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DIGGERS & DEALERS FORUM AUGUST 5, 2013 Graham Ehm EVP
Australia, Group Planning & Technical
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Certain statements contained in this document, other than
statements of historical fact, including, without limitation, those
concerning
the economic outlook for the gold mining industry, expectations
regarding gold prices, production, cash costs and other
operating
results, return on equity, productivity improvements, growth
prospects and outlook of AngloGold Ashantis operations,
individually or in the aggregate, including the achievement of
project milestones, commencement and completion of commercial
operations of certain
of AngloGold Ashantis exploration and production projects and
the completion of acquisitions and dispositions, AngloGold Ashantis
liquidity and capital resources and capital expenditures and the
outcome and consequence of any potential or pending litigation
or
regulatory proceedings or environmental issues, are
forward-looking statements regarding AngloGold Ashantis operations,
economic performance and financial condition. These forward-looking
statements or forecasts involve known and unknown risks,
uncertainties
and other factors that may cause AngloGold Ashantis actual
results, performance or achievements to differ materially from the
anticipated results, performance or achievements expressed or
implied in these forward-looking statements. Although AngloGold
Ashanti believes that the expectations reflected in such
forward-looking statements and forecasts 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, social and political and market conditions,
the
success of business and operating initiatives, changes in the
regulatory environment and other government actions, including
environmental approvals, fluctuations in gold prices and
exchange rates, the outcome of pending or future litigation
proceedings, and
business and operational risk management. For a discussion of
such risk factors, refer to the document entitled Risk factors
related to AngloGold Ashantis suite of 2012 reports on the
AngloGold Ashanti online corporate report website at
www.aga-reports.com. These factors are not necessarily all of the
important factors that could cause AngloGold Ashantis 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. Consequently, readers are cautioned
not to place undue reliance on forward-looking statements.
AngloGold
Ashanti undertakes no obligation to update publicly or release
any revisions to these forward-looking statements to reflect events
or
circumstances after the date hereof or to reflect the occurrence
of unanticipated events, except to the extent required by
applicable
law. 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.
Disclaimer
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South Africa(a)
30%
Continental Africa38%
Australia7%
Americas25%
2012 production
South Africa42%
Continental Africa33%
Australia9%
Americas16%
AngloGold Ashanti - global footprint
An extensive global operational and exploration footprint
...provides a wealth of flexible options across four
continents.
2009 production
(a) If adjusted for the estimated 235,000 oz of lost production
due to the unprotected strike action, South
Africa would have been approximately 36% of production in
2012
(b) Based on 2012 disclosed mineral reserves on an attributable
basis
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Portfolio regeneration
New projects expected to improve overall portfolio quality and
cash generation
while average costs benefit from rationalisation and sale of
high-cost assets.
Average
Cost
Average
Grade
Tropicana
Kibali
CC&V
Expected low cost production
Asset sales
Assets or mining areas closed or
placed on care and maintenance
Portfolio restructuring
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Low cost production Tropicana (70% AGA)
On track and on budget to pour gold in the September quarter
from our first greenfield development in more than a decade.
Project schedule
Feasibility
study Construction Ramp up
Full
production
Feasibility study
completed; project
approved Q4-10
Q4 10
Commissioning underway
Mine life (approved project) of 10+ years
Remains on budget
Q3 13
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Low cost production Kibali (45% AGA)
A second greenfield development moving quickly to production
expected to contribute additional higher-quality ounces.
Project schedule
Located in the DRC
JV with Randgold and DRC Govt
Project on budget and on schedule with USD366m spent by end of
2012(a)
Open-pit mining exceeding planned tonnage and grade
Approved Q2 2012
Feasibility
study Construction Ramp up
Full
production
Q1 12
Village
resettlement
completed
(a) As per available 20F disclosures
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Additional production CC&V Mine Life Extension 2 (100%
AGA)
On track and on budget
to extend the life of our key North American asset.
Project schedule
c.USD100m spent as at end of 2012(a)
Engineering and design largely complete
Purchasing of the major mill equipment packages is nearly
complete
Contract awarded for construction of the Squaw Gulch Valley
Leach Facility
Feasibility
study Construction Ramp up
Full
production
Approved;
earthworks started
during final phase
of permitting
Q1 13
(a) As per available 20F disclosures
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This is a potential game changer for South African mining
and is progressing towards commercial application.
Developing prototype of key technologies to
potentially automate parts of AngloGold Ashantis deep-level
underground mining operations
This technology has the potential to improve
productivity by reducing mining of waste and
extracting mainly gold-bearing reef
Could lead to opportunities to produce gold from
high-grade shaft pillars where development is
largely done
Four additional 30m holes completed during Q1,
2013
Design of first production machine underway
Two long holes successfully filled with Ultra High
Strength Backfill show viability of technology
Focus is now on linking the technologies into a
commercially viable, integrated production system
Technology initiative in-stope reef boring
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Atlantis
Mark II
4.5d
3.2d Atlantis
Mark III
2d
Future
Rig
1d
Auto loading
Ore handling
Self aligning
Mobile
Disc cutting
Physical breaking
Cutter life
Atlantis
7d
Process optimization
More shifts
Higher power
Single pass
Raise-
bore
Theory
7d
30d
21d
14d
7d
Days to drill a 30m long hole
Current
performance
Current Machine being designed
Technology initiative in-stope reef boring
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Technology initiative Sunrise Dam
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Technology initiative Sunrise Dam underground RC drilling
Intensive development of GQ started in 2012.
