6-K 1 anglogold_afs.htm AngloGold-AFS
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF
THE SECURITIES EXCHANGE ACT OF 1934
Report on Form 6-K dated March 26, 2021
Commission File Number 1-14846
AngloGold Ashanti Limited
(Name of registrant)
76 Rahima Moosa Street
Newtown, 2001
(P.O. Box 62117, Marshalltown, 2107)
South Africa
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover of
Form 20-F or Form 40-F.
Form 20-F X
Form 40-F
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by
Regulation S-T Rule 101(b)(1):
Yes
No X
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by
Regulation S-T Rule 101(b)(7):
Yes
No X
Indicate by check mark whether the registrant by furnishing the information contained in this
Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b)
under the Securities Exchange Act of 1934.
Yes
No X
Enclosure: Press release ANGLOGOLD ASHANTI LIMITED – ANNUAL FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2020
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OUR VISION, MISSION AND VALUES
AngloGold Ashanti Limited
<AFS>

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CONTENTS
1
AngloGold Ashanti Limited <AFS>


SECTION 1
SECTION 2
GOVERNANCE
MANAGEMENT DISCUSSION
2
Audit and Risk Committee – Chairman’s letter
8
Chief Financial Officer’s Review

SECTION 3
SECTION 4
FINANCIAL STATEMENTS
OTHER
22
Director’s approval
125
Shareholders’ information
22
Directors’ responsibility statement
126
Glossary of terms and abbreviations
22
Secretary’s certificate
129
Forward looking statements
22
Affirmation of financial statements
130
Administrative and corporate information
23
Directors’ report
29
Independent auditor’s report
33
Group financial statements
93
Company financial statements
115
Annexure A: Summary of significant accounting policies
124
Principal subsidiaries and operating entities

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AUDIT AND RISK COMMITTEE – CHAIRMAN’S LETTER
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AngloGold Ashanti Limited <AFS>
It is my pleasure to present, on behalf of the Audit and Risk Committee (“the Committee”), an overview of the activities performed
during the 2020 financial year, which in many respects has been an unprecedented year that brought challenges that have been
navigated successfully by AngloGold Ashanti. The activities and material matters deliberated on during our scheduled meetings
extend beyond statutory compliance and relate to the Committee's role in supporting value creation and delivery of AngloGold
Ashanti’s strategic objectives. This report is presented in accordance with the Company’s Memorandum of Incorporation (MOI),
the requirements of the Companies Act, No. 71 of 2008, as amended, (the Companies Act), Principle 8 and Principle 15 and the
recommended practices contained in the fourth King Report on Corporate Governance for South Africa (King IV™), the JSE listing
requirements as well as the Committee’s formally approved charter, the latter being reviewed and approved by the board on an
annual basis, or more frequently if so required.
ROLE AND FOCUS
The Committee is an independent statutory committee and all members were appointed by the AngloGold Ashanti shareholders at
the Annual General Meeting (AGM) held on 10 June 2020. The Committee has decision-making authority with regards to its
statutory duties and is accountable in this regard to both the shareholders and the board of AngloGold Ashanti.
It is the Committee’s principal regulatory duty to oversee the integrity of the group’s internal control environment and to ensure that
financial statements comply with International Financial Reporting Standards (IFRS) and fairly present the financial position of the
group and Company and the results of their operations.
Management has established and maintains internal controls and procedures which are reviewed by the Committee and reported
on through regular reports to the board. These internal controls and procedures are designed to identify and manage, rather than
eliminate, the risk of control malfunction and aim to provide reasonable but not absolute assurance that these risks are well
managed, and that material misstatements and/or loss will not materialise.
The board assumes ultimate responsibility for the functions performed by the Committee, relating to the safeguarding of assets,
accounting systems and practices, internal control processes and preparation of financial statements in compliance with all
applicable legal and regulatory requirements and accounting standards.
COMPOSITION, PROCEEDINGS AND PERFORMANCE REVIEW
The Committee comprises of independent non-executive directors who collectively possess the independence, skills and knowledge
to oversee and assess the strategies and processes developed and implemented by management to manage the business within
a diverse and continually evolving business environment. During the year, Rhidwaan Gasant was the elected chairman of the
Committee and fulfilled this role at each of the 5 meetings held during 2020. Due to the COVID-19 pandemic, only the
February 2020 meeting was held in person with the rest of the meetings, including the pre-meetings, being held using Microsoft
Teams.
I was elected chairman effective 1 December 2020 and have overseen the 2020 year-end reporting process. Please allow me to
thank Rhidwaan for his leadership, direction and dedication during his term as chairperson of the Committee. It was a privilege to
serve under him.
Composition of the Audit and Risk Committee and meeting attendance:
Member
Appointed
Attendance
Mr. AM Ferguson – BSc Accountancy and Business Economics (University of
Southampton); CA (Institute of Chartered Accountants of Scotland) – Appointed
Chairperson 1 December 2020
Mr. R Gasant – Chairperson (1 January – 30 November 2020) – BCompt (Hons),
CA (SA), ACIMA, Executive Development Programme
10 June 2020
100%
5/5 meetings
10 June 2020
100%
5/5 meetings
Ms. MC Richter – BA, Juris Doctor
10 June 2020
100%
5/5 meetings
Mr. JE Tilk – Bachelors, Mining Engineering (University of Aachen); Masters,
Mining Engineering (University of Aachen)
10 June 2020
100%
2/2 meetings
Mr. R Ruston – MBA Business, BE (Mining)
9 May 2019
Retired March 2020
Ms. Nelisiwe Magubane – Pr.Eng, BSc, MBA
Board appointed
14 December 2020
100%
2/2 meetings
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AngloGold Ashanti Limited <AFS>
The Chief Executive Officer, Chief Financial Officer, Senior Vice President: Group Finance, Vice President: Finance, Group General
Counsel and Company Secretary, Senior Vice President: Group Internal Audit, Vice President: Global Taxation, Group Risk
Manager, Chief Information Officer, Group Compliance Officer, the External Auditors, as well as other members of management
are invited to attend committee meetings in an ex-officio capacity and provide responses to questions raised by committee members
during meetings. At every scheduled quarterly meeting the full Committee meets separately during closed sessions with
management, internal audit and external audit.
Recommendations on the appointment of Committee members for the 2021 financial year are detailed in the Notice of Annual
General meeting
<NOM>.
Evaluation of the effectiveness and performance of the Committee was externally assessed for the 2020 year, however the
assessment process was delayed due to implications of COVID-19 and a change in leadership towards the latter part of the year.
Once the results have been finalised, the Committee will consider the results and address areas of improvement identified.
DISCHARGING OUR DUTIES
The Committee’s duties as required by section 94(7) of the Companies Act, King IV, JSE Listing Requirements and board-approved
terms of reference is set out in the Audit and Risk Committee’s annual work plan. These duties were discharged as follows:
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AngloGold Ashanti Limited <AFS>
HIGHLIGHTS OF 2020
In addition to the execution of the Audit and Risk Committee’s statutory duties, set out below are some highlights of 2020:
Focus area
Actions
Financial reporting
Market updates, half-
year and annual IFRS
reports
Reviewed and recommended the trading and market updates, half-year and annual IFRS financial statements
to the board for approval and subsequent submission to the JSE, SEC and other stock exchanges as
applicable, after:
•   assessing the key audit matters for the year-end 31 December 2020:
Sale of South African Assets: questioned and considered the responses from management around the
calculation of the loss on disposal, the treatment and accounting of residual deferred tax, the treatment
of the foreign currency translation reserve and associated disclosures,
Obuasi redevelopment: assessed the responses from management around the assessment of
commencement of commercial production, the treatment of interest costs as well as the judgements
around deferred tax,
Geita VAT recoverability: assessed the validity of the balance considering the impact of the new Finance
Act in Tanzania, the recoverability of the balance and management’s rationale and assumptions applied,
and
Rehabilitation and decommissioning provisions: considered the governance processes around the
accounting of these provisions and the judgements applied around discounting factors, life of mine
assumptions and commitments made impacting these provisions;
•   ensuring that complex accounting areas complied with IFRS;
•   carefully evaluating significant accounting judgements, including but not limited to environmental
rehabilitation provisions, taxation provisions and the valuation of the portfolio of assets (including
impairments) and estimates;
•   reviewing and assessing the disclosure of contingent liabilities, commitments and impact of outstanding
litigation in the financial reports; and
•   reviewing, assessing and approving adjusted and unadjusted audit differences reported by the external
auditors.
New listing
requirement3.84(k)
Reviewed and assessed the process management had in place to allow the Interim Chief Executive Officer
and the Interim Chief Financial Officer to opine on the annual financial statements and the system of internal
control over financial reporting.
Mineral Resource and Ore Reserve Report
Annual Mineral
Resource and Ore
Reserve Report
Reviewed and recommended for approval the annual Mineral Resource and Ore Reserve Report prepared in
accordance with the minimum standards described in the South African Code for the Reporting of Exploration
Results, Mineral Resources and Mineral Reserves (The SAMREC Code, 2016 edition), after:
•   evaluating the internal control environment associated with the Mineral Resource and Ore Reserve
estimation process;
•   considering the work of the Investment Committee in this area;
•   receiving confirmation that the Competent Persons appointed approved the Mineral Resources and Ore
Reserves; and
•   reviewing and assessing for reasonableness the year-on-year reconciliation of the Mineral Resources and
Ore Reserves.
Corporate governance
Risk Management
Monitored the effects of COVID-19 on the operations and the group risk profile as well as the appointment of
the Interim CEO and CFO which meant it was appropriate for more frequent interaction between the
Committee and management whilst ensuring that the clear distinction between the different roles was upheld
at all times.
Reviewed and approved the risk management policies, standards and processes; received and considered
reports from the Group Risk Manager in relation to the key strategic and operational risks facing the Company;
and received presentations on the following emerging risks and topics to obtain an in-depth analysis and
understanding:
•   “COVID-19 Pandemic” – the impact of this risk was assessed continuously during 2020;
•   “Obuasi – Production ramp-up and operational risk profile” and
•   “License to Operate”.
IT Governance and
Cyber Security
The Committee received and reviewed detailed reports from the Chief Information Officer on the group’s
information and technology framework and had detailed discussions around cyber security including inherent
risks and vulnerabilities with an increasing focus on operational areas. The Committee considered the current
action plans in place to manage the associated risk exposure and received updates on measures taken to
safeguard AngloGold Ashanti during the COVID-19 pandemic.
Combined Assurance
The Committee closely monitored the actions implemented by management during 2020 to provide the
required assurance amidst the closure of borders preventing on site reviews through more integration between
the various in-house assurance providers and an increased use of technology. The Committee considers the
current model as effective and efficient in that it fully integrates with the risk management function.
Sarbanes-Oxley
Compliance (SOX)
The Committee has overseen the SOX compliance efforts of management through receiving quarterly updates
on controls associated with financial reporting and assessed the final conclusion reached by the Interim Chief
Executive Officer and Interim Chief Financial Officer on the effectiveness of the internal controls over financial
reporting.
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AngloGold Ashanti Limited <AFS>
Focus area
Actions
Compliance
The Committee monitored the execution of the global compliance governance framework that allows for a
systematic risk-based approach for group, regions and operations to identify and monitor compliance to major
laws, regulations, standards and codes.
Litigation matters and
contingent liabilities
The Committee received and considered reports on significant litigation matters as well as contingent liabilities
and assessed the possible impact thereof on the group financial results.
INTERNAL AUDIT
Group Internal Audit is a key independent assurance partner within AngloGold Ashanti under the leadership of the Senior Vice
President: Group Internal Audit who has direct access to the chairmen of both the Committee and the board. The Senior Vice
President: Group Internal Audit reports functionally to the Audit and Risk Committee and administratively to the Chief Financial
Officer, and is not a member of the Executive Committee but has a standing invitation to attend these meetings. As part of its
mandated responsibilities, the Committee has assessed the performance of the Senior Vice President: Group Internal Audit in terms
of the annually reviewed and approved internal audit charter and is satisfied that the internal audit function is independent and
appropriately resourced, and that the Senior Vice President: Group Internal Audit has fulfilled the obligations of the position by
reporting to the Committee on the assessment of:
ethical leadership and corporate citizenship;
risk governance;
IT governance;
compliance with laws, rules, codes and standards;
the effectiveness of internal controls over financial reporting and internal controls in general; and
the effectiveness of the Combined Assurance Framework for the group.
The Committee considered the approach Group Internal Audit adopted in 2020 to provide the necessary assurance around the
effectiveness of governance, risk management and internal control amidst COVID-19 and is comfortable that the approach was
appropriate. The Committee considered the heat-map for AngloGold Ashanti as presented by Group Internal Audit and monitored
the implementation of significant audit recommendations through a formal tracking process.
Internal Audit will focus on the remediation work currently in progress around control weaknesses identified at the Siguiri Mine in
the Africa Region where a gold in process error arose. A formal report thereon is scheduled for at the next Committee meeting.
The noted control failure does not render the internal control environment ineffective but requires a close assessment by the
Committee.
As Chairman, I meet with the Senior Vice President: Group Internal Audit in private before each meeting and on an ad-hoc basis
throughout the year.
The Committee is of the opinion, having considered the written assurance statement provided by Group Internal Audit, that nothing
has come to its attention indicating that the group’s system of internal financial controls is not effective and does not provide
reasonable assurance that the financial records may be relied upon for the preparation of the annual financial statements.
EXTERNAL AUDIT
The current auditors Ernst & Young are level 1 B-BBEE contributors. The audit cycle at AngloGold Ashanti is continuous as the
External Auditor performs half yearly reviews on the results of the group. During August 2020, the annual integrated audit plan, the
associated fees and the 2020 global engagement letter were tabled at the Committee for consideration and approval. During the
year the Committee considered the responses of the auditors on how they are managing the audit in an COVID-19 environment
and the impact on their assurance process.
As Chairman, I meet with the primary engagement team members in private before each scheduled meeting where I am also briefed
on general matters relating to the accounting and auditing profession as it may impact on AngloGold Ashanti.
As part of its ongoing assessment of the independence and effectiveness of the external auditors, the Committee has also
considered during its evaluation of the independence of Ernst & Young factors such as:
the tenure of service;
the quality of planning, delivery and execution of the audit;
quality and knowledge of the audit team, specifically the senior management team, including the lead engagement partner;
the results of the most recent IRBA and PCAOB regulator reviews and the responses of the firm on observations raised in these
reports;
outcome of the quality assessment review performed during the first half of 2020; and
the robustness of the audit, including the audit team’s ability to challenge management as well as demonstrate professional
skepticism and independence.
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AngloGold Ashanti Limited <AFS>
In addition, when considering the re-appointment of the External Auditor at the annual general meeting, the Committee satisfied
itself that the External Auditor is accredited on the JSE list of Auditors and Accounting Specialists, and that the individual auditor
responsible for performing the functions of the auditor, does not appear on the JSE list of disqualified individual auditors, as set out
in Section 22.
To further safeguard auditor independence, a formal policy on the approval of all non-audit related services has been approved
and implemented. In terms of the policy the Committee has established that the sum of the non-audit and tax fees in a year must
not exceed 40% of the sum of the audit and audit-related fees in the year. The Committee received a quarterly update on the tax
and non-audit fees as a percentage of the total audit and audit related fees and are comfortable that the external auditor’s
independence had not been jeopardised.
During 2020, the external audit fees amounted to $8.15m made up of audit services of $6.02m, audit-related services of $1.80m,
non-audit services of $0.01m and tax services of $0.32m. The latter two amounted to 4.2% of the audit and audit-related fees, well
within the allowed maximum of 40%.
The Committee did not note any significant adverse findings and considers the service provided by the external auditors to have
been independent, effective and robust and therefore recommended their reappointment for the 2021 audit.
However, given the long tenure of Ernst & Young as our external auditor, the Committee has decided that it is now appropriate to
put the audit out for tender for the 2023 year-end audit. In this regard the planning has already started and discussions have been
held with a number of audit firms to establish their appetite to tender for the audit and their independence. We have also been
provided with details of possible leadership teams and we are in the process of selecting those who we believe are best suited to
lead the audit of AngloGold Ashanti. It is planned that the Request for Proposal will be issued late in the second quarter of 2021.
FINANCE FUNCTION AND CHIEF FINANCIAL OFFICER
The Committee received feedback on an internal assessment conducted on the skills, expertise and resourcing of the finance
function and was satisfied with the overall adequacy and appropriateness of the function. The Committee further reviewed the
expertise and experience of the Interim Chief Financial Officer, Ian Kramer, and was satisfied with the appropriateness thereof.
In evaluating the finance function, and considering the input of the senior finance team during private meetings held before each
scheduled meeting with the Chairperson, the Committee concluded that:
the finance function’s management philosophy and control environment were consistent amidst senior personnel changes
during 2020;
management of the finance function has provided the required guidance to operations during the different stages of lock-downs
arising from the COVID-19 pandemic;
the organisational structure of the finance function was appropriately designed, having the required authority and responsibility
that promoted accountability and control;
the finance function had properly applied accounting principles in the preparation of the financial statements and the accounting
of non-routine transactions; and
the group’s financial reporting procedures were considered to be effective and reliable.
TAX GOVERNANCE AND STRATEGY
The Committee also approved the group’s tax strategy and tax management policy, which together, set out the group’s approach
to tax in areas such as tax efficiency, tax risk management and tax governance and oversight, which is more fully explained in the
Integrated Report
<IR>.
The Committee received and reviewed detailed quarterly reports from the Interim Chief Financial Officer and Vice President: Global
Taxation, jointly, on the group’s tax position including uncertain tax positions, effective tax rates, tax provisions, recoverability of tax
receivables, status of the group’s tax compliance globally and relevant global fiscal developments impacting the group.
WHISTLEBLOWING
The Committee received quarterly updates on AngloGold Ashanti’s whistleblowing process. Where appropriate the Committee
directly oversees the investigation of whistle-blowing reports.
During the year, 176 (2019 - 142) reports were received. The Committee is comfortable that the whistle-blowing process is robust
and that each report received is taken seriously and thoroughly investigated.
Reports received and investigated did not reveal any malpractice relating to the accounting practices, internal financial controls,
internal audit function or the content of the Company’s and group’s financial statements.
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AngloGold Ashanti Limited <AFS>
STATEMENT OF INTERNAL CONTROL
The opinion of the board on the effectiveness of the internal control environment is informed by the conclusion of the Audit and Risk
Committee.
The Audit and Risk Committee assessed the results of the formal documented review conducted by Group Internal Audit and other
identified assurance providers in terms of the evolving combined assurance model of the group’s system of internal controls and
risk management, including the design, implementation and effectiveness of the internal financial controls. The assessment, when
considered with information and explanations given by management and discussions with both the internal and external auditors
on the results of their audits, led to the conclusion that nothing has come to the attention of the board that caused it to believe that
the Company’s system of internal controls and risk management is not effective and that the internal financial controls do not form
a sound basis for the preparation of reliable financial statements.
ANNUAL FINANCIAL STATEMENTS
The Committee has evaluated the consolidated and separate annual financial statements for the year ended 31 December 2020
and concluded that it complies, in all material aspects, with the requirements of the Companies Act, International Financial Reporting
Standards, and JSE Listing Requirements. The Committee therefore recommended the approval of the annual financial statements
to the board.
EVENTS POST YEAR END
Management confirmed to the Committee that there had been no significant post year-end events that had to be considered for
disclosure.
LOOKING FORWARD
The Committee realises that its work is increasingly broad and complex and as a committee we are required to stay on top of
developments impacting AngloGold Ashanti. During 2021, the Audit and Risk Committee will:
monitor the finalisation of the remainder of the South Africa Operations sale process and the management of legacy projects
stemming from the transaction;
monitor the continuing ramp-up of the Obuasi operations to full production and the impact on associated business processes;
monitor the remediation work currently in progress around control weaknesses identified at the Siguiri Mine in the Africa Region.
A formal report thereon is scheduled for the next Committee meeting. The noted control failures do not render the internal
control environment ineffective, but requires a closer assessment by the Committee;
monitor the cyber environment and the group’s prevention and defense capabilities in terms of risk exposure;
lead on the adopted approach to Mandatory Audit Firm rotation which will be effective for the 2023 financial year;
assess the audit services pre-approval policy and guidance in terms of the fees spent on tax and permissible non-audit services
expressed as a percentage of the audit fees;
consider the outcome of the board's consideration of the Quebradona project, and should the project be approved, monitor the
further design and development of the internal control environment as the project progresses;
assess the impact of the rule changes accepted by the Securities Exchange Commission around disclosures associated with
Mineral Resource and Ore Reserve – S-K1300 Guide; and
consider management’s proposals in relation to the integration of the group’s information technology and operations technology
processes.
CONCLUSION
The Committee is satisfied that it has considered and discharged its responsibilities in accordance with its mandate, statutory
responsibilities and terms of reference during the year under review. In signing this report on behalf of the Committee, I would like
to thank my fellow committee members, the external auditors, internal auditors and management for their contributions to the
Committee during this challenging financial year.




