Wrap Text
Q3 2024 Earnings Release for the three months and nine months ended 30 September 2024
(Incorporated in England and Wales)
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
("AngloGold Ashanti", "AGA" or the "Company")
Q3 2024 EARNINGS RELEASE
for the three months and nine months ended 30 September 2024
AngloGold Ashanti Posts 339% year-on-year Adjusted EBITDA* increase, 17-fold rise in free cash flow*; YTD total cash costs per ounce*
rise only 2%; FY 2024 guidance reaffirmed on all metrics
London, Denver, Johannesburg, 7 November 2024 - AngloGold Ashanti plc ("AngloGold Ashanti", "AGA" or the "Company") reported its strongest
gold production quarter of 2024 from managed operations(1) in the three months ended 30 September 2024, driving significant year-on-year gains in
earnings and free cash flow*. The Company reaffirmed full-year guidance for gold production, costs and capital expenditure.
"Tight control of costs and active management of our working capital means that the higher gold price has flowed through to our bottom line," CEO
Alberto Calderon said. "We're looking for additional improvements to production and margins, to ensure we deliver an even stronger fourth quarter
and continue to capitalise on this healthy gold price environment."
AngloGold Ashanti saw resilient performances from several key operations. The Australian portfolio recovered well from rains and flooding in the first
quarter, while the operational turnaround of its Brazilian operations continued to gain momentum with the resumption of processing of gold
concentrate at the Queiroz plant during September.
Solid cost control and active management of working capital helped ensure that higher revenues were reflected in stronger earnings and cash flows.
Headline earnings(3) of $236m, or 56 US cents per share, in the third quarter of 2024, compared to a headline loss(3) of $194m, or 46 US cents per
share, in the third quarter of 2023. Adjusted earnings before interest, tax, depreciation and amortisation* ("Adjusted EBITDA") rose 339% to $746m in
the third quarter of 2024 from $170m in the same period last year. Free cash flow* rose sharply to $347m during the third quarter of 2024, from $20m
in the same period a year earlier. The average gold price received per ounce* for the group(1)(2) rose 28% to $2,449/oz during the third quarter of 2024
from $1,908/oz in the third quarter of last year.
A solid overall performance from AngloGold Ashanti's managed operations helped the Company deliver a strong cash cost performance despite
persistent high inflation across several of its operating jurisdictions. Total cash costs per ounce* for the group(1)(2) rose 8% year-on-year to $1,172/oz
versus $1,089/oz in the third quarter of last year. Total cash costs per ounce* for managed operations(1)(2) rose by only 3% year-on-year to $1,186/oz
versus $1,152/oz in the third quarter of last year, demonstrating disciplined and consistent focus on costs despite inflationary pressure across its
operating jurisdictions and the impact of higher royalties paid, driven by the increase in the gold price. All-in sustaining costs per ounce* ("AISC") for
the group(1)(2) rose 10% to $1,616/oz during the third quarter of 2024 versus $1,469/oz in the third quarter of last year due to increased total cash
costs* and rehabilitation costs.
Gold production for the group(1)(2) was 657,000oz for the third quarter of 2024 versus 676,000oz in the same period of 2023, due to lower production
from the Kibali joint venture, where lower grades resulted in production of 71,000oz compared with 99,000oz in the third quarter of 2023. Gold
production for managed operations(1)(2) rose 2% year-on-year to 586,000oz, from 577,000oz in the third quarter of 2023. Gold production was stronger
at Obuasi (15%), Siguiri (9%), Tropicana (14%), Cerro Vanguardia (11%) and Sunrise Dam (14%).
At Obuasi, third-quarter gold production(1) increased 15% year-on-year as total grades and underground tonnages rose, despite a continued impact
on production of reduced mining flexibility in Block 8 and difficult ground conditions in higher-grade stopes. Notwithstanding these near-term
challenges, total cash costs per ounce*(1) improved 20% year-on-year to $1,153/oz and AISC per ounce*(1) at $2,063/oz was 17% lower over that
period.
Centamin Acquisition to Improve the Portfolio Mix
On 28 October 2024, the shareholders of Centamin plc ("Centamin") approved the proposed acquisition of Centamin by AngloGold Ashanti. The
proposed acquisition, announced on 10 September 2024, will bring to AngloGold Ashanti's portfolio an established Tier One asset with the Sukari
mine in Egypt, which produced(1) 450,000oz of gold in 2023 at an AISC per ounce*(1) of $1,196/oz, well below AngloGold Ashanti's current average
AISC*. The addition of Sukari ensures a higher proportion of AngloGold Ashanti's gold production will be derived from Tier One assets, and will
provide flexibility for the Company to consider disposal options of its higher-cost Tier Two mines.
