AU 20-F Report ended Dec. 31, 2019

---

---

---

•	an indication of profitability, efficiency and cash flows;

•	the trend in costs as the mining operations mature over time on a consistent basis; and

•	an internal benchmark of performance to allow for comparison against other mines, both within the AngloGold Ashanti group and at other gold mining companies.

---

---

---

---

---

---

---

---

---

3A.	SELECTED FINANCIAL DATA

---

(1)

The selected financial information presented for the years ended 31 December 2016 and 2015 has not been reclassified for the changes in disclosure of "Special items" or restated to reflect the disposal of the South African assets and liabilities as a discontinued operation, as such financial information cannot be provided on a reclassified or restated basis without unreasonable effort and expense. The discontinued operation reported in 2015 related to the sale of Cripple Creek &Victor gold mine to Newmont Corp.

---

---

(1)	Since 2017, the dividend policy allows the company's Board of Directors, at its discretion, to declare an annual dividend to be based on 10 percent of the free cash flow generated by the business, before growth capital expenditure, for that financial year.

(2)	Dividends for these periods were declared in South African cents. US dollar cents per share figures have been calculated based on exchange rates prevailing on each of the respective payment dates.

---

3B.	CAPITALISATION AND INDEBTEDNESS

3C.	REASONS FOR THE OFFER AND USE OF PROCEEDS

•	speculative positions taken by investors or traders in gold;

•	monetary policies announced or implemented by central banks, including the U.S. Federal Reserve;

•	changes in the demand for gold as an investment;

•	changes in the demand for gold used in jewellery and for other industrial uses, including as a result of prevailing economic conditions;

•	changes in the supply of gold from production, divestment, scrap and hedging;

•	financial market expectations regarding the rate of inflation;

•	the strength of the U.S. dollar (the currency in which gold trades internationally) relative to other currencies;

•	changes in interest rates;

•	actual or anticipated sales or purchases of gold by central banks and the International Monetary Fund (IMF);

•	gold hedging and de-hedging by gold producers;

•	global or regional political or economic events; and

•	the cost of gold production in major gold producing countries.

---

---

---

•	the insolvency of key suppliers or contractors, which could result in contractual breaches and a supply chain breakdown;

•	the insolvency of one or more joint venture partners, which could result in contractual breaches and disruptions at the operations of the company’s joint ventures;

•	changes in other income and expense, which could vary materially from expectations, depending on gains or losses realised on the sale or exchange of financial instruments and impairment charges that may be incurred with respect to investments;

•	a reduction in the availability of credit, which may make it more difficult for the company to obtain financing for its operations and capital expenditures or make that financing more costly;

•	exposure to the liquidity and insolvency risks of the company’s lenders and customers; and

•	impairment of operations.

---

•	timing and cost of construction of mining and processing facilities, which can be considerable;

•	availability and cost of mining and processing equipment;

•	availability and cost of skilled labour, power, water and transportation;

•	availability and cost of appropriate smelting and refining arrangements;

•	applicable requirements under national and municipal laws and time needed to obtain the necessary environmental and other governmental permits and approvals; and

•	availability of funds to finance construction, development and environmental rehabilitation activities.

•	future prices of metals and other commodities;

•	future foreign currency exchange rates;

•	the required return on investment as based on the cost and availability of capital; and

•	applicable regulatory requirements, including those relating to environmental or health and safety matters.

---

•	tonnages, grades and metallurgical characteristics of the ore to be mined and processed;

•	recovery rates of gold and other metals from the ore; and

•	capital expenditure and cash operating costs.

•	accidents or incidents, including due to human error, during exploration, production, drilling, blasting or transportation resulting in injury, loss of life or damage to equipment or infrastructure;

•	air, land and water pollution;

•	social or community disputes or interventions;

•	security incidents, including the activities of artisanal or illegal miners;

•	surface or underground fires or explosions;

•	labour force disputes and disruptions;

•	loss of information integrity or data;

•	shortages in material and equipment;

•	mechanical failure or breakdowns and ageing infrastructure;

•	failure of unproven or evolving technologies;

•	energy and electrical power supply interruptions or rationing;

•	unusual or unexpected geological formations, ground conditions, including lack of mineable face length and ore-pass blockages;

•	water ingress and flooding of mine shafts;

•	process water shortages;

•	metallurgical conditions and gold recovery;

•	unexpected decline of ore grade;

•	unanticipated increases in gold lock-up and inventory levels at heap-leach operations;

•	fall-of-ground accidents in underground operations;

•	cave-ins, sinkholes, subsidence, rock falls, rock bursts or landslides;

•	failure of mining pit slopes, heap-leach facilities, water or solution dams, waste stockpiles and tailings dam walls;

---

•	safety-related stoppages;

•	gold bullion or concentrate theft;

•	corruption and fraud;

•	allegations of human rights abuses;

•	seismic activity; and

•	other natural phenomena, such as floods, droughts or weather conditions, potentially exacerbated by climate change.

---

---

---

---

---

---

---

---

---

---

---

---

---

---

---

---

---

---

---

---

4A.	HISTORY AND DEVELOPMENT OF THE COMPANY

•

Formation of AngloGold Limited through the consolidation of East Rand Gold and Uranium Company Limited; Eastvaal Gold Holdings Limited; Southvaal Holdings Limited; Free State Consolidated Gold Mines Limited; Elandsrand Gold Mining Company Limited; H.J. Joel Gold Mining Company Limited and Western Deep Levels Limited into a single, focused, independent gold mining company. Vaal Reefs Exploration and Mining Company Limited (Vaal Reefs), the vehicle for the consolidation, changed its name to AngloGold Limited and increased its authorised share capital, effective 30 March 1998.

•	Expansion of AngloGold Limited’s operations outside of South Africa.

•	Conclusion of the business combination with Ashanti Goldfields Company Limited, at which time the company changed its name to AngloGold Ashanti Limited.

•	Sale by Anglo American plc of 69,100,000 ordinary shares of AngloGold Ashanti, thereby reducing Anglo American’s shareholding in AngloGold Ashanti from 41.7 percent to 16.6 percent.

•	Sale by Anglo American plc of its remaining shareholding in AngloGold Ashanti to Paulson & Co. Inc.

•	Elimination of AngloGold Ashanti’s hedge book, thereby gaining full exposure to spot gold prices.

•	Acquisition of the remaining 50 percent interest in Serra Grande in Brazil for $215 million.

•	Acquisition of 100 percent of First Uranium (Proprietary) Limited for $335 million.

---

•	Commission of two new gold projects - Tropicana and Kibali - in the second half of 2013.

•	Sale of the Cripple Creek & Victor gold mine in the USA for $819 million.

•	South Africa region restructured - TauTona mine placed on orderly closure. Negotiations of the sales of Moab Khotsong and Kopanang mines during 2017 with the transactions concluding on 28 February 2018.

•	Announcement of a review of divestment options for assets in South Africa, Mali and Argentina.

•	Sale of the Sadiola mine in Mali for $52.5million.

•	Announcement of the sale of the remaining South African producing assets and related liabilities.

---

4B.	BUSINESS OVERVIEW

•	South Africa (West Wits and Surface Operations);

•	Continental Africa (Democratic Republic of the Congo, Ghana, Guinea, Mali and Tanzania);

•	Americas (Argentina and Brazil, and projects in Colombia); and

•	Australia (Australia).

---

•	Focus on people, safety and sustainability . People are the foundation of our business. Our business must operate according to our values if it is to remain sustainable in the long term.

•	Promote financial flexibility . We must ensure our balance sheet always remains able to meet our core funding needs.

•	Optimise overhead costs and capital expenditure . All spending decisions must be thoroughly scrutinised to ensure they are optimally structured and necessary to fulfil our core business objective.

•	Improve portfolio quality . We have a portfolio of assets that must be actively managed to improve the overall mix of our production base as we strive for a competitive valuation as a business.

•	Maintain long-term optionality . While we are focused on ensuring the most efficient day-to-day operation of our business we must keep an eye on creating a competitive pipeline of long-term opportunities.

---

•	make the Minister of Mineral Resources and Energy (MRE Minister) the responsible authority for implementing the requirements of the National Environmental Management Act, No. 107 of 1998 (NEMA) and specific environmental legislation as they relate to prospecting, mining, exploration, production and related activities incidental thereto on the prospecting, mining, exploration or production area;

•	align the MPRDA with the NEMA in order to provide for one environmental management system;

•	remove ambiguities in certain definitions;

•	add functions to the Regional Mining Development and Environmental Committee;

•	amend transitional arrangements so as to further afford statutory protection to certain existing old order rights; and

•	provide for matters connected therewith.

---

•	Environmental authorisations : Provides for a prohibition on any prospecting and mining, or conducting technical co-operation operations, reconnaissance operations or any incidental work without an environmental authorisation (since 7 December 2014), permit and at least 21 days’ written notice to the landowner or lawful occupier.

•

Historic residues : Provides that the definitions of “residue stockpile” and “residue deposit” now include an old order right. This provision is intended to make old order dumps subject to the MPRDA so that old order dumps which are part of a mining area covered by a new order mining right could only be treated by the holder of the new order rights. Old order dumps not covered by a new order mining right would be considered a residue deposit to which the MRE Minister would have discretion to grant rights.

•	Applications : Provides that applicants for prospecting and mining rights must (since 7 December 2014) lodge an application for an environmental authorisation simultaneously with the application for rights. The Department of Mineral Resources should no longer accept more than one application in respect of the same area and mineral.

•

Environmental regulation : Provides that the MRE Minister is the responsible authority for implementing environmental provisions under NEMA as it relates to prospecting, mining, exploration, production or activities incidental thereto on a prospecting, mining, exploration or production area. An environmental authorisation issued by the MRE Minister shall be a condition prior to the issuing of a permit or the granting of a right in terms of the MPRDA.

•	Closure certificates : Provides that previous holders of old order rights or previous owners of works that have ceased to exist remain responsible for any environmental liability until the MRE Minister issues a closure certificate.

•

“Interested and affected parties” : Section 10 of the MPRDA requires consultation of interested and affected parties. The MPRDA Regulations currently define “interested and affected parties” as “a natural or juristic person with a direct interest in the proposed or existing operation or who may be affected by the proposed or existing operation”. The Draft MPRDA Regulations expand on the aforesaid definition by specifying that these include but are not limited to “host communities, landowners (traditional and title deed owners); traditional authority; land claimants; lawful land occupier; holder of informal land rights; the Department of Agriculture, Land Reform and Rural Development; any other person (including on adjacent and non-adjacent properties) whose socio-economic conditions may be directly affected by the proposed prospecting or mining operation; the local municipality and the relevant Government Departments, agencies and institutions responsible for the various aspects of the environment and for infrastructure which may be affected by the proposed project”;

•

“Meaningful consultation” : Meaningful consultation envisages a consultation process where “the applicant, has in good faith engaged the landowner, lawful occupier or interested and affected party in respect of the land subject to the application about the impact the prospecting or mining activities would have to his right of use of the land by availing all the information pertaining to the proposed activities enabling these parties to make an informed decision regarding the impact of the proposed activities”;

•	Information requirement : A new requirement is introduced requiring a mining company to provide certified copies of its right or permit in question, environmental authorisation and any relevant authorisations to landowners and lawful occupiers before commencing with operations;

•

Social and Labour Plans : A new requirement is introduced obliging mining companies to publish Social and Labour Plans (SLP) relating to their operations in English and one other dominant official language commonly used in the mine community on the mining company’s website, in local newspaper(s), as hard copies in local libraries, municipal offices, traditional authority offices and company/mine offices within 30 days of approval. Furthermore, the availability and content of the approved SLP must be announced, where feasible, in local radio stations and in relevant news outlets;

•	Repeal : Regulations 47-55 and 58-60 of the MPRDA Regulations are repealed as the topics governed by these regulations have since been incorporated into NEMA and the Environmental Impact Assessment Regulations, 2014 (as amended);

---

•	Disputes : A process is prescribed according to which the Regional Manager may resolve land access and “resettlement” disputes in terms of section 54 of the MPRDA . A procedure is also created for resolving land disputes which gives the MRE Minister or the Director-General certain powers to deal with complicated land disputes; and

•	Appeals : New procedures are proposed for lodging internal appeals in terms of section 96 of the MPRDA.

•	promote equitable access to the nation’s Mineral Resources by all the people of South Africa;

•	substantially and meaningfully expand opportunities for HDSAs, including women, to enter the mining and minerals industry and to benefit from the exploitation of the nation’s Mineral Resources;

•	use the industry’s existing skills base for the empowerment of HDSAs;

•	expand the skills base of HDSAs in order to serve the community;

•	promote employment and advance the social and economic welfare of mining communities and the major labour-sending areas; and

•	promote beneficiation of South Africa’s mineral commodities.

•	taking into account, amongst other things, attributable units of production controlled by HDSAs;

•	allowing flexibility by credits or offsets, so that, for example, where HDSA participation exceeds any set target in a particular operation, the excess may be offset against shortfalls in another operation;

•	taking into account previous empowerment deals in determining credits and offsets; and

•	considering special incentives to encourage the retention by HDSAs of newly acquired equity for a reasonable period.

•	facilitate local beneficiation of mineral commodities;

•	procure a minimum of 40 percent of capital goods, 70 percent of services and 50 percent of consumer goods from HDSA suppliers (i.e. suppliers in which a minimum of 25 percent + one vote of share capital is owned by HDSAs) by 2014. The aforesaid procurement targets are, however, exclusive of non-discretionary procurement expenditure;

•	ensure that multinational suppliers of capital goods put a minimum of 0.5 percent of their annual income generated from South African mining companies into a social development fund (effective 2010) to contribute to the socio-economic development of South African communities;

•	achieve a minimum of 40 percent HDSA demographic representation by 2014 at executive management (board) level, senior management (EXCO) as well as positions requiring core and critical skills, middle management level and junior management level;

•	invest up to 5 percent of annual payroll in essential skills development activities; and

•	implement measures to improve the standards of housing and living conditions of mineworkers by converting or upgrading mineworkers’ hostels into family units, attaining an occupancy rate of one person per room and facilitating home ownership options for all mineworkers in consultation with organised labour, by 30 April 2014.

