Wrap Text
FY 2023 Preliminary Financial Update
for the six months and for the year ended
31 December 2023
AngloGold Ashanti plc
(Incorporated in England and Wales)
Registration No. 14654651
LEI No. 2138005YDSA7A82RNU96
ISIN: GB00BRXH2664
CUSIP: G0378L100
NYSE Share code: AU
JSE Share code: ANG
A2X Share code: ANG
GhSE (Shares): AGA
GhSE (GhDS): AAD
("AngloGold Ashanti", "AGA" or the "Company")
FY 2023 Preliminary Financial Update
for the six months and for the year ended 31 December 2023
AngloGold Ashanti delivers strong second half improvement, generating $314m free
cash flow*; Nevada gold Mineral Resource (2) nearly doubles to 16.6Moz (3) boosted by
9.1Moz gold Inferred Mineral Resource (2) discovery at Merlin
AngloGold Ashanti plc ("AngloGold Ashanti", "AGA" or the "Company") delivered a strong improvement in production, total operating cost and
free cash flow* in the second half of 2023 versus the first half of 2023 and declared a 9.1Moz gold Inferred Mineral Resource(2) at the Merlin
deposit, nearly doubling its overall Nevada Mineral Resource(2) of gold.
Free cash inflow* of $314m in the six months ended 31 December 2023 compared with free cash outflow* of $205m in the six months ended 30
June 2023 as gold production(1) rose 15% and total cash costs per ounce*(1) fell 9% in the same period. Total cash costs per ounce* fell 7% for
subsidiaries(1) and 16% for joint ventures in the second half of 2023 compared to the first half of 2023.
Geita, Iduapriem, Kibali and Tropicana made strong improvements in the second half of 2023 compared to the first half of 2023, with Cuiabá
delivering production above plan and Siguiri returning in early November 2023 to full capacity following a carbon-in-leach ("CIL") tank failure in
its processing plant in May 2023.
"Free cash flow* was strong in the second half of 2023, with production up, total operating costs down and a major new discovery in Nevada,"
said Chief Executive Officer Alberto Calderon. "We were again able to safely deliver on our production commitments, which is important for any
business looking to build credibility."
Safety also improved. The Total Recordable Injury Frequency Rate ("TRIFR") of 1.09 injuries per million hours worked for 2023 was 13% better
than 2022. No fatal injuries were reported in 2023 at mines operated by the Company, for the second consecutive year.
AngloGold Ashanti is working to narrow the valuation gap with its North American-based peers by improving relative cost performance, moving
its primary listing to the United States, proposing a joint venture in Ghana to potentially create Africa's largest gold mine, closing loss-making
operations and investing in new projects to grow production and improve margins.
Significant Growth in Nevada
The Company made an important new gold discovery in the United States, declaring a gold Inferred Mineral Resource(2) of 9.1Moz at an
average grade of 0.99g/t, at the Merlin deposit in Nevada. This new find takes AngloGold Ashanti's total gold Mineral Resource(2) in the Beatty
District in Nevada to a total of 16.6Moz(3) at 31 December 2023.
"This is the largest new discovery in the United States in more than a decade," said CEO Alberto Calderon. "We've found a lot of gold, at a very
good grade, in one of the best jurisdictions in the world; it's potentially a game changer."
The Company's board of directors approved the North Bullfrog feasibility study, subject to receipt of necessary permits and approvals. The
project, which is anticipated to be the first of the Company's Nevada operations to enter production, is expected to produce an Internal Rate of
Return ("IRR")(4) of 13% assuming a gold price of $1,600/oz. Regulatory approvals are anticipated during the first half of 2025.
Stronger Second Half as Planned
Second-half gold production(1) for the group increased 15% over the first half of 2023, bringing total gold production(1) for 2023 to 2.593Moz,
within the 2023 guidance range(1). Solid performances across most of the portfolio helped offset the impact of challenges at Siguiri in the first
half of 2023 and the impact of poor ground conditions at Obuasi in the second half of 2023.
