Results for the second quarter ended 30 June AUGUST 2015

Transcription

1 Results for the second quarter ended 30 June AUGUST 2015

2 Building safety procedure SAFETY IS OUR FIRST VALUE in case of an emergency A siren will sound and information will be broadcast over the public address system. Move quickly to the nearest exit points, which are on both sides of the auditorium and at the back right hand corner. Please gather at the open car park behind Turbine Square where safety wardens will advise you on any additional procedures. 2 Second Quarter 2015 Results Presentation

3 Disclaimer 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, all-in sustaining costs, all-in costs, cost savings and other operating results, return on equity, productivity improvements, growth prospects and outlook of AngloGold Ashanti s operations, individually or in the aggregate, including the achievement of project milestones, commencement and completion of commercial operations of certain of AngloGold Ashanti s exploration and production projects and the completion of acquisitions, dispositions or joint venture transactions, AngloGold Ashanti s liquidity and capital resources and capital expenditures and the outcome and consequence of any potential or pending litigation or regulatory proceedings or environmental health and safety issues, are forward-looking statements regarding AngloGold Ashanti s 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 Ashanti s 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 AngloGold Ashanti s annual reports on Form 20-F filed with the United States Securities and Exchange Commission. 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. 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 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. 3 Second Quarter 2015 Results Presentation

4 Introduction Venkat

5 Delivering value in a bear market We continue to respond decisively and proactively to the current market Consistently strong operating performance Decisive action on operations, balance sheet Leading cost management performance overheads, operations, exploration and capital Portfolio improvements and rationalisation Long-term optionality across portfolio mediumterm brownfields and long-term greenfields Continued focus on sustainable improvements to margins and cash flow to ensure we remain ahead of the curve in volatile conditions. 5 Second Quarter 2015 Results Presentation

6 2015 Second quarter highlights Another strong performance drives cash flow improvements Free cash flow $71m Production 1,007koz Total cash costs $718/oz* beat guidance of $770/oz-$820/oz $111m increase from the previous quarter, despite falling gold price beat guidance of 960koz -1,000koz 14% Improvement year-on-year CC&V sale improves liquidity and lowers net debt profile; pro-forma Net Debt: EBITDA 1.44 times South Africa Region production improved 9% from Q1 2015, but still plenty of work to do AISC $928/oz* *Continuing operations AHE $26m Compared with $m loss year-onyear; lower than Q1 due to deferred stripping charge at Geita 12% Improvement year-on-year AISC at International operations $844/oz reflecting strong operating performance and continued balance sheet improvements. 6 Second Quarter 2015 Results Presentation

7 Safety performance Difficult end to the quarter with a fatality in South Africa... Fatal Injuries H1 AGA International South Africa AGA Total Regrettably, one fatality at Kopanang Improved on most safety metrics: AIFR by 4% q-on-q at 7.32; FIFR by 70% at 0.03; and LTIFR by 3% at 5.35 All injury frequency rate (AIFR) Per million hours worked Continental Africa achieves record low AIFR, with Siguiri, Iduapriem, Sadiola injury free TauTona record - two years fatality free; Moab Khotsong 2m fatality-free shifts Q2: 7.32 Major Hazard Management focus continues H1...reminds us that reaching zero harm will take hard work. 7 Second Quarter 2015 Results Presentation

8 Key metrics: Comparative performance Free cash flow more than doubled year-on-year... Performance update 2015 Q Q2 Change Year-on-Year Price Received ($/oz) % Production from continuing and discontinued operations (kozs) % Total cash costs ($/oz) % Corporate & marketing costs* ($m) % Exploration and study costs ($m) % Capital expenditure ($m) % All-in sustaining costs** ($/oz) % All-in costs** ($/oz) % Cash inflow from operating activities ($m) % Adjusted EBITDA ($m) % Free cash flow ($m) % *Includes administration and other expenses **World Gold Council standard, excluding stockpiles written-off...despite a sharp drop in gold price and lower production over the same period. 8 Second Quarter 2015 Results Presentation

