Major gold producer AngloGold Ashanti expects half

(Kitco News) - AngloGold Ashanti (NYSE: AU), one of the world’s largest gold producers, reported Tuesday that its gold production in H1 2023 is expected to be 1.236Moz, marginally higher compared to 1.233Moz in H1 2022.

In a press release, the company said that the increase in gold production was mainly driven by higher overall recovered grade for the group, partially offset by lower tonnes processed.

Importantly, AngloGold added that basic earnings are expected to be between $25 million and $54 million in H1 2023, resulting in basic earnings per share (EPS) between 6 US cents and 13 US cents, a decrease of between 82% to 92% from the comparative period.

Headline earnings for the period are expected to be between $125 million and $155 million, with headline earnings per share (HEPS) between 30 US cents and 37 US cents, a decrease of between 48% to 58% from the comparative period.

The company explained that the expected decrease in basic earnings for the period versus the comparative period is the result of non-cash impairments and derecognitions at its Brazilian operations.

“These non-cash impairments related to continued operational underperformance at Córrego do Sítio, Cuiabá’s Queiroz metallurgical plant which suspended operating activities while the buttress at the Calcinados tailings storage facility (TSF) is designed and completed, and derecognition of legacy TSFs no longer in use,” it added.

AngloGold said that both basic earnings and headline earnings were further impacted by higher non-cash environmental provisions for legacy TSFs following implementation of new legislation in Brazil, as well as the effect of continued industry-wide inflation.

The company also noted increased investment in exploration and evaluation costs, the effect of the transition to third-party gold concentrate sales at the Cuiabá mine complex and the Siguiri carbon-in-leach tank failure in May 2023.

AngloGold Ashanti, with its head office in South Africa, is an independent, global gold mining company with a diverse portfolio of operations, projects and exploration activities across nine countries on four continents. The company is one of the largest gold producers globally and the largest on the African continent.

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For Kitco News