Filed pursuant to Rule 433
Registration No. 333-132662
Roadshow
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Forward - looking statements:
Certain statements contained in this document may be
"forward-looking information" within the meaning of Section
27A of the Securities Act, and Section 21E of the Securities
Exchange Act of 1934, as amended. All statements other than
statements of historical fact are, or may be deemed to be,
forward-looking statements, including, without limitation
those concerning: AngloGold Ashanti's strategy to reduce its
gold hedging position, including the extent and effect of
the reduction; the economic outlook for the gold mining
industry; expectations regarding gold prices, production,
costs and other operating results; growth prospects and
outlook of AngloGold Ashanti's operations, individually or
in the aggregate, including the completion and commencement
of commercial operations at AngloGold Ashanti's exploration
and production projects and the completion of acquisitions
and dispositions; AngloGold Ashanti's liquidity and capital
resources and expenditure; and the outcome and consequences
of any pending litigation proceedings. These forward-looking
statements are not based on historical facts, but rather
reflect AngloGold Ashanti's current expectations concerning
future results and events and generally may be identified by
the use of forward-looking words or phrases such as
"believe", "aim", "expect", "anticipate", "intend",
"foresee", "forecast", "likely", "should", "planned", "may",
"estimated", "potential" or other similar words and phrases.
Similarly, statements that describe AngloGold Ashanti's
objectives, plans or goals are or may be forward-looking
statements. These forward-looking statements involve known
and unknown risks, uncertainties and other factors that may
cause the AngloGold Ashanti's actual results, performance or
achievements to differ materially from the anticipated
results, performance or achievements expressed or implied by
these forward-looking statements. Although AngloGold Ashanti
believes that the expectations reflected in these
forward-looking statements are reasonable, no assurance can
be given that such expectations will prove to have been
correct. For a discussion of such risk factors, you should
refer to the annual report on Form 20-F for the year ended
31 December 2006, which was filed with the Securities and
Exchange Commission on 9 July 2007 and, when available, the
prospectus supplement describing the rights offering. These
factors are not necessarily all of the important factors
that could cause AngloGold Ashanti's actual results to
differ materially from those expressed in any
forward-looking statements. Other unknown or unpredictable
factors could also have material adverse effects on future
results.
Documentation:
You should note that the rights offering described herein is
subject to approval by the issuer's shareholders at a
general meeting (the "GM"). The issuer will file with the US
Securities and Exchange Commission (the "SEC") a prospectus
supplement providing further details of the rights offering
described herein only following the approval of the
resolution relating to the rights offering at the GM.
The issuer has filed a registration statement (including a
prospectus) with the SEC for the offering to which this
communication relates.
Before you invest, you should read the prospectus in that
registration statement and other documents the issuer has
filed with the SEC for more complete information about the
issuer and this offering. You may get these documents for
free by visiting EDGAR on the SEC web site at www.sec.gov.
Alternatively, the issuer, any underwriter or any dealer
participating in the offering will arrange to send you the
prospectus if you request it by calling:
AngloGold Ashanti +27-11-637-6000
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Update on current trading: Q1 2008 results
Delivering on commitments...
o Improved safety performance, following introduction of
"Safety is our First Value" campaign in November 2007,
with a subsequent 80% decrease in fatality frequency
rates.
o Q1 production at 1.2Moz, 9% higher than guidance,
following work undertaken in South Africa to manage the
Eskom power situation.
o Q1 operating cost performance better than planned.
o Production outlook for the year increased, with new
range of 4.9Moz to 5.1Moz, up on prior guidance of
4.8Moz to 5.0Moz.
o Net delta hedge reduced from 10.39Moz in the previous
quarter to 9.26Moz, notwithstanding higher gold price.
o La Colosa exploration discovery announced in Colombia.
...with more work to do.
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Rights offer announcement
Offer intentions...
o Subject to shareholder approval, the Company expects to
announce an underwritten renounceable rights offer of
approximately 1 for 4 shares representing 69.4m1
ordinary shares or American depository shares of
AngloGold Ashanti Limited
o Intended capital raising of ZAR11.9bn (US$1.6bn)2
- expected minimum rights offer price of ZAR172
(US$22.74)2
o Extraordinary General Meeting on Thursday, 22 May 2008
- request for approval of shares to be offered under
rights issue
...requires shareholder approval at EGM.
Note:
1 Assuming exercise of 100% of the rights
2 Based on a R/US$ exchange rate of 7.5628
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Transaction rationale
Building on our strategy...
Providing financial flexibility:
->Restructuring of gold hedge book
o Reducing hedge position
o Increasing exposure to spot price
->Continued funding of development projects and
exploration initiatives
o Targeting increasing level of production
...delivering value to our shareholders.
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Gold market environment
Strong fundamentals persist ...
