Anglogold Ashanti Plc · NYSE:AU
Anglogold Ashanti — Q3 2022 Earnings Presentation
23 slides from Anglogold Ashanti's earnings presentation, Nov 29, 2022
Slide 1: Q3 2022 Market Update
Q3 2022 Market Update 3 N OV E M B E R 2 0 2 2
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 Solid operating performance – Production up, strong cost control, guidance maintained Continued grade improvement – Inward investments yielding higher grades Robust balance sheet – Improving cash conversion, strong cash flow Leadership team complete – CFO appointed; operating model implemen
Slide 4: Safety Trends Continue to Improve
SAFETY TRENDS CONTINUE TO IMPROVE Total Recordable Injury Frequency Rate* injuries per million hours worked 5 -72% 4 3 2 1.28 1 0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 H1 2022 Q3 2022 *Total Recordable Injury Frequency Rate ("TRIFR"), previously known as the All-Injury Frequency Rat
Slide 5: Setting New Emission Targets
SETTING NEW EMISSION TARGETS Targeting 30% reduction in absolute scope 1 and 2 GHG emissions vs. 2021 baseline… Market Release Executive Summary Our Strategy Climate Actions Decarbonisation Opportunities Identified Pipeline of Projects Roadmap to Net Zero …demonstrating our commitment to impacting c
Slide 6: Emission Reduction Pathway to 2030
EMISSION REDUCTION PATHWAY TO 2030 -0.8 Mt CO2-e 1.8 1.8 Further Total AngloGold Ashanti Emissions (Mt CO2-e) 1.7 Opportunities: 1.6 ▪ Additional 0.4 electrification 1.5 ▪ Additional solar 1.4 1.4 with storage ▪ A larger wind 1.3 farm 1.2 -0.6 -30% 1.1 Australia: -0.1 0.02 Wind & solar hybrid 0.03 1
Slide 7: Q3 2022 Highlights – Results Driven by Improving Fundamentals
Q3 2022 HIGHLIGHTS – RESULTS DRIVEN BY IMPROVING FUNDAMENTALS PRODUCTION YIELD CASH COSTS AISC* 738,000oz 2.21g/t $966/oz $1,284/oz +20% y-o-y +21% y-o-y +4% y-o-y -6% y-o-y CAPITAL EBITDA** FREE CASH FLOW NET DEBT** $277m $472m $169m $746m -9% y-o-y +5% y-o-y >+100% y-o-y -14% y-o-y *AISC World Gol
Slide 8: Africa
AFRICA Production koz Total cash cost $/oz AISC* $/oz 443 1,386 2,541 1,254 1,181 348 1,031 961 928 866 858 1,580 792 764 1,475 762 1,236 1,270 613 1,094 1,119 1,141 1,043 156 969 972 126 771 94 83 66 72 67 66 48 13 Iduapriem Obuasi Geita Siguiri Kibali Africa Iduapriem Obuasi Geita Siguiri Kibali A
Slide 9: Latin America
LATIN AMERICA Production koz Total cash cost $/oz AISC* $/oz 1,388 152 1,312 3,263 140 1,028 1,038 923 928 842 869 1,992 84 86 1,800 1,659 1,716 1,644 1,402 1,317 44 38 18 22 Cerro Vanguardia AGA Mineração Serra Grande Latin America Cerro Vanguardia AGA Mineração Serra Grande Latin America Cerro Van
Slide 10: Australia
AUSTRALIA Production koz Total cash cost $/oz AISC* $/oz 143 1,430 1,715 125 1,276 1,157 1,485 1,363 1,047 1,238 947 1,146 86 67 705 844 58 57 Sunrise Dam Tropicana Australia Sunrise Dam Tropicana Australia Sunrise Dam Tropicana Australia Q3 2021 Q3 2022 Q3 2021 Q3 2022 Q3 2021 Q3 2022 • Australian
Slide 11: Full Asset Potential Programme - Siguiri
FULL ASSET POTENTIAL PROGRAMME - SIGUIRI STRATEGY MINING PROCESSING Target c.5% improvement Target additional in plant recovery c.3,000tpd Increase TSF capacity for high grade material from Block 2 Target c.2% improvement extension of life to 2034 in mill runtime Optimise shift operating hours Targe
