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Glossary

Please find below a glossary of general mining and finance terms that apply to our business. Click on the appropriate letter and a list of terms beginning with that letter will appear.

A
Acid treatment
Acid treatment is the process of soaking activated carbon granules in a dilute hydrochloric acid solution to dissolve calcium carbonate and other impurities that have become absorbed in the carbon and that thereby reduce the ability to adsorb gold.
Adjusted gross margin
Adjusted gross profit (loss) divided by gold sales including realised non-hedge derivatives.
Adjusted gross profit (loss)
Gross profit (loss) excluding unrealised non-hedge derivatives and other commodity contracts.
Adjusted headline earnings
Headline earnings excluding unrealised non-hedge derivatives, fair value adjustments on the option component of the convertible bond, fair value gain (loss) on interest rate swap, adjustments to other commodity contracts and deferred tax thereon.
Average number of employees
The monthly average number of production and non-production employees and contractors employed during the year, where contractors are defined as individuals who have entered into a fixed-term contract of employment with a group company or subsidiary. Employee numbers of joint ventures represents the group’s attributable share.
 |  B
Backfill
Waste material used to fill the void created by mining an ore body with the purpose of providing both regional and localised support.
Below collar
A distance below the surface elevation of a shaft.
BIF
Banded Ironstone Formation. A chemically formed iron-rich sedimentary rock.
By-products
Any products that emanate from the core process of producing gold, including silver, uranium and sulphuric acid.
 |  C
Calc-silicate rock
A metamorphic rock consisting mainly of calcium-bearing silicates such as diopside and wollastonite, and formed by metamorphism of impure limestone or dolomite.
Capital employed
Equity plus minority interests, interest bearing debt, less loans and cash. Where average capital employed is referred to, this is the average of the figures at the beginning and the end of the financial year.
Capital expenditure
Total capital expenditure on tangible assets which includes stay-in-business and project capital.
Carbon columns
Any vertical cylindrical vessels used to contain granules of activated carbon for processes such as the extraction of gold from solution, elution or acid treatment.
Carbon-in-leach (CIL)
Gold is leached from a slurry of gold ore with cyanide in agitated tanks and adsorbed on to carbon granules in the same circuit. The carbon granules are separated from the slurry and treated in an elution circuit to remove the gold.
Carbon-in-pulp (CIP)
Gold is leached conventionally from a slurry of gold ore with cyanide in agitated tanks. The leached slurry then passes into the CIP circuit where carbon granules are mixed with the slurry and gold is adsorbed on to the carbon. The granules are separated from the slurry and treated in an elution circuit to remove the gold.
Cash costs
Cash costs include site costs for all mining (excluding deferred development costs), processing and administration, but are exclusive of royalties, production taxes, amortisation and rehabilitation, as well as corporate administration, capital and exploration costs.
Cash gross margin
Cash gross profit (loss) divided by gold sales including realised non-hedge derivatives.
Cash gross profit (loss)
Adjusted gross profit (loss) plus amortisation of tangible and intangible assets less non-cash revenues.
Channel width
The total thickness of all reef bands, including internal waste mined as one unit.
Comminution
Comminution is the crushing and grinding of ore to make gold available for treatment. (See also “Milling”).
Contained gold
The total gold content of the orebody (tons multiplied by grade), irrespective of economic potential and without deduction for mining and processing losses prior to recovery.
Cut-off Grade (Surface Mines)
The minimum grade at which a unit of ore will be mined to achieve the desired economic outcome.
 |  D
Debt
Borrowings including short-term portion, plus debentures.
Depletion
The decrease in quantity of ore in a deposit or property resulting from extraction or production.
Development
The process of accessing an orebody through shafts and/or tunnelling in underground mining operations.
Development-reef
All development on the reef horizon.
Development-waste
All development in country rock.
Diorite
An igneous rock formed by the solidification of molten material.
Discontinued operation
A component of an entity that, pursuant to a single plan, has been disposed of or abandoned or is classified as held-for-sale until conditions precedent to the sale have been fulfilled.