9 South Africa Chris Sheppard

10 Regional overview: West Wits Production impacted by safety stoppages at Mponeng, de-risk plan underway 144,000 Production oz 114,000 Q Q , Q Costs $/oz 1,202 Q Q ,106 Mponeng negatively impacted by safety-related disruptions - Action plan in place to address seismicity challenges and ventilation constraints Mining halted in some developed areas above 120 level for safety reasons Full operational, capital and off-mine cost remodelling underway TauTona improved cash costs by 8% y-o-y as cost initiatives gained traction, despite increased energy tariffs Q Q *World Gold Council standard All in sustaining costs* Total cash costs full operational, capital and off-mine cost remodelling continues. 10 Second Quarter 2015 Results Presentation

11 PHASE I PHASE II Ongoing Mponeng update Work is underway to mitigate productivity challenges caused by delays to project area Challenges Productivity impacted by ongoing safety stoppages delaying access to B120L area - more than 100 days lost to project since February 2014 Mining now only above 120L (Levels 113/116/120) is sub-optimal given seismicity and lateral distance from infrastructure Fleet availability also impacting project Revised planning underway to mitigate safety challenge Review plan in order to mitigate seismicity and ventilation issues Development in ramp area Major infrastructure nearing completion Construction of ice dam, tipping and ore handling infrastructure Working on secondary support activities and column extensions with monorail extension Infrastructure, servicing the critical path development activities for the project Refurbished u/g fleet from Obuasi now on site the focus will be on improving safety for this long-term asset, whilst optimising cash flow. 11 Second Quarter 2015 Results Presentation

12 Regional overview: Vaal River Regulatory safety related stoppages lead to reduced production Production oz 120, Q ,000 Production affected by safety-related stoppages Moab Khotsong saw lower face values as mining moved out of high grade areas Q Q Costs $/oz 1,042 1,062 1,064 Q Q Successfully cleared ore pass blockage at Kopanang, now operating at full capacity Great Noligwa shaft on care & maintenance, with underground mining from Moab Khotsong Consolidation yielded $18m savings in efficiency improvements Q Q *World Gold Council standard All in sustaining costs* Total cash costs contained costs, partly assisted by weaker currency. 12 Second Quarter 2015 Results Presentation

13 South Africa development ORD is high on our priority list Our strategy is to ensure enough development is done now ORD has been negatively impacted by safety stoppages therefore a priority area Better safety performance will facilitate improved ORD volume and provide additional mining flexibility Ore reserve position is clearly stable, with Mponeng B120L project imperative to improving its position Kopanang reduction reflect changes to our model and economic assumptions - Mining becoming less flexible as mining fronts pinch out Available face length months Q Q Q Q Q Kopanang Moab Khotsong Mponeng TauTona to sustain planned future production. 13 Second Quarter 2015 Results Presentation

14 Regional overview: Surface Operations Ore transportation challenges impacted on production Production oz 55,000 46,000 Q Q ,258 50,000 Q Costs $/oz 945 Q , ,016 Q Production impacted by: higher intake of low-grade Kopanang marginal ore dump material changes in the transportation of ore to mitigate rail logistic challenges plant maintenance and lower production days y-o-y These are being mitigated by: revising the surface-dump retreatment operation, now focussing on optimisation of the flotation circuit to augment concentrate feeding the uranium plant sorting the carbon in the mix to ultimately improve and increase volumes *World Gold Council standard Q Q All-in sustaining costs* Total cash costs surface-dump retreatment operation being revised for optimum use. 14 Second Quarter 2015 Results Presentation

15 Wage negotiations We have made what we believe is a generous, above-inflation offer Employers remain committed to reaching a mutually acceptable agreement that will help ensure the sustainability of the industry Dispute declared by NUM after three-year, aboveinflation offer rejected; talks referred to CCMA for mediation The rejected offer included: For entry-level employees, additional R1,000 per month, each year for three years (no added benefits); R100 per month increase in living-out allowance in year one Guaranteed entry-level pay R13,200 per month in the 3 rd year of agreement (this is before overtime and production bonuses, which can add an average 20% in variable pay to employee s wages) Unions have also declined to enter Economic and Social Sustainability Compact with employers that would help provide job security Employers have reverted to original offer, which includes R750/m, plus benefits, for each of three years particularly given the major challenges faced by the SA gold industry. 15 Second Quarter 2015 Results Presentation

