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Managing our risks and opportunities

AngloGold operates in a constantly changing and complex environment that presents risks to our business.

The governance of risk is entrenched in the Board’s structure and oversight.

Our risk management approach must be flexible in responding to the challenges that confront us while we continue to pursue value-creating opportunities. This is key to the long-term success of our business.

We have established structures, processes and protocols to allow us to manage risk in this fashion. In 2022, however, we reviewed our Group Risk Management Framework taking into consideration our new Operating Model.

The revised Group Risk Management Framework adheres to the King IV Corporate Governance Risk Principles, ISO 31000 and the Committee of Sponsoring Organisations (COSO) Enterprise Risk Management Framework.

The Board and CEO are committed to ensuring that risk is managed effectively to ensure we meet our strategic business objectives. Our Group Risk Management Framework aims to provide assurance that all risks across the Group have been properly assessed, mitigated, and monitored, within appropriate risk tolerance levels.

Risk management framework

Effective risk management requires that we identify, assess, evaluate and respond to the risks faced by the business. In order to do this effectively we reviewed our Risk Management Framework to align AngloGold Ashanti’s risk management practices with the new Operating Model. This resulted in a revised Framework, where we replaced the standalone Risk Policy through with risk management principles embedded in various Group policies and set a minimum standard of risk management as part of the work we do.

The Framework applies across the Company and to its managed entities. It guides us in a proactive and systematic way to monitor potential risks and opportunities. These can be associated with uncertainty, societal and political transition, economic fluctuations, regulatory changes and operational and production risks across all areas of our business and by all levels of management.

The governance of risk is entrenched in the Board’s structure and oversight. A level of risk governance is also embedded in the new Operating Model’s single-point accountability function and in the revised new Group Delegation of Authority. The Group Risk Appetite and Tolerance Statement is a Board accountability function and requires Board approval to ensure the enterprise and operational matrices used to assess risks adequately reflect the threshold of acceptable risk for the Group. Assurance, mainly through the Group Internal Audit department, is an integral part of our overall risk governance.

Risk management is integral to business activity and is integrated into Group-wide policies with our risk strategy part of executive accountability. The Group Risk Management Standard is an integral part of our Group-wide suite of Standards.

Role of the Board, Audit and Risk Committee, Executive and management

The new Operating Model has introduced more direct employee accountability, which leads to more efficient operations with the ability to create and unlock value for the organisation. The Board, which has ultimate accountability for the oversight of management of our risks, provides oversight of AngloGold Ashanti’s Risk Management Framework and determines the organisation’s risk appetite and tolerance.

The Audit and Risk Committee is accountable for risk governance and risk management system oversight.

The CEO is responsible for determining the risk management philosophy and approach and the adoption of the risk management standards set.

Management is accountable for effective management of risk and reviewing mitigations that are in place, in accordance with the risk management methodology.

Group Internal Audit provides independent assurance, based on a periodic evaluation of controls and compliance, as well as an objective view of delivery on the risk management process.

Our risks and opportunities are identified at an operational and Business Unit level.

Group Risk Management Framework


Increasing our asset potential

We continue to prioritise careful allocation of capital. The Full Potential Programme (FP) is central to this and is designed to optimise efficiencies and achieve cash cost reductions through improvements in key mining activities, improved metallurgical recovery, and reduced downtime, among others. The programme is site-owned and led, and the General Manager of each operation is accountable for understanding and delivering the full potential of their asset. Governance is provided by a central Steering Group which provides strategic direction to the site teams. See the CEO’s review, Improve portfolio quality and Strategic trade-offs in this report.

Improving on systematisation

The FP allows us to take a step back and reassess the business as a whole. We have reflected on the models applied and our systems and processes. This has provided opportunities to introduce continuous improvement through reviewing practices, benchmarking against best practice and, where applicable, seeking external advice.

The initiative enables us to focus on our key strategic objective, of gaining cost competitiveness. See How we create value, Our business model and Optimise overhead, costs and capital expenditure.

Emerging risks


Disruption to global markets post COVID-19 lockdowns and as a result of Russia’s war on Ukraine, has exposed vulnerabilities in the security of supply of certain raw materials for industrial production.

The mining sector, like many others, faces a new reality of having to mitigate inflationary impacts across a range of inputs while dealing with macroeconomic shocks that may impact operations and costs.

Global trade restrictions are likely to further impede supply chains with certain constraints in supply of strategic commodities being experienced at an operational level.

Rising geopolitical tensions and conflicts are likely to further exacerbate supply blockages for goods and services and will contribute to cost increases.