---

•

Once the MRE Minister or his delegate is satisfied in terms of section 23(1)(h) of the MPRDA that the grant of a mining right (applied for in terms of section 22 of the MPRDA) will further the objects referred to in section 2(d) and (f) of the MPRDA (in accordance with the Charter referred to in section 100) and has granted the mining right applied for, the holder thereof is not thereafter legally obliged to restore the percentage ownership (howsoever measured, inter alia , wholly or partially by attributable units of South African production) controlled by HDSAs to the 26 percent target referred to in the Mining Charter, 2004 and the Mining Charter, 2010 , where such percentage falls below 26 percent, unless such obligation is specified in the terms and conditions of the mining right, as referred to in section 23(6) of the MPRDA;

•

The holder of a mining right’s failure to meet the 26 percent ownership target (either in terms of the Mining Charter, 2004 or the Mining Charter, 2010) does not amount to a material breach of the mining right for the purposes of section 47 of the MPRDA (i.e. failure to meet the 26 percent HDSA ownership target will not be a ground for suspension or cancellation of the mining right) nor does it constitute an offence in terms of section 98 of the MPRDA. This, however, does not apply where the terms and conditions of the right itself have stipulated that the 26 percent HDSA ownership must be retained;

•

If the 26 percent HDSA ownership participation has, for any reason, been diluted to a lesser percentage, there is no obligation to rectify such lower level once the holder of the mining right has initially achieved the 26 percent HDSA ownership participation requirement. This does not apply where the terms and conditions of the right itself have stipulated that the 26 percent HDSA ownership must be retained;

---

•	The Mining Charter, 2010 does not retrospectively deprive holders of mining rights of the benefits of credit offsets; the continuing consequences of empowerment transactions concluded after the MPRDA came into effect; and the right to off-set credits achieved in one operation against any shortfalls encountered in another operation; and

•	While it did not make any pronouncements on the validity of the Mining Charter, 2010, this should not be taken as a confirmation that the Mining Charter, 2010 was validly issued in terms of section 100(2) of the MPRDA or that “it is the charter contemplated in section 100” of the MPRDA.

•	Existing mining right holders who have achieved the 26 percent HDSA ownership target shall be recognized as compliant for the duration of the mining right. However, the “the once empowered always empowered” principle shall not be applicable on the transfer or renewal of the mining right.;

•	An application, which was lodged and accepted prior to the commencement of the Mining Charter, 2018 shall be processed in terms of the Mining Charter, 2010 with a minimum of 26 percent HDSA ownership. The right holder must within a period of five years from the effective date of such mining right, increase its HDSA ownership to a minimum of 30 percent;

•	A new mining right must have a minimum of 30 percent HDSA ownership, which shall include economic interest plus corresponding percentage of voting rights per mining right or in the mining company which holds a mining right. The 30 percent HDSA ownership must be distributed as follows:

•	a minimum of 5 percent non-transferable carried interest to qualifying employees;

•	a minimum of 5 percent non-transferable carried interest or “equity equivalent benefit” to host communities; and

•	a minimum of 20 percent effective ownership in the form of shares to a BEE entrepreneur, 5 percent of which must preferably be for women;

•

The Mining Charter, 2018 reduced the offset available for beneficiation from 11 percent to 5 percent, but on the basis that existing mining right holders, who qualified for the previous offset, would be allowed to retain it for the duration of the right. Right holders must submit a Beneficiation Equity Equivalent Plan (as outlined in implementation guidelines) to the DMRE for approval. Further, mining right holders must submit an annual progress report to the DMRE, which report must be in line with the approved Beneficiation Equity Equivalent Plan;

•

Mining companies must have Historically Disadvantaged Persons (as defined in the MPRDA) representation at various levels of the company, i.e. board 50 percent (20 percent women); executive management 50 percent (20 percent women); senior management 60 percent (25 percent women); middle management 60 percent (25 percent women); junior management 70 percent (30 percent women) and a minimum 1.5 percent of all employees must be employees with disabilities. A period of five years is provided for mining companies to align with the employment equity targets and a 5 - year plan indicating progressive implementation of the provisions of the employment equity targets must be submitted to the DMRE within 6 months of the publication of the Mining Charter, 2018;

•

New procurement targets have been introduced. 70 percent of total mining goods procurement spend must be on South African manufactured goods. South African manufactured goods are defined as goods with a minimum of 60 percent local content during the assembly or manufacturing of the product in South Africa. The calculation of local content excludes profit mark-up, intangible value such as brand value and overheads. A minimum of 80 percent of the total spend on services must be sourced from South African companies. The transitional arrangement period for compliance with the procurement targets is five years from the publication of the Mining Charter, 2018; and

•

The Mining Charter, 2018 provides for the specific application of certain of the elements of the Mining Charter, 2018 to holders of licences under the Precious Metals Act, No. 37 of 2005 and the Diamonds Act, No. 56 of 1986 with variations and exemptions depending on the size of the licence holder. For example, enterprises with a turnover of less than ZAR 1 million are exempt from the Mining Charter, 2018 in its entirety. Enterprises with a turnover of more than ZAR 50 million must comply with the Mining Charter, 2018 in its entirety.

---

•	An existing mining right holder must within a period of 6 months from the date of publication of the Draft Reviewed Housing Standard submit a detailed Housing and Living Conditions Plan;

•	A new mining right holder must within a period of 12 months from the date of publication of the Draft Reviewed Housing Standard consult with organized labour, the relevant municipality and the Department of Human Settlements and enter into a housing and living conditions agreement with organized labour regarding its mine employee housing and living conditions needs;

•	A mining right holder will be required after consultation with other stakeholders to acquire land within close proximity of the mine operations and plan housing needs in support of compact, integrated and mixed land use environment; and

•	A mining right holder must offer employees a range of housing options which include, amongst other things, rental accommodation, home ownership, government led social housing and living out allowance.

•

The Draft Resettlement Guidelines apply to both applicants (Applicants) and existing holders (Holders) of mining rights, prospecting rights and mining permits in terms of the MPRDA where prospecting or mining activities will have the effect of displacement or resettlement of the interested and affected parties (as defined in the Draft Resettlement Guidelines meaning any person, group of persons, or organization interested in or affected by a resettlement activity and any organ of state that may have jurisdiction over any aspect of the resettlement activity);

•	Applicants and Holders are required to make provision for development of a Resettlement Plan, Resettlement Action Plan and Resettlement Agreement; and

•

No mining activity shall commence until a Resettlement Agreement is reached on the appropriate amount of compensation as a result of the resettlement of the affected parties. An Applicant/Holder, where feasible, must provide financial assistance to affected parties. A “Party to Party dispute resolution process” must be invoked prior to embarking on the Regional Manager-led process in section 54 of the MPRDA.

•	amending and clarifying the definition of the intended beneficiaries of such framework;

•	amending the definition of “Broad-Based Black Economic Empowerment” or “BBBEE”, to introduce the concept of viable BBBEE and providing standards for that preferential procurement;

---

•	expanding the scope of the BBBEE Codes of Good Practice (BBBEE Codes), and the related transformation charters, on BBBEE matters that the Minister of Trade and Industry can issue under the BBBEE Act for specific sectors of the South African economy and making it compulsory for public authorities, governmental agencies and other public entities to apply such codes (Sector Codes);

•	introducing into the BBBEE Act the definition of “fronting BBBEE practices” (i.e. a transaction, arrangement or other act or conduct that directly or indirectly undermines or frustrates the achievement of the objectives of the BBBEE Act or the implementation of any of its provisions), which to date has been developed outside of the BBBEE Act and has now been expanded:

•	to capture more sophisticated and unsuspecting fronting transactions;

•	making fronting a criminal offense that is punishable with imprisonment and fines under certain circumstances, reasserting in the BBBEE Act the common law remedies for misrepresentation and more generally enhancing the enforcement mechanism against fronting;

•	establishing a BBBEE Commission responsible for overseeing, supervising and promoting compliance with the BBBEE Act, as well as receiving and investigating BBBEE-related complaints; and

•	providing that the Department of Trade and Industry (DTI) may impose special requirements for specific industries.

---

---

•	broader definition of “financial provision” requires the holder to make financial provisions for any adverse impacts that might arise from mining operations and is not limited to those identified in the environmental management plan (EMP), as was previously the case;

•	requiring the holder to annually assess environmental liability estimates and adjust the financial provision to the satisfaction of the MRE Minister;

•	requiring the holder to submit an audit report from an independent auditor to the MRE Minister on the adequacy of the holder’s financial provision. If the MRE Minister is not satisfied with the assessment, he is entitled to appoint his own auditor;

•

requiring that a holder maintain and retain a financial provision following the issuance of a closure certificate. Furthermore, the MRE Minister may retain such portion of the financial provision as may be required to rehabilitate the closed mining or prospecting operation in respect of latent, residual or any other environmental impacts, including the pumping of polluted or excess water, for a prescribed period. This is not only in respect of holders of rights, but also now in respect of holders of old order rights and holders of works;

•	before the coming into effect of the Financial Provision Regulations, 2015, holders could make financial provision for annual rehabilitation, final rehabilitation and post-closure residual impacts and water pumping by adding up the total amount for these three types of rehabilitation and making financial provision for the same using one or a mix of four methods:

•	depositing cash in to the DMRE bank account;

•	keeping the amount in a rehabilitation trust in accordance with the Income Tax Act, No. 58 of 1962 (the amount in the trust can only relate to financial provision for post-closure residual impacts and water pumping and not for annual and final closure);

•	obtaining a financial guarantee or a bank guarantee in respect of the amount; or

•	using a method determined by the Director-General (uncommon in practice).

•	a holder’s financial provision at any given time must be equal to the sum of actual costs of implementing all three broad classes of rehabilitation for at least 10 years from such date of assessment of financial provision; and

•	the financial provision liability associated with annual rehabilitation, final closure and latent or residual environmental impacts may not be discounted based on value of the assets at mine closure or mine infrastructure salvage value.

---

•

Regulation 7(3) provides that “funds set aside for financial provision must remain in place until a closure certificate is issued, unless a withdrawal as contemplated in regulation 11 is allowed”. Regulation 11 outlines the procedure for holders to follow when seeking to withdraw financial provision and provides that the MRE Minister must approve withdrawals with the concurrence of the Minister of Human Settlements, Water and Sanitation and the Minister of Finance. The withdrawal of financial provision can only occur after the stringent requirements stipulated in regulation 11 are met and are only allowed for decommissioning and final closure and not for ongoing or concurrent rehabilitation. Since the financial provision is not accessible to the holder for use during the life of the right, the holder has to effectively make double provision (the first being financial provision and the second being actual expenditure incurred for rehabilitation). The implications of regulation 7(3), read with regulation 11, may include a rise in the amount of financial guarantees provided in connection with mining operations;

•	Regulation 12(2) prescribes that the determination, review and assessment of financial provision must be undertaken by a specialist which must be audited by an independent auditor as provided for in regulation 13(1)(a) and submitted for approval to the MRE Minister. This requirement places a significant administrative and cost burden on the mining industry; and

•	Value-added tax (VAT) is included in the financial provision calculation. This inclusion is seen as onerous by the mining industry .

---

---

•	to extend the term of the mining lease relating to the Obuasi mine until 2054 on terms existing prior to the business combination;

•	to maintain, for a period of 15 years, the royalties payable by AngloGold Ashanti with respect to its mining operations in Ghana at a rate of 3 percent per annum of the total revenue from minerals obtained by AngloGold Ashanti from such mining operations;

•	to ensure the income tax rate would be 30 percent for a period of 15 years. The agreement was amended in December 2006 to make the tax rate equal to the prevailing corporate rate for listed companies if the rate was less than 30 percent; and

•	to permit AngloGold Ashanti and any or all of its subsidiaries in Ghana to retain up to 80 percent of export proceeds in foreign currencies offshore, or if such foreign currency is held in Ghana, to guarantee the availability of such foreign currency.

---

•	Stabilization of the fiscal and regulatory framework (except for enactments promoting the use of Ghanaian goods and services) for a period of 10 years with a potential of it being extended for five years;

•	Confirmation of accounting currency to be US dollars;

•	Right to hold up to 80 percent of proceeds received from exporting minerals in foreign currencies outside of Ghana in accordance with existing arrangements;

•	Obligation to set up a “Community Trust Fund” for Obuasi funded at $2 per ounce produced;

•	Obligation to give preference to materials and goods made in Ghana as well as services provided by Ghanaians, entities incorporated or formed in Ghana and entities owned and controlled by Ghanaians;

•	Obligation to give preference to Ghanaian skills where they are available;

•	Obligation to employ high standards of safety; and

•	Right to peaceful enjoyment and protection against expropriation.

•	Corporate Income Tax to be 32.5 percent or such lower rates as may be fixed by law (current statutory rate is 35 percent);

•	Unutilised capital allowances carried forward by AGA Ghana which relate to the period before the effective date of the Obuasi TCA which have not already been utilized for the purposes of calculating taxable income shall continue to be carried forward until 31 December 2020;

•	Existing tax losses and new tax losses as well as a special concession to carry forward capital allowances to be converted into tax losses as at the end of 2020, will apply to AGA Ghana (whoever is the owner of AGA Ghana and whether or not AGA Ghana was to enter into a joint venture in respect of the Obuasi mine);

•	Exemptions of certain items from Import Duty;

•	Exemption of the following transactions from Capital Gains Tax:

•	an issue of shares by a publicly listed company which holds a direct or indirect interest in AGA Ghana in connection with a raising of finance, an acquisition or a reorganization or an issue of shares by a company in connection with a new listing;

•	transfers of shares in any publicly listed company which holds a direct or indirect interest in AGA Ghana other than a transfer of shares which results in a third party holding more than 35 percent of the shares in the listed company; and

•	a reorganization of a company which holds a direct or indirect interest in AGA Ghana where following the reorganization the shareholders are substantially similar to those shareholders of the ultimate parent entity immediately prior to the transaction;

•	Non-application of section 62(1) of the Income Tax Act, 2015 (Act 896) in relation to change in underlying ownership under the following circumstances:

•	a joint venture in relation to Obuasi gold mine;

•	an issue of shares by a publicly listed company which holds a direct or indirect interest in AGA Ghana in connection with a raising of finance, an acquisition or a reorganization or an issue of shares by a company in connection with a new listing;

---

•	transfers of shares in any publicly listed company which holds a direct or indirect interest in AGA Ghana other than a transfer of shares which results in a third party holding more than 50 percent of the shares in the listed company; and

•	a reorganization of a company which holds a direct or indirect interest in AGA Ghana where following the reorganization the shareholders are substantially similar to those shareholders of the ultimate parent entity immediately prior to the transaction;

•	Sliding scale royalty rate ranging from 3 percent to 5 percent for a price ranging from $1 , 300 up to $2 , 000 and above per ounce instead of the current flat rate of 5 percent;

•	Exemption from the payment of VAT on items imported under the Import Duty List up to 31 December 2023; and

•	Entitlement to a refund of VAT credit at the pre-production stage notwithstanding that AGA Ghana will not meet certain conditions for qualifying for refunds.

