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https://senspdf.jse.co.za/documents/2022/jse/isse/anano/HYJun22.pdf
2022 Interim Results Short Form Announcement
for the six months ended 30 June 2022
AngloGold Ashanti Limited
(Incorporated in the Republic of South Africa)
Reg. No. 1944/017354/06
ISIN: ZAE000043485 – JSE share code: ANG
CUSIP: 035128206 – NYSE share code: AU
(“AngloGold Ashanti” or “AGA” or the “Company”)
2022 Interim Results Short Form Announcement
for the six months ended 30 June 2022
Johannesburg, 5 August 2022 - AngloGold Ashanti Limited (“AngloGold Ashanti”, “AGA” or the “Company”) reported a solid performance for the first
half of 2022, with production 3% higher year-on-year, an increase in total cash costs limited to 6%, and a strong improvement in cash flow. The
Company declared an interim dividend of 29 US cents per share, or $121m, and remains on track to achieve full-year guidance.
Production for the first six months of 2022 was 1.233Moz, with second-quarter output up 10% versus the first quarter of 2022. Production growth was
underpinned by higher grades and tonnes processed, leading to marked improvements from the Australian and Latin American operations, which
offset lower production from Kibali and Geita. Obuasi continued its ramp-up through the period and is on track to achieve its annual production
guidance of 240,000oz to 260,000oz for 2022.
Total cash costs for the first six months of 2022 were $1,068/oz, up 6% from the first half of 2021 driven largely by accelerating inflation across several
input categories as well as larger royalty payments due to the higher gold price received. These cost pressures were partially offset by operating
improvements and a 10% increase in underground grades.
“The fundamentals of our Company continue to improve, despite the challenging cost environment,” said Chief Executive Officer Alberto Calderon.
“We have the right structure and the right people in place to further optimise from our portfolio and close the gap with our peers.”
Adjusted EBITDA for the first half of 2022 was $864m, compared with $876m for the first half of 2021. Headline earnings for the first half of 2022 were
$300m, or 71 US cents per share, compared with $363m, or 87 US cents per share, in the first half of 2021.
Free cash flow increased to $471m for the first half of 2022 from an outflow of $25m in the same period last year and the balance sheet remains
flexible during an ongoing period of reinvestment in improving its portfolio. The increase in free cash flow was supported by $549m received from the
Kibali gold mine in the Democratic Republic of the Congo.
The $365m cash acquisition of Corvus Gold Inc. (“Corvus”) was completed in January 2022, creating a strong foothold in the prospective Beatty
district in Southern Nevada which the Company plans to bring into production in about three years. The district is expected to grow over several years
to more than 300,000oz per year production after mining commences and be active for two decades or more, with all-in costs well below AngloGold
Ashanti’s current average.
The balance sheet remained in a solid position after funding the Corvus acquisition and paying the 2021 year-end dividend, with approximately $2.6bn
in liquidity, including cash of $1.3bn at the end of June 2022. The $1.4bn multi-currency revolving credit facility was refinanced during the second
quarter of 2022, extending the maturity to 2027.
The Company continues to progress its Full Asset Potential (“FAP”) review programme, with the initial assessment stage of the process completed at
the Sunrise Dam mine in Australia and the Siguiri mine in Guinea. Both sites are now progressing to the implementation phase, during which the
optimisation opportunities that have been identified will be implemented. The Cuiabá mine in Brazil is currently in the process of completing its FAP
assessment. Tropicana, Geita and Serra Grande are the next sites expected to undergo the assessment process in the second half of 2022. The FAP
review programme is aimed at achieving a step-change improvement in operating performance and competitiveness.
