Good day, ladies and gentlemen, and welcome to the AngloGold Ashanti First Quarter 2014 Results. All participants are now in listen-only mode and there will be an opportunity for you to ask questions after today's presentation. [Operator Instructions] Please also note that this conference is being recorded. I would now like to hand the conference over to Sabrina Brockman. Please go ahead.

Thank you, Dylan. And welcome everyone, to AngloGold Ashanti's results for the first quarter of 2014. Before moving on with our presentation, I am just going to quickly cover the safe harbor statement. Certain statements contained in this presentation, other than statements of historical fact, including without limitation, those concerning the economic outlook for the gold mining industry, expectations regarding gold prices, production, cash costs, all-in sustaining costs, cash savings and other operating results, return on equity, productivity improvements, growth prospects and outlook of AngloGold Ashanti's operations, individually or in aggregate, including the achievement of project milestones, commencement and completion of commercial operations of certain of AngloGold Ashanti's exploration and production projects, and the completion of acquisitions and dispositions, AngloGold Ashanti's liquidity and capital resources and capital expenditures, and the outcome and consequences of any potential and pending litigation, or regulatory proceedings or environmental health and safety issues are forward-looking statements regarding AngloGold Ashanti's operations, economic performance and financial condition. These forward-looking statements or forecasts involve known and unknown risks, uncertainties and other forecasts that may cause AngloGold Ashanti’s actual results, performance or achievements to differ materially from the anticipated results, performance or achievements expressed or implied in these forward-looking statements. Although AngloGold Ashanti believes that the expectations reflected in such forward-looking statements and forecasts are reasonable, no assurance can be given that such expectations will prove to have been correct. Accordingly, results could differ materially from those set out in the forward-looking statements as a result of, among other factors, changes in economic, social and political and market conditions, the success of business and operating initiatives, changes in the regulatory environment and other government actions, including environmental approvals, fluctuations in gold prices and exchange rates, the outcome of pending or future litigation proceedings, and business and operational risk management.…

Thanks, Sabrina. Good morning, ladies and gentlemen. For those of you who have the slides before you, we are on Slide number five, if we can kick off by recapping on the strategy that we've been articulating each quarter, five building blocks to our strategy, the foundation being focused on safety, people and sustainability. The second pillar around ensuring that we have financial flexibility to implement our strategy; the third is around optimizing all forms of costs and capital expenditure, the fourth around improving our portfolio of quality and making the assets work harder, and finally ensuring that we keep our long term optionality intact as part of the strategy. The end result is a business with strong foundation and fundamentals, a team that is committed and focused on delivery and a sustainable free cash flow coming through from a diversified quality portfolio. Before going to the results for the quarter, on Slide 6 if we can look at our safety performance, we strive to achieve zero harm and in terms of all injuries, our All-Injury Frequency Rate was 7.76 for the first quarter of 2014 and it represents the number of injuries per million man hours worked and was the best ever first quarter injury rate which we've seen in the history of the company. We have had 20% less injuries year-on-year and 8% fewer days lost, 11 operations ended the quarter with zero lost time injuries and six operations with zero injury. South Africa was a standout performer. For the first time, an underground mine in South Africa recorded three million fatality free shifts and at Kopanang, Great Noligwa and TauTona had one million fatality free shifts. Having said those positives, the disappointment was after two months of being fatal free January and February, we had three fatalities…

Thank you, Venkat and welcome to everybody. I would just like to reiterate the magnitude of the performance at Kopanang, achieving three million five full free shifts in the record for South Africa -- our suite of South African mines. That took him 900 days to achieve and certainly hit the new benchmark for us and does show that the work we've been doing and talking about around EPS over many quarters now is showing results as Kopanang was the mine that started first and certainly at the deepest implementation and the quickest. If we move to Kopanang in terms of their production however, it's quite ironic that they also had quite a significant safety stoppage from the regulator over this quarter, which affected their production quite adversely. We had that discussion with the regulator to ensure that we all were on the same page and we understand what they expect and they understand what it is we are trying to do because we both are trying to achieve the same thing of zero harm. During the quarter, if we compare to the first quarter of 2013, we see planned deductions at Great Noligwa and this is a portion of TauTona due to grade in an attempt to ensure that we don't mine ounces that don't have a decent margin. The sustained good production that -- performance at Moab Khotsong was good to see and we expect that to continue. Problems during the quarter at Mponeng, we had a poor start to the year, which resulted in many of the stopping crews not being able to achieve the increased face advance targets, which we have set and are planning for in order to try and increase the productivity at that mine. However, the guide across the South African assets from…