•	any amendment to or removal of the relevant provisions of the AGA Ghana Regulations setting out the rights and restrictions attaching to the Golden Share;

•	the voluntary winding-up or voluntary liquidation of AGA Ghana;

•	the redemption of or purchase by AGA Ghana of the Golden Share;

•	the disposal of any mining lease held by AGA Ghana or any subsidiary of AGA Ghana; and

•

any disposal by AGA Ghana (other than any disposal in the ordinary course of business of AGA Ghana) which, alone or when aggregated with any disposal or disposals forming part of, or connected with, the same or a connected transaction, constitutes a disposal of the whole or a material part of the assets of the AGA Ghana group taken as a whole. For this purpose, a part of the AGA Ghana group’s assets will be considered material if either (a) its book value (calculated by reference to the then latest audited consolidated accounts), or the total consideration to be received on its disposal, is not less than 25 percent of the book value of the net assets of the AGA Ghana group or (b) the average profits attributable to it represent at least 25 percent of the average profits of the AGA Ghana group for the last three years for which audited accounts are available (before deducting all charges, except taxation and extraordinary items).

---

•	Income Tax Act, 2015 (Act 896) (as amended) and Income Tax Regulations, 2016 (L.I. 2244);

•	Customs Act, 2015 (Act 891) (as amended) and Customs Regulations, 2016 (L.I. 2248);

•	Value Added Tax, 2013 (Act 870) (as amended) and Value Added Tax Regulations, 2016 (L.I. 2243); and

•	Revenue Administration Act, 2016 (Act 915) .

•

An increase in the income tax rate applicable to mining businesses from 25 percent to 35 percent. The Obuasi TCA limits the corporate income tax rate for AGA Ghana to 32.5 percent and AGA Iduapriem was protected until April 2019 from any increase exceeding the rate provided for under the Ghana Stability Agreement. Following the expiration of the Ghana Stability Agreement, AGA Iduapriem currently pays an income tax rate of 35 percent;

•

Introduction of a new capital allowance regime for class 3 assets (which include mineral and petroleum exploration and production rights, buildings, structures and works of a permanent nature used in mineral and petroleum exploration and production and plant and machinery used in mining and petroleum operations) that provides for a 20 percent straight line rate for a period of five years. AGA Ghana is protected under the Obuasi TCA and AGA Iduapriem was protected until April 2019 from such change pursuant to the Ghana Stability Agreement;

•

Elimination of the 5 percent allowance on prior year additions. Prior to the 2012 amendment, the tax code granted an additional 5 percent of the value of assets acquired and qualified to be classified as class 3 assets for the purpose of granting capital allowances. Capital allowance is now 20 percent each year on the total value of the assets. The Obuasi TCA provides that unutilised capital allowances carried forward by AGA Ghana which relate to the period before the effective date of the Obuasi TCA which have not already been utilized for the purposes of calculating taxable income shall continue to be carried forward until 31 December 2020. From 1 January 2021, any such unutilized capital allowances shall be 20 percent each year on the total value of assets. AGA Iduapriem was protected until April 2019 from such change pursuant to the Ghana Stability Agreement; and

•	A ring fencing rule to prevent mining businesses from deducting or setting off costs from one mining area with another’s income. This ring fencing rule applies to AGA Ghana under the Obuasi TCA. Pursuant to the Ghana Stability Agreement, this change did not affect AGA Iduapriem until April 2019.

•

The Minerals Income Investment Fund Bill has been passed by Parliament to establish a Fund to receive mineral royalties and related income as well as establish a special purpose vehicle to vest the Ghanaian Government’s carried interest in mining companies. It will also provide for the disbursement and management of the royalties received from mineral rights holders by Ghana’s Government. This would not impose any additional burden on mining companies such as AngloGold Ashanti but would only change the legal personality holding the Ghanaian Government’s carried interest; and

•	The Income Tax (Amendment) Act , 2019 (Act 1007) was passed to revise the rates of tax for the chargeable income for resident individuals, and to provide for a tax holiday for automobile manufacturers and assemblers.

---

---

•	redemptions and coupon payments on bonds held by non-residents;

•	investment income, technology and management transfer entitlements, expatriate emoluments, and other incentive packages and overseas commitments under provisions in various legislation and legislative instruments such as the GMM Act, and the Technology Transfer Regulations, 1992 (L.I.1547); and

•	other outward payments for imports of goods and services.

•	Exporters shall continue to repatriate in full export proceeds in accordance with the terms agreed between the trading parties. Such proceeds shall be credited to their FEAs and converted on a need basis;

•	FEAs and FCAs will continue to be opened and operated as they were before the notices of 4 February 2014;

•	Except for transfers from FEA to FCA which are still prohibited, all other transfers between accounts are permitted;

•	FCAs shall be fed only with unrequited transfers such as transfers from abroad for investment or embassy transfers;

•	FEAs shall be fed with foreign exchange generated from activities in Ghana such as proceeds from exports of goods and services; and

•	The threshold for transfers abroad without initial documentation remains at $50,000.00.

---

---

---

•	a duration of 25 years, expiring 23 January 2042, subject to further renewal if mining operations continue at that time; and with the term of the Mining Concession being aligned with the term of the Revised Convention de Base such that the Mining Concession will be renewed as long as the Revised Convention de Base remains in force;

•	SAG’s operations remain governed by the 1995 Guinea Mining Code (the prior mining code) and are only subject to the provisions of the Guinea Mining Code to the extent they are expressly set out in the Revised Convention de Base;

•	the stability of the customs and tax regime is guaranteed for the entire initial term of the Revised Convention de Base, and subject to certain conditions being met, any renewal period(s);

•	the Republic of Guinea holds a 15 percent free-carried/non-contributory interest;

•

the Republic of Guinea is entitled to a royalty on gold of 5 percent based on a spot gold price as per LBMA fixing (PM) up until the date of steady state commercial production of the first phase of the Expansion, after which the royalty rate applicable to gold will vary depending on threshold prices as per LBMA fixing (PM), namely: 3 percent if the gold price is USD 1,300 or less, 5 percent, if above USD 1,300 and up to USD 2,000 and 7 percent if above USD 2,000;

•	SAG will enjoy a 5-year income tax holiday as and from the beginning of steady state commercial production of the first phase of the Expansion, after which the income tax rate is set at 30 percent;

•	a local development tax of 0.4 percent is payable on the sale price for gold and silver received by SAG up until 31 December 2027, after which it will be increased to 0.6 percent;

•	salaries of expatriate employees are subject to a 10 percent income tax;

•	goods imported into Guinea for purposes related to the construction and commissioning of the first phase of the Expansion are exempt from all customs taxes and duties; and

•	SAG is committed to adopting and progressively implementing a plan for the effective rehabilitation of the mining areas disturbed or affected by its operations.

---

---

•	Dissolution of the Tanzania Minerals Audit Agency whose functions and powers have now been transferred to the Geological Survey of Tanzania (GST);

•

Dissolution of the Mining Advisory Board and introduction of the Tanzania Mining Commission. The functions and powers of the Mining Advisory Board have been taken over by the Mining Commission, including the functions of the Commissioner for Minerals. However, the Mining Commission has been made responsible for matters related to auditing and monitoring of mineral production in Tanzania. The Mining Commission has powers to audit quality and quantity of mineral produced and exported by mining entities, financial records of mining entities for the purposes of tax assessments, and environmental management expenditures of the mining entities for the purpose of assessment of compliance to the mine closure plan. Mineral rights holders were required to submit all geological information in their possession to the GST;

•

A local content requirement for procurement of goods and services: the Tanzania Mining Act requires that mining companies must give: (i) first consideration to good and services provided or manufactured in Tanzania where they meet mining industry specifications (established by the Standards Authority / internationally acceptable standards), (ii) first consideration for employment to qualified Tanzanians , and (iii) adequate provision for on-the-job training of Tanzanians. Specific minimum local content thresholds are specified in Schedule 1 to the Tanzania Mining Regulations. These will be determined by the Mining Commission alongside the work programme. The relevant Minister may prescribe additional minimum local content thresholds;

•

To qualify for holding a Mining Licence in Tanzania, 5 percent of a licensee’s equity must be held by Tanzanians, with 80 percent of its managerial positions held by Tanzanians and 100 percent of other positions held by Tanzanians, in addition to the shareholding of the Government of Tanzania pursuant to Section 10 of the Tanzania Mining Act (i.e. free-carried interest). This amount is determined, and may be varied, by the relevant Minister;

•

Establishment of the Local Content Committee (LC Committee) which will oversee the implementation of the Tanzania Mining Regulations and which is composed of a member of the Mining Commission, the Director of Labour and Employment, a member of the Tanzania Private Sector Foundation, the CEO of the Geological Survey of Tanzania, the head of legal services at the Ministry for Minerals and the Executive Secretary of the Mining Commission. The LC Committee sets minimum standards for local content plans and reports to the Mining Commission;

•	Introduction of a statutory procedure for the conduct of Corporate Social Responsibility (CSR), whereby a company is required to prepare annually a credible CSR plan jointly agreed with the local government authorities in consultation with the Minister for Finance and the Minister for Local Government Authorities; and

•	Cancellation of retention licences; right over such licences revert to the Government of Tanzania .

---

•	prospecting licence; and

•	gemstone prospecting licence.

•	special mining licence (if the proposed capital investment is equal to at least USD 100 million);

•	mining licence (if the proposed capital investment is equal to between USD 100,000 and USD 100 million); and

•	primary mining licence (reserved for Tanzanian citizens).

•	processing licence;

•	smelting licence; and

•	refining licence.

---

---

---

•	Aim at restricting the right of the state to exercise full permanent sovereignty over its wealth, natural resources and economic activity;

•	Are restricting the right of the state to exercise authority over foreign investment within the country and in accordance with the laws of Tanzania;

•	Are inequitable and onerous to the state;

•	Restrict periodic review of life-time arrangements or agreements;

•	Secure preferential treatment designed to create a separate legal regime to be applied discriminatorily for the benefit of a particular investor;

•	Are restricting the right of the state to regulate activities of transnational corporations within the country and to take measures to ensure that such activities comply with the laws of the land;

•	Are depriving the people of Tanzania of the economic benefits derived from subjecting natural wealth and resources to beneficiation in the country;

•	Are by nature empowering transnational corporations to intervene in the internal affairs of Tanzania;

•	Are subjecting the state to the jurisdiction of foreign laws and foreign courts or tribunals;

•	Expressly or implicitly undermine the effectiveness of state measures to protect the environment or the use of environmental friendly technology; or

•	Aim at doing any other act the effect of which undermines or is injurious to the welfare of the people of Tanzania or the economic prosperity of the nation.

•	An increase in the royalty rate from 3 percent to 4 percent with effect from 1 May 2012;

•	With effect from the financial year 2015, the capital allowance applicable to the unredeemed qualifying capital expenditure (15 percent per annum) referred to in section 18(a) of the Income Tax Act, 1973 (No. 33) shall no longer apply; and

•	With effect from 1 July 2014, Geita Gold Mining Limited is liable to pay the Geita District Council Levy at a rate of 0.3 percent on turnover (no longer capped at USD 200,000 per annum as provided under Article 4 of the company’s mining development agreement).

---

---

---

---

---

•	A ban prohibiting construction of new upstream tailings dams;

•	New requirements mandating reinforcement and earlier-than-planned closure of existing upstream TSFs;

•	New requirements mandating removal of all tailings material from TSFs (“decharacterization”), regardless of the original design method, upon closure and prior to decommissioning and environmental rehabilitation;

•	New requirements mandating bi - annual (each year in March and September) TSF Stability Declarations for approved TSFs, signed by an external engineering consultancy and geotechnical senior manager as well as company directors, to be submitted to the ANM and the relevant state environmental agency;

•	New requirements for companies to place a surety bond in the preliminary permit phase; and

•	Banning permits for any new dam where there are communities within 10 km downstream or where a dam break could affect communities in less than 30 minutes (within the Self-Rescue Zone).

---

---

---

•	New projects include a closure plan which takes into account future closure and associated rehabilitation and other costs.

•	The closure plan is reviewed annually and updated every three years (annually in the final three years of a mine’s life) or whenever significant changes are made, taking into account operational conditions, planning and regulatory requirements, international protocols, technological developments and advances in practice.

---

---

---

---

---

(1)	Sale process ongoing (at an advanced stage).

(2)	In 2019, the company’s joint venture partner’s, B2Gold Corp, minority shareholding was converted to a share of profits. Likely to be a copper mine producing gold and silver as by-products.

(3)	Agreement and sale announced December 2019.

(4)	Obuasi's redevelopment project began in 2019.

(5)	Kibali and Morila are managed and operated by Barrick Gold Corporation (Barrick).

(6)	Agreement and sale announced post year end in February 2020.

---

---

---

(1)	Total cash costs and all-in sustaining costs are non-GAAP measures. For further information on these non-GAAP measures, see “Item 5A: Operating Results-Non-GAAP analysis”.

(2)	Excludes Morila and Kibali which are managed by Barrick and not AngloGold Ashanti.

---

---

---

(1)	Includes MWS for purposes of this annual report. It is operated and managed as a separate cash-generating unit.

---

(1)	Refers to underground operations only.

(2)	Includes production ounces from the technology development programme in 2017.

(3)	Total cash costs and all-in sustaining costs are non-GAAP measures. For further information on these non-GAAP measures, see “Item 5A: Operating Results-Non-GAAP analysis”.

•	Improved throughput from better operational performance delivery by the contractor; stabilised duty cycle of the communication circuits

•	A change in strategy to process Mponeng marginal ore dumps (MOD) through the Savuka gold plant;

•	General metallurgical process efficiencies; and

•	Implementation of grid sampling and grade profiling strategy.

---

---

---

(1)	Total cash costs and all-in sustaining costs are non-GAAP measures. For further information on these non-GAAP measures, see “Item 5A: Operating Results-Non-GAAP analysis”.

(2)	100 percent, (not attributable) and includes Colombia.

---

---

(1)	Total cash costs and all-in sustaining costs are non-GAAP measures. For further information on these non-GAAP measures, see “Item 5A: Operating Results-Non-GAAP analysis”.

---

---

---

•	Greenfields exploration which aims to discover large, high-value Mineral Resource, which will eventually lead to the development of new gold mines; and

•

Brownfields exploration which focuses on delivering value through accretive additions to the Ore Reserve at existing mines as well as new discoveries in defined areas around operations. Brownfields exploration actively drives the creation of value by growing our Mineral Resource and Ore Reserve, our major assets. The brownfields exploration programme is based on innovation in geological modelling and mine planning, and continual optimisation of our asset portfolio.

---

---

---

•	Complete the feasibility study and present it to the board for approval in November 2020;

•	Obtain the environmental and construction licence by November 2020; and

•	Complete the process of securing the land for project implementation.

