AngloGold Ashanti Limited Reports 12% Increase in Gold Production in HY2023

Published On: August 28, 2023Company: AngloGold Ashanti Limited (
What were the major highlights in the performance of AngloGold Ashanti Limited in HY2023?
AngloGold Ashanti Limited reported an improved second quarter performance with a 12% increase in production, with gold production rising from 584,000oz to 652,000oz. The company is improving costs, safety, cash conversion, and project delivery to bridge the gap with international competitors, and has planned significant ventures and partnerships, including additional resources in Nevada and a proposed joint venture for Africa's largest gold mine. Despite some financial setbacks, the company's balance sheet remains robust with liquidity of around $2.3bn.

Summary of Key Points

  • AngloGold Ashanti Limited reported an improved second quarter performance for HY2023, with an increase in production by 12%.
  • Second quarter gold production increased from 584,000oz to 652,000oz thanks to higher tonnes processed and better recovered grades, while cash costs improved by 2% and all-in sustaining costs (AISC) by 4% compared to the previous quarter.
  • The Company is enhancing costs, safety, cash conversion, and project delivery in a bid to bridge the value gap with international competitors. Noteworthy ventures include a 5Moz Mineral Resource addition in Nevada and proposed partnerships with Gold Fields for Africa’s largest gold mine and the New York Stock Exchange for primary listing of shares.
  • The first half of HY2023 saw rising production in Kibali, Geita, AGA Mineração, Serra Grande, and Tropicana. A 2% total cash costs per ounce reduction helped the Company overcome challenges, however, production could have been higher without the tank failure at Siguiri.
  • Despite a year-on-year rise in total cash costs per ounce of 8% in Q2, it was better compared to the 16% increase in Q1.
  • Production gain from the Obuasi gold mine remained steady, supported by ongoing reinvestment in the portfolio, with a year-on-year jump of 29%. The mine is expected to perform better in the second half after overcoming infrastructure bottlenecks.
  • Despite improved production in Q2 compared to Q1, the Brazil portfolio continued to make losses. Total cash costs per ounce increased 11% from H1 2022 to H1 2023, partly due to costs related to the Brazil portfolio and persistent inflationary pressures. Basic earnings were significantly lower at $40m compared to $298m in the same period last year.
  • The Company’s Full Asset Potential Review Program, targeting asset optimization and inflation counteraction, has seen increased underground tonnes mined at Sunrise Dam and Geita, with improved recoveries at the former.
  • A decarbonization strategy is underway at Tropicana, with a 62MW wind and solar facility to be constructed by Pacific Energy, expected to reduce natural gas consumption by half.
  • The balance sheet remained in good shape with around $2.3bn of liquidity, inclusive of $0.7bn cash and equivalents at the end of June 2023.

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About AngloGold Ashanti Limited (

AngloGold Ashanti Limited is a global mining company with extensive interests in the Americas, Continental Africa, South Africa and Australasia. It boasts a portfolio of 17 operations and 3 projects in 10 countries, including long-life, relatively low-cost operating assets with differing ore body types located in key gold-producing regions. The company was formed in 2004 through the merger of AngloGold and the Ashanti Goldfields Corporation. There are seven mines in the Continental Africa region, of which 6 are operational. In Ghana, the company has two mines; Iduapriem and Obuasi. AngloGold Ashanti Limited is the third-largest gold mining company in the world, measured by production. In addition to its mining operations, it has established several exploration programmes in regions around the world. AngloGold Ashanti Limited is listed on the Ghana Stock Exchange

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