Gold vs. $/(euro) exchange rate
Source: Datastream
Declining global mine production
Source: GFMS
Gold ETF holdings
Cost trends (senior producers)
Source: GFMS Mine Costs (2007)
Based on mine level data for the following senior
producers:
AngloGold Ashanti, Barrick, Newmont, Newcrest,
Goldfields, Goldcorp, Harmony, Kinross and Buenaventura
Breakeven Costs = Fully Allocated Costs + Sustaining Capex
...and numerous factors are supporting the gold price.
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Hedge book
We have managed the hedge book...
Managing the Net Delta Hedge
Price Received vs. Average Spot Price
o Continued to deliver into the maturing hedges, thereby
reducing gold hedge position over time.
o Total net delta hedge at 31 March 2008 was 9.26Moz.
o Marked-to-market value of all hedge transactions is
negative $4.78bn at 31 March 2008.
o Net delta hedge represents 14% of reserves as at 31
December 2007.
o Received price for the 1st Quarter of 2008 at $755/oz,
18% discount to the spot price.
...now looking to unlock more value for shareholders.
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AngloGold Ashanti's strategy
Managing the Business
Optimizing the Portfolio
Growing the Business
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AngloGold Ashanti overview
We are a global company...
Phanerozoic Au (Ag - Cu)
Precambrian Au
AGA projects (100% owned or management)
Joint ventures and/or strategic alliances
Share of AngloGold Ashanti's current gold production
(2007)
...with operations and projects across key gold producing
regions.
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AngloGold Ashanti's strategy
Managing the Business
Optimizing the Portfolio
Growing the Business
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A global business - Southern Africa
With operations in Southern Africa...
--------------------------------------------
2007 2007 Total
Production cash
(koz) costs ($/oz)
--------------------------------------------
Great Noligwa 483 404
Kopanang 418 306
Moab Khotsong1 67 672
Tau Lekoa 265 473
Surface Ops 125 304
Mponeng 587 264
Savuka 73 397
TauTona2 409 318
Navachab 80 475
Ore Reserves3 (Moz)
Note:
1 Attributable production at Moab Khotsong prior to
commercial production in 2006 capitalized against
pre-production costs 2 The yield of TauTona represents
underground operations 3 Southern Africa ore reserves as at
December 31
...continuing to provide a core production platform.
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Power in South Africa
Power supply constraints were a challenge in Q1...
Efficiencies Achieved (GJ thousand)
o The South African operations have reduced power
consumption over the years by 17%.
o Collaboration with Eskom (national provider),
government and unions to minimize impact on operations.
o South African operations initially constrained to 90
percent power supply, and later increased to
approximately 95% - 96.5%.
o Power saving initiatives have been launched to mitigate
impact on operations and move back towards full
production.
--------------------------
Total Energy Savings SA
Mines (GJ/Month) 1
--------------------------
Electricity 17%
Fuels 17%
Coal 21%
Total 17%
--------------------------
Note:
1 Savings relative to 2004
.... we have managed the issue ... now producing at capacity
using 95% power.
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Safety in South Africa
We are creating new expectations around accountability
and performance...
LTIFR
per million hours worked
Fatality rate
per million hours worked
o "Safety is Our First Value" campaign launched in
collaboration with employees, unions and government on
8 November 2007.
o New focus on safety principles and standards,
underpinned by leadership behaviours and improving
compliance to operating standards.
o 80% reduction in fatality frequency rate achieved since
8 November 2007.
o Encouraging reduction in leading safety indicators in
first quarter, historically always a difficult quarter
due to build-up of production following year-end break.
o Iduapriem achieved 5 million shifts without a lost time
injury at 31 March 2008.
...and early progress is encouraging.
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A global business - Rest of Africa
Operations throughout Africa...
Note:
1 The minority shareholdings of the International Finance
Corporation (10%) and Government of Ghana (5%) were
acquired effective September 1, 2007 and Iduapriem is now
wholly-owned by AngloGold Ashanti
------------------------------------------------------------
2007 Production (koz) 2007 Total
cash costs
($/oz)
------------------------------------------------------------
Geita 327 627
Morila (40%) 180 333
Sadiola (38%) 140 414
Yatela (40%) 120 300
Siguiri (85%) 280 471
Iduapriem 167 497
Obuasi 360 464
------------------------------------------------------------
Ore Reserves 1 (Moz)
Note:
1 Rest of Africa ore reserves as at December 31
...with upside as we realise our potential.
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Operation recovery plan - Obuasi
Obuasi remains a key area of focus...
Turnaround plan
o Improve mine layout designs and associated
development optimisation
o Reducing ore loss and waste dilution, with potential
for grade improvement
o Key items for recovery identified--now developing
schedules and optimisation timetable
->Potential for long life, high cash flow operation
with relatively high grade endowment
Gold Production (k oz)
Total cash costs ($/oz)
Capital expenditure ($m)
* underground operation
...and a significant source of potential gold production.
