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AngloGold Ashanti Limited
Registration No. 1944/017354/06
Incorporated in the Republic of South Africa
Share codes:
ISIN: ZAE000043485
JSE: ANG
NYSE: AU
ASX: AGG
GhSE: (Shares) AGA
GhSE: (GhDS) AAD
Market Update Report
for the quarter ended 31 March 2023
Johannesburg, 12 May 2023 - AngloGold Ashanti Limited ("AngloGold Ashanti", "AGA" or the "Company") reported a steady operational
performance for the first quarter of 2023, in line with plans, while confirming annual guidance and delivering on key strategic
objectives to improve its valuation versus its peers.
In Ghana, the Company announced a proposed joint venture between its Iduapriem mine and Gold Fields' neighbouring Tarkwa
operation to potentially create Africa's largest gold mine. Excluding the interest to be held by the Government of Ghana,
AngloGold Ashanti will hold a 33.3% interest. The proposed joint venture is expected to deliver extended life, increased
production and improved costs. Estimated average annual production is expected to be almost 900koz per year over the first
five years at an all-in sustaining cost per ounce ("AISC") of less than $1,000/oz.
"We're taking pragmatic, commercially sensible steps to unlock value," said Chief Executive Officer Alberto Calderon.
"Operationally, the year has started as expected, with normal seasonal improvements to come in each of the remaining
quarters as we work to meet our overall objectives for the year."
AngloGold Ashanti, under its new leadership team, is taking steps to narrow a value differential with its international peers.
The Company has targeted safety improvements, is working to improve costs and increase the life of its key mines,
while enhancing cash conversion and prioritising delivery of major projects.
The Company's Total Recordable Injury Frequency Rate ("TRIFR") improved to 0.88 injuries per million hours worked during the
first quarter of 2023, its best performance ever and well below industry peers.
Production was consistent year-on-year at 584,000oz for the first quarter of 2023, with strong performances from the Obuasi
and Iduapriem mines offset by lower production from Kibali, Siguiri and the Brazilian operations.
The Obuasi gold mine in Ghana continued its planned ramp-up during the first quarter of 2023, with a 58% year-on-year jump
in production and a drop in AISC as tonnages and grade increased. The Obuasi site also reported 3.5m shifts with no
lost time injury.
In Brazil, the Cuiaba mine complex successfully transitioned to producing gold from its gravity circuit and gold concentrate
in line with expectations. Normal production levels were lower during the first quarter of 2023 compared to the same period
last year, mainly due to the suspension of tailings deposition at the Calcinados tailings storage facility ("TSF") and processing
of gold concentrate at the Queiroz plant, which services the Cuiaba mine complex, until completion of a buttressing
programme at the Calcinados TSF. When Cuiaba is excluded, group production rose 2% in the first quarter of 2023 compared
with the first quarter of 2022.
Total cash costs per ounce increased by 16% to $1,204/oz in the first quarter of 2023 compared to $1,041/oz in the same
period last year, mainly due to continued inflation and input price increases which peaked in the second and third quarters of
2022, lower grades at Kibali, and higher waste stripping costs at Tropicana in line with expectations, lower by-product revenue
and volumes in Brazil, and higher royalties paid due to higher revenues. This increase was partly offset by weaker
exchange rates against the US Dollar and favourable inventory movements.
AISC increased by 15% to $1,619/oz in the first quarter of 2023 compared to $1,405/oz for the same period last year, mainly due
to higher total cash costs and a planned increase in sustaining capital expenditure.
The Company anticipates costs to come down over the course of the year as inflation and input prices are expected to continue
to recede and the Company expects to continue to deliver on its Full Asset Potential ("FP") programme.
The balance sheet remained robust following the payout of the final 2022 dividend, with liquidity of approximately $2.3bn,
including cash and cash equivalents of $0.8bn, at the end of March 2023.
FIRST QUARTER 2023 HIGHLIGHTS
Record safety performance in the first quarter: TRIFR improved 26% year-on-year to 0.88 injuries per million
hours worked; zero fatalities recorded
Annual guidance for 2023 maintained; production and costs expected to improve in second half of 2023 as our FP
programme continues to deliver
Annual guidance provided for 2024, excluding operational metrics related to Cuiaba, reflecting improved production
and reduced total cash costs per ounce
Obuasi posted 58% production improvement year-on-year; 14% AISC improvement as ramp-up continues; Iduapriem
sees strong improvements in grade and volume
Announcement of proposed Iduapriem-Tarkwa joint venture to potentially create Africa's largest gold mine
Cash conversion efforts continued, with further remittances of cash from the DRC and VAT offsets in Tanzania
SALIENT FEATURES
- Confirmed guidance ranges for 2023
- Production at 584,000oz in Q1 2023 vs 588,000oz in Q1 2022; strong contributions from
Obuasi and Iduapriem
- Open pit grade improved 9% year-on-year as portfolio reinvestment initiatives progressed
- Total cash costs per ounce of $1,204/oz in Q1 2023 vs $1,041/oz in Q1 2022, mainly driven by continued inflation and
input price increases, in line with our expectations as communicated in the fourth quarter of 2022
- AISC of $1,619/oz in Q1 2023 vs $1,405/oz in Q1 2022, on increased total cash costs and planned higher sustaining capital expenditure
- Adjusted EBITDA decreased year-on-year from $438m in Q1 2022 to $320m in Q1 2023; Adjusted EBITDA margin of 32%
- Adjusted net debt of $1,131m at 31 March 2023; Adjusted net debt to Adjusted EBITDA ratio of 0.67 times
- Free cash outflow of $161m in Q1 2023 vs inflow of $268m in Q1 2022 which was boosted by the large historical remittance of $326m
received from Kibali during Q1 2022
Financial and Operating Report
for the three months ended 31 March 2023
GROUP - Key statistics
Quarter Quarter Quarter Year
ended ended ended ended
Mar Dec Mar Dec
2023 2022 2022 2022
US Dollar/Imperial
Operating review
Gold
Produced (1) - oz (000) 584 771 588 2,742
Sold - oz (000) 583 748 597 2,717
Financial review
Price received per ounce * - $/oz 1,895 1,736 1,881 1,793
Total cash costs per ounce * - $/oz 1,204 1,008 1,041 1,024
All-in sustaining costs per ounce * - $/oz 1,619 1,422 1,405 1,383
All-in costs per ounce * - $/oz 1,836 1,646 1,583 1,587
Gold income - $m 1,007 1,161 1,016 4,388
Cost of sales - $m 839 900 757 3,362
Total cash costs - $m 681 759 605 2,753
Adjusted EBITDA * - $m 320 462 438 1,797
Net cash inflow from operating activities - $m 94 358 533 1,804
Free cash (outflow) inflow * - $m (161) 17 268 657
Adjusted net debt * - $m 1,131 878 917 878
Adjusted net debt to Adjusted EBITDA - times 0.67 0.49 0.51 0.49
Total capital expenditure (including equity-accounted joint ventures) - $m 246 369 234 1,118
(1) Includes gold concentrate from the Cuiaba mine complex which will be sold to third parties
* Refer to the "Glossary of Terms" in the Company's annual financial statements for the year ended 31 December 2022, for definitions.
