For the three months ended 30 September 2023
DENVER–(BUSINESS WIRE)–AngloGold Ashanti plc:
OVERVIEW
AngloGold Ashanti plc (“AngloGold Ashanti”, “AGA” or the “Company”) has reaffirmed annual production guidance for 2023 after third-quarter gold production improved versus the second quarter, continuing the recovery from setbacks faced in the first and second quarters of this year at its mines in Brazil and Guinea respectively. The Company recorded no fatalities in the nine months ended 30 September 2023.
AngloGold Ashanti continued to build momentum during the three months ended 30 September 2023, recording a 3% increase in gold production versus the second quarter of the year. Gold production rose to 673,000oz in the third quarter of 2023 from 652,000oz in the second quarter of 2023 mainly due to higher ore tonnes processed partly offset by lower overall recovered grades.
Gold production gains quarter-on-quarter were recorded at Iduapriem (+27%), Siguiri (+22%), Kibali (+13%), Serra Grande (+9%), Geita (+6%) and Tropicana (+3%). These increases in gold production quarter-on-quarter were partly offset by lower production performances at Obuasi (-19%), at AGA Mineração (-13%), at Cerro Vanguardia (-5%) and at Sunrise Dam (-3%). Adjusting for the placement of Córrego do Sítio (“CdS”) in Brazil in care and maintenance, gold production was up 5% quarter-on-quarter.
AngloGold Ashanti has been actively taking measures to close the value gap with its international peers. These efforts involve initiatives to enhance cost-efficiency and extend the life of its mines while also prioritising safety, optimising cash flow, and ensuring the successful delivery of projects. During the period, the Company also completed the migration of its primary listing to the NYSE on 25 September 2023, to enable enhanced access to the world’s largest capital market and improved positioning alongside the gold industry’s most highly valued companies.
“Gold production has improved in the third quarter of 2023 and is expected to step up again over the remainder of the year, in line with our guidance,” CEO Alberto Calderon said. “We continue the work across a number of fronts to enhance our competitiveness versus our peers; our corporate restructuring is complete, we’ve continued to sharpen our operational and project focus, and we’re on track to deliver on our decarbonisation commitments.”
As part of the approach to narrow management focus and direct its capital allocation to the Company’s Tier One and Tier Two operating assets, as well as its high- return development projects, AngloGold Ashanti commenced the process of placing its loss-making CdS mine on care and maintenance during August 2023, and completed the sale of its 50% indirect interest in the Gramalote project to B2Gold Corp.
The Company continues to progress studies related to its first development in the Beatty Mining District in Nevada, USA, where an initial 8.4Moz of Mineral Resource has been reported and an initial exploration target of between 6.0Moz and 8.0Moz from the Merlin deposit alone, was disclosed earlier this year. AngloGold Ashanti anticipates reaching a final investment decision for North Bullfrog in 2024, once the appropriate permits have been received.
Furthermore, the decarbonisation programme has been advancing at both the Geita site, in Tanzania and at the Tropicana site, in Western Australia. Preparation for connecting the mine site to the Tanzania grid, which has a high percentage of its power mix from renewable energy sources, is well advanced while at Tropicana project works have commenced for the construction of a 62MW wind and solar facility.
Additional salient points from the third quarter of 2023 include:
For the nine months ended 30 September 2023, gold production was 1.909Moz, compared to 1.971Moz in the same period last year. The production shortfall over the nine-month period in 2023 versus the same period last year was mainly due to issues we have flagged previously, such as the CIL tank failure during the second quarter of 2023 at the Siguiri mine in Guinea, which resulted in an estimated loss of 29koz (attributable) of production, and the suspension of waste deposition on the Calcinados TSF at the Cuiabá mine in Brazil in the first quarter of 2023, necessitating the transition to gold-in-concentrate production and the subsequent loss of an estimated 5koz of production. The Siguiri tank has been repaired and the mine has ramped back up to full production, while it is anticipated that, for the full year, Cuiabá will exceed its targeted gold production of 180koz (comprising 60koz of gravimetric gold and 120koz of gold-in-concentrate). Further adding to the shortfall, was a reduction of 36koz at Obuasi during the third quarter of 2023 on the back of poor ground conditions in high-grade mining areas.
