| Fri 31 Jul 2009, 8:37 | | ANG - Anglogold Ashanti Reduces Hedge Book By 1.4moz To Less Than One-Year`s |
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ANG - Anglogold Ashanti Reduces Hedge Book By 1.4moz, To Less Than One-Year`s
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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")
ANGLOGOLD ASHANTI REDUCES HEDGE BOOK BY 1.4MOZ, TO LESS THAN ONE-YEAR`S OUTPUT
AngloGold Ashanti Limited undertook an extensive restructuring of its hedge
book in July, reducing its overall commitments by about 1.4Moz, in order to
realise its strategy of maximizing exposure to spot gold prices.
"We`ve worked hard to strengthen our balance sheet and that gave us the
flexibility to skin the hedge book by getting it well below one year`s
production," Chief Executive Officer Mark Cutifani said. "The market
fundamentals are extremely robust for gold, which supported our decision to move
aggressively sooner rather than later, to ensure we maximize our exposure to
spot prices."
The decision was taken in July 2009 to invest $797m to reduce the company`s
overall hedge position, after the successful issue in the second quarter of a
five-year convertible bond and the receipt of the first tranche of the proceeds
from the sale of the company`s Boddington stake. The company now expects to
achieve a 7% discount to spot gold prices at $950/oz gold price, with the hedge
book reducing by approximately 800,000oz a year, until it winds up at the end of
2014.
AngloGold Ashanti`s overall hedge commitment at 25 July declined to 4.47Moz,
less than one year`s production. That compares with 5.84Moz at the end of the
first quarter. The committed ounces are expected to decline further, to about
4.1Moz by the end of 2009, a full year ahead of target.
ENDS
JOHANNESBURG
31 JULY 2009
JSE Sponsor - UB
Contacts
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
Sicelo Ntuli (Investor) Tel: +27 (0) 11 637 6339 Mobile: +27 (0) 71 608 991
E-mail: sntuli@AngloGoldAshanti.com
Stewart Bailey (Investor) Tel: +1 212 836 4303 Mobile: +1 646 338 4337
E-mail: sbailey@AngloGoldAshanti.com
Certain statements made in this communication, including, without limitation,
those concerning AngloGold Ashanti`s strategy to reduce its gold hedging
position including the extent and effects of the reduction, the economic outlook
for the gold mining industry, expectations regarding gold prices, production,
cash costs and other operating results, growth prospects and outlook of
AngloGold Ashanti`s operations, individually or in the aggregate, including the
completion and commencement of commercial operations of certain of AngloGold
Ashanti`s exploration and production projects and completion of acquisitions and
dispositions, AngloGold Ashanti`s liquidity and capital resources, and
expenditure and the outcome and consequences of any pending litigation
proceedings, 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 2008,
which was distributed to shareholders on 27 March 2009 and the company`s annual
report on Form 20-F, filed with the Securities and Exchange Commission in the
United States on May 5, 2009 as amended on May 6, 2009. 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. 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.
AngloGold Ashanti posts information that is important to investors on the main
page of its website at www.anglgoldashanti.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.
Date: 31/07/2009 08:37:13 Produced by the JSE SENS Department.
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