AngloGold Ashanti Cuts Adjusted Net Debt by 41%, Advances Reinvestment Projects

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  1. 83.9k
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    (JOHANNESBURG) – NEWS RELEASE – AngloGold Ashanti delivered first-half
    headline earnings of $363m amid a challenging first half of the year, with performance
    affected by the ongoing COVID-19 pandemic, increased costs, lower realised grades
    across certain operations and the voluntary suspension of underground mining activities
    at the Obuasi Mine following a fatal accident on 18 May 2021.
    Headline earnings of $363m, or 87 US cents per share, in the first six months of 2021,
    compared to $404m, or 97 US cents per share, in the first half of 2020. Adjusted net debt
    declined by 41% year-on-year to $850m at 30 June 2021, from $1.431bn at 30 June 2020.
    The Company has declared a dividend of 87 ZAR cents per share (approximately 6 US
    cents per share) for the six months ended 30 June 2021.
    Production for the first six months of 2021 was 1.200Moz at a total cash cost of $1,003/oz,
    compared to 1.323Moz at $770/oz from continuing operations for the first six months
    of 2020. All-in sustaining costs (AISC) were $1,333/oz for the first six months of 2021,
    compared to $1,002/oz from continuing operations for the corresponding period last year,
    mainly reflecting higher cash costs, higher sustaining capital expenditure in line with the
    tailings compliance programme and the planned reinvestment objectives in the portfolio,
    COVID-19 impacts, stockpile movements and lower gold sold. Production for the half year
    was impacted by an estimated 42,000oz due to COVID-19.
    “AngloGold Ashanti remains focused on its strategy to create long-term value, whilst
    maintaining a strong balance sheet and mitigating any financial or operating risks to the
    business.,” Interim Chief Executive Officer, Christine Ramon, said. “Our reinvestment
    projects remain on track to improve operating flexibility and access to higher grades. We
    are also pursuing operating and capital efficiencies over the remainder of the year.”
    Authorised for release to the ASX by Lucy Mokoka – Group Company Secretary.
    AngloGold Ashanti’s strategy of improving operating flexibility through investment in Ore
    Reserve development and Ore Reserve expansion at sites with high geological potential
    remains a key priority and is reflected by the 33% year-on-year increase in total capital
    expenditure to $461m (including equity accounted joint ventures) in the first half of 2021,
    compared to $346m from continuing operations in the first half of 2020.
    This year and next remain transitional ones for the Company, with the higher volumes of
    waste stripping and underground development accompanied by lower grades and the
    movements of stockpiles. The Company expects the mining of lower grades and stockpile
    utilisation to be transitory in nature as the reinvestment programme provides improved
    flexibility and access to higher-grades, and as vaccination drives progress across our
    jurisdictions most affected by COVID-19. Notwithstanding significant pressure on costs
    related to the tailing storage facilities (TSF) transition in Brazil, this investment is also
    transitory given the upcoming legal deadline.
    Mining activities at Obuasi will remain suspended pending the conclusion of a third-party
    review of the mining and ground management plans.
    On 1 September 2021, Mr. Alberto Calderon will assume the role of Chief Executive
    Officer of the Company and Ms. Christine Ramon will return to her role as the Company’s
