Annual report 2023
Sustainability report 2023
Mineral Resource and Mineral Reserve Report 2023
Notice of Meeting 2024
Operational Profiles 2023
Other reports

2023

Annual Report

2023

Mining to
empower people
and advance
societies

Annual report 2023 [PDF]
Annual report 2023 [PDF as spreads]

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2023 at a glance

Major corporate restructuring

In 2023, our organisation undertook a significant corporate restructuring to enhance access to the world’s largest capital market. A new company, AngloGold Ashanti plc§, registered and incorporated in England and Wales, became the listed parent company of the Group with AngloGold Ashanti Limited as its subsidiary at the end of September 2023.

§ As explained in note 1.3.1 to the Group financial statements, the transaction is structured such that the AngloGold Ashanti plc Group is in substance a continuation of the AngloGold Ashanti Limited Group therefore comparative information has been presented on this basis.

APM = Alternative Performance Measures

Proposed joint venture announced between Iduapriem in Ghana and Gold Fields’ Tarkwa mine, potentially creating Africa’s largest gold mine.

Production and cost guidance achieved owing to overall strong operational performance

Free cash flow APM

$109m(1)

(2022: $657m (2))

  1. Excludes corporate restructuring costs of $314m
  2. Includes Kibali legacy cash flow of $460m
Adjusted EBITDA APM

$1,420m

(2022: $1,792m (restated))

Ratio of adjusted net debtAPM to adjusted EBITDAAPM

0.89

(2022: 0.49)

Revenue

$4.6bn

(2022: $4.5bn)

Full Asset Potential Programme delivers significant benefits

Gold Mineral Reserve (pre-depletion)

up 2.2Moz

14.4Moz added over past four years at a cost of $62/oz

North Bullfrog – first-time
Gold Mineral Reserve declared

1.0Moz

at 0.43g/t

Merlin – first time gold Inferred Mineral Resource declared

9.1Moz

at 0.99g/t

Dividends paid

$91m

(2022: $181m)

(Loss)/Profit attributable to equity shareholders

($235m)

(2022: $233m (restated))

Total cash costs APM
Group

$1,108/oz

Subsidiaries

$1,174/oz

Joint ventures

$802/oz

(2022: $1,024/oz, $1,066/oz and $725/oz respectively)

For ESG-related highlights, see the Sustainability Report.

Our footprint

AmericasAfricaAustraliaGroup
Gold produced 0.532Moz 1.541Moz 0.562Moz 2.635Moz
People employed (1)(3)(4)8,565 people21,734 people1,741 people 33,658 people
Net cash inflow from operating activities (2)(3)$1m (5)$1,043m $380m $1,061m
Capital expenditure (3)$282m $710m $135m $1,127m
Total Mineral Reserve (3)6.16Moz 19.29Moz 2.61Moz 28.07Moz
Total community investment (3)(4)$5.01m $12.60m $0.85m $18.84m

Note: All the numbers for Group and the Americas region include AGA Mineração’s Córrego do Sítio (CdS) operation that was placed on care and maintenance in August 2023

  • (1)  Average employed, includes contractors
  • (2)  Includes joint ventures but excludes corporate and other costs
  • (3)  Includes projects
  • (4)  Includes corporate and non-gold producing subsidiaries
  • (5) The sum of net cash inflows from operations offset by net operational cash outflows associated with the projects

Strategy

Delivery on our strategy involves optimising and balancing the use of resource inputs to enhance positive outcomes and impacts, in the context of our external operating environment and resulting uncertainties, risks and material issues.

Governance

AngloGold Ashanti’s Board is guided by its commitment to embedding sound governance principles and practices at all levels of the Company – this continues now as it did prior to our 2023 corporate restructuring.

■

Independent Non-Executive Directors

■

Executive Directors

Financials

Income statement
Balance sheet
Statement of cash flows
    Restated (1)
US dollar millions 2023 2022
Revenue from product sales

Revenue
Revenue from product sales rose by 2% over 2022 predominantly as a result of the increase in the average gold price of $135/oz ($1,928/oz in 2023 vs. $1,793/oz in 2022) partially offset by lower ounces sold (112koz) and a reduction in by-product revenue mainly sulphuric acid due to suspension of operations of the Quieroz plant in Brazil.

