Anglogold Ashanti Plc · NYSE:AU
Anglogold Ashanti — FY2021 Earnings Presentation
27 slides from Anglogold Ashanti's earnings presentation, Feb 24, 2022
Slide 1: Year End 2021 Results
YEAR END 2021 RESULTS for the six months and the year ended 31 December 2021
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: Disclaimer: Mineral Resource and Ore Reserve
DISCLAIMER MINERAL RESOURCE AND ORE RESERVE The Mineral Resource and Ore Reserve for AngloGold Ashanti are reported in accordance with the minimum standards described by the South African Code for the Reporting of Exploration Results, Mineral Resources and Mineral Reserves (The SAMREC Code, 2016 edi
Slide 4: Overview & Strategy
01 Overview & The Company recorded an improved operational and Strategy financial performance in the second half of 2021 compared to the first half of 2021
Slide 5: Prioritising Health and Safety of Our People and Communities
PRIORITISING HEALTH AND SAFETY OF OUR PEOPLE AND COMMUNITIES Working towards zero harm, excellence in environmental stewardship and community development. SAFETY Safety is our first value. All-injury frequency rate per million hours worked 5 4 • All-injury frequency rate of 2.13 – below ICMM member
Slide 6: Responsible Environmental Stewardship
RESPONSIBLE ENVIRONMENTAL STEWARDSHIP 1. EMISSION REDUCTIONS ACHIEVED GHG emissions (kilotonnes) 2022 target met in 2018; developing updated targets 5,000 2. TCFD DISCLOSURE IN DEBUT CLIMATE REPORT 4,500 Disclosure in line with TCFD Recommendations completed in 2020 4,000 3,500 3. FOCUS ON RENEWABLE
Slide 7: 2021 Highlights – Creating the Foundation for Value Delivery
2021 HIGHLIGHTS – CREATING THE FOUNDATION FOR VALUE DELIVERY Improving • Improving safety - injury rates below ICMM member average and focus on zero harm Operating • Revised production and capital guidance achieved Discipline - • H2 Production +12% vs H1, with cash costs 8% lower key to meeting • Fr
Slide 8: Comparison of Key Metrics
COMPARISON OF KEY METRICS Summary of six months-on-six months and year-on-year operating and cost variations: % Variance six Six monthsended Six monthsended % Variation year vs months vs prior Year endedDec Year endedDec Particulars Dec 2021 Dec 2020 prior year year six months 2021 2020 Operating re
Slide 9: Africa Overview
AFRICA OVERVIEW Production by mine koz Cash cost by mine $/oz AISC* by mine $/oz 1,293 1,145 1,200 1,653 1,603 1,112 1,619 1,081 1,419 1,397 904 1,316 1,267 822 1,161 731 757 1,029 985 935 641 629 647 814 809 856 623 486 364 365 275 214 258 202 127 108 Iduapriem Obuasi Geita Siguiri Kibali Africa Id
Slide 10: Latin America Overview
LATIN AMERICA OVERVIEW Cash cost by mine $/oz AISC* by mine $/oz Production by mine koz 649 2,220 1,192 559 894 921 1,587 858 1,519 747 1,353 699 721 362 665 331 1,050 1,003 931 953 173 145 114 83 Cerro Vanguardia AGA Mineração Serra Grande Latin America Cerro Vanguardia AGA Mineração Serra Grande L
Slide 11: Australia Overview
AUSTRALIA OVERVIEW Production by mine koz Cash cost by mine $/oz AISC* by mine $/oz 554 1,321 494 1,196 1,069 1,573 1,500 987 968 1,320 1,326 1,225 807 1,061 298 256 265 229 Sunrise Dam Tropicana Australia Sunrise Dam Tropicana Australia Sunrise Dam Tropicana Australia 2020 2021 2020 2021 2020 2021
Slide 12: Obuasi Update
OBUASI UPDATE Ramp-up Phase 3 • Underground mining activities resumed in Q4 2021 • Resumption to the work plan is tracking to schedule • Major infrastructure works required to support ramp-up to 5,000tpd: • Major infrastructure to support ramp up to 4,000tpd complete: • Upgrade KMS shaft and KMV sha
Slide 13: Sector-Leading Organic Ore Reserve Additions and Growth
SECTOR-LEADING ORGANIC ORE RESERVE ADDITIONS AND GROWTH Strong track record of delivering new Ore Reserve at a low exploration cost Moz 35 29.7 29.8 30 26.8 +23% 25.6 24.2 growth • 21.0Moz Ore Reserve added pre-depletion in last 5 years* 25 (15.4Moz cumulative depletions*) 20 2.7 • Exploration succe
Slide 14: Nevada – Advancing a World Class Jurisdiction