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Quarter ended |
Quarter ended |
Quarter ended |
Nine months ended |
Nine months ended | |
| Produced | oz (000) | 673 | 652 | 738 | 1,909 | 1,971 |
| Tonnes treated |
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| Open-pit | tonnes (000) | 6,955 | 6,381 | 7,090 | 19,939 | 21,096 |
| Underground | tonnes (000) | 2,987 | 2,940 | 3,155 | 8,551 | 8,978 |
| Other | tonnes (000) | 717 | 810 | 552 | 2,141 | 1,481 |
| Total | tonnes (000) | 10,659 | 10,131 | 10,797 | 30,631 | 31,555 |
| Recovered grade |
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| Open-pit | g/tonne | 1.25 | 1.23 | 1.29 | 1.22 | 1.18 |
| Underground | g/tonne | 3.53 | 3.60 | 4.26 | 3.55 | 3.97 |
| Other | g/tonne | 2.40 | 2.27 | 0.61 | 2.14 | 0.58 |
| Total | g/tonne | 1.96 | 2.00 | 2.13 | 1.94 | 1.94
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OPERATING HIGHLIGHTS
In the Africa region, gold production was 397,000oz for the quarter ended 30 September 2023, compared to 443,000oz for the quarter ended 30 September 2022. Gold production was 10% lower year-on-year mainly due to lower gold production at Obuasi, Siguiri and Geita, partly offset by higher gold production at Iduapriem and Kibali.
Gold production was 9% higher quarter-on-quarter at 397,000oz in the third quarter of 2023, compared to 365,000oz in the second quarter of 2023, mainly due to higher gold production at Kibali, Geita, Iduapriem and Siguiri, partly offset by lower gold production at Obuasi.
In Ghana, at Iduapriem, gold production was 71,000oz for the quarter ended 30 September 2023, compared to 66,000oz for the quarter ended 30 September 2022. Gold production was 8% higher year-on-year mainly due to higher overall recovered grades compared to the prior period as the mine accelerated the mining in Block 7 and 8 Cut 2 A and B, as well as an increase in processing plant throughput on the back of the commissioning of the new TSF.
Gold production at Iduapriem was 27% higher quarter-on-quarter at 71,000oz in the third quarter of 2023, compared to 56,000oz in the second quarter of 2023, mainly due to higher ore tonnes processed and higher overall recovered grades.
At Obuasi, gold production was 46,000oz for the quarter ended 30 September 2023, compared to 72,000oz for the quarter ended 30 September 2022. Gold production was 36% lower year-on-year mainly due to lower underground ore tonnes processed and lower overall recovered grades.
Gold production at Obuasi was 19% lower quarter-on-quarter at 46,000oz in the third quarter of 2023, compared to 57,000oz in the second quarter of 2023, mainly due to lower underground ore tonnes processed and lower overall recovered grades.
Production was negatively impacted by poor ground conditions within some of the higher-grade stopes. During August we lost some underground mining equipment as a result of a fall-of-ground incident in one of the mine’s high-grade stopes. Although nobody was injured in the incident, the decision was taken to proceed more slowly to ensure safety of our operators.
During the month of October we have begun using significantly larger drilling equipment (the V30 reamer) to establish new stopes, which in turn is allowing us to safely increase production and reach similar levels of production to those achieved last year. Going forward, Obuasi is also pursuing a change in mining approach in high-grade areas to a more selective method suitable for difficult ground conditions and higher-grade ores (underhand cut and fill). The transition to this new method in higher-grade areas is expected to take place throughout 2024 following an initial trial period. As a result of the change in mining method, Obuasi is now forecast to produce at levels similar to last year in 2023, and close to 300,000oz in 2024, as it continues its ramp-up.