---

4C.	ORGANISATIONAL STRUCTURE

•	South Africa – West Wits and surface operations;

•	Continental Africa – operations in Ghana, Guinea and Tanzania and joint venture operations in the DRC and Mali;

•	Australia – operations in Australia; and

•	Americas – operations in Argentina and Brazil, and exploration projects in Colombia.

---

4D.	PROPERTY, PLANTS AND EQUIPMENT

---

•	quartz veins which consist mainly of quartz with free gold in association with lesser amounts of various metal sulphides of iron, zinc, lead and copper. The gold particles are generally coarse-grained and occasionally visible to the naked eye. This ore type is generally non-refractory; and

---

•	sulphide ore which is characterised by the inclusion of gold in the crystal structure of a sulphide material. The gold in these ores is fine-grained and often locked in arsenopyrite. Higher gold grades tend to be associated with finer grained arsenopyrite crystals. Other prominent minerals include quartz, chlorite and sericite. Sulphide ore is generally refractory.

•	laterite mineralisation (CAP) which occurs as surficial aprons of colluvium or as palaeo‑channels of alluvial lateritic gravel adjacent to, and immediately above in-situ deposits; and

•	in-situ quartz-vein related mineralisation hosted in meta-sediments with the better mineralisation associated with vein stockworks that occurs preferentially in the coarser, brittle siltstones and sandstones.

---

---

---

•	Minor reef intersected while accessing the primary reef;

•	Gold-bearing reef that was contained within small fault blocks that were exposed by off-reef development; and

•	Cross-tramming of gold-bearing reef material to the waste tips.

---

---

---

---

---

---

---

•	Mineral Resource and Ore Reserve at Siguiri

•	Mineral Resource and Ore Reserve at Geita

---

•	Mineral Resource and Ore Reserve at AGA Mineração Cuiabá and Lamego

•	Mineral Resource and Ore Reserve at AGA Mineração Córrego do Sítio

---

(1)	Ore Reserve includes marginally economic and diluting materials delivered for treatment and allow for losses that may occur during mining.

(2)	Proven and/or Probable Ore Reserve includes Ore Reserve below infrastructure. See table that follows.

(3)	Ore Reserve attributable to AngloGold Ashanti’s percentage interest shown.

(4)	Recovery factor and cut-off grade vary according to ore type.

(5)	Tons refers to a short ton, which is equivalent to 2000 pounds avoirdupois.

(6)	The Ore Reserve contains 18.76 million ounces of silver for Cerro Vanguardia and 25.95 million ounces for Quebradona to be recovered as a by-product.

(7)	The Ore Reserve contains 0.43 million tons of sulphur to be recovered as a by-product.

(8)	Includes Mine Waste Solutions (MWS).

(9)	In-situ cut-off grade.

(10)	Ore Reserve is estimated by Competent Persons employed by Barrick Gold (Holdings) Limited.

(11)	No Ore Reserve is declared, Morila is only treating tailings and the Ore Reserve has been written off.

(12)	Copper ore cut-off Net Smelter Return (NSR).

---

---

(1)	Ore Reserve includes marginally economic and diluting materials delivered for treatment and allow for losses that may occur during mining.

(2)	Proven and/or Probable Ore Reserve includes Ore Reserve below infrastructure. See table that follows.

(3)	Ore Reserve attributable to AngloGold Ashanti’s percentage interest shown.

(4)	Recovery factor and cut-off grade vary according to ore type.

(5)	Tons refers to a short ton, which is equivalent to 2000 pounds avoirdupois.

(6)	The Ore Reserve contains 32.68 million ounces of silver for Cerro Vanguardia and 23.58 million ounces for Quebradona to be recovered as a by-product.

(7)	The Ore Reserve contains 0.38 million tons of sulphur to be recovered as a by-product.

(8)	Includes Mine Waste Solutions (MWS).

(9)	In-situ cut-off grade.

(10)	Ore Reserve is estimated by Competent Persons employed by Barrick Gold (Holdings) Limited.

(11)	No Ore Reserve is declared for 2018 - sale of Kopanang and Moab Khotsong.

(12)	Copper ore cut-off Net Smelter Return (NSR).

---

---

(1)	Ore Reserve includes marginally economic and diluting materials delivered for treatment and allow for losses that may occur during mining.

(2)	Proven and/or Probable Ore Reserve includes Ore Reserve below infrastructure. See table that follows.

(3)	Ore Reserve attributable to AngloGold Ashanti’s percentage interest shown.

(4)	Recovery factor and cut-off grade vary according to ore type.

(5)	Tonnes refers to a metric tonne which is equivalent to 1000 kilograms.

(6)	The Ore Reserve contains 583 tonnes of silver for Cerro Vanguardia and 807 tonnes for Quebradona to be recovered as a by-product.

(7)	The Ore Reserve contains 0.39 million tonnes of sulphur to be recovered as a by-product.

(8)	Includes Mine Waste Solutions (MWS).

(9)	In-situ cut-off grade.

(10)	Ore Reserve is estimated by Competent Persons employed by Barrick Gold (Holdings) Limited.

(11)	No Ore Reserve is declared as the Ore Reserve has been written off.

(12)	Copper ore cut-off Net Smelter Return (NSR)

---

---

(1)	Ore Reserve includes marginally economic and diluting materials delivered for treatment and allow for losses that may occur during mining.

(2)	Proven and/or Probable Ore Reserve includes Ore Reserve below infrastructure. See table that follows.

(3)	Ore Reserve attributable to AngloGold Ashanti’s percentage interest shown.

(4)	Recovery factor and cut-off grade vary according to ore type.

(5)	Tonnes refers to a metric tonne which is equivalent to 1000 kilograms.

(6)	The Ore Reserve contains 1,016 tonnes of silver for Cerro Vanguardia and 733 tonnes for Quebradona to be recovered as a by-product.

(7)	The Ore Reserve contains 0.37 million tonnes of sulphur to be recovered as a by-product.

(8)	Includes Mine Waste Solutions (MWS).

(9)	In-situ cut-off grade.

(10)	Ore Reserve is estimated by Competent Persons employed by Barrick Gold (Holdings) Limited.

(11)	No Ore Reserve is declared for 2018 - sale of Kopanang and Moab Khotsong.

(12)	Copper ore cut-off Net Smelter Return (NSR).

---

---

(1)	Ore Reserve attributable to AngloGold Ashanti’s percentage interest shown.

(2)	Centralised operations treating material on surface that was previously generated by several underground operations, includes tailings material.

(3)	Spent heap included in Ore Reserve.

---

(1)	Ore Reserve attributable to AngloGold Ashanti’s percentage interest shown.

(2)	Centralised operations treating material on surface that was previously generated by several underground operations, includes tailings material.

(3)	Spent heap included in Ore Reserve.

---

(1)	Ore Reserve attributable to AngloGold Ashanti’s percentage interest shown.

(2)	Centralised operations treating material on surface that was previously generated by several underground operations, includes tailings material.

(3)	Spent heap included in Ore Reserve.

---

(1)	Ore Reserve attributable to AngloGold Ashanti’s percentage interest shown.

(2)	Centralised operations treating material on surface that was previously generated by several underground operations, includes tailings material.

(3)	Spent heap included in Ore Reserve.

---

---

---

ITEM 4A:	UNRESOLVED STAFF COMMENTS

---

•	Continental Africa (comprising Ghana, Guinea, Mali, the DRC and Tanzania);

•	South Africa (recorded as a discontinued operation);

•	Australia; and

•	Americas (comprising Argentina, Brazil and projects in Colombia).

---

5A:	OPERATING RESULTS

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 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.

---

•	2017 - $1,251 per ounce

•	2018 - $1,261 per ounce

•	2019 - $1,387 per ounce

---

---

---

---

---

---

---

---

---

---

---

•	an internal benchmark of performance to allow for comparison against other mines, both within the AngloGold Ashanti group and at other gold mining companies.

---

(1)

“All-in sustaining costs per ounce $/oz”, "all-in costs per ounce $/oz” and “total cash costs per ounce $/oz" are non-GAAP measures. For a detailed reconciliation of "all-in sustaining costs per ounce", "all-in costs per ounce" and "total cash costs per ounce" for the company’s total operations for each of the three years in the period ended 31 December 2019, refer to the relevant “AngloGold Ashanti operations - Total” tables below.

---

---

---

---

---

(1)	Adjusting for non-controlling interest of items included in calculation, to disclose the attributable portions only. Other consists of heap leach inventory.

(2)	Attributable portion (excluding pre-production ounces).

(3)

In addition to the operational performances of the mines, all-in sustaining cost per ounce, all-in cost per ounce and total cash costs per ounce are affected by fluctuations in the currency exchange rate. AngloGold Ashanti reports all-in sustaining cost per ounce and all-in cost per ounce calculated to the nearest US dollar amount and gold sold in ounces. AngloGold Ashanti reports total cash costs per ounce calculated to the nearest US dollar amount and gold produced in ounces.

(4)	Corporate includes non-gold producing subsidiaries.

(5)	Refer to “Item 18: Financial Statements - Note 2 - Segmental Information”.

---

---

---

---

---

---

---

---

---

(1)	Adjusting for non-controlling interest of items included in calculation, to disclose the attributable portions only. Other consists of heap leach inventory.

(2)	Attributable portion.

(3)

In addition to the operational performances of the mines, all-in sustaining cost per ounce, all-in cost per ounce and total cash costs per ounce are affected by fluctuations in the currency exchange rate. AngloGold Ashanti reports all-in sustaining cost per ounce and all-in cost per ounce calculated to the nearest US dollar amount and gold sold in ounces. AngloGold Ashanti reports total cash costs per ounce calculated to the nearest US dollar amount and gold produced in ounces.

(4)	Corporate includes non-gold producing subsidiaries.

(5)	Refer to “Item 18: Financial Statements - Note 2 - Segmental Information”.

---

---

---

---

---

---

---

---

(1)	Adjusting for non-controlling interest of items included in calculation, to disclose the attributable portions only. Other consists of heap leach inventory.

(2)	Attributable portion.

(3)

In addition to the operational performances of the mines, all-in sustaining cost per ounce, all-in cost per ounce, total cash costs per ounce per ounce are affected by fluctuations in the currency exchange rate. AngloGold Ashanti reports all-in sustaining cost per ounce and all-in cost per ounce calculated to the nearest US dollar amount and gold sold in ounces. AngloGold Ashanti reports total cash costs per ounce calculated to the nearest US dollar amount and gold produced in ounces.

(4)	Corporate includes non-gold producing subsidiaries.

(5)	Refer to “Item 18: Financial Statements - Note 2 - Segmental Information”.

---

---

---

---

---

---

---

---

(1)	Attributable portion (excluding pre-production ounces).

(2)

In addition to the operational performances of the mines, all-in sustaining cost per ounce, all-in cost per ounce and total cash costs per ounce are affected by fluctuations in the currency exchange rate. AngloGold Ashanti reports all-in sustaining cost per ounce and all-in cost per ounce calculated to the nearest US dollar amount and gold sold in ounces. AngloGold Ashanti reports total cash costs per ounce calculated to the nearest US dollar amount and gold produced in ounces.

(3)	Refer Item 18: Note 2 - Segmental Information.

---

(1)	Attributable portion (excluding pre-production ounces).

(2)

In addition to the operational performances of the mines, all-in sustaining cost per ounce, all-in cost per ounce and total cash costs per ounce are affected by fluctuations in the currency exchange rate. AngloGold Ashanti reports all-in sustaining cost per ounce and all-in cost per ounce calculated to the nearest US dollar amount and gold sold in ounces. AngloGold Ashanti reports total cash costs per ounce calculated to the nearest US dollar amount and gold produced in ounces.

(3)	Refer Item 18: Note 2 - Segmental Information.

---

(1)	Attributable portion (excluding pre-production ounces).

(2)

In addition to the operational performances of the mines, all-in sustaining cost per ounce, all-in cost per ounce and total cash costs per ounce are affected by fluctuations in the currency exchange rate. AngloGold Ashanti reports all-in sustaining cost per ounce and all-in cost per ounce calculated to the nearest US dollar amount and gold sold in ounces. AngloGold Ashanti reports total cash costs per ounce calculated to the nearest US dollar amount and gold produced in ounces.

(3)	Refer Item 18: Note 2 - Segmental Information.

---

(1)	Attributable portion (excluding pre-production ounces).

(2)

In addition to the operational performances of the mines, all-in sustaining cost per ounce, all-in cost per ounce and total cash costs per ounce are affected by fluctuations in the currency exchange rate. AngloGold Ashanti reports all-in sustaining cost per ounce and all-in cost per ounce calculated to the nearest US dollar amount and gold sold in ounces. AngloGold Ashanti reports total cash costs per ounce calculated to the nearest US dollar amount and gold produced in ounces.

(3)	Refer Item 18: Note 2 - Segmental Information.

---

(1)	Attributable portion (excluding pre-production ounces).

(2)

In addition to the operational performances of the mines, all-in sustaining cost per ounce, all-in cost per ounce and total cash costs per ounce are affected by fluctuations in the currency exchange rate. AngloGold Ashanti reports all-in sustaining cost per ounce and all-in cost per ounce calculated to the nearest US dollar amount and gold sold in ounces. AngloGold Ashanti reports total cash costs per ounce calculated to the nearest US dollar amount and gold produced in ounces.

(3)	Refer Item 18: Note 2 - Segmental Information.

---

(1)	Attributable portion (excluding pre-production ounces).

(2)

In addition to the operational performances of the mines, all-in sustaining cost per ounce, all-in cost per ounce and total cash costs per ounce are affected by fluctuations in the currency exchange rate. AngloGold Ashanti reports all-in sustaining cost per ounce and all-in cost per ounce calculated to the nearest US dollar amount and gold sold in ounces. AngloGold Ashanti reports total cash costs per ounce calculated to the nearest US dollar amount and gold produced in ounces.

(3)	Refer Item 18: Note 2 - Segmental Information.

---

5B.	LIQUIDITY AND CAPITAL RESOURCES

---

---

---

---

(1)	Including commitments through contractual arrangements with equity accounted joint ventures of $2 million.

(2)	Excludes commitments through contractual arrangements with equity accounted joint ventures.

---

---

---

5C.	RESEARCH AND DEVELOPMENT, PATENTS AND LICENSES, ETC.

5D.	TREND INFORMATION

5E.	OFF-BALANCE SHEET ARRANGEMENTS

5F.	TABULAR DISCLOSURE OF CONTRACTUAL OBLIGATIONS

(1)	Interest calculations are at the rate existing at the year end. Actual rates are set at floating rates for some of the borrowings (Refer to “Item 18: Financial Statements-Note 26-Borrowings”).

(2)	Represents contracted capital expenditure for which contractual obligations exist. Amounts stated include commitments of equity accounted joint ventures.