Alan Ferguson
Chairman: Audit and Risk Committee
26 March 2021
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AngloGold Ashanti Limited <AFS>
CHIEF FINANCIAL OFFICER’S REVIEW
EXECUTIVE SUMMARY
(1)
AngloGold Ashanti demonstrated its ability to balance the competing capital needs of the business while
delivering improved value to shareholders
The Company reported a solid operational and financial performance for 2020, with good progress made
in delivering on strategic commitments, despite the continuing COVID-19 pandemic. At the start of the
year, AngloGold Ashanti outlined a series of important objectives as it sought to streamline the business,
further strengthen its balance sheet, improve the overall quality of its portfolio, increase the lives of its key
assets and ensure improved direct returns to its shareholders.
Progress was made on each of these objectives, with the increased investment in its ore bodies yielding
net increases in Ore Reserve and Mineral Resource of continuing operations; the redevelopment of the
Obuasi Gold Mine tracking to its revised schedule; the portfolio streamlined following the sale of operating
assets in South Africa and Mali; the balance sheet further strengthened with debt at its lowest levels in a
decade and a marked improvement in cash generation; and feasibility studies for Gramalote and
Quebradona, the two Colombian projects, progressing to schedule ahead of investment decisions in 2021.
The improved performance of the business, coupled with a higher dividend payout ratio, ensured a fivefold
increase in the annual dividend payment for 2020. The Company achieved all of these strategic milestones
without approaching shareholders for new equity in the last decade.
Financial highlights of the year under review include:
Free cash flow increased 485% year-on-year to $743m in 2020 – excluding asset sale proceeds – from
$127m in 2019
Free cash flow before growth capital up 124% year-on-year to $1,003m in 2020, from $448m in 2019
Net cash inflow from operating activities increased 58% to $1,654m in 2020, from $1,047m in 2019
Achieved 2020 full year revised guidance: Production of 3.047Moz in 2020, notwithstanding COVID-19
impacts estimated at 140,000oz
All-in sustaining costs (AISC) margin from continuing operations rose to 42% in 2020, from 30% in 2019
Basic earnings from continuing operations increased 160% year-on-year to $946m in 2020, from $364m
in 2019
Adjusted EBITDA for continuing operations up 56% year-on-year to $2,470m in 2020, from $1,580m in
2019; highest since 2012
Dividend increased more than fivefold to approximately 48 US cents per share in 2020, from 9 US cents
per share in 2019
Adjusted net debt from continuing operations down by 62% year-on-year to $597m in 2020, from
$1,581m in 2019; lowest in the last ten years
(1)
The information included in the Chief Financial Officer’s review is provided for the AngloGold Ashanti group (i.e. including South
Africa), unless otherwise indicated as continuing operations. Following the announcement of the South African asset sale and
up until the sale concluded in September 2020, the South African operations were recorded as discontinued operations in the
financial results.
GOLD MARKET
2020 proved to be one of the most tumultuous in modern history, marked by a number of developments that were unprecedented.
There was the speed at which the COVID-19 pandemic escalated, the severity of the lockdowns, the size of the government stimulus
measures globally, and the magnitude of the equity market rebound. Perhaps the biggest surprise was that global gold equities
have gained around 14% for the year 2020, an outcome few would have predicted during a global pandemic. The year also
demonstrated the incredible resilience of people, institutions, and financial markets.
As the pandemic unfolded and uncertainty increased, risk averse investors navigated towards gold. This influx into the gold market
drove the price of gold up 25% year-on-year from $1,517/oz as at 1 January 2020 to $1,896/oz as at 31 December 2020. Gold
price volatility skyrocketed recording the variance between the highest ($2,063/oz) and lowest ($1,469/oz) gold price during 2020
at 40%. At its high, this was also a new all-time high for the price of gold.
According to the World Gold Council (WGC), global investment demand grew by 40% to a record annual high of 1,773.2 tonnes.
Global gold-backed exchange traded funds (ETFs) holdings grew by 877.1 tonnes during 2020, reaching record year-end holdings
of 3,751.5 tonnes. Bar and coin investment of 896.1 tonnes was 3% higher year-on-year, with unfettered growth coming through in
the second half of the year.
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AngloGold Ashanti Limited <AFS>
On the other hand, higher gold prices and weaker local currencies drove the domestic price of gold to historical highs, negatively
impacting the demand for jewellery. In addition, the restriction on social gatherings further exacerbated the decrease in the demand
for jewellery. Total annual jewellery demand dropped to 1,411.6 tonnes (34% lower year-on-year), the lowest in the recorded history
of the WGC annual data series.
Official reserves were a mixed bag of buying and selling during 2020. In total, Central banks added 273 tonnes to their reserves
during the year, making it the eleventh consecutive year of net buying. However, this was almost 60% lower than the multi-decade
record of 668 tonnes added in 2019.
Total supply fell in 2020 by 4% year-on-year to 4,633.1 tonnes, the largest annual decline since 2013. The drop was primarily due
to disruptions caused by the pandemic. Mine production declined 4% year-on-year, while the global hedge book fell by 65.1 tonnes
in 2020, more than reversing the small increase in hedging seen in 2019. Lockdown restrictions also impeded consumers’ ability to
sell back and the supply of recycled gold grew by only 1% despite record gold prices in every market. That said, at 1,297.4 tonnes,
2020 marks the highest level of recycling since 2012 (1,645.1 tonnes).
The average price of gold during 2020 was $1,772/oz and AngloGold Ashanti received an average price for gold sold of $1,778/oz
for continuing operations.
GROUP FINANCIAL PERFORMANCE
Net cash inflow from operating activities for the year increased by 58% to $1,654m in 2020, compared to $1,047m in 2019. Free
cash flow for the year improved by 485% to $743m in 2020, compared to $127m in the prior year, primarily driven by the increase
in received gold prices.
Production for 2020 decreased by 7% mainly due to the sale of our remaining South African producing assets, the cessation of
mining activities at Sadiola and Morila in Mali, and the impact of the COVID-19 pandemic. The group’s AISC came in at $1,059/oz
in 2020, compared with $998/oz in 2019. The COVID-19 impact on production in 2020 was estimated at 140koz or 5% and its
impact on AISC was estimated at $55/oz or 5%. Production from continuing operations for 2020 was 2.806Moz at a total cash cost
of $790/oz, compared with 2.862Moz at a total cash cost of $746/oz in 2019. AISC for these continuing operations was $1,037/oz
in 2020, compared with $978/oz in 2019. On a continuing operations basis, the impact on production from COVID-19 in 2020 was
estimated at 59koz or 2% and its impact on AISC was estimated at $32/oz or 3%.
The performance for the year was underpinned by Geita's highest annual production level in 15 years, whilst steady performances
at Kibali, Iduapriem, Siguiri, Sunrise Dam, and AGA Mineração helped offset declines in production at Tropicana, Cerro Vanguardia
(CVSA) and Serra Grande. The Obuasi Redevelopment Project continued its ramp-up, delivering 127koz in production despite
delays in receiving equipment and in the arrival of skilled personnel, critical to the project, as a result of lockdowns in various
jurisdictions during the year.
The higher gold price helped drive the improved financial performance year-on-year. Adjusted earnings before interest, tax,
depreciation and amortisation (Adjusted EBITDA) rose 50% year-on-year to $2,593m in 2020, from $1,723m in 2019.
Basic earnings attributable to equity shareholders for the year ended 31 December 2020 were $953m, or 227 US cents per share,
compared with a $12m loss, or 3 US cents loss per share in 2019. Basic earnings for the continuing business for the year ended
31 December 2020 were $946m, or 225 US cents per share, compared with $364m or 87 US cents per share in 2019.
Headline earnings for the year ended 31 December 2020 were $1,000m, or 238 US cents per share, compared with $379m, or
91 US cents per share in 2019. Headline earnings benefitted from the higher gold price net of increased profit-related taxes. In line
with the capital allocation discipline strategy, the Company has demonstrated its ability to balance the competing capital needs of
the business with delivering improved dividends to shareholders. Among the key financial milestones achieved in 2020 were:
      ☑
      ☑
      ☑
      ☑
      ☑
      ☑
      ☑
      ☑
      ☑
Free cash flow up more than fivefold to $743m, driving Adjusted net debt to its lowest level in ten years, at $597m
Annual guidance met or improved upon for the eighth consecutive year on production, cost and capital expenditure
Dividend pay-out ratio doubled to 20% of free cash flow before growth capital; annual dividend increased fivefold, a 2% yield
Improved balance sheet flexibility with new $700m, 10-year bond at a record low coupon of 3.75% per annum
Commercial production achieved at Obuasi Phase 1; Phase 2 90% complete
Achieved commercial underground production at Tropicana’s Boston Shaker - on schedule and within budget
Commenced development of a third underground mine at Geita, waste-stripping at Iduapriem Cut 2 and Tropicana Havana Stage 2
Ensured tight cost management to maximise the benefit of a higher gold price
Streamlined the portfolio with the sale of the South African operating assets, as well as the Sadiola and Morila operations in Mali
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AngloGold Ashanti Limited <AFS>
STRATEGIC PRIORITIES
Maintaining a reliable track record of consistent and prudent behaviour as custodians of shareholder capital continues to be central
to our approach. Capital allocation continues to remain disciplined and focused on improving value creation through effective
management and without placing undue financial or operating risk on the business. This approach does not prioritise scale, but
rather focuses on sustainable margins and free cash flow growth to improve total returns to shareholders over time.
The integrity of the balance sheet is fundamental to the long-term health of the business and enforces disciplined decision-making
in allocating capital. This means that the Company will continue to rank and prioritise its investments, assessing them not only on
their returns but also on their affordability with respect to maintaining leverage ratios at or around targeted levels. Importantly, the
Company will weigh these competing priorities and consider the full suite of financing opportunities available when determining
whether or not to proceed with an investment.
Our free cash flow generation is applied in a balanced manner to the four pillars of our capital allocation strategy, consisting of
sustaining capital expenditure to prioritise Ore Reserve growth; maintaining a strong and solid balance sheet to provide optionality
and flexibility through the cycle; return of value to shareholders through a policy of competitive dividends; and self-funding any
major growth capital projects.
In order for the continued successful application of this capital allocation discipline, from a financial perspective the strategic focus
remains mostly on the following three aspects:
Margin improvement
We have maintained a good margin, while self-funding our business, through years of a difficult market. In 2020, we continued to
focus our efforts on driving operational excellence and cost efficiencies across our business thereby enhancing our margins. We
have seen the AISC margin step up to around 40% this past year from continuing and discontinued operations, as we remained
disciplined and as the gold price moved higher. For our continuing operations, the margin is even higher at 42%.
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AngloGold Ashanti Limited <AFS>
Improve balance sheet strength and preserve liquidity
On 18 March 2020, the Company drew $900m under the US Dollar RCF to fund the repayment of the $700m 5.375% bonds that
matured on 15 April 2020 and to support short-term liquidity in the event of continuing disruptions in the global financial markets as
a result of the outbreak of the COVID-19 pandemic. A further $450m was drawn on the remainder of the US Dollar RCF and
received on 27 March 2020.
Since there was significant uncertainty with regards to the potential impact of the global pandemic, the Company entered into a
$1bn standby facility in April 2020 in order to bolster liquidity.
As a result of the pandemic driven gold price rally, the Company’s ability to generate free cash flow improved markedly during the
year, with total free cash flow for the year increasing more than fivefold to $743m. In parallel to this, we issued a new $700m, ten-
year bond, in September 2020 at a coupon of 3.75%, the lowest in the history of the Company. The combination of substantial free
cash flow and the new bond issued allowed the Company to repay its drawn US Dollar RCF in full in the second half of the financial
year. We also cancelled the $1bn standby facility in October 2020.
Our focus on maintaining a strong balance sheet remained unchanged even after our net debt level reached its lowest level in a
decade, falling to $597m as at 31 December 2020, with the adjusted net debt to adjusted EBITDA ratio from continuing operations
improving to 0.24 times.
Cash proceeds from the South African asset sale were partly utilised to settle remaining South African debt and allowed us to
cancel our South African facilities, save for a R500m overnight facility.
We ended 2020 with strong liquidity including cash balances of $1.33bn, which excluded the Kibali cash lock-up in the DRC of
$424m. Our US Dollar RCF remained undrawn through the year end and up to the date of this report.
This position allows us to consider optionality with regards to liquidity management efforts focused on the 2022 $750m bond. It
further provides optionality with regards to the funding of the Colombia projects, allowing us to consider whether we self-fund these
projects or enter into any other available funding alternatives.
Our current liquidity levels provide us with reasonable comfort should we be faced with unfavourable and unforeseen impacts of
this pandemic in the foreseeable future.
The Company will continue targeting an Adjusted net debt to Adjusted EBITDA ratio of 1.0 times through the cycle. We believe this
target level is sustainable, even as we invest inward, service debt obligations and pay dividends to shareholders at the discretion
of the board of directors.
We remain strongly levered both to the gold price and currencies and we expect cash flow generation across the business to
continue to benefit from prevailing market conditions as well as from efficiency and operational improvements in our business.
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AngloGold Ashanti Limited <AFS>
Continued cash flow momentum
We continued our focus on positive free cash flow generation while reinvesting in our portfolio. After board approval in
November 2020, we increased the dividend pay-out percentage from 10% to 20% of free cash flow, before growth capital, subject
to board discretion. The board also approved the dividend pay-out to be increased from annual to bi-annual from 2021.
Free cash flow before growth capital was $1,003m (2019: $448m). The board has approved a dividend of 705 ZAR cents or
approximately 48 US cents per share (2019: 165 ZAR cents or 9 US cents per share), representing a 433% increase in US Dollar
terms.
The increase of the dividend pay-out is a reflection of our continued capital discipline and commitment to improving shareholder
returns on the back of improved free cash flow generation. Importantly, we will maintain adequate balance sheet flexibility and
utilise our cash flows and available facilities to fund our ongoing capital and operational requirements, including self-funding
sustaining and growth capital expenditure, should we wish to do so.
1.   Adjusted for Obuasi redundancy costs of $210m and Rand Refinery loan of $44m.
2.   Adjusted for bond redemption premium of $61m on part settlement of $1.25bn high-yield bonds.
3.   Adjusted for bond redemption premium of $30m on settlement of remaining $1.25bn high-yield bonds.
4.   Adjusted for SA retrenchment costs paid of c.$49m.
5.   Adjusted for SA retrenchment costs paid of c.$61m.
DELIVERY AGAINST 2020 FINANCIAL AND OPERATIONAL OBJECTIVES
Objective met
Objective partly met or ongoing
1.
Continued focus on sustainability and safety improvements     ☑
We continue to focus on material sustainability risks, while considering the best approach to further enhance the managing and
reporting of ESG related matters. Details of this can be found in our Sustainability Report
<SR>.
The Company continues to focus on safe production and the health of employees across all operations. Regrettably, we
recorded six workplace fatalities during the year. These comprised four deaths in South Africa and two deaths at Obuasi in
Ghana.
The group All-injury frequency rate (AIFR), which is the broadest measure of workplace safety, improved 28% to a record
2.39 injuries per million hours worked in 2020, from a rate of 3.31 injuries per million hours worked in 2019. The portfolio of
managed operations outside of South Africa reported an AIFR of 1.68 during the year, their best performance ever. The
Company’s safe production strategy, which continues its focus on achieving our goal of zero harm, is aided by safety campaigns
and has yielded safety-performance improvements over time.
2.
Target increased Ore Reserve conversion through additional investment in Ore Reserve development
and Mineral Resource conversion
    ☑
AngloGold Ashanti embarked on a multi-year initiative at the beginning of 2020, to increase investment in Ore Reserve
development and brownfields exploration. The aim of this investment was to increase the rate of Ore Reserve conversion,
extend the reserve lives of our assets, enhance mining flexibility and further improve knowledge of the ore bodies in the portfolio.
This programme is designed to use incremental sustaining capital investment to unlock latent value from within the existing
portfolio.
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AngloGold Ashanti Limited <AFS>
One year into this initiative, solid progress has been made with the gross addition of 6.1Moz of Ore Reserve. This was achieved
primarily by exploration activities across the portfolio, with only 14% of the gross increase attributable to the $100/oz increase
in Ore Reserve pricing, to $1,200/oz. This increased the reserve life of the portfolio to about 11 years.
At Geita, a key asset where extending the reserve life is a priority, 1.4Moz of Ore Reserve were added, with 0.6Moz of depletion.
Geita Ore Reserve ended the year at 2.34Moz, 55% higher year-on-year after accounting for depletion. As a result, Geita’s
reserve life, based on Ore Reserve and a normalised long-term production base (525koz) increased by almost 80%, to five
years. Across the rest of the group, Obuasi added 1.8Moz in gross Ore Reserve and there were steady gross gains totaling
2.8Moz at Kibali, Iduapriem, AGA Mineração, Siguiri, Serra Grande, Cerro Vanguardia and Sunrise Dam.
3.
Aim to complete divestment processes     ☑
South Africa assets
AngloGold Ashanti completed the sale of its remaining South African producing assets to Harmony Gold on 30 September 2020,
following receipt of all regulatory approvals. Harmony Gold acquired full ownership of these assets and related liabilities on
1 October 2020. The silicosis obligation and the post-retirement medical obligation relating to South African employees are
retained by AngloGold Ashanti.
Mali assets
AngloGold Ashanti together with its joint venture partner Barrick Gold Corporation (Barrick) completed the sale of the Morila
gold mine in Mali to Firefinch Limited (previously named Mali Lithium Limited) on 10 November 2020. In addition, the Company,
together with its joint venture partner IAMGOLD Corporation completed the sale of their entire interests in Société d’Exploitation
des Mines d’Or de Sadiola S.A. to Allied Gold Corp on 30 December 2020.
On 14 February 2019, Sadiola Exploration Limited (SADEX), the subsidiary jointly held by AngloGold Ashanti Limited and
IAMGOLD Corporation, entered into a share purchase agreement with the Government of Mali, whereby SADEX agreed to sell
to the Government of Mali its 80% participation in Société d’Exploitation des Mines d’Or de Yatela (Yatela), for a consideration
of USD 1. At the date of this report, the transaction remained subject to the fulfillment of a number of conditions precedent,
among which the approval of the Share Purchase Agreement by the Council of Ministers and the adoption of two laws (the
Endorsement Law and Establishment Law).
4.
Obuasi Phase 2 commissioning complete by year-end     ☑
Commercial production at Obuasi for Phase 1 (2,000 tonnes per day mining and milling rate) was achieved, effective
1 October 2020. The COVID-19 pandemic caused some construction delays and had the effect of limiting mining volumes,
which in turn delayed the commercial production date for Phase 1 by two quarters and continues to have a knock-on effect on
Phase 2 operational readiness. The project’s production for the full year ended 31 December 2020 was 127koz, with 30koz
produced in the fourth quarter of the year. This included a 22-day planned stoppage in December, for the tie-in of Phase 2 of
the project.
Phase 2 construction reached 90.1% completion at the end of December 2020. Commissioning of the Phase 2 milling circuit
has commenced and will continue in early 2021. The KRS shaft, paste-fill plant and the GCVS ventilation shaft continue to
target completion at the end of the first half of 2021. The ramp-up of Phase 2 capacity to 4,000 tonnes per day is targeted on a
tight schedule to commence during the second quarter of 2021 and may continue into the third quarter of 2021.
Mining rates continued to be constrained by skilled labour challenges caused by Australian international travel restrictions during
the year, which have again been tightened in January 2021, with a further reduced quota of weekly travelers allowed to enter
and exit the country’s airports. This challenge is being resolved through continued focus on in-country recruitment and training
to help bridge the gap. As a result, the mine plan for 2021 was revised to take into account these COVID-19 limitations. This
plan intends to achieve the required ramp-up in production in parallel with the construction schedule and good progress is being
made in the second production area at Block 8-Lower.
5.
Optimise margins and cash conversion     ☑
Our margins on revenue from continuing operations net of total cash costs, AISC, and All-in Costs (AIC) were 56%, 42% and
33%, respectively. These margins reflected increases from 2019 (total cash costs: 46%; AISC: 30%; and AIC: 17%). Margins
were positively affected by the higher gold price received during the year.
Although free cash flow generation was the highest since 2011 and in aggregate more than the last 4 years together, it continues
to be impacted by the continued slow cash repatriation from the Democratic Republic of Congo (DRC). Cumulative cash
receipts from Kibali for 2020 amount to $140m. However, the Company’s attributable share of the outstanding balances
awaiting repatriation from the DRC were $424m, after a further build-up of $222m of cash lock-up in 2020. Barrick, the operator
of the Kibali joint venture, continues to engage with the DRC government regarding the 2018 Mining Code and the cash
repatriation.
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AngloGold Ashanti Limited <AFS>
6.
Enforce capital discipline in a rising gold price environment     ☑
Total capital expenditure (including equity accounted investments) decreased by 3% to $792m in 2020, compared to $814m in
2019. This included growth capital expenditure of $260m relating to Obuasi, Siguiri, Geita, Tropicana, Sunrise Dam and
Quebradona in 2020, compared to $321m invested in growth projects in the prior year. Sustaining capital expenditure was 8%
higher in 2020 at $532m, compared with $493m in 2019, as the Company steadily progressed its reinvestment programme,
focusing on Ore Reserve Development and Reserve Conversion at sites with high geological potential. A further $112m was
spent on exploration, of which $67m was spent on Greenfields exploration and study costs, largely in Colombia and North
America while $45m was spent on non-sustaining exploration drilling to improve the Mineral Resource at current operations.
Due to the improved ability in 2020 to generate free cash flow, our earnings margins were substantially improved and we
approved an increase in our dividend pay-out percentage, thereby ensuring that we maintain an appropriate balance between
internal and external allocation of our capital resources.
7.
Proactively manage the emerging risks relating to the COVID-19 pandemic from an operational, liquidity,
working capital and supply chain perspective
    ☑
AngloGold Ashanti continues to respond to the evolving COVID-19 pandemic while contributing to the global effort to stop the
spread of the virus and provide public health and economic relief to local communities.
The impact on production in 2020 from COVID-19 was estimated at 140koz, and its impact on AISC was estimated at $55/oz,
or about 5% (of this, $22/oz is estimated to be related to costs incurred and $33/oz to lost production). Consumable inventory
levels were increased at certain operations to mitigate potential supply chain challenges resulting from the pandemic.
All of AngloGold Ashanti’s mines are operating normally subject to updated protocols and various travel restrictions, except for
Cerro Vanguardia which at end March 2021, was running at between 60% to 80% mining capacity due to continuing inter-
provincial travel restrictions in Argentina, which prevent certain employees from getting to site.
8.
Focus on cash conservation measures including reducing corporate costs and AISC     ☑
Cash conversion constraints was discussed in item 5 above.
Corporate administration, marketing and other expenses decreased to $68m in 2020, from $82m in 2019. This equates to
$24/oz from continuing operations, which makes it one of the lowest corporate cost structures amongst the gold mining peer
group. The main reasons for this decrease are as a result of the weakening of the South African rand against the US dollar
since most of these costs are rand-based, together with reductions in travel and training costs reflective of the impact of the
COVID-19 pandemic.
9.
Pursue optimal financing alternatives for the group and focus on reducing finance costs     ☑
During 2020, we concluded a 10-year $700m bond offering, priced at 3.75% per annum - the lowest coupon ever achieved by
the Company for a bond offering - with the net proceeds directed to repaying a portion of outstanding borrowings. The initial
proceeds of $200m received from the sale of the South African producing assets were utilised to further reduce debt.
The South African R1.4bn RCF, R2.5bn RCF and R1bn RCF facilities were cancelled voluntarily in 2020. The $1bn standby
facility put in place at the onset of the COVID-19 pandemic in order to provide additional liquidity, was cancelled on
1 October 2020.
We are continuing to assess our options with regards to the $750m bond maturing in 2022 and our options available with
regards to the two Colombian projects - in addition to self-funding options, we are also considering alternative funding
arrangements.
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AngloGold Ashanti Limited <AFS>
REVIEW OF GROUP’S PROFITABILITY, LIQUIDITY AND STATEMENT OF FINANCIAL POSITION FOR
2020
The key financial and operational metrics for 2020, when compared to 2019 and 2018, are as follows:
2020
2019
2018
Profitability and returns
Headline earnings
$m
1,000
379
220
US cps
238
91
53
Profit (loss) attributable to equity shareholders - total
$m
953
(12)
133
Profit attributable to equity shareholders from continuing operations
$m
946
364
216
Profit (loss) attributable to equity shareholders from discontinued operations
$m
7
(376)
(83)
Profit (loss) attributable to equity shareholders - total
US cps
227
(3)
32
Profit attributable to equity shareholders from continuing operations
US cps
225
87
52
Profit (loss) attributable to equity shareholders from discontinued operations
US cps
2
(90)
(20)
Return on net capital employed
(1)
%
31
11
8
Dividends declared per ordinary share
ZAR cps
705
165
95
US cps
~48
9
7
2020
2019
2018
Liquidity, cash flow and net debt
Adjusted net debt at year end
(1)
$bn
0.6
1.6
1.7
Free cash flow
(1)
$m
743
127
67
Adjusted earnings before interest, tax, depreciation and amortisation
(Adjusted EBITDA) - continuing operations
(1)(2)
$bn
2.5
1.6
1.4
Adjusted net debt to adjusted EBITDA - continuing operations
(1)(2)
Times
0.24
1.00
1.20
Operational metrics
Gold produced - total
Moz
3.05
3.28
3.40
Gold produced - continuing operations
Moz
2.81
2.86
2.91
Gold produced - discontinued operations
Moz
0.24
0.42
0.49
Average price received - total
(1)
$/oz
1,768
1,387
1,261
Average price received - continuing operations
(1)
$/oz
1,778
1,394
1,266
Average price received - discontinued operations
(1)
$/oz
1,651
1,337
1,228
Total cash costs - total
(1)
$/oz
819
776
773
Total cash costs - continuing operations
(1)
$/oz
790
746
729
Total cash costs - discontinued operations
(1)
$/oz
1,149
981
1,032
All-in sustaining costs - total
(1)
$/oz
1,059
998
976
All-in sustaining costs - continuing operations
(1)
$/oz
1,037
978
942
All-in sustaining costs - discontinued operations
(1)
$/oz
1,296
1,132
1,182
All-in costs - total
(1)
$/oz
1,200
1,162
1,068
All-in costs - continuing operations
(1)
$/oz
1,185
1,151
1,034
All-in costs - discontinued operations
(1)
$/oz
1,367
1,240
1,272
All-in sustaining cost margin - continuing operations
(1)
%
42
30
26
(1)
    Non-GAAP measures
(2)
    The Adjusted EBITDA calculation is based on the formula included in the Revolving Credit Facility Agreements for compliance with the debt covenant
formula
PRODUCTION, PROFITABILITY AND RETURNS
Production and unit cost
Production for 2020 was within AngloGold Ashanti’s revised guidance issued in September 2020, at 3.047Moz at a total cash cost
of $819/oz, compared with 3.281Moz at a total cash cost of $776/oz in 2019. The 7% reduction in production was due mainly to the
sale of our remaining South African producing assets, the cessation of mining activities at Sadiola and Morila in Mali, and the impact
of the COVID-19 pandemic. The Company’s AISC came in at $1,059/oz in 2020, compared with $998/oz in 2019. The COVID-19
impact on production in 2020 was estimated at 140koz or 5% and its impact on AISC was estimated at $55/oz or 5%.
Production from continuing operations for 2020 was 2.806Moz at a total cash cost of $790/oz, compared with 2.862Moz at a total
cash cost of $746/oz in 2019. AISC for these continuing operations was $1,037/oz in 2020, compared with $978/oz in 2019. On a
continuing operations basis, the impact on production from COVID-19 in 2020 was estimated at 59koz or 2% and its impact on
AISC was estimated at $32/oz or 3%. The performance for the year was underpinned by Geita's highest annual production level in
15 years, whilst steady performances at Kibali, Iduapriem, Siguiri, Sunrise Dam, and AGA Mineração helped offset declines in
production at Tropicana, Cerro Vanguardia (CVSA) and Serra Grande. The Obuasi Redevelopment Project continued its ramp-up,
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AngloGold Ashanti Limited <AFS>
delivering a 127koz in production despite delays in receiving equipment and in the arrival of skilled personnel, critical to the project,
as a result of lockdowns in various jurisdictions during the year.
Continuing operations
The Africa region delivered a strong production performance, with gold production increasing by 4% year-on-year to 1.603Moz at a total
cash cost of $757/oz for the year ended 31 December 2020 compared to 1.538Moz at $759/oz for the prior year. The region’s AISC were
$935/oz for the year ended 31 December 2020, compared to $896/oz for the year ended 31 December 2019.
The Americas region produced 649,000oz at a total cash cost of $721/oz for the year ended 31 December 2020, compared to 710koz at
a total cash cost of $736/oz for the prior year. The decrease in production was largely due to COVID-19-related impacts in Argentina and
Serra Grande in Brazil. The region’s AISC were $1,003/oz for the year ended 31 December 2020, compared to $1,032/oz for the year
ended 31 December 2019. The reduction in AISC was achieved despite lower ounces sold and inflation pressures in the region assisted
by weaker local currencies.
The Australia region produced 554,000oz at a total cash cost of $968/oz for the year ended 31 December 2020, compared to 614koz at
a total cash cost of $730/oz for the year ended 31 December 2019. The region’s AISC was $1,225/oz for the year ended 31 December 2020,
compared to $990/oz for the year ended 31 December 2019.
Discontinued operations
The sale of the remaining operating assets in South Africa to Harmony Gold was completed on 30 September 2020, with Harmony
Gold taking control of the operations effective 1 October 2020. During the nine-month period ended 30 September 2020 (prior to
its disposal), the South Africa region produced 241koz at a total cash cost of $1,149/oz, compared to 307,000oz at a total cash cost
of $1,003/oz for the same period in 2019. AISC was $1,296/oz for the nine-month period ended 30 September 2020, compared to
$1,156/oz for the same period in 2019, largely impacted by lower gold production, higher operating costs and higher royalties. This
was partially offset by lower sustaining capital expenditure, some favourable by-product contribution and the depreciation of the
South African Rand against the US Dollar.
Profitability and returns
The average gold price received in 2020 was $1,768/oz, a 27% increase on the $1,387/oz recorded in 2019. The higher gold price
helped drive the improved financial performance year-on-year.
The Company has maintained positive gold revenue margins on total cash costs, all-in sustaining costs and all-in costs through
years of a difficult market, while self-funding efforts of capital expenditure were continued. The increase in the average gold price
received assisted the Company in further increasing these margins, while it remained disciplined in its cost optimisation efforts. The
following margins on gold revenue (based on continuing operations) were achieved for 2020 and 2019:
Margins on gold revenue (based on continuing operations)
2020
2019
On total cash costs
56%
46%
On all-in sustaining costs
42%
30%
On all-in costs
33%
17%
Adjusted earnings before interest, tax, depreciation and amortisation (Adjusted EBITDA) rose 50% year-on-year to $2,593m in
2020, from $1,723m in 2019.
Basic earnings attributable to equity shareholders for the period ended 31 December 2020 were $953m, or 227 US cents per share,
compared with a $12m loss, or 3 US cents loss per share in 2019. Basic earnings for the continuing business for the period ended
31 December 2020 were $946m, or 225 US cents per share, compared with $364m or 87 US cents per share in 2019.
Headline earnings for the period ended 31 December 2020 were $1,000m, or 238 US cents per share, compared with $379m, or
91 US cents per share in 2019. Headline earnings benefitted from the higher gold price net of increased profit-related taxes.
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AngloGold Ashanti Limited <AFS>
LIQUIDITY, CASH FLOW AND STATEMENT OF FINANCIAL POSITION
Liquidity and Cash Flow
Cash flow from operating activities for the year ended 31 December 2020 increased by 58% to $1,654m in 2020 compared to
$1,047m in 2019. Free cash flow for the year improved by 485% to $743m in 2020, from $127m in the prior year. Cash flow from
operating activities are reconciled to free cash flow as follows:
US dollar millions
Year ended
December 2020
Year ended
December 2019
Net cash inflow from operating activities from continuing operations
1,545
958
Net cash inflow from operating activities from discontinued operations
109
89
Net cash inflow from operating activities
1,654
1,047
Capital expenditure
(701)
(703)
Net cash from operating activities after capital expenditure
953
344
Repayment of lease liabilities
(47)
(42)
Finance costs accrued and capitalised
(188)
(149)
Net cash flow after capital expenditure and interest
718
153
Other net cash inflow from investing activities from continuing operations
278
22
Net cash outflow from investing activities from discontinued operations
(31)
(54)
Add backs:
Proceeds on disposal of South African assets
(200)
Recognition of joint operations - cash
(2)
Cash restricted for use
9
Cash in subsidiary sold and transferred to held for sale
(3)
6
Proceeds from disposal of associate
(26)
Free cash flow
(1)
743
127
(1)
    Non-GAAP measure
Free cash flow generation was the highest since 2011, aided by the improved gold price, but partly offset by lower gold output,
higher operating costs, royalties and taxation, and further impacted by the continued slow cash repatriation from the Democratic
Republic of the Congo (DRC). Cumulative cash receipts from the DRC in 2020 totalled $140m, which included dividends of $49m
received from Kibali (Jersey) Limited in the fourth quarter of 2020. At 31 December 2020, the Company’s attributable share of the
outstanding cash balances awaiting repatriation from the DRC amounted to $424m. Barrick, the operator of the Kibali joint venture,
continues to engage with the DRC Government regarding the 2018 Mining Code and the cash repatriation. Since the third quarter
of 2020, VAT offsets and refunds have also been impacted by the COVID-19 pandemic in the DRC.
Free cash flow was also impacted by unfavourable working capital movements, related mainly to inventories, the VAT lock-up at
Geita and increased export-duty receivables at Cerro Vanguardia. On 1 July 2020, the Finance Act, 2020 (No. 8) became effective
in Tanzania, amending the Value Added Tax Act, 2014 (No. 5), without retrospective effect, specifically by deleting the
disqualification of refunds due to exporters of ‘raw minerals’. This allows for the recovery of VAT refunds for mineral exporters from
July 2020 onwards. CVSA had a cash balance of $137m equivalent as at 31 December 2020, of which $50m is currently eligible to
be declared as dividends. Application has been made to the Central Argentine Bank to approve $11m of this eligible amount to be
paid offshore to AngloGold Ashanti. However, approval remains pending. The cash is fully available for CVSA’s operational
requirements.
Free cash flow before growth capital – the metric on which dividends are calculated – increased by 124% to $1,003m in 2020
versus $448m in the prior year.
On 19 February 2021, the board approved a dividend of ZAR 705 cents per share (approximately 48 US cents per share), in line
with the improved dividend payout ratio of 20% of free cash flow, before growth capital expenditure. This compares to a dividend
of ZAR 165 cents per share (9 US cents per share) in 2019. The board is satisfied that subsequent to the dividend declaration, the
Company has adequate balance sheet flexibility and sufficient funding facilities available to withstand market volatility.
Gold and oil derivatives
In January 2020, AngloGold Ashanti entered into Asian style zero-cost collars for a total of 130,900 ounces of Argentina’s annual
gold production for the period February 2020 to December 2020, as the business was up for sale at that point. The strike prices
were $1,500 per ounce on the floor and an average price of $1,701.34 per ounce on the cap. At 31 December 2020 the group had
no commitments against future production. At 31 December 2020, a realised loss of $14m was incurred.
In February 2020, AngloGold Ashanti entered into Asian style zero-cost collars for a total of approximately 342,000 barrels of Brent
crude oil for the period February 2020 to December 2020. The average strike prices were $45 per barrel on the floor and an average
price of $65 per barrel on the cap. In February 2020, the Company also entered into Asian style zero-cost collars for a total of
approximately 622,000 barrels of Brent crude oil for the period March 2020 to December 2020. The average strike prices were
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18
AngloGold Ashanti Limited <AFS>
$44.50 per barrel on the floor and an average price of $65 per barrel on the cap. At 31 December 2020 the group had no further
commitments. At 31 December 2020, a realised loss of $5m was incurred.
Statement of Financial Position
Borrowings and Liquidity
Adjusted net debt for continuing operations declined by 62% to $597m at 31 December 2020, from $1.581bn at 31 December 2019.
Adjusted EBITDA from continuing operations increased by 56% year-on-year to $2,470m in 2020, from $1,580m in 2019. The ratio
of Adjusted net debt to Adjusted EBITDA from continuing operations at the end of December 2020 was 0.24 times compared with
1.00 times at the end of December 2019, below the targeted level of 1.0 times through the cycle. This reflects disciplined reduction
in debt and robust cash generation from the business.
During 2020, we concluded a 10-year $700m bond offering, priced at 3.75% per annum - the lowest coupon ever achieved by the
Company for a bond offering - with the net proceeds directed to repaying a portion of outstanding borrowings. The initial proceeds
of $200m received from the sale of the South African producing assets were utilised to further reduce debt. The balance sheet
remains robust, with strong liquidity comprising the $1.4bn multi-currency Revolving Credit Facility (RCF) which is undrawn, the
$150m Geita RCF of which $41m is undrawn, the $65m Siguiri RCF which is fully drawn, the South African R500m ($34m) RMB
corporate overnight facility which is undrawn, and cash and cash equivalents exceeding $1.3bn at 31 December 2020.
Capital expenditure
Total capital expenditure (including equity accounted investments) decreased by 3% to $792m in 2020, compared to $814m in
2019. This included growth capital expenditure of $260m relating to Obuasi, Siguiri, Geita, Tropicana, Sunrise Dam and
Quebradona in 2020, compared to $321m invested in growth projects in the prior year. Sustaining capital expenditure was
8% higher in 2020 at $532m, compared with $493m in 2019 as the Company steadily progressed its reinvestment programme,
focusing on Ore Reserve Development and Reserve Conversion at sites with high geological potential. A further $112m was spent
on exploration, of which $67m was spent on Greenfields exploration and study costs, largely in Colombia and North America while
$45m was spent on non-sustaining exploration drilling to improve Mineral Resource at current operations.
Tax Uncertainties and Effective Tax Rate
We remain subject to an uncertain tax environment. Across the group, we are due refunds for input tax and fuel duties for an amount
of $351m (2019: $329m; 2018: $276m), including attributable amounts of equity accounted joint ventures, which have remained
outstanding for periods longer than those provided for in the respective statutes. Considerable effort continues to be made to
recover these outstanding amounts.
The normalised 2020 effective tax rate was 32%, marginally lower than 2019. The increase in taxes for the year related mainly to
general higher level of tax payments due to increased revenue generated on the back of the increased level of the gold price in
most jurisdictions; increased withholding tax payments in Tanzania and Ghana; the derecognition of the remaining deferred tax
asset balance in South Africa after the sale of the South Africa assets and deferred tax effects for foreign exchange adjustments
on non-monetary assets in Brazil.
Other related matters
Credit Ratings Update
On 2 November 2020, S&P Global Ratings had revised its outlook on the Company to positive from stable and affirmed the 'BB+'
global scale rating. S&P cited AngloGold Ashanti generating stronger cash flows and lowering leverage through 2022. S&P
forecasts the Company will generate substantial free cash flow over the next few years, led by strong margins and largely stable
production. The expected increase in cash flows and corresponding financial flexibility should support conservative leverage
through future periods of gold price weakness.
Further to this, the Company's track record of delivering on-target exploration and development activities, and exercising prudent
risk management, such that it is able to retain a lower financial risk profile, supports the view of S&P. It also noted that the targets
remain intact for the replacement of South African production with production from the low-cost Obuasi mine in Ghana.
On 26 November 2020, Moody's Investors Service affirmed the Company's rating at Baa3, but revised the outlook on the Company
from stable to negative. This was reflective of a strong financial performance, elevated gold prices and a credit profile following the
sale of the remaining South African operating assets that is materially de-linked from the South African sovereign, but given the
South African domicile and headquarters it still leads to some credit linkages. Given these linkages it is unlikely for the Company
to be rated two notches above the sovereign.
More detailed notes and analyses of the group’s income statement, statement of financial position and statement of cash flow for
2020 are available in the group financial statements for 2020.
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AngloGold Ashanti Limited <AFS>
LOOKING AHEAD TO 2021
Guidance and Indicative Outlook
Following the key strategic objectives set out by the Company a year ago, related to streamlining the portfolio and reinvestment in
assets with high geological potential, AngloGold Ashanti is pleased to provide a two-year guidance, as well as a five-year indicative
outlook.
The Company expects to see an average 2.0% compound annual growth rate (CAGR) in gold production from continuing operations
over the next two years relative to 2020 production. The primary driver of production growth is related to Obuasi operating at steady-
state, Tropicana reverting to normalised production levels following the reinvestment in its life extension, and AGA Mineração,
Siguiri and Sunrise Dam expected to increase production to higher levels.
Sustaining capital expenditure for each of 2021 and 2022 is expected to range between $720m to $820m, which includes
investments in Ore Reserve Development and Exploration ($330m to $380m) and Brazil tailings compliance capital for 2021 ($70m
to $80m). On a per ounce basis, however, sustaining capital will decline in 2022 as production increases further.
On a five-year indicative outlook, the Company expects to see an average of 5.0% CAGR in gold production between 2021 and
2025. This is underpinned by the Company’s ten operating assets, as well as the Company potentially moving forward with
investments in the Quebradona and Gramalote projects. As a result of these investments, non-sustaining capital expenditure is
expected to increase in 2022 to 2024, before declining. Following the completion of these projects, as well as the expected return
of sustaining capital to normalised levels following the current intensive brownfields investment campaign, the Company is expected
to be well positioned to operate at an AISC between $900/oz - $1,150/oz – in nominal terms – in 2025.
The Gramalote and Quebradona projects in Colombia – should they be approved – will have a material impact on the production
and cost trajectory of the business over the long term. These are long-life and low-cost projects, and at steady-state production,
are expected to improve the Company’s long-term AISC by about 10%. The Quebradona project would give AngloGold Ashanti
exposure to the copper market.
The development of Ore Reserve is key to the long-term success and sustainability of AngloGold Ashanti, and the Company is
committed to enhance operating flexibility and extend the lives of its existing mines by converting its Mineral Resource into better
defined Ore Reserve as well as growing its Mineral Resource base. This focused investment programme, now in its second year,
continues to build on the positive momentum of 2020, and these investments are expected to position the Company to add Ore
Reserve as well as, where applicable, Mineral Resource.
We continue to enforce capital and cost discipline across the business, ensuring that we continue to deliver strong cash flow
generation in the elevated gold price environment, while prioritising the health and wellbeing of our employees and our host
communities.
Guidance
Actual
(1)
Guidance
Indicative outlook
2020
2021
2022
2023
2024
2025
Production (000oz)
2,806
2,700 - 2,900
2,825 - 3,025
2,900 - 3,150
3,150 - 3,450
3,200 -3,600
Costs
All-in sustaining costs ($/oz)
1,037
1,130 - 1,230
1,130 - 1,230
1,050 -1,200
950 - 1,150
900 -1,150
Total cash costs ($/oz)
790
790 - 850
800 - 840
Capital
expenditure
Total ($m)
757
990 - 1,140
1,120- 1,270
1,050 -1,250
950 - 1,200
800 - 1,100
Sustaining capex ($m)
497
720 - 820
720 - 820
Non-sustaining capex ($m)
260
270 - 320
400 - 450
Overheads
Corporate costs ($m)
68
85 - 90
85 - 90
Expensed exploration and study
costs ($m)
124
165 - 185
125 - 135
Depreciation and amortisation ($m)
570
600
660
Depreciation and amortisation ($m) - included in equity
accounted earnings
104
130
130
Interest and finance costs ($m) - income statement
138
125
115
Other operating expenses ($m)
57
50
30
(1)
   Actual results from continuing operations
Economic assumptions for 2021 are as follows: $/A$0.72, BRL5.00/$, AP98.00/$, ZAR16.95/$; and Brent $50/bbl.
Production, cost and capital expenditure forecasts include existing assets as well as the Quebradona and Gramalote projects that
remain subject to approval, Mineral Resource conversion and high confidence inventory. Cost and capital forecast ranges are
expressed in nominal terms. In addition, both production and cost estimates assume neither operational or labour interruptions, or
power disruptions, nor further changes to asset portfolio and/or operating mines (except as described above) and have not been
reviewed by our external auditors. Other unknown or unpredictable factors could also have material adverse effects on our future
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20
AngloGold Ashanti Limited <AFS>
results and no assurance can be given that any expectations expressed by AngloGold Ashanti will prove to have been correct.
Measures taken at our operations together with our business continuity plans aim to enable our operations to deliver in line with
our production targets; we, however, remain mindful that the COVID-19 pandemic, its impacts on communities and economies, and
the actions authorities may take in response to it, are largely unpredictable. Accordingly, actual results could differ from guidance
and/or indicative outlook and any deviation may be significant. Please refer to the Risk Factors section in AngloGold Ashanti’s
annual report on Form 20-F which has been filed with the United States Securities and Exchange Commission (SEC). Furthermore,
our five-year indicative outlook assumes that AngloGold Ashanti goes ahead with the Quebradona and Gramalote projects.
However, the board has not yet made a final decision on those projects and there can be no assurance that they will materialise. A
negative decision or other discontinuation of those projects may have a material adverse impact on our indicative outlook.
Sensitivities on key economic metrics based on budgeted economic assumptions for 2021 are as follows:
Cash from operating
Sensitivity*
AISC ($/oz)
activities before taxes
for 2021 ($m)
10% change in the oil price
5
14
10% change in local currency
49
103
10% change in the gold price
6
402
50koz change in production
20
70
* All the sensitivities based on $1,450/oz gold price and assumptions used for guidance.
Currency and commodity assumptions
2021
A$/$ exchange rate
0.72
$/BRL exchange rate
5.00
$/ARS exchange rate
98.00
$/R exchange rate
16.95
Oil ($/bbl)
50
COVID-19
AngloGold Ashanti continues to respond to the evolving COVID-19 pandemic while contributing to the global effort to stop the
spread of the virus and provide public health and economic relief to local communities. The Company has taken a number of
proactive steps to protect employees, host communities and the business itself. These initiatives have complemented government
responses in each of its operating jurisdictions. Our thoughts and prayers are with the families, colleagues and loved ones of those
who have been impacted by the virus.
As of the end of March 2021, second waves of the outbreak are being experienced in several of our operating jurisdictions,
coinciding with the prevalence of new, more contagious variants of the virus. As with the first wave, the increase in cases is being
countered by government-imposed movement restrictions, including mandatory isolation and quarantine measures. Continued
diligence is being observed to strict health protocols and vigilance in relation to business continuity including supply chain. We
remain mindful that the COVID-19 pandemic, its impacts on communities and economies, and the actions authorities may take in
response to it, are subject to change in response to current conditions.
PRIORITIES FOR 2021
Our financial priorities for 2021 are:
Continue to grow Ore Reserve and Mineral Resource through our continued reinvestment strategy;
Maintain strong cost and capital discipline;
Continue our efforts to optimise margins and generate strong free cash flows;
Improve our cash conversion efforts, with a specific focus on unlocking cash lock-up in the DRC; and
Continued efforts to reduce debt and maintain a healthy balance sheet.
These financial priorities are underpinned by the following operational and sustainability priorities:
Continued focus on the safety and well-being of employees and communities through the COVID-19 pandemic, while supporting
host government vaccination efforts;
Achieve Phase 2 completion and commence ramp-up to steady state at Obuasi; and
Make investment decisions for the Gramalote and Quebradona projects in Colombia.
Achieving these priorities will position the Company favorably to achieve its longer-term indicative outlook, and underpin an industry
competitive return to shareholders.
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21
AngloGold Ashanti Limited <AFS>
ACKNOWLEDGEMENT
The past year was not only tumultuous for the gold market, in March 2020, the broader finance team was required to quickly
embrace remote working arrangements - this transition occurred seamlessly with minimal disruptions and I am grateful to the team
for their efforts in this regard under trying circumstances.
From a personal perspective, I stepped into the Interim Chief Financial Officer position for AngloGold Ashanti with effect from
1 September 2020, shortly after the announcement of the resignation of Kelvin Dushnisky as Chief Executive Officer, with the then
Chief Financial Officer, Christine Ramon, taking up the reigns as Interim Chief Executive Officer. I wish to record my gratitude to
Christine and the rest of the Executive Team for providing me with advice and support during this transition as well as thank them
for their continued support.
The broader finance team across the group, which includes the financial reporting, tax, treasury, risk, information management,
global supply chain and internal audit functions continues to work together seamlessly to ensure that we proactively manage risk,
ensuring that we have robust financial systems in place to maintain a strong internal control environment whilst enabling relevant,
timely financial reporting that inform business decisions - all of this in an environment of a continuing global pandemic. I wish to
commend this team for their continued enthusiasm in the continued delivery of quality work and the continued support provided to
me in my current role. I look forward to the year ahead, and the opportunities it will offer as we simultaneously get accustomed to
the new business normal, while continuing our focus on achieving our strategic objectives and improving returns to our
shareholders.
Warm regards