Obuasi started to make a good recovery in the fourth quarter of 2023, gaining fresh momentum following the slowdown in the third quarter of
2023 when poor ground conditions were encountered in some high-grade areas. Gold production in the fourth quarter of 2023 was 61,000oz, a
33% increase over the third quarter of 2023.
Total cash costs per ounce* were $1,154/oz for subsidiaries(1) and $802/oz for joint ventures in 2023. Total cash costs per ounce*(1) for the group
at $1,108/oz in 2023 was below the top end of guidance(1).
Non-Reliance on Previously Issued Financial Statements
During the FY 2023 year-end audit process, AngloGold Ashanti found a potential error in the calculation of a deferred tax asset with respect to the Obuasi
mine, which impacts its FY 2022 audited consolidated financial statements and H1 2023 unaudited condensed consolidated interim financial statements
by a total of up to approximately $146m in earnings. The potential error is non-cash in nature and has no impact on production, costs or cash flow.
AngloGold Ashanti remains in discussions regarding this matter with its previous auditor, Ernst & Young Inc., about if and how much of this potential error
should be accounted for in the FY 2022 audited consolidated financial statements, after which unaudited condensed consolidated preliminary financial
statements for the six months and the year ended 31 December 2023 will be released.
For further information, refer to "Non-Reliance on Previously Issued Financial Statements" on p.12 of the Full Announcement (as defined below).
Second Half 2023 Highlights
• Strong H2 2023 recovery in gold production, total operating cost and free cash flow* recovery after H1 2023 headwinds
• Gold production(1) for the group +15% to 1.388Moz in H2 2023 from 1.205Moz in H1 2023
• Total cash cost per ounce*(1) (subsidiaries) -7% to $1,112/oz in H2 2023 from $1,202/oz in H1 2023
• Total cash cost per ounce* (joint ventures) -16% to $741/ oz in H2 2023 from $880/oz in H1 2023
• Total cash cost per ounce*(1) for the group -9% to $1,060/oz in H2 2023 from $1,162/oz in H1 2023
• Free cash inflow* of $314m in H2 2023 vs free cash outflow* of $205m in H1 2023
• Net cash inflow from operating activities of $678m in H2 2023 vs $293m in H1 2023
• Obuasi gold production +33% to 61,000oz in Q4 2023 from 46,000oz in Q3 2023
Full Year 2023 Highlights
• Gold production guidance(1) achieved at 2.593Moz
• Total cash costs per ounce*(1) at $1,108/oz within guidance range(1), representing $1,154/oz for subsidiaries(1) and $802/oz for joint
ventures
• All-in sustaining cost per ounce*(1) at $1,538/oz, above guidance on higher sustaining capital expenditure
• Strong performances from Iduapriem, Kibali, Cuiabá, Sunrise Dam and Tropicana; Full Asset Potential gains traction
• Free cash inflow* of $109m after strong H2 2023
• Record safety result – TRIFR improved 13% year-on-year to 1.09 injuries per million hours worked; zero fatalities at mines operated
by the Company
• 9.1Moz Inferred Mineral Resource(2) of gold at an average grade of 0.99g/t for Merlin
• Total Nevada Mineral Resource(2) of gold now a total of 16.6Moz(3)
• North Bullfrog declares 1.0Moz Mineral Reserve of gold; feasibility study shows 13% IRR(4) at $1,600/oz gold price
• Dividend of 19 US cents per share in respect of H2 2023
Notes:
(1)
Adjusted to exclude the Córrego do Sítio (CdS) operation that was placed on care and maintenance in August 2023.
(2)
The Mineral Resource exclusive of Mineral Reserve is defined as the inclusive Mineral Resource less the Mineral Reserve before dilution and other factors are applied.
Refer to "2023 Mineral Resource and Mineral Reserve Information" of the Full Announcement..
(3)
Includes gold Measured and Indicated Mineral Resource of 5.37Moz and gold Inferred Mineral Resource of 11.21Moz at 31 December 2023 in the Beatty District in Nevada.
