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AngloGold Ashanti's gold production up 11% in 2022; profit down 52% on non-cash impairments

Kitco News

(Kitco News) - AngloGold Ashanti (NYSE: AU), one of the largest gold producers globally, today reported gold production of 2.742Moz in the full year 2022, which is an 11% improvement versus gold production of 2.472Moz in 2021, ending 2022 at the top half of guidance.

The company said positive operational results were underpinned by solid performances across most of the portfolio, with the Obuasi gold mine in Ghana meeting targeted production of 250,000oz as it continues on the ramp-up path to its full production run-rate in excess of 400,000oz, which is expected by the end of 2024.

The company added it also met guidance for total capital expenditure and all-in sustaining costs, while total cash costs ended less than 1% above the guidance range amid inflation at multi-decade highs.

AngloGold Ashanti also reported headline earnings for the period of $544 million, a decrease of 11% from the comparative period, while profit attributable to equity shareholders (basic earnings) was $297 million, down 52% from 2021 ($622 million).

The company explained that the decrease in basic earnings in 2022 was mainly due to non-cash impairments recognized at its Brazilian operations.

The company said the exploration success of the previous three years continued, with the addition of 12.2Moz of mineral reserve, pre-depletion, during 2022, adding that “this is the sixth consecutive year AngloGold Ashanti has achieved a positive net outcome.”

Importantly, AngloGold Ashanti announced that final dividend of ZAR322 cents per share (equivalent 18 US cents per share) declared, with full year dividend of ZAR815 cents per share (equivalent 47 US cents per share).

“It’s been a year of significant progress, with the right Operating Model and the right people in the right place. We delivered on our production and cost commitments to the market and have begun to regain cost competitiveness versus our peers,” said CEO Alberto Calderon. “We’re seeing good progress in a number of places which confirm we’re on the right track.”

AngloGold Ashanti, with its head office in South Africa, is an independent, global gold mining company with a diverse portfolio of operations, projects and exploration activities across nine countries on four continents. The company is one of the largest gold producers globally and the largest on the African continent.

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