4,582 4,501
Cost of sales

Cost of sales
Cost of sales increased by 5% largely as a result of higher operating costs ($112m), increase in amortisation expenses on tangible assets ($24m) and higher rehabilitation charges ($21m).

Operating costs variance is largely as a result of inflationary challenges and pressure on mining contractors and labour, increased engineering material costs, higher processing gold concentrate cost in Brazil along with the strengthening of the BRL against the US dollar and additional costs associated with stockpile depletions at Siguiri following the CIL tank failure incident in May 2023.These costs were slightly offset by lower mining contractor costs at Siguiri resultant of the transition from contractor mining to owner mining in the second half of 2023, the collective weakening of the ZAR, AUD and ARS against the USD, lower fuel costs, favourable ore stockpile movements at Geita and lower inventory write-offs in the current year compared to the previous year

The increase in amortisation of tangible assets was mainly due to the Obuasi redevelopment project continuing to ramp up to full production and higher waste stripping costs at Iduapriem and Tropicana

Higher environmental rehabilitation costs are due to changes in global economic assumptions impacting discount rates, adjustments in mine plans impacting cash flows and modifications to the design for closure of TSFs

(3,541) (3,366)
Loss on non-hedge derivatives and other commodity contracts Gold hedges

During the first quarter of 2023, AngloGold Ashanti entered into zero-cost collars for a total of approximately 13koz of gold for the period from February 2023 to December 2023 in order to manage gold price downside risk associated with Cuiabá partially transitioning to gold concentrate sales and the high cost associated with CdS. During the second quarter of 2023, AngloGold Ashanti entered into zero-cost collars for a total of approximately 47koz of gold for the period from January 2024 to June 2024. During the fourth quarter of 2023, AngloGold Ashanti entered into zero-cost collars for a total of approximately 300koz of gold for the period from January 2024 to December 2024 in order to manage gold price downside risk of the high costs associated with the Brazilian operations.

Oil hedges

During July 2022, AngloGold Ashanti entered into forward contracts for a total of 999,000 barrels of Brent Crude oil for the period from January 2023 to December 2023 that would be cash settled on a monthly basis against the contract price. This comprised approximately 40% of the Company’s total anticipated 2023 consumption. The average price achieved on the forward contracts was $89.20 per barrel of Brent crude oil. There were no open contracts at the end of December 2023.

(14) (6)
Gross profit 1,027 1,129
Corporate administration, marketing and related expenses (94) (79)
Exploration and evaluation costs

Exploration and evaluation costs increased by $49m from 2022 primarily due to an increase in greenfields exploration mainly at Nevada including costs spent on feasibility and pre-feasibility studies.

(254) (205)
Net impairment, derecognition of assets and profit (loss) on disposal

Net impairment expenditure of $192m in 2023 were processed mainly at our Brazil operations: CdS ($47m), Cuiabá ($15m), Serra Grande ($105m) and Gramalote ($25m). The transition to gold concentrate sales during 2023 significantly improved operating results at Cuiabá mine compared to 2022, which resulted in the recognition of an impairment reversal of $38m at 31 December 2023.

(221) (315)
Restructuring costs(2) (314) (14)
Other (expenses) income

Other expenses increased by $92m over 2022 largely due to care and maintenance expenses ($52m) predominantly at CdS in Brazil and legacy related TSFs costs ($52m) arising from legislative requirements in Brazil. This was partially alleviated by other movements ($12m).

(104) (12)
Finance income 127 81
Foreign exchange and fair value adjustments (154) (125)
Finance costs and unwinding of obligations

Finance costs and unwinding of obligations increased by $8m in 2023 mainly due to higher finance costs from borrowings compared to 2022.

(157) (149)
Share of associates and joint ventures’ profit 207 161
Profit before taxation 63 472
Taxation

Taxation expense increase of $64m from the preceding year mainly attributable to higher deferred tax liabilities and lower deferred tax assets raised on tax losses in Ghana. This was partly offset by lower taxation in Colombia due to the settlement in the current year of the 2011 and 2010 tax claims raised in 2022.