Thank you, Mike. Good morning, everyone. Before I talk about the operational outcome for quarter one, I would like to give an update on the cost rationalization project also referred to previously as Project 500. This work was -- work commenced in late quarter two 2013 with an objective of pulling $500 million from our operational spend profile, over an 18-month timeframe with an end date of quarter four 2014. Documented cost removals from the operation totaled $136 million for quarter three and quarter four 2013. Additional cost were included in our 2014 business plan that well exceeded our $500 million target. So, if we meet our planned cost, the project will have met its objective. For quarter one, our all-in sustainable costs was 7% below our target, at 990 per ounce. With this outcome, this supports meeting or exceeding the cost rationalization target. Some examples of some specific work during quarter one include contract mining rates at Sadiola and Siguiri were reduced by 14% and 16% respectively, which results in about $15 million annual cost reduction. Additional work on localization, basically looking to localize workforce across the operations has resulted in an annualized savings of $13 million. Renegotiation of cyanide supply in West Africa also resulted in about $10 million annual savings. Considerable work has been done on stores, inventory and working capital. Even though this is not cash cost, but it impacts our balance sheet and we've set a target of $100 million reduction in inventories. Although this will be completed by the end of the year we’re well down the path of meeting that target. From an operational standpoint, good work has been done at Sunrise Dam that has resulted in Jumbo development rates increasing from 330 meters to 420 meters per month. This coupled with truck…

Thanks Ron. Hi all. Today, I’ll cover our project going to the exploration and wrap with Obuasi. This will be my final piece on Tropicana on Slide 18. The Tropicana project is now complete and handed over to Ron and his team. Ramp up is going very well with quarter one delivering a 120,000 ounces on a 100% basis. Ongoing capital now will be small and related to stay in business capital. The official opening for the mine was celebrated on the 6th of March and was opened by the West Australian Minister for Mines, The Honorable Bill Marmion. The next slide shows two control charts, these control charts shows the throughput and run time since the 1st of January, 2014. You’ll note that mill throughput is consistently above design at 17,000 tons per day and operating time measured as run hours per day shows very little down time. Run time in March was 95% and is running at about 99% for the last month. In regard to Kibali -- the Kibali oxide circuit operated quite well during quarter one, but with a few material handling and equipment issues as might be expected. Quarter one gold production exceeded our budget achieving 113,000 ounces on a 100% basis. So far circuit commissioning is now in progress and will result in progressively higher production in quarter two and quarter three. Underground development is going particularly well. Decline in lateral development has now advanced 5,600 meters project to-date with 1,650 meters in quarter one. Notably grade-control drilling from the underground development has intersected the 5,000 load where expected. The shaft has reached now a depth of 416 meters and is progressing quite well. In regard to Cripple Creek and Victor, the mine life extension project continues on schedule and on cost. Mill construction…

Thank you, Graham. I’m now on Slide 27. Our ongoing efforts to address our cost structure across the business are reflected in the 22% year-on-year reduction in our all-in sustaining costs from $12.75 an ounce in quarter one last year to $993 an ounce in this quarter. Whilst weakening local currencies contributed some $95 an ounce of $282 an ounce reduction, lower operating corporate and exploration costs contributed a $100 an ounce with reduced stay-in business capital contributing a further $104 an ounce. As you would see when I talk to our Q2 outlook a little later on, we expect stronger local currencies to reverse some of the gains in quarter one. The year-on-year reduction in all-in costs is even more marked, with lower project spend in this quarter following the completion of Tropicana and Phase 1 of Kibali, resulting in a reduction of $508 an ounce or 31% from $16.22 an ounce in quarter one last year to $1,114 an ounce in quarter one 2014. Turning to earnings, you will see that we have more than offset the $214 million negative impact on our earnings on the back of the $340 an ounce or 21% drop in the spot gold price through additional lower cost ounces and significantly lower corporate, marketing and exploration costs. You would have seen from Venkat's highlights slide that Tropicana and Kibali feature prominently in contributing to these lower cost incremental ounces. The significant improvement in underlying operating performance resulted in a $237 million improvement in our cash flow for this quarter as compared to the same quarter in 2013 and resulted in earlier than expected cash generation in quarter one will be at modest. Notwithstanding a slight improvement in our net debt, our net debt to EBITDA ratio increased marginally from 1.86 to 1.89…