$ represents US Dollar, unless otherwise stated.
Rounding of figures may result in computational discrepancies.
OPERATING AND FINANCIAL REVIEW
Production
Production for the three months ended 31 March 2023 was 584,000oz, at a total cash cost of $1,204/oz, compared to 588,000oz at a total
cash cost of $1,041/oz for the first quarter of 2022. Production was steady year-on-year as AngloGold Ashanti continued to progress
reinvestment in key assets to improve operating flexibility and extend mine lives, while also advancing a programme to buttress the TSF
which services the Queiroz plant at the Cuiaba mine complex in Brazil.
Strong operating performances were reported from Obuasi and Iduapriem, which posted production gains and AISC improvements, while
steady contributions were made by Cerro Vanguardia, Sunrise Dam, Tropicana and Geita. Excluding Cuiaba's production contribution,
production was up 2% year-on-year in the first quarter of 2023.
During the first quarter of 2023, Cuiaba produced 41,000oz, which comprised 16,000oz of gravimetric gold and 25,000oz of gold-in-
concentrate. At Geita, production was in line with the mine plan, as the operation successfully concluded scheduled mill maintenance and the
planned replacement of the girth gear during the first quarter of 2023. Geita is expected to achieve production of about 500,000oz for 2023,
with strong gains to come over the balance of the year. At Kibali, production was lower year-on-year mainly due to lower underground grades
as a result of mine sequencing.
Costs
Total cash costs per ounce for the first quarter of 2023 were $1,204/oz, compared to $1,041/oz for the first quarter of 2022.
The increase in total cash cost per ounce was mainly due to continued inflation and input price increases which peaked in the second and
third quarters of 2022, lower grades at Kibali and higher waste stripping costs at Tropicana in line with expectations, lower by-product
revenue and volumes in Brazil, and higher royalties paid due to higher revenues. The increase was partly offset by weaker exchange rates
against the US Dollar and favourable inventory movements.
All-in sustaining costs per ounce ("AISC") for the first quarter of 2023 were $1,619/oz, compared to $1,405/oz for the first quarter of 2022,
mainly due to higher total cash costs and a planned increase in sustaining capital expenditure.
The Company anticipates lower cash costs in the second half of the year in line with guidance as we continue to deliver on our FP
programme and we expect inflation and input prices to continue to recede.
Adjusted EBITDA
Adjusted earnings before interest, tax, depreciation and amortisation ("Adjusted EBITDA") for the first quarter of 2023 was $320m, compared
to $438m for the first quarter of 2022. Adjusted EBITDA was lower year-on-year mainly due to lower gold sales and higher operating costs,
partly offset by the marginally higher gold price received.
Gold hedges
During the first quarter of 2023, AngloGold Ashanti entered into zero-cost collars for a total of 136,000 ounces of gold for the period February
2023 to December 2023 in order to manage gold price downside risk associated with Cuiaba partly transitioning to gold concentrate sales
and the current high cost associated with Corrego do Sitio. During the first quarter of 2023, AngloGold Ashanti recorded a realised gain of
$1m in respect of these gold derivatives. At 31 March 2023, the mark-to-market value of the remaining open positions was an unrealised loss
of $4m.
Oil hedges
During July 2022, AngloGold Ashanti entered into forward contracts for a total of 999,000 barrels of Brent crude oil for the period January 2023
to December 2023 that will be cash settled on a monthly basis against the contract price. This comprises approximately 40% of the Company's total
anticipated 2023 consumption. The average price achieved on the forward contracts is $89.20 per barrel of Brent crude oil. During the first
quarter of 2023, AngloGold Ashanti recorded a realised loss of $2m in respect of these oil derivatives. At 31 March 2023, the mark-to-market
value of the remaining open positions was an unrealised loss of $2m (2022: $6m).
Cash Flow
Net cash inflow from operating activities decreased to $94m for the first quarter of 2023, compared to $533m for the first quarter of 2022.
The Company recorded a free cash outflow of $161m for the first quarter of 2023, compared to an inflow of $268m for the first quarter of
2022 which was mainly due to the remittance of large cash balances from the DRC during the first quarter of 2022 to clear the balance which
had grown over the preceding years. During the first quarter of 2023, free cash flow was further adversely impacted by higher planned capital
expenditure and unfavourable movements in working capital, factors partly offset by lower taxes paid.
Cash remittances from the DRC continued to flow as expected. AngloGold Ashanti received cash distributions of $37m from the Kibali joint
venture in the first quarter of 2023, compared to $326m received in the first quarter of 2022 when the pre-existing backlog was being cleared.