FIRST HALF YEAR 2022 HIGHLIGHTS
Strong safety result: Total Recordable Injury Frequency Rate improved 39% as compared to H1 2021 to 1.33 injuries per
million hours worked
Free cash flow of $471m; underpinned by cash distributions received from Kibali
Interim dividend of ZAR493 cents per share (equivalent 29 US cents per share) declared (2021: ZAR87 cents per share,
467% increase)
Obuasi on track to achieve its annual guidance of 240,000oz – 260,000oz for 2022
Operational fundamentals improving – sequential quarterly production improvements; on track to meet full-year
guidance
Full Asset Potential review programme progressing, Sunrise Dam and Siguiri in implementation phase; new sites to
commence assessment process
Reinvestment programme ongoing to grow Ore Reserve and production, at lower costs, over the medium- to longer
term
SALIENT FEATURES
• On track to meet guidance ranges for 2022 with total cash costs trending towards the top end of guidance
• First half production increased 3% year-on-year to 1.233Moz
• Strong production contributions from Cerro Vanguardia (+17%), Siguiri (+21%), Sunrise Dam (+15%), Iduapriem (+14%) and Tropicana (+14%)
• Underground grade +10% year-on-year following reinvestment initiatives
• Total cash costs increased 6% year-on-year to $1,068/oz in H1 2022
• All-in sustaining costs (“AISC”) increased 6% year-on-year to $1,418/oz in H1 2022 mainly due to planned higher sustaining capital expenditure and
increased total cash costs
• Basic earnings of $298m in H1 2022, from $362m in H1 2021; Headline earnings of $300m in H1 2022, from $363m in H1 2021
• Net cash inflow from operating activities of $992m in H1 2022, from $467m in H1 2021 mainly due to higher Kibali dividend and lower taxes
• Adjusted EBITDA decreased 1% year-on-year to $864m in H1 2022; Adjusted EBITDA margin of 41%
• Adjusted net debt down 13% year-on-year to $740m at 30 June 2022
• Free cash inflow of $471m in H1 2022 versus an outflow of $25m in H1 2021
GROUP - Key statistics
Six months Six months Year
ended ended ended
Jun Jun Dec
2022 2021 % Variance 2021
Reviewed Reviewed
US Dollar / Imperial
Operating review
Gold
Produced - oz (000) 1,233 1,200 3 2,472
Sold - oz (000) 1,233 1,214 2 2,483
Financial review
Price received per ounce (1) - $/oz 1,874 1,801 4 1,796
Total cash costs per ounce (1) - $/oz 1,068 1,003 6 963
All-in sustaining costs per ounce (1) - $/oz 1,418 1,333 6 1,355
All-in costs per ounce (1) - $/oz 1,602 1,521 5 1,577
Gold income - $m 2,090 1,911 9 3,903
Cost of sales - $m 1,592 1,400 14 2,857
Total cash costs - $m 1,300 1,163 12 2,334
Gross profit - $m 563 565 — 1,172
Profit attributable to equity shareholders - $m 298 362 (18) 622
- US cents/share 71 86 (17) 148
Headline earnings - $m 300 363 (17) 612
- US cents/share 71 87 (18) 146
Profit before taxation - $m 407 507 (20) 958
Adjusted EBITDA (1) - $m 864 876 (1) 1,801
Net cash inflow from operating activities - $m 992 467 112 1,268
Free cash (outflow) inflow(1) - $m 471 (25) (1984) 104
Total borrowings - $m 2,219 2,105 5 2,094
Adjusted net debt (1) (2) - $m 740 850 (13) 765
Adjusted net debt to Adjusted EBITDA (1) - times 0.41 0.37 11 0.42
Capital expenditure (including equity-accounted joint ventures) - $m 472 461 2 1,100
(1)Refer to "Non-GAAP disclosure" following the Condensed Consolidated Interim Financial Statements for the six months ended 30 June 2022 and the “Glossary of Terms” in the Company’s
annual financial statements for the year ended 31 December 2021, for definitions.
(2)Includes $365m Corvus acquisition cost paid during Q1 2022
$ represents US Dollar, unless otherwise stated.
Rounding of figures may result in computational discrepancies.