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Operation recovery plan - Geita
Significant potential remains at Geita...
Turnaround plan
o Production improving following serious decline in
production in 2006
o Restructuring of operational leadership and tackling
of HR issues
o Growth prospects--advanced grade control drilling
commenced at Star 1 Comet project. Adjacent Roberts
project expected to begin mining in end 2008
o Metallurgical test work continued during 2007 to
identify processing route for refractory ores at
Matandani Kukulumu which contains significant potential
Tanzania
Gold Production (k oz)
Total cash costs ($/oz)
Capital expenditure ($m)
...as we execute our plan to recover performance.
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A global business - Americas
Operations in North and South America...
Argentina
USA
Brazil
------------------------------------------------------------
2007 Production 2007 Total cash
(koz) costs ($/oz)
------------------------------------------------------------
Cerro Vanguardia (92.5%) 204 260
Cripple Creek & Victor 282 269
Brasil Mineracao 317 246
Serra Grande (50%) 91 264
Ore Reserves 1 (Moz)
Note:
1 Americas ore reserves as at December 31
....with new upside potential.
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Colombia
We have established a first mover advantage...
Barranquilla
Cartagena
Gramalote Project
Bucaramanga
Medellin
Colosa Project
Bogota
Ibague
Cali
COLOMBIA
Mocoa
o Potential for major deposits exist in Colombia
through land position of approximately 37,500 km(2)
o Strategy is through a "3 level participation model"
consisting of AngloGold Ashanti initiatives,
exploration joint ventures with established players
o JV partner B2Gold continues to explore and drill test
targets within portfolio, with Gramalote (49% AGA
owned) most advanced
o Drilling at Colosa Project (100% AGA owned), where
5,897m of diamond drilling has been completed on the
main Porphyry
Stream Sediment Anomaly March 2006
Phase 2 Follow Up Sept 2006
Phase 3, First Drilling March 2007
Phase 4, Conceptual Study Drilling: +60 DDHs 18,000 m
....which we are turning to account.
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A global business - Australia
Operations in Australia have performed well ...
------------------------------------------------------------
2007 Production 2007 Total cash
(koz) costs ($/oz)
------------------------------------------------------------
Sunrise Dam (1) 600 262
------------------------------------------------------------
Ore Reserves2 (Moz)
Note:
1 The yield of Sunrise Dam represents open-pit
operations
2 Australia ore reserves as at December 31
....where we are establishing new growth opportunities.
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Boddington
Boddington has substantial gold and copper reserves...
Boddington
Operating review and growth prospects
o Boddington expansion project approval March 2006.
o At year end, overall project progress ~ 65% complete,
with emerging and procurement activities nearing
completion.
o Construction of treatment plant ~ 32% complete.
o Achieved 4 million hours without lost time injury.
o Operating team currently being established.
o Current mine life expected to exceed 20 years, with
attributable life-of-mine gold production expected to
exceed 5.7Moz.
------------------------------------------------------------
2005 2006 2007
------------------------------------------------------------
Capital expenditure ($ million) 12 180 747
100
percent
Capital expenditure ($ million) 4 60 249
33.33
percent
Employees 18 12 37
Outside contractors 48 85 387
------------------------------------------------------------
....start-up remains on track for late 2008 / early 2009.
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Tropicana
We are challenging accepted wisdom...
o Tropicana JV project with AngloGold Ashanti (70%) and
Independence Group (30%).
o New geologic model for Au in high-grade metamorphic
belts.
o Mineralization of a potential new gold field
identified.
o AGA has very substantial land positions allowing for
significant growth potential.
....and the approach is now bearing fruit.
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Investment summary
Managing the Business
o Safety
o Production costs
o Key assets
o Revenues
Putting the right people in
place and building processes
to deliver on our commitments
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AngloGold Ashanti's strategy
Managing the Business
Optimizing the Portfolio
Growing the Business
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Asset portfolio
We are developing a clear view on how to create value...
Profile
o Suitably large / potentially large to provide
critical mass
o Political, social, community and environmental risks
o Complexity of operations and mining methods
o Skills within the organization
o Historical and potential future performance from a
cash generation perspective
Grow
o Does not require significant attention
o Steady or increasing cashflow
o Capital and operating costs understood
o Significant resources and reserves
Sell
o Does not fit the proposed profile
o More value in other hands
Optimise
o Fits profile
o Does not have major underlying problems
o Future benefit from optimising
o Strong cash generation upside
Fix
o Asset is significantly under-performing against
potential
o Operating and financial performance can be rectified
....following a full asset review.
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Pathway to value
The pathway to value for mining operations must build
from the basics...
