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Johannesburg, 3 November 2022 - AngloGold Ashanti Limited THIRD QUARTER 2022 HIGHLIGHTS
(“AngloGold Ashanti”, “AGA” or the “Company”) reported
strong year-on-year improvements in production, all-in sustaining costs Strong safety result: Total Recordable Injury Frequency
and cash flow for the third quarter of 2022, as higher grades and Rate improved 41% year-on-year to 1.28 injuries per
efficiency gains helped offset the impacts of rising inflation. million hours worked
Production for the third quarter of 2022 rose 20% to 738,000oz compared Operational fundamentals improving – sequential
to 613,000oz in the third quarter of last year, underpinned by higher
quarterly production and grade improvements; on track
grades across most assets. Obuasi continued its ramp-up and remains
on track for this year’s production guidance of 240,000oz to 260,000oz. to meet full- year guidance
Obuasi on track to achieve annual guidance of 240,000oz
Total cash costs increased to $966/oz in the third quarter of 2022, 4%
higher than the $927/oz in the same period last year, with the improved to 260,000oz for 2022
operating performance partly offsetting both cost increases across
Full Asset Potential programme progressing; Sunrise
several input categories, and lower by-product revenues. All-in sustaining
costs improved 6% year-on-year to $1,284/oz in the third quarter of 2022, Dam, Siguiri and Cuiabá in execution phase,
from $1,362/oz in the third quarter of 2021. assessments ongoing at Tropicana, Geita and Serra
Grande
“We continue to prioritise execution, efficiency and careful allocation of
capital,” said Chief Executive Officer Alberto Calderon. “We are focused Scope 1 and 2 carbon emissions targets set - targeting
on regaining competitiveness versus our peers, and we still have some 30% absolute reduction by 2030; committed to net zero
way to go before we will be satisfied.” by 2050
Adjusted EBITDA increased 5% to $472m in the third quarter of 2022, Agreement to acquire Coeur Mining’s Nevada properties,
from $448m in the third quarter of 2021, despite the lower gold price further consolidating AngloGold Ashanti’s position in
received. The Company recorded free cash flow of $169m in the third Southern Nevada
quarter of 2022, versus $17m in the third quarter last year.
SALIENT FEATURES
The Company continues to generate strong cash flows from its Kibali joint • On track to meet guidance ranges for 2022, with total cash costs and total capital
venture, which remitted $71m during the third quarter of 2022 versus expenditure continuing to trend at the top end of guidance range
$53m in the same period last year, despite the lower gold price and lower
production from the Kibali mine. The outstanding VAT balance in • Gold production increased by 20% year-on-year to 738,000oz in Q3 2022; strong
contributions from Obuasi (+454%), Tropicana (+28%), Geita (+24%), Iduapriem
Tanzania was further reduced through corporate tax offsets.
(+38%), Serra Grande (+22%) and Cerro Vanguardia (+16%) compared to Q3
2021
The balance sheet remained in a solid position after paying an interim
dividend, with approximately $2.5bn in liquidity, including cash and cash • Overall grade increased by 21% year-on-year mainly due to reinvestment
equivalents of $1.2bn at the end of September 2022. initiatives and the increased contribution of higher grade Obuasi ounces
The proposed $150m upfront cash acquisition of Coeur Mining Inc.’s • Total cash costs were $966/oz in Q3 2022, a 12% improvement quarter-on-quarter
Nevada properties, adjacent to AngloGold Ashanti’s own deposits in the from $1,092/oz in Q2 2022 and a 4% increase year-on-year from $927/oz in Q3
area, will further consolidate its foothold in the prospective Beatty district 2021
in Southern Nevada, where production is expected to commence in about
three years. • All-in sustaining costs were $1,284/oz in Q3 2022, representing a 10%
improvement quarter-on-quarter from $1,430/oz in Q2 2022 and a 6% decrease
year-on-year from $1,362/oz in Q3 2021
The Company announced a new carbon emissions reduction target which
aims to achieve a 30% absolute reduction in its Scope 1 and Scope 2 • Adjusted EBITDA increased by 5% year-on-year to $472m in Q3 2022; Adjusted
Greenhouse Gas (“GHG”) emissions by 2030, as compared to 2021, EBITDA margin of 42%
through a combination of renewable energy projects, fleet electrification
and lower-emission power sources. The capital cost required to achieve • Net cash inflow from operating activities increased by 32% year-on-year to $453m
these reductions over the coming eight years is anticipated to be about in Q3 2022, from $342m in Q3 2021
$1.1bn, of which $350m is expected to be funded by AngloGold Ashanti
and the remaining $750m through third-party funding, including from • Free cash inflow of $169m in Q3 2022; with free cash flow of $640m for the nine
providers of renewable energy infrastructure. This programme is months to 30 September 2022 and free cash flow before growth capital of $879m
expected to be Net Present Value (“NPV”) positive, adding value to our for the same period
business by reducing energy cost and improving energy security.
