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: AU11 August 2014NEWS RELEASEAngloGold Output up 17%, Costs Improve on Record Safety Result(JOHANNESBURG) - AngloGold Ashanti reported a 17% increase in production forthe second quarter compared with the same period a year earlier, as its two newmines continued to contribute lower-cost ounces, and a strong safetyperformance helped its South Africa operations improve their contribution.The overall result for the company showed significant improvement in all keyareas. In the second quarter, compared with the corresponding period a yearearlier, production rose 17%, all-in sustaining costs fell 19%, corporate andmarketing costs were down 65%, exploration and evaluation costs were 58% lower,capital expenditure down 44%, all-in costs down 29% and EBITDA up 33%. Theseresults helped turn around a cash burn of $488m in the second quarter of 2013,to a positive cash flow of $34m, notwithstanding a $132/oz drop in the goldprice."This is another strong result for us, with growth in production and lowercosts across the board," Chief Executive Officer Srinivasan Venkatakrishnan,said. "But it's the continued improvement in safety that we're most proud of,and where we intend to do better still."No fatalities were reported during the quarter for the third time in AngloGoldAshanti's history and the first time since 2010. In all, 11 of AngloGoldAshanti's operations reported no lost time injuries during the quarter, whileeight have kept a clean record for the year. The all-injury frequency rate forthe quarter improved 10% from a year earlier to the best-ever level of 6.79 permillion hours worked. Records were set on all other key safety metrics.Production for the three months to June 30 was ahead of guidance, while costswere at the lower end of the indicated range. Gold production for the quarterwas 1.098Moz at a total cash cost of $836/oz, compared with 935,000oz at atotal cash cost of $898/oz in the corresponding three-month period of 2013. InMay, AngloGold Ashanti had provided guidance for the second quarter of 1.05Mozto 1.08Moz at a total cash cost of $850/oz to $870/oz.AngloGold Ashanti, which plans to grow production this year for the first timein almost a decade, has made significant cuts to overhead costs and alsorealised significant savings in operating expenditure and capital expenditure,as it seeks to improve free cash flow and returns. At the same time, AngloGoldAshanti has posted a record safety performance. The company is investing in atargeted exploration programme and technologies to improve undergroundproductivity on its South African mines, which account for roughly 28% of totalproduction.The company reported an adjusted headline loss of $4m. When adjusted forextraordinary items, such as redundancy costs at its Obuasi mine in Ghana($27m) and closure costs of assets including the Yatela mine in Mali ($27m),the normalised adjusted headline earnings was $76m, or 19 cents a share.The South Africa region posted production at 319,000oz, 4% higher year-on-year,at an all-in sustaining cost of $1,064/oz, which was 12% lower than a yearearlier. The all-in-sustaining cost measurement includes total cash costs, pluscorporate and exploration costs and capital expenditure required to sustainoperations. AngloGold Ashanti's international operations posted a 24% rise ingold production to 779,000oz at an all-in sustaining cost of $1,033/oz, whichwas 19% lower year-on-year.The strong operating result helped drive a 140% improvement in cash inflow fromoperating activities to $336m for the quarter compared to the year-earlierperiod, despite a 9% decline in the gold price.ENDSSponsor to AngloGold AshantiUBS South Africa (Pty) LimitedContactsMediaChris Nthite +27 (0) 11 637 cnthite@anglogoldashanti.com 6388/+27 (0) 83 301 2481Stewart Bailey +27 81 032 2563 / sbailey@anglogoldashanti.com +27 11 637 6031General inquiries media@anglogoldashanti.comInvestorsStewart Bailey +27 81 032 sbailey@anglogoldashanti.com 2563 / +27 11 637 6031Sabrina Brockman (US & +1 (212) 858 sbrockman@anglogoldashanti.comCanada) 7702 / +1 646 379 2555Fundisa Mgidi (South +27 11 6376763 fmgidi@anglogoldashanti.comAfrica) / +27 82 821 5322Certain 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, all-in sustaining costs, cost savings and otheroperating results, return on equity, productivity improvements, growthprospects and outlook of AngloGold Ashanti's operations, individually or in theaggregate, including the achievement of project milestones, commencement andcompletion of commercial operations of certain of AngloGold Ashanti'sexploration and production projects and the completion of acquisitions anddispositions, AngloGold Ashanti's liquidity and capital resources and capitalexpenditures and the outcome and consequences of any potential or pendinglitigation or regulatory proceedings or environmental, health, and safetyissues, are forward-looking statements regarding AngloGold Ashanti'soperations, economic performance and financial condition. These forward-lookingstatements or forecasts involve known and unknown risks, uncertainties andother factors that may cause AngloGold Ashanti's actual results, performance orachievements to differ materially from the anticipated results, performance orachievements expressed or implied in these forward-looking statements. AlthoughAngloGold Ashanti believes that the expectations reflected in suchforward-looking statements and forecasts are reasonable, no assurance can begiven that such expectations will prove to have been correct. Accordingly,results could differ materially from those set out in the forward-lookingstatements as a result of, among other factors, changes in economic, social andpolitical and market conditions, the success of business and operatinginitiatives, changes in the regulatory environment and other governmentactions, including environmental approvals, fluctuations in gold prices andexchange rates, the outcome of pending or future litigation proceedings, andbusiness and operational risk management. For a discussion of such riskfactors, refer to AngloGold Ashanti's annual report on Form 20-F for the yearended 31 December 2013 which was filed with the United States Securities andExchange Commission ("SEC") on 14 April 2014. These factors are not necessarilyall of the important factors that could cause AngloGold Ashanti's actualresults 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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