from investing activities from continuing operations

4
 1
 (698) 10
 (683)
Net cash inflow (outflow) from investing activities from discontinued operations

(46) —
 (8) —
 (54)
Cash in subsidiaries sold and transferred to held for sale—
 —
 (6) —
 (6)
Net cash inflow (outflow) from investing activities(42) 1
 (712) 10
 (743)
Cash flows from financing activities         
Increase in share capital—
 —
 16
 (16) —
Proceeds from borrowings130
 —
 38
 —
 168
Repayment of borrowings(124) —
 (41) —
 (165)
Finance costs paid(10) (102) (31) 6
 (137)
Bond settlement premium, RCF and bond transaction costs—
 —
 —
 —
 —
Dividends paid(28) —
 (15) —
 (43)
Intergroup dividends received (paid)44
 242
 (286) —
 —
Net cash inflow (outflow) from financing activities from continuing operations

12
 140
 (319) (10) (177)
Net cash inflow (outflow) from financing activities from discontinued operations

—
 —
 —
 —
 —
Net cash inflow (outflow) from financing activities12
 140
 (319) (10) (177)
Net increase (decrease) in cash and cash equivalents4
 5
 121
 (3) 127
Translation1
 —
 (4) 3
 —
Cash and cash equivalents at beginning of year7
 97
 225
 —
 329
Cash and cash equivalents at end of year12
 102
 342
 —
 456


Figures in millions (US dollars)2018
 2018
 2018
 2018
 2018
Condensed consolidating statement of cash flow (restated)
AngloGold Ashanti
(the “Guarantor”)

 
IOMco
(the “Issuer”)

 
Other subsidiaries
(the 
“Non-Guarantor
Subsidiaries”)

 
Consolidation
adjustments

 Total
Cash flows from operating activities         
Cash generated from (used by) operations(93) (18) 1,034
 8
 931
Net movement in intergroup receivables and payables73
 (215) 130
 12
 —
Dividends received from joint ventures—
 91
 —
 —
 91
Taxation refund—
 —
 5
 —
 5
Taxation paid—
 —
 (171) —
 (171)
Net cash inflow (outflow) from operating activities from continuing operations(20) (142) 998
 20
 856
Net cash inflow (outflow) from operating activities from discontinued operations(27) —
 28
 —
 1
Net cash inflow (outflow) from operating activities(47) (142) 1,026
 20
 857
Cash flows from investing activities         
Capital expenditure—
 —
 (575) —
 (575)
Proceeds from disposal of tangible assets—
 —
 4
 6
 10
Dividends from other investments2
 —
 —
 —
 2
Other investments acquired—
 —
 (13) —
 (13)
Proceeds from disposal of other investments—
 —
 7
 —
 7
Investments in associates and joint ventures—
 —
 (8) —
 (8)
Net loans repaid by (advanced to) associates and joint ventures9
 10
 (2) —
 17
Disposal (acquisition) of subsidiaries—
 (7) 7
 —
 —
Decrease (increase) in cash restricted for use—
 1
 (6) (1) (6)
Interest received—
 1
 4
 —
 5
Net cash inflow (outflow) from investing activities from continuing operations11
 5
 (582) 5
 (561)
Net cash inflow (outflow) from investing activities from discontinued operations207
 —
 19
 —
 226
Net cash inflow (outflow) from investing activities218
 5
 (563) 5
 (335)
Cash flows from financing activities         
Proceeds from borrowings407
 45
 301
 —
 753
Repayment of borrowings(570) (80) (317) —
 (967)
Finance costs paid(12) (102) (16) —
 (130)
Bond settlement premium, RCF and bond transaction costs—
 (10) —
 —
 (10)
Dividends paid(24) —
 (15) —
 (39)
Intergroup dividends received (paid)25
 360
 (386) 1
 —
Net cash inflow (outflow) from financing activities from continuing operations(174) 213
 (433) 1
 (393)
Net cash inflow (outflow) from financing activities from discontinued operations—
 —
 —
 —
 —
Net cash inflow (outflow) from financing activities(174) 213
 (433) 1
 (393)
Net increase (decrease) in cash and cash equivalents(3) 76
 30
 26
 129
Translation(1) —
 22
 (26) (5)
Cash and cash equivalents at beginning of year11
 21
 173
 —
 205
Cash and cash equivalents at end of year7
 97
 225
 —
 329







Figures in millions (US dollars)2017
 2017
 2017
 2017
 2017
Condensed consolidating statement of cash flow (restated)
AngloGold Ashanti
(the “Guarantor”)

 
IOMco
(the “Issuer”)

 
Other subsidiaries
(the 
“Non-Guarantor
Subsidiaries”)

 
Consolidation
adjustments

 Total
Cash flows from operating activities         
Cash generated from (used by) operations(61) (15) 1,140
 3
 1,067
Net movement in intergroup receivables and payables10
 (102) 123
 (31) —
Dividends received from joint ventures—
 6
 —
 —
 6
Taxation refund3
 —
 11
 —
 14
Taxation paid—
 —
 (174) —
 (174)
Net cash inflow (outflow) from operating activities from continuing operations

(48) (111) 1,100
 (28) 913
Net cash inflow (outflow) from operating activities from discontinued operations

56
 —
 28
 —
 84
Net cash inflow (outflow) from operating activities8
 (111) 1,128
 (28) 997
Cash flows from investing activities         
Capital expenditure(1) —
 (674) —
 (675)
Proceeds from disposal of tangible assets—
 —
 3
 —
 3
Other investments acquired—
 (5) (3) —
 (8)
Proceeds from disposal of other investments—
 —
 —
 3
 3
Investments in associates and joint ventures—
 (15) (14) 2
 (27)
Net loans repaid by (advanced to) associates and joint ventures—
 (6) 2
 (2) (6)
Reduction in investment in subsidiary42
 —
 —
 (42) —
Disposal (acquisition) of subsidiaries—
 (2) 2
 —
 —
Decrease (increase) in cash restricted for use—
 —
 (8) —
 (8)
Interest received—
 3
 4
 —
 7
Net cash inflow (outflow) from investing activities from continuing operations

41
 (25) (688) (39) (711)
Net cash inflow (outflow) from investing activities from discontinued operations

(139) —
 (12) —
 (151)
Net cash inflow (outflow) from investing activities(98) (25) (700) (39) (862)
Cash flows from financing activities         
Reduction in share capital—
 (43) —
 43
 —
Proceeds from borrowings539
 155
 121
 —
 815
Repayment of borrowings(428) (170) (169) —
 (767)
Finance costs paid(15) (103) (20) —
 (138)
Dividends paid(39) —
 (19) —
 (58)
Intergroup dividends received (paid)—
 286
 (286) —
 —
Net cash inflow (outflow) from financing activities from continuing operations

57
 125
 (373) 43
 (148)
Net cash inflow (outflow) from financing activities from discontinued operations

—
 —
 —
 —
 —
Net cash inflow (outflow) from financing activities57
 125
 (373) 43
 (148)
Net increase (decrease) in cash and cash equivalents(33) (11) 55
 (24) (13)
Translation—
 —
 (21) 24
 3
Cash and cash equivalents at beginning of year44
 32
 139
 —
 215
Cash and cash equivalents at end of year11
 21
 173
 —
 205




PAGE LEFT BLANK INTENTIONALLY

F - 82

Table of Contents
KIBALI (JERSEY) LIMITED
Consolidated Financial Statements for the Three Years Ended
31 December 2019, 20182021, 2020 and 20172019

F - 83
Table of Contents


CONTENTS








PAGE
PAGE
Report of independent registered public accounting firmF - 10085
(BDO LLP: London, United Kingdom: PCAOB ID # 1295)
Consolidated statements of profit or loss and other comprehensive income for the years ended 31 December 2019, 20182021, 2020 and 20172019F - 10186
Consolidated statements of financial position as at 31 December 2019, 182021, 2020 and 20172019F - 10287
Consolidated statements of changes in equity for the years ended 31 December 2019, 20182021, 2020 and 20172019F - 10388
Consolidated statements of cash flows for the years ended 31 December 2019, 20182021, 2020 and 20172019F - 104, 10589
Statement of directors responsibilitiesF - 10690
Notes to the consolidated financial statementsF - 10791



F - 84
Table of Contents
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM




Shareholders and Board of Directors
Kibali (Jersey) Limited,
Jersey, Channel Islands



Opinion on the Consolidated Financial Statements


We have audited the accompanying consolidated statements of financial position of Kibali (Jersey) Limited (the Company)“Company”) and subsidiaries as of December 31, December2021, 2020 and 2019, 2018 and 2017, the related consolidated statements of profit or loss and other comprehensive income, changes in equity, and cash flows for each of the three years in the period ended December 31, December 2019,2021, and the related notesNotes (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at December 31, 2021, 2020 and subsidiaries at 31 December 2019, 2018 and 2017, and the results of theirits operations and theirits cash flows for each of the three years in the period ended December 31, December 2019,2021, in conformity with International Financial Reporting Standards as issued by the International Accounting Standards Board.


Basis for Opinion


These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s consolidated financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB)((“PCAOB)”) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.


We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.


Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion.







/s/ BDO LLP



BDO LLP


We have served as the Company's auditor since 2013.


London, United Kingdom
2729 March 20202022





F - 85
Table of Contents
CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE YEARS ENDED 31 DECEMBER 2019, 20182021, 2020 and 20172019
31 Dec31 Dec31 Dec
Note202120202019
US$’000US$’000US$’000
REVENUE
Gold sales41,469,221 1,440,328 1,122,940 
Other income51,208 2,204 170 
TOTAL INCOME1,470,429 1,442,532 1,123,110 
COSTS AND EXPENSES
Mining and processing costs6688,086 670,138 688,796 
Royalties68,704 67,547 52,792 
Exploration and corporate expenditure75,848 6,274 13,686 
Other expenses533,246 37,477 6,021 
TOTAL COSTS795,884 781,436 761,295 
Finance income85,618 6,912 4,370 
Finance costs8(5,913)(6,460)(3,973)
Finance income/(costs) – net(295)452 397 
Share of profits of equity accounted joint venture25103 239 34 
PROFIT BEFORE INCOME TAX674,353 661,787 362,246 
Income tax expense9(180,715)(157,090)(61,934)
PROFIT FOR THE YEAR493,638 504,697 300,312 
OTHER COMPREHENSIVE INCOME/(EXPENSE)
Gain/(Loss) on investment in marketable securities(2)6 (5)
TOTAL COMPREHENSIVE INCOME493,636 504,703 300,307 
PROFIT FOR THE YEAR
Attributable to:
Owners of the parent461,271 472,533 288,401 
Non-controlling interest32,367 32,164 11,911 
493,638 504,697 300,312 
TOTAL COMPREHENSIVE INCOME
Attributable to:
Owners of the parent461,269 472,539 288,396 
Non-controlling interest32,367 32,164 11,911 
493,636 504,703 300,307 
  2019
 2018
 2017
 Note$’000
 $’000
 $’000
REVENUE      
Gold sales41,122,940
 1,041,035
 754,852
Other income5170
 56,838
 146
TOTAL INCOME 1,123,110
 1,097,873
 754,998
COSTS AND EXPENSES      
Mining and processing costs6688,796
 772,259
 698,980
Royalties 52,792
 45,249
 31,913
Exploration and corporate expenditure713,686
 6,154
 8,205
Other expenses56,021
 45,288
 55,031
TOTAL COSTS 761,295
 868,950
 794,129
       
Finance income84,370
 3,380
 4,147
Finance costs8(3,973) (4,465) (5,478)
Finance income/costs - net 397
 (1,085) (1,331)
Share of profits of equity accounted joint venture2634
 132
 113
PROFIT/(LOSS) BEFORE INCOME TAX 362,246
 227,970
 (40,349)
Income tax (expense) / benefit9(61,934) (15,972) 54,333
PROFIT FOR THE YEAR 300,312
 211,998
 13,984
OTHER COMPREHENSIVE INCOME/(EXPENSE)      
(Loss) / gain on investment in marketable securities (5) (17) (33)
TOTAL COMPREHENSIVE INCOME300,307
 211,981
 13,951
PROFIT FOR THE YEAR      
Attributable to:      
Owners of the parent 288,401
 207,750
 26,341
Non-controlling interest 11,911
 4,248
 (12,357)
 300,312
 211,998
 13,984
TOTAL COMPREHENSIVE INCOME     
Attributable to:      
Owners of the parent 288,396
 207,733
 26,308
Non-controlling interest 11,911
 4,248
 (12,357)
  300,307
 211,981
 13,951




















The accompanying notes on pages F - 107 to F - 149Notes form part of these consolidated financial statements



F - 86
Table of Contents
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
AS AT 31 DECEMBER 2019, 20182021, 2020 and 20172019

31 Dec31 Dec31 Dec
Note202120202019
US$’000US$’000US$’000
NON-CURRENT ASSETS
Property, plant and equipment101,811,291 1,846,746 1,892,847 
Mineral properties11334,881 366,053 404,432 
Long term ore stockpiles14— 36,875 52,685 
Investment in associate4 
Investment in equity accounted joint venture25107 244 71 
Other investments in joint venture2521,669 23,096 21,067 
Total investment in joint venture2521,776 23,340 21,138 
Trade and other receivables13192,507 185,768 140,987 
Deferred tax asset12— — 9,647 
TOTAL NON-CURRENT ASSETS2,360,459 2,458,782 2,521,736 
CURRENT ASSETS
Inventories and ore stockpiles14107,951 90,487 95,003 
Trade and other receivables1353,915 29,699 89,047 
Investment in marketable securities7 9 3 
Cash and cash equivalents221,115,359 944,233 452,692 
TOTAL CURRENT ASSETS1,277,232 1,064,428 636,745 
TOTAL ASSETS3,637,691 3,523,210 3,158,481 
EQUITY AND LIABILITIES
Equity
Share capital155 5 5 
Share premium152,523,612 2,523,612 2,523,612 
Retained earnings655,276 655,005 462,972 
Other reserve(38)(36)(42)
Equity attributable to owners of the parent3,178,855 3,178,586 2,986,547 
Non-controlling interest1668,110 55,743 23,579 
TOTAL EQUITY3,246,965 3,234,329 3,010,126 
NON-CURRENT LIABILITIES
Loans and borrowings171,839 — 1,507 
Lease liabilities1741,839 50,457 43,821 
Deferred tax liability12196,654 89,609 — 
Provision for rehabilitation1829,026 28,364 25,516 
TOTAL NON-CURRENT LIABILITIES269,358 168,430 70,844 
CURRENT LIABILITIES
Lease liabilities1713,909 14,674 11,105 
Trade and other payables1997,109 66,881 45,460 
Provision for rehabilitation18600 803 1,024 
Current tax payable9,750 38,093 19,922 
TOTAL CURRENT LIABILITIES121,368 120,451 77,511 
TOTAL EQUITY AND LIABILITIES3,637,691 3,523,210 3,158,481 
  2019
 2018
 2017
 Note$’000
 $’000
 $’000
NON-CURRENT ASSETS      
Property, plant and equipment101,892,847
 1,988,533
 2,107,718
Mineral properties11404,432
 454,479
 519,117
Long term ore stockpiles1452,685
 28,510
 12,779
Investment in equity accounted joint venture26343
 387
 255
Other investments in joint venture2620,795
 21,479
 25,577
Total investment in joint venture2621,138
 21,866
 25,832
Trade and other receivables13140,987
 137,852
 125,294
Deferred tax asset129,647
 27,265
 43,237
TOTAL NON-CURRENT ASSETS 2,521,736
 2,658,505
 2,833,977
CURRENT ASSETS      
Inventories and ore stockpiles1495,003
 93,036
 73,231
Trade and other receivables1389,047
 112,982
 92,991
Investment in marketable securities233
 9
 26
Cash and cash equivalents 452,692
 123,931
 3,288
TOTAL CURRENT ASSETS 636,745
 329,958
 169,536
TOTAL ASSETS 3,158,481
 2,988,463
 3,003,513
EQUITY AND LIABILITIES      
EQUITY      
Share capital155
 5
 5
Share premium152,523,612
 2,523,612
 2,523,612
Retained earnings 462,972
 324,571
 293,821
Other reserve (42) (37) (20)
Equity attributable to owners of the parent 2,986,547
 2,848,151
 2,817,418
Non-controlling interest1623,579
 11,668
 7,420
TOTAL EQUITY 3,010,126
 2,859,819
 2,824,838
NON-CURRENT LIABILITIES      
Loans and borrowings (1)
171,507
 1,526
 860
Lease liabilities1743,821
 27,465
 40,350
Provision for rehabilitation1825,516
 23,640
 23,244
TOTAL NON-CURRENT LIABILITIES 70,844
 52,631
 64,454
CURRENT LIABILITIES      
Loans and borrowings (1)
17—
 —
 —
Lease liabilities1711,105
 11,425
 7,596
Trade and other payables1946,484
 59,770
 104,633
Current tax payable 19,922
 4,818
 1,992
TOTAL CURRENT LIABILITIES 77,511
 76,013
 114,221
TOTAL EQUITY AND LIABILITIES 3,158,481
 2,988,463
 3,003,513


(1)
Comparatives for loans and borrowings that relate to the KAS lease have been reclassified to lease liabilities to allow for consistency.


The consolidated financial statements were approved by the Board of Directors on 2729 March 20202022 and signed on its behalf by:
Graham Shuttleworth
Director

/s/ Graham Shuttleworth

Graham Shuttleworth
Director
The accompanying notes on pages F - 107 to F - 149Notes form part of these consolidated financial statements



F - 87
Table of Contents
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
AS ATFOR THE YEARS ENDED 31 DECEMBER 2019, 20182021, 2020 and 20172019
Total equity
attributableNon-
US$’000ShareShareRetainedOtherto owners ofcontrollingTotal
capitalpremiumearningsreservesthe parentinterestequity
Balance at 1 January 201952,523,612324,571(37)2,848,15111,6682,859,819
Fair value movement on investment in marketable securities———(5)(5)—(5)
Total other comprehensive expense— — — (5)(5)—(5)
Net profit for the year——288,401—288,40111,911300,312
Total comprehensive income/(expense)——288,401(5)288,39611,911300,307
Dividend paid (1)
——(150,000)—(150,000)—(150,000)
Balance at 31 December 201952,523,612462,972(42)2,986,54723,5793,010,126
Balance at 1 January 202052,523,612462,972(42)2,986,54723,5793,010,126
Fair value movement on investment in marketable securities———66—6
Total other comprehensive income—— —66—6
Net profit for the year——472,533—472,53332,164504,697
Total comprehensive income/(expense)——472,5336472,53932,164504,703
Dividend paid (1)
——(280,500)—(280,500)—(280,500)
Balance at 31 December 202052,523,612655,005(36)3,178,58655,7433,234,329
Balance at 1 January 202152,523,612655,005(36)3,178,58655,7433,234,329
Fair value movement on investment in marketable securities———(2)(2)—(2)
Total other comprehensive expense—— —(2)(2)—(2)
Net profit for the year——461,271—461,27132,367493,638
Total comprehensive income——461,271(2)461,26932,367493,636
Dividend paid (1)
——(461,000)—(461,000)(20,000)(481,000)
Balance at 31 December 202152,523,612655,276(38)3,178,85568,1103,246,965
$’000
Share
Capital

 
Share
Premium

 
Retained
earnings

 
Other
Reserves

 
Total equity
attributable
to owners of
the parent

 
Non-
Controlling
Interest

 
Total
Equity

Balance at 1 January 20175
 2,493,612
 267,480
 13
 2,761,110
 19,777
 2,780,887
Fair value movement on investment in marketable securities—
 —
 —
 (33) (33) —
 (33)
Total other comprehensive income—
 —
 —
 (33) (33) —
 (33)
Net profit/(loss) for the year—
 —
 26,341
 —
 26,341
 (12,357) 13,984
Total comprehensive
income/(expense)
—
 —
 26,341
 (33) 26,308
 (12,357) 13,951
Shares issued—
 30,000
 —
 —
 30,000
 —
 30,000
Balance at 31 December 20175
 2,523,612
 293,821
 (20) 2,817,418
 7,420
 2,824,838
Balance at 1 January 20185
 2,523,612
 293,821
 (20) 2,817,418
 7,420
 2,824,838
Fair value movement on investment in marketable securities—
 —
 —
 (17) (17) —
 (17)
Total other comprehensive expense—
 —
 —
 (17) (17) —
 (17)
Net profit for the year—
 —
 207,750
 —
 207,750
 4,248
 211,998
Total comprehensive
income/(expense)
—
 —
 207,750
 (17) 207,733
 4,248
 211,981
Dividend(1)
—
 —
 (177,000) —
 (177,000) —
 (177,000)
Balance at 31 December 20185
 2,523,612
 324,571
 (37) 2,848,151
 11,668
 2,859,819
Balance at 1 January 20195
 2,523,612
 324,571
 (37) 2,848,151
 11,668
 2,859,819
Fair value movement on investment in marketable securities—
 —
 —
 (5) (5) —
 (5)
Total other comprehensive expense—
 —
 —
 (5) (5) —
 (5)
Net profit for the year—
 —
 288,401
 —
 288,401
 11,911
 300,312
Total comprehensive
income/(expense)
—
 —
 288,401
 (5) 288,396
 11,911
 300,307
Dividend(1)
—
 —
 (150,000) —
 (150,000) —
 (150,000)
Balance at 31 December 20195
 2,523,612
 462,972
 (42) 2,986,547
 23,579
 3,010,126



SHARE CAPITAL
The share capital comprises the issued ordinary shares of the Company at par.