At 31 March 2023, the Company's attributable share of the outstanding cash balances from the DRC was $40m, unchanged from the
outstanding cash balance at 31 December 2022.
Free cash flow was impacted by continued lock-ups of value added tax ("VAT") at Geita and Kibali and foreign exchange restrictions and
export duties at Cerro Vanguardia ("CVSA"):
- In Tanzania, net overdue recoverable VAT input credit refunds (after discounting provisions) decreased by $1m during the first
quarter of 2023 to $152m from $153m at 31 December 2022, as a result of processing verified VAT claims against corporate tax
payments of $18m and foreign exchange adjustments of $1m, partly offset by new claims submitted of $18m. The Company plans
to continue offsetting verified VAT claims against corporate taxes.
- In the DRC, the Company's attributable share of the net recoverable VAT balance (including recoverable VAT on fuel duties and
after discounting provisions) increased by $3m during the first quarter of 2023 to $89m from $86m at 31 December 2022.
- In Argentina, the net export duty receivables (after discounting provisions) remained unchanged at $9m at the end of the first
quarter of 2023, compared to the balance at 31 December 2022. In addition, CVSA's cash balance decreased by $13m* during the
first quarter of 2023 to $103m* from $116m* at 31 December 2022. The cash balance is available to be paid to AngloGold
Ashanti's offshore ($90m*) and onshore ($12m*) investment holding companies in the form of declared dividends.
Applications have been made to the Argentinean Central Bank to approve the purchase of US Dollars in order to distribute offshore
dividends related to the 2019, 2020 and 2021 financial years of $90m* (at current exchange rates) to AngloGold Ashanti. Also,
under a special regime established for dividend payments, a petition to distribute a portion of the offshore dividends applied for, in
the amount of $54m*, was submitted to the Argentinean Central Bank during the third quarter of 2022. In December 2022, the
Argentinean Central Bank approved the payment of $18m* to AngloGold Ashanti (representing only a portion of the amount applied
for), based on the applications submitted under this special regime. While the remaining approvals are pending, the cash remains
fully available for CVSA's operational and exploration requirements.
* US Dollar equivalent
Free cash flow ($m)
Quarter ended Quarter ended Quarter ended Year ended
Mar 2023 Dec 2022 Mar 2022 Dec 2022
Net cash inflow from operating activities 94 358 533 1,804
Capital expenditure (227) (337) (215) (1,028)
Net cash from operating activities after capital expenditure (133) 21 318 776
Repayment of lease liabilities (22) (21) (20) (82)
Finance costs accrued and capitalised (31) (31) (29) (132)
Net cash flow after capital expenditure and interest (186) (31) 269 562
Other net cash inflow from investing activities 22 45 (4) 86
Other - 1 - 5
Add backs
Cash restricted for use 3 2 3 4
Free cash flow (161) 17 268 657
Kibali legacy free cash flow received during the first half of 2022 - - (326) (460)
Free cash flow (excluding Kibali legacy free cash flow received
during the first half of 2022) (161) 17 (58) 197
Balance Sheet and Liquidity
Adjusted net debt increased by 29% from $878m at 31 December 2022 to $1,131m at 31 March 2023. The ratio of Adjusted net debt to
Adjusted EBITDA was 0.67 times at 31 March 2023 compared to 0.51 times at 31 March 2022. The Company remains committed to
maintaining a strong balance sheet with an Adjusted net debt to Adjusted EBITDA target ratio not exceeding 1.0 times through the cycle. At
31 March 2023, the balance sheet remained robust, with strong liquidity comprising the $1.4bn multi-currency RCF of which $1.36bn was
undrawn, the $65m Siguiri RCF of which $50m was undrawn, the South African R150m ($8m) RMB corporate overnight facility which was
undrawn, the $278m Geita RCF (the facility was increased by $128m during the first quarter of 2023) of which $123m was undrawn and cash
and cash equivalents of approximately $0.8bn, taking overall group liquidity to approximately $2.3bn.
Capital Expenditure
Capital expenditure on waste stripping at Tropicana (Havana) and Iduapriem (Cut 2) as well as feasibility work in Nevada continued to
progress through the first quarter of 2023. At Geita, the underground portal development at Geita Hill East progressed according to plan and
mining operations continued to ramp up at the Nyamulilima open pit. In Brazil, the Company continued its investment to comply with TSF-
related regulatory requirements.
Total capital expenditure (including equity-accounted joint ventures) was 5% higher year-on-year at $246m in the first quarter of 2023, up
from $234m in the first quarter of 2022. Sustaining capital expenditure increased marginally to $171m in the first quarter of 2023, from $169m
in the first quarter of 2022. Non-sustaining capital expenditure increased to $75m in the first quarter of 2023, from $65m in the first quarter of
2022, mainly due to project work in Nevada, as well as TSF construction capital expenditure at Iduapriem, partly offset by lower project
capital expenditure at Tropicana.
Summary of three months-on-three months operating and cost variations:
% Variance
Three Three Three % Variance three
Particulars months months months three months vs
ended ended ended months vs prior year
Mar 2023 Dec 2022 Mar 2022 prior three three
months months
Operating review (Gold)
Production (kozs) (1) 584 771 588 (24) (1)
Financial review
Gold price received per ounce ($/oz) (4) 1,895 1,736 1,881 9 1
Total cash costs per ounce ($/oz) (4) 1,204 1,008 1,041 19 16
Corporate & marketing costs ($m) (2) 20 17 18 18 11
Exploration & evaluation costs ($m) 47 64 33 (27) 42
Capital expenditure ($m) 246 369 234 (33) 5
All-in sustaining costs per ounce ($/oz) (3) (4) 1,619 1,422 1,405 14 15
All-in costs per ounce ($/oz) (3) (4) 1,836 1,646 1,583 12 16
Adjusted EBITDA ($m) (4) 320 462 438 (31) (27)
Net cash inflow from operating activities ($m) 94 358 533 (74) (82)
(1) Includes gold concentrate from the Cuiaba mine complex which will be sold to third parties.