The proposed acquisition is expected to be accretive on a per share basis to both free cash flow* and net asset value and is a compelling strategic fit,
closely aligned with AngloGold Ashanti's core mining and exploration competencies. Synergies are expected to be captured by streamlining
Centamin's corporate costs, which were $33m in 2023; in the area of procurement, by leveraging the relative size and scale of AngloGold Ashanti's
portfolio; and by utilising AngloGold Ashanti's Full Asset Potential business optimisation process. Subject to the satisfaction or waiver of the remaining
closing conditions, the proposed transaction is expected to be completed in the second half of November 2024.
Nine-Month Performance
Adjusted EBITDA* for the first nine months of 2024 more than doubled to $1.863bn, from $846m in the first nine months of 2023. Free cash flow* for
the first nine months of 2024 was $553m, compared to an outflow of $184m in the same period of the previous year.
For the first nine months of 2024 gold production for the group(1)(2) was little changed at 1.911Moz, versus 1.907Moz in the same period a year earlier,
with total cash costs per ounce* for the group(1)(2) increasing 2% year-on-year to $1,163/oz from $1,140/oz in the same period last year. This
compared to a realised inflation rate for the Company of about 6% during the first nine months of 2024, which represents consumer price index (CPI)
changes in the jurisdictions in which the Company operates. AISC per ounce* for the group(1)(2) rose 5% year-on-year in the first nine months of 2024
to $1,598/oz compared with $1,525/oz in the same period in 2023. Total capital expenditure for managed operations(1)(2) and non-managed joint
ventures(1) over the same period rose 10% year-on-year.
Total cash costs per ounce* for managed operations(1)(2) increased 0.5% year-on-year from $1,189/oz in the first nine months of 2023 to $1,195/oz in
the first nine months of 2024. Total cash costs per ounce* for non-managed joint ventures(1) increased 13% year-on-year from $817/oz in the first nine
months of 2023 to $924/oz in the first nine months of 2024. AISC per ounce* for managed operations(1)(2) increased 3% year-on-year from $1,609/oz
in the first nine months of 2023 to $1,660/oz in the first nine months of 2024. AISC per ounce* for non-managed joint ventures(1) increased 17% year-
on-year from $967/oz in the first nine months of 2023 to $1,133/oz in the first nine months of 2024.
Q3 2024 - KEY OPERATIONAL AND FINANCIAL FEATURES
• Q3 2024 is strongest gold production quarter in 2024 for managed operations(1)(2) at 586,000oz vs 577,000oz in Q3
2023
• Q3 2024 Gold production for the group(1)(2) of 657,000oz vs 676,000oz in Q3 2023
• Improved Q3 2024 gold production(1)(2) y-o-y compared to Q3 2023 at Obuasi (15%), Siguiri (9%), Tropicana (14%),
Cerro Vanguardia (11%) and Sunrise Dam (14%)
• AngloGold Ashanti Mineração Q3 2024 total cash costs per ounce*(1)(2) -16% compared to Q3 2023; Queiroz plant
resumes processing gold concentrate
• Free cash flow* rises 17-fold to $347m in Q3 2024 compared to $20m in Q3 2023
• Adjusted EBITDA* +339% to $746m in Q3 2024 vs $170m in Q3 2023; Adjusted EBITDA* margin 52%
• Financial performance driven by solid operational results and the higher average gold price received*
• Total cash costs* - Group(1)(2): $1,172/oz in Q3 2024 vs $1,089/oz in Q3 2023
• Total cash costs* - Managed operations(1)(2): $1,186/oz in Q3 2024 vs $1,152/oz in Q3 2023
• Total cash costs* - Non-managed joint ventures(1): $1,053/oz in Q3 2024 from $721/oz in Q3 2023
• AISC* - Group(1)(2): $1,616/oz in Q3 2024 from $1,469/oz in Q3 2023, mainly on increased total cash costs
• AISC* - Managed operations(1)(2): $1,665/oz in Q3 2024 from $1,579/oz in Q3 2023
• AISC* - Non-managed joint ventures(1): $1,241/oz in Q3 2024 from $820/oz in Q3 2023
• Basic earnings of $223m in Q3 2024 from basic loss of $224m in Q3 2023
• Headline earnings(3) of $236m in Q3 2024 from a headline loss(3) of $194m in Q3 2023
• Obuasi's Q3 2024 gold production(1) +15% y-o-y to 53,000oz; total cash costs per ounce*(1) -20%; AISC per ounce*(1)
-17% y-o-y
• Obuasi completed the trial of its new mining method Under Hand, Drift and Fill (UHDF) to extract the most value from
high-grade ore source and will implement a hybrid mining approach incorporating traditional Sub-Level Open Stoping
(SLOS) and UHDF from 2025. This hybrid approach is proven to be more cost-efficient, with a reduction in total cash
cost per ounce* of approximately 9%
(1)
The term "managed operations" refers to subsidiaries managed by the AngloGold Ashanti and included in its consolidated reporting, while the term "non-managed joint
ventures" refers to equity-accounted joint ventures that are reported based on the AngloGold Ashanti's share of attributable earnings an are not managed by AngloGold
Ashanti. Managed operations are reported on a consolidated basis. Non-managed joint ventures are reported on an attributable basis.
