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(Kitco News) - AngloGold Ashanti (NYSE: AU), one of the world’s largest gold producers, announced Friday that its gold production in H1 2023 amounted to 1.236Moz, marginally higher compared to 1.233Moz in H1 2022.
In a press release, the company said that the increase in gold production was mainly driven by higher overall recovered grade for the group, partially offset by lower tonnes processed.
The company added that total cash costs per ounce increased to $1,189/oz in H1 2023 from $1,068/oz in H1 2022, mainly due to anticipated cost increases as a result of inflationary pressures, higher waste stripping costs at Tropicana, costs related to Brazil and the Siguiri CIL tank failure.
Importantly, AngloGold Ashanti reported basic earnings of $40m, or 10 US cents per share, in H1 2023, down 87% compared to basic earnings of $298m, or 71 US cents per share, in the same period a year earlier.
The company explained that basic earnings in the first half of this year were impacted by losses of $141m mainly related to impairments and derecognitions in the Brazil portfolio.
The company also reported headline earnings of $140m, or 33 US cents per share, in H1 2023, down 53% compared to $300m, or 71 US cents per share, in the same period a year earlier.
AngloGold Ashanti said it is taking steps to “narrow” a value gap with international peers by improving relative costs and the life of its key mines, all while enhancing safety, cash conversion and the delivery of projects.
The company noted that in the past year, it added an additional 5Moz of mineral resource in Nevada, proposed a joint venture with Gold Fields in Ghana to create Africa’s largest gold mine, and proposed a change in the primary listing for its shares to the New York Stock Exchange, the largest global market for investment in gold equities.
“We’re seeing momentum continue to build at our key assets after a steady start to the year and a much improved second quarter,” CEO Alberto Calderon said. “We’re expecting strong operating improvements in the second half.”
The company pointed out it remains on track to achieve full year guidance. Production is expected to be second half weighted, with unit costs expected to decline into the second half of 2023.
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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