(2) Includes administration and other expenses.
(3) World Gold Council guidance.
(4) Refer to the "Glossary of Terms" in the Company's annual financial statements for the year ended 31 December 2022, for definitions.
Rounding of figures may result in computational discrepancies.
FULL ASSET POTENTIAL REVIEW PROGRAMME
The FP programme aims to achieve a step-change in AngloGold Ashanti's operating and cost performance by the year 2024. This
programme includes a comprehensive three-month assessment of each of the Company's mine sites, which covers every aspect of an
operation. The outcome is intended to enhance the Company's understanding of the relative potential of each asset and includes developing
a plan and implementation schedule to achieve the targeted performance over the next six to 24 months.
Sunrise Dam, the first site to implement the FP programme, is demonstrating a noticeable uplift in performance. The mine's monthly
development advance rates have step-changed from below 1,000m per month to over 1,200m per month through improved drilling
performance. This is translating into increased underground ore tonnes, which increased 8% year-on-year in the first quarter of 2023.
At Siguiri, an opportunity to increase processing plant efficiency has improved year-on-year throughput in the first quarter of 2023 by 2%,and
delivered improved mill runtime. A key opportunity to accelerate mining of Kami West has successfully unlocked an additional 1.5Mt of ore. A
move to owner mining is currently being assessed.
At Geita, the most value-accretive opportunities are in the processing plant, and throughput continues to increase, following the planned mill
shutdown during the first quarter of 2023. Furthermore, metallurgical recovery is above the FP target as a result of better carbon
management and optimised leaching kinetics.
FP assessments for Cerro Vanguardia and Obuasi are expected to conclude during the first half of 2023.
GUIDANCE
The Company previously provided guidance for 2023, which remains unchanged (see table below). We remain on track to achieve full year
guidance. Production is expected to be second half weighted, with unit costs expected to decline into the second half of 2023.
2023 (1) Cuiaba 2023
Guidance Guidance
Production (000oz) 2,450 - 2,610 180 (2)
All-in sustaining costs ($/oz) 1,405 - 1,450
Costs
Total cash costs ($/oz) 1,050 - 1,120 1,396
Total ($m) 960 - 1,070
Capital Sustaining capital expenditure ($m) 680 - 760
expenditure
Non-sustaining capital expenditure ($m) 280 - 310
Corporate administration, marketing and related expenses ($m) 85 - 95
Expensed exploration and study costs ($m) 210 - 240
Depreciation and amortisation (excluding equity joint ventures) ($m) 600 - 680
Interest and finance costs (excluding unwinding of obligations) - Income Statement ($m) 125 - 135
Other operating expenses ($m) 55 - 65
(1) Excludes the Cuiaba mine complex.
(2) AngloGold Ashanti expects that the Cuiaba mine complex will continue to extract gold from the gravity circuit at a rate of 5,000oz
on average per month and will produce gold-in-concentrate at an average of approximately 10,000oz per month.
Outlook economic assumptions for 2023 are as follows: $/A$0.71, BRL5.40/$, AP260.00/$, ZAR17.00/$ and Brent $83/bbl.
Cost and capital forecast ranges are expressed in nominal terms. In addition, estimates assume neither operational or labour interruptions
(including any further delays in the ramp-up of the Obuasi redevelopment project), or power disruptions, nor further changes to asset portfolio
and/or operating mines and have not been reviewed by AngloGold Ashanti's external auditors. Other unknown or unpredictable factors, or factors
outside the Company's control, including inflationary pressures on its cost base, could also have material adverse effects on AngloGold Ashanti's
future results and no assurance can be given that any expectations expressed by AngloGold Ashanti will prove to have been correct. Measures taken
at AngloGold Ashanti's operations together with AngloGold Ashanti's business continuity plans aim to enable its operations to deliver in line
with its production targets. The Company, however, remains mindful that the COVID-19 pandemic, its impacts on communities and economies,
and the actions authorities may take in response to it, are largely unpredictable and therefore no incremental additional impact is included
in the cost and capital forecast ranges. Actual results could differ from guidance and any deviations may be significant. Please refer to
the Risk Factors section in AngloGold Ashanti's annual report on Form 20-F for the year ended 31 December 2022 filed with the United States
Securities and Exchange Commission ("SEC").
Following the key strategic objectives it set out a year ago, AngloGold Ashanti is pleased to provide guidance for 2024, which excludes
operational metrics related to Cuiaba. AngloGold Ashanti is also providing 2024 production guidance for Cuiaba.
The Company expects to see production growth of approximately 4% in 2024 relative to the 2023 production guidance at the midpoint.
The primary driver of expected production growth is related to Obuasi stepping up following the completion of Phase 3 of the Obuasi
redevelopment project, Iduapriem production increasing following the completion of its reinvestment (which does not take into account the
proposed joint venture with Gold Fields' Tarkwa mine), and modest production increases at Kibali, Siguiri, Geita, Sunrise Dam and Tropicana.
Total cash costs are expected to range from $1,000/oz to $1,110/oz in 2024, compared to $1,050/oz to $1,120/oz in 2023. Costs are forecast
to improve mainly due to an increase in production, as well as cost improvements realised related to the initiatives of the FP programme.
Sustaining capital expenditure for 2024 is expected to be in line with 2023 levels, as the Company completes reinvestment across some of
its key projects. On a per ounce basis, sustaining capital expenditure is expected to decline in 2024 as production increases further.
Following the completion of these projects, the Company is expected to operate at an AISC ranging from $1,395/oz to $1,455/oz.
The Company continues to enforce capital and cost discipline across the business, while prioritising the safety, health and wellbeing of its
employees and its host communities.
