Anglogold Ashanti Q3 gold production improved versus Q2
AngloGold Ashanti in its Q3 2023 Production Update for the three months ended 30 September 2023 has reaffirmed annual production guidance for 2023 after third-quarter gold production improved versus the second quarter, continuing the recovery from setbacks faced in the first and second quarters of this year at its mines in Brazil and Guinea respectively. The Company recorded no fatalities in the nine months ended 30 September 2023.
AngloGold Ashanti continued to build momentum during the three months ended 30 September 2023, recording a 3% increase in gold production versus the second quarter of the year. Gold production rose to 673,000oz in the third quarter of 2023 from 652,000oz in the second quarter of 2023 mainly due to higher ore tonnes processed partly offset by lower overall recovered grades.
Gold production gains quarter-on-quarter were recorded at Iduapriem (+27%), Siguiri (+22%), Kibali (+13%), Serra Grande (+9%), Geita (+6%) and Tropicana (+3%). These increases in gold production quarter-on-quarter were partly offset by lower production performances at Obuasi (-19%), at AGA Mineração (-13%), at Cerro Vanguardia (-5%) and at Sunrise Dam (-3%). Adjusting for the placement of Córrego do Sítio (“CdS”) in Brazil in care and maintenance, gold production was up 5% quarter-on-quarter.
AngloGold Ashanti has been actively taking measures to close the value gap with its international peers. These efforts involve initiatives to enhance cost-efficiency and extend the life of its mines while also prioritising safety, optimising cash flow, and ensuring the successful delivery of projects. During the period, the Company also completed the migration of its primary listing to the NYSE on 25 September 2023, to enable enhanced access to the world’s largest capital market and improved positioning alongside the gold industry’s most highly valued companies.
“Gold production has improved in the third quarter of 2023 and is expected to step up again over the remainder of the year, in line with our guidance,” CEO Alberto Calderon said. “We continue the work across a number of fronts to enhance our competitiveness versus our peers; our corporate restructuring is complete, we’ve continued to sharpen our operational and project focus, and we’re on track to deliver on our decarbonisation commitments.”
As part of the approach to narrow management focus and direct its capital allocation to the Company’s Tier One and Tier Two operating assets, as well as its high-return development projects, AngloGold Ashanti commenced the process of placing its loss-making CdS mine in care and maintenance during August 2023, and completed the sale of its 50% indirect interest in the Gramalote project to B2Gold Corp.
The Company continues to progress studies related to its first development in the Beatty Mining District in Nevada, USA, where an initial 8.4Moz of Mineral Resource has been reported and an initial exploration target of between 6.0Moz and 8.0Moz from the Merlin deposit alone, was disclosed earlier this year.
AngloGold Ashanti anticipates reaching a final investment decision for North Bullfrog in 2024, once the appropriate permits have been received.
Furthermore, the decarbonisation programme has been advancing at both the Geita site, in Tanzania, and at the Tropicana site, in Western Australia. Preparation for connecting the mine site to the Tanzania grid, which has a high percentage of its power mix from renewable energy sources, is well advanced, while at the Tropicana project works have commenced for the construction of a 62MW wind and solar facility.