Ian Kramer
Interim Chief Financial Officer
26 March 2021
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DIRECTORS’ APPROVAL
22
AngloGold Ashanti Limited <AFS>
In accordance with Section 30(3)(c) of the Companies Act, No. 71 of 2008, as amended, the annual financial statements for the
year ended 31 December 2020 were approved by the board of directors on 26 March 2021 and are signed on its behalf by:
DIRECTORS
MDC Ramos, Chairman
KC Ramon, Interim Chief Executive Officer
AM Ferguson, Chairman: Audit and Risk Committee

DIRECTORS’ RESPONSIBILITY STATEMENT
The director and prescribed officer, whose names are stated below, hereby confirm that –
(a) the annual financial statements set out on pages 33 to 125, fairly present in all material respects the financial position, financial
performance and cash flows of the issuer in terms of IFRS;
(b) no facts have been omitted or untrue statements made that would make the annual financial statements false or misleading;
(c) internal financial controls have been put in place to ensure that material information relating to the issuer and its consolidated
subsidiaries have been provided to effectively prepare the financial statements of the issuer; and
(d) the internal financial controls are adequate and effective and can be relied upon in compiling the annual financial statements,
having fulfilled our role and function within the combined assurance model pursuant to principle 15 of the King Code. Where we
are not satisfied, we have disclosed to the audit committee and the auditors the deficiencies in design and operational
effectiveness of the internal financial controls and any fraud that involves directors, and have taken the necessary remedial
action.
KC Ramon, Interim Chief Executive Officer, Executive Director
I Kramer, Interim Chief Financial Officer, Prescribed Officer

SECRETARY’S CERTIFICATE
In terms of Section 88(2)(e) of the Companies Act, No. 71 of 2008, as amended, I certify that the Company has lodged with the
Companies and Intellectual Property Commission all such returns and notices as are required of a public company in terms of the
Act, and that all such returns and notices are true, correct and up-to-date.
L Mokoka
Company Secretary
Johannesburg
26 March 2021

AFFIRMATION OF FINANCIAL STATEMENTS
In accordance with Section 30(2) and 30(3) of the Companies Act, No. 71 of 2008, as amended, the annual financial statements
for AngloGold Ashanti Limited, registration number 1944/017354/06 (AngloGold Ashanti), for the year ended 31 December 2020,
have been audited by Ernst & Young Inc., the Company’s independent external auditors, whose unqualified audit opinion can be
found under Independent Auditor’s Report, on page 29.
The financial statements have been prepared by the corporate reporting staff of AngloGold Ashanti, headed by
Alexandra Strobl (CA (SA)), the Senior Vice President: Finance. This process was supervised by Ian Kramer (CA (SA)), the group’s
Interim Chief Financial Officer and Kandimathie Christine Ramon (CA (SA)), the group’s Interim Chief Executive Officer.
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DIRECTORS’ REPORT
23
AngloGold Ashanti Limited <AFS>
Number of ordinary shares
FOR THE YEAR ENDED 31 DECEMBER

