AngloGold Ashanti Reports Strong Second-Half Performance and Major Gold Discovery in Nevada

  • AngloGold Ashanti reports strong financial performance in FY 2023 with $314m free cash flow, doubling Nevada gold resource.
  • Safety record improves, with no fatal injuries reported for the second consecutive year, TRIFR rate better than 2022.
  • Company announces interim dividend of 19 US cents per share following robust second-half performance.
Published by
Lethabo Ntsoane

AngloGold Ashanti plc has released its FY 2023 Preliminary Financial Update, showcasing a robust second-half performance and a significant gold discovery in Nevada. The company’s strong improvement in production, total operating costs, and free cash flow in the latter half of 2023 has propelled it towards achieving its strategic goals.

Financial Performance

In the six months ending December 31, 2023, AngloGold Ashanti reported a remarkable turnaround in its financials compared to the first half of the year. Notably, the company generated a free cash inflow of $314 million, marking a substantial improvement from the $205 million outflow experienced in the preceding six months. This positive trend was driven by a 15% increase in gold production and a 9% decrease in total cash costs per ounce.

Financial MetricSix Months Ended Dec 2023Six Months Ended Jun 2023
Gold Production (Total)1,388 oz (000)1,205 oz (000)
Free Cash Flow$314 million($205) million
Total Cash Costs per Ounce$1,060/oz$1,162/oz

Key Discoveries

AngloGold Ashanti’s notable achievement includes the declaration of a 9.1 million ounce gold Inferred Mineral Resource at the Merlin deposit in Nevada. This discovery has nearly doubled the company’s overall Nevada Mineral Resource to 16.6 million ounces, positioning AngloGold Ashanti as a significant player in the United States’ gold mining sector.

Operational Highlights

The company witnessed a strong recovery in gold production across its portfolio, particularly in key mines such as Geita, Iduapriem, Kibali, and Tropicana. Furthermore, the successful return to full capacity of the Siguiri mine in November 2023 following operational challenges earlier in the year underscores AngloGold Ashanti’s resilience and operational efficiency.

Safety and Sustainability

AngloGold Ashanti’s commitment to safety is evident in its improved Total Recordable Injury Frequency Rate (TRIFR), which decreased by 13% in 2023 compared to the previous year. Moreover, the company’s efforts to enhance sustainability include initiatives to narrow the valuation gap with North American peers, propose joint ventures to create Africa’s largest gold mine, and invest in new projects for production growth and margin improvement.

Challenges and Future Outlook

Despite facing challenges such as ground conditions affecting production at the Obuasi mine, AngloGold Ashanti remains optimistic about its prospects. The company anticipates regulatory approvals for the North Bullfrog project in the first half of 2025, further bolstering its position in the gold mining industry.

Dividend Announcement

In line with its policy, AngloGold Ashanti declared an interim dividend of 19 US cents per share for the year ended December 31, 2023. South African shareholders will receive the dividend in South African rands based on the applicable exchange rate.

Conclusion

AngloGold Ashanti’s strong financial performance, coupled with significant discoveries and strategic initiatives, underscores its resilience and growth potential in the global gold mining landscape. With a focus on safety, sustainability, and value creation for shareholders, the company is poised for continued success in the years ahead.

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Lethabo Ntsoane

Lethabo Ntsoane holds a Bachelors Degree in Accounting from the University of South Africa. He is a Financial Product commentator at Rateweb. He is an expect financial product analyst with years of experience in reviewing products and offering commentary. Lethabo majors in financial news, reviews and financial tips. He can be contacted: Email: lethabo@rateweb.co.za Twitter: @NtsoaneLethabo