AngloGold Ashanti Delivers Steady Start to 2024; Gold Production¹ Up +2% y-o-y; Gold Production Guidance Reconfirmed and Obuasi on Track to Achieve FY 2024 Forecast Gold Production
“This is a good start to the year, with another strong safety result and a good overall performance from the portfolio,” said Chief Executive Officer
The Company’s Total Recordable Injury Frequency Rate (“TRIFR”) was 1.08 injuries per million hours worked during the first quarter of 2024, compared to the most recent average (2022) of 2.66 for members of the
Gold production1 was 2% higher year-on-year at 581,000oz for the first quarter of 2024, compared to 572,000oz for the first quarter of 2023, driven mainly by higher recovered grades, and partly offset by lower tonnes processed. Strong improvements in gold production versus the first quarter of last year were recorded at Cuiabá (AGA Mineração) (+55%) and
This increase in gold production was partly offset by lower gold production at Siguiri (-35%), where carbonaceous ore in the Bidini pit resulted in poor recoveries, and at Tropicana (-17%), where severe flooding, caused by a tropical cyclone, inundated underground and open pit mining areas as well as access roads to the remote site. Both mines have since recovered to normalised gold production levels.
At Obuasi, gold production was 54,000oz, in line with the mine plan, as mining occurred in lower-grade areas. Obuasi’s underground ore tonnes treated averaged 91,000t/pm for the first three months of 2024. Underground tonnes treated and grade are expected to increase in the second half of 2024, supported by additional development. The mine remains on track to produce an anticipated 275,000oz – 320,000oz of gold in 2024.
As previously reported, gold production at Tropicana was impacted by heavy rains and flooding during the month of March. The area in which the Tropicana gold mine is located received 312mm of rain in a 72-hour period from 9 March, almost 40% higher than its average annual rainfall. The subsequent flooding interrupted power supply to the processing plant and required mining operations to be suspended. Since the flooding, remedial work to recommence operations was successfully completed and mining and processing has since restarted. Whilst gold production was impacted in the first quarter of 2024, and consequently for the first half of 2024, the Company expects to recover a significant portion of these production losses in the second half of 2024.
The Company provided gold production guidance for 2024 in February, which remains unchanged. Gold production is again expected to be second half weighted, with fourth quarter gold production expected to be the strongest quarter this year.
1 Excluding the Córrego do Sítio (“CdS”) operation which was placed on care and maintenance in
|
|
Quarter |
Quarter |
Quarter |
Year |
|
|
ended |
ended |
ended |
ended |
|
|
Mar |
Dec |
Mar |
Dec |
|
|
2024 |
2023 |
2023 |
2023 |
Gold produced (1) |
|
|
|
|
|
– Subsidiaries (2)(3) |
oz (000) |
505 |
632 |
508 |
2,250 |
– Joint ventures |
oz (000) |
76 |
93 |
64 |
343 |
– Group (2) (3) |
oz (000) |
581 |
725 |
572 |
2,593 |
Tonnes treated |
|
|
|
|
|
Open-pit |
|
|
|
|
|
– Subsidiaries |
tonnes (000) |
5,608 |
6,741 |
6,065 |
25,094 |
– Joint ventures |
tonnes (000) |
509 |
478 |
538 |
2,065 |
– Group |
tonnes (000) |
6,117 |
7,219 |
6,603 |
27,159 |
Underground |
|
|
|
|
|
– Subsidiaries |
tonnes (000) |
2,216 |
2,596 |
2,104 |
9,511 |
– Joint ventures |
tonnes (000) |
416 |
433 |
342 |
1,635 |
– Group |
tonnes (000) |
2,632 |
3,029 |
2,446 |
11,146 |
