Optimise overhead, costs and capital expenditure
All spending decisions must be thoroughly scrutinised to ensure they are optimally structured and necessary to fulfil our core business objective.
Accounts for
15%
of DSP performance award
The Group’s cost performance in 2022 reflects the continued reinvestment across our portfolio, notably at the Obuasi, Iduapriem, Geita and Tropicana operations as well as the acquisition of mining properties in North America. It also reflects significant investment in TSF compliance in Brazil.
Our overall focus remains on improving our operational performance, continued cost discipline and execution of the Full Potential (FP) Programme that was introduced in 2022. Execution of this programme will continue in 2023.
Key metrics and related targets 2022
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Achieved
Progress still to be made
Related risk:
Risk 3 — Adverse future implications of event risks
Risk 5 — Failure to meet operational and safety targets
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
Risk 10 — failure to attract and retain critical skills
Performance outcomes
- While total cash costs per ounce increased overall by 6% in 2022, inflationary pressures alone contributed to a 12% increase. Excluding the impact of inflationary pressures, cash costs in real terms declined by 6%
- Open pit grades were 5% higher year-on-year, with Iduapriem and Serra Grande contributing the most. Recovered grades from underground were 10% higher year-on-year, with grade improvements at Obuasi, Sunrise Dam and Cerro Vanguardia more than offsetting lower grades at Kibali
- The re-investment in our sites continues to progress with the aim of extending mine life and improving flexibility, which remain key priorities
- Sustaining capital remained in line with 2021 ($779m in 2022 vs $778m in 2021)
- All-in sustaining costs were $1,383/oz, up 2% year-on-year, notwithstanding global inflationary pressures and consequent increases in total cash cost of 6%
For further detail on our performance in relation to this strategic pillar, see the CFO’s report and outlook and the <AFS>.
