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    Leroy Mnguni • HSBC

    Leroy Mnguni's questions to Anglogold Ashanti PLC (AU) leadership

    Leroy Mnguni's questions to Anglogold Ashanti PLC (AU) leadership • Q2 2024

    Question

    Leroy Mnguni of HSBC questioned the high effective tax rate, asked for clarification on non-recurring items in HEPS, and inquired if the successful Underhand Drift and Fill mining method could be applied more broadly at Obuasi.

    Answer

    CFO Gillian Doran clarified that the current tax rate is 32%, but a non-cash deferred tax adjustment in Brazil and Argentina inflates the effective rate. She identified a hedging loss and closure provisions in Brazil as the main one-off items impacting earnings. CEO Alberto Calderon added that the underhand method will be used in areas with difficult ground conditions, like parts of Block 10, but is not intended to fully replace other methods.

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    Leroy Mnguni's questions to Anglogold Ashanti PLC (AU) leadership • H1 2024

    Question

    Leroy Mnguni of HSBC inquired about the drivers of the high effective tax rate, any non-recurring items impacting HEPS, the potential to expand the use of the Underhand Drift and Fill mining method at Obuasi, and the status of potential sales for the CdS and Serra Grande assets.

    Answer

    CFO Gillian Doran clarified the high tax rate was due to a $75 million non-cash deferred tax adjustment in Brazil and Argentina, with the current tax rate at 32%. She identified a hedging loss and Brazil closure provisions as one-offs affecting earnings. CEO Alberto Calderon stated the underhand method is for difficult ground conditions and that talks continue with a potential buyer for CdS. He noted Serra Grande is now cash-positive, reducing the urgency to sell, though a sale would be considered at a reasonable price after key liabilities are addressed.

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