Refer to "2023 Mineral Resource and Mineral Reserve Information" of the Full Announcement.
(4)
The achievement of IRR could differ materially 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, and other business and operational risks and challenges and other factors, including mining accidents.
* Refer to "Non-GAAP disclosure" for definitions and reconciliations.
GROUP - Key statistics
Six months Six months Six months Year Year
ended ended ended ended ended
Dec Jun Dec Dec Dec
2023 2023 2022 2023 2022
US dollar / Imperial
Operating review
Gold
Produced - Total (1) - oz (000) 1,388 1,205 1,467 2,593 2,672
Produced - Subsidiaries (1) (2) - oz (000) 1,196 1,054 1,287 2,250 2,335
Produced - Joint Ventures - oz (000) 192 151 180 343 337
Sold - Total (1) - oz (000) 1,357 1,216 1,442 2,573 2,648
Sold - Subsidiaries (1) (2) - oz (000) 1,168 1,062 1,260 2,230 2,316
Sold - Joint Ventures - oz (000) 189 154 182 343 332
Financial review
Gold income - $m 2,335 2,144 2,298 4,480 4,388
Cost of sales - $m 1,792 1,749 1,771 3,541 3,366
Gross profit (loss) - $m 592 435 569 1,027 1,129
Average gold price received per ounce* - Subsidiaries - $/oz 1,939 1,917 1,725 1,928 1,793
Average gold price received per ounce* - Joint Ventures - $/oz 1,953 1,941 1,732 1,948 1,795
All-in sustaining costs per ounce* - Subsidiaries(1) - $/oz 1,633 1,622 1,379 1,628 1,396
All-in sustaining costs per ounce* - Joint Ventures - $/oz 862 1,060 959 951 979
All-in sustaining costs per ounce* - Total (1) - $/oz 1,526 1,551 1,326 1,538 1,344
All-in costs per ounce* - Subsidiaries (1) - $/oz 1,822 1,891 1,617 1,855 1,617
All-in costs per ounce* - Joint Ventures - $/oz 988 1,180 1,069 1,074 1,075
All-in costs per ounce* - Total (1) - $/oz 1,706 1,801 1,548 1,751 1,549
Total cash costs per ounce* - Subsidiaries(1) - $/oz 1,112 1,202 1,006 1,154 1,040
Total cash costs per ounce* - Joint Ventures - $/oz 741 880 698 802 725
Total cash costs per ounce* - Total(1) - $/oz 1,060 1,162 968 1,108 1,000
Total borrowings - $m 2,410 2,091 2,169 2,410 2,169
Adjusted net debt* - $m 1,268 1,194 878 1,268 878
Net cash inflow from operating activities - $m 678 293 812 971 1,804
Free cash flow* - $m 314 (205) 185 109 657
Capital expenditure - Subsidiaries - $m 589 453 594 1,042 1,028
Capital expenditure - Joint Ventures - $m 41 44 52 85 90
(1)
Adjusted to exclude the Córrego do Sítio (CdS) operation that was placed on care and maintenance in August 2023.
(2)
Includes gold concentrate from the Cuiabá mine sold to third parties.
* Refer to "Non-GAAP disclosure" for definitions and reconciliations.
$ represents US dollar, unless otherwise stated.
Rounding of figures may result in computational discrepancies.
Dividends
The board of directors of AngloGold Ashanti plc today announces an interim dividend for the year ended 31 December 2023 of 19 US cents per
share in line with its policy, a minimum of 20% of free cash flow* before non-sustaining capital expenditure, following a strong second half
performance.
In respect of the interim dividend, the timelines, including dates for currency conversions, set out below will apply.
To holders of ordinary shares on the NYSE
2024
Ex-dividend on New York Stock Exchange Thursday, 14 March
Record date Friday, 15 March
Payment date Thursday, 28 March
Additional information for South African resident shareholders of AngloGold Ashanti:
Shareholders registered on the South African section of the register are advised that the distribution of 19 US cents per ordinary share will be
converted to South African rands at the applicable exchange rate to be published on Tuesday, 12 March 2024.
