UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF
THE SECURITIES EXCHANGE ACT OF 1934
Report on Form 6-K dated February 21, 2017
Commission File Number 1-14846
AngloGold Ashanti Limited
(Name of registrant)
76 Rahima Moosa Street
Newtown, 2001
(P.O. Box 62117, Marshalltown, 2107)
South Africa
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form
20-F or Form 40-F.
20-F or Form 40-F.
Form 20-F X
Form 40-F
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by
Regulation S-T Rule 101(b)(1):
Regulation S-T Rule 101(b)(1):
Yes
No X
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by
Regulation S-T Rule 101(b)(7):
Regulation S-T Rule 101(b)(7):
Yes
No X
Indicate by check mark whether the registrant by furnishing the information contained in this Form
is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the
Securities Exchange Act of 1934.
is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the
Securities Exchange Act of 1934.
Yes
No X
Enclosure: Press release NEWS RELEASE – AngloGold Ashanti Limited Resumes Dividends on
Free Cash Flow Jump
Free Cash Flow Jump
AngloGold Ashanti Limited
(Incorporated in the Republic of South Africa)
Reg. No. 1944/017354/06
ISIN. ZAE000043485 – JSE share code: ANG
CUSIP: 035128206 – NYSE share code: AU
(“AngloGold Ashanti” or the “Company”)
21 February 2017
NEWS RELEASE
AngloGold Resumes Dividends on Free Cash Flow Jump
(PRESS RELEASE – JOHANNESBURG) – AngloGold Ashanti said it would resume dividend payments
following a hiatus of more than three years, after lower operating and interest costs helped it nearly
double free cash flow to $278m. The company declared a dividend of approximately 10 US cents a
share for 2016.
Adjusted Headline Earnings (AHE) were $143m, or 35 U S cents per share, compared with $49m,
or 12 US cents per share in 2015. The sharp improvements in free cash flow and earnings were
achieved through strong ongoing focus on cost and capital discipline, as well a higher gold price.
AngloGold Ashanti has since 2013 used ‘self-help’ measures including asset sales and efficiency
improvements to reduce debt and improve balance sheet flexibility without diluting shareholders. It
has, at the same time, improved safety and cash-flow margins across its 17-mine portfolio. The
company has prioritised inward investment in high-return brownfield projects over acquisitions, as it
seeks to improve the quality of its production base and extend mine lives.
“Production from our operations delivered a strong turn around in the second half of the year. We
have again generated strong cash flows despite a volatile gold price, which has further strengthened
our balance sheet and improved flexibility,” Chief Executive Officer Srinivasan Venkatakrishnan said.
“We will continue to deliver on our strategy through the development of high-return, brownfield
projects in order to continue to improve the underlying quality of our portfolio.”
All in Sustaining Costs (AISC) came in within revised guidance range at $986/oz, up from $910/oz in
2015. The AISC reflects continued cost discipline and weaker local currencies in some jurisdictions,
offset by an increase in sustaining capital expenditure and inflation.
Production of 3.6Moz was within the original guidance for the year ended 31 December 2016 at a
total cash cost of $744/oz, compared to 3.8Moz (excluding discontinued operations) at $712/oz in
the prior year. Production was negatively impacted by weaker output from the South Africa mines
due mainly to safety-related stoppages, lower grades from Kibali, a planned decrease in head grades
at Tropicana and Geita, and no production contribution from Obuasi.
following a hiatus of more than three years, after lower operating and interest costs helped it nearly
double free cash flow to $278m. The company declared a dividend of approximately 10 US cents a
share for 2016.
Adjusted Headline Earnings (AHE) were $143m, or 35 U S cents per share, compared with $49m,
or 12 US cents per share in 2015. The sharp improvements in free cash flow and earnings were
achieved through strong ongoing focus on cost and capital discipline, as well a higher gold price.
AngloGold Ashanti has since 2013 used ‘self-help’ measures including asset sales and efficiency
improvements to reduce debt and improve balance sheet flexibility without diluting shareholders. It
has, at the same time, improved safety and cash-flow margins across its 17-mine portfolio. The
company has prioritised inward investment in high-return brownfield projects over acquisitions, as it
seeks to improve the quality of its production base and extend mine lives.