(2)
All financial periods within the financial year ended 31 December 2023 have been adjusted to exclude the Córrego do Sítio ("CdS") operation that was placed on care
and maintenance in August 2023.
(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 South African Institute of Chartered Accountants (SAICA), at the request of the Johannesburg Stock
Exchange Limited (JSE). These measures are required to be disclosed by the JSE Listings Requirements and therefore do not constitute Non-GAAP financial measures
for purposes of the rules and regulations of the US Securities and Exchange Commission ("SEC") applicable to the use and disclosure of Non-GAAP financial measures.
• Refer to "Non-Gaap disclosure" in the Full Announcement for definitions and reconciliations.
GROUP - Key statistics
Quarter Quarter Nine months Nine months
ended ended ended ended
Sep Sep Sep Sep
2024 2023 2024 2023
Operating review
Gold
Produced - Group (1) (2) (3) - oz (000) 657 676 1,911 1,907
Produced - Managed operations (1) (2) (3) - oz (000) 586 577 1,682 1,657
Produced - Non-managed joint ventures (2) - oz (000) 71
229 99 229 250
Sold - Group (1) (2) (3) - oz (000) 667 670 1,954 1,913
Sold - Managed operations(1) (2) (3) - oz (000) 590 573 1,724 1,662
Sold - Non-managed joint ventures (2) - oz (000) 77 97 230 251
Financial review
Gold income - $m 1,466 1,112 3,957 3,257
Cost of sales - $m 921 863 2,683 2,612
Total operating costs - $m 720 714 2,096 2,130
Gross profit - $m 541 286 1,290 721
Average gold price received per ounce* - Managed operations (1) (2) - $/oz 2,442 1,906 2,268 1,913
Average gold price received per ounce* - Non-managed joint ventures (2) - $/oz 2,503 1,924 2,313 1,935
Cost of sales - Managed operations - $m 921 863 2,683 2,612
Cost of sales - Non-managed joint ventures - $m 104 97 278 279
All-in sustaining costs per ounce* - Managed operations (1) (2) (3) - $/oz 1,665 1,579 1,660 1,609
All-in sustaining costs per ounce* - Non-managed joint ventures (2) - $/oz 1,241 820 1,133 967
All-in sustaining costs per ounce* - Group (1) (2) (3) - $/oz 1,616 1,469 1,598 1,525
All-in costs per ounce* - Managed operations (1) (2) (3) - $/oz 1,925 1,741 1,916 1,837
All-in costs per ounce* - Non-managed joint ventures (2) - $/oz 1,458 954 1,339 1,092
All-in costs per ounce* - Group (1) (2) (3) - $/oz 1,871 1,627 1,848 1,740
Total cash costs per ounce* - Managed operations (1) (2) (3) - $/oz 1,186 1,152 1,195 1,189
Total cash costs per ounce* - Non-managed joint ventures (2) - $/oz 1,053 721 924 817
Total cash costs per ounce* - Group (1) (2) (3) - $/oz 1,172 1,089 1,163 1,140
Profit (loss) before taxation - $m 394 (157) 974 (81)
Adjusted EBITDA* - $m 746 170 1,863 846
Total borrowings - $m 2,303 2,169 2,303 2,169
Adjusted net debt* - $m 906 1,253 906 1,253
Profit (loss) attributable to equity shareholders - $m 223 (224) 534 (263)
- US cents/share 53 (53) 127 (62)
(4)
Headline earnings (loss) - $m 236 (194) 549 (133)
- US cents/share 56 (46) 130 (32)
Net cash inflow from operating activities - $m 606 274 1,278 567
Free cash flow* - $m 347 20 553 (184)
Capital expenditure - Managed operations - $m 267 255 757 708
Capital expenditure - Non-managed joint ventures - $m 28 18 89 61
(1)
All financial periods within the financial year ended 31 December 2023 have been adjusted to exclude the Córrego do Sítio ("CdS") operation that was placed on care
and maintenance in August 2023. All gold production, gold sold, average gold price received per ounce*, all-in sustaining costs per ounce*, all-in costs per ounce* and
total cash costs per ounce* metrics in this document have been adjusted to exclude the CdS operation, unless otherwise stated.