(285) (221)
(Loss) Profit for the year (222) 251
Attributable to:    
Equity shareholders (235) 233
Non-controlling interests 13 18
  (222) 251
  1. Comparative periods have been retrospectively restated, where indicated, due to the prior period error in the calculation of a deferred tax asset with respect to the Obuasi mine. Other errors have also been retrospectively restated. Refer to note 1.3.2 of the Group financial statements.
  2. Restructuring costs  incurred are costs associated with the AngloGold Ashanti corporate restructuring and related taxes.
    Restated (1)
US dollar millions 2023 2022
ASSETS    
Non-current assets    
Tangible assets

Tangible, right of use and intangible assets
The increase of $198m from $4,470m in 2022 to $4,668m in 2023 is predominantly attributable to tangible asset additions relating to sustaining APM and non-sustaining capital APM. This was partly offset by amortisation charges across all operations and the net impact of impairments mainly at the Brazil operations.

4,419 4,208
Right of use assets

Tangible, right of use and intangible assets
The increase of $198m from $4,470m in 2022 to $4,668m in 2023 is predominantly attributable to tangible asset additions relating to sustaining APM and non-sustaining capital APM. This was partly offset by amortisation charges across all operations and the net impact of impairments mainly at the Brazil operations.

142 156
Intangible assets

Tangible, right of use and intangible assets
The increase of $198m from $4,470m in 2022 to $4,668m in 2023 is predominantly attributable to tangible asset additions relating to sustaining APM and non-sustaining capital APM. This was partly offset by amortisation charges across all operations and the net impact of impairments mainly at the Brazil operations.

107 106
Investments in associates and joint ventures

Investment in associates and joint ventures
The year-on-year decline is mainly due to cash dividends received from the Kibali joint venture in 2022 ($694m) compared to 2023 ($180m) and the declaration of the dividend in specie. Refer to footnote 2.

599 1,091
Other Investments 1 3
Loan receivable (2)

Investment in associates and joint ventures
The year-on-year decline is mainly due to cash dividends received from the Kibali joint venture in 2022 ($694m) compared to 2023 ($180m) and the declaration of the dividend in specie. Refer to footnote 2.

358 –
Inventories 2 5
Trade, other receivables and other assets 254 231
Reimbursive right for post-retirement benefits 35 12
Deferred taxation 50 23
Cash restricted for use 34 33
  6,001 5,868
Current assets    
Loan receivable (2)

Investment in associates and joint ventures
The year-on-year decline is mainly due to cash dividends received from the Kibali joint venture in 2022 ($694m) compared to 2023 ($180m) and the declaration of the dividend in specie. Refer to footnote 2.

148 –
Inventories

Inventory
The increase in inventory is mainly attributable to higher stock of consumables and supplies compounded by the impact of inflation, higher ore stockpiles at Geita which was partly offset by lower inventory levels in Brazil following suspension of operations at the Quieroz metallurgical plant and CdS being placed in care and maintenance in August 2023.

829 773
Trade, other receivables and other assets 199 237
Cash restricted for use 34 27
Cash and cash equivalents

Cash and cash equivalents
Ended the 31 December 2023 year at $955m (net of overdraft), a decline of $151m from the $1,106m (net of overdraft) as at 31 December 2022. At 31 December 2023, 77% of the Company’s cash and cash equivalents were held in US dollars, 5% in Australian dollars, 5% in South African rands, 9% in Argentinean pesos and 4% in other currencies. Amounts are converted to US dollars at exchange rates as of 31 December 2023.

964 1,108
  2,174 2,145
Total assets 8,175 8,013
EQUITY AND LIABILITIES    
Share capital and premium 420 –
Accumulated profits and other reserves 3,291 4,040
Shareholders’ equity 3,711 4,040
Non-controlling interests 29 35
Total equity 3,740 4,075
Non-current liabilities    
Borrowings 2,032 1,965
Lease liabilities 98 115
Environmental rehabilitation and other provisions (3)

Environmental rehabilitation and other provisions
The increase in this provision is primarily attributed to changes in estimates resulting from changes in discount rates based on global economic assumptions, modifications in mine plans impacting cash flows, updates in the design for the closure of TSFs, and revisions in methodology following requests from environmental regulatory authorities.

636 596
Provision for pension and post-retirement benefits 64 71
Trade and other payables 5 7
Deferred taxation 395 300
  3,230 3,054
Current liabilities    
Borrowings 207 18
Lease liabilities 73 71
Trade and other payables (3) 772 667
Environmental rehabilitation and other provisions 80 81
Bank overdraft

Cash and cash equivalents
Ended the 31 December 2023 year at $955m (net of overdraft), a decline of $151m from the $1,106m (net of overdraft) as at 31 December 2022. At 31 December 2023, 77% of the Company’s cash and cash equivalents were held in US dollars, 5% in Australian dollars, 5% in South African rands, 9% in Argentinean pesos and 4% in other currencies. Amounts are converted to US dollars at exchange rates as of 31 December 2023.