“Production from our operations delivered a strong turn around in the second half of the year. We
have again generated strong cash flows despite a volatile gold price, which has further strengthened
our balance sheet and improved flexibility,” Chief Executive Officer Srinivasan Venkatakrishnan said.
“We will continue to deliver on our strategy through the development of high-return, brownfield
projects in order to continue to improve the underlying quality of our portfolio.”
All in Sustaining Costs (AISC) came in within revised guidance range at $986/oz, up from $910/oz in
2015. The AISC reflects continued cost discipline and weaker local currencies in some jurisdictions,
offset by an increase in sustaining capital expenditure and inflation.
Production of 3.6Moz was within the original guidance for the year ended 31 December 2016 at a
total cash cost of $744/oz, compared to 3.8Moz (excluding discontinued operations) at $712/oz in
the prior year. Production was negatively impacted by weaker output from the South Africa mines
due mainly to safety-related stoppages, lower grades from Kibali, a planned decrease in head grades
at Tropicana and Geita, and no production contribution from Obuasi.
Both Mponeng and Moab Khotsong in South Africa delivered increased production over the prior
year, along with Iduapriem and Siguiri in the Continental Africa Region, and Sunrise Dam in Australia.
Mponeng delivered the best improvement, with a 16% increase in production and a 14% decrease in
AISC year-on-year.
SECOND HALF
AngloGold Ashanti delivered a steady operating and financial performance in the second half of
2016, with production coming in at 1.9Moz compared to 2.0Moz in 2015. This operating result was
achieved despite safety-related stoppages that impacted output by roughly 60,000oz in SA, planned
lower grades at Geita and Tropicana, and the Obuasi mine having been on care and maintenance
for last year. These negative production factors were partly offset by continued focus on tight cost
control, a 14% higher realised gold price, and weaker currencies in some jurisdictions.
AISC for second half of 2016 was $1,058/oz, higher than the $897/oz for the second half of 2015
due mainly to lower gold ounces sold, higher overall cash costs, higher brownfields exploration
costs, and increased sustaining capital expenditure.
Adjusted EBITDA of $767m, increased by 13% in the second half of 2016 compared to $679m in the
second half of 2015, due to the 14% increase in the average gold price received which was partially
offset by a 5% reduction in ounces sold over this period.
Proven and probable gold reserves at year end of 50.1Moz, substantially offsets depletion during the
year.
SAFETY
The number of fatal accidents across the Group’s operations reduced by more than a third
compared with 2015. Regrettably, however, six operating fatalities were recorded in South Africa
during 2016 and another in Brazil. Despite these setbacks, significant safety milestones were
achieved last year including a fatality free fourth quarter across all business units; one million
fatality-free shifts at Mponeng, Kopanang and Moab Khotsong; as well as two-million fatality-free
shifts for the Vaal River Region. Notably, Moab Khotsong achieved a full calendar year without a
fatality in September and the Surface Operations unit achieved a full year with no lost-time injury.
While these milestones demonstrate relative success in the implementation of our safety strategy,
we remain vigilant to ensure further gains in this most important area of the business.
There is no higher priority for AngloGold Ashanti than the safety of every one of its employees. We
believe that through close cooperation among stakeholders and fair application of regulations with
due regard to proportionality, as well as continued vigilance in an unpredictable operating
environment, we can further improve safety performance.
OUTLOOK
Production guidance for 2017 year is estimated to be between 3.6Moz and 3.755Moz. Total cash
costs are estimated to be between $750/oz and $800/oz and AISC between $1,050/oz and
$1,100/oz at average exchange rates against the US dollar of 14.25 (Rand), 3.40 (Brazil Real), 0.75
(Aus$) and 16.50 (Argentina Peso), with oil at $58/bl average for the year, based on market
expectations.
year, along with Iduapriem and Siguiri in the Continental Africa Region, and Sunrise Dam in Australia.
Mponeng delivered the best improvement, with a 16% increase in production and a 14% decrease in
AISC year-on-year.
SECOND HALF
AngloGold Ashanti delivered a steady operating and financial performance in the second half of
2016, with production coming in at 1.9Moz compared to 2.0Moz in 2015. This operating result was
achieved despite safety-related stoppages that impacted output by roughly 60,000oz in SA, planned
lower grades at Geita and Tropicana, and the Obuasi mine having been on care and maintenance
for last year. These negative production factors were partly offset by continued focus on tight cost
control, a 14% higher realised gold price, and weaker currencies in some jurisdictions.