(2)
The term "managed operations" refers to subsidiaries managed by AngloGold Ashanti and included in its consolidated reporting, while the term "non-managed joint
ventures" refers to equity-accounted joint ventures that are reported based on AngloGold Ashanti's share of attributable earnings and are not managed by AngloGold
Ashanti. Managed operations are reported on a consolidated basis. Non-managed joint ventures are reported on an attributable basis.
(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 South African Institute of Chartered Accountants (SAICA), at the request of the Johannesburg
Stock Exchange Limited (JSE). These measures are required to be disclosed by the JSE Listings Requirements and therefore do not constitute Non-GAAP financial
measures for purposes of the rules and regulations of the US Securities and Exchange Commission ("SEC") applicable to the use and disclosure of Non-GAAP financial
measures.
* Refer to "Non-GAAP disclosure" in the Full Announcement for definitions and reconciliations.
$ represents US Dollar, unless otherwise stated.
Rounding of figures may result in computational discrepancies.
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 nine months ended 30 September 2024. Investors and/or shareholders should base any
investment decisions on consideration of the Full Announcement and are therefore directed to the Full Announcement available for viewing
via the JSE SENS link, provided below, and available on the Company's website at www.anglogoldashanti.com. The Full Announcement
may be requested by email to CompanySecretary@Anglogoldashanti.com or by contacting Yatish Chowthee on +27 11 637 6273.
The JSE link is as follows:
https://senspdf.jse.co.za/documents/2024/jse/isse/ange/ERSEP24.pdf
Shareholders are further advised that AngloGold Ashanti has today furnished both its Q3 2024 Earnings Release and the Q3 2024 Earnings
Release Investor Presentation on a Form 6-K with the U.S. Securities and Exchange Commission ("SEC"). The forms are available online
on the Company's website at www.anglogoldashanti.com and also on the SEC's website at www.sec.gov.
Johannesburg, South Africa
7 November 2024
JSE Sponsor: The Standard Bank of South Africa Limited
CONTACTS
Media
Andrea Maxey: +61 08 9425 4603 / +61 400 072 199 amaxey@anglogoldashanti.com
General inquiries media@anglogoldashanti.com
Investors
Yatish Chowthee: +27 11 637 6273 / +27 78 364 2080 yrchowthee@anglogoldashanti.com
Andrea Maxey: +61 08 9425 4603 / +61 400 072 199 amaxey@anglogoldashanti.com
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 AngloGold Ashanti believes that the expectations reflected in such forward-looking statements and forecasts are reasonable, no assurance can be given that such
expectations will prove to have been correct. Accordingly, results, performance, actions or achievements could differ materially from those set out in the forward-looking statements as a
result of, among other factors, changes in economic, social, political and market conditions, including related to inflation or international conflicts, the success of business and operating
initiatives, changes in the regulatory environment and other government actions, including environmental approvals, fluctuations in gold prices and exchange rates, the outcome of pending
or future litigation proceedings, any supply chain disruptions, any public health crises, pandemics or epidemics (including the COVID-19 pandemic), the failure to maintain effective internal
control over financial reporting or effective disclosure controls and procedures, the inability to remediate one or more material weaknesses, or the discovery of additional material
weaknesses, in the Company's internal control over financial reporting, and other business and operational risks and challenges and other factors, including mining accidents. For a
discussion of such risk factors, refer to AngloGold Ashanti's annual report on Form 20-F for the year ended 31 December 2023 filed with the United States Securities and Exchange
Commission (SEC). These factors are not necessarily all of the important factors that could cause AngloGold Ashanti's actual results, performance, actions or achievements to differ
materially from those expressed in any forward-looking statements. Other unknown or unpredictable factors could also have material adverse effects on AngloGold Ashanti's future results,
performance, actions or achievements. Consequently, readers are cautioned not to place undue reliance on forward-looking statements. AngloGold Ashanti undertakes no obligation to
update publicly or release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events,
except to the extent required by applicable law. All subsequent written or oral forward-looking statements attributable to AngloGold Ashanti or any person acting on its behalf are qualified
by the cautionary statements herein.
Non-GAAP financial measures
This communication may contain certain "Non-GAAP" financial measures. AngloGold Ashanti utilises certain Non-GAAP performance measures and ratios in managing its business. Non-
GAAP financial measures should be viewed in addition to, and not as an alternative for, the reported operating results or cash flow from operations or any other measures of performance
prepared in accordance with IFRS. In addition, the presentation of these measures may not be comparable to similarly titled measures other companies may use.
Website: www.anglogoldashanti.com
September 2024 Published 7 November 2024
Date: 07-11-2024 01:29:00
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