Slide 12: Nevada – Advancing a World Class Jurisdiction
NEVADA – ADVANCING A WORLD CLASS JURISDICTION DOMINANT GROUND POSITION IN PROMISING NEW GOLD DISTRICT • World class jurisdiction • Regional resource endowment c.10Moz • Well-understood geology – simplified processing • Expect to produce >300koz p.a. within the decade • Tier 1 cost profile Simplified
Slide 13: Nevada – Advancing a World Class Jurisdiction
NEVADA – ADVANCING A WORLD CLASS JURISDICTION AngloGold Ashanti Merlin 13 Source: Corvus presentation 2021
Slide 14: Financial Review
FINANCIAL REVIEW Ro b u s t b a l a n c e s h e et l ow g e a r i n g , s t ro n g l i q u i d i t y, l o n g - te n o r d e bt
Slide 15: Strong Cost Control Amid High Inflationary Environment
STRONG COST CONTROL AMID HIGH INFLATIONARY ENVIRONMENT Total cash costs Q3 2022 vs. Q3 2021 ($/oz) - 7.0% 1,100 Non-controllable factors 1,000 900 800 700 600 500 927 (26) 131 7 1,039 (135) (39) 7 23 29 42 966 Sep 21 Exch- Inflation Royalty Total Grade Stockpile & Gip Extreme By-products Volume Acti
Slide 16: Robust Balance Sheet Underpins Our Self-Funded Investments
ROBUST BALANCE SHEET UNDERPINS OUR SELF -FUNDED INVESTMENTS GEARING* NET DEBT* LIQUIDITY 0.41X $746m $2.5bn CASH - $1.2BN 1.0X TARGET -14% YEAR -ON-YEAR UNDR AWN FACILITIES - $1.3BN *Adjusted Net Debt/Adjusted EBITDA 16
Slide 17: Cash Lock-ups Improve 52% Since 2021 Peak
CASH LOCK-UPS IMPROVE 52% SINCE 2021 PEAK AngloGold Ashanti Cash Accumulation -52% 1,000 $908m $878m $872m 900 $831m $790m 23 23 19 23 147 800 25 151 139 125 700 137 $637m 152 144 142 20 600 150 139 74 151 75 73 $431m $435m $m 500 72 65 16 14 400 155 149 146 300 512 79 485 499 461 200 424 144 148 10
Slide 18: 2022 Guidance On Track
2022 GUIDANCE 1 ON TRACK Production (000oz) 2,550 - 2,800 All-in sustaining costs* ($/oz) 1,295 - 1,425 Costs Total cash costs ($/oz) 925 - 1,015 Capital expenditure Total ($m) 1,050 - 1,150 Outlook economic assumptions for 2022 are as follows: $/A$0.69, BRL5.19/$, AP131.00/$, ZAR16.52/$; and Brent
Slide 19: Looking Forward
LOOKING FORWARD “ We h av e t h e r i gh t s t r u c tu re a n d t h e r i gh t p e o p l e i n p l a c e to s u p p o r t o u r fo c u s o n d r i v i n g f u r t h e r o pt i m i s at i o n f ro m o u r p o r t fo l i o . ”
Slide 20: Key Priorities - 2022
KEY PRIORITIES - 2022 >> Narrowing the value gap << FOCUS AREAS IMPROVED FULL ASSET DELIVER OBUASI OUTCOMES POTENTIAL Deliver guidance, Achieve 2022 Enhance quality of improve cash guidance, deliver mine plans, margins conversion Phase 3 EMBED OPERATING GROWING MINERAL ESG MODEL RESERVE PERFORMANCE
Slide 21: Regaining Competitiveness
REGAINING COMPETITIVENESS > WORLD CLASS ESG PRACTISES > IMPROVING OPERATING FUNDAMENTALS > 1 ST QUARTILE GRADE PROFILE > ORGANIC PRODUCTION GROWTH > STRONG UNIT COST MANAGEMENT > ROBUST CAPITAL ALLOCATION FRAMEWORK 21
Slide 22: AngloGold Ashanti
ih ANGLOGOLDASHANTI
Slide 23: Appendix
APPENDIX 1. Cost and capital forecast ranges are expressed in nominal terms. In addition, estimates assume neither operational or labour interruptions (including any further delays in the ramp-up of the Obuasi redevelopment project), or power disruptions, nor further changes to asset portfolio and/o