    Chief Financial Officer.
    FINANCIAL PERFORMANCE
    For the first half of 2021, the Company recorded a free cash outflow of $25m, compared
    to an inflow of $177m (which included cash flow from the discontinued South African
    assets of $35m) in the same period last year. Free cash flow was impacted by lower gold
    sold, higher costs, and higher taxes paid.
    At the end of June 2021, the Company’s attributable share of the outstanding cash
    balances awaiting repatriation from the Democratic Republic of Congo (DRC) was $485m.
    Free cash flow was further impacted by continued lock-ups of value added tax (VAT) at
    Geita and Kibali and export duties at Cerro Vanguardia. In Tanzania, the Company
    calculates that net overdue recoverable VAT input credit refunds owed to it by the
    Tanzanian government increased by $5m during the first half of 2021 to $144m at 30
    June 2021 from $139m at 31 December 2020 despite off-setting $22m against corporate
    tax payments in June 2021. In the DRC, the Company calculates that its attributable share
    of the net recoverable VAT balance owed to it by the DRC government increased by $5m
    during the first half of 2021 to $74m at 30 June 2021 from $69m at 31 December 2020.
    Adjusted earnings before interest, tax, depreciation, and amortisation (Adjusted EBITDA)
    decreased by 15% to $876m in the first half of 2021, from $1,035m in the first half of
    2020. Basic earnings (profit attributable to equity shareholders) for the six-month period
    ended 30 June 2021 were $362m, or 86 US cents per share, compared to $382m, or 91
    US cents per share, in the first half of 2020.
    SECOND-QUARTER PERFORMANCE
    Production for the second quarter of 2021 was 613,000oz at a total cash cost of
    $1,006/oz, compared to 693,000oz at a total cash cost of $767/oz from continuing
    operations for the second quarter of 2020. AISC was $1,380/oz for the second quarter of
    2021, compared to $985/oz from continuing operations for the second quarter of 2020.The
    Company generated $67m in free cash flow during the second quarter of 2021 compared
    to an outflow of $92m in the first quarter of 2021.
    BALANCE SHEET
    The balance sheet remains in a solid position, with debt falling and ample liquidity of
    approximately $2.5bn. The ratio of Adjusted net debt to Adjusted EBITDA improved to
    0.37 times at 30 June 2021 from 0.73 times at 30 June 2020. The Company remains
    committed to maintaining a flexible balance sheet with an Adjusted net debt to Adjusted
    EBITDA target ratio not exceeding 1.0 times through the cycle.
    SAFETY PERFORMANCE
    It is with great sadness that we report two fatalities in the first half of 2021. In February 2021, an employee at the Serra Grande mine in Brazil was fatally injured in a fall-ofground related incident during blasting preparation activities and in May 2021 an employee at the Obuasi mine in Ghana was fatally injured in an underground sill pillar failure incident. AngloGold Ashanti remains strongly committed to improving safety across its global portfolio and is focused on the execution of its safe production strategy.
    REVISED GUIDANCE (*)
    Group annual guidance for 2021 has been revised as follows: 2.45Moz to 2.60Moz
    of production at a total cash cost of $890/oz to $950/oz, AISC of $1,240/oz to
    $1,340/oz and capital expenditure of $1,030m to $1,190m. Production has been revised
    to mainly remove the contribution of Obuasi for the second half of 2021.
    Economic assumptions for 2021 are as follows: $/A$0.76, BRL5.29/$, AP96.00/$,
    ZAR14.55/$; and Brent $71/bbl.