SHARE PREMIUM
The share premium comprises the excess value recognised from the issue of ordinary shares at par.

RETAINED EARNINGS
Retained earnings comprises the Group’s cumulative accounting profits and losses since inception less dividends.

OTHER RESERVES
Other reserves comprises the Group’s cumulative fair value movement on the investment in marketable securities since inception in Kilo Goldmines Limited less amounts reclassified to profit and loss.

NON-CONTROLLING INTEREST
TheThe non-controlling interest represents the total carrying value of the 10% interest Société Minière de Kilo-MotoKilo- Moto SA UNISARL (SOKIMO) has in Kibali Goldmines SA (Kibali)("Kibali"), which is a subsidiary of Kibali (Jersey) Limited.






The accompanying notes on pages F - 107 to F - 149Notes form part of these consolidated financial statements




(1)This balance relates to dividends declared and fully paid up to Shareholders in the period.

F - 88

Table of Contents
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED 31 DECEMBER 2019, 20182021, 2020 and 20172019


31 Dec31 Dec31 Dec
202120202019

US$’000US$’000US$’000
Cash Flows From Operating Activities

Cash generated by operations23944,244 956,870615,431
Interest received3,327 4,1582,683
Finance cost paid(1)(299)(715)
Dividends received from equity accounted joint venture495 65 156
Income tax paid(84,575)(32,121)(6,193)
Withholding tax paid(18,000)— —
Net cash flows generated by operating activities

845,490928,673611,362

Cash Flows Related to Investing Activities
Additions of property, plant and equipment     (168,762)(132,229)(120,202)
Drawdowns, interest and capital repayments from equity accounted joint venture(37)(468)1,900
Net cash flows used in investing activities(168,799)(132,697)(118,302)

Cash Flows Relating to Financing Activities
Payment of dividends(481,000)(280,500)(150,000)
Principal paid on lease liabilities(20,530)(20,753)(11,110)
Interest paid on lease liabilities(4,035)(3,182)(3,153)
Net cash outflows through financing activities(505,565)(304,435)(164,263)
Net increase in cash and cash equivalents171,126491,541328,797
Cash and cash equivalents at the beginning of the year


944,233452,692123,895
Cash and cash equivalents at the end of the year

1,115,359944,233452,692
  2019
 2018
 2017
 Note$’000
 $’000
 $’000
CASH FLOWS FROM OPERATING ACTIVITIES      
Cash generated by operations24615,431
 473,208
 225,429
Interest received 2,683
 1,814
 2,701
Finance cost paid (715) (515) (1,018)
Dividends received from equity accounted joint venture26156
 —
 —
Income tax paid (6,193) —
 (1,796)
Net cash flows generated by operating activities 611,362
 474,507
 225,316
CASH FLOWS RELATED TO INVESTING ACTIVITIES      
Additions of property, plant and equipment (120,202) (155,298) (256,208)
Repayment of loan from equity accounted joint venture 1,900
 4,098
 3,170
Net cash outflows used in investing activities (118,302) (151,200) (253,038)
CASH FLOWS RELATING TO FINANCING ACTIVITIES      
Proceeds from issue of ordinary shares15—
 —
 30,000
Payment of dividends (150,000) (177,000) (8,000)
Decrease in loans and borrowings (1)
 —
 —
 —
Principle paid on lease liabilities (11,110) (9,579) (7,228)
Interest paid on lease liabilities (3,153) (3,359) (3,838)
Net cash inflows/(outflows) provided by financing activities (164,263) (189,938)
10,934
Net increase/(decrease) in cash and cash equivalents 328,797
 133,369
 (16,788)
Cash and cash equivalents at the beginning of the year 123,895
 (9,474) 7,314
Cash and cash equivalents at the end of the year 452,692
 123,895
 (9,474)
       
(1)
Comparatives for loans and borrowings that relate to the KAS lease have been reclassified to lease liabilities to allow for consistency.


CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)
FOR THE YEARS ENDED 31 DECEMBER 2019, 2018 and 2017

Cash and cash equivalents include the following for the purpose of the consolidated statement of cash flow:
       
Cash and cash equivalents 452,692
 123,931
 3,288
Bank overdrafts19—
 (36) (12,762)
Cash and cash equivalents 452,692
 123,895
 (9,474)

Bank overdrafts are classified as cashCash and cash equivalents as they form an integral partinclude the following for the purpose of the consolidated statement of cash management and fluctuate from positive to overdrawn.flow:

Cash and cash equivalents1,115,359 944,233 452,692 
Bank overdrafts19(1,656)— — 
Cash and cash equivalents1,113,703 944,233 452,692 























































The accompanying notes on pages F - 107 to F - 149Notes form part of these consolidated financial statements







1.STATEMENT OF DIRECTORS' RESPONSIBILITIES



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1. STATEMENT OF DIRECTORS’ RESPONSIBILITIES

The Directors are responsible for preparing these special purpose consolidated financial statements for Kibali (Jersey) Limited and its subsidiaries as at December 31, 2019, 20182021, 2020 and 20172019 and for each of the three years in the period ended December 31, 2019,2021, in conformity with lnternational Financial Reporting Standards as issued by the lnternational Accounting Standards Board. The Directors are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the group,Group, and for identifying and ensuring that the groupGroup complies with the law and regulations applicable to their activities. They are also responsible for safeguarding the assets of the groupGroup and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The Directors confirm that suitable accounting policies have been used and applied consistently for the periods presented. They also confirm that reasonable and prudent judgments and estimates have been made in preparing these special purposes consolidated financial statements and that applicable accounting standards have been followed.





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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS


2. SIGNIFICANT ACCOUNTING POLICIES

The principal accounting policies applied in the preparation of these consolidated financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

BASIS OF PREPARATION

The consolidated financial statements of Kibali (Jersey) Limited (the Company) and its subsidiaries and joint venture (the Group) have been prepared in accordance with International Financial Reporting Standards and Interpretations (collectively (IFRS)) issued by the International Accounting Standards Board (IASB).


The consolidated financial statements have been prepared under the historical cost convention, as modified by the revaluation of investment in marketable securities classified as fair value through other comprehensive income. The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group’s accounting policies. The areas involving a high degree of judgement or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements are disclosed in noteNote 3.


On March 11, 2020, the Covid-19 outbreak was declared a pandemic by the World Health Organization. The outbreak and efforts to contain the pandemic have had a significant effect on commodity prices and capital markets. We have adopted certain operating procedures to respond to Covid-19, and to date, our operations have not been significantly impacted by the pandemic.

In assessing the Group’s going concern status, the Directors have taken into account the impact of the current pandemic together with potential impacts associated with the current conflict in Ukraine and associated sanctions on Russia on its on-going operations, as well as the following factors and assumptions: the current cash position; the latest mine plans, the Group’s capital expenditure and the short-term gold price. In addition, the Directors have considered a range of scenarios around the various potential outcomes of the pandemic, including the impactRefer to Note 28 for further details on global supply chain on its operations and cash flows.management’s assessment. After making appropriate enquiries and considering the uncertainties described above, the directors are satisfied, at the time of approving the financial statements, that it is appropriate to adopt the going concern basis in preparing the financial statements. The directors have no reason to believe that the Group will not be a going concern for at least the next 12 months from the date of approval of these financial statements based on forecasts and available cash resources.


NEW STANDARDS AND INTERPRETATIONS APPLIED

The IASB has issued the following new standards, amendments to published standards and interpretations to existing standards with effective dates on or prior to 1 January 20192021 which have been adopted by the Group for the first time this year.year, and had an immaterial or no impact.



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Effective period
commencing on or after
Amendments to Existing Standards
New standards which impacted the GroupIFRS 4, 7,9,16
IAS 39
IFRS 16Leases1 Jan 2019
IFRIC 23IFRIC 23 Uncertainty over Income Tax Treatments1 Jan 2019
Other standards which had no material impact o the Group
IFRS 9
Amendments to IFRS 9: Prepayment Features with Negative Compensation

9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 Interest Rate Benchmark Reform – Phase 2		1 Jan 20192021
IAS 28
Amendments to IAS 28: Long-term interests in Associates and Joint Ventures

1 Jan 2019
IAS 19IFRS 4Amendments to IAS 19: Plan Amendment, Curtailment or SettlementIFRS 4 Insurance Contracts – deferral of IFRS 91 Jan 20192021
IFRS 16Amendments to IFRS 16 - Covid-19-Related Rent Concessions beyond 30 June 20211 Apr 2021

2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

NEW STANDARDS AND INTERPRETATIONS APPLIED (CONTINUED)

The Group adopted IFRS 16 and IFRIC 23 with a transition date of 1 January 2019. IFRS 16 Leases Effective 1 January 2019, has replaced IAS 17 Leases and IFRIC 4 Determining whether an Arrangement Contains a Lease. IFRS 16 provides a single lessee accounting model, requiring the recognition of assets and liabilities for all leases, together with options to exclude leases where the lease term is 12 months or less, or where the underlying asset is of low value. IFRS 16 substantially carries forward the lessor accounting in IAS 17, with the distinction between operating leases and finance leases being retained. The Group does not have significant leasing activities acting as a lessor.

Transition Method and Practical Expedients Utilised
It further provides for certain optional practical expedients, including those related to the initial adoption of the standard. The Group applied the following practical expedients when applying IFRS 16 to leases previously classified as operating leases under IAS 17:
(a)Reliance on previous assessments on whether leases are onerous as opposed to preparing an impairment review under IAS 36 as at the date of initial application; and
(b)Applied the exemption not to recognise right-of-use assets and liabilities for leases with less than 12 months of lease term remaining as of the date of initial application.
(c)Used hindsight when determining the lease term for contracts containing options to extend or terminate the lease.

As a lessee, the Group previously classified leases as operating or finance leases based on its assessment of whether the lease transferred substantially all of the risks and rewards of ownership. Under IFRS 16, the Group recognizes right-of-use assets and lease liabilities for most leases. However, the Group has elected not to recognise right-of-use assets and lease liabilities for some leases of low value assets based on the value of the underlying asset when new or for short-term leases with a lease term of 12 months or less. Please refer to note 20.

IFRIC 23 provides guidance on the accounting for current and deferred tax liabilities and assets in
circumstances in which there is uncertainty over income tax treatments. The Interpretation requires:

The Group to determine whether uncertain tax treatments should be considered separately, or together as a group, based on which approach provides better predictions of the resolution;
The Group to determine if it is probable that the tax authorities will accept the uncertain tax treatment; and
If it is not probable that the uncertain tax treatment will be accepted, measure the tax uncertainty based on the most likely amount or expected value, depending on whichever method better predicts the resolution of the uncertainty. This measurement is required to be based on the assumption that each of the tax authorities will examine amounts they have a right to examine and have full knowledge of all related information when making those examinations. A material impact is not expected from the application of the interpretation. The adoption of IFRIC 23 did not result in any material change to the Group’s tax position from the beginning of the earliest period presented.

2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

NEW STANDARDS AND INTERPRETATIONS APPLIED (CONTINUED)


Certain new standards, amendments and interpretations to existing standards have been published and are relevant to the Group’s activities and are mandatory for the Group’s accounting periods beginning 1 January 2020,2022, or later periods and which the Group has decided not to early adopt. These include the following, and are not expected to have any material impact:


Effective
period
commencing
on or after
IFRS 17Insurance contracts including amendments to IFRS 1701-Jan-23
IFRS 3Amendments to IFRS 3 Business Combinations - Definition of a Business1 Jan 2020
IAS 1 and IAS 8Amendments to IAS 1 and IAS 8: Definition of Material1 Jan 2020
IFRS 9, IAS 37 and IFRS 7

Amendments to IFRS 9, IAS 37 and IFRS 7: Interest Rate Benchmark Reform

1 Jan 2020
IAS 1
Amendments to IAS 1: Classification of Liabilities as Current or Non-current

1 Jan 202201-Jan-23
IFRS 3, IAS 16 and IAS37Amendments to IFRS 3: Business Combinations, IAS 16: Property, Plant and Equipment and IAS 37: Provisions, Contingency Liabilities and Contingency Assets01-Jan-22
IFRS 1, IFRS 9, IFRS 16 and IAS 41Annual Improvements to IFRS (2018-2020 Cycle)01-Jan-23
IAS 8Amendments to IAS 8 - Definition of Accounting Estimates01-Jan-23
IAS 1Amendments to IAS 1 and IFRS Practice Statement 2 - Disclosure of Accounting policies01-Jan-23
IAS 12Amendments to IAS 12 - Deferred Tax related to Assets and Liabilities arising from a Single Transaction01-Jan-23
IFRS 17Amendment to IFRS 17 - Initial Application of IFRS 17 and IFRS 9 - Comparative Information01-Jan-23



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2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

CONSOLIDATION

The consolidated financial information includes the financial statements of the Company, its subsidiaries and the Company’s equity accounted joint ventures using uniform accounting policies for similar transactions and other events in similar circumstances.



SUBSIDIARIES
Subsidiaries are entities over which the Group has power, exposure, or rights, to variable returns from its involvement and the ability to use its power over the investee to affect the amount of the Group's returns; generally accompanying an interest of more than one-half of the voting rights.


Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are deconsolidated from the date that control ceases. The purchase method of accounting is used to account for the acquisition of subsidiaries by the Group. The cost of an acquisition is measured at the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange. Acquisition costs are expensed. Identifiable assets acquired (including mineral property interests or other identifiable intangible assets) and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date, irrespective of the extent of any non-controlling interest. The excess of the cost of acquisition over the fair value of the Group’s share of the identifiable net assets acquired is recorded as goodwill. If the cost of acquisition is less than the fair value of the net assets of the subsidiary acquired, the difference is recognised directly in the statement of comprehensive income.


Intercompany transactions, balances and unrealised gains on transactions between group companies are eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Group.



2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

NON-CONTROLLING INTERESTS

The Group initially recognised any non-controlling interest in the acquiree at the non-controlling interest's proportionate share of the acquiree's net assets. The groupGroup has not elected to take the option to use fair value in acquisitions completed to date.


The total comprehensive income of non-wholly owned subsidiaries is attributed to owners of the parent and to the non-controlling interests in proportion to their relative ownership interests.


JOINT VENTURES

The Group holds interests in one joint venture. In a joint venture the parties that have joint control of the arrangement (the joint venturer) have a right to the net assets of the arrangement. This right is accounted for in the consolidated financial statements using the equity method. Joint control is considered to exist when there is contractual joint control; control being the power to govern the financial and operating policies of an entity so as to obtain benefits from the activities and the ability to use its power over the investee to affect the amounts of the Group’s returns by the joint venturers.


Acquisitions
Except for initial recognition under IFRS 11 transition rules, further investments in additional joint ventures are initially recognised at cost. The cost of an acquisition is measured at the fair value of the assets given, equity instruments issued or liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the acquisition. Goodwill on associated companies and joint ventures represents the excess of the cost of acquisition of the associate or joint venture over the Group’s share
of the fair value of the identifiable net assets of the associate or joint venture and is included in the carrying amount of the investment.

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2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

JOINT VENTURES (CONTINUED)

Joint ventures are accounted for using the equity method of accounting. In applying the equity method of accounting, the Group’s share of its joint ventures’ post-acquisition profits or losses are recognised in profit or loss and its share of post-acquisition other comprehensive income is recognised in other comprehensive income. These post-acquisition movements and distributions received from the joint venture companies are adjusted against the carrying amount of the investments. When the Group’s share of losses in a joint venture Company equals or exceeds its interest in the joint venture Company, including any other unsecured non-current receivables, the Group does not recognise further losses, unless it has obligations to make or has made payments on behalf of the joint venture Company.


Unrealised gains on transactions between the Group and its joint venture companies are eliminated to the extent of the Group’s interest in the joint venture companies. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Trading receivables and payables with joint ventures are classified within trade and other receivables and payables. The accounting policies of joint venture companies have been changed where necessary to ensure consistency with the accounting policies adopted by the Group.


Dividends received are classified as operating cash flows in the consolidated cash flow statement.


The carrying value of the investment in joint venture is compared to the recoverable amounts whenever circumstances indicate that the net book value may not be recoverable. An impairment is recognised in the profit or loss to the extent that the carrying value exceeds the recoverable amount.

2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

JOINT VENTURES (CONTINUED)


Impairment provisions for loans to joint ventures classified as ‘other investments’ in joint venture are recognised based on a forward looking expected credit loss model. The methodology used to determine the amount of the provision is based on whether there has been a significant increase in credit risk since initial recognition of the financial asset. For those where the credit risk has not increased significantly since initial recognition of the financial asset, twelve month expected credit losses along with gross interest income are recognised. For those for which credit risk has increased significantly, lifetime expected credit losses along with the gross interest income are recognised. For those that are determined to be credit impaired, lifetime expected credit losses along with interest income on a net basis are recognised.


SEGMENTAL REPORTING

An operating segment is a group of assets and operations engaged in performing mining or advanced exploration that are subject to risks and returns that are different from those of other segments. Other parts of the business are aggregated and treated as part of a ‘corporate and exploration’ segment. The Group provides segmental information using the same categories of information which the Group’s chief operating decision-maker utilises. The Group’s chief operating decision maker is considered by management to be the board of directors.


The Group has only one operating segment, being that of gold mining. Segment analysis is based on the mining operations and exploration projects that have a significant amount of capitalised expenditure or other fixed assets.


FOREIGN CURRENCY TRANSLATION

Functional and presentation currency
Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary economic environment in which the entity operates (the functional currency). The consolidated financial statements are presented in US dollars, which is also the functional currency of the Company and its significant subsidiaries and joint ventures.

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2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

FOREIGN CURRENCY TRANSLATION

Transactions and balances
Foreign currency transactions are translated into the relevant functional currency using the exchange rates prevailing at the date of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the statement of comprehensive income in other income and other expenses.


INTANGIBLE ASSETS

Mineral properties
Mineral properties acquired are recognised at fair value at the acquisition date. Mineral properties are recognised at fair value if acquired as part of a business combination, whereasotherwise they are recognised atcost if acquired as an asset. Mineral properties are tested annually for impairment on the same basis that property, plant and equipment are when there is an indication of impairment. Mineral properties are amortised on units of production basis from the point at which the mine commences production (refer to ‘depreciation and amortisation’ policy below).


2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)


PROPERTY, PLANT AND EQUIPMENT

Long-lived assets and mine development costs
Long-lived assets including development costs and mine plant facilities (such as metallurgical plant, tailings and raw water dams, power plant and mine infrastructure) are initially recorded at cost. Development of ore bodies includes the development cost of shaft systems and waste rock removal that allows access to reserves that are economically recoverable in the future. Cost associated with underground development are capitalised when the works provide access to the ore body, whereas costs associated with ore extraction from operating ore body sections are treated as operating costs. Where relevant the estimated cost of dismantling the asset and remediating the site is included in the cost of property, plant and equipment, subsequently they are measured at cost less accumulated amortisation and impairment.


Development costs consist primarily of direct expenditure incurred to establish or expand productive capacity.


Costs are capitalised during the construction of a new mine until commercial levels of production are achieved (refer to ‛commercial production’ below), after which the relevant costs are amortised. Costs are capitalised provided that the project is considered to be commercially, technically and economically viable. Such viability is deemed to be achieved when the Group is confident that the project will provide a satisfactory return relative to its perceived risks and is sufficiently certain of economic production. Costs which are necessarily incurred while commissioning new assets, in the period before they are capable of operating in the manner intended by management, are capitalised under ‘Long-lived assets and mine development costs’.


Development costs incurred after the commencement of production are capitalised to the extent they are expected to give rise to a future economic benefit.


Commercial production
When a mine construction project is substantially complete and ready for its intended use the asset moves into the production stage, the capitalisation of certain mine construction costs ceases and subsequent costs are either regarded as inventory or expensed, except for capitalisable costs related to subsequent mining asset additions or improvements, underground mine development or ore reserve development.


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2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

PROPERTY, PLANT AND EQUIPMENT (CONTINUED)

The commissioning of an underground mine typically occurs in phases, with sections brought into production whilst deeper levels remain under construction. The shared infrastructures, such as declines of shafts, are assessed to determine whether they contribute to the production areas. Where they contribute to production, the attributable costs are transferred to production assets and start to be

depreciated. The costs transferred comprise costs directly attributable to producing zones or, where applicable, estimates of the portion of shared infrastructure that are attributed to the producing zones.


Development expenditure approval
Development activities commence after project sanctioning by the appropriate level of management. Judgement is applied by management in determining when a project has reached a stage at which economically recoverable reserves exists such that development may be sanctioned. In exercising this judgement, management is required to make certain estimates and assumptions similar to those described below for capitalised exploration and evaluation expenditure. Any such estimates and assumptions may change as new information becomes available.