Other |
|
|
|
|
|
– Subsidiaries |
tonnes (000) |
726 |
859 |
635 |
3,007 |
– Joint ventures |
tonnes (000) |
— |
— |
— |
— |
– Group |
tonnes (000) |
726 |
859 |
635 |
3,007 |
Total |
|
|
|
|
|
– Subsidiaries |
tonnes (000) |
8,550 |
10,196 |
8,804 |
37,612 |
– Joint ventures |
tonnes (000) |
925 |
911 |
880 |
3,700 |
– Group |
tonnes (000) |
9,475 |
11,107 |
9,684 |
41,312 |
Recovered grade |
|
|
|
|
|
Open-pit |
|
|
|
|
|
– Subsidiaries |
g/tonne |
1.03 |
1.30 |
1.18 |
1.23 |
– Joint ventures |
g/tonne |
0.97 |
1.72 |
1.32 |
1.58 |
– Group |
g/tonne |
1.03 |
1.33 |
1.19 |
1.25 |
Underground |
|
|
|
|
|
– Subsidiaries |
g/tonne |
3.72 |
3.51 |
3.63 |
3.48 |
– Joint ventures |
g/tonne |
4.48 |
4.76 |
3.71 |
4.54 |
– Group |
g/tonne |
3.84 |
3.69 |
3.64 |
3.63 |
Other |
|
|
|
|
|
– Subsidiaries |
g/tonne |
2.32 |
2.05 |
1.58 |
2.05 |
– Joint ventures |
g/tonne |
— |
— |
— |
— |
– Group |
g/tonne |
2.32 |
2.05 |
1.58 |
2.05 |
Total |
|
|
|
|
|
– Subsidiaries |
g/tonne |
1.84 |
1.93 |
1.80 |
1.86 |
– Joint ventures |
g/tonne |
2.55 |
3.17 |
2.25 |
2.89 |
– Group |
g/tonne |
1.91 |
2.03 |
1.84 |
1.95 |
(1) |
|
On an attributable basis. |
(2) |
|
Adjusted to exclude the Córrego do Sítio (CdS) operation that was placed on care and maintenance in |
(3) |
|
Includes gold concentrate from the Cuiabá mine sold to third parties. |
Rounding of figures may result in computational discrepancies |
OPERATING HIGHLIGHTS
In the
In
At Obuasi, gold production was 54,000oz for the quarter ended
In
In
In the DRC, at Kibali, gold production (on an attributable basis) was 76,000oz for the quarter ended
In the
At Serra Grande, gold production was 21,000oz for the quarter ended
In
In
At
At Tropicana, gold production (on an attributable basis) was 53,000oz for the quarter ended
GUIDANCE
The Company provided gold production guidance for 2024 in February, which remains unchanged. Gold production is again expected to be second half weighted, with fourth quarter gold production expected to be the strongest quarter this year.
|
2024 |
|
|
Gold Production (000oz) |
|
Gold Production |
– Subsidiaries |
2,270 - 2,430 |
– Joint ventures |
320 - 360 |
|
– Group |
2,590 - 2,790 |
Estimates assume neither operational or labour interruptions (including any further delays in the ramp-up of the Obuasi redevelopment project), or power disruptions, nor further changes to asset portfolio and/or operating mines. Other unknown or unpredictable factors, or factors outside the Company’s control, could also have material adverse effects on AngloGold Ashanti’s future gold production and no assurance can be given that any expectations expressed by
SAFETY UPDATE
The Company recorded a fatality-free first quarter of 2024 at the mines it operates. The TRIFR, the broadest measure of workplace safety, was 1.08 injuries per million hours worked for the first quarter of 2024 and 0.85 injuries per million hours worked for the fourth quarter of 2023. By comparison, the most recent ICMM average (2022) amounts to 2.66 injuries per million hours worked.
UPDATE ON CAPITAL PROJECTS
Obuasi
UHDF trial update
The underhand drift and fill (“UHDF”) mining method trial in Block 8 Lower progressed well during the first quarter of 2024. The UHDF trial aims to test the mining method to ensure it can be used safely and effectively to mine high-grade ore in areas with poor ground conditions associated with weak graphitic shears and increasing mining depth.
Milestones achieved in the first quarter of 2024:
- Developed alongside paste-filled 3,300 level drive to expose and test paste strength.