(3)	Other purchase obligations represent contractual obligations for mining contract services, purchase of power, supplies, consumables, inventories, explosives and activated carbon.

(4)

Operations of gold mining companies are subject to extensive environmental regulations in the various jurisdictions in which they operate. These regulations establish certain conditions on the conduct of operations by AngloGold Ashanti. Pursuant to environmental regulations, AngloGold Ashanti is also obligated to close its operations and reclaim and rehabilitate the lands upon which it conducted its mining and gold recovery operations. The present estimated closure costs at existing operating mines and mines in various stages of closure are reflected in this table. They are calculated using undiscounted real cash flows, not nominal cash flows. The amount will change from year to year depending on rehabilitation work undertaken, changes in design and methodology and new occurrences. For more information of environmental rehabilitation obligations, see "Item 4B: Business Overview-Mine Site Rehabilitation and Closure" and "Item 4B: Business Overview-Environmental, Health and Safety Matters”. Amounts stated include a total estimated liability of $54 million in respect of equity accounted joint ventures.

(5)	Represents payments for unfunded plans or plans with insufficient funding.

---

---

6A.	DIRECTORS AND SENIOR MANAGEMENT

(1)

Directors serve for a period of three years unless re-elected. At each annual general meeting, directors appointed since the previous annual general meeting are required to retire but are eligible for re-election. In addition, one-third of the directors (if their number is not a multiple of three, then the number nearest to but not less than one third), must retire according to seniority or by lot but may be re-elected.

---

---

---

---

•	Maria Richter, Michael Kirkwood and David Hodgson retired at the Annual General Meeting (AGM) on 9 May 2019. Maria Richter being eligible for re-election was re-elected by the shareholders and Michael Kirkwood and David Hodgson elected not to stand for re-election, in accordance with board policies and guidelines.

•	Maria Ramos and Nelisiwe Magubane were appointed as Independent Non-Executive Directors with effect from 1 June 2019 and 1 January 2020, respectively.

---

---

---

6B.	COMPENSATION

---

---

6C.	BOARD PRACTICES

•	The acquisition of all or part of AngloGold Ashanti; or

•	A number of shareholders holding less than thirty-five percent of the company’s issued share capital consorting to gain a majority of the board and make management decisions; and

•	The contracts of Executive Committee members are either terminated or their role and employment conditions are curtailed.

---

---

(1)	R Gasant was appointed to the Nominations Committee with effect from 9 August 2019.

(2)	DL Hodgson retired at the AGM held on 9 May 2019.

(3)	MJ Kirkwood retired at the AGM held on 9 May 2019.

(4)	MDC Ramos was appointed with effect from 1 June 2019

(5)	Two special purpose committees were established by the board during 2019, the Special Board Committee and the NED Search Committee.

•	reviewed the quarterly market updates and the half year results;

•	confirmed the integrity of the group’s Integrated Report, Annual Financial Statements and the Form 20-F;

•	reviewed the expertise, experience and performance of the finance function and Chief Financial Officer;

•	assessed the scope and effectiveness of the systems to identify, manage and monitor financial and non-financial risks;

•	reviewed the procedures for detecting, monitoring and managing the risk of fraud;

•	reviewed the scope, resources, results and effectiveness of the internal audit department;

•	approved the internal audit plan and subsequent changes to the approved plan;

•	ensured that a combined assurance model is applied to provide a co-ordinated approach to all assurance activities;

•	nominated the appointment of independent external auditors by the shareholders;

•	reviewed and approved the terms of engagement as contained in the engagement letter of the external auditors;

•	approved the remuneration of the external auditors;

•	pre-approved all non-audit services in line with a revised formal policy on non-audit services;

•	assessed the external auditors’ independence;

•	annually consider the suitability, after assessing the information provided by the audit firm in terms of section 22.15(h) of the JSE Listings Requirements, for appointment of the audit firm and the designated individual partner;

•	assessed the effectiveness of the group’s external audit function;

•	approved the appointment of the external auditors to provide independent limited assurance on certain sustainability indicators as included in the Sustainable Development Report;

•	reviewed developments in reporting standards, corporate governance and best practice;

•	monitored the governance of information technology (IT) and the effectiveness of the group’s information systems;

•	reviewed the adequacy and effectiveness of the group’s compliance function; and

•	evaluated the effectiveness of the committee through a self-assessment.

---

•	Reviewing and approving corporate goals and objectives relevant to the compensation of the Chief Executive Officer;

•	Evaluating the performance of the Chief Executive Officer in light of these goals and objectives annually and setting compensation based on such evaluation;

•	Ensuring that the mix of fixed and variable pay, in base pay, shares and other elements of compensation meets the company’s requirements and strategic objectives;

•	Linking individual pay with operational and company performance in relation to strategic objectives;

•	Considering the sentiments and views of the company’s investors;

•	Regularly reviewing incentive schemes to ensure continued contribution to shareholder value and ensure that these are administered in terms of the rules;

•	Regularly reviewing human resources strategy aimed at ensuring the supply and retention of sufficient skilled resources to achieve the company’s objectives;

•	Ensure that the remuneration policy and implementation report is put to a non-binding advisory vote at the general meeting of shareholders once every year; and

•	Review the outcome of the implementation of the remuneration policy to ensure that the set objectives are being achieved and fairness is addressed.

---

---

*	The number of contractors employed on average during 2019 was 14,389.

---

6E.	SHARE OWNERSHIP

•	Within three years of appointment (or for existing executive director, from introduction of this rule) executive director is to accumulate a MSR of AngloGold Ashanti shares to the value of 100 percent of net annual base salary; and

•	At the end of six years, executive director is to accumulate a MSR of AngloGold Ashanti shares to the value of 200 percent of net annual base salary (additional 100 percent MSR) which they will be required to hold on an on-going basis.

•	Within three years of appointment (or for existing executive director, from the introduction of this rule), executive director is to accumulate a MSR of AngloGold Ashanti shares to the value of 75 percent of net annual base salary; and

•	At the end of six years, executive director is to accumulate a MSR of AngloGold Ashanti shares to the value of 150 percent of net annual base salary (additional 75 percent MSR) which they will be required to hold on an on-going basis.

•	Within three years of appointment (or for existing executives, from the introduction of this rule), executive committee members are to accumulate a MSR of AngloGold Ashanti shares to the value of 75 percent of net annual base salary; and

•	At the end of six years, executive committee members are to accumulate a MSR of AngloGold Ashanti shares to the value of 150 percent of net annual base salary (additional 75 percent MSR) which they will be required to hold on an on-going basis.

---

(1)	Appointed prescribed officer with effect from 1 January 2019 and the three year MSR achievement is due in March 2022.

(2)	Appointed prescribed officer with effect from 1 April 2019 and the three year MSR achievement is due in March 2023.

---

---

---

•	Ordinary shares, par value 25 South African cents each (the “ordinary shares”);

•	A redeemable preference shares, par value 50 South African cents each (the “A preference shares”);

•	B redeemable preference shares, par value 1 South African cent each (the “B preference shares”); and

•	C redeemable preference shares of no par value (the “C preference shares”).

---

---

---

---

---

---

•

The State of Minas Gerais v. Mineração Serra Grande S.A. (MSG): In Brazil, MSG received a tax assessment in October 2003 from the State of Minas Gerais related to VAT on gold bullion transfers. The tax administrators rejected MSG’s appeal against the assessment. MSG is now appealing the dismissal of the case to the State Court of Minas Gerais. The assessment is approximately $12 million. Any possible payment by MSG would be set off by an indemnity from Kinross Gold Corporation (Kinross) of $7.5 million provided for as part of the company’s acquisition of Kinross’ interest in MSG in 2012. The matter is currently pending in the State Court of Minas Gerais.

•

Brazilian tax authorities v. AngloGold Ashanti Córrego do Sítio Mineração SA: AngloGold Ashanti’s subsidiaries in Brazil, including AngloGold Ashanti Córrego do Sítio Mineração SA (formerly AngloGold Ashanti Brasil Mineração Ltda), are involved in various disputes with the Brazilian tax authorities. These disputes date back to 2007 and involve federal tax assessments including income tax, royalties, social contributions, VAT and annual property tax. Collectively, the total possible amount involved across all disputes is approximately $25 million.

•

Colombian Tax Office (DIAN) v. AngloGold Ashanti Colombia S.A. (AGAC) and Gramalote Colombia Limited (Gramalote): In January 2013, AGAC received notice from the DIAN that it disagreed with the company’s tax treatment of certain items in the 2010 and 2011 income and equity tax returns. On 23 October 2013, AGAC received the official assessments from the DIAN which established that an estimated additional tax of $20 million will be payable if the tax returns are amended. Penalties and interest for the additional taxes may amount to $125 million. The company believes that the DIAN has applied the tax legislation incorrectly. AGAC subsequently challenged the DIAN’s ruling by filing lawsuits in March and April 2015, before the Administrative Court of Cundinamarca (the trial court for tax litigation). Closing arguments on the tax disputes were presented in February and June 2017. On 23 April 2018, the Administrative Court denied AGAC’s arguments with respect to the 2011 income tax litigation. AGAC subsequently appealed this judgment to the Supreme Court of Colombia. A final judgement could take several years. A determination by the Administrative Court with respect to the 2010 income tax litigation is still pending.

---

•

Ghanaian tax authorities v. AngloGold Ashanti (Ghana) Limited (AGAG): In Ghana, AGAG received tax assessments of $4.4 million as of 31 December 2018 in respect of the 2004-2014 tax years, following an audit by the Ghanaian tax authorities related to withholding taxes on payments to non-resident persons. AGAG raised objections with the Ghanaian tax authorities and believes that the withholding taxes were not properly assessed. On several occasions, most recently in 2017, AGAG met with the Commissioner-General of the Ghana Revenue Authority and provided its position in writing together with the relevant supporting documentation. AGAG has yet to receive a response from the Commissioner-General.

•

Silicosis and tuberculosis litigation: In August 2013, AngloGold Ashanti, along with several other mining companies, was served with a consolidated class action application. In May 2016, the High Court in Johannesburg ruled in favour of the applicants and found that there were sufficient common issues to certify two industry-wide classes: a Silicosis Class and a Tuberculosis Class. In May 2018, settlement of the consolidated class action litigation was reached. The settlement agreement in relation to this silicosis and tuberculosis class action came into effect on 10 December 2019, following the approval of the settlement by the High Court in Johannesburg in July 2019. As a result, a trust (Tshiamiso Trust) was established for a minimum of 13 years responsible for making payments to eligible beneficiaries. The amount of monetary compensation will vary depending on the nature and seriousness of the disease. As of 31 December 2019, AngloGold Ashanti has recorded a provision of $65 million to cover the estimated settlement costs and related expenditure of the silicosis litigation.

•	Santa María-Montecristo and La Colosa class action lawsuits: Class action lawsuits are pending in relation to each of AngloGold Ashanti Colombia S.A.’s (AGAC) Santa María-Montecristo and La Colosa projects. Each of the two lawsuits aims to stop exploration and mining in certain restricted areas affected by the projects due to environmental concerns.

•

Cortolima’s injunction against AngloGold Ashanti Colombia S.A. (AGAC): On 11 March 2013, Cortolima, a regional environmental authority in the Tolima department, issued a regulatory injunction against AGAC alleging, among other things, that in relation to certain of AGAC’s La Colosa mine design-related activities in the municipality of Piedras, AGAC engaged in drilling and other activities that could have negative effects on the environment. The injunction did not include any allegation that AGAC’s actions actually caused any environmental damages in Piedras. AGAC’s challenge of the injunction was unsuccessful before Cortolima. In August 2013, AGAC initiated legal proceeding before the Council of State of Colombia (the highest court for administrative matters) seeking annulment of the injunction as well as restoration of its rights to continue its

---

•

Piedras and Cajamarca popular consultations: In 2013, the local council of the city of Piedras, near the La Colosa project, organised a popular consultation to ban all mining activities in Piedras (Piedras popular consultation), the result of which was validated by the Administrative Court of Tolima as part of an administrative procedure. Although the Piedras popular consultation did not have an immediate impact on the La Colosa project (due to its distant location from the project), AGAC believes the Piedras popular consultation was in violation of national law in Colombia. In 2013, AGAC filed a ‘tutela’ action (a legal action alleging a violation of AGAC’s constitutional rights) with the Council of State of Colombia (the highest court for administrative issues). In 2014, AGAC’s ‘tutela’ action was dismissed by the Council of State for lack of standing on the grounds that AGAC did not have mining tenements in Piedras. In addition, in 2015, AGAC filed a request for annulment of the administrative acts adopted by the local authorities in furtherance of the results of the Piedras popular consultation, which was rejected by the Second Administrative Court of Ibagué. AGAC’s appeal of this ruling is currently pending before the Administrative Court of Tolima which will have to decide on this matter in light of the recent ruling of the Constitutional Court on popular consultations described below.

•

La Colosa Human Rights Litigation: In November 2014, the Personero (Ombudsman) of Ibagué, the capital of the Tolima department, filed a petition against the Colombian government before the Inter-American Commission on Human Rights (Commission), based in Washington, D.C., for alleged human rights violations protected by the American Convention on Human Rights (Convention) which has been ratified by Colombia along with many other Central and South American countries. The Commission has the power to refer a case to the Inter-American Court of Human Rights (Court) which is an autonomous judicial institution based in San José, Costa Rica whose purpose is the application and interpretation of the Convention. The petition alleges that the Colombian government denied justice to the Personero as a result of the failure of the Colombian judiciary to resolve the issues raised in two class actions filed by him before the local Colombian administrative courts within a reasonable period of time. Although AGAC is not a party to the suit, its outcome is nevertheless important to the development of the La Colosa project. The Commission currently has not accepted nor referred the case to the Court. If the case would be accepted or referred in the future, the Colombian government will have to defend itself against the lawsuit and will be bound by the findings of the Court. AGAC continues to regularly follow up with the Colombian government for updates.

•

Paramo Delimitation: In November 2016, the Colombian government issued Resolution 1987 delineating certain wetlands or moorlands as environmentally important protected areas, which designation includes certain areas in and around the La Colosa project. In these areas there are limitations, or in some instances outright bans, on mining and mining-related activities. These limitations and bans could potentially adversely impact the design, operations and production of the mining project at the La Colosa project. On 12 June 2017, AGAC filed suit against the Colombian Ministry of the Environment in the Administrative Court of Cundinamarca to annul Resolution 1987 on technical and other grounds. The lawsuit was admitted on 30 April 2019. The Ministry of the Environment, as defendant in this action, is expected to file its response to the annulment claim.