Dividend cover
Headline earnings before unrealised hedging activities per ordinary share divided by dividends per ordinary share.
 |  E
EBITDA
Operating profit (loss) before amortisation of tangible and intangible assets, impairment of tangible and intangible assets, profit (loss) on disposal of assets and investments and unrealised nonhedge derivatives, plus the share of associates’ EBITDA.
Effective tax rate
Current and deferred taxation as a percentage of net profit before taxation.
Electro-winning
A process of recovering gold from solution by means of electrolytic chemical reaction into a form that can be smelted easily into gold bars.
Elution
Recovery of the gold from the activated carbon into solution before zinc precipitation or electro-winning.
Equity
Shareholders' equity adjusted for other comprehensive income and deferred taxation. Where average equity is referred to, this is calculated by averaging the figures at the beginning and the end of the financial year.
 |  F
Free cash flow
Net cash inflow from operating activities less stayin- business capital expenditure.
 |  G
Grade
The quantity of gold contained within a unit weight of gold-bearing material generally expressed in ounces per short ton of ore (oz/t), or grams per metric tonne (g/t).
Greenschist
A schistose metamorphic rock whose green color is due to the presence of chlorite, epidote or actinolite.
Gross margin %
Adjusted gross profit (loss) as a percentage of gold income including realised non-hedge derivatives.
 |  I
Illustrative dividend rate
For illustrative purposes, a US dollar dividend value has been provided based on the rate of exchange ruling on the date of declaration.
Indicated Mineral Resource
An ‘Indicated Mineral Resource’ is that part of a Mineral Resource for which tonnage, densities, shape, physical characteristics, grade and mineral content can be estimated with a reasonable level of confidence. It is based on exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes. The locations are too widely or inappropriately spaced to confirm geological and/or grade continuity but are spaced closely enough for continuity to be assumed.
Inferred Mineral Resource
An ‘Inferred Mineral Resource’ is that part of a Mineral Resource for which tonnage, grade and mineral content can be estimated with a low level of confidence. It is inferred from geological evidence and assumed but not verified geological and/or grade continuity. It is based on information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes which may be limited or of uncertain quality and reliability.
In situ deposit
Reserves still in the ground.
Interest cover
EBITDA divided by finance costs and unwinding of obligations.
Internal waste
Any waste within the reef channel.
Intrusive event
The intrusion of an igneous body into older rocks.
 |  L
Leaching
Dissolution of gold from crushed or milled material, including reclaimed slime, prior to absorption on to activated carbon.
Life of mine (LOM)
Number of years that the operation is planning to mine and treat ore, and is taken from the current mine plan.
 |  M
Market capitalisation
Number of ordinary shares in issue at close of business on 31 December multiplied by the closing share price as quoted on the JSE Securities Exchange South Africa.
Measured Mineral Resource
A ‘Measured Mineral Resource’ is that part of a Mineral Resource for which tonnage, densities, shape, physical characteristics, grade and mineral content can be estimated with a high level of confidence. It is based on detailed and reliable exploration, sampling and testing, information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes. The locations are spaced closely enough to confirm geological and grade continuity.
Metallurgical plant
A processing plant erected to treat ore and extract gold.
Milling
A process of reducing broken ore to a size at which concentrating can be undertaken. (See also “Comminution”)
Mine call factor
The ratio, expressed as a percentage, of the total quantity of recovered and unrecovered mineral product after processing with the amount estimated in the ore based on sampling. The ratio of contained gold delivered to the metallurgical plant divided by the estimated contained gold of ore mined based on sampling.
Mineral deposit
A mineralized body which has been delineated by appropriately spaced drilling and/or underground sampling to support a sufficient tonnage and average grade of metal. This material or deposit does not qualify as a reserve until a comprehensive evaluation, based on costs, grade, recoveries and other factors, demonstrates economic feasibility. Consequently, although the potential exists, there is no assurance that this mineral deposit will ever become an ore reserve.
Mineral resource
A mineral resource is a concentration or occurrence of material of economic interest in or on the earth's crust in such form, quality and quantity that there are reasonable and realistic prospects for eventual economic extraction. The location, quantity, grade, continuity and other geological characteristics of a mineral resource are known, estimated from specific geological evidence and knowledge, or interpreted from a well-constrained and portrayed geological model. Mineral resources are subdivided, in order of increasing geological confidence, into inferred, indicated and measured categories. The mineral resources are inclusive of those resources which have been modified to produce ore reserves.