Thank you, Richard. If we can move on to Slide number 32, what you see before you is the gold price tracked from around April 2012 to April 2014. As you can see, the impact of the gold price drop has been formidable within an 18-month period and AGA had to adapt very quickly with a rapid turnaround response and we have successfully done that and if you look at the ultimate measure, which is the free cash flow, which is after all outgoings; tax, interest, capital, the whole lot, in the second quarter of 2013, we were negative $497 million. In the third quarter of 2013, we were negative $205 million. In the fourth quarter of 2013, we were negative $82 million and in the first quarter of 2014, we are positive $9 million. On Slide number 33, we've put together what the production has done during 2013 quarter on quarter and what the all-in sustaining costs have done over the same period and bearing in mind that the first quarter and to a certain extent, the second quarter tend to be not only our weaker quarters, we've superimposed on that slide, what the first quarter of 2014 production, and all-in sustaining cost were. The key messages from the slide are, we've pulled together five quarters of consistent good delivery in pretty challenging market conditions. As a team, we've been able to show production growth and cost decline over this period. Quarter one and quarter two tend to be weaker quarters, but as you can see year-on-year improvement is noticeable both on production and on cost. Having said that, we should never underestimate the headwinds, which continue to be formidable in a business like ours and it may cost us to miss a quarter here and there, but certainly…

Thank you, sir. [Operator instructions] Our first question comes from Andrew Byrne of Barclays. Please go ahead.

Hi, good afternoon guys. A quick question as regards the comments around prioritizing debt reduction. I suppose the drop-out of that is what do you see as a sustainable level that AngloGold can carry if we assume a gold price plus or minus around the current levels? And I suppose the follow-on question from that is how would you look to achieve that? Would you consider an equity capital raise for instance to take it to that level, or would that be a last resort?

Hi Andrew, it's Richard Duffy here.

Hi Richard.

Hi, how are you doing? As you know, we have been working on addressing our balance sheet flexibility and liquidity since our 1.25 billion bond issue around the middle of last year and we really did that in response to the sharp pullback in the gold price as you noted. So going forward, we will continue to ensure that our balance sheet is able to meet the requirements of the business at whatever the prevailing gold price is.

Sure, okay. So if you're saying at the moment you recognize that it's too high, what would be the level that you'd be comfortable with now and then?

Again Andrew, we have indicated that we've been prioritizing paying down debt, which we did particularly in quarter one assisted by a tax refund. So we will continue to pay down debt and we will continue to monitor where the balance sheet is and the gearing relative to where the gold price is. So we continue to focus on flexibility and liquidity.

Sure, okay. And then a follow-up question, probably directed towards Graham really. Just with regard to Colombia, could you just recap where we are in terms of the -- with La Colosa and Gramalote and just how you see the region developing over the next two to three years? Given Richard's comments just a few moments ago, is it something that you -- is it a region that you can see Anglo developing at the moment or would you need to look for either external funding or look to potentially realize some value by potentially selling those projects.

I think to summarize Colombia I think you need to look at the projects as remaining in prefeasibility stage for the next couple of years. I can't see them coming out of prefeasibility and moving into project commitment. In regard to Gramalote, we are moving now through a stage of an enhanced pre-feas study, which is testing resource upside, redesign of the pit and also some options that would pull back capital cost and operating cost on Gramalote. That work is going to take us a while longer before we would finalize a non-option to move it through the feasibility. When we get to that point, we will take a decision in regard to the progress for Gramalote. In regard to Colosa, have been looking at a large project option, which involved a very large facility off mountain. That was a capital cost that was getting rather high. We are now focusing back on a higher grade proportion of the resource, with a non-mountain option both for processing and for tailing. That will take a little while to work through and again there is a number of options and permutations in that configuration and that will take a bit of time.

Sure, thanks. Just want to…

The newest development is really Nuevo Chaquiro, and I think I've covered that.

Yes exactly and that sounds quite exciting really. Again, more problems, all good problems, but not for Richard. A question then just on those projects in Colombia. Is there anything that you do need to do to keep those options open or any timelines where suddenly those options lapse.

Yes, this is Ron, there are some specific times that we were managing on the tenement packages there and each one are different. You’ve been -- when we commenced work and we do have time, but we have to manage that time, there is 11-year timeframe between when you take the tenement and when you have to have the permits in hand and so yes, we are managing those.

Okay. And the first one then that's likely to lapse, do you happen to know the timeframe on that? I think is it La Colosa perhaps.

We still have those times. They are well within the region of being able to continue to study these and give us flexibility.

Andrew, with regard to your question on tenement timing and the discussions with Colombia, because I was there a couple of months ago talking to the regulators there, they are very supportive in terms of actually meeting with us and making a joint decision in this regard and your other question was whether we would be considering opening up avenues in terms of partnership, joint ventures etcetera to get some value out of Colombia, of course yes, for the right price.

Yes, great. Thanks. I think I've taken up enough time but well done on a good quarter and look forward to seeing you soon.

Thank you.

Ladies and gentlemen, as we have no further questions, on behalf of AngloGold Ashanti, that concludes this conference. Thank you for joining us. You may now disconnect your lines.