In Tanzania, at Geita, gold production was 126,000oz for the quarter ended 30 September 2023, compared to 156,000oz for the quarter ended 30 September 2022. Gold production was 19% lower year-on-year mainly due to a combination of lower ore tonnes processed and lower overall recovered grades. Geita remains on track to achieve its 500,000oz gold production target for 2023.
Gold production at Geita was 6% higher quarter-on-quarter at 126,000oz in the third quarter of 2023, compared to 119,000oz in the second quarter of 2023, mainly due to higher ore tonnes processed and higher overall recovered grades.
In the Republic of Guinea, at Siguiri, gold production was 55,000oz for the quarter ended 30 September 2023, compared to 66,000oz for the quarter ended 30 September 2022. Gold production was 17% lower year-on-year mainly due to lower feed grades in the different areas mined, and the CIL tank failure during the second quarter of 2023. Gold production was further adversely impacted by community protests at some of the open pits in relation to additional employment opportunities. These protests have since subsided.
Gold production at Siguiri recovered strongly quarter-on-quarter, rising from 45,000oz in the second quarter of 2023 to 55,000oz in the third quarter of 2023, following the restoration of processing capacity. Gold production was 22% higher quarter-on-quarter mainly due to higher ore tonnes processed, partly offset by lower overall recovered grades. It is expected that recovery rates will improve by the end of this year, as the remaining CIL tanks are re-commissioned and reintroduced into the processing circuit.
In the DRC, at Kibali, gold production was 99,000oz for the quarter ended 30 September 2023, compared to 83,000oz for the quarter ended 30 September 2022. Gold production was 19% higher year-on-year mainly due to higher ore tonnes processed and higher overall recovered grades.
Gold production at Kibali was 13% higher quarter-on-quarter at 99,000oz in the third quarter of 2023, compared to 88,000oz in the second quarter of 2023, mainly due to higher ore tonnes processed and higher overall recovered grades.
In the Americas region, gold production was 136,000oz for the quarter ended 30 September 2023, compared to 152,000oz for the quarter ended 30 September 2022. Gold production was 11% lower year-on-year mainly due to lower gold production at AGA Mineração and Cerro Vanguardia, partly offset by higher gold production at Serra Grande.
Gold production was 7% lower quarter-on-quarter at 136,000oz in the third quarter of 2023, compared to 147,000oz in the second quarter of 2023, mainly due to lower gold production at Cerro Vanguardia and AGA Mineração, which included the placement of the CdS mine in care and maintenance in August 2023.
In Brazil, at AGA Mineração, gold production was 77,000oz for the quarter ended 30 September 2023, compared to 86,000oz for the quarter ended 30 September 2022. Gold production was 10% lower year-on-year mainly due to the cessation of mining activities at CdS. At Cuiabá, gold production was 67,000oz for the third quarter of 2023, which comprised 21,000oz of gravimetric gold and 46,000oz of gold-in- concentrate.
Gold production at AGA Mineração was 13% lower quarter-on-quarter at 77,000oz in the third quarter of 2023, compared to 88,000oz in the second quarter of 2023, mainly due to the cessation of mining activities at CdS.
At Serra Grande, gold production was 24,000oz for the quarter ended 30 September 2023, compared to 22,000oz for the quarter ended 30 September 2022. Gold production was 9% higher year-on-year mainly due to higher ore tonnes processed, partly offset by lower overall recovered grades.
Gold production at Serra Grande was 9% higher quarter-on-quarter at 24,000oz in the third quarter of 2023, compared to 22,000oz in the second quarter of 2023, mainly due to higher ore tonnes processed, partly offset by lower overall recovered grades.
In Argentina, at Cerro Vanguardia, gold production was 35,000oz for the quarter ended 30 September 2023, compared to 44,000oz for the quarter ended 30 September 2022. Gold production was 20% lower year-on-year mainly due to lower ore tonnes processed and lower overall recovered grades.
