Good day, ladies and gentlemen, and welcome to AngloGold Ashanti’s 2020 Mid-Year Results Presentation. All participants will be in listen-only mode. There will be an opportunity to ask questions when promoted. [Operator Instructions] Please note that this conference is being recorded. I would now like to hand the conference over to Mr. Stewart Bailey. Please go ahead, sir.

Thanks, Judith, and welcome, everybody to our first half results conference call. Thanks for making the time. You have Kelvin, Christine, Ludwig, Sicelo and Graham on the call to run you through all aspects of the business and our performance for the first half. Before we start, as usual, I would like to direct you to the safe harbor statements at the front of the presentation, which contains important information, particularly about forward-looking statements that may be made. I do urge you all to read it when you have a moment. Without any further ado, I’m going to hand over to Kelvin. Kelvin.

Well, thank you very much, Stewart, and welcome everyone. To start, our overall objective is to safely deliver better quality production aimed at widening margins, extending mine lives, and improving the portfolio. The current health crisis does not change that. We are committed to maintaining discipline in the current gold price environment, with emphasis on further deleveraging the balance sheet, progressing the ongoing divestment processes, enhancing margins, growing oil reserves and ramping up Obuasi to commercial production. And importantly, we will work to maintain and strengthen our license to operate through effective ESG practices, as demonstrated in our ability to mobilize quickly and effectively to support the global fight against the COVID-19 pandemic. On the safety front, regrettably, there was one fatality in the second quarter which occurred at Obuasi. An employee was fatally injured in a heavy mobile equipment related incident. And then subsequent to the quarter’s close, a security guard from Obuasi passed away on July 8th as a result of injury sustained in a light vehicle accident. These incidents were difficult for us and hard reminders of the incredible work and attention required to achieve zero harm at our operations. We are going to intensify our efforts to eliminate injury from the workplace, maintaining our safe production strategy, which aims toward our overall goal of zero harm. The Company delivered a solid production and financial performance for the first half of the year. The performance was supported by an especially strong second quarter at Geita, Serra Grande as well as steady production from Kibali, Iduapriem, Tropicana and AGA Mineracao. It is pleasing to report production improvement quarter-on-quarter at Sunrise Dam, Siguiri and Cerro Vanguardia. Obuasi redevelopment project continue to ramp up, delivering a 63% quarter-on-quarter increase in production, despite COVID-19-related delays. COVID-19-related stoppages overall impacted about 85,000…

Thanks, Kelvin, and good day, everyone. You will see we have delivered another solid operational and financial performance for the half year. We have achieved this, despite the impact of COVID-19-related suspensions, which straddled the latter part of Q1 and the front end of Q2 for certain of our operations. It was also a more prolonged impact on Mponeng, which operated at 50% capacity for a longer period, but is now in the process of gradually ramping up to full operational capacity. Despite the accounting treatment of our South African portfolio as a discontinued operation, we will continue to talk to the Group as a whole, which makes year-on-year comparisons easier. Production for the first half was 5% lower year-on-year, while cash costs were up only 2%, and all-in sustaining costs were 3% higher. Excluding the COVID-19 impacts, production would have been flat on last year. The stronger gold price, which was up 26% for the first half, as well as weaker operating currencies helped us deliver a 59% improvement in adjusted EBITDA and a 76% increase in cash flow from operating activities to $604 million. But our cash generation was the real star over the period, with all of the regions making strong contribution. Free cash flow generation, which is after all outgoings, came in at $177 million for the half year with $173 million of that figure in Q2 alone. That performance is a vast improvement on the $31 million outflow over the first half of last year and was due to the improved gold price working in tandem with a steady production results. The sheer cash flow potential of the business is especially clear when you consider that our free cash flow results came in even as we invested $93 million in the Obuasi redevelopment project at…

