AngloGold Ashanti HY1 2024 Earnings Release for the Three Months and Six Months Ended 30 June 2024
In the first half of 2024, gold production(1)(2) rose 2% year-on-year to 1.25Moz from 1.23Moz in the same period a year earlier, with total cash costs per ounce*(1)(2) for the group decreasing 1% year-on-year to
Total cash costs per ounce* for subsidiaries(1)(2) improved 1% year-on-year from
Improved operational performance and strong cost control helped
“These results show the hard work that’s been done to improve the fundamentals of our business, to drive productivity benefits and manage costs to ensure we capture the benefit of stronger gold prices,” CEO
Brazil Drove LATAM Turnaround
Gold production(1)(2) in the first half of 2024 from the Company’s
“We took decisive steps last year to restructure our business in
Proactive Cost Management Offsetting Inflation
The 1% year-on-year improvement in total cash costs per ounce*(1)(2) for the group during the first half of 2024 as compared to the first half of 2023 was mainly characterised by improved operational performance and enhanced cost efficiency linked to the Full Asset Potential initiatives. The 2% year-on-year increase in AISC per ounce*(1)(2) for the group during the first half of 2024 as compared to the first half of 2023 was mainly due to a planned increase in sustaining capital expenditure*.
Strong Second Quarter Bolsters First Half Performance
Gold production(1) in the second quarter of 2024 rose 12% quarter-on-quarter to 663,000oz from 591,000oz in the first quarter of 2024. The overall second quarter improvement in gold production(1) quarter-on-quarter came as the Australian assets recovered from flooding toward the end of the first quarter of 2024. Tropicana’s second quarter gold production improved quarter-on-quarter by 38%, and
Strong Financial Performance and Dividend Increase Driven by Improved Fundamentals and the Higher Price of Gold
Basic earnings in the first half of 2024 were higher than in the first half of 2023 mainly due to more gold sold, a higher average gold price received per ounce*, lower operating costs, lower impairments and derecognitions of assets, higher equity earnings from joint ventures, higher finance income and lower foreign exchange losses, partly offset by higher losses on non-hedge derivatives, higher corporate and operating expenses, and higher taxation. Basic earnings were
The Company generated
The balance sheet remained robust notwithstanding continued investment in the existing production base and the project pipeline, as well as the payout of the final 2023 dividend in
Following the improved first half performance to production, cash costs and free cash flow, coupled with the robust balance sheet and expectations for continued improvements in the second half of the year, an interim dividend of
Geita Fatality
Tragically, a fatal light vehicle accident was recorded during
H1 2024 - KEY OPERATIONAL AND FINANCIAL FEATURES
- Strong H1 performance helped by solid Q2 result; Q2 gold production(1) up 12% q-o-q to 663,000oz in Q2 2024 from 591,000oz in Q1 2024
-
Solid H1 gold production contributions from AngloGold Ashanti Mineração,
Serra Grande , Iduapriem, Geita and Kibali drive gold production(1)(2) of 1.254Moz in H1 2024 vs 1.232Moz in H1 2023 - Financial performance driven by both strong operational results and the higher average gold price received per ounce*
-
Total cash costs per ounce*(1)(2) for the group improved 1% y-o-y to
$1,158 /oz in H1 2024 from$1,169 /oz in H1 2023, mainly from improvements in production and recovered grade; this compares to a 6% realised inflation rate across the portfolio -
Total cash costs per ounce*(1)(2) (subsidiaries) improved 1% y-o-y to
$1,200 /oz in H1 2024 from$1,209 /oz in H1 2023 -
Total cash costs per ounce*(1) (joint ventures) improved 2% y-o-y to
$866 /oz in H1 2024 from$880 /oz in H1 2023 -
Adjusted EBITDA* increased 65% y-o-y from
$676m in H1 2023 to$1,118m in H1 2024; Adjusted EBITDA* margin of 46% -
AISC per ounce*(1)(2) for the group increased 2% y-o-y to
$1,589 /oz in H1 2024 from$1,555 /oz in H1 2023, mainly due to planned higher sustaining capital expenditure* -
AISC per ounce*(1)(2) (subsidiaries) increased 2% y-o-y to
$1,658 /oz in H1 2024 from$1,624 /oz in H1 2023 -
AISC per ounce*(1) (joint ventures) increased 2% y-o-y to
$1,078 /oz in H1 2024 from$1,060 /oz in H1 2023 -
Basic earnings of
$311m in H1 2024 from a basic loss of$39m in H1 2023; Headline earnings(3) of$313m in H1 2024 from$61m in H1 2023 -
Free cash flow* was an inflow of
$206m in H1 2024 compared to an outflow of$205m in H1 2023 - Obuasi’s H1 production 107,000oz with Q2 ore tonnes up 6% versus Q1; flexibility challenging in current mining Block 8 means 2024 production forecast at Obuasi around lower end of guidance.