Dividends
The directors of AngloGold Ashanti Limited (Registration Number 1944/017354/06) declared Dividend No.125 for the six months ended 30 June
2022 as detailed below. In terms of the withholding tax on dividends which became effective on 1 April 2012, the following additional information is
disclosed:
Dividends have been declared out of total reserves
Gross dividend declared per ordinary share in South African cents 493.00
Dividends tax rate applicable to shareholders liable to pay the dividend tax 20%
Net dividend in South African cents (where dividend tax at 20% is payable on payment date) 394.40000
The issued ordinary share capital of AngloGold Ashanti at date of declaration is 418,387,029
AngloGold Ashanti’s tax reference number 9640006608
In compliance with the requirements of Strate, given the Company’s primary listing on the JSE, the salient dates for payment of the dividend are
as follows:
To holders of ordinary shares
2022
Declaration date Friday, 5 August
Currency conversion date for Australian dollars and Ghanaian cedis Monday, 22 August
Last date to trade ordinary shares cum dividend Tuesday, 23 August
Last date to register transfer of certificated securities cum dividend Wednesday, 24 August
Ordinary shares trade ex-dividend Wednesday, 24 August
Record date Friday, 26 August
Payment date Friday, 9 September
Dividends in respect of dematerialised shareholdings will be credited to shareholders’ accounts with the relevant CSDP or broker.
To comply, with further requirements of Strate, share certificates may not be dematerialised or rematerialised between Wednesday, 24 August
2022 and Friday, 26 August 2022, both days inclusive. No transfers between South African, Australian and Ghana share registers will be permitted
between Monday, 22 August 2022 and Friday, 26 August 2022, both days inclusive.
To holders of CHESS Depositary Interests (CDIs)
Each CDI represents one-fifth of an ordinary share
2022
Last date to trade ordinary shares cum dividend Wednesday, 24 August
Last date to register transfer of certificated securities cum dividend Wednesday, 24 August
Ordinary shares trade ex-dividend Thursday, 25 August
Record date Friday, 26 August
Payment date Friday, 9 September
To holders of American Depositary Shares (ADS)
Each American Depositary Share represents one ordinary share.
2022
Ex dividend on New York Stock Exchange Thursday, 25 August
Record date Friday, 26 August
Approximate date of currency conversion Friday, 9 September
Approximate payment date of dividend Monday, 19 September
Assuming an exchange rate of R17.00/$, the gross dividend payable per ADS, which is subject to a 20% South African withholding tax, is
equivalent to c.29 US cents. However, the actual rate of payment will depend on the exchange rate on the date for currency conversion.
To holders of Ghanaian Depositary Shares (GhDSs)
100 GhDSs represent one ordinary share
2022
Last date to trade and to register GhDSs cum dividend Wednesday, 24 August
GhDSs trade ex-dividend Wednesday, 24 August
Record date Friday, 26 August
Approximate payment date of dividend Friday, 9 September
Assuming an exchange rate of R1/¢0.5020, the gross dividend payable per share, which is subject to a 20% South African withholding tax, is
equivalent to c.2.47486 Ghanaian cedis. However, the actual rate of payment will depend on the exchange rate on the date for currency
conversion.
This short form announcement (the “Announcement”) is the responsibility of the board of directors of the Company, who certify that, to the
best of their knowledge and belief, there are no facts that have been omitted which would make the information false, misleading or
inaccurate, and that all reasonable enquiries to ascertain such facts have been made.
The Condensed Consolidated Interim Financial Statements for the six months period ended 30 June 2022 have been reviewed by Ernst &
Young Inc., who expressed an unmodified review conclusion. A copy of the auditor's review report is available for inspection at the Group's
registered office, as well as on the Company’s website at www.anglogoldashanti.com.
The details contained in this Announcement are only a summary of the information in the full announcement containing the detailed
unaudited quarterly results and therefore do not contain full details of the Company’s financial position and results of operations or other
relevant information about the business for the period under review. Investors and/or shareholders should base any investment decisions on
consideration of the full Announcement and are therefore directed to the full announcement available for viewing via the JSE SENS link,
provided below, and available on the Company’s website at www.anglogoldashanti.com. The full announcement may be requested by
emailing CompanySecretary@Anglogoldashanti.com or by phoning Yatish Chowthee on +27 11 637 6273.