Thanks, Christine, and good day to everyone. Let’s take a high level look at the Africa operations. In Continental Africa, the region produced 773,000 ounces at an all-in sustaining cost of $865 an ounce compared to 711,000 ounces at an all-in sustaining cost of $932 an ounce in 2019. This is a strong statement to our operational excellence drive and efficiency improvements, despite the COVID-19 impact felt across the Group, particularly in the second quarter. The region generated free cash flow of $266 million during the period compared to $98 million during the same period of last year. We delivered a solid production performance for the first half of the year, supported by especially strong second quarter performances from Geita as well as steady production performance fees from Kibali and Iduapriem. We continue to see encouraging results from Siguiri, while the Obuasi redevelopment project continues to ramp up, delivering a 63% quarter-on-quarter increase in production, despite COVID-19-related delays. At Geita, the production performance was boosted by a 26% increase year-on-year. This was a result of higher grades and throughput levels when compared to the same period in 2019. You will recall that last year, we had a major planned shutdown at Geita on the ball mill. During the second quarter, Geita achieved an all-in sustaining cost of $621 an ounce. The lowest unit cost production since 2014. As a result of the 55% reduction in open-pit tonnes mined at Nyankanga as Cut 8 near completion and of course the higher production as mentioned. Kibali recorded another solid performance, although the lower production was a result of processing lower grade material from Sessenge and KCD pits. Iduapriem’s strong performance was underpinned by an increase in trade due to mining higher grade ore from Block 7 and 8 in line with the…

Thank you, Sicelo, and good day, everyone. The international operations had a demanding start to the year, including COVID-19 temporary mine suspensions in Brazil and Argentina along with the heaviest rains that have fallen in Brazil over the past 100-years. Our focus has been on managing the impact of COVID-19 and the well-being of our people and performance of our assets. And I’m extremely pleased to note that this approach resulted in the international operations delivering a solid second quarter. Unfortunately, COVID-19 infections continue to escalate at an alarming rate in Brazil. We will continue to do everything possible to manage the pandemic, including continuing with strict hygiene and social distancing measures supported by rigorous testing, screening, monitoring and isolation of high risk groups when necessary. On safety, I’m pleased to report that our year-on-year lost time and all-injury frequency rate have continued to show strong improvement, although there is no room for complacency. Looking at gold production, the Americans delivered 290,000 ounces, noting that AGA Mineracao was 30%] lower year-on-year at 133,000 ounces. This drop was primarily due to the introduction of new underground support standards and the revised mining sequence at Cuiaba, which was necessary to address the fall of ground and resulting from the deteriorating ground conditions as reported last quarter. The new standards includes additional meshing, which has slowed development and delayed access to high grades in the mine deeper ore body. On a positive note, Cuiaba had the strong start to the third quarter, achieving records in contracted development in both April and May, which will be the key to improving operational flexibility and performance. In addition, Corrego do Sitio complex was negatively impacted by the one in a 100-year rains, which hampered mining in Rosalina open pit and Greenfields operations. Staying in Brazil, the…

Thanks very much, Ludwig. Good day, all. Today I will provide a summary on our progress at Obuasi. Despite the COVID-19 challenges, we have made good progress. I would like to acknowledge the huge effort the team has made in extremely trying circumstances. The team has been very innovative and disciplined, so as to progress the project well under the circumstances. As I mentioned last quarter COVID-19 has had an impact on the project, as I will outline. I will talk to Phase 1 operational readiness first. The Phase 1 targeted 2,000 tonne per day capacity for a year, while we continued with the Phase 2 build. As foreshadowed, the process plant placed a number of engineering challenges in stabilizing our refurbished plant. By the end of the quarter, the plant was achieving the planned run times and throughput rates. Metallurgically, the plant has achieved the Phase 1 targets. And in the first half of the year, the plant produced 50,000 ounces of pre-production gold. Mine production is the area where we have seen the biggest impact of COVID-19 due to international travel restrictions on the contractors, key supervisors and skilled operators. Working with the home and the host government, we have been able to put in place travel and crew rotations occurring now. This has reduced capacity on-site due to quarantine requirements. We are addressing the issue through aggressive international and in-country recruitment, operator training and mine scheduling to optimize the plan to the available resources. Consequently, at this stage, Phase 1 production rates are below 2,000 tonne per day, as mining achieved an average of 1,590 tonnes per day in quarter two. Mining commenced in Block 8 Lower, providing a second mining front. We are tracking our operating costs carefully and apart from volume-related variances, unit costs are…

