| Tue 6 May 2008, 8:33 | | ANG - Anglogold Ashanti - Results For The First Qu |
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ANG
ANANO
ANG - Anglogold Ashanti - Results For The First Quarter 2008, Proposed Rights
Issue And Cautionary Announcement
AngloGold Ashanti Limited
Incorporated in the Republic of South Africa
Registration Number: 1944/017354/06)
ISIN Number: ZAE000043485
JSE Share Code: ANG
("AngloGold Ashanti/Company")
This is not an offer for the sale of securities. Not for release or distribution
in or into the United States
ANGLOGOLD ASHANTI RESULTS FOR THE FIRST QUARTER 2008, PROPOSED RIGHTS ISSUE AND
CAUTIONARY ANNOUNCEMENT
AngloGold Ashanti reported adjusted headline earnings of $105m for the first
quarter of 2008, significantly higher than the previous quarter, due to the
improved gold price, tax credits and the absence of accounting adjustments that
negatively affected earnings in the fourth quarter of 2007.
Operational performance saw first quarter production at 1.2Moz, 9% higher
than previous guidance provided in February 2008, primarily due to the excellent
work undertaken by the South African operations to mitigate the negative impact
of the Eskom power situation. Total cash costs for the company were consequently
lower at $430/oz for the quarter, significantly better than guidance of $467/oz.
Safety performance showed a marked improvement, with the lowest ever first
quarter fatality rate achieved, and a reduction of 80% in fatality rates since
the launch of the company`s `Safety is our first value` campaign in November
2007.
AngloGold Ashanti also announced a proposed fully underwritten rights issue
to raise approximately $1.6 billion and intends to use the proceeds in order to
effect a meaningful reduction of the hedge book as well as continuing to fund
the company`s growth initiatives.
During the quarter, AngloGold Ashanti reduced its hedge commitments from
11.28Moz to 10.03Moz, as it delivered into maturing contracts and additional
hedge buy-backs that were effected. The net delta hedge position reduced by
1.13Moz to 9.26Moz as at 31 March 2008. However, the funding raised from the
proposed rights issue will provide the company with the flexibility to reduce
the hedge book to approximately 6.25Moz and will reduce the anticipated discount
to spot price realized to about 6% in 2009 and at a similar level thereafter,
assuming a $900/oz gold price.
The company also announced the addition of 12.9Moz of inferred resources at
its 100% owned La Colosa project in Colombia. This is the first significant gold
porphyry discovery in the Colombian Andes, where AngloGold Ashanti has a first
mover advantage with a land position of some 37,500kmSquared, with significant
potential to increase the resource at La Colosa and at other projects in
Colombia.
This new discovery is in addition to the 6.95Moz attributable of JORC
Inferred and Indicated Resources declared by AngloGold Ashanti on 31 December
2007, as generated by greenfields exploration programmes during the year. At
year end the company published attributable mineral resources of 207.6Moz.
In respect of 2008 production guidance, the company increased its gold
production outlook to a range of 4.9Moz and 5.1Moz, up from prior guidance of
4.8Moz to 5.0Moz. Total cash costs are expected to be in a range of $440/oz and
$460/oz, based on the following exchange rate assumptions: R/$7.88, A$/$0.91,
BRL/$1.71 and Argentinean peso/$ 3.16.
Commenting on the quarter, CEO Mark Cutifani said, "In this quarter we
delivered on our commitments across all key measures in the business. From
improving production and managing costs, to reducing our hedge book and bringing
to account a significant new gold discovery, I am confident that we are starting
to drive value back into the business. We are also starting to see the benefits
of a concerted new approach to safety. This must remain our key focus and it`s
an area where we still have much work to do."
Cutifani added that he was "particularly pleased with the work the South
African operational team has done, together with Eskom and organised labour, to
manage through the power issue. We are seeing improved efficiencies and safer
work practices, using less power, which speaks to successfully working the
problem together."
"I am also delighted to be announcing the rights issue which if completed,
should provide the capital required to drive a step change in the delivery of
our strategic objectives, substantially reducing our hedge book whilst ensuring
that we have the financial flexibility to deliver on our current and future
growth initiatives."
Cautionary announcement : The proposed rights offer may have a material
effect on AngloGold Ashanti`s securities and shareholders are accordingly
advised to exercise caution when dealing in AngloGold Ashanti securities until a
further announcement is made.