Success of RC drilling for grade control in the open pit
applied to underground
Underground RC trials in October 2012 gave excellent
preliminary results
3-4 times faster than diamond drilling
Increased sample volume and density
High quality assay data for robust grade control modelling
Moved to full RC Grade Control in November 2012
...converting resource into reserve quickly.
GQ Orebody
900m
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2075
Section at 99520N
60m
Technology initiative Sunrise Dam optimised stoping
Drives not
required
New grade control approach suits bulk mining .
...leading to potential significant savings in underground
development costs.
Infill with production holes after sampling
Conditional simulation with stope optimisation enables a lower
cost, bulk mining approach
115mm RC holes have the ability to drill 60m, removing the need
for intermediate levels
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Tropicana Gold Mine project parameters*
Capital Cost: A$820-A$845 million
Annual Production first three years: 470,000-
490,000 ounces
LOM Production: 3.6 million ounces
Cash Costs first three years: A$590/oz-A$630/oz
LOM Cash Costs: A$710/oz-730/oz
Ore Reserves (as at December 31, 2011): 3.91 Moz
Mineral Resource (as at December 31, 2012): 7.89
Moz
Mining Methods: Conventional open cut with
potential for future underground mining
Plant Throughput: 5.8 million tonnes per annum (5.5
Mtpa on fresh material)
* 100% project updated August 2013
Tropicana Mine Site
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Tropicana Gold Mine status
All permitting and approvals in place
Commissioning of dry and wet plant underway
Power house commissioned and TSF construction completed
Full operating team in place and mobilised to site in the June
quarter along with the EPCM commissioning team
Procurement of capital and operating spares completed
Mining celebrated one year anniversary in July, 2013
Third Macmahon fleet commissioned in July
Ore for oxide commissioning phase stockpiled and initial grade
control results in line with resource model
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Tropicana Gold Mine - status
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Tropicana Gold Mine - status
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Tropicana innovation mine geology
Grade control sample logistics
TRADITIONAL PROCESS
improved safety, productivity and less errors.
Sampling Samples
Picked Up Samples
Transported Samples Resorted
SDO Created
Samples Picked Up
Samples Transported
Samples Resorted/
Reconciled
Samples loaded into
Racks
Samples loaded into
Ovens
Sent Offsite
TROPICANA PROCESS
.links evaluation, short to medium term scheduling, production
and processing.
Integrated
Planning Model
Automated Sample Prep/ Geomet
Integrated Planning Model
Scheduling Mining/ Minestar Processing
GC/ Geomet Models
UC Resource Model
Mine Blocks Exploration Model
GC Au
Recovery
WAD Cyanide Consumption
Mine Block Au
Sulphur %/ AMD GC Au 90% percentile
GC Au 10% percentile
Penetration Rates
XRF
Digger Productivity
Hardness
Hardness
Exp Au
Schedule Compliance
Planned Mining
Rocktype
Regolith
Profitability
Tropicana innovation integrated planning
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Drill
Excavator Trucks
CAT MineStar technology components
real time tracking of work execution, material movement, HME
asset management.
Tropicana innovation mining
Tropicana innovation maintenance
Asset Availability
Spares Profile
Labor Profile
Critical Failure Modes
Plant Availability & Capacity
Shutdown evaluation
Use of stockpiles/buffers
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CIL
Primary
Crusher
Coarse Ore
Stockpile Secondary
Crusher
HPGR Feed Bin
Fine Ore Stockpile Ball Mill
TSF
Over Size Ore
Stockpile
Phase 1
HPGR
oxide ore commissioning of primary crusher
Tropicana Gold Mine ore commissioning
CIL
Primary
Crusher
Coarse Ore
Stockpile Secondary
Crusher
HPGR Feed Bin
Fine Ore Stockpile Ball Mill
TSF
Over Size Ore
Stockpile
Phase 2
HPGR
oxide ore commissioning of circuit, HPGR bypassed
Tropicana Gold Mine ore commissioning
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Primary
Crusher
Coarse Ore
Stockpile Secondary
Crusher
HPGR Feed Bin
Fine Ore Stockpile Ball Mill
CIL TSF
Over Size Ore
Stockpile
Phase 3
HPGR
fresh ore commissioning full circuit
Tropicana Gold Mine ore commissioning
Primary
Crusher
Coarse Ore
Stockpile Secondary
Crusher
HPGR Feed Bin
Fine Ore Stockpile Ball Mill
CIL TSF
Over Size Ore
Stockpile
Phase 3
HPGR
Tropicana Gold Mine ore commissioning
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Tropicana Gold Mine ramp up
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South Africa(a)
30%
Continental Africa38%
Australia7%
Americas25%
South Africa42%
Continental Africa33%
Australia9%
Americas16%
(a) If adjusted for the estimated 235,000 oz of lost production
due to the unprotected strike action, South
Africa would have been approximately 36% of production in
2012
(b) Based on 2012 disclosed mineral reserves on an attributable
basis
Conclusion