AISC for second half of 2016 was $1,058/oz, higher than the $897/oz for the second half of 2015
due mainly to lower gold ounces sold, higher overall cash costs, higher brownfields exploration
costs, and increased sustaining capital expenditure.
Adjusted EBITDA of $767m, increased by 13% in the second half of 2016 compared to $679m in the
second half of 2015, due to the 14% increase in the average gold price received which was partially
offset by a 5% reduction in ounces sold over this period.
Proven and probable gold reserves at year end of 50.1Moz, substantially offsets depletion during the
year.
SAFETY
The number of fatal accidents across the Group’s operations reduced by more than a third
compared with 2015. Regrettably, however, six operating fatalities were recorded in South Africa
during 2016 and another in Brazil. Despite these setbacks, significant safety milestones were
achieved last year including a fatality free fourth quarter across all business units; one million
fatality-free shifts at Mponeng, Kopanang and Moab Khotsong; as well as two-million fatality-free
shifts for the Vaal River Region. Notably, Moab Khotsong achieved a full calendar year without a
fatality in September and the Surface Operations unit achieved a full year with no lost-time injury.
While these milestones demonstrate relative success in the implementation of our safety strategy,
we remain vigilant to ensure further gains in this most important area of the business.
There is no higher priority for AngloGold Ashanti than the safety of every one of its employees. We
believe that through close cooperation among stakeholders and fair application of regulations with
due regard to proportionality, as well as continued vigilance in an unpredictable operating
environment, we can further improve safety performance.
OUTLOOK
Production guidance for 2017 year is estimated to be between 3.6Moz and 3.755Moz. Total cash
costs are estimated to be between $750/oz and $800/oz and AISC between $1,050/oz and
$1,100/oz at average exchange rates against the US dollar of 14.25 (Rand), 3.40 (Brazil Real), 0.75
(Aus$) and 16.50 (Argentina Peso), with oil at $58/bl average for the year, based on market
expectations.
Capital expenditure is anticipated to be between $950m and $1,050m, with reinvestment at: Cuiaba,
in Brazil, where a greater rate of ore reserve development is expected to improve mining flexibility
hampered by geotechnical challenges in recent years; Iduapriem in Ghana, to strip waste rock from
the Teberebie ore body to extend mine life, and lower cash costs; Geita, in Tanzania, to replace the
mine’s original 20-year old power plant to ensure reliable electricity supply, and also continue the
ramp-up of underground production in advance of depletion of open-pit ore in future; at Sunrise
Dam, in Australia, where investment in plant modifications are expected to improve gold recoveries;
and at Kibali, in the DRC, where additional ore reserve development will be conducted ahead of a
ramp-up in underground production
Both production and cost estimates assume neither labour interruptions or power disruptions,
nor changes to asset portfolio and/or operating mines and have not been reviewed by our external
auditors. Other unknown or unpredictable factors could also have material adverse effects on our
future results and no assurance can be given that any expectations expressed by AngloGold Ashanti
will prove to have been correct. Please refer to the Risk Factors section in AngloGold Ashanti's
annual report on Form 20-F for the year ended 31 December 2015, filed with the United States
Securities and Exchange Commission.
in Brazil, where a greater rate of ore reserve development is expected to improve mining flexibility
hampered by geotechnical challenges in recent years; Iduapriem in Ghana, to strip waste rock from
the Teberebie ore body to extend mine life, and lower cash costs; Geita, in Tanzania, to replace the
mine’s original 20-year old power plant to ensure reliable electricity supply, and also continue the
ramp-up of underground production in advance of depletion of open-pit ore in future; at Sunrise
Dam, in Australia, where investment in plant modifications are expected to improve gold recoveries;
and at Kibali, in the DRC, where additional ore reserve development will be conducted ahead of a
ramp-up in underground production
Both production and cost estimates assume neither labour interruptions or power disruptions,
nor changes to asset portfolio and/or operating mines and have not been reviewed by our external
auditors. Other unknown or unpredictable factors could also have material adverse effects on our
future results and no assurance can be given that any expectations expressed by AngloGold Ashanti
will prove to have been correct. Please refer to the Risk Factors section in AngloGold Ashanti's
annual report on Form 20-F for the year ended 31 December 2015, filed with the United States
Securities and Exchange Commission.