NATURE OF BUSINESS
AngloGold Ashanti conducts mining operations in Africa, South America and Australia, and undertakes exploration activities in
these jurisdictions as well as North America. At certain of its operations, AngloGold Ashanti produces silver and sulphuric acid as
by-products in the course of producing gold.
A review of the unaudited performance of the various operations is available in the operational profiles on AngloGold Ashanti’s
annual report website www.aga-reports.com.
SHAREHOLDERS HOLDING 10% OR MORE OF ANGLOGOLD ASHANTI’S ISSUED SHARE CAPITAL
As at 31 December 2020, no shareholder held 10% or more of the Company’s issued share capital. This does not take cognisance
of the shares held by the Bank of New York Mellon as depositary for the AngloGold Ashanti American Depository Receipt (ADR)
programme.
SHARE CAPITAL
AUTHORISED
The authorised share capital of AngloGold Ashanti as at 31 December 2020 was made up as follows:
Currency and commodity assumptions
SA Rands
600,000,000 ordinary shares of 25 South African cents each
150,000,000
2,000,000 A redeemable preference shares of 50 South African cents each
1,000,000
5,000,000 B redeemable preference shares of 1 South African cent each
50,000
30,000,000 C redeemable preference shares of no par value
0
The following are the movements in the issued and unissued share capital from 1 January 2020 to 28 February 2021:
ISSUED
Ordinary shares
Number of
Value
Shares
SA Rands
2020
Number of
Shares
2019
Value
SA Rands
At 1 January
415,301,215
103,825,304
412,769,980
103,192,495
Exercise of options by participants in the AngloGold Ashanti
Share Incentive Scheme
1,588,872
397,218
2,531,235
632,809
At 31 December
(1)
416,890,087
104,222,522
415,301,215
103,825,304
At 31 December
(1)
416,890,087
104,222,522
Issued subsequent to year-end:
Exercise of options by participants in the AngloGold Ashanti
Share Incentive Scheme
195,155
48,789
At 28 February 2021
417,085,242
104,271,311
(1
)
Share capital of $17m (2019: $17m) is translated at historical rates of exchange at the reporting dates. Refer to group financial statements note 25.
Redeemable preference shares
The A and B redeemable preference shares, all of which are held by the wholly owned subsidiary, Eastvaal Gold Holdings Limited,
may not be transferred. No further A and B redeemable preference shares will be issued. C redeemable preference shares which
may only be issued to AngloGold Ashanti Limited or its subsidiaries, have not been issued at 19 March 2021. The cancellation of
all A, B and C redeemable preference shares is in process.
Further details of the authorised and issued shares, as well as the share premium, are given in group financial statements note 25.
UNISSUED ORDINARY SHARES
2020
2019
At 1 January
Issued during the year
184,698,785
(1,588,872)
187,230,020
(2,531,235)
At 31 December
Issues subsequent to year-end
183,109,913
(195,155)
184,698,785
At 28 February 2021
182,914,758
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24
AngloGold Ashanti Limited <AFS>
ORDINARY SHARES UNDER THE CONTROL OF THE DIRECTORS
Pursuant to the authority granted by shareholders at the Annual General Meeting held on 10 June 2020, 5% of the shares in issue
as at 29 April 2020 were placed under the control of the directors to allot and issue, for such purposes and on such terms as the
directors, in their discretion, may determine. The total number of shares placed under the control of the directors was 20,817,036.
No shares were issued during 2020 by the directors in terms of this authority, which will expire at the close of the next Annual
General Meeting, unless renewed.
Shareholders will therefore be asked at the next Annual General Meeting to renew this authority by placing 5% of the number of
shares in issue under the control of the directors to allot and issue, for such purposes and on such terms as the directors, at their
discretion, may determine.
In terms of the Listings Requirements of the JSE, shareholders may, subject to certain conditions, authorise the directors to issue
the ordinary shares held under their control for cash other than by means of a rights offer to shareholders. To enable the directors
of the Company to take advantage of favourable business opportunities which may arise for the issue of such ordinary shares for
cash, without restriction, for the benefit of the Company, shareholders will be asked to consider an ordinary resolution to this effect
at the next Annual General Meeting.
Shareholders will also be asked to approve as a general authority, the acquisition by the Company, or a subsidiary of the Company,
of its own shares from its issued ordinary share capital for certain specific housekeeping reasons.
DEPOSITARY INTERESTS
American Depositary Shares
At 31 December 2020, the Company had in issue, through The Bank of New York Mellon as Depositary and listed on the New York
Stock Exchange (NYSE) 145,927,871 (2019: 159,694,660), American Depositary Shares (ADSs). Each ADS is equal to one
AngloGold Ashanti ordinary share. At 28 February 2021, there were 146,474,692 ADSs in issue and listed on the NYSE.
CHESS Depositary Interests
At 31 December 2020, the Company had in issue, through the Clearing House Electronic Sub-register System (CHESS), and listed
on the Australian Securities Exchange (ASX), 91,955,120 (2019: 91,091,555) CHESS Depositary Interests (CDI). At
28 February 2021 there were 91,955,120 CDI’s in issue. Every five CDIs are equivalent to one AngloGold Ashanti ordinary share
and carry the right to one vote.
Ghanaian Depositary Shares
At 31 December 2020, the Company had in issue, through NTHC Limited as Depositary and listed on the Ghana Stock Exchange
(GhSE), 15,767,100 Ghanaian Depositary Shares (GhDSs) (2019: 15,844,397). At 28 February 2021 there were
15,767,100 GhDSs in issue. Every 100 GhDSs are equivalent to one underlying AngloGold Ashanti ordinary share and carry the
right to one vote.
ANGLOGOLD DEFERRED SHARE PLAN (DSP)
On 16 May 2017, the shareholders approved the introduction of the Deferred Share Plan (DSP), to commence effective 1 January 2018.
The DSP replaced all previous AngloGold Ashanti incentive schemes, i.e. Bonus Share Plan (BSP), Long Term Incentive Scheme
(LTIP) and the Co-Investment Plan (CIP) schemes. The last allocations granted in the BSP, LTIP and CIP schemes have vested
during 2020; there are no further allocations and vesting as the schemes have been closed. The DSP, designed with feedback from
shareholders in mind, aims to better align the interests of Company management with those of shareholders by, amongst others
rewarding decision-making that promotes the long term health of the business by increasing the maximum vesting period of shares
from two to five years, and introducing a claw-back provision; reducing the impact of uncontrollable factors, such as gold price and
currency fluctuations, in determining remuneration; providing better incentive for prudent, value-adding capital allocation; capping
the number of shares that can be issued under the DSP in any given year to 1% of total shares in issue; and providing greater
incentives for excellence in the broad area of sustainability, which covers the safety, environmental, health, governance, community
relations and human capital disciplines.
The scope of participation for the DSP includes Executive Directors, members of the Executive Committee and senior management
employees of the Company and its subsidiaries. These participants are allocated units with the opportunity to acquire shares in the
Company. The intention of the incentive scheme is to ensure that the medium to long term interests of the executives and senior
management employees are aligned with the shareholders’ interests, providing rewards to the executives and senior management
employees and wealth creation opportunities to the shareholders when the strategic performance drivers are achieved. All share
awards which remain unexercised by the tenth year anniversary from the date of grant, automatically lapse for no value.
Non-Executive Directors are not eligible to participate in the DSP.
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25
AngloGold Ashanti Limited <AFS>
CHANGES IN OPTIONS AND AWARDS
In accordance with the JSE Listings Requirements and the rules of the AngloGold Ashanti Share Incentive Scheme, the changes
in options, awards and share units granted and the ordinary shares issued as a result of the vesting and/or exercise of options,
awards and share units during the period 1 January 2020 to 28 February 2021 are disclosed below:
Bonus
Share Plan
Long Term
Incentive Plan
Cash settled
Long Term
Incentive Plan
Deferred
Share Plan
Total Share
Incentive
Scheme
At 1 January 2020
Movement during year
- Granted
(1)
2,141,415
229,639
1,480,562
1,599,360
1,176,532
5,450,976
1,176,532
- Exercised
(1,135,438)
(1,398,499)
(330,555)
(2,864,492)
- Lapsed/forfeited
(118,077)
(82,063)
(155,575)
(355,715)
At 31 December 2020
1,005,977
111,562
2,289,762
3,407,301
Subsequent to year-end
Exercised
(21,977)
(216,078)
(238,055)
Forfeited
(143,622)
(143,622)
At 28 February 2021
984,000
111,562
1,930,062
3,025,624
(1)
Awards were granted at no cost to participants.
DIVIDEND POLICY
Dividends are proposed by management, and approved by the board of directors of AngloGold Ashanti, based on the Company’s
financial performance. The Company increased the dividend pay-out ratio to 20% of free cash flow before growth capital
expenditure, up from 10% previously, in recognition of the increase in profit margins and the ongoing reduction in borrowings and
leverage. The Company also doubled the frequency of pay-outs to semi-annual payments from 2021. The dividend policy provides
for the dividend to be based on 20% of the free cash flow, before growth capital expenditure, generated by the business for that
financial year. Furthermore, the board will continue to exercise discretion in determining the quantum of the dividend, dependent
on market conditions. As before, proceeds from asset sales are excluded from this formula.
For the year ended 31 December 2020, the directors of AngloGold Ashanti declared a gross cash dividend per ordinary share of
705 South African cents (assuming an exchange rate of ZAR 14.70/$, the gross dividend payable per ADS is equivalent to
48 US cents).
The board is satisfied that subsequent to the dividend declaration, the Company has adequate balance sheet flexibility and sufficient
funding facilities available to withstand market volatility. The continuation of the dividend reflects effective capital discipline and
management's commitment to improving shareholder returns. The board has performed the solvency and liquidity tests as required
by the Companies Act of South Africa.
Dematerialised shareholders on the South African share register will receive payment of their dividends electronically through their
Central Securities Depository Participant or broker. Certificated shareholders, who have made this election, will receive their
dividends electronically via an electronic funds transfer directly into their mandated bank accounts. Certificated shareholders who
have not yet elected to receive dividend payments electronically, are encouraged to mandate this method of payment for all future
dividends.
WITHHOLDING TAX
Withholding tax of 20% on dividends and other distributions payable to shareholders are in effect from 1 March 2017.
BORROWINGS
The Company’s borrowing powers are unlimited pursuant to the Company’s Memorandum of Incorporation. As at
31 December 2020, the group’s gross borrowings (excluding lease liabilities) totalled $1,931m (2019: $2,033m).
OTHER MATTERS
SIGNIFICANT EVENTS DURING THE YEAR UNDER REVIEW
Sale of South African assets - On 12 February 2020, AngloGold Ashanti announced that it had reached an agreement to sell its
remaining South African producing assets and related liabilities to Harmony Gold Mining Company Limited ("Harmony"), subject to
the fulfilment of certain conditions. The sale transaction was completed on 30 September 2020, after the initial cash payment of
$200m was received. Refer to group financial statements note 9.
Bond Repayment – On 15 April 2020, AngloGold Ashanti repaid the principal of $700m on its 10-year bond issued in April 2010,
which has matured.
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AngloGold Ashanti Limited <AFS>
Bond issue - On 1 October 2020, AngloGold Ashanti issued an aggregate principal amount of $700m 10-year bonds with a coupon
of 3.75% per annum. The notes were issued by AngloGold Ashanti Holdings plc, a wholly-owned subsidiary of the Company, and
are unsecured and fully and unconditionally guaranteed by AngloGold Ashanti.
Dividend declaration - On 2 November 2020, AngloGold Ashanti announced that it will pay shareholders 20% of its free cash flow
before accounting for capital expenditure in growth projects, up from 10% previously. The Company will also double the frequency
of payouts from the current annual dividend declaration, to semi-annual payments from 2021.
Sale of Interest in Morila Mine - On 10 November 2020, AngloGold Ashanti together with its joint venture partner Barrick Gold
Corp completed the sale of their interests in Morila Limited, which owns 80% of the Morila Gold Mine in Mali, to Firefinch Limited
(previously named Mali Lithium Limited) for $28.8m cash. The net proceeds to AngloGold Ashanti’s account were $3.6m taking into
consideration shareholder loans and intercompany payables.
Sale of Interest in Sadiola Mine - On 30 December 2020, AngloGold Ashanti together with its joint venture partner IAMGOLD
Corporation (“IAMGOLD”) completed the sale of their entire interests in Société d’Exploitation des Mines d’Or de Sadiola S.A.
(“SEMOS”) to Allied Gold Corp (80%) and the Republic of Mali (2%). AngloGold Ashanti and IAMGOLD each received cash
proceeds of $27m in addition to a cash dividend of $8.2m received shortly prior to completion. AngloGold Ashanti and IAMGOLD
remain entitled to deferred consideration of $52.5m. Refer to group financial statements note 9.
SIGNIFICANT EVENTS SUBSEQUENT TO YEAR-END
On 22 February 2021, the directors of AngloGold Ashanti declared a gross cash dividend per ordinary share of 705 South African
cents (assuming an exchange rate of ZAR 14.70/$, the gross dividend payable per ADS is equivalent to 48 US cents).
MATERIAL CHANGE
There has been no material change in the financial results or trading position of the AngloGold Ashanti group since the publication
of the report for the six months and year ended 31 December 2020 on 22 February 2021, and the date of this report. The results
for the year ended 31 December 2020 were audited by Ernst & Young Inc., who issued an unqualified audit report on
26 March 2021.
ANNUAL GENERAL MEETING
At the 76   Annual General Meeting held on Wednesday,10 June 2020, shareholders passed resolutions relating to the:
th
Re-election of Mr Sipho Pityana, Mr Albert Garner and Mr Rhidwaan Gasant as directors of the board;
Election of Ms Maria Ramos and Ms Nelisiwe Magubane as directors of the board;
Appointment of the Audit and Risk Committee members being Mr Rhidwaan Gasant, Ms Maria Richter, Mr Alan Ferguson and
Mr Jochen Tilk;
Re-appointment of Ernst & Young Inc. as External Auditors of the Company;
General authority to directors to allot and issue ordinary shares;
Separate non-binding advisory endorsement of the AngloGold Ashanti remuneration policy and implementation report;
Remuneration of non-executive directors, which remains unchanged from the previous year;
General authority to acquire the Company’s own shares;
General authority to directors to issue for cash, those ordinary shares which the directors are authorised to allot and issue;
General authority to provide financial assistance in terms of sections 44 and 45 of the Companies Act;
Amendments to the memorandum of incorporation; and
Directors’ authority to implement special and ordinary resolutions.
Notice of the 77   Annual General Meeting to be held entirely by way of electronic communication at 14:00 (South African time) on
th
4 May 2021, is printed as a separate document and distributed to shareholders in accordance with the Companies Act.
DIRECTORATE AND SECRETARY
During the period 1 January 2020 to 31 December 2020, the following changes occurred:
On 21 February 2020, AngloGold Ashanti announced the appointment of Ms Maria Ramos as chair of the Social, Ethics and
Sustainability Committee, effective 6 May 2020, following the retirement of Mrs Nozipho January-Bardill from the board on
6 May 2020. Ms Ramos stepped down as a member of the Investment Committee and was appointed as a member of the
Remuneration and Human Resources Committee, effective 6 May 2020. In addition, Mr Jochen Tilk had been appointed as
chair of the Investment Committee effective 6 May 2020, following the retirement of Mr Rod Ruston from the board.
On 30 July 2020, AngloGold Ashanti announced that Mr Kelvin Dushnisky would step down as Chief Executive Officer (CEO),
effective 1 September 2020. The board announced that Mrs Christine Ramon, the Chief Financial Officer (CFO), was appointed
Interim CEO, whilst the board embarks on a comprehensive recruitment process to find a new CEO to deliver on the group’s
strategy for enhanced value creation. Mrs Ramon assumed the role on 1 September 2020. Mr Ian Kramer, the Senior Vice
President: Group Finance, assumed the role of Interim CFO for the duration of the transition period.
On 31 July 2020, AngloGold Ashanti announced the appointment of Dr Kojo Busia as an independent non-executive director to
its board of directors, effective 1 August 2020. Dr Busia serves as a member of the Investment Committee and the Social,
Ethics and Sustainability Committee.
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AngloGold Ashanti Limited <AFS>
On 14 October 2020, AngloGold Ashanti announced the following changes to the membership of certain board committees with
effect from 1 December 2020:
Ms Maria Richter stepped down as chairman of the Remuneration and Human Resources Committee, but remains a
member of the committee. Further, Ms Richter stepped down as a member of the Nominations Committee;
Ms Maria Ramos was appointed as chairman of the Remuneration and Human Resources Committee. Further, Ms Ramos
stepped down as chair of the Social, Ethics and Sustainability Committee, but remains a member of the committee;
Dr Kojo Busia was appointed as chairman of the Social, Ethics and Sustainability Committee;
Mr Rhidwaan Gasant stepped down as chairman of the Audit and Risk Committee, but remains a member of the committee;
Mr Alan Ferguson was appointed as chairman of the Audit and Risk Committee;
Mr Albert Garner stepped down as a member of the Nominations Committee; and
Furthermore, with immediate effect, the Nomination Committee was reconstituted to comprise of Mr Sipho Pityana
(chairman of the committee), Mr Rhidwaan Gasant, Ms Maria Ramos, Dr Kojo Busia, Mr Jochen Tilk and Mr Alan Ferguson.
On 5 December 2020, independent non-executive director Ms Maria Ramos was appointed chair of the board. Ms Ramos
succeeded Mr Sipho Pityana who resigned from the board effective 7 December 2020.
On 15 December 2020, shareholders were advised that the board of directors had approved the below changes to the
membership of certain board committees with immediate effect:
Ms Maria Ramos stepped down as chairman of the Remuneration and Human Resources Committee, but remains a
member of the committee. Further, Ms Ramos was appointed as chairman of the Nominations Committee;
Ms Maria Richter was appointed as chairman of the Remuneration and Human Resources Committee and as a member of
the Nominations Committee;
Ms Nelisiwe Magubane stepped down as a member of the Investment Committee and was appointed as a member of the
Audit and Risk Committee; and
Mr Albert Garner was appointed as a member of the Remuneration and Human Resources Committee.
Company Secretary
On 27 March 2020, shareholders were advised that Ms Maria Sanz Perez, Company Secretary, had given 6 months’ notice of her
intention to resign, effective 26 March 2020.
On 30 June 2020, the Company announced that Ms Sanz Perez departed the Company on 30 June 2020 and Ms Lizelle Marwick,
Executive Vice President: General Counsel and Compliance, had been appointed as Interim Company Secretary (effective
1 July 2020) while the Company continued to search for a suitable replacement.
On 27 November 2020, shareholders were advised that Ms Lucy Mokoka had been appointed by the board as Company Secretary
of AngloGold Ashanti with effect from 11 January 2021. In addition, Ms Lizelle Marwick who acted as Interim Company Secretary
pending the appointment of a permanent Company Secretary, stepped down as Interim Company Secretary.
The name, business and postal address of the Company Secretary are set out under Administrative Information on page 130.
Directors’ and Prescribed Officers’ interests in AngloGold Ashanti shares
The interests of Directors, Prescribed Officers and their associates in the ordinary shares of the Company at 31 December 2020,
individually did not exceed 1% of the Company’s issued ordinary share capital and are disclosed in note 33 of the group financial
statements.
Details of service contracts of Directors and Prescribed Officers
In accordance with Section 30(4)(e) of the Companies Act the salient features of the service contracts of Directors and Prescribed
Officers have been disclosed in the Remuneration Report, which is included in the Integrated Report 2020.
ANNUAL FINANCIAL STATEMENTS
The financial statements set out fully the financial position, results of operations and cash flows of the group and the Company for
the financial year ended 31 December 2020.
The directors of AngloGold Ashanti are responsible for the maintenance of adequate accounting records and the preparation of the
annual financial statements and related information in a manner that fairly presents the state of affairs of the Company, in conformity
with the Companies Act, and the Memorandum of Incorporation, and in terms of the JSE Listings Requirements.
The directors are also responsible for the maintenance of effective systems of internal control which are based on established
organisational structures and procedures. These systems are designed to provide reasonable assurance as to the reliability of the
annual financial statements, and to prevent and detect material misstatement and loss.
In preparing the annual financial statements, the group has complied with International Financial Reporting Standards (IFRS) and
used appropriate accounting policies supported by pragmatic judgements and estimates.
AngloGold Ashanti, through its Executive Committee, reviews its short-, medium- and long-term funding, treasury and liquidity
requirements and positions monthly. The board of directors also reviews these on a quarterly basis at its meetings.
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AngloGold Ashanti Limited <AFS>
Cash and cash equivalents, at 31 December 2020 amounted to $1,330m (2019: $456m), and together with cash budgeted to be
generated from operations in 2021 and the net incremental borrowing facilities available, are in management’s view, adequate to
fund operating, mine development, capital expenditure and financing obligations as they fall due for at least the next 12 months.
Taking these factors into account, the directors of AngloGold Ashanti have formed the judgement that, at the time of approving the
financial statements for the year ended 31 December 2020, it is appropriate to prepare these financial statements on a going
concern basis.
Based on the results of a formal documented review of the Company’s system of internal controls and risk management, covering
both the adequacy in design and effectiveness in implementation, performed by the internal audit function during the year 2020:
information and explanations provided by line management;
discussions held with the External Auditors on the results of the year-end audit; and
the assessment by the Audit and Risk Committee,
the board has concluded that nothing has come to its attention that caused it to believe that the Company’s system of internal
controls and risk management are not effective and that the internal financial controls do not form a sound basis for the preparation
of reliable financial statements.
The directors are of the opinion that these financial statements fairly present the financial position of the Company and group at
31 December 2020 and the results of their operations, changes in equity and cash flow information for the year then ended in
accordance with IFRS.
The External Auditor, Ernst & Young Inc., is responsible for independently auditing and reporting on the financial statements in
conformity with International Standards on Auditing and the Companies Act of South Africa. Their unqualified opinion on these
financial statements appears in the Independent Auditor’s Report, on page 29 of this report.
The Company will file a set of financial statements in accordance with IFRS in its annual report on Form 20-F as must be filed with
the US Securities and Exchange Commission (SEC) by no later than 30 April 2021. The SEC maintains an internet site that contains
reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC
(http://www.sec.gov).
INVESTMENTS
Particulars of the group’s principal subsidiaries and operating entities are presented in this report on page 124.
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AngloGold Ashanti Limited <AFS>






INDEPENDENT AUDITOR’S REPORT
The Board of Directors and Shareholders of AngloGold Ashanti Limited

Opinion
We have audited the consolidated and separate financial statements of AngloGold Ashanti Limited and its subsidiaries (the group)
and company set out on pages 33 to 125, which comprise the consolidated and separate statements of financial position as at
31 December 2020, and the consolidated and separate income statement, consolidated and separate statement of comprehensive
income, consolidated and separate changes in equity and consolidated and separate cash flows for the year then ended, and notes
to the consolidated and separate financial statements, including a summary of significant accounting policies.
In our opinion, the accompanying consolidated and separate financial statements present fairly, in all material respects, the
consolidated and separate financial position of the group and company as at 31 December 2020, and its consolidated and separate
financial performance and consolidated and separate cash flows for the year then ended in accordance with International Financial
Reporting Standards (IFRS) and the requirements of the Companies Act of South Africa.
Basis for Opinion
We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards
are further described in the Auditor’s Responsibilities for the Audit of the consolidated and separate financial statements section of
our report. We are independent of the group and company in accordance with the sections 290 and 291 of the Independent
Regulatory Board for Auditors’ Code of Professional Conduct for Registered Auditors (Revised January 2018), parts 1 and 3 of the
Independent Regulatory Board for Auditors’ Code of Professional Conduct for Registered Auditors (Revised November 2018)
(together the IRBA Codes) and other independence requirements applicable to performing audits of financial statements of the
group and company and in South Africa. We have fulfilled our other ethical responsibilities, as applicable, in accordance with the
IRBA Codes and in accordance with other ethical requirements applicable to performing audits of the group and company and in
South Africa. The IRBA Codes are consistent with the corresponding sections of the International Ethics Standards Board for
Accountants’ Code of Ethics for Professional Accountants (IESBA code) and the International Ethics Standards Board for
Accountants’ International Code of Ethics for Professional Accountants (including International Independence Standards)
respectively. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in the audit of the consolidated
and separate financial statements of the current period. These matters were addressed in the context of the audit of the consolidated
and separate financial statements as a whole, and in forming the auditor’s opinion thereon, and we do not provide a separate
opinion on these matters. For each matter below, our description of how our audit addressed the matter is provided in that context.
We have fulfilled the responsibilities described in the Auditor’s responsibilities for the audit of the consolidated and separate financial
statements section of our report, including in relation to these matters. Accordingly, our audit included the performance of
procedures designed to respond to our assessment of the risks of material misstatement of the consolidated and separate financial
statements. The results of our audit procedures, including the procedures performed to address the matters below, provide the
basis for our audit opinion on the accompanying consolidated and separate financial statements.
Key Audit Matter (KAM)
How the matter was addressed in the audit
Sale of South African assets (Consolidated and Separate KAM)
During 2020, the Company completed its disposal of the South African
assets for a total consideration less cost to sell of $220 million, as
disclosed in Note 1.2 and Note 9 to the consolidated financial
statements. The determination of the loss arising on disposal required
judgement and estimation, particularly in determining the total estimated
consideration, which comprised of $200 million cash consideration and
further deferred compensation based on future gold production, which
was estimated at a fair value of $28 million.

The Company used a probability weighted discounted cash flow model
to measure the deferred compensation. The significant inputs and

Our procedures to address this matter included, among others,
obtaining an understanding, evaluating the design and testing the
operating effectiveness of internal controls over the disposal process.
For example, we tested controls over management’s review of the
significant assumptions used in the deferred compensation valuation
and over the accounting treatment for the transaction.
We read the executed sale agreement to obtain an understanding of
the structure of the sale and the deferred compensation, including an
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AngloGold Ashanti Limited <AFS>
Key Audit Matter (KAM)
How the matter was addressed in the audit
assumptions used in each scenario of the discounted cash flow model,
included the production plan over the agreed upon period and the
weighted average cost of capital (WACC). The determination of the fair
value of the deferred compensation involved complex auditor judgment,
due to the subjectivity of these significant assumptions and inputs, as
well as the weighted probabilities and required the inclusion of
specialists on our team.
assessment of whether all conditions precedent to the sale were met
at the effective date of the transaction.
We recalculated the loss on disposal, which included the deferred
compensation component made up of various judgements around the
production plan per year, applicable discount rates for the agreed upon
period and the relative weightings attached to each scenario.
For the discount rate, with the support of our valuation specialists, we
assessed management’s WACC by comparing it to our independently
calculated WACC.
For the production plan, we compared the plan to the previous
production profiles developed by the Company and analysed the
actual production versus that contained in the production plan
underlying each scenario. We evaluated the weighted probabilities
assigned to each scenario by considering the Company’s historical
and year to date production and any available published information
from the buyer, regarding its estimated production plan.
We evaluated the related disclosures in the consolidated financial
statements.
Obuasi re-development (Consolidated KAM)
Construction of the two-phased Obuasi mine re-development project
commenced in 2018. It is the Company’s accounting policy (as disclosed
in Note 1.2) that all costs directly attributable to developing the mine are
capitalised, including pre-production revenue.
As disclosed in Note 1.2 to the consolidated financial statements, at
1 October 2020, the Company determined that assets associated with
Phase 1 of the Obuasi mine re-development project reached their
operational readiness, as the assets were deemed capable of operating
in a manner intended by management. Determining whether the criteria
were sufficiently met to trigger operational readiness impacts when
capitalisation of costs and pre-production revenue would cease and
recognition of revenue, production costs and amortisation would begin.
Auditing the accounting treatment for the Phase 1 mine re-development
assets was complex due to the significant judgment needed to determine
when these assets were capable of operating in a manner intended
by management, which was assessed based on the achievement of
specific criteria. This involved a high degree of auditor judgment, given
the subjective nature of certain of the criteria used, such as the mining
area available, the quantity of material mined, and ounces produced
during each month in 2020.