• Adjusted net debt decreased by 14% year-on-year to $746m at 30 September
2022
Financial and Operating Report
for the three months ended 30 September 2022
GROUP - Key statistics
Quarter Quarter Nine months Nine months
ended ended ended ended
Sep Sep Sep Sep
2022 2021 2022 2021
US Dollar / Imperial
Operating review
Gold
Produced - oz (000) 738 613 1,971 1,813
Sold - oz (000) 736 611 1,969 1,825
Financial review
Price received per ounce - $/oz 1,717 1,785 1,815 1,796
Total cash costs per ounce * - $/oz 966 927 1,030 977
All-in sustaining costs per ounce * - $/oz 1,284 1,362 1,368 1,343
All-in costs per ounce * - $/oz 1,499 1,631 1,564 1,558
Gold income - $m 1,137 953 3,227 2,864
Cost of sales - $m 870 692 2,462 2,091
Total cash costs - $m 694 563 1,994 1,727
Adjusted EBITDA * - $m 472 448 1,336 1,323
Net cash inflow from operating activities - $m 453 342 1,446 809
Free cash inflow (outflow) * - $m 169 17 640 (8)
Adjusted net debt * - $m 746 871 746 871
Adjusted net debt to Adjusted EBITDA - times 0.41 0.44 0.41 0.44
Total capital expenditure (including equity-accounted joint ventures) - $m 277 306 749 767
* Refer to the “Glossary of Terms” in the Company’s annual financial statements for the year ended 31 December 2021, for definitions.
$ represents US Dollar, unless otherwise stated.
Rounding of figures may result in computational discrepancies.
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OPERATING AND FINANCIAL REVIEW
Production
Production for the third quarter of 2022 was 738,000oz at a total cash cost of $966/oz, compared to 613,000oz at a total cash cost of $927/oz
for the third quarter of 2021. This represents a 20% year-on-year increase in gold production, underpinned by solid performances across the
portfolio. Gold production was higher mainly at Obuasi (+454%), Tropicana (+28%), Geita (+24%), Iduapriem (+38%), Serra Grande (+22%)
and Cerro Vanguardia (+16%).
Costs
Total cash costs per ounce for the third quarter of 2022 were $966/oz, compared with $927/oz in the third quarter of 2021. Total cash costs
per ounce were higher year-on-year mainly due to increased operating costs on the back of increased fuel, consumables and labour costs,
partly offset by higher gold production. Total cash costs per ounce for the third quarter of 2022 improved by 12% quarter-on-quarter to
$966/ oz from $1,092/oz in the second quarter of 2022, mainly due to higher gold production.
All-in sustaining costs (“AISC”) for the third quarter of 2022 were $1,284/oz, compared with $1,362/oz in the third quarter of 2021, mainly due
to lower sustaining capital expenditure and higher gold sold, partly offset by higher cash costs. AISC in the third quarter of 2022 includes an
estimated $26/oz impact relating to the Brazilian tailings storage facility (“TSF”) compliance programme, compared to an estimated $94/oz
impact in the third quarter of 2021. AISC decreased by $146/oz quarter-on-quarter, from $1,430/oz in the second quarter of 2022 to $1,284/
oz in the third quarter of 2022, mainly due to lower cash costs and higher gold sold. This decrease quarter-on-quarter was partially offset by
higher sustaining capital expenditure, primarily due to the continued reinvestment objectives across the portfolio.
Adjusted EBITDA
Adjusted earnings before interest, tax, depreciation and amortisation (“Adjusted EBITDA”) increased by 5% year-on-year to $472m in the
third quarter of 2022, from $448m in the third quarter of 2021. The increase in Adjusted EBITDA was mainly due to higher gold sold, partly
offset by higher operating costs and the lower gold price received.
Adjusted EBITDA increased by $46m or 11% quarter-on-quarter, from $426m in the second quarter of 2022 to $472m in the third quarter of
2022 mainly due to lower cash costs, and higher gold sold. This increase was partly offset by the lower gold price received.
Impairment of Córrego do Sítio complex
In line with AngloGold Ashanti’s reinvestment strategy, strategic options are being considered for the Córrego do Sítio mining complex
(“CdS”) in Brazil, resulting in the disaggregation of the AngloGold Ashanti Mineração cash generating unit (“CGU”) into separate CdS and
Cuiabá CGUs. Separate impairment calculations were prepared for each of the CGUs, resulting in an estimated impairment (net of taxation)
of $151m for the CdS CGU, subject to the finalisation of the 2023 budget and the finalisation of the preferred strategic option for CdS.
Cash Flow
Net cash inflow from operating activities increased by 32% year-on-year to $453m in the third quarter of 2022, from $342m in the third
quarter of 2021. This increase was mainly due to higher gold sold, favourable movements in working capital, lower cash taxes and higher
dividends received from joint ventures, partly offset by higher cash costs and the lower gold price received.
For the third quarter of 2022, the Company recorded a free cash inflow of $169m, compared to an inflow of $17m in the third quarter of 2021.
Free cash flow was mainly impacted by higher net cash inflow from operating activities and lower capital expenditure.
Free cash flow before growth capital – the metric on which dividends are calculated – was $266m in the third quarter of 2022, compared to
$111m for the third quarter 2021.
