| Thu 15 Mar 2012, 9:03 | | ANG - AngloGold Ashanti Limited - Anglogold credit rating upgraded by Moody`s |
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ANG
ANANO
ANG - AngloGold Ashanti Limited - Anglogold credit rating upgraded by Moody`s
on improved fundamentals
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 CREDIT RATING UPGRADED BY MOODY`S ON IMPROVED FUNDAMENTALS
(AngloGold Ashanti) - AngloGold Ashanti is pleased to acknowledge that
Moody`s Investors Service today upgraded the issuer rating of AngloGold
Ashanti Limited to Baa2 from Baa3, together with upgrading the senior
unsecured debt obligations of the company`s guaranteed subsidiary to Baa2, in
recognition of significant improvements in the company`s balance sheet
position and operational performance.
"We`ve come a long way in three years, with the removal of our hedge book
and restructuring of our balance sheet, which has provided upside to the
operational turnarounds that have taken place at the same time," said
AngloGold Ashanti Chief Financial Officer Srinivasan Venkatakrishnan. "The
Moody`s upgrade of our international investment grade rating further
strengthens our ability to execute our strategy to grow the business over the
medium term."
AngloGold Ashanti, the world`s third-largest gold producer, is
implementing its Project ONE business improvement initiative across its
portfolio of 20 operations in 10 countries, on four continents, with the aim
of enhancing productivity, efficiency and shareholder returns. The planned
production increase of some 27% within three years is expected to be realised
from projects in construction or scheduled for final approval in the coming
months and is expected to be funded from internal sources.
Moody`s cited operating improvements, including at AngloGold Ashanti`s
Geita mine in Tanzania, where the Project ONE helped the mine achieve higher
production in 2011 of 498,000oz at a total cash cost of $536/oz, compared to
a low of 264,000oz at $728/oz in 2008. Moody`s also pointed to improvement at
the Obuasi mine in Ghana, where cash generation after all capital expenditure
contributed $39m in 2011, from a cash drain of $94m in 2008.
AngloGold Ashanti reported net debt of $610m at the end of 2011, compared
with earnings before interest, tax and depreciation (EBITDA) of $3bn for the
year. While EBITDA has almost tripled since 2008, when the company`s new
management team launched its new strategy to remove the hedge book,
strengthen the balance sheet and position the company for expansion, annual
cash flow from operating activities has increased more than fourfold over the
same period, to $2.66bn in 2011.
The upgrade from Moody`s has the potential to further improve AngloGold
Ashanti`s cost of capital. The company, the first corporate in South Africa
to issue 30-year, investment-grade debt, has outstanding a $300m bond due in
2040 and a $700m bond due on 2020.
Johannesburg
15 March 2012
JSE Sponsor: UBS
ENDS
Contacts
Tel: E-mail:
Alan Fine (Media) +27 11 637 6383 afine@AngloGoldAshanti.com
Mike Bedford (Investor) +27 11 637 6273 mbedford@anglogoldashanti.com
Stewart Bailey(Investor)+1 2128364303 sbailey@anglogoldashanti.com
Certain statements made in 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 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 the completion of announced mergers
and acquisitions transactions, AngloGold Ashanti`s liquidity, capital
resources and capital expenditure and the outcome and consequences of any
litigation or regulatory proceedings or environmental issues, 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 including environmental approvals and actions, fluctuations in gold
prices and exchange rates, and business and operational risk management. For
a discussion of certain of these and other factors, refer to AngloGold
Ashanti`s annual report for the year ended 31 December 2010, which was
distributed to shareholders on 29 March 2011 and the company`s 2010 annual
report on Form 20-F, which was filed with the Securities and Exchange
Commission in the United States on May 31, 2011. 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. 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.
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.
Date: 15/03/2012 09:03:25 Produced by the JSE SENS Department.
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