Anglogold Ashanti Plc · NYSE:AU
Anglogold Ashanti — Q3 2024 Earnings Presentation
31 slides from Anglogold Ashanti's earnings presentation, Nov 7, 2024
Slide 1: Q3 2024 Results
Q3 2024 RESULTS for the three months and nine months ended 30 September 2024 Beatty District - Nevada
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: Mineral Resource and Mineral Reserve Information
MINERAL RESOURCE AND MINERAL RESERVE INFORMATION The AngloGold Ashanti Mineral Resource and Mineral Reserve stated herein were prepared in compliance with Subpart 1300 of Regulation S-K (17 CFR § 229.1300) (“Regulation S-K 1300”). Refer to Item 1300 (Definitions) of Regulation S-K for the meaning of
Slide 4: Continued focus on safety, the highest priority
CONTINUED FOCUS ON SAFETY, THE HIGHEST PRIORITY Total Recordable Injury Frequency Rate* injuries per million hours worked -79% 2023 member companies’ avg. 2.59 0.95 * Total Recordable Injury Frequency Rate (TRIFR) - the broadest measure of workplace safety, measures workplace safety in terms of the
Slide 5: Q3 2024 Review
Q3 2024 REVIEW
Slide 6: Q3 2024 Highlights – Improving fundamentals underpin performance
Q3 2024 HIGHLIGHTS – IMPROVING FUNDAMENTALS UNDERPIN PERFORMANCE OPERATIONAL DELIVERY COST MANAGEMENT Real terms reduction in total cash costs* for managed ops: Guidance Maintained Q3’24 production 657koz; +1% q-o-q +2% +0.5% Aggregate Inflation in Q3’24 vs Q3’23 YTD ‘23 vs YTD ’24 c.7% Q3’24 Obuasi
Slide 7: Centamin - Compelling strategic fit matching our core competencies
CENTAMIN - COMPELLING STRATEGIC FIT MATCHING OUR CORE COMPETENCIES SUKARI, A WORLD CLASS TIER 1 ASSET: Long life, compelling cost profile and attractive development potential (2023A Total cash costs* of $970/oz1 and AISC* of $1,196/oz1) STEP CHANGE IN PRODUCTION AND REDUCTION TO COST: Increases annu
Slide 8: Sukari - A natural fit within our portfolio of world class assets
SUKARI - A NATURAL FIT WITHIN OUR PORTFOLIO OF WORLD CLASS ASSETS AND PROJECTS Combined Combined Mineral Reserve AngloGold Ashanti Footprint Total: 32.3Moz5 LONGER LIFE, LOWER COST, SCALE / GROWTH POTENTIAL, ~78% STEADY PERFORMERS, RELIABLE CASH GENERATORS, SHORTER East Africa GROUP MINERAL RESERVE,
Slide 9: Full Asset Potential yielding tangible improvements
FULL ASSET POTENTIAL YIELDING TANGIBLE IMPROVEMENTS TROPICANA Total Underground Ore Tonnes (kt/month) GEITA Nyankanga Underground Ore Tonnes (kt/month) 200 180 180 160 28% 160 31% 2024 Avg. 140 2024 Avg. 140 120 120 2022 Avg. 100 2022 Avg. 100 80 80 60 60 40 40 20 20 0 0 Jan-22 Jan-23 Jan-24 Sep-24
Slide 10: Expanded Silicon Project – An emerging Tier One asset
EXPANDED SILICON PROJECT – AN EMERGING TIER ONE ASSET Infill drilling to support further Mineral Resource definition and pre-feasibility studies - confirms continuity of core mineralized zone A A’ MER-23-235-RD 144.8m @ 1.54g/t MER-24-300-RD 91.3m @ 1.55g/t MER-23-243-RD MER-23-245-RD MER-24-278-RD
Slide 11: Obuasi - Taking clear steps to address ground condition challenges
OBUASI - TAKING CLEAR STEPS TO ADDRESS GROUND CONDITION CHALLENGES • Q3'23 – Flexibility constraints and poor ground conditions in high-grade areas impact ramp-up; Persist into 2024 • Excessive dilution caused by overbreak in sub-level open stoping (SLOS) stopes • Ore hang-up in vertical SLOS stopes
Slide 12: Improving SLOS to adapt to poor ground conditions