ENDS
06 May 2007
Contacts
South Africa Tel: Mobile: E-mail:
Charles Carter (Investor Relations) Tel: +27 (0) 11 637-6385
Mobile: +27 (0) 82 330 5373 E-mail:cecarter@AngloGoldAshanti.com
Himesh Persotam (Investor Relations) Tel: +27 (0) 11 637-6647
Mobile: +27 (0) 82 339 3890 E-mail:hpersotam@AngloGoldAshanti.com
Alan Fine (Media) Tel: +27 (0) 11 637-6383 Mobile:+27 (0) 83 250 0757
E-mail: afine@AngloGoldAshanti.com
Joanne Jones (Media) Tel: +27 (0) 11 637- 6813 Mobile:+27 (0) 82 896 0306
E-mail: jjones@AngloGoldAshanti.com
North America Tel:Mobile:E-mail:
Dan Gagnier (Sard Verbinnen & Co) Tel: +1-212-687-8080 Mobile:+1 646-342-8087
E-mail: dgagnier@sardverb.com
UK and Europe
Rachel Hirst (Hogarth Partnership Ltd) Tel: +44-207-357 9477
E-mail: rhirst@hogarthpr.co.uk
Nick Denton (Hogarth Partnership Ltd) Tel: +44-207-357 9477
E-mail: ndenton@hogarthpr.co.uk
Certain statements made during this communication, including, without
limitation, those concerning the economic outlook for the gold mining industry,
expectations regarding gold prices, production, cash costs and other operating
results, growth prospects and the outlook of AngloGold Ashanti`s operations
including the completion and commencement of commercial operations of certain of
AngloGold Ashanti`s exploration and production projects, and its liquidity and
capital resources and expenditure, contain certain forward-looking statements
regarding AngloGold Ashanti`s operations, economic performance and financial
condition. Although AngloGold Ashanti believes that the expectations reflected
in such forward-looking statements 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 and market conditions,
success of business and operating initiatives, changes in the regulatory
environment and other government actions, fluctuations in gold prices and
exchange rates, and business and operational risk management. For a discussion
of such factors, refer to AngloGold Ashanti`s annual report for the year ended
31 December 2007, which was distributed to shareholders on 31 March 2008.
AngloGold Ashanti undertakes no obligation to update publicly or release any
revisions to these forward-looking statements to reflect events or circumstances
after today`s date or to reflect the occurrence of unanticipated events.
In connection with the proposed merger transaction involving AngloGold
Ashanti and Golden Cycle Gold Corporation, AngloGold Ashanti has filed with the
SEC a registration statement on Form F-4 and GCGC will mail a proxy
statement/prospectus to its stockholders, and each will be filing other
documents regarding the proposed transaction with the U.S. Securities and
Exchange Commission ("SEC") as well. BEFORE MAKING ANY VOTING OR INVESTMENT
DECISION, INVESTORS ARE URGED TO READ THE PROXY STATEMENT/PROSPECTUS REGARDING
THE PROPOSED TRANSACTION AND ANY OTHER RELEVANT DOCUMENTS CAREFULLY WHEN THEY
BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE
PROPOSED TRANSACTION. The final proxy statement/prospectus will be mailed to
GCGC`s stockholders. Stockholders will be able to obtain a free copy of the
proxy statement/prospectus, as well as other filings containing information
about AngloGold Ashanti and GCGC, without charge, at the SEC`s Internet site
(http://www.sec.gov). Copies of the proxy statement/prospectus and the filings
with the SEC that will be incorporated by reference in the proxy
statement/prospectus can also be obtained, without charge, by directing a
request to AngloGold Ashanti, 76 Jeppe Street, Newtown, Johannesburg, 2001 (PO
Box 62117, Marshalltown, 2107) South Africa, Attention: Investor Relations, +27
11 637 6385, or to Golden Cycle Gold Corporation, 1515 S. Tejon, Suite 201,
Colorado Springs, CO 80906, Attention: Chief Executive Officer, (719) 471-9013.
This document is not an offer of securities for sale in the United States.
Securities may not be offered or sold in the United States absent registration
or an exemption from registration. AngloGold Ashanti has filed a registration
statement in the United States under the Securities Act of 1933, as amended, in
connection with the offer and sale of the securities described herein and
intends to register the securities described herein for offer and sale in the
United States. Any public offering of securities to be made in the United States
will be made by means of a prospectus and a related prospectus supplement that
form part of this registration statement and that will contain detailed
information about AngloGold Ashanti and its management, as well as financial
statements. Such prospectus may be obtained from AngloGold Ashanti at 76 Jeppe
Street, Newtown, Johannesburg, South Africa.
Date: 06/05/2008 08:33:01 Produced by the JSE SENS Department.
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