Our procedures to address this matter included, among others,
obtaining an understanding, evaluating the design and testing the
operating effectiveness of controls over the re-development process.
For example, we tested controls over management’s review of the
significant judgments to determine when the Phase 1 assets are
capable of operating in a manner as intended by the Company. This
included testing of controls over the accuracy and completeness of the
underlying production data and capital expenditure spend.
We evaluated the completeness and judgements of the criteria and
methodology used by management and we assessed management’s
judgments that the set criteria were met as at 1 October 2020 by
comparing the project plan to actual performance for a number of
criteria; in particular the mining area available, the quantity of material
mined and ounces produced. In so doing, we also tested the
completeness and accuracy of the underlying production data and
capital expenditure spend used in management’s analyses, to
underlying accounting and other records.
We evaluated the related disclosures in the consolidated financial
statements.
Geita VAT recoverability (Consolidated KAM)
As disclosed in Note 22 to the consolidated financial statements, at
31 December 2020, the Company’s Geita mine has recorded
$191 million of VAT receivables due from the Tanzanian Revenue
Authority (TRA).
An amendment, effective 20 July 2017, to Tanzania’s mining legislation
included an amendment to the VAT Act 2015 to the effect that no input
tax credit can be claimed for expenses incurred in the production of raw
minerals which are to be exported, resulting in Geita’s VAT input claims
being disqualified since then by the TRA. In 2019, an amendment issued
by the Tanzanian Ministry of Minerals, effective 22 February 2019,
provided clarity on the definition of raw minerals. The Finance
Amendment act became effective from 1 July 2020 which deleted the
disqualification of Input VAT claims. The change is not retrospective and
therefore VAT input claims and offsets from July 2017 to June 2020
remain disallowed. Further correspondence was received from the TRA
in early 2021 in which the TRA state that they continue to disallow the
claims between July 2017 to June 2020.
Auditing the probability weighted discounted model and the expected
timing of recovery of these receivables involved significant auditor
judgement, including the involvement of our tax specialists. This is
because the timing of the VAT offsetting depends on forecasts of Geita’s
available taxable income, which includes judgments around Geita’s
business plan, VAT claims to corporate tax offset, and assigned
weighting and probability per scenario.
Significant auditor judgment was also required in reassessing whether
the TRA will apply the definition of raw minerals to the historical claims
and how the TRA will apply the legal rulings and related recovery
mechanisms in relation to VAT offsetting against taxable income based
on the correspondence received to date and its impact on historical
conclusions. This required us to undertake additional discussions with
management and their legal counsel in assessing whether the new
correspondence impacted historic conclusions.

Our procedures to address this matter included, among others,
obtaining an understanding, evaluating the design and testing the
operating effectiveness of controls over the Company’s assessment of
tax law and the process to estimate the recoverability of the VAT
receivable.
We read correspondence between management, the TRA and the
Tanzanian Government, including correspondence related to the tax
returns and assessments received during the year and in 2021 to
evaluate management assumptions.
We read external legal counsel opinions obtained by management to
support their interpretation of tax legislation and recoverability of the
VAT. We also discussed external legal counsel’s interpretation of tax
legislation with external legal counsel directly.
We involved our tax professionals with specialised skills and
knowledge to assist us to evaluate the recoverability of the VAT
receivable based on the above correspondence and their
interpretation of legislation, including historical payments and offsets
received to date for claims prior to the period of July 2017 to June
2020.
We tested the judgments around the timing of VAT offsetting by
comparing the Company’s business plan to historical performance.
We also evaluated the reasonableness of the annual percentage of
VAT to corporate tax offset included in each scenario by considering
recent developments with the relevant authorities and the
interpretations by management and their external legal counsel of the
relevant tax legislation.
We evaluated the reasonableness of the provision by performing
sensitivity analyses on alternative weighting and probability scenarios.
We evaluated the VAT receivable disclosure in the consolidated
financial statements.
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AngloGold Ashanti Limited <AFS>
Key Audit Matter (KAM)
How the matter was addressed in the audit
Rehabilitation and decommissioning provision (Consolidated
KAM)
At 31 December 2020 the rehabilitation and decommissioning provision
amounted to $674 million in the consolidated financial statements.
The Company incurs obligations to close, restore and rehabilitate its
mine sites. Auditing the Company’s rehabilitation and decommissioning
provision was complex due to the significance, as well as the high
estimation uncertainty, of the provision. The determination of the
provision is based on, among other things, judgements and estimates of
current damage caused, nature, timing and amount of future costs to be
incurred to rehabilitate the mine sites, estimates of future inflation,
exchange rates and discount rates. These assumptions are inherently
judgemental and subject to continued mining activity and rehabilitation,
legislation and environmental changes, which cannot be predicted with
certainty and thus requires specific focus each year and the use of
specialists on our team.
The consolidated disclosures are included in Note 1.2 and Note 27 to
the consolidated financial statements

Our procedures to address this matter included, among others,
obtaining an understanding, evaluating the design and testing the
operating effectiveness of controls over the Company’s process to
estimate rehabilitation and decommissioning provisions. For example,
we tested controls over the determination of key inputs such as life of
mine reserves and production profile, discount rates, inflation and
exchange rates, and the nature, amount and timing of future
rehabilitation costs.
With the support of our valuation specialists, we assessed
management’s macro-economic assumptions in their rehabilitation
models by comparing them to available market information. The most
significant of these macro-economic assumptions were the risk-free
interest rates, expected inflation and exchange rates.
We tested the mathematical accuracy of the valuation models.
We compared the timing of the expected cash flows with reference to
the life of mine plans for the respective mines.
We compared the current year cash flow assumptions to those of the
prior year and considered management’s explanations where these
have changed or deviated. We compared the cost rates used by
management to publicly available information, as well as ongoing
rehabilitation activities undertaken by the Company.
With the support of our environmental specialists, we inquired of
operational management whether additional environmental
disturbance occurred since the prior year that would require additional
rehabilitation in the future and compared this information to the current
mine plan. We inspected reports of the Company’s mine closure plans
and assessments of the timing and determination of costs to be
incurred prepared by management.
We, together with our environmental specialists, evaluated the reports
prepared by management to assist in the calculation of the provision.
In so doing, we also evaluated management’s professional
qualifications and experience related to the estimate, and use of
industry accepted methodology.
Other Information
The directors are responsible for the other information. The other information comprises the information included in the 130 page
document titled AngloGold Ashanti Limited Annual Report for the year ended 31 December 2020, which includes the Audit and
Risk Committee – Chairman’s Letter, the Chief Financial Officer’s Review, the Company Secretary’s Certificate and the Directors’
Report as required by the Companies Act of South Africa. The other information does not include the consolidated and separate
financial statements and our auditor’s report thereon.
Our opinion on the consolidated and separate financial statements does not cover the other information and we do not express any
form of assurance conclusion thereon.
In connection with our audit of the consolidated and separate financial statements, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the consolidated and separate financial
statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have
performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have
nothing to report in this regard.
Responsibilities of the Directors for the Consolidated and Separate Financial Statements
The directors are responsible for the preparation and fair presentation of the consolidated and separate financial statements in
accordance with International Financial Reporting Standards and the requirements of the Companies Act of South Africa, and for
such internal control as the directors determine is necessary to enable the preparation of consolidated and separate financial
statements that are free from material misstatement, whether due to fraud or error.
In preparing the consolidated and separate financial statements, the directors are responsible for assessing the group and
company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going
concern basis of accounting unless the directors either intend to liquidate the group and company or to cease operations, or have
no realistic alternative but to do so.
Auditor’s Responsibilities for the Audit of the Consolidated and Separate Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated and separate financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs will
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AngloGold Ashanti Limited <AFS>
always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if,
individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis
of these consolidated and separate financial statements.
As part of an audit in accordance with ISAs, we exercise professional judgement and maintain professional scepticism throughout
the audit. We also:
•     Identify and assess the risks of material misstatement of the consolidated and separate financial statements, whether due to
fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and
appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher
than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal control.
•     Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the group and company’s internal
control.
•     Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related
disclosures made by the directors.
•     Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and based on the audit evidence
obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the group and
company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw
attention in our auditor’s report to the related disclosures in the consolidated and separate financial statements or, if such
disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of
our auditor’s report. However, future events or conditions may cause the group and/or company to cease to continue as a going
concern.
•     Evaluate the overall presentation, structure and content of the consolidated and separate financial statements, including the
disclosures, and whether the consolidated and separate financial statements represent the underlying transactions and events
in a manner that achieves fair presentation.
•     Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the
group to express an opinion on the consolidated and separate financial statements. We are responsible for the direction,
supervision and performance of the group audit. We remain solely responsible for our audit opinion.
We communicate with the directors regarding, among other matters, the planned scope and timing of the audit and significant audit
findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide the directors with a statement that we have complied with relevant ethical requirements regarding independence,
and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence,
and where applicable, related safeguards.
From the matters communicated with the directors, we determine those matters that were of most significance in the audit of the
consolidated and separate financial statements of the current period and are therefore the key audit matters. We describe these
matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare
circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing
so would reasonably be expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
In terms of the IRBA Rule published in Government Gazette Number 39475, dated 04 December 2015, we report that Ernst &
Young Inc., and its predecessor firm, has been the auditor of AngloGold Ashanti Limited for seventy-seven years. Ernst & Young
Inc. was appointed as auditor of Vaal Reefs Exploration and Mining Company Limited in 1944. In 1998 all of Anglo American’s
other individually listed gold mines, which were not audited by Ernst & Young Inc., or its predecessor firm, were merged into Vaal
Reefs Exploration and Mining Company Limited. Vaal Reefs Exploration and Mining Company Limited was renamed AngloGold
Limited in 1998, and in 2004 to AngloGold Ashanti Limited. Ernst & Young Inc. was retained as auditor of AngloGold Limited (and
AngloGold Ashanti Limited) and has been the auditor of the expanded Company for twenty-three years. We confirm that we are
independent in accordance with the Independent Regulatory Board for Auditors’ Code of Professional Conduct for Registered
Auditors and other independence requirements applicable to the independent audit of AngloGold Ashanti Limited.



Ernst & Young Inc.
Ernest Adriaan Lodewyk Botha - Director
Chartered Accountant (SA)
Registered Auditor
Johannesburg, South Africa
26 March 2021
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GROUP - INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER
33
AngloGold Ashanti Limited <AFS>

US dollar millions
Notes
2020
2019
2018
Continuing operations
Revenue from product sales
3
4,427
3,525
3,336
Cost of sales
4
(2,699)
(2,626)
(2,584)
(Loss) gain on non-hedge derivatives and other commodity contracts
(19)
5
(2)
Gross profit
2
1,709
904
750
Corporate administration, marketing and other expenses
5
(68)
(82)
(76)
Exploration and evaluation costs
(124)
(112)
(98)
Impairment, derecognition of assets and loss on disposal
(1)
(6)
(7)
Other expenses
6
(57)
(83)
(79)
Operating profit
1,459
621
490
Interest income
27
14
8
Dividend received
2
2
Foreign exchange and other losses
(12)
(9)
Finance costs and unwinding of obligations
7
(177)
(172)
(168)
Share of associates and joint ventures' profit
8
278
168
122
Profit before taxation
1,589
619
445
Taxation
12
(625)
(250)
(212)
Profit after taxation from continuing operations
964
369
233
Discontinued operations
Profit (loss) from discontinued operations
9
7
(376)
(83)
Profit (loss) for the year
971
(7)
150
Allocated as follows:
Equity shareholders
Continuing operations
946
364
216
Discontinued operations
7
(376)
(83)
Non-controlling interests
Continuing operations
18
5
17
971
(7)
150
Basic earnings (loss) per ordinary share (cents)
13
227
(3)
32
Earnings per ordinary share from continuing operations
225
87
52
Earnings (loss) per ordinary share from discontinued operations
2
(90)
(20)
Diluted earnings (loss) per ordinary share (cents)
13
227
(3)
32
Earnings per ordinary share from continuing operations
225
87
52
Earnings (loss) per ordinary share from discontinued operations
2
(90)
(20)
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GROUP - STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER
34
AngloGold Ashanti Limited <AFS>

US dollar millions
2020
2019
Restated
2018
Restated
Profit (loss) for the year
971
(7)
150
Items that will be reclassified subsequently to profit or loss:
Exchange differences on translation of foreign operations
(1)
38
(50)
Items that will not be reclassified subsequently to profit or loss:
86
14
(91)
Exchange differences on translation of non-foreign operations
(1)
(16)
4
(100)
Net gain on equity investments
98
6
9
Actuarial gain recognised
10
2
5
Deferred taxation thereon
(6)
2
(5)
Other comprehensive income (loss) for the year, net of tax
124
14
(141)
Total comprehensive income (loss) for the year, net of tax
1,095
7
9
Allocated as follows:
Equity shareholders
Continuing operations
1,121
378
75
Discontinued operations
(44)
(376)
(83)
Non-controlling interests
Continuing operations
18
5
17
1,095
7
9
(1)
Exchange differences arising on translation of foreign and non-foreign operations have been restated to reflect those that will be reclassified subsequently
to profit or loss and those that will not be reclassified subsequently to profit or loss. Refer to note 1.
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GROUP - STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER
35
AngloGold Ashanti Limited <AFS>

US dollar millions
Notes
2020
2019
2018
ASSETS
Non-current assets
Tangible assets
15
2,884
2,592
3,381
Right of use assets
16
142
158
Intangible assets
17
131
123
123
Investments in associates and joint ventures
19
1,651
1,581
1,528
Other investments
20
188
76
141
Inventories
21
69
93
106
Trade, other receivables and other assets
22
235
122
102
Deferred taxation
29
7
105
Cash restricted for use
23
31
31
35
5,338
4,881
5,416
Current assets
Other investments
20
10
6
Inventories
21
733
632
652
Trade, other receivables and other assets
22
229
250
209
Cash restricted for use
23
42
33
31
Cash and cash equivalents
24
1,330
456
329
2,334
1,381
1,227
Assets held for sale
9
601
2,334
1,982
1,227
Total assets
7,672
6,863
6,643
EQUITY AND LIABILITIES
Share capital and premium
25
7,214
7,199
7,171
Accumulated losses and other reserves
(3,519)
(4,559)
(4,519)
Shareholders' equity
3,695
2,640
2,652
Non-controlling interests
45
36
42
Total equity
3,740
2,676
2,694
Non-current liabilities
Borrowings
26
1,789
1,299
1,911
Lease liabilities
16
116
126
Environmental rehabilitation and other provisions
27
731
697
827
Provision for pension and post-retirement benefits
28
83
100
100
Trade, other payables and provisions
30
8
15
3
Deferred taxation
29
246
241
315
2,973
2,478
3,156
Current liabilities
Borrowings
26
142
734
139
Lease liabilities
16
37
45
Trade, other payables and provisions
30
627
586
594
Taxation
31
153
72
60
959
1,437
793
Liabilities held for sale
9
272
959
1,709
793
Total liabilities
3,932
4,187
3,949
Total equity and liabilities
7,672
6,863
6,643
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GROUP - STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER
36
AngloGold Ashanti Limited <AFS>

US dollar millions
Notes
2020
2019
2018
Cash flows from operating activities
Receipts from customers
4,411
3,535
3,339
Payments to suppliers and employees
(2,583)
(2,433)
(2,408)
Cash generated from operations
32
1,828
1,102
931
Dividends received from joint ventures
148
77
91
Taxation refund
31
7
5
Taxation paid
31
(431)
(228)
(171)
Net cash inflow from operating activities from continuing operations
1,545
958
856
Net cash inflow from operating activities from discontinued operations
109
89
1
Net cash inflow from operating activities
1,654
1,047
857
Cash flows from investing activities
Capital expenditure
- project capital
(331)
(336)
(170)
- stay-in-business capital
(370)
(367)
(405)
Interest capitalised and paid
(17)
(6)
Acquisition of intangible assets
(1)
Dividends from other investments
9
2
Proceeds from disposal of tangible assets
3
3
10
Other investments acquired
(8)
(9)
(13)
Proceeds from disposal of other investments
9
3
7
Investments in associates and joint ventures
(5)
(8)
Proceeds from disposal of joint ventures
26
Loans advanced to associates and joint ventures
(3)
(5)
Loans repaid by associates and joint ventures
12
23
22
Recognition of joint operation - cash
2
Proceeds from disposal of discontinued assets and subsidiaries
200
Increase in cash restricted for use
(9)
(6)
Interest received
27
14
5
Net cash outflow from investing activities from continuing operations
(448)
(683)
(561)
Net cash (outflow) inflow from investing activities from discontinued
operations
(31)
(54)
226
Cash in subsidiaries sold and transferred to held for sale
3
(6)
Net cash outflow from investing activities
(476)
(743)
(335)
Cash flows from financing activities
Proceeds from borrowings
2,226
168
753
Repayment of borrowings
(2,310)
(123)
(967)
Repayment of lease liabilities
(47)
(42)
Finance costs - borrowings
26
(110)
(128)
(130)
Finance costs - leases
(8)
(9)
Other borrowing costs
(33)
(10)
Dividends paid
(47)
(43)
(39)
Net cash outflow from financing activities from continuing operations
(329)
(177)
(393)
Net cash inflow (outflow) from financing activities from discontinued
operations
Net cash outflow from financing activities
(329)
(177)
(393)
Net increase in cash and cash equivalents
849
127
129
Translation
25
(5)
Cash and cash equivalents at beginning of year
456
329
205
Cash and cash equivalents at end of year
24
1,330
456
329
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GROUP - STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER
37
AngloGold Ashanti Limited <AFS>




US dollar millions
Share
capital
and
premium
Other
capital
reserves
(1)
Equity holders of the parent
Retained
earnings
Fair value
(Accumulated
through
losses)
(2)
OCI

Actuarial
gains
(losses)
Foreign
currency
translation
reserve
(3)



Total

Non-
controlling
interests


Total
equity
Balance at 31 December 2017
7,134
124
(3,349)
33
(16)
(1,263)
2,663
41
2,704
Profit (loss) for the year
133
133
17
150
Other comprehensive income (loss)
5
4
(150)
(141)
(141)
Total comprehensive income (loss)
133
5
4
(150)
(8)
17
9
Shares issued
37
37
37
Share-based payment for share awards net
of exercised
(17)
(17)
(17)
Dividends paid (note 14)
(24)
(24)
(24)
Dividends of subsidiaries
(15)
(15)
Transfer of gain on disposal of equity
investments
1
(1)
Translation
(11)
12
1
(1)
Balance at 31 December 2018
7,171
96
(3,227)
37
(12)
(1,413)
2,652
42
2,694
Profit (loss) for the year
(12)
(12)
5
(7)
Other comprehensive income (loss)
8
2
4
14
14
Total comprehensive income (loss)
(12)
8
2
4
2
5
7
Shares issued
28
28
28
Share-based payment for share awards net
of exercised
(10)
(10)
(10)
Dividends paid (note 14)
(27)
(27)
(27)
Dividends of subsidiaries
(16)
(16)
Transactions with non-controlling interests
(4)
(4)
4
Translation
1
(2)
(1)
1
Balance at 31 December 2019
7,199
83
(3,268)
45
(10)
(1,409)
2,640
36
2,676
Profit (loss) for the year
953
953
18
971
Other comprehensive income (loss)
92
10
22
124
124
Total comprehensive income (loss)
953
92
10
22
1,077
18
1,095
Shares issued
15
15
15
Share-based payment for share awards net
of exercised
(3)
(3)
(3)
Dividends paid (note 14)
(38)
(38)
(38)
Dividends of subsidiaries
(9)
(9)
Recognition of joint operation
4
4
4
Transfer on disposal and derecognition of
equity investments
6
(6)
Translation
(3)
2
1
Balance at 31 December 2020
7,214
77
(2,341)
131
1
(1,387)
3,695
45
3,740
(1)
Other capital reserves include a surplus on disposal of Company shares held by companies prior to the formation of AngloGold Ashanti Limited of $10m
(2019: $10m; 2018: $10m), surplus on equity transaction of joint venture of $36m (2019: $36m; 2018: $36m), equity items for share-based payments of
$33m (2019: $39m; 2018: $48m) and other reserves.
(2)
Included in accumulated losses are retained earnings totalling $391m (2019: $378m; 2018: $283m) arising at the equity accounted investments and certain
subsidiaries which may not be remitted without third party consent.
(3)
Foreign currency translation reserve includes a loss of $101m relating to the sale of the South African operations that will not re-cycle through the Income
statement. Of the remaining balance, a loss of $1,295m relates to further balances that will not re-cycle through the Income statement on disposal of the
non-foreign operations, and a gain of $9m relating to the foreign operations that will re-cycle through the Income statement on disposal (refer to note 1).
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GROUP - NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER
38
AngloGold Ashanti Limited <AFS>
1.     ACCOUNTING POLICIES
STATEMENT OF COMPLIANCE
The consolidated and Company financial statements are prepared in compliance with International Financial Reporting
Standards (IFRS) and Interpretations of those standards, as issued by the International Accounting Standards Board (IASB),
SAICA Financial Reporting Guides as issued by the Accounting Practices Committee, Financial Reporting Pronouncements
as issued by the Financial Reporting Standards Council, JSE Listings Requirements and in the manner required by the South
African Companies Act, 2008.
NEW STANDARDS AND INTERPRETATIONS ISSUED
The financial statements have been drawn up on the basis of accounting standards, interpretations and amendments effective
at the beginning of the accounting period on 1 January 2020. The adoption of the new standards, interpretations and
amendments effective from 1 January 2020 had no material impact on the group and company.
AngloGold Ashanti assesses the significance of new standards, interpretations and amendments to standards in issue that
are not yet adopted but are likely to affect the financial reporting in future years.
We have identified that the IAS 16 "Property, Plant and Equipment", amendment "Property, Plant and Equipment—Proceeds
before Intended Use" issued by the IASB in May 2020 with an effective date of 1 January 2022, is likely to affect the financial
reporting in future years.
IAS 16 amendment "Property, Plant and Equipment—Proceeds before Intended Use"
The amendment prohibits deducting from the cost of an item of property, plant and equipment any proceeds from selling items
produced while bringing that asset to the location and condition necessary for it to be capable of operating in the manner
intended by management. Instead, an entity recognises the proceeds from selling such items, and the cost of producing those
items, in profit or loss. An entity applies the amendments retrospectively to items of property, plant and equipment made
available for use on or after the beginning of the earliest period presented when the entity first applies the amendment.
Management is assessing the impact the amendment will have on the group.
Interest Rate Benchmark Reform - Phase 2 Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16
The Amendments are effective for annual periods beginning on or after 1 January 2021, with early application permitted. The
Amendments focus on the effects on financial statements when an entity replaces the old interest rate benchmark with an
alternative benchmark rate as a consequence of the global regulatory reform of key interbank offered rates (IBORs). The
group has IBOR linked borrowings and is in the process of identifying and negotiating with bank syndicates, new reference
rates on the IBOR linked borrowings, including the consideration of the Secured Overnight Financing Rate which is the
recommended USD LIBOR alternative. Refer to note 26 for details of IBOR linked borrowings.
RESTATEMENTS OF PRIOR YEAR DISCLOSURES
Statement of comprehensive income
During 2020, the group completed the sale of its South African operations, including several South African subsidiaries. As a
result of the sale, the Foreign Currency Translation Reserve (FCTR) balance was reassessed. It was determined that the
FCTR, which had originated from non-foreign operations would not recycle through the income statement. Non-foreign
operations are those entities with the same functional currency (ZAR) as the AngloGold Ashanti Limited parent company,
which is different to the group presentation currency (USD). IAS 21 is silent regarding such a situation where a subsidiary is
partially or fully disposed of resulting in a partial or full release of the FCTR associated with the subsidiary. The Statement of
comprehensive income previously disclosed all foreign currency translation differences as “Items that will be reclassified
subsequently to profit or loss”. As a result of the reassessment, the FCTR has been split between “Items that will be
reclassified subsequently to profit or loss” and “Items that will not be reclassified subsequently to profit or loss”. The
comparatives have been restated to include the revised disclosure.
The restatement has no impact on reported totals in the statement of comprehensive income of profit (loss) for the period;
other comprehensive income (loss) for the period, net of tax; total comprehensive income (loss) for the period, net of tax; or
on earnings per share or headline earnings per share for the period.
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GROUP – NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER
39
AngloGold Ashanti Limited <AFS>


US dollar millions
2019
2018
As
previously
reported
Adjustments
Restated
As
previously
reported
Adjustments
Restated
Profit (loss) for the period
Items that will be reclassified subsequently
to profit or loss:
Exchange differences on translation of
foreign operations
Items that will not be reclassified
subsequently to profit or loss:
Exchange differences on translation of non-
foreign operations
Net gain (loss) on equity investments
Actuarial gain recognised
Deferred taxation thereon
Other comprehensive (loss) income for the
period, net of tax
Total comprehensive income (loss) for the
period, net of tax
The significant accounting principles applied in the presentation of the group and Company annual financial statements are
set out below. The accounting policies adopted are detailed in Annexure A: “Summary of significant accounting policies”.
1.1
BASIS OF PREPARATION
The financial statements are prepared according to the historical cost convention, except for the revaluation of certain financial
instruments to fair value. The group’s accounting policies as set out below are consistent in all material respects with those
applied in the previous year.
The group financial statements are presented in US dollars.
All notes are from continuing operations unless otherwise stated.
The group financial statements incorporate the financial statements of the Company, its subsidiaries and its interests in joint
ventures and associates. The financial statements of all material subsidiaries, joint ventures and associates, are prepared for
the same reporting period as the holding company, using the same accounting policies.
Subsidiaries are all entities over which the group has control. The group controls an entity when it is exposed to, or has rights
to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the
entity. Control would generally exist where the group owns more than 50% of the voting rights, unless the group and other
investors collectively control the entity where they must act together to direct the relevant activities. In such cases, as no
investor individually controls the entity the investment is accounted for as an associate, joint venture or a joint operation.
Subsidiaries are fully consolidated from the date on which control is transferred to the group. They are deconsolidated from
the date on which control ceases. The group re-assesses whether or not it controls an investee if facts and circumstances
indicate that there are changes to one or more of the three elements of control.
Intra-group transactions, balances and unrealised gains and losses on transactions between group companies, including any
resulting tax effects are eliminated.
Subsidiaries are accounted for at cost and are adjusted for impairments, where appropriate, in the Company financial
statements.
USE OF ESTIMATES
The preparation of the financial statements requires the group’s management to make estimates and assumptions that affect
the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial
statements, and the reported amounts of revenues and expenses during the reporting period. The determination of estimates
requires the exercise of judgement based on various assumptions and other factors such as historical experience, current
and expected economic conditions, and in some cases actuarial techniques. Actual results could differ from those estimates.
(7)
(7)
150
150
4
(4)
(150)
100
(50)
10
4
14
9
(100)
(91)
4
4
(100)
(100)
6
6
9
9
2
2
5
5
2
2
(5)
(5)
14
14
(141)
(141)
7
7
9
9
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GROUP – NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER
40
AngloGold Ashanti Limited <AFS>
The more significant areas requiring the use of management estimates and assumptions relate to Ore Reserve that are the
basis of future cash flow estimates and unit-of-production depreciation, depletion and amortisation calculations;
environmental, reclamation and closure obligations; asset impairments/reversals (including impairments of goodwill);
production start date; recoverability of indirect taxes; recoverability of deferred tax assets; and write-downs of inventory to net
realisable value. Other estimates include employee benefit liabilities, unrecognised tax positions and deferred compensation
assets.
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including
expectations of future events that are believed to be reasonable under the circumstances.
The uncertainty of the impact of the COVID-19 pandemic on the global economy and on the group has been considered in
judgements made and in the key assumptions used in management's estimates. Key assumptions include items such as
commodity prices, exchange rates and changes in interest rates.
The judgements management has applied in the application of accounting policies, and the estimates and assumptions that
have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial
year, are discussed below.
Carrying value of tangible assets
Amortisation
The majority of mining assets are amortised using the units-of-production method where the mine operating plan calls for
production from a well-defined proved and probable Ore Reserve.
For other tangible assets, the straight-line method is applied over the estimated useful life of the asset which does not exceed
the estimated mine life based on proved and probable Ore Reserve as the useful lives of these assets are considered to be
limited to the life of the relevant mine.
The calculation of the units-of-production rate of amortisation could be impacted to the extent that actual production in the
future is different from current forecast production based on proved and probable Ore Reserve. This would generally arise
from the following factors:
changes in proved and probable Ore Reserve;
the grade of Ore Reserve may vary significantly from time to time;
differences between actual commodity prices and commodity price assumptions;
unforeseen operational issues at mine sites; and
changes in capital, operating, mining, processing and reclamation costs, discount rates and foreign exchange rates.
Changes in proved and probable Ore Reserve could similarly impact the useful lives of assets amortised on the straight-line
method, where those lives are limited to the life of the mine.
Stripping costs
The group has a number of surface mining operations that are in the production phase for which production stripping costs
are incurred. The benefits that accrue to the group as a result of incurring production stripping costs include (a) ore that can
be used to produce inventory and (b) improved access to further quantities of material that will be mined in future periods.
The production stripping costs relating to improved access to further quantities of material in future periods are capitalised as
a stripping activity asset, if and only if, all of the following are met:
It is probable that the future economic benefit (improved access to the orebody) associated with the stripping activity will
flow to the group;
The group can identify the component of the orebody for which access has been improved; and
The costs relating to the stripping activity associated with that component or components can be measured reliably.
Components of the various orebodies at the operations of the group are determined based on the geological areas identified
for each of the orebodies and are reflected in the Ore Reserve reporting of the group. In determining whether any production
stripping costs should be capitalised as a stripping activity asset, the group uses three operational guidance measures; two
of which relate to production measures, while the third relates to an average stripping ratio measure.
Once determined that any portion of the production stripping costs should be capitalised, the group determines the amount
of the production stripping costs that should be capitalised with reference to the average mine costs per tonne of the
component and the actual waste tonnes that should be deferred. Stripping activity assets are amortised on the units-of-
production method based on the Ore Reserve of the component or components of the orebody to which these assets relate.
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GROUP – NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER
41
AngloGold Ashanti Limited <AFS>
This accounting treatment is consistent with that for stripping costs incurred during the development phase of a pit, before
production commences, except that stripping costs incurred during the development phase of a pit, before production
commences, are amortised on the units-of-production method based on the Ore Reserve of the pit.
Deferred stripping costs are included in ‘Mine development costs’, within tangible assets. These costs form part of the total
investment in the relevant cash-generating unit, which is reviewed for impairment if events or a change in circumstances
indicate that the carrying value may not be recoverable. Amortisation of stripping activity assets is included in cost of sales.
Impairment
The group reviews and tests the carrying value of tangible assets when events or changes in circumstances indicate that the
carrying amount may not be recoverable. Assets are grouped at the lowest level for which identifiable cash flows are largely
independent of cash flows of other assets, which is generally at the individual mine level. If there are indications that
impairment may have occurred, estimates are prepared of expected future cash flows for each group of assets. Expected
future cash flows used to determine the value in use of goodwill and tangible assets are inherently uncertain and could
materially change over time and impact the recoverable amounts. The cash flows and value in use are significantly affected
by a number of factors including published Ore Reserve, Mineral Resource, exploration potential and production estimates,
together with economic factors such as spot and future metal prices, discount rates, foreign currency exchange rates,
estimates of costs to produce Ore Reserve and future capital expenditure. At the reporting date the group assesses whether
any of the indicators which gave rise to previously recognised impairments have changed such that the impairment loss no
longer exists or may have decreased. The impairment loss is then assessed on the original factors for reversal and if indicated,
such reversal is recognised.
An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The
recoverable amount is the higher of an asset’s fair value less costs to sell and value in use.
The recoverable amount is estimated based on the positive indicators. If an impairment loss has decreased, the carrying
amount is recorded at the recoverable amount as limited in terms of IAS 36 Impairment of Assets.
The carrying value of tangible assets at 31 December 2020 was $2,884m (2019: $2,592m; 2018: $3,381m). The impairment
and derecognition of tangible assets recognised in the consolidated financial statements for the year ended
31 December 2020 (including impairment of tangible assets transferred to held for sale) was nil (2019: $505m; 2018: $104m).
Production start date
The group assesses the stage of each mine construction project to determine when a project moves into the production stage.
The criteria used to assess the start date are determined by the unique nature of each mine construction project and include
factors such as the complexity of a plant and its location. The group considers various relevant criteria to assess when the
construction project is substantially complete and ready for its intended use and moves into the production stage. The criteria
used in the assessment would include, but are not limited to the following:
the level of capital expenditure compared to the construction cost estimates;
completion of a reasonable period of testing of the constructed asset;
adequacy of stope face;
ability to produce metals in saleable form (within specifications); and
ability to sustain ongoing production of metal.
When a mine construction project moves into the production stage, the capitalisation of certain mine construction costs ceases
and costs are either regarded as inventory or expensed, except for capitalisable costs related to mining asset additions or
improvements, underground mine development, deferred stripping activities, or Ore Reserve development.
Phase 1 of the Obuasi mine re-development project moved into the production stage on 1 October 2020 when it was
determined that the Phase 1 assets were capable of operating in the manner intended by management.
Development expenditure
Development activities commence after project sanctioning by the appropriate level of management. Judgement is applied
by management in determining when a project has reached a stage at which economically recoverable reserves exist such
that development may be sanctioned. In exercising this judgement, management is required to make certain estimates and
assumptions that may change as new information becomes available. If, after having started the development activity, a
judgement is made that a development asset is impaired, the appropriate amount will be written off to the income statement.
Capitalised development costs are included as assets under construction and mine development costs in tangible assets,
refer note 15.
Carrying value of goodwill
Where an investment in a subsidiary, joint venture or an associate is made, any excess of the consideration transferred over
the fair value of the attributable Mineral Resource including value beyond proved and probable Ore Reserve, exploration
properties and net assets is recognised as goodwill.
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GROUP – NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER
42
AngloGold Ashanti Limited <AFS>
Goodwill is not subject to amortisation and is tested annually for impairment and whenever events or changes in circumstance
indicate that the carrying amount may not be recoverable.
An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The
recoverable amount is the higher of an asset’s fair value less costs to sell and value in use. For the purposes of assessing
impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash-generating
units).
An individual operating mine is not a typical going-concern business because of the finite life of its Ore Reserve. The allocation
of goodwill to an individual mine will result in an eventual goodwill impairment due to the wasting nature of the mine reporting
unit. In accordance with the provisions of IAS 36, the group performs its annual impairment review of assigned goodwill during
the fourth quarter of each year, refer note 15 impairment assumptions.
The carrying value of goodwill in the consolidated financial statements at 31 December 2020 was $126m (2019: $116m;
2018: $116m). No impairment of goodwill was recognised in the consolidated financial statements for the years ended
31 December 2020, 2019 and 2018.
Income taxes
The group is subject to income taxes in numerous jurisdictions. Significant judgement is required in determining the worldwide
provision for income taxes due to the complexity of legislation. There are many transactions and calculations for which the
ultimate tax determination is uncertain during the ordinary course of business. The group recognises liabilities for anticipated
tax audit issues based on estimates of whether additional taxes will be due. Where the final tax outcome of these matters is
different from the amounts that were initially recorded, such differences will impact the income tax and deferred tax provisions
in the period in which such determination is made.
The group tax reconciliation between tax expense and the product of accounting profit multiplied by the applicable tax rate,
prepared in accordance with IAS 12 Income Taxes, applies the South African corporate tax rate of 28%.
The group recognises the net future tax benefit related to deferred income tax assets to the extent that it is probable that the
deductible temporary differences will reverse in the foreseeable future. Assessing the recoverability of deferred income tax
assets requires the group to make significant estimates related to expectations of future taxable income. Estimates of future
taxable income are based on forecast cash flows from operations and the application of existing tax laws in each jurisdiction.
To the extent that future cash flows and taxable income differ significantly from estimates, the ability of the group to realise
the net deferred tax assets recorded at the reporting date could be impacted.
Additionally, future changes in tax laws in the jurisdictions in which the group operates could limit the ability of the group to
obtain tax deductions in future periods.
Carrying values at 31 December 2020:
deferred tax asset: $7m (2019: $105m; 2018: nil);
deferred tax liability: $246m (2019: $241m; 2018: $315m);
taxation liability: $153m (2019: $72m; 2018: $60m);
taxation asset: $14m (2019: $10m; 2018: $6m), included in trade, other receivables and other assets; and
unrecognised value of deferred tax assets: $487m (2019: $389m; 2018: $501m).
Provision for environmental rehabilitation obligations
The group’s mining and exploration activities are subject to various laws and regulations governing the protection of the
environment. The group recognises management’s best estimate for decommissioning and restoration obligations in the
period in which they are incurred. Future changes to environmental laws and regulations, technology, life of mine estimates,
inflation rates, foreign currency exchange rates and discount rates could affect the carrying amount of this provision.
The carrying amount of the rehabilitation obligations (including held for sale rehabilitation obligations) for the group at
31 December 2020 was $674m (2019: $730m; 2018: $637m).
Stockpiles and metals in process
Costs that are incurred in or benefit the production process are accumulated in stockpiles and metals in process values. Net
realisable value tests are performed at least annually and represent the estimated future sales price of the product, based on
prevailing and long-term metals prices, less estimated costs to complete production and bring the product to sale.
Surface and underground stockpiles and metals in process are measured by estimating the number of tonnes added and
removed from the stockpile, the number of contained ounces based on assay data, and the estimated recovery percentage
based on the expected processing method. Stockpile ore tonnages are verified by periodic surveys.
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GROUP – NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER
43
AngloGold Ashanti Limited <AFS>
Although the quantities of recoverable metal are reconciled by comparing the grades of ore to the quantities of metals actually
recovered (metallurgical balancing), the nature of the process inherently limits the ability to precisely monitor recoverability
levels. As a result, the metallurgical balancing process is constantly monitored and engineering estimates are refined based
on actual results over time.
Variations between actual and estimated quantities resulting from changes in assumptions and estimates that do not result in
write-downs to net realisable value are accounted for on a prospective basis.
The carrying value of inventories (excluding finished goods and mine operating supplies) for the group at 31 December 2020
was $382m (2019: $377m; 2018: $404m).
Recoverable tax, rebates, levies and duties
In a number of countries, particularly in Africa and Argentina, AngloGold Ashanti is due refunds of indirect tax which remain
outstanding for periods longer than those provided for in the respective statutes refer note 22.
In addition, AngloGold Ashanti has unresolved non-income tax disputes in a number of countries, particularly in Africa and in
Brazil and Argentina. If the outstanding input taxes are not received and these disputes are not resolved in a manner
favourable to AngloGold Ashanti, it could have a material adverse effect upon the carrying value of these assets and our
results of operations.
The net carrying value of recoverable tax, rebates, levies and duties for the group at 31 December 2020 was $281m
(2019: $227m; 2018: $194m).
Post-retirement obligations
The determination of the group's obligation and expense for post-retirement liabilities depends on the selection of certain
assumptions used by actuaries to calculate amounts. These assumptions include, among others, the discount rate, the
expected long-term rate of return of plan assets, health care inflation costs, rates of increase in compensation costs and the
number of employees who reach retirement age before the mine reaches the end of its life. While AngloGold Ashanti believes
that these assumptions are appropriate, significant changes in the assumptions may materially affect post-retirement
obligations as well as future expenses, which may result in an impact on earnings in the periods that the changes in these
assumptions occur.
The carrying value of the post-retirement obligations at 31 December 2020 was $83m (2019: $100m; 2018: $100m).
Ore Reserve estimates
An Ore Reserve estimate is an estimate of the amount of product that can be economically and legally extracted from the
group’s properties. In order to calculate the Ore Reserve, estimates and assumptions are required about a range of geological,
technical and economic factors, including quantities, grades, production techniques, recovery rates, production costs,
transport costs, commodity demand, commodity prices and exchange rates.
Estimating the quantity and/or grade of the Ore Reserve requires the size, shape and depth of orebodies to be determined by
analysing geological data such as the logging and assaying of drill samples. This process may require complex and difficult
geological judgements and calculations to interpret the data.
The group is required to determine and report its Ore Reserve in accordance with the minimum standards described by the
South African Code for the reporting of Exploration Results, Mineral Resources and Mineral Reserves (The SAMREC Code,
2016 Edition).
Because the economic assumptions used to estimate changes in the Ore Reserve from period to period, and because
additional geological data is generated during the course of operations, estimates of the Ore Reserve may change from period
to period. Changes in the reported Ore Reserve may affect the group’s financial results and financial position in a number of
ways, including the following:
asset carrying values may be affected due to changes in estimated future cash flows;
depreciation, depletion and amortisation charged in the income statement may change where such charges are
determined by the units-of-production method, or where the useful economic lives of assets change;
overburden removal costs, including production stripping activities, recorded on the statement of financial position or
charged in the income statement may change due to changes in stripping ratios or the units-of-production method of
depreciation;
decommissioning site restoration and environmental provisions may change where changes in the estimated Ore Reserve
affect expectations about the timing or cost of these activities; and
the carrying value of deferred tax assets may change due to changes in estimates of the likely recovery of the tax benefits.
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GROUP – NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER
44
AngloGold Ashanti Limited <AFS>
Provision for silicosis
Significant judgement is applied in estimating the costs that will be incurred to settle the silicosis class action claims and
related expenditure. The final costs may differ from current cost estimates. The provision is based on actuarial assumptions
including:
silicosis prevalence rates;
estimated settlement per claimant;
benefit take-up rates;
disease progression rates;
timing of cashflows; and
discount rate.
Management believes the assumptions are appropriate, however changes in the assumptions may materially affect the
provision and final costs of settlement.
The carrying value of the silicosis provision at 31 December 2020 was $61m (2019: $65m; 2018: $63m).
Identification, classification and disposal of discontinued operations held for sale
During 2019, the decision to sell the remaining South African operations was made, judgement was applied regarding
classification of the disposal group as held for sale at year end, and whether the disposal group should be classified as a
discontinued operation. The South African asset sale was assessed as a major geographical area of operations and part of a
single co-ordinated plan to dispose of a major geographical area of operations and accordingly, it was classified as a
discontinued operation. The sale was announced on 12 February 2020 and closed on 30 September 2020. The fair value less
costs to sell of the held for sale disposal group at date of sale is included in note 9.
As a consequence of the sale, a deferred compensation asset was recognised. The deferred compensation asset is included
at fair value in level 3 of the fair value hierarchy. Management used a probability weighted discounted cash flow model to
measure the deferred compensation asset. The significant inputs and assumptions used in the discounted cash flow
calculation, included the production plan over the deferred compensation period and the weighted average cost of capital.
Details of the valuation, including a sensitivity assessment, are included in note 35.
The carrying value of the deferred compensation asset at 31 December 2020 was $28m.
Contingencies
By their nature, contingencies will only be resolved when one or more future events occur or fail to occur. The assessment of
such contingencies inherently involves the exercise of significant judgement and estimates of the outcome of future events.
Such contingencies include, but are not limited to environmental obligations, litigation, regulatory proceedings, tax matters
and losses resulting from other events and developments. Refer note 12 for tax uncertainties and contingencies and note 34
for legal claims and other contingencies.
When a loss is considered probable and reasonably estimable, a liability is recorded in the amount of the best estimate for
the ultimate loss. The likelihood of a loss with respect to a contingency can be difficult to predict and determining a meaningful
estimate of the loss or a range of loss may not always be practicable based on the information available at the time and the
potential effect of future events and decisions by third parties that will determine the ultimate resolution of the contingency. It
is not uncommon for such matters to be resolved over many years, during which time relevant developments and new
information is continuously evaluated to determine both the likelihood of any potential loss and whether it is possible to
reasonably estimate a range of possible losses. When a loss is probable but a reasonable estimate cannot be made,
disclosure is provided.
In determining the threshold for disclosure on a qualitative and quantitative basis, management considers the potential for a
disruptive effect on the normal functioning of the group and/or whether the contingency could impact investment decisions.
Such qualitative matters considered are reputational risks, regulatory compliance issues and reasonable investor
considerations. For quantitative purposes, an amount of $18m has been considered.
As a global company, the group is exposed to numerous legal risks. The outcome of currently pending and future proceedings
cannot be predicted with certainty. Litigation and other judicial proceedings as a rule raise difficult and complex legal issues
and are subject to uncertainties and complexities including, but not limited to, the facts and circumstances of each particular
case, issues regarding the jurisdiction in which each suit is brought and differences in applicable law. Upon resolution of any
pending legal matter, the group may be forced to incur charges in excess of the presently established provisions and related
insurance coverage. It is possible that the financial position, results of operations or cash flows of the group could be materially
affected by the unfavourable outcome of litigation.
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GROUP – NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER
45
AngloGold Ashanti Limited <AFS>
COVID-19 pandemic
AngloGold Ashanti recognises that all our stakeholders have a direct and material interest in the way in which we, as a
business, prepare for and respond to COVID-19 at our operations, in our communities and in the regions and countries in
which we operate. We are guided by our values and a pledge to protect the health of our employees and host communities,
while working to ensure business continuity.
The group has worked alongside authorities and key stakeholders in each operating country to assist public health efforts and
to help slow the spread of the virus. Measures have been taken to help protect the well-being of our employees and
communities.
AngloGold Ashanti continues to respond to the evolving COVID-19 pandemic while contributing to the global effort to stop the
spread of the virus and provide public health and economic relief to local communities. The Company has taken a number of
proactive steps to protect employees, host communities and the business itself. These initiatives have complemented
government responses in each of its operating jurisdictions. Our thoughts and prayers are with the families, colleagues and
loved ones of those who have been impacted by the virus.
As of the end of March 2021, second waves of the outbreak are being experienced in several of our operating jurisdictions,
coinciding with the prevalence of new, more contagious variants of the virus. As with the first wave, the increase in cases is
being countered by government-imposed movement restrictions, including mandatory isolation and quarantine measures.
Continued diligence is being observed to strict health protocols and vigilance in relation to business continuity including supply
chain. We remain mindful that the COVID-19 pandemic, its impacts on communities and economies, and the actions
authorities may take in response to it, are subject to change in response to current conditions.
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GROUP – NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER
46
AngloGold Ashanti Limited <AFS>
2
SEGMENTAL INFORMATION
AngloGold Ashanti Limited's operating segments are being reported based on the financial information provided to the Chief
Executive Officer and the Executive Committee, collectively identified as the Chief Operating Decision Maker (CODM). The
group produces gold as its primary product and does not have distinct divisional segments in terms of principal business
activity, but manages its business on the basis of different geographic segments (including equity accounted joint venture
investments). Individual members of the Executive Committee are responsible for geographic regions of the business.
Group analysis by origin is as follows:
Gold Income
US dollar millions
2020
2019
2018
Geographical analysis of gold income by origin is as follows:
Africa
(1)
2,769
2,203
1,983
Australia
989
851
780
Americas
1,211
1,000
1,021
4,969
4,054
3,784
Equity-accounted joint ventures included above
(647)
(615)
(581)
Continuing operations
4,322
3,439
3,203
Discontinued operations - South Africa
408
554
602
4,730
3,993
3,805
Foreign countries included in the above and considered material are:
Australia
989
851
780
Argentina
387
Brazil
853
679
Ghana
536
Tanzania
1,133
849
715
DRC
647
504
468
Geographical analysis of gold income by destination is as follows:
South Africa
943
981
946
North America
580
486
450
South America
1
Australia
989
851
780
Europe
358
329
387
United Kingdom
2,098
1,407
1,221
4,969
4,054
3,784
Equity-accounted joint ventures included above
(647)
(615)
(581)
Continuing operations
4,322
3,439
3,203
Discontinued operations - South Africa
408
554
602
Continuing and discontinued operations
4,730
3,993
3,805
By-product revenue
US dollar millions
2020
2019
2018
Africa
(1)
4
3
4
Australia
3
3
2
Americas
99
81
128
106
87
134
Equity-accounted joint ventures included above
(1)
(1)
(1)
Continuing operations
105
86
133
Discontinued operations - South Africa
1
1
6
106
87
139
The group's revenue is mainly derived from gold income. Approximately 38% of the group's total gold produced is sold to two
customers of the group: ANZ Investment Bank Ltd 18% and Standard Chartered Bank 20%. Due to the diversity and depth
of the total gold market, the bullion banks do not possess significant pricing power.
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GROUP – NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER
2
SEGMENTAL INFORMATION
CONTINUED
47
AngloGold Ashanti Limited <AFS>
Gross profit (loss)
(2)
US dollar millions
2020
2019
2018
Africa
(1)
1,201
605
380
Australia
286
221
160
Americas
(1)
532
265
310
Corporate and other
(2)
1
2
2,017
1,092
852
Equity-accounted joint ventures included above
(308)
(188)
(102)
Continuing operations
1,709
904
750
Discontinued operations - South Africa
83
79
22
1,792
983
772
Cost of sales
US dollar millions
2020
2019
2018
Africa
(1)
1,572
1,601
1,607
Australia
705
632
622
Americas
(1)
764
822
838
