AngloGold Ashanti improves performance in H2, 2023
AngloGold Ashanti has reported a significantly improved second half results for the year 2023 compared to the first half of the year.
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This includes improved production, total operating cost and free cash flow during the second half of the year.
The company more than offset the free cash outflow of $205m in the first half of 2023, generating $314m in free cash inflow in the second half of 2023.
According to the company’s annual report, free cash flow generation in 2023 amounted to $109m, compared to free cash inflow of $657m in 2022.
Gold production for the group increased by 15% in the second half of 2023 to 1.388Moz from 1.205Moz in the first half of 2023, bringing total gold production for the group to 2.593Moz for the year ended December 31, 2023, ending the year under review above the guidance range.
Operations
The operational result in the second half of 2023 was underpinned by strong performances from Iduapriem, Kibali, Cuiabá, Tropicana and Geita compared to the first half of 2023.
Gold production for the group decreased by 3% in 2023 to 2.593Moz from 2.672Moz in 2022, mainly due to one-off challenges at Siguiri, which experienced a CIL tank failure in its processing plant in May 2023 and Obuasi, where poor ground conditions in high grade areas during the second half of 2023 had an adverse impact on gold production and total operating costs.
Processing at Siguiri returned to full capacity at the beginning of November 2023. Obuasi started to make a good recovery, with a 33% increase in gold production from 46,000oz in the third quarter of 2023 to 61,000oz in the fourth quarter of 2023.
Cash costs
Total cash costs per ounce for subsidiaries improved by 7% in the second half of 2023 to $1,112/oz, compared to $1,202/oz in the first half of 2023.
Total cash costs per ounce for joint ventures improved by 16% in the second half of 2023 to $741/oz, compared to $880/oz in the first half of the period in review.
Total cash costs per ounce for the group improved 9% in the second half of 2023 to $1,060/oz, compared with $1,162/oz in the first half of 2023.
Total cash costs per ounce for subsidiaries increased 11% in 2023 to $1,154/oz, compared to $1,040/oz the previous year.
Total cash costs per ounce for joint ventures increased 11% in 2023 to $802/oz, compared to $725/oz in 2022.
Total cash costs for the group increased 11% in 2023 to $1,108/oz, compared with $1,000/oz in 2022.
This increase was mainly due to lower production and higher total operating costs as a result of higher labour and contractors’ costs, commodity prices, logistics costs, consumable stores, services, other charges and royalty payments.