AngloGold Ashanti received cash distributions of $71m from the Kibali joint venture in the third quarter of 2022. Cumulative cash distributions
received from Kibali for the nine months ended 30 September 2022 were $620m. At 30 September 2022, the Company’s attributable share of
the outstanding cash balances from the DRC was $50m, which was up from $41m at 30 June 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 $4m during the third
quarter of 2022 to $144m from $148m at 30 June 2022, as a result of offsetting verified VAT claims against corporate tax payments
of $15m and foreign exchange and other adjustments of $6m, partly offset by additional VAT claims submitted of $17m. 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 $4m during the third quarter of 2022 to $81m from $77m at 30 June 2022.
Kibali Goldmines S.A. continues to engage in discussions with the DRC customs authorities regarding the customs claims
previously reported. A formal reassessment notice has not yet been issued by the DRC customs authorities with respect to these
claims.
• In Argentina, the Company recorded a $2m decrease in the net export duty receivables (after discounting provisions) during the
third quarter of 2022 to $14m from $16m at 30 June 2022. In addition, CVSA’s cash balance decreased by $3m (equivalent) during
the third quarter of 2022 to $146m (equivalent) from $149m (equivalent) at 30 June 2022. The cash balance is available for
operational requirements and to be paid to AngloGold Ashanti’s offshore ($148m (equivalent)) and onshore ($19m (equivalent))
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 and 2020 financial years of $79m (equivalent) to AngloGold Ashanti. Also, under a special regime
established for dividend payments, a new petition to distribute a portion of the offshore dividends applied for, in the amount of
$54m (equivalent), was submitted to the Argentinean Central Bank during the third quarter of 2022. While these approvals are
pending, the cash remains fully available for CVSA’s operational and exploration requirements. A further application was submitted
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to the Argentinean Central Bank during October 2022 for the purchase of US Dollars in order to distribute the offshore dividend of
$69m (equivalent) related to the 2021 financial year which was approved by the Company during the second quarter of 2022.
Although these applications will be higher than the current cash balances, the approval of these remittances is expected to
facilitate future cash distributions based on cash availability.
Balance Sheet
Adjusted net debt was 14% lower year-on-year at $746m at 30 September 2022, after paying an interim dividend of $140m on
9 September 2022, compared to Adjusted net debt of $871m at 30 September 2021. The ratio of Adjusted net debt to Adjusted EBITDA was
0.41 times at 30 September 2022 from 0.44 times at 30 September 2021. 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 30 September 2022, the
balance sheet remained robust, with strong liquidity comprising the US$1.4bn multi-currency RCF of which $1.3bn was undrawn, and the
South African R150m ($9m) RMB corporate overnight facility which was undrawn, while the $150m Geita RCF was fully drawn. The $65m
Siguiri RCF was cancelled in August 2022 after full repayment ($35m), with a new $65m Siguiri RCF put in place during October 2022. At
30 September 2022, the Company had a cash and cash equivalent balance of approximately $1.2bn, taking overall group liquidity to $2.5bn.
Capital Expenditure
Capital expenditure on waste stripping at Tropicana (Havana) and Iduapriem (Cut 2) continued to progress. 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 convert existing TSFs to dry-stack facilities at all mine sites, in a market characterised by
increased competition for skills and engineering resources due to the COVID-19 pandemic and the industry-wide requirements to meet
regulatory deadlines relating to TSFs.
Total capital expenditure (including equity-accounted joint ventures) decreased by 9% year-on-year to $277m in the third quarter of 2022,
compared to $306m in the third quarter of 2021. This decrease was largely due to lower sustaining capital expenditure recorded in Brazil
related to investment in the conversion of TSFs. Total growth capital expenditure increased by 4% to $97m in the third quarter of 2022
compared to $93m in the third quarter of 2021, mainly due to growth capital expenditure at Tropicana. The strategy of improving operating
flexibility through investment in Ore Reserve development and Ore Reserve expansion at sites with high geological potential is expected to
continue.
Summary of three months-on-three months and nine months-on-nine months operating and cost variations:
% Variance % Variance
% Variance
Three Three Three three Nine Nine nine
three
months months months months vs months months months vs
Particulars months vs
ended Sep ended Jun ended Sep prior year ended Sep ended Sep prior year
prior three
2022 2022 2021 three 2022 2021 nine
months months months
Operating review (Gold)
Production (kozs) 738 645 613 14 20 1,971 1,813 9
Financial review
Gold price received per ounce ($/oz) 1,717 1,867 1,785 (8) (4) 1,815 1,796 1
Total cash costs per ounce ($/oz) (3) 966 1,092 927 (12) 4 1,030 977 5
Corporate & marketing costs ($m) (1) 20 24 18 (17) 11 62 55 13
Exploration & evaluation costs ($m) 57 52 53 10 8 141 114 24
Total capital expenditure ($m) 277 238 306 16 (9) 749 767 (2)
All-in sustaining costs per ounce ($/oz) (2) (3) 1,284 1,430 1,362 (10) (6) 1,368 1,343 2
All-in costs per ounce ($/oz) (2) (3) 1,499 1,620 1,631 (7) (8) 1,564 1,558 —
Adjusted EBITDA ($m) (3) 472 426 448 11 5 1,336 1,323 1
Net cash inflow from operating activities ($m) 453 459 342 (1) 32 1,446 809 79
Free cash flow ($m) (3) 169 203 17 (17) 894 640 (8) 8,100
(1)
Includes administration and other expenses.