Ends
JSE Sponsor: Deutsche Securities (SA) Proprietary Limited
Contacts
Media
Chris Nthite +27 11 637 6388/+27 83 301 2481 cnthite@anglogoldashanti.com
Stewart Bailey +27 81 032 2563 / +27 11 637 6031 sbailey@anglogoldashanti.com
General inquiries
Chris Nthite +27 11 637 6388/+27 83 301 2481 cnthite@anglogoldashanti.com
Stewart Bailey +27 81 032 2563 / +27 11 637 6031 sbailey@anglogoldashanti.com
General inquiries
media@anglogoldashanti.com
Investors
Stewart Bailey +27 81 032 2563 / +27 11 637 6031
sbailey@anglogoldashanti.com
Sabrina Brockman
+1 646 880 4526/ +1 646 379 2555
sbrockman@anglogoldashanti.com
Fundisa Mgidi +27 11 6376763 / +27 82 821 5322 fmgidi@anglogoldashanti.com
Forward-Looking Information and Non-GAAP Financial Measures
Certain statements contained in this document, other than statements of historical fact, including, without limitation, those concerning
production, cash costs, all-in sustaining costs, all-in costs, cost savings, headline earnings, headline earnings per share, basic earnings, basic
earnings per share and other operating or financial results, and outlook of AngloGold Ashanti’s operations, individually or in the aggregate,
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, the success of business and operating initiatives, changes in the regulatory
environment and other government actions, including environmental approvals, fluctuations in gold prices and exchange rates, the outcome
of pending or future litigation proceedings, and business and operational risk management.
For a discussion of such risk factors, refer to AngloGold Ashanti’s annual report on Form 20-F for the year ended 31 December 2015, which
was filed with the United States Securities and Exchange Commission (“SEC”). 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 hereof or to reflect the occurrence of unanticipated
production, cash costs, all-in sustaining costs, all-in costs, cost savings, headline earnings, headline earnings per share, basic earnings, basic
earnings per share and other operating or financial results, and outlook of AngloGold Ashanti’s operations, individually or in the aggregate,
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, the success of business and operating initiatives, changes in the regulatory
environment and other government actions, including environmental approvals, fluctuations in gold prices and exchange rates, the outcome
of pending or future litigation proceedings, and business and operational risk management.
For a discussion of such risk factors, refer to AngloGold Ashanti’s annual report on Form 20-F for the year ended 31 December 2015, which
was filed with the United States Securities and Exchange Commission (“SEC”). 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 hereof 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.
This communication may contain certain “Non-GAAP” financial measures. AngloGold Ashanti utilises certain Non-GAAP performance
measures and ratios in managing its business. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for,
the reported operating results or cash flow from operations or any other measures of performance prepared in accordance with IFRS. In
addition, the presentation of these measures may not be comparable to similarly titled measures other companies may use. AngloGold
Ashanti posts information that is important to investors on the main page of its website at www.anglogoldashanti.com and under the
“Investors” tab on the main page. This information is updated regularly. Investors should visit this website to obtain important information
about AngloGold Ashanti.
Ashanti or any person acting on its behalf are qualified by the cautionary statements herein.
This communication may contain certain “Non-GAAP” financial measures. AngloGold Ashanti utilises certain Non-GAAP performance
measures and ratios in managing its business. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for,
the reported operating results or cash flow from operations or any other measures of performance prepared in accordance with IFRS. In
addition, the presentation of these measures may not be comparable to similarly titled measures other companies may use. AngloGold
Ashanti posts information that is important to investors on the main page of its website at www.anglogoldashanti.com and under the
“Investors” tab on the main page. This information is updated regularly. Investors should visit this website to obtain important information
about AngloGold Ashanti.
Incorporated in the Republic of South Africa Reg No: 1944/017354/06
ISIN. ZAE000043485 – JSE share code: ANG CUSIP: 035128206 – NYSE share code: AU
ISIN. ZAE000043485 – JSE share code: ANG CUSIP: 035128206 – NYSE share code: AU
Website: www.anglogoldashanti.com
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly
caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
AngloGold Ashanti Limited
Date: February 21, 2017
Date: February 21, 2017
By:
/s/ M E SANZ PEREZ________
Name:
M E Sanz Perez
Title:
EVP: Group Legal, Commercial & Governance