2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

PROPERTY, PLANT AND EQUIPMENT (CONTNUED)


Stripping costs
In surface mining operations, the Group may find it necessary to remove waste materials to gain access to mineral ore deposits prior to and after production commences. This waste removal activity is known as ‘stripping’. Prior to production commencing from a pit, stripping costs are measured internally and capitalised until the point where the overburden has been removed and access to the ore commences. Subsequent to production, waste stripping continues, either as part of ore extraction as a run of mine activity or due tostrategic decisions such as pit push-back campaigns. There are two benefits accruing to the Group from stripping activity during the production phase: usable ore that can be used to produce inventory and improved access to further quantities of material that will be mined in future periods. Economic ore extracted during this period and subsequently is accounted for as inventory. The production stripping costs relating to improved access to further quantities in future periods are capitalised as a stripping activity asset, if and only if, all of the following are met:
a.It is probable that the future economic benefit (improved access to the ore body) associated with the stripping activity will flow to the Group;
b.The Group can identify the component of the ore body for which access has been improved; and
c.The costs relating to the stripping activity associated with that component or components can be measured reliably.


In determining the relevant component of the ore body for which access is improved, the Group componentises its mine into geographically distinct ore body sections or phases to which the stripping activities being undertaken within that component are allocated. Such phases are determined based on assessment of factors such as geology and mine planning.


Once determined that any portion of the production stripping costs should be capitalised, the Group typically uses the average stripping ratio of the component or phase of the mine to which the production stripping cost related to determine the amount of the production stripping costs that should be capitalised, unless the direct costs of stripping activity can be separately identified in which case such costs are capitalised. The Group depreciates the deferred costs capitalised as stripping assets on a unit of production method, with reference to the ex-pit ore production from the relevant ore body component or phase.


Short-lived assets
Short-lived assets including non-mining assets are shown at cost less accumulated depreciation and impairment.


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2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

PROPERTY, PLANT AND EQUIPMENT (CONTINUED)

Depreciation and amortisation
Long-lived assets include mining properties, such as metallurgical plant, tailings and raw water dams, power plant and mine infrastructure, as well as mine development costs and are depreciated on a unit of production basis. In previous years, the tonnes milled unit of production approach was usedbasis by using ounces produced to calculate depreciation, however in the current year an ounces produced method was adopted. The change in method used from tonnes milled to ounces produced, represented a change in estimate during the financial year. The directors believe the ounces produced method gives the best indication of plant and infrastructure usage.depreciation.


2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

PROPERTY, PLANT AND EQUIPMENT (CONTNUED)


Depreciation and amortizationamortisation are charged over the life of the mine (or over the remaining useful life of the asset, if shorter) based on estimated contained ounces in proven and probable reserves to be extracted usingand the relevant asset, to reduceportion of resources considered probable of economic extraction based on the cost to estimated residual values.current LOM plan that benefit from the development and are considered probable of economic extraction. No future capital expenditure is included in the depreciable value. Proven and probable ore reserves and the portion of resources reflect estimated quantities of economically recoverable reserves and resources, which can be recovered in the future from known mineral deposits. Life of mine contained reserves and resources are used in the contained ounces units of production depreciation calculation. Any changes to the expected life of the mine (or asset) are applied prospectively in calculating depreciation and amortisation charges.

Depreciation of construction and development costs commences when commercial production is achieved, as detailed above. Underground development costs that are attributable to the commissioned sections of an underground mine are depreciated from the date the development provides access to operational areas and ore extraction begins from those areas. Other assets under construction, such as plant improvement projects, are depreciated from the date they are commissioned, based on assessment by the Group’s engineers.


Short-lived assets which include motor vehicles, office equipment and computer equipment are depreciated over estimated useful lives of between two to five years but limited to the remaining mine life. Residual values and useful lives are reviewed, and adjusted if appropriate, at each statement of financial position date.

Changes to the estimated residual values or useful lives are accounted for prospectively. Depreciation starts when the assets are ready and available for use.


Impairment
The carrying amount of the property, plant and equipment and investments in joint ventures of the groupGroup is compared to the recoverable amount of the assets whenever events or changes in circumstances indicate that the net book value may not be recoverable. The recoverable amount is the higher of value in use and the fair value less cost to sell. In assessing the value in use, the expected future cash flows from the assets is determined by applying a discount rate to the anticipated risk adjusted future cash flows. The discount rate used is the group’sGroup’s weighted average cost of capital adjusted for asset specific factors when applicable. An impairment is recognised in the income statement to the extent that the carrying amount exceeds the assets’ recoverable amount. Generally proven and probable reserves are used in the calculations, although limited ore resources may be included when they are considered economically viable and sufficiently likely to be extracted and form part of the approved mine plan. The models use the approved mine plans and exclude capital expenditure which enhance the assets or extractable ore tonnes outside of such approved mine plans. The revised asset carrying amounts are depreciated in line with groupGroup accounting policies.


A previously recognised impairment loss is reversed if the recoverable amount increases as a result of a reversal of the conditions that originally resulted in the impairment. This reversal is recognised in the income statement and is limited to the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognised in prior years.


Assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash-generating units) for purposes of assessing impairment. The estimates of future discounted cash flows are subject to risks and uncertainties including the future gold price. It is therefore reasonably possible
that changes could occur which may affect the recoverability of property, plant and equipment.



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2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

INVENTORIES


Inventories include ore stockpiles, gold in process and doré, and supplies and spares and are stated at the lower of cost or net realisable value. The cost of ore stockpiles and gold produced is determined principally by the weighted average cost method using related production costs.


2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

INVENTORIES (CONTNUED)


Costs of stockpiles include costs incurred up to the point of stockpiling, such as mining and grade control costs, but exclude future costs of production. Ore extracted is allocated to separate stockpiles based on estimated grade, with grades below defined cut-off levels treated as waste and expensed. While held in physically separate stockpiles, the Group blends the ore from each stockpile when feeding the processing plant to achieve the resultant gold content. In such circumstances, lower and higher grade ore stockpiles each represent a raw material, used in conjunction with each other, to deliver overall gold production, as supported by the relevant feed plan. Kibali’s high and medium grade ore stockpile is above 3.07g/3g/t with a marginal ore cut-off grade of 1.13g/t.0.5g/t


The processing of ore in stockpiles occurs in accordance with the Life of Mine (LOM) processing plan that has been optimised based on the known mineral reserves, current plant capacity and mine design. Ore tonnes contained in the stockpile which are to be milled as per the mine plan over the period beyond the next twelve months, are classified as non-current in the statement of financial position.


Net realisable value of ore stockpiles is determined with reference to estimated contained gold and market gold prices applicable. Ore stockpiles which are blended together or with future ore mined when fed to the plant are assessed as an input to the gold production process to ensure the combined stockpiles are carried at the lower of cost and net realisable value. Ore stockpiles which are not planned to be blended in production are assessed separately to ensure they are carried at the lower of cost and net realisable value, although no such stockpiles are currently held.

Previously, costs were absorbed into ore stockpiles on a tonnes basis, however in the current year a contained ounces approach was adopted, which is considered more reflective of the intrinsic value of the ore stockpiles held. Costs of gold inventories include all costs incurred up until production of an ounce of gold such as milling costs, mining costs, directly attributable mine general and administration costs as well as attributable depreciation and amortization but exclude transport costs, refining costs and royalties. Net realisable value is determined with reference to estimated contained gold and market gold prices.

Stores and materials consist of consumable stores and are valued at weighted average cost after appropriate impairment of redundant and slow moving items.


INTEREST/BORROWING COSTS


Interest is recognised on a time proportion basis, taking into account the principal outstanding and the effective rate over the period to maturity. Borrowing cost is expensed as incurred except to the extent that it relates directly to the construction of property, plant and equipment during the time that is required to complete and prepare the asset for its intended use, when it is capitalised as part of property, plant and equipment. Borrowing costs are capitalised as part of the cost of the asset where it is probable that the asset will result in economic benefit and where the borrowing cost can be measured reliably. No interest or borrowing costs have been capitalised during any of the past three years.disclosure periods .


ROYALTIES


Royalty arrangements based on mineral production are in place at each operating mine. The primary type of royalty is a net smelter return royalty. Under this type of royalty, the Group pays the holder an amount calculated as the royalty percentage multiplied by the value of gold production at market gold prices less selling costs. A royalty expense is recorded when revenue from the sale of gold is
recognised.





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2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

FINANCIAL INSTRUMENTS


Financial instruments are measured as set out below. Financial instruments carried on the statement of financial position include cash and cash equivalents, trade and other receivables, trade and other payables, investments in marketable securities, loans to joint ventures, loans to minorities and lease liabilities. Financial assets and financialliabilities are recognised in the Group’s statement of financial position when the Group becomes a party to the contractual provisions of the instrument.

2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

FINANCIAL INSTRUMENTS (CONTNUED)


Financial instruments are initially recognised at fair value when the groupGroup becomes a party to their contractual arrangements. Transaction costs directly attributable to the instrument’s acquisition or issue are included in the initial measurement of financial assets and financial liabilities, except financial instruments classified as at fair value through profit or loss (FVTPL). The subsequent measurement of financial instruments is dealt with below.


Financial assets
On initial recognition, a financial asset is classified as measured at:
a.Amortised cost;
b.Fair value through other comprehensive income (FVTOCI) - equity instruments; or
c.FVTPL.


At initial recognition, the groupGroup measures a financial asset at its fair value plus, in the case of a financial asset not at FVTPL, transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at FVTPL, are expensed.


A financial asset is measured at amortised cost if it is held within the business model whose objective is to hold assets to collect contractual cash flows and its contractual terms give rise, on specified dates, to cash flows that are solely payments of principal and interest on the principal amount outstanding. Interest income from these financial assets is included in finance income using the effective interest rate method. Any gain or loss arising on derecognition is recognised directly in profit or loss and presented in other gains or losses, together with foreign exchange gains or losses. Impairment losses are presented as separate line item in the statement of profit or loss. A gain or loss on a debt investment that is subsequently measured at FVTPL is recognised in profit or loss and presented net within other gains or losses in the period in which it arises. On derecognition of a financial asset, the difference between the proceeds received or receivable and the carrying amount of the asset is included in profit or loss.


Financial assets at amortised cost consist of trade receivables and other receivables (excluding taxes), cash and cash equivalents. Impairment losses are assessed using the forward-looking expected credit loss (ECL) approach. An allowance is recorded for all loans and other debt financial assets not held at FVTPL. The impairment methodology applied depends on whether there has been a significant increase in credit risk. Trade receivable loss allowances are measured at an amount equal to lifetime ECL’s. Loss allowances are deducted from the gross carrying amount of the assets.


Cash and cash equivalents
Cash and cash equivalents are carried in the statement of financial position at cost. For the purpose of the cash flow statement, cash and cash equivalents comprise cash on hand, deposits held at call with banks, other short term highly liquid investments with a maturity of three months or less at the date of purchase and bank overdrafts. In the statement of financial position, bank overdrafts are included in
borrowings in current liabilities.


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2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

FINANCIAL LIABILITIES


Loans and borrowing
Borrowings are recognised initially at fair value, net of transaction costs incurred. Borrowings are subsequently stated at amortised cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognised in the statement of comprehensive income over the period of the borrowings using the effective interest method. Borrowings are classified as current liabilities unless the Company has an unconditional right to defer settlement of the liability for at least 12 months after the statement of financial position date.

2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

FINANCIAL LIABILITIES (CONTNUED)


Trade and other payables
Accounts payable and other short term monetary liabilities, are initially recognised at fair value, which equates to the transaction price, and subsequently carriedat amortised cost using the effective interest method.


REHABILITATION COSTS


The net present value of estimated future rehabilitation costs is provided for in the financial statements and capitalized within property, plant and equipment on initial recognition. Rehabilitation will generally occur on closure or after closure of a mine. Initial recognition is at the time of the construction or disturbance occurring and thereafter as and when additional construction or disturbances take place. The estimates are reviewed annually to take into account the effects of inflation and changes in estimated risk adjusted rehabilitation works cost and are discounted using rates that reflect the time value of money.


Annual increases in the provision due to the unwinding of the discount are recognized in the statement of comprehensive income as a finance cost. The present value of additional disturbances and changes in the estimate of the rehabilitation liability are recorded to mining assets against an increase/decrease in the rehabilitation provision. The rehabilitation asset is amortizedamortised as noted previously. Rehabilitation projects undertaken, included in the estimates, are charged to the provision as incurred.


Environmental liabilities, other than rehabilitation costs, which relate to liabilities arising from specific events, are expensed when they are known, probable and may be reasonably estimated.


PROVISIONS


Provisions are recognised when the Company has a present legal or constructive obligation as a result of past events where it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation, and a reliable estimate of the amount of the obligation can be made.


CURRENT TAX


Current tax is the tax expected to be payable on the taxable income for the year calculated using rates (and laws) that have been enacted or substantively enacted by the reporting date (and when such laws are applicable to the groupGroup allowing for the impact of tax stability protections afforded to the group)Group). It includes adjustments for tax expected to be payable or recoverable in respect of previous periods.


The Group is subject to income tax in several jurisdictions and significant judgement is required in determining the provision for income taxes. During the ordinary course of business, there are transactions and calculations for which the ultimate tax determination is uncertain. As a result, the Group recognises tax liabilities based on estimates of whether additional taxes and interest will be due.


These tax liabilities are recognised when, despite the company's belief that its tax return positions are supportable, the company believes it is more likely than not that a taxation authority would not accept its filing position. In these cases, the Group records its tax balances based on either the most likely amount or the expected value, which weights multiple potential scenarios. The company believes that its accruals for tax liabilities are adequate for all open audit years based on its assessment of many factors including past experience and interpretations of tax law.


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2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

No material uncertain income tax positions exist as at 31 December 2021, nor as at 31 December 2020 or 2019. This assessment relies on estimates and assumptions and may involve a series of complex judgments about future events.

To the extent that the final tax outcome of these matters is different than the amounts recorded, such differences will impact income tax expense in the period in which such determination is made.





2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)


DEFERRED TAXATION


Deferred tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements. However, if the temporary difference arises from initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss, it is not recognised. Deferred tax is determined using tax rates (and laws) that have been enacted or substantively enacted by the statement of financial position date (and when such laws are applicable to the groupGroup allowing for the impact of tax stability protections afforded to the group)Group) and are expected to apply when the temporary differences reverses. Deferred tax assets are recognised to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilised. Deferred tax is provided on temporary differences arising on investments in subsidiaries and joint ventures, except where the timing of the reversal of the temporary difference is controlled by the Group and it is probable that the temporary difference will not reverse in the foreseeable future.


VALUE ADDED TAX (TVA)


TVA receivables are recognised initially at cost. Subsequently, TVA receivables are measured at amortised cost using the effective interest method, less provision for impairment.


The Group assesses at each reporting period whether there is an indication that these receivables may be impaired taking into account the risk of non-collectability and timing of receipt.


SHARE CAPITAL


Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction from the proceeds.


CONTINGENT LIABILITIES


The Group discloses contingent liabilities when possible obligations exist as a result of past events, unless the possible outflows of economic benefits are considered remote. By their nature, contingencies will often only be resolved when one or more future events occur or fail to occur. The assessment of such contingencies inherently involves the exercise of significant judgement and estimates of the outcome of future events. In certain circumstances, to provide transparency, the Group voluntarily elects to disclose information regarding claims for which any outflow of economic benefit is considered remote.


LEASES


The Group adopted IFRS 16 using the modified retrospective approach, with recognition of transitional adjustments on the date of initial application (1 January 2019), without restatement of comparative figures.


The lease liabilities were measured at the present value of the remaining lease payments, discounted
with the rate determined by reference to the estimated incremental borrowing average rate of 6.81% p.a. Variable lease payments are only included in the measurement of the lease liability if they depend on an index or rate. In such cases, the initial measurement of the lease liability assumes the variable element will remain unchanged throughout the lease term. Other variable lease payments are expensed in the period to which they relate.

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2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)


LEASES (CONTINUED)

Subsequent to initial measurement lease liabilities increase as a result of interest charged at a constant rate on the balance outstanding and are reduced for lease payments made. Right-of-use assets are amortised on a straight-line basis over the remaining term of the lease or over the remaining economic life of the asset if, rarely, this is judged to be shorter than the lease term.

On adoption of IFRS 16, the Group recognised right-of-use assets and lease liabilities as follows:
Classification under IAS 17Right-of-use assetsEffective period commencing on or after
Operating leasesthe carrying value that would have resulted from IFRS 16 being applied from the commencement date of the leases, subject to the practical expedients noted above.
Measured at the present value of the remaining lease payments discounted using the Group’s incremental borrowing rate as at 1 January 2019

Finance leases
Measured based on the carrying values for the lease assets and liabilities immediately before the date of initial application (i.e. carrying values brought forward, unadjusted).



The following table presents the impact of adopting IFRS 16 on the statement of financial position as at 1 January 2019:
Assets 
31 December 2018
As originally Presented
$'000

 
IFRS 16
adjustment
$'000

 
1 January 2019
$'000

       
Right-of-use assets (PP&E at 31.12.18) 4,817
 15,949
 20,766
       
Liabilities      
       
Lease liabilities (finance lease liability at 31.12.18) 38,890
 15,949
 54,839
       

Refer to note 20 for reconciliations of the Right of Use Assets and Lease Liabilities


REVENUE RECOGNITION


The company’sCompany’s primary product is gold, other metals produced as part of the extraction process are considered to be by-products arising from the production of gold. The companyCompany enters into a contract for the sale of gold at each of its mining operations. The performance obligation under its contract is to supply such gold to the customer, subject to minimum quality specifications with the consideration for such gold sales determined by the market spot price for each ounce of gold at the point of sale and gold content. As the sales from the gold contract is subject to customer survey adjustment, sales are initially recorded based on the results of tests on the material prior to shipment to determine the gold content and specification with such estimates subsequently adjusted to reflect the final gold content determined by the customer shortly after period end. Revenue is recorded to the extent that it is highly probable that there will be no subsequent reversal of such revenue due to gold content or quality specifications. Historical adjustments of this nature have been insignificant.

2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

REVENUE RECOGNITION (CONTINUED)


The performance obligations are considered to be satisfied and control of the gold transferred as the gold leaves the gold room upon collection by the customer, with title, possession and significant risks and rewards transferred at this point with revenue recorded accordingly. Subsequent adjustments are recorded in revenue to take into account final assay and weight certificates from the refinery, if different from the initial certificates. The differences between the estimated and actual contained gold have historically not been significant. Payment terms from the customer are based on 95% as initial payment for sales as agreed on the day of shipment based on the results of tests on the material prior to shipment with the final payment of 5% based on final customer assay and includes an adjustment to the initial 95% provisional payment. The period between provisional invoicing and final pricing, or settlement period, is typically around 5 days.



2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

EXPLORATION AND EVALUATION COSTS


The Group capitalizes all exploration and evaluation expenditures where management concludes that the realization of future economic benefit is more likely than not. While the criteria for concluding that expenditure should be capitalised is always probable, the information that management use to make that determination depends on the level of exploration.


Exploration and evaluation expenditure on brownfieldbrownfields sites, being those adjacent to mineral deposits which are already being mined or developed, is expensed as incurred until the directors are able to demonstrate that future economic benefits are probable through the completion of a prefeasibility study, after which the expenditure is capitalised as a mine development cost. A ‘prefeasibility study’ consists of a comprehensive study of the viability of a mineral project that has advanced to a stage where the mining method, in the case of underground mining, or the pit configuration, in the case of an open pit, has been established, and which, if an effective method of mineral processing has been determined, includes a financial analysis based on reasonable assumptions of technical, engineering, operating economic factors and the evaluation of other relevant factors. The prefeasibility study, when combined with existing knowledge of the mineral property that is adjacent to mineral deposits that are already being mined or developed, allow the directors to conclude that it is more likely than not that the Group will obtain future economic benefit from the expenditures.


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2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

EXPLORATION AND EVALUATION COSTS (CONTINUED)

Exploration and evaluation expenditure on greenfield sites, being those where the Group does not have any mineral deposits which are already being mined or developed, is expensed until such time as the directors have sufficient information to determine that future economic benefits are probable, after which theexpenditure is capitalised as a mine development cost. The information required by directors is typically a final feasibility study however a prefeasibility study may be deemed to be sufficient where the additional work required to prepare a final feasibility study is not significant or the work done at prefeasibility level clearly demonstrates an economic asset. Exploration and evaluation expenditure relating to extensions of mineral deposits which are already being mined or developed, including expenditure on the definition of mineralisation of such mineral deposits, is capitalised as a mine development cost following the completion of an economic evaluation equivalent to a prefeasibility study. This economic evaluation is distinguished from a prefeasibility study in that some of the information that would normally be determined in a prefeasibility study is instead obtained from the existing mine or development. This information when combined with existing knowledge of the mineral property already being mined or developed allow the directors to conclude that more likely than not the Company will obtain future economic benefit from the expenditures. Costs relating to property acquisitions arecapitalised within development costs.



