Global Growth from an African Base

1
Global Growth from an African Base
Investing in the Americas March 29 1999
2
3 original objectives
3
Corporate structure prior to AngloGold merger
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Current AngloGold structure
PUBLIC SHAREHOLDERS
ANGLO AMERICAN GROUP
53
47
53
47
ANGLOGOLD
ANGLOGOLD
Operations
Operations
Mineral rights
Mineral rights
Exploration
Exploration
Management
Management
SOUTH AFRICA
NORTH AMERICA
SOUTH AMERICA
REST OF AFRICA
5
Current AngloGold structure
PUBLIC SHAREHOLDERS
ANGLO AMERICAN GROUP
53
47
53
47
ANGLOGOLD
ANGLOGOLD
Operations
Operations
Mineral rights
Mineral rights
Exploration
Exploration
Management
Management
REST OF AFRICA
NORTH AMERICA
SOUTH AMERICA
SOUTH AFRICA
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1999 objectives

• At current gold prices, increase profit margin

• Extend future reserves and resources

• Expand gold markets

• Grow shareholder value to compete with
• other investment types

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Extending future reserves
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The strategy

• 7 million ounces per annum

• Quality replenishment _at_ US200/oz

• Balanced country technical risk

9
Future production needs
8.00
7.00
Gap
6.00
Navachab
Sadiola
5.00
Minorco
Attributable Ounces (moz pa)
4.00
Ergo
3.00
Joel
FSO
2.00
VRO
1.00
WWO
0.00
1999
2001
2003
2005
2007
2009
2011
2013
2015
2017
2019
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Country risk
Preferred Profile
Current Momentum

100
100
Non-Africa
50
Africa
50
S. Africa
0
0
0
5
10
0
5
10
Years
11
Technical risk
Preferred Profile
Current Momentum
100
100
0-1000m
50
1-2000m
50
gt2000m
0
0
0
5
10
0
5
10
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The new paradigm

• Exploration expenditure _at_ US10 per
• production ounce

• Acquisitions partnerships which add value

• Diversified portfolio

• Double digit returns

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Targeted gold environments
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Western Ultra Deep Levels

• Potential 30 million oz
• opportunity

• 3 500 to 5 000m below surface

• Ventersdorp Contact Reef
• Carbon Leader Reef

• 8 surface drill holes

• 15 underground holes

• US17 million over 4 years

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African exploration assets
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Active properties
Jerritt Canyon
U.S.A
Epithermal/plate margin
Greenstone
Pikes Peak
Mexico
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Nevada mines and AngloGold properties
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Amapari Project N.E. Brazil
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Active properties and exploration
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Other areas
Current cost of discoveries -
US8/oz
Future target well below US20/oz
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Acquisition criteria

• The Triple 2

• 2m oz reserve/resource

• gt200 000 oz production p.a.

• lt200 /oz cost

• Double digit returns

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Realizing opportunities

• Search for value

• Exploration

• Acquisition

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A Company for the New Millennium