-
Brazil posts strong turnaround y-o-y – AngloGold Ashanti Mineração gold production(2) +16%, total cash costs per ounce*(2) -19%;Serra Grande gold production +14%, total cash costs per ounce* -20% -
Recovery at Tropicana and
Sunrise Dam on track following flooding events in Q1 2024 - Siguiri gold production(1) up sharply as metallurgical recoveries improved to 87% in Q2 2024 from 71% in Q1 2024
- Reaffirming 2024 Guidance on all metrics (Gold production, AISC per ounce*, Total cash costs per ounce* and Capital expenditure)
(1) Subsidiaries are reported on a consolidated basis. Joint ventures are reported on an attributable basis.
(2) All financial periods within the financial year ended
(3) The financial measures “headline earnings (loss)” and “headline earnings (loss) per share” are not calculated in accordance with IFRS® Accounting Standards, but in accordance with the Headline Earnings Circular 1/2023, issued by the
* Refer to “Non-GAAP disclosure” for definitions and reconciliations in the Company’s HY1 2024 Earnings Release, which has been submitted to the
GROUP - Key statistics |
|
|
|
|
|
|
|
|
Quarter |
Quarter |
Six months |
Six months |
|
|
|
ended |
ended |
ended |
ended |
|
|
|
Jun |
Jun |
Jun |
Jun |
|
|
|
2024 |
2023 |
2024 |
2023 |
|
|
|
US Dollar / Imperial |
|
|||
Operating review |
|
|
|
|
|
|
Gold |
|
|
|
|
|
|
Produced - Group (Attributable) |
- oz (000) |
648 |
634 |
1,229 |
1,205 |
|
Produced - Group (1) (2) (3) |
- oz (000) |
663 |
645 |
1,254 |
1,232 |
|
Produced - Subsidiaries (1) (2) (3) |
- oz (000) |
581 |
557 |
1,096 |
1,081 |
|
Produced - Joint ventures (2) |
- oz (000) |
82 |
88 |
158 |
151 |
|
|
|
|
|
|
|
|
Sold - Group (1) (2) (3) |
- oz (000) |
662 |
656 |
1,287 |
1,242 |
|
Sold - Subsidiaries (1)(2) (3) |
- oz (000) |
581 |
569 |
1,133 |
1,088 |
|
Sold - Joint ventures (2) |
- oz (000) |
81 |
87 |
154 |
154 |
|
|
|
|
|
|
|
|
Financial review |
|
|
|
|
|
|
Gold income |
- $m |
1,353 |
1,137 |
2,491 |
2,144 |
|
Cost of sales |
- $m |
893 |
910 |
1,762 |
1,749 |
|
Total operating costs |
- $m |
708 |
735 |
1,376 |
1,416 |
|
Gross profit |
- $m |
467 |
253 |
749 |
435 |
|
|
|
|
|
|
|
|
Average gold price received per ounce* - Subsidiaries (1) (2) |
- $/oz |
2,292 |
1,938 |
2,178 |
1,917 |
|
Average gold price received per ounce* - Joint ventures (2) |
- $/oz |
2,336 |
1,972 |
2,219 |
1,941 |
|
Cost of sales - Subsidiaries |
- $m |
893 |
910 |
1,762 |
1,749 |
|
Cost of sales - Joint ventures |
- $m |
94 |
97 |
174 |
181 |
|
All-in sustaining costs per ounce* - Subsidiaries (1) (2) (3) |
- $/oz |
1,626 |
1,611 |
1,658 |
1,624 |
|
All-in sustaining costs per ounce* - Joint ventures (2) |
- $/oz |
1,085 |
982 |
1,078 |
1,060 |
|
All-in sustaining costs per ounce* - Group (1) (2) (3) |
- $/oz |
1,560 |
1,527 |
1,589 |
1,555 |
|
All-in costs per ounce* - Subsidiaries (1) (2) (3) |
- $/oz |
1,832 |
1,909 |
1,913 |
1,888 |
|
All-in costs per ounce* - Joint ventures (2) |
- $/oz |
1,324 |
1,093 |
1,280 |
1,180 |
|
All-in costs per ounce* - Group (1) (2) (3) |
- $/oz |
1,770 |
1,802 |
1,836 |
1,802 |