DIVIDEND DISTRIBUTION


Dividend distribution to the Company’s shareholders is recognised as a liability in the Group’s financial statements in the period in which the dividends are approved by the board of directors and declared to shareholders.



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3.
3. KEY ACCOUNTING ESTIMATES AND JUDGEMENTS

Some of the accounting policies require the application of significant judgement by management in selecting the appropriate assumptions for calculating financial estimates or determining the appropriate accounting treatment for a transaction.


By their nature, these judgements are subject to an inherent degree of uncertainty and are based on historical experience, terms of existing contracts, management’s view on trends in the gold mining industry and information from outside sources.


The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities are discussed below:


DEMOCRATIC REPUBLIC OF CONGO (DRC) 2018 MINING CODE


In the DRC, the 2018 Mining Code and related amended Mining Regulations came into effect during the first half of 2018 and removed fiscal stability protections under the 2002 Mining Code and introduced a series of potentially significant adverse changes to tax legislation. Kibali Goldmines SA has taken legal advice and has been exploring all options to protect its vested rights under the 2002 Mining Code, as well as the specific state guarantees it previously received regarding fiscal stability. Without prejudice to its rights under the stability protections Kibali is currently paying the additional taxes as per the 2018 mining code, while it engages with government. Continued engagement with government has resulted in the submission of an application for a number of exemption and waivers in terms of Article 220 of the 2018 law as part of the group’sGroup’s efforts to reach a mutually acceptable way forward. Article 220 affords benefits to mining companies in landlocked infrastructurallyinfrastructural challenged provinces, such as where Kibali is located.


VALUE ADDED TAX (TVA)


Included in trade and other receivables (refer to noteNote 13) is a recoverable TVA balance (including recoverable TVA on fuel duty and after discounting provisions) of US$147.8163.2 million (2018:(2020: US$180.5153.7 million) (2017:(2019: US$134.5147.8 million) owing by the fiscal authorities in the DRC.

The Group continues to seek recovery of TVA in the DRC, in line with the Mining Code and theCode. The carrying value of the receivable has been assessed considering factors such as the level of receipts and tax offsets in the period and to date, the impact of the settlement agreement reached in Q4 2018 (see below),prior years, relationships and communications with government officials and the tax authority and the limited quantum of disputed submissions. Judgement exists in assessing recovery of these receivables. Whilereceivables as whilst the TVA balance is considered collectible, uncertainty exists regarding the timing of receipts and offsets.

Kibali reached an agreement with the Ministry of Finance in late 2018 on the reimbursement of the refundable TVA balance. The agreement allows for US$40.0 million to be refunded initially, while the remaining balance can be settled on an offset basis against other taxes with potential for further cash receipts. As part of the settlement in 2018, the Group agreed to write off US$20.6 million of the outstanding TVA receivable which has been recorded as an expense (note 5) andwhereby the DRC Government agreed to redenominate historical TVA from Congolese Francs (CDF) into US dollars based on the historical exchange rates applicable at the date of original submissions of the overdue TVA. This latter revisionIn early 2020, Kibali reached redenomination agreement for the period up to February 2020 that gave rise to a US$56.7 million foreign exchange gain of $4.3 million recorded in the income statement (note(Note 5). During 2020, the DRC Government indicated that offsets and cash repayments would be suspended as a result of liquidity constraints due to the global COVID-19 pandemic. Kibali did not receive any cash repayments or offsets during 2021.


In the current year, two methods were considered as part of the impairment assessment of the TVA receivable. One utilised weighted scenario analysis taking into account future potential losses and timing of receipts, with a specified weighting applied to each scenario. The second, which produced an equivalent charge, was based on a discounted approach in line with previous years.


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3.KEY ACCOUNTING ESTIMATES AND JUDGEMENTS

Table of Contents


3. KEY ACCOUNTING ESTIMATES AND JUDGEMENTS (CONTINUED)

VALUE ADDED TAX (TVA) (CONTINUED)


UnderGiven the second approach,continued delays in recovery, the outstanding receivable was discounted by US$37.357.3 million (2018:(2020: US$37.350.1 million) (2017:(2019: US$20.037.3 million) which required estimates as to the timing of future receipts and the level and timing of future offsets with reference to relevant taxes forecast under the mine plan, historical levels and other factors. The increase in the year was based on a probability weighted scenario analysis that takes into account numerous recoverability profiles, following the DRC Government’s decision in July 2020 to suspend offsets and cash repayments. A discount rate of 10.5%7.88% was applied to both the expected cash receipts and the amounts forecasted to be recovered through offsetting.offsetting across all scenarios in the assessment. Within the scenarios, Management have assumed a recoverable periodvarying periods of 4 years based on actual recovery achieved in the year, with a decreased level of recovery in the next 12 months following a temporary stopdelay in offsets, implemented by the government during Q4 2019, but a catch up inand have included staggered recovery through improved receipts and offsets over the remainder of the period.profiles which reflects management’s best estimates. A 1% increase/decrease in the discount rate will increase/decrease the provision by US$36.1 million/US$3.16.3 million. A delay in all receipts and offsets for 12 monthsApplying additional weighting based on management assessment of likelihood to the staggered recovery profiles would increase the provision by US$13.17.8 million.


CARRYING VALUES OF PROPERTY, PLANT, EQUIPMENTAND EQUIPMENTMINERAL PROPERTIES


The Group assesses at each reporting period whether there is any indication that these assets may be impaired (refer to noteNote 10 and 11). If such indication exists, the Group estimates the recoverable amount of the asset. The recoverable amount is assessed by reference to the higher of ‘value in use’ (being the net present value of expected future cash flows of the relevant cash generating unit) and ‘fair value less cost to sell’. The estimates used for impairment reviews are based on detailed mine and operating plans. Future cash flows are based on estimates of:
a.The quantities of the proven and probable reserves and certain limited ore resources being those for which there is a high degree of confidence in economic extraction;
b.Future production levels;
c.Future commodity prices; including an oil forecast at US$70bbl (2018:(2020: US$70bbl) (2017:65bbl) (2019: US$70bbl);
d.Future cash cost of production and capital expenditure associated with extraction of the reserves and certain limited ore resources in the approved mine plan;
e.Future gold prices -– a gold price curve was used for the impairment calculations starting at a US$1 350/700/oz gold price (2018:(2020: US$1 250oz) (2017:700/oz) (2019: US$1 250/350/oz). A gold price of US$1 350/700/oz was used for the 20202022 year with the price assumption remaining level for years thereafter(2023: $1 650/oz) (2024: $1 550/oz) (thereafter at US$1 300/oz500/oz);
f.A real discount rate equivalent to 8.67% pre-tax (2018: nominal 8.6% (2020: 10.3%) (2017: nominal 8.2%(2019: 8.7%); and.
An inflation rate of 2.0% (2018: 2.5%) (2017: 2.5%).

A reduction in forward gold prices in excess of 27.0% or an increase in the discount rate to 18.3% is required to give rise to impairment at the mine. However, having considered such scenarios, the directors remain satisfied that no impairment is appropriate. The model is considered suitably conservative with proven and probable reserves based on a US$1 200/oz gold price (2018: US$1 000/oz) (2017: US$1 000/oz).

OPEN CAST MINE STRIPPING


The Group capitalises costs, associated with stripping activity, to expose the orebody, within mining assets. Judgement is required in determining the relevant section or phase of the orebody to which stripping activity relates, based on assessment of factors such as mine planning, geology of the open cast pits and strategic board decisions such as the pushback campaigns which requires judgement over the eligible costs. The Group capitalised US$9.136.5 million (2018:(2020 US$9.212.2 million) (2017:(2019: US$19.29.1 million) to stripping assets with a net book value of US$8.611.4 million (2018:(2020: US$5.519.1 million) (2017:(2019: US$12.38.6 million). The capitalised stripping costs relate to four open cast satellite pits Aerodrome, KCD, Sessenge and Gorumbwa. The Group subsequently depreciates relevant stripping assets as that section of the orebody is mined which requires judgement as to the relevant section of the orebody for depreciation.


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3.KEY ACCOUNTING ESTIMATES AND JUDGEMENTS (CONTINUED)

3. KEY ACCOUNTING ESTIMATES AND JUDGEMENTS (CONTINUED)

CAPITALISATION AND DEPRECIATION


There are several methods that could be adopted for calculating depreciation, i.e. the straight line method, the production method using ounces produced or tonnes milled. The directors believe the ounces produced method is the best indication of plant and infrastructure usage. The change in method used from tonnes milled to ounces produced, resulted in changes to estimates during the financial year. Refer to note 2 for the depreciation policy. Estimates are required regarding the allocation of assets to relevant proven and probable reserves and certain limited resources in the units of production calculations, with assessments involving the Group’s mining, capital and geology departments. Proven and probable reserves and certain limited resources are used in each depreciation calculation, which is considered to be a suitably conservative measure of the future ore extractable using existing assets. Expenditure incurred to date in underground infrastructure development considered to have been commissioned, is depreciated over the remaining proven and probable reserves and certain limited resources of the underground mine, as the infrastructure provides access to the future mining areas.


The Group applies judgement in allocating costs between operating and capital items in respect of underground mining and in determining the date depreciation commences. Costs are capitalised when the activity provides access to future ore bodies and are expensed as operating costs when the works involve extraction of ore from operational sections of the ore body. The nature of activity is assessed based on information provided by contractors, together with inspections by the Group’s mining teams. Direct labour, materials and other costs are specifically allocated based on the activity performed. Indirect costs that are attributable to underground works are allocated between capital and operating expenses based on factors such as development versus operating metres.


Judgement is required in determining the point at which assets under construction at Kibali began commercial production and should be depreciated. Depreciation start dates are determined considering the factors detailed in Note 2 and during 2015 Kibali underground mine assets attributable to production started to be depreciated. The commissioning of the underground happens in phases and as the sections are brought into production the attributable costs are transferred and depreciated. Judgement was applied in identifying the costs considered attributable to this production. Additionally, given ongoing mine construction and development, judgement was required in allocating costs between operating costs, ore stockpiles and ongoing capital works. Costs have been allocated based on the underlying activity and economic benefits.


GOLD PRICE ASSUMPTIONS


The following gold prices were used in the mineral reserves optimisation calculation:
2021 2020 2019    2018     2017
US$/oz 1 200    1 000    1 0001,200(2) 1,200(3) 1,200


Changes in the gold price used could result in changes in the mineral reserve optimisation calculations. Mine modelling is a complex process and hence it is not feasible to perform sensitivities on gold price assumptions in respect of ore reserves. The gold price assumption have been increased in 2019 but kept a margin of safety against a long term gold price outlook and conservative as per the historical approach.


DETERMINATION OF ORE RESERVES


The Group estimated its Mineral Reserves and Mineral Resources based on information compiled by qualified persons according to the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) 2014 Definition Standards for Mineral Resources and Mineral Reserves dated May 10, 2014 (CIM (2014) Standards) as incorporated with NI 43-101 forsince the 2019 financial year. Previously the Group based its estimates of ore reserves and mineral resources in accordance with the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves of December 2012 (the 2012 JORC code). The change in basis of estimation, driven by requirements of the Toronto Stock Exchange following the Randgold and Barrick merger, did not result in a material impact to reserves and resources.



(2) A gold price range of US$1 200 to US$1 500/oz was used, pit dependant, with the majority (75%) at $1 200/oz
(3) A gold price range of US$1 000 to US$1 300/oz was used, pit dependant, with the majority (85%) at $1 200/oz
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3.KEY ACCOUNTING ESTIMATES AND JUDGEMENTS (CONTINUED)

3. KEY ACCOUNTING ESTIMATES AND JUDGEMENTS (CONTINUED)

DETERMINATION OF ORE RESERVES (CONTINUED)


Reserves determined in this way are used in the calculation of depreciation, amortisation and impairment charges, as well as the assessment of the carrying value of mining assets and timing of mine closure obligations. There are numerous uncertainties inherent in estimating ore reserves and assumptions that are valid at the time of estimation may change significantly when new information becomes available. Changes in the forecast prices of commodities, exchange rates, production costs or recovery rates may change the economic status of reserves and may, ultimately, result in the reserves being restated.


FUTURE REHABILITATION OBLIGATIONS


The net present value of current rehabilitation estimates have been discounted to their present value using a real risk free rate of 0% (2020: 0%) (2019: 0.5%) per annum, with cash flows adjusted for a market risk rate of 10% compared to a nominal risk free rate of 3.0% in 2018 (2017: 2.5%) being the prevailing risk free interest rates at the time. The majority of expenditure is expected to be incurred at the end of the mine life. The Group undertakes regular assessments by external experts of its mine closure plans, together with assessments by internal staff in the intervening periods, to determine the required rehabilitation works, cost of works and timing of such works. Judgment is required in determining the appropriate costs, timing of costs, discount rates and inflation (when nominal discount rate used).


For further information, including the carrying amounts of the liabilities, refer to Note 18. A 0.25% change in the discount rate on the Group’s rehabilitation estimates would result in an impact of US$11.0 million (2018:(2020: US$3.11.0 million at 1% nominal) (2017:0.25% real) (2019: US$3.21.0 million at 1%0.25% nominal) on the provision for environmental rehabilitation, and an impact of US$0.2 million (2018:(2020: US$0.2 million) (2017:(2019: US$0.020.2 million) on the statement of comprehensive income.


STOCKPILES, GOLD IN PROCESS AND PRODUCT INVENTORIES


Costs that are incurred in or benefit the productive process are accumulated as stockpiles, gold in process and product inventories. Net realisable value tests are performed at least annually and represent the estimated future sales price of the product based on contained gold and metals prices, less estimated costs to complete production and bring the product to sale. Judgment is required in assessing whether stockpiles of different grades should be tested individually, or tested as inputs to the gold production process, as detailed in the Group’s accounting policy. In the current year, the stockpiles were tested reflecting the planned blended feed of such stockpiles to the mill on the basis that they are blended together and with future ore mined.


Stockpile quantities are measured by estimating the number of tonnes added and removed from the stockpile, the number of contained gold ounces based on assay data, and the estimated recovery percentage based on the expected processing method. Stockpile tonnages are verified by periodic surveys. The forecast gold prices and cost escalators were those used in the impairment test detailed above.


EXPLORATION AND EVALUATION EXPENDITURE


The Group has to apply judgement in determining whether exploration and evaluation expenditure should be capitalised or expensed. Management exercises this judgement based on the results of economic evaluations, prefeasibility or feasibility studies. Costs are capitalised where those studies conclude that more likely than not the Group will obtain future economic benefit from the expenditures.



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3. KEY ACCOUNTING ESTIMATES AND JUDGEMENTS (CONTINUED)
3.KEY ACCOUNTING ESTIMATES AND JUDGEMENTS (CONTINUED)


RECOVERY OF DEFERRED TAX ASSETSLIABILITY/ASSET


Management have recognised a deferred tax assetliability of US$9.6196.7 million (2018:(2020: US$27.389.6 million deferred tax asset) (2017:liability) (2019: US$43.29.6 million deferred tax asset). The Group hashad to apply judgement in determining the recoverable amount of deferred tax assets.assets recognized in 2019. Deferred tax assets are recognised to the extent that their utilisation is probable, being based upon whether it is more likely than not that sufficient and suitable taxable profits will be available in the future, against which the reversal of temporary differences can be deducted. The recoverability of the asset has beenwas assessed considering factors such as the underlying assumptions in the life of mine plan, the operating performance of the mine and any restrictions under the applicable DRC tax code having due consideration to the tax stability protections, as detailed in the "DRC 2018 Mining Code" above.

The Group considers the Although Kibali has a deferred tax assetsliability in financial year 2021 accumulated losses carried forward, can still be utilised.

CASH HELD IN DRC

Judgment has been exercised in evaluating the extent to be recoverable owingwhich expected credit losses apply in relation to cash balances held in the latest life of mine plan which estimates the asset being fully utilised within 1 year. The gold price would haveDRC. Refer to fall below US$910/oz before the deferred tax asset is not utilised.Note 22.

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)




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4. REVENUE


The company has disaggregated revenue into various categories in the following table, which is intended to depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic date.


   31 Dec
       2021
 US$’000
   31 Dec
      2020
US$’000
   31 Dec
       2019
 US$’000
Primary geographic market
Democratic Republic of Congo1,469,221 1,440,328 1,122,940 
1,469,221 1,440,328 1,122,940 
Product type
Gold doré1,465,793 1,437,297 1,120,743 
Silver3,428 3,031 2,197 
1,469,221 1,440,328 1,122,940 
Timing of transfer of goods
Point in time1,469,221 1,440,328 1,122,940 
1,469,221 1,440,328 1,122,940 



 31 Dec 2019
 31 Dec 2018
 31 Dec 2017
 $’000
 $’000
 $’000
Primary geographic market     
Democratic Republic of Congo1,122,940
 1,041,035
 754,852
 1,122,940
 1,041,035
 754,852
Product type     
Gold doré1,120,743
 1,041,035
 754,852
Silver (2)
2,197
    
 1,122,940
 1,041,035
 754,852
Timing of transfer of goods     
Point in time1,122,940
 1,041,035
 754,852
 1,122,940
 1,041,035
 754,852


5. OTHER INCOME AND EXPENSES

 31 Dec 2019
 31 Dec 2018
 31 Dec 2017
 $’000
 $’000
 $’000
Other income     
Other income170
 174
 146
Net foreign exchange gains—
 56,664
 —
 170
 56,838
 146

Refer to TVA in note 3 for details of the foreign exchange gain included above related to the settlement agreement reached with the DRC Government in Q4 2018.


31 Dec
2021
31 Dec
2020
31 Dec
2019

US$’000US$’000US$’000
Other Income:

Other income

147 169 170 
Net foreign exchange gains

741 2,035 — 
Dividend received320 — — 

1,208 2,204 170 

The total other income is not considered to be part of the main revenue generating activities and as such the Group presents this income separately from revenue.























F - 109
Table of Contents











(2) In prior year silver sales was insignificant and therefore not shown under revenue but rather as a credit to cost of sales. Whilst silver sales remain immaterial, these have been recorded as revenue for completeness
.


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)




5. OTHER INCOME AND EXPENSES (CONTINUED)




31 Dec
2021
31 Dec
2020
31 Dec
2019
31 Dec 2019
 31 Dec 2018
 31 Dec 2017

US$’000US$’000US$’000
Other Expenses:Other Expenses:

Management feeManagement fee

6,216 4,667 4,563 
COVID-19 specific costsCOVID-19 specific costs35 18,608 — 
Other expensesOther expenses18,644 — — 
Net foreign exchange lossNet foreign exchange loss

— — 1,458 
Provision for impairment against TVA receivable and related expensesProvision for impairment against TVA receivable and related expenses

8,351 14,202 — 
$’000
 $’000
 $’000

33,246 37,477 6,021 
Other expenses     
Management Fee4,563
 4,478
 4,385
Net foreign exchange loss1,458
 2,917
 38,469
Provision for impairment against TV receivable—
 37,893
 12,177
6,021
 45,288
 55,031


The discounting provision movement for 2018US$0.35 million (2020: $18.6 million) (2019: nil) relates to TVA receivables which is made up of US$17.3m (2017: US$12.2 million) increaseCOVID-19 specific costs, notably laboratory testing facilities on the mine, personal protective equipment for staff and local area, donations and a local medical clinic and testing center.

Included in the discounting provision,other expenses are $4.4m community contribution fees, $3.9m bank fees on dividends, $3.6m community resettlement program, $2.8m environmental tax, $1.1m social expenditure and US$20.6m write off of TVA balance as part of the TVA settlement agreement. Refer to note 3 for details.$2.0m legal related.


Also refer to noteNote 3 for details regarding the net foreign exchange lossesgains incurred.




6.MINING AND PROCESSING COSTS
31 Dec31 Dec31 Dec
202120202019
US$’000US$’000US$’000
Mining and processing costs comprise:
Mine production costs264,556 249,395 263,608 
Movement in production inventory and ore stockpiles(15,340)2,924 (32,953)
Depreciation and amortisation243,958 241,311 282,180 
Other mining and processing costs194,912 176,508 175,961 
688,086 670,138 688,796 


 31 Dec 2019
 31 Dec 2018
 31 Dec 2017
 $’000
 $’000
 $’000
Mining and processing costs comprise:     
Mine production costs263,608
 264,122
 232,209
Movement in production inventory and ore stockpiles(32,953) (12,154) 28,933
Depreciation and amortisation282,180
 329,519
 264,415
Other mining and processing costs175,961
 190,772
 173,423
 688,796

772,259

698,980

7. EXPLORATION AND CORPORATE EXPENDITURE
31 Dec
2013
31 Dec
2012
31 Dec
2011
202120202019
US$’000US$’000US$’000
Exploration and corporate expenditure comprises:
Exploration expenditure4,214 4,295 7,123 
Corporate expenditure1,634 1,979 6,563 

5,848 6,274 13,686 


















F - 110
 31 Dec 2019
 31 Dec 2018
 31 Dec 2017
 $’000
 $’000
 $’000
Exploration and corporate expenditure comprises:     
Exploration expenditure7,123
 3,213
 2,760
Corporate expenditure6,563
 2,941
 5,445
 13,686

6,154

8,205
Table of Contents


8. FINANCE INCOME AND COSTS

31 Dec
2012
31 Dec
2012
31 Dec
2011

202120202019

US$’000US$’000US$’000
Finance income comprise:
Interest received – loans and receivables3,277 2,664 1,389 
Bank interest2,341 4,248 2,981 
Total finance income5,618 6,912 4,370 
Finance costs comprise:
Interest expense on finance lease(5,428)(4,869)(3,153)
Interest paid on overdrafts— (1,215)(289)
Unwinding of discount on provisions for Rehabilitation(485)(376)(531)
Total finance costs(5,913)(6,460)(3,973)
Net finance income/(costs)(295)452 397 


 31 Dec 2019
 31 Dec 2018
 31 Dec 2017
 $’000
 $’000
 $’000
Finance income comprise:     
Bank Interest1,389
 20
 20
Interest received – loans and receivables2,981
 3,360
 4,127
Total finance income4,370

3,380

4,147
Finance costs comprise:     
Interest expense on finance lease(3,153) (3,359) (3,931)
Interest paid on overdrafts(289) (515) (1,018)
Unwinding of discount on provisions for Rehabilitation(531) (591) (529)
Total finance costs(3,973)
(4,465)
(5,478)
Net finance income/(costs)397

(1,085)
(1,331)

9. INCOME TAXES
  31 Dec 2019
 31 Dec 2018
 31 Dec 2017
  $’000
 $’000
 $’000
Current taxation 44,316
 —
 —
Deferred taxation1217,618
 15,972
 (54,333)
  61,934

15,972

(54,333)

31 Dec31 Dec
31 Dec

202120202019
US$’000US$’000US$’000
Current taxation

55,67157,83444,316
Deferred taxation12107,04499,25617,618
Withholding tax18,000——

180,715157,09061,934


The tax on the Group’s profit before tax differs from the theoretical amount that would arise using the statutory tax rate applicable to the Group’s operationsoperations. Withholding tax arose from the dividend payment made from Kibali Goldmines SA to Moto (Jersey) 2 Limited and Kibali (Jersey) Limited.

31 Dec31 Dec31 Dec

202120202019

US$’000US$’000US$’000
Profit before tax

674,353661,787362,246
Tax calculated at the DRC effective tax rate of 30%202,306198,537108,674 
Withholding tax18,000
Reconciling items:

Exempt income

(56,141)(54,694)(54,359)

Other differences

16,55013,2477,619
Taxation charges

180,715157,09061,934
 31 Dec 2019
 31 Dec 2018
 31 Dec 2017
 $’000
 $’000
 $’000
Profit/(loss) before tax362,246
 227,970
 (40,349)
Tax calculated at the DRC effective tax rate of 30%108,674
 68,391
 (12,105)
Reconciling items:     
Exempt income(54,359) (50,569) (40,948)
Other differences7,619
 (1,850) (1,280)
Taxation (credit) / charges61,934

15,972

(54,333)


Kibali (Jersey) Limited is subject to an income tax rate in Jersey at 0%. In the DRC, Kibali is subject to corporation tax at 30%. Included in current taxation for 2019 is an amount of US$15.5 million paid in respect of 2018. This payment arose as a result of the application of a provision in the 2018 Mining Code restricting the application of unredeemed capital allowances against taxable income to 60% of such taxable income. The Group has previously resisted the application of this provision on the basis of the stability protection in the 2002 Mining Code. However, during 2019, at the time of making the final 2018 corporate tax payment, the Group has,had, under duress, applied the restriction on the utilizationutilisation of unredeemed capital allowances, resulting in an additional charge of US$15.5 million to current taxation and an equivalent increase in the deferred tax asset. Kibali have capital allowances for deduction against future mining income which are partially offset by accelerated capital allowances on property, plant and equipment. Kibali (Jersey) Limited’s estimated tax deductions carried forward at 31 December 20192021 amounted to US$450.4285.6 million (2018:(2020: US$477.1355.7 million) (2017:(2019: US$520.5450.4 million) at the tax rate of 30% which are reduced by accelerated capital allowances to result in a net deferred tax asset recorded. Referrecorded up to note 3 for detailsthe financial year 2019. In the current year, the Group has a deferred tax liability of US$196.7 million. In addition, withholding tax arose from the 2018 Mining Codedividend payments from Kibali Goldmines SA to Kibali (Jersey) and the Group’s assessment regarding its fiscal stability protections.Moto (Jersey) 2 Limited.

F - 111



Table of Contents



10. PROPERTY, PLANT AND EQUIPMENT

31 Dec31 Dec31 Dec

202120202019

US$’000US$’000US$’000
Mine properties, mine development costs and mine plant facilities and equipment
Cost
Balance at the beginning of the year3,161,305 3,004,474 2,868,026 
Additions

177,331 156,831 136,448 
Balance at the end of the year

3,338,636 3,161,305 3,004,474 




Accumulated depreciation




Balance at the beginning of the year(1,314,559)(1,111,627)(879,493)
Depreciation charged for the year(212,786)(202,932)(232,134)
Balance at the end of the year(1,527,345)(1,314,559)(1,111,627)
Net book value1,811,291 1,846,746 1,892,847 




 31 Dec 2019
 31 Dec 2018
 31 Dec 2017
 $’000
 $’000
 $’000
Mine properties, mine development costs and mine plant facilities and equipment     
Cost     
Balance at the beginning of the year2,868,026
 2,722,330
 2,475,924
Additions136,448
 145,696
 246,406
Balance at the end of the year3,004,474
 2,868,026
 2,722,330
      
Accumulated depreciation     
Balance at the beginning of the year(879,493) (614,612) (407,618)
Depreciation charged for the year(232,134) (264,881) (206,994)
Balance at the end of the year(1,111,627) (879,493) (614,612)
Net book value1,892,847
 1,988,533
 2,107,718


Long-lived assets and development costs
Included in plant and equipment are long-lived assets and development costs which are amortised on a units of production basis as detailed in noteNote 3 and include mining properties, such as processing plants, tailings facilities, raw water dams and power stations, as well as mine development costs. The net book value of these assets was US$1 784583 million at 31 December 2019 (2018:2021 (2020: US$1 903708 million) (2017:(2019: US$2 0231 784 million). The value of assets under construction included in plant and equipment that are not depreciated is US$209.2294.0 million (2018:(2020: US$189.2232.5 million) (2017:(2019: US$222.9209.2 million). Refer to noteNote 3 for judgements applied with regards to stripping assets.


Short-lived assets
Included in property, plant and equipment are short-lived assets which are depreciated over a short life which reflects their likely useful economic life and are comprised of motor vehicles, computer equipment, aircrafts and fixtures and fittings. The net book value of these assets was US$66.2167.1 million at 31 December 2019 (2018:2021 (2020: US$6675.9 million) (2017:(2019: US$51.666.2 million).


Decommissioning asset
A decommissioning asset has been recognised relating to the rehabilitation liability to the value of US$16.115.5 million (2018: US$15.5 million) (2017:(2020: US$17.2 million) (2019: US$16.1 million) (refer to noteNote 18). Depreciation of the decommissioning asset commenced on 1 October 2013 when the Group commenced commercial production. The asset is depreciated over the life of the mine on a unit of production basis.basis (Refer to Note 3).


Right of Use assets (ROU)
The net carrying amount of property, plant and equipment includes the following amount in respect of Right of Use asset, which also includes the KAS assets, previously listed below under finance lease mining1 Limited (“KAS”) assets.



31 Dec31 Dec31 Dec
202120202019
US$’000US$’000US$’000
ROU Assets45,449 46,175 26,503 
45,449 46,175 26,503 





F - 112
 31 Dec 2019
 31 Dec 2018
 31 Dec 2017
 $’000
 $’000
 $’000
      
Finance Lease Mining Assets (2018 & 2017)—
 4,817
 16,627
ROU Assets26,503
 —
 —
 26,503
 4,817
 16,627
Table of Contents

KAS 1 Limited (KAS) is an asset leasing joint venture in which the Group has a 50.1% interest. Together with Bougues Traveux Publics SAS (BYTP), the Group provides funding to KAS to buy the assets and in return leases the assets to Kibali, a subsidiary of the Group. Despite holding more than 50% ownership, Kibali (Jersey) Limited does not control the entity, which is operated as a joint venture where both parties exercise joint control.




11. MINERAL PROPERTIES
31 Dec31 Dec31 Dec
202120202019
US$’000US$’000US$’000
Cost
At the beginning and end of the year745,092 745,092 745,092 
Amortisation
At the beginning of the year(379,039)(340,660)(290,613)
Charge for the year(31,172)(38,379)(50,047)
At the end of the year(410,211)(379,039)(340,660)
Net book value334,881 366,053 404,432 
 31 Dec 2019
 31 Dec 2018
 31 Dec 2017
 $’000
 $’000
 $’000
Cost     
At the beginning and end of the year745,092
 745,092
 745,092
Amortisation     
At the beginning of the year(290,613) (225,975) (168,556)
Charge for the year(50,047) (64,638) (57,419)
At the end of the year(340,660) (290,613) (225,975)
      
Net book value404,432

454,479

519,117


Mineral properties represent the amounts attributable to licence interest on the purchase of Moto Goldmines Limited (Moto) in 2009. The balance has been amortised over the life of mine on a unit of production basis since the Group commenced commercial production on 1 October 2013.




12. DEFERRED TAXATION
31 Dec31 Dec31 Dec
202120202019
US$’000US$’000US$’000
Deferred taxation is calculated on temporary differences under the liability method using a tax rate of 30% in respect of the DRC operations.
The movement on deferred taxation is as follows:
At the beginning of the year(89,610)9,647 27,265 
Statement of comprehensive income charge (Refer to Note 9)(107,044)(99,256)(17,618)
At the end of the year(196,654)(89,609)9,647 
Deferred taxation comprise the following:
Tax losses carried forward attributable to accelerated capital allowances285,632 355,742 450,408 
Accelerated capital allowances(482,286)(445,351)(440,761)
Net deferred taxation (liability) / asset(196,654)(89,609)9,647 
 31 Dec 2019
 31 Dec 2018
 31 Dec 2017
 $’000
 $’000
 $’000
Deferred taxation is calculated on temporary differences under the liability method using a tax rate of 30% in respect of the DRC operations.     
The movement on deferred taxation is as follows:     
At the beginning of the year27,265
 43,237
 (11,096)
Statement of comprehensive (charge) / credit(17,618) (15,972) 54,333
At the end of the year9,647

27,265

43,237
Deferred taxation comprise the following:     
Tax losses carried forward attributable to accelerated capital allowances450,408
 477,104
 520,526
Accelerated capital allowances(440,761) (449,839) (477,289)
Net deferred taxation asset / (liability)9,647

27,265

43,237


The Group’s capital allowance pools have no time restriction for utilisation. Refer to Note 3 for an assessment of the utilisation of this deferred tax asset.




F - 113

Table of Contents



13. TRADE AND OTHER RECEIVABLES
31 Dec31 Dec31 Dec
202120202019
US$’000US$’000US$’000
Advances to contractors225 608 1,963 
Trade receivables22,805 1,202 26,580 
Prepayments and other receivables34,302 36,050 31,576 
Loan to SOKIMO (refer Note 26)25,897 23,933 22,090 
TVA receivables163,193 153,674 147,825 
246,422 215,467 230,034 
Less: Non-current portion

Loan to SOKIMO Irefer to Note 26)25,897 23,933 22,090 
Drilling down payment3,417 8,161 — 
Other loans and receivables (including TVA receivables)163,193 153,674 118,897 
192,507 185,768 140,987 
Current portion53,915 29,699 89,047 
 31 Dec 2019
 31 Dec 2018
 31 Dec 2017
 $’000
 $’000
 $’000
Advances to contractors1,963
 3,288
 2,280
Trade receivables26,580
 11,114
 28,295
Prepayments and other receivables28,239
 33,371
 21,544
Loan to SOKIMO (refer note 27)22,090
 20,393
 18,827
Other loans3,337
 2,150
 8,360
TVA receivables147,825
 180,518
 134,514
Hire purchase loans—
 —
 4,465
 230,034

250,834

218,285
Less: Non-current portion     
Loan to SOKIMO22,090
 20,393
 18,827
Other loans and receivables (including TVA receivables)118,897
 117,458
 105,768
Hire purchase loans—
 —
 699
 140,987

137,852

125,294
Current portion89,047

112,982

92,991
31 Dec 2019
31 Dec 2018
31 Dec 2017
$’000
$’000
$’000
Gross hire purchase loans – minimum lease payments:
No later than 1 year—
—
3,766
Later than 1 year and no later than 5 years—
—
699
Later than 5 years—
—
—
Gross investment on hire purchase loans—

—

4,465


The fair values of trade and other receivables classified as loans and receivables are approximate to the carrying value.


The classes within trade and other receivables do not contain impaired assets however TVA receivables and TVA and duties on fuel balances have been discounted with a provision of US$37.357.3 million (2018:(2020: US$50.1 million) (2019: US$37.3 million) (2017: US$20.0 million) recognised and nil (2018: US$20.6 million, 2017: nil) was written off as part of the settlement agreement with the DRC Government.recognised. The credit quality of receivables that are not past due or impaired remains very high. The maximum exposure to credit risk at the reporting date is the faircarrying value of each class of receivable mentioned above. The Company does not hold any collateral as security. Refer to noteNote 22 for further information on the concentration of credit risk.


The terms of payment of trade receivables is less than seven days, advances to contractors 30 days and TVA is recoverable under the Mining Code once submissions are approved. The Group continues to seek recovery of TVA in line with the Mining Code. Judgement exists in assessing recovery of this amount. See noteNote 3 for further detail.


The loan to SOKIMO bears interest at 8% and the loan and interest will be repaid through future dividends..


13.    TRADE AND OTHER RECEIVABLES (CONTINUED)

The hire purchase loans, receivable from a contractor, bear interest at the aggregate of 10% and the Federal Reserve Rate of 0.75%. The hire purchase loans are repayable over 3 years. The hire purchase loans were settled during the financial year 2018, leaving no remaining balance in the current financial year.


The balance of “other loans”“prepayments and other receivables” includes loans to related parties of US$1.51.8 million (2018:(2020: US$ 0.2 million) (2019: US$1.5 million) (2017: US$0.9 million), these. These loans are not required to be paid within 12 months and have no termstherefore been classified as non-current.



F - 114
Table of repayment. All non-current receivables are due after 12 months.Contents


14. INVENTORIES AND ORE STOCKPILES
31 Dec31 Dec31 Dec
202120202019
US$’000US$’000US$’000
Gold on hand4,244 6,878 13,086 
Consumables stores82,417 72,544 64,201 
Ore stockpiles15,744 40,620 62,642 
Gold in process5,546 7,320 7,759 
107,951 127,362 147,688 
Less: Non-current portion

Ore stockpiles— 36,875 52,685 
Current portion107,951 90,487 95,003 
 31 Dec 2019
 31 Dec 2018
 31 Dec 2017
 $’000
 $’000
 $’000
Gold on hand13,086
 4,425
 8,970
Consumables stores64,201
 66,099
 43,728
Ore stockpiles62,642
 44,116
 29,869
Gold in process7,759
 6,906
 3,443
 147,688

121,546

86,010
Less: Non-current portion     
Ore stockpiles52,685
 28,510
 12,779
Current portion95,003

93,036

73,231


All inventory and ore stockpiles are stated at the lower of cost or net realisable value.


Non-current ore stockpiles reflect ore tonnes not planned to be processed within the next 12 months.




15.    SHARE CAPITAL AND PREMIUM


The total authorised number of ordinary shares is 10 000 (2018:(2020: 10 000) (2017:(2019: 10 000) for the total value of US$10 000 (2018:(2020: US$10 000) (2017:(2019: US$10 000). All issued shares are fully paid. The total number of issued shares at 31 December 20192021 was 4 648 shares (2018:(2020: 4 648) (2017:(2019: 4 648).


Barrick Gold (Kibali) Limited (Barrick) and AngloGold Ashanti Limited (AngloGold Ashanti) are joint venture partners and shareholders of Kibali (Jersey) Limited, having acquired all 4 648 outstanding ordinary shares.


Refer to the Consolidated Statements of Changes in Equity on page
31 Dec31 Dec31 Dec
202120202019
US$’000US$’000US$’000
Movement in the number of ordinary shares outstanding:
Balance at 1 January5 5 5 
Shares issued— — — 
Balance at 31 December5 5 5 




Movement in share premium:
Balance at 1 January2,523,612 2,523,612 2,523,612 
Shares issued— — — 
Balance at 31 December2,523,612 2,523,612 2,523,612 

F - 103 for more detail on the annual movement115
Table of share capital and share premium. In 2017, no movement in share capital for the shares issued above is shown due to rounding.

Contents
 31 Dec 2019
 31 Dec 2018
 31 Dec 2017
 $’000
 $’000
 $’000
Movement in the number of ordinary shares outstanding:     
Balance as at 1 January5
 5
 5
Shares issued—
 —
 —
Balance at 31 December5

5

5
      
Movement in share premium     
Balance as at 1 January2,523,612
 2,523,612
 2,493,612
Shares issued—
 —
 30,000
Balance at 31 December2,523,612
 2,523,612
 2,523,612


16.    NON-CONTROLLING INTEREST
31 Dec31 Dec31 Dec
202120202019
31 Dec 2019
 31 Dec 2018
 31 Dec 2017
US$’000US$’000US$’000
$’000
 $’000
 $’000
Balance at 1 January11,668
 7,420
 19,777
Balance at 1 January55,743 23,579 11,668 
Non-controlling interest in results of Kibali Goldmines SA11,911
 4,248
 (12,357)Non-controlling interest in results of Kibali Goldmines SA32,367 32,164 11,911 
Dividend paidDividend paid(20,000)— — 
Balance at 31 December23,579

11,668

7,420
Balance at 31 December68,110 55,743 23,579 
The non-controlling interest represents the 10% interest SOKIMO has in Kibali Goldmines SA, which is a subsidiary of Kibali (Jersey) Limited.


This dividend paid represents the SOKIMO portion of the dividends paid to Moto (Jersey) 2 Limited and subsequently flows through Moto (Jersey) 1 Limited and Kibali (Jersey) Limited.

See summarised financial information for Kibali Goldmines SA at noteNote 21.



17.    LOANS, BORROWINGS AND LEASE LIABILITIES
31 Dec31 Dec31 Dec
202120202019
US$’000US$’000US$’000
Non-current
Lease liabilities41,839 50,457 43,821 
Loan from the Group (refer to Note 26)1,839 — 1,507 
43,678 50,457 45,328 
Current
Lease liabilities13,909 14,674 11,105 
13,909 14,674 11,105 
Total loans and borrowings57,587 65,131 56,433 

 31 Dec 2019
 31 Dec 2018
 31 Dec 2017
 $’000
 $’000
 $’000
Non-current     
Lease liabilities43,821
 27,465
 40,350
Loan – Barrick (refer to note 27)1,507
 1,526
 860
 45,328

28,991

41,210
Current     
Lease liabilities11,105
 11,425
 7,596
 11,105

11,425

7,596
Total loans and borrowings56,433

40,416

48,806



Lease liabilities
The lease liabilities mainly consist of KAS, in respect of the equipment, which has been transferred to the Group under a previous instalment sale agreement, as well as leases related to the oxygen plant and other minor plant components. Refer to noteNote 10 and noteNote 20 for lease asset disclosures and further details on the lease liabilities respectively.


Loan -– Barrick
Barrick, a joint venture partner and operator of the Kibali gold mine, incurs management fees and other expenses as part of its role as operator of the mine on behalf of the Group. The loan bears no interest and has no fixed terms of repayment.





F - 116

Table of Contents

18.    PROVISION FOR REHABILITATION
31 Dec31 Dec31 Dec
202120202019
US$’000US$’000US$’000
Balance at 1 January29,167 25,516 23,640 
Unwinding of discount485 376 531 
Change in estimates(26)3,275 2,369 
Total rehabilitation29,626 29,167 26,540 
Current rehabilitation liability600 (803)(1,024)
Balance at 31 December

C
29,026 28,364 25,516 
 31 Dec 2019
 31 Dec 2018
 31 Dec 2017
 $’000
 $’000
 $’000
Balance at 1 January23,640
 23,244
 21,163
Unwinding of discount531
 591
 529
Change in estimates2,369
 (195) 1,552
Balance at 31 December26,540

23,640

23,244
      
Current rehabilitation liability(1,024) —
 —
Balance at 31 December25,516
 23,640
 23,244


The provisions for rehabilitation costs include estimates for the effect of inflation and changes in estimates and have been discounted to their present value at 0.5% (2018: 3.0%0% (2020: 0%) (2017: 2.5%(2019: 0.5%) per annum, being an estimate equivalent to the real risk free rate (nominal for 2018 and 2017) determined with reference to US government bonds with maturity dates comparable to the estimated rehabilitation of the mines. Management used 0% due to the negative long-term real interest rates in the U.S. The estimated cash costs of rehabilitation are risk adjusted. Management have based the provision for environmental rehabilitation on standards set by the World Bank, which require an environmental management plan, an annual environmental report, a closure plan, an up-to-date register of plans of the facility, preservation of public safety on closure, carrying out rehabilitation works and ensuring sufficient funds exist for the closure works. However, it is reasonably possible that the estimate of its ultimate rehabilitation liability could change as a result of changes in regulations or cost estimates. The Group is committed to rehabilitation of its property. It makes use of independent environmental consultants for advice and it also uses past experience in similar situations to ensure that the provision for rehabilitation is adequate. The current Life of Mine (LOM) plan based on only Mineral Reserves envisages the majority of the expected outflow to occur at the end of the LOM (Refer to Note 3) which, at the date of these accounts,consolidated financial statements, is 2032 (2018:2034 (2020: 2033) (2019: 2032) (2017: 2032) for the Kibali gold mine.



19.    TRADE AND OTHER PAYABLES
31 Dec31 Dec31 Dec
202120202019
US$’000US$’000US$’000
Trade payables30,764 19,984 20,346 
Payroll and other compensations

7,711 8,839 6,146 
Bank account in overdraft1,656 — — 
Accruals and other payables56,978 38,058 18,968 
97,109 66,881 45,460 
 31 Dec 2019
 31 Dec 2018
 31 Dec 2017
 $’000
 $’000
 $’000
Trade payables20,346
 29,367
 46,060
Payroll and other compensations7,170
 3,171
 1,908
Bank account in overdraft—
 36
 12,762
Accruals and other payables18,968
 27,196
 43,903
 46,484

59,770

104,633


Accruals and other payables include retention, in respect of contracts with suppliers, of US$1.20.5 million (2018:(2020: US$1.90.2 million) (2017:(2019: US$8.31.2 million).


Trade and other payables are all due within 120 days.






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20.    LEASES


On adoption of IFRS 16 on 1 January 2019, the Group recognised right-of-use assets and lease liabilities in relation to leases of mining equipment and planplant equipment, which had previously been classified as operating leases.


Right of use assets
Description31 Dec 2021 US$’00031 Dec 2020 US$’00031 Dec 2019 US$’000
Carrying amount – beginning of the year46,175 26,503 20,766 
Additions6,519 28,389 10,994 
Impact of modifications3,235 — — 
Depreciation(10,480)(8,717)(5,257)
Carrying value – end of year45,449 46,175 26,503 

The right of use asset is measured under the cost model

Lease Liabilities
Description31 Dec 2021 US$’00031 Dec 2020 US$’00031 Dec 2019 US$’000
As at 1 January65,131 54,926 54,839 
Additions6,519 28,389 10,994 
Impact of modifications3,235 — — 
Interest expense5,428 4,869 3,153 
Lease payments(24,565)(23,935)(14,263)
Foreign exchange movements— 882 203 
As at 31 December55,748 65,131 54,926 

A number of leases were modified in the current year. Modifications arose from re-negotiating payment terms or the lease length in the year with the supplier(s).

31 Dec 2019
$’000
Right of use assets
Carrying amount - beginning of the year20,766
Additions10,994
Depreciation(5,257)
Carrying value - end of year26,503
The right of use asset is measured under the cost model






Lease Liabilities
As at 1 January 201954,839
Additions10,994
Interest expense3,153




Lease payments(14,263)
Foreign exchange movements203
As at 31 December 201954,926


21.    SEGMENTAL INFORMATION


Operating segments have been identified on the basis of internal reports about components of the Group that are regularly reviewed by the Group’s chief operating decision maker. The operating segments included in the internal reports are determined on the basis of their significance to the Group. In particular, the operating mine is reported as a separate segment. KAS is included within the corporate segment. The Group’s chief operating decision maker is considered by management to be the board of directors. An analysis of the Group’s business segments, excluding intergroup transactions, is set out below. Major customers are not identifiable because all gold is sold through an agent.


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21.    SEGMENTAL INFORMATION (CONTINUED)

Country of operationDRCJersey
US$’000Kibali Goldmines SACorporateIntercompany eliminations and consolidation entriesTotal
Year ended 31 December 2021
Profit and loss
Total revenue1,469,221 — — 1,469,221 
Mining and processing costs excluding depreciation(446,175)— 2,047 (444,128)
Depreciation and amortisation(237,215)(1,911)(4,832)(243,958)
Mining and processing costs(683,390)(1,911)(2,785)(688,086)
Royalties(68,704)— — (68,704)
Exploration and corporate expenditure(4,346)545 (2,047)(5,848)
Other income/(expenses) and JV profit(31,831)(104)— (31,935)
Finance costs(198,660)(1)192,748 (5,913)
Finance income4,099 12,697 (11,178)5,618 
Profit before income tax486,389 11,226 176,738 674,353 
Income tax expense(162,715)(18,000)— (180,715)
Net profit for the year323,674 (6,774)176,738 493,638 
Capital expenditure177,331 — — 177,331 
Total assets3,586,931 3,397,061 (3,346,301)3,637,691 
Total liabilities(2,789,133)(3,336)2,401,743 (390,726)
Year ended 31 December 2020
Profit and loss
Total revenue1,440,328 — — 1,440,328 
Mining and processing costs excluding depreciation(429,949)— 1,122 (428,827)
Depreciation and amortisation(232,804)(2,017)(6,490)(241,311)
Mining and processing costs(662,753)(2,017)(5,368)(670,138)
Royalties(67,547)— — (67,547)
Exploration and corporate expenditure(6,173)(101)— (6,274)
Other income/(expenses) and JV profit(34,322)409 (1,121)(35,034)
Finance costs(195,192)— 188,732 (6,460)
Finance income4,389 12,785 (10,262)6,912 
Profit before income tax478,730 11,076 171,981 661,787 
Income tax expense(157,090)— — (157,090)
Net profit for the year321,640 11,076 171,981 504,697 
Capital expenditure156,831 — — 156,831 
Total assets3,762,098 10,862,319 (11,101,207)3,523,210 
Total liabilities(3,403,586)(7,093,329)10,208,034 (288,881)
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21. SEGMENTAL INFORMATION (CONTINUED)21. SEGMENTAL INFORMATION (CONTINUED)
Country of operationDRC Jersey    Country of operationDRCJersey
US$’000Kibali Corporate 
Intercompany
eliminations
and
consolidation
entries
 TotalUS$’000Kibali Goldmines SACorporateIntercompany eliminations and consolidation entriesTotal
Year ended 31 December 2019       Year ended 31 December 2019
Profit and loss       Profit and loss
Total revenue1,122,940
 —
 —
 1,122,940
Total revenue1,122,940 — — 1,122,940 
Mining and processing costs excluding depreciation(408,001) —
 1,384
 (406,617)Mining and processing costs excluding depreciation(408,001)— 1,384 (406,617)
Depreciation and amortisation(268,736) (1,579) (11,864) (282,179)Depreciation and amortisation(268,736)(1,579)(11,864)(282,179)
Mining and processing costs(676,737)
(1,579)
(10,480)
(688,796)Mining and processing costs(676,737)(1,579)(10,480)(688,796)
Royalties(52,792) —
 —
 (52,792)Royalties(52,792)— — (52,792)
Exploration and corporate expenditure(13,606) (80) —
 (13,686)Exploration and corporate expenditure(13,606)(80)— (13,686)
Other income/(expense) and JV profit(4,610) 177
 (1,384) (5,817)
Other (expenses)/income and JV profitOther (expenses)/income and JV profit(4,610)177 (1,384)(5,817)
Finance costs(196,905) (8) 192,940
 (3,973)Finance costs(196,905)(8)192,940 (3,973)
Finance income2,759
 12,789
 (11,178) 4,370
Finance income2,759 12,789 (11,178)4,370 
Profit before income tax181,049

11,299

169,898

362,246
(Loss)/Profit before income tax(Loss)/Profit before income tax181,049 11,299 169,898 362,246 
Income tax expense(61,934) —
 —
 (61,934)Income tax expense(61,934)— — (61,934)
Net profit for the year119,115

11,299

169,898

300,312
Net (loss)/profit for the yearNet (loss)/profit for the year119,115 11,299 169,898 300,312 
       
Capital expenditure140,876
 —
 —
 140,876
Capital expenditure140,876 — — 140,876 
Total assets3,302,116
 10,330,673
 (10,474,308) 3,158,481
Total assets3,302,116 10,330,673 (10,474,308)3,158,481 
Total liabilities(3,265,246) (6,494,171) 9,611,062
 (148,355)Total liabilities(3,265,246)(6,494,171)9,611,062 (148,355)
       
Year ended 31 December 2018       
Profit and loss       
Total revenue1,041,035
 —
 —
 1,041,035
Mining and processing costs excluding depreciation(444,147) —
 1,407
 (442,740)
Depreciation and amortisation(309,696) (1,744) (18,079) (329,519)
Mining and processing costs(753,843)
(1,744)
(16,672)
(772,259)
Royalties(45,249) —
 —
 (45,249)
Exploration and corporate expenditure(6,084) (70) —
 (6,154)
Other income/(expense) and JV profit12,552
 537
 (1,407) 11,682
Finance costs(191,543) (29) 187,107
 (4,465)
Finance income1,578
 12,980
 (11,178) 3,380
Profit before income tax58,446

11,674

157,850

227,970
Income tax expense(15,972) —
 —
 (15,972)
Net profit for the year42,474

11,674

157,850

211,998
       
Capital expenditure145,696
 —
 —
 145,696
Total assets3,052,902
 8,183,627
 (8,248,066) 2,988,463
Total liabilities(3,135,151) (4,410,200) 7,416,707
 (128,644)
       



21.    SEGMENTAL INFORMATION (CONTINUED)

Year ended 31 December 2017       
Profit and loss       
Total revenue754,852
 —
 —
 754,852
Mining and processing costs excluding depreciation(436,054) —
 1,489
 (434,565)
Depreciation and amortisation(240,346) (2,494) (21,575) (264,415)
Mining and processing costs(676,400) (2,494) (20,086) (698,980)
Royalties(31,913) —
 —
 (31,913)
Exploration and corporate expenditure(7,089) (1,116) —
 (8,205)
Other (expenses)/income and JV profit(54,041) 758
 (1,489) (54,772)
Finance costs(163,730) —
 158,252
 (5,478)
Finance income1,464
 13,861
 (11,178) 4,147
(Loss) /Profit before income tax(176,857) 11,009
 125,499
 (40,349)
Income tax expense54,333
 —
 —
 54,333
Net (loss)/profit for the year(122,524) 11,009
 125,499
 13,984
        
Capital expenditure246,406
 —
 —
 246,406
Total assets2,969,999
 9,514,687
 (9,481,173) 3,003,513
Total liabilities(3,093,485) (5,778,281) 8,693,091
 (178,675)



22.    FINANCIAL RISK MANAGEMENT


In the normal course of its operations, the Group is exposed to gold price, currency, interest rate, credit and liquidity risks. In order to manage these risks, the Group may enter into transactions which make use of on-balance sheet derivatives, but none were entered into in 2019, 20182021, 2020 or 2017.2019. The Group does not acquire, hold or issue derivatives for trading purposes. The Group has developed a risk management process to facilitate, control and monitor these risks.


Foreign exchange and commodity price risk
In the normal course of business, the Group enters into transactions denominated in foreign currencies (primarily Euro, British Pound, South African Rand, Congolese Franc and Australian Dollar). As a result, the Group is subject to exposure from fluctuations in foreign currency exchange rates. In general, the Group does not enter into derivatives to manage these currency risks and none existed in 2019, 20182021, 2020 or 2017.2019. Generally, the Group does not hedge its exposure to gold price fluctuation risk and gold was sold at market spot prices in 2019, 20182021, 2020 and 2017.2019. Gold sales are made in US dollars and do not expose the Group to any currency fluctuation risk. The Group is also exposed to fluctuations in the price of consumables, such as fuel, steel, rubber, cyanide and lime, mainly due to changes in the price of oil, as well as fluctuations in exchange rates.

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22.    FINANCIAL RISK MANAGEMENT (CONTINUED)



 31 Dec 2019
 31 Dec 2018
 31 Dec 2017
 $’000
 $’000
 $’000
Level of exposure of foreign currency risk carrying value of foreign currency balances.
Cash and cash equivalents includes balances denominated in:
     
•    Congolese Franc (CDF)
2,289
 18
 28
•    Euro (EUR)63
 613
 297
•    South African Rand (ZAR)299
 102
 65
•    British Pound (GBP)11
 22
 3
•    Australian Dollar (AUD)10
 —
 402
Trade and other receivables includes balances denominated in:     
•    Congolese Franc (CDF)—
 3
 4
•    Euro (EUR)—
 —
 —
•    South African Rand (ZAR)—
 —
 —
•    British Pound (GBP)—
 —
 —
•    Australian Dollar (AUD)—
 —
 —
Trade and other payables includes balances denominated in:     
•    Euro (EUR)(2,723) (1,277) (284)
•    South African Rand (ZAR)(115) (561) (1,003)
•    British Pound (GBP)(3) (4) (2)
•    Australian Dollar (AUD)(643) (379) (87)
31 Dec 202131 Dec 202031 Dec 2019
$’000$’000$’000
Level of exposure of foreign currency risk carrying value of foreign currency balances.
Cash and cash equivalents includes balances denominated in:
Congolese Franc (CDF)2,189 313 2,289 
Euro (EUR)4 82 63 
South African Rand (ZAR)205 229 299 
British Pound (GBP)199 7 11 
Australian Dollar (AUD)500 418 10 


The Group’s exposure to foreign currency arises where a Company holds monetary assetsTrade and liabilitiesother receivables includes balances denominated in a currency different to the functional currency of the holder of the instrumentforeign currencies, which is the US dollar. The following table shows the impact of a 10% change in the US dollar on profitare not significant.

Trade and equity arising as a result of the revaluation of the Group’s foreign currency financial instruments. The TVA is not a financial instrument under IFRS 7.


22.    FINANCIAL RISK MANAGEMENT (CONTINUED)
 
Closing
exchange rate
 
Effect of 10%
strengthening of US$
on net earnings and equity
   $'000
At 31 December 2019   
•    Euro (EUR)
0.89373
 (272)
•    South African Rand (ZAR)
14.06721
 (12)
At 31 December 2018   
•    Euro (EUR)
0.87306
 (128)
•    South African Rand (ZAR)
14.36232
 (56)
At 31 December 2017   
•    Euro (EUR)0.83382
 (28)
•    South African Rand (ZAR)12.34503
 (100)

The sensitivities are based on financial assets and liabilities held at 31 December 2019 whereother payables includes balances were not denominated in the functional currency of the Group. Theforeign currencies, which are not significant.

There are no sensitivities do not take into account the Group’s income and costs and the results of the sensitivities could change due to other factors suchdisclosed for foreign exchange as changes in the value of financial assets and liabilities as a result of non-foreign exchange influenced factors.these balances are immaterial.


Interest rate and liquidity risk
Fluctuations in interest rates impact on the value of short term cash investments, interest receivable on hire purchase loans and interest payable on financing activities, giving rise to interest rate risk. The Group funds working capital and capital expenditure requirements with operating cash flows. The drawdowns of any funds are subject to the approval of the Annual budget and Business plan by the board of directors.


The Group has in the past been able to actively source financing through shareholder loans. The finance lease entered into bears a fixed rate of interest.


The directors believe that the working capital resources, by way of internal sources and bankingoverdraft facilities, are sufficient to the Group’s currently foreseeable future business requirements.

Amount
$’000		Effective rate
for year
Cash and cash equivalents:
All less than 90 days (2021)1,115,359 0.70%
All less than 90 days (2020)944,233 0.75%
All less than 90 days (2019)452,692 0.88%


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Amount
$’000

Effective rate
for year
Cash and cash equivalents:  
All less than 90 days (2019)452,692
0.88%
All less than 90 days (2018)123,931
0.99%
All less than 90 days (2017)3,288
0.08%


22.    FINANCIAL RISK MANAGEMENT (CONTINUED)

Concentration of credit risk
In normal circumstances, the Group’s cash balances do not give rise to a concentration of credit risk because it endeavours to deal with a variety of major financial institutions wherever possible. For cash and equivalents, credit risk exposure equals the carrying amount on the balance sheet, net of any overdraft positions. To mitigate our inherent exposure to credit risk we maintain policies to limit the concentration of credit risk, review counterparty creditworthiness on a monthly basis, and ensure liquidity of available funds. Where possible, our cash and equivalents are held with AAA rated financial institutions. Due to the Group’s current inabilitydifficulties to repatriate as a result of the new mining code, a large portion of cash is held with lower rated financial institutions, however measures have been initiated and all avenues are being considered to reallocate the deposits to banks with higher ratings in order to manage the credit risk exposure, andexposure. All cash balances under the effectCompany’s control or joint control are free from assignment or other charges. Cash held in banks in the DRC by Kibali is subject to administrative steps prior to repatriation. At year-end, the Group had US$1 075 million (2020: US$ 888 million) of cash in country, an increase of US$187.2 million year on year. Management further assessed any expected credit losses, iswhich was considered immaterial. Historically, customer defaults have not had a significant impact on our operating results or financial position.In forming this assessment, the Company considered the history of the banking relationships, knowledge of the DRC economy and credit rating reports for the DRC banks to evaluate liquidity and any indications of increased credit risk associated with the institutions.

22.    FINANCIAL RISK MANAGEMENT (CONTINUED)


The Group applies IFRS 9 to measure expected credit losses for receivables and loans including other investments in joint ventures and loans to non-controlling interests, these are regularly monitored and assessed. Receivables are impaired when it is probable that amounts outstanding are not recoverable as set out in the accounting policy note for receivables. Gold doré, the Group’s principal product, is produced in the DRC. The gold doré is refined and sold through the largest accredited gold refinery in the world. Credit risk is further managed by regularly reviewing the financial statements of the refinery. Further, the Group is not exposed to significant credit risk on gold sales, as cash is received within a few days of the sale taking place. While not a financial asset for IFRS 7, included in receivables is a TVA balance (including recoverable TVA on fuel duty and after discounting provisions)
of US$147.8163.2 million (2018:(2020: US$180.5153.7 million; 2017:2019: US$134.5147.8 million) that was past due. Refer to noteNote 3. This could result in credit risk for the Group.

22.    FINANCIAL RISK MANAGEMENT (CONTINUED)


Capital risk management
The Group’s objectives when managing capital are to safeguard its ability to continue as a going concern in order to provide future returns for shareholders and benefits for other stakeholders and to maintain an optimal capital structure to reduce the cost of capital. In order to maintain or adjust the capital structure, the Group issue new shares (by way of funding from the joint venture partners) or will make use of intercompany loans. The Group monitors capital on the basis of the gearing ratio. This ratio is calculated as net borrowings, finance lease liabilities and trade and other payables (less cash) divided by total capital. Total capital is calculated as equity, as shown in the statement of financial position, plus net borrowings, finance lease liabilities and trade and other payables (less cash). This measure may differ to other companies.



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 31 Dec 2019
 31 Dec 2018
 31 Dec 2017
 $’000
 $’000
 $’000
Capital risk management     
Borrowings and trade and other payables102,917
 100,186
 153,439
Less: cash and cash equivalents(452,692) (123,931) (3,288)
Net borrowings, trade and other payables(349,775) (23,745) 150,151
      
Total equity3,010,126
 2,859,819
 2,824,838
Total capital2,660,351
 2,836,074
 2,974,989
Gearing ratio-13 % -1 % 5%


22.    FINANCIAL RISK MANAGEMENT (CONTINUED)

31 Dec 202131 Dec 202031 Dec 2019
$’000$’000$’000
Capital risk management
Borrowings, trade and other payables and lease liabilities (Note 17 and 19)154,696 132,012 102,917 
Less: cash and cash equivalents(1,115,359)(944,233)(452,692)
Net borrowings, trade and other payables(960,663)(812,221)(349,775)
Total equity3,246,965 3,234,329 3,010,126 
Total capital(4)
2,286,302 2,422,911 2,660,351 
Gearing ratio(42)%(33)%(13)%

Maturity analysis
The following table analyses the Group’s financial liabilities into the relevant maturity groupings based on the remaining period from the Statement of Financial Position to the contractual maturity date.
Trade and
other
payables		BorrowingsExpected
Future
interest
payments
$'000$'000$'000
At 31 December 2021
Financial liabilities
Within 1 year in demand97,109 11,502 2,407 
Later than 1 year and no later than 5— 39,649 4,029 
After 5 years— — — 
Total97,109 51,151 6,436 
At 31 December 2020
Financial liabilities
Within 1 year in demand66,881 12,121 2,553 
Later than 1 year and no later than 5— 50,340 117 
After 5 years— — — 
Total66,881 62,461 2,670 
At 31 December 2019
Financial liabilities
Within 1 year in demand45,460 9,075 2,030 
Later than 1 year and no later than 5— 42,955 2,373 
After 5 years— — — 
Total45,460 52,030 4,403 
 
Trade and
other
payables

 Borrowings
 
Expected
Future
interest
payments

 $'000 $'000 $'000
At 31 December 2019     
Financial liabilities     
Within 1 year in demand46,484
 11,105
 2,030
Later than 1 year and no later than 5—
 45,328
 2,373
After 5 years—
 —
 —
Total46,484
 56,433
 4,403
At 31 December 2018     
Financial liabilities     
Within 1 year in demand59,770
 11,425
 2,966
Later than 1 year and no later than 5—
 28,991
 5,780
After 5 years—
 —
 127
Total59,770
 40,416
 8,873
At 31 December 2017     
Financial liabilities     
Within 1 year in demand104,633
 7,596
 3,345
Later than 1 year and no later than 5—
 41,210
 6,012
After 5 years—
 —
 305
Total104,633
 48,806
 9,662




23.    FAIR VALUE OF FINANCIAL INSTRUMENTS

The following table shows the carrying amounts and the fair values of the Group’s FVOCI financial instruments outstanding at 31 December 2019, 2018 and 2017. The fair value of a financial instrument(1) Total capital is definedcalculated as the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.


   
Carrying
amount

 Fair value
   $'000
 $'000
As at 31 December 2019     
Categorised as level 1¹     
Investment marketable securitiesFVOCI 3
 3
As at 31 December 2018     
Categorised as level 1¹     
Investment marketable securitiesFVOCI 9
 9
As at 31 December 2017     
Categorised as level 1¹     
Investment marketable securitiesFVOCI 26
 26

No derivative financial instruments currently exist.

¹Level 1: fair values are derived from quoted market prices for identical assets from an active market for which an entity has immediate access.

Estimation of fair values
Trade and other receivables,total equity less net borrowings trade and other payables cash and cash equivalents, bank overdrafts, loans to and from related parties

The carrying amounts are a reasonable estimate of the fair values because of the short maturity of such instruments or their interest bearing nature.

Long term and short term borrowings

The carrying amount is a reasonable estimate of the fair value because of the short maturity of such instruments, interest bearing nature and other terms of the agreement.




24.    CASH FLOW FROM OPERATING ACTIVITIES AND NON-CASH ITEMS
F - 123
 31 Dec 2019
 31 Dec 2018
 31 Dec 2017
 $’000
 $’000
 $’000
Profit/(loss) before income tax362,246
 227,970
 (40,349)
Adjustments for:     
Interest received (note 8)(4,370) (3,380) (4,147)
Finance cost (note 8)3,973
 3,874
 4,949
Share of profits of equity accounted joint venture (Note 27)(34) (132) (113)
Depreciation and amortisation (Note 6)282,180
 329,519
 264,415
Foreign exchange (gain)/loss1,458
 (53,747) 38,469
Write off on TVA under settlement agreement—
 20,584
 —
Movement in discounting provision on TVA (note 5)—
 17,309
 12,177
Unwinding of rehabilitation provision531
 591
 529
 645,984
 542,588
 275,930
Effects of changes in operating working capital items     
- Receivables3,467
 (12,877) (69,741)
- Inventories(26,142) (35,536) 30,266
- Trade and other payables(7,878) (20,967) (11,026)
Cash generated from operations615,431
 473,208
 225,429
Table of Contents


23.    CASH GENERATED BY OPERATIONS
31 Dec31 Dec31 Dec
202120202019
US$’000US$’000US$’000
Profit before income taxation674,353 661,787 362,246 
Adjustments for:
Finance income (Note 8)(5,618)(6,912)(4,370)
Finance cost (Note 8)5,913 6,460 3,973 
Share of profits of equity accounted joint venture(103)(239)(34)
Depreciation and amortisation (Note 6)
243,958 241,311 282,180 
Foreign exchange loss / (gain) (Note 5)(741)(2,035)1,458 
TVA write off agreement (Note 5)— 1,462 — 
Movement in discounting provision on TVA (Note 5)8,351 12,740 — 
926,113 914,574 645,453 
Effects of changes in operating working capital items
Receivables(26,214)2,167 3,998 
Inventories19,412 20,325 (26,142)
Trade and other payables24,933 19,804 (7,878)
Cash generated by operations944,244 956,870 615,431 



Other non-cash items include changes in rehabilitation provision estimates of US$0.5 million (2020: US$2.5 million) (2019: US$1.8 million (2018:million) and TVA offsets of nil (2020: US$0.2 4.9 million) (2017:(2019: US$1.640.9 million). Please refer to Note 6.






F - 124
Table of Contents
23. CASH FLOW FROM OPERATIONS (CONTINUED)

Cash flows relating to loans and borrowings within financing activities comprises the following movements in finance lease liabilities:

Non-currentCurrentTotal
loans andloans and
borrowingsborrowings
US$’000US$’000US$’000
At 1 January 201927,465 11,425 38,890 
IFRS 16 lease liabilities additions15,246 703 15,949 
Cash flows:
Lease repayments— (14,263)(14,263)
Non cash flows:
Loans and borrowings classified as non-current at 31 December 2019(7,162)7,162 — 
Loan from Group (Note 17)1,507 1,507 
Interest and capital accrued— 3,356 3,356 
Lease additions8,272 2,722 10,994 
At 31 December 2019



45,328 11,105 56,433 
At 1 January 202045,328 11,105 56,433 
Cash flows:
Lease repayments— (23,935)(23,935)
Non cash flows:
Loans and borrowings classified as non-current at 31 December 2020(15,825)15,825 — 
Interest and capital accrued— 5,818 5,818 
IFRS 16 lease additions20,954 5,861 26,815 
At 31 December 2020 1



50,457 14,674 65,131 
At 1 January 202150,457 14,674 65,131 
Cash flows:
Lease repayments— (24,565)(24,565)
Non cash flows:
Loans and borrowings classified as non-current at 31 December 2021(17,603)17,603 — 
Loan from Group (Note 17)1,839 — 1,839 
Interest and capital accrued— 5,428 5,428 
IFRS 16 lease additions and modifications8,985 769 9,754 
At 31 December 2021



43,678 13,909 57,587 
1 Refer to Note 20 and the consolidated cash flow statements on page F-91.


24.    CASH FLOW FROM OPERATING ACTIVITIES AND NON-CASH ITEMS (CONTINUED)

 Non-current loans and borrowings
 Current loans and borrowings
 Total
 $’000
 $’000
 $’000
At 1 January 201746,707
 8,310
 55,017
Cash flows:    
Lease repayments—
 (7,228) (7,228)
Non cash flows:     
Loans and borrowings classified as non-current at 31 December 2016(6,357) 6,357
 —
Interest and capital accrued—
 157
 157
At 31 December 201740,350
 7,596
 47,946
At 1 January 201840,350
 7,596
 47,946
Cash flows:     
Lease repayments—
 (9,579) (9,579)
Non cash flows:     
Loans and borrowings classified as non-current at 31 December 2017(12,885) 12,885
 —
Interest and capital accrued—
 523
 523
At 31 December 201827,465
 11,425
 38,890
At 1 January 201927,465
 11,425
 38,890
IFRS 16 lease liability additions15,246
 703
 15,949
Cash flows:     
Lease repayments—
 (14,263) (14,263)
Non cash flows:     
Loans and borrowings classified as non-current at 31 December 2018(7,162) 7,162
 —
Interest and capital accrued  3,356
 3,356
Lease additions8,272
 2,722
 10,994
At 31 December 2019(1)
43,821
 11,105
 54,926

(1)
Refer to note 20 and the consolidated cash flow statements on page F - 104.


25.    COMMITMENTS AND CONTINGENT LIABILITIES
31 Dec31 Dec31 Dec
202120202019
US$’000US$’000US$’000
Capital expenditure contracted for at statement of financial
position date but not yet incurred is:
Property, plant and equipment28,157 22,227 29,593 

F - 125
 31 Dec 2019
 31 Dec 2018
 31 Dec 2017
 $’000
 $’000
 $’000
Capital expenditure contracted for at statement of financial position date but not yet incurred is:     
Property, plant and equipment29,593
 22,687
 19,108
Table of Contents






24. COMMITMENTS AND CONTINGENT LIABILITIES (CONTINUED)
26.
At the end of January and in early February 2022, Kibali Goldmines SA, which owns and operates the Kibali gold mine in the Democratic Republic of the Congo, received fifteen claims from the Direction Générale des Douanes et Accises (“Customs Authority”) concerning customs duties. The Customs Authority claims that incorrect import duty tariffs have been applied to the importation of certain consumables and equipment for the Kibali gold mine. In addition, they claim that the exemption available to Kibali Goldmines SA, which was granted in relation to the original mining lease, no longer applies. Finally, the Customs Authority claims that a service fee paid on the exportation of gold was paid to the wrong government body. The claims, including substantial penalties and interest, total $339 million.

The Company has examined the Customs Authority claims and concluded that they are without merit, as they seek to challenge established customs practices which have been accepted by the Customs Authority for many years and, where relevant, are in line with ministerial instruction letters. No amounts have been recorded for any potential liability arising from these claims as the Company cannot reasonably predict the outcome. The Company will vigorously defend its position that the Customs Authority claims are unfounded.

F - 126
Table of Contents



25.     INVESTMENT IN JOINT VENTURE


Set out below is the summarised financial information for KAS which is accounted for using the equity method (amounts stated at 100% before intercompany eliminations).

31 Dec31 Dec31 Dec
202120202019
US$’000US$’000US$’000
Summarised statement of financial position
Current assets
Cash and cash equivalents3,485 1,630 3,384 
Other current assets (excluding cash)3,675 1,703 3,059 
Total current assets7,160 3,333 6,443 
Other current liabilities (including trade payables)(1,846)(2,149)(6,564)
Total current liabilities(1,846)(2,149)(6,564)
Non-current
Assets38,148 44,552 42,510 
Financial liabilities(43,249)(45,248)(42,248)
Net assets213 488 141 
Summarised statement of comprehensive income
Operating profit/(loss)3 268 (120)
Interest income3,167 3,562 3,185 
Interest expense(2,965)(3,352)(2,998)
Profit and total comprehensive income for the period205 478 67 
Dividends received from joint venture480 131 156 
 31 Dec 2019
 31 Dec 2018
 31 Dec 2017
 $’000
 $’000
 $’000
Summarised statement of financial position     
Current assets     
Cash and cash equivalents3,384
 3,125
 2,039
Other current assets (excluding cash)5,643
 1,988
 1,649
Total current assets9,027
 5,113
 3,688
Other current liabilities (including trade payables)(6,014) (1,523) (1,505)
Total current liabilities(6,014) (1,523) (1,505)
Non-current     
Assets39,919
 39,431
 48,065
Financial liabilities(42,248) (42,248) (49,739)
Net assets684

773

509
Summarised statement of comprehensive income     
Operating loss(120) (21) (39)
Interest income3,185
 3,440
 3,959
Interest expense(2,998) (3,155) (3,695)
Profit and total comprehensive income for the period67

264

225
Dividends received from joint venture156
 —
 —
Reconciliation of the summarised financial information presented to the carrying amount of the group’s interest in KAS     
Opening net assets 1 January773
 509
 284
Profit for the period67
 264
 225
Dividends received(156) —
 —
Closing Net assets at 31 December684

773

509
Interest in joint venture at 50.1%343
 387
 255
Profit for the period at 50.1%34
 132
 113
      
Funding classified as long term debt by joint venture recorded in ‘other investments in joint ventures’20,795
 21,479
 25,577
Carrying value21,138

21,866

25,832
Reconciliation of the summarised financial information presented to the carrying amount of the Group's interest in KAS
Opening net assets at 1 January488 141 230 
Profit for the period205 478 67 
Dividends received(480)(131)(156)
Closing net assets at 31 December213 488 141 
Interest in joint venture at 50.1%107 244 71 

Profit for the period at 50.1%
103 239 34 




Funding classified as long term debt by joint venture recorded in ‘other investments in joint ventures’
21,669 23,096 21,067 
Carrying value21,776 23,340 21,138 


The loan to KAS bears interest at 8% and has no fixed repayment terms. Joint control is provided through a joint venture agreement.





F - 127

Table of Contents
27.

26.    RELATED PARTIES AND RELATED PARTY TRANSACTIONS
Related partiesNature of relationship
Barrick Gold (Holdings) LimitedUltimate Joint Venture partner
AngloGold AshantiUltimate Joint Venture partner
AngloGold Ashanti Holdings plcJoint Venture partner
Barrick Gold (Kibali) LimitedJoint Venture partner
Barrick Gold (Congo) SPRLEntity under common control (subsidiary of Barrick)
Société des Mines de Loulo SAEntity under common control (subsidiary of Barrick)
Société des Mines de Tongon SAEntity under common control (subsidiary of Barrick)
Société des Mines de Gounkoto SAEntity under common control (subsidiary of Barrick)
Société des Mines de Morila SAEntity under common control (subsidiary of Barrick)
Rand Refinery (Pty) LimitedAssociate of AngloGold Ashanti
SOKIMOGovernment interest in Kibali
KASJoint Venture
Isiro (Jersey) LimitedJoint Venture of Barrick
KGL Isiro SARL
Subsidiary of Isiro (Jersey) Limited





31 Dec31 Dec31 Dec
202120202019
31 Dec 2019
 31 Dec 2018
 31 Dec 2017
US$’000US$’000US$’000
$’000
 $’000
 $’000
Related party transactions     Related party transactions
Dividend paid to SokimoDividend paid to Sokimo20,000 — — 
Management fee paid to Barrick Gold (Holdings) Ltd4,563
 4,478
 4,385
Management fee paid to Barrick Gold (Holdings) Ltd6,216 4,668 4,563 
Refining fees to Rand Refinery (Pty) Limited3,444
 3,957
 3,632
Refining fees to Rand Refinery (Pty) Limited4,789 5,818 3,444 
Interest received from SOKIMO1,697
 1,446
 1,097
Interest received from SOKIMO2,291 1,843 1,697 
Shareholders interest received from KAS1,294
 1,578
 1,846
Shareholders interest received from KAS1,469 1,494 1,294 
Interest incurred to KAS on the finance lease liability2,727
 3,359
 3,931
Interest incurred to KAS on the finance lease liability3,128 3,181 2,727 
Amounts included in trade and other receivables owing by related parties     
Amounts included in trade and other receivables owed from / (owing to) related partiesAmounts included in trade and other receivables owed from / (owing to) related parties
Rand Refinery (Pty) Limited26,580
 11,114
 30,457
Rand Refinery (Pty) Limited20,832 1,202 26,580 
Loan to SOKIMO22,090
 20,393
 18,827
Loan to SOKIMO25,897 23,933 22,090 
Loan to Barrick Gold (Congo) SPRL1,198
 616
 182
Loan to Barrick Gold (Congo) SPRL1,988 1,569 1,198 
Loan to Barrick Gold (Holdings) Ltd—
 —
 —
Loan to KGL Isiro SARL163
 97
 64
Loan to KGL Isiro SARL

202 172 163 
Loan to Société des Mines de Loulo SA3
 22
 4
Loan to Société des Mines de Tongon SA133
 32
 41
Loan (from) / to Société des Mines de Loulo SALoan (from) / to Société des Mines de Loulo SA— (1)3 
Loan (from) / to Société des Mines de Tongon SALoan (from) / to Société des Mines de Tongon SA(29)(254)133 
Loan to Société des Mines de Gounkoto SA—
 —
 —
Loan to Société des Mines de Gounkoto SA1 1 — 
Loan to Société des Mines de Morila SA—
 45
 —
Amounts included in other investment in joint venture owing by related parties     Amounts included in other investment in joint venture owing by related parties
Loan to KAS20 792
 21,479
 25,557
Loan to KAS21,669 23,096 21,067 
Amounts included in loans and borrowings owed to related parties     
Loan from Barrick Gold (Holdings) Ltd(1,507) (1,526) (860)
Loan to/(from) Barrick Gold (Holdings) LtdLoan to/(from) Barrick Gold (Holdings) Ltd(1,839)186 (1,507)
Finance lease liability with KAS(39,681) (38,890) (47,946)Finance lease liability with KAS(35,187)(41,524)(39,681)


SOKIMO has a 10% interest in Kibali Goldmines SA, a subsidiary of the group.Group.


The key management personnel are considered to be the board of Kibali and Kibali (Jersey) Limited. None of the directors receive any remuneration for performing their director duties.

F - 128
Table of Contents




27.26. RELATED PARTIES AND RELATED PARTY TRANSACTIONS (CONTINUED)


Rand Refinery (Pty) Limited (Rand Refinery) is an associate of AngloGold Ashanti. Kibali Goldmines SA has incurred refining costs of US$3.44.8 million in the year (2018:(2020: US$3.95.8 million) (2017:(2019: US$3.63.4 million). US$1 123m (2018:469 million (2020: US$1 041440 million) (2017:(2019: US$7551 123 million) of gold and silver was sold by Rand Refinery under the contract with Kibali Goldmines SA in which Rand Refinery is the stated agent.


It is the obligation of the joint venture parties, Barrick and AngloGold Ashanti, (joint venture partners) to fund the Group for operating costs, capital costs and other costs in proportion to their respective percentage interests in Kibali (Jersey) Limited. These costs are in accordance with the Kibali Joint Venture Agreement.


The finance lease liability due to KAS is in respect of the equipment which has been transferred to the Group under an instalment sale agreement. Kibali (Jersey) Limited has a 50.1% shareholding in KAS.

Refer to notesNotes 13 and 17 for the details of loans to and from related parties.




28.
27.    SUBSIDIARIES AND NON-CONTROLLING INTERESTS


The consolidated financial statements include the accountsresults of the Company and all of its subsidiaries and jointly controlled entities at 31 December 2019.2021. The Company, the principal subsidiaries and their interests are:




% of interest
Country of
incorporation and
residence
CompanyInterestincorporation
and
residence
CompanyKibali (Jersey) LtdJersey
SubsidiaryBorder Energy East Africa (Pty) Ltd100100%%Uganda
SubsidiaryMoto (Jersey) 1 Ltd100100%%
Jersey



SubsidiaryKibali 2 (Jersey) Ltd100100%%Jersey
Subsidiary0858065 B.C. Limited100100%%Canada
SubsidiaryMoto Goldmines Australia Pty Ltd100100%%Australia
SubsidiaryKibali Goldmines SA9090%%DRC
Jointly controlled entityKAS 1 Limited50.150.1%%Jersey


29.    
F - 129
Table of Contents
28.SUBSEQUENT EVENTS

New diseases and epidemics may adversely impact Kibali’s business
In December 2019,February 2022 geopolitical tensions between Ukraine and Russia increased which led to a novel strain of coronavirus knownfull-scale armed conflict. In turn this led to disruption and volatility in the financial and capital markets, as COVID-19 surfaced in Wuhan, China, and has spreadwell as impacting global supply chains. Governments around the world with resulting businesshave imposed various sanctions on Russian individuals and social disruption. COVID-19 was declaredcorporations which has led to a worldwide pandemicsharp increase in energy and commodity prices.

The Company has considered the impact on key inputs in its life of mine, budget and impairment models. Such impacts may be felt directly through purchases of diesel and natural gas as well as through higher transportation costs, and indirectly through higher costs of other products and services which rely on energy as an input cost. Management note that such increases in costs can be absorbed by the World Health Organizationcompany given the substantial headroom in the aforementioned models coupled with the fact that gold prices tend to increase in times of economic instability.

Management have further considered the wider impact of sanctions on March 11, 2020. The speed and extent of the spread of COVID-19, and the duration and intensity of resulting business disruption and related financial and social impact, are uncertain, and such adverse effects may be material. Kibali could be negatively affected if personnel including management and personnel at its mine are quarantined as the result of, or in order to avoid, exposure to a contagious illness. In addition, the Chinese market is a significant source of global demand for commodities. The coronavirus and efforts to contain it may have a significant effect on Chinese commodity prices and demand and potentially broader impacts on our supply chain and do not believe it deals with any sanctioned customers or suppliers.

No other significant subsequent events requiring disclosure or adjustment occurred other than the global economy, which could have a material adverse effect on Kibali’s cash flows, earnings, results of operations and financial position. While governmental agencies and private sector participants will seek to mitigate the adverse effects of this coronavirus, which may include such measures as heightened sanitary practices, telecommuting, quarantine, curtailment or cessation of travel, and other restrictions, and the medical community is seeking to develop vaccines and other treatment options, the efficacy of such measures is uncertain.customs claim in Note 24.



29.    SUBSEQUENT EVENTS (CONTINUED)

The extent to which COVID-19 (or any other disease, epidemic or pandemic) impacts business activity or financial results will depend on future developments, which are highly uncertain and cannot be predicted, including new information which may emerge concerning the coronavirus and the actions required to contain this coronavirus or treat its impact, among others.


30.    OTHER INFORMATION


The Company is a private company limited by shares, incorporated in Jersey with its registered office at 3rd Floor, Unity Chambers, 28 Halkett Street, St Helier, Jersey, JE2 4WJ, Channel Islands. The Company’s principal activity is the operation of the Kibali gold mine in the DRC.