(2)
World Gold Council guidance.
(3)
Refer to the “Glossary of Terms” in the Company’s annual financial statements for the year ended 31 December 2021, for definitions.
Rounding of figures may result in computational discrepancies.
FULL ASSET POTENTIAL PROGRAMME
The Full Asset Potential (“FP”) programme aims to achieve a step-change in AngloGold Ashanti’s competitiveness by 2024. The programme
includes a three-month assessment which covers all aspects of the Company’s mine sites. The outcome enhances the understanding of
each asset and comprises a plan and schedule to achieve the targeted performance over the next six to 24 months. This approach has been
piloted in each of Company’s Business Units, and the process is owned and led by the site leadership teams, who have accountability for its
delivery.
The Siguiri mine in Guinea was the second site to undergo the process, following the Sunrise Dam mine in Australia earlier in the year. The
Siguiri team identified 29 opportunities, which – when combined – may potentially lead to a cost reduction of ca. $100/oz by 2025, compared
to the mine’s cost base in 2022.
Mine planning and strategy
The Siguiri team has also identified an opportunity to extend the life of mine by about seven years to 2034. This may be achieved
by increasing the capacity of the current TSF. A pre-feasibility study (“PFS”) is underway and is expected to be completed early
next year. At the conceptual level, the project is expected to be significantly NPV accretive.
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Mining productivity
A key productivity improvement would be to increase the volume of high-grade oxide ore from Block 2. This may be achieved by
mobilising additional capacity to haul an additional ca. 3,000tpd to the ROM pad. Once a second contractor is fully mobilised,
controls will be put in place to closely track performance.
Metallurgical Recovery
Potential processing plant improvements would include raising metallurgical recovery by ca. 5% to 88% by focusing on a
combination of parameters such as grind quality, blending and pulp density. In addition, runtime can be increased by ca. 6% by
reducing planned and unplanned downtime, and the mill rate can be inched up by utilising available power.
OUTLOOK
We remain on track to achieve guidance for 2022, with production and AISC trending between mid-point and top end of guidance, while total
cash costs and total capital expenditure continue to trend at the top end of the guidance range. As a result of Russia’s invasion of Ukraine
and the resultant disruption of supply chains, supplies of certain key commodities are experiencing volatility and inflationary pressures.
These include oil and lubricants, ammonia-related products (explosives and cyanide) and labour. We expect inflationary pressures to
continue to impact operating costs for the remainder of the year, and into 2023. In this current global operating environment, the business
continues to work proactively to mitigate the impact of inflation on its cost structure through the continued integration of its new operating
model, which is aimed at improving operating efficiencies, the continuous Operational Excellence programme already in place, and the FP
programme.
Group guidance for annual production remains unchanged at 2.55Moz to 2.80Moz, with the majority of the production growth this year
expected to come from Obuasi. Across the rest of the portfolio, we anticipate improvements in production at Tropicana, Iduapriem, Siguiri
and Geita, and consistent performances at the remaining assets.
Group guidance for total cash costs remains unchanged at $925/oz to $1,015/oz and for AISC at $1,295/oz to $1,425/oz. The total cash cost
forecasts for 2022 are driven by increases in the prices of oil, consumables and logistics, with AISC further impacted by the planned elevated
levels of sustaining capital expenditure in line with the prior year. Although we anticipate that most of these inflationary pressures are catered
for in the current guidance range, we remain aware of the ongoing cost pressure experienced by the Company specifically and the industry in
general.
Total capital expenditure group guidance remains unchanged between $1,050m and $1,150m. There is however a revision in the underlying
sustaining capital expenditure to a range from $770m to $810m whilst non-sustaining capital expenditure is revised to a range from $280m to
$340m. We continue to progress our reinvestment programme aimed at pursuing key growth-driven brownfield projects across the portfolio.
The Company’s TSFs in Brazil are in the process of being converted to dry-stacking operations to comply with new legal requirements
relating to TSFs in Brazil. Capital expenditure allocated to the Brazilian TSF compliance programme this year is approximately $90m. At
Geita, the mine is undertaking a project to connect to the national grid, which is a mix of hydro and gas power. As a result, energy costs are
expected to decrease. The capital expenditure forecast for the project is approximately $25m, spread over 2022 and 2023.
With respect to non-sustaining capital expenditure, approximately $90m has been allocated to Phase 3 of the Obuasi redevelopment project,
approximately $110m at Tropicana as we progress waste stripping at Havana, and approximately $60m at Iduapriem to construct a new TSF
to support the extension of the life-of-mine. The balance of forecasted non-sustaining capital expenditure will be spread among Kibali, Geita,
Siguiri and Colombia. Capital expenditure in Colombia relates to concluding feasibility studies with no project capital expenditure included in
the current guidance.
Expensed exploration and study costs are guided in line with previous levels with $80m relating to North America.