|
Total cash costs per ounce* - Subsidiaries (1) (2) (3) |
- $/oz |
1,171 |
1,214 |
1,200 |
1,209 |
|
Total cash costs per ounce* - Joint ventures (2) |
- $/oz |
899 |
779 |
866 |
880 |
|
Total cash costs per ounce* - Group (1) (2) (3) |
- $/oz |
1,137 |
1,155 |
1,158 |
1,169 |
|
|
|
|
|
|
|
|
Profit (loss) before taxation |
- $m |
413 |
(16) |
580 |
76 |
|
Adjusted EBITDA* |
- $m |
684 |
356 |
1,118 |
676 |
|
Total borrowings |
- $m |
2,299 |
2,091 |
2,299 |
2,091 |
|
Adjusted net debt* |
- $m |
1,148 |
1,194 |
1,148 |
1,194 |
|
|
|
|
|
|
|
|
Profit (loss) attributable to equity shareholders |
- $m |
253 |
(83) |
311 |
(39) |
|
|
- US cents/share |
60 |
(20) |
74 |
(9) |
|
Headline earnings(loss) (4) |
- $m |
255 |
16 |
313 |
61 |
|
|
- US cents/share |
60 |
4 |
74 |
14 |
|
Net cash inflow from operating activities |
- $m |
420 |
199 |
672 |
293 |
|
Free cash flow* |
- $m |
183 |
(44) |
206 |
(205) |
|
Capital expenditure - Subsidiaries |
- $m |
250 |
226 |
490 |
453 |
|
Capital expenditure - Joint ventures |
- $m |
36 |
24 |
61 |
44 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) All financial periods within the financial year ended |
||||||
(2) All gold production and gold sold metrics in this document are stated on a consolidated basis for subsidiaries and on an attributable basis for joint ventures, unless otherwise stated. |
||||||
(3) Includes gold concentrate from the Cuiabá mine sold to third parties. |
||||||
(4) The financial measures “headline earnings (loss)” and “headline earnings (loss) per share” are not calculated in accordance with IFRS® Accounting Standards, but in accordance with the Headline Earnings Circular 1/2023, issued by the |
||||||
* Refer to “Non-GAAP disclosure” for definitions and reconciliations. |
||||||
$ represents US Dollar, unless otherwise stated. |
||||||
Rounding of figures may result in computational discrepancies. |
Dividends
The board of directors of
In respect of the interim dividend, the timelines, including dates for currency conversions, set out below will apply.
To holders of ordinary shares on the |
|
|
2024 |
Ex-dividend on NYSE |
Friday, 30 August |
Record date |
Friday, 30 August |
Payment date |
Friday, 13 September |
Additional information for South African resident shareholders of
Shareholders registered on the South African section of the register are advised that the distribution of 22 US cents per ordinary share will be converted to South African rands at the applicable exchange rate.
In compliance with the requirements of Strate and the
To holders of ordinary shares on the |
|
|
2024 |
Declaration date |
Tuesday, 6 August |
Currency conversion rate for South African rands announcement date |
Friday, 23 August |
Last date to trade ordinary shares cum dividend |
Tuesday, 27 August |
Ordinary shares trade ex-dividend |
Wednesday, 28 August |
Record date |
Friday, 30 August |
Payment date |
Friday, 13 September |
Dividends in respect of dematerialised shareholdings will be credited to shareholders’ accounts with the relevant CSDP (as defined below) or broker.