•

Zonte Metals: A Canadian junior mining company, Zonte Metals, filed applications for title to certain corridors, or small slivers of land, overlaying sections of the Gramalote project. The Secretary of Mines of Antioquia, the department in which the Gramalote project is located, denied the applications filed by Zonte Metals. However, Zonte Metals then filed a claim against the Colombian National Mining Agency (ANM) and the Antioquia Secretary of Mines before the Council of State of Colombia, by which it seeks to (i) revoke the resolution that denied its application and (ii) obtain the rights over the corridors requested in its application. The Council of State subsequently enjoined the Antioquia Secretary of Mines and Gramalote Colombia Limited (Gramalote) from progressing a pending application to integrate the disputed corridors with Gramalote’s tenement. The Antioquia Secretary of Mines has filed its response to the Zonte Metals claim, which includes arguments aligned with the interests and position of Gramalote. On 4 September 2017, the Council of State approved Gramalote’s request to be made an interested party to the lawsuit, but it rejected Gramalote’s request to join the Antioquia Secretary of Mines as a co-defendant on 28 August 2019. On 24 January 2019, the Council of State also re-affirmed that the Council of State is the competent judicial authority to hear the matter. The date for the first hearing is currently pending.

---

•

Pompora Treatment Plant Litigation: On 2 April 2013, AngloGold Ashanti (Ghana) Limited (AGAG) received a summons from Abdul Waliyu and 152 others in which the plaintiffs allege that they were or are residents of the Obuasi municipality or its suburbs and that their health has been adversely affected by emissions and/or other environmental impacts arising in connection with the current and/or historical operations of the Pompora Treatment Plant (PTP), which was decommissioned in 2000. The plaintiffs’ alleged injuries include respiratory infections, skin diseases and certain cancers. The plaintiffs subsequently did not timely file their application for directions but AGAG intends to allow some time to pass prior to applying to have the matter dismissed for want of prosecution. On 24 February 2014, executive members of the PTP (AGAG) Smoke Effect Association (PASEA), sued AGAG by themselves and on behalf of their members (undisclosed number) on grounds similar to those discussed above, as well as economic hardships resulting from the failure of their crops. This matter has been adjourned indefinitely. AGAG intends to allow some time to pass prior to applying to have the matter struck out for want of prosecution.

•

Mining and Building Contractors Limited: On 11 October 2011, AGAG terminated Mining and Building Contractors Limited’s (MBC) underground development agreement, construction on bulkheads agreement and diamond drilling agreement at Obuasi mine. The parties reached agreement on the terms of the separation and concluded a separation agreement on 8 November 2012. On 20 February 2014, AGAG was served with a demand issued by MBC claiming a total of $97 million. In December 2015, the proceedings were stayed in the Ghanaian High Court pending arbitration. In February 2016, MBC submitted the matter to arbitration. The arbitration panel has been constituted and held an arbitration management meeting to address initial procedural matters on 26 July 2019. The arbitration is currently pending.

•

Ghana Mining Licenses Litigation: In January 2019, AGAG and AngloGold Ashanti (Iduapriem) Limited (AAIL), along with other Ghanaian mining companies, were served with writs by two members of the Ghanaian Parliament seeking to invoke the jurisdiction of the Ghanaian Supreme Court (highest court in Ghana) for a declaration that the mining companies were not entitled to carry out any exploitation of minerals otherwise allowed under their relevant mining leases unless the leases had been timely ratified by the Parliament of Ghana. On 19 January 2019, the Ghanaian Attorney General filed its statement of case, agreeing with the position of the plaintiffs (that the mining leases required parliamentary ratification) and requesting that the Supreme Court order the mining companies to pay the Ghanaian government all revenue related to mining activities accrued during the time such mining leases were unratified. On 18 April 2019, AGAG and AAIL, in coordination with the other mining companies, filed their statement of case. The Supreme Court has not yet set a date for the first hearing to commence the case.

•

Government of Guinea (National Claim Commission) v. Société AngloGold Ashanti Goldfields de Guinée SA (SAG) : A national claim recovery commission established by the government of Guinea has demanded that SAG pay $43 million in dividends and penalties that would allegedly have been owed to the government of Guinea for the accounting years 2004 - 2007. SAG opposes the claim. Even though both parties had originally decided to submit their dispute to an independent audit firm to be appointed by a common accord, the independent audit firm was never appointed. In December 2010, the national claim recovery commission was disbanded and the matter was turned over to the Inspector General of the Ministry of Finance of Guinea. This matter has been dormant since it was handed over to the Inspector General.

•

Designated Matters under the Stock Purchase Agreement between AngloGold Ashanti and Newmont Corp.: On 19 October 2017, Newmont Corp. (formerly Newmont Mining Corp.) filed a lawsuit in the United States District Court for the Southern District of New York against AngloGold Ashanti and certain related parties, alleging that AngloGold Ashanti and such parties did not provide Newmont Corp. with certain information material to its purchase of the Cripple Creek & Victor Gold Mining Company (CC&V) in 2015 during the negotiation and sale process. On 18 March 2020, AngloGold Ashanti’s motions for summary judgment were granted and the case was dismissed.

•

Geita Gold Mining Limited (GGM): In January 2007, Jackson Manyelo and other plaintiffs filed a suit against GGM in the Mwanza High Court alleging that they were affected by blasting activities in the Katoma area carried out by GGM and had suffered damages in the amount of TZS9.6 billion (approximately $6 million). On 30 April 2015, the High Court issued a judgement in favour of GGM. In 2016, plaintiffs appealed to the Court of Appeal, where the matter is pending.

---

•

Geita Gold Mining Limited (GGM) and Samax Resources Limited (Samax) v. Government of Tanzania: On 13 July 2017, GGM and Samax filed a notice of arbitration against the government of Tanzania arising from the enactment by the government of certain legislation that purports to make a number of changes to the operating environment of Tanzania’s extractive industries, including mining. The notice of arbitration was submitted in accordance with Article 12 of the Agreement for the Development of a Gold Mine at Geita, Mwanza between the government of Tanzania and each of GGM and Samax (the MDA), and under the 1976 Arbitration Rules of the United Nations Commission on International Trade Law (UNCITRAL). The Arbitral Tribunal has been duly constituted. On 15 January 2019, the parties requested that the arbitral proceedings be stayed until 12 July 2019 in order to afford the parties the opportunity to achieve an amicable resolution of the dispute. A further extension of the stay until 13 January 2020 was subsequently granted. On 29 January 2020, the Arbitral Tribunal granted another extension to stay the arbitral proceedings until 13 May 2020 on the basis that this stay is final, unless there are principled grounds for a further stay.

•

Arbitration under the United Kingdom-Tanzania Bilateral Investment Treaty (UK-Tanzania BIT) : Unrelated to the arbitration proceedings under the MDA described above, on 4 September 2017, GGM and Samax, together with Cluff Oil Limited and Cluff Mineral Exploration Limited, notified the government of Tanzania in writing that the Tanzanian government’s conduct amounted to a breach of its commitments under the UK-Tanzania BIT. This notice triggered a ‘cooling-off’ period under the UK-Tanzania BIT, pursuant to which the parties had six months to achieve an amicable resolution to their dispute. Following the expiry of the ‘cooling off’ period on 4 March 2018, GGM, Samax, Cluff Oil Limited and Cluff Mineral Exploration Limited are now entitled to submit their dispute with the government of Tanzania to ICSID arbitration in accordance with the terms of the UK-Tanzania BIT to the extent that they may deem this necessary.

•

Public Civil Action between Mineração Serra Grande S.A. (MSG) and the Goiás State Public Prosecutor's Office (Prosecutor) : On 28 August 2019, the Prosecutor filed a public civil action against MSG in the local court of Crixás (Court) arguing that the Serra Grande tailings dam should be deactivated and decommissioned due to its size and upstream construction method. The Prosecutor requested the Court to grant an injunction ordering MSG to, inter alia, decommission the tailings dam, including complete removal of tailings material, by 15 September 2022. Further, the Prosecutor requested that a daily penalty of approximately $245,000 be imposed for MSG’s failure to comply with such injunction. MSG submitted its defence on 27 September 2019 and contends that it has not violated any Brazilian laws or regulations applicable to operations of the Serra Grande tailings dam. On 10 February 2020, the Court granted an injunction in respect of a number of the requests made by the Prosecutors. In line with the legal requirements of ANM Resolution No. 13/19, the injunction ordered the deactivation of the Serra Grande tailings dam by 15 September 2021, but did not include requirements to decommission the tailings dam, or to conduct complete removal of tailings material, by 15 September 2022. On 20 February 2020, MSG filed a motion for clarification in relation to certain items of the Court’s decision. This matter is ongoing.

•

Public Civil Action between AngloGold Ashanti Córrego do Sítio Mineração SA (AGA Mineração) and the Minas Gerais State Public Prosecutor's Office (Prosecutor): On 6 March 2020, the Prosecutor filed a public civil action against AGA Mineração in the local court of Sabará (Court) alleging a violation of Minas Gerais Law No. 23.291/19, which was adopted in February 2019. Article 12 of this law prohibits the grant of an environmental license for construction, installation, expansion or raising of a tailings storage facility if the “dam break” studies identify communities that are located in the self-rescue zone. On 21 February 2020, the state of Minas Gerais approved AGA Mineração’s permit to operate the Cuiabá tailings dam following the determination by the Minas Gerais’ Attorney’s Office that Law No. 23.291/19 does not apply to tailings storage facilities already in operation. In its lawsuit, the Prosecutor requested the Court to grant an injunction ordering the suspension of AGA Mineração’s operational permit for the Cuiabá tailings dam on the grounds that it was issued in violation of this law. On 12 March 2020, AGA Mineração presented its arguments in court challenging the requested injunction. This matter is ongoing.

---

---

8B.	SIGNIFICANT CHANGES

---

9A.	OFFER AND LISTING DETAILS

9B.	PLAN OF DISTRIBUTION

9C.	MARKETS

9D.	SELLING SHAREHOLDERS

9E.	DILUTION

9F.	EXPENSES OF THE ISSUE

---

---

---

•

The A preference shares shall confer the right, on a winding-up of the company, in priority to any payment in respect of the ordinary shares in the capital of the company then issued, but after any payment in respect of the B preference shares and the C preference shares in the capital of the company then issued, to receive only so much of the net proceeds from the disposal of the assets relating to the Moab Lease Area as is then available for distribution;

•

The B preference shares shall confer the right, on a winding-up of the company in priority to any payment in respect of the ordinary shares, the A preference shares and the C preference shares then in issue, to receive only so much of the net proceeds from the disposal of the assets relating to the Moab Lease Area as is available for distribution but not exceeding a return per B preference share of the capital paid-up thereon and any share premium paid on the issue of the B preference shares outstanding at that time;

•

The C preference shares shall confer the right, on a winding-up of the company, ranking after and following payment of the holders of the B preference shares, but in priority to any payment in respect of the ordinary shares and the A preference shares in the capital of the company then issued, to receive only so much of the net proceeds from the disposal of the assets relating to the Moab Lease Area as is available for distribution but not exceeding a return per C preference share of the capital paid-up on the issue of the C preference shares outstanding at that time;

•	The A, B and C preference shares shall not be entitled to any participation, on a winding-up, in any of the surplus funds of the company in any other manner arising; and

---

•	the ordinary shares confer the right to participate equally in any surplus arising from the liquidation of all other assets of AngloGold Ashanti.

---

---

---

---

---

---

---

---

•	are only obligated to take the actions specifically set forth in the Deposit Agreement without negligence or bad faith;

•	are not liable if either of AngloGold Ashanti or The Bank of New York Mellon is prevented or delayed by law or circumstances beyond their control from performing their obligations under the Deposit Agreement;

•	are not liable if either of AngloGold Ashanti or The Bank of New York Mellon exercises discretion permitted under the Deposit Agreement;

•	are not liable for the inability of any holder of ADSs to benefit from any distribution on deposited securities that is not made available to holders of ADSs under the terms of the Deposit Agreement, or for any special, consequential or punitive damages for any breach of the terms of the Deposit Agreement;

•	have no obligation to become involved in a lawsuit or other proceeding related to the ADSs or the Deposit Agreement on behalf of the holders of ADSs or on behalf of any other party;

---

•	may rely on advice of or information from legal counsel, accountants, and any persons presenting AngloGold Ashanti’s ordinary shares for deposit, any registered holder or any other person believed by AngloGold Ashanti in good faith to be competent to give such advice or information; and

•	pursuant to the Deposit Agreement agree to indemnify each other under certain circumstances.

•	payment of stock transfer or other taxes or other governmental charges and transfer or registration fees charged by third parties for the transfer of any ordinary shares or other deposited securities;

•	production of satisfactory proof of the identity and genuineness of any signature or other information it deems necessary; and

•	compliance with regulations it may establish, from time to time, consistent with the Deposit Agreement, including presentation of transfer documents.

•	when temporary delays arise because: (1) either AngloGold Ashanti or The Bank of New York Mellon have closed AngloGold Ashanti’s transfer books; (2) the transfer of the ordinary shares is blocked in connection with voting at a general meeting of shareholders; or (3) AngloGold Ashanti is paying a dividend on the ordinary shares;

•	when ADS holders seeking to withdraw the ordinary shares are liable for unpaid fees, taxes and similar charges; or

•	when it is necessary to prohibit withdrawals in order to comply with any laws or governmental regulations that apply to ADSs or to the withdrawal of the ordinary shares or other deposited securities.

•

before or at the time of the pre-release, the person to whom the pre-release is being made must represent to The Bank of New York Mellon in writing that it or its customer: (a) owns the ordinary shares or ADSs to be remitted, (b) assigns all beneficial rights, title and interest in such ADSs or ordinary shares, as the case may be, to The Bank of New York Mellon in its capacity as the depositary and for the benefit of the ADS holders, and (c) will not take any action with respect to such ADSs or ordinary shares, as the case may be, that is consistent with the transfer of beneficial ownership (including, without the consent of The Bank of New York Mellon, disposing of such ADSs or ordinary shares, as the case may be) other than satisfaction of such pre-release;

•	the pre-release must be fully collateralized with cash, US government securities, or other collateral that The Bank of New York Mellon considers appropriate; and

•

The Bank of New York Mellon must be able to close out the pre-release on not more than five business days’ notice. Each pre-release will be subject to any further indemnities and credit regulations that The Bank of New York Mellon deems appropriate. The Bank of New York Mellon will normally limit the number of AngloGold Ashanti ordinary shares not deposited but represented by ADSs outstanding at any time as a result of pre-release so that they do not exceed 30 percent of the ordinary shares deposited, although The Bank of New York Mellon may disregard this limit from time to time, if it thinks it is appropriate to do so.