Gold resources are finite and this presents challenges for growth that requires investment in exploration and the maintaining of high-quality mines.


Societies have not fully recovered from the COVID-19-related shutdowns and related health, economic and social impacts. Precarious global economic conditions, with growing political uncertainty and geopolitical tension, has resulted in a more difficult socio-economic environment in some areas. Mining companies are faced with the challenges of maintaining an effective social compact under these challenging conditions, particularly in certain developing markets, including some in which we operate. Greater fiscal pressures through changing legislation are often coupled by greater social demands, with both stemming from deteriorating macroeconomic conditions.

As the socio-economic situation deteriorates, security risks may rise in tandem, especially in remote regions where we operate. We are also likely to see increasing localisation pressures from both communities and governments and administrations searching for avenues to increase fiscal revenues.

Our top 10 residual Group risks

Our risks are assessed over the short, medium and long term. The heat map below shows the residual rating for each of our top 10 risks
over a three-year view (medium term). Residual risk is the Company’s exposure to a particular risk once mitigation measures have been
applied to the inherent risk.


Mining is a long-term business, and so our strategy aims to create sustained value over the life of our mining operations and beyond. This involves careful allocation of key resource inputs – the natural, human, intellectual, financial, manufactured, and social and relationship capitals – which are essential to achieving this aim.

For detail on our strategy and strategic focus areas, see Our strategy – an overview

Our principal risks

Our risks are assessed over the short, medium and long term. Not all of these factors contributing to our principal risks are within the control of management as they are influenced by exogenous factors. These external factors include among other things COVID -19 and its lingering impacts on employees, supply chain resilience, resource nationalism, macroeconomic factors, the gold price, and unforeseen events in our areas of operation. These factors carry varying degrees of uncertainty and at times require agile responses to manage the risks. For more on these external factors, see Our external operating environment in this report.

Risk Mitigation action Strategic focus areas impacted Committee oversight


Adverse regulatory changes to mining rights and fiscal requirements

Experience shows that political, tax and economic laws and policies in our operating jurisdictions can change quickly. We operate in countries that can from time-to-time experience a degree of social and political instability as well as economic uncertainty.

  • Conduct regular, inclusive engagement and broader collaboration with governments, communities and NGOs
  • Continuously monitor legislative, regulatory and political landscape
  • Make use of joint venture alliances with local companies in line with host country’s regulatory requirements to improve participation of host-country industries
  • Seek to ensure compliance with relevant country legislation and regulation
  • Have in place a government relations framework to guide engagement
  • Social, Ethics and Sustainability Committee
  • Audit and Risk Committee


Failure to successfully deliver and ramp up growth projects

Failure to develop and operate projects in line with expectations could negatively impact business performance.

  • Create multi-disciplinary steering committees
  • Adopt robust approach to regular stage-gate project reviews to assess projects and allocate capital in accordance with our capital allocation framework
  • Seek to ensure appropriate project skills, systems, structures and governance are in place
  • Ramp up safe operations at Obuasi
  • Minimise supply chain disruptions, retain critical commodities, reduce and or plan for extended lead times

Feasibility study and due diligence

  • Quebradona — optimise feasibility study and prepare a new Environmental Impact Assessment to submit with the Company’s new licence application
  • Investment Committee


Adverse future implications of event risks

Potentially catastrophic events include among other events the COVID-19 pandemic, a TSF failure and our inability to ensure ongoing business liquidity. Such events could have significant financial consequences and cause fundamental changes in the way we operate.

  • Ensure adequate liquidity and bond submissions in anticipation of events
  • Comprehensive TSF governance and management framework, standards and guidelines developed to address tailingsrelated risks
  • Convert conventional TSFs to filtered tailings deposition in Brazil to comply with regulatory requirements
  • Seek to ensure effective project management of conversion to dry stacking
  • Prepare plans for the buttressing of the Calcinados TSF at the Queiroz plant in Brazil in order to align the post-liquefaction safety factor with the international standards currently considered best practice. This follows completion of a risk assessment, required by the new regulation and overseen by external consultants. See related Media release .
  • Social, Ethics and Sustainability Committee
  • Audit and Risk Committee


Inability to convert Mineral Resource and Mineral Reserve

It is essential to replace depleted Mineral Reserve in order to maintain or increase production in the long term. If not, our operational performance, financial condition and prospects will be adversely affected.