Monetary asset
An asset which will be settled in a fixed or easily determinable amount of money.
 |  N
Net asset value per share
Total equity per the balance sheet divided by the shares in issue.
Net capital employed
Equity as defined above plus minority interests and interest-bearing borrowings, less cash and cash equivalents and other cash investments. Where average net capital employed is referred to, this is the average of the figures at the beginning and the end of the financial year.
Net debt
DBorrowings less cash and cash equivalents and other cash investments.
Net operating assets
Mining assets, inventories, trade and other receivables (excluding value added taxation), less trade and other payables.
Net operating assets
Tangible assets, current and non-current portion of inventories, current and non-current trade and other receivables (excluding recoverable tax, rebates, levies and duties), less current and non-current trade and other payables and deferred income (excluding unearned premiums on normal sale extended contracts).
Net tangible asset value per share
Total equity per balance sheet less intangible assets, divided by the number of ordinary shares in issue.
Non-hedge derivative and other commodity contract gain (loss)
Derivatives that are neither designated as meeting the normal sale exemption under IAS39, nor designated as cash flow hedges and other commodity contracts.
Normal purchase normal sale (NPNS) exemption
Hedge contracts designated as meeting the exemption criteria under IAS 39.
 |  O
Operating margin %
Operating profit as a percentage of gold income.
Ore reserve
An ore reserve is the economically mineable material derived from a measured and/or indicated mineral resource. It is inclusive of diluting materials and allows for losses that may occur when the material is mined. Appropriate assessments have been carried out, including consideration of, and modification by, realistically assumed mining, metallurgical, economic, marketing, legal, environmental, social and governmental factors. These assessments demonstrate at the time of reporting that extraction is reasonably justified. Ore reserves are sub-divided in order of increasing confidence into probable ore reserves and proved ore reserves.
Ounce (oz) (troy)
Used in imperial statistics. A kilogram is equal to 32.1507 ounces. A troy ounce is equal to 31.1035 grams.
 |  P
Pay limit
The grade of a unit of ore at which the revenue from the recovered mineral content of the ore is equal to the total cash cost including Ore Reserve Development and stay-in-business capital. This grade is expressed as an in-situ value in grams per tonne or ounces per short ton (before dilution and mineral losses).
Pillar mining
The mining of scattered blocks of reef of variable size usually associated with older shafts, which have been left behind and are now being mined in the final clean-up stage of the mine's ore body.
Precipitate
The solid product of chemical reaction by fluids such as the zinc precipitation referred to below.
Probable (Indicated) reserves
Price received ($/oz and R/kg)
Attributable gold income including realised non-hedge derivatives divided by attributable ounces/kilograms sold.
A ‘Probable Ore Reserve’ is the economically mineable part of an Indicated, Measured Mineral Resource. It includes diluting materials and allowances for losses which may occur when the material is mined. Appropriate assessments and studies have been carried out, and include consideration of and modification by realistically assumed mining, metallurgical, economic, marketing, legal, environmental, social and governmental factors. These assessments demonstrate at the time of reporting that extraction could reasonably be justified.
Productivity
An expression of labour productivity based either on the ratio of grams of gold produced per month to the total number of employees or area mined (in square metres) per month to the total number of employees in underground mining operations.
Proven (Measured) reserves
A ‘Proved Ore Reserve’ is the economically mineable part of a Measured Mineral Resource. It includes diluting materials and allowances for losses which may occur when the material is mined. Appropriate assessments and studies have been carried out, and include consideration of and modification by realistically assumed mining, metallurgical, economic, marketing, legal, environmental, social and governmental factors. These assessments demonstrate at the time of reporting that extraction could reasonably be justified.
Project capital
Capital expenditure to either bring a new operation into production; to materially increase production capacity; or to materially extend the productive life of an asset.