- Confirmed in-situ paste strength in this parallel drive, and installed ground support.
- Trialed slag-based binders to increase backfill strength and reduce curing times.
-
Paste backfill commenced on
24 April 2024 and completed successfully in single pour. - Paste curing successfully achieved required strength within 14 days.
Next steps:
-
Development beneath paste-fill scheduled to commence on
9 May 2024 . - Annualised production rate of 360,000oz is expected in the third quarter of 2024.
Phase 3
Phase 3 of the Obuasi redevelopment project relates primarily to capital expenditure required to refurbish and return to service the KMS shaft and associated infrastructure. This infrastructure project, which provides direct access to the high-grade Block 11 and other underground mining areas and augments current underground materials handling capacity, is expected to be completed by the end of 2024 after being extended during 2023 when mud, encountered on 5,000 and 5,100 levels, had to be cleared.
Phase 3 achieved the following milestones in the first quarter of 2024:
- Commissioned the first 100 l/sec pumping system of the three pumping systems planned.
- Completed reaming of the 945m vent raise marking a significant achievement for a raise bore.
- Completed the man winder upgrades to a modern thyristor controlled winder.
- Re-entered 50 level to complete the final works ahead of starting the installation of the lower shaft loading system.
The next key project milestones include:
- Completion of two new ore passes between upper mine and the rail transport level.
- Completion of new pump stations and pump columns allowing 300 l/sec shaft pumping.
- Installation and commissioning of the new vent shaft.
- Commissioning the rail system.
- Clearing mud on 5,100 level and shaft bottom.
Tropicana
The
Tropicana ESG renewables
The Tropicana renewable energy project is on track with the delivery and installation of the wind turbines and solar plant expected to commence in the second quarter of 2024. The renewable energy project is expected to be commissioned in the first quarter of 2025 and, upon completion, is expected to reduce greenhouse gas (“GHG”) emissions at Tropicana by 65,000 tonnes per annum on average over the 10-year life of the power purchase agreement.
AngloGold Ashanti’s board of directors approved the feasibility study for the NBP to proceed into detailed engineering. The NBP received spend approval from AngloGold Ashanti’s Management Investment Committee to pursue detailed engineering during 2024. Permitting processes are underway for the NBP. In early
Good progress was made during the first quarter of 2024, with the hiring of the owner’s engineering team largely completed along with the completion of the front-end engineering and design of the mill facility, and earthworks for the heavy mobile equipment assembly yard. The NBP remains on schedule, contingent on receipt of the requisite permits, to commence anticipated gold production in 2026.
Merlin
Successful completion of the concept study at the end of 2023 allowed the Merlin project to proceed to the next stage gate of the pre- feasibility study (“PFS”). The PFS programme is expected to be performed through the middle of 2025 with a focus on an extensive drilling programme and further optimisation of development options considered as part of the framing review in the first half of 2024.
Quebradona
Following the decision of Colombia’s national environmental agency (“ANLA”) in
CORPORATE UPDATE
Proposed Tarkwa / Iduapriem Joint Venture
In
Since the announcement,
On
Appointment of Group Company Secretary
The Company has appointed Ms.
