Anglogold Ashanti Plc · NYSE:AU
Anglogold Ashanti — H1 2024 Earnings Presentation
24 slides from Anglogold Ashanti's earnings presentation, Aug 26, 2024
Slide 1: H1 2024 Results
H1 2024 Results TROPICANA, AUSTRALIA
Slide 2: Disclaimer
DISCLAIMER 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 cos
Slide 3: Continued Focus on Safety, the Highest Priority
CONTINUED FOCUS ON SAFETY, THE HIGHEST PRIORITY Total Recordable Injury Frequency Rate* injuries per million hours worked 5 -77% 4 IN MEMORIAM • Tragically, a contractor died in a light vehicle 2023 member accident at Geita in May companies’ avg. 2.59 3 • In-depth investigation concluded by CTO 2 •
Slide 4: H1 2024 Review
H1 2024 REVEW
Slide 5: H1 2024 Highlights – Improving Fundamentals Underpin Performance
H1 2024 HIGHLIGHTS – IMPROVING FUNDAMENTALS UNDERPIN PERFORMANCE STRONG PRODUCTION RESULT SOLID OPER ATIONAL DELIVERY PROACTIVE COST MANAGEMENT • Brazil region posts strong turnaround: • On track to meet annual guidance • On track to meet annual guidance Cash costs -18%; • Continue to outperform pee
Slide 6: Strong Recovery in Australia and Guinea in Q2 2024
STRONG RECOVERY IN AUSTR ALIA AND GUINEA IN Q2 2024 AUSTRALIAN OPERATIONS Strong recovery from flood helps offset EBITDA impact of interruption • Following flooding in Q1 2024 mining and processing activities were temporarily suspended and site access roads were inaccessible • Operations have resume
Slide 7: Strong Y-o-Y Turnaround Recorded in Brazil
STRONG Y-O -Y TURNAROUND RECORDED IN BRAZIL Processing and refining of gold concentrate New leadership appointments and significant FREE CASH FLOW expected to recommence at Queiroz before PRODUCTION +15% TOTAL CASH COSTS -19% restructuring during 2023 drives strong 171,000oz $980/oz increase from ye
Slide 8: Obuasi Performance Update
OBUASI PERFORMANCE UPDATE Underground Ore Tonnes (kt) H1 2024 REVIEW • Steady Q1 2024 and Q2 2024 production for 108,000oz total • Underground volumes increased to average 97kt in Q2 vs 91kt in Q1 2024 • Grade challenges related to stope availability 109 102 100 92 94 94 • Significantly stronger H2
Slide 9: KMS on Track for Completion End 2024 – Pathway to Full Ramp Up
KMS ON TR ACK FOR COMPLETION END 2024 – PATHWAY TO FULL R AMP UP Phase 3 – refurbish KMS Gain direct vertical access Doubles materials handling Increases flexibility, KMS – Completion expected December 2024 shaft and infrastructure to high-grade Block 11 capacity to 12,000tpd accelerates development
Slide 10: Full Asset Potential Continues to Yield Tangible Improvements
FULL ASSET POTENTIAL CONTINUES TO YIELD TANGIBLE IMPROVEMENTS SUNRISE DAM Total Underground Ore Tonnes (kt/month) Siguiri Recovery (%) 260 92 Weather 90 88 Full Potential target 86 Full Potential target 240 84 82 80 2024 Avg. 220 78 2023 Avg. 2024 Avg. 76 74 9% 72 200 2022 Avg. 70 68 66 180 64 62 60
Slide 11: Full Asset Potential Savings – 2022 to H1 2024
FULL ASSET POTENTIAL SAVINGS – 2022 TO H1 2024 Incremental EBITDA benefit from 2022 to H1 2024 ($m) Impacted by flooding 1 (8) ~$464m event H1 2024 50 incremental EBITDA benefit delivered by (120) 53 operational improvements Impacted by Brazil TSF across the portfolio suspension 69 Impacted by CIL t
Slide 12: Organic Growth Pipeline - Three World Class Projects
ORGANIC GROWTH PIPELINE - THREE WORLD CLASS PROJECTS OBUASI N E VA D A QUEBRADONA Ghana USA Colombia 7.11Moz Mineral Reserve 1.0Moz Mineral Reserve 2.60Moz Au/ 3,250 Mlb Cu Mineral Reserve 7.30Moz M&I Mineral Resource* 5.37Moz M&I Mineral Resource* 2.15Moz Au/ 2,902 Mlb Cu M&I Mineral Resource* 9.64
Slide 13: Merlin Drilling Continues to Define a High-Grade, World-Class Ore Body