Thank you, Graham. Although our generative exploration was affected by the COVID-19 pandemic during the first half, our Brownfields exploration continued to progress and I’m pleased to say that we completed 38% more drilling in the first half of 2020 compared to the same period in the prior year. Sicelo and Ludwig have already alluded to some of the mine site exploration activities in their respective regions. Roughly, excuse me, roughly $30 million is allocated toward generative programs, while the bulk of our exploration budget for the year is planned for resource conversion and new resource addition projects at the mine sites. We have our main generative exploration hubs in Australia and North America, with drilling programs in progress or scheduled to continue in both areas. In Australia, exploration progressed in Laverton area around Sunrise Dam with this Cleveland project continuing to show positive results and the first phase of aircore drilling at Turing, also returning encouraging values. No work took place in Queensland due to restrictions related to the COVID-19 pandemic. In Nevada, we made the final option payment to earn into 100% ownership of the Silicon project. We are also pleased to report that the environmental assessment process was completed and the exploration plan of operations was just approved at Silicon. Build preparation are now in progress for construction in the new drill pads ahead of the start of the next phase of drilling. We also have target generation activities ongoing in South America and West Africa. And we expect this work to provide new projects for our portfolio. Moving on, our Brownfields exploration investment in the mine sites has been steadily increasing over the past several years, coming off the lows at the last bottom of the gold price cycle in 2013 and into 2014. In the past few years, we have consistently grown ore reserves in our mine site portfolio outside South Africa and our current two to three year focused investment program for additional drilling and ore reserve development will help preserve these gains and provide a stable or reserve base for the Company. We are expecting another good year for ore reserve replacement in 2020 with mine sites that have been allocated with some of the larger focused drilling investments such as Geita and Sunrise Dam leading the way. We have an excellent record of discoveries with 53 million ounces added to ore reserve between 2004 and 2019 from our portfolio outside of South Africa. This average is roughly 3.5 million ounces a year at a cost of $33 per ounce. I will now hand back to Kelvin to conclude.

Thank you, Tim. When I joined the Company, we said out a number of objectives from tightening up on the business to increasing the speed of decision-making, to streamlining the portfolio, to defining a disciplined capital allocation framework and articulating a clear business strategy. Of course there is always more work to be done and things to improve on, that is the very nature of the business. But I’m really pleased with our progress on each of these objectives. And I have enjoyed the experience immensely, especially working with such a talented and result-oriented team right across the organization. So as you can appreciate, announcing my resignation as CEO of the Company was a very difficult decision for me. And I want to be clear that my decision to resign was a personal one to be closer to my family. Especially in the context of the new COVID-19 operating environment and constraints on international travel, border closings and the like, the ongoing demands of delivering on the Company’s strategy would require me to be away from home for longer than I committed to my family. Also, as you know AngloGold Ashanti is headquartered in Johannesburg, and it is not certain when I would be able to return to South Africa, given the border closures that I just described. And these circumstances, it was determined that the most appropriate course of action would be to appoint an interim CEO. Given the strong measures in place to ensure a smooth transition and maintain focus on continuing to improve our operating performance and deliver on our objectives, all of which are important for creating value for the business during these uncertain times, it was agreed that it would be best not to prolong the transition. So, Christine currently, our CFO will be stepping…

Thank you. [Operator Instructions] The first question comes from Shilan Modi of UBS.

Good afternoon, everyone. Thanks for the presentation today and well done on the solid set of numbers. A couple of questions from my side, just in terms of the dividend, I mean, you guys are in quite a good cash generative position, especially with the gold price, where it is today. Would you be considering a special dividend toward the end of the year? Question two is South Africa and the sale of the opening and related assets, just required, like what are you waiting for to complete the asset sale? And was it really just the COVID-19 delay, no other issues? And then last question, the cost of converting resources to reserves, I mean, historically, it was $33 an ounce. Is that the right number to think of going forward. And then, is it per ounce converted or is that per ounce of production? Just trying to get back to like a dollar million number, looking at the next three years. Thanks.

Thank you, Shilan. We will look, I will answer the first two on dividend and others may weigh in and this South African business sales and I will ask Tim Thompson to talk about the resource to reserve conversion. First of all, with regard to the dividend, Shilan look, I mean it is, we are pleased to be in a position that we are, with the balance sheet strong, we have got great liquidity. We are generating cash, and as we move through the year, if the gold price stays upward, we will continue to generate a lot of cash. So that is a good position to be in. We are also self-funding Obuasi. This year we are completing Obuasi to self-funding next year. We are making the reinvestment back in the reserves. We have our growth projects that we are funding too. So in terms of the balance, there is that reinvestment in the portfolio. We will continue to chip wait the balance sheet, and as indicated, the proceeds from the sale from the divestments will go toward debt reduction as well. But I can tell you that the Board is recently, this week in discussions around the dividend, which as you know is 10% of free cash flow, before growth capital. And as we are able to maintain hide-on spots, widen margins and generate more free cash flow, then clearly that will flow through. There has been discussion around as there is at every meeting, and this is a Board discussion not myself personally, obviously, but there is a consensus view that we would like to be in a position where, if all things stay equal, we could see an incremental increase in dividend payout, but we don’t want to get ahead of ourselves, we want to be…

Thanks, Kelvin. The cost of converting resource to reserve across the portfolio will be broadly in that range of $35 to $40 per ounce, just depending on the specific asset where we are conducting exploration. But it will be relatively the same over the next two to three years.

