AngloGold Ashanti updates production for the March quarter 2023
Johannesburg – AngloGold Ashanti has reported a steady operational performance for the first quarter of 2023, in line with plans, while confirming annual guidance and delivering on key strategic objectives to improve its valuation versus its peers.
Production for the three months ended 31 March 2023 was 584,000oz, at a total cash cost of $1,204/oz, compared to 588,000oz at a total cash cost of $1,041/oz for the first quarter of 2022. Production was steady year-on-year as AngloGold Ashanti continued to progress reinvestment in key assets to improve operating flexibility and extend mine lives, while also advancing a programme to buttress the TSF which services the Queiroz plant at the Cuiaba mine complex in Brazil.
Strong operating performances were reported from Obuasi and Iduapriem, which posted production gains and AISC improvements, while steady contributions were made by Cerro Vanguardia, Sunrise Dam, Tropicana and Geita. Excluding Cuiaba’s production contribution, production was up 2% year-on-year in the first quarter of 2023.
During the first quarter of 2023, Cuiaba produced 41,000oz, which comprised 16,000oz of gravimetric gold and 25,000oz of gold-in-concentrate. At Geita, production was in line with the mine plan, as the operation successfully concluded scheduled mill maintenance and the planned replacement of the girth gear during the first quarter of 2023. Geita is expected to achieve production of about 500,000oz for 2023, with strong gains to come over the balance of the year. At Kibali, production was lower year-on-year mainly due to lower underground grades as a result of mine sequencing.
In Ghana, the Company announced a proposed joint venture between its Iduapriem mine and Gold Fields’ neighbouring Tarkwa operation to potentially create Africa’s largest gold mine. Excluding the interest to be held by the Government of Ghana, AngloGold Ashanti will hold a 33.3% interest.
The proposed joint venture is expected to deliver extended life, increased production and improved costs. Estimated average annual production is expected to be almost 900koz per year over the first five years at an all-in sustaining cost per ounce (“AISC”) of less than $1,000/oz.