---

---

---

---

---

	Taxation of dividends

---

	Taxation of dispositions

	Passive foreign investment company considerations

---

	US information reporting and backup withholding

	Information with respect to foreign financial assets

---

10F.	DIVIDENDS AND PAYING AGENTS

10G.	STATEMENT BY EXPERTS

10I.	SUBSIDIARY INFORMATION

---

•	Safeguarding the group’s core earnings stream from its major assets through the effective control and management of gold and other commodity price risk, foreign exchange risk and interest rate risk;

•	Effective and efficient usage of credit facilities in both the short- and long-term through the adoption of reliable liquidity management planning and procedures;

•	Ensuring that investment and hedging transactions are undertaken with creditworthy counterparts; and

•	Ensuring that all contracts and agreements related to financial risk management activities are co-ordinated and consistent throughout the group and comply where necessary with all relevant regulatory and statutory requirements.

---

•

Contracts that meet the criteria for hedge accounting are designated as hedging instruments, hedging the variability of forecasted cash flows from the sale of production into the spot market and from capital expenditure denominated in a foreign currency and are classified as cash flow hedges. Cash flow hedge losses pertaining to capital expenditure of $1 million as at 31 December 2019 (2018: $1 million) are expected to be reclassified from accumulated other comprehensive income and recognised as an adjustment to depreciation expense over the life of the Serra Grande mine.

•	All other derivatives are measured at their estimated fair value, with the changes in estimated fair value at each reporting date reported as gains or losses on derivatives in earnings in the period in which they occur.

---

---

(1)	Included in other commodity contracts are amounts transferred to held for sale liabilities.

---

12A.	DEBT SECURITIES

12B.	WARRANTS AND RIGHTS

12C.	OTHER SECURITIES

12D.	AMERICAN DEPOSITARY SHARES

12D.3.	DEPOSITARY FEES AND CHARGES

(1)	These fees are typically paid to the Depositary by the brokers on behalf of their clients receiving the newly-issued ADSs from the Depositary and by the brokers on behalf of their clients delivering the ADSs to the Depositary for cancellation. The brokers in turn charge these transaction fees to their clients.

(2)	In practice, the Depositary has not collected these fees. If collected, such fees are offset against the related distribution made to the ADR holder.

12D.4.	DEPOSITARY PAYMENTS FOR 2019

---

ITEM 13:	DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES

---

---

(a)

Disclosure Controls and Procedures: As of 31 December 2019, (the “Evaluation Date”), the company, under the supervision and with the participation of its management, including the chief executive officer and chief financial officer has evaluated the effectiveness of the company’s disclosure controls and procedures (as defined in Rules 13a - 15(e) and 15d - 15(e) under the Securities Exchange Act of 1934, as amended (“the Exchange Act”)). Based on such evaluation, the chief executive officer and chief financial officer have concluded that, as of the Evaluation Date, the company’s disclosure controls and procedures are effective, and are reasonably designed to ensure that information required to be disclosed by the company in reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the Securities and Exchange Commission. These disclosure controls and procedures include without limitation, controls and procedures designed to ensure that information required to be disclosed by the company in reports that it files or submits under the Exchange Act is accumulated and communicated to the company’s management, including its chief executive officer and chief financial officer, as appropriate to allow timely decisions regarding disclosure.

(b)

Management’s Annual Report on Internal Control over Financial Reporting: Management is responsible for establishing and maintaining adequate internal control over financial reporting for the company, as defined in the Exchange Act Rule 13a - 15(f) and 15d -15(f). The company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of the company’s financial statements for external purposes in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board.

•	Pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect transactions and dispositions of the assets of the company;

•	Provide reasonable assurance that the transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of management and the Directors of the company; and

•	Provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

(c)	Changes in Internal Control over Financial Reporting: The Company maintains a system of internal control over financial reporting that is designed to provide reasonable assurance that its books and records accurately reflect transactions and that established policies and procedures are followed.

(d)	Attestation Report of the Registered Public Accounting Firm: The Company’s independent registered accounting firm, Ernst & Young Inc., has issued an attestation report on the effectiveness of the company’s internal control over financial reporting. This report appears below.

---

---

---

ITEM 16A:	AUDIT COMMITTEE FINANCIAL EXPERT

---

ITEM 16B:	CODE OF ETHICS AND WHISTLE-BLOWING POLICIES

---

ITEM 16C:	PRINCIPAL ACCOUNTANT FEES AND SERVICES

(1)	The Audit fees consist of fees billed for the annual audit services engagement and other audit services, which are those services that only the external auditor reasonably can provide, and include the Company audit; statutory audits; attest services; and assistance with and review of documents filed with the SEC.

(2)	Audit-related fees consist of fees billed for assurance and related services.

(3)	Tax fees include fees billed for tax advice and tax compliance services.

(4)	All other fees include non-audit services.

ITEM 16D:	EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES

ITEM 16G:	CORPORATE GOVERNANCE

ITEM 16H:	MINE SAFETY DISCLOSURE

---

ITEM 17:	FINANCIAL STATEMENTS

---

ITEM 18:	FINANCIAL STATEMENTS

---

---

---

---

---

---

---

---

---

(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 ( 2018 : $10m ; 2017 : $11m ), surplus on equity transaction of joint venture of $36m ( 2018 : $36m ; 2017 : $36m ), equity items for share-based payments of $39m ( 2018 : $48m ; 2017 : $75m ) and other reserves.

(2)	Included in accumulated losses are retained earnings totalling $378m ( 2018 : $283m ; 2017 : $287m ) arising at the equity accounted investments and certain subsidiaries which may not be remitted without third party consent.

---

•	Leases with a remaining contract period of less than 12 months will not be recorded on the statement of financial position and the lease payments will be expensed in the income statement on a straight-line basis.

•	The right-of-use asset is based on the lease liability recognised.

•	The short-term lease exemption - leases with a duration of one year or less will be expensed in the income statement on a straight-line basis.

•	The low value lease exemption - the group has elected to take the low value exemption with a value of $10k for the individual leased asset value. Further, the group has added an exception within its accounting policy to not capitalise leases with a net present value of $250 k based on an IAS 1 materiality assessment.

•	Exclusion of initial direct costs for the measurement of the right of use asset at the date of initial application.

•	Use of hindsight in determining the lease term where the contract contains options to extend or terminate the lease.

•	Other expenses (income); and

•	Separate line item(s) on the face of the income statement depending on materiality.

---

---

•	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.

---

---

•	deferred tax asset: $105m ( 2018 : nil ; 2017 : $4m );

•	deferred tax liability: $241m ( 2018 : $315m ; 2017 : $363m );

•	taxation liability: $72m ( 2018 : $60m ; 2017 : $53m ); and

•	taxation asset: $10m ( 2018 : $6m ; 2017 : $3m ), included in trade, other receivables and other assets.

---

•	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.

•	silicosis prevalence rates;

•	estimated settlement per claimant;

•	benefit take-up rates;

•	disease progression rates;

•	timing of cashflows; and

•	discount rate.

---

---

---

•	buildings up to life of mine;

•	plant and machinery up to life of mine;

•	equipment and motor vehicles up to five years ;

•	computer equipment up to three years ; and

•	leased assets over the shorter of the period of the lease and the useful life of the leased asset.

---

•	Costs on greenfields sites, being those where the group does not have any mineral deposits which are already being mined or developed under the planned method of extraction, are expensed as incurred until the group is able to demonstrate that future economic benefits are probable, which generally will be the establishment of proved and probable Ore Reserve at this location;

•

Costs on brownfields sites, being those adjacent to mineral deposits which are already being mined or developed under the planned method of extraction, are expensed as incurred until the group is able to demonstrate that future economic benefits are probable, which generally will be the establishment of increased inclusive proved and probable Ore Reserve, after which the expenditure is capitalised as a mine development cost; and

•	Costs relating to extensions of mineral deposits, which are already being mined or developed, including expenditure on the definition of mineralisation of such mineral deposits, are capitalised as a mine development cost.

---

•	fixed lease payments (including in-substance fixed payments), less any lease incentives;

•	variable lease payments that depend on an index or rate, initially measured using the index or rate at the commencement date;

•	the amount expected to be payable by the lessee under residual value guarantees;

•	the exercise price of purchase options, if the lessee is reasonably certain to exercise the options; and

•	payments of penalties for terminating the lease, if the lease term reflects the exercise of an option to terminate the lease.

•	the lease term has changed or there is a change in the assessment of exercise of a purchase option, in which case the lease liability is remeasured by discounting the revised lease payments using a revised discount rate.

•	the lease payments change due to changes in an index or rate or a change in expected payment under a guaranteed residual value, in which cases the lease liability is remeasured by discounting the revised lease payments using the initial discount rate (unless the lease payments change is due to a change in a floating interest rate, in which case a revised discount rate is used).

•	a lease contract is modified and the lease modification is not accounted for as a separate lease, in which case the lease liability is remeasured by discounting the revised lease payments using a revised discount rate.

•	Periods covered by an option to extend the lease if AngloGold Ashanti is reasonably certain to make use of that option; and / or

•	Periods covered by an option to terminate the lease, if AngloGold Ashanti is reasonably certain not to make use of that option.

---

•	metals in process are valued at the average total production cost at the relevant stage of production;

•	gold doré/bullion is valued on an average total production cost method;

•	ore stockpiles are valued at the average moving cost of mining and stockpiling the ore. Stockpiles are classified as a non-current asset where the stockpile exceeds current processing capacity;

•	by-products, which include uranium oxide, silver and sulphuric acid, are valued using an average total production cost method;

•	mine operating supplies are valued at average cost; and

•	heap leach pad materials are measured on an average total production cost basis.

---

---

•	refined gold;

•	by-products including silver and sulphuric acid; and

•	doré bars.

•	material either quantitatively or qualitatively, or both;

•	non-recurring;

•	not directly related to current operating or financing activities ; and

•	not disclosed separately on the face of the income statement,

---

---

---

---

(1)	Includes equity-accounted investments.

(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, refer to the group income statement.

(3)	Total assets include allocated goodwill of $108m ( 2018 : $108m ; 2017 : $119m ) for Australia and $8m ( 2018 : $8m ; 2017 : $8m ) for Americas (note 17). The South African segment includes assets held for sale of $581m ( 2018 : nil ; 2017 : $348m ) and the Continental Africa segment includes assets held for sale of $20m (2018: nil ; 2017: nil ).

(4)	In 2019, pre-tax impairments and derecognition of assets of $556m were accounted for in South Africa ( 2018 : $98m ; 2017 : $294m ), Continental Africa $2m ( 2018 : $5m ; 2017 : nil ) and the Americas $1m ( 2018 : $1m ; 2017 : nil ).

(5)	Non-current assets exclude financial instruments and deferred tax assets.

---

---

---

•	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.

•	US $200m in cash payable at closing; and

•	Two components of deferred consideration, payable as follows:

1.	US $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.	US $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.

•	Approval from the South African Competition Authorities pursuant to the South African Competition Act No 89 of 1998; and

•	Section 11 approval from the Minister of Mineral Resources and Energy pursuant to the MPRDA in relation to West Wits Mineral Right.

---

•	US $50m (US $25m each to AngloGold Ashanti and IAMGOLD) upon the fulfillment or waiver of all conditions precedent and closing of the transaction;

•	Up to a further US $5m (US $2.5m each to AngloGold Ashanti and IAMGOLD), payable 8 days after closing, to the extent that the cash balance of Sadiola at closing is greater than an agreed amount;

•	US $25m (US $12.5m each to AngloGold Ashanti and IAMGOLD) upon the production of the first 250,000 ounces from the Sadiola Sulphides Project (SSP); and

•	US $25m (US $12.5m each to AngloGold Ashanti and IAMGOLD) upon the production of a further 250,000 ounces from the SSP.

---

---

---

---

---

---

---

---

---

(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 but were not included as the effect was anti-dilutive were 517,186 ( 2018 : nil ; 2017 : 576,426 )

---

---

---

(1)	Transfers and other movements include amounts from deferred stripping, change in estimates of decommissioning assets, asset reclassifications and derecognition of assets.

(2)	Included in the amounts for mine infrastructure are assets held under finance leases with a net book value of nil (2018: $45 m; 2017: $56m ).

(3)	Included in the amounts for land and buildings are assets held under finance leases with a net book value of nil (2018: $3 m; 2017: $6 m).

(4)	Assets of $9 m (2018: $10 m; 2017: $11m ) have been pledged as security.

(5)	I mpairment and derecognition of assets is assessed as follows:

•	the gold price assumption represents management’s best estimate of the future price of gold. A long-term real gold price of $1,300 /oz (2018: $1,239 /oz) is based on a range of economic and market conditions that will exist over the remaining useful life of the assets.

•	proved and probable Ore Reserve;

•	value beyond proved and probable reserves (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 2018. At 31 December 2019, the derived group WACC was 8.1% (real post-tax) which is 20 basis points lower than in 2018 of 8.3% , 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 1 year to 39 years ; and

•	variable operating cash flows are increased at local Consumer Price Index rates.

---

---

---

---

(1)	Transfers and other movements include amounts from asset reclassifications and amounts written off.

---

(1)	The value in use of the CGU is $363 m in 2019 (2018: $750 m; 2017: $402 m).

---

---

---

(1)	AngloGold Ashanti Limited has a 50% interest in Kibali (Jersey) Limited (Kibali) which holds our effective 45% interest in Kibali Goldmines S.A.

---

---

---

---

(1)	The amount of the write-down of ore stockpiles, metals in process, by-products and mine operating supplies to net realisable value, and recognised as an expense during the year in other expenses and cost of sales is $4m (2018: $19m ; 2017: $17m ).

---

---

---

---

---

---

(1)	The change in estimates is attributable to changes in discount rates due to changes in global economic assumptions and changes in mine plans resulting in a change in cash flows and changes in design of tailings storage facilities and in methodology following requests from the environmental regulatory authorities. These provisions are expected to unwind beyond the end of the life of mine.

(2)	Other provisions include the long-term provision for the silicosis class action litigation of $54m (2018: $47m ; 2017: $63m ), the short-term portion of $11m (2018; $16m ; 2017: nil ) has been included in trade and other payables.

---

---

---

---

---

•	The acquisition of all or part of AngloGold Ashanti; or

•	A number of shareholders holding less than thirty-five percent of the company’s issued share capital consorting to gain a majority of the board and make management decisions; and

•	The contracts of Executive Committee members are either terminated or their role and employment conditions are curtailed.

---

(1)	Salary denominated in USD/AUD for global roles and responsibilities converted to ZAR on payment date.

(2)	Other benefits include health care, group personal accident, disability, funeral cover, accommodation allowance, airfare and surplus leave encashed. Surplus leave days accrued are automatically encashed unless work requirements allow for carry over.

(3)	The fair value of the DSP comprises of a cash bonus and share awards for the year ended 31 December 2019 with the cash bonus payable in February 2020 and the share awards allocated in February 2020, vesting over a 5 -year period in equal tranches.