IMPROVING SLOS TO ADAPT TO POOR GROUND CONDITIONS More predictable outcomes and a reliable baseload production level of Poor ground conditions in high grade areas have persisted in 2024, causing: c.200koz a year from SLOS, with additional growth from UHDF Dedicated New reaming and High dilution rate
Slide 13: UHDF trial success - improved outcomes in poor ground conditions
UHDF TRIAL SUCCESS - IMPROVED OUTCOMES IN POOR GROUND CONDITIONS 8koz from UHDF in Q3 from two fronts, with four fronts planned for 2025; +1Moz suitable for UHDF already identified in Block 8L and Block 10 UHDF [grades 8.4g/t – 15.2g/t] • Improved safety - lower risk of ground failure • Lower comple
Slide 14: Stronger margins using combined mining method based on trial outcome
STRONGER MARGINS USING COMBINED MINING METHOD BASED ON TRIAL OUTCOME Optimising SLOS in lower-grade higher-grade lower grade areas + increasing production from UHDF in higher grade areas == safer, safer, more more predictable predictable ramp-up ramp-up profile profile SLOS in HG Areas** UHDF in HG
Slide 15: Financial Review
A ANGLOGOLDASHANTI FINANCIAL REVIEW
Slide 16: Macroeconomic factors and industry context
MACROECONOMIC FACTORS AND INDUSTRY CONTEXT Gold Price $/oz (18 months to Sep 2024) Country Inflation and Exchange (data is shown on last 12 months basis) Country 2024 2023 Change Local CPI(1) Local fx(2): US$ Local CPI(1) Local fx(2): US$ Local CPI Local fx: US$ Gold Price USA 2.5% 3.7% Gold Collar
Slide 17: Q3 2024 Highlights – Significant cash flow and earnings leverage
Q3 2024 HIGHLIGHTS – SIGNIFICANT CASH FLOW AND EARNINGS LEVERAGE Q3 2024 Q3 2023 y-o-y Δ Average Price Received* ($/oz) 2,449 1,908 28% Adjusted EBITDA* ($m) 746 170 339% Headline Earnings** ($m) 236 (194) NA Capital Expenditure - Group ($m) 295 273 8% Net Cash Flow from Operating Activities ($m) 60
Slide 18: Q3 2024 Highlights – Strong performance from managed operations
Q3 2024 HIGHLIGHTS – STRONG PERFORMANCE FROM MANAGED OPERATIONS Q3 2024 Q3 2023 y-o-y Δ Production – Group (koz) 657 676 (3)% Production – Managed Ops (koz) 586 577 2% Total Cash Costs* – Group ($/oz) 1,172 1,089 8% Total Cash Costs* – Managed Ops ($/oz) 1,186 1,152 3% AISC* – Group ($/oz) 1,616 1,4
Slide 19: Business Cost Performance
BUSINESS COST PERFORMANCE AISC* - Q3 2024 vs Q3 2023 ($/oz) +$147/oz • Strong cash cost performance, despite continued 1,469 1,616 inflationary pressures 380 444 1,089 1,172 Q3 2023 Q3 2024 Total Cash Costs SIB + Other Total Cash Costs* - Q3 2024 vs Q3 2023 ($/oz) +6% +2% non-controllable normalised
Slide 20: Business Cost Performance
BUSINESS COST PERFORMANCE AISC* - YTD Sep 24 vs YTD Sep 23 ($/oz) +$73/oz • Strong cash cost performance, despite continued 1,525 1,598 inflationary pressures 385 435 1,140 1,163 YTD Sep 2023 YTD Sep 2024 Total Cash Costs SIB + Other Total Cash Costs* - YTD Sep 24 vs YTD Sep 23 ($/oz) +5% -2% normal
Slide 21: Cost control ensures higher gold price reflects in bottom line
COST CONTROL ENSURES HIGHER GOLD PRICE REFLECTS IN BOTTOM LINE Free cash flow* – Q3 2024 vs Q3 2023 ($m) Free cash flow* – YTD Sep 2024 vs YTD Sep 2023 ($m) 13 (1) (2) 7 (12) 341 (7) 8 (16) (4) 347 97 (33) (49) (30) 46 (2) 17 (10) 553 42 659 20 -184 Q3 2023 Price Sales Ops Cost Lease Working Divs &
Slide 22: Strong liquidity, long-dated maturities and low leverage
STRONG LIQUIDITY, LONG-DATED MATURITIES AND LOW (AND IMPROVING) LEVERAGE Liquidity – 30 September 2024 ($m) Adjusted Net Debt* to Adjusted EBITDA* ratio 2.50x $1.23bn Cash and Cash Equivalents 2.00x c.$2.58bn* 1.50x $1.34bn** RCFs 1.00x 0.50x 0.00x *Total calculated with ZAR150m O/N facility at R17.