Gold production at Cerro Vanguardia was 5% lower quarter-on-quarter at 35,000oz in the third quarter of 2023, compared to 37,000oz in the second quarter of 2023, mainly due to lower ore tonnes processed, partly offset by marginally higher overall recovered grades.
In the Australia region, gold production was 140,000oz for the quarter ended 30 September 2023, compared to 143,000oz for the quarter ended 30 September 2022. Gold production was 2% lower year-on-year mainly due to lower gold production at Tropicana, partly offset by higher gold production at Sunrise Dam.
Gold production was flat quarter-on-quarter at 140,000oz, as higher gold production at Tropicana was offset by lower gold production at Sunrise Dam.
At Sunrise Dam, gold production was 64,000oz for the third quarter of 2023 compared to 57,000oz for the quarter ended 30 September 2022. Gold production was 12% higher year-on-year mainly due to improved mill feed grades as a result of ore sourced from higher grade underground mining areas. Underground ore tonnes processed, a key area of improvement at Sunrise Dam, increased 18% year-on-year, as the benefits of the FP review programme continued to materialise.
Gold production at Sunrise Dam was 3% lower quarter-on-quarter at 64,000oz in the third quarter of 2023, compared to 66,000oz in the second quarter of 2023, mainly due to lower open pit tonnes processed. The focus remains on increasing underground ore tonnes, which were up 6% quarter-on-quarter.
At Tropicana, gold production was 76,000oz for the third quarter of 2023 compared to 86,000oz for the quarter ended 30 September 2022. Gold production was 12% lower year-on-year mainly due to lower ore tonnes processed and lower overall recovered grades.
Gold production at Tropicana was 3% higher quarter-on-quarter at 76,000oz in the third quarter of 2023, compared to 74,000oz in the second quarter of 2023, mainly due to higher overall recovered grades, partly offset by lower ore tonnes processed.
GUIDANCE
The Company previously provided guidance for 2023, which remains unchanged. The Company remains on track to achieve full year gold production guidance. Gold production is expected to be second half weighted, with fourth quarter gold production expected to be the strongest out of all the quarters this year.
SAFETY
The Company recorded no fatalities in the nine months ended 30 September 2023.
The Total Recordable Injury Frequency Rate (“TRIFR”) for the nine months ended 30 September 2023 improved 13% to 1.16 injuries per million hours worked, compared to 1.33 injuries per million hours worked in the same period last year. The Company’s TRIFR compares favourably with the International Council on Mining and Metals members’ average TRIFR of 2.66 injuries per million hours worked in 2022. TRIFR measures workplace safety in terms of the total number of recordable injuries and fatalities that occur per million hours worked.
UPDATE ON CAPITAL PROJECTS
Obuasi
Phase 3 of the Obuasi Redevelopment Project, which relates principally to dewatering and refurbishing existing infrastructure around the KMS shaft in order to improve overall mining flexibility and access to the higher-grade Block 11 area in future years, reached 82% overall completion during the third quarter of 2023.
The pace of project work below 50 Level has been slowed down mainly due to unexpectedly heavy rainfall, necessitating increased pumping from underground, and also the discovery of unanticipated levels of residual mud following the dewatering of that area. This has delayed delivery of the project, which is now expected to be complete in the second half of next year, although the overall capital budget for the project remains unchanged.
Despite the project delay, successful debottlenecking of existing infrastructure has created capacity to move about 6,000tpd of material from the existing decline and KRS shaft alone. Once the KMS shaft is recommissioned, Obuasi’s overall materials hoisting capacity and flexibility are expected to significantly improve, taking overall maximum hoisting capacity to about 12,000tpd.
Thus, the optimisation of mill feed will extend across the whole 8km strike ore body via the Cote D’or decline to the north, and high-grade ore from the deeper Block 11 via the KMS shaft located in the central portion of the Obuasi ore body, extending to the southern limits of the ore body via KRS shaft and Obuasi Development Decline.
