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(Kitco News) - AngloGold Ashanti (NYSE: AU), one of the world’s largest gold producers, reported on Friday that its gold production in the March quarter of 2023 was 584,000 ounces, slightly lower than the 588,000 ounces produced in the March quarter of 2022.
The company said that gold production decreases were recorded at Kibali, Siguiri, Tropicana, AngloGold Ashanti Mineração and Serra Grande. These decreases in gold production were partly offset by higher production from Iduapriem, Obuasi, Geita and Cerro Vanguardia.
Revenue from product sales decreased by $24 million, or 2%, from $1,052 million in the March quarter of 2022 to $1,028 million in the March quarter of 2023. The decrease in revenue from product sales was mainly due to a decrease in gold income and by-product revenue.
Cost of sales increased by $82 million, or 11%, from $757 million in the March quarter of 2022 to $839 million in the March quarter of 2023, primarily due to an increase in cash operating costs (which include salaries and wages, stores, explosives, reagents, logistics, fuel, power, water and contractors’ costs), royalties and rehabilitation and other non-cash costs as well as an increase in amortization of tangible assets.
Cash generated from operations decreased by $166 million, or 64%, from an inflow of $258 million in the March quarter of 2022 to an inflow of $92 million in the March quarter of 2023. The decrease was mainly due to lower revenue from product sales, higher cost of sales (mainly due to higher cash operating costs), higher exploration and evaluation costs and net working capital cash outflows.
The company also reported profit attributable to equity shareholders of $66 million in the March quarter of 2023, which is lower than profit attributable to equity shareholders of $177 million in the March quarter of 2022, primarily due to lower gold sales and higher costs.
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.