Pyrite flotation
This is the addition of a suite of chemicals to a mixture of ground ore and solution in such a way that a froth rich in pyrite, which also contains gold, floats to the surface for collection.
 |  R
Realised non-hedge derivatives
Represents the current year income statement effect of non-hedge derivatives that were settled during the current year.
Reclamation
In the South African context, reclamation describes the process of reclaiming slimes (tailings) dumps using high-pressure water cannons to form a slurry which is pumped back to the metallurgical plants for processing.
Recovered grade
The recovered mineral content per unit of ore treated.
Reef
A gold-bearing sedimentary horizon, normally a conglomerate band, that may contain economic levels of gold.
Refining
The final purification process of a metal or mineral.
Rehabilitation
The process of reclaiming land disturbed by mining to allow an appropriate post-mining use. Rehabilitation standards are defined by country-specific laws including, but not limited to the South African Department of Minerals and Energy, the US Bureau of Land Management, the US Forest Service, and the relevant Australian mining authorities, and address among other issues, ground and surface water, topsoil, final slope gradient, waste handling and re-vegetation issues.
Region
Defines the operational management divisions within AngloGold Ashanti and these are South Africa, Argentina, Australia, Brazil, Ghana, Guinea, Mali, Namibia, Tanzania and United States of America.
Related party
Parties are considered related if one party has the ability to control the other party or exercise significant influence over the other party in making financial and operating decisions.
Reserves (Ore reserves)
That part of a mineral deposit which could be economically and legally extracted or produced at the time of the reserve determination.
Return on equity
Adjusted headline earnings expressed as a percentage of the average equity, adjusted for the timing of acquisitions and disposals.
Return on net capital
Adjusted headline earnings before finance costs and unwinding of decommissioning and restoration obligations expressed as a percentage of average net capital employed, adjusted for the timing of acquisitions and disposals.
Rod and tube mills
These are types of circular grinding mills used to break the ore down into fine particles in preparation for dissolving out the gold by means of cyanide.
 |  S
Secondary gold recovery
Any scavenging process for gold following initial primary gold recovery.
Seismic event
A sudden inelastic deformation within a given volume of rock that radiates detectable seismic waves (energy).
Shaft
A vertical or subvertical excavation used for accessing an underground mine; for transporting personnel, equipment and supplies; for hoisting ore and waste; for ventilation and utilities; and/or as an auxiliary exit.
Significant influence
The ability, directly or indirectly, to participate in, but not exercise control over, the financial and operating policy decision of an entity so as to obtain economic benefit from its activities.
Skarn
A rock of complex mineralogical composition, formed by contact metamorphism and metasomatism of carbonate rocks.
Sliping
The widening of an existing excavation, either by mechanical or explosive means so as to increase its overall dimensions.
Smelting
A pyro-metallurgical operation in which gold is further separated from impurities.
Stay-in-business capital
Capital expenditure to maintain existing production assets. This includes replacement of vehicles, plant and machinery, ore reserve development and capital expenditure related to safety, health and the environment.
Stopes
Underground excavations where the ore body is extracted on the plane of the reef.
Stoping
The process of mining the ore body on the plane of the reef.
Stoping width
The sum of the channel width and external waste widths.
Stripping ratio
The ratio of waste tons to ore tons mined calculated as total tonnes mined less ore tonnes mined divided by ore tonnes mined.
Syngenetic
Formed contemporaneously with the deposition of the sediment.
 |  T
Tailings
Finely ground rock of low residual value from which valuable minerals have been extracted.
Tailings dam (slimes dam)
Dams or dumps created from tailings.
Thermal regeneration
The process of heating activated carbon granules typically to 750 degrees Celsius to restore the properties of carbon for the next gold extraction cycle.
Thrusting event
A period of structural compression in geological time with the generation of low-angle thrust faults.
Tonne
Used in metric statistics. Equal to 1,000 kilograms.
Ton
Used in imperial statistics. Equal to 2,000 pounds. Referred to as a short ton.
Tonnage
Quantities where the ton or tonne is an appropriate unit of measure. Typically used to measure resources and reserves of gold-bearing material in situ or quantities of ore and waste material mined, transported or milled.