Reporting Update
Operations at a glance |
||||||||||||||||||||||||
for the quarters ended |
||||||||||||||||||||||||
|
Gold production oz (000) |
Open-pit treated 000 tonnes |
Underground milled / treated 0 00 tonnes |
Other milled / treated 000 tonnes |
Open-pit recovered grade g /tonne |
Underground recovered grade g /tonne |
Other recovered grade g/tonne |
Total recovered grade g/tonne |
||||||||||||||||
Mar-24 |
Dec-23 |
Mar-23 |
Mar-24 |
Dec-23 |
Mar-23 |
Mar-24 |
Dec-23 |
Mar-23 |
Mar-24 |
Dec-23 |
Mar-23 |
Mar-24 |
Dec-23 |
Mar-23 |
Mar-24 |
Dec-23 |
Mar-23 |
Mar-24 |
Dec-23 |
Mar-23 |
Mar-24 |
Dec-23 |
Mar-23 |
|
|
76 |
93 |
64 |
509 |
478 |
538 |
416 |
433 |
342 |
— |
— |
— |
0.97 |
1.72 |
1.32 |
4.48 |
4.76 |
3.71 |
— |
— |
— |
2.55 |
3.17 |
2.25 |
Kibali - Attributable 45% (1) |
76 |
93 |
64 |
509 |
478 |
538 |
416 |
433 |
342 |
— |
— |
— |
0.97 |
1.72 |
1.32 |
4.48 |
4.76 |
3.71 |
— |
— |
— |
2.55 |
3.17 |
2.25 |
|
271 |
338 |
284 |
3,972 |
4,924 |
4,138 |
902 |
1,118 |
784 |
50 |
87 |
38 |
1.07 |
1.15 |
1.24 |
4.59 |
4.24 |
4.68 |
1.05 |
1.15 |
1.05 |
1.71 |
1.72 |
1.78 |
Iduapriem |
62 |
79 |
63 |
1,273 |
1,516 |
1,233 |
— |
— |
— |
— |
— |
— |
1.53 |
1.61 |
1.58 |
— |
— |
— |
— |
— |
— |
1.53 |
1.61 |
1.58 |
Obuasi |
54 |
61 |
60 |
— |
— |
— |
273 |
286 |
235 |
50 |
87 |
38 |
— |
— |
— |
5.91 |
6.30 |
7.74 |
1.05 |
1.15 |
1.05 |
5.15 |
5.10 |
6.81 |
Siguiri - Attributable 85% |
41 |
56 |
63 |
2,084 |
2,700 |
2,324 |
— |
— |
— |
— |
— |
— |
0.61 |
0.65 |
0.86 |
— |
— |
— |
— |
— |
— |
0.61 |
0.65 |
0.86 |
Geita |
114 |
142 |
98 |
615 |
708 |
581 |
629 |
832 |
549 |
— |
— |
— |
1.65 |
2.10 |
2.06 |
4.02 |
3.53 |
3.38 |
— |
— |
— |
2.85 |
2.87 |
2.70 |
|
109 |
158 |
125 |
1,449 |
1,616 |
1,716 |
892 |
1,002 |
890 |
— |
— |
— |
0.83 |
1.64 |
0.93 |
2.45 |
2.24 |
2.59 |
— |
— |
— |
1.45 |
1.87 |
1.50 |
|
56 |
62 |
61 |
325 |
377 |
349 |
648 |
631 |
603 |
— |
— |
— |
0.98 |
1.25 |
1.27 |
2.19 |
2.31 |
2.44 |
— |
— |
— |
1.78 |
1.91 |
2.01 |
Tropicana - Attributable 70% |
53 |
96 |
64 |
1,124 |
1,239 |
1,367 |
244 |
371 |
287 |
— |
— |
— |
0.79 |
1.76 |
0.84 |
3.14 |
2.13 |
2.91 |
— |
— |
— |
1.21 |
1.85 |
1.20 |
|
125 |
136 |
99 |
187 |
201 |
211 |
422 |
476 |
430 |
676 |
772 |
597 |
1.86 |
2.24 |
2.10 |
4.53 |
4.45 |
3.87 |
2.41 |
2.15 |
1.61 |
3.03 |
2.92 |
2.48 |
|
39 |
38 |
42 |
187 |
178 |
205 |
90 |
125 |
85 |
434 |
432 |
406 |
1.86 |
2.35 |
2.13 |
6.96 |
5.04 |
8.03 |
0.57 |
0.32 |
0.46 |
1.71 |
1.62 |
1.87 |
AngloGold Ashanti Mineração (2)(3) |
65 |
73 |
42 |
— |
— |
— |
117 |
84 |
109 |
242 |
340 |
191 |
— |
— |
— |
5.50 |
9.00 |
4.70 |
5.72 |
4.47 |
4.05 |
5.65 |
5.37 |
4.29 |
|
21 |
25 |
15 |
— |
23 |
6 |
215 |
267 |
236 |
— |
— |
— |
— |
1.39 |
1.07 |
2.98 |
2.74 |
1.99 |
— |
— |
— |
2.98 |
2.63 |
1.97 |