2024 (1) Cuiaba 2024
Guidance Guidance
Production (000oz) 2,530 - 2,730 180 (2)
Costs(3) All-in sustaining costs ($/oz) 1,395 - 1,455
Total cash costs ($/oz) 1,000 - 1,110
Total ($m) 960 - 1,070
Capital Sustaining capital expenditure ($m) 680 - 760
expenditure(3) Non-sustaining capital expenditure ($m) 280 - 310
(1) Excludes the Cuiaba mine complex.
(2) AngloGold Ashanti expects that the Cuiaba mine complex will continue to extract gold from the gravity circuit at a rate of 5,000oz on
average per month and will produce gold-in-concentrate at an average of approximately 10,000oz per month.
(3) Costs refelected in real terms.
Outlook economic assumptions for 2024 are as follows: $/A$0.74, BRL5.45/$, AP375.00/$, ZAR16.75/$ and Brent $87/bbl.
Cost and capital forecast ranges are expressed in nominal terms. In addition, estimates assume neither operational or labour interruptions
(including any further delays in the ramp-up of the Obuasi redevelopment project), or power disruptions, nor further changes to asset portfolio
and/or operating mines and have not been reviewed by AngloGold Ashanti's external auditors. Other unknown or unpredictable factors, or factors
outside the Company's control, including inflationary pressures on its cost base, could also have material adverse effects on AngloGold Ashanti's
future results and no assurance can be given that any expectations expressed by AngloGold Ashanti will prove to have been correct. Measures
taken at AngloGold Ashanti's operations together with AngloGold Ashanti's business continuity plans aim to enable its operations to deliver in
line with its production targets. The Company, however, remains mindful that the COVID-19 pandemic, its impacts on communities and economies,
and the actions authorities may take in response to it, are largely unpredictable and therefore no incremental additional impact is included
in the cost and capital forecast ranges. Actual results could differ from guidance and any deviations may be significant. Please refer to
the Risk Factors section in AngloGold Ashanti's annual report on Form 20-F for the year ended 31 December 2022 filed with the SEC.
CUIABA UPDATE
Tailings-related regulations introduced in Brazil required AngloGold Ashanti Brazil to conduct a new detailed risk assessment of its portfolio of
TSFs by December 2022. The regulations required this new risk assessment be conducted with oversight from external consultants. One of
the conclusions of this review was to increase buttressing of the Calcinados TSF to align its post liquefaction factor of safety with the
international standards currently considered best practice. AngloGold Ashanti is proceeding with this buttressing programme and has
therefore suspended filtered tailings deposition at the TSF, which services the Cuiaba mine complex.
Operational and structural integrity of the Calcinados TSF remains safe and stable, per the conclusions of risk assessments by external
consultants and the Company's internal TSF team. The TSF's factors of safety, in both a drained and undrained state, are fully compliant with
relevant Brazilian operating regulations.
AngloGold Ashanti's focus is to maintain compliance with the tailings-related regulations in Brazil, including new requirements introduced last
year, and to maintain a close and transparent relationship with the relevant authorities.
During the first quarter of 2023 the Company commenced geotechnical work to support the buttressing programme. The timeline for
completion of the buttressing is expected to be determined once engineering and geotechnical work has been completed by external
consultants.
Processing of gold concentrate at the Queiroz plant, which services the Cuiaba mine complex, is suspended until the buttressing programme
has been completed. In the meantime, mining of ore is continuing at the Cuiaba mine complex. During this period, the Company expects that
the Cuiaba mine complex will continue to extract gold from the gravity circuit at a rate of 5,000oz on average per month and will produce
gold-in-concentrate at an average of approximately 10,000oz per month. The Company has started selling gold concentrate to third parties
and expect such sales to continue until the Queiroz plant resumes full operation. The first shipment of gold concentrate occurred in April
2023 and shipments are expected to continue on a monthly basis.
The Cuiaba mine complex produced 241,000oz of gold in 2022 and is expected to produce around 180,000oz in 2023 (comprising 60,000oz
of gravimetric gold and 120,000oz of gold-in-concentrate).
SAFETY UPDATE
The Company recorded a fatality-free first quarter of 2023 alongside its lowest-ever Total Recordable Injury Frequency Rate ("TRIFR"), the
broadest measure of workplace safety.
TRIFR improved by 26% to 0.88 injuries per million hours worked for the first quarter of 2023, compared to 1.19 injuries per million hours
worked in the first quarter of last year.
AngloGold Ashanti's safety strategy, with specific emphasis on the refreshed Major Hazard Management standard and critical control
verifications, continued to be implemented at all the operations, intensifying employees' focus on safety practices in all workplaces.
AngloGold Ashanti continues to address high consequence incidents through the application of its Major Hazard Management process.
OPERATING HIGHLIGHTS
The Africa operations produced 348,000oz at a total cash cost of $1,135/oz for the quarter ended 31 March 2023, compared to 330,000oz at
a total cash cost of $1,017/oz for the quarter ended 31 March 2022. The region's AISC was $1,395/oz for the quarter ended 31 March 2023,
compared to $1,281/oz for the quarter ended 31 March 2022.
In Ghana, Iduapriem produced 63,000oz at a total cash cost of $803/oz for the quarter ended 31 March 2023, compared to 51,000oz at a
total cash cost of $987/oz for the same period last year. The increase in production year-on-year was mainly due to higher tonnes treated
together with higher grades as the mine accesses ore tonnes from Teberebie Cut 2 compared to the same period last year when ore was
sourced mainly from Block 5 and stockpiles. Total cash costs per ounce improved year-on-year mainly due to higher gold production and
favourable metal inventory movements, partly offset by higher mining costs and higher royalties paid.