Short term

  • Improve Mineral Reserve development to create flexibility for mines to cope with unexpected events that might interrupt and hinder delivery on the mine plan
  • Conduct greenfields and brownfields exploration to replenish mineral inventory
  • Increase conversion of the Mineral Resource to Mineral Reserve
  • Apply robust business planning, portfolio optimisation and feasibility studies to support Mineral Reserve conversion

Long term

  • Implement focused greenfields exploration targeting new discoveries
  • Investment Committee


Failure to meet our operational and safety targets

Unplanned stoppages and unforeseen operational interruptions, and operational accidents or injuries that can impact production could adversely impact business.

  • Seek to ensure delivery of business plans by focusing on Mineral Resource modelling, integrated business planning and execution
  • Improve Mineral Reserve life and enhance planning certainty
  • Maintain operational excellence programmes aimed at improving efficiency
  • Focus on safe production across all operations with a goal of zero harm including implementation of refreshed safety strategy
  • Continue ongoing monitoring of physical and mental health of employees and response planning
  • Investment Committee
  • Audit and Risk Committee
  • Social, Ethics and Sustainability Committee


Failure to move down the industry cost curve – all-in sustaining cost competitiveness

Margins and free cash flow are at risk when the gold price remains static or declines, when production targets are not met or when costs increase, with a potentially adverse impact on our financial position.

  • Complete the Full Potential Programme to optimise asset performance
  • Drive operational excellence programmes
  • Introduce lower cost ounces to the Mineral Reserve and, ultimately, the production base
  • Optimise capital to generate maximum returns
  • Implement new Operating Model to improve effectiveness, ensure better operational outcomes and reduce costs
  • Audit and Risk Committee
  • Investment Committee


Loss of or threats to social licence to operate

Failure to operate in a sustainable and responsible manner to provide benefits to communities could threaten our social licence to operate and adversely impact our financial position.

  • Target stakeholder mapping and engagement
  • Monitor legislative, regulatory and political landscape in anticipation of negative impact on business
  • Meet local content and localisation requirements
  • Share economic benefits with host countries and communities
  • Review sustainability performance with general managers and increase overall awareness among senior management cohort across all operations
  • Continue to assess status of social licence to operate at operations
  • Social, Ethics and Sustainability Committee


Adverse gold and commodity price, and currency movements

Lower spot prices and strengthening of currencies in host countries will adversely impact our ability to generate free cash flow.

  • Enhance cost competitiveness by improving quality of the portfolio
  • Focus on cost, efficiencies, and capital discipline
  • Maintain long-term optionality by ensuring competitive project pipeline
  • Improve debt profile and interest cost of capital
  • Apply conservative gold price and currency planning assumptions
  • Conduct sensitivity analyses on gold price, production, exchange rates and Group risk adjustments
  • Implement new Operating Model to improve effectiveness
  • Audit and Risk Committee
  • Investment Committee


Inability to meet investor expectations on responsible mining (ESG performance)

Irresponsible mining practices and/or perceptions of insufficient commitment to ESG standards could lead to an adverse impact on the price of our securities and our social licence to operate.

  • Conduct regular engagement and collaboration with stakeholders
  • Undertake transparent reporting and public disclosure
  • Review sustainability performance with general managers and increase overall awareness among senior management cohort across all operations
  • Seek to ensure good corporate citizenship, governance and disclosure
  • Manage and limit environmental impacts and progress achievement of targets
  • Integrate climate considerations into the business and undertake physical climate risk assessments for all operations
  • Implement Climate Change Strategy
  • Include stakeholders in COVID-19 response plans
  • Implement a human rights framework
  • Enhance diversity and inclusion practices
  • Investment Committee
  • Social, Ethics and Sustainability Committee


Failure to attract and retain critical skills and talent

Inability to retain and attract sufficiently skilled and experienced employees may harm our business and growth prospects. Having the right people with the required skills is vital to the efficient conduct of our business and strategic delivery.

  • Implement development planning and deployment initiatives to ensure internal skills building and a future pipeline
  • Develop value proposition of AngloGold Ashanti as an employer of choice
  • Increase training capacity for scarce artisan skills
  • Implement short- and long-term incentive schemes
  • Conduct employee engagement surveys and act on feedback
  • Enable flexible working functionality to attract a diverse workforce
  • Develop global mobility programme to enable skills retention
  • Social, Ethics and Sustainability Committee
  • Remuneration Committee

Prioritise people, safety, health and sustainability

Maintain financial flexibility

Optimise overhead, costs and capital expenditure

Maintain long-term optionality

Improve portfolio quality

2022 suite of reports

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