Scorecard 2009

– delivering on our commitments

2008 – Commitment2009 – Delivery

Share overhang

  • Eliminate the overhang created by Anglo American plc’s plan to exit their investment in AngloGold Ashanti.
  • The 11.3% stake was sold to Paulson & Co. during March.

Rebuilding financial capacity

  • Improve balance sheet and reduce debt to create a platform for growth.
  • Reduce hedge book.
  • Sharpen focus on capital management.
  • Increase operating cash flow leverage.
  • Net debt reduced by 32% to $868m.
  • Hedge book reduced by a further 35% to 3.9Moz by end 2009, reducing discount on realised gold price and overall financial risk.
  • Operating cash flow for the year of $502m.
  • Return on net capital employed of 17.7% achieved (2008: 2.6%).

Operating delivery initiative

  • Begin implementation of Project ONE, the overarching business improvement initiative that will drive AngloGold Ashanti toward achieving five-year targets on safety, productivity and returns.
  • Phased implementation at the Mponeng plant, Geita mine and plant, Siguiri plant, AngloGold Ashanti Brasil Mineração mines and plant, Sunrise Dam plant and Savuka plant. Detailed plans drawn for rollout to 11 sites in 2010, including: Mponeng, Kopanang mine and plant, TauTona and Moab Khotsong mines; Iduapriem plant and Obuasi mine and plant; Cerro Vanguardia and Serra Grande mine and plants; CC&V mine; Navachab mine and plant; Great Noligwa uranium plant.
  • Address critical operating challenges, in Argentina, Ghana and Tanzania projects.
  • Cerro Vanguardia production increased 25% and costs declined 42%; credible growth plan in place from underground and heap leach.
  • Obuasi production increased 7% and costs declined 0.5; Obuasi made positive contribution for first time in five years; practicable plan in place to secure long-term future of deposit.
  • Geita plan in place to remediate operating performance. Costs on declining trajectory.

Optimising leadership and skills base

 
  • Human resources policy development centralised to ensure alignment and focus on delivering the group strategy.
  • The System for People, the human resources component of Project ONE, was finalised and its rollout across the company began in 2009.
  • Management changes made at underperforming operations.
  • Ensured those with appropriate skills were appointed at each level of the organisation.

Turning around safety performance

  • Strive to eliminate fatalities entirely and to reduce all injury rates by 20% in 2009 – the long-term goal is a 70% reduction in these rates by 2014.
  • Lost-time injury frequency rate (LTIFR) improved 10% to 6.57 per million hours worked.
  • Safety Transformation Blueprint developed to effect quantum improvement in safety after 16 fatalities reported in 2009. Launch of this safety initiative is planned for April 2010.

Pursuing growth

  • Drive organic growth at existing assets, through greenfields exploration, brownfield expansion and by acquisitions where these add value.
  • Ore Reserve increased by 5% to 71.4Moz after adjusting for Boddington.
  • Successfully completed pre-feasibility study on Tropicana Project and commenced with bankable study due for completion in 2010.
  • Conducted successful exploration campaign to confirm mineralisation at São Bento deposit in Brazil.
  • Acquired an effective 45% of the Kibali gold project, in the Democratic Republic of the Congo.
  • Exploration programme expanded and revitalised with new greenfields exploration taking place in Canada, Argentina, Brazil, Guinea, Gabon, Egypt, Saudi Arabia, Eritrea and Solomon Islands.
  • Marine exploration joint venture with De Beers.
  • Delays continued in obtaining final permission to continue drilling at La Colosa site in Colombia.

ANGLOGOLD ASHANTI Annual Financial Statements 2009