16 International Ron Largent

17 $/oz All-in Sustaining Costs International Operations This is reflected in the All-in Sustaining Costs $642/oz -43% Q Q Q Q Q Q Q Q Q Q Q AISC Gold price (Ave quarterly) Sources: HFM as at 06/08/2015 and the widening gap between AISC and gold price. 17 Second Quarter 2015 Results Presentation

18 AGA International Goldcorp Agnico Barrick Eldorado Newmont AngloGold Kinross Gold Fields Sibanye Gold Newcrest Polyus Gold Barrick Eldorado Randgold Polymetal Buenaventura Goldcorp Kinross Newcrest AGA International Agnico Newmont AngloGold Gold Fields Sibanye Gold Harmony Gold Polyus Gold Barrick Eldorado Buenaventura Polymetal Kinross Randgold Newmont Goldcorp Sibanye Gold Agnico AGA International Gold Fields Newcrest AngloGold Harmony Gold Improvements on industry all-in sustaining costs We are making systemic changes to our cost structure 2013 $/oz ,000 1,005 1,024 1,030 1,058 1,100 1,127 1,141 1,188 1,198 1,227 1,445 Ave* $1,062/oz 2014 $/oz % Ave* $976/oz Q $/oz -14% Ave* $964/oz *Average AISC for companies excludes AngloGold Ashanti International Operations **Harmony not yet reported, no reported quarterly AISC figures for Buenaventura, Polymetal and Polyus; AGA International AISC excludes central corporate overhead, which when allocated would amount to c.$24/oz in Q Source: Company reports, JPM working our way down the industry cost curve. 18 Second Quarter 2015 Results Presentation

19 Regional overview: Continental Africa Continental Africa Region continues to deliver strong performance... Production oz 395, ,000 Q Q Solid cost performance driven by Geita, Iduapriem, Morila and Kibali; the region achieved the lowest AISC for the group and lowest for the region since the first quarter of Costs $/oz 778 Geita benefitted from access to higher grade ore stripped last year in the Nyankanga pit, together with 8% increase in throughput due to softer material and higher mill efficiency Q Q Kibali operating stably at 600koz. Underground ramping up Siguiri production down on depletion of higher grade ore; focus now on continued exploration hard-rock plant All-in sustaining costs* Total cash costs *World Gold Council standard...with Geita emerging to offset weakness in other parts of the portfolio. 19 Second Quarter 2015 Results Presentation

20 Regional overview: Americas Cost discipline remains in place... Production oz 229, ,000 Solid performance from the Americas Region - costs down 15%, production higher year-on-year Q2 2014** Q2 2015** Costs $/oz 1, Cerro Vanguardia production up 13% with greater heap-leach contribution and other efficiencies. Cost initiatives focused on underground expansion, mill throughput and silver recovery In Brazil, production adversely impacted by lower feed-grades and tons treated following plan changes Q Q Production at Cuiabá Complex expected to improve on better grades and haulage rates All-in sustaining costs* Total cash costs *World Gold Council standard; ** includes CC&V...despite short-term issues that led to lower volumes from key assets in the quarter. 20 Second Quarter 2015 Results Presentation

21 Regional overview: Australia Sunrise Dam continuing strong improvement in productivities... Production oz 155, ,000 Q Q Costs $/oz 1, Q Q All-in sustaining costs* Total cash costs Australia Region costs improved significantly as Sunrise Dam mining costs down by more than 50% Sunrise Dam s underground mining run-rate now c2.75 Mtpa; mining unit costs more than halved Opportunity for cost improvement through better grade reconciliation Tropicana s production 81,000oz on lower throughput and lower head grade; total cash cost $533/oz Total cash costs at Tropicana increased partly due to the lower production and additional costs related to waste stripping of the new Boston Shaker pit Mining productivity continued to improve with total movement and ore volumes ahead of plan *World Gold Council standard...while Tropicana continues to deliver. 21 Second Quarter 2015 Results Presentation