Total cash costs (total cash costs per ounce)
A measure of the average cost of producing an ounce of gold, calculated by dividing attributable total cash costs in a period by attributable total gold production (in ounces) over the same period. Total cash costs include site costs for all mining, processing, administration, royalties and production taxes, as well as contributions from by-products but are exclusive of depreciation, depletion and amortization, rehabilitation, employment severance costs, corporate administration costs, capital costs and exploration costs. Total cash costs per ounce amounts do not represent, and should not be considered substitutes for or measures of costs and expenses reported by AngloGold Ashanti in accordance with US GAAP.
Total production costs (total cash costs per ounce)
A measure of the average cost of producing an ounce of gold, calculated by dividing attributable total production costs in a period by attributable total gold production (in ounces) over the same period. Total production costs represent total cash costs, plus depreciation, depletion and amortization, employee severance costs and rehabilitation and other non-cash costs. Total production costs per ounce amounts do not represent, and should not be considered substitutes for or measures of costs and expenses reported by AngloGold Ashanti in accordance with US GAAP.
Tramming width
A dimension used to denote the effect of waste tons in the stoping operation, such as from gullies, on the reef tons produced. It is the sum of the channel width plus the impact of waste tonnage in the stoping operations, e.g. from gullies and extraneous falls of ground, expressed in centimetres.
Tribute agreement
A legal agreement between two parties in which one party makes a portion of its mining rights available to the other party for exploitation, in consideration for a share in the revenue and costs derived from such mining rights.
Troy ounce
(Used in imperial statistics) Equal to 31,10348 grams.
 |  U
Unrealised non-hedge derivatives and other commodity contracts
This represents the change in fair value, including translation differences, of all open non-hedge derivative positions and adjustments to other commodity contracts from the previous reporting date to the current reporting date.
 |  V
Vibroseis survey (3D survey)
Geophysical technique used to generate seismic waves of controlled frequencies. These waves reflect from rock interfaces and are analyzed to produce three-dimensional images of the sub-surface geological structure with a resolution of around 25 meters. This process facilitates accurate long-term mine planning.
 |  W
Waste
Material that contains insufficient mineralization for consideration for future treatment and, as such, is discarded.
Weighted average number of ordinary shares
The number of ordinary shares in issue at the beginning of the year, increased by shares issued during the year, weighted on a time basis for the period during which they have participated in the income of the group, and increased by share options that is virtually certain to be exercised.
 |  Y
Yield
The amount of valuable mineral in the ore expressed as grams per tonne or troy ounces per short ton.
Yield
The amount of valuable mineral or metal recovered from each unit mass of ore expressed as ounces per short ton or grams per metric tonne.
 |  Z
Zinc precipitation
Zinc precipitation is the chemical reaction using zinc dust that converts gold solution to a solid form for smelting into unrefined gold bars.

Abbreviations
Abbreviations
$ United States dollars
A$ Australian dollars
ADS American Depositary Share
bn Billion
Capex Capital expenditure
CHF Swiss Francs
CLR Carbon Leader Reef
FCFA Communauté Financiére Africaine Francs
FIFR Fatal Injury Frequency Rate per million hours worked
g Grams
g/t Grams per tonne
g/TEC Grams per total employee costed
kg Kilograms
Libor London interbank offer rate
LOM Life-of-mine
LTIFR
Lost Time Injury Frequency Rate per million hours worked Note that AngloGold utilises the strictest definition in reporting Lost Time Injuries in that it includes all Disabling Injuries (where an individual is unable to return to his place of regular work the next calendar day after the injury) and Restricted Work Cases (where the individual may be at work, but unable to perform full or regular duties on the next calendar day after the injury) within this definition.
m²/TEC Square metres per total employee costed
m Metre or million, depending on the context
Moz Million ounces
Mt Million tonnes or tons
Mtpa Million tonnes/tons per annum
N$ Namibian dollars
NOSA National Occupational Safety Association
oz Ounces (troy)
oz/t Ounces per ton
R or ZAR South African rands
RIFR Reportable Injury Frequency Rate per million hours worked
t Tons (short) or tonnes (metric)
tpa Tonnes per annum
tpd Tonnes per day
tpm Tonnes per month
VCR Ventersdorp Contact Reef

 

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