Obuasi produced 60,000oz at a total cash cost of $1,085/oz for the quarter ended 31 March 2023, compared to 38,000oz at a total cash cost
of $1,043/oz for the same period last year. Production was higher year-on-year mainly due to higher tonnes processed and higher grades
mined. Total cash costs per ounce were higher year-on-year mainly due to higher variable mining and processing volume costs driven by
higher underground tonnes mined and an increase in mill throughput compared to the same period last year. This resulted in higher reagent
costs, higher mining contractor and other mining costs related to an increased consumption of maintenance spares, ground support and
explosives, as well as higher royalties paid. These cost increases were partly offset by higher production.
In Guinea, production at Siguiri was 63,000oz at a total cash cost of $1,537/oz for the quarter ended 31 March 2023, compared to 68,000oz
at a total cash cost of $1,187/oz for the same period last year. Production was lower year-on-year mainly due to lower metallurgical
recoveries due to the treatment of carbonaceous material. The decrease in production was partly offset by higher tonnes processed. Total
cash costs per ounce were higher year-on-year due to lower production, higher oil prices, higher reagent prices and mining rates, as well as
unfavourable movements in stockpiles and the strengthening of the Guinean Franc against the US Dollar.
In Tanzania, Geita's production was 98,000oz at a total cash cost of $1,196/oz for the quarter ended 31 March 2023, compared to 97,000oz
at a total cash cost of $1,077/oz for the same period last year. Production was marginally higher year-on-year mainly due to higher grades
mined, partly offset by lower tonnes processed due to a planned mill shutdown during the first quarter of 2023. For the full year, the mine is
expected to produce about 500,000oz. Total cash costs per ounce were higher year-on-year mainly due to increased unavailability of mining
equipment, higher fuel inflation and higher freight costs.
In the DRC, Kibali produced 64,000oz at a total cash cost of $1,019/oz for the quarter ended 31 March 2023, compared to 76,000oz at a total
cash cost of $797/oz for the same period last year. Production was lower year-on-year mainly due to lower grades mined at the underground
mine as a result of mine sequencing, partly offset by higher tonnes processed. Total cash costs per ounce were higher year-on-year mainly
due to lower gold production and higher oil and commodity prices, partly offset by favourable movements in stockpiles.
The Americas operations produced 111,000oz at a total cash cost of $1,338/oz for the quarter ended 31 March 2023, compared to
131,000oz at a total cash cost of $975/oz for the quarter ended 31 March 2022. The region's AISC was $2,446/oz for the quarter ended 31
March 2023, compared to $1,635/oz for the quarter ended 31 March 2022.
In Brazil, AngloGold Ashanti Mineracao's production was 54,000oz at a total cash cost of $1,390/oz for the quarter ended 31 March 2023,
compared to 70,000oz at a total cash cost of $1,044/oz in the same period last year. Production was lower year-on-year mainly due to lower
tonnes of ore processed at the Cuiaba mine complex and lower grades mined at the Corrego do Sitio ("CdS") mine complex. During the first
quarter of 2023, Cuiaba produced 41,000oz, which comprised 16,000oz of gravimetric gold and 25,000oz of gold-in-concentrate. Total cash
costs per ounce were higher year-on-year mainly due to lower gold production, lower by-product revenue as sulphuric acid sales remained
suspended pending resumption of operation from the Queiroz plant, and cost increases mainly related to input cost increases and additional
operating costs related to TSF management. These cost increases were partly offset by the weakening of the Brazilian Real against the US
Dollar, lower royalties, and favourable movements in inventories.
At Serra Grande, production was 15,000oz at a total cash cost of $1,855/oz for the quarter ended 31 March 2023, compared to 20,000oz at a
total cash cost of $1,375/oz in the same period last year. Production was lower year-on-year mainly due to lower tonnes of ore treated and
lower grades mined. Total cash costs per ounce were higher year-on-year mainly due to lower production, unfavourable movements in
stockpiles and gold in process and increases in input costs and additional technical services. These cost increases were partly offset by
lower royalties and the weakening of the Brazilian Real against the US Dollar.
In Argentina, Cerro Vanguardia produced 42,000oz at a total cash cost of $1,077/oz for the quarter ended 31 March 2023, compared to
41,000oz at a total cash cost of $659/oz in the same period last year. Production was marginally higher year-on-year mainly due to higher
average grades mined. Total cash costs per ounce were higher year-on-year mainly due to cost increases related to labour, fuel, power,
explosives, services (annual inflation is estimated at around 100%), lower by-product income (due to lower volumes of silver sold) and higher
consumption of materials and services due to higher tonnes mined. These cost increases were partly offset by the weakening of the
Argentinean Peso against the US Dollar.
The Australia operations produced 125,000oz at a total cash cost of $1,309/oz for the quarter ended 31 March 2023, compared to
127,000oz at a total cash cost of $1,160/oz for the quarter ended 31 March 2022. The region's AISC was $1,564/oz for the quarter ended 31
March 2023, compared to $1,324/oz for the quarter ended 31 March 2022.
Sunrise Dam produced 61,000oz at a total cash cost of $1,317/oz for the quarter ended 31 March 2023, compared to 61,000oz at a total
cash cost of $1,296/oz during the same period last year. Total cash costs per ounce were higher year-on-year mainly due to higher operating
costs at the underground mine, partly offset by favourable movements in inventories.
Tropicana's production was 64,000oz at a total cash cost of $1,190/oz for the quarter ended 31 March 2023, compared to 66,000oz at a total
cash cost of $948/oz during the same period last year. Production was marginally lower year-on-year mainly due to lower grades mined in
the open pit, as mining focused on waste stripping at the Havana pit. Ore mined from the underground mine increased by 13% year-on-year
and coupled with higher grades mined resulted in underground gold production increasing 30% year-on-year. Total cash costs per ounce
were higher year-on-year mainly due to the commencement and ramp-up of the Tropicana underground operation, higher open-pit unit costs
due to higher drilling and blasting costs, and marginally lower production, partly offset by the weakening of the Australian Dollar against the
US Dollar.
