{"id":76,"date":"2023-01-05T12:47:00","date_gmt":"2023-01-05T12:47:00","guid":{"rendered":"https:\/\/reports.anglogoldashanti.com\/22\/?page_id=76"},"modified":"2023-03-23T14:27:47","modified_gmt":"2023-03-23T14:27:47","slug":"overhead-costs-capex","status":"publish","type":"page","link":"https:\/\/reports.anglogoldashanti.com\/22\/ir\/strategic-focus-areas\/overhead-costs-capex\/","title":{"rendered":"Optimise overhead, costs and capital expenditure"},"content":{"rendered":"\n
\n
\n
Home<\/a><\/span> \u00bb Integrated Report<\/a><\/span> \u00bb Performance and delivery by strategic focus area<\/a><\/span> \u00bb Optimise overhead, costs and capital expenditure<\/span><\/span><\/div>\n\n

Optimise overhead, costs and capital expenditure<\/h1>\n\n\n

All spending decisions must be thoroughly scrutinised to ensure they are optimally structured and necessary to fulfil our core business objective.<\/p>\n<\/div>\n\n\n\n

\n

Accounts for <\/p>\n\n\n\n

15% <\/strong><\/p>\n\n\n\n

of DSP performance award<\/strong><\/p>\n<\/div>\n<\/div>\n<\/div>\n\n\n\n

\n
\n
\n

The Group\u2019s 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.<\/p>\n\n\n\n

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.<\/p>\n\n\n\n

Key metrics and related targets 2022<\/h3>\n\n\n\n
\n \n \n \n \n \n \n \n
\n Metrics\n <\/th>\n \n Aims, targets\n <\/th>\n \n Performance\n <\/th>\n \n Status\n <\/th>\n <\/tr>\n <\/thead>\n
\n
    \n
  • \n Production\n <\/li>\n <\/ul>\n <\/td>\n
\n
    \n
  • \n Improve cash flow and reduce costs, with\n target measure set at 2.734Moz per annum\n <\/li>\n <\/ul>\n <\/td>\n
\n
    \n
  • \n Improve cash flow and reduce costs, with\n target measure set at 2.734Moz per annum\n <\/li>\n <\/ul>\n <\/td>\n
 \n <\/td>\n <\/tr>\n
\n
    \n
  • \n Total cash cost\n <\/li>\n <\/ul>\n <\/td>\n
\n
    \n
  • \n Improve cash flows and reduce costs, with\n target measure of $963\/oz\n <\/li>\n <\/ul>\n <\/td>\n
\n
    \n
  • \n $1,024\/oz for 2022, less than 1% above\n annual guidance and above the threshold\n measure\n <\/li>\n <\/ul>\n <\/td>\n
 \n <\/td>\n <\/tr>\n
\n
    \n
  • \n All-in sustaining costs\n <\/li>\n <\/ul>\n <\/td>\n
\n
    \n
  • \n Improve cash flows and reduce costs, with\n target measure of $1,355\/oz\n <\/li>\n <\/ul>\n <\/td>\n
\n
    \n
  • \n $1,383\/oz for 2022, slightly above target\n measure, but well within the guidance range\n of $1,295\/oz to $1,425\/oz\n <\/li>\n <\/ul>\n <\/td>\n
 \n <\/td>\n <\/tr>\n <\/tbody>\n <\/table>\n<\/figure>\n\n\n\n
\n
\n
<\/div>\n\n\n\n

Achieved<\/p>\n<\/div>\n\n\n\n

\n
<\/div>\n\n\n\n

Progress still to be made<\/p>\n<\/div>\n<\/div>\n\n\n\n

\n\n\n\n
\n

Related risk:<\/strong><\/p>\n\n\n\n

Risk 3<\/strong> \u2014 Adverse future implications of event risks<\/p>\n\n\n\n

Risk 5<\/strong> \u2014 Failure to meet operational and safety targets<\/p>\n\n\n\n

Risk 6<\/strong> \u2014 Failure to move down the industry cost curve \u2013 all-in sustaining cost competitiveness<\/p>\n\n\n\n

Risk 7<\/strong> \u2014 Loss of or threats to the social licence to operate<\/p>\n\n\n\n

Risk 8 <\/strong>\u2014 Adverse gold and commodity prices, and currency movements<\/p>\n\n\n\n

Risk 9<\/strong> \u2014 Inability to meet investor expectations on responsible mining<\/p>\n\n\n\n

Risk 10<\/strong> \u2014 failure to attract and retain critical skills<\/p>\n<\/div>\n\n\n\n

\n\n\n\n

Performance outcomes<\/h2>\n\n\n\n