MERLIN DRILLING CONTINUES TO DEFINE A HIGH-GR ADE, WORLD -CLASS ORE BODY Infill drilling -- to support further Mineral Resource definition and pre-feasibility studies -- confirms continuity of core mineralized zone, including: Significant intercepts in the heart of the ore body: 144.5m @ 10.53g/t Au
Slide 14: Financial Review
FINANCIAL REVIEW
Slide 15: Macroeconomic Factors and Industry Context
MACROECONOMIC FACTORS AND INDUSTRY CONTEXT Gold Price (18 months to June 2024) Country Inflation and Exchange (data is shown on last 12 months basis) 2,400 Country 2024 2023 Change 2,300 Local CPI(1) Local fx(2): US$ Local CPI(1) Local fx(2): US$ Local CPI Local fx: US$ 2,200 USA 3.0% 3.0% Gold hedg
Slide 16: H1 2024 Highlights – Improved Fundamentals Help Capture Gold Price Benefit
H1 2024 HIGHLIGHTS – IMPROVED FUNDAMENTALS HELP CAPTURE GOLD PRICE BENEFIT H1 2024 H1 2023 y-o-y Δ 2024 Guidance Production - Group (Moz) 1.254 1.232 +2% 2.650 – 2.850 Total cash costs - Group ($/oz) 1,158 1,169 -1% 1,075 – 1,175 AISC - Group ($/oz) 1,589 1,555 +2% 1,500 – 1,600 Total capex ($m) 551
Slide 17: Business Cost Performance
BUSINESS COST PERFORMANCE Total cash cost – H1 2024 vs H1 2023 ($/oz) +4% Non-controllable Normalise -4% 6 20 (47) 1,215 1,202 67 (22) 9 1,169 1,158 (44) HY Jun 23 Inflation Royalties Fuel FX Flex Cost CIL Plant Tropicana rainfall Normalised Volume, grade HY Jun 24 and cost AISC – H1 2024 vs H1 2023
Slide 18: Strong Free Cash Flow Result on Proactive Cost Control and Higher Gold Price
STRONG FREE CASH FLOW RESULT ON PROACTIVE COST CONTROL AND HIGHER GOLD PRICE Free cash flow – H1 2024 vs H1 2023 ($m) (40) 90 (37) (14) 206 26 (6) 45 29 318 (205) FCF PY Price Sales Volume Ops Cost Working capital Divs & loan repmt Taxes Capital Other investing Finance cost FCF YTD from JV’s 18
Slide 19: Balance Sheet – Strong Liquidity, Long-Dated Maturities, Low Leverage
BALANCE SHEET – STRONG LIQUIDITY, LONG-DATED MATURITIES, LOW (AND IMPROVING) LEVERAGE Liquidity – 30 June 2024 ($m) Adjusted Net Debt to Adjusted EBITDA ratio $983m Cash and Cash 3.00x Equivalents 2.00x c.$2.3bn* ZAR150m 1.00x $1,352m** RCFs 0.00x 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 20
Slide 20: Reaffirming 2024 Guidance
REAFFIRMING 2024 GUIDANCE GUIDANCE Production (000oz) Group 2,650 - 2,850 Subsidiaries 2,330 - 2,490 (Group) Joint ventures 320 - 360 Group All-in sustaining costs 1,500 - 1,600 Subsidiaries 1,575 - 1,675 Costs ($/oz)(1) Joint ventures 980 - 1,080 Group Total cash costs 1,075 - 1,175 Subsidiaries 1,
Slide 21: Looking Forward
LOOKING FORWARD
Slide 22: Full Asset Potential – Facilitating Sector-Leading Cost Performance
FULL ASSET POTENTIAL – FACILITATING SECTOR-LEADING COST PERFORMANCE Total cash cost indexed – real (Q2 2021 = 100) 120 Brazil TSF Full Asset Potential programme has driven strong cost performance, offsetting inflationary impacts suspension, Siguiri CIL tank collapse +16% 115 110 105 100 -4% Cash cos
Slide 23: Conclusion – Driving Fundamental Improvements to Capture Higher Gold Price Benefit
CONCLUSION – DRIVING FUNDAMENTAL IMPROVEMENTS TO CAPTURE HIGHER GOLD PRICE BENEFIT • Strong H1 performance in line with guidance, despite flooding in Australia and unanticipated recovery challenges in Siguiri • Cash cost reductions achieved despite continued inflation; cost performance continues to
Slide 24: Investor Relations Contacts
ANDREA MAXEY YATISH CHOWTHEE INVESTOR RELATIONS CONTACTS Telephone: +61 08 9435 4603 Telephone: +27 11 637 6273 GENERAL E-MAIL ENQUIRIES Mobile: +61 400 072 199 Mobile: +27 78 364 2080 Investors@anglogoldashanti.com amaxey@anglogoldashanti.com yrchowthee@anglogoldashanti.com