AngloGold Ashanti doubles dividend
JOHANNESBURG - AngloGold Ashanti’s earnings and profits halved in 2022 as costs eroded gains from higher production, but the miner still declared a full-year dividend double that of 2021 as free cash flow surged.
The company– which no longer operates in South Africa but has retained its primary listing on the JSE – reported a plunge in basic earnings from US$622 million (R11.35 billion) in 2021 to US$297 million (R5.42 billion) in 2022, largely due to higher operating and exploration costs and some US$300 million in impairments related to three Brazilian operations.
Profit
Net profit halved from US$646 million in 2021 to US$316 million for the year ended in December 2022.
AngloGold Ashanti declared a final dividend of R3.22 per share, bringing its full-year dividend to R8.15 per share - the equivalent of US$0.47, up from US$0.20 in 2021.
Despite a marginally lower gold price during the year under review, the company recorded free cash flow of US$657 million, up from US$104 million in 2021.
Its balance sheet remained in a solid position after funding capital expenditure, two property acquisitions in Nevada and paying an interim dividend. At year-end, there was approximately US$2.5 billion in liquidity, including cash and cash equivalents of US$1.1 billion.
Gold production of 2.74 million ounces marked an 11 per cent improvement over 2021.
The operational result was underpinned by solid performances across most of the portfolio, with the Obuasi gold mine in Ghana meeting targeted production as it continues to ramp-up towards full planned production in excess of 400 000 ounces by the end of 2024.
Improvements
while holding cost increases at around half the inflation rate.
Despite the highest inflation rates in over forty years, the miner’s total cash costs per ounce increased by six per cent to US$1024 per ounce in 2022 compared to US$963 in 2021. The increase in all-in-sustaining costs was limited to two per cent year-on-year.
Secure
As the group works to secure growth, its reported mineral reserve additions in 2022 again exceeded depletion.
“It’s been a year of significant progress, with the right operating model and the right people in the right place. We delivered on our production and cost commitments to the market and have begun to regain cost competitiveness versus our peers,” said CEO Alberto Calderon.
“We’re seeing good progress in a number of places which confirm we’re on the right track.”
AngloGold Ashanti introduced new members to its senior leadership team last year and redesigned its operating model to narrow the cost gap with peers.