Slide 23: Guidance
GUIDANCE 2024 Guidance Gold production (000oz) • Managed operations 2,330 - 2,490 Gold Production - Group • Non-managed joint ventures 320 - 360 • Group 2,650 - 2,850 All-in sustaining costs per ounce* ($/oz) • Managed operations 1,575 - 1,675 • Non-managed joint ventures 980 - 1,080 • Group 1,500 -
Slide 24: Looking Forward
LOOKING FORWARD
Slide 25: Strong fundamentals, improving portfolio and growing returns
STRONG FUNDAMENTALS, IMPROVING PORTFOLIO AND GROWING RETURNS PORTFOLIO AND OPERATIONS • Safety is the priority with a focus on further reducing risk and improving performance • Guidance maintained after solid year-to-date cost and production from managed operations • Brazil’s strong performance turn
Slide 26: Full Asset Potential – Facilitating sector-leading cost performance
FULL ASSET POTENTIAL – FACILITATING SECTOR-LEADING COST PERFORMANCE Total cash cost indexed – real (Q2 2021 = 100) 125 Brazil TSF Full Asset Potential programme has driven strong 120 suspension, Siguiri cost performance, offsetting inflationary impacts CIL tank collapse 115 +17% 110 105 Cash costs h
Slide 27: Investor Relations contacts
w w w. a n g l og ol d a sha n ti . com ANDREA MAXEY YATISH CHOWTHEE INVESTOR RELATIONS Tel: : +61 08 9435 4603 Telephone: +27 11 637 6273 General e-mail enquiries Mobile: +61 400 072 199 Mobile: +27 78 364 2080 amaxey@anglogoldashanti.com yrchowthee@anglogoldashanti.com Investors@anglogoldashanti.c
Slide 28: Appendix: Tier summary of operations by mine
APPENDIX: TIER SUMMARY OF OPERATIONS BY MINE For the quarter ended September 2024 (in US Dollar million, except as otherwise noted) Sub- Kibali Sunrise Cerro AGA Serra Corporate Non-managed Managed Geita Obuasi Iduapriem Projects Tropicana total JV Tier 1 Dam Siguiri Vanguardia Mineração Tier 2 Gran
Slide 29: For the quarter ended September 2024 – Total cash costs
For the quarter ended September 2024 (in US Dollar million, except as otherwise noted) Kibali Sunrise Cerro AGA Serra Corporate Non-managed Managed Geita Obuasi Iduapriem Tropicana Sub-total JV Tier 1 Dam Siguiri Vanguardia Mineração Tier 2 Grande Other and other(2) joint ventures operations Group(3
Slide 30: For the nine months ended September 2024 – All-in sustaining costs
For the nine months ended September 2024 (in US Dollar million, except as otherwise noted) Sub- Kibali Sunrise Cerro AGA Serra Corporate Non-managed Managed Geita Obuasi Iduapriem Projects Tropicana total JV Tier 1 Dam Siguiri Vanguardia Mineração Tier 2 Grande Other and other(2) joint ventures oper
Slide 31: For the nine months ended September 2024 – Total cash costs
For the nine months ended September 2024 (in US Dollar million, except as otherwise noted) Sub- Kibali Sunrise Cerro AGA Serra Corporate Non-managed Managed Geita Obuasi Iduapriem Tropicana total JV Tier 1 Dam Siguiri Vanguardia Mineração Tier 2 Grande Other and other(2) joint ventures operations Gr