22 Continue reducing holding cost 2015 Priority project work streams Work is underway pursuing key opportunities for each asset Sunrise Dam Resource conversion drilling at Vogue; evaluate ore-sorting opportunities; Concept study for ore handling infrastructure to lower future costs Tropicana Siguiri Geita Iduapriem CVSA Serra Grande Mineração Quebradona La Colosa Gramalote Regional drilling programme; explore in-pit backfilling options Access Area 1; Complete Hard rock plant PFS; Advance work on remote ore bodies Mobilise underground contractor for Star & Comet; Evaluate other underground options; Exploration for Geita Hill u/g Heap-leach test work complete; Confirm exploration potential Block 1 Examine mill throughput potential Focus on site and regional exploration opportunities; Underground ore options Review cut-off grade options; Developing new Palmeiras and Inga ore bodies; Maximise Lamego ore-body capabiulity; Continue drilling satellite ore bodies Explore plant throughput & ore sorting opportunities Complete Concept study Explore high-grade phase I & options to increase value Pre Feasibility Study in phased approach to end 2017 Review high-grade starter option with lower capital EIA submitted; PFS update ; Ore-body modelling updates in order to further optimise our portfolio and get costs to $900/oz AISC level. 22 Second Quarter 2015 Results Presentation

23 Projects, Planning & Exploration Graham Ehm

24 Project update: Kibali Exceeding expectations on development of this project Shaft bottom expected to be reached on 23 October 2015 at 760m Decline development continued on schedule; Paste plant completed; enables backfilling of first primary stope Power from second, 11MW hydropower station expected in Q3; third plant in early 2017 as it develops into a tier-one gold asset. 24 Second Quarter 2015 Results Presentation

25 Project update: Obuasi Decisive action continues to reset this world-class ore body Limited operations continued, producing 14,000oz from retreatment of tailings and remnant stockpiles Obuasi Deeps Decline development tracking according to plan Feasibility Study remains on course for completion by year end; optimisation of draft study now under way Aim to develop a simpler modern operation with: An operating footprint physically separate from the adjacent community of Obuasi A simpler modern underground mechanised mine, using contract mining Appropriately scheduled brownfields, advanced grade control and grade control drilling Integrated geological modelling with long, medium and short term mine planning Evaluated potential benefit of the development strike extensions Our proactive community engagement programme, through the Community Consultative Councils continues to provide updates to the community and various key stakeholders Commenced engagement with the government on approval requirements for redevelopment with progress in key areas during limited operations phase. 25 Second Quarter 2015 Results Presentation

26 LTM Production Koz Portfolio improvements Working to improve operating performances and adapt mine plans Geita Obuasi target zone WW Kibali Tropicana AGA Mineracao Cerro Vanguardia VR 220 Siguiri Surface Ops Sunrise Dam 120 Mali Serra Grande Iduapriem LTM AISC ($/oz) Bubble size = reserve size to move key assets further down the cost curve. 26 Second Quarter 2015 Results Presentation

27 Applying our mine planning approach: Geita options Sustaining margins whilst retaining optionality Option of moving away from higher cost Cut 9 and Cut 10 Redesign Cut 8 and accessing remaining ore from underground Reduce short-term exposure to lower gold price, whilst improving medium term cash flows Nyankanga Pit planned cutbacks Nyankanga Pit Resource model coded on classification (blocks >=3/t) by taking a forward-thinking approach to planning. 27 Second Quarter 2015 Results Presentation

28 Applying our mine planning approach: Sunrise Dam options Investigating underground infrastructure Underground crusher and conveyor offer efficiency gains by lowering trucking and ore re-handling costs Preliminary study and engineering design work underway to determine schedule and capital cost estimate Statutory approvals straightforward to reduce long term operating costs. 28 Second Quarter 2015 Results Presentation

29 Applying our mine planning approach: Tropicana options Extensions to current ore body Large cutback mined as a starter pit then strip mined Similar mining principles to open pit coal mining Potential cut back 4 Low mining cost through: Larger equipment, particularly shovels Short haulage distance with in-pit dumping Bench height & blasting optimisation High mining efficiency Starter Pit.via a stripping approach. 29 Second Quarter 2015 Results Presentation