To comply with further requirements of Strate, share certificates may not be dematerialised or rematerialised between Wednesday,
Details of the exchange rates applicable to the dividend and a summary of the tax considerations applicable to South African shareholders is expected to be published on Friday,
To Beneficial Owners on the |
||
2024 |
||
Currency conversion date |
Friday, 23 August |
|
Last date to trade and to register shares cum dividend |
Tuesday, 27 August |
|
Shares trade ex-dividend |
Wednesday, 28 August |
|
Record date |
Friday, 30 August |
|
Approximate payment date of dividend |
Friday, 13 September |
|
|
||
To Beneficial Owners holding Ghanaian Depositary Shares (GhDSs)
and acting by
|
||
100 GhDSs represent one ordinary share |
||
2024 |
||
Currency conversion date |
Friday, 23 August |
|
Last date to trade and to register GhDSs cum dividend |
Tuesday, 27 August |
|
GhDSs trade ex-dividend |
Wednesday, 28 August |
|
Record date |
Friday, 30 August |
|
Approximate payment date of dividend |
Friday, 13 September |
|
|
||
Beneficial owners on the
Entitlement to interim dividends
A “Shareholder of Record” is a person appearing on the register of members of the Company in respect of ordinary shares at the close of business on the relevant record date. A “Beneficial Owner” is a person who holds ordinary shares of the Company through a bank, broker, central securities depository participant (“CSDP”), Shareholder of Record or other agent (sometimes referred to as holding shares “in street name”).
This short form announcement (the “JSE Announcement”) is the responsibility of the board of directors of the Company, who certify that, to the best of their knowledge and belief, there are no facts that have been omitted which would make the information false, misleading or inaccurate, and that all reasonable enquiries to ascertain such facts have been made.
The details contained in this JSE Announcement are only a summary of the information contained in the Full Announcement which contains an Earnings Release for the three months and six months ended
The JSE link is as follows:
https://senspdf.jse.co.za/documents/2024/jse/isse/ange/ERJUN24.pdf
Shareholders are further advised that
(“AngloGold Ashanti”, “AGA” or the “Company”)
(Incorporated in
Registration No. 14654651
LEI No. 2138005YDSA7A82RNU96
ISIN: GB00BRXH2664
CUSIP: G0378L100
NYSE Share code: AU
JSE Share code: ANG
A2X Share code: ANG
GhSE (Shares): AGA
GhSE (GhDS): AAD
JSE Sponsor:
Certain statements contained in this document, other than statements of historical fact, including, without limitation, those concerning the economic outlook for the gold mining industry, expectations regarding gold prices, production, total cash costs, all-in sustaining costs, all-in costs, cost savings and other operating results, return on equity, productivity improvements, growth prospects and outlook of AngloGold Ashanti’s operations, individually or in the aggregate, including the achievement of project milestones, commencement and completion of commercial operations of certain of AngloGold Ashanti’s exploration and production projects and the completion of acquisitions, dispositions or joint venture transactions, AngloGold Ashanti’s liquidity and capital resources and capital expenditures, the consequences of the COVID-19 pandemic and the outcome and consequences of any potential or pending litigation or regulatory proceedings or environmental, health and safety issues, are forward-looking statements regarding AngloGold Ashanti’s financial reports, operations, economic performance and financial condition. These forward-looking statements or forecasts are not based on historical facts, but rather reflect our current beliefs and expectations concerning future events and generally may be identified by the use of forward-looking words, phrases and expressions such as “believe”, “expect”, “aim”, “anticipate”, “intend”, “foresee”, “forecast”, “predict”, “project”, “estimate”, “likely”, “may”, “might”, “could”, “should”, “would”, “seek”, “plan”, “scheduled”, “possible”, “continue”, “potential”, “outlook”, “target” or other similar words, phrases, and expressions; provided that the absence thereof does not mean that a statement is not forward-looking. Similarly, statements that describe our objectives, plans or goals are or may be forward-looking statements. These forward-looking statements or forecasts involve known and unknown risks, uncertainties and other factors that may cause AngloGold Ashanti’s actual results, performance, actions or achievements to differ materially from the anticipated results, performance, actions or achievements expressed or implied in these forward-looking statements. Although
Non-GAAP financial measures
This communication may contain certain “Non-GAAP” financial measures.
Website: www.anglogoldashanti.com
View source version on businesswire.com: https://www.businesswire.com/news/home/20240805438311/en/
Media
amaxey@anglogoldashanti.com
General inquiries
media@anglogoldashanti.com
Investors
Yatish Chowthee: +27 11 637 6273 / +27 78 364 2080
yrchowthee@anglogoldashanti.com
amaxey@anglogoldashanti.com
Source: