AngloGold Ashanti’s gold production for the three months ended March 31 this year decreased marginally by 1%, mainly due to lower grades mined at the underground mine as a result of mine sequencing, it said on Friday.
In its quarterly results for the period, gold production decreased marginally by 4 000 ounces from 588 000 ounces for the three months ended March, 31, 2022 to 584 000 ounces.
“Gold production decreases were recorded at Kibali, Siguiri, Tropicana, AngloGold Ashanti Mineração, and Serra Grande. At Kibali, gold production decreased by 12 000 ounces, or 16%, from 76 000 ounces,” the group said.
It flagged that gold production was steady year-on-year as AngloGold continued to progress reinvestment in key assets to improve operating flexibility and extend mine lives, while also advancing a programme to buttress the tailings storage facility (TSF) which services the Queiroz plant at the Cuiabá mine complex in Brazil.
AngloGold reported that revenue from product sales decreased by $24 million (R449m), or 2%, from $1 052m in the three months ended March 31, 2022 to $1 028m in the three months ended March, 31, 2023.
“The decrease in revenue from product sales was mainly due to a decrease in gold income and by-product revenue. Gold income decreased by $9m, or 1%, from $1 016m in the three months ended March, 31, 2022 to $1 007m in the three months ended March 31, 2023.
“The decrease in gold income was mainly due to a decrease in ounces of gold sold, partly offset by an increase in the average gold price received of $14 per ounce,” it said.
The group said the average gold price received increased by $14 per ounce, or 1%t, from $1 881 per ounce in the three months ended March, 31, 2022 to $1 895 per ounce in the three months ended March, 31, 2023, which resulted in an increase in gold income of $7m.
“By-product revenue decreased by $15 m, or 42%, from $36m in the three months ended March, 31, 2022 to $21m in the three months ended 31 March 2023, mainly due to a decrease in revenue from silver,” the group said.
AngloGold Ashanti said in the African region, subsidiaries produced 284 000 ounces at a cost of sales of $460m and a total cash cost of $1 161 per ounce.
“At Iduapriem in Ghana, gold production increased by 12 000 ounces, or 24 percent, to 63 000 ounces at a cost of sales of $93m and a total cash cost per ounce of $803 per ounce,” it said.
At Obuasi in Ghana, gold production increased by 22 000 ounces, or 58%, to 60 000 ounces at a cost of sales of $87m and a total cash cost per ounce of $1 085, it said.
At Serra Grande in Brazil, gold production decreased by 5 000 ounces, or 25%, to 15 000 ounces at a cost of sales of $34m and a total cash cost of $1 855 per ounce.
Meanwhile, AngloGold announced that its chief operating officer, Ludwig Eybers, would be retiring in December this year. This comes after 12 years with the company, capping a nearly four-decade career in mining.
"Ludwig joined AngloGold Ashanti in 2011 as senior vice president. He was the COO (chief operating officer) of the International portfolio outside Africa and latterly the COO for the entire portfolio of operations, where he has helped drive our vision of sustainable mining.
The group said Marcelo Godoy, the chief technology officer, would assume the role of interim COO from July 1, 2023, and would work closely with Eybers in the coming months to ensure a smooth transition until a permanent COO was identified.
The share price on Friday closed 2.59% higher at R425.66 on the JSE.
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