The following activities took place during the third quarter of 2023:
Tropicana
The Havana underground pre-feasibility study was completed and a feasibility study is now underway. The feasibility study will focus on operational readiness and detailed design. It is anticipated that construction of the access decline will start in the June quarter of 2024.
The Tropicana Renewable Project has commenced site works and is progressing on schedule. The new facility is expected to be an important part, together with other pending and future projects, of supporting AngloGold Ashanti’s strategy to achieve a 30% absolute reduction in Scope 1 and Scope 2 greenhouse gas (“GHG”) emissions by 2030 (as compared to a 2021 baseline), as part of its roadmap to achieve net zero Scope 1 and Scope 2 GHG emissions by 2050.
Nevada
AngloGold Ashanti completed the feasibility study (“FS”) for the North Bullfrog Project (“NBP”) in October 2023. The Project has been approved to continue into the detailed engineering phase and anticipates reaching a final investment decision for North Bullfrog in 2024 with conditional approval subject to receipt of appropriate permits. The NBP is proposing an open-pit mining alternative utilising both gravity milling and heap leaching for ore processing. Permitting processes are underway for the NBP. The Plan of Operations and environmental baseline studies have been accepted as final by state and federal agencies and required Supplemental Environmental Reports have been prepared and reviewed. Federal and state permitting processes are expected to formally commence during the first quarter of 2024 and anticipate receiving the approval to construct in the first quarter of 2025.
The conceptual study (“CS”) for the Expanded Silicon Project continues to progress. This CS is expected to capture synergies from the increased economy of scale and integrated infrastructure, with potential for large scale mining. Completion of the CS and Mineral Resource declaration for the Expanded Silicon Project is anticipated during the fourth quarter of 2023.
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 FS is currently underway to implement improvements in water management, operational flexibility, maintainability, and constructability. As previously reported, the new environmental licence application is expected to be filed with the ANLA in 2026.
Gramalote
On 18 September 2023, AngloGold Ashanti, agreed to sell its entire 50% indirect interest in the Gramalote Project to B2Gold Corp for a total consideration of up to $60m. The transaction closed on 29 September 2023, and AngloGold Ashanti received a cash payment of $20m on 5 October 2023, with the balance dependent on project construction and production milestones that the Gramalote Project reaches.
CORPORATE UPDATE
Corporate restructuring
AngloGold Ashanti completed its corporate restructuring in September 2023, with a primary listing of its shares on the New York Stock Exchange (NYSE) and a corporate domicile in the UK. The corporate restructuring was first announced on 12 May 2023 and approved by the shareholders of AngloGold Ashanti Limited on 18 August 2023. The ordinary shares of AngloGold Ashanti plc commenced trading on the NYSE on 25 September 2023, maintaining the ticker symbol AU. AngloGold Ashanti remains committed to the Johannesburg Stock Exchange (JSE) and A2X Markets (A2X) in South Africa and the Ghana Stock Exchange (GhSE) in Ghana, on each of which it has maintained secondary listings.
As disclosed in its initial announcement, the corporate restructuring attracted various tax payments in South Africa and Australia. These tax payments have now been determined at about $286m in total. The tax amounts, which were calculated based on market prices on 22 September 2023 at a closing share price of $18.15, shares in issue of 419,685,792 and a closing market capitalisation on the NYSE of
$7.6bn, are listed below. Final US Dollar amounts of tax payments in South Africa and Australia may vary based on foreign exchange rates at the time payment is made in South African Rands and Australian Dollars.
In So
Contacts
Investor Relations contacts
Yatish Chowthee Telephone: +27 11 637 6273
Mobile: +27 78 364 2080
E-mail: yrchowthee@anglogoldashanti.com
Andrea Maxey
Telephone: +61 08 9425 4603
Mobile: +61 400 072 199
E-mail: amaxey@anglogoldashanti.com
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