    courtesy of Bell Direct

    DYOR

    ===============================================================================

    i hold AGG ( 'free-carried' )

  2. 83.9k
    Posts

    AngloGold Plunges as Key African Mine May Stay Closed All Year

    https://au.finance.yahoo.com/news/anglogold-plunges-key-african-mine-080211390.html

    DYOR

    decisions decisions

    is this an opportunity to top up , or just ride it out

    i hold AGG ( 'free-carried' )

  3. 83.9k
    Posts

    Johannesburg, 5 August 2022

    - AngloGold Ashanti Limited (“AngloGold
    Ashanti”, “AGA” or the “Company”) reported a solid performance for the
    first half of 2022, with production 3% higher year-on-year, an increase in
    total cash costs limited to 6%, and a strong improvement in cash flow. The
    Company declared an interim dividend of 29 US cents per share, or
    $121m, and remains on track to achieve full-year guidance.
    Production for the first six months of 2022 was 1.233Moz, with second quarter output up 10% versus the first quarter of 2022. Production growth
    was underpinned by higher grades and tonnes processed, leading to
    marked improvements from the Australian and Latin American operations,
    which offset lower production from Kibali and Geita. Obuasi continued its
    ramp-up through the period and is on track to achieve its annual production
    guidance of 240,000oz to 260,000oz for 2022.
    Total cash costs for the first six months of 2022 were $1,068/oz, up 6%
    from the first half of 2021 driven largely by accelerating inflation across
    several input categories as well as larger royalty payments due to the
    higher gold price received. These cost pressures were partially offset by
    operating improvements and a 10% increase in underground grades.
    “The fundamentals of our Company continue to improve, despite the
    challenging cost environment,” said Chief Executive Officer Alberto
    Calderon. “We have the right structure and the right people in place to
    further optimise from our portfolio and close the gap with our peers.”
    Adjusted EBITDA for the first half of 2022 was $864m, compared with
    $876m for the first half of 2021. Headline earnings for the first half of 2022
    were $300m, or 71 US cents per share, compared with $363m, or 87 US
    cents per share, in the first half of 2021.
    Free cash flow increased to $471m for the first half of 2022 from an outflow
    of $25m in the same period last year and the balance sheet remains
    flexible during an ongoing period of reinvestment in improving its portfolio.
    The increase in free cash flow was supported by $549m received from the
    Kibali gold mine in the Democratic Republic of the Congo.
    The $365m cash acquisition of Corvus Gold Inc. (“Corvus”) was completed
    in January 2022, creating a strong foothold in the prospective Beatty district
    in Southern Nevada which the Company plans to bring into production in
    about three years. The district is expected to grow over several years to
    more than 300,000oz per year production after mining commences and be
    active for two decades or more, with all-in costs well below AngloGold
    Ashanti’s current average.
    The balance sheet remained in a solid position after funding the Corvus
    acquisition and paying the 2021 year-end dividend, with approximately
    $2.6bn in liquidity, including cash of $1.3bn at the end of June 2022. The
    $1.4bn multi-currency revolving credit facility was refinanced during the
    second quarter of 2022, extending the maturity to 2027.
    The Company continues to progress its Full Asset Potential (“FAP”) review
    programme, with the initial assessment stage of the process completed at
    the Sunrise Dam mine in Australia and the Siguiri mine in Guinea. Both
    sites are now progressing to the implementation phase, during which the
    optimisation opportunities that have been identified will be implemented.
    The Cuiabá mine in Brazil is currently in the process of completing its FAP
    assessment. Tropicana, Geita and Serra Grande are the next sites
    expected to undergo the assessment process in the second half of 2022.
    The FAP review programme is aimed at achieving a step-change
    improvement in operating performance and competitiveness.
    FIRST HALF YEAR 2022 HIGHLIGHTS
    Strong safety result: Total Recordable Injury Frequency Rate
    improved 39% as compared to H1 2021 to 1.33 injuries per
    million hours worked
    Free cash flow of $471m; underpinned by cash distributions
    received from Kibali
    Interim dividend of ZAR493 cents per share (equivalent 29 US
    cents per share) declared
    Obuasi on track to achieve its annual guidance of 240,000oz –
    260,000oz for 2022
    Operational fundamentals improving – sequential quarterly
    production improvements; on track to meet full-year guidance
    Full Asset Potential review programme progressing, Sunrise
    Dam and Siguiri in implementation phase; new sites to
    commence assessment process
    Reinvestment programme ongoing to grow Ore Reserve and
    production, at lower costs, over the medium- to longer term
    SALIENT FEATURES
    • On track to meet guidance ranges for 2022 with total cash costs trending
    towards the top end of guidance
    • First half production increased 3% year-on-year to 1.233Moz
    • Strong production contributions from Cerro Vanguardia (+17%), Siguiri
    (+21%), Sunrise Dam (+15%), Iduapriem (+14%) and Tropicana (+14%)
    • Underground grade +10% year-on-year following reinvestment initiatives
    • Total cash costs increased 6% year-on-year to $1,068/oz in H1 2022
    • All-in sustaining costs (“AISC”) increased 6% year-on-year to $1,418/oz in H1
    2022 mainly due to planned higher sustaining capital expenditure and
    increased total cash costs
    • Basic earnings of $298m in H1 2022, from $362m in H1 2021; Headline
    earnings of $300m in H1 2022, from $363m in H1 2021
    • Net cash inflow from operating activities of $992m in H1 2022, from $467m in
    H1 2021 mainly due to higher Kibali dividend and lower taxes
    • Adjusted EBITDA decreased 1% year-on-year to $864m in H1 2022; Adjusted
    EBITDA margin of 41%
    • Adjusted net debt down 13% year-on-year to $740m at 30 June 2022
    • Free cash inflow of $471m in H1 2022 versus an outflow of $25m in H1 2021
    Authorised for release to the ASX by Leeanne Goliath – Group Company Secretary

    courtesy of Bell Direct

    DYOR

    ===============================================================================

    i hold AGG ( 'free-carried' )

    i know , i know , for nearly a decade i avoided Africa , but now hold AGG and ZIM

    just be ready for bumpy rides

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