Maintain long-term optionality
Focused and responsible management of our Mineral Resource and Mineral Reserve, our exploration programme and related planning is vital in optimising the operating lives of our portfolio. Through continued exploration and the acquisition of properties that are a good fit with our business, offering Mineral Reserve potential, we add to the long-term sustainability of AngloGold Ashanti.
Accounts for
11%
of DSP performance award
Key metrics, related targets and performance 2022 (11% of DSP performance award)
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Progress still to be made
Achieved
Related risk:
Risk 1 — Adverse regulatory changes to mining rights and fiscal requirements
Risk 2 — Failure to successfully deliver and ramp up growth projects
Risk 3 — Adverse future implications of event risks
Risk 4 — Inability to covert Mineral Resource to Mineral Reserve
Risk 6 — Failure to move down the industry cost curve – all-in sustaining cost competitiveness
Risk 7 — Loss of or threats to the social licence to operate
Risk 8 — Adverse gold and commodity prices, and currency movements
Risk 9 — Inability to meet investor expectations on responsible mining
Performance 2022
Re-investment strategy
We continue to add to our Mineral Reserve and Mineral Resource as part of a multi-year re-investment strategy launched in early 2020 to increase the rate of Mineral Reserve conversion, extend the Mineral Reserve life of assets, enhance mining flexibility and further improve knowledge of the orebodies in our portfolio. In particular, we are investing to upgrade our orebodies, exploring additional brownfields expansion through more comprehensive orebody investigations, greenfields exploration and developments in mining flexibility.
In 2022, the third year of this initiative, strong progress was made with the cumulative addition of 12.2Moz to our Mineral Reserve, pre-depletion, at an average cost of $67/oz. Furthermore, we will be able to leverage our existing Mineral Resource base to grow our Mineral Reserve. Growth in our Mineral Resource and Mineral Reserve is primarily the result of exploration activities across our portfolio.
The reinvestment programme has also led to an improved gradeprofile across the portfolio with delivered grades 10% higher on average in 2022 versus 2021. Grades recorded for the fourth quarter of the year were 17% higher than in the first quarter and were a key contributor to the overall improvement in production.
Mineral Resource and Mineral Reserve
By end 2022, 3.5Moz had been added in total to AngloGold Ashanti’s Mineral Reserve, pre-depletion, bringing the total added to our Mineral Reserve over the past three years to 12.2Moz. Pre-depletion additions to the Mineral Resource totalled 11.4Moz. Exploration and methodology- contributions were 2.8Moz to Mineral Reserve and 7.1Moz to Mineral Resource. For more detail on additions and depletions, see Mineral Resource and Mineral Reserve – summary in this report and our dedicated <R&R> .
Africa
The total Mineral Resource for our Africa assets at 31 December 2022 was 58.2Moz, up from 55.1Moz in 2021. Of this, the Mineral Reserve accounted for 20.6Moz versus the 19.5Moz recorded at the same time in 2021.
At Geita, a key asset in our portfolio, the extension of its operating life remains a priority with 1.5Moz being added to its Mineral Reserve in 2022, pre-depletion, bringing the total additions here over the past three years to 3.7Moz, adding around seven years to the life of mine. These Mineral Reserve increases are attributed to successes achieved by the exploration drilling programme underway at the mine which have led to an enlarged pit designs at Nyamulilima and the first-time reporting of the underground Mineral Reserve for the Geita Hill orebody.
At Siguiri, 1.0Moz were added to Mineral Reserve pre-depletion, primarily due to the first-time reporting of the Sorofe, Sanutinti, Kalamagna Mineral Reserve (in Block 1 P1), exploration infill drilling updates and an increase in the Mineral Reserve price.
Americas
The total Mineral Resource for our Americas assets at 31 December 2022 was 16.8Moz, up from 16.6Moz in 2021, and the Mineral Reserve was 3.0Moz* versus 3.1Moz* recorded at the same time in 2021. Our projects in the region accounted for a Mineral Resource of 46.4Moz, including a Mineral Reserve of 4.2Moz (at 31 December 2022).
*The previous reporting has been adjusted to exclude the Colombia and USA Projects which is included separately in the 2022 reporting.
Nevada – Beatty District
We have reported a first-time Mineral Resource for North Bullfrog and Mother Lode, following the acquisition of Corvus Gold in January 2022, and for Sterling, after the acquisition of Coeur Sterling in November 2022. Combined these assets have aMineral Resource of 4.2Moz. This is in addition to the 4.2Moz Mineral Resource at Silicon, giving a total Mineral Resource of 8.4Moz for the Nevada assets. Adding these ounces to our portfolio is part of a strategy to grow our Mineral Resource and Mineral Reserve in the Beatty District of Nevada, fostering development of a long-life production base in the short to medium term.
During 2022, our project team completed the integration of the Corvus Gold assets and project data into our evaluation framework and, in the fourth quarter of 2022, began work on integrating the Coeur Sterling properties into broader evaluation studies.
Feasibility work at North Bullfrog, a smaller, high return deposit continued to progress. Work to date indicates that this deposit has a very low stripping ratio and using heap leach processing or selective milling, could deliver very attractive returns. Permitting is progressing and we continue to target first production in about two years.
Work has begun on a pre-feasibility study for the Silicon project, which has received its eagle permit, allowing us to mine within two miles of existing golden eagle rests. Additional drilling at the Merlin deposit has also begun.
We had six drill rigs in operation in the Beatty district for most of the year and we expect to double this number in 2023. Our improving understanding of the geology, structures and alteration in the area is helping us identify other targets and is reinforcing our view on the potential of our consolidated ground position.
We are establishing a strong, Nevada-experienced project technical and permitting team. The new additions to our land package, and a more favourable configuration, is growing our confidence that production could comfortably exceed our previous target of 300,000oz of annual production by the end of the decade. We are forging ahead with work to consolidate our newly acquired assets. Systematic exploration and optimised project development will enable us to realise the potential of our combined assets in the Beatty district.
We are establishing a strong, Nevada-experienced project technical and permitting team. The new additions to our land package, and a more favourable configuration, is growing our confidence that production could comfortably exceed our previous target of 300,000oz of annual production by the end of the decade. We are forging ahead with work to consolidate our newly acquired assets. Systematic exploration and optimised project development will enable us to realise the potential of our combined assets in the Beatty district.
Colombia projects
Quebradona
Following the decision of Colombia’s national environmental licensing agency (ANLA) in November 2021 to archive the Company’s environmental licence application for the Quebradona project, AngloGold Ashanti filed an appeal seeking to secure further details on the specific additional information required for ANLA to make a decision on AngloGold Ashanti’s licence submission. On 29 April 2022, ANLA denied the appeal and confirmed its decision to archive the Company’s application. AngloGold Ashanti is preparing a new Environmental Impact Assessment which the Company intends to submit with the licence application.
Gramalote
The feasibility study on the Gramalote gold project, a joint venture with B2Gold, was completed. Both partners have determined that the Gramalote project does not meet their investment thresholds for development. The project continues to benefit from federal and local government support as well as continuing support from local communities.
AngloGold Ashanti and B2Gold have completed a comprehensive review of the alternatives and consider that it would be in the best interest of all stakeholders for a new party to own the Gramalote project. The partners appointed a corporate advisor in the fourth quarter of 2022 to assist with the sale process.
Australia
The total Mineral Resource for our Australia assets at 31 December 2022 was 10.0Moz, up from 9.8Moz in 2021, and the Mineral Reserve was 2.6Moz versus 3.0Moz at the same time in 2021.