The Company previously provided the following guidance for production, costs and total capital expenditure 2022, which remains unchanged:
2022
Guidance
Production (000oz) 2,550 - 2,800
All-in sustaining costs ($/oz) 1,295 - 1,425
Costs
Total cash costs ($/oz) 925 - 1,015
Capital expenditure Total ($m) 1,050 - 1,150
Outlook economic assumptions for 2022 are as follows: $/A$0.69, BRL5.19/$, AP131.00/$, ZAR16.52/$; and Brent $96/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 our external auditors. Other unknown or unpredictable factors, or factors outside our control, including inflationary pressures on our cost base,
could also have material adverse effects on our future results and no assurance can be given that any expectations expressed by AngloGold Ashanti will prove
to have been correct. Measures taken at our operations together with our business continuity plans aim to enable our operations to deliver in line with our
production targets. We, however, remain 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 2021 filed with the United States Securities and Exchange Commission (“SEC”).
SAFETY UPDATE
The Company recorded a fatality-free third quarter of 2022.
The Total Recordable Injury Frequency Rate (“TRIFR”), the broadest measure of workplace safety, improved to 1.28 injuries per million hours
worked for the third quarter of 2022, compared to 2.17 injuries per million hours worked for the third quarter of 2021. TRIFR measures
workplace safety in terms of the total number of injuries and fatalities that occur per million hours worked (by employees and contractors).
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From a benchmarking perspective, the Company’s TRIFR for the third quarter of 2022 was below the International Council on Metals and
Minerals (“ICMM”) member companies’ average of 2.90 injuries per million hours worked in 2021. The rollout of the Company’s revitalised
safety strategy continues at all operations, intensifying AngloGold Ashanti’s employees’ and contractors’ focus on safety practices in all
workplaces in an effort to continue and sustain AngloGold Ashanti’s safety improvement trend. The Company continues to address high
consequence incidents through the application of its Major Hazard Management process.
COVID-19
In the third quarter of 2022, COVID-19 had a marginal estimated impact of 5,000oz on production and an estimated impact of $10/oz on
AISC; for the first nine months of 2022, the impact was estimated at 16,000oz and $13/oz on production and AISC, respectively. By
comparison, in the third quarter of 2021, the impact of COVID-19 on production and AISC was estimated at 4,000oz and $20/oz, respectively,
and, during the first nine months of 2021, at 47,000oz and $43/ oz, respectively.
OPERATING HIGHLIGHTS
The Africa region produced 443,000oz at a total cash cost of $928/oz for the quarter ended 30 September 2022, compared to 348,000oz at
a total cash cost of $858/oz for the quarter ended 30 September 2021. The region’s AISC was $1,141/oz for the quarter ended 30 September
2022, compared to $1,119/oz for the same period last year.
In Ghana, Iduapriem’s production was 66,000oz at a total cash cost of $792/oz for the quarter ended 30 September 2022, compared to
48,000oz at a total cash cost of $1,031/oz in the same period last year. Production was higher mainly due to higher grades processed (1.47
g/t) compared to the prior period (1.02 g/t) as the mine accessed ore tonnes from Block 5 and Teberebie Cut 2A compared to Block 5 and the
stockpile in the same period last year. Total cash costs per ounce improved 23% year-on-year mainly due to higher gold production, partly
offset by an increase in fuel costs and higher royalties paid.
Gold production at Obuasi was 72,000oz at a total cash cost of $961/oz for the quarter ended 30 September 2022, compared to 13,000oz at
a total cash cost of $1,254/oz for the same period last year. Total cash costs per ounce improved year-on-year mainly due to higher gold
production.
In Tanzania, Geita produced 156,000oz at a total cash cost of $866/oz for the quarter ended 30 September 2022, compared to 126,000oz at
a total cash cost of $764/oz in the same period last year. Production was 24% higher year-on-year mainly due to a combination of higher
volumes processed and higher grades. Total cash costs per ounce were higher year-on-year due to higher fuel costs, increased engineering
costs from the acceleration of HME fleet rebuilds as the open-pit mine expanded, as well as higher underground mining contractor costs and
higher royalties paid. These cost increases were partly offset by higher gold production.
In the Republic of Guinea, production at Siguiri was 66,000oz at a total cash cost of $1,386/oz for the quarter ended 30 September 2022,
compared to 67,000oz at a total cash cost of $1,181/oz in the same period last year. Production was largely flat year-on-year mainly due to
lower tonnes processed as a result of local community protests related to employment demands which led to mining disruptions and the
temporary suspension of mining activities during the month of July. This slight decrease in ore production was partly offset by higher grades
mined from Block 2. Total cash costs per ounce were higher year-on-year due to higher fuel costs, unfavourable movements in stockpiles
and an unfavourable movement in the exchange rate of the Guinean Franc against the US Dollar.
In the DRC, Kibali produced 83,000oz at a total cash cost of $762/oz for the quarter ended 30 September 2022, compared to 94,000oz at a
total cash cost of $613/oz in the same period last year. Production was lower year-on-year mainly due to lower grades mined, partly offset by
an increase in tonnes processed. Total cash costs per ounce were higher year-on-year mainly due to lower production and higher fuel costs,
partly offset by favourable movements in stockpiles and lower royalties paid.