30 Geita: Underground Targets Star and Comet Geita Hill Significant intersection: GHRD0058: from 350.5m 31.78g/t from 447.3m 30 Second Quarter 2015 Results Presentation

31 Kibali Gorumbwa: GDD173 intersect a new lode which is to be followed up. Significant intersections: GRC173 24g/t Au from 16m GDD g/t Au from 262m Pakaka: Significant intersections: PDD g/t Au from 63m PRC g/t Au from 76m PRC g/t Au from 48m PRC g/t Au from 84m PDD g/t Au from 59m 31 Second Quarter 2015 Results Presentation

32 Financials Christine Ramon

33 Currency exposure differentiates AngloGold Currency exposure cushions the drop in the gold price and provides benefit US$ Gold Price vs AGA Production Weighted Average Gold Price % % Jan Feb Mar Apr May Jun Jul-15 US$/oz AGA/oz in addition to lower oil prices and lower inflation, as we delivered another strong quarter. 33 Second Quarter 2015 Results Presentation

34 Quarterly financial and operating metrics Adjusted EBITDA remains robust, despite lower gold price Performance update Q Q Year-on-year change Price received ($/oz) 1,192 1,289-8% Production ( 000oz) 1,007 1,098-8% All-in sustaining costs*($/oz) 928 1,052 12% All-in costs*($/oz) 1,021 1,155 12% Adjusted EBITDA ($m) % Income taxes ($m) % Equity investments and other ($m) 34 (85) 140% Free cash flow before financing costs ($m) % Financing costs ($m) % Free cash inflow ($m) % Net debt ($m) (before the CC&V sale proceeds) 3,076 2,994 3% Cash cost sensitivities Oil price $10/bbl ~ $8/oz Currencies 1% ~ $6/oz *World Gold Council standard, excluding stockpiles written-off. leaving net debt to adjusted EBITDA largely unchanged year-on-year. 34 Second Quarter 2015 Results Presentation

35 $/oz Focusing on margins We remain focused on margins, even in a depressed gold price environment All-in sustaining costs, All-in costs and Average gold price Q Q Q Q Q Q Q Q Q Q Q All-in sustaining costs Average gold price All-in costs through a focus on cost control, portfolio improvements and operational excellence. 35 Second Quarter 2015 Results Presentation

36 Cost performance Significant cash cost improvements All-in sustaining cost $oz sold Excluding stockpile NRV and other adjustments Cash cost $/oz helped by efficiency improvements as well as currency and fuel leverage. 36 Second Quarter 2015 Results Presentation

37 Year-on-year AHE movements Second quarter AHE impacted by lower realized gold price and sales from last year Q vs Q Adjusted Headline Earnings ($m) Q AHE Normalised (65) Gold Price (101) Ounces Sold 31 Operating Cost 116 Local Currencies (17) Inflation (10) Amortisation 5 Net finance cost (46) Special operating items 62 Income from associates (25) Taxation 26 Q AHE...with help from local currency movements. 37 Second Quarter 2015 Results Presentation

38 Continued financial flexibility Our net debt to EBITDA ratio compares favourably to our peers Net debt: adjusted EBITDA* vs. Credit facilities covenant Debt covenant leverage ratio 3.5X 1.69 ZAR 508m A$270m US$ 800m US$459m Cash** Q Q Q Q Q Pro-forma *Last-12-month adjusted EBITDA Ratio based on restated results $2.5bn Strong liquidity of c. $2.5bn No material bond maturities until 2020 Significant covenant headroom Pro-forma Net debt: Adjusted EBITDA 1.44 times, after receipt of CC&V sale proceeds Net debt to EBITDA ratio compares favourably to peers Well-positioned to withstand lower gold price production disruptions US$819.4m Proceeds from CC&V ZAR calculated at R11.5/$, AUD facility calculated at 0.84$ to A$ **Cash $459m at 30 June 2015; CC&V sale proceeds received after quarter-end on 3August 2015 the reduced net debt level provides a buffer in a volatile market. 38 Second Quarter 2015 Results Presentation