The JSE link is as follows:
https://senspdf.jse.co.za/documents/2022/jse/isse/anano/HYJun22.pdf
Johannesburg, South Africa
5 August 2022
JSE Sponsor: The Standard Bank of South Africa Limited
CONTACTS
Media
Andrea Maxey: +61 08 9425 4603 / +61 400 072 199 amaxey@anglogoldashanti.com
Chipo Mrara: +27 11 637 6012 / +27 60 571 0797 camrara@anglogoldashanti.com
General inquiries media@anglogoldashanti.com
Investors
Yatish Chowthee: +27 11 637 6273 / +27 78 364 2080 yrchowthee@anglogoldashanti.com
Andrea Maxey: +61 08 9425 4603 / +61 400 072 199 amaxey@anglogoldashanti.com
Certain statements contained in this document, other than statements of historical fact, including, without limitation, those concerning the economic outlook for the gold mining industry,
expectations regarding gold prices, production, total cash costs, all-in sustaining costs, all-in costs, cost savings and other operating results, return on equity, productivity improvements,
growth prospects and outlook of AngloGold Ashanti’s operations, individually or in the aggregate, including the achievement of project milestones, commencement and completion of
commercial operations of certain of AngloGold Ashanti’s exploration and production projects and the completion of acquisitions, dispositions or joint venture transactions, AngloGold
Ashanti’s liquidity and capital resources and capital expenditures, the consequences of the COVID-19 pandemic and the outcome and consequences of any potential or pending litigation
or regulatory proceedings or environmental, health and safety issues, are forward-looking statements regarding AngloGold Ashanti’s operations, economic performance and financial
condition. These forward-looking statements or forecasts involve known and unknown risks, uncertainties and other factors that may cause AngloGold Ashanti’s actual results, performance
or achievements to differ materially from the anticipated results, performance or achievements expressed or implied in these forward-looking statements. Although AngloGold Ashanti
believes that the expectations reflected in such forward-looking statements and forecasts are reasonable, no assurance can be given that such expectations will prove to have been
correct. Accordingly, results could differ materially from those set out in the forward-looking statements as a result of, among other factors, changes in economic, social, political and
market conditions, including related to inflation or international conflicts, the success of business and operating initiatives, changes in the regulatory environment and other government
actions, including environmental approvals, fluctuations in gold prices and exchange rates, the outcome of pending or future litigation proceedings, any supply chain disruptions, any public
health crises, pandemics or epidemics (including the COVID-19 pandemic), and other business and operational risks and other factors, including mining accidents. For a discussion of
such risk factors, refer to 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).
These factors are not necessarily all of the important factors that could cause AngloGold Ashanti’s actual results to differ materially from those expressed in any forward-looking
statements. Other unknown or unpredictable factors could also have material adverse effects on future results. Consequently, readers are cautioned not to place undue reliance on
forward-looking statements. AngloGold Ashanti undertakes no obligation to update publicly or release any revisions to these forward-looking statements to reflect events or circumstances
after the date hereof or to reflect the occurrence of unanticipated events, except to the extent required by applicable law. All subsequent written or oral forward-looking statements
attributable to AngloGold Ashanti or any person acting on its behalf are qualified by the cautionary statements herein.
Non-GAAP financial measures
This communication may contain certain “Non-GAAP” financial measures. AngloGold Ashanti utilises certain Non-GAAP performance measures and ratios in managing its business. Non-
GAAP financial measures should be viewed in addition to, and not as an alternative for, the reported operating results or cash flow from operations or any other measures of performance
prepared in accordance with IFRS. In addition, the presentation of these measures may not be comparable to similarly titled measures other companies may use.
Website: www.anglogoldashanti.com
June 2022 Published : 5 August 2022
Date: 05-08-2022 07:05:00
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