In the Americas, production was 152,000oz at a total cash cost of $1,038/oz for the quarter ended 30 September 2022, compared to
140,000oz at a total cash cost of $928/oz for the quarter ended 30 September 2021. The region’s AISC was $1,644/oz for the quarter ended
30 September 2022, compared to $1,800/oz for the same period last year.
In Brazil, production at AGA Mineração was 86,000oz at a total cash cost of $1,028/oz for the third quarter of 2022, compared to 84,000oz at
a total cash cost of $869/oz in the same period last year. Production was up year-on-year mainly due to higher grades mined, partly offset by
lower tonnes of ore treated. Total cash costs per ounce increased mainly due to higher fuel costs, lower by-product revenue and repair costs
($49/oz) incurred in the third quarter of 2022 due to extreme weather earlier in 2022, partly offset by higher gold production.
At Serra Grande, production was 22,000oz at a total cash cost of $1,312/oz for the third quarter of 2022, compared to 18,000oz at a total
cash cost of $1,388/oz in the same period last year. Production was 22% higher year-on-year mainly due to a combination of higher tonnes
processed and higher grades mined. Total cash costs per ounce improved year-on-year mainly due to higher production, partly offset by
higher fuel costs, higher royalties paid and unfavourable movements in stockpiles.
In Argentina, Cerro Vanguardia produced 44,000oz for the third quarter of 2022 at a total cash cost of $923/oz, compared to 38,000oz at a
total cash cost of $842/oz in the same period last year. Production was 16% higher year-on-year mainly due to a combination of higher
tonnes mined and improved recovered grades. Total cash costs per ounce were higher year-on-year mainly due to higher fuel costs, higher
materials consumption (such as fuel, explosives, and spare parts) as a result of higher tonnes mined and lower by-product revenue due to
lower silver sales. This increase was partially offset by higher gold production and a favourable movement in the exchange rate of the
Argentinean Peso against the US Dollar.
The Australia operations produced 143,000oz at a total cash cost of $1,047/oz for the quarter ended 30 September 2022, compared to
125,000oz at a total cash cost of $1,157/oz for the quarter ended 30 September 2021. The region’s AISC was $1,238/oz for the quarter
ended 30 September 2022, compared to $1,363/oz for the same period last year.
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Sunrise Dam produced 57,000oz at a total cash cost of $1,430/oz for the third quarter of 2022 compared to 58,000oz at a total cash cost of
$1,276/oz in the same period last year. Production was largely flat year-on-year as marginally lower average recovered grades were partly
offset by higher tonnes processed. Total cash costs per ounce were higher year-on-year primarily due to higher fuel and mining costs, and
unfavourable movements in ore stockpiles, partly offset by a favourable movement in the exchange rate of the Australian Dollar against the
US Dollar.
At Tropicana, production was 86,000oz at a total cash cost of $705/oz for the third quarter of 2022 compared to 67,000oz at a total cash cost
of $947/oz in the same period last year. Production was 28% higher year-on-year mainly due to a combination of higher tonnes processed
and higher grades mined. Total cash costs per ounce improved 26% year-on-year mainly due to higher gold production, a favourable
movement in ore stockpiles and a favourable movement in the exchange rate of the Australian Dollar against the US Dollar, partly offset by
higher fuel and mining costs.
UPDATE ON CAPITAL PROJECTS
Obuasi
Obuasi is on track to deliver annual gold production guidance of 240,000oz to 260,000oz at an AISC of approximately $1,250/oz to
$1,350/ oz, and with total cash costs of $900/oz to $1,000/oz.
Phase 2 commercial production was achieved at the end of the third quarter of 2022.
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.
Tropicana
Completion of a recent scoping study on the Havana underground mineralisation has justified the commencement of a pre-feasibility study
(“PFS”). As part of the PFS, the development of the “Havana Link” drive is being considered. This development will extend from the
Tropicana decline and has the potential to provide multiple benefits including additional ventilation for the existing underground mine at
Tropicana, a drilling platform to access high grade mineralisation between Tropicana and Havana, and early access to the Havana
underground for continuing infill and verification drilling as part of the PFS.
Nevada
As previously reported, AngloGold Ashanti’s project team integrated the Corvus assets and project data during the first six months of 2022 to
establish priorities for the remainder of the year. In the second half of 2022, multiple activities commenced in the district with work at North
Bullfrog and Silicon to convert Mineral Resource to Ore Reserve as priorities. The Company completed planning for feasibility study work at
North Bullfrog and also commenced a PFS at Silicon along with further drilling at the Merlin deposit. An eagle permit was received for the
Silicon project area during the year and the project permitting process is underway for North Bullfrog. Importantly, given the various
exploration targets across the tenement, the Company’s exploration priorities for the district are being reviewed and prioritised to take place
over the next few years in a staged manner.