UPDATE ON CAPITAL PROJECTS
Obuasi
Phase 3 of the Obuasi redevelopment project, which relates principally to extended capital expenditure to refurbish existing infrastructure
around the KMS Shaft, as well as to service the mine in deeper production areas, continues to progress and is expected to continue as
planned through to the end of 2023. The Obuasi mine continues on the ramp-up path to its full production run-rate in excess of 400,000oz,
which is expected by the end of 2024.
Tropicana
Completion of a scoping study on the Havana underground mineralisation has justified the commencement of a pre-feasibility study ("PFS").
The PFS is progressing well with various options being considered to determine the most economical way to access the Havana
underground orebody while open-pit mining remains active in the Havana pit. The PFS analysis is expected to be completed in the second
quarter of 2023. Options include a direct access portal from the pit via a dedicated decline and the development of the "Havana Link" drive
connecting the Tropicana underground extension with the Havana underground orebody. The PFS is expected to be completed by the end of
2023 with the potential to start the access decline in the second half of 2024.
Nevada
During the first quarter of 2023, AngloGold Ashanti's project team progressed the feasibility study at North Bullfrog and initiated a concept
study of the expanded Silicon project, which includes options for the Merlin deposit.
Quebradona
Following the decision of Colombia's national environmental agency ("ANLA") in November 2021 to archive the Company's environmental
licence application related to the Quebradona project, and the confirmation of such decision in April 2022, AngloGold Ashanti has been
working to complete the data acquisition required at the tunnel alignment area. In addition, an optimised feasibility study is currently
underway to implement improvements in water management, operational flexibility, maintainability, and constructability. The new
environmental licence application is expected to be filed with the ANLA in 2026.
Gramalote
A feasibility study was completed for the Gramalote gold project, which is a joint venture between AngloGold Ashanti and B2Gold Corp.
("B2Gold"). Both partners determined that the Gramalote project does not meet their investment thresholds for development of the project.
The Gramalote project continues to benefit from government support as well as continuing support from local communities. AngloGold
Ashanti and B2Gold completed a comprehensive review of the alternatives for the Gramalote project and consider that it would be in the best
interest of all stakeholders for a new party to own the project. The partners commenced a joint sales process for the Gramalote project in the
fourth quarter of 2022, and are working to complete this process in 2023.
CORPORATE UPDATE
Proposed Ghana JV
During March 2023, Gold Fields and AngloGold Ashanti agreed the key terms of a proposed joint venture in Ghana between Gold Fields'
Tarkwa and AngloGold Ashanti's neighbouring Iduapriem mines. Both mines are located near the town of Tarkwa in the country's Western
Region.
Both companies have commenced preliminary, high-level and constructive engagements with senior government officials in Ghana and will
continue engaging with the Government of Ghana ("GoG"), relevant regulators and other key stakeholders, with a view to implementing the
proposed joint venture as soon as practically possible.
Both companies have agreed to mutual exclusivity during this engagement. No material, additional capital injection is anticipated to be
required by either company to establish the proposed joint venture, which is expected to materially improve its capital intensity once
operational. Excluding the interest to be held by the GoG, Gold Fields will have an interest of 66.7%, or two-thirds, and AngloGold Ashanti
will have an interest of 33.3%, or one-third, in the proposed joint venture.
There can be no certainty that the parties will enter into a definitive agreement with respect to the proposed joint venture or about the timing,
terms and conditions of any such definitive agreement. Implementation of the proposed joint venture is subject to, among other matters,
reaching agreement with the GoG regarding the proposed joint venture, conclusion of confirmatory due diligence and securing all requisite
regulatory approvals.
DRC customs matter
Kibali Goldmines S.A. is continuing to engage in discussions with the DRC Customs Authority and DRC Ministry of Finance regarding the
customs claims previously reported. In this regard, on 26 March 2023, the parties agreed to settle one of the DRC Customs Authority claims
concerning historic export duties. Discussions to resolve the remaining customs claims are ongoing. A formal reassessment notice has not
yet been issued by the DRC Customs Authority with respect to these claims.
Siguiri
On 3 May 2023, a tank in the Carbon-in-Leach (CIL) circuit at Siguiri unexpectedly collapsed and damaged some surrounding infrastructure.
The impact was contained to the operational area immediately adjacent to the plant. The cause of the incident is under investigation and
our initial assessment is that Siguiri will return to 70% of production in the next five weeks and be back to full capacity within four to
five months. Mining continues as normal and ore will be stockpiled in the interim. Loss adjusters have been appointed on behalf of our insurers.
Despite this event, the Company still expects to meet 2023 Group production guidance.
EXPLORATION UPDATE
For detailed disclosure on the exploration work carried out during the first quarter of 2023, see the Exploration Update document on the
Company's website at www.anglogoldashanti.com on both brownfield and greenfield exploration programmes.