F - 130

Table of Contents
Exhibits to Form 20-F
Exhibit NumberDescriptionRemarks
Exhibit 19.1Incorporated by reference to Exhibit 19.1 to AngloGold Ashanti Limited’s reportAnnual Report on Form 6-K20-F (No. 001-14846) furnished tofiled with the Securities and Exchange Commission on 19 May 201726 March 2021
Exhibit 19.2.1Incorporated by reference to Exhibit 4.2 to AngloGold Ashanti Limited and AngloGold Ashanti Holdings plc’s Registration Statement on Form F-3 (Nos. 333-182712 and 333-182712-02) filed with the Securities and Exchange Commission on 17 July 2012
Exhibit 19.2.2Incorporated by reference to Exhibit 99(C) to AngloGold Ashanti Limited and AngloGold Ashanti Holdings plc’s Registration Statement on Form 8-A (Nos. 001-14846 and 001-34725) filed with the Securities and Exchange Commission on 28 April 2010
Exhibit 19.2.3Incorporated by reference to Exhibit 99(C)4.1 to AngloGold Ashanti Limited and AngloGold Ashanti Holdings plc’s Registration Statementreport on Form 8-A6-K (Nos. 001-14846 and 001-34725) filed with the Securities and Exchange Commission on 28 April 20101 October 2020
Exhibit 19.2.4Incorporated by reference to Exhibit 4.1 to
AngloGold Ashanti Limited’sLimited and AngloGold
Ashanti Holdings plc’s report on Form 6-K (No. 001-14846) furnished to
(Nos. 001-14846 and 001-34725) filed with the
Securities and Exchange Commission on 30 July 201222
October 2021
Exhibit 19.2.5Filed herewith
Exhibit 19.2.6Incorporated by reference to Exhibit 1 to AngloGold Ashanti Limited’s Registration Statement on Form F-6 (No. 333-159248) filed on 14 May 2009
Exhibit 19.2.6
Description of Securities Registered under Section 12 of the Securities Exchange Act of 1934
Incorporated by reference to AngloGold Ashanti Limited's report on Form 6-K (No. 001-14846) furnished towith the Securities and Exchange Commission on 25 March 202014 May 2009
Exhibit 19.4.1.1Incorporated by reference to AngloGold Ashanti Limited’s report on Form 6-K (No. 001-14846) furnished to the Securities and Exchange Commission on 10 April 2013
Exhibit 19.4.1.2Incorporated by reference to AngloGold Ashanti Limited’s report on Form 6-K (No. 001-14846) furnished to the Securities and Exchange Commission on 10 April 2013
Exhibit 19.4.1.3




Incorporated by reference to AngloGold Ashanti Limited’s report on Form 6-K (No. 001-14846) furnished to the Securities and Exchange Commission on 18 May 2017
Exhibit 19.4.4.2
ZAR Revolving Credit Agreement dated 3 November 2017 with AngloGold Ashanti Limited as borrower and The Standard Bank of South Africa Limited as facility agent and lender

Incorporated by reference to AngloGold Ashanti Limited’s report on Form 6-K (No. 001-14846) furnished to the Securities and Exchange Commission on 13 March 2018


Exhibit Number19.4.4.1
DescriptionRemarks
Exhibit 19.4.4.3

Incorporated by reference to AngloGold Ashanti Limited’s report on Form 6-K (No. 001-14846) furnished to the Securities and Exchange Commission on 15 March 2018

Exhibit 19.4.4.4

Syndicated Multi-currency Revolving Credit Facility agreement dated 23 October 2018 with AnglogoldAngloGold Ashanti Holdings plc and AnglogoldAngloGold Australia Limited as borrowers and the Bank of Novia Scotia as facility agent and the financial institutions party thereto as lenders
Incorporated by reference to AngloGold Ashanti Limited’s report on Form 6-K (No. 001-14846) furnished to the Securities and Exchange Commission on 25 February 2019
E - 1
Table of Contents

Exhibit NumberDescriptionRemarks
Exhibit 19.4.4.5

Multi-currency Revolving Credit Facility agreement as amended and restated on 29 January 2019 with Geita Gold Mining Limited as borrower and Nedbank Limited as lender
Incorporated by reference to AngloGold Ashanti Limited’s report on Form 6-K (No. 001-14846) furnished to the Securities and Exchange Commission on 20 March 2019

Exhibit 19.4.5.1
Exhibit 19.4.4.6
Revolving Credit Facility agreement as amended and restated on 27 February 2019 with Sociètè AngloGold Ashanti de Guinee S.A. as borrower and Nedbank Limited as lender.
Incorporated by reference to AngloGold Ashanti Limited's report on Form 6-k (No. 001-14846) furnished to the Securities and Exchange Commission on 25 March 2020
Exhibit 19.4.5.1
Employment contract of Kandimathie Christine Ramon – Chief Financial Officer with effect from 1 October 2014
Incorporated by reference to AngloGold Ashanti Limited’s report on Form 6-K (No. 001-14846) furnished to the Securities and Exchange Commission on 8 October 2014
Exhibit 19.4.5.2
Employment contract of Kelvin Paul Michael Dushnisky -— Chief Executive Officer with(with effect from 1 September 2018 until 31 August 2020)
Incorporated by reference to AngloGold Ashanti Limited’s report on Form 6-K (No. 001-14846) furnished to the Securities and Exchange Commission on 12 February 2019
Exhibit 19.4.5.2
Employment contract of Kandimathie Christine Ramon — Interim Chief Executive Officer (with effect from 1 September 2020 until 31 August 2021) and Chief Financial Officer (with effect from 1 September 2021)
Incorporated by reference to
Exhibit 99.1 to AngloGold Ashanti Limited’s
report on Form 6-K (No. 001-14846) filed with
the Securities and Exchange Commission on 4 May 2021
Exhibit 19.4.5.3
Interim CEO appointment letter of Kandimathie Christine Ramon — Interim Chief Executive Officer (with effect from 1 September 2020 until 31 August 2021)
Incorporated by reference to Exhibit 19.4.5.2
to AngloGold Ashanti Limited’s Annual
Report on Form 20-F (No. 001-14846) filed
with the Securities and Exchange
Commission on 26 March 2021
Exhibit 19.4.5.4
Employment contract of Ian Kramer — Interim Chief Financial Officer (with effect from 1 September 2020 until 31 August 2021)
Incorporated by reference to
Exhibit 99.2 to AngloGold Ashanti Limited’s
report on Form 6-K (No. 001-14846) filed with
the Securities and Exchange Commission on
4 May 2021
Exhibit 19.4.5.5
Interim CFO appointment letter of Ian Kramer — Interim Chief Financial Officer (with effect from 1 September 2020 until 31 August 2021)
Incorporated by reference to Exhibit 19.4.5.3
to AngloGold Ashanti Limited’s Annual
Report on Form 20-F (No. 001-14846) filed
with the Securities and Exchange Commission on 26 March 2021
Exhibit 19.4.5.6
Employment contract of Alberto Calderon — Chief Executive Officer (with effect from 1 September 2021)
Filed herewith
Exhibit 19.4.6
Stock Purchase Agreement dated as of 8 June 2015, among AngloGold Ashanti North America Inc., a Colorado corporation, AngloGold Ashanti USA Incorporated, a Delaware corporation, AngloGold Ashanti (Colorado) Corp., a Delaware corporation, GCGC LLC, a Colorado limited liability company, and Newmont Mining Corporation, a Delaware corporation, and AngloGold Ashanti Limited, a South African public company
Incorporated by reference to AngloGold Ashanti Limited’s report on Form 6-K (No.001-14846) furnished to the Securities and Exchange Commission on 19 February 2016
Exhibit 19.8
List of AngloGold Ashanti Limited subsidiaries
Filed herewith
Exhibit 19.12.1
Certification of Kelvin DushniskyAlberto Calderon as Chief Executive Officer of AnglogoldAngloGold Ashanti Limited, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
Filed herewith
Exhibit 19.12.2
Certification of Christine Ramon as Chief Financial Officer of AngloGold Ashanti Limited, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
Filed herewith
Exhibit 19.13
Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
Filed herewith
Exhibit 19.15.1
Consent of Ernst & Young Inc., independent registered public accounting firm
Filed herewith
E - 2
Table of Contents
Exhibit NumberDescriptionRemarks
Exhibit 19.15.2Filed herewith
Exhibit 19.15.3Filed herewith
Exhibit 19.15.4Incorporated by reference to Exhibit 96.1 to AngloGold Ashanti Limited’s report on Form 6-K (No. 001-14846) filed with the Securities and Exchange Commission on 30 March 2022
Exhibit 19.15.5Incorporated by reference to Exhibit 96.2 to AngloGold Ashanti Limited’s report on Form 6-K (No. 001-14846) filed with the Securities and Exchange Commission on 30 March 2022
Exhibit 19.15.6Incorporated by reference to Exhibit 96.3 to AngloGold Ashanti Limited’s report on Form 6-K (No. 001-14846) filed with the Securities and Exchange Commission on 30 March 2022
Exhibit 19.15.7Incorporated by reference to Exhibit 96.4 to AngloGold Ashanti Limited’s report on Form 6-K (No. 001-14846) filed with the Securities and Exchange Commission on 30 March 2022
Exhibit 19.15.8Incorporated by reference to Exhibit 96.5 to AngloGold Ashanti Limited’s report on Form 6-K (No. 001-14846) filed with the Securities and Exchange Commission on 30 March 2022
Exhibit 19.15.9Incorporated by reference to Exhibit 96.6 to AngloGold Ashanti Limited’s report on Form 6-K (No. 001-14846) filed with the Securities and Exchange Commission on 30 March 2022
Exhibit 19.15.10Incorporated by reference to Exhibit 96.7 to AngloGold Ashanti Limited’s report on Form 6-K (No. 001-14846) filed with the Securities and Exchange Commission on 30 March 2022
Exhibit 19.15.11Incorporated by reference to Exhibit 96.8 to AngloGold Ashanti Limited’s report on Form 6-K (No. 001-14846) filed with the Securities and Exchange Commission on 30 March 2022
Exhibit 19.15.12Incorporated by reference to Exhibit 96.9 to AngloGold Ashanti Limited’s report on Form 6-K (No. 001-14846) filed with the Securities and Exchange Commission on 30 March 2022
Exhibit 19.15.13Incorporated by reference to Exhibit 96.10 to AngloGold Ashanti Limited’s report on Form 6-K (No. 001-14846) filed with the Securities and Exchange Commission on 30 March 2022
Exhibit 19.15.14Incorporated by reference to Exhibit 96.11 to AngloGold Ashanti Limited’s report on Form 6-K (No. 001-14846) filed with the Securities and Exchange Commission on 30 March 2022
Exhibit 19.15.15Incorporated by reference to Exhibit 96.12 to AngloGold Ashanti Limited’s report on Form 6-K (No. 001-14846) filed with the Securities and Exchange Commission on 30 March 2022
Exhibit 19.15.16Incorporated by reference to Exhibit 96.13 to AngloGold Ashanti Limited’s report on Form 6-K (No. 001-14846) filed with the Securities and Exchange Commission on 30 March 2022
Exhibit 19.15.17Incorporated by reference to Exhibit 96.14 to AngloGold Ashanti Limited’s report on Form 6-K (No. 001-14846) filed with the Securities and Exchange Commission on 30 March 2022

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Exhibit NumberDescriptionRemarks
Exhibit 19.15.18Incorporated by reference to Exhibit 96.15 to AngloGold Ashanti Limited’s report on Form 6-K (No. 001-14846) filed with the Securities and Exchange Commission on 30 March 2022
Exhibit 19.15.19Incorporated by reference to Exhibit 96.16 to AngloGold Ashanti Limited’s report on Form 6-K (No. 001-14846) filed with the Securities and Exchange Commission on 30 March 2022
Exhibit 19.15.20Incorporated by reference to Exhibit 96.17 to AngloGold Ashanti Limited’s report on Form 6-K (No. 001-14846) filed with the Securities and Exchange Commission on 30 March 2022
Exhibit 19.15.21Filed herewith
Exhibit 19.17Filed herewith

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EXHIBIT 19.8


PRINCIPAL SUBSIDIARIES AND OPERATING ENTITIES AT 31 DECEMBER 20192021

Shares heldHoldingPercentage held
2021202020212020
Principal subsidiaries and controlled operating entities (1)
AngloGold Ashanti Australia Limited(2)
2257,462,077 257,462,077 I100100 
AngloGold Ashanti Holdings plc65,326,550,917 5,326,550,917D100100 
AngloGold Ashanti USA Incorporated10235 235 D100100 
Operating entities
AngloGold Ashanti Córrego do Sítio Mineração S.A.34,167,084,999 4,167,084,999 I100100 
AngloGold Ashanti (Ghana) Limited(3)
4132,419,585 132,419,585 I100100 
AngloGold Ashanti (Iduapriem) Limited466,270 66,270 I100100 
Cerro Vanguardia S.A.113,875,000 13,875,000 I92.5092.50 
Geita Gold Mining Limited9123,382,772 123,382,772 I100100 
Mineração Serra Grande S.A.31,999,999 1,999,999 I100100 
Société AngloGold Ashanti de Guinée S.A.53,486,134 3,486,134 I8585 
Joint venture operating entities
Kibali (Jersey) Limited(4)
72,324 2,324 I5050 
Société des Mines de Morila S.A.(5)
8— — 
Société d'Exploitation des Mines d'Or de Sadiola S.A.(6)
8— — 
Unincorporated joint operation
Tropicana joint operation2n/an/aI7070 
  Shares heldHoldingPercentage held
2019
2018
 20192018
Principal subsidiaries and controlled operating entities(1)
      
AngloGold Ashanti Australia Limited(2)
2257,462,077
257,462,077
I100100
AngloGold Ashanti Holdings plc65,326,550,917
5,326,550,917
D100100
AngloGold Ashanti USA Incorporated10235
235
D100100
       
Operating entities      
AngloGold Ashanti Córrego do Sítio Mineração S.A.34,167,084,999
4,167,084,999
I100100
AngloGold Ashanti (Ghana) Limited(3)
4132,419,584
132,419,584
I100100
AngloGold Ashanti (Iduapriem) Limited466,270
66,270
I100100
Cerro Vanguardia S.A.113,875,000
13,875,000
I92.5092.50
Geita Gold Mining Limited9123,382,772
123,382,772
I100100
Mineração Serra Grande S.A.31,999,999
1,999,999
I100100
Societé AngloGold Ashanti de Guinée S.A.53,486,134
3,486,134
I8585
       
Joint venture operating entities      
Kibali (Jersey) Limited(4)
72,324
2,324
I5050
Société des Mines de Morila S.A.8400
400
I4040
Société d'Exploitation des Mines d'Or de Sadiola S.A.841,000
41,000
I4141
       
Unincorporated joint operation      
Tropicana joint operation2n/a
n/a
I7070


D - Direct Holding
I - Indirect Holding


(1)
All the operations in South Africa, including, Mine Waste Solutions and Mponeng are held by the parent company, AngloGold Ashanti Limited. An agreement for the sale of the South African operations was announced on 12 February 2020.
(2)
Owner of the Sunrise Dam operation and the Tropicana joint operation in Australia.
(3)
Operates the Obuasi mine in Ghana.
(4)
Owner of Kibali Goldmines S.A. which operates the Kibali mine in the Democratic Republic of the Congo.
(1)All the operations in South Africa, including, Mine Waste Solutions and Mponeng were held by the parent company, AngloGold Ashanti Limited. The South African operations were sold effective 30 September 2020.
(2) Owner of the Sunrise Dam operation and the Tropicana joint operation in Australia.
(3) Operates the Obuasi mine in Ghana.
(4) 90% owner of Kibali Goldmines S.A. which operates the Kibali mine in the Democratic Republic of the Congo.
(5) Sold, effective 10 November 2020.
(6) Sold, effective 30 December 2020.



1Argentina6Isle of Man
2Australia7Jersey
3Brazil8Mali
4Ghana9Tanzania
5Republic of Guinea10United States of America

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EXHIBIT 19.12.1
CERTIFICATION


I, Kelvin Dushnisky,Alberto Calderon, certify that:


1.I have reviewed this annual report on Form 20-F of AngloGold Ashanti Limited;
2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the company as of, and for, the periods presented in this report;
4.The company’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the company and have:
a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with IFRS as issued by the IASB;
c.Evaluated the effectiveness of the company’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d.Disclosed in this report any change in the company’s internal control over financial reporting that occurred during the period covered by the annual report that has materially affected, or is reasonably likely to materially affect, the company’s internal control over financial reporting; and
5.The company’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the company’s auditors and the audit committee of company’s board of directors (or persons performing the equivalent functions):
a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the company’s ability to record, process, summarize and report financial information; and
b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the company’s internal control over financial reporting.

1.I have reviewed this annual report on Form 20-F of AngloGold Ashanti Limited;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the company as of, and for, the periods presented in this report;

4.The company’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the company and have:
a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with IFRS as issued by the IASB;
c.Evaluated the effectiveness of the company’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d.Disclosed in this report any change in the company’s internal control over financial reporting that occurred during the period covered by the annual report that has materially affected, or is reasonably likely to materially affect, the company’s internal control over financial reporting; and

5.The company’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the company’s auditors and the audit committee of company’s board of directors (or persons performing the equivalent functions):
a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the company’s ability to record, process, summarise and report financial information; and
b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the company’s internal control over financial reporting.




Date: 2729 March 20202022




/s/ Kelvin Paul Michael DushniskyAlberto Calderon
Kelvin Paul Michael Dushnisky Alberto Calderon
Chief Executive Officer

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EXHIBIT 19.12.2
CERTIFICATION


I, Kandimathie Christine Ramon, certify that:


1.I have reviewed this annual report on Form 20-F of AngloGold Ashanti Limited;
2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the company as of, and for, the periods presented in this report;
4.The company’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the company and have:
a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with IFRS as issued by the IASB;
c.Evaluated the effectiveness of the company’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d.Disclosed in this report any change in the company’s internal control over financial reporting that occurred during the period covered by the annual report that has materially affected, or is reasonably likely to materially affect, the company’s internal control over financial reporting; and
5.The company’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the company’s auditors and the audit committee of company’s board of directors (or persons performing the equivalent functions):
a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the company’s ability to record, process, summarize and report financial information; and
b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the company’s internal control over financial reporting.

1.I have reviewed this annual report on Form 20-F of AngloGold Ashanti Limited;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the company as of, and for, the periods presented in this report;

4.The company’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the company and have:
a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with IFRS as issued by the IASB;
c.Evaluated the effectiveness of the company’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d.Disclosed in this report any change in the company’s internal control over financial reporting that occurred during the period covered by the annual report that has materially affected, or is reasonably likely to materially affect, the company’s internal control over financial reporting; and

5.The company’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the company’s auditors and the audit committee of company’s board of directors (or persons performing the equivalent functions):
a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the company’s ability to record, process, summarise and report financial information; and
b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the company’s internal control over financial reporting.



Date: 2729 March 20202022


/s/ Kandimathie Christine Ramon
Kandimathie Christine Ramon
Chief Financial Officer

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EXHIBIT 19.13








CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002


In connection with the Annual Report of AngloGold Ashanti Limited (the “Company”) on Form 20-F for the period ending 31 December 2019,2021, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned hereby certify that to the best of our knowledge:

1.The Report fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934; and

2.The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.



1.    The Report fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934; and



2.    The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.








Date: 2729 March 2020/s/ Kelvin Paul Michael Dushnisky2022            /s/ Alberto Calderon
Name: Kelvin Paul Michael DushniskyAlberto Calderon
Title: Chief Executive Officer








Date: 2729 March 2020/s/2022            /s/ Kandimathie Christine Ramon
Name: Kandimathie Christine Ramon
Title: Chief Financial Officer








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Exhibit 19.15.1




CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM




We consent to the incorporation by reference in the Registration Statement on Form S-8 (No. 333-113789) and the Registration Statement on Form F-3 (No. 333-230651) of AngloGold Ashanti Limited of our reports dated 2729 March 2020,2022, with respect to the consolidated financial statements of AngloGold Ashanti Limited and the effectiveness of internal control over financial reporting of AngloGold Ashanti Limited included in this Annual Report (Form 20-F) for the year ended 31 December 2019,2021, filed with the Securities and Exchange Commission.














/s/ Ernst & Young Inc.

Ernst & Young Inc.


Johannesburg, Republic of South Africa
2729 March 20202022



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Exhibit 19.15.2




CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM


AngloGold Ashanti Limited
Johannesburg, South Africa




We hereby consent to the incorporation by reference in the Registration StatementStatements on Form S-8 (No. 333-113789) and Form F-3 (No. 333-230651) of AngloGold Ashanti Limited of our report dated 2729 March 2020,2022, relating to the consolidated financial statements of Kibali (Jersey) Limited which appears in this Annual Report on Form 20-F of AngloGold Ashanti Limited.






/s/ BDO LLP


BDO LLP

London, United Kingdom
2729 March 20202022








SIGNATURES
The registrant hereby certifies that it meets all of the requirements for filing on Form 20-F and that it has duly caused and authorised the undersigned to sign this annual report on its behalf.
ANGLOGOLD ASHANTI LIMITED


/s/ Kandimathie ChristineKC Ramon

Name:
Name:Kandimathie Christine Ramon
Title:Chief Financial Officer
Date:29 March 27, 20202022








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