Scoping
Potential
Tropicana
Mongbwalu
La Colosa
++++
Operating Strategy
& Optimisation
Siguiri
Geita
Obuasi
Sadiola Brazil AGAB
Mineracao
Cerro Vanguardia
Serra Grande
Navachab
Margin
Enhancement
Boddington
CC&V
South Africa Operations
Sunrise Dam
Iduapriem
Exploration Orebody Methods &
Operating Planning & Best
Capability Design
Parameters Scheduling Practices
Design/Operating Phase
...contributing significantly to the future
value growth of AngloGold Ashanti.
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Investment summary
Optimizing the Portfolio
o Asset review
o Capital deployment
o Pathway to value
Using a portfolio review and
capital deployment approach
to optimise value
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AngloGold Ashanti's strategy
Managing the Business
Optimizing the Portfolio
Growing the Business
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Exploration strategy
Investing in the future in key new frontier gold belts...
o Carrying out exploration with teams in Australia, Colombia, the
DRC and China.
o Exploring with partners in Philippines (Red 5).
o Strategic alliance with local partner Polymetal to jointly explore,
develop and acquire prospective projects in Russia.
o 2008 greenfields exploration spend is expected to be $105m.
Tropicana
o 70/30 JV with Independence Group
o Potential for major deposit in high grade metamorphic belt
o Prefeasibility study commencing May 2008
DRC (concession 40)
o Resource delineation drilling continuing in Adidi-Kanga
area (Mongbwalu), north-eastern DRC
o Regional target generation underway, approx. 2,200 sq. km of
high quality airborne geophysical data acquired to date
Colombia
AGA Projects
o Target generation and exploration activities continue
Joint Ventures
o B2Gold (ex-Bema Gold); Antofagasta (southern Colombia)
ended Q4, 2007
....and the approach is now bearing fruit.
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Exploration strategy
Significant ramp-up of the exploration program...
Greenfield drill meters
Drill meters (000s)
Ore Reserves
Ore reserves (Moz)
....is translating into an increasing reserve base.
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Organic growth pipeline - approved projects
Advanced brownfield project pipeline...
Australia
Boddington
Construction and commissioning of expanded Boddington mine.
Estimated LOM ounces (k oz)1
2008 estimated capital spend1
Production
start
5,700
$392m
2008/9
South Africa
Mponeng Ventersdorp Contact Reef
Approved in February 2007 to exploit the VCR at Mponeng Mine located below 120
level.
2,500
$35m
2013
TauTona Carbon Leader Reef
Accessing the CLR reserves at TauTona below 120 level.
2,500
$17m
2009
Ghana
Obuasi
TSP Plant
Construction of a floatation circuit to enable treatment of lower grade
underground sulphide ore, as well as low grade surface sulphide stockpiles and
tailings.
702
$44m
2009
Iduapriem Plant Expansion
Additional and modification of metallurgical treatment and infrastructure to
increase plant capacity, improve gold recovery and reduce operating expenditure.
117
$42m
2008
Note:
1 Attributable estimated production and capex
....across all regions of the portfolio.
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Organic growth pipeline - select unapproved projects
Project pipeline remains robust...
Estimated LOM
ounces (k oz)
Production
start
South Africa
Mponeng Carbon Leader Reef
Exploit the Carbon Leader reef ore reserves of Mponeng.
7,400
2018
Moab Project Zaaiplats
Phase 2 of the development of Moab Khotsong to extend below
current level.
3,800
2014
Brazil
Corrego do Sitio
Exploring the potential sulphide ore resources of the
Corrego do Sitio
underground ore bodies.
1,400
2011
Lamego
Exploring the underground potential of the Lamego ore body.
450
2009
U.S.A
CC&V
Mine life extension project to include the development of new
sources of ore and an extension to the heap leach facility
1,400
2011/2
....with additional upside potential.
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By-product reserves
Significant increase in by-product reserves...
2006
Reserves
2007
Reserves
Percentage
change
Uranium
Uranium
26mlbs
43mlbs
+ 65%
Silver
Silver
24.5Moz
31.0Moz
+ 27%
Copper
Copper
190kt
232kt
+ 22%
....contributing to the future of AngloGold Ashanti.
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Investment summary
Growing the Business
o Exploration
o Reserves
o Project pipeline
o Value
Focused on growing ounces
and value in the business
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Investment summary
Managing the Business
o Safety
o Production costs
o Key assets
o Revenues
Putting the right people in
place and building processes
to deliver on our commitments
Optimizing the Portfolio
o Asset review
o Capital deployment
o Pathway to value
Using a portfolio review and
capital deployment approach
to optimise value
Growing the Business
o Exploration
o Reserves
o Project pipeline
o Value
Focused on growing ounces
and value in the business
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ANGLOGOLD ASHANTI
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