(4)	The fair value of the CSLTIP granted in 2017 with a 3 -year performance period ended 31 December 2019. The awards vested on 1 March 2020.

(5)	PD Chenard was awarded a sign-on award of ZAR 19.36m at start date,1 April 2019, of which ZAR 6.33m will be settled in cash with 50% payable upfront, the balance on 1 April 2020 and ZAR 13.03m will be settled in shares to vest over a 2 year period in equal tranches in accordance with the JSE Listing requirements.

(6)	All salary payments (including salary, performance related payments, pension and other benefits) for CE Carter (retired 28 March 2019), DC Noko (retired 28 February 2019) and CB Sheppard (retired 15 March 2019) are pro-rated in accordance with their retirement dates.

(7)	All salary payments (including salary, performance related payments, pension and other benefits) for PD Chenard are pro-rated in accordance with his start date, 1 April 2019.

(8)	Convenience conversion to USD at the year-to-date average exchange rate of $1:R 14.445 (2018: $1:R 13.247 ; 2017 $1:R 13.301 ).

---

(1)	The fair value of the DSP comprises of a cash bonus and share awards for the year ended 31 December 2019 with the cash bonus payable in February 2020 and the share awards allocated in February 2020, vesting over a 5 -year period in equal tranches.

(2)	The fair value of the CSLTIP granted in 2017 with a 3 -year performance period ended 31 December 2019. The awards vested on 1 March 2020.

(3)	PD Chenard was awarded a sign-on award of ZAR 19.36m at start date,1 April 2019, of which ZAR 6.33m will be settled in cash with 50% payable upfront, the balance on 1 April 2020 and ZAR 13.03m will be settled in shares to vest over a 2 year period in equal tranches in accordance with the JSE Listing requirements.

(4)

Reflects the sum of all the grant fair value, the sum of all the share price movements since grant to vesting date and the sum of all the vesting fair value for the vested CSLTIP 2016, vested BSP 2017 and 2018, vested CIP 2017 and 2018 vested sign-on share awards and difference in the currency movements for the vested sign-on cash settled award. These values include awards vested early for CE Carter, DC Noko and CB Sheppard in accordance with their retirement dates as per as per scheme rules.

(5)	Convenience conversion to USD at the year-to-date average exchange rate of $1:R 14.445 (2018: $1:R 13.247 ; 2017: $1:R 13.301 ).

---

(1)	The fair value of granted awards represents the value of awards, calculated using a five -business day volume weighted average share price prior to grant date. Closed scheme, no awards granted in 2019.

(2)	The fair value of vested awards represents the value deemed received on settlement date.

(3)	The fair value of unvested awards is calculated using the closing share price as at 31 December.

(4)	Includes awards vested early and lapsed for CE Carter, DC Noko and CB Sheppard in accordance with their retirement dates as per scheme rules.

---

(1)	The fair value of granted awards represents the value of awards, calculated using a five -business day volume weighted average share price prior to grant date. Closed scheme, no awards granted in 2019.

(2)	The fair value of vested awards represents the value deemed received on settlement date.

(3)	The fair value of unvested awards is calculated using the closing share price as at 31 December.

(4)	Includes awards vested early and lapsed for CE Carter, DC Noko and CB Sheppard in accordance with their retirement dates as per scheme rules.

---

(1)	The fair value of granted awards represents the value of awards, calculated using the original investment share price on purchase date. Closed scheme, no awards granted in 2019.

(2)	The fair value of matched awards represents the value received on settlement dates.

(3)	The fair value of unvested awards is calculated using the closing share price as at 31 December.

(4)	These awards lapsed for GJ Ehm in line with the scheme rules.

(5)	Includes awards vested early for DC Noko and CB Sheppard in accordance with their retirement dates as per scheme rules.

(1)	The fair value of granted awards represents the value of awards, calculated using a five -business day volume weighted average share price prior to grant date. The share awards were granted on start date and will vest over a 2 -year period in equal tranches in accordance with the JSE Listing requirements.

(2)	The fair value of KPM Dushnisky's vested awards represents the value received on settlement dates, 20 and 21 February 2019.

(3)	The fair value of unvested awards is calculated using the closing share price as at 31 December.

---

(1)	The fair value of granted awards represents the value of awards, calculated using a five -business day volume weighted average share price prior to grant date, 21 February 2019.

(2)	The fair value of vested awards represents the value deemed received on settlement date.

(3)	The fair value of unvested awards is calculated using the closing share price as at 31 December.

---

(1)	Directors' compensation is disclosed in US dollars.

(2)	Director's travel allowance includes travel for site induction.

(3)	Directors resigned effective 9 May 2019.

(4)	Director joined on 1 June 2019.

---

(1)	Held on the New York stock exchange as American Depositary Shares (ADSs) ( 1 ADS is equivalent to 1 ordinary share)

(2)	Held on the Australian stock exchange as CHESS Depositary Receipts ( 5 CDIs are equivalent to 1 ordinary share)

---

---

---

(1)

Litigation - On 11 October 2011, AngloGold Ashanti (Ghana) Limited (AGAG) terminated Mining and Building Contractors Limited’s (MBC) underground development agreement, construction on bulkheads agreement and diamond drilling agreement at Obuasi mine. The parties reached agreement on the terms of the separation and concluded a separation agreement on 8 November 2012. On 20 February 2014, AGAG was served with a demand issued by MBC claiming a total of $97m . In December 2015, the proceedings were stayed in the High Court pending arbitration. In February 2016, MBC submitted the matter to arbitration. The arbitration panel has been constituted and on 26 July 2019 held an arbitration management meeting to address initial procedural matters.

(2)

Litigation - AGAG received a summons on 2 April 2013 from Abdul Waliyu and 152 others in which the plaintiffs allege that they were or are residents of the Obuasi municipality or its suburbs and that their health has been adversely affected by emission and/or other environmental impacts arising in connection with the current and/or historical operations of the Pompora Treatment Plant (PTP), which was decommissioned in 2000. The plaintiffs’ alleged injuries include respiratory infections, skin diseases and certain cancers. The plaintiffs subsequently did not timely file their application for directions. On 24 February 2014, executive members of the PTP (AGAG) Smoke Effect Association (PASEA), sued AGAG by themselves and on behalf of their members (undisclosed number) on grounds similar to those discussed above, as well as economic hardships as a result of constant failure of their crops. This matter has been adjourned indefinitely. In view of the limitation of current information for the accurate estimation of a liability, no reliable estimate can be made for AGAG’s obligation in either matter.

(3)

Litigation - On 19 October 2017, Newmont Mining Co. filed a lawsuit in the United States District Court for the Southern District of New York against AngloGold Ashanti and certain related parties, alleging that AngloGold Ashanti and such parties did not provide Newmont with certain information material to its purchase of the Cripple Creek & Victor Gold Mining Company in 2015 during the negotiation- and-sale process. During November 2019, the AngloGold Ashanti defendants filed two motions for summary judgement with the Court, requesting the dismissal of all causes of actions against all defendants.  On 18 March 2020, the Court granted the motions, dismissed all causes of actions and ordered the case to be closed. Newmont Mining Co. has 30 days from the date of the order to file an appeal to the Court's decision.

(4)

Groundwater pollution - AngloGold Ashanti has identified groundwater contamination plumes at certain of its operations, which have occurred primarily as a result of seepage from mine residue stockpiles. Numerous scientific, technical and legal studies have been undertaken to assist in determining the magnitude of the contamination and to find sustainable remediation solutions. The group has instituted processes to reduce future potential seepage and it has been demonstrated that Monitored Natural Attenuation (MNA) by the existing environment will contribute to improvements in some instances. Furthermore, literature reviews, field trials and base line modelling techniques suggest, but have not yet proven, that the use of phyto-technologies can address the soil and groundwater contamination. Subject to the completion of trials and the technology being a proven remediation technique, no reliable estimate can be made for the obligation.

(5)

Deep groundwater pollution - The group has identified potential water ingress and future pollution risk posed by deep groundwater in certain underground mines in Africa. Various studies have been undertaken by AngloGold Ashanti since 1999 to understand this potential risk.  In South Africa, due to the interconnected nature of mining operations, any proposed solution needs to be a combined one supported by all the mines located in these gold fields. As a result, the Mineral and Petroleum Resources Development Act (MPRDA) requires that the affected mining companies develop a Regional Mine Closure Strategy to be approved by the Department of Mineral Resources. In view of the limitation of current information for the accurate estimation of a liability, no reliable estimate can be made for the obligation.

---

•	safeguarding the group’s core earnings stream from its major assets through the effective control and management of gold price risk, other commodity risk, foreign exchange risk and interest rate risk;

•	effective and efficient usage of credit facilities in both the short and long-term through the adoption of reliable liquidity management planning and procedures;

•	ensuring that investment and hedging transactions are undertaken with creditworthy counterparties; and

•	ensuring that all contracts and agreements related to risk management activities are co-ordinated, consistent throughout the group and that they comply where necessary with all relevant regulatory and statutory requirements.

---

---

Level 1:	quoted prices (unadjusted) in active markets for identical assets or liabilities;

Level 2:	inputs other than quoted prices included in level 1 that are observable for the asset or liability, either directly (as prices) or indirectly (derived from prices); and

Level 3:	inputs for the asset or liability that are not based on observable market data (unobservable inputs).

---

---

---

---

---

---

---

---

---

---

---

---

---

---

---

---

---

---

---

---

---

(1)	Comparatives for loans and borrowings that relate to the KAS lease have been reclassified to lease liabilities to allow for consistency.

---

---

(1)	Comparatives for loans and borrowings that relate to the KAS lease have been reclassified to lease liabilities to allow for consistency.

---

---

1.	STATEMENT OF DIRECTORS' RESPONSIBILITIES

---

---

(a)	Reliance on previous assessments on whether leases are onerous as opposed to preparing an impairment review under IAS 36 as at the date of initial application; and

(b)	Applied the exemption not to recognise right-of-use assets and liabilities for leases with less than 12 months of lease term remaining as of the date of initial application.

(c)	Used hindsight when determining the lease term for contracts containing options to extend or terminate the lease.

•	The Group to determine whether uncertain tax treatments should be considered separately, or together as a group, based on which approach provides better predictions of the resolution;

•	The Group to determine if it is probable that the tax authorities will accept the uncertain tax treatment; and

•

If it is not probable that the uncertain tax treatment will be accepted, measure the tax uncertainty based on the most likely amount or expected value, depending on whichever method better predicts the resolution of the uncertainty. This measurement is required to be based on the assumption that each of the tax authorities will examine amounts they have a right to examine and have full knowledge of all related information when making those examinations. A material impact is not expected from the application of the interpretation. The adoption of IFRIC 23 did not result in any material change to the Group’s tax position from the beginning of the earliest period presented.

---

---

---

---

---

•	It is probable that the future economic benefit (improved access to the ore body) associated with the stripping activity will flow to the Group;

•	The Group can identify the component of the ore body for which access has been improved; and

•	The costs relating to the stripping activity associated with that component or components can be measured reliably.

---

---

---

•	Amortised cost;

•	Fair value through other comprehensive income (FVTOCI) - equity instruments; or

•	FVTPL.

---

---

---

---

---

---

3.	KEY ACCOUNTING ESTIMATES AND JUDGEMENTS

---

3.	KEY ACCOUNTING ESTIMATES AND JUDGEMENTS

•	The quantities of the proven and probable reserves and certain limited ore resources being those for which there is a high degree of confidence in economic extraction;

•	Future production levels;

•	Future commodity prices; including oil forecast at US$70bbl (2018: US$70bbl) (2017: US$70bbl);

•	Future cash cost of production and capital expenditure associated with extraction of the reserves and certain limited ore resources in the approved mine plan;

•	Future gold prices - a gold price curve was used for the impairment calculations starting at a US$1 350/oz gold price (2018: US$1 250oz) (2017: US$1 250/oz). A gold price of US$1 350/oz was used for the 2020 year, with the price assumption remaining level for years thereafter at US$1 300/oz

•	A real discount rate equivalent to 8.67% pre-tax (2018: nominal 8.6%) (2017: nominal 8.2%); and

•	An inflation rate of 2.0% (2018: 2.5%) (2017: 2.5%).

---

3.	KEY ACCOUNTING ESTIMATES AND JUDGEMENTS (CONTINUED)

---

3.	KEY ACCOUNTING ESTIMATES AND JUDGEMENTS (CONTINUED)

---

3.	KEY ACCOUNTING ESTIMATES AND JUDGEMENTS (CONTINUED)

---

---

---

---

---

---

---

---

---

---

---

---

---

---

---

---

---

---

---

(1)	Refer to note 20 and the consolidated cash flow statements on page F - 104.

---

---

---

---

---

---

---

(1)	All the operations in South Africa, including, Mine Waste Solutions and Mponeng are held by the parent company, AngloGold Ashanti Limited. An agreement for the sale of the South African operations was announced on 12 February 2020.

(2)	Owner of the Sunrise Dam operation and the Tropicana joint operation in Australia.

(3)	Operates the Obuasi mine in Ghana.

(4)	Owner of Kibali Goldmines S.A. which operates the Kibali mine in the Democratic Republic of the Congo.

---

1.	I have reviewed this annual report on Form 20-F of AngloGold Ashanti Limited;

2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the company as of, and for, the periods presented in this report;

4.	The company’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the company and have:

a.	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with IFRS as issued by the IASB;

c.	Evaluated the effectiveness of the company’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.	Disclosed in this report any change in the company’s internal control over financial reporting that occurred during the period covered by the annual report that has materially affected, or is reasonably likely to materially affect, the company’s internal control over financial reporting; and

5.	The company’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the company’s auditors and the audit committee of company’s board of directors (or persons performing the equivalent functions):

a.	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the company’s ability to record, process, summarize and report financial information; and

b.	Any fraud, whether or not material, that involves management or other employees who have a significant role in the company’s internal control over financial reporting.

---

1.	I have reviewed this annual report on Form 20-F of AngloGold Ashanti Limited;

2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the company as of, and for, the periods presented in this report;

4.	The company’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the company and have:

a.	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with IFRS as issued by the IASB;

c.	Evaluated the effectiveness of the company’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.	Disclosed in this report any change in the company’s internal control over financial reporting that occurred during the period covered by the annual report that has materially affected, or is reasonably likely to materially affect, the company’s internal control over financial reporting; and

5.	The company’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the company’s auditors and the audit committee of company’s board of directors (or persons performing the equivalent functions):

a.	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the company’s ability to record, process, summarize and report financial information; and

b.	Any fraud, whether or not material, that involves management or other employees who have a significant role in the company’s internal control over financial reporting.

---

1.	The Report fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934; and

2.	The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

---

---