Operations at a glance
for the quarters ended 31 March 2023, 31 December 2022 and 31 March 2022
Underground milled /
Production treated Surface milled / treated
oz (000) 000 tonnes 000 tonnes
Mar-23 Dec-22 Mar-22 Mar-23 Dec-22 Mar-22 Mar-23 Dec-22 Mar-22
AFRICA 348 481 330 1,126 1,392 1,063 38 42 55
Kibali - Attr. 45% 64 97 76 342 377 326 - - -
Iduapriem 63 67 51 - - - - - -
Obuasi 60 88 38 235 355 179 38 42 55
Siguiri - Attr. 85% 63 71 68 - - - - - -
Geita 98 158 97 549 660 558 - - -
AUSTRALIA 125 140 127 890 754 784 - - -
Sunrise Dam 61 58 61 603 491 557 - - -
Tropicana - Attr. 70% 64 82 66 287 263 227 - - -
AMERICAS 111 150 131 608 1,013 950 - - -
Cerro Vanguardia - Attr. 92.50% 42 43 41 85 113 74 - - -
AngloGold Ashanti Mineracao (1) 54 80 70 287 677 642 - - -
Serra Grande 15 27 20 236 223 234 - - -
AngloGold Ashanti (1) 584 771 588 2,624 3,159 2,797 38 42 55
Underground Recovered
Open-pit treated grade Surface Recovered grade
000 tonnes g/tonne g/tonne
Mar-23 Dec-22 Mar-22 Mar-23 Dec-22 Mar-22 Mar-23 Dec-22 Mar-22
AFRICA 4,676 5,399 4,652 4.39 5.43 4.94 1.05 1.30 1.71
Kibali - Attr. 45% 538 598 456 3.71 5.73 5.73 - - -
Iduapriem 1,233 1,454 1,192 - - - - - -
Obuasi - - - 7.74 7.56 6.10 1.05 1.30 1.71
Siguiri - Attr. 85% 2,324 2,528 2,290 - - - - - -
Geita 581 819 714 3.38 4.12 4.10 - - -
AUSTRALIA 1,716 1,891 1,835 2.59 2.91 2.53 - - -
Sunrise Dam 349 471 410 2.44 2.85 2.42 - - -
Tropicana - Attr. 70% 1,367 1,420 1,425 2.91 3.03 2.80 - - -
AMERICAS 211 279 286 3.34 3.47 3.61 - - -
Cerro Vanguardia - Attr. 92.50% 205 202 215 8.03 4.93 10.24 - - -
AngloGold Ashanti Mineracao (1) - - - 3.07 3.44 3.36 - — -
Serra Grande 6 77 71 1.99 2.82 2.20 - - -
AngloGold Ashanti (1) 6,603 7,569 6,773 3.54 4.20 3.81 1.05 1.30 1.90
Open-pit Recovered grade
g/tonne
Mar-23 Dec-22 Mar-22
AFRICA 1.25 1.36 1.06
Kibali - Attr. 45% 1.32 1.44 1.07
Iduapriem 1.58 1.44 1.33
Obuasi - - -
Siguiri - Attr. 85% 0.86 0.88 0.93
Geita 2.06 2.67 1.02
AUSTRALIA 0.93 1.15 1.08
Sunrise Dam 1.27 0.85 1.35
Tropicana - Attr. 70% 0.84 1.25 1.00
AMERICAS 2.10 2.78 1.61
Cerro Vanguardia - Attr. 92.50% 2.13 2.86 1.64
AngloGold Ashanti Mineracao (1) - - -
Serra Grande 1.07 2.57 1.52
AngloGold Ashanti (1) 1.19 1.36 1.09
(1) Includes gold concentrate from the Cuiaba mine complex which will be sold to third parties.
Rounding of figures may result in computational discrepancies.
Operations at a glance (continued)
for the quarters ended 31 March 2023, 31 December 2022 and 31 March 2022
Total cash costs All-in sustaining costs Sustaining ORD / Stripping capex
$/oz $/oz $m
Mar-23 Dec-22 Mar-2 Mar-23 Dec-22 Mar-22 Mar-23 Dec-22 Mar-22
AFRICA 1,135 902 1,017 1,395 1,254 1,281 60 55 49
Kibali - Attr. 45% 1,019 643 797 1,162 948 1,037 5 2 7
Iduapriem 803 1,045 987 1,171 1,506 1,390 17 21 13
Obuasi 1,085 683 1,043 1,366 1,044 1,585 18 14 16
Siguiri - Attr. 85% 1,537 1,431 1,187 1,637 1,605 1,262 - - -
Geita 1,196 886 1,077 1,541 1,307 1,301 20 18 13
Non-controlling interests, admin
and other - - -
AUSTRALIA 1,309 1,184 1,160 1,564 1,398 1,324 12 16 8
Sunrise Dam 1,317 1,428 1,296 1,616 1,777 1,516 5 7 5
Tropicana - Attr. 70% 1,190 935 948 1,382 1,070 1,061 7 9 3
Admin and other - - -
AMERICAS 1,338 1,147 975 2,446 1,802 1,635 43 43 36
Cerro Vanguardia - Attr. 92.50% 1,077 1,066 659 1,503 1,703 970 7 9 7
AngloGold Ashanti Mineracao 1,390 1,161 1,044 3,613 1,827 1,928 25 25 21
Serra Grande 1,855 1,227 1,375 2,780 1,872 1,973 10 8 7
Non-controlling interests, admin
and other 1 1 1
PROJECTS - - - - - - - - -
Colombian projects - - - - - - - - -
North American projects - - - - - - - - -
OTHER - - -
AngloGold Ashanti 1,204 1,008 1,041 1,619 1,422 1,405 115 114 93
Other sustaining capex Non-sustaining capex
$m $m
Mar-23 Dec-22 Mar-22 Mar-23 Dec-22 Mar-22
AFRICA 28 89 24 47 78 34
Kibali - Attr. 45% 7 24 9 7 6 2
Iduapriem 4 10 7 16 26 8
Obuasi 3 14 2 14 29 14
Siguiri - Attr. 85% 4 6 3 1 3 1
Geita 9 33 2 9 14 9
Non-controlling interests, admin
and other 1 2 1 - - -
AUSTRALIA 11 17 10 22 17 29
Sunrise Dam 8 10 6 - - -
Tropicana - Attr. 70% 3 7 4 22 17 29
Admin and other - - - - - -
AMERICAS 17 49 41 - - -
Cerro Vanguardia - Attr. 92.50% 5 19 2 - - -
AngloGold Ashanti Mineracao 9 21 33 - - -
Serra Grande 2 7 6 - - -
Non-controlling interests, admin
and other 1 2 - - - -
PROJECTS - - - 6 5 2
Colombian projects - - - 1 5 2
North Americ ...
