AngloGold Ashanti lost $46 million or 11 US cents per share in 2023.

This is compared to $489 million or 116 US cents per share, for the year ended December 31, 2022.

According to its Full Year 2023 report,  headline earnings were down year-on-year mainly due to lower gold sold (54 US cents per share), higher costs related to the corporate restructuring (taxes and fees) (75 US cents per share), higher care and maintenance and retrenchment costs, among others.

These effects, it said, were partially offset by higher equity-accounted joint venture income (11 US cents per share), higher finance income (11 US cents per share), and a higher average gold price received per ounce (76 US cents per share).

Adjusted earnings before interest, tax, depreciation and amortisation (“Adjusted EBITDA”)* for the year ended December 31, 2023 was $1.420 billion, compared with $1.792 billion for the year ended December 31, 2022.

The mining giant said adjusted EBITDA was lower year-on-year mainly due to higher total operating costs, higher exploration and evaluation costs, higher environmental provisions for legacy TSFs as a result of new legislation in Brazil relating to emergency response and safety management for TSFs, costs related to the corporate restructuring and lower gold sold.

The decrease was partially offset by higher equity-accounted joint venture income and the higher average gold price received per ounce.

Corporate Update

AngloGold said the Tropicana Rainfall Event Gold production at the Tropicana gold mine in Western Australia was impacted by heavy rains and flooding during the month of March 2023. The subsequent flooding, it said, interrupted power supply to the processing plant and required mining operations to be temporarily suspended.

Power has been restored to the site and access to the underground mine has resumed. However, it pointed out that mining from the open pits remains restricted until surface water is cleared through pumping and evaporation.

While AngloGold Ashanti anticipates that there may be some impact on gold production at Tropicana in the first half of 2024, any decrease is expected to be largely recovered in the second half of 2024.

Consequently, the Company does not believe that this event will have an impact on its gold production and cost guidance provided in February 2024, which guidance is therefore maintained.