Quebradona
Following the decision of Colombia’s national environmental agency (“ANLA”) in November 2021 to archive the Company’s environmental
licence application relating to the Quebradona project, AngloGold Ashanti filed an appeal seeking to secure further details on the specific
additional information ANLA would require in order to be able to make a decision on AngloGold Ashanti’s licence submission. On 29 April
2022, AngloGold Ashanti was informed that ANLA has dismissed the appeal and confirmed the decision to archive the Company’s
application.
AngloGold Ashanti continues to review and analyse the further information identified as part of ANLA’s decision. The objective is to prepare,
submit and process a new environmental licence request for Quebradona in due course.
Gramalote
The feasibility study has been completed for the Gramalote gold project in Colombia, a joint venture between AngloGold Ashanti and B2Gold
Corp. (“B2Gold”). Both partners have determined that the Gramalote project does not meet their investment thresholds for development.
The Gramalote project continues to benefit from government support as well as continuing support from local communities. AngloGold
Ashanti and B2Gold have completed a comprehensive review of the alternatives relating to the Gramalote project and consider that the
interests of all stakeholders would be best served by finding a buyer. The partners intend to commence a joint sales process for the
Gramalote project in the fourth quarter of 2022.
CORPORATE UPDATE
Appointment of new Chief Financial Officer and Executive Director
The Board of Directors of AngloGold Ashanti has appointed Ms Gillian Doran as Chief Financial Officer and Executive Director of the
Company with effect from 1 January 2023. Ms Doran (45) joins from Rio Tinto Group, where she is currently Chief Financial Officer –
Aluminium, based in Montreal, Canada.
Proposed acquisition of Nevada properties from Coeur Mining
On 18 September 2022, AngloGold Ashanti entered into a definitive agreement with Coeur Mining, Inc. (“Coeur”) to acquire all of the shares
of its wholly-owned subsidiary, Coeur Sterling, Inc., which owns neighbouring properties to AngloGold Ashanti’s in the Beatty district of
Southern Nevada, for a consideration of $150m in cash. Closing of the transaction is subject to the completion of certain due diligence by
AngloGold Ashanti and certain conditions precedent customary for a transaction of this nature, and is expected to take place by the end of
2022.
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Coeur currently estimates that the properties to be acquired in this transaction have a Mineral Resource of 914,000oz. If, after additional
exploration, AngloGold Ashanti declares a Mineral Resource from these properties that is greater than 3.5Moz, AngloGold Ashanti is required
to make a deferred consideration payment of $50m (in addition to the $150m paid at closing). This deferred consideration would be made 30
days after that Mineral Resource declaration is made.
AngloGold Ashanti targets 30% reduction in Scope 1 and 2 GHG emissions by 2030
AngloGold Ashanti announced its carbon emissions reduction target that aims to achieve a 30% absolute reduction in its Scope 1 and 2 GHG
emissions by 2030, as compared to 2021, through a combination of renewable energy projects, fleet electrification and lower-emission power
sources. The capital cost required to achieve these reductions over the coming eight years is anticipated to be about $1.1bn, of which $350m
is expected to be funded by AngloGold Ashanti and the remaining $750m through third-party funding, including from providers of renewable
energy infrastructure. The Company plans in the coming weeks to initiate a process to secure a green funding facility of $250m to $300m to
finance its portion of these decarbonisation initiatives across its business.
Passing of Non-Executive Director
On 30 October 2022, Ms Nelisiwe (Neli) Magubane, non-executive director of the Company, sadly passed away. Ms Magubane was
appointed to the Company’s Board of Directors on 1 January 2020 and was a member of the Audit & Risk and Social, Ethics & Sustainability
Committees. Shareholders will be advised of any consequential changes to the Company’s Board and its Committees in due course.
EXPLORATION UPDATE
For detailed disclosure on the exploration work done during the quarter ended 30 September 2022, see the Exploration Update document on
the Company’s website at www.anglogoldashanti.com on both Brownfields and Greenfields exploration programmes.