NEVADA – ADVANCING A WORLD CLASS JURISDICTION • Aiming for meaningful, low-cost, long-life production base medium term • Significant synergies from economies of scale and integrated infrastructure, including water rights, adjacent concessions and processing facilities • District expected to yield mo
Slide 15: Unlocking Value Through a More Accountable, Effective Organisation Structure
UNLOCKING VALUE THROUGH A MORE ACCOUNTABLE, EFFECTIVE ORGANISATION STRUCTURE • A simplified structure that improves effectiveness • The right people at the right level, making the right decisions • Empowered business units, with strong line management and fewer reporting layers • Small corporate tea
Slide 16: Core Priorities – Back to Basics
CORE PRIORITIES – BACK TO BASICS Initiatives necessary in restoring AngloGold Ashanti’s… Full Asset Portfolio Potential Review • Continue reinvestments through 2022; • Targeting six top assets • Achieve steady state operation at Obuasi • Two months of key in-depth analysis – understanding Operating
Slide 17: Full Asset Potential Review Process
FULL ASSET POTENTIAL REVIEW PROCESS A full asset assessment will take ~3 months and will identify key performance gaps and design tailored solutions… 4 – 6 weeks 6 – 8 Weeks 6 – 18 Months 1 2 3 4 5 Identify Diagnose Design Deliver and Track Close & Replicate ▪ The collection of ▪ Detail analysis to
Slide 18: Financial Review
02 Financial Generated $104m in free cash flow in a transitional year with Review significant portfolio reinvestment, COVID-19 impacts and voluntary suspension of underground mining at Obuasi
Slide 19: Cost Performance Reflecting Significant Reinvestment Phase
COST PERFORMANCE REFLECTING SIGNIFICANT REINVESTMENT PHASE Total Cash Costs Year ended Dec 2021 vs. Year ended Dec 2020 ($/oz) 1,100 1,000 External factors 900 800 700 600 500 790 (18) 40 812 121 23 26 2 (9) (5) (7) 963 Dec 20 Exch- Inflation Total Grade Stockpile & Gip Effic- Other Royalty Volume B
Slide 20: Robust Balance Sheet Underpins Positive Outlook
ROBUST BALANCE SHEET UNDERPINS POSITIVE OUTLOOK Adjusted net debt, Finance costs (RHS) $m Long-term balance sheet improvement 3,500 Self-funded development of Tropicana, Kibali 350 achieved through disciplined capital 3,000 300 allocation – without equity issuance Adj. Net Debt 2,500 250 down 76% fr
Slide 21: Free Cash Flow Before Capital Distribution in 2021
CAPITAL DISTRIBUTION IN 2021 FREE CASH FLOW BEFORE G R O W T H C A P I TA L $ 4 2 6 M NET TAXES PAID $316m outflow BALANCE SHEET STRENGTH 0.4x • Adj. Net Debt to Adj. EBITDA FINANCE COSTS • Finance costs $155m • Lease liabilities $63m RETURNS TO SHAREHOLDERS Cash from $218m outflow • Dividends $240m
Slide 22: AngloGold Ashanti Cash Lock-ups
ANGLOGOLD ASHANTI CASH LOCK-UPS • At 31 December 2021 the Company was owed $872m in cash, VAT receivables and export duties, of which $572m is not reflected on the Company’s consolidated Cash balance ($499m) and Trade Receivables ($73m) related to Kibali • AngloGold Ashanti received a cash distribut
Slide 23: 2022 Guidance
2022 GUIDANCE Economic assumptions for 2022 are as follows: Production (000oz) 2,550 - 2,800 $/A$0.76, BRL5.30/$, AP133.00/$, ZAR15.00/$; and Brent $80/bbl. All-in sustaining costs ($/oz) 1,295 - 1,425 Cost and capital forecast ranges are expressed in Costs nominal terms. In addition, estimates assu
Slide 24: Looking Forward
03 The Company’s fundamentals have stabilised… Looking improve our cost position there is much for us still to do to Forward and ensure cost effective growth from our portfolio
Slide 25: Priorities for 2022
PRIORITIES FOR 2022 Achieving these milestones will position the Company favourably to achieve its longer-term goals, thereby underpinning an industry competitive return to shareholders. Uncompromising commitment to Implementation of the New Operating Model – safe work practices demonstrate tangible
Slide 26: Clear Actions Taken to Strengthen Our Investment Case
CLEAR ACTIONS TAKEN TO STRENGTHEN OUR INVESTMENT CASE • Large Mineral Resource and Ore Reserve inventory; supported by 1 quartile grades st Strong • Robust balance sheet supporting our reinvestments; record of capital discipline Industry • Strong record on Climate – GHG emissions down 69% since 2008
Slide 27: AngloGold Ashanti
it ANGLOGOLDASHANTI