In compliance with the requirements of Strate and the JSE Listings Requirements, the salient dates for payment of the dividend are as follows
To holders of ordinary shares on the JSE
2024
Declaration date Friday, 23 February
Currency conversion rate for South African rands announced Tuesday, 12 March
Last date to trade ordinary shares cum dividend Tuesday, 12 March
Last date to register transfer of certificated securities cum dividend Wednesday, 13 March
Ordinary shares trade ex-dividend Wednesday, 13 March
Record date Friday, 15 March
Payment date Thursday, 28 March
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, 13 March 2024
and Friday, 15 March 2024, both days inclusive. No transfers between South African, NYSE and Ghanaian share registers will be permitted
between Tuesday, 12 March 2024 and Friday, 15 March 2024, both days inclusive.
Details of the exchange rates applicable to the dividend and a summary of the tax considerations applicable to South African shareholders will be
included in the finalisation announcement, which is expected to be published on Tuesday,12 March 2024.
To holders of Ghanaian Depositary Shares (GhDSs)
100 GhDSs represent one ordinary share.
2024
Currency conversion date Tuesday, 12 March
Last date to trade and to register GhDSs cum dividend Wednesday, 13 March
GhDSs trade ex-dividend Wednesday, 13 March
Record date Friday, 15 March
Approximate payment date of dividend Thursday, 28 March
Assuming an exchange rate of US$1/¢12.3828, the gross dividend payable per share, is equivalent to ca. ¢2.3527 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 "JSE 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 details contained in this JSE Announcement are only a summary of the information contained in the FY 2023 Preliminary Financial
Update submitted to the United States Securities and Exchange Commission on Form 6-K (the "Full Announcement"). The Full
Announcement contains a preliminary financial update 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 email to CompanySecretary@Anglogoldashanti.com or by contacting Yatish Chowthee on +27 11 637 6273.
The JSE link is as follows:
https://senspdf.jse.co.za/documents/2024/jse/isse/ange/HYDEC23.pdf
Johannesburg, South Africa
23 February 2024
JSE Sponsor: The Standard Bank of South Africa Limited
CONTACTS
Media
Andrea Maxey: +61 08 9425 4603 / +61 400 072 199 amaxey@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 financial reports, operations, economic performance
and financial condition. These forward-looking statements or forecasts are not based on historical facts, but rather reflect our current beliefs and expectations concerning future events and
generally may be identified by the use of forward-looking words, phrases and expressions such as "believe", "expect", "aim", "anticipate", "intend", "foresee", "forecast", "predict", "project",
"estimate", "likely", "may", "might", "could", "should", "would", "seek", "plan", "scheduled", "possible", "continue", "potential", "outlook", "target" or other similar words, phrases, and
expressions; provided that the absence thereof does not mean that a statement is not forward-looking. Similarly, statements that describe our objectives, plans or goals are or may be
forward-looking statements. These forward-looking statements or forecasts involve known and unknown risks, uncertainties and other factors that may cause AngloGold Ashanti's actual
results, performance, actions or achievements to differ materially from the anticipated results, performance, actions 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, performance, actions or achievements 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 challenges and other factors, including mining accidents. For a discussion of such risk factors, refer to AngloGold Ashanti Limited's annual report on Form 20-F for the year
ended 31 December 2022 filed with the United States Securities and Exchange Commission (SEC) and AngloGold Ashanti's registration statement on Form F-4 initially filed with the SEC
on 23 June 2023. These factors are not necessarily all of the important factors that could cause AngloGold Ashanti's actual results, performance, actions or achievements to differ
materially from those expressed in any forward-looking statements. Other unknown or unpredictable factors could also have material adverse effects on AngloGold Ashanti's future results,
performance, actions or achievements. 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
December 2023 Published : 23 February 2024
Date: 23-02-2024 03:25:00
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