AngloGold Ashanti Limited (Incorporated in the Republic of South Africa) Reg. No. 1944/017354/06) ISIN No. ZAE000043485 - JSE share code: ANG CUSIP: 035128206 - NYSE share code: AU19 February 2014NEWS RELEASEAngloGold Grows Annual Output FirstTime in 9 Years; Costs Fall(JOHANNESBURG - PRESS RELEASE) -- AngloGold Ashanti said today all-insustaining costs in 2013 improved and annual production rose for the first timein almost a decade after it successfully cut spending and commissioned two newmines.Production in 2013 was 4.105Moz, exceeding guidance, compared to 3.944Moz in2012, the first time yearly production increased since 2005. Additional,profitable production growth is anticipated in 2014. All-in sustaining costs(AISC) for the year were $1,174/oz, down from $1,251/oz the previous year. Bythe fourth quarter, AISC had fallen sharply to $1,015/oz as cost saving,efficiency improvements and capital reductions bear fruit.Tropicana and Kibali, both commissioned ahead of time and on budget inSeptember, delivered 106,000oz of attributable production in the fourthquarter, at an average cash cost of $532/oz. This provides the flexibility tofurther rationalise marginal production while the group continues to focus onoverhead and operating costs."Thanks to our investment made in prior years, we are starting to reversenearly a decade of shrinking production," Venkat said. "This gives us theflexibility to remove marginal production without compromising our base, whichsets us apart in a sector that generally continues to shrink."AngloGold Ashanti took decisive action to counter the sharp drop in the goldprice in 2013, with key initiatives to enhance revenue and reduce overhead andoperating costs while maintaining the long-term optionality of the business.The company has more than halved corporate costs and cut exploration spendingby focusing on three core regions, while the completion of its two flagshipprojects are expected to result in a drop in capital investment."We continue to refocus the entire business to give us sustainable free cashflow," Venkat said.Fourth QuarterAngloGold Ashanti saw strong quarterly improvements throughout the year acrossalmost every metric. Earnings before interest, tax, depreciation andamortisation rose to $544m in the three months to December 31, a 66%improvement on the third quarter's $327m. Adjusted headline earnings normalisedfor various items, rose to $164m, from $110m in the third quarter.Production for the fourth quarter rose 18% to 1.229Moz compared to the thirdquarter, while total cash costs improved 8% to $748/oz. AISC were $1,015/oz inthe fourth quarter, down 12% from $1,155/oz in the third quarter. The strongcost reduction reflects better-than-anticipated outcomes from the companiesProject 500 initiative to realise $500m of operating cost savings betweenmid-2013 and the end of 2014."We're ahead of plan on our cost savings," Ron Largent, Chief OperatingOfficer: International, said. "We're intensifying our drive to achieveadditional efficiencies this year."The fourth-quarter and annual production improvement was achieved alongside arecord safety performance for the group, which saw 80% of the operationssetting new safety records, and overall safety trends reaching their bestlevels in the company's history. Tragically, eight fatalities were recordedduring the year, compared with 18 in 2012.Outlook*Further improvements are anticipated in 2014. Production is expected to rise tobetween 4.2Moz and 4.5Moz at a total cash cost of $750/oz to $790/oz. AISC, ameasure designed using the World Gold Council framework to represent all of thecost and capital expenditure required to produce an ounce of gold, is alsoexpected to improve further, to between $1,025/oz and $1,075/oz. CapitalExpenditure, which includes deferred stripping charges and investment in newprojects, is anticipated to be between $1.3bn and $1.45bn.*Assumptions made in determining outlook: Exchange rates of ZAR11/$, A$0.85/$,BRL2.45/$ and AP6.45/$; Brent $100/bl.ENDSSponsor: UBS South Africa (Pty) LtdContactsMediaChris Nthite +27 (0) 11 637 cnthite@anglogoldashanti.com 6388/+27 (0) 83 301 2481Stewart +27 81 032 sbailey@anglogoldashanti.comBailey 2563 / +27 11 637 6031General media@anglogoldashanti.cominquiriesInvestorsStewart +27 81 032 sbailey@anglogoldashanti.comBailey 2563 / +27 11 637 6031Sabrina +1 (212) 858 sbrockman@anglogoldashanti.comBrockman (US 7702 / +1 646& Canada) 379 2555Fundisa Mgidi +27 11 6376763 fmgidi@anglogoldashanti.com(South / +27 82 821Africa) 5322General investors@anglogoldashanti.cominquiriesCertain statements contained in this document, other than statements ofhistorical fact, including, without limitation, those concerning the economicoutlook for the gold mining industry, expectations regarding gold prices,production, cash costs, cost savings and other operating results, return onequity, productivity improvements, growth prospects and outlook of AngloGoldAshanti's operations, individually or in the aggregate, including theachievement of project milestones, commencement and completion of commercialoperations of certain of AngloGold Ashanti's exploration and productionprojects and the completion of acquisitions and dispositions, AngloGoldAshanti's liquidity and capital resources and capital expenditures and theoutcome and consequence of any potential or pending litigation or regulatoryproceedings or environmental issues, are forward-looking statements regardingAngloGold 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 actualresults, performance or achievements to differ materially from the anticipatedresults, performance or achievements expressed or implied in theseforward-looking statements. Although AngloGold Ashanti believes that theexpectations reflected in such forward-looking statements and forecasts arereasonable, no assurance can be given that such expectations will prove to havebeen correct. Accordingly, results could differ materially from those set outin the forward-looking statements as a result of, among other factors, changesin economic, social and political and market conditions, the success ofbusiness and operating initiatives, changes in the regulatory environment andother government actions, including environmental approvals, fluctuations ingold prices and exchange rates, the outcome of pending or future litigationproceedings, and business and operational risk management. For a discussion ofsuch risk factors, refer to the prospectus supplement to AngloGold Ashanti'sprospectus dated 17 July 2012 that was filed with the United States Securitiesand Exchange Commission ("SEC") on 26 July 2013. These factors are notnecessarily all of the important factors that could cause AngloGold Ashanti'sactual results to differ materially from those expressed in any forward-lookingstatements. Other unknown or unpredictable factors could also have materialadverse effects on future results. Consequently, readers are cautioned not toplace undue reliance on forward-looking statements. AngloGold Ashantiundertakes no obligation to update publicly or release any revisions to theseforward-looking statements to reflect events or circumstances after the datehereof or to reflect the occurrence of unanticipated events, except to theextent required by applicable law. All subsequent written or oralforward-looking statements attributable to AngloGold Ashanti or any personacting on its behalf are qualified by the cautionary statements herein.This communication may contain certain "Non-GAAP" financial measures. AngloGoldAshanti utilises certain Non-GAAP performance measures and ratios in managingits business. Non-GAAP financial measures should be viewed in addition to, andnot as an alternative for, the reported operating results or cash flow fromoperations or any other measures of performance prepared in accordance withIFRS. In addition, the presentation of these measures may not be comparable tosimilarly titled measures other companies may use. AngloGold Ashanti postsinformation that is important to investors on the main page of its website atwww.anglogoldashanti.com and under the "Investors" tab on the main page. Thisinformation is updated regularly. Investors should visit this website to obtainimportant information about AngloGold Ashanti.AngloGold Ashanti LimitedIncorporated in the Republic of South Africa Reg No: 1944/017354/06ISIN No. ZAE000043485 - JSE share code: ANG CUSIP: 035128206 - NYSE share code:AUWebsite: www.anglogoldashanti.com
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