Corporate and other
(2)
(1)
(3)
3,039
3,054
3,064
Equity-accounted joint ventures included above
(340)
(428)
(480)
Continuing operations
2,699
2,626
2,584
Discontinued operations - South Africa
287
479
589
2,986
3,105
3,173
Amortisation
US dollar millions
2020
2019
2018
Africa
(1)
349
367
379
Australia
160
173
149
Americas
(1)
163
177
192
Corporate and other
2
3
3
674
720
723
Equity-accounted joint ventures included above
(104)
(137)
(165)
Continuing operations
570
583
558
Discontinued operations - South Africa
61
72
570
644
630
Total assets
(1)(3)(4)
US dollar millions
2020
2019
2018
South Africa
697
1,106
Africa
3,956
3,514
3,135
Australia
1,044
972
888
Americas
1,626
1,427
1,286
Corporate and other
1,046
253
228
7,672
6,863
6,643
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GROUP – NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER
2
SEGMENTAL INFORMATION  CONTINUED
48
AngloGold Ashanti Limited <AFS>
Non-current assets
(5)
US dollar millions
2020
2019
2018
Non-current assets considered material, by country are:
South Africa
59
25
1,005
Foreign entities
5,053
4,644
4,234
DRC
1,604
1,506
1,439
Ghana
915
758
550
Tanzania
425
379
369
Australia
849
817
718
Brazil
627
625
615
Capital expenditure
US dollar millions
2020
2019
2018
Africa
(1)
397
410
313
Australia
143
149
156
Americas
(1)
217
195
176
Continuing operations
757
754
645
Discontinued operations - South Africa
35
60
76
792
814
721
Equity-accounted joint ventures included above
(56)
(51)
(69)
736
763
652
(1)
Includes equity-accounted joint ventures.
(2)
The group's segmental profit measure is gross profit (loss), which excludes the results of associates and joint ventures. For the reconciliation of
gross profit (loss) to profit before taxation and discontinued operations, refer to the group income statement.
(3)
Total assets include allocated goodwill of $118m (2019: $108m; 2018: $108m) for Australia and $8m (2019: $8m; 2018: $8m) for Americas (note
17). In 2019, the South African segment included assets held for sale of $581m and the Africa Region segment included assets held for sale of
$20m.
(4)
In 2020, pre-tax impairment reversals and derecognition of assets of $17m were accounted for in South Africa (2019: $556m; 2018: $98m), Africa
Region of nil (2019: $2m; 2018: $5m) and the Americas of nil (2019: $1m; 2018:$1m).
(5)
Non-current assets exclude financial instruments and deferred tax assets.
3
REVENUE FROM PRODUCT SALES
US dollar millions
2020
2019
2018
Revenue consists of the following principal categories:
Gold income (note 2)
4,322
3,439
3,203
By-products (note 2)
105
86
133
Revenue from product sales
4,427
3,525
3,336
4
COST OF SALES
US dollar millions
2020
2019
2018
Cash operating costs
1,881
1,831
1,850
Royalties
181
137
133
Other cash costs
12
13
13
Total cash costs
2,074
1,981
1,996
Retrenchment costs
2
4
4
Rehabilitation and other non-cash costs
32
53
17
Amortisation of tangible assets (notes 32 and 36)
521
538
553
Amortisation of right of use assets (notes 16, 32 and 36)
47
42
Amortisation of intangible assets (notes 32 and 36)
2
3
5
Inventory change
21
5
9
2,699
2,626
2,584
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GROUP – NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER
49
AngloGold Ashanti Limited <AFS>
5
CORPORATE ADMINISTRATION, MARKETING AND OTHER EXPENSES
US dollar millions
2020
2019
2018
Corporate administration expenses
59
63
60
Share scheme and related costs
9
19
16
68
82
76
6
OTHER EXPENSES (INCOME)
US dollar millions
2020
2019
2018
Care and maintenance
47
39
Governmental fiscal claims, cost of old tailings operations and other expenses
20
21
14
Guinea public infrastructure contribution
8
Pension and medical defined benefit provisions
8
9
10
Royalty receivable impaired
4
Royalties received
(2)
(3)
(10)
Brazilian power utility legal settlement
(16)
Retrenchment and related costs
3
6
Legal fees and project costs
9
11
16
Refund from insurance claim
(5)
Other indirect taxes
23
3
4
57
83
79
7
FINANCE COSTS AND UNWINDING OF OBLIGATIONS
US dollar millions
2020
2019
2018
Finance costs
Finance costs on bonds, corporate notes, bank loans and other
124
135
128
Amortisation of fees
23
4
7
Lease finance charges
8
10
5
Less: interest capitalised
(17)
(6)
138
143
140
Unwinding of obligations
39
29
28
Total finance costs and unwinding of obligations (notes 32 and 36)
177
172
168
The interest included within finance costs is calculated at effective interest rates.
8
SHARE OF ASSOCIATES AND JOINT VENTURES' PROFIT
US dollar millions
2020
2019
2018
Revenue
677
616
582
Operating costs and other expenses
(353)
(452)
(472)
Profit on sale of joint ventures
(1)
19
Net interest received (paid)
5
10
(8)
Profit before taxation
348
174
102
Taxation
(70)
(35)
(9)
Profit after taxation
278
139
93
Impairment reversal of investments in associates
23
15
Impairment reversal of investments in joint ventures (note 19)
6
14
Share of associates and joint ventures’ profit (note 32)
278
168
122
(1)
The profit on sale of joint ventures includes the profit on sale of Sadiola of $14m, Morila of $4m and Chuscal of $1m.
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GROUP – NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER
50
AngloGold Ashanti Limited <AFS>
9
DISCONTINUED OPERATIONS AND ASSETS AND LIABILITIES HELD FOR SALE
South African asset sale
On 12 February 2020, AngloGold Ashanti announced that it has reached an agreement to sell its remaining South African
producing assets and related liabilities to Harmony Gold Mining Company Limited ("Harmony") – following receipt of all
regulatory approvals, the transaction closed on 30 September 2020, with Harmony taking effective control of these producing
assets and related liabilities on 1 October 2020. Consideration for the transaction was $200m in cash and deferred payments
subject to subsequent performance, and with additional proceeds if the West Wits assets are developed below current
infrastructure. The deferred compensation is payable as follows:
1.
$260 per ounce payable on all underground production sourced within the West Wits mineral rights (comprising the
Mponeng, Savuka and Tau Tona mines) in excess of 250,000 ounces per annum for 6 years commencing 1 January 2021;
and
2.
$20 per ounce payable on underground production sourced within the West Wits mineral rights (comprising the Mponeng,
Savuka and Tau Tona mines) below the datum of current infrastructure.
The transaction included the following assets and liabilities:
The Mponeng mine and its associated assets and liabilities;
The Tau Tona and Savuka mines and associated rock-dump and tailings storage facility reclamation sites, mine
rehabilitation and closure activities located in the West Wits region and their associated assets and liabilities;
First Uranium (Pty) Limited which owns Mine Waste Solutions (Pty) Limited and Chemwes (Pty) Limited as well as
associated tailings assets and liabilities;
Covalent Water Company (Pty) Limited, AngloGold Security Services (Pty) Limited and Masakhisane Investments (Pty)
Limited; and
Certain rock-dump reclamation, mine rehabilitation and closure activities located in the Vaal River region and their
associated assets and liabilities.
The transaction excluded the silicosis obligation of $61m at 31 December 2020 and the post-retirement medical obligation of
$77m at 31 December 2020 relating to South African employees, which were both retained by AngloGold Ashanti. The South
African producing assets and related liabilities sold to Harmony are treated as a discontinued operation. AngloGold Ashanti
incurred a loss of $81m after tax on disposal of the South African portfolio.
Discontinued operations
The results of the South Africa disposal group for the year ended 31 December are presented below:
US dollar millions
2020
2019
2018
Revenue from product sales
409
555
608
Cost of sales
(287)
(479)
(589)
(Loss) gain on non-hedge derivatives and other commodity contracts
(39)
3
3
Gross profit
83
79
22
Other expenses
(23)
(44)
(72)
Derecognition of assets and (loss) profit on disposal of assets
(80)
(3)
(118)
Impairment reversal (loss) recognised on remeasurement to fair value less
costs to sell
17
(549)
Loss before taxation
(3)
(517)
(168)
Normal and deferred taxation on operations
(23)
38
Deferred tax on impairment reversal (loss), derecognition and profit (loss) on
disposal of assets
(1)
164
47
Deferred taxation on unrealised movement on derivatives and other
commodity contracts
11
Total profit (loss) from discontinued operations
7
(376)
(83)
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GROUP – NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER
9
DISCONTINUED OPERATIONS AND ASSETS AND LIABILITIES HELD FOR SALE CONTINUED
51
AngloGold Ashanti Limited <AFS>
The major classes of assets and liabilities of the South African disposal group were as follows:
US dollar millions
30 September 2020
31 December 2019
Tangible assets and right of use assets
359
429
Other investments
76
84
Inventories
75
37
Trade, other receivables and other assets
5
4
Deferred taxation
40
15
Cash and cash restricted for use
12
Assets held for sale
555
581
Lease liabilities
2
3
Environmental rehabilitation and other provisions
198
211
Trade and other payables
55
58
Liabilities held for sale
255
272
Net assets held for sale
300
309
The discontinued operations' net cash flows are reflected in the Statement of Cash Flows.
Impairment of South African assets
At 30 June 2020, an impairment reversal of $17m and taxation on impairment reversal of nil was recognised, to increase the
carrying amount of the assets in the disposal group to their fair value less costs to sell.
The loss on the sale of the South African assets was calculated as follows:
US dollar millions
Held for sale assets derecognised
555
Held for sale liabilities derecognised
(255)
Net carrying value derecognised
300
Less:
Cash consideration
(200)
Costs to sell, exchange impact and sale of houses
8
Deferred compensation asset
(28)
Loss on disposal of assets before taxation
80
Deferred taxation on sale of assets
1
Loss on sale of assets after taxation
81
Sale interest in the Sadiola Mine
On 23 December 2019, AngloGold Ashanti announced that it together with its joint venture partner, IAMGOLD Corporation
("IAMGOLD"), had agreed to sell their interests in Société d’Exploitation des Mines d’Or de Sadiola S.A. ("SEMOS") to Allied
Gold Corp (Allied Gold). SEMOS' principal asset is the Sadiola Mine located in the Kayes region of Western Mali. The
investment in Sadiola of $20m as at 31 December 2019 was included in assets held for sale.
On 30 December 2020, AngloGold Ashanti together with its joint venture partner IAMGOLD, completed the sale of their entire
interests in SEMOS to Allied Gold (the “Transaction”).
Prior to the completion of the Transaction, a dividend of $20m was declared and paid by SEMOS pro rata to its shareholders.
AngloGold Ashanti received a cash dividend of $8.2m.
Upon completion, AngloGold Ashanti received $25m from Allied Gold Corp and the Republic of Mali. Subsequently,
AngloGold Ashanti received an agreed additional consideration of $1.8m.
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GROUP – NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER
9
DISCONTINUED OPERATIONS AND ASSETS AND LIABILITIES HELD FOR SALE
CONTINUED
52
AngloGold Ashanti Limited <AFS>
US dollar millions
As previously
reported
Adjustment
As restated
In terms of the Transaction, AngloGold Ashanti and IAMGOLD remain entitled to the following deferred consideration:
$25m ($12.5m each to AngloGold Ashanti and IAMGOLD) upon the production of the first 250,000 ounces from the
Sadiola Sulphides Project (“SSP”);
$25m ($12.5m each to AngloGold Ashanti and IAMGOLD) upon the production of a further 250,000 ounces from the SSP;
and
$2.5m ($1.25m each to AngloGold Ashanti and IAMGOLD) in the event a favourable settlement is achieved by SEMOS
in the litigation pending before the Malian courts.
The profit from the disposal of AngloGold Ashanti’s entire interest in SEMOS is $14m (including the dividend received). Prior
to the completion of the Transaction and the dividend declaration, AngloGold Ashanti’s net carrying value for SEMOS, on an
attributable basis, was $20m and was included in the Africa Region segment.
10
EMPLOYEE BENEFITS
US dollar millions
2020
2019
Restated
2018
Employee benefits including Executive Directors' and Prescribed Officers'
salaries and other benefits
(1)
644
697
797
- current medical expenses
23
29
39
- defined benefit post-retirement medical expenses
7
8
9
- defined contribution
25
29
37
Retrenchment costs
2
7
30
Share-based payment expense (note 11)
16
42
35
Included in cost of sales, other expenses (income) and corporate
administration, marketing and other expenses of continuing and
discontinued operations
717
812
947
(1)
The employee benefit details for 2019 were restated.
During 2020, the group identified that the 2019 employee benefits note had erroneously excluded part of the employee benefit
totals for one of its subsidiaries from the employee benefits note disclosures. As a consequence of the error, the note
disclosure detailing employee benefits for the year ended 31 December 2019 was understated. The employee benefits note
provides details of the types of employee costs allocated to various cost line items in the income statement. The costs
allocated to various categories of the income statement were correct, however, the summary note was incorrect. The error
has been corrected by restating the employee benefits note disclosures for 2019.
The "Employee benefits including Executive Directors' and Prescribed Officers' salaries and other benefits" in the table above,
and the totals, were restated as follows:
Employee benefits including Executive Directors' and Prescribed Officers'
salaries and other benefits
680
17
697
Included in cost of sales, other expenses (income) and corporate administration,
marketing and other expenses of continuing and discontinued operations
795
17
812
The restatement has no impact on reported totals, headline earnings per share or on amounts presented in the Statement of
financial position.
11
SHARE-BASED PAYMENTS
US dollar millions
2020
2019
2018
Equity-settled share incentive schemes
Bonus Share Plan (BSP)
1
6
20
Deferred Share Plan (DSP)
14
13
Other
1
2
2
16
21
22
Cash-settled share incentive scheme
Cash-settled Long Term Incentive Plan (CSLTIP)
21
13
Total share-based payment expense (note 10)
16
42
35
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GROUP – NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER
11
SHARE-BASED PAYMENTS CONTINUED
53
AngloGold Ashanti Limited <AFS>
Equity-settled incentive schemes
Equity schemes include the Bonus Share Plan (BSP); Deferred Share Plan (DSP); Long term incentive Plan (LTIP) and Co-
investment Plan (CIP). The DSP replaced all previous AngloGold Ashanti incentive schemes. The last allocations granted
in the BSP, LTIP and CIP schemes vested during 2020, there are no further allocations and vesting as the schemes have
been closed.
Bonus Share Plan (BSP)
Calculated fair value
R119.14
Vesting date 50%
22 Feb 2019
Vesting date 50%
22 Feb 2020
Expiry date
22 Feb 2028
Number of shares
2020
2019
2018
Awards outstanding at beginning of year
2,141,415
4,557,919
4,479,679
Awards granted during the year
2,492,584
Awards lapsed during the year
(109,065)
(359,343)
Awards exercised during the year
(1,135,438)
(2,307,439)
(2,055,001)
Awards outstanding at end of year
1,005,977
2,141,415
4,557,919
Awards exercisable at end of year
1,005,977
1,207,936
1,588,512
Cash awards granted under the bonus share plan, none were outstanding at year end 31 December 2020 (2019: 12,295;
2018:33,046) and an amount of 12,295 cash awards vested and are deemed settled for the year ended 31 December 2020
(2019: 20,751, 2018: 15,209).
Deferred Share Plan (DSP)
The Deferred Share Plan (DSP) was implemented with effect from 1 January 2018, with the first awards for the scheme
allocated in March 2019. This represents a single scheme under which share awards will be allocated to certain employees
from 2019 onwards, vesting equally over a period of 2,3 and 5 years depending on the level of seniority of the participant.
Award date (unvested awards and awards vested during the year)
2020
2019
Calculated fair value
R325.97
R204.42
DSP 2 year
Vesting date 50%
Vesting date 50%
25 Feb 2021
25 Feb 2022
21 Feb 2020
21 Feb 2021
DSP 3 year
Vesting date 33%
Vesting date 33%
Vesting date 34%
25 Feb 2021
25 Feb 2022
25 Feb 2023
21 Feb 2020
21 Feb 2021
21 Feb 2022
DSP 5 year
Vesting date 20%
Vesting date 20%
Vesting date 20%
Vesting date 20%
Vesting date 20%
25 Feb 2021
25 Feb 2022
25 Feb 2023
25 Feb 2024
25 Feb 2025
21 Feb 2020
21 Feb 2021
21 Feb 2022
21 Feb 2023
21 Feb 2024
Expiry date
25 Feb 2030
21 Feb 2029
Number of shares
2020
2019
Awards outstanding at beginning of year
1,599,360
Awards granted during the year
1,176,532
1,669,191
Awards lapsed during the year
(155,575)
(55,208)
Awards exercised during the year
(330,555)
(14,623)
Awards outstanding at end of year
2,289,762
1,599,360
Awards exercisable at end of year
183,439
Award date (unvested awards and awards vested during the year)
2018
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GROUP – NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER
11
SHARE-BASED PAYMENTS CONTINUED
54
AngloGold Ashanti Limited <AFS>
Long Term Incentive Plan (LTIP)
Calculated fair value
R129.94
Vesting date
3 Mar 2018
Expiry date
3 Mar 2025
Number of shares
2020
2019
2018
Awards outstanding at beginning of year
229,639
447,842
2,466,357
Awards lapsed during the year
(1,186,330)
Awards exercised during the year
(118,077)
(218,203)
(832,185)
Awards outstanding at end of year
111,562
229,639
447,842
Awards exercisable at end of year
111,562
229,639
447,842
Co-Investment Plan (CIP)
Number of shares
2020
2019
2018
Awards outstanding at beginning of year
23,927
112,578
95,378
Awards granted during the year
80,809
Awards lapsed during the year
(16,500)
(11,633)
Awards matched during the year
(23,927)
(72,151)
(51,976)
Awards outstanding at end of year
23,927
112,578
Cash-Settled Long Term Incentive Plan (CSLTIP)
There were no changes to rules or practices within the CSLTIP scheme, and no awards during 2018, 2019 and 2020.
Award date (unvested awards and awards vested during the year)
2017
2016
Vesting date
1 March 2020
1 March 2019
Number of units
2020
2019
2018
Share units outstanding at beginning of year
1,480,562
3,815,761
4,469,618
Share units granted during the year
Share units lapsed during the year
(82,063)
(1,305,761)
(611,265)
Share units exercised during the year
(1,398,499)
(1,029,438)
(42,592)
Share units outstanding at end of year
1,480,562
3,815,761
12
TAXATION
US dollar millions
2020
2019
2018
South African taxation
Normal taxation
1
Prior year over provision
(2)
Deferred taxation
Other temporary differences
(1)
74
(18)
(27)
Change in estimated deferred tax rate
(14)
7
75
(32)
(22)
Foreign taxation
Normal taxation
553
299
243
Prior year under (over) provision
8
(1)
1
Deferred taxation
Temporary differences
9
(28)
(6)
Prior year (over) under provision
(6)
1
4
Change in estimate
(14)
9
(7)
Change in statutory tax rate
2
(1)
550
282
234
625
250
212
(1)
Included in other temporary differences in South African taxation are deferred tax assets of $78m, which were derecognised during the fourth
quarter of 2020; $9m thereof as part of the disposal of the South African assets and the remaining $69m on consideration of future recoverability.
Award date (unvested awards and awards vested during the year)
2015
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GROUP – NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER
12
TAXATION CONTINUED
55
AngloGold Ashanti Limited <AFS>
US dollar millions
2020
2019
2018
Reconciliation to South African statutory rate
Implied tax charge at 28%
445
173
125
Increase (decrease) due to:
Expenses not tax deductible
(1)
29
28
28
Share of associates and joint ventures' profit
(78)
(47)
(34)
Tax rate differentials
(2)
and withholding taxes
96
39
25
Exchange variations, translation and accounting adjustments
28
11
24
Current year tax losses not recognised (recognised) in deferred tax assets:
Obuasi mine
(6)
14
13
AngloGold Ashanti Holdings plc
31
29
36
North America
4
6
6
Siguiri
(8)
Other
3
(2)
(1)
Change in planned utilisation of deferred tax assets and impact of estimated
deferred tax rate change
(14)
(5)
Tax effect of retained SA items
16
3
(10)
Tax allowances
(1)
(1)
(2)
Derecognition of deferred tax assets
78
Impact of statutory tax rate change
2
(1)
Adjustment in respect of prior years
2
3
Income tax expense
625
250
212
(1)
Includes corporate, exploration and non-tax deductible rehabilitation costs and British Virgin Isle group losses.
(2)
Due to different tax rates in various jurisdictions, primarily Tanzania, Ghana and Guinea.
US dollar millions
2020
2019
2018
Analysis of unrecognised deferred tax assets
Tax losses available to be utilised against future profits
-
utilisation required within one year
62
48
-
utilisation required between one and two years
54
85
187
-
utilisation required between two and five years
352
356
300
-
utilisation required between five and twenty years
1,002
973
1,229
-
utilisation in excess of twenty years
421
73
26
1,891
1,487
1,790
At the statutory tax rates the unrecognised value of deferred tax assets are: $487m (2019: $389m; 2018: $501m), mainly
relating to tax losses incurred in the United Kingdom, North America, Ghana, Colombia and SA Corporate.
Income tax uncertainties
AngloGold Ashanti operates in numerous countries around the world and accordingly is subject to, and pays annual income
taxes under, the various income tax regimes in the countries in which it operates. Some of these tax regimes are defined by
contractual agreements with local government, and others are defined by the general corporate income tax laws of the country.
The group has historically filed, and continues to file, all required income tax returns and to pay the taxes reasonably
determined to be due. In some jurisdictions, tax authorities are yet to complete their assessments for previous years. The tax
rules and regulations in many countries are highly complex and subject to interpretation. From time to time, the group is
subject to a review of its historic income tax filings and in connection with such reviews, disputes can arise with the tax
authorities over the interpretation or application of certain rules in respect of the group’s business conducted within the country
involved. Significant judgement is required in determining the worldwide provisions for income taxes due to the complexity of
legislation. There are many transactions and calculations for which the ultimate tax determination is uncertain during the
ordinary course of business.
Irrespective of whether potential economic outflows of matters have been assessed as probable or possible, individually
significant matters are included below, to the extent that disclosure does not prejudice the group.
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GROUP – NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER
12
TAXATION CONTINUED
56
AngloGold Ashanti Limited
<AFS>
Argentina - Cerro Vanguardia SA
The Argentina Tax Authority has challenged the deduction of certain hedge losses, with tax and penalties amounting to $8m
(2019: $10m; 2018: $14m). Management has appealed this matter which has been heard by the Tax Court, with final evidence
submitted in 2017. The matter is pending and judgement is expected in the next 24 months. Management is of the opinion
that the hedge losses were claimed correctly and no provision has therefore been made.
Brazil - AGA Mineração and Serra Grande
The Brazil Tax Authority has challenged various aspects of the Companies’ tax returns for periods from 2003 to 2016 which
individually and in aggregate are not considered to be material. Based on the engagement with the Tax Authority, certain
amounts have been allowed and assessments reduced, whilst objections have been lodged against the remainder of the
findings. In December 2019, Serra Grande received a tax assessment of $20m (2019: $25m) relating to the amortisation of
goodwill on the acquisition of mining interests, which is permitted as a tax deduction when the acquirer is a domiciled entity.
Management is of the opinion that the Tax Authority is unlikely to succeed in this matter. This is supported by external legal
advice and therefore no provision has been made.
Colombia - La Colosa and Gramalote
The tax treatment of exploration expenditure has been investigated by the Colombian Tax Authority which resulted in claims
for taxes and penalties of $86m
(1)
(2019: $88m; 2018: $144m) pertaining to the 2010 to 2014 tax years.
These assessments were appealed in 2016 (in the case of La Colosa) and resulted in an adverse judgement on
22 October 2018, in the Administrative Court of Cundinamarca. An appeal was lodged and all arguments submitted to the
Council of State on 21 August 2018, with an expected judgement in the next 12 to 18 months as at 31 December 2020. The
deduction of exploration costs is prohibited from 2017 onwards following a change in legislation. Subsequent to this date,
exploration costs have been treated in accordance with the amended legislation. In July 2019, the Supreme Administrative
Court issued a ruling that duplicate penalties may not be charged. The impact of the ruling is that certain penalties will be
waived, which reduces the overall exposure by $76m (2019: $76m). The matter is pending and may take two to four years to
be resolved. Management is of the opinion that the Colombian Tax Authority is unlikely to succeed in this matter and therefore
no provision is made.
(1)
Includes reduction of overall exposure by $76m (2019: $76m) as described above.
Ghana - Iduapriem
The Ghana Revenue Authority completed a tax audit for the 2018 year of assessment claiming a tax liability of $15m. The
claim relates to corporate income taxes, where certain business expenses have been disallowed as a deduction for tax
purposes. Management filed an objection to the assessment in September 2020 and is of the opinion that the Ghana Revenue
Authority is unlikely to succeed in this matter and therefore no provision has been made.
Guinea - Siguiri
The Guinea Tax Authority has challenged various aspects of the Companies’ tax returns for periods of 2010, and 2014 to
2016 totalling $8m (attributable) (2019: $12m (attributable); 2018: $8m (attributable)). An amount of $4m relating to the years
2014 to 2016 was paid in settlement of $10m of tax claims during the second half of 2020.
Tanzania - Geita Gold Mine
The Tanzania Revenue Authority has raised audit findings on various tax matters for years from 2009 to 2019 amounting to
$254m (2019: $164m; 2018: $163m) including additional tax assessments of $94m received in 2020. In addition, the Tanzania
Revenue Authority has issued Agency Notices on various local bank accounts of the Company in Tanzania, enforcing
payments from those bank accounts, despite the matters being on appeal. In order to continue operating its bank accounts
and to not impact operations, Geita paid various amounts under protest. Management has objected and appealed through
various levels of the legislative processes. Management is of the opinion that the claims of the Tanzania Revenue Authority
are unlikely to succeed.
In addition, it should be noted that amendments passed to Tanzanian legislation in 2017 amended the 2010 Mining Act and
new Finance Act. Effective from 1 July 2017, the gold mining royalty rate increased to 6% (from 4%) and further a 1% clearing
fee on the value of all minerals exported was imposed. The group has been paying the higher royalty and clearing fees since
this date, under protest, and is of the view that this is in contravention of its Mining Development Agreement.
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GROUP – NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER
12
TAXATION CONTINUED
57
AngloGold Ashanti Limited <AFS>
Tax impacts of COVID-19
As a result of the COVID-19 pandemic, governments have responded with various stimulus packages, to provide relief to
companies and individuals, to ensure business and employment continuity. This has been achieved through various tax and
employment concessions, over varying periods, mostly commencing in April 2020. In North America, the US Government
passed the Coronavirus Aid, Relief and Economic Security (CARES) Act on 27 March 2020. The bill provides various tax
relief and incentives such as accelerated access to tax attributes created under the Tax Cuts and Jobs Act of 2017 (TCJA).
Other tax jurisdictions have provided tax relief in various forms to companies which will impact on tax planning and tax
payments in the light of the uncertainty created by the pandemic. Management continues to evaluate these tax measures and
applies them when appropriate.
13
EARNINGS (LOSS) PER ORDINARY SHARE
US cents per share
2020
2019
2018
Basic earnings (loss) per ordinary share
227
(3)
32
Continuing operations
225
87
52
The calculation of basic earnings (loss) per ordinary share is based on profits
(losses) attributable to equity shareholders of $946m (2019: $364m;
2018: $216m) and 419,033,516 (2019: 418,349,777; 2018: 417,122,155)
shares being the weighted average number of ordinary shares in issue during
the financial year.
Discontinued operations
2
(90)
(20)
The calculation of basic earnings (loss) per ordinary share is based on profits
(losses) attributable to equity shareholders of $7m (2019: ($376m);
2018: ($83m)) and 419,033,516 (2019: 418,349,777; 2018: 417,122,155)
shares being the weighted average number of ordinary shares in issue during
the financial year.
Diluted earnings (loss) per ordinary share
227
(3)
32
Continuing operations
225
87
52
The calculation of diluted earnings (loss) per ordinary share is based on profits
(losses) attributable to equity shareholders of $946m (2019: $364m;
2018: $216m) and 419,481,450 (2019: 418,349,777; 2018: 417,379,405)
shares being the diluted number of ordinary shares.
Discontinued operations
2
(90)
(20)
The calculation of diluted earnings (loss) per ordinary share is based on profits
(losses) attributable to equity shareholders of $7m (2019: ($376m); 2018:
($83m)) and 419,481,450 (2019: 418,349,777; 2018: 417,379,405) shares
being the weighted average number of ordinary shares in issue during the
financial year.
In calculating the basic and diluted number of ordinary shares outstanding for the year, the following were taken into
consideration:
Number of shares
2020
2019
2018
Ordinary shares
416,399,307
414,407,622
411,412,947
Fully vested options and currently exercisable
(1)
2,634,209
3,942,155
5,709,208
Weighted average number of shares
419,033,516
418,349,777
417,122,155
Dilutive potential of share options
(2)
447,934
257,250
Fully diluted number of ordinary shares
419,481,450
418,349,777
417,379,405
(1)
Employee compensation awards are included in basic earnings per share from the date that all necessary conditions have been satisfied and it is
virtually certain that shares will be issued as a result of employees exercising their options.
(2)
The number of share options that could potentially dilute basic earnings in the future were not included as the effect was anti-dilutive were nil
(2019: 517,186; 2018: nil).
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GROUP – NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER
58
AngloGold Ashanti Limited <AFS>
13
EARNINGS (LOSS) PER ORDINARY SHARE CONTINUED
US dollar millions
2020
2019
2018
Headline earnings
The profit (loss) attributable to equity shareholders was adjusted by the
following to arrive at headline earnings (loss):
Profit (loss) attributable to equity shareholders from continuing and
discontinued operations
953
(12)
133
Net impairment (impairment reversal) on held for sale assets
(17)
549
(2)
Taxation on net impairment (impairment reversal) on held for sale assets
(165)
Derecognition of assets
10
104
Taxation on derecognition of assets
(26)
Loss on disposal of discontinued operations
80
24
Taxation on loss on disposal of discontinued operations
1
(20)
Profit on sale of joint ventures
(1)
(19)
Net loss (profit) on disposal of assets
2
(3)
8
Taxation on net (profit) loss on disposal of assets
(1)
1,000
379
220
(1)
Tax effect has not been disclosed as the tax is less than $1m
Cents
Basic headline earnings per share
The calculation of basic headline earnings per ordinary share is based on basic
headline earnings of $1,000m (2019: $379m; 2018: $220m) and 419,033,516
(2019: 418,349,777; 2018: 417,122,155) shares being the weighted average
number of ordinary shares in issue during the year.
238
91
53
Diluted headline earnings per share
The calculation of diluted headline earnings per ordinary share is based on
diluted headline earnings of $1,000m (2019: $379m; 2018: $220m) and
419,481,450 (2019: 418,349,777; 2018: 417,379,405) shares being the
weighted average number of ordinary shares in issue during the year.
238
91
53
14
DIVIDENDS
US cents per share
2020
2019
2018
Ordinary shares
Dividend number 119 of 70 SA cents per share was declared on
20 February 2018 and paid on 6 April 2018 (6 US cents per share).
Dividend number 120 of 95 SA cents per share was declared on
19 February 2019 and paid on 8 April 2019 (7 US cents per share)
Dividend number 121 of 165 SA cents per share was declared on
21 February 2020 and paid on 27 March 2020 (9 US cents per share)