Subsidiaries (2) |
505 |
632 |
508 |
5,608 |
6,741 |
6,065 |
2,216 |
2,596 |
2,104 |
726 |
859 |
635 |
1.03 |
1.30 |
1.18 |
3.72 |
3.51 |
3.63 |
2.32 |
2.05 |
1.58 |
1.84 |
1.93 |
1.80 |
Joint Ventures |
76 |
93 |
64 |
509 |
478 |
538 |
416 |
433 |
342 |
— |
— |
— |
0.97 |
1.72 |
1.32 |
4.48 |
4.76 |
3.71 |
— |
— |
— |
2.55 |
3.17 |
2.25 |
Total including equity-accounted joint ventures (2) |
581 |
725 |
572 |
6,117 |
7,219 |
6,603 |
2,632 |
3,029 |
2,446 |
726 |
859 |
635 |
1.03 |
1.33 |
1.19 |
3.84 |
3.69 |
3.64 |
2.32 |
2.05 |
1.58 |
1.91 |
2.03 |
1.84 |
(1) |
|
Equity-accounted joint venture. |
(2) |
|
Adjusted to exclude the Córrego do Sítio (CdS) operation that was placed on care and maintenance in |
(3) |
|
Includes gold concentrate from the Cuiabá mine sold to third parties. Rounding of figures may result in computational discrepancies. |
Administration and corporate information
Incorporated in
Registration No. 14654651
LEI No. 2138005YDSA7A82RNU96
Share codes:
ISIN: GB00BRXH2664
CUSIP: G0378L100
NYSE: AU
JSE: ANG
A2X: ANG
GhSE (Shares): AGA
GhSE (GhDS): AAD
JSE Sponsor:
Auditors:
Offices
Registered and Corporate
4th Floor, Communications House
Staines-upon-Thames
Telephone: +44 (0) 203 968 3320
Fax: +44 (0) 203 968 3325
Level 10,
140 St George’s Terrace
(PO Box Z5046, Perth WA 6831)
Telephone: +61 8 9425 4602
Fax: +61 8 9425 4662
Gold House
(PO Box 2665)
Telephone: +233 303 773400
Fax: +233 303 778155
Directors
Executive
A Calderon▲ (Chief Executive Officer)
GA Doran▲ (Chief Financial Officer)
Non-Executive
MDC Ramos^ (Chairman)
KOF Busia△
AM Ferguson*
AH Garner#
R Gasant^
SP Lawson#
J Magie§
MC Richter#~
DL Sands#
JE Tilk§
* British § Canadian #American ▲Australian
~Panamanian ^South African △Ghanaian
Officers
C Stead
Company Secretary
Company secretarial e-mail
Companysecretary@anglogoldashanti.com
www.anglogoldashanti.com
Share Registrars
Suite 101
Telephone US: 866-644-4127
Telephone non-US: +1-781-575-2000
Shareholder Online Inquiries:
https://www-us.computershare.com/Investor/#Contact
Website: www.computershare.com/investor
Rosebank, 2196
(PO Box 61051, Marshalltown 2107)
Telephone: 0861 100 950 (in SA)
Fax: +27 11 688 5218
E-mail: queries@computershare.co.za
Website: www.computershare.com
4th Floor,
PMB CT 465, Cantonments
Telephone: +233 302 689313
Fax: +233 302 689315
Telephone: +233 302 235814/6
Fax: +233 302 229975
PUBLISHED BY ANGLOGOLD ASHANTI
Forward-looking statements
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.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240509438167/en/
Investor Relations contacts
Yatish Chowthee
Telephone: +27 11 637 6273
Mobile: +27 78 364 2080
E-mail: yrchowthee@anglogoldashanti.com
Telephone: +61 08 9425 4603
Mobile: +61 400 072 199
E-mail: amaxey@anglogoldashanti.com
Source: