Anglogold Ashanti Plc · NYSE:AU
Anglogold Ashanti — H1 2023 Earnings Presentation
35 slides from Anglogold Ashanti's earnings presentation, Aug 8, 2023
Slide 1: Interim 2023 Results
Interim 2023 Results FOR THE SIX MONTHS ENDED 30 JUNE 2023 Nevada, USA
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: Overview
OVERVIEW
Slide 4: Driving change across the business
DRIVING CHANGE ACROSS THE BUSINESS Q4 2021 2022 2023 New Operating Full Asset Potential New Operating CFO joins; New Values Corporate CORPORATE Model launch programme starts Model complete A2X Listing Leadership in place launched restructuring Climate (GHG) Safety Record ESG targets set TRIFR* -31%
Slide 5: Balanced, diversified portfolio
BALANCED, DIVERSIFIED PORTFOLIO PORTFOLIO OF TIER 1 TIER 1 ASSETS PROJECT PIPELINE 5 2 assets account for ca.60% of advancing projects in US and group gold production1; Colombia, forecast to add ca.75% of Mineral Reserve lower cost and higher margin and ca.80% of EBITDA1 ounces to the portfolio Unit
Slide 6: Refining our view of the portfolio
REFINING OUR VIEW OF THE PORTFOLIO Mineral Reserve contribution Production contribution EBITDA contribution (FY2022) (H1 2023) (H1 2023) 35 Tier 1 21 22 Geita ● Obuasi ● Kibali ● Iduapriem ● Tropicana 4 5 Tier 2 % % % 0 Sunrise Dam ● Siguiri ● Cerro Vanguardia ● Cuiabá 75 78 Other 60 Córrego do Síti
Slide 7: H1 2023 Overview
H1 2023 OVERVIEW
Slide 8: Hard work to achieve a record safety performance
Safety HARD WORK TO ACHIEVE A RECORD SAFETY PERFORMANCE Total Recordable Injury Frequency Rate* injuries per million hours worked 5 4.52 -78% 4 3 2022 member companies’ avg. 2.66 2 1 0.98 0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 H1 2023 *Total Recordable Injury Frequency Rate ("
Slide 9: First half 2023 – momentum building after a steady start
FIRST HALF 2023 – MOMENTUM BUILDING AFTER A STEADY START Stronger second quarter: production up 12% to 652,000oz in Q2 2023 Obuasi ramp-up continued with 29% production gain year-on-year, and from 584,000oz in Q1 2023 with gains from most assets 7% total cash cost and AISC improvement Total cash cos
Slide 10: H1 2023 production performance
H1 2023 PRODUCTION PERFORMANCE • Strong production performances from Obuasi, Geita, Sunrise Dam • Obuasi continues ramp-up, 29% year-on-year jump in production • Geita’s production increase underpinned by higher grades; FP* initiatives in “Deliver Phase” • Sunrise Dam underground ore tonnes increase
Slide 11: Full Potential case study: Sunrise Dam underground tonnes improve
FULL POTENTIAL CASE STUDY: SUNRISE DAM UNDERGROUND TONNES IMPROVE Sunrise Dam achieved a step-change in development which will contribute to improving operational and financial metrics Underground Ore Tonnes (kt) 260 Full Potential Step-change in underground development 240 translated to higher ore
Slide 12: Full Potential case study: Geita tonnage improvements
FULL POTENTIAL CASE STUDY: GEITA TONNAGE IMPROVEMENTS Geita is increasing underground ore production from Nyankanga with further improvement planned in H2 2023 Underground ore tonnes (kt) Geita is ramping up production from the high grade Nyankanga underground 150 Full Potential 135 Full Asset Poten
Slide 13: Tropicana renewables project to halve gas consumption
TROPICANA RENEWABLES PROJECT TO HALVE GAS CONSUMPTION A significant contribution towards the reduction of Scope 1 and 2 GHG emissions Agreement with Pacific Energy to integrate wind and solar energy into the existing power Tr o p i c a n a generation infrastructure at the Tropicana H YBRID RENEWABLE
Slide 14: Financial Review
FINANCIAL REVIEW
Slide 15: Macroeconomic factors and industry context
MACROECONOMIC FACTORS AND INDUSTRY CONTEXT Gold Price (18 months to June 2023) Country Inflation (Inflation data shown above is reflected on a year-on-year basis) $/oz 2,050 2,025 Country H1 2023 H1 2022 Change 2,000 USA 3% 9% Feb 23 1,950 Ghana 43% 30% 1,950 1,900 Argentina 116% 64% +7% 1,850 Austr
Slide 16: H1 2023 financial highlights
H1 2023 FINANCIAL HIGHLIGHTS Revenue Adjusted Net Debt $2.19bn $1.19bn Adjusted EBITDA Adjusted Net Debt / Adjusted EBITDA $678m 0.74x Headline Earnings Net Cash Flow from Operations $0.33/share $293m Sunrise Dam, Australia Total Capital Expenditure Interim Dividend $497m 4 US cents per share 16
Slide 17: Business cost performance
BUSINESS COST PERFORMANCE Total Cash Costs – H1 2023 vs. H1 2022 ($/oz) Kibali, Geita and Tropicana 27 Non-Controllable Normalise 21 5 -12 1,189 17 2 1,169 15 9 20 -26 -48 1,127 22 96 Obuasi and Sunrise Dam 1,068 H1 ’22 Inflation Royalties Fuel FX Flex Siguiri CIL Cuiabá Normalised Volume / Grade Fe
Slide 18: Free cash flow
FREE CASH FLOW Brazil - H1 2023 vs. H1 2022 ($m) (73) (8) (40) (48) 6 0 (140) 32 (4) (24) 19 FCF PY Price Sales Volume Ops Cost Lease pymnt Working capital Taxes Capital Other investing Finance cost FCF YTD AGA Group – H1 2023 vs. H1 2022 ($m) 471 4 51 (215) (4) (50) (512) 6 26 (20) 38 (205) FCF PY
Slide 19: Prudent balance sheet management
PRUDENT BALANCE SHEET MANAGEMENT Long-term balance sheet improvement achieved through disciplined capital allocation – without equity issuance Adjusted net debt ($m) Facilities and Cash available 3,500 3,000 2,500 2,000 -62% from peak 1,500 $717m 1,000 Cash 500 0 2013 2014 2015 2016 2017 2018 2019 2
Slide 20: 2023 / 2024 guidance
2023 / 2024 GUIDANCE* 2023 2024 y-o-y Δ Group (1) Cuiabá Group (1) Cuiabá Group (1) Production (000oz) 2,450 - 2,610 180 (2) 2,530 - 2,730 180 (2) 3% - 5% All-in sustaining costs ($/oz) 1,405 - 1,450 1,395 - 1,455 Costs Total cash costs ($/oz) 1,050 - 1,120 1,396 1,000 - 1,110 5% - 1% Total ($m) 960
Slide 21: Looking Forward
LOOKING FORWARD
Slide 22: Beatty District projects – growing our footprint in a premier jurisdiction
BEATTY DISTRICT PROJECTS – GROWING OUR FOOTPRINT IN A PREMIER JURISDICTION Silicon North Bullfrog 4.22Moz Mineral Resource (157.6Mt @ 0.83g/t) Beatty District North Bullfrog 1.54Moz Silicon Merlin • First production planned end 2025 Mineral Resource Exploration Target (155.6Mt @ 0.31g/t) ca.6.0 – ca
Slide 23: North Bullfrog – regional starter project undergoing DFS
NORTH BULLFROG – REGIONAL STARTER PROJECT UNDERGOING DFS First gold is anticipated at the end of 2025 with annual production ramping up to ~100koz from 2026 Status Update Technical Drilling Conversion Drilling • Feasibility Study scheduled for 2023 completion • Sterilization (2,600m) and Geotechnica
Slide 24: Expanded Silicon – a large, Tier One district emerging from the drill bit
EXPANDED SILICON – A LARGE, TIER ONE DISTRICT EMERGING FROM THE DRILL BIT Significant progress made on Conceptual Study in H1 2023 with a large Mineral Resource declaration planned for the Merlin Deposit Status Update Technical Studies Exploration Drilling • Significant progress made in the delineat
Slide 25: Proposed Ghana JV – potentially creating Africa's largest gold mine
PROPOSED GHANA JV – POTENTIALLY CREATING AFRICA'S LARGEST GOLD MINE Proposed combination would put together two parts of the same world-class ore body Tarkwa • Leverage Tarkwa processing efficiency advantage to unlock higher gold grades at Iduapriem • Maximise production across both processing plant
Slide 26: 2023 focus areas
2023 FOCUS AREAS Narrowing the value gap FOCUS AREAS FULL ASSET STRATEGY POTENTIAL OBUASI NEVADA ENDOWMENT ESG PROGRAMME Deliver 2023 Complete North Replace Mineral Continue progress Delivery phase Progress Phase 3 objectives Bullfrog Feasibility Reserve depletion toward zero harm Study Complete Idu
Slide 27: Clear priorities
CLEAR PRIORITIES F O C U S O N C LO S I N G T H E C O ST G A P R E L AT I V E TO T H E P E E R G R O U P AISC trend vs. Comp group (Index Q1 2021 = 100) 160 150 140 130 120 110 100 90 80 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 AngloGold Ashanti Comp group rang
Slide 28: Corporate Restructuring
ca ANGLO GOLDASHANTI CORPORATE RESTRUCTURING
Slide 29: Disclaimer
DISCLAIMER NO OFFER OR SOLICITATION This document is not intended to and does not constitute an offer or invitation to buy, exchange or sell nor a solicitation of an offer to buy, exchange or sell any securities or the solicitation of any vote or approval in any jurisdiction in connection with the p
Slide 30: Corporate restructuring: rationale
CORPORATE RESTRUCTURING: RATIONALE Enhanced access to the world’s deepest pools of capital Improved competitive position in line with the Group’s global peers Corporate domicile in a leading, low risk jurisdiction Tropicana, Australia Tropicana, Australia Minimal disruption for existing stakeholders
Slide 31: Corporate restructuring overview
CORPORATE RESTRUCTURING OVERVIEW Current Simplified Corporate Structure Post Corporate Restructuring Structure AGA shareholders AGA shareholders AngloGold Ashanti AngloGold Ashanti plc Limited (“AGA”) (“New Listco”) Remaining SA AngloGold Ashanti AngloGold Ashanti AngloGold Ashanti AngloGold Ashanti
Slide 32: The world's largest and deepest pool of capital remains the US
THE WORLD’S LARGEST AND DEEPEST POOL OF CAPITAL REMAINS THE US Market cap US$tn1 Liquidity US$bn1 Investor base4 RoW UK 61.7 102.2 3M Total Market ADTV: 5% 7% $102.2bn / 0.66% of FF Europe (ex UK) North 6% 3.1 America 82% 1.6 1.1 4.6 Illustrative ECM demand 2.3 1.2 Europe (incl. UK) 10% / / RoW 30%
Slide 33: The US boasts the highest concentration of gold and mining-focused capital
THE US BOASTS THE HIGHEST CONCENTR ATION OF GOLD AND MINING -FOCUSED CAPITAL GLOBAL INVESTORS ARE LARGELY UNDERWEIGHT THE US HAS THE LARGEST SHARE OF SA GOLD PEERS VS. NA PEERS CONCENTRATED CAPITAL IN THE SECTOR TOP 15 GLOBAL INVESTORS IN NORTH (UNDERWEIGHT) / OVERWEIGHT REGION STYLE GOLD GLOBAL CON
Slide 34: AngloGold Ashanti
At ANGLOGOLDASHANTI
Slide 35: Appendix
APPENDIX (1) Excludes the Cuiabá mine complex. (2) AngloGold Ashanti expects that the Cuiabá mine complex will continue to extract gold from the gravity circuit at a rate of 5,000oz on average per month and will produce gold- in-concentrate at an average of approximately 10,000oz per month. Outlook