38

24
27
38
27
24
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GROUP – NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER
59
AngloGold Ashanti Limited <AFS>
15
TANGIBLE ASSETS
US dollar millions
Mine
Mineral
rights
Exploration
and
Assets
development
Mine infra-
and
evaluation
under
Land and
costs
structure
(2)
dumps
assets
construction
buildings
(3)(4)
Total
Cost
Balance at 1 January 2018
5,562
4,382
892
5
490
83
11,414
Additions
- project capital
2
175
177
- stay-in-business capital
294
20
3
149
1
467
Disposals
(5)
(30)
(1)
(3)
(39)
Transfers and other movements
(1)
60
(41)
(270)
1
(250)
Translation
(239)
(119)
(7)
(32)
(5)
(402)
Balance at 31 December 2018
5,674
4,212
888
4
512
77
11,367
Accumulated amortisation and
impairments
Balance at 1 January 2018
3,979
2,796
853
3
26
15
7,672
Amortisation for the year
397
233
2
1
1
634
Impairment and derecognition of
assets
(6)
104
104
Disposals
(5)
(27)
(1)
(2)
(35)
Transfers and other movements
(1)
(52)
(153)
(205)
Translation
(135)
(42)
(6)
1
(2)
(184)
Balance at 31 December 2018
4,184
2,911
849
3
27
12
7,986
Net book value at
31 December 2018
1,490
1,301
39
1
485
65
3,381
Cost
Balance at 1 January 2019
5,674
4,212
888
4
512
77
11,367
Additions
- project capital
43
1
281
14
339
- stay-in-business capital
208
25
1
2
188
424
Finance costs capitalised
(5)
6
6
Disposals
(1)
(16)
(17)
Transfers and other movements
(1)
(259)
219
1
(489)
(16)
(544)
Transfer to assets and liabilities held
for sale
(660)
(663)
(9)
(90)
(9)
(1,431)
Translation
(4)
(1)
(3)
(8)
Balance at 31 December 2019
5,001
3,776
881
7
405
66
10,136
Accumulated amortisation and
impairments
Balance at 1 January 2019
4,184
2,911
849
3
27
12
7,986
Amortisation for the year
392
215
1
1
609
Impairment and derecognition of
assets
(6)
243
172
90
505
Disposals
(1)
(15)
(16)
Transfers and other movements
(1)
(455)
(53)
1
(3)
(12)
(522)
Transfer to assets and liabilities held
for sale
(488)
(422)
(5)
(88)
(1,003)
Translation
(9)
(5)
(1)
(15)
Balance at 31 December 2019
3,866
2,803
846
4
25
7,544
Net book value at
31 December 2019
1,135
973
35
3
380
66
2,592
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GROUP – NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER
15
TANGIBLE ASSETS CONTINUED
60
AngloGold Ashanti Limited <AFS>
US dollar millions
Mine
development
costs
Mine infra-
structure
(2)
Mineral
rights
and
dumps
Exploration
and
evaluation
assets
Assets
under
construction
Land and
buildings
(3)(4)

Total
Cost
Balance at 1 January 2020
5,001
3,776
881
7
405
66
10,136
Additions
- project capital
64
1
246
20
331
- stay-in-business capital
180
8
1
179
2
370
Finance costs capitalised
(5)
17
17
Disposals
(1)
(26)
(27)
Transfers and other movements
(1)
(1,076)
186
(699)
2
(320)
24
(1,883)
Translation
157
9
5
(1)
6
176
Balance at 31 December 2020
4,325
3,953
188
9
533
112
9,120
Accumulated amortisation and
impairments
Balance at 1 January 2020
3,866
2,803
846
4
25
7,544
Amortisation for the year
345
179
5
1
530
Disposals
(1)
(25)
(26)
Transfers and other movements
(1)
(1,208)
(33)
(699)
(1,940)
Translation
117
6
4
1
128
Balance at 31 December 2020
3,119
2,930
156
5
26
6,236
Net book value at
31 December 2020
1,206
1,023
32
4
507
112
2,884
(1)
Transfers and other movements include amounts from deferred stripping, changes in estimates of decommissioning assets, asset reclassifications,
derecognition of assets and initial recognition of joint operation share of property, plant and equipment.
(2)
Included in the amounts for mine infrastructure are assets held under finance leases with a net book value of nil (2019: nil; 2018: $45m).
(3)
Included in the amounts for land and buildings are assets held under finance leases with a net book value of nil (2019: nil; 2018: $3m).
(4)
Assets of $7m (2019: $9m; 2018: $10m) have been pledged as security.
(5)
The weighted average capitalisation rate used to determine the amount of borrowing costs eligible for capitalisation was 4.52% (2019: 5.6%;
2018: nil)
(6)
Impairment and derecognition of assets is assessed as follows:
Impairment calculation assumptions as at 31 December 2020 - goodwill, tangible and intangible assets
Management assumptions for the value in use of tangible assets and goodwill include:
the gold price assumption represents management’s best estimate of the future price of gold. A long-term real gold price
of $1,450/oz (2019: $1,300/oz; 2018: $1,239oz) is based on a range of economic and market conditions that will exist
over the remaining useful life of the assets.
Annual life of mine plans take into account the following:
proved and probable Ore Reserve;
value beyond proved and probable Ore Reserve (including exploration potential) determined using the gold price
assumption referred to above;
In determining the impairment for each cash generating unit, the real pre-tax rate was derived from the weighted average
cost of capital (WACC) using the Capital Asset Pricing Model (CAPM) to determine the required return on equity with risk
factors consistent with the basis used in 2019. At 31 December 2020, the derived group WACC was 9.1% (real post-tax)
which is 100 basis points higher than in 2019 of 8.1%, and is based on the industry average capital structure of the major
gold companies considered to be appropriate peers. In determining the WACC for each cash generating unit, sovereign
and mining risk factors are considered to determine country specific risks. In certain instances, a specific risk premium
was added to large projects being undertaken or the turnaround nature of a specific mine to address uncertainties in the
forecast of the cash flows;
foreign currency cash flows translated at estimated forward exchange rates and then discounted using appropriate
discount rates for that currency;
cash flows used in impairment calculations are based on life of mine plans which range from 6 years to 26 years; and
variable operating cash flows are increased at local Consumer Price Index rates.
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GROUP – NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER
15
TANGIBLE ASSETS CONTINUED
61
AngloGold Ashanti Limited <AFS>
US dollar millions
Carrying value
Value in use
Impairments and derecognitions of tangible assets
For the year ended 31 December, impairments and derecognitions of tangible assets were recognised for the following cash
generating units (CGU's):
US dollar millions
2019
(1)
2018
First Uranium - Mine Waste Solutions
89
93
Surface Operations
18
1
Mponeng
384
4
Covalent
11
Obuasi
5
Siguiri
2
AGA Mineração
1
Other
1
505
104
No impairments were recognised in 2020.
(1)
Includes impairment of the South African asset disposal group, measured at fair value less costs to sell and disclosed in Discontinued operations.
Refer to note 9.
Impairment of cash generating units
The group reviews and tests the carrying value of its mining assets when events or changes in circumstances suggest that
the carrying amount may not be recoverable.
Cash generating units with marginal headroom
Based on an analysis carried out by the group in 2020, the carrying value and value in use of the most sensitive CGU are:
Kibali
(1)(2)
1,482
1,614
(1)
It is estimated that a decrease of the long-term real gold price of $1,450/oz by 4.4%, would cause the receivable amount of Kibali to equal its carrying
amount using a real post-tax weighted average cost of capital (WACC) discounted rate of 12.5% (2019: 9.7%). The sensitivity analysis has been
provided on the basis that the key assumption changes without a change in the other assumptions. However, for a change in each of the assumptions
used, it is impracticable to disclose the consequential effect of changes on the other variables used to measure the recoverable amount because
these assumptions and others used in impairment testing are inextricably linked.
(2)
Equity accounted investment, included in investments in associates and joint ventures in the Statement of financial position.
16
RIGHT OF USE ASSETS AND LEASE LIABILITIES
The group leases various assets including buildings, plant and equipment and vehicles. The group’s lease obligations are
secured by the lessors’ title to the leased assets for such leases.
RIGHT OF USE ASSETS
US dollar millions
Mine
infrastructure
Land and
buildings
Total
Cost
Impact of adopting IFRS 16 - 1 January 2019
119
9
128
Additions
- stay-in-business capital
32
32
Transfers and other movements
(1)
58
15
73
Transfer to assets and liabilities held for sale
(1)
(1)
Translation
1
1
Balance at 31 December 2019
209
24
233
Accumulated amortisation and impairments
Balance at 1 January 2019
Amortisation for the year
40
2
42
Transfers and other movements
(1)
21
12
33
Balance at 31 December 2019
61
14
75
Net book value at 31 December 2019
148
10
158
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GROUP – NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER
16
RIGHT OF USE ASSETS AND LEASE LIABILITIES CONTINUED
62
AngloGold Ashanti Limited <AFS>
RIGHT OF USE ASSETS CONTINUED
US dollar millions
Cost
Mine
infrastructure
Land and
buildings
Total
Balance at 1 January 2020
Additions
209
24
233
- stay-in-business capital
23
23
Derecognition and other movements
(13)
1
(12)
Translation
14
(1)
13
Balance at 31 December 2020
233
24
257
Accumulated amortisation and impairments
Balance at 1 January 2020
61
14
75
Amortisation for the year
45
2
47
Derecognition of assets
(11)
(11)
Translation
5
(1)
4
Balance at 31 December 2020
100
15
115
Net book value at 31 December 2020
133
9
142
(1)
Relates to contracts previously classified as leases under IAS 17 which the group has reassessed upon initial transition as leases under IFRS 16
as of 1 January 2019.
LEASE EXPENSES
US dollar millions
2020
2019
Amounts recognised in the income statement
Amortisation expense on right of use assets (note 4)
47
42
Interest expense on lease liabilities (note 7)
8
10
Expenses on short term leases
107
83
Expenses on variable lease payments not included in the lease liabilities
(1)
234
220
Expenses on leases of low value assets
(1)
24
2
(1)
Includes expenses at Obuasi that have been capitalised as part of the re-development project.
These expenses are allocated to cost of sales and corporate administration, marketing and other costs.
Total cash outflow for leases during the period amounted to $55m (2019: $51m), consisting of repayments of liabilities of
$47m (2019: $42m) and finance costs paid of $8m (2019: $9m).
LEASE LIABILITIES
US dollar millions
2020
2019
Reconciliation of lease liabilities
A reconciliation of the lease liabilities included in the statement of financial position is set out in
the following table:
Opening balance
171
Lease liabilities recognised
23
160
Repayment of lease liabilities
(47)
(42)
Finance costs paid on lease liabilities
(8)
(9)
Interest charged to the income statement
8
10
Reclassification of finance leases from borrowings
60
Change in estimate
(1)
(5)
Translation
7
(3)
Closing balance
153
171
Lease finance costs paid included in the statement of cash flows
8
9
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GROUP – NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER
16
RIGHT OF USE ASSETS AND LEASE LIABILITIES CONTINUED
63
AngloGold Ashanti Limited <AFS>
US dollar millions
2020
2019
Maturity analysis of lease liabilities
Undiscounted cash flows
Less than and including 1 year
43
52
Between 1 and 5 years
83
89
Five years and more
36
57
Total
162
198
US dollar millions
2020
2019
Lease liabilities
Non-current
116
126
Current
37
45
Total
153
171
The group does not face a significant liquidity risk with regard to its lease liabilities. Lease liabilities are monitored within the
group’s treasury function.
All lease contracts contain market review clauses in the event that the group exercises its option to renew.
Certain of the group’s contracts have a payment structure that is variable in nature and hence do not qualify for IFRS 16 lease
accounting. These contracts consist of mostly mining and drilling contracts. The variable nature of these contracts is to allow
equal sharing of pain and gain between the group and its contractors. The cash flows are not disclosed as their variability
does not permit reliable forecasts. Short-term, low value and variable contracts continue to be recognised within cost of sales
and corporate administration, marketing and other costs.
The weighted average incremental borrowing rate at the end of 31 December 2020 is 5.38% (2019: 4.72%).
17
INTANGIBLE ASSETS
US dollar millions
Goodwill
Other
Total
Cost
Balance at 1 January 2018
127
172
299
Additions
1
1
Disposals
(3)
(3)
Transfers and other movements
(1)
4
4
Translation
(11)
(7)
(18)
Balance at 31 December 2018
116
167
283
Accumulated amortisation and impairments
Balance at 1 January 2018
161
161
Amortisation for the year
5
5
Disposals
(3)
(3)
Transfers and other movements
(1)
4
4
Translation
(7)
(7)
Balance at 31 December 2018
160
160
Net book value at 31 December 2018
116
7
123
Cost
Balance at 1 January 2019
116
167
283
Transfer to assets and liabilities held for sale
(26)
(26)
Transfers and other movements
(1)
3
3
Balance at 31 December 2019
116
144
260
Accumulated amortisation and impairments
Balance at 1 January 2019
160
160
Amortisation for the year
3
3
Transfer to assets and liabilities held for sale
(26)
(26)
Balance at 31 December 2019
137
137
Net book value at 31 December 2019
116
7
123
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GROUP – NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER
64
AngloGold Ashanti Limited <AFS>
17
INTANGIBLE ASSETS CONTINUED
US dollar millions
Goodwill
Other
Total
Cost
Balance at 1 January 2020
116
144
260
Additions
1
1
Transfers and other movements
(1)
(49)
(49)
Translation
10
10
Balance at 31 December 2020
126
96
222
Accumulated amortisation and impairments
Balance at 1 January 2020
137
137
Amortisation for the year
2
2
Transfers and other movements
(1)
(49)
(49)
Translation
1
1
Balance at 31 December 2020
91
91
Net book value at 31 December 2020
126
5
131
(1)
Transfers and other movements include amounts from asset reclassifications and amounts written off.
Impairment calculation assumptions for goodwill
Based on an analysis carried out by the group in 2020, the carrying value and value in use of the most sensitive cash
generating unit (CGU) with goodwill is:
US dollar millions
2020
Sunrise Dam
Carrying Value
Value in use
229
538
As at 31 December 2020, the recoverable amount of Sunrise Dam exceeded its carrying amount by $309m. Sunrise Dam
had $118m goodwill at that date.
It is estimated that a decrease of the long-term real gold price of $1,450/oz by 8%, would cause the recoverable amount of
this CGU to equal its carrying amount. The sensitivity analysis has been provided on the basis that the key assumption
changes without a change in the other assumptions. However, for a change in each of the assumptions used, it is
impracticable to disclose the consequential effect of changes on the other variables used to measure the recoverable amount
because these assumptions and others used in impairment testing of goodwill are inextricably linked.
Therefore it is possible that outcomes within the next financial year that are different from the assumptions used in the
impairment testing process for goodwill could require a material adjustment to the carrying amounts in future periods.
Net book value of goodwill allocated to each of the CGUs:
US dollar millions
2020
2019
2018
- Sunrise Dam
118
108
108
- Serra Grande
8
8
8
126
116
116
Real pre-tax discount rates applied in impairment calculations on the CGU for
which the carrying amount of goodwill is significant is as follows:
- Sunrise Dam
(1)
8.7%
10.8%
8.3%
Goodwill has been allocated to its respective CGU's where it is tested for impairment as part of the CGU. The group reviews
and tests the carrying value of goodwill on an annual basis for impairment. The discount rates for 2020 were determined on
a basis consistent with the 2019 discount rates.
(1)
The value in use of the CGU is $538m in 2020 (2019: $363m; 2018: $750m).
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GROUP – NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER
65
AngloGold Ashanti Limited <AFS>
18
MATERIAL PARTLY-OWNED SUBSIDIARIES
Name
Non-controlling interest %
holding
2019
2018
Country of incorporation and
operation
7.5
7.5
Argentina
15.0
15.0
Republic of Guinea
Financial information of subsidiaries that have material non-controlling interests are provided below:
US dollar millions
2020
2019
2018
Profit (loss) allocated to material non-controlling interests
CVSA
8
5
9
Siguiri
10
8
Accumulated balances of material non-controlling interests
CVSA
14
13
14
Siguiri
31
23
32
Summarised financial information of subsidiaries is as follows. The information is based on amounts including
inter-company balances.
US dollar millions
CVSA
Siguiri
Statement of profit or loss for 2020
Revenue
440
453
Profit (loss) for the year
84
68
Total comprehensive income (loss) for the year, net of tax
84
68
Attributable to non-controlling interests
8
10
Dividends paid to non-controlling interests
(6)
(3)
Statement of profit or loss for 2019
Revenue
390
349
Profit (loss) for the year
68
1
Total comprehensive income (loss) for the year, net of tax
68
1
Attributable to non-controlling interests
5
Dividends paid to non-controlling interests
(7)
(9)
Statement of profit or loss for 2018
Revenue
498
365
Profit (loss) for the year
119
56
Total comprehensive income (loss) for the year, net of tax
119
56
Attributable to non-controlling interests
9
8
Dividends paid to non-controlling interests
(7)
(8)
Statement of financial position as at 31 December 2020
Non-current assets
202
233
Current assets
(1)
254
224
Non-current liabilities
(123)
(138)
Current liabilities
(150)
(117)
Total equity
183
202
Statement of financial position as at 31 December 2019
Non-current assets
177
245
Current assets
202
170
Non-current liabilities
(120)
(141)
Current liabilities
(82)
(121)
Total equity
177
153
Statement of financial position as at 31 December 2018
Non-current assets
176
257
Current assets
215
157
Non-current liabilities
(112)
(64)
Current liabilities
(78)
(137)
Total equity
201
213
2020
Cerro Vanguardia S.A. (CVSA)
7.5
Société AngloGold Ashanti de Guinée S.A. (Siguiri)
15.0
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GROUP – NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER
66
AngloGold Ashanti Limited <AFS>
Name
Effective %
Description
Country of incorporation and operation
18
MATERIAL PARTLY-OWNED SUBSIDIARIES CONTINUED
US dollar millions
CVSA
Siguiri
Statement of cash flows for the year ended 31 December 2020
Cash inflow (outflow) from operating activities
169
63
Cash inflow (outflow) from investing activities
(16)
(30)
Cash inflow (outflow) from financing activities
(59)
(11)
Net increase (decrease) in cash and cash equivalents
94
22
Statement of cash flows for the year ended 31 December 2019
Cash inflow (outflow) from operating activities
107
46
Cash inflow (outflow) from investing activities
(30)
(22)
Cash inflow (outflow) from financing activities
(47)
(30)
Net increase (decrease) in cash and cash equivalents
30
(6)
Statement of cash flows for the year ended 31 December 2018
Cash inflow (outflow) from operating activities
179
84
Cash inflow (outflow) from investing activities
(36)
(96)
Cash inflow (outflow) from financing activities
(140)
(6)
Net increase (decrease) in cash and cash equivalents
3
(18)
(1)
CVSA had a cash balance of $137m equivalent as at 31 December 2020, of which $50m is currently eligible to be declared as dividends. Application
has been made to the Central Argentine Bank to approve $11m of this eligible amount to be paid offshore to AngloGold Ashanti. Approval is pending.
The cash is fully available for CVSA’s operational requirements.
19
INVESTMENTS IN ASSOCIATES AND JOINT VENTURES
US dollar millions
2020
2019
2018
Carrying value
Investments in associates
47
40
36
Investments in joint ventures
1,604
1,541
1,492
1,651
1,581
1,528
Detailed disclosures are provided for the years in which investments in associates and joint ventures are considered
to be material.
Summarised financial information of immaterial associates is as follows:
US dollar millions
2020
2019
2018
Aggregate statement of profit or loss for associates (attributable)
Revenue
29
20
19
Operating (expenses) income
(1)
(6)
3
(4)
Taxation
(1)
Profit (loss) for the year
23
23
14
Total comprehensive profit (loss) for the year, net of tax
23
23
14
(1)
Includes share of associate profit
Investments in material joint ventures comprise:
2020
2019
2018
Kibali Goldmines S.A.
(1)
45.0
45.0
45.0
Exploration and mine
development
The Democratic Republic of the Congo
(1)
AngloGold Ashanti Limited has a 50% interest in Kibali (Jersey) Limited (Kibali) which holds our effective 45% interest in Kibali Goldmines S.A.
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GROUP – NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER
19
INVESTMENTS IN ASSOCIATES AND JOINT VENTURES CONTINUED
67
AngloGold Ashanti Limited <AFS>
US dollar millions
2020
2019
2018
Carrying value of joint ventures
Kibali
1,604
1,506
1,439
Immaterial joint ventures
(1)
35
53
1,604
1,541
1,492
Reversal (impairment) of investments in joint ventures

1
Sadiola (note 8)
(2)
6
14
The cumulative unrecognised share of losses of the joint ventures:
Morila
(3)
8
8
Yatela
2
3
(1)
Following an amendment to the Gramalote joint venture shareholders agreement, the joint arrangement classification was reassessed. The updated
facts and circumstances indicate that the joint venture changed to a joint operation during the year. As a re