Okay. To clarify, is it per ounce converted? So $33 times the number of ounces that moved from resource to reserve?

Yes.

Okay, perfect. Thanks so much.

Thank you, Shilan.

The next question comes from Marcelo Kim of Paulson & Co.

Hey, good morning everyone. Can you just clarify the $500 million of locked up cash that you have, that is separate from the $1.3 billion of cash sitting on your balance sheet?

Christine?

Yes, thanks, Kelvin. Yes, Marcelo, it is separate. So just for the benefits of people on the call, the $500 million that you are referring to, the $293 million of Kibali cash, right, so it is AGA’s share that still needs to be released from the DRC. It is $131 million of VAT, that is receivable from Tanzania, and then there is the $71 million of VAT that is relating to Kibali as well. So, yes, it is not included in the cash balances, because the cash has not been received as yet.

Understood. Thank you. And Barrick has made comments on getting some of those proceeds from the DRC back, specifically. Are you guys able to provide any context on where you are on those discussions?

Yes, thank you Marcelo. I can comment. You know we stay very close with Barrick on that. And you are right, Mark Bristow, I think was quoted recently as indicating that he felt the release is imminent. I’m confident that they are pulling all the levers and we stay closely in touch. We spoke to them this week about it. So they feel pretty confident that the cash is going to be released soon. Obviously, we rely on them, we support where we can. But, so from that perspective, we are positive as well. And I think they are doing everything that they can to get the cash out.

Got you. Thank you very much.

Thanks, Marcelo.

The next question comes from Patrick Mann of Bank of America.

Hi, good afternoon, guys. Thank you very much for the opportunity. I was just wondering if we could speak a little bit around strategy and whether there is any chance of a strategy shift with Kelvin stepping down and a new CEO coming in? And specifically maybe around, you’ve spoken before about seeking a listing in a developed market, we might have bigger pools of capital and raise the profile of the Company, now that South Africa is almost sold, would that still be part of the strategy going forward. Thanks very much.

Thanks, Patrick. Well, listen, what I can say is that and I don’t want to speak for the Board, but the Board has indicated that it will continue to evaluate all of the various options to enhance shareholder value. And as a component of that, it will keep under review the possibility of seeking an alternative primary listing. But I think it is also safe to say that in the current circumstances, and that South Africa, in particular is dealing with the impact of COVID-19, the focus on the Board and the Company in general is on navigating the pandemic and its aftermath. And so, while it certainly is there as an option. In the immediate term, the focus is really going to be on ensuring business continuity and all the things that need to be done in dealing with the pandemic. As far as strategy, overall, I think there has been, continuity is the theme word. And so again, I don’t want to speak for the Board, but in our discussions and I know that Christine has expressed this as well, the intent is we have got plans in place, they are clear. We are going to keep executing on the deliverables that we have outlined. And so you should expect more continuity than change as far as that goes. And as far as the, there is a listing, again that is something that is an option. It just won’t be as a priority right now as the business is working through the pandemic, in particular.

Great. Thanks so much.

You are welcome. Thanks, Patrick.

Ladies and gentlemen, due to time constraints, that unfortunately brings us to the close of the call. That was the final question.

If I can make a final comment then, or Stewart, is there one more question or are we closing the call at this point?

We will be closing the call after this. You can go ahead.

Okay, thank you. Thank you, operator. Well listen, I would just like to close by thanking everybody personally for joining us today. It is been up a sincere pleasure for me to interact with you as the CEO of AngloGold Ashanti. And I do hope that our paths will cross again in the future. So, apologies again for taking so long in the call, there was a lot of information, but we really do appreciate your attention and your interest. So thank you very much.

Thank you. Ladies and gentlemen, unfortunately, due to time constraints that was the final question and this come to the end of the call. You are welcome to further questions to the company’s as follows. And ladies and gentlemen that conclude today’s conference. Thank you for joining us. You may now disconnect your lines.