39 Outlook Annual guidance adjustments reflects CC&V sale Q3 2015e Production Total cash costs Assumptions 900,000oz 950,000oz $ /oz Exchange rates of ZAR12.20/$, $0.77/A$, BRL3.00/$ and AP9.33/$; Brent $62/bl. Production Moz Total cash costs $/oz AISC $/oz Capex Notes Assumptions Previous guidance 2015e Full Year New guidance 2015e Full Year ,000-1,050 $1.0 - $1.1bn»» ,000-1,050 $900m- $1bn Production and capex guidance for the full-year reduced to reflect sale of CC&V. Exchange rates of ZAR11.60/$, $0.85/A$, BRL2.60/$ and AP9.50/$; Brent $70/bl. Exchange rates of ZAR12.05/$, $0.78/A$, BRL2.98/$ and AP9.19/$; Brent $62/bl. Both production and cost estimates assume neither labour interruptions, power disruptions, or changes to asset portfolio and/or operating mines. Production and total cash costs estimates assume one month of operating results from CC&V. Other unknown or unpredictable factors could also have material adverse effects on our future results and no assurance can be given that any expectations expressed by AngloGold Ashanti will prove to have been correct. Please refer to the Risk Factors section in AngloGold Ashanti s annual report on Form 20-F for the year ended 31 December 2014, filed with the United States Securities and Exchange. while we continue to look for improvements on all metrics. 39 Second Quarter 2015 Results Presentation

40 Q conclusion Venkat

41 Operating performance vs. guidance We ve shown consistent performance Production 000oz Cash costs $/oz Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2' Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Actual Guidance ** Actual Guidance ** **Guidance refers to midpoints of guidance provided for each period in delivering on our commitments. 41 Second Quarter 2015 Results Presentation

42 Below Current Spot Price Above Current Spot price Weathering a weaker price environment Ongoing P500 initiatives, favourable currency exposure and weaker oil prices will continue to provide a partial, natural cushion for lower gold prices. In addition we have the following focus areas Corporate overhead and exploration costs reduced by more than two-thirds from 2012 Conservative plan assumptions; marginal projects shelved and focus on margin over volume Improved balance sheet flexibility by asset sales, terming out debt, raising debt covenant Sharp cost focus Renegotiating mining/supply contracts, less expat labour; mine redesigns AISC down 25%, AIC down 35% since 2012, whilst keeping long-term options intact Conservative near-term planning assumptions which will focus margins South Africa safety focus to help recover volume Intensify efforts to reduce improve efficiencies and reduce all costs across our portfolio Restrict exploration and reef-boring to further focus on near- to medium-term production Significantly reduce Colombia portfolio costs Optimise Obuasi redevelopment schedule Harvest short-life mines for cash. 42 Second Quarter 2015 Results Presentation

43

44 Cost performance We continue to deliver cash cost reductions All-in sustaining cost $oz sold Excluding stockpile NRV and other adjustments Q Cash costs Rehab & other noncash cost Inventory change Corporate cost Exploration cost SIB Capex Other Q which help offset the anticipated seasonal increase in sustaining capex. 44 Second Quarter 2015 Results Presentation

45 Quarter-on quarter AHE movements Quarter-on-quarter gold price movements impacted AHE... AHE movements Q1 to Q ($m) Q AHE Gold Price Ounces sold Operating cost Local Currencies Inflation AmortisationIncome from associates Other Q AHE...largely offset by benefits from continued cost savings work. 45 Second Quarter 2015 Results Presentation

46 Cost Performance June Quarter 2015 vs Prior Quarter Cash cost $/oz produced Q Exchange Inflation Volume and grade Stockpiles and inventory Bu products Efficiency Other Q Second Quarter 2015 Results Presentation

47 Cost Performance June Quarter 2015 vs Prior year same Quarter Cash cost $/oz produced Q Exchange Inflation Volume and grade Stockpiles and inventory Royalties Efficiency Other Q Second Quarter 2015 Results Presentation