| Tue 10 Apr 2012, 13:54 | | ANG - AngloGold Ashanti Limited - First Quarter 2012 Production Update |
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ANANO
ANG - AngloGold Ashanti Limited - First Quarter 2012 Production Update
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 First Quarter 2012 Production Update
(Johannesburg) - On 15 February 2012 AngloGold Ashanti, at the time of its
full year 2011 earnings release, guided first quarter 2012 gold production at
1.03Mozs at total cash costs of $820/oz - $835/oz at an average exchange rate
of R7.40/$, BRL1.70/$, A$1.01/$, and AP4.35/$ and fuel at $110/barrel. The
Company further pointed out that both these estimates could see downside risk
in the light of safety related stoppages which were being experienced at its
South African mines.
Safety stoppages continued to negatively impact group production from its
South African mines during the first quarter of 2012. In total, safety
stoppages and the subsequent ramp-up associated with safely restarting ultra-
deep mining areas, resulted in 76,000oz of lost production in the three
months ended March 31. AngloGold Ashanti`s first-quarter 2012 gold
production was around 980,000oz, which is also likely to have a consequential
impact on unit total cash costs, partially mitigated by weaker rand exchange
rates.
The balance of the group`s operating regions, namely Australia,
Continental Africa and the Americas, met their production targets for the
quarter. Notably, strong performances were delivered during the period by
the Cripple Creek & Victor, Geita and Siguiri mines, offsetting a weaker
result from Obuasi, where unplanned repairs to the base of the main shaft
hampered first quarter output.
"AngloGold Ashanti delivered its best ever safety performance in 2011 -
with lowest ever fatality rates in South Africa and its lowest total injury
frequency rate across its global operations. While we are disappointed with
our start to 2012, we remain committed to delivering on our Vision to go
`Beyond Zero Harm`. Our work colleagues and their families deserve nothing
less." Chief Executive Officer, Mark Cutifani said. "In addition, we remain
absolutely committed to working with our employee and government partners to
constructively improve safety on the country`s mines. Consistent with this
commitment we continue a close dialogue with the mining inspectorate at a
national and regional level, with a view to helping achieve these shared
objectives."
AngloGold Ashanti and its joint venture partners continue to closely
monitor the situation in Mali, following last month`s military coup and the
economic sanctions that were imposed until recently, on the landlocked
country by the Economic Community of West African States. The company`s
three joint venture operations in Mali - Morila, Yatela and Sadiola -
operated as normal and the Company continued to meet its fiscal obligations
to the country`s exchequer over this period.
In addition, AngloGold Ashanti will report a deferred tax charge resulting
from the increase in Ghana`s corporate tax rate, as applicable to AngloGold
Ashanti under its Stability Agreement, from 25% to 30%. This will, however,
be more than compensated for by a deferred tax credit created by the
reduction in South Africa`s marginal tax rate applicable to gold mining
companies from 43% to 34%, following the introduction of withholding tax on
dividends that replaced the secondary tax on companies.
ENDS
10 April 2012
JSE SPONSOR - UBS
Contacts
Tel: E-mail:
Alan Fine (Media) +27 11 637 6383 afine@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 2011, which was
distributed to shareholders on 4 April 2012 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: 10/04/2012 13:54:34 Produced by the JSE SENS Department.
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