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Operations at a glance
for the quarters ended 30 September 2022, 30 June 2022 and 30 September 2021
Underground milled / Underground Recovered
Production treated Surface milled / treated Open-pit treated grade Surface Recovered grade Open-pit Recovered grade
oz (000) 000 tonnes 000 tonnes 000 tonnes g/tonne g/tonne g/tonne
Sep-22 Jun-22 Sep-21 Sep-22 Jun-22 Sep-21 Sep-22 Jun-22 Sep-21 Sep-22 Jun-22 Sep-21 Sep-22 Jun-22 Sep-21 Sep-22 Jun-22 Sep-21 Sep-22 Jun-22 Sep-21
AFRICA 443 382 348 1,286 1,224 1,087 31 39 — 4,955 5,140 5,149 5.94 4.92 5.07 1.48 0.80 — 1.22 1.14 1.03
Kibali - Attributable 45% 83 82 94 392 416 381 — — — 506 446 491 5.52 5.10 5.72 — — — 0.82 0.92 1.53
Iduapriem 66 64 48 — — — — — — 1,392 1,410 1,460 — — — — — — 1.47 1.41 1.02
Obuasi 72 52 13 299 230 63 31 39 — — — — 7.29 6.96 6.60 1.48 0.80 — — — —
Siguiri - Attr. 85% 66 74 67 — — — — — — 2,159 2,412 2,482 — — — — — — 0.95 0.95 0.84
Geita 156 110 126 595 578 643 — — — 898 872 716 5.55 3.97 4.53 — — — 1.72 1.30 1.38
AUSTRALIA 143 127 125 805 813 869 — — — 1,950 1,858 1,830 2.42 2.41 2.25 — — — 1.29 1.08 1.06
Sunrise Dam 57 56 58 560 562 653 — — — 462 440 348 2.18 2.20 2.11 — — — 1.23 1.15 1.21
Tropicana - Attr. 70% 86 71 67 245 251 216 — — — 1,488 1,418 1,482 2.97 2.88 2.69 — — — 1.30 1.05 1.02
AMERICAS 152 136 140 1,064 989 1,060 — — — 185 236 231 3.61 3.59 3.28 — — — 3.27 1.93 2.12
Cerro Vanguardia - Attributable 92.50% 44 43 38 116 104 85 — — — 165 189 207 4.90 7.33 5.97 — — — 3.54 2.04 2.30
AngloGold Ashanti Mineração 86 74 84 682 621 729 — — — — — — 3.81 3.65 3.33 — — — — — —
Serra Grande 22 19 18 266 264 246 — — — 20 47 24 2.52 1.99 2.20 — — — 1.02 1.49 0.59
PROJECTS — — — — — — — — — — — — — — — — — — — — —
Colombian projects — — — — — — — — — — — — — — — — — — — — —
North American projects — — — — — — — — — — — — — — — — — — — — —
AngloGold Ashanti 738 645 613 3,155 3,026 3,016 31 39 — 7,090 7,234 7,210 4.26 3.81 3.63 1.48 0.80 — 1.29 1.15 1.07
Rounding of figures may result in computational discrepancies.
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Operations at a glance (continued)
for the quarters ended 30 September 2022, 30 June 2022 and 30 September 2021
Total cash costs All-in sustaining costs Sustaining ORD / Stripping capex Other sustaining capex Non sustaining capex
$/oz $/oz $m $m $m
Sep-22 Jun-22 Sep-21 Sep-22 Jun-22 Sep-21 Sep-22 Jun-22 Sep-21 Sep-22 Jun-22 Sep-21 Sep-22 Jun-22 Sep-21
AFRICA 928 1,028 858 1,141 1,245 1,119 47 38 49 35 29 24 55 44 54
Kibali - Attributable 45% 762 718 613 972 972 771 5 6 7 10 8 5 5 5 8
Iduapriem 792 1,060 1,031 1,043 1,276 1,580 11 8 16 5 6 7 20 11 —
Obuasi 961 1,144 1,254 1,236 1,428 2,541 11 12 15 6 4 2 20 16 20
Siguiri - Attr. 85% 1,386 1,274 1,181 1,475 1,384 1,270 — — — 4 5 3 — 1 5
Geita 866 1,019 764 1,094 1,241 969 20 12 11 9 5 6 10 11 21
Non-controlling interests, admin and other — — — 1 1 1 — — —
AUSTRALIA 1,047 1,247 1,157 1,238 1,424 1,363 11 9 7 11 8 10 37 29 28
Sunrise Dam 1,430 1,464 1,276 1,715 1,663 1,485 6 5 4 7 4 5 — — 3
Tropicana - Attr. 70% 705 969 947 844 1,111 1,146 5 4 3 4 4 5 37 29 25
Admin and other — — — — — — — — —
AMERICAS 1,038 1,146 928 1,644 1,788 1,800 37 35 31 39 42 83 — — —
Cerro Vanguardia - Attributable 92.50% 923 994 842 1,317 1,218 1,402 8 6 5 6 4 14 — — —
AngloGold Ashanti Mineração 1,028 1,119 869 1,716 1,926 1,659 21 20 21 27 31 41 — — —
Serra Grande 1,312 1,561 1,388 1,992 2,486 3,263 7 8 5 6 7 27 — — —
Non-controlling interests, admin and other 1 1 — — — 1 — — —
PROJECTS — — — — — — — — — — — — 5 4 11
Colombian projects — — — — — — — — — — — — 5 4 11
North American projects — — — — — — — — — — — — — — —
OTHER — — — — — 9 — — —
AngloGold Ashanti 966 1,092 927 1,284 1,430 1,362 95 82 87 85 79 126 97 77 93
A new segment for Projects (previously reported under the Americas segment) has been introduced due to the implementation of the new operating model. Comparative information has been restated.
Rounding of figures may result in computational discrepancies.
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Development Sampling
for the quarter ended 30 September 2022
Development values represent actual results of sampling, no allowances having been made for adjustments necessary in estimating Mineral
Reserve.
Statistics are shown in metric units Advanced Sampled
metres Sampled Avg. ore body gold
(total)* metres thickness (cm) Avg. g/t
AFRICA
Geita
Nyankanga 1,800 383 550.0 2.88
Star and Comet + Ridge 8 893 177 320.0 3.32
Geita Hill 1,604 463 550.0 2.77
AMERICAS
AngloGold Ashanti Mineração
Mina de Cuiabá 3,432 986 87.0 5.58
Lamego 1,376 ...