9 2
Taxation 64 45
  1,205 884
Total liabilities 4,435 3,938
Total equity and liabilities 8,175 8,013
  1. Comparative periods have been retrospectively restated, where indicated, due to the corporate restructuring and due to the prior period error in the calculation of a deferred tax asset with respect to the Obuasi mine. Other errors have also been retrospectively restated. Refer to notes 1.3.1 and 1.3.2. of the Group financial statements.
  2. During 2023, Kibali (Jersey) Limited, which holds AngloGold Ashanti’s effective 45% interest in Kibali Goldmines S.A., declared a dividend in specie through the distribution of a loan receivable to its shareholders. The investment in joint ventures was reduced in 2023, due to the non-cash dividend distributed as a short-term joint venture loan receivable of $148m and a long-term joint venture loan receivable of $358m, based on the Kibali Goldmines S.A. future estimated cash flows. The loan bears semi-annual interest at 7.875% per annum and is repayable on demand.
  3. Short-term provisions, which were previously reported as part of trade and other payables, are now reported as part of environmental rehabilitation and other provisions on the statement of financial position. Refer to note 1.3.2. of the Group financial statements.
US dollar millions 2023 2022
Cash flows from operating activities

Cash flows from operating activities
Cash flows from operating activities decreased by $833m, from $1,804m in 2022 to $971m in 2023. This decrease in cash flows from operating activities was mainly due to a decrease in dividends received from the Kibali joint venture, an increase in payments to suppliers and employees as a result of higher gold production costs and inflation, and unfavourable working capital movements. This decrease was partially offset by an increase in revenue resultant of the higher average gold price received per ounce, as well as lower taxation paid due to lower profit before taxation in Brazil, lower provisional tax payments in Australia and higher VAT offsets in Tanzania.

971 1,804
Cash flows from investing activities

Cash flows from investing activities
Cash flows from investing activities amounted to a net outflow of $897m in 2023, $564m, lower than an outflow of $1,461m in 2022. This decrease in outflow from investing activities was largely due to the acquisition of assets (Corvus Gold and Coeur Sterling) of $517m during 2022, which did not occur in 2023, proceeds from the disposal of Gramalote of $20m and higher interest income mainly due to higher interest rates received.

(897) (1,461)
Cash flows from financing activities

Cash flows from financing activities
Cash flows from financing activities in 2023 amounted to a net outflow of $87m, which is a change of $236m from an outflow of $323m in 2022. This decrease in outflow was mainly due to higher net proceeds from borrowings of $174m and lower dividends paid of $96m. This was partially offset by an increase in repayment of lease liabilities and finance costs.

(87) (323)
Net (decrease) increase in cash and cash equivalents (13) 20
Translation (138) (68)
Cash and cash equivalents at beginning of period (net of bank overdraft) 1,106 1,154
Cash and cash equivalents at end of period (net of bank overdraft) 955 1,106
US dollar millions 2023 2022
Cash generated from operations before working capital 964 1,384
Movements in working capital (93) (140)
Dividends received from joint ventures 180 694
Taxation refund 36 32
Taxation paid (116) (166)
Net cash inflow from operating activities 971 1,804
     
Movements in working capital:    
Increase in inventories (58) (54)
Increase in trade, other receivables and other assets (117) (152)
Increase in trade, other payables and provisions 82 66
  (93) (140)
Free cash flow APM ($m) (1) Year ended
2023 		Year ended
2022
Net cash inflow from operating activities 971 1,804
Corporate restructuring costs 268 –
Capital expenditure on tangible and intangible assets (1,042) (1,028)
Net cash from operating activities after capital expenditure and excluding corporate restructuring costs 197 776
Repayment of lease liabilities (94) (82)
Finance costs accrued and capitalised (132) (132)
Net cash (outflow)/inflow after capital expenditure and interest (29) 562
Other net cash inflow from investing activities 125 86
Other 4 5
Add backs:    
Cash restricted for use 9 4
Free cash flow APM 109 657
Kibali legacy free cash flow received – (460)
Free cash flow APM (excluding Kibali legacy free cash flow received) 109 197
  1. Adjusted to exclude corporate restructuring costs.